Marketing Proposal for Diversifying

Into China

Executive Summary Chuck E. Cheese’s (CEC) is publicly traded company founded by Nolan Bushnell in 19771 in San Jose CA. CEC currently operates over 500 stores domestically and internationally; expanding into countries such as Chile, Saudi Arabia, Puerto Rico, U.A.E, Guatemala and Canada2. CEC mainly provides games, entertainment, party and food for children aged two to fourteen years old within a safe environment.
The marketing proposal explores the possibility of expanding CEC into untapped, high growth market areas in China. CEC product is modified to tailor the tastes of Chinese children and families. This proposal looks at the overall country and culture, number of children and
These prices are comparative to CNY 100.00 and CNY 135.00 respectively in the Chinese market8, (See Exhibit 2). Any package that totals to about CNY 1000.00 for ten kids is considered a great package for middle class Shanghai customers9.
In the U.S., there is a special package for organized gatherings to host sports teams, day-cares, boy/girl scouts, etc. The price is $6.49 per child, excluding taxes. For this price the child is entitled to two slices of pizza, a soft drink with free refills, sixteen tokens and a table is reserved for ninety minutes. The comparative cost for this service in Shanghai is CNY 45.00. Customers have the option to customize the party with additional items such as a goody bags for $1.99 approximately CNY 12.00.
Prizes
After a great day of food and fun, kids can take their ticket winnings over the prize area to claim a reward. The child has the power to choose from the coolest CEC merchandise to the hottest new toys and gizmos. During the Shanghai festivities, toys for spring festival, lantern festival, kites, soft toys (animals such as pandas) etc, would be made available.10

Distribution
CEC is mostly a service-based product that is located strategically in over 500 entertainment centers in 48 states in the U.S. and 6 countries around the world. At CEC, service starts right when the customer calls-in or enters the facility. CEC will target the city of Shanghai, China to begin.