Frizza †Frozen Pizza Marketing Plan Essay

The current size of pizza pie commercialize in India is INR 1750 crores and is growing at the rate of 25-30% per year. scarcely at that place is al ab push through no presence of the wintry pizza in India. separate this to the USA where stock-still pizza industry accounts for 13.6% of total USD 40 one thousand thousand pizza industry. Thus on that point exists an opportunity to launch a overlap in this ara. In this report, we be trying to achieve the following mart enquiry to pot consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for gelid pizza product in India and fin aloney building a grocerying strategy to launch it.We started with the gatekeepers Five Forces analysis. We found out that intensity of attention Competition was low to medium, Avail cleverness of Substitutes was low to medium, Potential Entrants were High, purchaser Power was low and Supplier Power was low-medium. This was followed by primary(a) look for whe re we took great deals (online and live). This was supplemented with secondary research to find out the heterogeneous aspects of consumer behaviour.The core benefits were place as Easy to sterilize and Tasty Food. Generally, the decision makers ar the young earning professionals or the earning penis of the family/ homemaker. In case of the housewife, their decisions argon unremarkably influenced by their pestering children. We then did market segmentation basis dissimilar(a) methods wish customer characteristics (geographic, demographic, socio economic, psychographic), buying situation (consumption rate, consumer predispositions), mediagraphics and personas. We indomitable to target pack in advance base of more than 23 years of age with earnings of more than 2 lakhs per annum.We thitherfore positioned our product as To all those who want a comfortable life and who love good & flushed food, Frizza is a unique looking product that lets you enjoy the taste of heaven, saves your cadence and is there for you Anytime you want it. The product was named as Frizza with the tagline Anytime pizza. We then decided the marketing strategy. Starting with convergence decision, we saw that Frizza is differentiated from its competitors equivalent dominoes basis 4 main parameters (i) Lower footing at equivalent taste (ii) Convenience factor (of using the product anytime rather than sound 12 hours during which a restaurant is open) (iii) Square shape rather than measure shape, which would appeal to children and adults alike (iv) Emotional satisfaction for mothers coming out of the purport that she has cooked a meal for her children. We then decided various characteristics of the product like toppings, etc. basis results from the survey.Due to many reasons as explained in the report, the price came to as 30-40% lower than that of competition like Dominoss. In wrong of the place, we decided to launch the product only in cities given the infrastructura l constraints at the beginning. The retail arguments were decided as supermarkets, speciality stores and super stores, thus following the selective distribution strategy. Various promotional activities (both ATL and BTL) like picture ads, Facebook, newspapers, events, etc. were planned. Finally, financial analysis was done to conclude the breakeven point as 7 quarters.MOTIVATIONThe pizza industry in India is in the first place split into 2 formats dine in and take away. The current size of pizza market in India is INR 1750 crores and is growing at the rate of 25-30% per year. The holding companionship of the current market leader, i.e. Dominos grew 9 times from INR 155 crores in 2007 to INR 1407 crores in 2013 brining the annual growth rate to an amazing figure of 45%. But there are gaps in the market. First, the pizza stores are trammel in number, reach and timing. Thus accessibility is limited. Secondly, although pizzas at lower price points are functional, soaringer end pizzas or pizzas offering variety of toppings speak to upward of INR 200 per pizza.Thus, there is scope to use low determine as a competitive advantage. Hence comes the frosty concept to commit the existing gaps. This concept is already prevalent in developed countries. In USA for example, frosty pizza industry accounts for 13.6% of total USD 40 one million million million pizza industry. As per crisp food global industry mastermind from Market Line, sale of frozen pizza & ready meal market globally account for 41.1% of overall frozen food market. Also, Asia-Pacific is the largest market for frozen foods, accounting for 34.3% of global market value, and supermarkets and hypermarkets form the leading distribution channel for frozen food account for 70.2% of the markets value.OBJECTIVEIn this report, we are trying to achieve the following market research togauge consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for frozen pizza product in India and finally building a marketing strategy to launch it. methodologyPrimary research We had ii kinds of approach towards primary research. We prepared a comprehensive questionnaire to gauge the demographic, socio-economic & psychographic traits and market reaction towards the existing products and willingness to pay of respondents for the frozen pizza product. We conducted live surveys in the nearby malls (Gopalan Mall and Meenakshi Mall) during peak years (a Sunday and the Independence Day) by distribution of questionnaire among the great unwashed of different age, sexual urge and income groups for example college goers, mothers, single men, married couples etc. We also collected online responses across diverse geographic and professional groups via social networking sites and emails.Secondary research We utilise online resources to study the global frozen pizza markets and potential growth of the corresponding in Indian markets and to gather information about the exist ing players and their positioning.FINDINGS1. Porters Five Forces to Understand Industry Competitiveness Intensity of Industry Competition Low-Medium Number of firms- There are large no of players in Indian pizza market. These include the market leader Dominos, Pizza hutch, dadaism johns, Pizza corner, Pizza Express, Smoking Joes, Amul and Local Pizza Producers. But there is no popular gr placidity in frozen Pizza other than Amul. Highly saturated market (Low HHI)- The market is highly concentrated with high HHI of approx 4700.Dominos leads the market with 67% market share with its 600+ stores. Pizza hut is second with around 20% market share and 180 + stores. Others turn over market share from 2-5% with 20-40 Stores. Share of Amul is genuinely low. Demand Supply mismatch- As per our estimates there is clearly no supply in the market, although there seems to be strong demand.Availability of Substitutes Low-Medium Buyer propensity to substitute Though overall competition is high , Competitors in the frozen pizza market segment are low therefore buyer propensity to substitute is very low. Product differentiation & Pricing- The products offered by most of the Pizza producers are similar and there is no differentiation in product currently. The number of products available at comparatively lower prices is less.Potential Entrants High Attractive Market-Indian quick serve up restaurant industry is estimated to be 6000 Cr and is expected to reach 18000 Cr by 2018. The pizza industry is expected to grow at a CAGR 25-28%. Low Entry Barriers and low exit barriers- The capital requirement is alike(p) to other product providers in the market and is not massive in any way. Even the exit barriers are less. Big trademarks-Big global brands like Papa Murphy, Little Caesers are not in India yet and there is potential threat of them Entering India. McCain though not in frozen Pizzas, may enter in the future. Buyer Power Low Uniqueness- Frozen Pizza is still a unique co ncept in India and the firms providing it are also less. Large no. of buyers The large no of Buyers with very few suppliers of frozen Pizza, decreases the bargaining power of buyer. Switching cost- The current pricing building of big brands which is very similar also decreases the power of consumers, forcing them to buy from the available options. Supplier Power Low-Medium Material Suppliers- There is large number of suppliers for ingredients like flour, vegetables, etc. The suppliers for Cheese and imported vegetables are less and so they take hold more power. In-house technology-The technology used by most of the Pizza producer is in-house, which reduces suppliers negotiation power.Amul Frozen Pizza Foreseeing the growth of the frozen food market in India, Amul launched frozen pizza in 2001 in Gujarat. It planned to introduce the product all over India through its already existing channel. But it failed to capture the market and had to close the product year soon. It could n ot adapt to the changes that the Indian quick restaurant and the Pizza market were undergoing in that period. The pricing of Amul Pizza was Rs 45 for a small Pizza which was very high at that time. Also, the product was not positioned well in the market and proper segmentation was not done. But recently, Amul has re-launched its frozen pizza product.2. Consumer BehaviourPrimary market research We received 161 responses (43 offline & 118 online responses) for our survey. The survey selective information was then filtered based on our target segment (discussed later) Employed/Earning member of the family in the age group of 24-41 with more than 2 lakh/annum net income of household. Thus, 83 of our respondents fell under our target market. Core values & Benefits sought-after(a) by the consumers Based on our survey, we came to know that, 27% consumers take pizza, whenever they encounter Too lazy to cook, and 40% take pizza for luncheon or Dinner. The core benefits thus are Easy to Co ok and Tasty Food. Hence our product must be designed to satisfy these core benefits. In addition to this, following are the results for various factors as rated by the respondents. These are on a scale of 1 to 5 with 1 as least important and 5 as most important. conclusion Making Unit Based on our primary market research, it is evident that 55% of our customers who are in the age group of 24-41 are variety-lovers and they used to try latest trends & products. Generally, the earning member of the family or the housewife makes the purchase decision. But their decisions are normally influenced by their pestering children. Decision Making The taste and variety of the food forms the basic evaluation criteria for the purchase decision. Majority of the respondents are passive in information search. And, out of various medium of information, deal preferred to spend time on TV and the list is followed by the social networking sites.3. Segmentation, Targeting, PositioningSegmentation Market research results helped in identifying the market segments. We will use below three giving bases on which we will identify our target market. (a) Based on guest CharacteristicGeographic We expect large no. of customers to come mainly from metro cities in India. Based on our survey, we see less familiarity with the frozen pizza product in Bangalore despite it being one of the biggest cities in India. We expect the situation to be much worse in small cities. Ever had Frozen Pizza before?DisinterestedDemographic The command market segment feces be divided in junior generation with an age group between 12-23 years, Mid-age working people who can spend money on high quality frozen pizzas with their high disposable income and 35+ women mothers who make the Pizza purchase decision for their kids.socioeconomic We can target SEC middle segment of B2&C along with upper segment of A2&B1. Psychographic Based on VALS framework, we have identified 3 major segments (out of 8) as following Strivers They are resource constrained people with high elasticity of demand, who like variety in general and would be keen to try new products offered at an attractive price. Achievers This segment has goal-oriented people with a deep commitment to career. They are looking for timesaving alternatives in marketplace. Believers They are conservative, conventional people with established routine and exhibit high brand loyalty. They are predictable and favor familiar brands.(b) Based on purchase SituationConsumption Behavior/Usage Rate Through the survey we identified people with varying consumption frequency of pizza from hebdomadary to monthly. The typical 80/20 rule where 80% of firms sales are obtained from 20% of customers, doesnt apply in our context. Consumer Predispositions/Product knowledge & emplacement Some of the non-earning teenagers show willingness to pay a higher price and ability to afford high discretionary expenses. There is another segment with an thoughtless attitude towards the product.(c) Based on Mediagraphics It is a new term in marketing literature describing media viewing habits of customers. It helps identify type of promotional media consumer prefers. (TV, radio, profit etc.)SOCIAL NETWORKING(d) Personas Basis the above inputs, we made the following personasAnjali (16) College-going student who lives with her parents and spends most of the time with her college friends. She has a large circle of girl friends with a very busy social life. She doesnt have astrong brand loyalty and currently consumes pizza from all available major brands by taking turns. She is also very active on social networking sites. Rahul (27) Rahul is an single(a) IT engineer. His work life is very hectic and often eats out or gets food delivered at home. He lives in an apartment and is earning sanely well. He spends lot of time on Internet but doesnt have a very busy social life, virtual or otherwise. He is bit health conscious and when it comes about Pi zza, he for the most part sticks with Dominos as his preferred brand. He likes their speedy delivery and ease of ordering.Mrs. Bhargav (40) Mrs. Bhargav is a working mother who has a 9 to 5 job. She has two kids less than 10 years of age. She earns well for herself and often buys pizza for her kids depending as and when they insist. She doesnt use Internet match but follows some TV programs very closely. Because of her workload, she often gets tired after coming back from potency and doesnt like idea of home cooked fullfledged meal every day. Targeting Criteria plot of ground picking target segmentCriteria