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As Dough Pizza has gone through multiple stages in development, the company may begin considering the range of new and niche markets to increase opportunities and explore customer segments that have not had any interest in the company previously. It has been identified that the company will benefit from introducing both new products and services.
As a unique market that Dough Pizza can explore, it is proposed to look at the meal kit delivery service, which is a growing industry that has become especially popular with the help of social media advertising. Dough Pizza can be successful in entering the market of meal kit deliveries because it already has a solid customer base, which will be interested in trying out various Italian food recipes. The production of beverages such as lemonades, ciders, and craft beer is also possible for the company to consider because of the direct links with the restaurant business. To support the entries, Dough Pizza needs to develop a cohesive marketing strategy and employ specialists that have knowledge of the processes involved in beverage making or meal kit delivery.
Promising Markets and Industries
The ten most rapidly growing industries and markets include construction, professional services, tech and gaming, renewable energy, breweries, e-commerce, mobile food services, meal-kit delivery services, wineries, and distilleries. The construction industry has seen tremendous growth over the past decade due to the building construction boom and the need to provide housing for the growing population. Professional services range from photography to accounting and imply the availability of an expert with specific knowledge in the field. The tech and gaming industry is expected to grow by 55% between 2012 and 2023 and expanding the popularity of virtual reality will provide entertainment on a global scale.
The high demand for renewable energy is linked to greater affordability and sustainability, which is why new companies emerge to capitalize on the opportunity (MacDonald, 2018). Breweries are becoming popular with the growing demand for niche craft beers. Between 2008 and 2017, the number of brewery employees increased by 158.3%, which is “more than 29 times the national employment growth for all occupations of 5.4%) (Comen & Stebbins, 2019, para. 14). E-commerce also continues to grow as customers find it more convenient to order desired products online instead of going out to stores. Mobile food services include a range of nonstationary food vendors, such as trucks, and have become very popular especially among customers on the go.
Meal-kit deliveries are also growing fast as a service because they are appealing to customers that have families or are very busy, thus do not have time to prepare meals from scratch. According to Comen and Stebbins (2019), the demand for wineries has been fueled by the interest from the millennial generation as the youngest members reached their legal drinking age, and as mentioned in “the research from industry association the Wine Market Council, a large share favor wine” (para. 14). Similar to the demand for wine, distilleries are also increasing in popularity as the disposable income in the United States rose to $45,000 by 2017 (Comen & Stebbins, 2019).
Products and Services
Companies such as Blue Apron, Home Chef, and HelloFresh deliver pre-measured ingredients along with simple step-by-step recipe instructions to aid customers in preparing a meal by themselves, a model that Dough Pizza can replicate (Vachon, 2019). For example, a meal kit can include all ingredients to make homemade pizza so that customers try to do it and compare the final product with the one they tried at the restaurant. Importantly, the meal kit menu should be different from the one served at Dough Pizza to ensure that customers also visit the restaurant or get take out.
Wineries and breweries represent another opportunity for Dough Pizza because alcoholic beverages come hand-in-hand with the restaurant industry. The company can cooperate with local specialists in the field to produce specialized beverages that will only be available at Dough Pizza restaurants under the company’s label. Mobile food services can also be pursued by the company because of the potential to offer customers new ways of enjoying the dishes that have previously been available only at restaurants. Thus, offering meal kits, specialized wine, and beer, as well as food trucks will help the company to withstand the competition because most of the restaurants of Dough Pizza’s format do not provide specialized products. Bringing targeted products and services will enable customers to try new offerings and develop closer connections with the brand through its extended range.
In regards to the differentiation between definitions, a market defines a group of customers, which implies a degree of flexibility. A single product can have several target markets depending on its use. Industries are seen as big and inflexible and are defined by the general criteria of government regulations and other institutional frameworks. Despite the fact that many use the three terms interchangeably, there is some distinction between them. An industry cannot be replaced by a market because there is a set of rules and regulations that cannot be eliminated.
If to apply the Innovation Radar tool to Dough Pizza, the most significant points will be attributed to offerings, brand, networking, presence, and customer experiences. The radar offers a 360-degree look at the innovation of a company, its strategic focus, and positioning. The company’s radar orientation is explained by the fact that the introduction of new products and the entrance to new markets will call for Dough Pizza’s efforts to attract customers through a solid brand image and the communication of unique products and services. The introduction of branded wine and beer at the restaurant implies the enhancement of the customer experiences, especially among the target market of millennials who have shown an increased interest in trying out craft beverages. The middle-ground focus of the company based on the Innovation Radar will be linked to the supply chain and the organization of the smooth processes of delivering the products to customers. This implies collaboration with local wine and beer producers and finding the most appropriate kinds of beverages that will be received well by the Dough Pizza consumers.
At the current stage of Dough Pizza’s development, there is a range of opportunities that the company can pursue to capture new markets and customer segments. Meal kit deliveries and mobile food services are solutions for those customers who do not have enough time to prepare meals from scratch or are always busy. Branded wine and craft beer are products that will enhance the quality of customer experiences at Dough Pizza. Clients will also be welcomed to purchase the beverages to take out as presents for friends or to consume at home. Overall, there are multiple ways in which the company can expand and reach a competitive advantage.
Comen, E., & Stebbins, S. (2019). 25 industries experiencing the fastest growth in the US economy. USA Today. Web.
MacDonald, D. (2018). 20 of the fastest-growing industries in the US right now. Web.
Vachon, P. (2019). The best meal kit delivery services for 2019. Web.