Pizza Pan is an Australian company which is considering expansion into the local Malaysian market. The company has developed two new styles of frozen pizza, a lite-cheese, single size wholemeal pizza known as Cheesy Lite Pizzeria Styleâ„¢ and a jumbo, topping-plus pizza called Cheesy Plus Pizzeria Styleâ„¢, which they tend to market in Malaysia.
Pizza Pan Australia will collaborate with local Malaysian importing agents to enable the efficient distribution of its products to the local markets. The business strives to meet up with the customer’s expectation and fulfill customer’s satisfaction with what the business has to offer. The business will offer two types of pizzas to the specific target markets based on geographic, demographic, psychographic and behavioural segmentation.
The business expects to outrival and outclass its competitors, and excel and shine in the Malaysian consumer market alongside its innovative approach with the marketing plan. This is due to the fact that the business has no established international consumer markets and customer awareness is at its minimum.
2.0 Marketing Goals for Pizza Pan
Marketing goals are goals the business marketing plan and activities the business plan to achieve.
The business plans the marketing to achieve the main aims of the business which is to offer a wide range and variety of frozen pizza to its international customers.
Pizza Pan wants the marketing initiative to achieve the satisfaction of the needs and wants of the customers, the differentiation of the company’s products from its competitors by emphasizing the different variety of products that the company has to offer and create a positive business image in the local Malaysian market.
To increase share of the
Market share is to be increased by
5% in the next 12 months.
To increase customer
awareness and build
Over the next three months, a promotional campaign will be initiated to persuade
customers to purchase products.
To develop a new range of products which differ from competitors
New innovative and exotic products will be introduced during festive seasons to cater for the diverse multicultural Malaysian society.
To gain a friendly public
image and increase
Maintaining the set standards of quality of the food
produced and offering good customer service in
the form of after sales feedback and surveys to gain
a positive image of products sold in the first year
prior to start up. Plus, offering discounts and offers
to customers to create a friendly and welcoming
To increase sales and profit of the business
Cover start up costs and earn large turnover to balance accounts within twelve months prior to
establishment of the expansion to Malaysia with
increased sales revenue.
Target markets consist of a set of buyers sharing common needs and characteristics that the company decides to serve. Proper definition of target markets is essential to ensure that the products are served to the right consumer markets and enabling the business to achieve its marketing objectives efficiently and effectively. Therefore, Pizza Pan will classify the mass market into different segments to ensure that the company is able to identify a suitable segment to focus the distribution of its products to and develop an appropriate marketing mix to the right segment and achieve high consumer satisfaction. Additionally, market segmentation allows for the effective utilization of the firm’s resources.
3.1 Cheesy Lite Pizzeria Styleâ„¢
Cheesy Lite is a single sized pizza made wholly from healthy ingredients. It is made with reduced fat content mozzarella cheese and wholemeal flour for the dough. A research was done to identify the ideal target market for Pizza Pan to market this product to, based on geographic, demographic, psychographic and behavioral segmentation.
Geographic segmentation involves the division of the market based on its geographical units. Pizza Pan has decided to market its products in the major cities in Malaysia including the capital; Kuala Lumpur, Penang and Johor Bahru. According to the Department of Statistics Malaysia, it is stated that the population of people residing in major cities are relatively higher as compared with the suburban and rural areas of the states in Malaysia. Apart from that, public transportation systems at major cities are more convenient and accessible, such as Rapid KL and Rapid Penang, which means people can travel from one place to another easily. Thus, there is a higher tendency for Pizza Pan to reach its target consumers. Moreover, the abundance of shopping complexes, hypermarkets and convenient stores in the cities relative to rural areas of the state creates an opportunity for the company to market its pizzas.
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The demographic characteristics of the target market were studied in order to assess the size of the target market and to reach it efficiently. Based on the research, it was revealed that people from urban areas are relatively higher income earners in comparison to people from rural area. This signifies that people living in urbanized areas have a larger purchasing power to consume the firm’s products. Furthermore, the concentration of higher education institutions coupled with the higher levels of education of people living in the major cities also brings rise to the large number of students in these areas as well as a more educated breed of population. Therefore, the convenience of the single serve, healthy Cheesy Lite pizza would attract these students as they try to juggle their piling workload. Moreover, people living in the major cities are usually too busy with their work that they barely have time to spare for dinner preparations and shop at the supermarket on a regular basis for groceries. At the same time, this product is suitable for working ladies who wants to keep fit and maintain a healthy living.
Psychographic segmentation involves dividing a market into different groups based on social class, lifestyle or personality characteristics. The product is segmented to the middle and upper middle class entities. The price of the Cheesy-Lite at RM9.95 would be deemed reasonable by the target market. This product will also appeal to those persons who lead active lifestyles. For instance, athletes such as gymnasts have a constant need to maintain their small body frame due to the nature of the sport and this product goes alongside with that need as it is healthy and low in fat content enabling them to enjoy the wholemeal pizza guilt-free.
Other than that, behavioral segmentation comprises of dividing the market into groups based on consumer knowledge, attitude, use or response to a product. Pizza Pan can focus on the benefits sought with the consumption of Cheesy Lite as customers are able to devour a seemingly ‘sinful’ food guilt-free with the benefits of its healthy ingredients. Further, the Cheesy Lite pizza which is ready for consumption within a few minutes would be an ideal midday snack or a late night supper.
As a result of the above, Pizza Pan will adopt a concentrated marketing strategy which is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. Therefore, the company will place emphasis on marketing the Cheesy Lite pizza to the urban population including working ladies, students, and athletes. This form of target marketing strategy will enable Pizza Pan to strengthen its position in the local market as the company will focus its attention on satisfying the need of the niche market.
3.2 Cheesy Plus Pizzeria Styleâ„¢
Cheesy Plus Pizzeria Style pizza is a frozen jumbo pizza made with extra topping. The pizza is topped with extra cheese and extra pepperoni only from Australia’s finest dairy and meat farms. Market segmentation approach is also applied to this product to ensure that the right target markets are identified and reached.
As mentioned above, geographic segmentation is based on location. With a higher population of people living in urban areas, the company will focus on supplying its Cheesy Lite pizza to these areas, including Kuala Lumpur, Penang and Johor Bahru. Further, the concentration of hypermarkets and supermarkets in these areas will ease the distribution of the products to its consumers. As most business offices are headquartered in these major cities, working parents are also a key target market. Working parents usually spend their work hours cooped up in their cubicles handling office matters that they tend to not have enough time to prepare dinner for their family. Resultant of this, the Cheesy Lite pizza would suit these working parents as they can provide a meal for their family with ease within ten to twenty minutes without having to go through the hassle of lengthy food preparations.
Conversely, demographic segmentation is based on measurable statistics. The recent trend of two to three children per family would seem attractive to parents as they can easily provide a meal for their whole family with just one Cheesy Plus pizza. The jumbo size of the pizza would also appeal to teenagers and young male adults. The male gender and the younger generation tend to be less particular about their food intake and enjoy wholesome foods like pizzas with extra topping which makes the Cheesy Plus pizza an excellent choice for them.
Furthermore, psychographic segmentation is based on lifestyle preferences, personality and social class. The Cheesy Plus pizza would tempt both the active and passive personality persons. Passive personalities among bookworms, family-orientated people would be attracted to the convenience of the preparations of the pizza, as the pizza is ready after warming it up in oven, and they can enjoy their pizzeria style meal in the comforts of their own home. People with active personalities would also be attracted to the ease of preparing the pizza as they would be able to save time and also be able to multitask by doing other chores while waiting for the pizza to cook in the oven.
Besides that, behavioural segmentation is also taken into consideration when determining the target markets. Behavioural segmentation is based on variables such as occasions, usage rate, readiness stage and benefits sought. The Cheesy Plus pizza is a jumbo sized pizza making it suitable to be served at house parties, such as birthdays, and class reunions. Further, with the extra topping, the pizza would appeal to consumers as they would be benefiting from the purchase of the product, ‘getting quality and quantity for money’.
Resultant of the above segmentation strategies, the company will also adopt a concentrated marketing approach in reaching out the Cheesy Plus pizza to its target market. The target market of this product consists of the male gender, the passive and active personalities and career-driven people. With this concentrated marketing strategy, Pizza Pan would be able to focus its attention on identifying and satisfying the consumer’s needs and wants efficiently and effectively enabling them to achieve their marketing objectives.
4.0 Marketing Mix for Cheesy Lite Pizzeria Styleâ„¢
Products are goods or service offered to the market that might satisfy consumer’s wants or needs. In today’s society, people tend to lead hectic lifestyles and yet they still try to maintain a healthy well being. For instance, women want to maintain their nice, curvy body figure while they want men, their significant other, to adopt a healthy living. Hence, they are aware and careful of their daily intake of food as they try to eat healthily to maintain their health levels. In consideration to this, Pizza Pan has introduced its brand new Cheesy Lite which suits the need of all levels of people.
The special features of this pizza are that it is made with wholemeal flour, less salt and with organic, healthy ingredients. Our pizzas begin with crusts made from only the finest ingredients. Each one is then topped off with combinations of the freshest organic vegetables and meats, flavourful cheese and delicious spices. The result is just legendary. An adventure in pizza making – Cheesy Lite Pizzeria Styleâ„¢ Thin Crust pizza starts with the perfect balance of crisp and tenderness in a crust that bakes to perfection in the oven. All you need to do is put it into the oven and bake it with 220 degree Celsius for 5 minutes. Isn’t it easy and convenient?
The packaging of the product is essential to inform the consumers about the use of the product, promote the product and distinguish it from the competitors as well as to protect the product during transportation, while it sits on the shelf and during use by the consumer. The business will have a distinctive, attractive packaging which is environmentally friendly which emphasises the special features of the Cheesy Lite pizza. The boxes and packaging material used to wrap the product will be biodegradable and recyclable and therefore will not cause harm and pollute the environment.
This frozen pizza is of premium quality. It possesses the similar quality and tastes alike the authentic Italian wood-fired pizzas served in Italian restaurants. Although Pizza Pan is an Australian company, the pizzas that are distributed and sold in Malaysia has been prepared in a manner prescribed by Islamic law and therefore, is certified ‘Halal’.
Price is the only element in marketing mix that generates revenue. Apart from that, price is also the exchange value of a good or service in a market. Therefore, pricing strategies are important to businesses as price will determine the amount of sales and profit per unit sold. The price of the product is determined by the cost of the business as if the price is too high or too low, the consumers will spend their money on other goods or other services or the business can go bankrupt due to insufficient sales revenue. How much the potential customers are willing to pay and what they perceive as ‘good value’ has to be taken into consideration when determining the price of the products.
The main pricing approach of Pizza Pan is the cost-based pricing method. The business will implement the “cost-plus pricing” which involves adding a standard mark-up which is reasonable to the cost of the product. Therefore, the business will be able to continue its operations with consideration to its costs and will then be able to avoid a negative cash flow. On the other hand, the business will also carry out penetration pricing for the first few months during the introductory stages in Malaysia. By setting an artificially low price for Cheesy-Lite, it is able to “penetrate” the market quickly and deeply. This will in turn attract substantial amount of buyers and thus Pizza Pan is again able to increase the price of its Cheesy Lite frozen pizza.
In addition, price-adjustment strategies will be used by Pizza Pan. The business will also use psychological pricing which involves pricing products at “odd prices” for instance instead of pricing Cheesy-Lite for RM10, the company will price it at RM9.99 which some customers see it as relatively cheaper.
Place is also known as distribution, channel or intermediary. It is the mechanism through which goods are moved from the manufacturer to the consumer. A channel of distribution consists of a set of institutions which perform all activities utilized to move a products and its title from production to consumption. Distribution channel allows the product to reach its target market easily and efficiently.
Pizza Pan has chosen to distribute its goods through indirect distribution, a channel that contain one or more intermediary levels. The pizzas will be distributed to the target market through retailers and its agent Lucky Frozen Food Sdn. Bhd. Lucky Frozen Food is one of the key players in the frozen food service industry in Malaysia which is focused on supplying a wide range of imported chilled and frozen products to the local market.
Pizza Pan has selected retailers as its marketing channel due to the fact that retailers have a stronger personal relationship with the consumer. Thus, it would be easier for retailers to promote Pizza Pan’s pizza to its consumer. Besides that, retailers often have a strong ‘brand’ themselves which means customers have faith in the retailers’ goods.
Agents are mainly used in the international markets. That is the main reason why Pizza Pan, an Aussie company has decided to market its pizza in Malaysia through agents. Moreover, agents do not take title of the goods which means that capital is not tied up in goods. This approach is used as the pizza needs to get into a market soon. Nevertheless, marketing the pizza through agents can be very costly and difficult to keep control.
Promotion is designed to inform the marketplace about the product, how good it is and where they can purchase it. It is also intended to persuade the customers to try the product or encourage purchasing more of an existing product. Pizza Pan’s image has not been established as the brand is thoroughly new in Malaysia. Therefore, the business will have to rely on promotional strategies to increase market share through brand awareness as well as build stronger reputations than their competitors.
In conjunction with Pizza Pan marketing goals to create a positive business image in the local Malaysian market, the business will use public relations as a promotional strategy. Public relations are the use of publicity and other non-paid form of advertising to establish a positive image within the mass market including the business’s target markets. The business will hold an opening ceremony to mark the launch of the business’s activities. This event will attract the members of the media to cover the event and write a review of the Pizza Pan’s goods. Furthermore, 25% of the proceeds of the opening night’s profits will be donated to the Orphanages and the Old Folks Homes. In this way, the business will be able to contribute to the society as well as develop a positive image in the eyes of its potential customers.
Moreover, Pizza Pan will advertise its product in the newspapers and magazines. The business will start advertising in a big scale through local paper listings, The Star, to enable the business to reach out to its target market widely. Then the business will continue its advertising efforts for another six months in popular magazines such as, Nona and cooking magazines such as, Rasa. As advertising is the most effective form of communicating, the business will be able to obtain coverage from a large number of people in various geographical areas. Therefore, customer awareness of the business will increase as advertising covers a wide region.
Pizza Pan will carry out its marketing plan with full force to establish itself in the consumer market. The business instigates its marketing plan in consideration to achieving the main aims of the business which is to provide exotic and premium quality pizzas to its customers. The business also aims to gain a great market share and a positive image in the eyes of the consumers. The business places full priority in the need and the wants of the customers. The business catches the market niche to provide the best in quality in them.
Pizza Pan implements various marketing strategies to achieve its main aims. The business uses environmentally friendly packaging, psychological pricing, cost-based pricing, advertising and indirect distribution strategy to name a few.
The marketing plan will be consistently monitored and altered as time goes on as the business environment constantly changes. The success of the business relies on the effectiveness of the marketing ideas. The marketing effort will be effectively managed to ensure the business’s triumph is glorious.
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