V. Competition

Pizzeria Fresco found that its nearest competitors are; Cali Pizza Co. located at 422 University Place, Pizza Pizza located at Broadway and A Street and Big Piece Pizza located at 1074 Bleeker Street. These are three existing pizzerias that currently offer gourmet or specialty pizza.

Cali Pizza Co. in particular is a close competitor because it markets a selection of individual pizzas with “gourmet” toppings that are similar to Pizzeria Fresco’s such as artichokes, potatoes, and the use of basil. In addition, among the competing gourmet pizzerias, Cali Pizza Co. sells individual (8”) slices for an average of $4.50. Pizzeria Fresco though, offers a small (5”x 6”) slice at a lower average cost of $2.50, which is a price no other existing “gourmet” pizzeria offers. The other major difference is the brick oven cooking procedure that Cali Pizza Co. promotes. Pizzeria Fresco will promote itself more as “authentic Northern Italian pizza with a healthy flair”, which is considerably different.

Pizza Pizza is another competing pizzeria offering specialty pizzas, they also offer fresh vegetable toppings similar to Pizzeria Fresco but their pizzas are deep-dish pizzas that take 20 minutes to prepare and are served restaurant style, no fast food. In addition, they don’t promote their pizza as healthy, with some pizzas that are prepared with crispy bacon, black forest ham and Cajun sausage. Another differentiation between Pizza Pizza and Pizzeria Fresco is it’s pricing, the average for an individual 9” pizza is $7.50.

Big Piece Pizza is another pizzeria that offers specialty pizzas. This pizzeria in particular does offer some pizza toppings that are similar to Pizzeria Fresco such as shrimp, calamari and selected vegetables, but it’s only the toppings that are different from the traditional American pizza slice. The actual pizza is prepared as the usual pie found at other pizzeria and it promotes a Cajun flavor in a “fun” atmosphere, rather than a gourmet pizza in a stylish décor. Big Piece Pizza is closer to Pizzeria Fresco in pricing, with an individual slice plus one topping at $2.25, but again, these are the same kinds of slices found at most other pizzeria, and therefore, not really comparable to Pizzeria Fresco gourmet style pizza.

Collectively, Pizzeria Fresco’s competitors have established themselves in the Greenwich Village and already maintain an identity of serving pizza that is “different” from other pizzerias. They all seem to be doing well and have gained the attention of consumers who are interested in new styles of pizza. Pizza Pizza in particular has an interesting promotional concept, offering a meal and movie theater tickets package at a set price of $32.00 for two. Cali Pizza Co. seems to excel in service by providing made-to-order pizza very effectively.

The competition’s weaknesses are in several areas ranging from high prices to slow service. Pizza Pizza in particular has the highest prices and an average waiting time of 20 minutes between ordering and being served. Big Piece Pizza also runs a slower operation, and also has an atmosphere that lacks professionalism (which can be interpreted as lack of quality control) – it is dimly lit, and has a “dive-like” atmosphere.

Although Pizzeria Fresco does recognize its competitors, the positioning that Pizzeria Fresco will take is quite different from any of the existing pizza establishments. Pizzeria Fresco will enter the market as a “first” in several areas – first authentic Northern Italian pizza recipes, first health-oriented pizza and first low-priced gourmet-style pizza.

The competition has actually created some positive affects for Pizzeria Fresco. These pizza establishments have marketed and presented to consumers the idea of different styles of pizza; therefore Pizzeria Fresco is not entering the market from the point of having to actually create brand awareness. Pizzeria Fresco can already determine from the competitions’ success that there is demand for different styles of pizzas, and Pizzeria Fresco mission and strategy is to offer consumers a great gourmet style pizza that no other pizzeria can offer.

VI.Marketing Strategy

Pizzeria Fresco plans to grow and gain market share by employing a well thought out marketing strategy. This strategy is comprised of the following.

1. Exploiting word of mouth to make consumers aware of Pizzeria Fresco. Create recognition among potential customers that this new style of gourmet pizza exists and is reasonably priced.

2. Developing an image of Pizzeria Fresco as being a unique pizzeria offering healthy pizza, via mass media.

In order to promote Pizzeria Fresco as stated above, a media campaign would be developed mainly in the form of News Releases. News releases will be written up and distributed to NYC news publications, radio stations as well as to local community groups, associations, schools, etc. Pre-opening events inviting local consumers and media personalities to experience Pizzeria Fresco pizza will be planned. At these events, the idea and image of Pizzeria Fresco as a healthy gourmet pizzeria will be marketed.

Other advertising and promotional campaigns will be incorporated, including:

Advertising in local publications, with coupon offers as part of the ad. An example may be “mention this ad and get 10% off” or “mention this ad and get ½ price on any beverage”. Possible publications include NY Press, the Village Voice, Time Out magazine, New York Magazine, tourist and entertainment guides, university publications, etc. The ads will run regularly for a period of three months. Thereafter, adjustments will be made depending upon the pull of the ad from each publication.

3. Offering a promotional program where customers get membership cards and receive free pizza or products after a certain number of visits. For example, cards will be printed up with Pizzeria Fresco’s logo and an expiration date. Each time a customer makes a purchase, a Pizzeria Fresco imprint will be made on the card, and after 5 visits, the customer will be able to exchange the card for a free pizza, before the expiration date. The same type or promotion can be made for delivery, offer ½ off one pizza after three orders are placed.

Distributing flyers throughout the local neighborhood. These flyers will include special coupons with expiration dates. They will include information on what Pizzeria Fresco offers and prices for special meals.

Offering in-store promotions and contests. For example, customers can fill out an entry blank to win a free: “Pizza Party” for 10. Each month one entry is drawn and Pizzeria Fresco will prepare and deliver pizza for 10 to the winner. A database of names, addresses and email address will be kept and they will be sent coupon mailings.

For all of Pizzeria Fresco’s promotional ideas, a distinctive logo will be used. Preliminary ideas for the logo are being developed and evaluated. The final result will be of one logo to be used widely in-store and in all advertisements and promotional programs. In addition, the pizzeria will develop a website which will list the menu and prices as well as contact information.

VII. Management

Decisions relating to key management issues at Pizzeria Fresco are the sole responsibility of Anthony Pandolfini. He has extensive experience in restaurant management as well as the preparation of pizza. In addition, Jennifer Lee will also be involved in planning and executing promotional and marketing strategies. Included are the resumes identifying background and qualifications (see Appendix D).