Live Case – Project
Develop a Multi-Site Pricing Strategy for Donatos Pizza
A Collaboration Between
In the highly competitive pizza restaurant market, it’s critical that Donatos menu items are optimally priced as a premium pizza brand in the current market place. This is no easy feat. Donatos Pizza has 200+ locations in nearly a dozen states, our restaurants are nestled in communities and cities that have different economies and demographics. Furthermore, ongoing disruptions in the supply chain and rising costs increases the need for price sensitivity around the different types of food products and other items we use to serve our customers. We need to move beyond the “cookie cutter” approach and adopt a more surgical pricing strategy.
-Create a base map Donatos of locations
-Add key variables (e.g. competitor pricing, market pricing, costs, etc.) as map layers
-Analyze to identify patterns/clusters based upon common features of locations
-Develop a price list for each of the location clusters
-Recommend a strategy for implementation and evaluation of the strategy
-An actionable multi-site pricing strategy with supporting rationale.
Project Topics
Data Management
Operations
Company Information
| Company | Donatos Pizza |
| HQ | Gahanna, OH |
| Revenue | N/A |
| Employees | 500-2500 |
| Stage | Large Enterprise |
| Hiring Potential | Follow-on Projects, Formal Internship, Entry Level Full-Time |
| Website | https://www.donatos.com/ |
Company Overview
Donatos Pizza is a pizza delivery restaurant franchisor headquartered in Gahanna, Ohio, United States. It has nearly 200 locations in eleven states, with the majority of locations in Ohio.
Experiential Learning Program Details
| School | Northern Illinois University (NIU) |
| Engagement Format | Live Case - Think "Hackathon" or Case Competition with a whole class of students! This learning format allows educators to deliver experiential learning to students at scale. Students are often split into groups to work on a live case (or a series of cases) from a real host company that directly relates to key learning objectives. |
| Course | Business in Action, Fall 2022 (Collum) – Donatos |
| Level |
|
| Students Enrolled | 40 |
| Meeting Day & Time | Online MW 6:00 - 8:40 pm CT |
| Student Time Commitment | 4-7 Hours Per Week |
| Company Time Commitment | 1 Hour |
| Duration | 7.57 Weeks |
Program Timeline
Key Project Milestones
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September 19, 2022 - Deep-dive on Donatos Pizza
- What is the company’s brand, mission and values, and how these are “lived” by the company?
- What is the company’s target demographic, product, and business model? How is the company structured?
- What is the customer’s problem/need and how the company’s product or service is solving that problem? What is their unique value proposition?
- What is the current pricing model? What is the annual revenue?
- Focusing on the current challenge:
- What approach will you use to inform the final pricing strategy, and why?
- What data points do you need on the company (e.g. customer transaction data, location data, utilization, discounting)? Its competitors (e.g. pricing, quality)? How will you use these data in your analysis?
Suggested Deliverable:
-Current map of Donatos locations, list of key competitors, draft approach and data collection and analysis strategy
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September 28, 2022 - Analyze Company & Competitor Data
- Which analytical tool(s) (e.g. regression, geomapping) are available and useful to determine which of the variables are relevant to the pricing model?
- What patterns in the data do you identify? How will you determine which ones are significant?
- What location clusters emerge from the analysis?
- What inputs should each location consider when setting their individual prices?
Suggested Deliverable:
Data Analysis Report; Questions for Industry Representatives
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October 10, 2022 - Recommend a Multi-site Pricing Strategy
- What are your recommendations for a standardized, efficient way to decide on regional prices? Develop a price list for each of the location clusters.
- If you identify facilities where products are under-priced, how can the company bring regional pricing levels in line without excluding or alienating current customers?
- What are the next steps for implementing the pricing strategy?
- How does your recommended pricing strategy align with the company’s business goals to mitigate revenue risks and capture opportunities for price increases?
- What strategies and tools do you suggest for Donatos to evaluate the pricing strategy you are recommending?
Suggested Deliverable:
Multi-site Pricing Strategy & Rationale Paper & Presentation
Project Resources
There are no resources currently available
Industry Mentors
Academic Mentors
Assigned Students
There are currently no students assigned.