Strategic Analysis of Hell Pizza's Expansion into the Indian Market

This report provides a strategic management analysis of Hell Pizza's expansion plan into the Indian market. It begins with an executive summary and table of contents, followed by an introduction to strategic management and Hell Pizza's background. The core of the report comprises an in-depth analysis of both internal and external environments, utilizing SWOT and PESTEL analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. The report then delves into proposed marketing strategies, including target market identification, pricing strategies (penetration and price skimming), distribution systems, and competitor positioning. It highlights Hell Pizza's unique selling propositions and core competencies. The report continues with a discussion on developing a plan for the future, focusing on sustainable competitive advantages at top, middle, and lower management levels. Finally, the report concludes with references.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the student:
Name of the University:
Author Note:

1STRATEGIC MANAGEMENT
Executive summary
This assignment highlights the expansion plan of Hell pizza in the Indian market. The internal
and external factors that are important in the expansion of the market are determined by SWOT
and PESTEL analysis. The various marketing strategies that the company should take up, in
order to ensure successful expansion have been highlighted. The various strategies that the
various management levels need to take up, in order to ensure success in the expansion has also
been discussed.

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Table of Contents
Introduction......................................................................................................................................2
Analysis of Internal and external environment................................................................................2
SWOT Analysis...........................................................................................................................3
PESTEL Analysis........................................................................................................................4
Marketing strategy...........................................................................................................................7
Target market...............................................................................................................................8
Pricing strategy............................................................................................................................8
Distribution system......................................................................................................................9
Competitor positioning................................................................................................................9
Unique Idea..................................................................................................................................9
Core competencies.........................................................................................................................10
Quality........................................................................................................................................10
Product variety...........................................................................................................................10
Capturing more value chain.......................................................................................................11
Competencies of Hell’s Pizza in comparison to the competitors..................................................11
Development of plan for the future............................................................................................12
Strategies to develop sustainable competitive advantages............................................................13
Top level....................................................................................................................................13

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Middle level...............................................................................................................................14
Lower level................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
Strategic management is defined as the process that a company needs to undergo, in order
to achieve its business goals successfully. The strategic management includes the in-depth
analysis of the internal as well as the external environment of the business organization that
assists the company to develop their strategic plan for further expansion. This assignment
highlights the famous pizza chain of New Zealand, Hell Pizza and their expansion venture in the
Indian market (Eden & Ackermann, 2013). Hell pizza is a famous pizza chain of New Zealand
that began its business in 1996 ("Hell Pizza", 2017). Within a few years, the company expanded
to various countries such as UK, Australia, Canada as well as Korea. The company has targeted
to expand their food chain in Indian market as well (Gamble & Thompson, 2014). This
assignment highlights the marketing strategies that the company needs to adopt, in order to
ensure expansion in the Indian market. The target market, along with the pricing strategies that
the company should adopt has been shed light upon in this assignment. The core competencies,
as well as the quality and the product varieties that the company would offer is discussed.
Analysis of Internal and external environment
The internal and the external environment have a major role to play, in the strategic
management of a business organization. The internal environment highlights the factors that the
company has control. This includes the strengths, weaknesses, opportunities as well as the threats
(Hoffmann, 2014). The external environment of the company highlights the factors on which the
company has no control (Wheelen & Hunger, 2017). In order to analyse the internal
environment, the SWOT analysis has been carried out and for external environment analysis,
PESTEL analysis is done.

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SWOT Analysis
Strengths
 Good quality food
 The Gourmet pizza is provided by the
company is of high quality ("Hell
Pizza", 2017)
 It has a good receptive market in the
countries in which the company is
operational
 High demand for pizza among the
people of New Zealand, Australia and
UK (Gamble & Thompson, 2014)
 On-time delivery
Weakness
 It is a new brand, and might not be
accepted by the people
 Gourmet pizza is expensive, thus the
price of the products are high
 Lack of potential buyers (Hoffmann,
2014)
Opportunities
 Expansion in the Indian market
 New investors and shareholder market
 Increase in the popularity of pizza in
the Indian market ("Hell Pizza", 2017)
Threats
 High competition in the number of
pizza brands in India
 Religious oppositions might be faced
 Financial risk is a major threat in case
of overseas expansion
The strengths that are highlighted in the SWOT analysis includes the quality of the food
is high. Moreover, the market in which the Hell Pizza operates such as in New Zealand ,

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Australia and UK, the demand of pizza is high. Moreover, the company Hell Pizza is also
reputed for their on-time delivery of fresh pizza (Hoffmann, 2014). The weaknesses that has
been highlighted includes the lack of acceptance of the new brand in the Indian market. This is
because, the Indian market has various key players in the pizza market, such as Pizza hut,
Dominos, Papa Jones. Thus, a new brand, Hell pizza might take considerable time to establish
themselves in the Indian market (Eden & Ackermann, 2013). Moreover, the Gourmet pizza are
expensive and might be not as promptly accepted the people, as the pizza could become
unaffordable. Thus, the lack of the potential buyers is a major drawback for the Hell Pizza (Hill,
Jones & Schilling, 2014). The opportunities of expansion in the Indian market are a good
opportunity for Hell Pizza to expand their businesses successfully. Moreover, an inclination of
the Indians towards the consumption of pizza is also an opportunity for Hell Pizza (Gamble &
Thompson, 2014). However, the potential threats include high competition of the other pizza
brands in India. Hell Pizza might face the religious opposition of the Indians, thus resulting in a
potential threat to the company.
PESTEL Analysis
Political  Indian legislation is different from that
of the legislation of New Zealand, UK
and Australia ("Hell Pizza", 2017)
 The labour issue is a major issue in
India
 Market regulations
 The imposition of the goods and
service tax (GST) increases the cost of

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the pizzas
 The type of government regime, that is
Communist, dictatorship or democratic
has a major influence of the business of
Hell pizza (Hoffmann, 2014)
Economic  The economic stability is important for
the establishment of the business of
Hell pizza (Slack, 2015)
 The growing economy of India
facilities the growth of expensive
gourmet pizza
 The economic stability in the country
attracts more inventors
Social  The changes in the social life of the
Indians increases their demand for food
like pizza
 Moreover, with the growing economy,
the affordability of the Indians increase,
thus they are able to afford the
expensive gourmet pizza (Gamble &
Thompson, 2014)
Technological  The technological development and
advancements in India facilitates the
development of high quality pizza,

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along with incorporation of high
technology
 With the technological development,
the dough could be prepared
successfully, using machines, thus
ensuring that the quality of the pizza
are enhanced with lesser efforts
(Hoffmann, 2014)
Environmental  The environmental sustainability has to
be maintained by the pizza chain
 Reduction in the excessive use water
and energy, needs to be reduced and
controlled (Hill, Jones & Schilling,
2014)
 The packaging of the pizzas should be
made with bio-degradable materials
Legal  The legislation of India, along with the
labour law, that differ from New
Zealand, has to be abided by Hell pizza
 The necessary licence has to be
obtained by Hell Pizza
The PESTEL analysis highlights the various external factors that affect the business of
Hell Pizza. The political factors highlight the fact that the legislation of India is much different

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from that of New Zealand and Australia. Thus, the Indian legislation has to be followed
effectively, in order to ensure steady expansion in the Indian markets. Though cheap labour is
obtained in Australia, yet the labour problem is a major one, in India (Hoffmann, 2014). Thus,
the Hell pizza needs to employ the people such that low cost labour could be obtained, thus
mitigating the labour issues. Moreover, the imposition of the newly implemented goods and
service tax (GST) might result in the increase in the cost of the pizza ("Hell Pizza", 2017). The
company needs to cope up with these political issues and challenges. The economic factors
facilitate the expansion of the company Hell Pizza. The economic growth of India enhances the
affordability of the people to buy the expensive gourmet pizza (Gamble & Thompson, 2014).
Significant changes have taken place in the social lives of the Indians. The changes in the
lifestyle increase the demand of the people for the consumption of pizza. With the technological
advancements in India, the process of pizza making is also automated, thus reducing manual
labour (Groysberg, Vaughan & Preble, 2015). The environmental factors include use of
sustainable packaging materials such that the issues of environmental sustainability do not arise
(Hill, Jones & Schilling, 2014). Moreover, controlled use of water as well as energy
consumption should be done to promote sustainability. The legislation of India has to be
followed successfully. Hell Pizza needs to take the required permissions and license in order to
ensure a steady growth and expansion in India.
Marketing strategy
The market strategy that needs to be adopted by Hell pizza, in order to ensure a stable
growth of the company in India. The various components of the marketing strategies are as
follows:

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Target market
The target customers of Hell pizza in India are mainly the people living in the urban areas
of the popular cities of India, such as Bangalore, Mumbai, Delhi, Kolkata, Pune. Since the
people of the urban areas have a higher affordability and acquaintance with pizza, hence the
company targets those people to expand their business in India. Moreover, with expansion of the
company, it is likely to target people of various other states of India. Among the target states of
India, the youths are targeted as the prime customers.
Pricing strategy
A variety of the pricing strategies is available and the companies use the pricing
strategies, according to the requirement of their business. Since Hell Pizza aims to expand their
business in India, hence the penetration pricing schemes could be used successfully, to determine
the price of the products of Hell pizza (Groysberg, Vaughan & Preble, 2015). In this pricing
scheme, the company aims are earning low profit and attracting more customers to the newly
launched products. Once the people are aware of the brand, the prices of the products are
increased gradually (Hill, Jones & Schilling, 2014). This pricing strategy is helpful while a
company is expanding its business. Moreover, price-skimming strategies could also be used. The
companies, when introducing a new product use Price skimming (Hoffmann, 2014). Initially, the
price of the products are kept low, however, as the target customers get aware of the new
products and the brand, the price is increased to be at par with the other contemporary brands
(Rothaermel, 2015).
Distribution system
The distribution systems include the logistics and the supply chain management. Since
Hell pizza is a pizza chain, hence the procurement of raw materials is one of the major

11STRATEGIC MANAGEMENT
requirements (Groysberg, Vaughan & Preble, 2015). It is important that the inbound logistics
that bring in the raw materials have to be maintained effectively to avoid unwanted delay (Eden
& Ackermann, 2013). Moreover, the outbound logistics have to be on time, such that the timely
delivery of the pizza could be ensured (Gamble & Thompson, 2014). The distribution system
also includes the inventory management, to avoid untimely delay.
The distribution system of the Hell Pizza could use direct distribution or franchising for
expansion in the Indian market (Peppard & Ward, 2016). Hell Pizza can open their stores for
ensuring direct sales, or use franchising as an option. Both these forms of distribution could be
used for the expansion of Hell pizza in India.
Competitor positioning
The competitor positioning defines the way one brand differentiates itself from the other
contemporary brands. In the Indian market, the major players of pizza chain are Dominos and
Pizza hut (Hill, Jones & Schilling, 2014). In order to ensure the strong positioning of the
competitor, a unique selling proposition of the company needs to be devised, in order to ensure
that Hell pizza is able to differentiate themselves from Dominos and Pizza hut, and gain
competitive advantages (Eden, & Ackermann, 2013). The uniqueness of the Hell pizza is the
way it presents its stores and websites. Moreover, the menus and its names are unique and have a
unique way of attracting the customers (Wang et al., 2015).
Unique Idea
The Hell pizza is themed as hell and the menus along with the theme are similar to that of
hell. This is unique, since the other competitors of Hell pizza, namely Dominos and Pizza hut
have conventional names of the various pizzas (Gamble & Thompson, 2014). However, the