Question

SERVICE MARKETING

Case Study

Vick’s Pizza Corporation

Speed had always been a key strategic thrust for Vick’s Pizza, which was used the slogan, “It’s quick at Vick’s.” The company restaurants not only prepared pizza rapidly but also delivered it quickly. The company’s promise to home deliver a pizza within 30 minutes of a phone order or to cut $3 off the price had boosted it from a single pizzeria 20 years earlier to the status of a national chain with thousands of outlets and over $3 billion in sales. But now a growing number of critics were saying that, in Vick’s case, at least, speed was a killer. The company’s own records indicated that during the previous year, accidents involving Vick’s drivers had cost 20 lives, 18 of them during pizza runs. Randell Meins, Vick’s vice president for corporate communications, stated in a television interview that the company had always encouraged drivers to take care, had never penalized late drivers, was urging franchise owners and store managers to promote safe driving and would soon implement a new safety course for all Vick’s drivers. Meins cited the owner of several franchises in Ohio, who had declared: “We never ask a driver to break the speed limit. We never want them to do anything unsafe on the road. And we always tell them to fasten their seat belts.” Although acknowledging that “even one death is too many,” Meins noted that with 230 million pizzas delivered last year, this works out to only one death per 11.5 million pies. “We are not minimizing the deaths by any means,” Meins said. “But that’s what the mathematics show.” Martina Gomes, director of a nonprofit safety research and advocacy group, expressed outrage over the Vick’s statistics. “Great!” she said. “Now we know the value of the life of a driver – 11.5 million pizzas.” Gomes offered her own statistical analysis. Vick’s, she said, employed some 75,000 part-time drivers. Assuming that this amounted to the equivalent of 20,000 full-time drivers – four for each of the 5,000 Vick’s outlets – she claimed that 20 deaths in one year meant that the company’s drivers faced a death rate between three and six times higher than that in the construction industry and twice as high as that of miners. As part of her research, safety advocate Gomes had interviewed a number of current and former Vick’s employees, several of whom preferred to remain anonymous for fear of reprisals from the managers at the stores where they worked. Gomes claimed that her research showed that “the vast majority” of the company’s drivers were under 18. Vick’s sent a letter to its corporate-owned stores and its franchisees, stating that it was company policy to hire drivers 18 or older. This directive, however, was not binding on the franchisees, who operated some 65 percent of all Vick’s restaurants. The newly filed lawsuit, together with continuing criticism of the company, had been widely reported in the media. Victor Firenze, chief executive of Vick’s Pizza Corporation and his colleagues were worried. Historically, the company had enjoyed a positive image and a reputation as a generous donor to local community activities. “We definitely have a perception problem,” said Meins. “We are taking a lot of heat right now.” But Harry Carpaccio, the senior vice president of marketing, warned against taking precipitous action. “The last thing we need to do is to panic,” he declared. “The 30-minute guarantee is very, very important to our customers. Sales could be hard hit if we drop it.”

What is Vick’s Pizza major competitive advantage for its service? How important is that competitive advantage to the company?

2. What is the problem now facing by Vick’s Pizza

Answer 1

1.

What is Vick’s Pizza major competitive advantage for its service? How important is that competitive advantage to the company?

Vick’s Pizza’s major competitive advantage is the 30-minute delivery promise. This shows that the brand delivers the pizzas in a speedy and quick manner and it has given an edge to the company in this market. This competitive advantage is important because-

• To maintain the current position
• To grow
• To increase sales
• To maintain customer satisfaction

2.

What is the problem now facing by Vick’s Pizza?

The problem that Vick’s Pizza is facing is the multiple deaths of their delivery people due to unsafe surroundings, speed limit, and many such reasons. This can affect the sales of the company and have a negative impact on their customers as well.