Essay About Take-Out Pizza Industry And Market Leaders

Marketing-Pizza Industry
Essay title: Marketing-Pizza Industry
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
will surely be looking for investment opportunities in the years to come due to the growth
potential in the industry.
Macroenvironment
The demographic factors in the take-out pizza industry have provided new
positive opportunities for companies in the industry. Economic factors can also influence
the industry in a positive or negative way during a good or bad economy. Ecological
factors such as rising prices in gas and rising prices on dairy products has hurt the
industry. Technological factors are helping companies meet new customer needs and
demands and are opening up new opportunities for companies all around the world.
Political and legal factors have not had a tremendous recent impact on companies in the
industry. Cultural factors that have affected the take-out pizza industry have been
primarily the increase in consciousness of health and fitness among the public in the
United States.
Microenvironment
Those factors that are close to a company, that affect its ability to serve its
customers, are called its microenvironment. There are several factors that affect the
microenvironment of a company in the take-out pizza industry mentioned in this report.
They include the industry’s market, the industry’s competitors, its customers, and
the industry’s promotion and distribution of its products.
A. The Market in the Take-Out Pizza Industry in the U.S.
The market for the take-out pizza industry in the United States is fairly large and
not to mention very competitive ( Competitors are talked about later on in this report).
While there are four major companies, Pizza-Hut, Domino’s, Papa John’s, and Little
Ceasers, that own 31.7% percent of the market in this industry, 68.3% percent of the
market is dominated to what are known as “other” businesses. These “other” businesses,
some of which are well known, include the hundreds of small companies or family-
owned businesses, that most people do not even realize compete in the pizza industry.
The 68.3% percent statistic shows that due to the fact that there is a very large market for