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Home arrow Marketing Research News arrow Latest Market Research Findings arrow 100% Home Delivery/Takeaway in the US
100% Home Delivery/Takeaway in the US PDF Print E-mail
Written by Euromonitor   
03 Oct 2013

Brand enhancement was the trend for pizza companies in 2012. Whether as part of a continued rollout or an entirely new scheme, pizza companies took to the television airwaves to try to make their brand universal and enticing.

Domino’s Pizza, the overall brand leader, may have begun its image overhaul in 2010, but it continued its advertisements featuring CEO Patrick Doyle in which it explains how its new products and recipes remain an improvement on its old ones.

In 2012, it played up the reverse of an old adage, noting that the customer is not always right, particularly when it came to modifying its new artisanal pizza recipes. By showing television viewers that it would not remove ingredients from these more premium offerings, the brand showed commitment and confidence in the quality of its new recipes. Little Caesar’s Pizza, a chain known for its ready-to-eat, low-cost pizzas began its new national advertising campaign in 2012 as well. The chain revived its well-known “Pizza! Pizza!” tagline which was popularised in the previous decade. It focused its new television and other media advertisements on its low US$5 price point in an effort to convey value to a country full of consumers still reeling from the recession.

The second largest brand, Papa John’s, continued its television advertisements with perennial sports favourite Peyton Manning and free give-aways of two million pizzas. Whether it was quality concerns, value propositions, or good traditional celebrity endorsements, companies looked to the television in 2012 to elevate their brands.

Competitive Landscape

100% home delivery/takeaway in the US continued to be closely contested by four major brands in 2012, namely Domino’s Pizza, Papa John’s, Pizza Hut, and Little Caesar’s Pizza. Combined they accounted for a retail value sales share of 43% in 2012. Domino’s Pizza maintained is position at the top, accounting for 17% value share with US$3.2 billion and 15% of the outlets with 4,540 locations in 2012.

Prospects

On the whole, 100% home delivery/takeaway in the US is predicted to grow by a 3% constant value CAGR over the forecast period to achieve US$21 billion in foodservice value sales in 2017. The addition of new items like pan pizza, gluten-free pizza, artisanal pizza, and various new appetisers in outlets like Domino’s Pizza are likely to be imitated by competitors, who can charge more for these items as Domino’s does. The presence of these items in concordance with a moderate economic recovery where consumers can afford these marginally more premium items and add-ons bodes well for the category, with transactions predicted to grow by 7% in volume terms throughout the forecast period. The formulation of smaller, more efficient venues that would fit better within major metropolitan areas, like the Pizza Hut Deco Lites, should drive outlet growth as well, a figure which is expected to rise 8% in overall volume terms over the forecast period.

Republished with permission from Euromonitor Market Research Blog , originally posted on
(September 2013)

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Last Updated ( 03 Oct 2013 )
 
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