PAPA JOHNS INTERNATIONAL, INC.

: ITS
STRATEGY IN THE PIZZA RESTAURANT
INDUSTRY
OLEH :
OVERVIEW PERUSAHAAN
CEO: JOHN SCHNATTER (15 APR 2011 NOW)
KANTOR PUSAT: LOUISVILLE, KENTUCKY, AMERIKA
PENDIRI: JOHN SCHNATTER
DIDIRIKAN: 2 OKTOBER 1984, JEFFERSONVILLE, INDIANA, AMERIKA

PAPA JOHN HISTORY
1985 - JOHN SCHNATTER OPENED THE FIRST PAPA JOHN. GENERATE US$500,000,- REVENUE & OPEN 8 STORE

1986 - SOLD ITS FIRST FRANCHISE

1992 - REVENUE CLOSED TO US$ 50 MILLION
1993 - INITIALPUBLIC OFFERING ON JUNE 8, 1993
1998 - INTERNAL EXPANSION BEGAN WITH OPENING UNITS IN MEXICO & PUERTO RICO. ACQUIRED PERFECT
PIZZA IN UK 1 YEAR LATER

1998 2001 - CONTINUOUS GROWTH UNABATED

2001 - INTRODUCE ONLINE ORDER PIZZA THE 1STIN PIZZA INDUSTRY.
2006 - BEGUN INTRODUCING DESSERT PIZZA PAPA SWEETREATS. FOLLOWED BY CHOCO PASTRY DELIGHT 2
YEARS LATER

2001-2007 - ONLINE SALES GROW EXPONENTIALLY BY 50% A YEAR. REACHED US$ 400 MILLION IN 2007
INDUSTRY ENVIRONTMENT
93% AMERICANS ATE PIZZA AT LEAST ONCE A MONTH
COMPETITORS :
PIZZA HUT : DINE IN AND DELIVERY
DOMINOS : DELIVERY AND CARRY OUT, SIMPLER MENU BUT EXPANDED IN RECENT YEARS
LITTLE CAESARS : TAKEOUT : LIMITED MENU TO FOCUS ON CUTTING COST
CUSTOMERS
AGE GROUP : 25-44 (46.3%) 45-64 (22.8%) UNDER 25 (16.2%) OVER 64 (14.7%)
HEALTH FOOD ISSUE AND PAYING MORE ATTENTION TO NUTRITIONAL CONTENT
EKSTERNAL
MACRO-ENVIRONTMENT:
ECONOMIC CONDITION : WHEN ECHONOMY IS DOWN. CUSTOMER PREFER TO TAKE-OUT OR
DELIVERY AND MAYBE CHOOSE FROZEN PIZZA
SOCIOCULTURAL FORCES : HEALTH CONCERN
TECHNOLOGICAL FACTORS : ONLINE ORDERING , SOCIAL MEDIA, TEXTS, EMAILS
EKSTERNAL
FIVE FORCES:
THREAT OF NEW ENTRANTS - LOW : RELATIVLY HIGH FIXED COST AND CAPITAL
THREAT OF RIVALRY - HIGH : PIZZA INDUSTRY ALREADY MATURE AND MANY COMPETING FIRMS
AT SAME SIZE (PIZZA HUT, DOMINO, LITTLE CAESARS)
THREAT OF SUPPLIERS - HIGH : INGRIDIENTS PRICE VOLATILITY LIKE CHEESE AND MILK
THREAT OF BUYERS LOW : HIGH NUMBER OF BUYERS
THREAT OF SUBTITUTES HIGH : SO MANY VARIANTS PRODUCT TO SUBTITUTES PIZZA
INTERNAL
MISION:
PAPA JOHN INTERNATIONAL INC HAD BECOME THE WORLD THIRD-LARGEST PIZZA CHAIN BY FOCUSING
ON A HIGH-QUALITY PRODUCT MADE FROM THE BEST INGREDIENTS, RESPONSIVE CUSTOMER SERVICE
AND CONVENIENT ORDERING SYSTEMS, EXTENSIVE MARKETING CAMPAIGNS, EMPLOYEE TRAINING AND
DEVELOPMENT, AND FRANCHISING.
THE KEY ELEMENTS OF PAPA JOHN STRATEGY :
HIGH QUALITY MENU OFFERINGS.
COMMITMENT TO TEAM MEMBER TRAINING AND DEVELOPMENT.
EFFECTIVE MARKETING PROGRAM
STRONG FRANCHISE SYSTEM.
 HIGH QUALITY MENU OFFERING
THE COMPANY USED ONLY FRESH DOUGH, 100% REAL MOZZARELLA CHEESE, VINE-RIPENED TOMATOES
RATHER THAN TOMATO PASTE, 100% BEEF AND PORK IN ITS PIZZA PRODUCT

EXPANDED MENU OPTION : BREADSTICKS, CHICKEN POPPERS AND WINGS AND DESSERT.
THE QUALITY CONTROL CENTER SPECIFIED OPERATING PRACTICES AND RESTAURANT LAYOUT FOR
FRANCISEES TO FACILITATE EFFICIENT RESTAURANT OPERATIONS IN ALL LOCATION.
EMPLOYEE TRAINING AND DEVELOPMENT
THE COMPANY RECOGNIZED THAT EMPLOYEE PERFORMANCE AFFECTED THE PROFITABILITY OF COMPANY-
OWNED AND FRANCHISED UNITS AND PROVIDED REGULAR TRAINING AND DEVELOPMENT PROGRAMS TO
ITS TEAM MEMBERS

THE COMPANY CREATED OPPORTUNITIES FOR ADVANCEMENT FOR RESTAURANT PERSONNEL AND OFFERED
PERFORMANCE BASED- FINANCIAL INCENTIVES FOR EMPLOYEES AT ALL LEVEL
EFFECTIVE MARKETING PROGRAM

UNITED STATE CONSISTING OF NATIONAL TELEVISION, PRINT, AND SOCIAL MEDIA MARKETING AND
ADVERTISING.

INTERNATIONAL MARKETS, THE COMPANY FOCUSED ITS MARKETING EFFORT WITHIN SMALL RADIUS OF
AREAS WHERE PAPA JOHN RESTAURANTTA WERE LOCATED.

COMMUNITY SERVICE: JUNIOR ACHIEVEMENT (JA) WORLDWIDE AND PAPA JOHN FORMED A NATIONWIDE
PARTNERSHIP.
STRONG FRANCHISE SYSTEM

FRANCHISEES WERE CHARGED $25,000 FOR EACH UNIT, A ROYALTY FEE OF 5% OF NET SALES EACH MONTH,
PAY MARKETING FEE OF 7% OF MONTHLY SALES.
PIZZA HUT 6% ROYALTY AND DOMINO 5.5% ROYALTY
PERFORMANCE

Papa John's Revenue

PERFORMANCE

Papa John's Operating Income

Papa John's Revenue Distribution

Domestic Revenue International

SWOT PAPA JOHN
STRENGHTS WEAKNESS
ONE OF THE FASTER GROWING FRANCHISE IN THE LIMITED MENU OPTIONS
WORLD
NO DINE IN OPTION
FRESH, QUALITY INGREDIENTS
ONLINE ORDERING
OPERATING EFFICIENCY
SWOT PAPA JOHN
OPPORTUNITIES THREATS
MENU EXPANSION CONSUMER HEALTH-CONSCIOUS TREND
HEALTHIER OPTIONS ECHONOMY
TECHNOLOGY MAJOR COMPETITION FROM THE OTHERS IN THE
BIG FOUR
PROBLEMS

- Menu kurang variatif

- Isu makanan sehat
- Pertumbuhan revenue tidak seimbang
dengan pertumbuhan operating income
- Pertumbuhan revenue dari luar US lebih
tinggi dari pertumbuhan revenue dari US
 PAPA JOHNS APPLIES BROAD DIFFERENTIATION STRATEGY AS ITS BUSINESS-
LEVEL-STRATEGY

THEY IGNORE THE IDEA OF COMPETING IN PRICE

PAPA JOHNS THEIR FOCUS IS ON CUSTOMER EXPERIENCE WITH PIZZA MADE OUT OF
BETTER INGREDIENTS & PREPARED BETTER THUS THE MARKETING SLOGAN
CAME ABOUT (BETTER INGREDIENTS, BETTER PIZZA)

STRATEGY
 PAPA JOHNS APPLIES BROAD DIFFERENTIATION STRATEGY AS ITS
BUSINESS-LEVEL-STRATEGY
THEY IGNORE THE IDEA OF COMPETING IN PRICE
THEIR FOCUS IS ON CUSTOMER EXPERIENCE WITH PIZZA MADE OUT OF
BETTER INGREDIENTS & PREPARED BETTER THUS THE MARKETING
SLOGAN CAME ABOUT (BETTER INGREDIENTS, BETTER PIZZA)
RECOMMENDATION STRATEGY
DIFFERENTIATION OF PRODUCTS
CARANYA : DIFFERENTIATION OF MARKETING CAMPAIGN
1. CREATE PRODUCTS FEATURES AND PERFORMANCE ATTRIBUTES THAT APPEAL TO A WIDE RANGE OF BUYERS ->
MENAWARKAN MENU HEALTHY PIZZA
2. IMPROVE CUSTOMER SERVICE OR ADD EXTRA SERVICES -> CONTOH : MERESPON COMPLAIN PELANGGAN DENGAN CEPAT
3. INVEST IN PRODUCTION RELATED R&D ACTIVITIES -> FOCUSES ON CREATING -> CUSTOMIZED PIZZA DENGAN TEMA
TERTENTU, MISALNYA TEMA SUPERHERO ATAU COUPLE
4. STRIVE FOR INNOVATION AND TECHNOLOGICAL ADVANCES -> ONLINE ORDER, ANDROID APP (ADA DI GAMBAR ATAS)
RECOMMENDATION STRATEGY
5. PURSUE CONTINUOUS QUALITY IMPROVEMENT -> DENGAN QC YANG TEPAT
6. INCREASE MARKETING AND BRAND BUILDING ACTIVITIES -> CONTOH : EGIFTCARD (GAMBAR ADA DI ATAS)
7. SEEK OUT HIGH QUALITY INPUTS -> CONTOH : PARTNERSHIP
8. EMPHASIZE HUMAN RESOURCES MANAGEMENT ACTIVITIES THAT IMPROVE THE SKILLS, EXPERTISE, AND KNOWLEDGE OF
COMPANY PERSONNEL -> TRAINING PERSONNEL AND REWARD SYSTEM
CONCLUSION
PAPA JOHNS KEY VALUABLE ACTIVITIES ARE NOT CONSIDERED TO BE DISTINCTIVE OR SPECIAL THUS THE COMPANY DOES
NOT HAVE A SUSTAINABLE COMPETITIVE ADVANTAGE
DESPITE THE UNIQUENESS OF THE PRODUCTS ITSELF (BETTER INGREDIENTS, BETTER PIZZA), THE STARTEGY SEEMS TO BE
NOT TO COSTLY TO DUPLICATE
THE FIRM IMPLEMENT ITS STRATEGY BY DOING 2 MAJOR ACTIVITIES:
FOCUS ON PRODUCT QUALITY (BETTER INGREDIENTS, BETTER PIZZA)
MARKETING CAMPAIGN THROUGH ADVERTISING, PUBLICITY, ETC
EXPANDING THROUGH FRANCHISE AND EXPANDING INTERNATIONALLY
ITS INTERNATIONAL STRATEGY SEEMS NOT TO WORK OUT VERY WELL. THE NUMBER SHOWED THAT THE INTERNATIONAL
BUSINESS EXPERIENCED LOSS FOR SEVERAL CONSECUTIVE YEARS
TERIMA KASIH