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Pizza In Pakistan
Over the past century, Pizza has been made famous by the Italians all over the world. But
it is only recently that pizza has entered the Pakistani food market in a big way. And this
has to be owed to the marketing and promotion efforts of the American pizza chain –
Pizza Hut. The chain first came to Pakistan on 14th December, 1993. Since then it has
made tremendous progress, and has established 10 restaurants in a span of 11 years. It has
eroded the share of many older established pizza joints and sets the bench mark which all
other competitors aspire to attain.
Six years ago, another U.K. based franchise – ‘Pizza Xpresss’ also opened its doors in
Karachi. But unable to compete with the Pizza Hut, the franchise was eventually
cancelled and the restaurant and equipment bought by the local restaurant manager. The
name was changed to ‘Pizza Experts’ and the owners began to focus their attention on
starting anew from the one outlet in Park Towers. This was three years ago, now there are
three restaurants across Karachi.
In 2004, the competition was upped once again with Domino’s – another American chain
famous for having the best Pizza delivery service in the world – entering the market. But
with a reputable brand name, and strategically located restaurants across the city, Pizza
Experts is well placed to compete with these global giants.
Promotion Introduction:
Company Introduction:
First and foremost, I thank Almighty Allah, for giving me the strength and knowledge to
achieve this project. A special thank you must go to Mr.Sajid Rafique – Owner of Pizza
Experts – who was always willing to answer our endless questions, and invaluable
suggestions. Without, his help this report would not have been possible.
Here is our marketing plan for the launch of “Pizza Experts”. I hope the report fulfills all
the requirements set by you and is according to the specified outline.
I sincerely hope that you will find this report up to the mark. Thank you for giving us the
opportunity to work on such an interesting and enlightening project and giving us a
chance to apply our theoretical knowledge.
The main purpose or the business of pizza experts is to provide quality product and
service with the assistance of trained and professional staff.
After defining the key elements of the company’s operations, the mission statement can
be easily stated.
Mission Statement:
“To be the first choice of every pizza lover, by providing original Italian
Pizza’s at affordable prices to guarantee 100 % customer satisfaction”
STRATEGIC ANALYSIS
Our basic strategy is to focus on specific area of expertise where we are strong and have
an edge over our competitors. The service we have come up with is unique, providing the
Italian thin crust pizzas.
STRATEGIES:
S-O STRATEGY
We can make use of the increased demand for pizza by opening up a branch in the
corporate area.
S-T STRATEGY
In this strategy, we can make use of our strengths to cope up with threats or avoid any
possible threats. The Loyalty card is an effective promotional strategy adopted by us.
W-O STRATEGY
Product:
The Actual Product
Pizza Experts, being a restaurant, is a mixture of food and services.Ioffer not only pizzas
but Starters, Salads & Sandwiches, Calazone, Pastas, Drinks, Coffee & Tea and Deserts.
Our restaurant has a clean environment with quick service and friendly waiters to take
orders of the consumers. It offers customers not only the opportunity to go and have food,
but also offers customers the chance to relax and enjoy in an environment which offers
light music, décor and a friendly ambience.
Sales
Pizza
Time
The price of our product ranges from Rs.200 to rs.400 whereas pastas and sandwiches are
priced from Rs.100 to Rs.200.
The pricing of our product is inclusive of the following costs incurred by the
organization:
• Direct costs
• Indirect costs
Our direct costs include:
o Product costs: This includes the cost of the material that is made up of
cheese, mushrooms, chicken, beef, olives and different toppings.
o Shops and warehouse costs: Cost of overheads, fixed & variable costs.
Our indirect costs include:
o Transportation: Transporting the material from the warehouse to
the our restaurants.
o Cost of marketing: Costs of advertising and sales promotion.
Our restaurant Pizza Experts follows four pricing strategies. They are:
• Market penetration
• Promotional pricing
• Cost plus pricing
Promotion:
In spite of the fact that we face heavy competition from the leading Pizza makers, namely
Pizza Hut and Domino’s, we do not advertise to that extent. we do not have a separate
As Pizza Experts (formerly known as Pizza Express) was a franchise two years ago, it did
not have Pizzas to cater to the local tastes. This was a drawback for our company as most
people did not like it that much. When the franchise was terminated, and the name
changed to Pizza Experts, the owners (also the chefs of the company) came up with new
tastes which had a local touch to it.
One of our promotional campaigns, which can be regarded as our best so far, is the
launch of Loyalty Cards. With the facility of this card, members can avail a one year
membership and a 50% off on all the Pizza’s that they order at our restaurants.Ihave
publicized this campaign as “Buy 1 Get 1 Free”.
The good thing about this campaign and what makes it different from our competitor’s
campaign is that there is no restriction on the number of visits that the members can make
on the card. They can avail it as much as they want in a year..
Thus, I have our customers growing due to the affordability and the quality. WhatIlack is
the right amount of investment for our promotional activities and the right kind of
marketing strategies. Once all this is achieved,Iwould pose a great threat to Pizza Hut and
Domino’s in terms of their prices and their quality.
Promotional Strategies:
Advertisement
According to our research around sixty five percent of the families do not even know
about Pizza Experts. This shows that an advertising and effective marketing campaign
does not exist at all. And from those who do know about Pizza Experts, many of them do
not know about their home delivery service. This is also due to ineffective promotion and
advertising.
Based on the above-mentioned facts, I should allocate advertising budgets each month in
order to familiarize people with the restaurant and the new deals and sale promotion
programs thatIcarry out very often. This is because both our competitors, Domino’s and
Pizza Hut, carry out heavy promotional campaigns.
Gift Scheme
We should offer gifts to customers depending on the billing amount. The gift schemes
should be as follows:
One of the above gifts in each category can be offered to customers spending more than
the amount stated in each billing bracket. Thus, customers will take away with them
something that will remind them of their dining out experience at Pizza Experts.
• Salad
• Six inch Pizza
• Cold drink or Coffee
Chotto Expert
Family Expert
Corporate catering
The corporate clientele represents a significant section of our consumers, especially
during lunch hours.Ican provide catering services to corporate clients at their different
meetings, seminars and conferences.Igot this idea from our questionnaire whereIasked
corporate clients whether they would prefer catering from a proper catering service, the
Hotel where the seminar or conference is organized or by a restaurant.
Public Transport advertising:
We could create more awareness about our loyalty scheme by a very inexpensive method.
The new ‘DAEWO’ buses have started operations in Lahore. On a typical day these
buses make 10 rounds on their routes. By painting the exterior of the buses with our logo,
phone numbers and the loyalty card schemeIcan reach a large audience with minimal
cost.Ihave employed the company cat eye to make our advertisements andIcan also ask
them to design the exterior of the metro buses.
1) We shall offer nestle water, juices and flavored yogurts in our restaurants.
2) Nestle would offer a scheme where a Nestle pure life customer will get a coupon with
every 5 gallon nestle water. Once the customer has 6 coupons they get a free pizza from
Pizza experts
Strengths:
• The high quality that pizza experts provide there consumers is one of the most
important aspects. The food served can be compared to any other restaurant at the
high end of the market.
• This is one of our major strengths. Owners of our Loyalty Cards receive an
identical order free for a purchase of any item. I.e. everything is Buy-one-Get-
one-Free.
• Our Employees are well-educated and well-trained. They help in providing
quality services to the customers. They give suggestions regarding the orders and
the different kind of pizzas. Thus it helps the customers to order according to their
needs.
Weaknesses:
• At the moment, they lack large finances for opening new branches and
obtaining more machinery. However, they have a specified plan for the next
five years and plan to adhere to it.
• With limited branches, machinery and seating capacity, i are restricted to
operate on a small scale.
• They deliver only within a radius of 4 km from either of its branches. Apart
from that, the home-delivery mechanism is not company owned and is
outsourced to different people working for commissions per pizza delivered.
This means an increase in variable costs, even if sales increase.
• Apart from having ad-strips in different cable-network companies, they do not
have any advertising campaign.
Opportunities:
• They can develop into a market leader if they initiate aggressive rival-tackling
strategies and maintains our quality as its size increases.
• They, nowadays are effectively targeting middle class, upper class and students.
• Rival firms like Pizza Hut and Domino’s Pizza are a definite threat to us with their
aggressive marketing and advertising strategies. The public perception of these
firms is far superior to that of Pizza Express. People view these established
international brands and it is not surprising to see many people completely unaware
of our existence.
• They are not in competition with only Pizza based firms but are also competing
with every restaurant in Pakistan. our non-pizza rivals include McDonald’s, KFC,
Arizona Grill, Nandos, Barbeque Tonite, Hot’n’Spicy, Bundo Khan Etc. these
restaurants have already established a name in the market and most of them are
doing massive advertising and promotional efforts.
• Threatening competition from pizza hut and dominos has negatively affected our
position in the market. Pizza hut and dominos shares a large proportion of the
consumer market. Consumers are more into having pizzas at these restaurants as
compared to pizza experts. This is because these names are well established in the
market and thus have a strong influence and a strong brand image.
RECOMMENDATIONS:
Home Delivery
A new Honda CD 70 costs Rs.75000. Further investments will have to be made on fitting
these bikes with heated boxes which will keep the pizzas while they are being
transported. In addition these delivery boxes, fitted on to the back of the motorbikes, can
be painted with the restaurants logo’s and telephone numbers. These bikes will be driven
all around the affluent areas of the city, and additional benefits will be generated in terms
of spreading greater awareness about Pizza Experts delivery service.
CEO
Mr Sajid Rafique
Marketing Manager:
Ms.Freeha Agha
Interior Dsigner:
Mr.Tabrez Awadia
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