Sales and Marketing Hell Pizza Report
Table of Contents 1. 0 Introduction(Mila)3 2. 0 Overview (Mila)5 3.
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0 Marketing strategy (Mila)6 4. 0 Environmental scan. (Tina)7 4. 1 Demographic7 4. 2 Economic Factors7 4. 3 Global Environment8 4. 4 Natural8 4. 5 Technological Factors9 4. 6 Political Environment:10 4. 7 Sociocultural Environment10 4. 7. 1 Social responsibilities10 4. 7. 2 Demographical shift11 4. 7. 3 Shift in public conception11 4. 7. 4 Social Events11 5. 0 Competitive analysis. (Tina)12 5. 1 Competitors12 5. 2 Points of Difference12 5. 3 Position in the Market13 5. 4 Future competitors13 6. Market segmentation, target marketing and positioning (Mila)14 6. 1 Geographic segmentation14 6. 2 Demographic segmentation15 6. 3 Behavioural segmentation20 6. 8 Positioning Map: (Tina)21 7. 0 Product Strategy (Mila)23 8. 0 Price Strategy (Mila)25 9. 0 DISTRIBUTION STRATEGY (Mila)27 10. 0 COMMUNICATION STRATEGY (Mila)28 10. 1 Mass communicated advertising in common with targeted communication28 10. 2 In-store communication29 11. 0 WEBSITE EVALUATION. (Tina)31 11. 0 Website evaluation31 11. 1 Technical aspect31 11. 2 User friendliness31 11. 2. 1 Ease of navigation31 11. 2. 2 Ease of contact31 11. Site attractiveness32 11. 4 Marketing effectiveness32 11. 5 Legal compliances32 12. 0 STRATEGY ASSESSMENT (Tina)33 Reference35 1. 0 Introduction(Mila) This report has been compiled to gain an understanding of marketing strategy of Hell Pizza chain operator based in New Zealand. The company operates through 65 outlets in New Zealand and franchised in Britain, Canada, India, Korea and Australia (Restaurant and Food Services Industry in New Zealand, 2012). In this report only New Zealand’s marketplace will be reviewed and contains the analysis of Hell Pizza’s most successful marketing practices.
Eight research objectives have also been reviewed: • environmental scan • competitive analysis • market segmentation • targeting and positioning • product strategy • pricing strategy • distribution strategy • communication strategy • website evaluation Mainly secondary research data has been used to compile this report and personal communication as a primary research data has been marginally used to justify some statements. Method for secondary research: – Statistics New Zealand is operated by the government and is a New Zealand national statistical office. Roy Morgan Research is an international market research company. In this report data is used identify profile of adult consumers and percentage of the adult population (14 years and over) who visited Hell Pizza, Pizza Hutt and Dominos in the last 4 weeks for market segmentation and competitive analyses. 2. 0 Overview (Mila) Hell Pizza is a pizza chain operator based in New Zealand and headquartered in Wellington. It was first established in 1996 at the Kelburn squash club and serving university students, and until now Wellington remains the strongest territory of Hell in New Zealand.
Current menu items offered include standard pizzas, gourmet pizzas, desert pizzas, pastas, salads, sides, dips, and beverages (Restaurant and Food Services Industry in New Zealand, 2012). Hell Pizza provides dine in, pickup and delivery service options. The company was sold to Tasman Pacific Foods in 2006, and then bought back in 2009 by directors Stu McMullin, Callum Davies and Warren Powell; two years later Warren Powell sold his shares claiming that sales are plummeting (Rogers, 2012; Hurley, 2011).
Today Hell has franchise outlets in countries such as Korea, India, Australia, New Zealand, Canada, Britain and a total 65 shops in New Zealand (Restaurant and Food Services Industry in New Zealand, 2012). The Company takes 50,000 to 60,000 orders a month. Out of total orders 40 to 50 per cent of its New Zealand business is delivery orders; the busiest store is Hell Pizza on Cuba Street in Wellington (Rogers, 2012). 3. 0 Marketing strategy (Mila)
Even though Hell Pizza Company does not have any clear formal mission statement, it can be spotted through relative available information about the company. Strong brand awareness, controversial promotional activity, good service and quality innovative pizzas – are the components being valued by the company throughout the process of business expansion. “Our strategy has always been to be noisy in the market” (McMullin, as cited in Rogers, 2012). The company’s mission has been to tempt people into the experience without talking about price in a price-driven saturated marketplace (Medcalf, 2005b).
Mainstream world of pizza was found boring by the group of young founders therefore their vision was to create a fun, hard-core, elastic brand and use every opportunity to get people talking (Boyles, 2005). The foundation of the company however was built on producing “Hell specific” (Stu, as cited in Boyles, 2005, para. 10) high quality food. Davies (as cited in Allen,2004) stresses that even though the pizza market is very competitive, Hell Pizza remains focused on quality and had never competed solely on price (Davies, as cited in Allen, 2004).
According to McMillan (2005), Hell Pizza is consistent in providing “really good pizza” and it is that focus that made the franchise successful (McMillan, as cited in Medcalf, 2005a, para. 21). Technology is seen by the director Stu McMullin as a point of difference for the company, a “policy that has not let him down” (Start Up, 2012, para. 2; Medcalf, 2005). Hell Pizza was the first food delivery used mobile ETPOS and also the first online pizza ordering system in New Zealand (Start Up, 2012; Medcalf, 2005a).
Hell Pizza grew explosively (from 14 shops in 2003 to 33 in 2005) and opened its first restaurant in London, UK in 2007, followed by a store in Brisbane, Australia in 2008 and by today also locating stores in Canada, Korea and India (Franchiseek New Zealand, n. d. ). 4. 0 Environmental scan. (Tina) Constantly changing marketing environment consists of the different forces that affect the marketing management ability to develop and maintain successful transactions with its target customers (Kotler, Bowen & Makens, 2010).
According to Kotler et al (2010a), these forces can either be negative or positive, and it is up to the company to continuously adapt to the changes, in order to survive and thrive. The marketing environment consists of a microenvironment, and a macroevnironment. The microenvironment refers to all factors which will directly impact the day-to-day business and the company itself, such as the suppliers and customers (Kotler et al, 2010a). The macroenvironment, according to Kotler et al (2010a), consists of all the forces which affect the company, providing it with both opportunities and threats.
The seven major forces which influence the marketing strategies and plans of Hell Pizza will be examined in this section: demographic, economical, global, natural, technological, political and social. 4. 1 Demographic Although Hell Pizza has a diverse market, their custom base comprises of consumers in the age group of 20 to 39 years old, who were also found to be open to the use of technology (Medcalf, 2005b). 4. 2 Economic Factors New Zealand has been in a recession since early 2008, which took a turn for the worse when the global financial crisis hit in September the following year (The Treasury, 2012).
However, the economy has begun to pick up, which was possibly due to the Rugby World Cup and increased exports (The Treasury, 2012). According to Davies (personal communication, 15 August, 2012), the economic downturn had little effect on Hell Pizza, as people are more likely to stay at home and order takeout, as opposed to dining out in a restaurant. This is confirmed by a survey by Statistic New Zealand, (2010), which showed on average 8. 4% increase in takeaway food sales from 2009 to 2010. 4. 3 Global Environment
Hell’s Pizza has become a multinational operation, in an effort to achieve one of its visions – “Global Domination” (Hell Pizza, n. d. ). In addition to New Zealand, Hell Pizza also have shops in India, Canada, Great Britain, Australia and several other countries (Hell Pizza, n. d. ). In countries such as India, United Kingdom and South Korea, their population density is significantly higher than that of New Zealand; therefore each shop they open will be exposed to exponentially greater amount of people. However, opening up shops overseas also means that Hell Pizza has to adapt to the local culture.
For example, in South Korean, Hell Pizza had to cut their menu down to just 11 items for the South Koreans, as well as alter the brand attitude slightly. Whereas New Zealanders can relate to the laid-back personality with Hell Pizza, Koreans are not as comfortable with such informality (Rogers, 2012). Another example which demonstrates the effect of different cultures on a business is Hell Pizza in India, where they had to offer greater variety of vegetarian pizzas, in order to fit into to the local customs (Rogers, 2012). . 4 Natural As the world become more concerned about the pollutions around the globe, consumers are beginning to demand businesses to become more environmentally friendly (Kotler et al, 2010a). Unsustainable energy sources such as oil and coal are fast running out, leading to an increase in the transportation cost across the production chain, and thereby increasing the final food prices (Kotler et al, 2010a).
While Hell Pizza recycles where they can, and try to be as environmentally friendly as possible, Davies (personal communication, August 15, 2012) admits that these efforts have to take into account the cost effectiveness and profitability of these measures. 4. 5 Technological Factors A survey by the Statistics New Zealand (2009b) demonstrates the importance of websites; 43% of people interviewed in 2009 have purchased online in the last 12 months, as opposed to just 29% in 2006. Technology such as online ordering systems which enable the consumers to service themselves can replace some of the labour intensive jobs (Reid & Bojanic, 2006).
The shift from telephone ordering to online ordering means that staffs that were previously tied up with answering the phone is now freed to assist with production. This allows for more efficient use of labour, thus reducing the labour cost. The newest technology war is on smartphones. A survey conducted in 2010 has found that 33% of all people interviewed said they access retail websites through their cell phone (Arellano, 2011). Currently, Hell Pizza has an iPhone application, where the user can place orders (iTunes, 2012).
However, users on other systems such as Android and Windows are left out (iTunes, 2012). If Hell Pizza can reach those users, they would really be taking good advantage of the smartphone technology. 4. 6 Political Environment: All businesses are regulated by the government legislations and laws, which makes up the political environment (Kotler et al, 2010a). Some of the regulations and legislations which the hospitality industry in particular must abide by regarding the consumers include Food Hygiene Regulations 1974, Food Act 1981 and amendments 1996.
As for the employees, there are the Health and safety in Employment Act 1992 and subsequent amendments 2002, and Occupational Health and Safety regulations. Any additional laws could affect the operation of Hell Pizza. For example, the Food Industry Group is working on changing New Zealand’s system of nutrition information on food labelling, to one which would be more informative and clear (Food Industry Group welcomes Australian approach to nutritional labelling, 2011). If this goes through, Hell Pizza would have to change their existing nutritional traffic light system to the new one.
However, Hell Pizza has made sure to state on their website that any political changes which affect their ability to deliver their promised service is outside the company’s control, therefore they cannot be held accountable (Hell Pizza, n. d. ). 4. 7 Sociocultural Environment The social environment is continuously evolving, as it is shaped by the perception and behaviour of the consumers. The consumers in turn, are constantly being influenced by the changes in the other major forces in the macroenvironment (Reid & Bojanic, 2006). 4. 7. 1 Social responsibilities
The population as a whole has also become more conscious of the environment and social ethics (Kotler et al, 2010). According to the funder of Hell Pizza Callum Davies (personal communication, August 15, 2012), his company contribute to various charity organisations, and does their best to buy from local businesses, thereby backing the New Zealand economy. An example was when Hell Pizza donated all the revenue they made in their shops on 16th of March, 2011, to the Christchurch Earthquake Relief (Scragg, 2001). 4. 7. 2 Demographical shift
The NZ demographic has evolved over the past decade. For example, the Asian population has grown by 66% since 2011 (Statistics New Zealand, 2011; Statistics New Zealand, 2012). Also, as the regular customers continue to grow older, the target market of Hell’s Pizza evolves as well. 4. 7. 3 Shift in public conception The public has become more health conscious; in response Hell Pizza has developed a traffic light system which allows the consumers to see which pizzas are healthier than others, thus making an informed decision about what they eat (Laws, 2012). . 7. 4 Social Events Social events can also have a big impact on businesses. For example, when the Rugby World Cup was hosted in New Zealand, it was a great opportunity for Hell’s Pizza to promote its products to foreigners, especially those who have Hell’s Pizza in their home country. During this time, a competition was held where people were encouraged to take a picture with celebrities with a Hell Pizza Fist drink holder (http://www. facebook. com/photo. php? pid=7627413&l=b968e46e75&id=p43522837224). 5. 0 Competitive analysis. Tina) Every business faces its own set of competitors, and it must recognise these competitors in order to change its marketing strategies accordingly (Kotler et al, 2010a). Competitors can be categorised into four levels. First level is businesses which offer comparable core products. Second level is those serving matching level of product. The third level is companies which offer the same service. Lastly, the fourth level is anyone who is competing for the same consumer dollar, including the consumers themselves (Kotler et al, 2010a).
For the purpose of this report, only direct competitors who are on the first level are analysed, as it is difficult to measure the exact impact of all other indirect competitors. 5. 1 Competitors Hell Pizza is a franchise, so other pizza chains such as Domino’s and Pizza Hut are all considered its direct competitors. Although publicly, the business claims they are not competing against budget pizza chains (Janes, 2009), their custom bases still overlaps, Hell Pizza’s product is gourmet pizzas, therefore its New Zealand competitor s also extend to businesses such as Sal’s Authentic New York Pizza, Non-Solo Pizza, and La Porchetta. Points of Difference 1) Innovative and controversial marketing campaign Not only can the customers easily identify the distinctive Hell theme, its marketing strategies have established its brand as more than just an image; it has taken on its own personality (Medcalf, 2005b). 2) Quality Quality of food, healthy toppings, food hygiene and the offering of greater variety than the traditional varieties all differentiates Hell Pizza from its competitors (personal communication; Medcalf, 2005b). 3) Traffic light system
As mentioned earlier, Hell Pizza has recently developed a health traffic light system, which not many of their competitors have done (Laws, 2012). 5. 3 Position in the Market Despite these competitive edges, Hell Pizza is still behind pizza giants such as Domino’s and Pizza Hut. A survey has found that among those who visited Hell Pizza, Pizza Hut and Domino’s Pizza in the last four weeks in 2010, out of those who are ages 18 and over, Hell Pizza was the least visited store with only 13. 80%, whereas Domino’s and Pizza Hut showed 27. 5% and 20. 10% respectively (Fast food places visited in last four weeks, 2010). . 4 Future competitors The food industry is one which has a low entry barrier, as well as a low exit barrier (Kotler et al, 2010a). However, as Sharma and Gadenne (2010) found in their study, businesses that differentiate itself from its competition through quality are more likely to maintain their market share, as opposed to businesses with low pricing strategy. Hell Pizza is therefore more likely to secure their position in the market against new entrants than other budget companies. 6. 0 Market segmentation, target marketing and positioning (Mila)
Most companies segment a market by two or more demographic, geographic, psychographic and behaviouristic variables, however there is no single way to segment a market (Kotler, Brown, Burton, Deans, Armstrong, 2010b). 6. 1 Geographic segmentation New Zealand’s population is highly urbanized where Auckland region accounted for about one-third of New Zealand’s estimated resident population and remains a second fastest growing main urban area and Wellington remains the third largest area with 386,000, closely behind Canterbury (Statistic New Zealand, 2009a).
However, this has changed since the Christchurch earthquake, which caused an estimated number of 8900 people to leave the area. (Newell, Beaven, & Johnston, 2012). In New Zealand Hell Pizza operates 65 outlets in 16 towns and cities. Significantly more branches are in Auckland region 25, followed by 14 brunches which are located in Wellington region (Statistic New Zealand, 2009a). The correlation between the number of Hell Pizza outlets and the population distribution can be seen from Image 1 and 2. [pic] [pic] 6. 2 Demographic segmentation
Tables 1,2,3,4 and 5 are the information data retrieved from Roy Morgan and variables by which demographic profile of the market segmentation was identified. Generation It can be seen from the table 1 below, that out of those who visited Hell Pizza outlets Generation Y made up the most of those who visited, followed by Generation X and Z. Table 1. Percentage of the generation of adult population (14 years and over) who visited Hell Pizza in the past 4 weeks for the period from August 2009 – July 2010. [pic] Source: Roy Morgan New Zealand Ltd, 2010. Reprinted with permission Sex
Data, retrieved from Roy Morgan Single source (table 2), shows that there were slightly more male visited Hell Pizza in the past 4 weeks than female, with 17,1% and 12,2% respectively. Table 2. Percentage of make and female of adult population (14 years and over) who visited Hell Pizza in the past 4 weeks for the period from August 2009 – July 2010. [pic] Source: Roy Morgan New Zealand Ltd, 2010. Reprinted with permission Ethnic Group From data derived from Roy Morgan, table 2, it was found that out of those who visited Hell Pizza in the past 4 week European population made up a significantly larger portion of those who visited.
Table 3. Percentage of male and female of adult population (14 years and over) who visited Hell Pizza in the past 4 weeks for the period from August 2009 – July 2010. [pic] Source: Roy Morgan New Zealand Ltd, 2010. Reprinted with permission Weekly household expenditure As it can be seen from the table 4 below, out of those respondents who visited Hell Pizza in the past 4 weeks, most of those have an average weekly living and household expenditure $1000 and over, followed by those who spends $800-$899on all living and household in an average week.
Table 4. Percentage of how much does your family spend on all living and household expenses in an average week (dollars) of adult population (14 years and over) who visited Hell Pizza in the past 4 weeks for the period from August 2009 – July 2010. [pic] Source: Roy Morgan New Zealand Ltd, 2010. Reprinted with permission Occupation As can be seen from the table 5 below, out of those who visited Hell Pizza in the past 4 weeks, the majority of them works full time, out of this majority, most are white collared workers. Table 5.
Percentage of occupation of adult population (14 years and over) who visited Hell Pizza in the past 4 weeks for the period from August 2009 – July 2010. [pic] Source: Roy Morgan New Zealand Ltd, 2010. Reprinted with permission Therefore, based to Roy Morgan data, an average visitor to Hell Pizza store representing a demographic segment in New Zealand would most likely be a white collared European male or female of Generation Y or X, with an average weekly living and household expenditure from $800 and over. Georgaphically, Hell Pizza mainly segments Auckland and Wellington as to larger markets. . 3 Behavioural segmentation Occasion segmentation Hell Pizza offers gourmet catering “to everyone’s desires” (Hell Catering, n. d. ). Hell Pizza is suitable for themed parties such as Halloween, conferences and other occasions. Benefits segmentation Hell Pizza offers a wide range of meal options for those who is: • gluten free • vegetarian • “HELLthier” option meal. 6. 8 Positioning Map: (Tina) Brands are rated together against each other similarity or dissimilarity which results in a multidimensional map identifying factors that discriminate between brands (Kotler et al, 2010b).
Below is the two-dimensional map of Hell Pizza and its main direct competitors in New Zealand – Pizza Hut and Domino, based on online research. High According to Hell Pizza’s menu (2012b), in addition to the standard pizzas, gourmet pizzas, desert pizzas, pastas, sides, and dips, customers can also decide their choice of salads and chilli. This choice is unique to Hell Pizza, differentiating it from its competitors. Compared with Hell Pizza and Pizza Hut, Domino’s Pizza offer more varieties of pizzas and crusts.
While their prices are lower on average, the surcharges they put on the additional options such as cheesy crusts are higher than Hell Pizza and Pizza Hut (Domino’s Pizza, 2012). Pizza Hut offers less variety across most product categories, and is slightly more expensive than Domino’s Pizza, but still much cheaper than Hell’s Pizza. The differentiating point for Pizza Hut is that it offers greater variety of Mia Pizza (snack pizza) than the other two pizza shops (Pizza Hut, 2012). 7. 0 Product Strategy (Mila)
Hell Pizza’s product analysis will be based on the theory from Kotler et al (2010b). Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need (Kotler et al, 2010a, p. 298). Kotler et al (2010a) suggest that product should be viewed in three levels: Core Product: What is the core benefit your product offers? Actual Product: a quality level, features, styling, brand name & packaging Augmented product: additional consumer services and benefits.
Therefore, Hell Pizza’s: Core product – gourmet pizza Actual product –consistent, high quality pizza (Medcalf, 2005), supported by a strong brand personality (evil and sinful image is present in the menu), featured with original packaging (as shown in image 3 below). Augmented product – Hell Pizza benefits its consumers with a choice for those who are gluten free, vegetarian or those who prefer HELLthier option meals. Personal selling in Hell Pizza can also be referred to an intangible augmented product as an important part of a hospitality product. [pic]
Retrieved from: http://www. facebook. com/hellpizza Product life cycle stage According to the available information Hell Pizza’s PLC appears to be at Growth stage, which is a period of great market acceptance and increasing profits (Kotler etal, 2010b). Information below points out to the company’s prosperity. – Since it was established in 1996, Hell Pizza grew explosively from 14 shops in 2003 to 33 in 2005, and accounts 65 outlets in New Zealand today( reference). – Sales revenue increased from $1. 2 million to $55 million between 2002 and 2006 (stuff. o. nz, 2008). – April, 2012 New Zealand Herald described Hell Pizza as a third biggest player on the market ( New Zealand Herald, 2012) – Hell Pizza established franchises in Korea and India in 2011 (Rogers, 2012). 8. 0 Price Strategy (Mila) Kotler et al, (2010b) suggests that company’s pricing decisions are affected by internal factors: company’s marketing objectives, marketing mix strategy, costs and organisation; and external factors: the nature of the market demand, competition and other environmental factors.
There are five general pricing approaches which a company combines when setting their prices: cost- based approach (additional mark-up to the cost), value-based approach (prices are based on buyers perceived value), competition based approach (prices are largely based on competitor’s prices) and performance-based pricing (seller is paid on the basis of performance of the offer) (Kotler et al, 2010b). – Hell Pizza charges $17. 50 for a 12. 5 inches (double) Pizza and $8. 50 for a 7. 5 pizza (snack), with an additional options for thin bas $2 or gluten free base $3. Hell Pizza is focused on quality and had never competed solely on price (Allen, 2004). Hell Pizza charges higher price compared to its direct competitors Pizza Hut and Dominos to cover the high product quality (Hell Pizza, 2012; Domino’s Pizza, 2012; Pizza Hut, 2012). Therefore: – Externally Hell Pizza operates under monopolistic competition markets, where buyers and sellers, who trade over a range of prices, which occurs because sellers differentiate their offers (Kotler et al, 2010b). – Quality leadership is one of and an apparent internal marketing approaches for Hell Pizza. Hell Pizza uses a combined cost based – value based general pricing approach There are also different price – adjustments strategies (such as discount pricing allowances, segmented pricing, psychological pricing, promotional pricing, value pricing, geographical and international pricing) , that companies use to account for different customers and situations (Kotler et al, 2010b) – Hell Pizza regulary applies promotional pricing (attracts customers or rewards loyal customers, (Kotler et al, 2010b). – Geographical and international pricing is also present (Korea, India) – Psychological.
For example, the misfortune cookies advertisement promoted six cookies for $2. 50 (http://www. facebook. com/hellpizza); it is priced as such so that consumers cannot easily calculate and compare the price of each individual cookies. 9. 0 DISTRIBUTION STRATEGY (Mila) Distribution system for Hell Pizza is direct marketing, which means that there are no intermediaries involved. Hell Pizza distributes in 16 cities and towns in New Zealand. The company locates most of its branches in Auckland and Wellington – cities with the highest numbers of the country’s population, with 25 and 14 branches respectively.
Hell Pizza uses four methods of selling its products directly to the market: – Dine in or take away option. Customers can go to the nearest Hell Pizza, place an order and either eat at the restaurant or leave with the order – Order online. Domestic customers can place the order online, and either picks up the pizza or get it delivered. – iPhone application. Fast and mobile option to order a pizza for either pick up or delivery for those who own an iPhone. Convenient for ordering if the only internet access you have is through the phone. – Home and office delivery. Customers can place orders either via the phone, online or an iPhone. 0. 0 COMMUNICATION STRATEGY (Mila) Depending on whether Hell Pizza wants to inform, remain or persuade its audience, company uses various integrated marketing communication (IMC) tools and technologies. Integrated marketing communications include adverting, personal selling, sales promotion, online and direct marketing and entitle coordinating organisation’s promotional efforts (Kotler et al, 2010b). 10. 1 Mass communicated advertising in common with targeted communication This is where customers’ self-select the message or product involved and those are tailored to suit various market segments. – Public relations.
In order to build or reinforce corporate image, handle or head off unfavourable rumours, events or stories. According to the Advertising Standards Authority Hell Pizza finds controversy as a way of generating publicity (as cited in Lord 2012). Overall the company has produced the most complained-about advertisings, including mailed out condoms to promote its “Lust” meat pizza, attracting a record of 685 complaints to the Advertising Standards Authority in 2006 (Boyles, 2005). – Pay-Tv commercials, “Pizza Roulette”, “Sides” and “Quarn” advertisings on TVNZ’s channel (Hell Pizza, 2012). – Radio advertising. Numerous times Letterbox drops. Mailed out condoms to promote its “Lust” meat pizza. – Billboards. Such as a billboard with the advertising of cross buns with a slogan “For a limited time. A bit like Jesus. ” (Hell Pizza, 2011). – Telephone directories. Yellow pages – Social Media. Hell Pizza actively engaged with their customers through social network Facebook and Twitter, with over 49,000 likes and 5,000 followers respectively (personal research, as at 18th of September, 2012). – Mobile advertising. Such as an old 1970’s hearses Cadillac with the inscription “The Quickest Way to Hell”, painted down the side with their Web address. 970’s police cars, with police lights and sirens “To Protect and Serve Damned Tasty Pizza”, they also have mini coopers, beach buggies and three wheel scooters they use to deliver pizza, painted with their logo (PIZZA MAGAZINE REF). – Interactive YouTube’s “Deliver me to Hell” game has also been very popular in NZ and very successful overseas, such as the company even sponsored zombie shows in the United States and South America. Furthermore iPhone’ application, had over 5,000 downloads in the first month, and that is without even the company promoting its release. 0. 2 In-store communication – Personal selling. Personal interaction between Hell Pizza and their customer happen either when customer places the order or dines-in the restaurant, through the phone or when delivery happens. – Point of purchase promotions. Posters and the communication from personal selling. – Merchandising. Company merchandise such products as T-shirts with such slogans as “eat me”, and “providing oral pleasure since 1996”, beanies, boxer shorts and other stuff with company’s logo on it (Boyles, 2005). 10. Sales Promotions is a strong tool used in conjunction with advertising in order to create awareness or change a value for money perception (Kotler et al, 2010b). Hell Pizza’s sales promotions include: – Money-off deals – Redeemable coupons. For example $1 for a double or gourmet pizza from Hell in Christchurch, where 9718 was bought (Treat Me, n. d. ) – Discount vouchers, such as those on Vouchermate (2009). – Premium offers (free delivery on Tuesdays – Contests and games of chance and skill. Pizza Roulette included Facebook competition where people uploaded videos of themselves playing the game.
Another competition was during the Rugby World Cup, included to stalk celebrities with the fist and take a picture of them (http://www. facebook. com/photo. php? pid=7627413&l=b968e46e75&id=p43522837224). – Event Sponsorship (Kapiti sports clubs) – Fundraising ( Hell Pizza Northland Hell Pizza Northland, are giving some money to the Karoriri Pirates swimming club to help with fundraising) – Charity, such as the donation Hell Pizza offered to the Christchurch Earthquake Relief as mentioned earlier (Scragg, 2001). 11. 0 WEBSITE EVALUATION. (Tina) 11. 0 Website evaluation
Hell’s Pizza website is designed by Inject Design, who specialise in projects which are unique and creative (Inject Design, 2011). In order to evaluate the website thoroughly, five categories will be examined: technical aspect, user friendliness, site attractiveness, marketing effectiveness, and legal compliances (Morrison, Taylor & Douglas, 2004). 11. 1 Technical aspect The website is accessible through all the widely used browsers, such as Firefox, Google Chrome, Internet Explorer, and it also has a mobile version which allows access for smart phone users.
The time it takes to load each webpages is never more than a few seconds, which is acceptable. There are no spelling mistakes identified. 11. 2 User friendliness 11. 2. 1 Ease of navigation The website is simple and straight forward; therefor it is easy to navigate around, with a home button on every webpage. However, perhaps because the web designer assumed web users would have no problem getting around, there is no sitemap or search engine. 11. 2. 2 Ease of contact There is only one email address available: [email protected] co. z and it is displayed at the bottom of every page, along with their 0800 number. Therefore anyone who wants to contact the headquarters of Hell’s Pizza for any enquiries unrelated to feedbacks may search all over the page before realising that is the only email address. For all other contact information, users must first choose a region, then the stores, before gaining access to the contact phone number, address, and opening hours. 11. 3 Site attractiveness The overall colour scheme is white and some red text on black background, which makes it easy to read while maintaining visually appealing.
The pages are uncluttered and clean; the background pictures keeps to the theme of Hell, and are all on the top, bottom and sides of the page, acting as a frame which guides the eyes to the middle. Overall, the website is appealing and clear. 11. 4 Marketing effectiveness Current promotions and discounts, most of which contain links to their own promotional videos, are displayed on the homepage, as well as an additional ‘Promotions’ page. The marketing position is clear throughout every page, and keeping to the same theme. However, the website does not tangiblise heir products; there are no pictures of their pizzas or stores, making it hard for users to visualise the actual products. 11. 5 Legal compliances In the ‘About’ section, there is a ‘Privacy’ page as well as a ‘Terms and Conditions’ page, which displays information such as how they collect information, Consumer Guarantees Act, payment policy, and liabilities. These explain clearly how the business protects themselves as well as the customers, which can provide reassurance for the customers. 12. 0 STRATEGY ASSESSMENT (Tina) Hell Pizza has relatively strong position in domestic market.
Elements such as Increase in revenue, franchise extension and the launch of the new iPhone application indicate that product is still at it Growth stage for Hell Pizza. Aggressive branding and advertising in common with consistent product quality are the core strategies for Hell Pizza and is affected by the many external factors such as the surrounding environment and competitors, and determined by their market segmentation and position. Hell Pizza positions itself as a gourmet pizza store, and differentiates itself from competitors through quality, and not price.
Hell Pizza offers the most expensive product, compared to its main competitors, as well as the best service and mainly targets to those of Generation Y or X, with an average weekly living and household expenditure $800 and over. While it does not compromise its quality through price, Hell Pizza often runs various promotions and competition, such as the ‘Celebrity fisting’ (http://www. facebook. com/photo. php? pid=7627413&l=b968e46e75&id=p43522837243) mentioned earlier. Hell Pizza uses various integrated marketing tools and technologies, which include mass communicated advertising and in-store communication.
Although these are the most complained-about advertisement (Rogers 2012), they also generate much publicity, which raises public awareness. All these communication strategies keep to the theme of Hell and the company’s fun image, while appealing to their target market. As a result, the company is able to send consistent messages to its customers, which are distinctive and unique to the company, thereby differentiating itself from their many direct competitors. Overall, the marketing strategy of Hell Pizza is strong and innovative. Reference Allen, S. (2004, Dec 24). Hell pizza franchise extends its horizons. Dominion Post, pp. -B; 9. Retrieved from http://ezproxy. aut. ac. nz/login? url=http://search. proquest. com/docview/338145934? accountid=8440 Arellano, J. (2011). Mobile shopping increases. Rural Telecommunications, 30(2), 9-9. Retrieved from http://ezproxy. aut. ac. nz/login? url=http://search. proquest. com/docview/862163216? accountid=8440 Boyles, T. (2005, November). All Hell breaking lose. PMQ Pizza Magazine. Retrieved from http://pmq. com/mag/2005november-december/allhell. php Domino’s Pizza. (2012). Menu. Retrieved from http://www. dominospizza. co. nz/menu/pizzas/ Franchiseek New Zealand. (n. d. ). Hell open franchise operation in the UK.
Retrieved September 30, 2012, from http://www. franchiseek. com/NZ/NewsDetail. asp? NewsID=295 Hell Catering. (n. d. ) Home. Retrieved 29 September, 2012, from http://hellcatering. co. nz/ Hell Pizza (Producer). (2011, May 4). Hell Pizza: Hell Cross Bun [Television Advertisement]. Auckland, New Zealand: TV 3. Hell Pizza (Producer). (2012a, May 1). Hell Pizza: Pizza Roulette [Television Advertisement]. Auckland, New Zealand: TV 3. Hell’s Pizza. (2012). Hell’s Pizza Order. Retrieved from: https://hellpizza. com/nz/order Hell Pizza (2012b). Menu. Retrieved from http://hellpizza. com/nz/stores/menu-picker/menu/standard Hell’s Pizza. n. d. ). Retrieved September 17, 2012, from http://www. hellpizza. com/ Hurley, B. (2011, August 21). Hell Pizza director sells up. The New Zealand Herald. Retrieved from http://www. nzherald. co. nz/business/news/article. cfm? c_id=3&objectid=10746463 Inject Design. (2011). About Us. Retrieved September 19, 2012, from http://injectdesign. co. nz/ iTunes. (2012). Hell Pizza. Retrieved September 17, from http://itunes. apple. com/nz/app/hell-pizza/id460256659? mt=8 Kotler, P. , Bowen, J. T. , & Makens, J. C. (2010a). Marketing for Hospitality and Tourism (5th Ed. ). Upper Saddle River, NJ: Prentice Hall. Kotler, P. , Brown,