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2. INTRODUCTION

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2. INTRODUCTION

Hell Pizza is a New Zealand based pizza chain operator that is headquartered at Wellington in NZ. The first store of Hell Pizza was established at Kelburn squash club in 1996 that was serving university students. Hell until now remains the strongest territory at Wellington in New Zealand. All major cities are covering by 64 Hell Pizza outlets countrywide after 24 years of establishment (Hell Pizza, 2020). At the same time, Hell has also developed the business at the international level by franchising in Australia in 2008. The first international franchise was opened in Brisbane, Australia and now it has 9 stores in Australia and Ireland. Hell Pizza is now able to find out a track of business development from small local stores to the internationalization (Hell Pizza, 2020).

VISION AND GOALS

The key vision of Hell Pizza is to offer service and fast-food Pizza with the best quality in the all over regions of New Zealand. It wants to be the most popular company in the world which delivers fast-food Pizza. Nowadays, Hell has a higher focus on the establishment of more stores in the world’s other different areas with continuing high customer satisfaction levels in the fast-food industry. The goal of Hell Pizza is to increase the profit and become the best fast-food company (Hell Pizza, 2020).

EXISTING PRODUCT LINE: Current menu of Hell Pizza store includes standard pizzas, popular pizzas, gourmet pizzas, dessert pizzas, salad, pasta, dip, and beverage. Some of their pizza names are Lust, Greed, Envy, Wrath, Ruben Pizza, The Unholy Donuts, Lust Deluxe, and many more. Moreover, it also sells vegetarian pizzas and Vegan Pizzas (Hell Dentsu, 2020).

CURRENT POSITION: In order to gain competitive advantage, Hell Pizza keeps on offering new pizzas to satisfy the customers efficiently and effectively so that the customers become loyal to Hell Pizza. Even the company website is quite attractive and the name of the products of the company is related to the company name Hell (Concentrate, 2008).

VALUE PROPOSITION: Hell spotted in the market due to strong brand awareness and awesome taste and quality of Pizza products. In addition to this, it can be said that the high value of Hell is based on the controversial promotional activity and innovative servicing of pizzas to the customer that represents the company value. The business expansion process of Hell Pizza also makes it competitive in the market as well as focus on quality also helps to be competitive (Hell Pizza, 2020).

 

 

3. CLASSIFICATION OF E-BUSINESS

3.1 E-business Classification

  • Business to business (B2B): B2B transactions tend to happen in the supply chain, where one company will purchase raw materials from another to be used in the manufacturing process. Hell Pizza is using it to buy raw material for its business from other business-like vegetables, sauces, bread, beverages, different types of meat, packaging material, and so on. Therefore, all these businesses that provide raw materials are the suppliers to Hell Pizza.
  • Business to customer (B2C): B2C transactions happen between a business and an end consumer. Hell Pizza uses this process by selling products directly to consumers on the website. Here, Hell Pizza does not need a third party to do transactions between Hell and its customers. Customers can also customize the pizza as per their needs (Hell Pizza, 2020).
  • Customer to business (C2B): It includes the transactions that happen between the customers and the business where customers sell the products to the company. Hell Pizza is not buying anything from the customers.
  • Customer to customer (C2C): When the transaction occurs between the customers to customers. It cannot be used by Hell Pizza as it does not allow its customers to sell the company products to the other customers. Moreover, the company’s products cannot be re-sell (Hell Pizza, 2020).

 

3.2 Electronic Business Models

  • REVENUE MODEL: This model focuses on generating revenue for the company online by focusing on sales, advertising fees, transaction fees, affiliated fees, and so on (Carr, 2020). Hell Pizza includes sales where the company sells the products to the customers using the website and mobile application of Hell Pizza.
  • ONLINE DIRECT MARKETING: Hell Pizza is using this model as the company offers its goods and products on websites or mobile apps to the customers who make the payments online by sharing their personal information with Hell.
  • ELECTRONIC TENDERING SYSTEMS: It is an online place where many sellers do the online bidding to sell the products and services to the buyer at the lowest rate. Hell Pizza is not using this system (Pepper, 2020).
  • ELECTRONIC MARKETPLACES: It is a place which includes many sellers and many buyers who do the trading. Hell Pizza does not use this system too.
  • VIRAL MARKETING: When the company does the online advertising of the products and services which will help to generate revenue and do brand promotion by posting influential and attractive content so that customers will suggest to the other people. Hell Pizza is using this model as the company does the marketing on social media such as Facebook, Twitter, Instagram, and YouTube where the message spreads very fast (Baryesvich, 2019).
  • SOCIAL NETWORKING MODEL: There are ample social media sites like Facebook, Twitter, Pinterest, or Instagram, blogs where the company creates the personal page and puts the messages to interact with the customers. Hell Pizza is using a social networking model (Dubois, 2010).

 

3.3 Benefits, Limitations and Impact of E-business

Benefits of E-Business to Hell Pizza  

  • Customers of Hell Pizza do not have to worry about the timings as the website is provided to them so they can place an online order.
  • Hell Pizza does not need to hire a cashier because shopping cart software lets customers check out themselves.
  • E-business allows Hell Pizza to gather, synthesize and use customer information and data to track their buying habits more carefully which offers the opportunity to target marketing and promotional efforts in a more accurate way (Richards, 2017).

 

Limitations of E-Business

  • Some hackers have stolen customer information from the company database. Even though Hell Pizza provides a privacy protection policy yet there are some loopholes like if customers share their personal information with others then the company will not be responsible. Therefore, it could lessen the trust customers have in the company.
  • Hell Pizza offers a lot more information about a product or a service than a physical store still it does not allow customers to experience any of it before buying (Pepper, 2020).

Impact of E-Business

  • E-business helps Hell Pizza to offer better help to its customers such as placing an online order, self-check-out, or any further help if customers need it.
  • E-business will extend the new competition to Hell Pizza because, in this digital age, most of the company sells the products to customers on the website.

 

3.4 Major Drivers of E-Business

  • Customers can customize the products as per their need on the Hell Pizza website such as what ingredients they want in their pizza.
  • The website provides every detail about the products of Hell Pizza which help customers to make the buying decision.

 

 

4.  E-MARKETPLACES MECHANISMS AND TOOLS USED BY HELL PIZZA

4.1 E-Market Components and Participants of Hell Pizza

  • CUSTOMERS: Hell Pizza has many customers who buy the products from the website.
  • SELLERS: Hell Pizza gets the material for the manufacturing of the products and then sells on its website to the customers.
  • PRODUCTS AND SERVICES: The Company offers a variety of pizzas to the customers on the Hell Pizza website (Pepper, 2020).
  • INFRASTRUCTURE: It involves hardware
  • FRONT END: The part of the Hell Pizza website which can be accessed by the customers such as electronic catalog, search engine, payment gateways, and electronic cart.
  • BACK END: It enables Hell Pizza to help in stock organization, purchasing raw material from suppliers, processing of payment, packaging, and delivering of the order to the customers (Hell Dentsu, 2020).
  • INTERMEDIARIES: It acts as a link between the business and customers. Hell pizza does have a middleman to help the company in maintaining the relationship with the customers.

 

4. 2 Customer Interaction Mechanisms

  • STOREFRONTS: It is a website of the Hell Pizza where the company sells goods and services to the customers. The following are the mechanisms used in the Hell Pizza website.
    1. Electronic catalog- It presents the products of Hell Pizza on websites.
    2. Search engine Hell Pizza’s search engine helps to track the location of the nearest store when customers order the pizza from the website.
    3. Electronic cart An order-processing technology that allows customers to accumulate items they wish to buy before making the payment.
    4. Payment gateways- Customers allowed using both debit and credit cards at the time of payment during buying from the Hell Pizza websites (Richards, 2017).
  • EMAILS: It is a shopping site that offers products from many companies. Hell Pizza does not sell its products on any other website.

 

5.3 Types of Portals

  • CORPORATE PORTALS: Corporate portal is the central internal workplace of all employees in a company. It reduces the time required to search for and perform tasks and increases efficiency for the employees of the Hell Pizza. It is used by internal employees of the organization to solve customer service.
  • PUBLISHING PORTALS: Hell Pizza publishes information about the company’s products and services onto the website such as online articles, magazines, or news feed.
  • PERSONAL PORTALS: It allows recording the information about you such as credit card details, banking statements, or your browse history of the products. Hell Pizza uses this portal as it asks to log in on a website to place an order and for that customers need to fill personal details.
  • MOBILE PORTALS: It allows you to directly communicate with the enterprise without going to the search engine. Hell Pizza has a mobile app named HELL PIZZA. It can be downloaded from the App Store, Google Play, and play store (Nadkarni, 2020).
  • VOICE PORTALS: A voice portal uses advanced speech recognition technology and provides access to information on the Internet. Key components of most voice portals are speech recognition, text to speech, and information aggregation. Hell Pizza is not using this portal at the moment.
  • KNOWLEDGE PORTALS: It represents a website that provides a single point of access to applications and information normally held in documents and databases, to enable the CEO of Hell Pizza to get an overview of the business. It helps the CEO to make plans for the next coming years (Mitchell, 2018).

 

5.4 Role of E-Auction

 

An E-auction is an online place where a transaction occurred between the auctioneer and the bidders.

 

  • BENEFITS OF E-AUCTION: The buyers and sellers have the benefits to participate in online auctions from anywhere at any time. The participants do not need to present physically for the auction. Furthermore, bidders can research the prices of the products and bid for the products which are affordable to them (Flaherty, 2016).

 

  • LIMITATIONS OF E-AUCTION: E-auction is less secure as there is no restriction on the user login to participate in the auction. There is also the possibility that the details of the buyer’s credit card information can be stolen at the time of processing of payment (Fraile, 2020).

 

It does not apply to Hell Pizza as they are not selling any kind of products which can be sold through E-auction. The products sold by the company are fast food so e-auction is not a feasible kind of mechanism for Hell Pizza.

 

 

7. SCOPE OF RETAILING IN E-BUSINESS

 

7.1 E-Retailing Growth in New Zealand

When a business has been selling the goods and services online directly to the customers without the need for a middleman when it comes to e-retailing. The following data shows the growth of e-retailing in New Zealand in 2018.

  • The annual spend on e-retailing is $4.2Billion.
  • The percentage of shop online growth is 16% in the year 2018.
  • 8 million of New Zealand people like to buy online.
  • $4.8 Billion spent by New Zealand people who like to buy from the physical store.
  • The growth rate of 19% domestic online shopping in New Zealand whereas there is a 10% increase in buying from international shopping sites.
  • 45% of the online sales seen in the clothing and footwear sector because of the” Buy Now and Pay Later” trend (Hell Dentsu, 2020).

 

https://thefulldownload.co.nz/sites/default/files/2019-06/full_download_2.pdf

 

7.2 E-Retailing Business Models

  • DIRECT MARKETING BY MAIL ORDERS: This model used by businesses that do online business while maintaining the traditional method of doing business without any middlemen such as a customer placing an order to the company telephone, mail, fax, electronic shopping cart, or email. The delivery of via mail order is done through a common carrier. Hell Pizza is using this e-retailing model as the customer can make a call to the store, give orders from a website, or by using a mobile app, and then the company delivers the products to the customers (Hive, 2019).
  • PURE PLAY E-TAILERS: When the transaction of the businesses only happens online without having any physical presence. Hell is not following this model of e-retailing as it also has stores in various places and countries along with having a website where the company sells the goods to the customers.
  • CLICK AND MORTAR RETAILER: when the company does both online and offline trading of the products and services with the customers. Hell Pizza is using this model as it offers pizzas on the websites, mobile app as well as on store (Keller, 2009).

 

7.3 Impact of Online Services in Different Sectors

  • BANKING: E-banking allows customers of the bank to conduct all the transactions related to money without the need of physical presence to the banking institution. Hell Pizza uses this service to pay the salaries to their employees and allow the customers to pay for the order through debit or credit on the website and mobile app.
  • TOURISM AND TRAVEL: It allows people to plan the holidays using online services. There is no need for travel agents in the digital age. Hell Pizza can advertise the company on the website which offers services for the tourism sector so that tourists can choose the place to eat.
  • REAL-ESTATE: It helps the people to check and compare the prices of the land and property online. Hell uses it when the company decides to open a new store in a new place which helps the company to check the prices of the property and it helps to make decisions whether to buy it or rent it (Keller, 2009).
  • HEALTH: It helps to get information about the hospital, buy medicines by comparing prices of different stores, and to get insurance policies after comparing multiple types of policies using the internet. Hell uses online health services to get insurance for the employees.

 

7.4 Role of Personalisation, Loyalty, Satisfaction, and Trust in Hell Pizza

  • PERSONALISATION: Hell Pizza tracks the activities of the customers on social media, websites, and mobile apps to understand the customer’s behavior and preferences. Moreover, when customers use the website and mobile app to place an order then they need to fill the email address, contact, and card details at the time of payment.
  • SATISFACTION: Hell Pizza provides detailed information about the products on the website and the way the company protects the customer’s details at the time of placing an order which satisfies the customers.
  • TRUST: When people start to understand Hell Pizza and are satisfied with the company’s products and services then it leads to building trust. Hell Pizza was successfully able to ensure the protection of the customers.
  • LOYALTY: Hell Pizza does the social responsibility towards the people of New Zealand and in return, customers also think to be loyal customers and not to shift to the other company

 

 

References

Baryesvich, A. (2019). Top 19 Instagram marketing tools to use for success. https://www.searchenginewatch.com/2019/04/16/top-instagram-marketing-tools/

Carr, C. (2020). 3 marketing campaign goals every company should have. https://farotech.com/blog/marketing-campaign-goals/

Concentrate. (2008, December). Hell of a marketing tale. https://www.concentrate.co.nz/blog/hell-of-a-marketing-tale

Dubois, L. (2010). 1 best web analytics tools. https://www.inc.com/guides/12/2010/11-best-web-analytics-tools.html

Flaherty, K. (2016). How channels, devices, and touchpoints impact the customer journey. Nielsen Norman Group, Fremont, CA15. https://www.nngroup.com/articles/channels-devices-touchpoints/

Fraile, A. (2020). What is viral marketing? advantages and examples. https://www.cyberclick.es/numericalblogen/what-is-viral-marketing-advantages-and-examples

Hell Dentsu. (2020). How we made sense of the most anarchic brand in New Zealand. https://bcfdentsu.com/hell-pizza/

Hell Pizza, (2020). The history of Hell Pizza. https://www.stuff.co.nz/life-style/food-wine/78790234/the-history-of-hell-pizza

Hive, T. (2019). 9 sales promotions examples. https://thrivehive.com/sales-promotion-examples/

Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of marketing communications15(2-3), 139-155. https://www.academia.edu/download/56198864/Building_strong_brands_in_a_modern_marketing_communications_evironment_-_Keller.pdf

Mitchell, E. (2018). Data security: How to keep your customers’ information safe. https://medium.com/the-mission/data-security-how-to-keep-your-customers-information-safe-a3150510a7b7

Nadkarni, A. (2020). What it takes to run Hell pizza’s most successful store. https://www.stuff.co.nz/business/118912930/what-it-takes-to-run-hell-pizzas-most-successful-store

NZ, P. (2020). Contactless delivery- helping you feel safer. https://www.pizzahut.co.nz/home

Pepper, S. a. (2020). Hell Pizza. http://saltandpepperpr.com/project/hell-pizza/

Richards, R. (2017). 8 Inspiring Interactive Marketing Campaigns (For Every Budget & Team Size). https://www.business2community.com/marketing/8-inspiring-interactive-marketing-campaigns-every-budget-team-size-01866460

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