Introduction to the Principles of Marketing
13Development and Marketing Plan for Domino Pizza: Pizzeria
Development and Marketing Plan for Domino Pizza: Pizzeria
Table of Contents
Executive Summary 2
Environmental analysis for pizzeria 3
Political issues 4
Economic factors 4
Social factors 4
Technological factors 4
SWOT Analysis 5
Segmentation, Targeting, and Positioning 6
Target marketing 7
Marketing Mix 8
Development and Marketing Plan for Domino Pizza: Pizzeria
The aim of the paper is to develop a new product for Domino Pizza and establish effective marketing strategies for the product. The name of the product would be Pizzeria, which is a form of pizza that incorporates various needs of the customers such as consideration of the vegetarian and non-vegetarian customers, customized designs, and highly developed baking and preparation method. To ensure that the product effectively meets the required competitive advantage, the paper undertook a marketing analysis that focused on both the internal and external environments: PEST and SWOT analysis. Moreover, the paper analyzed various marketing elements in regards to the pizzeria. The market targets, position, and segments was identified and effectiveness analyzed if they have the ability of delivering the required competitive advantage.
In the UK, there have been increase demands for pizza products that fulfil specific needs of the customers. Domino Pizza is a world-renowned producer of pizza; through its new product, pizzeria, the business would have the opportunity of further exploring the UK market segments (Pearce & Robinson, 2005, 142). The current needs of the customers that pizzeria would consider include deliverance of the customer value proposition, ensuring high quality level of production, and efficient pricing of the product in regards to the quality and the customer value proposition. To dominate the UK market, pizzeria would provide the best value, taste pizza, and utilize high quality ingredients in the production process (IBISWorld, 2016). As a result, the customer in need of great tasting pizza would have the highest level of satisfaction. For convenience and customer-focused services, pizzeria would be among the products delivered to the customers based on their requests with costs charged depending on their locations. Through the pizza, Domino seeks to have a fair and responsible profit enough to keep the business operations financially healthy and adequately long term and fair competition for the investors. Pizzeria would be the delicious meal that nearly all the customers will enjoy, as it would have the right toppings, fresh ingredients, properly cooked, and delicious tastes that also forms the basis of the best pizza (Liff, 2011, 201). To ensure that the marketing plan covers various marketing aspects, the study will focus on various sources such the books, journals, websites, and articles that reflect the current status of the pizza industry and definition of the best pizza based on the needs of the customers. Moreover, the plan will also undertake an environmental analysis of the product: internal and external to help identify the opportunities for the product within the Australian market. Segmentation of the market will be highlighted to define the market targets and positioning and the marketing mix.
Environmental analysis for pizzeria
For effective identification of the opportunities for the product, the plan will conduct a SWOT and PEST analyses for the product.
The political issues involve the regulatory framework that operates within the judicial systems that might distress the product. Within the UK market, such factors are missing. However, factors such as laws regulating the food industry, taxation, and pollution are applicable on the product, which the product has to follow (Legal Vision Pty Limited, 2015). Currently, there is concern for the ingredients used in the processing of pizza, which the product has to comply with to prevent the political issues.
UK’s economy has been performing well so is the GDP (Bhattacharyya, 2009, 111). As a result, the spending rate among the consumers is increasingly becoming higher which creates the opportunity for the product. Domino Pizza is a renowned pizza producer; with such competitive edge, pizzeria could have the opportunity of attracting, even more, customers. However, with increasing inflation rates, the cost of raw materials also increase leading to higher prices of the products, which to some extent could impact consumer-purchasing behaviour.
Considering that Domino is a multinational company inaugurated in from America, pizzeria would be snowed by the western culture. In UK, there are different social forms that could influence the sales of the product (Vrontis & Pavlou, 2008, 289). The culture is continuously changing with certain norms, religion, and beliefs reflecting that the product might have negative performances in certain regions.
Currently, there is improvement in technology within the pizza industry (Young, 2016, 271). As a result, the technology used in baking and heating the ovens will be new and efficient which ensures production of quality pizza. The business would use innovative technology to reach various market segments such as internet and telecommunication. Additionally, the computer based customer data, management information system, would assist in the collection of information, forecasting, and decision-making.
Currently, Domino is the market leader in the provision of pizza; therefore, its pizzeria product would have an automatic competitive edge in the market. The admirable image of its brands, rendering the quality taste, having qualified employees, hygienic surroundings, and splendid ambience of the company would form the base for marketing pizzeria (Išoraitė, 2013). The crust of the pizzeria would be developed from the wood burning oven and slightly charred pockets of the puffy bubbles within the crust, which makes it delicious.
Increasing cost of the raw materials contributes to increased prices, which might affect the purchasing behaviour of the customers. Moreover, since the business has a higher overhead cost compared to the competitors, the price of pizzeria is likely to increase. Quality pizza and good service reflect the high prices of the product; however, the product might operate poorly in regions experiencing economic instability. Moreover, as a western business, focusing on the western taste might not augur well for the product in the UK market.
The product would enjoy the market brand and competitive advantage set by the business. When the product comes to new markets such as UK, new opportunities are created due to the quality and market position created by the business. High sales of the product would increase the market share for the business; as a result, the business might reduce the prices to explore the market segments formed by the low earning individuals (Hynum, 2014). Pizza is a big industry in UK that the product might exploit. With its quality and ingredients that serve specific needs of the customers, the product would enjoy the competitive advantage.
The major threat for pizzeria is increasing number of competitors coming into the market and improving the quality of their pizza. Compared to major competitor, Pizza Hut pizza, Domino offers products at lower cost (Potter, 2009, 201). Moreover, with increasing strict laws on the quality and ingredients used in preparing pizza, the product might experience challenges to establish properly in the UK market. Tough economic tantrums in most parts of the globe could impact the purchase of the product.
Segmentation, Targeting, and Positioning
In UK, the market is complex considering the legal structure that governs the food industry. However, the secondary target market also desire the delivery service for pizza or the take-out approach which offers convenient and reliable services to the potential customers although there is an overlap in the segments. UK and the surrounding environment are the growing middle-class, which offers the required market target (Brook Lapping Productions, 2010, 171). The majority of these segments are families. From such analysis, the market segmentation of the pizzeria is quite simple and easy to understand. Based on geographic segmentation, the product aims to serve different states within the UK market. The demographic segmentation involves the families and young generations. The product would segment high incomes and business class considered to have high spending on pizzas. Psychographic segmentation is based on lifestyle segmentation; as a result, the product divides the market into social class, personality characteristics, and lifestyle.
Pizzeria targets the families that love going out for dinner, those that desire delivery services, and teenagers going to school. With the high spending rates among the college freshmen, it is a clear indication of the high percentage of the money is spent on the non-essential items, which the product would target. Moreover, the product would also target the generation X that is more active in spending their money on the non-essential things such as eating (Melton & McIntyre, 2009, 162). The company also offers meet free pizza with the salad and pasta especially the customers who do not want to eat meet; as a result, these customers tend to enjoy the quality and best food from Domino: Pizzeria. With the diversity of the consumer demand, innovation is the major factor that drives the pizza industrial growth (Viguerie, 2016). For the pizzeria, the major target market is the people desiring comfortable and family-oriented setup for the dine-in pizza.
By gathering adequate information on the competitors such as their strategic strengths and weakness, tactics, reaction patterns, and tactics, the company would have the opportunity to define the market position and be prepared for the changes that could result from high competition. Within UK, the barriers to the new entrants is high due to the existence of properly structured and established companies such as McDonalds, Pizza Inn, and Pizza Hut which enjoy the economies of scale and preferential access to the desired raw materials and distribution channels (He, Zha, & Li, 2013, 469). Pizzeria is motivated with the production of quality and cost friendly pizza; therefore, it would be positioned to ensure that it takes advantage of the customers’ needs and serving UK and surrounding environments.
To achieve the desired competitive advantage, the business would ensure that the produced pizzeria is of high quality and fresh which are the major factors considered by the customers. The boxes of the product will be designed to keep the pizza fresh and hot with the product offered of different varieties: vegetarian and non-vegetarian. Moreover, the product would be of different sizes: small, medium, and large offered at friendly prices. The pizzeria would be offered alongside other products such as bread and pastas. The characteristics of the product are its high quality and mechanism of serving which is based in sizeable portions (Bhasin, 2016). Therefore, people who love rich taste of the pizza and pastas would have the opportunity to find such in pizzeria. The business also gives the choice on the matters of crusts, which allows the customers to choose the crusts that suit their needs. Through the pizzeria product, the business would start offering the options such as whole-wheat crust which not other competitor has been able to utilize. In addition, the customers would have the opportunity of choosing the toppings.
With increasing demand and new businesses venturing in the pizza industry, price is the major factor that determines the desired competitive advantage. The main target for the product is the lower middle class and middle-income group. The motto of the company is reasonable pricing with quality; as a result, the company came with uniform and consistent pricing policy, which is applicable to pizzeria. With such factors, the business would keep its prices in check and assist the product in attracting the customers (Lencioni, 2007, 187). Focusing on competition, pizzeria is priced evenly compared to the other competing products. Compared to the pizza from KFC and McDonalds, pizzeria would be offered at high prices, which could make the customers prefer the indirect competitor. The pricing strategy used by the business is skimming. In the UK, pizzeria would not be the first type of pizza within the industry; however, through provision of high quality pizza compared to the competitor, pizzeria would have premium pricing.
With its wide target market, the products aim to occupy a wide geographical segment in the UK market. Pizzeria would be present in most of the A grade places within the UK urban areas. With such placement, the product has the opportunity of maintaining its premium positioning within the minds of the people considering that the B grade town people would have to go the A listers area to actually have the pizza. Due to the higher prices and higher quality of the pizza compared to the competitors, Pizzeria would have to be an A grade town only in UK. To ensure effective and efficient customer relations, the business would maintain direct channel with the potential customers’ base. In such cases, the customers would either call or send message through telephone for their delivery (Bhasin, 2016). The product would also allow the customers to place their online order through the official website of the company. Moreover, the business would deliver the product free of charge.
Domino has the idea of maintain its direct contact with the customers, which is one of the drivers of the company that has taken it higher levels. The policy of the company of door-to-door delivery is amazing, and it would be replicated on pizzeria (Pizza Chicago, 2011). Nearly all the potential customers know that the business delivers their products within 30 minutes, which is an opportunity for pizzeria. The sales of the company subject to the telemarketing and the efficiency of the trained delivery personnel, which forms the base of promotion for Pizzeria (Beer & Doeser, 2009, 117). To promote the product, the business would introduce new schemes such as 50% on the second pizza and small pizzas free on the one large pizza to maintain the grip of the customers.
The plan focused on the development and marketing for pizzeria as a new product for Domino Pizza that would be sold in the UK. To dominate the UK market, pizzeria would provide the best value, taste pizza, and utilize high quality ingredients in the production process. As a result, the customer in need of great tasting pizza would have the highest level of satisfaction. From the environmental analysis, it was clear that various factors are likely to influence the operations of the product negatively. The SWOT analysis revealed that the product would majorly enjoy the opportunities associated with the already developed market segments, target, and position by the Dominos Pizza (Llanas, 2015, 101). Moreover, with high quality and relatively lower prices compared to the major competitors, the business would have the opportunity to acquire the desired competitive advantage. The marketing mix also revealed that there is huge potential in the pricing, place, promotion, and product policies that could be replicated in the product to achieve the required market position.
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