TARGET MARKET ANALYSIS

The target market for Papa John’s healthy pizza could be primarily people who like to enjoy a comfortable, family oriented dine-in with better quality pizza along with more variants. The secondary target market for Papa John’s pizza would be requiring a home-delivery or take-away service. The first category mentioned above is fast evolving into a cluster seeking for healthy QSR (quick service) pizza.

DEMOGRAPHIC CHARACTERISTICS OF THE SEGMENT:

The target segment consists of people belonging to 18-55 years age category. Consumption of health pizza is not skewed towards any specific gender, hence both categories should be targeted. Also Papa John’s pizza being a premium category pizza focusses on quality (“Better ingredients. Better pizza”), the target market for the same would be the upper class and upper-middle class in the socio-economic classification, i.e. people who would not mind paying a premium for enhanced quality and added health benefits.

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PSYCHOGRAPHIC CHARACTERISTICS OF THE SEGMENT:

The psychographic characteristicsof the segment would highlight on convenience(time, place, occasion etc.) in getting served with a healthy and tasty pizza keeping quality in check. Such a segment may comprise of on-the-go “Cyber Individualists” and “Aspirationals”, which mostly comprises of working professionals and students. The first category leads a lifestyle of “Thinkers” and they are “HardcoreLoyals” when it comes to brand loyalty. The latter leads a lifestyle of “Strivers” and they often “switch” from one brand to another.

BEHAVIORAL CHARACTERISTICS OF THE SEGMENT:

The health pizza segment can attract people who are more fitness or health conscious, and value convenience and quality by paying a premium.

GO-TO MARKET STRATEGY FOR PAPA JOHN’S HEALTH PIZZA

Marketing Mix:
Product: Papa John’s health pizza and assorted items should consist of the following product mix –

Pizza (veg/non-veg options with one or more toppings)
Starters (breadsticks, potato wedges, cheesestrips, chicken strips, chicken wings, nuggets, veg/non-veg rollies)
Beverages (cold drinks)
Salads (green or chicken salad)
Desserts (cake or mousse)
Dips (variants of sauce)
Special combo meal offers (combining more than one of the above) (Papa John's, 2016)

Pizza variants should be dependent on the size (large/medium/regular), the nature/thickness of crust, type of topping (veg and non-veg) and amount of cheese.The health pizzas should contain organic, local, healthy and gluten-free ingredients. Also one should be able to choose the type or number of toppings s/he would like in the pizza. Papa John can also customize its offerings as per the consumption traits of its regular customers. Offering personalized combinations that a customer prefers, can generate brand loyalty and more number of repeat purchases. Apart from the dine-in options Papa John’s pizza can be delivered to a specific place of order or available for take-away.

Price:

Papa John’s has been a leader in the premium pizza segment. Its offerings are innovative and have qualititative edge over the existing value-seeking players in the pizza industry. It has so far successfully managed to be break free of the viewpoint of a value-oriented pizza restaurant. Papa John has been consistent with the pull strategy to maintain its premium price points by reducing pass-throughs and discounts in bulk purchase.
In the new health pizza segment Papa John should maintain the premium pricing strategy as the perceived value of the existing pizzas by Papa John’s are high in the view of consumers. The consumers should readily pay a premium for this product line expansion if they are really health or fitness conscious and want to move away from regular pizzas.

Place:

Initially, test marketing can be performed in any 2 of the major cities of US, where the existing outlets can generate consciousness within the consumer base. Some channels which can be leveraged:

website
online home delivery services (food)
pop-up outlets near academic institutions

On successful beta testing and customer feedback analysis, the health pizzas can be launched globally.

Promotion:

Total advertisement and promotional expenses should be 6% of the total estimated sales of the device per annum. Also Papa John’s should focus on the pull strategies and word-of-mouth marketing to ensure more repeat purchases in the health pizza segment.
Based on the demographics of Papa John’s target segment, the promotional avenues will include –

1 free regular health pizza offering with any 1 choice of topping for those who would like the Facebook page of Papa John’s or tweet a selfie with the new health pizza with the official Papa John’s tweeter tag “@papajohns” on the day of the launch of the new segment
advertisements in local and national dailies
point of purchase displays and pamphlet distribution in the following outlets –
academic institutions
movie theatres
mobile and other smart accessories outlets
pubs and on-the-go coffee shops
display ads during cooking shows and NFL telecast (Papa John’s as one of the sponsors of NFL)
a dedicated link should be given in the website, pertaining to the new segment launch. 24 x 7 helpline number for “at home”delivery could also ensure repeat purchases.
low-cost and effective social media marketing techniques such as contests, games and quizzes in various online platforms with “retargeting” and online query resolution can facilitate the sell of the new category.

Positioning:

Papa John’s health pizza can be positioned on the 3 pillars of “Nutrion | Innovation | Trust”. The first pillar “Nutrition” would focus on organic, local, healthy and gluten-free ingredients that onecan choose from to customize his/her pizza. The second pillar stands on “Innovation”, which implies a new offering to the target segment. The third pillar of “Trust” would focus on the existing brand image that Papa John’s pizza has established in the market with the positioning “Better ingredients. Better pizza”.

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Distribution Plan:

Papa John’s have an extensive distribution system already in place. Its advanced restaurant layout and designated delivery areas for home-delivery lowers the operating cost as well as keep the quality and freshness of the order intact. Its domestic Quality Control Centers take advantage of bulk purchases of food ingredients and supplies, which ensures quality and effieciency in the supply chain. Thus the need for all outlets to order ingredients separately is eliminated. The QCCs provide an integrated channel for all inbound and outbound products for Papa John’s.(Hochfelder, 2011). The same integrated distribution network can be used post-entrance in the health pizza segment.

REFERENCES

1. Hochfelder, B., 2011. Papa John's Scores a Supply Chain Touchdown. [Online]
Available at: http://www.sdcexec.com/article/10231206/papa-johns-scores-a-supply-chain-touchdown
[Accessed 14 April 2016].
2. Papa John's, 2016. Papa John's Menu. [Online]
Available at: https://www.papajohnspizza.in/pages/OcMenu
[Accessed 14 April 2016].

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