All Ovens Blazing in Pizza Wars: Marketing Analysis
The article “All ovens blazing in pizza wars” emphasizes how vital pricing as well as segmentation and targeting affect the small pizzerias in the war with the major chain in Australia.
It is beyond doubt that pricing is one of the important factors that customers consider in make buying decision (Sharp, p. ). In this case, small pizzerias in Australia have competed with the big pizza chains such as Domino pizza or Pizza Huts in term of low price. Particularly, the pizza chains are trying to offer a competitive price to obtain the large quantity of consumers which is known as competition based pricing or market based pricing (Sharp, p.). While the major chains keep slashing their price to gain high sale volumes, the small pizzerias believe that their value based pricing strategy can maintain the business’s operating in term of high product quality. Customer will understand the value of their pizzas which is worthy with the prices they set because of the difference between their pizzas taste made from high quality foods along with the passion on pizza and the one offered by the major chain. According to Sharp (2013, p. ), value based pricing is a method of pricing in which an organization estimates the value of its product or service to the customer and uses that as its basis for setting price. A part from that, temporary price cuts do increase volume, often dramatically, for the duration of the promotion, yet it does not have new customer or retain consumers (Sharp, p. ). The article shows that customers go for small pizzerias more in the weekend due to no deal from major chains. Hence, the small pizzerias cannot face with the big chain at the price because of the different cost base, however, they still can stay in the market by their own pricing strategy.
Moreover, small pizzerias know its target segmentation in the market which is different with the big chain. As analyzed in Sharp (2013, p.), targeting is a marketing tool to evaluate all the segments
It is beyond doubt that pricing is one of the important factors that customers consider in make buying decision (Sharp, p. ). In this case, small pizzerias in Australia have competed with the big pizza chains such as Domino pizza or Pizza Huts in term of low price. Particularly, the pizza chains are trying to offer a competitive price to obtain the large quantity of consumers which is known as competition based pricing or market based pricing (Sharp, p.). While the major chains keep slashing their price to gain high sale volumes, the small pizzerias believe that their value based pricing strategy can maintain the business’s operating in term of high product quality. Customer will understand the value of their pizzas which is worthy with the prices they set because of the difference between their pizzas taste made from high quality foods along with the passion on pizza and the one offered by the major chain. According to Sharp (2013, p. ), value based pricing is a method of pricing in which an organization estimates the value of its product or service to the customer and uses that as its basis for setting price. A part from that, temporary price cuts do increase volume, often dramatically, for the duration of the promotion, yet it does not have new customer or retain consumers (Sharp, p. ). The article shows that customers go for small pizzerias more in the weekend due to no deal from major chains. Hence, the small pizzerias cannot face with the big chain at the price because of the different cost base, however, they still can stay in the market by their own pricing strategy.
Moreover, small pizzerias know its target segmentation in the market which is different with the big chain. As analyzed in Sharp (2013, p.), targeting is a marketing tool to evaluate all the segments