MARKETING PLAN

DECEMBER 2012

REAL. GOOD. PIZZA.

PIZZA SOLA

AGENDA BACKGROUND

PROBLEMS

MARKET ANALYSIS

MARKETING PLAN

ACTION PLAN

MARKET SITUATIONPRODUCT SITUATIONCOMPETITIVE SITUATIONMACROENVIRONMENT SITUATIONSWOT ANALYSISRESEARCH

BUDGETING

BACKGROUND

LocationOakland, Eastside, Southside, Cranberry

Hours of OperationMon-Wed: 11am – 12pmThurs-Sat: 11am – 3am Sunday: 12pm – 12am

New York style PizzaHigh Quality & Fresh Ingredients Wide selection of sides and beerLarge dining area

PROBLEMS

LOW BRAND AWARENESS

PERCEIVED AS

EXPENSIVE

LIMITED CUSTOMER BASE

43% students heard of Oakland Pizza Sola

*25-34 age group*8% respondants visited Pizza Sola

Only 10% claimed price is reasonable

MARKET SITUATIONPizza Restaurant Industry has felt the heat over many years

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201232000

33000

34000

35000

36000

37000

38000

39000

40000

41000

42000

years

Reve

nue

($m

)

CAGR 12%

MARKET SITUATIONPizza Restaurant Industry has felt the heat over many years

Major players

Papa John’s6.3%

Pizza Hut 11.6%

Domino’s 9.8%

• Together, 20% increase in sales from 2006 to 2012

• Increasing number of single-location stores

PRODUCT/SERVICE SITUATION

Product Price Market Price

Pizza (14”) $13 $10.03

Wings (12 wings) $10.41 $8.77

Calzone $7.00 $6.57

Salad $6.84 $3.63

COMPETITIVE SITUATION

MAJOR CHAIN COMPETITION

MAJOR SINGLE STORE COMPETITION

INDIRECT COMPETITION

VOCELLI PIZZA, DOMINO’S, PAPA JOHN’S

MAXIMUM FLAVOR, PIZZA BELLINO, MINEO’S PIZZA, PAPA DA VINCI, MIA’S PIZZA, PIZZA ROMANO

CHIPOTLE, MCDONALD’S, FIVE GUYS

MACROENVIRONMENT ANALYSISRECESSION

HEALTHY EATING INDEX

GROCERY STORE OFFERINGS

NEGATIVELY AFFECTED PIZZA SOLA

SWOT ANALYSIS

STRENGTHQuality of foodUnique NY style pizzaVegetarian/vegan optionsPortion sizesCasual Dining area

WEAKNESSESNo deliveryHigh-priced menuLow recognition

OPPORTUNITYBuilding a brand identitySponsoring school eventsPromotion of vegetarian and vegan menu

THREATRise of fast casual restaurants like ChipotleRecessionRebranding of major chain pizza companies

PRIMARY RESEARCH METHODS

1. SURVEY OF PIZZA SOLA CUSTOMERS

2. SURVEY OF PEOPLE IN OAKLAND NEAR PIZZA SOLA

3. SURVEY OF CMU STUDENTS

4. DIRECT CONVERSATIONS WITH PIZZA SOLA EMPLOYEES

PIZZA SOLA CUSTOMER SURVEY

26.7

1.6

1.7

2.4

YEARS

TIMES PER MONTH

PORTION SIZE RATING

POINTS

DINING AREA RATING POINTS

31% 20% 15%

EXCELLENT (1) : 26%VERY GOOD (2) : 47%

GOOD (3) : 6%

EXCELLENT (1) : 11%VERY GOOD (2) : 29%

GOOD (3) : 24%FAIR (4) : 7%

48% 16% 7% 1%

31%3%

18-22 23-27 28-32 33+<18

0-1 TIMES 2-3 TIMES 4-5 TIMES 6-7 TIMES

OAKLAND RESIDENTS SURVEY

Yes 43%

No 57%

> >WHERE DO YOU BUY PIZZA FROM?

HAVE YOU HEARD OF PIZZA SOLA?

3%

27%

13%

20%

7%

7%

10%

13%

Pizza SolaVocelli'sMax FlavorDomino'sPizza BellinoPapa Da VinciPizza RomanoOther

CMU STUDENTS SURVEY

YES NO

HAVE YOU HEARD OF PIZZA SOLA?

WHY DO YOU CHOOSE TO NOT PURCHASE PIZZA FROM PIZZA SOLA?

DELIVERYHABITUAL BUYING BEHAVIORDO NOT KNOW ABOUT PIZZA SOLA

TOP 3REASONS

60% 40%

MARKETING PLAN

SEGMENT

25-34 YEARS OLD

18-24 YEARS OLD

35+ YEARS OLD

TARGETING

18-24 YEARS OLD

WHY STUDENTS?

POSITIONING

For young adults in the Pittsburgh area looking to eat and drink with their friends, Pizza Sola is the best gourmet pizzeria that provides locally grown, quality ingredients and an exciting dining experience because of its full-service bar and large portions

“ ”PIZZA SOLA EXPERIENCE

MARKETING MIX

PRODUCT PRICE PLACEPROMOTIO

NS

FULL-SERVICE BAR

ROTATING DRAFT BEERS, WIDE VARIETY OF BOTTLED BEERS

LARGE PORTIONS

FRESH, HIGH QUALITY INGREDIENTS

MARKETING MIX

PRODUCT PRICE PLACEPROMOTIO

NS

PERCEPTION IS THAT PIZZA SOLA IS EXPENSIVE, BUT THEY REALLY HAVE COMPETITIVE PRICES

SLIGHTLY HIGHER PRICES THAN COMPETITORS, BUT IT IS DUE TO THE FACT THAT THEY ARE USING BETTER INGREDIENTS

WANT TO BE RECOGNIZED AS A HIGH QUALITY PIZZERIA

& ALSO JUSTIFIED BY ITS LARGE PORTION SIZES

MARKETING MIX

PRODUCT PRICE PLACEPROMOTIO

NS

LOCATED IN THE MIDDLE OF OAKLAND

MANY COLLEGES AND UNIVERSITIES IN THE AREALOCATION IS AN ADVANTAGE FOR PIZZA SOLA

MARKETING MIX

PRODUCT PRICE PLACEPROMOTIO

NS

Problem: Internal advertisement – only to Pizza Sola customersNeed tactics to advertise events to a wider audience to bring new people

*Buzz Marketing to increase brand awarenessPromotion items Events for studentsPitt Sports events

PROMOTION KEY INGREDIENT 1 “Buzz” = engaging + participative events

•BEER PONG NIGHT•PIZZA-BEER PAIRING NIGHT•COLLEGE FOOTBALL NIGHT•RUSH EVENTS

BEER PONG NIGHT

BEER PONG NIGHT

PIZZA AND BEER PAIRING NIGHT

SPORTS NIGHT

PIZZA SOLA MASCOT

PROMOTION KEY INGREDIENT 2 eye-catching promotional items

Business Card

PROMOTION KEY INGREDIENT 2 eye-catching promotional items

Gift Cards

PROMOTION KEY INGREDIENT 2 eye-catching promotional items

Pizza Sola paper clips

TIMELINE

Q1:2013 Q2:2013 Q3:2013 Q4:2013 Q1:2014 Q2:2014 Q3:2014

CUSTOMER RESEARCH

SPORTS NIGHT

BEER PONG NIGHT

PIZZA-BEER PAIRNING

FREE SAMPLE OFFERS

ONCAMPUS PROMOTION

FACEBOOK EVENTS

BUDGETING

Signs; $800.00

Sports Event; $1,200.00

Flyers; $300.00

Business Cards; $60.00

Promotional Paper Clips; $50.00

On-going Events; $1,200.00

Total budget: $3,610

THANK YOU.

GAYEON GABBY BAEB.S. IN BIOLOGICAL SCIENCE AND B.A. IN BUSINESS ADMINISTRATIONCLASS OF 2013 GBAE@ANDREW.CMU.EDU2012643603