Question

The year is 1997, California Pizza Kitchen is thinking to launch a new brand of frozen pizza. You are the Brand Manager for CPK.

Your task: develop a one-page executive summary to G.J. Hart, CEO persuading him that the company should launch this product

What is CPK's key POD?

What is your recommended S-T-P?

Include a proper positioning statement (using Kotler's model) What are the company's calculated risks?

WHY should the company pursue this endeavor?

Include an introduction, and summary conclusion

Answer 1

Executive Summary for CPK's frozen Pizza Brand

The ready to eat market has always been a lucrative business with a lot of loyal customers throughout the year. Off late there has been increasing demand for high quality, nutrition rich and fresh ingredients based products from the market. People toady lead a very high paced life, where not many of them get time to cook proper meals, which has given rise to the frozen foods market. This led me to think that we can enter the market and fulfill the existing demands for better product quality and use of premium ingredients.

Point of Differentiation

A firm's strength is mostly based on two critical factors, a cost advantage with respect to its competitors or a differentiation in its offerings which sets it apart from the competition. California Pizza Kitchen differentiates itself by maintaining a premium quality by using quality ingredients, having an uncommon menu, a range of extra services and through innovation. This provides patrons with a unique experience, which is beyond having just a quality dinner and is a culinary journey. This strategy falls under the subcategory of 'quality strategy', which sets CPK apart from its competition.

Segmentation-Targeting-Positioning

The frozen foods market is dominated by ready to eat frozen pizzas, which is a popular product in the market. Moreover, the fact that it is good in taste and is ready withing a couple of minutes makes it a favorite for the people. Most people opting for frozen foods are from the working class, middle income groups many of them are single. Typically these people would opt for a ready to eat option two times a week, to save on the money which would otherwise be spent on takeaway or food delivery. However, there is an emerging niche in this market which demands better quality, nutritional value and are willing to pay the premium price. This makes up for a ready market for CPK which is an opportunity to enter a new segment without having to develop additional capabilities. Developing a new product range to suit the needs of this emerging target market at the right price point would be a recipe for success.

Include a proper positioning statement (using Kotler's model) What are the company's calculated risks?

For ambitious individuals looking for a high quality, nutrition-rich meal coupled with an unforetold taste and premium experience. CPK's frozen range offers a wide variety of products to suit your mood and can be customised to suit all occasions. Its a constant pursuit to provide you with the positiveness and happiness you deserve.

WHY should the company pursue this endeavor?

Given the existing brand awareness and loyalty that CPK enjoys in the market, it can reap profits by positioning its products into the premium category for a ready audience. This serves as an opportunity for CPK to extend a new product line into a new emerging market where it can be the market leader and reap profits for a long time without having to bring in any major changes in its operations.