For my business mission analysis project I chose Little Caesar’s. I chose to analyze Little Caesars because lately they have become America’s go to pizza place in the past few years. The only place you can get a ready to go peperoni or cheese pizza for $5. I’ve been to Little Caesars on several occasions, although they are not my first option for pizza. They are truly a good pizza place for quick and cheap service.
Little Caesars opened their doors for the first time 50 years ago in Garden City, Michigan. Their founders were Mike and Marian Ilitch. Initially pizza was not the designated career for Mike Ilitch. Mike was a shortstop for the local baseball team, the Detroit Tigers. During his time as a baseball player, mike eyed a local pizza place near the baseball park. Sadly an injury ended Mike’s baseball career, but began his pizza career. Mike and Marian took their life savings to open the first Little Caesars on May 8, 1959. Soon after their success Mike and Marian turned Little Caesars into a franchise to give
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others a chance to own their own business. Mike and Marian did not stop at Little Caesar’s, they went on to own other business in various industries. In 1969, Little Caesars became an international chain opening its first restaurant in Waterloo, Ontario. That was only the beginning for Little Caesars, “By the end of 1969, Little Caesars had 65 restaurants and had expanded into Ohio and Indiana.”, and by 1987, they had expanded to all 50 states (Little Caesars US Franchise). In 2004, they launched their famous HOT-N-READY pepperoni and cheese pizza. It is unbelievable to believe that, “More than 50 years later, Little Caesars is the largest carry out pizza chain in the world and an internationally known brand.” to say the least Little Caesars created a name for themselves (Little Caesars US Franchise). Little Caesars prides itself on good service and quality food. Their mission statement reads, “To be an innovative global leader by focusing on convenience, exceeding customer expectations with extraordinary value and great tasting products, provided by outstanding people resulting in strong returns to our stakeholders.”, and their vision/ goal is “To be the world’s most successful pizza chain.” I think that they have reached their goal in a way (Little Caesars US Franchise). In 2015, Little Caesars was #3 on Pizza Today’s Top 100 Pizza Companies list. As stated in their mission statement focus on convenience, that is one thing I can agree with in their mission. Little Caesars is the one company who values convenience, as a customer you can’t walk in anywhere and get a pizza that’s fresh and already made. Most pizza places say 15 minutes or longer when you walk in. They are a very busy business Thursday-Saturday, and in the morning as well. If you have to wait for a pizza, it’s most likely because they are busy. Even then, you are not waiting too long, and who wouldn’t wait for a hot and fresh pizza to come out the oven. I never have a complaint with customer service in any Little Caesars restaurant I have been in. They definitely fulfill the “exceeding customer expectations” part of their mission statement. The only inconvenience about Little Caesars is that don’t deliver. But often times I ask myself what the point in them delivering is. If they delivered their prices would rise and there would be no more $5 pizzas. As a customer I find that their pizza has a distinct taste. At times it is not always a good taste, but I guess you get what you pay for. I would say that they fulfill their mission statement completely. I truly believe that anyone that has stock in Little Caesars is smart. They have skyrocketed in the past 10 years. I believe that if they continue at the current rate, they will possibly be around for the next 10-20 years. Everyone has their own opinion of Little Caesars, whether it’s good or bad they continue to succeed. In my opinion they could make some changes for the better, but all in all they are a great pizza joint. Little Caesars key customer market is families with children. The primary target market for Little Caesars Pizza is middle and low income families who want to pay low prices for a large amount of food to feed their family. The families that purchase Little Caesars’ pizza are often busy and have little time. I know this from experience, my mom has gone into Little Caesars plenty of times when she doesn’t feel like cooking or doesn’t have the time. We then return to the convenience that Little Caesars presents these families. They even go as far as giving the children little packaged graham cracker. These crackers are shaped like pizza, the Little Caesars’ man, and the logo. I can’t lie, I have asked for a pack or two of these crackers. They are super delicious and an incentive for families to bring their kids into the restaurant. It’s a gimmick like McDonald’s putting toys in their happy meals. They’ve gone so far as to have a pinball machine inside different locations. If you win you get a bouncy ball, some of the bouncy balls have the Little Caesars man’s face on them. You can retrieve a free order of bread sticks when you turn in the balls with the faces on them. They also target students, with little to no income. Most students allocate a certain amount of money for food, especially when they’ve used all of their “on campus bucks”. Little Caesars’ main marketing objective is to be the best take-home pizza chain. This is a marketing objective they succeeded in doing. Little Caesars strategy is to change consumers’ perception of low quality tasting pizza.
In doing this, Little Caesars sends out promotional coupons for free breadsticks, buy one get one pizza offers, and 10% off certain orders. They also offer meal deals that include their $5 and $8 dollar pizzas with breadsticks and a 2-liter drink. Little Caesars also offer a $5 lunch combo that includes a half of a deep dish (peperoni or cheese) and a 20oz drink of your choice. As stated earlier, they have the pinball machine with special balls to get free breadsticks. Although their prices are low, they send out these coupons to appeal to all people. Not only do they sell pizza, but they sell bottles, cups, pizza cutters, baby bibs, and plush animals. Little Caesars is constantly researching and developing its company to improve for the better. They make their food more desirable with the low prices. That is their gimmick and how they have so many
customers. There are plenty of recommendations to give Little Caesars. The first recommendation I would give them is, maybe change the taste of their pizza. Maybe that could buy more expensive products, such as sauce, cheese, and toppings. The second recommendation I would give Little Caesars is to add something sweet to their menu. The one thing that other pizza companies offer that they don’t. They only thing they offer is those little graham crackers. This is actually something I’ve asked about numerous times. I was always told that deserts don’t do well at other companies and that’s why they don’t have them. I honestly think that is completely incorrect. Anytime I’m ordering pizza from Domino’s or Papa John’s I almost always add cinnamon sticks or some type of desert. That would be an asset to the company and would bring them in even more money. My third recommendation would be to maybe offer two more types of $5 pizzas. Not everyone eats plain cheese and some people don’t eat pork. I would offer maybe a beef or a vegetable. Overall Little Caesars is a great company that will continue to rise to the top of the pizza food chain. Once these changes are made, they could possibly change their mission statement to better suit their new add-ons.
Little Caesars SWOT Analysis consists of strengths, weaknesses, opportunities, and threats. Strengths for Little Caesars Pizza Inc. is the company is the largest carry out pizza chain in the world. Hot-N-Ready pizzas which are already made when customers come in the door. Little Caesars name has been strong for over 50 years. Weaknesses Little Caesars have came across is different franchises management can result as a problem, profits of Little Caesars declined in the 1990’s due to the company’s attempts to offer free delivery leading a number of franchisee to shut down.
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During the same period, Little Caesars made a strong push and they have continued to grow. Little Caesars' "two for one" marketing approach was effective in infiltrating the "mom's night off" segment, and is seen by customers as a great value. This is adding direct competition into our niche market share. Little Caesars is surely not making headway with the pizza connoisseurs, but it has effectively targeted a market in which Pizza Hut does not currently have a strong presence. 50% to55% of this market is made up of family dining situations. Our marketing team has conducted multiple data analyses on ways in which we can gain market share from Little Caesars within this market. After much thought and many hours of research, we have devised a marketing plan that will potentially improve our market share.