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1 | P a g e Eagle Boys Pizza, Australia The trademark application for the pink glow of Eagle Boys Pizza stores (IP Australia Trademark No. 585856) In 1986, Tom Potter was 23 and without a job. Having left school at the age of 15 to begin his apprenticeship as a baker, he had travelled through different cities in his native Australia – Alice Springs, Melbourne and Adelaide – working in a variety of different food-industry related jobs, but could not seem to get his career as baker off the ground. One day he decided to take a chance and try his hand at opening a pizza restaurant. With very little capital he secured a partner (his mother Barbara) and in 1987 opened the first Eagle Boys Dial-A-Pizza Australia Pty Ltd (Eagle Boys) restaurant in Albury, New South Wales. Using radical, innovative and what some may describe as unusual business and marketing tactics, Mr. Potter took that single store and turned Eagle Boys into one of the largest pizza restaurant chains in Australia and New Zealand. Research and development New restaurants come and go every day, and if it were not for Mr. Potter’s unique research and development (R&D) initiatives, Eagle Boys may have never made it past that first store in Albury. Mr. Potter’s extensive experience in flour milling technology and his background in bakery was more conducive to opening a successful bakery, not a pizza restaurant. However, it was this knowledge that he drew upon to make Eagle Boys an entirely new and unique concept. The first restaurant was set up like a bakery in the back and a pizza shop in the front. In the bakery section, Mr. Potter tapped into his bakery skills to create a variety of pizza dough made with a baker’s touch to be used as the basis for the store’s pizzas. From thin to multigrain pizzas, the “bakery in a pizza shop” idea was turning out products – all made with fresh ingredients – that were very different from what was usually available to customers. Eagle Boys advertised their products as semi- gourmet pizzas that were different from the larger chains, yet cheaper due to the high production output. 2 | P a g e This successful idea caught on, and the first store in Albury was quickly turning a handsome profit. Within less than a year, Eagle Boys opened up two more stores in the neighbouring cities of Wagga and Dubbo in the state of New South Wales. As the company sustained its growth, it put a lot of energy into researching ways to meet consumer demands in different regions. With stores opening up in rural, suburban and urban areas throughout Australia, the company found that no two locations were alike and that one blanket business model could not be used. It therefore developed five different store models that would work in different locations, and which became the foundation of the company’s early growth. One particularly successful model was the development of a drive-thru pizza store in 1999, a concept that was unheard of at the time. Australia’s first drive-thru pizza store proved immensely popular at specific Eagle Boys locations, as people could quickly grab a delicious and unique meal, that fit into their busy lifestyle no matter where they were headed. Expanding on this quick pizza delivery system, the company launched the Eagle Boys Pizza Express Store shortly thereafter, which was designed to provide quick service pizza out of a small location in highly populated foot traffic areas. With this model, the company specialised in two-minute “express” pizzas sold in four different varieties (which were the company’s most popular pizza varieties) between 5:30 and 8:00pm. Eagle Boys achieved this by constantly remaking these four varieties and keeping them in a warmer for sale up to eight minutes after they were made. This ensured that pizzas could be delivered quickly, but were also guaranteed to be fresh. The first Express Store was opened in 2003 at Brisbane’s Suncorp Stadium, and similar stores opened at Brisbane’s domestic and international airports the following year. It proved to be very popular, and new locations started to spring up at airports, shopping malls and pedestrian malls throughout the country. The immense popularity of the Express Stores led to the launching of Eagle Express menu items at all Eagle Boys locations in 2005, and many locations were generating up to forty percent of their sales from these products. The company refined the model further with the development of a six-inch pizza baking system designed especially for Express Stores. This system allowed the company to produce pizza bases off site with the highest level of consistency and quality. The pizza bases were snap-frozen (partially baked then rapidly chilled) for delivery to each store, and once thawed they were simply topped as required and baked in approximately four minutes and thirty seconds. As the company started to experience increased competition, it had to do something to differentiate its express pizza service from other companies offering similar products. Eagle Boys went back to the drawing board, and in 2008 it developed a popular offshoot menu for Eagle Express stores: “Ready, Fresh Go!” The menu was changed to offer only three pizza varieties – two of the company’s most popular and a manager’s special – and the name reflected the fact that while it was an express delivery system, the pizzas were made fresh and held in specially designed slow-cook ovens that ensure their freshness. In 2009, the company evolved further by creating a “Ready-2-Go” line of pizzas, which was made available in select stores. The company’s dedication to research and response to consumer trends and the development of new, quality products culminated in the largest revamp of the Eagle Boys menu in its history. Launched in early 2010, the new menu featured a multitude of new items. Apart from new pizzas, novel items such as a chocolate fudge mousse dessert, pasta dishes, additional side dishes and drinks were introduced. Customers responded with a resounding satisfaction, and throughout 2010, Eagle Boys enjoyed one of its biggest increases in sales in the company’s history. “This industry recognition is testament to our focus on responding to customers’ needs and developing a new menu which focuses on quality ingredients and unbeatable taste,” said Ms. Christine Hooper of the Executive Marketing division. Creating innovative and unique products and business models was what propelled the company to success, and it continued to be a mainstay of Eagle Boys’ activities. From ground breaking drive-thru pizza to unique store models and ordering via the Internet, Eagle Boys continued to develop new and accessible ways for its customers to purchase pizza, no matter where they might be. 3 | P a g e Innovation Eagle Boys’ innovation did not stop at developing different store models or menu items. The company was constantly involved in coming up with new ways that it could be the best pizza restaurant in Australia, and one particular standout was the development of an ingenious two-tiered pizza delivery box. The idea came out of a desire to find a way to fit two pizzas in one box, but without the box turning soft and thus negatively affecting the flavour of the pizzas. Many customers were taking advantage of Eagle Boys’ two-pizza deals, and finding an economical and practical way to fit two pizzas in one box became an important R&D challenge. The company quickly developed the two-tiered pizza delivery box, which also turned out to have a few other important – yet not readily apparent – advantages. First, the heat generated from two pizzas in one box keeps them both piping hot for a longer period of time, which meant that the box would also hold its structural integrity longer. Second, the use of recycled paper stock increased the box’s strength while being environmentally friendly. Lastly, because less material was used to manufacture boxes, the company enjoyed a twenty percent savings on box expenses. Branding The company markets its products under the trademarked Eagle Boys brand (IP Australia Trademark No.568128) Eagle Boys enjoyed high brand recognition and loyalty in Australia. This was facilitated by the company’s innovative new products, insightful market research and successful advertising campaigns. One of the most important aspects of the company’s brand was the “pink glow” that surrounded each store. Each store was adorned with pink coloured lights – on either the exterior or interior of the building – and this created a unique, warm glow that was instantly recognisable. According to Mr. Potter, people all around Australia recognised the pink glow as Eagle Boys. “Customers love the fun and upbeat feel it creates in our stores,” he said. “We take great pride in our brand and corporate look, and the pink glow was a very important part of this.” In an effort to get the brand even more exposure, in March 2010 the company changed its telephone number from the one it had used for over twenty years. The new number – 1300 EAGLE BOYS – used the company’s name and was easy to remember. Eagle Boys used one telephone number for all orders nationally, and routed callers to the store that was nearest to them. While the decision to change was difficult, customers could more easily remember the brand name instead of just a number. “Research shows phone names are up to twenty times more memorable than simple phone numbers and the more calls we receive, the more sales we make,” said Mr. Clayton. “At the same time, 1300 EAGLE BOYS will increase brand awareness as customers physically dial our name.” This new telephone number proved to be a winning idea, as by December 2010 4 | P a g e the company enjoyed a 7.2% unaided telephone number recall rate, as opposed to 0.9% in March of the same year. Unique approaches to branding such as these gave the company a lasting, high quality image and was an important tool it used to differentiate itself from its competitors. By 2011, Eagle Boys was one of Australia’s best known pizza brands. A strong, easily recognisable name combined with new products and marketing initiatives propelled Eagle Boys to become one of the most trusted brands in Australia, with the company enjoying high brand recognition and loyalty. IP management From the start, Mr. Potter understood the value of intellectual property (IP) and securing IP rights