DISCUSSION FORM 1 COMPLETE

Hello Class,

After pricing a medium-sized pepperoni pizza from the five neighborhood pizza places the three that were least expensive were Little Ceasars, Dominos, and then Pizza Hut. I listed these in the least expensive to most expensive.

A brief description of the three pricing strategies, from least to most expensive strategy.

When pricing a medium pepperoni pizza from Little Caesars pricing strategy right up and center on the first page of the website is their offer of a Hot n Ready pizza ready for pick up between the hours of 4 pm and 8 pm. The second most reasonably priced medium-sized pepperoni pizza was from Domino's. Starting at $11.74 I could place my order and pick it up within 15-20 minutes. Domino's pricing strategy was offering a large pizza for $10.99 versus a medium for $11.74. Then they offered add-ons. The third most reasonably priced medium-sized pepperoni pizza was from Pizza Hut. Priced at $14.19, Pizza Huts pizza is priced a bit higher than their competitors because they advertise that the quality of their pizza is worth the price. They also offer specials and coupons.

Classifications of the five brands into the three pricing strategies: penetration, neutral, and skim.

Penetration pricing is keeping prices lower than the average competition with increasing sales quicker. Little Caesars would be categorized here. Neutral pricing is when the prices match with competitors within the same market. Dominos Pizza would fall into this category. Skim pricing is when the prices are a bit higher seeking customers who have more money and like luxurious products. After pricing pizzas within my area Papa Johns's and Marcos pizza would fall into this category.

For any of the three pricing strategies where you have multiple brands, rank the brands from least to most expensive.

In the skim category I had two pizza venues. Papa Johns medium sized pepperoni pizza was priced at $14.59 and then Marcos Pizza priced at $15.99.

Include the kind of pizza you priced, your recorded prices, and any other pertinent notes you observed in the ordering process.

When pricing a medium sized pepperoni pizza from all five of these pizza venues I noticed that marketing pretty much has the same strategies in mind. From offering promos, coupons, or asking for your reward phone number to wanting you to create an account for next time ordering, these eateries had all these factors in common. They also asked for pertinent information like address, phone number, picking up or requesting delivery services. Most of these sites also offered company history information, customer service contacts, and employment information. Marketers have the same idea when it comes to strategizing on the success of their organization.

Did your perception of these chains pricing strategies change based on this exercise? If so, how?

For the most part my perception of these strategies did not change from what I knew of each of these pizza companies. It is known for a less expensive pizza, quick, hot n ready, Little Ceasars is the place to go. When we are ordering in for a movie and pizza night, my husband and I typically order from Marcos Pizza. I did not, however, realize that it was more expensive than Papa Johns until completing this assignment.

For you, which of these chains represents the greatest value and why?

For me, I enjoy eating pizza from Marcos. It is just around the corner from where I live so this makes for great convenience. It also is my favorite tasting pizza of them all.

Explain how each of the four Ps of the marketing mix contributes to your answer.

The four Ps product, place, price, and promotion, (White, 2019), are all four contributing factors as to why I choose to go to Marcos over the other brands. I may pay a little more but the product is great. The location is ideal because they are located close to home. Marcos does offer promotions via mail and through their online ordering system.

If you were to suggest two sales promotion strategies (Section 5.4) to attract more sales, for the brand that has the greatest value for you, which two would you suggest?

I would suggest that Marcos continue to offer promotional discounts through the mail as they do. When a discount is offered it is well worth it. The second promotional strategy I would recommend is something for their loyal customers, like a loyalty program. For example, after ordering five pizzas the next one ordered is half off, or some incentive like that.

Name the promotional pricing strategy and explain why this is the best fit for the brand you picked.

Marcos primary promotional strategy is the coupon in the mail. It is 25% off your entire order with the use of a promo code. This is best suited for Marcos because they are new to the area. This promotion is a way to get customers to come in and try them out. I can say, it has kept me going back!

QUESTION 1.

Guided Response:

Respond to at least One of your fellow marketers by Day 7 (Monday).

Price-value perceptions vary by individual.

Respond to One of your peers, including one who selected a different chain as offering the best value. Customize your pitch to try to change their mind.

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DISCUSSION 2

Hi Class,

Because there are so many different types of pizza crusts, I decided to go with my familys favorite crust, a thin crust pepperoni pizza. I chose the option of carrying out my own pizza when simulating the orders.

A brief description of the three pricing strategies, from least to most expensive strategy.

It is important to remember that pricing is tightly tied to consumers perceptions of a brand. Marketers can signal positioning of their brands by choosing a high-, average-, or low-price point in relation to competitors (White, S.2019).

Penetration -

In penetration pricing, you set your price lower than the competition.

Neutral -

Neutral pricing is when you charge relatively the same amount for similar items in the same market.

Skim -

Skim pricing is when you charge a higher price for goods so that you appeal to people who have a higher income.

Classification of the five brands into the three pricing strategies: penetration, neutral, and skim.

Because Little Caesars charges the least amount of money for a medium pepperoni pizza, they would be in the penetration category. Dominos cost is very similar to Little Caesars. Therefore, they would be seen in the neutral category. Because Pizza Hut charges the most money in my area for a medium pepperoni pizza, they would be in the skim category.

For any of the three pricing strategies where you have multiple brands, rank the brands from least to most expensive.

Neutral- Dominos $7.99 & Marcos - $10.39

Skim Papa Johns - $11.09 & Pizza Hut - $12.79

Include the kind of pizza you priced, your recorded prices, and any other pertinent notes you observed in ordering process.

As soon as I pulled up Little Caesars webpage, I saw a deal that they had for a hot-n-ready pretzel crust in between the hours of four and eight pm for only $6.99. However, they always offer a hot and ready pepperoni pizza for only $5.55.

Dominos offers a carry out deal where you can get a one topping pizza for only $7.99. They also offer numerous mix and match and combo deals. You can also earn points for free pizza.

When you look at the Marcos pizzas app, you can see right away all the specials that they offer. They also have numerous codes that you can apply to your order to save some money. When pricing out a thin crust medium pepperoni pizza, even though they had a promotion that said you could get a medium 1-topping pizza for $7.99 my total before tax still came to $10.39.

For some reason, Papa Johns would not let me order a medium, thin crust, peperoni pizza. For this order, I had to choose the original crust option. My order totaled $11.09. They do offer PAPA rewards where you earn points with each order and can use them on any menu item.

Pizza huts promotion of their new pizza is the first thing that you see when trying to order a pizza. Right now, it is their cheesesteak pizza with grilled sirloin steak. They will charge $12.79 before tax for their medium thin crust pepperoni pizza.

When researching the pizza chains, it was easy to see how they all have similar marketing strategies. Besides Little Caesars, they all had some sort of rewards system. This is known to keep people coming back. They also have specials that are often the first thing that you see when you go to place an order. Also, they have amazing photos of all the food that they offer.

Did your perception of these chains pricing strategies change based on this exercise? If so, how?

My perception of these chains pricing strategies didnt really change. My family loves pizza, so I know which ones are cheaper than the others, which ones taste better, and which ones to go to when the only thing to consider is the overall cost.

For you, which of these chains represents the greatest value and why?

For me, Marcos is the chain that represents the greatest value. Yes, it is not the cheapest chain, but I think that their food tastes the best. They also offer 25% off coupons in the paper. That keeps my family coming back. Also, they are the closest pizza place to our home, so the drive is extremely convenient.

Explain how each of the four Ps of the marketing mix contributes to your answer.

The four Ps of marketing plays a huge role in my choosing of what kind of pizza I order. I feel like the product is better, their prices are in our budget, and they have a location that is right around the corner from my home.

If you were to suggest two sales promotion strategies (Section 5.4) to attract more sales, for the brand that has the greatest value for you, which two would you suggest?

A sales promotion strategy that I think would apply to any of the chains would be to offer a military discount. When it comes to deciding between two places to purchase pizza, I am still more likely to pick the more expensive one if they offer a discount for military members. This shows military members that they are appreciated. Every little bit helps, even if the discount only makes the order the equivalent of tax-free.

Marcos is a favorite of mine. I love it when I get their 25% off coupon in the mail. If I feel like I am saving money on the pizza, I am more likely to purchase additional items like their cheezybread and cinnasquares. I hope that they continue sending out their coupons. If so, they have a customer for life.

Name the promotional pricing strategy and explain why this is the best fit for the brand you picked.

Marcos promotional pricing strategy is their use of coupons that they send out in the paper. This gets their name out there and introduces new customers to their brand. After all, there are numerous pizza chains, and it is important to ensure that customers will return.

Same QUESTION 2 DIFFERENT DISCUSSION 2

Guided Response:

Respond to at least One of your fellow marketers by Day 7 (Monday).

Price-value perceptions vary by individual.

Respond to One of your peers, including one who selected a different chain as offering the best value. Customize your pitch to try to change their mind.