Marketing What is Marketing? Segmentation and Marketing Marketing Services.
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MARKETING PLAN
DECEMBER 2012
REAL. GOOD. PIZZA.
PIZZA SOLA
AGENDA BACKGROUND
PROBLEMS
MARKET ANALYSIS
PROPOSED MARKETING STRATEGYINTEGRATED MARKETING PLAN
ACTION PLAN
MARKET SITUATIONPRODUCT SITUATIONCOMPETITIVE SITUATIONDISTRIBUTION SITUATIONMACROENVIRONMENT SITUATIONSWOT ANALYSISRESEARCH
BACKGROUND
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
BACKGROUND
LocationOakland, Eastside, Southside, Cranberry
Hours of OperationMon-Wed: 11am – 12pmThurs-Sat: 11am – 3am Sunday: 12pm – 12am
New York style PizzaHigh Quality & Fresh Ingredients Wide selection of sides and beverages
PROBLEMS
LOW BRAND AWARENESS
PERCEIVED ASEXPENSIVE
LIMITED CUSTOMER
BASE
43% students heard of Oakland Pizza Sola
*25-34 age group*8% claimed they visited Pizza Sola
Only 10% claimed price is reasonable
SITUATION ANALYSIS
MARKET SITUATIONPizza Restaurant Industry has felt the heat over many years
Major players
Papa John’s6.3%
Pizza Hut 11.6%
Domino’s 9.8%
• Together, 20% increase in sales from 2006 to 2012
• Increasing number of single-location stores
• Grocery store’s pre-baked pizza gaining popularity*
MARKET SITUATIONPizza Restaurant Industry has felt the heat over many years
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201232000
33000
34000
35000
36000
37000
38000
39000
40000
41000
42000
years
Reve
nue
($m
) Reflecting trends, revenue per individual store has actually
decreased
CAGR 12%
CUSTOMER ANALYSIS
25-34 years old
18-24 years old
35+ years old
AGE BREAKDOWN REASONS THEY KEEP COMING BACK
“
”
I keep coming back to Pizza Sola because it offers very large portions and its pizza is delicious!
Andy T. (23)
PRODUCT/SERVICE SITUATION
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
COMPETITOR SITUATION
MAJOR CHAIN COMPETITION
MAJOR SINGLE STORE COMPETITION
INDIRECT COMPETITION
VOCELLI PIZZA, DOMINO’S, PAPA JOHN’S
MAXIMUM FLAVOR, PIZZA BELLINO, MINEO’S PIZZA, PAPA DA VINCI, MIA’S PIZZA, PIZZA ROMANO
CHIPOTLE, MCDONALD’S, FIVE GUYS
DISTRIBUTION SITUATION
PIZZA SOLA CUSTOMERSSUPPLIERS
MACROENVIRONMENT ANALYSIS
RECESSION
• Unemployment & consumer spending
• Demand for lower-priced items
HEALTH INDEX
• Consumers are aware of issues related to obesity and weight
PRIMARY RESEARCH METHODS
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
DIRECT CONVERSATIONS
• 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”
PIZZA SOLA CUSTOMER SURVEY
26.7
1.6
1.7
2.4
YEARS
TIMES PER MONTH
RATING POINTS
RATING POINTS
31% 20% 15%
EXCELLENT (1) : 26%VERY GOOD (2) : 47%
GOOD (3) : 6%
EXCELLENT (1) : 11%VERY GOOD (2) : 29%
GOOD (3) : 24%FAIR (4) : 7%
48% 16% 7% 1%
31%3%
18-22 23-27 28-32 33+<18
0-1 TIMES 2-3 TIMES 4-5 TIMES 6-7 TIMES
OAKLAND RESIDENTS SURVEY
Yes 43%
No 57%
> >WHERE DO YOU BUY PIZZA FROM?
HAVE YOU HEARD OF PIZZA SOLA?
3%
27%
13%
20%
7%
7%
10%
13%
Pizza SolaVocelli'sMax FlavorDomino'sPizza BellinoPapa Da VinciPizza RomanoOther
CMU STUDENTS SURVEY
YES NO
HAVE YOU HEARD OF PIZZA SOLA?
WHY DO YOU CHOOSE TO NOT PURCHASE PIZZA FROM PIZZA SOLA?
DELIVERYHABITUAL BUYING BHEAVIORDO NOT KNOW ABOUT PIZZA SOLA
TOP 3REASONS
MARKETING FOCUS
SEGMENT
25-34 YEARS OLD
18-24 YEARS OLD
35+ YEARS OLD
TARGETING
18-24 YEARS OLD
WHY STUDENTS?
POSITIONING
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”
“ ”PIZZA SOLA EXPERIENCE
MARKETING MIX
PRODUCT PRICE PLACEPROMOTIO
NS
MARKETING MIX
PRODUCT PRICE PLACEPROMOTIO
NS
MARKETING MIX
PRODUCT PRICE PLACEPROMOTIO
NS
MARKETING MIX
PRODUCT PRICE PLACEPROMOTIO
NS
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