Marketing Analysis of Pizza and Pasta Restaurants in the UK - Essay Example

Module Assignment Module Leader: Seminar Leader: Number: Word Count 000 Introduction Before engaging in a business venture, it is necessary to conduct a market analysis to determine the features that might affect success of the new business. The analysis leads to the significant conclusion of whether it is worth investing in the business or not. It helps entrepreneurs to predict the outcome of their investment and hence avoid situations that may lead to loss of money. This paper summarizes the key features of the market for pizza and pasta restaurants in the UK. It proposes the target market for the new restaurants as well as a proposed positioning statement. It also identifies the key features of the different elements of the marketing mix for the restaurant. Pizza and Pasta Restaurants in the UK The UK pizza and pasta restaurants market has significantly developed over the last decade, with new entrants every successive year. According to Hall (2005), the sector has accomplished significant growth which is demonstrated by the current annual sales of £2 billion. The full potential of this market has not been achieved and therefore it presents an important opportunity for investment. The market is developing through a two tire chain whereby one chain comprises full service restaurants focused on high end products while the other is based on low cost products sold in casual dining and small takeaway outlets that also deliver packed products to clients. The market trends indicate a tendency for consumers to find it convenience to eat out rather than waste time preparing meals, which has also increased takeaway sales. Sporting events also significantly contribute to the takeaway pizza and pasta sales where people congregate to watch games such as the European premier league at home. Younger consumers are the majority in the pizza and pasta market. Constant innovations in the market leading to the development of new packages in the menu and price promotions are positively influencing growth in the pizza and pasta restaurant market (Cagan & Vogel, 2001). Target Market Targeting is a critical aspect of marketing whereby the entrepreneur identifies potential consumers that the business can effectively accomplish its objectives. Hall (2005) notes that youth are an important target in the pizza and pasta market as evidence shows they are the majority among consumers of fast foods. New entrepreneurs in the market can effectively target households with young children, university students and emerging professionals. Lewis (2011) also highlights middle and high income households as an important target for medium to high end products. This consumer segment is critical to the rapid growth of new business while the low end consumers are important in business sustainability. The other important target segment comprises consumers who operate under tight schedules leaving them with little time to prepare their own meals, such as professionals who are in full time employment and also in other part time jobs. A product delivery strategy can be effective in maintaining this market segment. The unique needs of each target market need to be understood by the entrepreneur to ensure that they are effectively met (Geller, 2002). Marketing Mix The four Ps of marketing mix entail the manner in which the entrepreneur intends to develop the product, how to set prices, promotions as well as the place where to sell the products. It is important to establish strong brand equity by positioning pizza strategically as a unique brand to the new venture so that customers will be able to recognize and link it to the restaurant. However, the product scope will include a variety of related products such as pasta, drinks and appetizers that are bought together with the pizza. Product design is important in attracting customers. Different sizes and shapes that have different prefixes before the word pizza such as “executive pizza”, “family size pizza” e.t.c will attract different customers and hence enhance sales (Bergeron, 2002). Pricing strategies are important as they will determine which market segment the product belongs. According to Crawford and Benedetto (2008), price skimming strategies can be applied to increase competitiveness whereby the entrepreneur can enter the market with a price higher than that of competitors and then lower it below them. This is a high/low pricing approach that can be applied to generate excitement among consumers and also to demonstrate at the entry point that the products are of superior quality. On the other hand, segmentation can be accomplished whereby low end customers can benefit from the new prices while the customers willing to pay more can be offered the high end priced commodities. Promotion strategies are aimed at awareness creation and enhancing consumer access to product information. Product package is an important medium to spread information regarding the product (Belch & Belch, 2006). Attractive packaging helps to gain greater competitiveness. Sales promotions inform customers regarding the offers accompanying a product, such as price reductions, gifts and after sale services. Promotions can be applied occasionary to sell more than competitors. Advertisements ensure that customers are aware of the product and where to get it. Promotions and advertisements can be done through media. The internet plays a significant role in modern marketing and it can effectively be used to sell to consumers who need the products to be delivered to their convenient place (Fock, 2001). Place determines the presence of the business in the market and the extent to which products are available to consumers. The growth strategies of a new restaurant are based on strategic location where customers will find it as well as where the pizza and pasta are needed. Since the target market is mainly comprised of the youth, it is important to select a location that is frequented by young people to play and watch games. The growth strategy also needs to focus on expanding to new locations within Oxford to ensure that products are readily available to customers. This is because the pricing and promotion strategies will support brand equity to the advantage of the business since customers will look for the products when information reaches them (Belch & Belch, 2006). Reference List Belch, G. & Belch, M. 2006. Advertising and Promotion: An Integrated Marketing Communications Perspective w/ Premium Content Card, McGraw-Hill/Irwin Bergeron, B. 2002. Essentials of CRM: A Guide to Customer Relationship Management, Wiley Cagan, J. & Vogel, C. M. 2001. Creating Breakthrough Products: Innovation from Product Planning to Program Approval, FT Press Crawford, C. M. & Benedetto, C. A. 2008. New Product Management, McGraw Hill Higher Education Fock, H. K. 2001. “Retail outlet location decision maker - franchisor or franchisee?” Marketing Intelligence and Planning, 19(3): 171 -178. Geller, L. K. 2002. Response: The Complete Guide to Profitable Direct Marketing, Oxford University Press Hall, S. 2005. From Kitchen to Market: Selling Your Gourmet Food Specialty (Sell Your Specialty Food: Market, Distribute & Profit from Your Kitchen Creation, Kaplan Business Lewis, J. 2011. Food on Wheels: The Complete Guide to Starting a Food Truck, Food Cart, or Other Mobile Food Business, Rabbit Ranch Publishing Read More