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Steel City pizza consulting project
Anthony Berkos
Darcy Cameron
Susan Hayes
Alanna Keith
Citadel Graduate College – Consulting Team, August 2014
Executive Summary
We began this project with a request from Steel City’s owners. They wanted to know the best use of
their marketing budget. As far as the industry goes, they were spending less than the average on
advertising. We decided to begin with an analysis of each market segment. From there we surveyed actual
Steel City Pizza customers. Lastly, we defined their target market as well as their current market
demographics.
All of our research led us to technology as the best way to target their markets. There are two ways
Steel City can reach those markets with technology. The first is with a web app. We analyzed what each
target market wanted in an app. We even combed through the surveys to pick out how the requests of
Steel City’s customers could be addressed through an app.
Once we identified what the app should look like we set about finding a company who could create it.
After meeting with account executives from Blue Key, SPARC and NetGALAXY we chose
NetGALAXY to design the app for Steel City.
The next suggestion we had for Steel City was to continue engaging their customers through social
media. We looked at their prior social media posts and picked out those that got the most likes or
comments. We did research on ways to best engage customers through social media.
By using a web app and social media together Steel City will have a new tool to continue marketing to
their customers. Used effectively these tools will increase revenues for Steel City by reaching their
customers directly with technology. We feel an investment in this area will be marketing dollars well
spent.
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ContentsIntroduction....................................................................................................................................................3
Statement of Research....................................................................................................................................3
Review of the Literature................................................................................................................................4
Online or Word of Mouth?........................................................................................................................4
Market Segments........................................................................................................................................4-7
Baby Boomers............................................................................................................................................5
Gen X.........................................................................................................................................................5
Gen X (cont.).............................................................................................................................................6
Gen Y.........................................................................................................................................................6
Tourists......................................................................................................................................................7
Methodology.............................................................................................................................................8-16
Surveys.......................................................................................................................................................9
Surveys (cont.).........................................................................................................................................10
Surveys (conclusion)................................................................................................................................11
First Hand Observation............................................................................................................................11
Data Analysis and Results..................................................................................................................12-16
Recommendations..................................................................................................................................17-20
Social Media............................................................................................................................................17
Smartphone App......................................................................................................................................18
App Design for Generations....................................................................................................................19
Baby Boomers...................................................................................................................................19
Gen X................................................................................................................................................19
Gen Y................................................................................................................................................20
Tourist...............................................................................................................................................20
App Developer Search............................................................................................................................20-22
BlueKey...................................................................................................................................................21
SPARC.....................................................................................................................................................21
NetGALAXY...........................................................................................................................................22
And the Winner Is…....................................................................................................................................22
Conclusion...................................................................................................................................................22
Tables……………………………………………………………………………………………………………………………………………….23-24
Graphs………………………………………………………………………………………………………………………………………………25-28
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Works Cited............................................................................................................................................29-30
Introduction
In 2010 Adam Carb and Mark Gray formed Steel City Pizza Company. Steel City Pizza is a full
service, casual dining, family restaurant. There are two stores. Each store is approximately 4000 square
feet, containing 128 interior seats and between 24 and 30 outdoor patio seats. The two locations
collectively employ 138 employees. In 2013, the two stores generated a combined 4.6 million dollars in
revenues, with 50 percent of revenues coming from dining in, 25 percent from take-out orders, 20 percent
from delivery orders, and 5 percent from catering.
Currently, Steel City Pizza, while generating considerable revenue, is not effectively contributing the
appropriate funds to marketing. A similar industry average company spends approximately five percent
of revenue in marketing. Steel City Pizza is spending less than two percent.
Steel City has also interviewed consultants to seek advice on their marketing issues, but the
consultants have only generated proposals of such plans and require fees, not only for the proposals, but
separate fees for the execution for such proposals.
Statement of Research
In collaborating with Adam and Mark we as a group have determined that in order to satisfy the needs
and wants of Steel City Pizza, the following areas will need to be addressed:
Identify the current target market, as well as other possible market segments, to determine the
maximum value and opportunities for Steel City
Determine what is the most appropriate means of marketing communication to meet target
markets
Design an implementation strategy that is appropriate for the determined communication
medium
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Review of the Literature
Online or Word of Mouth?
According to Promotional Marketing or Word-of-Mouth, the value of marketing compared to either
word-of-mouth or promotional marketing through online resources has not been fully researched
(Xianghua, 2013). However, this article proves that promotional marketing through online resources has
a significant impact on product sales (Xianghua, 2013). This study used a three-year panel data set from
one of the biggest restaurant review websites in China and found that there was a complementary
relationship between word-of-mouth volume and keyword advertising on online resources (Xianghua,
2013).
This proves that utilizing online resources would be the best marketing channel for Steel City Pizza;
not only because using online resources would help their already established marketing strategy (word-of-
mouth), but also because Steel City Pizza’s target markets can all be reached through technology
applications.
Market Segments
Through the implementation of surveys, Steel City Pizza was determined to have four main market
segments: Baby Boomers, Gen X (families), Gen Y, and Tourists (see tables below). Because it was
determined that technology would be the best marketing channel, Steel City Pizza must know how each
market segment interacts to technology and what each segment deems important in a technology
application.
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Baby Boomers
Baby Boomers are the adults that were born between 1946 and 1964 (Miller & K., 2014). This market
segment comprises of 1/3 of all TV viewers, online users, and social media users (Miller & K., 2014).
Even then, the Pew Internet & American Life Project stated that 81% of younger Baby Boomers (45-54)
and 76% of older Baby Boomers (55-64) use the internet (Miller & K., 2014). 86% and 87% of younger
Boomers and older Boomers use search engines respectively; while 50% of younger Boomers and 43% of
older Boomers use social media platforms (Miller & K., 2014).
Boomers also, “engage on social networks to include following groups/organizations (55%),
posting/watching (40%), supporting causes (26%) and joining groups (23%) (Nanji, 2013). In essence,
Baby Boomers embrace technology; especially if they believe it will be of value to them or their lifestyle.
Furthermore, a report by Ipsos and Google stated that Boomers spend 19 hours a week online; using that
time to learn more about a subject or entertainment (Nanji, 2013). “Boomers expect technology to offer
enjoyment and help them live better lives while connecting with friends and family” (O'Connor, 2014). If
Steel City Pizza can shift their current marketing strategy to a technological aspect that can harness what
Boomers expect, then the firm will be able to connect and create more value for their customers currently.
Gen X
Gen X are the adults that were born between 1965 and 1978. Gen Xers grew up in an age where
everything was uncertain; from being the first group to experience divorce to the uncertainty of the
economy (Ravanas & Obalil, 2013). Because of this, Gen X responded in either “immersion or
hibernation”; either taking risks or avoid it (Ravanas & Obalil, 2013). One aspect that can be said about
the majority of Gen Xers is their immersion in technology. This group “expect to access technology at
home, at work and in the community” (Hmed, 2011). They grew up with the development of technology,
and are well versed using it to better their lifestyle. According to a study by The Center for Work Life
Policy, 57% of females and 68% of males do have children (Newman, 2011).
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Gen X (cont.)
By having children in their lifestyle, most of their daily decisions, such as deciding what is for dinner,
are up to the child. For example, children are the main influencers in choosing restaurants with up to 75%
of parents considering the child(s)’ preference (Frisch, 2004). Furthermore, these children are fluent
users of technology, with 72% of children under the age of eight using smartphones or tablets (Rayman,
2013). With families typically accounting for approximately 56% of sales for a restaurant, the ability to
leverage technology toward Gen Xers and their families is a viable opportunity that Steel City Pizza
should take advantage of it if they want to create value for themselves and the customer.
Gen Y
Gen Y are those who were born between 1979 and 1997. When describing this group, American
Demographic said, “Picture Eisenhower with a pierced eyebrow” (Ravanas & Obalil, 2013). This group
believes, “the future is good, and that it will take more traditional shape than their generational
predecessors ever imagined” (Ravanas & Obalil, 2013). This group grew up with technology, and are
incredibly tech savvy to the ways of the consumer world (Ravanas & Obalil, 2013). With 89% and 83%
of Gen Yers using social media and owning a smartphone respectively, the ability to leverage technology
for Steel City Pizza is present (PewResearch Internet Project, 2014).
Because this group is so immersed in technology, they view advertising and marketing as a form of
entertainment rather than a sales pitch (Ravanas & Obalil, 2013). Even that being said, this generation
values function over form and will research a product for its functionally over the features that come with
it (Ravanas & Obalil, 2013). By implementing a technology strategy that is functional and entertaining,
Steel City Pizza can penetrate this market segment more than they currently are.
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Tourists
Tourism is a major business factor for the greater Charleston area. With 4.83 million tourist visiting
Charleston per year, $3.58 billion dollars go into the Charleston economy (Wise, 2013).This in itself
proves the impact tourism has on local restaurant such as Steel City Pizza. Tourists are highly fluent in
technology, especially when on travel. 66% of tourists use smartphones or tablets to look up restaurants
(tripadvisor, 2013).
Tourists are heavily reliant on “near me” capabilities on smartphones and online reviews; making
technology the best marketing channel for this type of market segment (tripadvisor, 2013). Furthermore,
35% of travelers who own smartphones and 23% of tourists who own tablets use their devices to “look
for things to do” (tripadvisor, 2013). Because of the current practices of tourists, technology should be
the method Steel City Pizza implements to communicate with this target market.
Based on how the market segments implement technology, Steel City Pizza should leverage this type
of channel for its marketing strategy. Because a vast majority of its customers does not use technology in
the context of Steel City Pizza, a focus on this channel will change the communication between Steel City
Pizza and the customer in a positive manner. If Steel City Pizza can implement technology to where the
market segments can see a positive impact on their lifestyle, then the value create between the customer
and Steel City Pizza will increase.
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Methodology
When the team began the consulting project with Steel City Pizza, some given elements stated in Steel
City’s initial information packet were taken into account, such as 85 – 90% of customers being repeat
guests living and working within a 3-mile radius of either restaurant (Gray 2014). Mark and Adam firmly
desire for Steel City Pizza to be a family-oriented restaurant, and they believe the business is frequented
most often by families. However, in order for any marketing strategy and methods to be truly effective,
the consulting team had to determine if this belief was indeed factual.
To prove this idea, certain questions had to be answered in order to proceed with a reasonable
marketing plan for the business. Those questions included the following:
1. Who are Steel City’s customers?
2. Is each of Steel City’s restaurants reaching the market segment the owners believe they are
reaching? (i.e. mainly families dining with children)
3. Are any valuable market segments being missed?
4. Does the answer to the prior question affect marketing methods or media?
5. Are other target markets desired or welcomed?
6. Are there certain aspects of Steel City Pizza that should be focused on in marketing
techniques?
7. Has past advertising and marketing been effective for the business?
8. How do current customers feel about the quality aspects of the restaurant?
9. Can these feelings be used to further marketing methods?
10. Which marketing method is best to use at this time to build Steel City’s reputation and
popularity within the respective communities?
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Methodology (cont.)
All of these questions helped to build a clearer view of Steel City from the customers’ perspective of
why they are drawn to the restaurant as well as what keeps them coming back. In turn, once the answers
were to be found, Steel City could develop a clearer view of customer demographics, also. Steve Olenski
questioned in Forbes Magazine how it was possible for businesses to retain their customers moreover
build loyalty when they could not be certain who their customers truly are (Olesinki, 2012).
The consulting team used three main types of data collection methods to develop a better picture of
Steel City’s target market, as well as the business makeup, including: printed survey, first-hand
observation and analysis of historical sales data.
Because the team needed to learn the answers to these questions in a very short amount of time, a
decision was made to use a simple customer survey within the restaurants as well as online if possible to
gain a sample set of pertinent data. This data collection method was the primary method used to collect
data directly from Steel City’s customers.
Surveys
While surveys may be subjective to the atmosphere of the visit or prone to misinterpretation of the
questions if misstated or poorly phrased, a well composed customer feedback survey can prove to retrieve
required data very quickly while reinforcing Steel City’s interest in its customers.
As pointed out in Pizza Today, “It (the feedback survey) may not get the largest sample size for
feedback, but manager interactions can make a huge difference in building brand loyalty among
customers, and it can help managers get a better idea of what’s going on at the table-level (English, 2013).
All questions and rating options were planned in detail for clarity, consistency, conciseness and
relevancy.
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Surveys (cont.)
Drafts of the survey were created and reviewed by the consulting team as well as Mark and Adam.
The final survey draft contained the following elements for review:
1. Rating of the customer’s overall dining experience.
2. Demographic age group of the dining party including the breakdown of age groups as 18 – 25, 26
– 33, 42 – 49 and 50+.
3. Categories answering why the party dined at the restaurant including quality of service, quality of
food, atmosphere, price location and other.
4. Frequency of customer visits with the categories broken down as 3 – 5 times per month, 1 – 2
times per month, once every two months and other frequency.
5. Method by which the customer had been made aware of Steel City as a dining option including
print/verbal advertisement, social media, website/search engine, family or friend (word of
mouth), drive-by and other method.
6. Whether or not the customer would give a recommendation on Steel City’s Behalf.
7. Added comments from customer that could make dining with Steel City more enjoyable.
In addition, enticement elements were added to the survey card that could be used as an added
marketing tool by directing the customers to the individual Facebook page for the restaurant location at
which they dined. Also, the customer could add their name and email if they desired to be considered for
a drawing for “free stuff” at the restaurant. For a full example of the survey card used, please see end of
the report.
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Surveys (conclusion)
In order to implement the survey, the master document was emailed to Mark and Adam for printing
and distribution within each restaurant. The surveys were collected over a period of at least two weeks in
order to collect enough data to develop a reasonably distributed data set. The surveys were collected by
the staff and held for pick-up by our team. The results were tallied and marked in detail for review and
analysis.
First Hand Observation
Another data collection method and learning tool utilized by the consulting team was first hand
observation. Various team members dined at the restaurant both individually and also as a group. The
group was able to experience the relaxed atmosphere of the restaurant and the general “vibe” being given
off at different times of day as well as days of the week.
Using this data gathering technique in conjunction with the survey helped reinforce survey results, but
also assisted the team in visually documenting qualities that the survey could not such as occupancy,
business, overall tone of the atmosphere, and overall customer interaction with servers.
In the final data collection method the consulting team attempted to use historical sales data from
reports of both restaurants. The intent of using this tool was to develop an analysis of knowing which
items were better to advertise and when. However, there was a problem with retrieving comparable sales
reports from both locations with varied enough data. Therefore, the team determined its analysis would
be only vague and incomprehensive at best.
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Data Analysis and Results
Because differing restaurant locations may have different types of customers, the customer feedback
surveys were tallied and reviewed as a whole as well as in part in case varied results were reported.
Overall, some of the results were as expected, while other indications were not. The complete results of
the survey have been compiled and simplified for quick review (see graphs pgs. 25-28).
Using the survey categories listed in the Methodology section, the consulting team received an ample
amount of feedback from Steel City patrons that would allow a direction to take focus with marketing
implementation methods. The consulting team set as its first priority to assess customers’ opinions of
their dining experience prior to focusing on any individual marketing methods. If higher negative
feedback were returned, the team would have switched its main focus to what was going on within the
restaurant prior to moving forward with any marketing method implementation.
However, 69% of patrons at both restaurants rated their overall dining experience as exceptional and
between 28 – 30% rated their experience as good. Between 1 – 3% at each restaurant rated their overall
dining experience as not good or bad. No patrons rated their experience as disappointing or not as
expected. The numbers are overwhelmingly positive. With such a large percentage of patrons assessing
their dining experience as only good and not exceptional, more examination should be performed by
management to find out why customers are not ranking their overall experience at Steel City Pizza higher.
Next, the consulting team collected feedback on demographic age groups frequenting Steel City Pizza.
This feedback is important to know to which generational target market Steel City is appealing most at
the present time. Marketing tools can then be designed accordingly to either promote the current market
segment further or to stimulate patronage from additional target markets, also.
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Data Analysis and Results (cont.)
The owners’ viewpoint that their customer base did not appeal to the 18 – 25 year or college age
crowds was correct. This age group trailed at both restaurant locations with only 9 -12% of the consumer
make-up. As this age group is not a segment Steel City wishes to pursue, the consulting team did not see
any reason to pursue marketing options that would cater to this age group.
The survey results indicate that Steel City Pizza’s largest customer group consists of patrons’ age fifty
and above taking 30 -38% of the total results. Mt. Pleasant had 8% more mature customers than did
North Charleston. These figures were somewhat surprising since Steel City viewed their establishments
as catering to families with minor children. These results do not mean that Steel City Pizza is not family
oriented. This age group could include parties of grandparents with grandchildren or individual couples.
The type of marketing being implemented may need to be modified to reach the customers Steel City
Pizza desires.
Another eyebrow raising factor for the Mt. Pleasant restaurant is that the second largest customer
group (25%) by age is the 26 – 33 year old crowd. Typically, this age group consists of individuals or
couples not long out of school and who are still becoming established in careers and homes without
families. While there will be some younger families in this group, those families will be prone to having
infant to toddler age children left with the babysitter while mom and dad take much needed night out.
Overall, the surveys show that Mt. Pleasant’s patrons consist of a whopping 63% of customer groups
without school-age children. This fact may greatly affect Steel City’s marketing efforts depending on
what target markets are chosen to pursue.
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Data Analysis and Results (cont.)
On the other hand, North Charleston’s numbers were the reverse after the fifty plus age group. For
North Charleston, the 42 – 49 year age group took the second highest ranking in the survey with 23%
trailed by the 34 – 41 year age group at 21% of patrons. The 26 – 33 year age group trailed here at 14%
of the total customer make-up.
The difference between the two stores is most likely consistent with the neighborhood demographics.
As the area in which the Mt. Pleasant restaurant is located is also less economical to live in with respect to
other areas of Charleston, it will be more prone to residents that are much more established than those
couples with young families. The Mt. Pleasant store may continue to see more mature customers and
should consider either using marketing to reach grandparents, vacationers, and those looking for a special
night out on the town.
The next survey results seemed to relatively evenly spread with regard to both restaurant locations. At
both locations, price is not as an important factor to customers as are quality of food, service location and
atmosphere. This fact is consistent with Steel City’s focus of the type of restaurant they strive to be. Steel
City places emphasis on their food, service and family atmosphere. The consulting team found that the
survey results are consistent with the Steel City focus.
Regarding frequency of visits, for North Charleston and Mt. Pleasant respectively, 58 – 61% of
customers indicated they dined at Steel City Pizza between 1 – 5 times per month. To detail the results
even further, 38% of surveyed customers in North Charleston and 29% of customers in Mt. Pleasant
indicated they frequented Steel City Pizza 3 – 5 times per month. At each restaurant, five patrons
indicated it was their first visit. These results indicate that Steel City Pizza has a consistent customer
following making up the largest percentage of their business. This base also indicates that in developing
future marketing methods, Steel City will want to be mindful to not upset or disappoint this strong
following by catering to vastly different crowds.
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Data Analysis and Results (cont.)
Finally, as a summary note using the last survey question results for how customers heard about Steel
City Pizza, the consulting team can verify that current advertising is working very poorly to draw
customers to either restaurant. Between both store locations and 106 surveys collected, only four patrons
indicated they had heard about Steel City Pizza after seeing an advertisement for them. Essentially what
that means is that Steel City Pizza is currently spending over $4,600 on print media ads to attract
approximately 4 in every100 customers. Therefore, the consulting team can say with relative certainty
that further evaluation of print advertising content and distribution methods should be completed before
spending additional funds in this area. Print advertising does not appear to be an effective marketing tool
for Steel City to use at this time.
In addition, website and search engines are not being used effectively to draw in the desired customers
to Steel City Pizza. Between 0 – 4% of customers indicated that they found out about the North
Charleston and Mt. Pleasant restaurants respectively. As the majority of the present day population has
learned to “Google it”, the consulting team believes search engine direction could be much better utilized
to bring customers searching for pizza to Steel City’s website. It is not only more effective but also a
more economical use of the advertising budget to increase its popularity within web searches.
The highest category of how customers heard about Steel City Pizza was location dependent. In Mt.
Pleasant, 60% of customers surveyed heard of Steel City from family or a friend while 28% were made
aware of it from driving by. At the North Charleston restaurant, the same two categories were more
evenly split at 42% from family or friend and 45% from drive-by.
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Data Analysis and Results (cont.)
This information indicates two useful pieces of information: 1) customers rely on personal
recommendations, which mean that Facebook would be a highly useful and cost effective method of
marketing by encouraging friend recommendations, and 2) customers are just happening onto Steel City
by accident or chance. The second point indicates that unless Steel City wants to stick with the customers
they already have, a well thought out marketing method is needed to quickly spur interest in the
restaurant.
In addition, to the completed survey questions, customers were allowed to leave comments concerning
some of the open-ended answers. These comments have been included (Table 1, p. 23) and cross-
referenced with corresponding elements related to the final recommendations.
As for first hand observational results, the consulting team was able to draw some general conclusions
after several visits between the two restaurant locations. First and foremost, the food was excellent.
While individually, the consulting team was a bit overwhelmed by the sizeable number of menu options,
the food was really good. As well, the draft beer choices and specials were excellent offering a wide
variety and fair price for a night out. It is reasonable to expect that Steel City could promote specials
more effectively through an app or through Facebook.
In addition, the servers are friendly, timely, observant and comfortable to be around. Since service is
one of the main make-or-break factors of any dining experience, Steel City should promote this key factor
as one of their selling points even more. The consulting team did note that on one occasion the server
failed to mention anything about it being trivia night. Servers should be conversationally promoting
internal events without being pushy whenever possible. Doing so encourages patrons to become “a part
of the family.”
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Data Analysis and Results (cont.)
Overall, both restaurants seemed to be limited in space which is concerning for future growth of
business at each restaurant. However, all of the dining times are not being fully optimized at present.
One Friday afternoon in July, no more than thirteen total patrons were present for a forty-five minute
period. Using a push notification to promote one afternoon only discount periods not only gets customers
in the door, it makes them watch for them specifically.
Recommendations
Based on the information from research and surveys, it was determined that technology was the best
marketing channel for Steel City Pizza. Because each target market segment is heavily reliant on their
smartphones and social media platforms, it is recommended that Steel City Pizza’s technology channel
focuses on its social media platforms and the creation of a smartphone application. It is important to note
that there should be a unified front when changing the market strategy for social media platforms and the
implementation of a smartphone app.
Social Media The first recommendation for Steel City’s marketing strategy is to actively engage its customers
through Steel City’s social media platforms. There are opportunities Steel City Pizza can capitalize on
with a few minor changes to its Facebook accounts. It was found that there are six main themes every
business should utilize for its Facebook account if it wants to be successful (table 2, p.24) These six
themes are: pictures, asking questions, posting events, notifying company and community activity,
posting appreciation toward customers, and notifying for deals and promotions (He, 2013). By
implementing these six themes consistently throughout Steel City Pizza’s social media platforms, the
communication between customers will increase; while also improving the awareness of Steel City
Pizza’s brand.
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Smartphone App
The second recommendation for Steel City Pizza’s marketing strategy is the creation of a smartphone
application. Based on the research conducted, Steel City Pizza’s market segments own a smartphone and
use applications to better their lifestyle. According to the National Restaurant Association, 80% of
consumers want to see a menu before they dine at a restaurant, and 62% say they are less likely to select a
restaurant if they cannot read its menu on their mobile devices (National Restaurant Association, 2013).
Furthermore, 50% of consumers have used online ordering capabilities, while 46% of consumers
looked up a restaurant location and directions on a smartphone or tablet (National Restaurant Association,
2013). Also, 50% of consumers stated they would use a restaurant reward on a smartphone, and 31%
would interact with a restaurant if it had social media (National Restaurant Association, 2013). Based on
the research and results from the surveys, it was determined that the following should be reflected in the
application:
Menu
Calendar
Seamless transition to Steel City Pizza’s already established online order webpage
Contact information
Location information
Capabilities for comments, suggestions, and concerns with camera capabilities
Capability to link to social media platforms
Capability to forward notifications to customers
Web Arcade for children
Capability for a loyalty card
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App Design for Generations
Upon further research of application development among Steel City Pizza’s target markets, the
application should also reflect the following:
Baby Boomers (Chacko, 2013):
Design with simplicity and usability in mind
Eliminate ambiguity
Cater to their comfort
Integrate voice controls whenever possible, such as turn by turn directions
Avoid too many features
Avoid confusing terminology
Make buttons to features bigger
Gen X (Klie, 2012):
The application needs to emphasize on keeping the family together and doing things as a
family
Ensure the application has easy to understand information about Steel City Pizza as 72% of
Gen Xers use online resources to research products or companies
Ensure the application has an intuitive ordering process as 81% of Gen Xers have made
purchases online
Gen Xers use review sites like Yelp and Urbanspoon and social media platforms to determine
where to eat, as such, a unified front with Steel City Pizza’s Facebook accounts and the
application is needed
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App Design for Generations (conclusion)
Gen Y (Association Adviser, 2014):
Will use the app for finding quick information
90% send/receive texts, text campaign may be very effective
Successful app is one that is useful, entertaining, and convenient
If the brand’s personality is social, Gen Y is open to conversation with the people behind it
75% access the internet via their phone
Mobile click-through rates are 34% higher when matched against other platforms
Visually-pleasing and organized format that is appropriate for a smaller screen
Easy to tap around and navigate
Consistent with the website
Tourist (tripadvisor, 2013):
Menu and location capabilities is a must for an application with this market segment
The ability to see reviews from the app can help ensure customers from this market segment
Tourist are specific on the functions and usability of the app
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App Developer Search
After determining what was needed in a smartphone application for Steel City Pizza, three local
application developers were selected. We met with them to discuss the potential relationships they could
have with Steel City Pizza. The three application developers we chose were: BlueKey, netGALAXY, and
SPARC.
BlueKey
We met with John Mulvey, Director of Business Development for BlueKey. BlueKey can build a
smartphone application for $15,000 with a 10% support fee. The turn over time for the product would be
three months, and the main concern was the lack of responsiveness in Steel City Pizza’s ordering
webpage.
Because Steel City Pizza’s webpage is not responsive, the page itself will not fix exactly on the
customer’s phone screen; making it unappealing to most users. BlueKey stated they can change the
webpage to be responsive for approximately $12,000-$14,000.
SPARC
SPARC’s Director of Sales, David Shatz, held a meeting with us and stated SPARC can build an
application for $20,000-$30,000 with a quarterly retainer fee. Turn over time would be depended on the
workload SPARC would have at the time, but Shatz stated it could anywhere between 6 weeks to 6
months. SPARC stated they can enable SDK connections to connect to Steel City Pizza’s POS system to
create their own ordering page; however, NCR’s Aloha system is a closed system and will not open their
network to third parties.
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NetGALAXY
Then we met with Glenn Rourk, Account Executive with netGALAXY. Rourk stated that
netGALAXY could create the components needed for a Steel City Pizza app for $199 down for the
publishing fee with $69 per month for service and support. This totals approximately $1,027 per year.
The service fee includes training and support regarding actual upgrades from Apple and Android to
training on netGALAXY’s cloud system, where management of Steel City Pizza can update the
application’s content in real-time. Turn over time is approximately five to seven business days, and their
products involve turnkey solutions to where the business can run their application seamlessly with other
marketing initiatives.
And the Winner Is…
From our meetings with the three application developers, we decided that netGALAXY was the best
developer for Steel City Pizza. Not only was netGALAXY the most cost effective developer, they were
also the most professional. They answered all of our questions and addressed our concerns. With their
turnkey solutions and flexibility with the content for the application, netGALAXY is the application
developer that can reach all of Steel City Pizza’s market segments with their wants and needs in mind.
Conclusion
After careful research of Steel City’s demographics and survey results we felt comfortable with the
recommendation of an app. Steel City’s target market along with the other markets mentioned will all
benefit from the use of this app. In order to make this app a valuable marketing tool it must also be used
in conjunction with social media. These two things together should increase the top of mind awareness in
Steel City’s customers. It is important to remember that these tools are only effective when used properly.
It would be money well spent to appoint or hire someone whose job it is to manage them.
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Tables
Table 1
North Charleston Mt. PleasantFree food (Loyalty Tab) Don't add auto gratuity. I would leave more (if restaurant didn't).More food and drink specials (Calendar/Push Awning outside for rain and shade. Outdoor TV. Duplicate Keith $1 Beer (Calendar/Push Notifications) Go-go girls (LOL)Gluten free (Menu) Take out stuffed animal game. (App Arcade)More personal bartenders Live music. (Calendar/Push Notifications)Have wifi password on menu Mo' free stuff? (Loyalty Tab)
Heart healthy options (Menu)Free food!! Or let Keith perform his juggling act in a speedo! (LOL) Seriously, you will have to close up to get rid of us. Been coming 5 years. (Loyalty Tab)
Tie up my kids (App Arcade)
North Charleston Mt. PleasantBartenders Trivia Night - 7 (Calendar/Push Notifications)Ladies Steelers Fan - 1 (Calendar/Push Notifications)Bar show (Calendar/Push Notifications) Wanted Pizza -1Staff Saw while driving - 1Pete Arcade - 1 (App Arcade)Visiting Consistency - 1Hotel Concierge
North Charleston Mt. PleasantNon-disclosed Reason - 8 First Time Visit - 5First Time Visit - 5 Non-disclosed Reason - 2Non-local - 1 Non-local - 12+ visits p/wk. - 1 2+ visits p/wk. - 1
North Charleston Mt. PleasantBank-1 Grew up in vicinity - 2Non-disclosed-1 Went to Giuseppes - 1
How did you hear about us? (Other)
Frequency of Visits (Other)
Customer Feedback - How can we make your dining experience more enjoyable? (Other)
Why did you dine with us? (Other)
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Table 2
Six things businesses can post on social media to engage their customers (He, 2013)
Themes ExamplesPost pictures Halloween photos, specialty pizza photos, special
event pictures, etc.Post questions to get input from customers “What is my favorite part of Halloween?” “What
is the best time for pizza?”“What do you do for weekends?” etc.
Post contest and game information Game 2 of the World Series is tonight!Post company and community activity Store grand opening, School Choice FundraiserPost thank you and appreciation information We just want to say a big “THANKS” for liking
Steel City. You guys are awesome! THANKS to the best fans on Facebook We “LIKE” you too!!
Post deal, promotion, reward and give-away information
Monday –Wednesday deal: just $7.99Trivia Night
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GraphsThe following pie charts show the percentage of customers by age range for each Steel City location.
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GraphsThe following pie charts show reasons customers gave for dining at Steel City at each location.
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Graphs
The following pie charts depict the frequency of customers’ visits by location.
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GraphsThe following pie charts cite customer reasons for visiting Steel City by location.
These were the answers to the question, “How did you hear about us?”
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