pizza experts( furqan project)

8/8/2019 Pizza Experts( Furqan Project)

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Assignment : 2

Tutor Name: Mr. Asmat Ali

Marketing Theory & Practice

Made By: Furqan Arshad

PROJECT ON PIZZA EXPERTS

Roll No. AD512439

Semester: Spring 2009

MARKETING THEORY AND PRACTICE - 1 -


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INTRODUCTION :

Pizza In Pakistan

Over the past century, Pizza has been made famous by the Italians all over the world. Butit 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 14 th 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 Dominos 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, PizzaExperts 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.



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As you will see, my plan carefully analyzes the external and the internal factors that

should be considered when designing the new marketing mix for Pizza Experts. The

marketing mix and the promotion mix have been designed after careful research,

investigation and exploration.

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.

Defining Pizza Experts Business and Mission

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 companys operations, the mission statement can be easily stated.

Mission Statement:

To be the first choice of every pizza lover, by providing original Italian

Pizzas 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



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In this developmental strategy, I can overcome weakness to pursue opportunities. we candevelop an efficient delivery system by employing their own bikes rather than hiring

workers on commission bases

.MARKETING MIX FOR PIZZA EXPERTS:

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 offerslight music, dcor and a friendly ambience.


I n t r o d u c t i o n G r o w t h M a t u r i t y D e c l i n e

S a l e s

T i m e

Pizza


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As can be seen, Pizza in the Pakistani market has entered the growth stage.

Effective planning and investment at this stage will help it to further expand and

increase our companys market share.

The Core ProductAugmented Product

Product Quality

Price:

Price of the Product

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 Dominos, we do not advertise to that extent. we do not have a separate



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department for marketing or advertising. The owners themselves develop all the

marketing strategies, but make it a point not to come up with expensive campaigns.

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 Pizzas 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 competitors

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

Dominos 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, Dominos and

Pizza Hut, carry out heavy promotional campaigns.



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Thus, we propose that we should use World Calls Cable to promote our restaurant. For

this we contacted with marketing manager of World Calls Cable. That will proposed a

marketing package considering our company size.

Gift SchemeWe 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.

Seasonal Promotional Campaigns

We can offer seasonal promotional activities to take advantage of the hype created by the

media during various international sporting tournaments,Ican also offer special gift

schemes tailored specifically to that sporting event.

The football World Cup is scheduled to be held next year. There will be a global hype

long before the first ball is ever kicked at the tournament. Thus to take advantage of

this,Ishould offer special deals starting three months before the tournament starts. Gifts

such as sports water bottles, footballs and posters of football stars can be given away to

people spending over Rs.2000.


Billing Amount Children Adults

Rs 500 to Rs 1000 Stationary boxes / Pizza Expert

T-Shirt / Coloring Book/ Pizza

Experts Key Chain with Cartoon

Characters

Pizza Experts branded

Glass / Pizza Expert T-

Shirt / Free Pizza of your

choiceRs 1001 to Rs 2000 Pizza Experts Football /

Wristwatches / Cricket Ball

Pizza Experts Key Chain

from Khaas IndustriesRs 2001 and above Cricket Bat from Jinnah Sports/

Pizza Experts Waist Pouch

Pizza Experts branded Pen

Set


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children would enjoy having dinner with Mickey mouse, Spiderman, or any other

childrens character.

Apart from thatIcan have special meal deals, like Spiderman deal, goofy deal; where the

children are served by their favorite character and that character sits and plays with them

for a while they are having their meal.

All you can eat

This strategy is quite applicable. We have this offer at lunchtime. During this time, there

would be a special table or counter set up where four or more pizzas of different types are

available for those availing the All you can eat offer. It would be more of a buffet, where

customers would be provided with plates and they would be requested to get slices of the

pizza they prefer. Apart from pizza we have a spaghetti bowl with spaghetti sauce at itsside.

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.



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This picture shows the exact view from the main road, and it clearly shows how the sign

board is not visible from the main road.

As can be seen, this picture was taken from the road side and the Sign board is not clearly

visible to motorists passing by. The sign board needs to be strategically placed, as this

offers the benefit of promotion at no additional cost thatIwould otherwise have to pay to

setup a billboard. Further more, we should also use our balcony to put up banners

promoting our Loyalty Card scheme.

Partnerships with credit card companies

We should start a partnership with Visa Card. This is because Visa card offers customers

points every time they use their card. Customers can then avail these points at various

outlets to get free gifts

Alliance with Nestle



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In recent times there has been an increased global shift towards mutual cooperation

amongst companies andIshould be doing the same. By joining hands with nestle there is a

win-win situation for us and nestle. The outline of this cooperation would be that:

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

Online Promotion Scheme

First of all, I should start up a new site with complete information about our restaurant

and its different locations. However; our main purpose will be quite unique. Through this

site I will register regular pizza experts customers and they will receive exclusive special

offers via E-mail. Now once they print the special offer and arrive at Pizza experts they

will be asked to submit five more email addresses( not more than five) for member ship

in our exclusive online deals program. Apart from that as there is a limit to number of

email addresses listed in one visit, there will be none or very little repetition on email

addresses. Thus, increasing our emailing list almost exponentially by 5 provided people

utilize our online promotions. I can also have random numerical lotteries for free food for

online mailing list members.Distribution:

The distribution can be done through the following resources

Facilities

Transport

Communication

Marketing channels

There are two kinds of marketing channels employed by Pizza Experts, but in both thesechannels there is no middle man or intermediary involved. The first kind of marketingchannel is our own restaurants where we serve our customers hot pizzas. The second is

the home delivery service where we provide customers the option of having pizza athome.



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SWOT Analysis:

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.



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Considering the 20% annual growth rate, opening new branches can definitely

increase their market share.

T he standard of living in Pakistans urban areas has been on the increase People

have moved to a higher social status and moreover their wants have diversified

and changed from dining out at desi restaurants to trendier and istern menu

based restaurant .

The political situation in the country has stabilized to a great extent. A stable

inflation rate of 6-8 percent and non-fluctuating tax rates and duties will allow us

to follow their long term objectives effectively and efficiently.

Threats :

Rival firms like Pizza Hut and Dominos 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 McDonalds, KFC,

Arizona Grill, Nandos, Barbeque Tonite, HotnSpicy, 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



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Seventy percent of the families surveyed said that the pizza delivered at home was not

hot, and because of this the taste of the pizza was not the same which forty percent

families complained. We should consider providing our riders/deliverymen with the oven

hot technology which currently Pizza Hut and Dominos, our main competitors are using.

Firstly,Ishould buy our own motorbikes with full time employed riders. Secondly,Ishould

then invest in the oven hot technology. Thirdly, our riders are commission based and not

full time employed. In addition to this we have to pay them a fixed amount monthly for

the maintenance and petrol for the bikes whether or not the fixing and maintenance costs

are utilized or not.

By investing in all these,Iwill reduce our variable cost in the long run. Investing in the

motorbikes will save us these costs andIwould only have to pay them a specific amount

of salary per month. Maintenance costs and petrol costs would be as per utilization.

The New Delivery System

We need to improve our delivery system to gain wider appeal in the market. This was

highlighted whenIquestioned consumers. Furthermore, not having our own delivery

system means that as our market share increases, our variable cost will rise with it,

sinceIhave to pay a certain percentage on each delivery under our current delivery

system. Thus, to overcome these problemsIshould purchase our own bikes.

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 logos 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.



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Contract with school and College Cafeterias

We should also look into providing schools with pizza during lunch breaks. We shouldtarget school where children from the affluent class study; because we have to consider

the fact that pizza is still expensive for a school lunch thus the affluent class should be

our primary choice. A list of schools that we have identified is given below.

Lahore Grammar School City School Lyceum DPS

We could also target universities

PU IBA UMT etc.



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Customer feed back program

We should start a customer feed back program so that we can find out which areas

customers feel we are lacking in. this will help us improve the service and food we offer

to customers.

The following is a customer feed back comments card that we have designed:

YOUR COMMENTS PLEASE

Excellent Good Average PoorQuality of food?Was the food hot?Value for money?

Variety of menu?Restaurant cleanliness?Service fast?Service friendly?Environment?

Todays date ____________________, and time right now is _________________ The name of this branch ____________

Any suggestions to serve you better __________________________________________ _______________________________________________________________________

_______________________________________________________________________

My name is ____________________, Address ________________________________ ____________________________________________, Phone no. _________________,E-mail ______________________________________

Whats your Half?

This strategy proposes having half a pizza of one type and half of another type together as

one pizza. Consumers would prefer savoring two flavors at the same time. Apart from

that, if two people buy a pizza and one likes one flavor the other another, still they

would not order another pizza. Thus, through this offer they would get two different

pizzas at the same time.



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References

CEO

Mr Sajid Rafique

Marketing Manager:Ms.Freeha Agha

Interior Dsigner:Mr.Tabrez Awadia

http://en.wikipedia.org

http://www.google.com

http://en.wikipedia.org/http://en.wikipedia.org/

pizza experts( furqan project)

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