Which marketing management concepts PI-O managers seem to follow? Justify your answer. 2. How does Pi-O expand its business portfolio? Which growth strategy do they use? Justify your answer. 3. What is the consumer segment targeted by PI-O?
Please read the following case and answer all the questions.
For more than 35 years, PI-O’s has been one of the nation’s go-to venues for children’s birthday parties and rainy afternoon outings. Operating under the slogan “Where a kid can be a kid,” there are more than 575 PI-O’s locations in 47 states in the USA and 10 foreign countries. Their goal is to provide a fun and safe environment for children aged under 12 years to play and families to create memories, but in 2015, PI-O has made improvements not for the children, but for the parents. “Your average kid who comes to PI-O wants to come 11 times a year; they come three times a year. The difference between that and the 11 times a year they want to come is the mom and dad veto,” said Tom Leverton, CEO of LEL Entertainment, Inc. “What we’ve been doing over the past couple of years especially is trying to address the mom and dad needs.” To that end, PI-O has expanded their menu to include items geared to more advanced culinary tastes, such as the Cali Alfredo pizza and the BBQ Chicken Pizza, Caesar and Club whole-wheat wraps, BBQ Chicken Ciabatta sandwiches. They also added dessert churros served with salted caramel and white chocolate icing. "Kids are at the heart of everything we do at PI-O 's, but kids don't come alone, and we want to make sure parents have just as enjoyable an experience as the kids do, especially when it comes to the food," said Leverton. The new adult menu has been promising for PI-O’s, but they are not stopping there. In 2016, they began testing additional menu items in select markets. The Orlando, Florida market has seen the addition of giant chocolate chip cookies to the menu. They are also testing a Honey Mustardbourbon wing sauce, multigrain Italian Chicken and Chicken Caesar flatbreads, and gluten-free pizza dough. In March 2016, PI-O has debuted a lunchtime all-you-can-eat buffet to address the issue of customer frequency. The buffet is $3.99 for children and $5.99 for adults. They are also testing half-priced games on Tuesday evenings in the Dallas market.
Questions:
- Which marketing management concepts PI-O managers seem to follow? Justify your answer.
2. How does Pi-O expand its business portfolio? Which growth strategy do they use? Justify your answer.
3. What is the consumer segment targeted by PI-O?
4. What target strategy is being used by PI-O? Explain your answer.
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