Strategic Marketing Plan Sbarro, Inc.: Established
Strategic Marketing Plan Sbarro, Inc.: Established
Strategic Marketing Plan Sbarro, Inc.: Established
1956
Marketing
Plan: Sbarro, Inc.
Shane Convery
Leighann Davis
Spencer Nelms
Alexandra Boelke
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BUS 3160
April 10, 2012
TABLE OF CONTENTS
INTRODUCTION..........................................................................................3
ORGANIZATION AND PRODUCT................................................................3
HISTORY...............................................................................................3
STRATEGIC PLAN AND FOCUS....................................................................4
MISSION STATEMENT.............................................................................4
GOALS AND OBJECTIVES........................................................................4
CORE COMPETENCIES/COMPETITIVE ADVANTAGE...................................4
SITUATIONAL ANALYSIS...........................................................................5
SWOT ANALYSIS....................................................................................5
INDUSTRY ANALYSIS...............................................................................6
COMPETITOR ANALYSIS..........................................................................6
COMPANY BRIEF...................................................................................7
CUSTOMER ANALYSIS............................................................................8
ENVIRONMENT ANALYSIS.......................................................................9
MARKET-PRODUCT FOCUS........................................................................9
MARKETING AND PRODUCT OBJECTIVES.................................................9
TARGET MARKET..................................................................................10
POINTS OF DIFFERENCE......................................................................10
POSITIONING.......................................................................................11
MARKETING PROGRAM STRATEGY AND TACTICS.....................................11
PRODUCT LINE....................................................................................11
PRODUCT LIFE CYCLES........................................................................12
PACKAGING........................................................................................13
PROMOTION.......................................................................................13
PLACE................................................................................................14
PRICING.............................................................................................14
FINANCIAL DATA AND PROJECTIONS.......................................................15
EXPENSE DISTRIBUTION......................................................................15
OPERATING EXPENSES........................................................................16
GROSS PROFIT PER UNIT SOLD............................................................17
EXPECTED MARKET SHARE..................................................................17
EXPECTED NET REVENUE....................................................................17
IMPLEMENTATION PLAN.........................................................................18
EVALUATION AND CONTROL..................................................................20
QUALITY CONTROL..............................................................................20
RISK ANALYSIS....................................................................................21
EVALUATION ANALYSIS.......................................................................21
Marketing Plan: Sbarro, Inc.
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1. Introduction
1.1 Organization and product
Sbarro is an Italian kitchen specializing in pizza, pasta, and salads. This quick service
restaurant aims to provide customers with top quality customer service and a distinctive
Italian experience. The organizations goal is to leave a lasting memory and a positive
perception with customers. Sbarro focuses on authentic Italian cuisine by producing
quality, fresh products daily.
1.2 History
Sbarro has not always been your local pizzeria. Sbarros history goes back to the streets
of Brooklyn, where they started out as a Salumeria or Italian grocery store. They quickly
became a neighborhood favorite for their exceptional fresh food, homemade pizza,
imported cheese, and sausages. One thing that the family focused on was providing the
highest standard of customer service from the day they opened. The success of their
original store led to more locations opening up across New York. This generated the idea
of opening up their first restaurant/pizzeria in 1967 in city of Brooklyn. Beings that they
were already a neighborhood favorite; the business took off and now has over 1,000
locations in more than 40 countries.
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3. Situational Analysis
3.1. SWOT Analysis
After creating and drawing conclusions from Sbarro, Inc.s SWOT analysis, the future
looks bright for the quick service Italian restaurant. Sbarro finds itself in one of the most
competitive markets out there and staying ahead of the game is not easy. However, they
possess many assets that can be used to attain some of the opportunities to become a
powerhouse in the industry once again. Innovative ideas can help Sbarro take advantage
of its unique locations and ward off potential threats. The following analysis depicts how
Sbarro can regain customer loyalty and be the first choice of consumers.
STRENGTHS
- Quality Italian food
- Appealing menu options
- Salads, Entrees, Desserts, etc.
- Sit-down environment
- A family tradition
- Fresh ingredients
WEAKNESSES
- Lack of location variety
- No delivery available
- Not everyone likes Italian food
- Food preparation time
- Limited innovation of menu
OPPORTUNITIES
- High profit margins
- Branch out to new locations
- Recently rid itself of debts
- Frequent traveler discounts
- Mall employee discounts
THREATS
- Competitors that deliver
- Ordering online from competition
- Rising raw material prices
- Lower prices/greater discounts of
competitors
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include fast service, pizza concentrated restaurants like Pizza Hut, Papa Johns, and
Dominos. These three businesses are clearly the leaders in the pizza industry and with
Sbarros main seller being pizza; they must rise to the occasion. Sbarro, Inc. must take
these competitors into consideration along with their usual mall and airport competition.
Sbarros goals are not to beat out these pizza delivery powerhouses, but a lot can be
learned from these competitors and applied to become more appealing than other eating
choices at the mall or airport.
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4. Market-product Focus
4.1. Market and product objectives
Sbarros market consists of individuals who attend malls and are traveling through
airports. This is a great niche; however, to expand its customer base and revenues, they
must reach out to consumers who do not find themselves in these locations often. This
will be done with new innovative products and targeted marketing tactics. Sbarro is
hoping for a 10%-15% growth in revenues over the next 3 years coming off their recent
bankruptcy. This is very doable if they are targeting the right groups and if the new
management team stays true to the Sbarro family tradition of fresh Italian cooking.
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along with their pizza. This separates them from other mall fast-food restaurants and
pizza delivery joints that only offer pizza related products. The fresh Italian cooking
experience you receive at Sbarro is unlike any other. Another unique selling point is their
worldwide brand recognition. Sbarro now has over 1000 locations around the world and
restaurants in 40 different countries.
4.4. Positioning
More modern marketing techniques will set Sbarro on an accelerated path back to the
position theyd like to be; a financially sound quick service Italian restaurant that people
rave about. By applying some of the new innovative marketing techniques used by other
pizza focused competition, Sbarro can become the go-to spot in every mall and airport.
The quick service Italian restaurant market is always growing and expanding and Sbarro
will be focusing all its efforts to rebound from its recent bankruptcy and be a industry
trend setter yet again.
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chicken parmigiana, chicken francese, sausage, meatballs, as well as many more specialty
entrees.
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5.3 Packaging
Sbarro has received multiple awards for their packaging. Under the former president,
Anthony Missano, for example, Sbarro was awarded First Place in the Foodservice
Packaging Awards beverage packaging category in 2003. This success was achieved due
to the innovative CD-in-a-lid marketing initiative. Their sturdy to-go packaging has been
a plus as well. Food and beverages are being packaged under request for take-out food
and for left-overs that want to be taken home.
5.4 Promotion
Sbarro frequently offers promotions. A very popular example is the
PizzAchievers Promotion that rewards students for good grades. For every A and B an
elementary level student scores they were awarded a free slice of cheese or pepperoni
pizza and a free soda. Additionally, there are promo codes going around the internet that
people easily can print out and bring to most Sbarro restaurants.
Television is a very popular way of advertising, and Sbarro needs to take more
advantage of it. Since rival companies such as Dominos and Papa Johns frequently
appear on TV, Sbarro will have to catch up with convincing TV ads. These must include
the special taste of Sbarros cuisine, as well as its unique customer service. In order to
widen the spectrum of targeted customers, Sbarro, Inc. needs to begin promoting to older
generations. While the PizzAchievers promotions bring in kids with their parents, the 3rd
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generation needs to be brought into the picture. This would happen by promoting single
slices or pizzas, as well as our multiple sides such as salad and bread sticks.
5.5 Place
Sbarro has multiple franchises placed all around the United States. Most of these
restaurants can be found along the east coast north to south, as well as on the west coast.
However, they are scattered all around the country. In order to expand, Sbarro should
invest in more franchises in major cities such as Miami, New York, Las Vegas, Los
Angeles, etc. For example, there are around 320 McDonalds franchises in New York
alone, but there are under 100 Sbarro restaurants. Everyone loves the Italian cuisine, and
even if one does not necessarily adore Italian food, they will find something they like on
the menu. In promoting this fact, Sbarro will get more people through their doors.
5.6 Pricing
Rising food costs make it tough to plan the pricing for any company. Since people react
negatively to price changes in menus, franchises need to make smart decisions. This is
where Sbarro needs to make a difference. Affordable, but taste-intense cuisine for the
middle class family is what they need to stand by. Sbarro turned to Affinnova, a company
that helps other companies with consumer-product market research. Together, they
optimized Sbarros menu pricing. To reach the perfect pricing, six price variations across
45 menu items were tested. The guests reactions were tracked as price increased.
Affinnova also tracked how individual guests switched from item to item when they were
faced with changes of the pricing. Now, prices seem very reasonable and are in the same
Marketing Plan: Sbarro, Inc.
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range as its competitors. In order to become more popular, Sbarro could lower their prizes
even more. The expected revenue might be lower at first, but in the long run people will
pick Sbarro over any other company.
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parties etc. Dishes and serving pieces count as opening inventory. In order to keep
these costs low, we serve our meals on paper plates and with plastic spoons, knives
and forks. Also, non-perishable and perishable foods such as the pasta, salt and
pepper, meats etc. count towards this cost.
Training Expenses
In order to offer the best service compared to our rival franchises, we need to present
ourselves with great customer service. This is why we put a lot of money in our
training expenses. Treating out client like a king is worth between $1,500-$3,000.
Start-up Advertising Fund
With the intention of inviting more and more Italian cuisine lover to our restaurant,
we need good advertising. Our initial funds for this would be $50,000-100,000,
although they would rise eventually.
Year 1
Year 2
Year 3
Year 4
Staff
$400,000
$400,000
$400,000
$400,000
Utilities
$200,000
$200,000
$200,000
$200,000
Marketing
$100,000
$70,000
$60,000
$50,000
Total
$700,000
$670,000
$660,000
$650,000
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7. Implementation Plan
Even though Sbarro focuses primarily on attracting customers from high foot
traffic locations, promotion and advertising is still necessary to not fall behind
competitors relentless attempts to steal market share. Restaurants now are taking
advantage of the increasingly popular media usage as a tool to advertise and promote
their brand, by releasing coupons and special promotional deals on their websites or on
social media websites. The first phase that will be implemented in Sbarros restructure is
the complete renovation of Sbarros website. The current website is user-friendly and
easy to navigate, but it lacks the more recent expectations of our diverse, fast-paced and
value-desiring society, such as promotional coupon codes on the website, an option to
sign up for promotional emails, or offering the website in Spanish. Implementing these
changes will be the first of many necessary steps.
Another crucial tool for advertisement and promotion is social media websites
such as Facebook and Twitter, where coupons and promotional information constantly
being sought after from consumers looking for a deal. By offering promotions and
coupon codes on our Facebook or Twitter, Sbarro can reach consumers that have the
potential to be repeat sales. These customers, after coming to know that Sbarro constantly
offers, for example, a new deal per week in every mall or airport, may check Sbarros
Facebook for the weeks promotion before looking to seek out a different restaurant. If
necessary, additional employees will be hired to take on the role of effectively and
efficiently maintaining these social media forms.
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Food Quality Sbarro is continuously seeking out only the highest quality
ingredients for the Italian dishes. Only the highest quality ingredients are worthy
enough to go into the process of making these Italian dishes and only the highest
quality ingredients are worthy enough for the customers.
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An evaluation of our promotional activity will take place to see which brings
repeat sales, which encourages maximum purchases, which gains customer favor, etc.
Adjustments to additional promotions will be made accordingly along with continuously
trying new promotions. The budget will be strictly evaluated on a constant basis as to
avoid indebtedness. Employees will also be evaluated to see when additional employee
training should be implemented.
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REFERENCES
Barron, Jim. "Sbarro Names Dynamic, New Management Team to Lead Company's
Growth Initiative." Sbarro. 31 Jan. 2012. Web. 12 Apr. 2012.
<http://sbarro.com/news/news.php?id=58>.
DealBook. "Sbarro Files for Bankruptcy." Dealbook. New York Times, 04 Apr. 2011.
Web. 11 Apr. 2012. <http://dealbook.nytimes.com/2011/04/04/sbarro-files-forbankruptcy/>.
Phillips, Cindy. "Checklist for Restaurant Quality Control." EHow. Demand Media, 19
Dec. 2010. Web. 14 Apr. 2012. <http://www.ehow.com/list_7664753_checklistrestaurant-quality-control.html>.
Restaurant Risk Management. "Risk Management Portal for Restaurants." Restaurant Risk
Management. National Restaurant Solutions, Inc. Web. 14 Apr. 2012.
<http://www.restaurantriskmanagement.com/content/public/toc.php>.
World Franchise Associates. "Sbarro Multi-Unite Franchise Opportunity." World Franchise
Centre. World Franchise Associates. Web. 14 Apr. 2012.
<http://www.worldfranchisecentre.com/p-detail.php?bid=111>.
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APPENDICES
Appendix 1 -- Product Life Cycles
Pizza
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
Salads
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
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Pasta
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
Entrees
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Dessert
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
Drinks
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