Chuck E. Cheese is a huge company in America known for children’s birthday parties. As a millennial if you did not have a birthday at Chuck E. Cheese, then most likely you attended one. The company continues to be a huge success and has made many changes over the years to keep up with their target market. They are now extending that target market. Chuck E. Cheese’s CEO announced they are expanding the company into Latin American countries. There are many advantages for the company in doing this but there are a few obstacles that the marketing team needs to look out for. The Case Study in the Marketing for Hospitality and Tourism textbook lists a large number of factors they considered before making this decision. Some of the most important
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Cheese may have to face in Latin America is the issue of the income of the family. Not only is there a large lower class but also since the gatherings of Latin American families are so large it can be difficult to pay for that many people especially if only some of them will get enjoyment out of the venue. According to an article from The World Bank, almost one third of families in Latin America are part of the lower class and while the middle class is rising it too is less than one third of the population (Latin America: Middle Class hits Historic High). A solution to this issue would be to create packages that are sold by the group rather than by person or to give their party packages at a lower price for large groups. This could come at a cost to the company though since the party packages is their main claim to fame within the industry and could mean there is not as much of a draw for the smaller family. Another solution could be having a rewards program for discounts or more promotions for the customers. Chuck E. Cheese’s competitor Incredible Pizza has done this and it is quite successful for them. According to an article from Tourists, Attractions, and Parks The Incredible Pizza company has Day Specials which brings in a lot of customers, some of whom become regulars. The article says, “discounts are offered to designated demographics on specific days ... One of the biggest turnouts is for Senior Day, when all the big kids visit for buffet and bridge” (2009). If Chuck E. Cheese were to take this idea and make their own specials based on different demographics in the area they could draw larger crowds and create more interest for the large and diverse Latin American family. The Incredible Pizza Company also gives personalized party packages simultaneously with their specials. The second solution seems to be a great option as it is working for one of their competitors and also does not seem to be as costly since they could draw in more
Cheese may have to face in Latin America is the issue of the income of the family. Not only is there a large lower class but also since the gatherings of Latin American families are so large it can be difficult to pay for that many people especially if only some of them will get enjoyment out of the venue. According to an article from The World Bank, almost one third of families in Latin America are part of the lower class and while the middle class is rising it too is less than one third of the population (Latin America: Middle Class hits Historic High). A solution to this issue would be to create packages that are sold by the group rather than by person or to give their party packages at a lower price for large groups. This could come at a cost to the company though since the party packages is their main claim to fame within the industry and could mean there is not as much of a draw for the smaller family. Another solution could be having a rewards program for discounts or more promotions for the customers. Chuck E. Cheese’s competitor Incredible Pizza has done this and it is quite successful for them. According to an article from Tourists, Attractions, and Parks The Incredible Pizza company has Day Specials which brings in a lot of customers, some of whom become regulars. The article says, “discounts are offered to designated demographics on specific days ... One of the biggest turnouts is for Senior Day, when all the big kids visit for buffet and bridge” (2009). If Chuck E. Cheese were to take this idea and make their own specials based on different demographics in the area they could draw larger crowds and create more interest for the large and diverse Latin American family. The Incredible Pizza Company also gives personalized party packages simultaneously with their specials. The second solution seems to be a great option as it is working for one of their competitors and also does not seem to be as costly since they could draw in more