Businesses operate in a very competitive environment where they compete for customers, opportunities, and resources. As a result, every business must come up with strategies of realizing the competitive advantage. One of the strategies employed by different businesses relates to pricing (Abrate, Fraquelli & Viglia, 2012). Most business owners and business managers have realized that most customers are sensitive to the prices charged to different product and services. As a result, they come up with pricing strategies that will attract customers. This part of the paper focuses on the pricing strategies employed by major pizza chains.
The three main pricing strategies employed in setting prices of pizza include neutral, penetration and skim. Penetration pricing strategy involves setting the low price about the prices offered by the competitors. Neutral pricing strategy involves coming up with a price that matches the prices in the market. Skim pricing strategy involves setting higher prices so as to attract people with high level of income.
Pizza Hut and Papa John’s use the penetration strategy because they aim at attracting as many customers as possible so as to improve their sales. Domino’s uses the neutral pricing strategy to ensure that their prices match the market price of a pizza. Papa Murphy’s uses skim pricing strategy so as to attract people with higher incomes. The brand of pizza that was priced out is Little Caesars.
My perception of these chains’ pricing strategies changes based on this exercise. Understanding how different brands of pizza come up with the prices helped me realize the factors they consider when setting the price. The main factor that complicated price comparisons relates to the quality of the product. I felt that some product should be priced based on their qualities. The chains that represent the greatest value relate to Pizza Hut and Papa John’s because they offer best quality products at lower prices. High-quality product help in meeting the needs of the customers while the prices help in generating more sales.
Marketing is important in any business because it helps in creating awareness about the products or services to the consumers. Companies spend a huge amount of money on marketing to ensure that their products get the largest segment of the market. It is important to use the most appropriate marketing strategy so as to realize the best results (Galician, 2013). Campaign stories are used to convey marketing message across various media. This part of the paper focuses on creating a Storify story for an advertising campaign.
Brujas of the Bronx
There are many reasons to engage in physical activities, which rangers from entertainment to keeping fit. There is need to choose the physical activity to give exceptional experiences to the individuals. Brujas of the Bronx is a crew of women who are focused on creating skateboard and teaching women who to skate. Brujas represent a group of Native women living in New York who are focused on cultivating and creating opportunities for women so as to empower them.
The main headings that I found in different media include, “Cool girls redefining skateboarding,” “The Bronx-based skate crew Brujas,” and “Brujas of the Bronx.” The message relating to cool girls redefining the skateboarding, which was used in Twitter was useful in conveying the message relating to women who are focusing on introducing new things in skateboarding. The subtitle of “The Bronx-based skate squad Brujas,” was used to convey the message that there is a crew in the Bronx that is involved in skating. The subtitle, “Brujas of the Bronx,” which was found in New York Times, was used to convey the message relating to a group of girls in the city who are empowering the women through skating.
The main element that unifies the campaign is the message. The title and all subtitles contain information that conveys the same message. The element of the similar message was effective to help people understand the message that the Storify story intended to convey.
Any company must identify a market segment, which contains the potential customers who would buy the product and the services offered to the market. Geodemographics offers a common and effective ways of focusing on a segment of potential customers. It focuses on both demographic data like gender, income, age and marital status. It also focuses on psychographic data like hobbies, values, habits, spending habits of people (Wedel & Kamakura, 2012). In this part of the paper, I will use Prizm Premier to determine the segment that best describes my product.
The life stage group and segment that best matches my product is younger years. This segment is common in the place where I live because most of the people living in this area are college students and individuals who are newly employed. The name of the product, which in intends to promote from my mentor marketer in my target segment is MaddioPizza.
MaddioPizza is a unique pizza, which is made from a combination of rich nutrient ingredients. The pizza is made of marinated chicken breast, a pleasant mix of tomatoes, spinach, sweetcorn, and mozzarella. The pizza provides the consumer with 933kJ of energy, 3.1 g of saturate fat and 8.8 g of protein.
In my promotion, I intend to offer the target customer a great deal of a cheap price, which will make the product affordable to every customer. Offering the best price for the product will suit my target market segment because it involves individuals with low level of income.
Most people in younger years, who are the majority in my area, prefer getting food from restaurants instead of cooking in their houses. Thus, targeting this market will offer a great market for the product. Additionally, offering the product at a very competitive price will encourage the customers to buy MaddioPizza.
My Premier Prizm segment relates to Midlife success, which involves childless single persons, and college educated residents. The choice of this segment relates to their purchasing power. The customers in this segment will purchase a huge number of MaddioPizza, which will help in driving the sales. The “popularity” index of pizza in my area is 75%. The famous town in my location is Chester.
Different companies enter into the foreign market with the aim of expanding their business. Companies in food industry always seek to expand their business by opening branches in foreign countries. One of those companies is Pizza Hut, which opened a new branch in China. This means that my mentor marketer has done business both in U.S and China.
Pizza Hut entered the Chinese market in the year 2015. My mentor marker faced several challenges when entering the Chinese market because the atmosphere of doing business in China is different from the one in the United States. The main challenge that the marketer faced relates to cultural norms of Chinese people, language barrier and local competition (Niu, Dong, & Chen, 2012).
The main changes that were made to the marketing formula in entering this market related to offering products at lower prices so as to attract new customers. Reducing the prices of pizza helped in realizing a competitive advantage over the local businesses. The company created promotion messages in the Chinese language so as to convey the marketing information to all people in China. The company made pizza using the ingredients, like pepper, which is part of Chinese cultural norms.
The entry into the market was successful because the company was able to get a market for their product in the first year of entry. The company was able to provide local customers with the products that are enjoyable and affordable.
Abrate, G., Fraquelli, G., & Viglia, G. (2012). Dynamic pricing strategies: Evidence from European hotels. International Journal of Hospitality Management, 31(1), 160-168.
Galician, M. L. (2013). Handbook of product placement in the mass media: New strategies in marketing theory, practice, trends, and ethics. Routledge.
Niu, Y., Dong, L. C., & Chen, R. (2012). Market entry barriers in China. Journal of Business Research, 65(1), 68-76.
Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.