...Ingredients. Better Pizza. Papa John’s. Better Ingredients. Better Pizza. Papa John’s. Papa John’s Case Analysis Papa John’s Case Analysis Table of Contents Appendix2 Exhibit 13 Exhibit 24 Exhibit 35 Exhibit 46 Exhibit 57 Exhibit 68 Exhibit 710 Exhibit 810 Exhibit 914 Exhibit 1015 Recommendations16 Appendix Introduction * Pizzerias represent 17% of all restaurants worldwide. In the United States alone, 93% of Americans eat pizza at least once a month. * Papa John’s Pizza is the number three pizza chain in the world with 6.3% market share, trailing only behind Pizza Hut and Domino’s. * Papa John’s first location opened in 1984 by John Schnatter, who is now known as “Papa John.” He previously sold pizzas from the broom closet of his father’s restaurant. * Papa John’s prides themselves on “Better Ingredients. Better Pizza. Papa John’s.” As a result, Papa John’s focuses on ingredients rather than expanding the menu. * Papa John’s has 628 company-owned and 3,255 franchised establishments in every state in the United States and in 32 countries. * However, the pizza industry has seen changes take place. * Unlike any time in the past, people are more health conscious and worry about what and how much they eat. * Technology has also caused changes in the industry due to social media and smart phone apps being used as a tool to reach customers. * Papa John should recognize these...
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...Papa John's In a narrative format, discuss the company from a strategic perspective. Information concerning recent changes in the firm is readily available online and should be accessed. Strategic issues should be discussed in "real time." Papa John’s International was founded in 1984 when John Schnatter delivered his first pizza. The company now has nearly 4,200 locations, with operations in all fifty states and thirty-five countries (About Papa John's). To separate themselves in a crowded pizza market Papa John’s has always stressed a higher-end product by touting their ingredients that results in a superior pizza. The company’s strengths include the aforementioned quality ingredients, as well as an internal commitment to their employees by offering industry leading training programs aimed at providing the same consistent service to their customers. They also have an innovative marketing plan that reaches across the United States, specifically targeted for each location where the store has a location. They have also begun partnership with the National Football League and Pepsi to increase their presence during the 2013 football season through in-game promotions and social media activations (Papa John's Tops NFL Alliance With NFL Network 'Thursday Night Football' Campaign , 2013). The biggest strategy advantage Papa John’s has over their competition is the small amount of capital needed to invest in store location. Each space is designed for only carry out orders cutting overhead...
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...Papa John’s Pizza Analysis Executive Summary These recommendations will enable Papa John’s to increase their market share and grow their customer base. These recommendations are based upon in-depth analysis of the company’s dominant economic forces, macro-environment, The detailed findings, resulting from this analysis, are contained in the appendix that follows the recommendations. The appendix is comprised of seven exhibits, and these exhibits are referenced in the recommendations. This recommendation includes introducing global topping preferences across different nations, entering the frozen pizza market and allowing premade Papa John’s pizza to be sold in stores, and opening dine-in restaurants. Papa John's can capitalize on these new growth and improvement opportunities, to increase their revenues, efficiencies, and customer base. Recommendation Papa John’s is the world’s third largest pizza chain, trailing Pizza Hut and Dominos. (Exhibit 4, pg. 11) Although Papa John’s has established a notable amount of success in the industry, to have only existed for a shorter period of time than its rivals, there are existing opportunities that would help Papa John’s to gain competitive advantage and build on its core competencies. Currently Papa John’s is known for its commitment of quality ingredient and quality pizza. (Exhibit 6, pg. 13) Because Papa John’s has a base of customers that already trust the company to deliver great value, this gives Papa an...
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...Introduction Father John's International, Inc. positions as the third greatest pizza chain in the United States, trailing just Pizza Hut (a division of YUM! Brands, Inc.) and Domino's, Inc. The association has collected a chain of more than 2,800 pizza transport and carryout diners working under the trademark "Father John's" in 49 states, the District of Columbia, and 20 worldwide markets. Pretty much 570 of the outlets are association had, with whatever remains of franchised. The firm also foundations around 115 Perfect Pizza diners in the United Kingdom. After the opening of its first store in 1985, Papa John's turned out to be rapidly through the late 1990s previous settling in as a more create association in the following decade. In an outstandingly centered piece of the restaurant business, Papa John's has made sense of how to remove an exceedingly beneficial corner by offering a to a great degree confined menu involving pizza, breadsticks, cheddar sticks, chicken strips, chicken wings, and canned or bundled soft drinks; and by using splendid fixings and touting them in its trademark witticism "Better Ingredients. Better Pizza." Company originator John Schnatter continues holding around a 29 percent stake in the association. Named number one Brand in the Pizza Category in the 2002 Brand Keys Customer Loyalty Awards. The yearly Brand Keys Customer Loyalty Awards regard the associations that "are most undauntedly devoted to making steadfast customers." Father John's was the most...
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...Industry Analysis Porter’s Five Forces • Competitive intensity within the industry o Compared to nationally owned pizza restaurants rivalry is high. o Compared to locally owned restaurants rivalry is high. • Threat of new entrants o Threat of new entrants from nationally owned pizza restaurants is high because they have the capital to open multiple units. o Threat of new entrants locally is low because of the high cost involved to open a new pizza restaurant. • Threat of substitutes o There are many choices for consumers to purchase pizza from locally owned to national chains therefore the threat of substitutes is high. • Bargaining power of buyers o With the multiple outlets available for consumers the bargaining power of buyers is high because if prices are too high they will shop elsewhere. o Additionally, many consumers switch between pizza restaurants because they choose the outlet with the best coupon. • Bargaining power of suppliers o The bargaining power of suppliers is low for the nationally owned pizza restaurants so they can demand lower prices. o The bargaining power of suppliers for locally owned pizza restaurants is high because they do not buy in large quantities. • All things considered, Porter‟s Five Forces are high so the industry may not be as profitable or attractive. However, in any case, the techniques implemented by successful, market players after provide them with an opportunity to leverage their business processes...
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...NEW DELHI INSTITUTE OF MANAGEMENT SERVICE MARKETING COMPARATIVE STUDY OF THE VARIOUS PIZZA OUTLETS TABLE OF CONTENTS Topic | Page number | 1. Executive summary | 2 | 2. Introduction to fast food | 3 | 3. Introduction to pizza | 5 | 4. Domino’s Pizza | 7 | 5. Pizza Hut | 10 | 6. Papa John’s | 13 | 7. Comparative study based on 7P’s | 15 | 8. Key Findings | 17 | 9. Recommendations | 18 | 10. Bibliography | 19 | EXECUTIVE SUMMARY TITLE: “Comparative study of the various pizza outlets and formulating strategies for the weakest one.” This study was done to determine the strongest and the weakest brands in the Indian pizza market. The outlets chosen for the study were: Domino’s Pizza, Pizza Hut and Papa John’s. We went to each of these outlets of Greater Kailash area and studied the 7P’s of service over there. After studying all the aspects of 7P’s, we came to the conclusion that the outlet satisfying all the 7P’s was Domino’s Pizza, whereas Pizza Hut was second with a few dissatisfactions. Papa John’s was the weakest one, with low customer base. Some of the recommendations for Papa John’s to implement, so as to increase their customer base and give more competition to the top 2 pizza companies are: 1. Advertise more on print as well as electronic media, so as to position themselves in the minds of the consumers, just like domino’s and pizza hut. 2. Decorate their interiors and lightings creatively so...
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...Introduction The Papa John’s case provides a classic example of a company that entered a highly saturated and mature market and was able to enjoy immense growth and success due to its creative product differentiation strategy. The company’s motto has been consistent from the day the first restaurant was opened: Superior ingredients and a superior product from its competitors. John Schnatter took the basic concept of product differentiation and positioning to new heights as he created a strong global brand, which had an unprecedented track record of success and customer loyalty over its competitor’s pizza products. This case analysis will examine the company’s initial meteoric growth, leveling performance in recent years while attempting to foreground the challenges faced by Papa John’s and evaluate the strategic options and possible responses to pressures through an evolved product differentiation and growth strategy. Internal/External Environment & Pressures Internally, the company had enjoyed astronomic growth since its inception in the mid 1980s, but began to see the impact of a slowing U.S. and world economy in 2008 that began to put pressures on the company’s year-over-year growth and profitability. The time period referenced in the case indicated that Papa John’s in 2007 had 14.8% market share of the $13.5 billion pizza food service market. Despite showing profits each year on its income statement, the year-over-year growth numbers were nowhere near what...
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...Case Assignment 1: Papa John’s International, Inc.: Twenty-First Century Growth Challenges Inverted broom closet in a hometown lounge. He called it Papa John’s. Today, there are over 2,500 locations across the North America, South America, Africa, Europe and Asia. While Papa John’s has done a very good job with their forward thinking strategies, there are still some avenues to be explored to keep them competing as one of the world’s best pizza chains. During the first year of the company’s inception, John was able to grow his business from one store to eight, and generate $500,000 in revenue. While Papa John’s may not have had true first movers advantage (Pizza Hut opened in 1958), they did have a distinct advantage when it came to product differentiation. Papa John’s prided themselves on “better ingredients” making a better pizza, which is something they stand by to this day. This selling point is what gave them an advantage over the likes of Pizza Hut, or Dominoes (est. 1967), and made it possible for them to enter the market. One of the early strategic moves made by John was to implement a hub-and-spoke type “commissary” (or quality control center) that was responsible for delivering ingredients, supplies, and dough to a number of stores in the surrounding geographic location. This allowed John to ensure the quality of the food being served. These centers were key to early expenditure and quality control, but would be hard to sustain in future expansion due to numerous...
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...Papa John’s Pizza John Schnatter began selling pizzas out of the back of his father’s tavern in 1983, and opened the first Papa John’s one year later. He began to grow Papa John’s on the ideas of superior customer service, a quality product, and keeping a limited menu. As of 2012, Schnatter has grown Papa John’s to the third largest pizza chain in the world. Over time Schnatter has realized that he must expand his menu to keep up with the other pizza chains. He has also had to keep up with the advancing of technology such as applications for smart phones and online ordering. He has also had to deal with the unstable economy and the recent health craze in the United States. After a thorough examination of the pizza industry, I have put together a complete industry and company analysis to assess Papa John’s current market position and determine its potential for success in the future. In performing this analysis, I have developed three recommendations for the continued success for Papa John’s in the future, and help them over take Domino’s and Pizza Hut as the market share leader. Recommendation #1: Expand Menu to Add Healthier Options * When John Schnatter started Papa John’s, he ran on the business idea of keeping a limited menu; however as he watched other pizza chains add items to their menus, he expanded Papa John’s menu * As stated in exhibit 3, consumers have started to try and eat healthier in recent years * Papa John’s has added chicken and wings...
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...February 24, 2014 30 Years of Papa’s Pizza It all started 30 years ago, when John “Papa” Schnatter crafted the idea to knock out a broom closet inside of his father’s tavern located in Jeffersonville, Indiana (Papa Johns International 1). After receiving a business degree from Ball State University and turning his father’s failing tavern around with an idea of pizza, Mr. Schnatter would wind up selling his beloved ’71 Camero for a $1600.00 investment towards pizza equipment. (Papa Johns International 1) It was that entrepreneurial move which would eventually solidify an excellent business model to launch what is now known as “Papa John’s” and currently the third largest pizza franchise. Taking a look at how Mr. Schnatter rose his company to that achievement; you will see that popular partnerships, international expansion, and a first-class outlook on “quality over quantity” pays out in the long run! Papa John’s was conceived on October 2, 1984, when Mr. Schnatter knocked out a broom closet inside of his father’s tavern. (Papa Johns International 1) The business was nearly bankrupt, but Mr. Schnatter took initiative and planned to sell $5 dollar pizzas and 50 beers up front in his father’s business. It was that entrepreneurial move to start his own business that would keep that drive going. Only after a short and successful year, Mr. Schnatter would open his first Papa John’s store. Papa John’s started franchising their business in 1986, and on June 8th, 1993 the business would...
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...300 corporate and franchised stores in 65 international markets and all United State. Problem 1. Domino should maintain low-cost or focusing more health conscious approach which leads to higher price. 2. How can the company maintain efficiency in this high competitive environment which most of the firms provide almost the same product as now Domino is number two in the market. Analysis Five Forces Model Bargaining power of suppliers is low due to undifferentiated product from suppliers, low switching cost and easy to switch, and also lots of substitute of supply. Bargaining power of customers is low as the customers do not buy large volumes, no concentration of buyers. Threat of new entrances is high due to high capital requirement to set up the chain, product differentiation expense required and cost disadvantage from similarity in product offering. Threat of substitutes is high due to lots of substitute and low switching cost. Competitive rivalry is high due to there are many company offer the same product and compete in the saturate market. Domino’s Pizza internal and external analysis. Strengths | Weakness | - Currently operate in more than 60 countries.- Number 1 in the pizza delivery segment and No.2 in the top U.S. Pizzerias.- Strong network in franchised and company owned.- Strong brand equity.- Effective supply chain management.- Heavy advertising to build brand image.- Leader in online and mobile ordering. | - High fat contain in product.- Lack of organic...
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...MGT 406 Case Study Papa John International 2007 Identification of competencies The 4 different competences of Papa John’s International include its focus on providing high quality products, operating system, marketing and franchise system. Providing High Quality Products Firstly, Papa Johns’ focus on providing pizzas of superior quality to its customers has laid down the foundation for its success in the long run. Unlike its competitors who focused on cost reduction, Papa Johns focused on differentiating its pizzas. In fact, they were also able to prove in court that they used fresh and better ingredients in comparison to its competitors. This allowed Papa Johns to be rated number one in terms of customer satisfaction among all pizza chains in USA. Applying the VRIO framework, it can be said that this focus provided value to the company owing to its many benefits. Although a restaurant chain selling pizzas was not rare, selling pizzas of such high quality was not common. At the same time, this is not easily imitable by companies because focusing on higher quality will need a major shift from their current procedures and marketing strategies. Furthermore, Papa Johns has been extremely organized in exploiting this competence to its benefit. Hence, as this competence fulfills all the criteria of the VRIO framework, it is both a core and a distinctive competence. Operating System Papa Johns’ efficient operating system is also considered to be one of the competences as...
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...1. Select a brand. Try to do an informal brand value chain analysis. Can you trace how the brand value is created and transferred? What is the role of the multipliers? Brand: Home Depot Marketing Program Investment: This is the first stage in the brand value chain. Home Depot began promoting early this year because of the early spring, advertisements about getting the yard ready for the summer and starting home improvement projects. Although Home Depot has started early advertising this spring does not necessarily guarantee success. Program Quality Multiplier: The quality of the marketing campaign can be based off of four main factors clarity, relevance, distinctiveness and consistency. Home Depots marketing campaigns are geared toward seasonal changes. The commercials clearly portray what projects need to get done and they offer discounts and specials on those items to bring in business. A marketing campaign that touches on all four factors makes a definite ROI. Customer Mind-Set: The customer mind-set is anything that consists in the minds of the consumer with respect to a brand: thoughts, feelings, experiences, images, perceptions, beliefs, and attitudes. Home Depot has created an image of their store. Customers know that Home Depot is a place to go for all your home improvement needs. They offer competitive pricing, knowledgeable staff, friendly service, clean environment, variety of products and flexible store hours. Marketplace Conditions Multiplier: There...
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...fast food too often can cause overweight, malnutrition,etc. Children's health will be affected. So they need to let children know don’t eat fast food too often. 3. What would have been the effect on McDonald’s and other fast-food companies if the plaintiff had won her lawsuit against McDonald’s? Explain. If the plaintiff had won her lawsuit against, McDonald’s should make some new health food in the market, not always deep fried foods, like French fries. All of no health food will let children get fatter and fatter, more fruits and veg.,salad will be better. Facts: A 19 years old girl sues Mcdonald's claiming they were the cause of her obesity. Issue:Does Mcdonald's have duty to warn customers? RULE:No,they don't have the duty. Analysis: Mcdonald's have no duty to warn customers because of this case and other threats of litigation. Fast food franchiser have introduced salad,lowfat foods and etc. 8.2 1. What is false advertising? What is puffery? How do they differ from one...
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...focusing on some of Hofstede’s and Trompenaars’ Cultural Dimensions. You are also required to briefly analyze the UAE website of papa john’s, providing suggestions on how they can further localize their content for a Gulf audience. 1. Video Presentation and Supporting Document Each student will be required to create a 3-6 minute video presentation (mp4 or other suitable format). Each student MUST produce a video presentation. Failure to provide a video presentation will result in 0% for the ENTIRE individual element of this assessment. The video presentation must be accompanied by a supporting document, using the template provided (maximum word count 1,500 words excluding reference list, appendix etc.) In your video presentation/supporting document, you need to look at a Gulf/Bahraini audience in terms of the following cultural dimensions. Focus on everyday examples about how people socialize, do business, communicate, eat out etc. (a) Uncertainty Avoidance (Hofstede) (b) Collectivism/Individualism (Trompenaars and Hofstede) (c) Universalism/Particularism (Trompenaars) (d) Neutral/Affective (Trompenaars) (e) Look at the Papa John’s UAE website (http://www.papajohns.ae/pj/) and provide 3 relevant examples of how it needs to localize its web content for a Bahraini/Gulf audience. Link your suggestions briefly to your previous analysis. (Bahraini or gulf) Answer: -Part one: (Bases on my own experience) Hofstede’s and Trompenaars’ Cultural Dimensions: Text:...
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