Homework in Retail

Management and E-tailing

Submitted by Clarice Langit

BSBA MM 1-3D
August 24, 2019
 Pizza Delite is actually just one of the products

where a franchisee can chose from when he or she wants

to avail a franchise from Fab Suffrage Inc. (franchisor).

Pizza Delite Sta. Mesa does not only have this set of

product. It has the entire snack and café bar concept of the

business named Fab Café.

PRICE

Pizza Delite offers its products at affordable prices. The price ranges from ₱ 159

to ₱ 190. If you are to compare these to the prices of other pizza food cart franchises in

the Philippines, you can say that it is cheaper when talking about the price of one whole

pizza serving. Pizza Roulette’s prices ranges from ₱ 115 to ₱ 210 while El Bonito’s given

price is ₱ 230 per box, and 3M Pizza prices start from ₱ 175 to ₱ 270. However, when

asked to the franchisee if these prices are the same with the prices given in other Pizza

Delite branches, she explained that prices differ

from one branch to another, depending on the mark

up added by the franchisee in relation to the

expenses they have, for instance, rent expense. As

shown in Figure No. 2, it can be observed that

Pizza Delite Sta. Mesa uses the pricing strategy

called Charm Pricing wherein the price’s left digit

is reduced by one. It involves using pricing that

ends in “9” and “99” which attracts more

customers as claimed by studies. Despite the fact that the price is affordable, I, together
with my fellow evaluators, find that the price is unreasonable if you are to evaluate based

on the food due to some factors to be discussed in the product evaluation section of this

paper.

PLACE

The franchisee has

chosen a good place for the

business. The store is

located in 4408 unit 8,

Newton Plaza, Old Sta.

Mesa, Manila. This is near

several schools like

Polytechnic University of

the Philippines (PUP),

Ironlink Computer Learning Center, St. Therese Academy, AMA Computer College, etc.

It is perfect to reach out the population which the

franchisee wanted to be the primary target

market_ the students; therefore it is convenient. It

also has a high visibility because it can easily be

found since it is grouped with other food stores.

So, when people go to where it is located, seeing

that they have choices, Pizza Delite would have

the chance to be noticed and visited.

 It is also good that the store is designed in such a way that potential customers can

easily see what it is like inside because of the transparent glass window instead of a wall,

attracting them and making them interested to dine in (see Figure No. 4).

The interior designs of the store and the atmosphere are very approving. It feels so

relaxing and comfortable. I loved that it is air conditioned. The colors of the decorations,

fixtures, wall papers are complementing each other. The store is very neat and organized.

The scattered aroma of the coffee that they also offer which filled the entire place, the

right balance of light and the playing music just created a very pleasing atmosphere. It is

a perfect spot too to take photos for Instagram!

PRODUCT

Since we could not evaluate all the products they have in the menu, we decided to

order one flavor of pizza which was Hawaiian pizza. Desolately and personally, I was not

satisfied with it. Yes, it was delicious, but for me, food is not just about its ordinarily

delicious taste, but it should be highly delightful or pleasing, not only to the taste buds

but also to the inner dimension of the customers. I mean it should somehow create an

impact. Specifically, it should have unique

or distinguishing taste that will make it

remarkable to the customers that may lead to

the extent of coming back to taste it again

and again. The crust was very thick and the

toppings were very few. You can actually

count them effortlessly. In other words, it

was not balanced, affecting how it tastes. In

our case, we were not even sure if it was really a Hawaiian pizza. Nevertheless, it was not

that totally bad. I like that the crust was a little bit crunchy, and it had no dark side or

over cooked areas unlike other pizzas. What I appreciate about their set of products was

that there were a lot of variations that can suit the needs of the consumer. From the

vegetarian to light choices to meat lovers, there is one available flavor for everyone. The

plating was also nice. It is simple, yet presentable. (See Figure No.5)

PROMOTION

Pizza Delite do not use much of promotional materials such as flyers, posters, or

tarpaulins. The franchisee had explained that it is because she prefers the word of mouth

marketing strategy wherein satisfied customers are

the ones to make oral or written recommendation

of a good or services. This may be because it is

considered as the most effective form of

promotion. Furthermore, she also thinks that it is a way of reducing expenses for

promotional materials that cannot bring sales assurance.

“You will give them flyers, and they may just throw them.”- Franchisee

When asked if they have any social media account, she said that they have a Facebook

Page (See Figure No.6). I visited it to study their way of promotion through this. As I

examined it, I found that it is not often updated. There are very few posts, thus not being

so interesting to people. It is also observable that it has very few followers and likes (See

Figure No. 7). Nonetheless, it is good that the word of mouth is evident because some

customers express their satisfaction in the page, but I think this will not last long if the

page will not be updated soon. It may die because it reaches only few people.

GENERALIZATION AND RECOMMENDATION

If I were to rate the four P’s, I will give the Price- 8 out of ten Place- 9 out of ten

Product- 6 out of 10 and Promotion- 6 out of ten. The price is affordable, especially if

compared to other pizza food cart franchises, however it is unreasonable in relation to the

quality of the product. The place is perfect because it is convenient, visible, in a right

community, comfortable, creatively designed and conceptualized, and reaches the target

market. The product is not that satisfying due to the lack of ingredients and remarkable

impact, yet it is fine. The word of mouth marketing is a brilliant way of promotion but it

is not enough to encourage sales increase.

It is a good thing that they expose their certificates and permits. As a customer, it

helps me feel safe and assured. They display their Fire Safety Inspection Certificate, DTI

permit, Sanitary Permit, BIR, etc. The service is excellent since the employees are so
effective. They serve fast. They are neat and approachable. I do not have anything bad to

say about the place. It was very good. There are even signs like “No Smoking”.

In my opinion, they should add the price of drinks immediately to the price of the

pizza because it is automatic to the customers who are eating to have the need of drinks

to accompany their food. Students, especially barkadas, love food set promos which

includes all that they need. They also should add to toppings to the pizzas for them to

look more appealing and to be more detectable. For their promotion, I recommend that

they update their posts every day to connect with more potential customers especially that

their target market are the students or the youth who are likely to be spending more of

their time in social media.