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While in my home town, Detroit, for a high school reunion a couple weeks ago, I took a trip down to my undergrad alma mater, Wayne State University, to visit the new Mike Ilitch School of Business Building which was dedicated about a month ago. I was impressed by the building and by its location which was about a mile from campus and right next to the new Little Caesar’s Arena, home of the Detroit Red Wings (which Ilitch owned) as well as the Pistons NBA team. I was impressed by the new arena as well as nearby Comerica Park (home of the Tigers, which is also owned by the late Ilitch’s family). My first impression was “Wow, that’s a lot of pizzas to build these mammoth, modern facilities! Indeed, it is and it’s particularly amazing given the competitiveness of the pizza industry in the US.
- Little Caesar’s is one of the top national chains, competing with Pizza Hut, Domino’s, Papa John’s, Jets, California Pizza Kitchen and local Detroit favorite Buddy’s for a share of the pizza market. Little Caesar’s established itself years ago by marketing the fact that not only are its pizzas really delicious but that you get two pizza pizzas every time you order one at the same prices Don’t forget the take and bake stores as well which includes Papa Murphy, Straw Hat, and the Sam’s and Costco Warehouse stores). Of course, we all have our favorite local independent pizza places which help make up the over 62 million pizzerias who spread mozzarella and pepperoni in every corner of the US (and the world for that matter). So, what make one pizza shop succeed in such a competitive market place? Sure, there are the multitude of coupons that flood our newspapers, mailboxes and on-line every day. And there are the thousands of delivery cars and vans that deliver hot pies to our front doors (and don’t forget Uber and Lyft as well). However, I believe it’s branding that continues the growth of this popular staple to our diet.
- I recall my first pizza job when I was in grad school at Pizza Hut which was a regional player at the time. The key to Pizza Hut’s brand was its special sauce which was confidentially delivered to each hut weekly. We made all the rest of the pie like any other but when we added the herbs and spices to the sauce, the brand took on its uniqueness. Since then, Pizza Hut strengthened its brand with innovative offerings like personal pans, stuffed crust, pan pizzas and unique toppings and amenities.
- Domino’s built it brand on delivery—hot and fresh—within 30 minutes- and has developed systems to insure it still gets there hot whether you order delivery or pick up at their state-of-art system stores.
- Papa John’s went even further with its “Better ingredients, better pizza” by building on its owner as an icon (although that’s been tarnished lately).
- California Pizza Kitchen built on the trend of gourmet and artisan pizzas in mall-based locations and full service restaurants as well as packaging their pizzas to be sold in food stores and chains nationwide
- Jet’s built on its Detroit roots by offer a square pan with a crispy crust just like Motown Buddy’s (which was included in my reunionvisit as well).
And, I could go on about why 94% of Americans eat pizza regularly at one place or another for a total 5 Billion pies annually. But, let’s just consider that it’s one industry that can attribute its success to BRANDING and watching all of the commercials and ads, there’s no question that marketing is as an important ingredient as the cheese, sauce, crust, and toppings. And it just can’t be me-too messages. Since I am paying homage to Mike Ilitch and Little Caesars, my favorite pizza commercial of all time was run in the Super Bowl (by the way the Sunday when more pizzas are consumed than any other day of the week) several years ago when the company announced its delivery system. They didn’t just announce they too will deliver, but they made a convincing message about how well they trained their delivery person’s.
Take a look by clicking on this Super Sunday spot link:
Not only did this make the case for delivery but also helped brand the quality of the service and pizza cooks as well. A strong message to compete with the mom and pop pizza shop around the corner.
And it takes a lot of branding in the independent pizzerias too. Their brand is built by the family, the chef (like in the new Coke commercials about pizza), and the servers who usually have been there as long as the ovens that bake the pizza.
When I worked in the Glendale, AZ, Pizza Hut decades ago, I was worried that I would lose my love of pizza when I made and served hundreds each week. However, when I walked in and smelled the oregano in the sauce and crusts baking, the craving was only enhanced. I’m sure many pizza lovers who still eat in or pick up have that same sensory delight, but the it’s the branding that gets us to come in time after time for the pies we crave.
SHARE OF PIZZA CHAIN MARKETSL $25 BILLION+ ANNUALLY):
Pizza Hut 15%
Domino’s 10%
Little Caesars 8%
Papa John’s 6.5%
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