Originally Posted by
dracir1
Good example but the pizza "market" is still the pizza market. Little Ceasar's offers a generic cheese or peperoni for 1/2 the cost of others and sell quite a bit of it.
EVERY market has bargain hunters - and there are usually more of those than any other kind. But they are particular (especially this new generation). Those who can provide the bargain but also cater to the nature of the customer in a way that brings them back is what is necessary.
Little Ceasar's doesn't pay their pizza makers 40% less. And, they've found a way to get people to still want to buy.
Little Caesar’s finds cost savings through cheaper/lower quality ingredients so that they can sell a cheap pizza and still make a small profit. Where do you suggest they find those cost savings in this industry to enable the ULCC model to work? They’re not going to get cheaper aircraft, gate space, fuel, landing fees/slots, maintenance……..