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REAL. GOOD. PIZZA.

PIZZA SOLA
 MARKETING PLAN
 DECEMBER 2012
AGENDA
         BACKGROUND
         PROBLEMS
         MARKET ANALYSIS
            MARKET SITUATION
            PRODUCT SITUATION
            COMPETITIVE SITUATION
            DISTRIBUTION SITUATION
            MACROENVIRONMENT SITUATION
            SWOT ANALYSIS
            RESEARCH
         PROPOSED MARKETING STRATEGY
         INTEGRATED MARKETING PLAN
         ACTION PLAN
Founded in 2002 as Pizza Vesuvio
by James Aiello Jr. & his partner

First Shop in South Side and
Rebranded into Pizza Sola in 2008

Single store expanded into chain
enterprise
Location
Oakland, Eastside, Southside, Cranberry

Hours of Operation
Mon-Wed: 11am – 12pm
Thurs-Sat: 11am – 3am
Sunday: 12pm – 12am


New York style Pizza
High Quality & Fresh Ingredients
Wide selection of sides and beverages
LOW BRAND         PERCEIVED AS          LIMITED
 AWARENESS          EXPENSIVE         CUSTOMER BASE




43% students       Only 10%           *25-34age group
heard of Oakland   claimed price is   *8% claimed they
Pizza Sola         reasonable         visited Pizza Sola
SITUATION ANALYSIS
Pizza Restaurant Industry has felt the heat over many years

Major 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                    • Grocery store’s pre-baked pizza
                                    gaining popularity*
Pizza Restaurant Industry has felt the heat over many years

               42000


               41000


               40000
                                                                                                 Reflecting
Revenue ($m)




               39000
                                                                                                 trends, revenue per
                                                                                                 individual store has
               38000                                                                             actually
               37000
                                                                       CAGR 12%
                                                                                                 decreased
               36000


               35000
                   2002   2003   2004   2005   2006    2007   2008   2009   2010   2011   2012

                                                      years
REASONS
AGE BREAKDOWN
                                      THEY KEEP COMING BACK
25-34 years old

         18-24 years old
                      35+ years old
                                      “ I keep coming back to
                                        Pizza Sola because it
                                        offers very large
                                        portions and its pizza
                                        is delicious!


                                                          ”
                                                    Andy T. (23)
Product            Price    Market Price   Ratings


Pizza (14”)        $13      $10.03         9.1
Wings (12 wings)   $10.41   $8.77          5.7
Calzone            $7.00    $6.57          5.4
Salad              $6.84    $3.63          7
MAJOR CHAIN COMPETITION
VOCELLI PIZZA, DOMINO’S, PAPA JOHN’S


MAJOR SINGLE STORE COMPETITION
MAXIMUM FLAVOR, PIZZA BELLINO, MINEO’S PIZZA, PAPA DA VINCI, MIA’S
PIZZA, PIZZA ROMANO

INDIRECT COMPETITION
CHIPOTLE,MCDONALD’S, FIVE GUYS
SUPPLIERS   PIZZA SOLA   CUSTOMERS
RECESSION                  HEALTH INDEX

• Unemployment &            • Consumers are aware of
  consumer spending           issues related to obesity
• Demand for lower-priced     and weight
  items
1. SURVEY OF PIZZA SOLA CUSTOMERS
2. SURVEY OF PEOPLE IN OAKLAND NEAR PIZZA
   SOLA
3. SURVEY OF CMU STUDENTS
4. DIRECT CONVERSATIONS WITH PIZZA SOLA
   EMPLOYEES
• UNABLE TO TALK TO THE STORE MANAGER ON
 MULTIPLE OCCASIONS
• “THE MAJORITY OF OUR CUSTOMERS ARE BETWEEN
  26 AND 32 YEARS OLD”
• “MANY OF OUR CUSTOMERS ARE EMPLOYEES AT
  UPMC”
• “WE DON’T TARGET A SPECIFIC AGE GROUP”
<18        18-22                   23-27               28-32          33+
      YEARS


26.7           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%

    RATING
    POINTS                                EXCELLENT (1) : 26%
                                                           VERY GOOD (2) : 47%
1.7                     GOOD (3)   : 6%

    RATING
                                   EXCELLENT (1) : 11%
    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
                                Vocelli's
                      27%
 10%                            Max Flavor
                                                                          Yes, 43%
                                Domino's
7%                              Pizza Bellino           No, 57%
                                Papa Da Vinci
 7%                             Pizza Romano
                     13%
                                Other
          20%
HAVE YOU HEARD OF PIZZA SOLA?


 YES                             NO



WHY DO YOU CHOOSE TO NOT PURCHASE PIZZA FROM PIZZA SOLA?


             DELIVERY
TOP 3        HABITUAL BUYING BHEAVIOR
REASONS      DO NOT KNOW ABOUT PIZZA
             SOLA
MARKETING FOCUS
35+
YEARS OLD
             18-24 YEARS OLD




      25-34 YEARS OLD
WHY
                  STUDENTS?
18-24 YEARS OLD
“
PIZZA SOLA
EXPERIENCE
             For young adults looking to eat
             and drink with friends, pizza sola
             is the place to go because it
             provides pizza sola
             experience, which is the unique




         ”
             blend of “real.good.pizza”and
             “casual, exciting environment”
PRODUCT   PRICE   PLACE   PROMOTIONS
PRODUCT   PRICE   PLACE   PROMOTIONS
PRODUCT   PRICE   PLACE   PROMOTIONS
PRODUCT   PRICE   PLACE   PROMOTIONS
PROMOTION KEY INGREDIENT 1

“Buzz” = engaging + participative events


 •BEER PONG NIGHT
 •PIZZA-BEER PAIRING NIGHT
 •COLLEGE FOOTBALL NIGHT
 •RUSH EVENTS
BEER PONG NIGHT
BEER PONG NIGHT
PIZZA AND BEER
PAIRING NIGHT
SPORTS NIGHT
PROMOTION KEY INGREDIENT 2

eye-catching promotional items
Business Card
PROMOTION KEY INGREDIENT 2

eye-catching promotional items
Gift Cards
PROMOTION KEY INGREDIENT 2

eye-catching promotional items
Pizza Sola paper clips
PROMOTION KEY INGREDIENT 3

Reach prospects and customers through
web or network
Marketing presentation_draft 1_incomplete

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Marketing presentation_draft 1_incomplete

  • 1. REAL. GOOD. PIZZA. PIZZA SOLA MARKETING PLAN DECEMBER 2012
  • 2. AGENDA BACKGROUND PROBLEMS MARKET ANALYSIS MARKET SITUATION PRODUCT SITUATION COMPETITIVE SITUATION DISTRIBUTION SITUATION MACROENVIRONMENT SITUATION SWOT ANALYSIS RESEARCH PROPOSED MARKETING STRATEGY INTEGRATED MARKETING PLAN ACTION PLAN
  • 3. Founded in 2002 as Pizza Vesuvio by James Aiello Jr. & his partner First Shop in South Side and Rebranded into Pizza Sola in 2008 Single store expanded into chain enterprise
  • 4. Location Oakland, Eastside, Southside, Cranberry Hours of Operation Mon-Wed: 11am – 12pm Thurs-Sat: 11am – 3am Sunday: 12pm – 12am New York style Pizza High Quality & Fresh Ingredients Wide selection of sides and beverages
  • 5. LOW BRAND PERCEIVED AS LIMITED AWARENESS EXPENSIVE CUSTOMER BASE 43% students Only 10% *25-34age group heard of Oakland claimed price is *8% claimed they Pizza Sola reasonable visited Pizza Sola
  • 7. Pizza Restaurant Industry has felt the heat over many years Major 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 • Grocery store’s pre-baked pizza gaining popularity*
  • 8. Pizza Restaurant Industry has felt the heat over many years 42000 41000 40000 Reflecting Revenue ($m) 39000 trends, revenue per individual store has 38000 actually 37000 CAGR 12% decreased 36000 35000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 years
  • 9. REASONS AGE BREAKDOWN THEY KEEP COMING BACK 25-34 years old 18-24 years old 35+ years old “ I keep coming back to Pizza Sola because it offers very large portions and its pizza is delicious! ” Andy T. (23)
  • 10. Product Price Market Price Ratings Pizza (14”) $13 $10.03 9.1 Wings (12 wings) $10.41 $8.77 5.7 Calzone $7.00 $6.57 5.4 Salad $6.84 $3.63 7
  • 11. MAJOR CHAIN COMPETITION VOCELLI PIZZA, DOMINO’S, PAPA JOHN’S MAJOR SINGLE STORE COMPETITION MAXIMUM FLAVOR, PIZZA BELLINO, MINEO’S PIZZA, PAPA DA VINCI, MIA’S PIZZA, PIZZA ROMANO INDIRECT COMPETITION CHIPOTLE,MCDONALD’S, FIVE GUYS
  • 12. SUPPLIERS PIZZA SOLA CUSTOMERS
  • 13. RECESSION HEALTH INDEX • Unemployment & • Consumers are aware of consumer spending issues related to obesity • Demand for lower-priced and weight items
  • 14. 1. SURVEY OF PIZZA SOLA CUSTOMERS 2. SURVEY OF PEOPLE IN OAKLAND NEAR PIZZA SOLA 3. SURVEY OF CMU STUDENTS 4. DIRECT CONVERSATIONS WITH PIZZA SOLA EMPLOYEES
  • 15. • UNABLE TO TALK TO THE STORE MANAGER ON MULTIPLE OCCASIONS • “THE MAJORITY OF OUR CUSTOMERS ARE BETWEEN 26 AND 32 YEARS OLD” • “MANY OF OUR CUSTOMERS ARE EMPLOYEES AT UPMC” • “WE DON’T TARGET A SPECIFIC AGE GROUP”
  • 16. <18 18-22 23-27 28-32 33+ YEARS 26.7 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% RATING POINTS EXCELLENT (1) : 26% VERY GOOD (2) : 47% 1.7 GOOD (3) : 6% RATING EXCELLENT (1) : 11% POINTS VERY GOOD (2) : 29% 2.4 FAIR (4) : 7% GOOD (3) : 24%
  • 17. > WHERE DO YOU BUY PIZZA FROM? > HAVE YOU HEARD OF PIZZA SOLA? 3% 13% Pizza Sola Vocelli's 27% 10% Max Flavor Yes, 43% Domino's 7% Pizza Bellino No, 57% Papa Da Vinci 7% Pizza Romano 13% Other 20%
  • 18. HAVE YOU HEARD OF PIZZA SOLA? YES NO WHY DO YOU CHOOSE TO NOT PURCHASE PIZZA FROM PIZZA SOLA? DELIVERY TOP 3 HABITUAL BUYING BHEAVIOR REASONS DO NOT KNOW ABOUT PIZZA SOLA
  • 20. 35+ YEARS OLD 18-24 YEARS OLD 25-34 YEARS OLD
  • 21. WHY STUDENTS? 18-24 YEARS OLD
  • 22. “ PIZZA SOLA EXPERIENCE For young adults looking to eat and drink with friends, pizza sola is the place to go because it provides pizza sola experience, which is the unique ” blend of “real.good.pizza”and “casual, exciting environment”
  • 23. PRODUCT PRICE PLACE PROMOTIONS
  • 24. PRODUCT PRICE PLACE PROMOTIONS
  • 25. PRODUCT PRICE PLACE PROMOTIONS
  • 26. PRODUCT PRICE PLACE PROMOTIONS
  • 27. PROMOTION KEY INGREDIENT 1 “Buzz” = engaging + participative events •BEER PONG NIGHT •PIZZA-BEER PAIRING NIGHT •COLLEGE FOOTBALL NIGHT •RUSH EVENTS
  • 32. PROMOTION KEY INGREDIENT 2 eye-catching promotional items Business Card
  • 33. PROMOTION KEY INGREDIENT 2 eye-catching promotional items Gift Cards
  • 34. PROMOTION KEY INGREDIENT 2 eye-catching promotional items Pizza Sola paper clips
  • 35. PROMOTION KEY INGREDIENT 3 Reach prospects and customers through web or network

Editor's Notes

  1. *AIB international. Org
  2. Total revenue Domino’s, Pizza Hut and Papa John’s (together 28.7%) had approximately 20% revenue increase
  3. Problem: did not really identify customer needs
  4. Ratings have to be done (those are the fake numbers)Good pizza but a bit pricey
  5. Pizza Sola Company AnalysisDecreased
  6. Three segments should be targeted25-3418-2435+
  7. Three segments should be targeted25-3418-2435+
  8. 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