Pizza Hut : A High Power Of Buyers Essay

The three top pizza chains in America are Pizza Hut, Domino’s and Papa John’s. The pizza business is very competitive. We are going to discuss the third-largest pizza company, which happens to be Papa John’s. John Schnatter is the CEO of Papa John’s, he founded the company in 1985 and he own 30 percent of the company’s assets. Papa John’s is different from the other pizza places because they pride themselves in using only fresh ingredients, by them using fresh ingredients this gives their pizza the distinguished taste that the consumers crave. The fresh ingredients are delivered two times a week is a part of the prideful quality center that Papa John’s has put in place to guarantee fresh quality ingredients. Another unique difference in Papa

For restaurant retailers, the power of suppliers is high. This can be indicated by lack of substitute produces and low importance of restaurants as buyers.

Boston Pizza is an international corporation. Its’ management team consists of chairmen and owners Jim Treliving and George Melville. Mark Pecinda , the president and chief executive officer, and Wes Bews, the chief financial officer. Both Jim Treliving and George Melville have been in a partnership for 40 years when Melville was Treliving 's business consultant for four years until 1973, at that time he became Treliving 's partner in the business

The three greatest strategic challenges Papa John’s currently faces are competition, pricing, and meeting growth targets. As with any organization, they are continuously competing against other firms in their markets. The market is highly competitive with other retailers such as Pizza Hut, Domino’s, and Little Caesars also looking to create a competitive edge for their businesses. Although Papa John’s has created a successful brand they must still work at providing products and services which their competition cannot. Through marketing and technology they must understand their market in order to ensure they are staying true to their core values while providing more of what the consumer is looking for above their competitors.

You do not have to make rounded pizzas, like all Domino’s store make. You can go your own way and make square pizza’s, have your own cheese, and your mom’s secret ingredient pizza sauce. On the other hand, you have to come up with your own ideas, logo, name, what do sell, and many other things, which for many is really hard to do. Advantage for a franchise is they are close to be recession proof. For a entrepreneur to open a new business in a recession can be a really desired. Loss of jobs, and cut downs in pay, may want them to be in more control of their earnings, and open up their own store. During a recession, Mom and Pop store have hard time to make ends, because of prices getting higher, and cutting down on sales. On the contrary, franchises look at this a good time to invest in lower market priced places and open up new stores. What drives every business is the cost and revenue. The cost of opening up your own business is leads to you won't be able to buy in bulk through the franchise, which is always cheaper. That leads to higher prices on your product, or less revenue. That is why the startup cost is really high for every independent business. Why go into having your own “Mom and Pop” business? You do it for the potential of success. Do you wanna go the safe way, where the track record of a franchise shows that you will get X amount of money, or do you want to go into business by yourself and have the potential of

One of the main reason’s Papa John’s has had so much success since the time of their inception is the limited menu and freshness of their product. A limited menu could be considered as a disadvantage, but for Papa John’s the limited menu is an advantage as the main focus is their fresh pizza (Parnell, 2014). They have received numerous awards for customer satisfaction, as they only use fresh ingredients and vegetables on their pizza (Parnell, 2014). They also require all of their franchise locations to purchase their ingredients from a list of approved suppliers. More recently, the pizza industry has changed by offering more low cost pizza options from companies like Little Caesar’s and Cici’s (Parnell, 2014). The pizza from these locations

Compare with other industry Food industry the waste of raw materials will be higher, this is because of perishable ingredients that are used in preparation of food items, therefore if Dominos are unable to manage their inventory effectively. It will increase the wastage which also increases the cost at the end, which Dominos has to increase their selling price this may lead their customers to turn away to the competing company’s like Pizza Hut. This will not only reduce the sales, it effects the enter company’s cost because in order to keep customers company has invested a lot of money on its marketing and promotional activity at the end of the day company has lost their customer as well as market share. Basically because of miss management in operational activities like inventory it is will reduces the company’s profit. Dominos are in the industry that has higher inventory of raw- materials, therefore they need to take consideration to minimize the waste and maximize effective way in managing the

Domino’s Pizza has chosen a market follower strategy. Product, one of the four Ps of the marketing mix, is an area where the market leader continues to influence Domino’s. Competition forces changes to the market followers. The first change to the product offering at Domino’s happened almost three decades after they opened. In 1989, Domino’s Pizza introduced a deep-dish pizza (Laukens, 2010). While it would stand to reason that the new addition to the menu was an answer to a competing product, Domino’s had entered a market where deep-dish was the only acceptable version of a pizza.

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.

Pizza hut is faced with challenges as they try to get their “toe in the water” and enter the market in Moscow. The challenges are:

The presence of giant pizza companies from its origin, Italy, and from its Western counterpart, the US, in almost every corner of the metro is enough to reveal the Filipinos’ love for pizza. Next to fast-food chains selling burgers, the most patronized parlors are those engaged in pizzas and it makes a potential high-income business. Pizza industry in the country is dominated by Pizza Hut, Shakey’s and Greenwich. Having a strong brand equity in the pizza industry allows a company to gain a significant advantage in the market. Customers in the pizza industry place a high value on the product quality and price of a company. Maintaining a good reputation is very important in this industry for companies because customers will build a relationship with the company and will keep on coming back or ordering from that company if they feel like they are getting a good deal.

Hometown Pizza has been extremely successful in the United States. As you requested I have looked into our own success and I believe it is now time to expand our business. I believe that it is time to expand our business internationally. In order, to expand our business and help us be successful internationally I have been looking into Pizza Hut and their success. To help understand Pizza Hut’s success internationally; I have chosen the following nations to help better understand their success:

Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America. It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold. Founded in 1960, Domino's Pizza is the recognized world leader in pizza

In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country

When it comes to pizza, everyone has an opin ion . Some of us think th at our current pizza is just fine the way it is. Others h ave a favorite pizza joint th at makes it like no on e else. And m any pizza lovers in America agreed up until recentl y that Dom ino 's home-delivered pizza was amo ng the worst. The home-delivery market for pizza cha ins in th e United States is approximat ely $15 billion per year. Domino's, which owns th e largest home-delivery market share of any U.s . pizza chain, is find ing ways to innovate by overhauling its in-store transaction processing systems and by providing other us eful services to customers, su ch as its Pizza Tracker. And