Before starting pizza sola analysis, I wanted to give you guys a brief summary of the entire pizza industry situation.So the graph shows revenues for the entire pizza industry. Operaters have been substanitally affected by changes in consumer spending, intense external competition and an increase in health consciousness. Despire these challenges, the industry’s revenue increased since 2006. But this does not mean all the pizza restuarants have been doing well.
So there are well-established and well-known pizza brands in the industry but there is also a large number of small, independent and locally-focused pizza restaruats, like pizza sola. From 2006, the major chains – like papa john’s pizza hut and domino’s- increased in sales by 20% because they offer their products at economic price. Also there has been an increase in number of single-location stores.So reflecting this trend,the revenue per individual stores has actually decreased. That’s what actually happened to Pizza Sola as well.
Pizza Sola offersThis tasty pizza is made from imported italian tomatoes and local fresh ingredients, and that is why the price of its product is a bit above the market price.
Pizza Sola’s market share is very low because competition in this industry is high. Their direct competiton includes vocelli, domino’s, papa john’s, max flavor, mineo’s and so many other pizzerias.Also Pizza Sola has experienced competition from alternative retailers of pizza. Recently, fast-casual restaurants like chipotle and five guys has been rising.
A recession led to declining consumption and demand for low-priced products. That’s probably why major chains sales have actually incrased but the sales of single independent stores like Pizza Solah has decreased. And also healthy eating index has progressively decreased. Consumers are also becoming increasing aware of issues related to weight and obesity. This factor affected the pizza industry.Along with adapting to health consciousness, industry operators are facing more competition from places like grocery stores more food retailers are offering partially baked (par-baked) pizzas in the refrigerated section and touting them as having high-quality, restaurant-style flavor and ingredients. These products have been particularly popular among price-conscious consumers who still want quality pizza but at a lower price.Losing a compeition with grocery stores
Three segments should be targeted25-3418-2435+
Three segments should be targeted25-3418-2435+
Affordable, best ny style pizza, convenient, casual bar…..that serves you the ultimate meal for college students… For young adults, pizza sola provides pizza sola
REAL. GOOD. PIZZA.PIZZA SOLA MARKETING PLAN DECEMBER 2012
AGENDA BACKGROUND PROBLEMS MARKET ANALYSIS MARKET SITUATION PRODUCT SITUATION COMPETITIVE SITUATION MACROENVIRONMENT SITUATION SWOT ANALYSIS RESEARCH MARKETING PLAN ACTION PLAN BUDGETING
LocationOakland, Eastside, Southside, CranberryHours of OperationMon-Wed: 11am – 12pmThurs-Sat: 11am – 3amSunday: 12pm – 12amNew York style PizzaHigh Quality & Fresh IngredientsWide selection of sides and beerLarge dining area
LOW BRAND PERCEIVED AS LIMITEDAWARENESS EXPENSIVE CUSTOMER BASE43% students Only 10% *25-34age groupheard of Oakland claimed price is *8% respondantsPizza Sola reasonable visited Pizza Sola
Pizza Restaurant Industry has felt the heat over many years 42000 41000 40000Revenue ($m) 39000 38000 37000 CAGR 12% 36000 35000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 years
Pizza Restaurant Industry has felt the heat over many yearsMajor players Domino’s 9.8% Papa Pizza Hut John’s 11.6% 6.3% • Together, 20% • Increasing number of single-location increase in sales from stores 2006 to 2012
MAJOR CHAIN COMPETITIONVOCELLI PIZZA, DOMINO’S, PAPA JOHN’SMAJOR SINGLE STORE COMPETITIONMAXIMUM FLAVOR, PIZZA BELLINO, MINEO’S PIZZA, PAPA DA VINCI, MIA’SPIZZA, PIZZA ROMANOINDIRECT COMPETITIONCHIPOTLE, MCDONALD’S, FIVE GUYS
RECESSIONHEALTHY EATING INDEX NEGATIVELY AFFECTED PIZZA SOLAGROCERY STORE OFFERINGS
STRENGTH WEAKNESSESQuality of food No deliveryUnique NY style pizza High-priced menuVegetarian/vegan options Low recognitionPortion sizesCasual Dining area OPPORTUNITY THREATBuilding a brand identity Rise of fast casual restaurants likeSponsoring school events ChipotlePromotion of vegetarian and Recessionvegan menu Rebranding of major chain pizza companies
1. SURVEY OF PIZZA SOLA CUSTOMERS2. SURVEY OF PEOPLE IN OAKLAND NEAR PIZZA SOLA3. SURVEY OF CMU STUDENTS4. DIRECT CONVERSATIONS WITH PIZZA SOLA EMPLOYEES
<18 18-22 23-27 28-32 33+ YEARS26.7 3% 31% 0-1 TIMES 31% 2-3 TIMES 20% 4-5 TIMES 15% 6-7 TIMES TIMES PER MONTH 48%1.6 16% 7% 1% PORTION SIZERATING POINTS EXCELLENT (1) : 26% VERY GOOD (2) : 47%1.7 GOOD (3) : 6% DINING AREA EXCELLENT (1) : 11%RATING POINTS VERY GOOD (2) : 29%2.4 FAIR (4) : 7% GOOD (3) : 24%
> WHERE DO YOU BUY PIZZA FROM? > HAVE YOU HEARD OF PIZZA SOLA? 3% 13% Pizza Sola Vocellis 27% 10% Max Flavor Yes, 43% Dominos7% Pizza Bellino No, 57% Papa Da Vinci 7% Pizza Romano 13% Other 20%
HAVE YOU HEARD OF PIZZA SOLA? YES 60% NO 40%WHY DO YOU CHOOSE TO NOT PURCHASE PIZZA FROM PIZZA SOLA? DELIVERYTOP 3 HABITUAL BUYING BEHAVIORREASONS DO NOT KNOW ABOUT PIZZA SOLA
“PIZZA SOLAEXPERIENCE For young adults in the Pittsburgh area looking to eat and drink with their friends, Pizza Sola is the best gourmet pizzeria that provides locally grown, quality ingredients ” and an exciting dining experience because of its full-service bar and large portions
PRODUCT PRICE PLACE PROMOTIONS FULL-SERVICE BAR ROTATING DRAFT BEERS, WIDE VARIETY OF BOTTLED BEERS LARGE PORTIONS FRESH, HIGH QUALITY INGREDIENTS
PRODUCT PRICE PLACE PROMOTIONSPERCEPTION IS THAT PIZZA SOLA IS EXPENSIVE, BUTTHEY REALLY HAVE COMPETITIVE PRICESSLIGHTLY HIGHER PRICES THAN COMPETITORS, BUT IT IS DUE TOTHE FACT THAT THEY ARE USING BETTER INGREDIENTS WANT TO BE RECOGNIZED AS A HIGH QUALITY PIZZERIA & ALSO JUSTIFIED BY ITS LARGE PORTION SIZES
PRODUCT PRICE PLACE PROMOTIONSLOCATED IN THE MIDDLE OF OAKLAND MANY COLLEGES AND UNIVERSITIES IN THE AREA LOCATION IS AN ADVANTAGE FOR PIZZA SOLA
PRODUCT PRICE PLACE PROMOTIONSProblem: Internal advertisement – only to Pizza SolacustomersNeed tactics to advertise events to a wider audienceto bring new people*Buzz Marketing to increase brand awarenessPromotion itemsEvents for studentsPitt Sports events
PROMOTION KEY INGREDIENT 1“Buzz” = engaging + participative events •BEER PONG NIGHT •PIZZA-BEER PAIRING NIGHT •COLLEGE FOOTBALL NIGHT •RUSH EVENTS