Papa John's Competitors

Summary

Microenvironment

The four major competitors, Pizza-Hut, Papa John's, Domino's, and Little

Ceasers are the market leaders in the take-out pizza industry. Having a strong brand

equity in the take-out pizza industry allows a company to gain a significant advantage

in the market. Customers in the take-out pizza industry place a high value on the product

quality and price of a company. Maintaining a good reputation is very important in this

industry for companies because customers will build a relationship with the company and

will keep on coming back or ordering from that company if they feel like they are getting

a good deal. Even though the take-out pizza industry is very competitive, many investors
Those companies that promote their product and are able to distribute or deliver

that product efficiently are the companies that tend do be successful in the take-out pizza

industry. The four major competitors are known for their advertising and promoting in

this industry. These companies try to differentiate themselves in the industry by having

unique logos and catch phrases that express their great product or service (see Appendix

C for logos of the four major competitors). For example, Papa John's tries to distinguish

itself in the pizza industry as having "Better Ingredients, Better Pizza". Domino's wants

to be known in the industry as not just having great pizza, but as having that very fast and

efficient service when they use the phrase "Get the door! Its dominos". Little Ceasers

Pizza, a company that lost a lot of its market popularity when it suffered big losses from

1998 to 2001 (VBIC-Little Ceaser's), has been slowly climbing back by offering

"Quality Products + Great Taste + Favorite Food =Little Caesars Pizza!". Pizza-Hut, the

company with the biggest market share in the industry, is known as "The family
B. Economic Factors that can influence the Take-Out Pizza Industry

Economic factors influence almost every industry, and the take-out pizza industry

is no exception. If prices of a product such as pizza go up by a significant amount, there

will probably be an affect such as less consumption of pizza by customers. One other

thing that could happen is, due to the various prices of pizza in the industry, customers

could also buy cheaper pizza with lower quality to compensate for the rising prices.

However, usually when the price of a product goes up, especially such as food,

consumers tend to substitute that good or product with a cheaper good or product. In a

bad economy, people tend to spend less and save more. Therefore, people will probably

spend less on pizza compared to what they would in a better economy. On the other hand,

if the income of people or families were to increase, there will probably be a rise in the

consumption of a product such as pizza. When people have more money, they tend