Tsunami Pizza
Strategy and Implementation Summary
Tsunami Pizza will use advertising to promote the business. We will use the local westside flyer to advertise. In addition, we will hire people to hold signs at the corner of 11th and Tyler. We will also use door handle flyer promotion throughout the westside neighborhoods.
Our most important promotion will done in conjunction with Magic Video. We will offer a two for price of one video coupon with each purchase at Tsunami Pizza that can be used at Magic Video. Magic Video will offer its customers a $2 off coupon that can be used at Tsunami Pizza.
5.1 Competitive Edge
Tsunami Pizza’s competitive edge is:
- Location: Tsunami Pizza is located in the heart of the westside area on the corners of 11th and Tyler. These two streets are the area’s busiest. The closest pizza restaurant to the westside area is a fifteen minute drive. Tsunami Pizza can deliver in half the time of its competitors.
- Low Overhead/Lower Prices: Since Tsunami Pizza only delivers pizza, its prices don’t reflect overhead demands of a traditional pizza restaurant.
5.2 Sales Strategy
The sales strategy of Tsunami Pizza is simple. First, offer the customer a superior pizza at a low price. Second, make sure that pizza is delivered quickly. Third, the delivery people must work to create customer loyalty.
5.2.1 Sales Forecast
The following is the sales forecast for three years.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Pizza/Drinks | $162,500 | $178,000 | $195,000 |
| Catering Income | $14,000 | $18,000 | $24,000 |
| Other | $0 | $0 | $0 |
| Total Sales | $176,500 | $196,000 | $219,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Pizza/Drinks | $24,500 | $30,000 | $36,000 |
| Catering Income | $1,400 | $1,800 | $2,400 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $25,900 | $31,800 | $38,400 |
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