Hungry Henry's is a take-out pizza chain owned by Dominic Stevens that operates several locations in a city of 45,500 people with an additional 21,500 college students attending the local community college. A specific Italian concept has opened in the area and is offering their pizzas at a 21% lower price than Hungry Henry's pizzas, despite lower quality and quantity of ingredients. As a result, Dominic has identified a decrease in business, particularly among students. What is the effectiveness of the pricing strategy used by the new competitor? What recommendations would you give Dominic to compete with the new rival? What are three techniques you recommend that restaurants can utilize to convey the value of their products in terms of quality, rather than just low cost, to potential customers?
Hungry Henry's is a take-out pizza chain owned by Dominic Stevens that operates several locations in a city of 45,500 people with an additional 21,500 college students attending the local community college. A specific Italian concept has opened in the area and is offering their pizzas at a 21% lower price than Hungry Henry's pizzas, despite lower quality and quantity of ingredients. As a result, Dominic has identified a decrease in business, particularly among students.
What is the effectiveness of the pricing strategy used by the new competitor?
What recommendations would you give Dominic to compete with the new rival?
What are three techniques you recommend that restaurants can utilize to convey the value of their products in terms of quality, rather than just low cost, to potential customers?
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