In order to increase market share and sales, Sweet Basil will target dine-in, take-out, and take-n-bake pizza lovers in the cities of Treated, Rainfall, USA, and Monrovia. The strategies for increasing sales are to first penetrate new markets, then increase usage and size of customer orders. This will be conducted through unbeatable value and the finest ingredients that cannot be received anywhere else in the area. The marketing mix for Sweet Basil will consist of mobile marketing, flyer distribution, a website, social media outlets, television advertising and email newsletters.
The objectives for many of these avenues are to provide coupons and discounts as well as gain consumer loyalty. The business does a great Job already with returning patrons so it is time to focus energy on effectively penetrating new markets. Sweet Basil will look to increase sales by 40% or $110,400 and achieve a market share of 30% in Treated and 20% in the surrounding cities. This will ensure success and will provide a break even before the first 6 months. 2. 0 Situation Analysis Currently, the economic market condition in the United States and California is primarily recession.
Overall, the pizza business is doing k, with flat sales of about $38 billion for the past 3 years (Kara 2011). Consumers are becoming much more particular when it comes to value and where they spend their hard earned money. Sweet Basil pizzeria is doing quite well during the recession but it is having trouble inquiring new consumers. Prices of flour, produce, and cheese are on the rise so it is important to increase business and revenue to cover these associated costs. These forces are uncontrollable in the macro environment along with the rising unemployment from the recession.
It is important to instill value and personalized Mm Sweet Basil Marketing Plan By Keystrokes service in every customer that Sweet Basil touches on a daily basis in order to maintain/increase repeat customers. There are many successful dine-in and take- out pizza companies that fail to provide the opportunity for consumers to purchase take-n-bake pizzas. Consumers are going to ultimately purchase from the establishment that provides the best value and quality mixture. Sweet Basil offers dine-in, take-out, and take-n-bake pizzas, leaving the delivery market to competitors.
With this in mind, Sweet Basil is very capable of increasing sales with the development of take-n-bake pizzas and a solid marketing strategy. 2. 1 Market Summary Sweet Basil Pizzeria is an extremely reputable pizzeria in the city of Treated, California. Besides being well known, Sweet Basil also maintains a strong competitive advantage with its owner, James Decrease, being a hotel restaurant management graduate from Purdue University and restaurant industry veteran for well over 25 years. James has been able to carefully select his target market due to his extensive industry experience.
As mentioned before, the current pizza market is motionless at around $38 billion per year, which isn’t so bad considering worldwide market conditions. Many loyal customers have been moving due to rising foreclosure rates and this hurts return business. An astonishing 93% of Americans eat pizza at least once a month and approximately 3 billion pizzas are sold every year (Hinkle 2009). This leaves plenty of room for competition and growth for Sweet Basil take-n-bake pizzas in the current market. Even though Sweet Basil’s target market demographics is tailored to consumers in the San Gabriel Valley and surrounding areas in southern
California, we reserve the right to increase the area if growth is substantial. The average salary of southern California Jobs is $55,000 a year (Simply Hired 2011), which leaves plenty disposable income for the on-the-go working class individual. Many consumers in southern California lead extremely busy lifestyles, which makes it hard to cook for a family. There are currently seven pizza restaurants/parlors in Treated, California. None of these pizza establishments offer take-n-bake pizzas for sale, so the only real competition is frozen pizzas at the super market.
Our consumers enjoy gig quality pizza with fresh ingredients at an affordable price. This provides incredible value to the customer and a much better alternative to people having to bake store bought frozen pizzas. Sweet Basil provides its customers with an extensive value for their hard earned money. Consumers choose Sweet Basil pizza because we serve their needs through our unique ingredients and fresh homemade sauce and dough. People want more than Just a bland, regular tasting pizza and we tailor our unique blend of basil, garlic, and oregano to pizza lovers throughout the Los Angles area.
Sweet Basil serves over 0 different types of specialty pizzas creating enjoyment for all types of palettes. Our pizza can be picked up with no wait and is never sold unless it has been made within 7 days to increase the quality that you’ll find in the frozen section of the super markets. Since no other pizza establishments in Treated offer take-n-bake style pizzas, we will be able to control the market for consumers that are looking for a fresh alternative. Nearly every single frozen pizza brand from Disgorging to Stouffer increased it’s sales in the 52 weeks between summer 2009-2010 (BIB International 2010).
Disgorging made the most out of the entire top 10 frozen pizzas in 2010 reaching 00 in sales (BIB International 2 ) A though this is looking at Digestion’s sales throughout the world, it’s important to notice that they increased sales from 2009 to 2010 and that the market doesn’t show any signs of decreasing. Pizza is an American tradition that most people love to eat and Sweet Basil’s quality and delicious ingredients create the competitive advantage. 2. 2 SOOT Analysis * Strengths: Sweet Basil’s strengths consist of a number of things currently going into the take-n-bake market.
For one, Sweet Basil is the only pizzeria that currently offers take-n-bake pizzas; the competition is very minimal other than store bought frozen pizzas. Second, Sweet Basil has a stellar reputation amongst the surrounding community, catering to schools and businesses reaching new customers daily. Sweet Basil only uses the freshest ingredients and everything is homemade including the bread and delicious sauce. The pizzeria is located in a prime location, right next too Seven-Eleven, getting optimal exposure from the public. Weaknesses: Currently there are a couple of solid weaknesses that can cause some undesired hurdles for Sweet Basil’s take-n-bake pizzas. First off, Sweet Basil has not done any marketing yet for the new take-n-bake concept and all of the marketing in the past has been through word of mouth solely. Another weakness is that consumers are already familiar with the competition and that could make it very difficult to market to consumers that haven’t tried Sweet Basil pizza before. Finally, Sweet Basil pizzeria doesn’t have any distribution outlets other than the restaurant located in the city of Treated and delivery is not offered.
These issues certainly need to be addressed and solved so that they don’t affect Sweet Basil pizzeria negatively. Opportunities: While pizza continues to be popular in America, it is evolving. Fierce discounting and coupling by top players has squeezed other pizza Sellers (Kara 2011). This leaves a great opportunity for Sweet Basil to offer coupons and discounts through a variety of medias and advertising. Another opportunity is that the market appears to be very steady for take-n-bake/frozen pizza purchases.
This can certainly provide Sweet Basil with a chance to reap some of the market share with its high quality, affordable pizzas. Second, Sweet Basil’s take-n-bake pizzas don’t use up any additional sources or time than their freshly made take-out or dine-in pizzas, making start up costs insignificant. One possibility in the future could be to contract with grocery store chains to offer frozen pizzas more conveniently to consumers. Sweet Basil can increase revenue by attracting customers that don’t live close to the pizzeria or prefer to make pizzas at their own home. Threats: Potential threats for Sweet Basil include possible competition from neighboring pizzerias in the area should they decide to start a take-n-bake operation. Another possible threat could be an increase n direct and indirect costs such as electricity for freezing the take-n-bake pizzas. An increase in gas prices could also be a possible threat for sales of pizza because consumers may not be willing to drive to the pizzeria. An increase in labor costs due to the slightly complex routine behind making take-n-bake pizzas ready for customers. 2. Competition As briefly stated earlier, there are currently 5 other pizza restaurants in Treated and we compete for pizza loving customers on a regular basis. These competitors nave not taken any to Sweet Basil’s customer-base thus tar and here is actually a great sum of customers that can be earned with the proper marketing campaign. The seven places to get pizza in Treated are Pizza Hut, Domino’s, Hungry Hosier’s Pizza, Treated Pizza Co. , Little Caesar, Flying Pizza, and Cost (which is Sweet Basil’s only real take-n-bake competition other than grocery store brands).
People can purchase freshly made pizza to order at all of these establishments, but these competitors have not developed a take-n-bake concept yet. This leaves the market wide open for Sweet Basil to compete with better-known chains such as Cost and grocery store rand’s. The seven pizza establishments in Treated do not pose as much threat to Sweet Basil’s Take-n-Bake pizzas as the store bought brands and Cost pizza. When considering true competition it is important to observe the characteristics of the take- n-bake pizza that Sweet Basil will offer.
The pizzas are going to be 16″ in length, which is fairly large for take-n-bake pizza. This means that single-serve frozen pizza doesn’t really pose a significant threat because we are marketing to larger parties and families who are constantly on the go. Sweet Basil’s large 14″ pizzas will come tit a variety of toppings. With this in mind the only store bought competitors that are offered at nearly all super markets are Disgorging, Tombstone, Red Baron, California Pizza Kitchen, Freshest, and Tony’s (BIB International 2011) in order of popularity/sales.
The other main competitor that Sweet Basil has to beware of that is gaining popularity is Cost’s take-n-bake frozen pizzas because they offer more personalized service and quality than the other brands. Cost pizzas are also larger in size (16″) and cost a little more than the other brands (Cost 2011). 2. 4 Product Offering The new product offering of Sweet Basil Pizzeria is very concise and direct. The take-n-bake pizzas will only be offered in the 14″ size and will consist of only five different varieties such as pepperoni pizza, cheese pizza, vegetarian pizza, Sweet Basil Favorite (all combo toppings), and BBC pizza.
All of these pizzas are made with the finest local produce from Mike’s Foods and ingredients provided from JACM food service distribution. Sweet Basil Pizza will be extremely fresh, having been made within a week from the date of purchase. Customers can feel assured they are getting a high-quality Aziza with greater freshness than any other brand currently in the target market. Valued consumers will also be able to call in orders if they require special toppings or especially large orders.
Consumers will also be able to purchase packets of our most popular ingredient “Sweet Basil”, which is a combination of secret spices containing garlic and basil. This mixture is absolutely delicious and makes any pizza taste even better than it normally would. 2. 5 Keys to Success The major factors that will make Sweet Basil a huge success among the competition in the Los Angles area is our stellar personalized service, finest ingredients, competitive price, and homemade sauce/dough recipe. Personalized service and quality/recipes are the main advantages that Sweet Basil Pizzeria is aiming to use as their competitive advantage.
Sweet Basil already has a considerable customer dimension from its fourteen years of success and this must be utilized in order to compete in this pre existing market See Basil is constantly keeping up to date with ingredient costs, researching local stores and purveyors to compare value/price mixtures. According to the National Restaurant Association, the top trend right now is locally grown produce (Stevenson 2010). Sweet Basil only purchases the finest, locally grown produce from Mike’s Foods in Treated. The new take-n-bake product that sweet basil offers is no more expensive than providing it’s everyday to-go pizzas to valued customers.
This makes the overall product cost extremely low and creates a major factor in the success of this new idea for Sweet Basil Pizza. The pizza and restaurant business is a difficult industry to tackle; product/industry knowledge is a necessity to succeed. Sweet Basil is always staying familiar and up to date with current practices in order to remain competitive. This actor is something that Sweet Basil will surely continue to practice and exploit. Continued customer satisfaction is a concept that Sweet Basil will continue to present to its valued patrons. 2. 6.
Critical Issues As a pre-established company, Sweet Basil maintains an exceptional product, gaining return customers and recognition daily. The major critical issues for Sweet Basil is to: * Gain market exposure- Sweet Basil doesn’t currently spend any money on marketing to Treated or its surrounding cities. Word of mouth from satisfied customers is a great type of free marketing but it doesn’t increase quickly enough. Sweet Basil will now be able to offer a product to customers that live further away; therefore, it should target more customers using different avenues of marketing.
Train additional staff- training is a 2-3 month period depending on the speed of the employee and this could slow the business down if not forecasted properly. Since Sweet Basil doesn’t deliver, it is currently run with no more than 2 employees at a time. If customers and sales increase significantly, sustainability will rely on the work force. New hiring measure may be needed. * Monitoring quality assurance ND customer service- the pizzeria must maintain a reputable amount of quality and service in order to ensure that the growth strategy doesn’t Jeopardize the current benchmark.
Quality will be monitored by gaining feedback from customers and allowing them to offer suggestions through questionnaires. * Expansion- expanding through the creation of additional parlors in Dearth’s surrounding cities may be a necessity if it proves both profitable and sustainable. This is more off long-term critical issue but must be recognized nonetheless. 3. 0 Marketing Strategy The primary target for Sweet Basil’s marketing strategy will be towards households ND businesses in the cities of Treated, Monrovia, USA, and Rainfall.
Americans love pizza and it is clear that everyone in these cities should be marketed because of pizza’s popularity and sustained growth throughout past years. For now, Sweet Basil only offers take-out, dine-in, and take-n-bake services to its patrons, which leaves delivery open to competition. Sweet Basil realizes that they can serve 65-70% of pizza transactions that occur since delivery amounts to about 3 Pizza Power Report). Undoubtedly there is a substantial amount of market share that can be earned with the proper market-challenger attack strategies.
Sweet Basil anticipates being able to sell more pizza to current customers, sell to market segments that have not previously been targeted, and gain a higher market penetration. Word of mouth advertising has been Sweet Basil’s sole source of advertising for the past fourteen years and now the time has come to try a new initiative to increase growth and profits. Although word of mouth advertising is extremely effective and well trusted from consumers, Sweet Basil finds that most loyal clients did not hear about the pizzeria until the first couple years of residing in Treated.
With this in mind, the pizzeria will kick off some new marketing strategies to increase its overall exposure to the businesses and households in its target market. Sweet Basil will look to gain new customers through new-market segment strategies. More consumers need to be aware of Sweet Basil’s unparalleled service and great tasting pizza; word of mouth advertising will not penetrate as many consumers as supplementary advertising. Sweet Basil also looks to engage in encirclement attacks throughout the before-mentioned cities in order to gain exposure into some of the competition’s territory.
Finally, Joint partnership advertising will be conducted to decrease overall advertising costs. Paper flyers will be attached to every take-out box, promoting take-n-bake pizza to current patrons, which well result in increased usage. Flyers that include coupons will be served to residential and commercial properties in order to increase new customers. This will help Sweet Basil primarily increase sales over time but will also help in gaining exposure to the target market. A recent study shows that 46% of pizza consumers report that coupons or promotions influence where they decide to purchase their pizza (Barrett, 2010 Pizza
Power Report). If these statistics prove to be true, Sweet Basil will surely be able to earn new business amongst the community. Sweet Basil will also exploit other forms of integrated marketing communications through website development, mass SMS marketing to loyal patrons, and usage of social media platforms. The website will allow consumers to view the menu and leave comments, questions, and concerns, which will be viewable for everyone to see. Catering is a huge source of Sweet Basil’s success and consumers will be able to navigate through catering options and information.
People will also be able to add themselves onto the weekly email that will be sent out to include coupons and special promotions. This will help Sweet Basil in obtaining more market exposure to current and new clientele. “With so many people now using the Internet to search for products and services it is now acknowledged that having a business website is Just about as essential as having a telephone” (Touches, 2001). Sweet Basil will also utilize mass text message marketing in order to promote specials and promos that are offered each week.
This will be initiated using Decontrolling. Com to ensure that these messages can be .NET every other week to market different promos and special items to consumers. Each customer will be asked if they would like to receive promotion emails and text messages from Sweet Basil. The success rate for permission based mobile marketing campaigns is around 25% Oarfish, 2006). This will ensure seamless impersonal communication to Sweet Basil’s loyal patrons. Lastly, Sweet Basil’s marketing communications will consist to a wide array o t deterrent social medias. Include the development of a Backbone, Namespace, and Twitter account so loyal patrons can feel more united with Sweet Basil’s service and undeniable quality food. The Namespace and Backbone pages will allow customers to view the menu and catering options that Sweet Basil offers. This type of marketing is virtually free although it is time consuming to continuously update. Sweet Basil will also utilize cable television marketing in order to market to new customers. Advertising will only be targeted to Time Warner Cable’s Foothills and West Covina coverage areas in the San Gabriel Valley (Coverage Area 2011).
Mostly sports programs on ESP. and popular shows on Bravo will be targeted to enhance Sweet Basil’s exposure to their target market. This will be exercised during the first 90 days of marketing plan. All of these integrated marketing communications will allow Sweet Basil to reach a large market of new consumers as well as continue to gain increased business with existing patrons. These marketing strategies were also selected due to their low cost and minimal time consumption required. 3. 1 Mission Statement “We exist to provide the best quality dine-in, take-out, and take-n-bake pizza to the Route 66 communities of the San Gabriel Valley.
This will be accomplished through unmatched customer service, value, and great tasting pizza; creating a memorable experience for all to enjoy’. 3. 2 Marketing Objectives Sweet Basil will achieve a few concrete objectives through its current and future marketing actions. The first and most crucial goal for the pizzeria is to conduct new- market segment strategies in order to earn new customers throughout Treated, Monrovia, USA, and Rainfall. This strategy will be initiated immediately at the start of Quarter 2 this year now that Sweet Basil’s take-n-bake pizzas are now in production.
The target market objective is to increase overall market share, earn new customers, and amplify purchases to increase sales by 40% from now through April 2012. Collectively, Sweet Basil seeks to increase overall market share to 25% of all dine-in, take-out, and take-n-bake purchases in Treated and 13% of market share from Monrovia, Rainfall, and USA. This also includes 15% market share transactions from employees of local businesses in Treated and Rainfall as well as 25% market share to households in Treated, Rainfall, Monrovia, and USA.
In order to accomplish these goals, Sweet Basil will have to gain at least 30 new customers every week on average and the goal is to be able to retain 90% of them. This strategy ill allow the pizzeria to maintain strong, positive growth each quarter through it’s increasing customers. Another objective is increasing consumer usage to where customers are purchasing Sweet Basil products at least one more time per week. This will include increasing the purchase volume of each consumer as well.
New consumers will be able to be measured by asking them how they heard about Sweet Basil to begin with and afterwards asking them if they would like to receive coupons and promotions by email and text in the future. Sweet Basil’s target is to achieve the before mentioned market share by the end of 2012. Sweet Basil will also set promotional objectives in order to reach new customers through brand and company awareness as well as implementing strategic sales promotions. Millennial will utilize all available tools to research products and 43% to them prefer to receive their information through word of mouth (Mr..
Youth, 2011). A major objective will be to grow the pizzeria’s followers on Backbone and Namespace to 750 people by the end of 2011 to engage in more promotional initiatives. Seasonal and promotional entrees will be posted on these social media sites every other week to maintain consumer sage. The address, phone number, menu, and catering options will all be included in these sites as well. Sweet Basil will be hiring an individual to hand out door flyers to residential households and businesses in the cities of Treated, USA, Rainfall, and Monrovia (starting in the city of Treated).
This marketing effort will be conducted every Wednesday and Thursday from am to pm for the residential areas and every Monday for local businesses. Similar flyers will be on every take-out pizza box as well to notify customers of the option to purchase take-n-bake pizzas. No additional employees would have to be hired for the business as long as business doesn’t increase more than 50%. The flyers will include specials and combos that can be purchased in exchange for the coupon on the flyer. Each flyer will have a coupon to receive 1 free slice with a purchase of any take-n-bake pizza.
The flyers will also contain a coupon to purchase a take-n-bake pizza for 25% off. Additional specials will be included on the flyer and sponsors will be able to advertise on the other half of the flyer. The sponsors will incur all costs for the production of the flyers and will also include Sweet Basil’s website, Backbone, Namespace, and Twitter information for consumers.. These flyers will be very similar to the email and text messaging blasts that Sweet Basil will be conducting every other month.
Sweet Basil will look to enhance partnership efforts with local businesses, schools, cities, and clubs in order to increase exposure and maintain growth. Catering services and pizza specials will be offered for discount prices depending on the size and occasion of the order. Sweet Basil looks to increase its catering by 5% to businesses and residential areas. This will also help Sweet Basil gain more exposure and market share from satisfied customers. 3. 3 Financial Objectives Sweet Basil will be targeting a number of sound financial objectives in order to increase profits and sustainability.
As stated in the marketing objectives, increasing sales by 40% during the first 365 days is the target for Sweet Basil. Overall, Sweet Basil aspires to collectively reach 30% market share for Dearth’s dine-in, take out, and take n bake pizza sales by the end of 2012. The goal for Rainfall, USA, and Monrovia will be 20% overall market share. Currently, Sweet Basil obtains 30% of it’s seines from take out orders, 50% from dine in business, and 20% from catering. With the current market conditions, Sweet Basil’s overall gross income amounts to $23,000 on average per month.
The gross income should amount to at least $32,200 per month on average by April 2012 in order to realize a successful marketing plan. This would amount to an extra $110,400 in gross income a year, which would only be substantial if costs remained low. Sweet Basil doesn’t require hiring an extra employee for the additional expected business so long as it doesn’t exceed a 50% sales increase. Social media sites such as Backbone, Namespace, and Twitter are free which makes it a valuable marketing source financially. Sweet Basil will be using decontrolling. Mom to send out SMS blasts including specials and deals for registered patrons. The plan that Sweet Basil will be purchasing costs $79. 99/Mont and allows for 5,000 customers to be included. The annual cost for this service then amounts to $960/year while emails are virtually free to send to loyal subscribed customers. Sweet Basil’s website will be created for $1000 through a current part- time employee that is also going to school for web design. This will be built during slow business hours at the restaurant to decrease hourly costs for the web development. The web domain will cost around $100 dollars a year to maintain.
One of the expensive strategies for Sweet Basil Pizza is the cost of hiring on an employee to work Monday, Wednesday, and Thursday for 24 hours a week handing out flyers. The employee will be paid $8/her, so the annual cost will come out to about $12,000 if gas costs are associated. The flyers will be free to Sweet Basil because the sponsors will incur that cost. The most expensive marketing source will be advertising on Time Warner Cable during the first 90 days of marketing plan initiation. As mentioned earlier, only ESP. and Bravo will be targeted and we will run 4 commercials per day on both networks.
With a cost of $40 per spot, Sweet Basil will incur a total cost of $28,800 Just in television advertising costs. An increase in sales will not result in a significant increase in utilities since the restaurant hours will remain the same and because the pizza oven is always left on. The cost of running the oven 2417 isn’t much different from the cost of turning it off at night and the oven takes an hour to warm up to 600 degrees when opening in the morning. After all the costs are subtracted, Sweet Basil can make a return of $67,540 but the increase of ingredients, labor, and materials have not been subtracted from this amount.
All of the before mentioned other than pizza ingredients and material will remain the same regardless off 40% increase in sales. 3. 4 Target Markets As stated earlier, Sweet Basil’s target market will consist of all pizza lovers in the Route 66 cities of the San Gabriel Valley. In recent studies, 93% of Americans eat pizza at least 1 time a month, (Pizza Plan, 2011) which means there is a sizeable target market for Sweet Basil to penetrate. There are 21,782 residents in Treated, 46,672 in USA, 37,523 in Monrovia, and 1,433 in Rainfall, which brings a total consumer market of close to 110,000 people (city-data, 2009).
Rainfall consists of businesses for the most part, which gives Sweet Basil an opportunity to increase dine-in sales to workers during the day and catering services for luncheons and special events. Consumers report that 45% of restaurant pizza orders are for take- out and 20% of orders are for dine in (Barrett, 2010). The general strategy for Sweet Basil will be “differentiation” as described in Porter’s generic strategies (Marketing Management, 2009). Sweet Basil offers an incomparable product compared to the rest because they use the best and highest quality ingredients while having the finest recipes.
The key source of this distinction is the “sweet basil powder” that patrons can top on their pizza after it is made. Take-n-bake pizza is not offered in any other restaurants in the area other than Sweet Basil, which gives them an advantage for consumers that want a more unique taste. Consumers have a need for great tasting quality pizza that can be purchased right when they want it with little wait time and low cost. Sweet Basil certainly meets this need with the before mentioned points of difference and being able to dine-in and take-out as well.
Consumers love being able to come into Sweet Basil to order a couple slices to pizza and be out quicker than if they purchased fast food. Many consumers like driving by on their way home from work to get a late night special $6 one topping pizza that is hot and ready between 6-pm to feed their family after a busy workday. Others choose to stock up on take-n-bake frozen pizzas to serve at their convenience. Catering services are offered to businesses and patrons that have the need to feed a argue event or party and a much more extensive menu is offered in order to add variety.
Sweet Basil patrons range from all ages and nationalities, which is the advantage of offering a product that 93% of people engage in at least once a month. Pizza is also a relatively inexpensive way to feed a family and large parties of people in residential areas. This makes pizza ideal for people that are currently affected by the downfall of the economy and increases in unemployment. High school kids and local workers are a major part of the afternoon dine-in business that Sweet Basil receives during the week. Nearly 95% of Sweet Basil’s business comes from returning customers, which proves that there is room for new customers.
This also proves that the product tastes great and has an eminent price-quality comparison. 3. 5 Positioning Nearly all Americans enjoy eating pizza because it is a delicious and quick meal, which gives Sweet Basil an advantage over selling other products. In a recent survey initiated by Techno, results show that 68% of those that have children 18 and under living in their household say that pizza occasions usually involve children (Barrett, 2010). This shows that pizza is a very popular amongst families but Sweet
Basil does well with single person households and local workers since pizza is sold by the slice until pm. This also helps in closing the gap for Sweet Basil’s consumers and leaves only those that prefer ordering their pizza and having it delivered. Sweet Basil is not trying to offer delivery service any time soon, but many patrons prefer Just coming in to take-out their pizza rather than ordering delivered pizza from a competitor. This is exactly how Sweet Basil positions itself to consumers; the prices are low and affordable, the quality of food and flavor is unrivaled, and the experience is optimal.
As mentioned earlier, “Sweet Basil” powder adds for a uniqueness that can’t be tasted anywhere else which positions the business very well. All pizzas are created from scratch, using a large mixer for dough and fresh store bought produce, meats, and ingredients from local purveyors. Pricing strategies are used as well to effectively position Sweet Basil’s food offerings. Sweet Basil sells pizza by the slice for only $1 where other companies may charge up to $3/slice. Sweet Basil also sells its large one topping take-out, dine-in, and take-n-bake pizzas for $8, which is a phenomenal value considering all of the top grade ingredients used.
This creates a price-quality comparison that isn’t reciprocated from any competitors in the target market. Sweet Basil is able to position itself to a completely new market with the recent creation of its take-n-bake pizza. Minute reports that frozen pizza can be found in 66% of all households (Barrett, 2010), which gives Sweet Basil a nice competitive advantage over other pizza businesses in the San Gabriel Valley. Sweet Basil notices possible opportunities if they were to contract and create partnerships with local grocery stores and markets. Another possible opportunity in the future would be to