i) Establish a stable customer base. The first goal we hope to achieve would be that we obtain a stable customer base large enough to provide its own funding and also provide funds for other new products. We are also looking to experimenting with new products to increase our variety with this customer base.
ii) Periodically improve products and change appearance. Secondly, we hope that we would be able to improve our products appearance, taste, value, etc periodically so that the established customer base does not lose interest in the product. This will be assisted by attaching customer review slips inside our products encouraging customers to fill in a feedback form.
iii) Achieve annual growth rate of 5% in sales every year. As new products will be introduced from time to time, we are aiming to achieve an increase of 5% in sales annually. With new products going to be introduced, we hope to also increase the profit
iv) To become the market leader in local markets. We are also targeting to be the leading producer and product for frozen pizza locally. We believe by constantly increasing our variety of our frozen pizzas which are high in demand, we will be able to dominate local markets for frozen pizzas.
b) Identify and analyse target markets for these two products.
Identifying and analysing target markets before marketing a new product is an important step which organisations much take before marketing their product. It is important that an organization first acknowledge the suitable markets to market their product to, then collect and analyse the data about the markets. This will enable the organisation to choose a more suitable target market and obtain optimum amount of benefits.
The largest segment of the markets would be the demographic segment. The demographic segment consists of personal details such as age, gender, income, education and so on. Based on the age segments, we have learnt that frozen pizza is mostly bought by teenagers and young adults. We have also learnt that frozen pizza is mostly bought by college students, university students and single working adults.
Besides that, there is also the psychographic segment. This segment consists of personality, social class, lifestyle and so on. We have learnt that people who are less conscious about their weight and health, are more likely to buy frozen pizza. Urban youth and young adults are also more likely to buy frozen pizza. This is probably because when in a metropolitan area, life moves faster and buying frozen pizza reduces times spent on preparing food greatly, making more time for other activities.
Lastly would be the behavioural segment. This segment consists of variables such as occasions, user status, user rate and so on. We have learnt that frozen pizza is a common sight when attending house parties and impromptu parties or gatherings. One of the reasons frozen pizza is a favourite is because it is easy to serve food to a large amount of people without having to go through a lengthy process of preparing food.
As a conclusion, from this analysis, when marketing our two new products, we would be able to develop more specific strategies to suit the needs of the customer and obtain the highest amount of profit.
c) Develop appropriate marketing mix strategy.
Marketing according to marketers is defined as putting the right product in the right place, at the right price, at the right time. When marketing a product, marketers use the 4Ps for their product before marketing it to avoid making mistakes when planning marketing strategies for the product. The 4Ps of the marketing mix consists of, Product, Price, Place and Promotion. This will help Pizza Pan to be able to suit the needs of the customers better.
The first P of the 4Ps of the marketing mix would be Product. The product would be Pizza Pans new product, Jumbo, Topping-Plus Frozen Pizza. Customers will choose this product when wanting to have a satisfying meal on the go or provide a meal for a large group with a short preparation time. Customers will be consuming this product in their homes and even at parties. This frozen pizza will come in a box with an eye-catching design which will be microwave-friendly so that customers will have a choice of microwaving their frozen pizza from the box or putting it in an oven. This pizza will be 14 in diameter and called the Pizza Pan Frozen Jumbo. This pizza will specialise in its size and generous toppings. This Frozen Pizza will be able to provide the customer with the highest amount of satisfaction in both taste and value for money.
The next P in the 4Ps would be Place. This product will be places at general grocery outlets in shopping malls and also in urban areas. Customers will be able to locate it in the frozen goods section of grocery stores. We will be distributing and selling our product directly to grocery stores at first to optimise profit. We will also be setting up booths to promote our new product along with samples and coupons for shoppers in the grocery store to attract them to buy this product, this should enable us to obtain the targeted customer base faster.
The third P in the 4Ps represents Price. As we are focusing on size in this product, our product will have to be the same or less price as our competitors but present a larger amount. As there are quite a few other companies selling frozen pizzas, price wars have been neck-to-neck. Instead of being the cheapest in price, we will be pricing our pizza such that it is in-between our competitors prices so that customers will not judge our product for being too cheap and associating our product with low quality or associating our product with being too overpriced.
Lastly would be Promotion. We are hoping to promote our product in television, radio, cinema and billboard advertisements as soon as 2 days after our product launch. We will also have our promotional booths around shopping malls to invite shoppers to try our product and also hand out coupons to further persuade them to buy our product. We are hoping to launch somewhere during summer as people are busiest and house parties are most frequent during these times. In addition, less people are conscious about their weight during this time and have already forgotten about their new years resolutions.
We hope that we are able to cater the needs of customers better when using this mix. This marketing mix will also be changed periodically to further cater to the needs of customers and increase customer satisfaction, and increase profit margins.
d) Develop an appropriate competitive marketing strategy.
When releasing a new product into a market with existing competitors, marketers have to use a different approach when marketing their product. Usually taking the wrong approach, new products trying to compete with older products with an established customer base is not easy.
Marketers will have to resort to using a different approach than the usual approach. Some of the other brands that Pizza Pans largest competitors when entering the market would be U.S Pizza, Dominos Pizza and Pizza Hut. These Pizza companies have already established their customer base and a large variety of choices. However, since only being the three largest pizza producers, they take advantage of customers by increasing their prices to much more than what their pizzas are worth. Pizza Pan can take advantage of this by providing customers with an alternative which has more value for money. However, Pizza Pan must be careful to not put a price which is too low, for customers have a tendency for choosing a product which is more expensive, relating its price with quality.