What is the purpose of conducting a SWOT analysis? In your opinion what are TPC's four (4) most important strengths? Use four (4) specific examples from the case study provided to support your answer.

Tofino Pizza Company (TPC)

Since opening its first location in beautiful Tofino, British Columbia in 1989, Tofino Pizza Company (TPC) enjoyed tremendous growth across Western Canada. By the end of 2021 the restaurant chain had 130 locations in British Columbia, Alberta, Saskatchewan and Manitoba, serving over 6.5 million guests a year and becoming a leader in the casual dining concept category.

TPC's success was the result of careful strategic planning, which proved especially valuable in the province of Alberta.TPC pricing was comparable to other casual dining restaurants.A family of four could enjoy a meal complete with appetizers, 4 individual size pizzas, drinks and servings of TPC branded ice cream for just under $100.

The TPC Family Fun Meal, offered on the first Friday of each month, was instituted in early 2021 to help stimulate business during the pandemic, it included special pricing of $79 designed to appeal to families with 2 or more children under the age of 12.The unlimited soft serve ice cream was very popular with the kids!

TPC customers were given the option to access surveys upon completion of their meal.Customers were asked a series of questions relating to their dining experience and the quality of TPC's food and service.Survey results showed that 86% of families thought the TPC restaurant experience was friendly and efficient.However, older customers (those over 50 years of age) dining without kids were sometimes critical of the West Coast theme and the type of service provided.One older customer wrote "I like the food at TPC, but the restaurant is too noisy for me".

TPC restaurants featured West Coast themes of surf, sand and natural beauty.Servers and other staff dressed in casual west coast inspired uniforms with the TPC logo prominently featured.One satisfied young customer in her twenties commented during a depth interview, "it feels like I just walked into a surf shop in Tofino and the food is good too".

Many restaurant chains had attempted to take concepts that worked elsewhere in Canada, drop them into Alberta, and then expect to do well. Rarely had the expected success occurred, but TPC provided an example of how good things can happen for companies that focus on building a strong marketing strategy.

Recognizing that the culture in Alberta is different from the other Western Canadian provinces, TPC set up an office there in 2009, a full 18 months before the first restaurant was opened. That time was spent hiring staff who knew the local environment and completing marketing research to better understand the market.TPC also was beginning to use data analytics.

TPC's marketing research revealed how the Alberta market was different, and this led TPC to develop a marketing strategy tailored for the market.For example, TPC's focus group research had revealed that Albertans prefer to order separate items off the menu for their appetizer, main course and side dishes, rather than order the fixed combo plates offered in BC, Saskatchewan and Manitoba. A "frequent pizza plan" was introduced in 2013 to reward customer loyalty and provided a way to introduce existing customers to TPC's new product offerings.The plan was popular with families and younger consumers.In addition, TPC's friendly serving staff were trained to upsell its customers when taking dinner orders.For example, suggesting the purchase of an extra-large size pizza instead of a large size.This approach was successful and resulted in customers spending an average of 10% more per order.

TPC's sales history data revealed that beer sold more than wine in its Alberta locations, so the standard selection of eight beer varieties was extended to 20. Another 12 locally made Alberta craft beers were added for a total of 32 different varieties of beer on the menu.TPC's records also showed that beer sales increased by 18% on nights when there were NHL hockey games displayed on the big TV screens located in the bar area of the restaurant.Hockey fans, mostly young men aged 19 to 29, liked to order pizza and beer while watching a game.Hockey Night in Tofino became a tradition!

Pizza is made differently in Alberta; cheese goes on twice - on the bottom and on the top - not just on the bottom like the other Western provinces. This version was dubbed "TPC's Cheesy Chuck Wagon Style." Pizza toppings which are traditional in Alberta but unusual in other provinces (short ribs, pulled pork and extra spicy hot sauce) were also added to the Alberta menu.

Another addition to the menu in 2020 was the "Meatless Marvel", a pizza targeting the growing number of vegetarians in the Alberta marketplace.The largest concentration of vegetarians lived in the urban centres of Calgary and Edmonton.Sales of the Marvel were not strong in smaller communities.The marketing team also planned to offer a "Very Vegan" pizza in early 2022 - a test kitchen located in one of the Edmonton locations was used as part of the new product development process.A consumer behaviour report purchased by TPC indicated a growing demand for gluten free options in Alberta.As a result, TPC also planned to introduce a "Gotta Be Gluten-Free" Pizza in 2022.

A local Alberta advertising agency was hired. It created a series of commercials for Alberta TV and streaming online that featured a cowboy on his horse in popular Alberta tourist locations, asking folks for directions to the closest Tofino Pizza Company location.

As of February 2022, TPC had 35 restaurants in Alberta and the company was well positioned for future growth.Seven of the locations in smaller centres (fewer than 10,000 residents) were struggling to gain customers.Those in larger centres were thriving.In January of 2022, TPC's Marketing team committed to a growth strategy with the objective of growing revenue by an average of 10% per year for the five years from 2022 to 2026.Jenni Lee, a recent BBA graduate from Langara School of Management in Vancouver was promoted to be TPC's Director of Marketing, Alberta.Her role was to develop and implement the Alberta growth strategy.She knew that growing TPC's Alberta business was possible and that the objective of 10% annual growth fit the SMART model she had studied in MARK 1115 at Langara.

On her first day as Director of Marketing, Jenni performed a SWOT analysis to assess the situation.She looked at both internal and external factors.She concluded that TPC's greatest strength in Alberta was its strong focus on customer wants and needs.The Alberta marketing team had done an excellent job understanding the market.This understanding was reflected in a product strategy that focused on the wants and needs of TPC's Alberta customers.TPC's greatest weakness in Alberta was its branding and image.The Tofino Pizza Company brand was perceived by some Albertans living in small towns (population less than 10,000) as being "West Coast" not "Western Canadian" or "Canadian".Some consumers, 50 years and older, confused the TPC brand with KFC.

Jenni noted that data obtained from Statistics Canada revealed a possible opportunity associated with a growing segment of the market in Alberta of new residents.These new Alberta residents were mostly young, well-educated and appreciated good food and friendly customer service.Some of these new residents came from other provinces in Canada to work in the growing Alberta economy.Others were completely new to Canada and were looking for ways to build a new life in a new country.They wanted to find ways to "be more Canadian".These new groups of potential customers were growing and could be a source of TPC's future growth.

A 2021Industry Report ("The Pizza Battle of Alberta") obtained online by Jenni from the Langara College Library revealed a possible threat from a number of highly recognizable national pizza restaurant chains including Boston Pizza, Dominos and Pizza Hut. TPC's customer interviews indicated a growing consumer preference towards health and wellness.TPC's products were delicious, but pizza was perceived by some older customers as being unhealthy.

Another potential issue was that restaurant operating costs in Alberta were higher than those in other provinces due to higher employee wages.Jenni wondered if changing Alberta food safety regulations were significant - the certification process was time consuming and important for continuing operations.Canadian Restaurant Magazine, a respected industry publication, reported in early 2022 that online ordering and curbside pickup technologies were important industry trends.Canadian Business Magazine reported that competitors like Dominos were investing heavily in this technology and were even working with a major auto manufacturer on testing driverless pizza delivery in the US.

Jenni looked over the results of her SWOT analysis and considered TPC's future in Alberta.It was a good thing that she had a strong grasp of marketing strategy.She would need this knowledge to help guide TPC to continued success.