Marketing Concepts of Pizza Restaurant - Term Paper Example

MARKETING PLAN Situation Analysis …………………. College/ ………….. …………. Executive Summary Uncovering a hidden opportunity for the market is always an easier way to build a ‘market’. There are always firms and fierce competition among them, but for a new firm to enter and then to dominate or grab a better share of the market, a very different vision, mission and strategy are to be developed and converted them to real money-values. An effective strategy and vision can yield billions of dollars whereas a multi-billionaire firm may turn to be zero due to its faulty strategy as well. This paper talks about Pizza restaurant, planned to be launched in Riyadh in Saudi Arabia. This paper touches a number of marketing concepts and apply them to the case of Pizza restaurant to find how a firm can strategically plan and design its marketing and how these can help it achieve its ultimate goals TABLE OF CONTENTS Introduction …………………………………………………………… 4 Situation Analysis (Internal to the company) ………………………… 4 Company’s mission, objectives and growth strategies ……….. 4 Marketing Mix elements ……………………………………… 5 The customers …………………………………………………. 6 Unique Value Proposition ……………………………………… 6 External Analysis ………………………………………………………. 7 The Market Extent …………………………………………….. 7 Competitor Analysis ………………………………………….. 7 The Economic Environment ………………………………….. 8 Technology Environment …………………………………….. 8 SWOT Analysis ………………………………………………………. 9 Conclusion ……………………………………………………………. 9 References ……………………………………………………………. 10 Introduction For Pizza Restaurant, exchange of foods and services is not mere the core idea behind its marketing, but rather, sincere efforts to create, communicate and deliver reasonable values (Kerin et al, 2005, p. 8) to its customers will be of greater focuses and major concerns. As Armstrong and Kotler (2005, p. 6) stressed, marketing deals with customers more than any other business function and therefore building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. This paper presents a brief report based on the marketing analysis of the Pizza Restaurant, to be located in Riyadh, Saudi Arabia. This piece of paper relates to various marketing concepts and principles such as marketing vision, marketing mix, customer analysis, internal and external analysis and marketing strategies with regard to Pizza Restaurant. Situation Analysis (Internal to the company) Company’s mission, objectives and growth strategies The Pizza Restaurant aims to contribute to human needs by delivering quality pizza-foods and drinks and to enhance healthier food and joyful environment to help its customers find their entertainment needs to be satisfied. Armstrong and Kotler (2005, p. 42) emphasized that a statement of an organization’s purpose- a mission statement- must be able to define the business in terms of satisfying basic customer needs. For Pizza Restaurant, its customers are rich hippies and business or other professionals from Riyadh who come to meet their needs of hunger, thirst, joy and leisure entertainment. Company will value their needs, their responses and their varying requirements and thus it will design different services and quality multi-cultural organic food items in order to satisfy its customers. Main objectives of the company are establishing customer focus strategy, maintaining customer loyalty, ensuring long-term profitability and thus achieving sustainable competitive advantages. In order these objectives to be achieved, the Restaurant plans to give greater emphasis on strategies like mass-marketing strategy, customer focus strategy, customer relationship and CRM strategies etc. Marketing Mix elements As far as four Ps of the marketing are concerned, Pizza restaurant takes an integrated approach to these elements, namely products, price, place and promotion. According to Wilson and Gilligan (2005, p. 536), although the effective management of each of the individual element of the mix is largely self-evident, many marketing strategists have stressed the need to pay attention to the ways in which the mix elements as a whole can be managed well and integrated so that a high degree synergy can be achieved. Pizza foods and drinks will be priced based on skimming pricing policy and hence the price will be relatively cheaper in the beginning and later will be priced reasonably. Its foods and drinks are delivered directly to the customers as they visit the Restaurant, but with an extreme focus on maintaining outstanding quality in services. Various sales promotions and related packages will be designed at different times and seasons. The customers In a better marketing planning, the first logical step is to analyze the customers (McLoughlin and Aaker 2010, p. 26). Customer analysis can be easily done by analyzing the segments and recognizing the strengths of each of the segments and other factors like specific requirements etc (Luther, 2011, p. 55). Pizza Restaurant’s customers are expected to be rich hippies and upper and middle class people who desire organic food, mainly pizza-contained food and drinks for fulfilling their need of hunger and joy. Though the whole targeted market can be segmented in to different categories, all these customers are served while they visit the restaurant and therefore the segmentation strategy to be implemented will be mass-marketing strategy. One of very significant factors that the company considers as critical element to its success is continuous assessment, analysis and extensive research on customer preferences and their tastes so that company will be able to design, develop and make changes its pizza-food and drinks accordingly. Unique Value Proposition Customers always make purchase decision based on perceived value, or the degree to which their needs and expectations about the quality, usability, utility and features can be satisfied (Duchessi, 2002, p. 81). Customers prefer one brand to another based on the value propositions they expect from the preferred one. Pizza restaurant proposes to deliver foods and drinks that will be able to satisfy customer needs and wants by differentiating it from foods and drinks of its competitors and by positioning the brand equity. External Analysis The Market Extent Pizza Restaurant is not going to be a global or national-level marketer of Pizza foods and drinks, but merely to focus on local people from around Riyadh and those who come to Riyadh as visitors. Though it doesn’t have any significant role in global marketing, its local or domestic marketing is relatively big because the buyers of pizza-products will be from all different kinds of people. Pizza Restaurant’s customers are both rich hippies as well as middle and other people who desire pizza foods at different times of events or occasions and thus the customers are not just few segments or groups of people, and this opportunity will be seized by the company by making different foods items to attract different groups of people. Competitor Analysis A competitor analysis is always the first step a firm takes to be able to predict the extent and nature or its competitive rivalry and to measure how strong they are in the market (Ireland, Hoskisson and Hitt, 2007, P. 162). Competitor analysis becomes a highly important strategic tool because knowing the values being provided by the competitors will help the company design its market accordingly. As Bangs (2002) suggested, studying competitors’ plan, strategies and customer attitudes to them will be of greater help to a company (p. 61). Main competitors of Pizza restaurant are four large restaurants, namely Eat-Fresh, Zigzag, Al-raid and Hill-View. Though all these restaurants together attract around 8000 to 10000 people a day, Pizza Restaurant will be able to attract around 2000 visitors from its second year onwards by facilitating various amenities, by delivering supreme quality services and by providing quite different food items to different groups of people. The Economic Environment When it comes to Saudi Arabia’s, especially Riyadh’s, business opportunity and economic environment, it always shows a positive up-ward sloping graph due to a number of reasons like oil industry and growing business contexts. A business can grown only where business are growing or already grown. Saudi’s business and economic environments show that they are robust and any business, with effective strategies can yield better outcomes than what can be expected of many other countries. Apart from these, government decisions regarding tax, availability of startup and expansion financing, economic policies of the country, economic crisis from other countries that is likely to impact on its economy are some of the factors that can affect the economic environment of Pizza Restaurant. Technology Environment Technology plays relatively less significant roles in hospitality industry and same is the case with Pizza restaurant too. But still, a hostel or restaurant business also will be able to make use of some of the recent technology like induction cooker, electronic ovens, electronically timing system etc. The restaurant has facilitated computer and networking to help customers perform billing and other tasks conveniently and also to get updated with news and other important information through LAN and WIFI. For any business, adapting to newer technologies and getting adjusted with them are of extremely important factors that a firm will be able to get rid of socio-political and economic backwardness (Joseph, 2005, p. 487). SWOT Analysis Strengths Weaknesses Greater emphasis on value creation and customer satisfaction Integrated approach to marketing-mix elements Customers’ strong desire for organic pizza foods Strong desire to deliver value to customers based on value propositions. Complexity in menu and other preparatory activities Restaurant provides only pizza-products, so customer who desire to get others organic foods along with pizza foods may not satisfied. A good portion of the people still don’t like pizza-items Opportunities Threats Advantages of local market Growing trends of customers towards joy and entertainment Differentiated pizza-foods by considering different tastes and preferences of customers Convenience with newer technologies like electronic oven High competition from four restaurants Readily available food in other shops near to the restaurants Relative risks due to the vulnerability to food poisoning and food-concerns are high. Conclusion This piece of paper has presented internal and external analysis of Pizza Restaurant and the major findings have been summarized in the SWOT analysis. This paper has reviewed many literatures regarding various marketing concepts like mission, strategy, competitor and customer analysis etc. References Armstrong, G and Kotler, P (2005), Marketing: An introduction, Prentice Hall, Pearson Education Inc Bangs, D. H (2002), The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Duchessi, P, (2002), Crafting customer value: the art and science, Illustrated edition, Purdue University Press Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, (2007), Competing for advantage, Cengage Learning Joseph, R, (2005), Business Policy And Environment, Anmol Publications PVT. LTD Kerin, R.A, Hartley, S.W and Berkowitz, E.N (2005), Marketing, Eighth edition, McGraw Hill Irwin Luther, W. M (2011), The Marketing Plan: How to Prepare and Implement It, Fourth edition, AMACOM Div American Mgmt Assn McLoughlin, D & Aaker, D. A (2010). Strategic Market Management: Global Perspectives, Illustrated edition, John Wiley and Sons Wilson, R. M. S & Gilligan, C, (2005), Strategic marketing management: planning, implementation and control, Third illustrated edition, Butterworth-Heinemann Read More