Crust Gourmet Pizza Bars, which sell nutrition pizzas, is a fast-food franchise in Australia. Its fresh concept and clear position have already significantly influenced the pizza industry. Crust provides explicit customer value proposition based on healthy diet and speedy service underlying sustainable competitive advantages that could satisfy consumer requirements.
Through its marketing matrix strategy, it could successfully deliver its concept to consumers in terms of unique products, location selection, community involvement, and tangible as well as intangible assets. Most importantly, the key successful factors of Crust are based not only on its differentiation strategy but also the synergy of its competitive advantages with promotional tactics.
On the other hand, Real burger world was established in UK which builds up the similar concept as Crust. However, due to its weak sustainable competitive advantages, site location error and broad target groups selection, it entered bankruptcy within few years. Importantly, although they develop healthy products that would probably succeed, it failed to deliver its product concept and benefits to consumers who generated massive complains to them while also failing to realise direct competitors that actually launched these products nearby its stores resulting in significantly damaging its brand image or consumer fragmentation.
The marketing strategy and operation management of these two franchises generate some merits and shortcomings. Although Crust has performed well in its sales, there may some issues to consider, such as price setting and new direct competitors. Crust can not only develop various products categories but also deliver to consumers with creative channels in order to grow their sales and perceive benefits. On the other hand, companies could also learn from RBW which develops strong brand logo and promotes their products through creative and interesting ways that catch much attention in the short-term period.
Overall, through the comparison and analysis of two firms which generate some key findings and lessons, this report could provide valuable information for companies when considering their marketing strategy in order to receive greater future revenue.
The purpose of this report is analysing the key issues contributing to success and failure factors of two franchises named Crust Gourmet Pizza Bars and Real Burger World in terms of their marketing strategy. The surface of these two firms create the similar concept of its brand image, however, there are significant different results that one is gains high profit during five years while another fails its business.
Due to a large number of pizza franchises in Australia, pizza companies involve in a competitive environment. Yet, Crust is setting up gourmet burger successfully in Australia based on its superior vision and strategies in comparison with RBW that is lack of comprehensive tactics.
Thus, this report will explore the reasons according to some journals and news and then further compare these two firms based on their external and internal analysis. It could be divided into three main parts; first, it will point out the business strategy of two firms based on marketing models such as marketing matrix analysis, development of assets and competencies, functional strategies and programs, sustainable competitive advantage analysis and strategic 3C. Secondly, it will discuss the key successful/failure factors of two franchises through marketing theory and the final part will conclude some useful and valuable main points that companies could take into account when they build up their new business in the future.
Part I Business Strategy
Crust Gourmet Pizza Bars (Crust)
1.Product market investment
Crust is well-defined business scope in developing a new concept of pizza entering the pizza marketplace. They produce the healthy gourmet pizza...
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