Little Caesar's Case Study
College of Business Administration
Manila Business College
Sta. Cruz, Manila
Case Analysis on:
Little Caesars
Submitted by:
Submitted to:
Christine Borromeo Beo, MBA
In Partial Fulfillment in the Requirements in:
Principles of Marketing
On:
September 3, 2013
I. Time Context
- 1992
II. Viewpoint
- Pricing Manager
III. Statement of the Problem
- What effective pricing strategy will Little Caesar's do in order to increase their sales, market share and profits?
IV. Objectives
- To increase their sales
- To provide higher market share
- To gain more profit
V. Areas of Consideration
Micro Environment
Strengths
- It provides larger quantities of pizza at lower price
- It has well located convenient pick-up counters
Weaknesses
- It do not offers sit-down dining
- It is not a restaurant, a place to eat and chat.
Opportunity
- More people like hot pizzas than frozen pizzas
Threats
- Other competitors offer pizza at lower price as well
- They also offer menu varieties and free delivery
VI. Alternative Courses of Action
a. Competition Based Strategy – Beat the biggest competitor through pricing alone. It said to be the low price leader strategy, selling the product at the lowest price among other competitors.
Advantage
1. It will avoid price competition.
2. It avoids damaged to the company.
Disadvantages
1. It covers-all the production cost.
2. Needing of other tactics to engage to customers.
b. Penetration Strategy
- It is a loyalty building tool in the relationship of customers and producers.
Advantages
1. It could be a barrier for those competitors with same strategy.
2. The sales volume could become higher.
Disadvantages
1. It could be difficult to increase the price.
2. It is likely a result in retaliation to other competitors.
c. High End Pricing Strategy
- It is for businesses who use the premium pricing instead of
Manila Business College
Sta. Cruz, Manila
Case Analysis on:
Little Caesars
Submitted by:
Submitted to:
Christine Borromeo Beo, MBA
In Partial Fulfillment in the Requirements in:
Principles of Marketing
On:
September 3, 2013
I. Time Context
- 1992
II. Viewpoint
- Pricing Manager
III. Statement of the Problem
- What effective pricing strategy will Little Caesar's do in order to increase their sales, market share and profits?
IV. Objectives
- To increase their sales
- To provide higher market share
- To gain more profit
V. Areas of Consideration
Micro Environment
Strengths
- It provides larger quantities of pizza at lower price
- It has well located convenient pick-up counters
Weaknesses
- It do not offers sit-down dining
- It is not a restaurant, a place to eat and chat.
Opportunity
- More people like hot pizzas than frozen pizzas
Threats
- Other competitors offer pizza at lower price as well
- They also offer menu varieties and free delivery
VI. Alternative Courses of Action
a. Competition Based Strategy – Beat the biggest competitor through pricing alone. It said to be the low price leader strategy, selling the product at the lowest price among other competitors.
Advantage
1. It will avoid price competition.
2. It avoids damaged to the company.
Disadvantages
1. It covers-all the production cost.
2. Needing of other tactics to engage to customers.
b. Penetration Strategy
- It is a loyalty building tool in the relationship of customers and producers.
Advantages
1. It could be a barrier for those competitors with same strategy.
2. The sales volume could become higher.
Disadvantages
1. It could be difficult to increase the price.
2. It is likely a result in retaliation to other competitors.
c. High End Pricing Strategy
- It is for businesses who use the premium pricing instead of