Case Study About Pizza Chains

Pizza Hut uses a price skimming policy to vary their prices and make them flexible. It might be appropriate to say that their pricing is one of the most flexible in the pizza market. In addition, Pizza Hut offers combined sets, where you can get a dessert or other tasty addition as a gift for buying one meal. Pizza Hut seems friendly to its customers and sells its products cheaply.

A significant competitor of Pizza Hut is Domino’s Pizza, an enormous corporation with fashionable equipment and decorating its halls. Buyers tend to pay big bucks when they see their fancy equipment, as it tells buyers about the high quality and severe management approach. In addition, fast delivery was able to win the audience’s trust. Domino’s Pizza can afford to raise prices to $6 for a pizza, which they do. They often use a limited-time tactic, but this will work as long as customers have confidence in the quality of their pizza.

Little Caesars is very fond of interacting with the public through their advertising and exciting the audience with absurdity and impact through famous names or titles; they sell pizza for $5, relying on the competition. They place much importance on the site, especially considering how much people have grown accustomed to ordering food online over the past two years. Little Caesars try not to take risks and use simple pricing tactics.

Papa John’s is responsible for the quality of the pizza they make, so they provide an opportunity to complain to their customers to get another pizza as a gift as soon as possible. Quality products are a guarantee for Papa John’s, which is why they charge an average price for a pizza of around $6, and some pizzas can go up to approximately $12. The ability to complain and receive a quick second pizza as a gift makes Papa John’s a reliable restaurant that people trust.

Based on their quality, such as Dad Jones and Domino’s (and partly Pizza Hat), restaurants can lose customers; stand for them to survive only one scandal. Then the restructuring of the restaurant market will go, which will mean a chance for local ones (Grewal & Levy, 2021). The most successful price strategy at the moment looks like a flexible strategy for Pizza Hut. It is not ideal and has risks before the trust of many customers, but it wins precisely through flexibility.

Reference

Grewal, D., & Levy, M. (2021). Marketing (8th ed.). McGraw Hill.

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StudyCorgi. 2023. "Case Study About Pizza Chains." April 23, 2023. https://studycorgi.com/case-study-about-pizza-chains/.

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