Current and Future Use of the Web
James J. Wright
MBA 6004-Foundation Skills - Dr. Jeff Leinaweaver
Capella University, 2013
I chose Papa Johns to show how the internet changed the "Pizza Delivery" world as we know it. I'm confident I'll be able to portray an interesting correlation between growth of the internet and the growth of Papa Johns. Beginning with the year 2000 Papa Johns has been an industry leader in online sales. The pizza industry has seen steady growth in United States. Papa John's is the 3rd largest pizza chain in the United States, trailing only Pizza Hut (a division of YUM! Brands, Inc.) and Domino's Pizza. The industry as a whole is one of the most dependable restaurant segments within the US market because it is firmly entrenched in the American lifestyle (Better Managers).
Current Use of the Web
It's Friday evening at home and the kids want pizza; we decide on Papa Johns. I pull out my phone (never putting it to my ear) and ask the kids what they want. Ten minutes past, and my son ask when I was going to call and place the order. "I don't need to son, I've already ordered" I said. After picking up my phone he realized I had a Papa John's Pizza Mobile App, and had placed the order while they were giving it to me. Papa John's Pizza has incorporated many industry leading web based marketing projects. In 2010 the company launched a loyalty program in efforts to change the "lack of loyalty" within the pizza delivery/pick up business. The loyalty program, called Papa Points, is part of the recent multimillion dollar overhaul of Papa John's website, where customers now place about a quarter of orders (Ziobro, 2010). Papa Points is the program; it allows for customers to earn points toward free pizzas depending on how much they spend. The loyalty program and new website are among the tools Papa John's will rely on as it and its two larger rivals jostle for customers (Ziobro, 2010).
Another web-based marketing method used by Papa John's Pizza is the widget. Papa John's "myPapa" is a set of widgets that stream exclusive product discounts, personalized favorite pizzas and incentives to consumers' computer desktops (Cebrzynski, 2008). Along with Pizza Hut, Papa John's is pioneering the use of widgets, which are graphical click-on links that allow consumers to order online without using the chain's website. The widget is also accessible via some social websites & blogs. The chain is "absolutely confident" myPapa will generate incremental orders, said Bob Ford, director of online marketing for the Louisville, KY-based system of nearly 3,000 units (Cebrzynski, 2008).
Implications and Future Use of the Web
I'm a lover of pizza; it doesn't matter to me whether or not it's Papa John's Pizza, Pizza Hut's Pizza, or Domino's Pizza. As long as it's fresh, made right, and on time I'm happy. My kids simply "ask for pizza", never giving a particular place to either pick up or get delivery from. It's only when they've taken a few bites do they ask, "Dad, where's the pizza from?" "One of the primary weaknesses of the pizza industry is that people get bored with the same products, toppings, and quality of ingredients and seek new places and tastes frequently. Therefore, there isn’t a lot of loyalty in pizza consumers" (Better Managers). Papa John’s Pizza International will have to continuously re-invent themselves and embrace change as consumers move through life doing the same.
The pizza industry is one of the most competitive and the fastest growing food industries in United States. The growth has proven to be a double-edged sword for Papa John’s International, providing grounds for success AND fierce competition at the same time. "Pizza establishments make up approximately 17% of all restaurants in the nation. In 2012 there are approximately 65,000 pizza franchises in the US alone" (Better Managers). Aside from franchises, we have thousands of "mom...