Frozen pizza continues to be a strong traffic generator, however, there remains a strong opportunity to slice out more share from the carry out/delivery segment.
Retailers can deliver more with their frozen pizza sections. Sure, the category is a strong
"The biggest growth opportunity still remains to source from the very large carryout and delivery market through a strong commitment to quality and innovation," says Katie Williams, senior brand manager for Kraft Pizza Co., Northfield, Ill., makers of DiGiorno, California Pizza Kitchen, Tombstone and Jack's frozen pizza lines.
"Frozen pizza has overcome its bad rap," adds Tom DeAngelo, director of sales and marketing, Home Run Inn Inc., Woodridge, Ill., which has its frozen pizza in 22 states, but is planning a plant expansion that will allow it to triple its current production. "Over the last ten years, we, as an industry, have made great strides and now consumers believe in frozen pizza. But retailers need to see the continued growth and should allow for it by adding more freezer space to their sets."
Kraft sees three key growth areas in the category: health and wellness, thin-crust popularity, and convenient offerings for the 1-2 person household.
As for the heightened consumer awareness in health and wellness, Kraft has responded recently with the introduction of DiGiorno Harvest Wheat Rising Crust Pizzas and its new line of South Beach Diet Frozen Pizzas.
Secondly, "we saw significant growth in thin crust varieties in 2005, and that momentum continues to build into 2006," says Williams. In fact, Kraft is introducing two new varieties of its California Pizza Kitchen Crispy Thin Crust-Sweet & Spicy Italian Sausage and Garlic Chicken.
The growing 1-2 person household is also playing a greater role in the frozen pizza category, and Kraft is responding with more convenient, single-serve offerings such as DiGiornio Microwave Thin Crispy Crust Pizza in four varieties; 9-inch California Pizza Kitchen Rising Crust varieties; and Tombstone Single Serve and Mini Deep Dish.
Home Run Inn sees growth "from us tapping into the fresh prepared pizza market," says DeAngelo. "Frozen pizza has started to do this; however, we have a long way to go. Our growth will come from better quality products and consumer confidence in frozen."
The Home Run Inn brand does not continue to add very many different items because "our pizza is different to begin with," says DeAngelo. "We build the pizza from scratch and then bake the pie just as your local pizzeria would. The only thing we do differently than the pizzeria is flash freeze it. The process enables all the flavors to blend. It also allows us to produce a pizza without any preservatives. Also, our dough is fermented prior to production which allows more flavor."
Home Run is planning to launch a line of Home Run Inn Deep Dish Pizzas, however, "the varieties will be basic-Cheese, Sausage, and Pepperoni," according to DeAngelo. "It has been our finding that consumers always come back to the original varieties."
ety=7; enum=2; ety=2; enum=0;Chicago: The Granddaddy of Frozen Pizza
Generally speaking, the Midwest has traditionally been a strong frozen pizza market, but the word is, no market beats Chicago. For the 52 weeks ended Dec. 31, 2005, total Chicago frozen pizza j market sales were approximately $128 million, according to ' ACNielsen, New York. Home Run Inn Inc. is the category leader with a 17% share.
"Chicago is the number-one frozen pizza market in the world, and has been for many years," affirms Tom DeAngelo, director of sales and marketing, Home Run Inn. "Frozen pizza in Chicago has been given much more space than other markets. The display freezers are abundant, which is where the majority of pizza is sold."
Home Run Inn continues to grow its Chicago share against the national brands "through promotion, brand marketing, demonstration, and direct store delivery (DSD)," says DeAngelo.
It is the latter that DeAngelo says is most imperative in the Chicago market. Four years ago, Home Run Inn and Power Play distributors established a DSD system that helped it become number one in the number-one market. "The category has been built on DSD and it will continue to be the main focus of distribution," he says. "DSD players are in the stores daily and usually have their way with the shelf and end caps."
He adds that Home Run has had good success in other markets without a DSD program "by providing something different from the normal frozen pizza."
But in Chicago, it seems you have to have it all to lead the frozen pizza parade.
Hot from the Merchandising Oven
Fire up more frozen pizza sales with the hottest merchandising tips:
* Take advantage of big carryout and delivery "drive" periods such as Fall Football, Super Bowl, March Madness, Halloween, New Year's, etc.
* Face products properly to maintain a billboard effect
* Products should be positioned according to price line. "A value pizza should always be next to a value pizza," says Tom DeAngelo, director of sales and marketing for Home Run Inn. "The same goes for a premium brand," he adds.
* Offer additional brands beyond the national players. "These other brands shake up the category and will potentially bring all other brands to the table, investing more into the retailer's category," De Angelo maintains. "The retailers' goal should be just as ours is-to take market share from the Pizza Huts and Papa John's of the world."
* Focus on a quality demo program with top-notch staff that explains the features/benefits of the product, as well as top-notch equipment that cooks the pizza correctly. "A good demo program supported by the manufacturer will always enhance the sales potential of a brand," maintains DeAngelo.
* Make room for innovation. "The best way to grow the category is to focus on key consumer trends, including health and wellness, thin crust varieties and convenient single-serve items, while reducing duplicative items," advises Katie Williams, senior brand manager for Kraft Pizza Co., makers of DiGiorno frozen pizza.
* Capitalize on the impulse factor by regularly promoting the category to consumers as part of the store's weekly advertising
* Use creative point-of-purchase to drive awareness and build sales.