marketing management

MARKET ANALYST SID# 0971446/1

TASK A

QUESTION 1

AN ANALYSIS OF THE MARKET IN ANYTOWN

1.0 PESTLE Analysis:

Political

The political environment is stable. The Government is presently is running a deficit budget but

maintains its spending to stimulate the local economy. Taxation rates remain quite favorable for

individual and business to stimulate spending.

Economic

The country was minimally affected by the global financial crisis, growth has continued but at a

reduced rate. The unemployment rate is low, under 6% which is favorable to stimulate local

spending.

Social

There are many government social benefits to workers; many are ignorant to this fact. The

social benefit system is severely underutilized.

Technological

Trinidad has strong technological systems most of which have developed in tandem with the

energy sector. There exist a highly efficient telephone, media and internet system.

LEGAL

The Trinidad legal system is robust in nature; there are many laws that govern the business

industry including taxation premises inspection and the rights and safety of workers. Failure of

compliance can result in loss of operating license.

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ENVIRONMENTAL

Environmental laws are enforced by the Environmental Management Association and Ministry of

health. Failure to follow the environment standards can lead to loss of license.

1.1 SPICC ANALYSIS

SUPPLIER

There are approximately eight vegetable farmers within the neighboring village with relatively

large capacity, quality produce and year round production. Supplier competition offer

competitive prices to the pizza shop.

PUBLICS

Currently there are no companies, organizations, pressure groups or trade unions that can

influence the business; the public’s atmosphere is generally neutral.

INTERMEDIARIES (DISTRIBUTORS)

Product is business to customer, no external distribution company required, the pizza business

possesses its own distribution system, consisting of two mobile drivers, drive thru and walk in

distribution counters.

CUSTOMERS

There is a large customer base, given the large geographical area. The demographics indicate

a larger middle aged population with considerable income with a high number working in

industrial areas. The target customers have fast paste lifestyles and rely on fast food.

COMPETITORS

Within the local and adjacent communities there exist several food outlets. There are no Pizza

outlets and the reputation of the existing fast food outlets are akin to poor quality and service.

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1.2 SWOT Analysis:

STRENGTHS WEAKNESSES

Finances: Bob and Lloyd has $1,000,000 to

start the business

Reputation: Bob and Lloyd has a reputation

of efficient reliable and friendly service.

Employee Base: Salaries are generally higher

than competitors to motivate staff.

Knowledge: good knowledge of local

business environment.

Lack of Experience: limited experience in the

fast food industry.

OPPORTUNITIES THREATS

Increase Market Share: Market share can be

increased due to the poor reputation of

competitors.

Low Cost ingredients: Cheaper ingredients

due to supplier competition. Savings can be

transferred to customers increasing market

share.

Promote Healthy Eating Habits: The trend

towards healthy eating will encourage

customers to invest in pizzas as a healthy

alternative to Roti and Chinese. This will result

in increase sales.

Increased Tax: New taxes directly reduce

disposable income of persons and reduces

spending

Recession: unemployment is synonymous

with this, hence reduced target market.

Poor Weather The change in weather pattern

(floods or drought) may cause a shortage of

ingredients required to make pizzas.

Competitive Threat: The Pizza business

requires low capital to enter hence there is a

treat of competition.

Weak Change Management : Poor change

management from manufacturing can

significantly reduce efficiency and quality.

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TASK A

QUESTION 2

2.0 RESEARCH INTO THE MARKET USING SECONDARY DATA SOURCES

The government census, budget reports and economic activity reports have been utilized to

determining the market age structure, population distribution growth rate, unemployment rates

and inflationary influence. Published annual financial documents for the last three years from

Prestige Holding have also been utilized to determine its performance as Pizza Hut is a

subsidiary.

2.1 IDENTIFICATION OF TOTAL MARKET SIZE

The pizza is being targeted to people in the geographical area as follows east, Oropouche, Dow

village, Avocat, to the south: Fyzabad, Grants road, Mon Desir and west: Chinese village and La

Brea. The market size identified represents a customer base of approximately twenty thousand

customers. Workers who transit to Atlantic LNG, Labidco and Alutrint and the maxi and taxi

services are also add to the market size as the pizza shop is along the main road access to

these areas.

2.2 IDENTIFICATION OF AN APPROPRIATE MARKET SEGMENT (QUANTIFIED)

The identified segments of the population to be targeted are the middle to upper income

households where one or both parents are employed and persons who frequently use the main

road access where the pizza shop is located.

The lifestyle of the segment targeted is a very fast passed one, making it difficult to cook every

meal at home. There are also the persons who use the road access who have to travel long

distances and little time to stop and wait. The health conscious and religious needs are also

targeted with the use of fresh vegetables and halal meats.

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Based on information from the government census indicated the population was approximately

43,000. A large market segment exists for the pizza industry due to the large work force, Since

then the population has grown due to the ALNG, Alutrint and LABIDCO projects causing

migration closer to the job.

2.3 USE OF SEGMENTATION CRITERIA

There are several descriptors that were used to determine segments, namely demographics,

geographic, and behavioral.

In the demographic segment age, income, occupation, and religion were considered. Persons

of all ages can consume pizzas; however specific attention was paid to the relatively large

working age group. The incomes in these groups are significant as industries; government and

private business have increased salaries due to competitiveness.

The geographic market is the neighboring communities. Communication to these customers of

products is simple and effective due to relatively close proximity. The pre order to pick up and

delivery system offers a significant convenience.

The behavioral descriptor focuses on customer needs, given that each purchase is a problem

solving process, the convenience of home delivery that is just a phone call away is attractive.

TASK A

QUESTION 3

3.0 MARKETING OBJECTIVE FOR PRODUCT /SERVICE

The marketing objective is to deliver a product and service that that leaves a positive impression

in the hearts and minds of our customers. We are producing a high quality product and superior

service at the best price in the cleanest environment.

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Task A

QUESTION 4

4.0 A TACTICAL PLAN USING THE MARKETING MIX

4.1 Product

The product offered is both tangible and intangible i.e. the delicious pizza and the excellent

delivery service. The pizza consists of freshest ingredients of the highest quality with the most

friendliest and efficient service and delivered to their doorstep piping hot.

The packaging consists of a strong white pizza box with our brand to illustrate the natural

freshness. The boxes will be bordered with a customized link pattern which allows for esthetics.

The writing will be large and bright to invoke curiosity in potential customers.

The branding utilizes the corporate strategy to make it synonymous to quality and the best price.

The brand shall be displayed on all cups, boxes, uniforms and place of business interior and

exterior.

4.2 Packaging/Branding

The brand colors of green, yellow and red, together with the fresh vegetables convey the

naturalized nature of the pizza. The bright outspoken color attracts attention and leaves an

impression in the mind. The logo expresses the convenience to obtain a healthy meal

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4.3 Price

Pizza prices average $45, $75 and $105 (small medium and large) and are adequate for 2, 3

and 5 persons respectively.

The prices were influenced by established brands pricing, the anticipated demand, cost of

production and a modest profit margin. The prices are cost plus pricing where the desired profit

is added to the sum of cost of product and expenses to produce.

4.4 Pricing Strategy

Being the first pizza entrant to the market penetration pricing was used to allow low price to

attract as many new customers as quickly as possible and to capture a large share of the total

market before it becomes crowded with competitors.

4.5 Place (distribution)

The channel of distribution is direct distribution in order satisfy customer by providing hassle

free piping hot pizza. A delivery service will deliver pizzas to the customer’s doorstep and will

operate with the targeted geographical area of approximately a five mile radius. The customer

can call in and order in advance and request delivery or pick up as required and save time.

4.6 Promotion

Four methods were used to promote the pizza shop, direct marketing, sales promotion,

advertising and public relations.

Colorful Flyers to be distributed in targeted geographical areas highlighting services provided.

Alliances shall be formed with postal service to distribute fliers in parallel with mail deliveries.

Mobile public audio system is a low cost and effective to reach the total geographic target

market, flier distribution can be maximized during this activity. The announcements will be timed

accordingly to attain maximum coverage, such as weekdays after working hours.

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A buy 2 get 1 free, family special (product offer) shall be implemented to attract family

purchases.

Banners will be strategically placed in locations such as junctions, popular liming spots and

along roadways leading to the pizza outlet to promote sales.

Internet advertising will be done on popular social website such as face book and hi 5 etc.

Sponsorship to local cricket team the Hat Squad to enforce corporate and social responsibility

4.7 Approximate Annual Promotion Cost

ADVERTISEMENT

MONTHS FLYER

S

MIC

MAN

RADIO BANNER

S

PRODUCT

OFFER

SPONSERSHI

P

ITERNE

T

TOTA

L

DECEMBER 600 600 4200 450 2000 0 600 8450

JANUARY 600 600 4200 300 2000 10000 600 18450

FEBRUARY 600 600 4200 300 2000 0 600 8300

MARCH 600 600 4200 150 2000 0 600 8150

APRIL 600 600 4200 150 2000 0 600 8150

MAY 600 600 4200 150 2000 0 600 8150

JUNE 600 600 4200 150 2000 0 600 8150

JULY 600 600 4200 150 2000 0 600 8150

AUGUST 600 600 4200 150 2000 0 600 8150

SEPTEMBE

R

600 600 4200 150 2000 0 600 8150

OCTOBER 600 600 4200 150 2000 0 600 8150

NOVEMBER 600 600 4200 150 2000 0 600 8150

TOTAL 10855

0

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4.8 Advertising Schedule

Activity DEC JAN FEB

MA

R APR MAY JUN JUL

AU

G SEP OCT NOV

Flyers XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Banners XXXX XXX_ XXX_

X

X_ __XX __XX

__X

X

__X

X

__X

X

__X

X __XX

__X

X

Mic Man XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Product

Offers XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Radio XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Internet XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Sponsorship __X

_

NOTE – X=1 WEEK & _ = 1 WEEK NOT UTILIZED

A rigid advertising program will continue for the first year of operation

Product offers will be conducted every Friday of each week, 20$ off the first 100 pizzas.

Sponsorship to local cricket team will be done 3rd week in January.

4.9 Physical Evidence

The building has been painted the color used on the brand logo. The interior is spacious and

white to express cleanliness, with several couches for comfortable seating. The building is fully

air-conditioned and equipped with a flat screen television for the viewing pleasure of the

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customers. There are separate washrooms for customers, kitchen staff and drivers and all are

well maintained and contains automatic air fresheners. There are several plants and wall

pictures to create a comfortable atmosphere.

The external has spacious parking for ten vehicles, well trimmed lawn and a prominent logo at

the front to capture the customer’s attention.

4.10 People

All employees will be trained in hospitality to ensure good etiquette is maintained to sustain their

reputation of excellent customer service. Their attire will vary in design with cooks wearing all

white and a white chef hat. The kitchen staff in all white, receptionist and drivers will wear the

colors of the logo. The staff is motivated by higher salaries than their competitors.

4.11 Monitoring /Controls

The monitoring and control system monitors the performance of the business to verify if the

firm’s objectives are being met. When it is not, the firm will employ strategies to re align staff to

meet the target objectives.

Customer Surveys will be conducted to understand how the customers’ view the business, to

see whether or not the objective of superior service is being met. This information can then

guide Bob and Lloyd on the action required to bridge and gaps if necessary with training.

Identifying customer complaints is an crucial objective and it must be acted upon by the

manage in a timely manner to ensure that the loyalty of the customer is retained. Complaints

can impact negatively the image of superior service therefore it must be dealt with accordingly.

5.0 Conclusion

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The marketing function has identified and selected the desired target market using the relevant

criteria. An effective promotional plan has been developed and a budget and timeline has been

developed to execute same. Customer service is monitored and the necessary actions taken to

ensure the standard of superior service are maintained.

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marketing management

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