Digiorno Analysis

Christian Perez

Cassie Clayton

Toby Teakell

Robbie Hira

DiGiorno Analysis

Curiosity Communications

Christian

Industry Background

The frozen pizza industry is price driven and is also the fastest growing frozen food industry. Potential entrants to this industry are not likely due to three major factors including: moderate barriers, significant level of initial capital investment and well-entrenched position of the industry’s major players. Major players include DiGiorno, Red Baron, and Tombstone. The availability of substitutes is high because the industry is price driven. For example, Tostino’s Pizza Rolls provide a convenient product for a lower price. Other frozen foods provide a healthy alternative, and private brands of frozen pizza are more affordable than the industry leaders. There is a high buyer power as the price-sensitive customers have many options due to substitutes. Another substitute is delivery pizzas, which are made-to-order, unlike prepackaged brands that are frozen. Finally, because of substitutes are so high, there is a low supplier power (Mintel, 2011). DiGiorno Pizza must be knowledgeable of their customer needs, context of business, the company itself, collaborators, complimenters, and competitors in order to compete in this industry. In addition, Capitalizing on strengths and opportunities while limiting weaknesses and threats also play a major role for DiGiorno in maintaining their industry leader position.

Customer Needs

The qualities consumers desire when purchasing pizza are convenience, inexpensive price, and taste. There are multiple outlets for consumers to fulfill this need, whether it is dine-in, takeout, or delivery restaurants, or it could be one of the numerous options for frozen brand pizza which are able to be purchased at a grocery store. The basic need for customers varies based on their living situation. Many of the factors that drive a college student to purchase a frozen pizza differ from the...