Final Semester Assessment PDF

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MARKETING 2100 ASSIGNMENT #3 BOSTON PIZZAS BUSINESS CASES INSTRUCTOR: PETER DUNNE APRIL 14, 2020

BY: HARVEY MEEHAN #10037552 SCOTT BROWN #20144254 LUCAS PAYNE #20155464

CHAPTER 8 (1.) What was the goal of Boston Pizza's "Pizza Game Changers" campaign: to sell pizzas or to build a brand reputation? Support your response. Boston Pizza has been in operations for more than five decades and is leading the pizza market with its innovative ideas and creativity. In 2014, Boston Pizza once again implemented out of box thinking and introduced a new menu that was collectively called Pizza Game Changers. This menu included Pizza Tacos and the campaign was Pizza Game Changers. This innovative marketing campaign was introduced just in time for the playoff season. The overall purpose of this campaign was to build brand reputation. Through this campaign, Boston Pizza invited feedback and input from customers as customers were asked to share with Boston Pizza what kind of innovation, they would like next. Thus, through this campaign, Boston Pizza attempted to build its reputation and image as a customer-centric brand. The innovative food items that were introduced included pizza mints, pizza cake, pizza cheese clipper, and a gas-powered pizza cutter. Moreover, Canadians were asked to vote on which one they liked best. Thus, BP wanted to promote itself as a customer-centric brand. In addition to this, there was a 30- second tv spot in this campaign in which Boston Pizza's Chief Innovator was introduced. Customers were reminded of the major innovation introduced by BP in the past, thus building the brand persona of BP. Online banners were also made and promotions were done on social media to reach the target audience. Thus, all the efforts of Boston Pizza were geared towards improving the brand reputation. It is also important to note that Pizza Game Changers campaign was introduced when Boston Pizza was celebrating its 50th anniversary. Thus, their gesture of taking feedback from customers was a way to show gratitude to them for their support, owing to which they were able to achieve so much fame and success. Thus, through this, they attempted to improve their reputation and strengthen their relationship with their customers. Though it is evident that the overall goal of Pizza Game Changers was to build brand reputation and brand image, by improving customer loyalty and by attracting customers, this campaign leads to a huge increase in Boston Pizza's sales as well. Thus, though the campaign was intended primarily to build brand reputation, it also led to other positive outcomes including a significant increase in sales.

(2.) Despite the suggestion that the decision to add, say, Pizza Tacos to the BP menu was made spontaneously, in the name of "fun" it's probably more realistic to assure that there was some adherence to the new-product development process. At what stage in the process do you think the Pizza Taco was found to have potential where other ideas did not?

New product development comprises of all the steps and stages associated with developing a new product and bringing that new product into the market. New product development consists of seven stages. The first stage is idea generation. This is a stage in which brainstorming is done and ideas are thought and created. The second stage is the idea screening stage. In this stage, it is found out which idea can be implemented given the resources of the company and which cannot be implemented. Those ideas that do not have the potential for development are discarded in this stage and the ones that have the potential for commercial development are carried forward. The third stage is concept development and testing stage. In this stage, it will be assessed whether the selected idea would get customer acceptance. This is important before introducing the idea into the market. The fourth stage is the business and marketing strategy development. In this stage, it is decided what will be the marketing mix of the product, how it will be launched and how it will be promoted. Moreover, it will consider how this new product will fit within the overall product portfolio. The fifth stage of the new product development process is product development. In this stage, a prototype of the idea is developed. The next step of new product development is test marketing. In this stage the product is a test-launched, feedback is taken from the customer and then their feedback is incorporated into the final product. The last stage of new product development is commercialization. In this stage, the product is launched within the target market. It is in the second stage of new product development that is idea screening in which it was found that Pizza Tacos has potential while other products do not have. It was because there was not enough market demand for other products. Secondly, those other products were not fitting in with the other products offered by the BP menu. Since those products were not fitting in the overall product portfolio, other product ideas were discarded while Pizza Tacos' ideas were carried forward. Moreover, the BP menu had sufficient resources which made the development of Pizza Tacos possible.

CHAPTER 9

(1.) What is more important to BP’s brand: its reputation for family-friendly dining or its commitment to sound business philosophy? Support your answer. For every company, it is important to attract customers to increase market sales and, in this way, the company increases the business strategy also. Similarly, the Boston Pizza strategy should be to live up to its reputation for supplying a fine family dine inexperience. The reason is simple. More the families dine in more will be the profits when compared with the individual customer sales. This itself concedes to a sound business mechanism, hence we can not explicitly consider strategies for the latter. Therefore, we can conclude that how both the factors move hand in hand.

Because, since the opening of the first location in Edmonton, Alberta in 1964, Boston Pizza has offered guests two experiences under one roof- a family-friendly casual dining restaurant and a separate sports bar with a lovely atmosphere. No matter which side you select, Boston Pizza serves up an extensive menu with more than 100 items to choose from. The casual atmosphere, combined with big-screen high-definition TVs in the sports bar, makes Boston Pizza as fun for families, as it is for teams and groups of all ages. Most of the restaurants also feature an outdoor patio for those days when guests want to sit back and soak up the sun. In this way, Boston Pizza makes it for family-friendly dining as-well-as for business strategy also to increase the business.

(2.) Research BP’s competitors in Canada’s casual dining category. List the names of other restaurant chains with properties across most of the country, and supply any available data about them, such as the number of restaurants, history, financial results, and any other performance metrics. Compare and analyze your findings with Boston Pizza, using the information found at www.bpincomefund.com.

Boston Pizza Boston Pizza (BP), also known as Boston's The Gourmet Pizza Restaurants and sports bar, is a Canadian multinational restaurant chain that owns and franchises locations in Canada, The United States, and Mexico. Boston Pizza began in Edmonton, Alberta, on August 12, 1964, when a Greek immigrant, Gus Agioritis, opened Boston Pizza and Spaghetti House. By 1970, Boston Pizza has 17 locations in Western Canada, 15 of which were franchised. In 1968, he noticed the growing popularity of Boston Pizza and bought the right to open a restaurant in Penticton, British Columbia. By 1995, the chain has grown to 95 restaurants in Western Canada. Over the years, the restaurant had become a success, more sports bars had been established as an integral part of the business. As of December 2012, there are 348 Boston Pizza restaurants in Canada and over 40 in the US and Mexico.

Industry

Founded

Headquarter Products s

Pizzeria

1964; 56 years ago

Richmond, British Columbia, Canada

Pizza, Pasta, Ribs, Hamburger, Salads, and Entrees

Estimated Annual Revenue 943.1 million

Estimated Employees over 10,000

Now let us discuss Boston Pizza Competitors in Canada

Boston Pizza competitors in Canada's casual dining category are listed below 1). Beaver Tails 2). Beef Jerky Outlets 3). Pizza Pizza 4). Pizza Hut 5). Kelsey's Restaurant 6). White spot 7). Houston Canada 8). Little Caesars 9). Dominos Pizza

Now, let us discuss all the above competitor's details one-by-one

1). Beaver Tails BeaverTails is a Canadian-based chain of pastry stands ran by Beaver Tails Canada Inc. Its namesake products are fried dough pastries, individually hand-stretched to resemble beaver's tails. The chain originated in Killaloe, Ontario in 1978 and opened its first permanent store in Ottawa two years later. By 2019, it had 140 franchise and licensed locations in six countries: Canada (the Maritimes, Newfoundland and Labrador, Ontario, Manitoba, Alberta, British Columbia, and Quebec, where the franchise is called "Queues de Castor"), the United States, The United Arab Emirates, Mexico, France, and Japan. Beaver Tails received attention in the US and Canada when it was served at the Canadian embassy during the first inauguration of US President Barack Obama.

Industry

Founded

Headquarter Products s

Food

Killaloe, Ontario (1978; 42 years ago

Montreal, Quebec, Canada

Pastry

Estimated Annual Revenue 4.1 Million

Estimated Employees More than 500

2). Beef Jerky Outlets The unique feature of this brand is- Little competition, high-quality long self-life products, low outlet operating cost and quick selling.

Industry

Founded

Headquarter Products s

Food

2010

Destin, Florida

Beef Meat

Estimated Annual Revenue 53.9 Million

Estimated Employees More than 200

3). Pizza Ltd. Pizza Ltd. is a franchised Canadian pizza quick-service restaurant with its headquarters in Toronto, Ontario. Its restaurants are mainly in the province of Ontario while others are in Quebec, Novia Scotia, and Western Canada. Franchises in western Canada are mostly run through Alberta-based subsidiary Pizza 73. It has over 500 locations, including over 150 nontraditional locations. The chain was founded by Michael Overs, who opened the first location on December 31, 1967, at the corner of Wellesley and Parliament Streets in Toronto. Pizza began to expand significantly outside Ontario during the 2000s. The other locations are Western Canada, Quebec Market, British Columbia Lower Mainland in 2009, Manitoba and Saskatchewan. The chain returned to Vancouver in 2018. Pizza opened its first store in Halifax, Nova Scotia in June 2010.

Industry

Founded

Headquarter Products s

Food delivery Franchising

December 31, 1967; 52 years old

Toronto, Ontario, Canada

Pizza, Chicken wings, Panzerotti

Estimated Annual Revenue $6.2 Million

Estimated Employees More than 200

4). Pizza Hut Pizza Hut is an American chain and international franchise it was founded in 1958 in Wichita, Kansas by Dan, and Frank Carney. The company is known for its Italian American cuisine menu, including pizza and pasta, as well as side dishes and desserts. Pizza Hut has over 18,431 restaurants worldwide as of December 31, 2018, making it the largest pizza chain in terms of locations. It is a subsidiary of Yum! Brands, Inc., one of the world's largest restaurant company.

Industry

Founded

Headquarter Products s

Restaurants

June 15, 1958; 61 years ago

7100 Corporate Dr. Plano, Texas

Italian American cuisine pizza, pasta

Estimated Annual Revenues 1.2 Billion

Estimated Employees More than 10,000

5). Kelsey's Restaurant Kelsey's is a Canadian restaurant chain and the headquarters is in Vaughan, Ontario owned by Recipe Unlimited. Recipe Unlimited also owns other restaurants including Swiss Chalet, Milestones, Montana's and Harveys. Founded in 1978, there are Kelsey's restaurants across Canada, excluding the province of Quebec. Once a chain of more than 140 locations from Quebec westerly to British Columbia existed. Kelsey's parent company Recipe Unlimited has been going through an era of re-branding and renovations including its location at 1011 The Queensway Etobicoke, Ontario.

Industry

Founded

Headquarter Products s

Food Service

1978

Vaughan, Ontario

All food products

Estimated Annual Revenue $4 Million

Estimated Employees More than 300

6). White Spot White Spot is a Canadian restaurant chain based in Vancouver, British Columbia, best known for its Hamburger, Pirate Pack Childrens meal, triple-o sauce, and milkshakes. Some locations have a carhop service. The restaurant was founded on June 16, 1928, by Nat Bailey. His first idea for a name for the eatery had been Granville Barbecue, but Nat instead took the advice of a friend who suggested he call it White Spot in honor of a restaurant on Wilshire Boulevard in Los Angeles, California- in part because the name sounded spotless and clean. In the 1990s, White Spot experimented with opening outlets across the nearby U.S. border in Bellingham, Washington, without much success. Then after in Honk Kong and most recently in Bangkok and Singapore, Seoul (South Korea).

Industry

Founded

Headquarter Products s

Restaurant

June 16, 1928; 91 years ago

Vancouver, British Columbia, Canada

Food Products

Estimated Annual Revenue $24 Million

Estimated Employees Over 150

7). Houston Canada Houston owns and operates as a chain of steakhouse restaurant that specializes in offering tartare, soups, salads, ribs, poutine and wines. Houston Canada is a private company. Houston Canada parent company has been MTY Group since June 2017.

Industry

Founded

Headquarter Products s

Restaurant

2008

Laval, Quebec

Fast food product

Estimated Annual Revenue $2 Million

Estimated Employees Over 100

8). Little Caesars Little Caesar Enterprises Inc. (doing business at Little Caesars) is the third-largest pizza chain in the United States behind Pizza Hut and Dominos Pizza. It runs and franchises pizza restaurants in the United States and internationally in Asia, The Middle East, Australia, Canada, Latin America, and the Caribbean. The company was founded on May 8, 1959, by Mike Ilitch and his wife Marian Ilitch and based in Detroit, Michigan, headquartered in the Fox Theatre building in Downtown Detroit. Little Caesar Enterprises Inc. operates as a subsidiary of Ilitch Holdings Inc.

Industry

Founded

Headquarter Products s

Restaurants

May 8, 1959; 60 years ago

2211 Woodward Avenue, Detroit, Michigan, US

Pizza, Chicken, Wings and Crazy Bread

Estimated Annual Revenue $3.82 Billion

Estimated Employees Over 10,000

9). Dominos Pizza Dominos Pizza, Inc. branded as Dominos is an American multinational pizza restaurant founded in 1960 by Tom Monaghan and his brother James. The corporation is headquartered at the dominos farms office park in Ann Arbor, Michigan and incorporated in Delaware. In February 2018, the chain became the largest pizza seller worldwide in terms of sales. Dominos has branches in almost all parts of the world like the Netherland, Mexico, India, Japan, the USA, Canada, Dominican Republic.

Industry

Founded

Headquarter Products s

Food Delivery Franchising Restaurant

December 9, 1960; 59 years ago

Dominos Farm Office Park, Ann Arbor, Michigan, US

Pizza, Pasta, Sandwiches, Dessert, Chicken, and Wings

Estimated Annual Revenue $3.618 Billion

Estimated Employees Over 10,000

Chapter 10

(1). If Boston Pizza’s profit margin is less on its Smart Eats and Gluten Wise menu offerings, why doesn’t it just increase the price of these items more significantly to create greater profit margins? While increasing the price of the items on Boston Pizza's smart eats and Gluten Wise menu could increase profit margins it is not that simple and easy. It is easy to think that increased prices equal increased profit, however, customers do not like paying more and will always look for a better deal on what they want. If Boston Pizza were to raise their prices customers would simply go somewhere else to find the food, they are looking for. Another effect of raising prices on specific items is that customers may choose the cheaper items on the menu to save money. No matter what customers will react negatively to increased prices on items and since customers are Boston Pizza's source of revenue it could only be bad for business, not to mention that thanks to the internet information travel faster than ever so one or two unsatisfied customers could spiral into many more very quickly.

Price is decided by the price of a competitor, the market price of the product in the market and what customers will pay for that. If the price is above three factors, then a slight increase in price will affect sales and slowly market share will be down. So it is very necessary to decide at what price to sell because customers and markets are very sensitive to market small mistakes can destroy market value and will create a bad impression in the market and once the impression is gone in the market it will require much effort and time needed to rebuild. Margin can be improved by cutting costs or an increase in volume and hence margin can be improved so an increase in price is not the solution to margin improvement. Today there are highly competitive markets and customers and markets are highly sensitive so small mistakes can destroy your work of years to build a position in the market. So it is very necessary to study the market and consumer behavior in a price increase. First, do a study of market and competition and the perceived price of the customer and then decide whether to increase in price or not. An increase in price in today's highly competitive markets is an especially crucial decision and should be done aftercare and research.

(2). Based on the theory outlined in this chapter, how would you classify Boston Pizza’s overall pricing strategy? The overall pricing strategy is a value-based pricing strategy where the consumers want healthy eating and the company is also trying to portray the product line as smart eats that is healthy, nutritious, and fresh. It makes the Boston Pizza link the product to the value perceived by the consumer and make the price. Further, business cycle fluctuations and a corresponding change in the purchasing power is also affecting the pricing strategy of the company.

(3). How does demand affect the price of Boston Pizza’s products? Demand does not affect the price of Boston Pizza's products because there are substitute products already present in the market by another company at a lower price and there are some threshold challenges for Boston pizza. First, the food had to be up to the delicious held by the brand by 50 years. Second, the meals had to have health benefits. Third, despite the cost of providing healthy ingredients, the price had to congruent with family casual dining. While Boston Pizza offsets the cost of making gluten-free pi...