Papa John's

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Papa John’s Pizza Analysis

Executive Summary

These recommendations will enable Papa John’s to increase their market share and grow their customer base. These recommendations are based upon in-depth analysis of the company’s dominant economic forces, macro-environment, The detailed findings, resulting from this analysis, are contained in the appendix that follows the recommendations. The appendix is comprised of seven exhibits, and these exhibits are referenced in the recommendations. This recommendation includes introducing global topping preferences across different nations, entering the frozen pizza market and allowing premade Papa John’s pizza to be sold in stores, and opening dine-in restaurants. Papa John's can capitalize on these new growth and improvement opportunities, to increase their revenues, efficiencies, and customer base.

Recommendation

Papa John’s is the world’s third largest pizza chain, trailing Pizza Hut and Dominos. (Exhibit 4, pg. 11) Although Papa John’s has established a notable amount of success in the industry, to have only existed for a shorter period of time than its rivals, there are existing opportunities that would help Papa John’s to gain competitive advantage and build on its core competencies. Currently Papa John’s is known for its commitment of quality ingredient and quality pizza. (Exhibit 6, pg. 13) Because Papa John’s has a base of customers that already trust the company to deliver great value, this gives Papa an advantage in capitalizing on the segment of health conscious consumers. (Exhibit 1, pg. 6) Papa John’s should introduce whole wheat pizza and other organic ingredient and toppings that are low in calories to attract consumers that feel that pizza isn’t a healthy choice. Papa John’s should also make changes to its distribution strategy. In order to compete with Pizza Hut and other restaurants that offer their customers an option to dine in, Papa John’s allow their customers to come to their facility/location be seated and enjoy a meal. This would also attract a larger demographic of consumers. ‘Pizza joints’, over the course of time, have been generally been more popular among college students and the younger generation. (Exhibit 1, pg. 6) If Papa John’s where to restructure their establishments to a more sophisticated environment, it could draw the attention of an older and/or more professional consumer group. Another distribution strategy Papa John’s should explore is the Take ‘n’ Bake strategy. (Exhibit 1, pg. 6) The Take ‘n’ Bake strategy is a fairly new concept, which involves providing premade, uncooked pizzas for consumers to take home to bake at their own convenience. Papa John’s could have premade pizzas of their own sold in stores. This would allow Papa John’s to compete with brands like DiGorno, etc. and to reach consumers who prefer homemade/frozen pizza. There is opportunity for Papa John’s to offer it’s consumers a broader selection of menu items. While rivals such as Pizza Hut and Dominos have grown to offer everything from oven-baked sandwiches and pasta, Papa John’s has been very slow pursuit in spicing up its offerings. Being that the company does have an international presence, and different countries have different preferences for topping combinations, Papa John’s should study its customer data and the trends in popularity for various toppings and introduce topping across nations. (Exhibit 7, pg. 15) If there is an area in the U.S. that has a high population of Russians, Papa John’s should offer popular Russian toppings, such as sardines, tuna, salmon, and red onions, etc., in the that area. (Exhibit 10, pg. 16)

Appendix
Exhibit 1:  Dominant Economic Features6
Exhibit 2:  The Five Forces Model7
Exhibit 3: Driving Forces10
Exhibit 4: Market Position of Rivals11
Exhibit 5: Macroenvironment12
Exhibit 6: SWOT Analysis13
Exhibit 7:  Global Toppings15

Exhibit 1: Dominant Economic Features

Market Size and Growth...
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