Drive Through Pizza

The fast food industry is highly competitive with national chains supporting their franchisees with television advertising and promotional activities against which local chains cannot compete. However, there may be a market niche, drive-through pizza, which has not yet been fully exploited. Pizza has certainly increased in popularity in recent years, and the concept of drive-through pizza combines the popularity of pizza with the convenience and economy of drive-through operations. A small local operation, which is well capitalized and which has individuals involved who understand fast food marketing, may well be able to create a niche for itself in this market.

Fast food has become a way of life for many Americans, with many of today's meals eaten at fast food establishments, or taken from these establishments back to people's homes. This trend has resulted in opportunities for companies such as McDonald's, who have capitalized on the trend toward fast food and have put their outlets not only in standalone locations, but also inside nontraditional fast food areas, including gas stations and supermarkets. PepsiCo is a strong participant in fast food: it operates Taco Bell (Mexican food); KFC (chicken products); and Pizza Hut, among others. Pizza Hut offers traditional dine-in facilities, and many of these outlets also deliver. However, pizza delivery can take more than 30 minutes, and does not meet the need for immediat

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s, as well. Pizza Hut has already started offering pizza at drive-through windows, for example, and traditional fast food outlets, such as McDonald's, offer a greater variety of foods than they did in the past. In addition, the company will face competition from Domino's and delivery services, which offer greater variety than can be offered at a drive-through and the convenience of having the pizza delivered. The threat of competition is to be expected, however, and as this is the primary threat facing the company, it may well be overcome through an aggressive marketing stance. Market Segmentation The company is targeting working adults as the primary consumers of the pizza. While families are not being targeted, it is certainly possible that consumers will pick up several personal sized pizzas for home consumption. It is assumed that many of the pizzas will be consumed in the vehicle on the way to another destination, and that the rest will be taken home to be eaten (or to some other destination). The key business hours will be between 11am and 2pm (lunch) and 4:30pm to 7:00pm (dinner); most sites will close by 8:00pm. Although late-night can be a good time for pizzas delivered to the home, this is not likely to be a str

Category: Business - D