...Analysis of Papa John’s I. Brief Introduction/Exec Summary The competitors in the pizza industry seem to have balance and be in cooperation with each other. While there are only a few main competitors, they do not seem to be in a price war. The only way for companies to grow in this industry is to take market share away from already-existing companies.The competitors do not differentiate themselves via price, but rather through different promotions and products ("Papa john's international,").Papa John’s have several strengths which include in-house commissaries and a strong supply chain. They also have a few weaknesses, such as fewer locations than competitors and low switching costs for customers.The purpose of this report is to assess Papa John’s in terms of its overall performance, mission, strategy, and capabilities. Strategy is analyzed from four components, which are goals, products market focus, value proposition, and core activities. At last, performance matrix is used to classify operating performance and organizational health. II. Assessing Firm Strategy Mission and values are very useful to inspire an organization and give it a basic sense of direction and broad guidelines for getting there. According to their web site, Papa John’s has four mission statements for customers, team members, franchisees, and shareholders. For customers, they will create superior brand loyalty, like "raving fans", through authentic, superior-quality products, legendary customer...
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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 marketing and production strategies do support its competitive strategy quite well. The marketing and production strategy for Papa John’s is to differentiate themselves from their competition. They successfully do this by placing customer service, quality, and fresh ingredients as the main focus of their business. They have a marketing campaign that is seen on TV, in print ads, mailers, and also have mobile and social media. The way that they show they are different, is having their ads show the focus of what they offer. Even though they have higher cost, it is necessary to have a great quality of pizza. Customers are willing to pay a higher price for this reason. The competitive strategy is not necessarily to be in total competition...
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...Schnatter founded papa John’s Pizza in the year 1984. John began his career in a small pizza restaurant in the City of Jeffersonville, Indiana. Upon completing his High School education, he matriculated to Ball State University. While attending college at Ball State he continued working in the pizza industry, working at another pizzeria. It was here that he learned much of what he knows about the pizza business. After completing college he returned home and found that, his father’s Bar was encountering financial trouble. Seeing this, John decided that he had to do something. He decided to sell his 1972 Camaro and use the money from the sale of his car to save his dads bar and knock down one of the walls in the bar and use this space to make a small pizzeria inside the bar. This was the first official Papa John’s Pizzeria. “I put my heart and soul, and everything I had learned from my father and grandfather, into my pizza business, and it paid off” (papajohns.com, 2012). From the beginning of his pizzeria, John used a totally different approach to pizza making than other pizzerias. He made a decision to put the same effort of a small town pizzeria into the mentality of the big pizzeria business plan. He knew that having superior quality, great customer service, and exceptional community service would create multitudes of satisfied customers for his business. As a result, Papa Johns has been rated #1 among all pizza chains in the United States. Papa John’s Pizza target market...
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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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...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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...RUNNING HEAD: PAPA JOHN’S/FACEBOOK CASE STUDY Unit 8: Papa John’s/Facebook Case Study xxxxxxxxxxxxxxx BUS107003016*201002 Week Eight December 6, 2009 RUNNING HEAD: PAPA JOHN’S/FACEBOOK CASE STUDY Papa John’s/Facebook Case Study Papa John’s/Facebook Case Study Papa John’s advertising developed slowly over the years. Papa John’s started out advertising by word of mouth – customer to customer. Papa John’s did not start advertising on television until 15 years after its doors opened and that was 10 years ago. Their word of mouth advertising did not turn into a social networking advertisement until November 2008. Papa John’s strengths are that they are a good pizza place. They are a contender with the other big pizza company names in the market. One of Papa John’s weaknesses was due to the fact that they did not start advertising for many years. Once they did people would say, “I have never heard of Papa John’s”. After a period of time their slogan sticks. They advertise “Better ingredients, better pizzas, Papa John’s”. It is an accreditation to their television advertising campaign that that slogan remains with people. I cannot think of any immediate problems except for the fact that they did not start advertising for such a long period after they opened their doors. I believe that their move to advertise on Facebook was ingenious. Many people on Facebook become fans of almost anything. Becoming a fan of Papa John’s on Facebook enabled...
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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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...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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...Introduction Papa John’s is a well-established International franchise restaurant chain from USA and it is the 3rd largest pizza company in the world, with headquarters in Jeffersontown, Kentucky, near Louisville, USA. Papa John’s was founded by John Schnatter. When he was a high school student John had a part time job which is working at a local pizza pub in Jeffersonville, Indiana, he felt that there was something missing from national pizza chains which is a superior-quality traditional pizza delivered right to the customer’s door. To fill that void in 1983 John picked up his business degree from Ball State University and later on in 1984, John opened his first pizza restaurant named Papa John’s Pizza and Papa John's has been going strong ever since. Today, Papa John's is the recognized leader of the pizza category and now owns or franchises more than 3,500 restaurants in all 50 states and 29 countries. More than 25 years later, one thing remains the same – Papa John's is still fully committed to delivering on its brand promise of "Better Ingredients. Better Pizza." For 10 out of the last 11 years Papa John's has been rated number one in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Besides pizza, Papa John’s also serves other menu such as pasta, soup, appetizer and also rice. It may be the same with other restaurants that serve pizza, but in Papa John’s quality is their main priority. In Malaysia, Papa John’s has 19 outlets...
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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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...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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...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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...Desire Nana HRM 587 Projects Domino Pizza vs. Papa John Pizza’s Information System change. Brief history: Domino’s was founded in 1960 by Tom Monaghan and his brother James when they purchased a single pizza store in Ypsilanti, Michigan. The company slowly began to grow, and by 1978, Domino’s had 200 stores. Today, the company is headquartered in Ann Arbor, Michigan, and operates almost 9,000 stores located in all 50 U.S. states and across the world in 60 international markets. In 2009, Domino’s had $1.5 billion in sales and earned $80 million in profit. But it also benefits from highly effective information systems. Brief history: In 1983, John picked up his business degree from Ball State University and went back to Jeffersonville, Indiana. There, at the age of 22, he knocked down the broom closet of his father's tavern (Mick's Lounge), purchased $1600 worth of used restaurant equipment, and began delivering pizzas out of the back of the bar. Today, the company has benefits from information system/ Changes that I will be discussed in this case are: 1- What kinds of information system both companies have adopted 2. How do these systems help Domino and Papa John's improve their business performance? 3. How did the online pizza ordering system improve the two processes of ordering pizza? 4. Which company has a completive edge? References: Retrieved on Sep 08, 2012 from the website: http://www2.sta.uwi.edu/~anikov/info1400/lectures/02-IT...
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...“Papa John’s Pizza – Better Ingredients. Better Pizza.” This is the brand promise of Papa John’s International and the foundation of a careful mix of business strategies used to stand out from, and remain ahead of the competition. Papa John’s was established by a young entrepreneur that had the idea of creating a “better pizza” and with his passion and creativity, created “the third largest pizza company, with more than 2,800 pizza chain restaurants.” Papa John’s International, Reference for Business Encyclopedia of Business, 2nd edition, Oe-Pa. To achieve the goal of better pizza Papa John's has focused on the pizza eschewing pasta and sandwich items. In one article the author points out that everyone involved in the pizza business pretty much shares the techniques and activities needed to be competitive at the operations level: "Since there is no real secret to getting into and being in the pizza business all players basically have shared knowledge of what the competitive advantages are that each could hold". "The Associated Press (2009) Papa John’s successful strategies position themselves in the pizza market by offering reasonable prices, great quality, great service, and a selected menu, which aids in helping in becoming better than the competition. According to CEO Niegel Travis, Papa John’s focused on product quality and service which ensure profits. The trade-off is to avoid discounts, but by focusing on the quality of their ingredients, Papa John’s has successfully...
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