|
|
|||
|
|||
The Pizza Company is the largest pizza brand in Thailand; it has opened more than 150 outlets there with claims of 70 percent market share. The company has also entered southeast Asia, the Middle East and China and believe that China is one of the most critical markets for future growth. The decision was made in 2004 to open their first unit in China in 2005 and now they have 10 locations there.
“The opportunity in China is huge and growing swiftly. Pizza has been proven to be a very attractive and appealing product to young Chinese consumers,” said Todd Mischke (American), CEO of Minor Food Group (China). “In big cities, pizza isn’t something only for special occasions anymore, it’s something that people consume very frequently. It’s not really considered Western food. The market for pizza has been changing and it’s becoming more accepted and a part of daily life. If you go to any pizza restaurant in Beijing, you can see young people, mum and dad, grandparents and kids, all eating pizza. The pizza market in China is fast becoming a big market and very appealing for international brands.”
Since they opened their first restaurant in Beijing in 2005, The Pizza Company’s popular pizza, friendly customer service and great dining atmosphere have made them a successful business. They created the cheese crust, sausage and cheese crust, and triple crust (stuffed with cheese, sausage and bacon) for their pizza. They also offer more than 20 different toppings on their menu. “Because the company is based in Thailand, the products were already designed to appeal to Asian tastes. We serve many of the same products as other brands: pizza, pasta, salad bar, appetizers, deserts and drinks. But, our key point of difference is our toppings. We have more toppings that are bigger and heavier. The flavors of toppings are also a little spicier and stronger. We have a history in Thailand of understanding what Asian consumers like and we bring all of that to the Chinese market,” Todd said.
The Pizza Company has their own cheese factory in Thailand and produces all of the cheese their company needs and distributes it to all of their stores in Asia.
The Pizza Company also offers free delivery to their customers, but most of store sales come from their dine-in business. “There are seven large pizza brands in Beijing and many small stores also. The location of the store is very important to us. Right now our primary target market is young people. Most of our customers live near the restaurants. The customer demographics are key for us and that’s a part of our strategy in finding locations. It is very important to get the right location. I think every brand will tell you that one of the key elements in success is the location,” Todd stressed. “After that you must have consistency with the product and quality service. One of the challenges in new markets is getting suppliers to provide you with products you need and consistency. When you get that established, the other critical key to success is great marketing to get people in the door.”
“TV advertising is very expensive here, so we focus on marketing around the store and in magazines. We also do fliers and we do inserts in the newspapers. We’ve done radio before, but it doesn’t truly drive people to the store, but rather serves as a tool to drive brand awareness. ” Todd said. The Pizza Company has also sponsored a talented young racing driver named James Grunwell in seven racing series of the Formula BMW Asia 2006.
“We are going to focus our resources in northern China and are considering expansion into secondary cities such as ShenYang and DaLian. Stage two will target Shanghai and focus on NanJing, Suzhou and the area around Shanghai. We will try to stay focused on how fast we develop and not spread ourselves too thin. That is a mistake that a lot of companies have made in that they grew too fast and couldn’t control their business. Our plan is to have 13 stores by the end of the year and continue to double each year and eventually have 250 stores in five years. Right now all of our stores in China are owned by the corporation, but we are definitely considering a franchise operation in the future.”
Todd offers some great advice to our friends that may be interested in entering the Chinese pizza market. “I really think that they need to think twice about entering this market if they don’t have a very, very strong commitment. However, if they can make it work, it is a great business to be in, but don’t come in unless you are serious because this is not for beginners. It’s a really challenging market. The opportunity is huge. Chinese people definitely like pizza, and it’s not a secret any more.
“The other small bit of advice I give to them is don’t think China is one market. Beijing’s pizza market is one type of market, Shanghai is another, and Guangzhou is something completely different. Everybody that goes in to Guangzhou is going to have a very tough time. They have to do their homework to choose where to go. They have to understand the people, what the competition is doing, the cost of real estate, etc. Do your homework and study before coming in, because if you don’t, it can be pretty tough.” However, if you do it right, the opportunities are absolutely unlimited.
To learn more about The Pizza Company, please visit www.pizza.co.th. If you would like to know more about the Chinese pizza market, contact Weihua Watson at weihua@pmq.com or visit our Chinese website (www.pmq.cn.) PMQ Magazine will set up an international pizza pavilion exhibit at FHC (Food and Hotel China) Shanghai 2006 on Nov 30-Dec 2; to find out the great opportunity of the Chinese pizza market and be a part of it, please call us at (662) 234-5481ext 128.