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A Research on Consumer’s Attitude Regarding FOOD INDUSTRY

SUBMITTED TO:
Humayun Kabir Chowdhury (PhD)
Professor
Master of Business Administration, School of Business and Economics
North South University

SUBMITTED BY:

Group Members ID
Tasnim Mosharof 2016362060
Adiba Hasan 2016216660
Anik Mandal 1935186660
Md. Inzamul Haque Chowdhury 2016034060
Tabassum Choudhury 2016096660

Course Title: Marketing Management


Course Code: BUS -620 Section: 01
Semester: Spring 2020
Date of Submission: 22 April 2020

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Introduction:
We have chosen Pizza Restaurants from food industry to do our project. Right at this moment food industry
is growing rapidly and foods from different continents are introducing on a larger scale. Pizza restaurants
are one of the most popular category of food places. To Start with the initiation of the project we have
started with the popular brands available in our country then tried to fix on the attribute and scale them
based on the preference.
Brand Selection:
Based on the discussion and our visit history we have come to these 7 options to consider for our project.
We tried to pick popular pizza shop across Dhaka so that we can give better inputs when it comes to
attributes scaling points. So, all these 7 options are very well known to us.

Pizza Chain Name


Dominos

Pizza Hut

Pizza Inn

Pizza Guy

Cheese

Attributes Selection:
We have selected the following attributes based on discussion. We had few other options on our discussion
after pivoting all the attributes we have finalized top 5 attributes which was more relevant to us in terms of
priority matrix.
Quality of food [Selected]
Price [Selected]
Service [Selected]
Location [Selected]
Taste [Selected]
Menu Options [Deprioritized]
Convenience [Deprioritized]
Aristocracy [Deprioritized]
Reasoning behind attributes Selection:
Quality of Food:
When it comes to Pizza, Quality and Taste these two key factors play a major role. Hence it is the first and
foremost responsibility of any business organization to maintain the quality and standard of the food as
customers do not ever want to compromise when it comes to evaluating the service based on these two
factors.
Price:

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We consider price as an attribute in our questionnaire because price is an important component for Pizza.
Consumer cannot buy Pizza if they cannot afford the price of it. So, Price is a big issue for buyers.
Service:
When people are rating Pizza the first thing that comes on their mind is how well the restaurant is
performing. If we look at the reviews of any Pizza Restaurant the most important part people are talking is
service of the restaurant which is based on functional features of a Pizza. Service is the most important
feature in choosing any restaurants. The behavior of the waiters, the ambience, the greetings etc.
Location:
Location is more than just being able to find a shop. Commercial areas, shopping centers, malls, office
concentrations, industrial areas, airports, hotels/ motels, hospitals, recreation complexes, amusement parks
are the prime locations for any pizza place. Every city and the individual neighborhoods have a structure.
Taste:
Taste is one of the deciding factors when it comes to select a restaurant place. Because based on taste
customers decides on the restaurants in case repeat dine in or order. In terms of selecting a new restaurant
for having pizza people firstly ask about taste whenever they ask from friends or family.

Weight Distribution:
To Distribute the weight, we have considered individual inputs and based on that we have figured out the
attributes ranking.

Members Quality of food Price Service Location Taste


Inzamul 3 1 2 2 2
Adiba 3 2 1 1 3
Tasnim 2 3 2 1 2
Tabassum 3 1 2 1 3
Anik 3 2 1 1 3
Attributes Quality of food Price Service Location Taste
Individual Wrights 3+3+2+3+3 1+2+3+1+2 2+1+2+2+1 2+1+1+1+1 2+3+2+3+3
Total Weight 14 9 8 6 13
Importance Order 1st Priority 3rd Priority 4th Priority 5th Priority 2nd Priority
Weight (10 Point Scale) 2.8 2 1.5 1.2 2.5

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For Measuring attitude score we have designed questionnaire based on the 5 attributes and 5 different
brands of pizza chain that we have selected initially. Attributes are Quality of foods, price, Service, Taste
and Location and brands are Dominos, Pizza Hut, Pizza Inn, Pizza Guy and Cheez. We have designed the
questionnaire based on 25 questions where we have covered all the 5 attributes for mentioned 5 brands.
We have conducted the survey with the help of our classmates and other friends communicating them
over mail or social media. We have collected 31 responds where 20 people are from North South
University and 11 People are from outside of North south University.
Attitude Score Calculation:
For Calculating attitude score of each brand, we have followed the below process-
Points against 5-point Scale
We have used a 5-Point Scale starting from Strongly Agree to Strongly Disagree.
Point Scale Name Points
Strongly Agree 5
Agree 4
Neutral 3
Disagree 2
Strongly disagree 1
Total & Average Value of Participants
Then We have added up all the score based on the respondents reply as per the above score and then
made a average of 31 Respondents which shows in the below Two Table from the second table as we can
see we have considered the believe strength that we have fixed before through discussion.
Total Value
Attributes Name Quality of Food Price Service Taste Location
Dominos 126 114 119 128 133
Pizza Hut 121 102 124 109 124
Pizza Inn 109 103 115 109 119
Pizza Guy 111 103 113 110 111
Cheez 125 116 115 121 116

Believe Strength 2.8 2 1.5 2.5 1.2


Average Value
Attributes Name Quality of Food Price Service Taste Location
Dominos 4.1 3.7 3.8 4.1 4.3
Pizza Hut 3.9 3.3 4.0 3.5 4.0
Pizza Inn 3.5 3.3 3.7 3.5 3.8
Pizza Guy 3.6 3.3 3.6 3.5 3.6
Cheez 4.0 3.7 3.7 3.9 3.7

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Final Attitude Score
Participant's Average Value*Believe Strength
Attitude
Attributes Name Quality of Food Price Service Taste Location Ranking
Score
Dominos 11.4 10.3 10.7 11.6 12.0 56.0 1
Cheez 10.9 9.2 11.2 9.8 11.2 52.4 2
Pizza Hut 9.8 9.3 10.4 9.8 10.7 50.1 3
Pizza Inn 10.0 9.3 10.2 9.9 10.0 49.5 4
Pizza Guy 11.3 10.5 10.4 10.9 10.5 53.6 5

Finally, we have multiplied the participants average Value with the Believe strength and found the
final attitude score as we can see on the above table. We also made a ranking based on the score.

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Attribute Based Questionnaire:
While making Dine in or Take away decision of Pizza Places You opinion about on the
following criteria of "Dominos"
I really like the quality of pizzas of Dominos
Dominos I would love to pay the price that they charge
Services of Domions are a deciding factor while making decision
I really like the taste of the Pizzas of Dominos
Location Convenience is important while selecting Dominos as a Pizza Place
While making Dine in or Take away decision of Pizza Places You opinion about on the
following criteria of "Pizza Hut"
I really like the quality of pizzas of Pizza Hut
Pizza Hut I would love to pay the price that they charge
Services of Pizza Hut are a deciding factor while making decision
I really like the taste of the Pizzas of Pizza Hut
Location Convenience is important while selecting Pizza Hut as a Pizza Place
While making Dine in or Take away decision of Pizza Places You opinion about on the
following criteria of "Pizza Inn"
I really like the quality of pizzas of Pizza Inn
Pizza Inn I would love to pay the price that they charge
Services of Pizza Inn are a deciding factor while making decision
I really like the taste of the Pizzas of Pizza Inn
Location Convenience is important while selecting Pizza Inn as a Pizza Place
While making Dine in or Take away decision of Pizza Places You opinion about on the
following criteria of "Pizza Guy"
I really like the quality of pizzas of Pizza Guy
Pizza Guy I would love to pay the price that they charge
Services of Pizza Guy are a deciding factor while making decision
I really like the taste of the Pizzas of Pizza Guy
Location Convenience is important while selecting Pizza Guy as a Pizza Place
While making Dine in or Take away decision of Pizza Places You opinion about on the
following criteria of "Cheez"
I really like the quality of pizzas of Cheez
Cheez I would love to pay the price that they charge
Services of Cheez are a deciding factor while making decision
I really like the taste of the Pizzas of Cheez
Location Convenience is important while selecting Cheez as a Pizza Place

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Participant's Average Value*Believe Strength
Attributes Quality of Attitude
Price Service Taste Location Ranking
Name Food Score
Dominos 11.4 10.3 10.7 11.6 12.0 56.0 1
Cheez 11.3 10.5 10.4 10.9 10.5 53.6 2
Pizza Hut 10.9 9.2 11.2 9.8 11.2 52.4 3
Pizza Inn 9.8 9.3 10.4 9.8 10.7 50.1 4
Pizza Guy 10.0 9.3 10.2 9.9 10.0 49.5 5

Based on our attitude score survey we found out highest attitude score for Dominos where
they got high preference for Location convenience. Based on this Attitude score we are
considering Dominos as Market Leader and We will be selecting strategies for Dominos
considering them as market leaders.
Based on the survey we can see this availability of their restaurants and also their Home
delivery availability worked as one of the key deciders of their highest attitude score. Besides
convenience, Taste & quality of food are the second & third factor worked for them as this
two of the crucial attributes in terms of food industry. They also got highest preference at
these two categories as well.

Dominos:
Attributes Dominos Ranking S/W Plotting
Location 12.01 1 Strength
Taste 11.56 2 Strength
Quality of Food 11.38 3 Strength
Service 10.75 4 Weakness
Price 10.30 5 Weakness

Market leadership is not simple task. Other firms continually challenge the leader’s strengths
or try to take advantages of its weaknesses. The leader firm might become weaker or old-
fashioned against new entrants as well as existing rival firms.
Expand the total market strategy:
Market leader firms can normally gain the maximum when the total market expands. The
focus of expanding the total market depends on where the product is in its life cycle. This
strategy can be used when a product is in the maturity stage.
Market leaders can look for new users, new uses, and more usage of its products when the
product is in the maturity stage of the product life cycle. Considering the overall portfolio, we
can easily say that Domino’s pizza is in Maturity stage right at this moment.
As a Market Leader Dominos can go for Expanding the Market strategies by opening more
outlets and availing more delivery point options for their customers. As their customers prefer
convenience (based on the survey) mostly. This will be a sustainable option for them to
sustain in the market in the long run.
Defending market share strategy:

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When the leader tries to expand the total market size, it must also continuously defend its
current business against enemy attacks. In this strategy, the leader firm must keep its costs
down, and its price must be consistent with the value that customers see in the product.
There are six ways that a market might use to protect its market position:

Position Defense

Flanking Defense

Pre-emptive defense

Counter offensive defense

Mobile Defense

Contraction Defense

Flanking defense:
This strategy both guards the market position of leading brands and develops some flank
market niches to serve as a defensive corner either to protect a weak front or to establish an
invasion base for counterattack.
As Currently Dominos has only one brand “Dominos”. They can take this strategy as one of
their strategy as a market leader. They can introduce some flank market niche to give a
counterattack to the new entrants keeping their foothold strong as a brand “Dominos”.

Counter offensive defense:


This is a strategy of identifying a weakness in an attacker and aggressively going after that
market niche so as to cause the competitor to pull back its efforts to defend its own
territory .When a leader is attacked, he may base his counterattack in the attacker’s territory.
This can work as a plan to attack competitors. For example, if in near future Cheez attacks
Dominos as Dominos is the market leader, they can attack in Cheez’s territory of expertise by
delivering 24/7 in residential areas with better service and pricing. As Service and Pricing is
core weakness area of Dominos right at this moment. This will help them to gain quick
market share over its competitors.

CHEEZ

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From the analysis of Consumer’s attitude towards different attributes regarding brand
CHEEZ is somewhat satisfactory. That’s why CHEEZ is in the second position among five
brands. Based on this, we can say that they are the market challengers into the market.
Because market challengers are the firms that fights to increase their market share. So, their
objectives are to take market leader’s position. The weakness of CHEEZ we found from the
score is their Service & Price. If we consider service this is the only thing which differentiate
CHEEZ from DOMINOS (market Leader). They just need to focus on their Service to
compete with the market leader.
Basically, to attack the leader or the immediate competitor with the intention to capture a
greater market share and earn huge revenues are recognized as Market Challenger Strategies.

Attributes Cheez Ranking S/W Plotting


Quality of Food 11.29 1 Strength
Taste 10.93 2 Strength
Location 10.48 3 Strength
Price 10.48 4 Weakness
Service 10.39 5 Weakness
Flanking Attack:
A competitive marketing strategy in which one company attacks another in a weak spot,
commonly by paying maximum attention to either a geographic region or a market segment
in which the rival is under-performing.
From our analysis, we found Weakness of DOMINOS is price. Comparison with CHEEZ
regarding price, CHEEZ is higher than DOMINOS. So, as per flanking strategy CHEEZ can
able to keep themselves best from DOMINOS (as price is their weak point).

Pizza Hut:

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After conducting the survey, we observed that Pizza Hut got the highest reviews in terms of
Service and Location convenience. Customers feel that Pizza Hut maintains quality service
and they are very consistent when it comes to serving the customers in the best possible
manner, be it dine in or home delivery service. On the other hand, customers do feel that
Location convenience plays a vital role at the same time. Pizza Hut has so many branches or
outlets and thus it is convenient for the customers to dine in there too. Hence, compared to
other brands Pizza Hut achieved the highest positive reviews in terms of Service and
Location convenience. But Price can also be a huge factor for customers as in a developing
country like Bangladesh customers tend to be a bit price sensitive. Thus, customers feel that
Pizza Hut’s food prices are higher than the other brands.

Attributes Pizza Hut Ranking S/W Plotting


Location 11.20 1 Strength
Service 11.20 2 Strength
Quality of Food 10.93 3 Strength
Taste 9.85 4 Weakness
Price 9.21 5 Weakness

Market Follower Strategy [Adaptation Strategy]:


However, after analyzing the attitude score and customer feedback, we can state that Pizza
Hut falls under the follower category and being a follower, they should take necessary steps
and form strategies to sustain in the market. Being a follower Pizza Hut should use the
adaptation form of market follower strategy which is also known as white collared market
strategy. Pizza Hut will try to adapt from its closest competitors that serve similar products in
order to fill in the gaps in the market. Pizza Hut will go for adaptation strategy as it has great
potential to overcome barriers and adapt to changes at the same time. It has the ability to
adapt, learn, grow, evolve and make better products than the higher competition. This
strategy will help Pizza Hut to become a market leader after adapting, learning, growing and
overcoming the gaps by producing what is needed to make it led the role. Pizza Hut can
follow the closest competitor’s pricing strategy and take essential steps in order to fulfil the
preferences of its customers

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Pizza Inn:
From the analysis of Consumer’s attitude towards different attributes we observed that Pizza
Inn got the highest score in terms of location convenience. So it’s clear that Pizza Inn just
want to be wherever their customers are and they make as convenient as possible to visit.
Service is another important factor in the restaurant industry and our brand Pizza inn’s
service is very satisfactory according to our survey, which creates brand loyalty as well. Price
is a tool of competition. Customers feel that Pizza Inn’s prices are higher than the other
brands and it is a huge factor for customers as customers tend to be price sensitive.

Attributes Pizza Inn Ranking S/W Plotting


Service 10.21 1 Strength
Location 10.03 2 Strength
Quality of Food 10.03 3 Strength
Taste 9.94 4 Weakness
Price 9.30 5 Weakness

Market Follower Strategy [Adaptation Strategy]:


After analyzing the attitude score and customer feedback we can state that Pizza Inn falls
under the Market Follower Strategy.
Market followers are bound to exist in a mature market. From the 4 strategies of market
followers, Pizza Inn should use the adaptation strategy. Adapter is white collared market
follower strategy. Pizza Inn should try to adapt from their closest competition in order to fill
the gap as well as to overcome the barriers. It can soon become leaders as Pizza Inn has the
great potential to adapt and learn and can even make a better product than the closest
competitors. Pizza Inn can follow the closest competitor’s pricing strategy so that it can
attract competitors’ customer and gain market share. As they already have very good location
& service, focusing on competitive pricing will help them to position their brand over time.

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Pizza Guy:
Consumer’s attitude towards different attributes regarding brand Pizza Guy is not
satisfactory. That’s why their ranking is lower among all other brands. Their biggest
weakness we found from the score is their Taste & Price. We are proposing completely
different strategy for Pizza Guy. We are propising Market Niche Strategy for Pizza Guy.

Attributes Pizza Guy Ranking S/W Plotting


Service 10.21 1 Strength
Location 10.03 2 Strength
Quality of Food 10.03 3 Strength
Taste 9.94 4 Weakness
Price 9.30 5 Weakness

Service strategy:
They can offer one or more services not available from other brands. Such as they can
provide services in suitable locations according to the views of the customers. As Service is
one of their core strength they should highly capitalize on this as this will help them to bring
more customers under their portfolio. Besides if we see Market leaders one of weakness is
service. So being efficient is serivce will make pizza guy a better niche options for customers.
So we are recommending service strategy from Market Niche Strategy for Pizza Guy.

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