Marketing Plan: Pizza
A marketing plan is a complete document that blueprints the summary on how an enterprise will execute its marketing strategy and use a permutation of resources to achieve business goals, especially customer acquisition or sales targets (Diamond, Ensor, & Ashford, 2010). A marketing plan plays a critical role in increasing profits if an enterprise shapes it based on customer behaviors (Alon, 2014) and primarily through behaviors targeting onsite and network aspects (Diamond et al.). For instance, a comprehensive look at the marketing plan of pizza will help in the analysis of segmentation application, gap analysis, benchmarking, comparative advantage, pricing, and channels and tactical marketing mix strategy (MarketWatch, 2019).
Market Segmentation Application
Market segmentation refers to a process of categorizing consumers of a product into artificially made or naturally existing fragments of consumers exhibiting similar product characteristics or preferences (Dohicar, Grun, & Leisch, 2018). According to Dohicar et al. (2018), the process is statistical with many decisions of the analysis affecting the final decision solution. A sound market segmentation analysis attributes to several approaches, including organizational constraints, and choice of segmentation variables including and not limited to demand, age bracket, and income.
For instance, the pizza market in the United States of America is segmented based on per capita disposable income, which has a direct influence on the decisions of the consumers to buy or eat pizza. Also, segmentation of the market lies in the age bracket of the consumers whereby there is a category for consumers aged between 45years to 64 years, 65 years and older, and consumers under 25 years of age (IbisWorld, 2019). Due to heterogeneous nature in the pizza market and the quality of service in the fast-food pizza market, a gap prevails that creates an opportunity for a draft of a marketing plan to fill the gap and satisfy the needs of the pizza customers.
Gap Analysis
Service quality in the Pizza Fast-food
Customers, who dominate a central role to a pizza fast-food restaurant service, do not fall in a homogeneous class. Customers from different socio-economic and ethnic upbringings. The insight of the quality of pizza in a fast-food restaurant varies as services offered vary from customer to customer and also for the identical customer at varying instants of time, contingent to the disposition and mind-set of the same customer at a particular point of time. A client who wants pizza and enters to an outlet in the evening and realizes that services for their class or age bracket are not working is prone to be exceedingly more disgruntled.
Benchmarking
Other issues that may affect insights of pizza fast-food eatery service include general atmosphere at the pizza fast-food restaurant, previous experiences with the food restaurant, an understanding of the services presented by the fast-food pizza cafeteria, Procedures shadowed. Knowledge of or experience with opponents’ products and services, pizza and fast-food 191 restaurant having a specific menu which might be considered as a rank sign (IbisWorld, 2019). Contact with and or sentiments of other clients’ needs; where there is a straight interface with the pizza fast-food cafeteria’s staff guarantees all clienteles go back with the intelligence of gratification. Many pizza fast-food restaurants have set principles – no more than six customers should be queueing at any opening; every customer in a line should receive service within 15 minutes.
Competitive Advantage
Competitive advantage refers to distinctive characteristics goods or services of a business entity that make them superior to all other choices of customers (Amaded, 2019). Offering pizza that guarantees quality to the customers regardless of their age bracket, and disposable income becomes the comparative advantage to guarantee the success of the pizza fast-food restaurant. Equality in quality of service delivery for all customers creates a concern for address and, therefore, a distinctive feature from the other pizza and fast-food service providers in the United States of America.
Pricing and Channels
Since service delivery remains equal to all esteemed customers, and regardless of their age bracket and disposable income, pricing will remain equal. Customer intelligence and knowledge will need expansion through social media, including daily nations, televisions and radio broadcasts, and billboards.
Tactical Marketing Mix Strategy.
Promotional discounts
The pizza restaurant will adopt promotion pricing as a mechanism of winning a more significant market share that outweighs the competitors. Promotional discounts will prevail to all customers during the first week of the market entrance. Promotional discounts attract customers increasing sales (Nouri, Hosseini-Motlagh, & Nematollahi, 2018)
Pricing Strategy
Discount Pricing
Pricing decisions become essential after analysis of the target market. Price adoption depends on factors of cost, competition, and profit objectives of an organization. Discount pricing aims at increasing sales volume and attracts customers from the competitors (Melanie, 2018). Discount pricing keeps an organization at a competitive edge (Businessvictoria, 2019) by attracting more customers who boost sales volume. Therefore discount pricing will be adopted as one of the strategies of beating up the competition.
Penetration pricing
Penetration pricing strategy enables a business entity to gain market share quickly achieved through setting prices low to entice customers (Spann, Fischer, & Tellis, 2015).
Therefore, adoption of penetration pricing will enable the fast-food pizza restaurant to gain a market share quickly.
References
Alon, B. (2014). What is a Good Behavioral Marketing Strategy? Retrieved from https://www.adclarity.com/2014/09/good-behavioral-marketing-strategy/
Amaded, K. (2019). What Is Competitive Advantage? .Retrieved from https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828
Businessvictoria. (2019). Discount strategies. Retrieved from https://www.business.vic.gov.au/money-profit-and-accounting/pricing/Discount-strategies
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis. Market Segmentation Analysis (pp. 11-22). Springer, Singapore.
Drummond, G., Ensor, J., & Ashford, R. (2010). Strategic marketing. Routledge.
IbisWorld. (2019). Pizza Restaurants Industry in the US – Market Research Report. Retrieved from https://www.ibisworld.com/united-states/market-research-reports/pizza-restaurants-industry/
MarketWatch. (2019). Pizza Market Sales Segmentation and Analysis by Recent Trends, Development, and Growth by Trending Regions. Retrieved from https://www.marketwatch.com/press-release/pizza-market-sales-segmentation-and-analysis-by-recent-trends-development-and-growth-by-trending-regions-2019-07-31
Melanie, B. (2018). Discount Pricing Strategy Explained. Retrieved from https://www.unleashedsoftware.com/blog/discount-pricing-strategy-explained
Nouri, M., Hosseini-Motlagh, S. M., & Nematollahi, M. (2018). Proposing a discount policy for two-level supply chain coordination with periodic review replenishment and promotional efforts decisions. Operational Research, 1-34.
Spann, M., Fischer, M., & Tellis, G. J. (2015). Skimming or penetration? Strategic dynamic pricing for new products. Marketing Science, 34(2), 235-249.