CI6410 Digital Business Study

Running head: DIGITAL BUSINESS
CI6410 DIGITAL BUSINESS
Online pitch and Crowdfunding Report
THE NAME OF THE BUSINESS: Peppeza House
WEBSITE LINK: https://sameer646949.wixsite.com/mysite
Peppeza House Report:
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Business button dropdown: SWOT, Market Analysis, Finance and Sales and
Marketing Strategy.

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Table of Contents
Pizza Shop / Pizza Delivery Services Business Overview..............................................................4
Product and Services........................................................................................................................4
Business Structure...........................................................................................................................5
Pizza Shop Business – SWOT Analysis..........................................................................................5
Pizza Delivery Service – MARKET ANALYSIS...........................................................................6
Industry Drivers and Trends............................................................................................................6
Market Trends................................................................................................................................11
Our Target Market.........................................................................................................................11
Our Competitive Advantage..........................................................................................................11
4.0 Pizza Shop With Delivery – SALES AND MARKETING STRATEGY...............................12
4.1 Sources of Income...................................................................................................................12
4.2 Sales Forecast..........................................................................................................................12
4.3 Publicity and Advertising Strategy..........................................................................................14
4.4 Our Pricing Strategy................................................................................................................14
4.5 Payment Options......................................................................................................................15
4.6 Start – Up Expenditure (Budget).............................................................................................15
Reference list:................................................................................................................................17

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Pizza Shop / Pizza Delivery Services Business Overview
Peppeza House will be established to position itself as pizza shop along with providing
delivery services to wide range of corporate and individual clients. The shop will be based in
Manchester, United Kindom. Organization is established in Pizza delivery business industry so
that they are favorably compete with their competitors that are already existing in industry.
Providing option of delivery service to customers would help in gaining competitive strength.
The corporate goal of Peppeza House is to be among top ten Pizza delivery house in Pizza chain
brand in Manchester. The plan of doing business is placed in a way that it would explore all the
available market in cities demand Pizza (Huang and Benyoucef 2013). A wide range of
distribution channel would be incorporated and business is situated in location that would help
business to seek and generate maximum profits.
Product and Services
Peppeza House intends to make wide range of Pizzas of all sizes and flavors. Core products of
this Pizza shop is Pizza of different sizes that will be available to customers at different prices.
Quick style service and full service restaurants style will be adopted by Peppeza House.
Objective of business is to create is to make profits from Pizza shop cum delivery industry and it
intends to perform all services that is remitted by laws in United Kingdom that would help in
achieving mission and aims of business. Some of products and services of business will be
catering, take out and providing delivery services.

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Business Structure
A business plan has been perfected to start Pizza business in Manchester. The Peppeza
House will be built by having business structure that will involve Chief executive officer, Shop
manager, Food technologists, admin and Human resource manager, Accountants, cashiers,
customer service executives, delivery person and cleaners. CEO is the head of business who have
the responsibility of taking all relevant business decisions. This will range from hiring,
recruiting, mission and vision implementation, signing deals and price fixation.
Pizza Shop Business – SWOT Analysis
Strength-
 One of the strength of business is providing customers with wide range of Pizzas to
customers with different flavor. This particular Pizza shop will also be appealing to
vegetarian customers. Demands of products during unusual times such as nights or in
need of emergency will be met by equipment and art facility.
 Another advantage of business is hiring of qualified expertise for capable of handling
business and customer requirements.
Weakness-
 The market of Pizza business is already saturated in areas such as Manchester and
existence of leading players in Pizza business could pose weakness to Peppeza House.
 One of weakness might be attributable to chosen location in United Kingdom.
Opportunities-

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 There exist unlimited opportunities for business such as Peppeza House. Many people
such as office goers and students have the habit of consuming cold drinks and Pizza on
daily basis that will make easy for Pizza shop to push their products.
 Opportunity also exist in terms of generating profits as increasing demand of continental
products in the location.
Threat-
 Peppeza House will be competing with many Pizza shop business already flourishing in
Manchester. This will make it difficult for pizza business in creating sustainability.
However, this can be overcome by framing appropriate strategies.
 Economic down turn and unfavorable policies of government poses another threat to
establishment of Peppeza House.
Pizza Delivery Service – MARKET ANALYSIS
Industry Drivers and Trends
Over the last five years, there has been considerable rise in Pizza shop and delivery industry.
Prevalence of this industry has combated eating and change in taste and preferences pattern of
customers and lackluster spending on part of customers. There exist external competition and
growing health consciousness has worked against progress of Pizza industry. Many players and
existing Pizza shop have performed well in the industry despite the challenges faced.
Industry Driver
Industry Revenue

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7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
-3
-2
-1
0
1
2
3
4
5
Industry Revenue
% change
Year
Percentage
change
Figure: Percentage changes in the Revenue of the Industry
As is evident from the above figure, there has been significant dynamics in the revenue
statistics of the concerned pizza industry over the years. The revenue has seen both positive as
well as negative fluctuations, with the fluctuations being more prominent within seventh to ninth
years. The fluctuations in the changes in industry revenue, however, shows dampening effect
post that period. There was a sharp increase in the revenue in 2007, followed by a similar
decrease in 2009. Revenue increased considerably in 2010, before the percentage falling to
almost 0 in 2013. From 2016 however, the revenue in the industry is seen to increase with
moderate fluctuations and is expected to increase even more in 2020-2021.
Consumer Spending

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8 9 10 11 12 13 14 15 16 17 18 19 20 21
-2
-1
0
1
2
3
4
Consumer Spending
%change
Year
Consumer
Spending
Figure: Percentage change in consumer spending over the years
The consumer spending in the concerned pizza industry is seen to experience negative
growth in 2008-2009, with the percentage change dropping down to almost -2%. However, the
percentage change in the spending started increasing considerably post 2010 and barring several
moderate positive and negative fluctuations, which are non-dramatic in nature; the trend has been
more or less upwards till 2017. However, the consumer spending is projected to decrease in the
coming period, the negative trend being expected to be moderate.
Healthy Eating Index

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6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
62
63
64
65
66
67
68
69
70
Healthy Eating Index
%change
Year
Healthy Eating
Index
Figure: Percentage change in Healthy Eating Index
As can be seen from the above figure, the Healthy Eating Index shows several
fluctuations, both negative as well as positive. However, the fluctuations have visibly moderate,
with prominent negative trend in the percentage change till 2008, followed by a gradually
positive trait till 2010. The trend shows another dropping down in 2013. However, post 2013, the
index shows positive trend which continued till the current period. The trend in the Healthy
Eating Index is expected to remain the same till 2019 after which it may fall moderately.
Market Shares of the different pizza chains in the USA (2014)

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Pizza Hut
Domino's Pizza
Little Caesars
Papa John's
Papa Murphy's Pizza
Godfather's Pizza
Hungry Howie's Pizza
Chuck E. Cheese's
Marco's Pizza
Round Table Pizza
CiCi's Pizza
Sbarro
Jet's Pizza
Pizza Ranch
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Leading Pizza Chains in USA (2014)
Figure: Leading Pizza Chains in the USA by the number of units (2014)
From the above figure, it is clearly evident that in spite of the presence of many supply
side players in the pizza industry of the USA, the Big Four supply side players, comprising of
Pizza Hut, Domino’s Pizza, Little Caesars and Papa John’s enjoy huge market share individually
as well as collectively in the concerned industry.
Pizza Hut Dominos Little Caesars Papa Johns
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Ad dollars spent per second
Company
Advertising dollars

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Figure: Ad dollars spent per second by the Big Four Pizza Companies
Market Trends
Over the last five years, there has been considerable rise in Pizza shop and delivery
industry. Prevalence of this industry has combated eating and change in taste and preferences
pattern of customers and lackluster spending on part of customers. There exist external
competition and growing health consciousness has worked against progress of Pizza industry.
Many players and existing Pizza shop have performed well in the industry despite the challenges
faced.
Our Target Market
The Pizza business usually caters to wide range of customers and it is not viable to limit
the target market to certain group of people or customers. It is as per preference of people to
have Pizzas who like to try it. For developing target market, Peppeza House has conducted
market research for targeting their Pizzas to specific group of people. The target market of
Peppeza House would comprise of children, household, government officials, corporate
executives, college students, tourists, everyone residing near the business location and business
people.
Our Competitive Advantage
The aim of Peppeza House is to build business that will grow and established itself within
six years down the line. Competitive strategies are designed in such a way that it will help
business to compete favorably with its competitors. Competitive advantage of business will be in
terms of providing customers with varied size of Pizza and of different flavor. There are

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approximately 2,000 pizza shops in UK and nearly thousands of individuals consume pizzas on
average per day. Another advantage lies in its attractiveness and appealing to vegetarian
customers. Equipment and art facilities are another advantage that will business in meeting
excess demand during unusual time of operations. Management team of Peppeza House is quite
strong as people will be hired from qualified professional backgrounds (Turban et al. 2015). It
will be ensured by organization that they are able to expand and open their outlets in other cities
of United Kingdom so that it is well accepted and communicated nationally.
4.0 Pizza Shop With Delivery – SALES AND MARKETING STRATEGY
4.1 Sources of Income
The objective of starting Peppeza House is to generate maximum profits and to provide
customers with variety of Pizzas in cities of United Kingdom. It will be ensured by Pizza shop
that it is capable to sell Pizzas and cold drinks to its target customers and other group of people
who like eating Pizzas. Income will be generated by Peppeza House by selling its products and
offering services to wide range of customers. Profits will be generated by selling pizzas and cold
drinks to customers and providing then with services (Abdi 2015). Its core services are
delivering pizzas to customers by ensuring delivery charges. In addition to this, other services are
catering and take out services.
4.2 Sales Forecast
Forecasting of sales by Peppeza House will be based on gathering of data during market
survey feasibility studies and some of the assumptions and pre conditions that have been made

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before the staring of business. The sales projection of Peppeza House is being done is depicted in
table below.
The profit and loss statement of the three years sales can b further listed in the table below. Also,
as per the table, the net profit margin has shown an increasing trend with return on investment of
82.94%.

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4.3 Publicity and Advertising Strategy
The advertising and publicity strategy of Peppeza House is not only intended to selling of
its products and increasing its sales, it also intends to communicate its brand effectively. Some of
platform for advertising the products involve:
 Advertising about opening of Pizza shop on electronic media platform, newspaper and
magazines
 Leveraging on internet and social median platform such as Twitter, Facebook and
Instagram for promoting brand
 Bill board installation on strategic positions around major areas of Manchester in United
Kingdom
 Distributing of handbills and fliers in targeted areas
 Customization of distribution vans and cars and staff members are wearing customized
clothes
4.4 Our Pricing Strategy
For pricing of its product, Peppeza House will not employ any hard and fast rules.
Packaging and sizes of Pizzas provided to customers will form the basis of pricing of products.
When it comes to pricing of products, it is not required to business to formulate strategies as it is
more or less similar to products price in confectioners. Pricing standard of Peppeza House will
be established in such a way that it is appealing to industry. However, pricing of Pizza will be
comparatively lower as compared to all other leading producers of Pizza in United Kingdom.
This is so because lower price in the initial year of establishment will help in gaining market
shares. Price of products will increase and will be in par with other leading Pizza producer and
sellers when it has captured substantial share of market (Evans 2015). Business profits have been

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designed in such a way that it will enable them to run on low profit margin initially for
encouraging people to buy the brand.
4.5 Payment Options
Peppeza House is fully aware of the fact that different people have different payment
options that they prefer to have and they opt for it according to their suitability. The payment
policy of Pizza shop is inclusive and different outlets will have different options for making
payment. Such options are listed below:
 Payment by cash
 Payment via credit card and debit cards
 Payment via online transfer of money
 Payment via online bank transfer
4.6 Start – Up Expenditure (Budget)
Particulars Amount (in £)
Start-up Funding:
Start-up expenses to fund 50,000
Start-up assets to fund 50,000
Total funding required 100,000
Assets:
Non-cash assets from start-up
45,00
0
Cash requirements from start-up 55,000
Total assets 100,000

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Capital:
Co-owner 50,000
Co-owner 50,000
Other -
Total planned investment 100,000

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Reference list:
Abdi, M.D., 2015. E-COMMERCE BUSINESS PLAN.
Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.
Chen, J.E., Pan, S.L. and Ouyang, T.H., 2014. Routine reconfiguration in traditional
companies’e-commerce strategy implementation: A trajectory perspective. Information &
Management, 51(2), pp.270-282.
Da Costa, E., 2016. Global e-commerce strategies for small businesses. Mit Press.
Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to
start up or grow your business. Pearson UK.
Huang, Z. and Benyoucef, M., 2013. From e-commerce to social commerce: A close look at
design features. Electronic Commerce Research and Applications, 12(4), pp.246-259.
McKeever, M., 2016. How to write a business plan. Nolo.
Strauss, J., 2016. E-marketing. Routledge.
Turban, E., Outland, J., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2017. Electronic
Commerce 2018: A Managerial and Social Networks Perspective. Springer.
Turban, E., Whiteside, J., King, D. and Outland, J., 2017. Business-to-Business E-Commerce.
In Introduction to Electronic Commerce and Social Commerce (pp. 101-135). Springer
International Publishing.

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