Business Plan (see page A-21 in your Contemporary Marketing textbook)
- Executive Summary
- Table of Contents
- Introduction
Mission Statement
Company Description
SWOT Analysis
Management Team
Product Description
- Marketing Strategy
Demographics
Trends
Market Penetration
Potential Sales/Revenue
- Facilities Plan
Physical Environment
Equipment
- Human Resources Plan
Employment Needs/Skills
Current Employees
Marketing Plan (see pages A-26 through A-31 in your Contemporary Marketing textbook)
- Situational Analysis
Goal Identification
Core Competencies of the Business
Competitive Environment
Technological Environment
Cooperative Environment
Economic Environment
Political/Legal Environment
Socio-Cultural Environment
- Target Market Target
Market Identification (use demographics)
- Marketing Mix
- Marketing Budget
Group Paper
Historical Content
Owner, Carl Hatley, moved to Durand approximately two and a half years ago. Shortly
afterwards Mr. Hatley opened a new pizzeria business out of the same building that was
previously Uncle Tony’s Pizza. The building is located at 216 W. Main Street has been used as a
pizzeria for over twenty (20) years.
Hatley has been a self-employed giving him experience in running a business as a solo
operator. He has also worked in environments where he does not own the business, giving him
insight on where his current employees might be coming from on certain topics and/or
circumstances.
(Company growth information here – past and present) - Donovan
(Employee base information such as numbers and job duties – past and present) - Donovan
Cooperative Environment
At this time Railway Pizzeria is sole proprietorship. Hatley has no partners in his business
and no other investors at this time. This means he receives all financial benefits; however, he
also takes on all of the risks and costly responsibilities that come with owning a company.
Railway Pizzeria has a positive business relationship with Asofo, the vendor the
company receives goods from. Asofo is a group of people that started as pizzeria owners –
making this vendor is a good source for information about the industry. Growing a positive
relationship with this vendor could make be a great learning experience and make for potential
future bargains. Continuing to grow the company’s already positive relationship will help
Railway Pizzeria grow. According to (spell out author name and company name, QSR.com: “In
the restaurant industry, experts agree there is a real need for operators to connect with their
food suppliers. Establishing a solid working relationship is critical, and the wrong partnership
could damage a business.”
Another important relationship is the one between Railway and the customer – it must
be a top priority. When customer complaints occur, along with an apology, Railway must have
written standards and procedures in place in order to maintain positive relations. According to
Experian.com, “The goal is to ensure customer loyalty and operate more efficiently, growing
overall revenue.” In short, satisfying the customer is the number one priority.
Point of Service Vendor?- Donovan
Beverage Vendor? - Donovan
Baseball Teams? - Donovan
Economic Environment
Retaining loyal customers who represent incomes relevant to ordering is important,
especially when dealing with corporate competitors who offer inexpensive and ready-to-go
pizza. Little Caesars has its signature “Hot-N-Ready” Pizza, which costs $6 plus tax. There are
also rival companies such as Hungry Howie’s and Papa Joe’s competing for customers in the
market. Little Ceasars and Hungry Howie’s both offer online ordering from their websites and
Facebook accounts utilizing web applications. According to Digital Trends.com, “online ordering
continues to be a growing trend in the pizza industry.”
Shiawassee County continues to lag behind the nation in regards to economic recovery.
There are approximately 3,400 residents of all ages living in the town of Durand.
Demographic
The demographic for Railway pizza starts out as one that is based off of geographic location.
With it being a delivery business the area that is profitable for him to deliver to can only be so
large. With that in mind and the information that the owner provided I have created a map
showing his service area. His service area looks like this:
As you can see the central location being Durand where the business is based the delivery
reaches out in several directions. This not only allows him to make a much larger market those
others but can also affect the delivery times that his drivers promise the customers. It was also
said that the main part of his business falls into an age group of 18-45. Each of these areas has a
population that is as follows:
Durand: 58.47% (need actual numbers here) - Adam
Gaines: 61.32%
Bancroft: 58.77%
Vernon: 59.13%
Lennon: 62.04%
Byron: 57.83%
Source: Moonshadow Mobile Inc., 2011
Income:
The median income, by age, is shown in the table below: The age range that has the highest
income in Durand , MI is <25. (create table)
Age
City
State
USA
<25
$35,048
$21,528
$26,465
25-44
$43,859
$53,856
$57,132
45-64
$41,064
$59,703
$63,398
<64
$26,415
$32,979
$33,906
Source: US City Facts.com/mi/Shiawassee/Durand/economy
While this is a large part of the population in each of the cities that he has service in there is a
portion that is being missed. In each of these cities there was roughly another 10% about the
age group that the owner feels is his target market. These are the people that are customers
now will become a loyal customer in the future. By limiting the age group these loyal customers
may feel alienated and move to another provider for the product.
Doing direct mailing to a specific target market would be the most cost effective approach (this
may not be relevant in this section).
According to Hatley, the current food costs for the pizzeria are at 26%. This is ten (10%)
percent lower than the danger zone of 36% (attribute the 36% number to a source). Hatley has
considered shrinking the menu to continue to lower the food costs. By doing this less food
needs to be purchased and the food that is purchased can be more easily monitored and
utilized.
An area of much debate centers the closing of the pizzeria prior to the posted closing
time. (Research? In a Google search…..- Rich. Closing prior to posted time is a calculated risk as
such a pattern can confuse customers or even anger others. Keeping the store open during
posted store hours may be resulting in disgruntled customers who may do what? research.
According to Passion for Business, instead of closing early, a business owner can used that time
doing in-house accounting, cleaning, organizing, and assessing/working on current goals. If
certain late-night hours are typically not financially worth it, perhaps the posted hours should
be changed. Continuing to close early may likely drive customers toward pizzerias with stable
business hours.
Insert 2-3 quotes here from Disgruntled customers slide show & reference link in
Reference page and maybe put additional statistics in Appendix section.
Source: http://www.slideshare.net/helpscout/75-customer-service-facts-quotes-statistics
Disgruntled customer can have a great deal of affect on the business that they are having a
problem with. In studies that were done it was found the 68% of customers move to a
competitor because they were treated poorly buy the employees of a company (Customer
service Professionals, 2011). This can lead to a brand loyalty that is not profitable and ultimatly
harmful to the organization. It goes on to say that if something is done to right the wrong that
95% of those customers will continue to do business with an company (Customer service
Professionals, 2011). It often just takes an admission that something that was not right did
happen and that it is not normal operations of the company for event to happen in this way. If
the retention is not done it can cost the company much more money than if these type of
situation are resolved. To gain new customers it can cost roughly five times more than to just
keep existing customers (Customer service Professionals, 2011).
Pounds of pepperoni consumed every year from pizza
252 million pounds
Annual pizza sale revenue
$32 billion
Slices of pizza that are eaten each second
350 slices
Total number of pizzerias in the U.S.
70,000
Percent of independent pizzerias that make up all pizzerias
65%
Average number of slices of pieces of pizza eaten by a person every year
46 slices
Total number of pizza’s sold in the U.S. each year
3 billion
Total number of pizza’s sold worldwide each year
5 billion
Percent of all pizzerias that offer delivery
83%
Percent of Americans who prefer thin crust pizza
61%
Total number of pizzerias in the state of New York alone
9,000
Percent of Americans who eat at least one piece of pizza per month
93 %
Statement about the average pizza order $_____ - Adam
Social Environment
Railway’s profits increase during the summer with ice cream sales, especially to the little
league teams and their families. Railway already sponsors local little league baseball teams. This
is very good for business, according to Marketingdonut.co.uk: “Sponsorship can generate
substantial publicity for a relatively small investment. It’s like using the strength, funds and
audiences of two organizations to develop your product and build your brand awareness.” Spell
out what he is doing and why it benefits the company. Also identify the cost to his business for
doing so.
Railway Pizzeria maintains a Facebook page where they interact with consumers and
offer suggestions for different pizza ideas. Social media is a huge factor in the pizza business
today. Posting coupons can drive sales. According to adexchanger.com "The social platform,
because of its adoption among household decision makers and house hold shoppers, is a very
good platform for advertising.” Dominos, like Railway, is a carry-out restaurant, and have
doubled their sales from the previous year all due to their social media campaigns. As
mentioned previously, online ordering capabilities could help Railway attract an affluent family
element (ie., soccer moms, etc.)
Any other social media research such as how often a Facebook page should be updated; the
power of Google ads on the right side of Facebook. How to grow your Likes and Friends.
Website enhancement? - Robert
What about other suggestions for posting ideas on social media – the power of suggestion
(research). - Feleena
Insert suggested About paragraph for use on Facebook and/or Twitter pages. - Rich
Identify ways for Railway to increase their Likes on Facebook (submit an idea, contests, ad
purchasing, using quotes to heighten chances of sharing by those who follow) - Rich.
According to Hatley, Railway’s target audience is “people sitting on the couch watching
TV who want good hearty food”; however, a survey of Railway’s customer base the company
could gain more insight into the specifics of the consumer. These survey results in addition to
the demographic breakdown of the market as noted in the Customer Analysis and Target
Market sections buyers could assist in future marketing campaign development. Offering
coupons to those who participate in the survey could allow Railway to do a survey for little cost.
According to Entrepreneur.com, “When crafting your business plan or giving it an overhaul, it's
critical to thoroughly understand your target customers. Understanding your target customers'
demographics helps you determine exactly what your products or services will be, and what
kind of customer service tactics work best.”
Needs and Satisfaction
There seems to be a need for the takeout type of pizzeria in the area and the fact that railway is
giving the people a quality freshly made product will continue to grow the market. Satisfaction
with the product is good. The delivery is the weak link in this chain. With the wide selection of
items that railway is willing to not only prepare but bring to the customers front door there
cannot be a set delivery time. If a customer orders something that is much more difficult to
prepare the timing must be adjusted to that. If not the people will be waiting for a product that
is going to arrive much later than the promise they were given on the phone.
A program that could be taken up to help the flow of people coming into the pizzeria which is a
loyalty cards. It could be something as simple as a punch card that many other companies use.
In one study that was done it was found that loyalty card could increase sales 30% (MediaWatt
Inc., 2009). There is a second benefit that a loyalty card can help you with. By having the people
fill out a short application when getting the card will give you more market information that
anything else. If an electronic loyalty card is used then you can take it one step farther and track
the purchases that are made (MediaWatt Inc., 2009).
Surveys are sometimes the easiest way to get into the mind of your customer. They can
give you insight into items that you may want to start serving as well as item that are not
turning out as well as the organization may have hoped. They are the most helpful in the area
of service because it can specifically address which areas of the service experience that the
customers feel that Railway has failed them at. Often times surveys are mailed out which can
really get you a mixed amount of information because very few or often returned and of those
returned it could be consumers that have never tried your product. It is best to give the surveys
out with the items either in the pizzeria on upon delivery to the customer. Often times to get
back a sample that is large enough to gain any kind of real information there must be an
incentive for the customer. In this case it could be something as simple as a discount on the
next visit with survey or a special price pizza for those that take the survey. Possibly even free
side item, the possibilities are out there to do any number of things.
Class approved survey questions (this may be good Appendix item) but you would want to
reference it in the body and refer them to the Appendix XX.
SURVEY:
Demographics
How often do you eat pizza a week?
What is your zip code?
Did you know Railway Pizzeria offers catering services? Yes or No
Would you recommend Railway to your friends or family? Yes or No
1= Very Poor 2 = Poor 3= Neutral 4= Good 5 = Excellent
How would you rate the quality of Railway’s pizza?
In regards to quality, how would you rate our prices?
How would you rate your last customer experience?
How would you rate your phone ordering experience?
How would you rate the friendliness of our staff?
How would you rate our delivery service?
When you last received delivery, did your order arrive on time? Yes or No
Would you be more apt to order Railway if online delivery was offered? Yes or No
What usually prompts you to order Railway Pizza products?
How can we improve your Railway Pizzeria experience?
Comment: _____________________________________________________
According to the 2010 census Shiawassee county has 29% of its population falling into
the 20 to 45 age group which is the target market (United States Census Bureau, 2010). This is
talking into account the whole of the county but the population is there. Also this can help the
advertisements so that money is not wasted to those that will not come into the pizzeria (does
not belong in this section).
Political Environment:
There are several benefits of belonging to a local chamber. Railway Pizza may want to
reconsider joining the Durand Chamber of Commerce due to the value the business could
realize from the new membership. What are they? - Adam Membership would open a variety of
doors and avenues for the company. This could ultimately boost sales and add a great deal of
brand awareness for the company. The chamber of commerce could potentially be a key factor
in the business success and help with networking with fellow business owners. (attribute)
It is extremely important that Carl get some of these issues taken care of as
relationships with the community and food venders and employees are just as important as
relationships with political leaders. We have seen the effects of bad relations with political
leaders already and this kind of reputation is not good. The situation needs to be taken care of
and quickly forgotten in order to conduct the best business possible given the current
circumstances.
Legal Environment:
Railway pizzeria must stay in accordance with the law and the state regulations. This is
important when it comes to advertising for the company. This hinders door-to-door flyering.
In a small town keeping the legal issues to a minimum is suggested. Joining the
chamber of commerce would keep Railway updated on any new ordinances and happenings in
Durand’s business community.
Laws and Regulations existing in Durand regarding his business and promotion of the business.
– Adam had this in a paper.
Technological Environment:
In today’s day and age of highly advanced technology if a business does not keep up
with this ever-changing environment it can limit the potential of the business to operate
efficiently, track inventory, and communicate with the target audience.
Railway Pizzeria currently has a website and Facebook. However, dedicated focus on
social media, web application and enhancements to the website are suggested. (insert
suggestions here). – Robert - website; Rich- social media.
Point of Purchase system
Caller ID (telephone)
Credit Card acceptance – options for delivery person
Competitive Analysis
There are the ten (10) restaurants in Durand (a town of 3400 people). It is important for
Railway Pizzeria to continuously check on the competitors to monitor what they are doing as
this will help Railway evaluate its own operations and get the leg up on any new ideas hitting
the market. (attribute)
Primary Competitors
1. Little Ceasers
2. Pappa Joe’s
3. Hungry Howie’s
Secondary Competitors
4. Nick’s Hometown Grill
5. Iron Horse Pub
6. China House Restaurant
7. McDonald’s
8. Subway
9. Wendy’s
10. Rancho Grande
11. Crossroads Bar and Grill
Competitor Strengths and Weaknesses
It is important to have a thorough understanding of the competitors. Frequent
monitoring of their business strategies and products is important to any business. The strengths
of most of Railway’s competitors are their prices. Little Caesars, Hungry Howie’s, and Papa
Johns are all franchise restaurants with nationwide marketing campaigns and are well- known
pizza places. Weaknesses of most of pizza companies are that their ingredients aren’t always
fresh and made right when you order like that of Railway Pizza. (attribute)
Little Ceasers represents the primary competition as they pose the greatest threat in the
sense of taking business away from Railway Pizzeria. There are many ways to combat the HotN-Ready® at Little Ceasers. One way is to offer something similar of higher quality. This would
make consumers think twice about buying a Hot-N- Ready® because right down the street is
potentially a pizza that costs only a dollar more but is of higher quality. Another way to combat
the market leader is to exploit their weaknesses while simultaneously exploiting your business’
strengths. By really pushing the fact that Railway uses 100% natural and real ingredients it can
make the hot and ready look like an extremely unhealthy and not very tasty option for
consumers ultimately driving the number of customers in Railways door to the ceiling.
Each and every one of the competitor pose threats to the business. They could all
potentially take customers from Railway Pizza with their low prices and reputation for fast and
quick service. Little Caesars has an item that will easily take all of the consumers who are
looking to grab a quick pizza for dinner. Hungry Howie’s always has new pizza and deals almost
every week keeping them frequently in consumers’ minds. Some of the stores also stay open
for a longer period of time which could also pose threats by getting those late night consumers
that eat later than the traditional person.
In Durand most of the people there are set in their ways and already found what they
like in life and it can be said that they would be loyal to what they know. This means that with
three competitors in this small town all having deep connections to the city that means that
many of the people there are already loyal to the restaurants and it will be harder to win them
over. Then there are people that are loyal to the chain restaurants and they only wish to buy
from them for one reason or another.
There was one opportunity to buy out another restaurant that was failing, but because
Hatley does not have that many employees or anyone to fully dedicate responsibilities to, he
feels that he could not proceed with the buyout as the venue would cost money and ultimately
fail without dedicated management.
Detailed Competitor Analysis
Little Caesars- Little Caesars is the most prevalent competition you will experience in the area.
They possess the ability to offer a pizza that people seem to enjoy at a price of $5.30 that is
lower than any other place in town.
Hours: Monday 11:00 am - 11:00 pm
Tuesday 11:00 am - 11:00 pm
Wednesday 11:00 am - 11:00 pm
Thursday 11:00 am - 11:00 pm
Friday 11:00 am - 12:00 am
Saturday 11:00 am - 12:00 am
Sunday 11:00 am - 10:00 pm
Prices: $6 Hot-N-Ready®- Extremely popular. Probably the most competitive individual product
in Durand for Railway.
$8 meat lovers
$9 supreme-(All products are priced at a pre-sales tax rate)
Duration of business conducted: Longer than Hungry Howie’s and Railway but less than Nick’s
and Iron Horse.
Amount of market held: Potentially 1500 people out of the 3,400 people that live in
Durand.(Census 2010.)
Owner: Danial Sheriski
Hungry Howie’s- Hungry Howie’s poses a minimal threat. Their prices are fairly similar to
Railway’s but it seems to be that the opinion among consumers is that the quality is
significantly less than Railway. Although this is true they still pose a threat as they could makes
changes to take away customers within the pizza business. Also Hungry Howie’s conducts a lot
of charity work which can make them a favorite among some of the more sensitive consumers.
Hours:
4-10pm Mon.-Thurs.
3-11pm Fri.
3-11pm Sat.
3-10pm Sun.
Prices: $5 small two-topping
$10 Large deep dish one topping or large two topping
$15 two medium one topping pizzas with Howie bread and dipping sauce
20$ 2 Large one topping pizzas with a two liter of Pepsi and Howie bread and dipping sauce
Duration of business conducted: Approximately 2 years.
Amount of market held: roughly 1,000(census 2010.) less than Little Caesars simply because of
price to quality ratio.
Owner: Lenny D.
Nick’s- Nick’s Hometwon grill is a big name in Durand. Because they are well known and seem
to be reliable among their loyal consumers and they offer a wider variety of menu items they
have a higher potential of selling to more people within the town of Durand. However,
according to online reviews and my own experience customer service is not one of their fortes.
Hours:
7:00 A.M. to 10:P.M. daily
Prices: Most of the menu is under ten dollars. A real hometown feel and specials happen
weekly on alcohol.
Duration of business conducted: I could not find anywhere on the internet how long Nick’s has
been operating. I called and the lady I spoke to simply told me she did not have time to answer
a question like that when I first asked if she had time to answer a quick question and she
responded “yes” but upon asking her how long they have been there she told me she was too
Amount of market held: Between 1,200 and 2,000(census 2010). This is because they have been
there for longer than the other restaurants in town and in a town like Durand weight is carried
by this fact.
Owner: Nikitas Kalafatis
Iron Horse Pub- This is another older business in town. While they are not as popular as Nicks
they still pose a threat as they offer pizza and a resturaunt style environment to eat the pizza.
They also seem to be pretty well liked among consumers even though they have nearly 500 less
likes than Nicks on their Facebook page.
Hours:
Open 24/7
Prices:
10$ all you can eat buffet
Other than the buffet similar prices and specials to Nicks with most of the menu under ten
dollars per meal.
Duration of business conducted: Same exact scenario as Nicks. Too busy to answer my
question.
Owner: Betty Fuller
Customer Analysis
(Insert content here)
Target Market –
Segmentation
The first issue that must be addressed in the segmentation of the target market is the
needs and wants of those that Railway wishes to serve. These needs are for a pizza that is
affordable to them in a time frame that allows them to continue their lifestyle. The people that
are buying this product are those that want a quality product to feed their families. The need
comes into play because the people are in need of feeding their family and there are several
ways for them to do this and the organization must convince those consumers that Railway will
meet both the wants and needs of this group.
Geodemographic
You must then divide this large group into smaller segment so that they are easier to
use in a marketing sense. The simplest way for the pizzeria to do this is the service area that
they wish to deliver to. It would be a waste to get information for area that will not be serviced.
The area in which the organization will serve must be one that keeps the cost to a point that
they are still profitable. This area is roughly a 10 mile radius in any direction from Durand where
the pizzeria in located.
Psychographic
The next way to segment that will greatly help Railway pizzeria is psychographic
segmentation which focuses on the lifestyle of the market that you want to serve. The pizzeria
has a market that consists of people that are looking for a quality product at a price that they
can afford. He must also look at other life styles that could be a great growth opportunity. At
this time the company has an issue with the hot-n-ready pizza that little Caesars have for the
soccer moms or those just looking to feed the family quickly. The pizzeria can get this part of
the market as well by just having these consumers call ahead. In order to meet this groups
needs the pizza must be done in the time frame that was told to the consumer so that they do
not have to wait. This means they are in and out just like the competition but with a better
product.
Product positioning
The product that the pizzeria produces is positioned very well. It is affordable but has a
higher value because of the quality that separates them from the competitors in the area. With
the wide selection of items that are on the menu it offers selections that position the
organization in several groups that are looking for different products. Also with the use of the
fresh ingredients and delivery it positions Railway above the competitors and puts them right in
the consumers home.
Marketing Mix
With all of this information the marketing will almost do itself. The organization knows
who to tell about the service and product that it offers. Can inform the people of the value and
price that they are going to sell these products for. Also with the psychographic segmentation
Railway can entice not only the market share that they have as of now but this that will help the
market share grow. The location that they have and service area give them a way to get the
product to the people without having them wait a long time which will limit return business.
This area could be increased if Railway were to have a food truck which allows them to go to an
area to make the pizzas that the people want.
While few businesses are located within the city, it is a fact that the working adults ,
mostly ages _____ to ______ leave town to work and travel back in the evening each work day.
(census source) This puts them in a group of people that will want something that they can take
home for dinner if they are not going to cook. Because of this and the age group that a large
parts of the population that Durand falls into it gives then the income to get that pizza a bit
more often than may be the case in other areas. (needs more explanation) –
Goal Identification
Core Competencies of the Business
Marketing Mix
Marketing Budget
Strategies & Tactics
Strategy 1:
Food Truck
Timeline: 3-5 years
Mr. Hatley voiced that a food truck is something his business wishes to investigate. The
food truck service would be offered in the Lansing area due to its increased market size and
profit opportunity. While this is a great idea there are several issues that must be addressed.
• Research rules and regulations
• Identify potential locations
• Raise Capital
• Media Coverage
The first issue to consider is the set of rules and/or regulations they must follow before
they get involved and are fined for something that otherwise would have never been an issue.
The second issue involves identifying potential locations for the food truck to operate. Knowing
where the truck will be traveling will allow the company to control fuel cost and estimate
profits based on customer base size. This endeavor will require some base capital to get a truck,
driver and any licensing that it may need. This can be done through radio, billboards, flyers, and
the word of mouth that will continue the success.
The return on this investment is one that can be seen in the food truck industry. By
2012, the food truck market was estimated to bring in $1 billion in annual revenue (Mayyasi,
2013). This is a huge industry that the pizzeria can be part of and take its piece of that profit
margin seen by many other food trucks.
•
Continue research
•
Bus plan
Figure out all aspects
•
Acquire the truck
•
Driver
•
Est. Locations
Conduct Mkt
•
Stickers/ decals
•
Billboards
•
Radio
•
Flyers
Word of mouth/Social Media
•
Press release
•
Loyalty program
charities
(pay day discount
Frequent Flyer)
•
Business Newsletter
Strategy 2:
Niche Marketing
The pizzeria must capture that section of the market that they once thought was out of their
reach. This is the niche that is looking for a fast way to feed the family without waiting an
amount of time that is adverse to their life style. The term that is often used to describe this
niche is “soccer moms” which are those that are always on the run.
•
Preorder App-This allows the customer to order from any location that they may be
using nothing but there smart phone and continuing about business.
•
Change business Practices-The time frame that the customer service person gives for
the arrival or pick up of an order must be right. These customers may be willing to spend more
for the quality but not if they have to wait with hungry children.
•
Media Coverage- Railway must get the information in front of the customer that would
be part of this niche. One way that would help this may be billboards and radio ads because
these customers are spending large amounts of time traveling both running places and
retrieving children.
The Soccer Mom
Timeline: 0-1 years - Dec 2013
•
Identify the marketing ages of 25-35—5-18 yrs
•
Determine revenue opportunity
•
Identify Need/ Satisfaction
1.
Timeliness crucial
2.
Pre-order app
Change Business Practice
Identify exemptions/ menus
Accurate time quotes
Time keeping –clocks
ROI- Return on investment
Save on service recovery
Media
Sports arena signage/ Flyers
Radio
Social Media offers
Coupons/Loyalty
Strategy 3: Website Enhancement Timeline: ___ years
The web page in this high tech world may be the first interaction that the people have
with the organization so the ease of use and understanding of it is critical for its success. There
are a few steps that can be taken to improve are:
• New Homepage
• Social Network Connectivity
• Business Practices
By giving the home page a new look it will allow for an easier to read layout it will allow
the customers to improve their understanding of the products and menu that the pizzeria has
to offer. Social network connectivity will allow people viewing the webpage to have a simple
way to get to the social media page so they can post or view recent post by the organization.
The return on this project would be one of increase visits to the pizzeria and increase in
sales from those that choose to come into the business. There must be a regular amount of
posting to the social media site. This allows the customer to become involved in the pizzeria as
an entity. Also give the organization a free outlet to inform customers of specials and events
that the pizzeria will be taking part in.
Identify Navigation links
-Link to social media/likes
identify best practices
Frequency
Google ad
ROI
Contact
Develop social media communication plan
Dedicate Personnel to social media (actually he has hired a company to assist with this)
Strategy 4: Community Relations
While the company is a bit of a new entity in the community it must become part of the area in
which it is operated. The increase in community relations will improve the word of mouth for
the business as well as get information about the product into the hands of those that are the
closest to it. Some of the tactical strategies that should be considered include the following:
• Join the Chamber of Commerce
• Team Sponsorships
• Networking
To improve relations the pizzeria could consider joining the Shiawassee Regional Chamber of
Commerce. This allows other businesses in the area know that you wish to be one of them.
Once a member the company is added to the Shiawassee Visitor’s Guide; allow you to bring in
flyers that are put into community events; and receive an insurance discount for being a
member. (need additional benefits here)
There are studies that show if a company shows that it is highly involved in its local
chamber, consumers are 12% more likely to think that its products stack up better against its
competition (Chicagoland Chamber of Commerce, 2011).
Another tactic would be to continue to promote the business through sponsorships
and/or contests. Sponsorships are something that Railway does now which is enhancing his
image in the community. Other ideas include coloring contest for kids to pick up and bring back
a colored picture of a train. The kids would be eligible to win an item such as a train set. Each
kid who brings in an item would get a free ice cream cone coupon. These types of sponsorships
must continue in order to keep Railway’s name active in the community. They are also excellent
topics for social media posts. Other ideas include scratch off discount tickets where the
purchaser gets an opportunity to win a discount prize if they scratch the correct one of three
scratch areas. Consumers enjoy the gambling aspect of such a gimmick. Lastly, Railway should
consider participating in activities involving children in elementary school. One such ideas
would be to collaborate with the schools to offer a free ice cream cone to any child who is listed
on the school honor roll each semester. The return on investment for this incentive is the
additional ice cream or pizza sales to the other members of the family. Another ideas would be
to collaborate with the Durand Depot to co-sponsor field trips to the Depot. By sharing the
costs, each organization could benefit by being able to create a lasting memory in the heart of
each child but also take advantage of an opportunity to educate the parents of these children
about each business. The return on investment from the sponsorship of the teams and
networking are the sales that will be seen by those that are coming in after games and to see
the new business that has opened in their community.
Network (shaking hands and kissing babies) The Company must get out into the community and
take part in events and other happening so that the reputation can bring in customers that may
have not known before.
Word of mouth/Goodwill
Strategy 5:
Employee Training
Railway pizzeria can greatly increase the knowledge of the public to the service and the product
that they produce by having a training program to better prepare the employees for the events
and tasks that they must perform while working at the pizzeria. There are several ways to do
this which include:
• Job Duty Signage
• Daily Time Line
• Telephone Etiquette Training
• Time Quote Training
This will inform everyone what they can and should be doing because some people need to be
told. If a program is put into place to further the success of the employees than the pizzeria will
see an increase in sales and customer retention. The daily time line lets employees know at
what point during the work day tasks need to be completed.
Empowering every employee in the building to take orders in a way that took care of the
customer and allowed others to make products. This is especially important with telephone
service. One of the most important aspects of telephone services is accurately quoting the pick
up time of the items to the customer. Giving the customers the product that they want in the
time frame that they were given over the phone keeping then loyal to the pizzeria
to be completed
The ROI for this will be an increase in sales based off of the satisfaction and loyalty of
customers and the productivity of the employees.
Media
Employee meeting
Handbook-Expectations
MsDs training (ROI)
Marketing Messages
employee knowledge
Productivity
Employee safty
Works Cited
Customer service Professionals. (2011). Customer Service Facts: Customer Service Manager. Retrieved
May 9, 2013, from Customer Service Manager Web Site:
http://www.customerservicemanager.com/customer-service-facts.htm
Statistic Brain. (2012, September 4). Pizza Statistics: Statistic Brain. Retrieved May 9, 2013, from Statistic
Brain Web Site: http://www.statisticbrain.com/pizza-statistics/
MediaWatt Inc. (2009). Loyalty Card Benefits: Patron Pal. Retrieved April 17, 2013, from Patron
Pal Web Site: http://www.patronpal.com/loyalty-card-benefits.html
Moonshadow Moblie Inc. (2011). 2010 Census Populations:Census Viewer Website. Retrieved April 17,
2013, from Census Viewer Website: http://censusviewer.com/city/MI/Byron/2010
Chicagoland Chamber of Commerce. (2011). ROI and Statistics:Chicagoland Chamber of
Commerce. Retrieved May 9, 2013, from Chicagoland Chamber of Commerce Web Site:
http://www.chicagolandchamber.org/wdk_cc/membership/roi_and_statistics___.jsp
Mayyasi, A. (2013, March 14). Food Truck Economics:Priceonomics . Retrieved May 9, 2013,
from Priceonomics Web Site: http://blog.priceonomics.com/post/45352687467/food-truckeconomics