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Maestro Pizza Marketing Report

SUBMITTED TO
Dr. Jamid UL Islam

SUBMITTED BY
OSAMA HAFIZ ATAUR RAHMAN
ID:217110563

Abdulrahman Awad
ID:220110438
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Report content

❖ Introduction:
➔ Marketing scope
➔ Marketing approach
➔ Marketing management orientation
➔ Vision
➔ Marketing Objectives
➔ Product Portfolio
➔ Product classification

❖ General Concepts:
➔ Marketing Goals
➔ Marketing Process

❖ Analysis:
➔ Marketing Mix
➔ SWOT
➔ Segmentation
➔ Environment
➔ buyer decision making process in Saudi Arabia & how maestro pizza should take
advantage in every step
➔ Levels of Product

❖ Strategies:
➔ Promotion strategy
➔ Product/Market Expansion Grid
➔ Targeted market
➔ Product positioning
➔ Differentiation & Positioning
➔ Branding
➔ Marketing statement
➔ Pricing

❖ Conclusion:
➔ BCG Matrix
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Introduction:

Maestro Pizza is a local food company owned by a Saudi Entrepreneur. It was founded in 2012
with launching 5 branches at once in Riyadh. From the start, the owner has been dedicated to the
high quality and affordable prices.

Maestro pizza uses contemporary marketing techniques to reach its customers by:

1. Providing high quality products at low prices in comparison to their competitors.

2. Posting exciting short ads “video and graphic” on popular websites and their own.
3. Using social media to market, communicate, feedback and get suggestions from
their followers.
4. Providing a mobile app that can make orders for delivery or pick-up and offering
special promotions for doing so.

❖ Their marketing management orientation is based on a marketing concept.

❖ Vision: to master the pizza in the kingdom

❖ Marketing Department Objectives:

1. Increase their market share:

a. Having a strong customer relation management that communicates with
their customers with a fast response and action to gain their loyalty, trust
and satisfaction.
b. Providing ongoing promotions that align with local events.
c. Offering new products.

2. Create local partnership:

a. Sponsoring the local institutions (Saudi national football team).

3. Increase promotion:
a. Multiple online websites.
b. Football events.
c. Local events.

❖ Product portfolio:
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● Pizza.
● Appetizers.
● Desserts.
● Sauces.

❖ Product Classification
● Convenience product:
○ Inexpensive
○ Available
○ Easy to access

● Product line :

General Concepts:

● Marketing Goals:
○ Attract new customers
○ Provide high quality products.
○ Affordable prices
○ High customer return rates

● Marketing process:
○ Studying the market and understanding customer wants and needs.
○ Designing a market strategy based on their findings.
○ Building an integrated marketing program that provides quality and value for the
customers.
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○ Proper follow up and execution to ensure proper delivery.

○ Understanding customer feedback and applying necessary changes to the program

Analysis:

Marketing Mix:
● Product:
○ Pizza.
○ Appetizers.
○ Deserts.
○ Sauces.

● Prices:
○ A wide range of prices between 10 SR up to 140 SR approximately.

● Places:
○ Main roads.
○ Highly populated commercial roads.
○ Local events.
○ Malls.

● Promotion:
○ Local product.
○ Saudization.
○ Fresh produce.
○ 100% mozzarella cheese

SWOT:

❖ Strength
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● Very reasonable prices

● Freshness of product components
● A comprehensive selection of pizzas.
● Tasteful Pizza
● National local company
● Sympathy for native citizens.
● Government support in terms of regulations
● Good CRM management

❖ Weaknesses:
➢ No dine in service

❖ Opportunities:
➢ Expansion to the GCC market.
➢ Expansion to the global market.

❖ Threats:
➢ New menu items
➢ - Venture more in home delivery
➢ - Venture into new markets
➢ - Create more brand awareness
➢ - Design and maintain a website/ Online Order entry / Order Tracking

❖ Segmentation analysis: Geographic Segmentation:

■ Main Cities such as Jeddah, Riyadh, Dammam…

➢ Income segmentation:
■ Middle rage income and below.
➢ Demographic segmentation:
■ Age Groups of 18-35 year old.
■ College students.
■ Families
■ Football fans.

❖ Environment analysis:
➢ Microenvironment:
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■ The Company: - experience plays an important role in its activities which

is having a major effect on it as it doesn’t have that experience yet to
handle issues that it may face. Response: Proactive.
■ Suppliers: - Selecting the proper suppliers and creating relationships with
them are part of maestro pizzas success and the continuation of their
activities, this has a direct effect on the company as it is still a new one
and it's unknown to the suppliers and needs time to gain their trust.
Response: Reactive.
■ Marketing Intermediaries: - The only ones that are available are the
delivery food apps which creates a mutually beneficial relationship by
reducing the necessary number of staff required to hire for delivery.
Response: proactive.
■ Competitors: - Having multiple competitors with big names and history
competing to gain the customers trust and providing them with services
which can have a negative effect on maestro pizza. Response: proactive.
■ Publics: - One of their marketing strategies is to attack their competitors in
social media by stating that maestro pizza products are local and fresh
which insinuates that the competitors’ products aren’t so fresh and may
contain byproducts, this can have a backlash effect on maestro pizza from
the community to provide evidence of such claims which can in return
cause they to lose the trust of the people. Response: reactive.
■ Customer: - Having a satisfied loyal customer base will increase the word
of mouth in a positive direction which in return can help increase the
customer base. Response: proactive

➢ Macroenvironment:
■ Demographic

● Most of the citizens of KSA are millennials, they represent 70% of

the population which makes them more comfortable in using
technology on a daily basis that causes many companies to direct
their marketing strategies via the internet to cover a big number of
that market.
● The increase of the woman workforce in many fields.
● Major cities are considered the one of the best areas to build a
future for individuals or families due to job availability and variety
and education, which is why many leave their villages or small
towns to them.
● Education and qualified people have increased in the past couple of
years.
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● In conclusion the previous statements show that these changes

have a positive impact on the direction that maestro pizza is taking.
Response: uncontrollable.

■ Economic:
● The current economic situation in the KSA is as follows:
◆ Applying the VAT on products and services at 5% starting
from 2018. -
◆ Oil prices have increased.
◆ Electricity prices have increased.
◆ Water prices have increased.
◆ Applying fees on family members of foreign residents. -
and many more governmental service fees have increased
as well.
◆ In conclusion these changes have caused a drop in the
purchasing power and forced people to change their habits
to fit the current situation which has made the value of the
income to drop. Response: uncontrollable.
■ Natural:
● The natural environment of KSA has no positive nor negative
effect on maestro pizza. Response: uncontrollable.

■ Technological:
● Most current technologies can be adapted and used to provide a
positive effect on Maestro Pizza.
◆ Response: Reactive

■ Political: -
● Forced Saudization on specific jobs. -
● Increased iqama renewal costs. -
● Application of the 5% VAT. -
● Extra governmental fees on companies and institutions. -
● In conclusion, maestro pizza was already promoting Saudi and
local staffing members and had taken a proactive action when
hearing about the upcoming changes and the new laws and
regulation, so when the time came, they were well prepared and
were not affected as much as many others were.

■ Cultural:
● Culture in KSA is based on 3 major factors:
◆ Islamic teachings.
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◆ Tribal traditions.
◆ Family values.
➢ Maestro pizza must take into consideration these
factors when marketing for their products.
Response: uncontrollable.
➢ Competitors analysis
■ Speed of service
● Competitors average = 15 mins
● Maestro Pizza =20-25mins
■ Delivery time:
● Competitors average = 60mins
● Maestro Pizza = 45min

❖ Buyer decision making process in Saudi Arabia analysis & how maestro pizza should
take advantage in every step:
➢ Need recognition:
■ The Marketing strategy of Maestro Pizza depends on attracting customers
by promoting their products as high quality and low prices. As a food
company based on meeting the consumer needs which in this case is
hunger, they must include this need in their promotional plans.
➢ Information search:
■ Social media
■ Mobile applications
■ Online videos
➢ Evaluating the alternative:
■ Easy access to the product
■ Actual price
■ Quality
■ Delivery services
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■ Special offers
■ Fast service
■ Product diversity
➢ Purchase Decision:
■ Deliver exactly what they promote in their advertising campaigns in order
to earn consumers’ confidence.
➢ Post-purchase decision:
■ Listening to feedbacks
■ Taking responsibilities for late deliveries

Strategies:

❖ Promotion strategy:
➢ Medium:
■ TV Channels.
■ Mobile app.
■ Street signs.
■ YouTube.
■ Twitter.
■ Radio stations.
➢ Frequency:
■ Lower prices
■ Fast and timed delivery services.
■ High Quality
❖ Market penetration:
➢ Entering the Saudi market and promoting an already known product “pizza”.
❖ Market Development
➢ Maestro Pizza trying to reach a new market”low income individuals”.
❖ They use undifferentiated marketing
❖ Product positioning strategy
➢ price wars with Domino's Pizza has led to a decline in the quality of the products
resulting in a decline in the positioning of its products against competitors, so
Maestro Pizza must pay attention to the quality of their products improve it in
order to get higher product positioning.
❖ Branding Strategy:
➢ Branding equity:
■ Half way there in gaining consumer confidence
➢ Positioning:
■ Low prices, high nutritional value and high-quality food
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➢ Name selection:
■ Italian name for italian recipe
■ Easy to pronounce, write and remember
❖ Pricing strategy:
➢ Good-value pricing:
■ By providing the right combination of quality and fair price.
➢ Price penetration:
■ Initially set low to rapidly reach a wide market and initiate word of mouth,

Conclusion:

Maestro pizza started their marketing campaign focusing on how low their prices were with a
higher and better quality product than that of their competitor, which spread like wild fire and
that created a hype that cause the customers to have a higher expectation than targeted, in return
they have lost the trust of many that went back to their competitors.

Maestro Pizza Has achieved in segmenting their market in an effective and realistic way that has
made the targeted market measurable and accessible.

They have chosen the oldest known companies in the same field as their competitors (Pizza Hut
– dominos pizza) with the confidence to achieve their goal of having their brand surpass the big
names, as per our observation, their brand is definitely up there with the big names, but they have
yet to surpass them due to some factors:
● It’s a startup in comparison to its ancient competitors.
● Not achieving their targeted customer satisfaction due to high expectation.

Pizza market in Saudi Arabia changed after the entry of Maestro Pizza, there is a high level of
competition among brands, resulting a decline in prices of products in the pizza market.

BCG Matrix:
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References
1. https://mena.yougov.com/en/news/2019/07/23/maestro-reshaping-pizza-market-saudi-
arabia/
2. https://www.raqtan.com/en/webinar-maestro-summary/
3. https://prezi.com/nalzaiw_o9df/maestro-pizza/?
frame=e826265a9473070a8d492749ff48a95d795d1aa4
4.
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