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Target Market Analysis of Pizza Pizza

Term Paper Instructions:

Strength

Pizza Pizza operates as the largest quick service restaurant in the pizza category in Canada (Pizza Pizza, 2019). In total, there are over 750 restaurants and they are most concentrated in Alberta and Ontario (Pizza Pizza, 2019). They have a strong market presence in Alberta with 101 Pizza 73 stores, and 564 Pizza Pizza stores in Ontario (Pizza Pizza, 2019). Overall, this establishes the company as a dominate player in the quick service pizza industry.

With the proliferation of ecommerce and digital infrastructure, Pizza Pizza has adapted to new trends and has invested heavily in their online capabilities. To order a pizza in the past, customers had to call a store, or physically enter a store to place their order. With Pizza Pizza’s investments in their digital infrastructure, customers can order directly on their website or on the Pizza Pizza mobile app. The online ordering adds to the customer experience as it can be more convenient, previous orders can be repurchased, and delivery location is remembered. From Pizza Pizza’s perspective, online ordering requires less people to answer phones to take the order, increases the speed as orders can be sent directly to the kitchen, and reduces communication errors.

The company has demonstrated an ability to adapt to new health trends. For instance, in Appendix 1, Pizza Pizza introduced heathier options such as cauliflower crust on pizzas (Pizza Pizza, 2019). To maintain a healthy lifestyle, the Heart and Stoke Foundation recommends a diet high in vegetables and fiber (Heart and Stroke, 2019).

Pizza Pizza has partnerships with other strong consumer brands such as Cineplex. In a recent campaign offer, customers can add a two for one movie package to their meal – see appendix 2 for details. This offers customers a lot of value as consumers can also get an entertainment package with their meal. In addition, it may incentivize customers to buy more from Pizza Pizza, and potentially upsize their meal to get the movie package. It could also encourage more repeat customers given the value proposition and strong consumer experience. The Cineplex deal also does not cannibalize pizza sales.

The Cineplex deal may also align with their target markets. It would be attractive to families with young kids, university students, sports fans, and lower income customers.

They also have partnerships with professional sports teams in the NHL and NBA in Canada. For instance, customers can purchase single sliced pizza at sporting events. In addition, Pizza Pizza has launched several contests to win tickets to sports games. “Triple threat deal” basketball themed deals.

The food is well priced and caters to their value-oriented consumers. Plenty for twenty deal, “A lot for a little”.

Weakness

Geographically concentrated in mostly Ontario and Alberta markets. Limited diversification if there is a downturn in either Alberta or Ontario. Pizza Pizza has been marketing themselves in Manitoba and Saskatchewan, however mainly in the capital cities, around sporting events (MTS Centre, Investors Group Field and University of Manitoba) - in rural areas they are non- existent, while competitors such as Pizza Hut are found all throughout rural areas throughout Canada.

Most locations are setup as a takeout/delivery business so portion size likely to cater to bigger groups vs individual size

Due to changes in social culture – diet trends are shifting away from the QSR industry. Pizza is generally viewed as an unhealthy option for a meal, and with new trends that are trending world-wide (diets such as Keto which stay clear from high carbohydrate foods) and are quickly becoming prominent in society, Pizza companies must react to cater to that portion of society.

Brand is split between Pizza 73 and Pizza Pizza, so don’t get the full benefit of marketing dollars. Pizza 73 is operated differently than Pizza Pizza, where Pizza PIzza is a fully franchised brand (572 out of the 577 restaurants are franchised and licensed), whereas Pizza 73 restaurants are not franchised businesses but they operate as independent businesses (cdn.pizzapizza.ca)

A lot of people don’t know that it is the same company

Opportunity

New trends in the consumer behavior can open-up new market for Pizza Pizza. It provides a great opportunity for them to build new revenue streams and diversify into new product categories too.

Pizza as a family dining option in high context culture, middle-class families with busy lifestyles – Between work, kids, extra-curricular activities, it can be difficult to find the time to prepare a meal.

New customers from online/mobile order channel – Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for Pizza Pizza. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.

Staying at home trends such as “Netflix and Chill”. Technology that enables people to stay inside and order delivery from the mobile app.

Great exposure in sports stadium with campaigns like: Game Day coupons made Pizza Pizza became the top choice when families and friends get-together for sports games.

Threat

Strong competition – Dominos arguably has a better online ordering system. Dominos invested heavily in IT infrastructure. Once you order your pizza on Dominos you can track the progress – Order preparing, baking, delivery etc

Healthier eating trends – Pizza likely seen as unhealthy

There are more food delivery options to choose from. With UberEats, SkipTheDishes, etc, people have more options that didn’t previously exist. For example, not only can you order pizza to be delivered to your door, basically any restaurants can deliver now

This is the SWOT Analysis that was made up for Pizza Pizza and Pizza 73 - which are the same company (Pizza Pizza bought out Pizza 73 - however as outlined in the weaknesses - they have stayed separate entities).

I need a A complete target market analysiswith market segment(s) to articulate your organization’s position

Term Paper Sample Content Preview:
Target Market Analysis of Pizza Pizza Name Course Date A complete target market analysis of Pizza Pizza and pizza 73 with market segment(s) to articulate your organization’s positioning Introduction Marketing planning of the organization begins with decisions on the market goals. Once the goals are established, the next step in the strategic planning process is to select and analyze the market goals of the organization. A target market is a group of clients that the organization tries to guide its marketing effort to and the target markets share similar attributes. This is a target market analysis of Pizza Pizza focusing on the three main markets, the young low-income families with small kids, the frugal university students as well as sports and entertainment urban professionals. Young Low-Income Families with Small Kids “YoLos”  Market segmentation divides the market of potential customers into groups such as young families with children, based on their needs and how they respond to the marketing strategies. The customers in this demographic group are more price sensitive than the mature adults because their purchasing power is affected by financial responsibility to their children (Russell, et al., 2017). Since the population in the identified age group share similarities and tastes segmentation to young parents with children will be prioritized to increase sales. There is a focus on price and quality for this demographic group. Parents with children are less likely to make impulse purchase decisions compared to young adults without children, and differences in their purchasing power are considered in marketing strategies (Boyland & Tatlow-Golden, 2017). When marketing to the young families, the company emphasizes the message of having a good family time, by including both the parents and their young children in the messaging. Pizza Pizza has mainly focused on franchise network and same-store sales to grow, but need to be more effective targeting young low-income families with small children, by tailoring messages to this group. There is a growing demand for pizza in the market segment where there is an appeal to convenience, price, and accessibility since they have young children. There are easy dinner and breakfast options as well as lunches, which is one of the main drivers of growth for the Pizza Pizza and pizza 73. Merely featuring young parents with children people in ads is not enough when marketing to the demographic group as it must be relevant to their lives. Frugal University Students “FUs”  While the targeted university students are frugal, students tend to spend a higher percentage of their money on non-essential items food, but they are price sensitive and seek value for money. Pizza Pizza and Pizza 73 have already established a positive brand with the targeted customer based and the challenge is to be the preferred pizza of choice. Improving the marketing approaches by focusing on price, convenience, and value adjusting to fit consumer needs is an effective strategy when targeting the price sensitive university students. St...
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