PLANNING FOR PIZZA

McKing Corporation operates fast-food restaurants in 50 states, selling hamburgers, roast beef and chicken sandwiches, french fries, and salads. The company wants to diversify into the growing pizza business. Six months of tests revealed that the ideal pizza to sell was a 16-inch pie in three varieties: cheese, pepperoni, and deluxe (multiple toppings). Research found the size and toppings acceptable to families as well as to individuals (single buyers could freeze the leftovers), and the price was acceptable for a fast-food restaurant ($7.99 for cheese, $8.49 for pepperoni, and $9.99 for deluxe).

Marketing and human resources personnel prepared training manuals for employees, advertising materials, and the rationale to present to the restaurant managers (many stores are franchised). Store managers, franchisees, and employees are excited about the new plan. There is just one problem: The drive-through windows in current restaurants are too small for a 16-inch pizza to pass through. The largest size the present windows can accommodate is a 12-inch pie. The managers and franchisees are concerned that if this aspect of operations has been overlooked perhaps the product is not ready to be launched. Maybe there are other problems yet to be uncovered.

1			Discussion Questions What mistake did McKing make in approaching the introduction of pizza?
2			How could this product introduction have been coordinated to avoid the problems that were encountered?
3			If you were an executive at McKing, how would you proceed with the introduction of pizza into the restaurants?