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EXECUTIVE SUMMARY
The objective of this report was to present a detailed analysis of the marketing aspects of Fraam Companys product cone pizza which would be offered in outlets named Cone Pizza. This report discusses in detail the functions of marketing department of Cone Pizza under its business mission. The report starts with the general introduction of cone pizza. It then states the process of launch of our new product and talks about micro and macro environmental effects on the working of that product in Pakistan. This report clearly defines the buyers characteristics and buyers decision behavior. We have emphasized on the companys marketing mix and have discussed in detail various aspects of product, brand development. We have stated the packaging of our new product in detail. Price has been stated in detail showing, ending with a detail analysis of place and promotion. We have emphasized on the companys marketing mix and have discussed in detail various aspects of product, brand development. We have stated the packaging of our new product in detail. Price has been stated in detail showing, ending with a detail analysis of place and promotion.
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TABLE OF CONTENTS
S.no 1 2 3 4 5 6 7 8 9
TOPICS Current market situation Competitive review Target audience analysis Product Life Cycle New Product Development Marketing Research Market Segmentation, Targeting & Positioning Consumer Buying Behavior Effects On Environment
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5 6 8 9-10 10-12 12- 14 15-16 17-18 18-21 21-23
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10 SWOT
marketing plan Cone Pizza 11 Brand Development 12 Action Plan 13 Future Trend 14 Direct Survey 15 Objectives & Issues 16 Marketing department structure 17 Product strategies 18 Pricing strategies 19 Placement strategies 20 Placement strategies 21 Budget analysis 22 Conclusion
24-25 25 25-26 27-28 28-29 29-30 30-31 31-32 32-33 34 35-36 37
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Pizza Hut is the worlds largest and most well renowned international chain of pizza restaurants. It is operated as a franchise, with branches all over the world. The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor.. After borrowing $600 from their mother, they purchased some second-hand equipment and rented a small building on a busy intersection in their hometown. The result of their entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest and most successful Pizza Restaurant Company in the world.
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Domino's Pizza, Inc. Founded in 1960, Domino's is the second-largest pizza chain in the United States. Domino's currently has nearly 9,000 corporate and franchised stores in 60 international markets. Domino's menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks , and a variety of dessert items. Domino's Pizza, the pioneer in "Pizza Delivery System" started out small with just one store in 1960 in US. Now, Domino's Pizza is celebrating over 50 years of delivering food, fun and innovation to its valued customers in 140 countries with its 8000 plus outlets.
In Pakistan, Domino's Pizza started with one outlet in Karachi in 2004 and now they have 7 outlets in Karachi & Lahore and are planning to launch 1 more outlet in the Capital city Islamabad. Competition is therefore more intense but the FRAAM company with our new product Cone Pizza can compete in a way that will carefully target the specific segment, Aware the people about its features that deliver the desired benefits valued by each customer group in a valuable and affordable price. The product that our company has come out with is something different which is an additional benefit for us because no other company has come out with an idea like this.
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COMPETITIVE REVIEW
Pizzas are something which are very popular and the liked by majority.It is something new with great tastes. In Pakistan, Pizza Hut, Pizza Experts, Dominos and some other local outlets are doing very well and have captured the market but our product is different with a different taste,flavor,look and affordable price will make its place in the market.
Competitors look for new methods of increasing their customer base. Many pizza chains decided to diversify and offer new non- pizza items such as Buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas.
By launching Cone Pizza we have taken out something which these companies have not come out. Therefore we can capture the market by penetrating the market and attracting all the pizza lovers towards our new product.
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We expect our product to carry a STYLE as it is a basic distinctive mode of expression which might bring a change for a longer time.
INTRODUCTION
GROWTH
MATURITY
DECLINE
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Idea screening
Many ideas pertaining cone pizza came forward but based on the questionnaires disseminated in the public, only the ones which management perceived from the requirements of the customer were added to our product.
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Business Analysis:
After the idea of the cone pizza has been finalized an informative survey has to be made regarding all the sales and check whether the budget is in favor of developing this product or not. If the sales and profit are positive then the product is ready to be developed.
Product development
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After mustering together all the ideas the product takes its physical shape and is sent to health
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Test Marketing
Using standard test market, cones are exposed to the market at selective locations. These locations would include super stores, near offices and, a busy mall to discover the response of the market. This will cost a lot but for long-term the profits would out class the investment. The result to this approach might be unmanageable since various fast food chains might cut down their prices to fail the product launch in market. But being such an innovative product there is likely of some thing of this sort to occur.
Commercialization
The product will be launched on all country bases. Alongside, there will be TV Commercials, advertising on radio, magazines, and campaigns emphasizing the point of pizza being now mobile. The ads would be visible on the billboards everywhere. It would be a mega launch with stalls every where.
MARKETING RESEARCH
Types of People Surveyed
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WORKING
30
11
STUDENT
60
OTHERS
10
Gender
MALE FEMALE
67 33
GENDER
80 60 40 20 0
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FEMALE
12
MALE
Features and benefit It provides them something which is good in taste & not heavy on pocket. We provide them with healthy food at affordable rates and which does to not take much time to serve.
Students
RESEARCH TYPE
The type of research that we used is survey research which involves the gathering of primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior. This research brought us one step closer in our production of cone pizza.
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RESEARCH INSTRUMENTS
Among the two basic research instruments (questionnaire and mechanical device), the one used in our research was the questionnaire. The questionnaire contained open end questions where people could freely respond to any question in anyway they like and also give their true comments and criticism.
VALUE PROPOSITIONS
1. Everything is mobilewhy cant pizza be? 2. Comfortable dinning of pizza. 3. Pizza with pure relaxation. 4. Pizza in an innovative and brilliant way.
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MARKET SEGMENTATION
The market consists of many types of customers, products and needs. A market segment consist of consumers who respond in a similar way to a given set of marketing efforts, for example customers who want a good environment, taste and quality food regardless of price and operating economy make up one segment. Customers who care mainly about price and operating economy make up another segment; it would be very difficult to make a model that was the first choice of consumers in both the segments. Pizza cone is a product which is low in price and good in quality.
MARKET TARGETING
Pizza cone is one of the most innovative products. This product is basically created for office workers, university students, kids and generally for those people who dont have dine in time so they can carry it easily on their way.
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MARKET POSITIONING
Market positioning is arranging for a product to occupy a clear and distinctive position relative to competing products in the mind of target customers. Thus marketers plan positions that distinguish their products from the competing brands and give them the greatest strategic advantage in their target markets.
Basically there are 4 types of buying behaviors and they are as follows;
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Complex buying behavior Variety seeking buying behavior Dissonance reducing buying behavior Habitual buying behavior
EFFECT OF ENVIRONMENT
Micro Environment
1.The company:
The company plays a very vital role, as it will be the one to decide that how much should be spending on for the R&D (research and development) what budget should be allocated for promotion and advertisement. How dedicated we are towards our new product, pizza cone.
2.Suppliers:
Pconzo will have its own suppliers. All ingredients will be the same, which are used in pizzas ,except the cone which will be made fresh within the premises.
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4.Customers:
Customer who will be focused, are the pizza lover and people who prefer fast food, on the go. Moreover, they will be attracted with new promotional deals, and reasonable prices. Pizza cone have four sizes suiting the customer appetite and budgets.
5.Competitors:
In the beginning we do not expect to have competitor threats, as the product itself is an innovation and introduced in Pakistan for the first time. But in near future other fast food restaurants might end up introducing there own pizza cones.
6.Public:
Media public can be of great help, as we expect the product will create hype in Pakistan, same way it did in other countries. This will increase the sales by attracting masses to try this new creative product. General public will also have a positive attitude towards our product and activities. As public image of the company effects its buying.
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MACRO ENVIRONMENT
Demographic Forces: As far as demographic forces are concerned, age is the main cause which can affect the sales of this product. The main focus is on children and youth which form the majority population of Pakistan. This will attract most of the children aged 12 or under and is handy for teens and early 20s as these are mainly students who prefer less time consumption in dining-out and easy eating. Secondly, occupation is also one of the source which can drive the sales of this product. It will focus on those individuals who stay out of the office for site work, sales, marketing or any other job which have much to do with travelling and staying out of the office.
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STRENGTHS
1. In Pakistan we have a huge number of pizza lovers 2. Easy and attractive 3. Unmatched Look and Taste 4. It can be consumed anytime, anywhere, and not necessarily at the restaurant
WEAKNESSES
1. Low Advertising: As compared to its competitors Pizza Hut lacks majorly in appropriate amount advertising. 2. Risk: The product has large risks as it targets office workers and students mostly. and it also has the risk of not being appreciated by other people who are very found of going out and eating particularly at various restaurants. 3. Health Concious People:Many people are health conscious and hence they would not go for such a product which has excessive use of cheese and other cholesterol oriented products.
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OPPORTUNITIES
1. Quality Food Not Available at Office & Various Institutions Cafeterias of offices and educational institutions are not offering quality food products and this provides an opportunity for restaurants to enter this segment.
2. Changing Customer Preferences Customers are moving from traditional dishes to fast food and there fore want more variety in menu.
3. Low Labor Cost In Pakistan as the unemployment rate is very high, so the cheap labor is easily available. This gives us a plus points to hire more employees for making new products. 4.Ramadan: During the month of Ramadan, cone pizza would be very convenient for the people who would not be able to reach their homes before iftaar or who would be on their way.
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THREATS
1. Pizza Hut Our biggest threat is Pizza Hut as most of the people prefer going to Pizza Hut rather than other Pizza outlet but if we keep our prices low maintaining the good quality and taste, we can surely attract more people.
2. Recession in Economy Currently the country is experiencing an economic recession, which can reduce the food expenditure of people, which in turn would have an adverse effect on the sales of food industry.
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BRAND DEVELOPMENT
There are two types of brand development which are line extension and brand extension.
BRAND EXTENSION:
Brand extension means that a new product has been launched in a new category using a successful brand name.
LINE EXTENSION:
Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms , colors, added ingredients or package sizes.
Our product lies in the category of line extension as it is under the same brand name of pizza hut in the same category but in a different and unique form.
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New markets
MARKET DEVELOPMENT
DIVERSIFICATION
Our new product lies in the category of product development as we have created an item in the existing markets of pizzas but it is a new product in Pakistan.
FUTURE TREND
The market of Pakistan had been growing in term of size and in the implementation of modern international marketing tools. People of Pakistan will love the new concept of pizza cones, as the same product have show great success in rest of the world. Implementation of this marketing plan will lead Pconzo to the heights, for developing an innovation of new fast food concept. Being clear financially and promoting this new product will gain popularity and will make pizza cone a revolutionary product.
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Offered in 4 sizes
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DIRECT SURVEY
OFFICE PEOPLE AND UNIVERSITY STUDENTS
- That looks cool, never heard of it before sounds yummy too - Am sure it's heading our way soon! - wow, this sounds so special!! - "wowO..O ... Now I am hungry its really yummy - "Sounds good" - "Thats something new" - "I like the concept" - "I have never seen cone pizza before, it looks delicious. - "I love food and I really like finding new things/ideas or new ways of doing old things." - It definitely sounds great! - I tried it in Italy; I want to eat in again in Karachi - This sounds very good! - wow... never heard this. Even though I'm not too fond of pizza, I'd try this just because of how it's prepared! - Wow I gotta try that
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OBJECTIVES
We have set aggressive but achievable for the first and second years of market entry
First-year objectives:
To create awareness and interest among the youngster especially. To make CONE PIZZA stable in the market. To boost our sales by setting the reasonable prices of our product. We are aiming for 6-10 market share of Karachi
Second-year objectives:
to achieve the market share of about 10-15 To achieve Break-Even (Target Profit) in the second year
Major Objective :
Attract customers with low pricing strategy Selecting out profit maximization in the opening stage Achievement of high profit through effective marketing and sales distribution Fullfiling product contingency plans by analyzing ethical conduct To properly sequentalize the distribution process through SWOT analysis. Effecive brand development Assurance of personal selling After getting maximum sales in Karachi, we would like to cater the other cities of the country like Lahore; Islamabad; Peshawar.
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In a relation to the product launch, our major issue is to develop a well well-regarded brand name linked to meaningful positioning. We also invest heavily on marketing to create a
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ISSUES
Marketing Organization:
We have a hierarchy of eight persons which are included in the marketing structure of Cone Pizza. We have hired marketing firm to handle national sales campaigns, trade and consumer sales promotion, public relations effort.
C.M.O
Regional Sales 1
Advertising Analyst
Promotion Analyst
Regional Sales 2
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PRODUCT STRATEGIES
PRODUCT OVERVIEW:
1. A Pizza Launched In A Different Style Which Offers Great Convenience. 2. Easy Dining And Serving For Our Customers. 3. Suitable Pricing And Hetrogeneous Aspects Make It A Perfect Pizza U Want.
Cone Pizza is produced for people who engage in various roles of life. It offers to the best; the simplicity and a lush way to wind up your hunger through its easy-tohandle shaped fully nutrient cone. Its the easiest meal you will enjoy while you are working or might sometimes will make your boring work quite arousing. Whether you are late for your class, having a pretty time strolling in a mall, taking the air along the foot path listening to your favorite song , drifting in a car , talking on your cell phone ,this Cone always gives a green signal to you to enjoy its yummy, hassle-free flavors while you are on the move. The exterior dough does not get any hotter than a freshly baked pizza crust, and is served in a heat-proof sleeve similar to ones used to hold your coffee cup. Each filling is carefully chosen, and baked with specific instructions in order to control the crispness.
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Packaging
The Cone Pizza is perished inside a cardboard box with a small circular hole at the top. A bunched-up napkin underneath the cone completes the tissue-box effect. The cones are pulled from a warming box, where they sit in neat rows.it clearly fulfills the general requirement of eatinf pizza without having a headache of droping any thing from the cone.this clearly will lead you to enjoy your pizza with a remarkable taste.
Production Process:
Its production process generally involves a traditional dough receipe to deliver an authentic pizza for you.the cone itself offers you the following features with a unique retailing carton devolped for the good baking and a self serving tray.
PRICING STRATEGIES
Pricing is critical and complex variable in marketing strategies. The pricing decision ultimately affects an organizations ability to stay in the market.so we will apply the Market penetration pricing for our new product we would start off with promotional prices such as rs.120 so that it is easily affordable by students and office workers whose income is not at a high level.. This pricing strategy will allow us to attract a large number of customers and large market shares. Moreover, the blend of our informative and persuasive advertising campaign will support our prices and help us in achieving, our objectives i.e. getting a large market share.After the introduction stage the prices would eventually increase with the growth stage and passage of time.
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Small Rs.120
Medium RS.220
Large Rs.300
Placing strategy:
Cone Pizza is a concept encouraging something as pizza on the go. Thus with such positioning that goes directly in the mind of consumers as they hear the name we have to provide them with excellent coverage as this will enhance our consumer satisfaction. Due to all these reasons Cone Pizza has to be distributed ion such a way that we target and cover audience leaving no complains simultaneously increasing demand. First of all we have to provide thorough and good supply and availability of Cone Pizza in the main malls of Karachi. This will allow our product to be introduced to new people and especially the youth which consists of 40% and more than of the population thus we can generate sufficient revenues from such locations. The malls in which the concept of Cone Pizza would be introduced shortly are:PARK TOWERS Shahrah-e-Firdousi, Clifton Karachi, Pakistan.
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Promotion strategy:
The promotional area is one on which we would want to concentrate the most as this would play a vital role in the success of the product. Heavy promotional effort is needed both informative and persuasive. We need to make people familiar to the product and then we want them to be attracted to it. Thus informative advertisement needs heavy budgeting as the target market should be aware of the launch of the innovation of pizza being served as a cone. Informative advertisement can be best done through television, billboards and magazines. Magazines and billboards would be preferred more because the add would stay for a longer time in front of the consumer and that we can in written provide him with the best info even to persuade him for the product. The only thing it lacks is a motion picture thus television is very necessary to provide with a persuasive and attractive advertisement that would also target the audience who have less exposure to magazines. So the firm has to keep most of the budget to promotional efforts. The TV commercials must be of enthusiastic type to mostly attract the youth audience on the other hand we can make use of newspaper and business magazines to attract the employed busy life workers. This will prove most beneficial to the concept of Cone Pizza. Due to all these reasons we are using heavy and extensive promotional effort for the awareness of Cone Pizza. Our selling preposition would be food on the go and that will make sure through advertisements that this pizza concept is perceive by the consumer as a tasteful, fun filled and a food item which takes care of their appetite as well as time. The marketing department will work collaboratively with the sales department to ensure that the placing of Cone Pizza is embedded with promotional activities, so there will be banners and broachers especially available at all outlets providing all the information about the flavors and different prices of Cone Pizza which will be provided to each or every customer or family which visits the outlet. This way the company will also be able to retain the customers and promote Cone Pizza to existing as well as potential customers.
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GROSS PROFIT Distribution costs Administration expenses Other operating expenses Other operating income
PROFIT FROM OPERATIONS Finance cost Profit before taxation Taxation PROFIT/LOSS AFTER TAXATION Number of units sold: At a sales price of: Break even achieved in year:
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Conclusion
Thus we can conclude Cone Pizza in Pakistan will enjoy the first mover advantage and will be the costumers first choice, as it sells not only food but experience too. It is bringing a new easier way of eating pizza via cone This product is basically to attract the youngers because now the generation is going too fast, everyone wants everything to be portable and this Cone Pizza is very feasible to handle.You can now have taste of pizza on the go, while shopping, in universities, office breaks time, parks, concerts, cinemas, traveling and much more and this the usp of our product. We expect the products to rise on the wave of success, created by its strong foundation of Fraam & Co. excellent food and showing creativity at its best. Thus the future is brighter for Cone Pizza.
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