Inflation and Pizza

Topics: Inflation, Value added, Marketing Pages: 3 (706 words) Published: August 6, 2013
Chapter II

2.1 Industry Analysis

Food and beverage manufacturing is an important component of the Philippine economy. In 2009, gross value added in food manufactures and beverage industries reached P903.7 billion at current prices, contributing 58 percent of total manufacturing output and 12 percent of the country's gross domestic product. In real terms, the sector contributed nearly half of total manufacturing output and 11 percent of GDP. The industry has generally grown over the past five years, with real growth of 4.8 percent per year. The key growth drivers include the consumers' increasing demand for convenience, the growing number of working women, fast-paced and changing lifestyles, as well as the changing retail and distribution landscape. In 1975, Shakey’s Pizza promised to serve fun and pizza to Filipinos and it seems that they have a good position in the Industry. The pizza segment of the food industry represents 11.7% all restaurants and accounts for more than 10% of all foodservice sales. There as a time that Shakey’s Pizza experienced a loss of market share and sales during the recession as cheese prices and increase in the cost of wheat and other pizza essentials drove up the cost of pizza. Like McDonald’s and other fast food restaurants in the industry, they gained market share by offering the consumers who enjoy with value meals and some low price entrees. In order to keep the Shakey’s market share, they began to offer promotions to customers through varied marketing channels such as social media sites, the internet and direct mail. Nationwide promotion helped the Shakey’s Pizza regain some of the sales. This trend towards offering targeted discounts has proved a successful strategy as most pizza businesses have reported an increased in sales at the beginning of 2010.

2.2 Direct and Indirect Competitors

Direct Competitors

These companies are considered to have big impact on the sales of Shakey’s Pizza. The...
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