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Marketing Management Project Product Launch
Marketing Management Project Product Launch
MARKETING MANAGEMENT
LAUNCH
Of
SUBMITTED BY:
Arslan Ali
Amna Rasheed
Mariam Nazir
Aqsa Rauf
MBA -II
AIR UNIVERSITY
ISLAMABAD.
DATE OF SUBMISSION:
EXECUTIVE SUMMARY
MISSION
KEYS TO SUCCESS
OBJECTIVES
MARKET CONDITION
COMPANY SUMMARY
RESEARCH PLAN
Instrument
Sampling Plan
Gathering Information
Margin of Error
Confidence Level
Population Size
Response Level
Findings
CONSUMER BEHAVIOR
Cultural Factors
Social Factors
Personal Factors
CONSUMER DRIVEN STRATEGY
4 Cs----4 Ps
MARKET SEGMENTATION
POSITIONING
Idea generation
Idea Screening
Concept development and testing
Business Analysis
Beta Testing and Market Testing
Commercialization
PRICING STRATEGY
BRANDING STRATEGY
PACKAGING
ADVERTISEMENT
EXECUTIVE SUMMARY
Our customers are our neighbors as we are residents of our market area. We
will also create and nurture a healthy, creative, respectful, and fun working
environment, in which our employees are fairly compensated and
encouraged to respect the customer and the quality of the product we
produce. We seek fair and responsible profit, enough to keep the company
financially healthy for the long term and to fairly compensate owners for
their investment and risk.
Keys to Success:
Objectives:
To achieve double digit profit margins.
Market Condition:
In the cafeteria of Air University, lots of food items are available except
pizza which, in our opinion, was an opportunity because pizza, being a well
accepted product among the students, pizza can certainly be a success.
We are differentiating our product from others which are already available in
our cafeteria by providing quality pizza with two varieties.
Company Summary
SERVICES
RESEARCH PLAN
To determine the needs and wants of the market and to analyze the
acceptability of our product, we formulated a comprehensive research plan
which included:
INSTRUMENTS:
SAMPLING PLAN:
GATHERING INFORMATION:
CONFIDENCE LEVEL:
The confidence level is the amount of uncertainty. Typical choices
are 90%, 95%, 99%.confidence level and it is important issue in sampling
because when we use sample data to draw inferences about the population,
we hope to be fairly “on target” and have some idea of the extent of
possible error. We have used 90% confidence level in this survey to get
fair results. Higher confidence level requires a larger sample size.
POPULATION SIZE:
RESPONSE LEVEL:
Margin of error 5%
Confidence level 90%
Population size 3000
Response level 50%
FINDINGS:
Question #1
*would u like to have a 4 inches pizza inside your campus?
Yes 74% no 24%
Question#2
*which pizza would you like to have?
74% 4% 4% 18%
Question #3
*which type of pizza would you like the most?
70% 30%
Question#4
*what price would you prefer for heavy cheese pizza?
80% 12% 8%
Question#5
* what price would you prefer for normal cheese pizza?
84% 16%
Question # 6
* would you like some different flavors which are not available in the
market?
36% 64%
Question#7
*which location would you like pizza parlor to be at?
52% 40% 2% 6%
Question#8
*would you like special occasions like sports week, birthday or party etc?
6% 94%
Question#9
*would you like to have a delivery service of pizza?
18% 82%
Question#10
*how many times would you like to have pizza in a week?
16% 44% 44%
CONSUMER BEHAVIOR
Since we are following a customer driven strategy so it is important to take
care of consumers’ behavior towards “Say Cheese Pizza”.
Cultural Factors:
Pizza is not a traditional food item in Pakistan and it was launched in 1993
for very first time in the country. It clearly was not a part of our culture but
gradually has become a part of it and now is widely accepted all over the
country. Moreover, keeping in view the target market, most of the students
of Air University are from the backgrounds where pizza is neither anything
new nor inacceptable.
Social Factors:
Personal Factors:
As far as personal factors are concerned, most of the target customers are of
the age group of 18-25 and hold good buying power as well. In fact, pizza
has become a part of lifestyle of a person in major cities of Pakistan, and this
case is even better when it comes to private sector universities including our
target market.
People want pizza to eat, but why they prefer the brands like pizza hut. The
reason is that because they have no idea where the pizza was made. So we
offer a clear message and product that addresses consumer concerns.
We are offering our pizza with two major varieties and our menu will
include pizzas with various combinations of toppings.
II- Price:
Pizza was introduced as a safe, healthy and affordable product. The prices,
which were, currently set when the product was introduced was affordable
and the objective was to offer a quality product at a standard price.
MARKUP PRICING:
III- Placement:
Pizza is placed in the market at the point where customers can reasonably
look for it i.e. in the lawn. The distribution is intensive. As we selected the
whole university as target market, so consumers can buy the pizza from our
outlet.
According to the survey findings, most of the target customers opted for the
pizza outlet to be placed in university lawn and that shows that it would be
convenient for them and we have well taken care of customer’s convenient
access to the retail outlet. This offers a proper system for consumers to
access the product easily.
IV- Promotion:
IV- Communication
SEGMENTATION
Markets consist of buyers, and buyers differ in one and more ways. They
may differ in their wants, resources, locations, buying attitudes and buying
practices. Through market segmentation a company divides large
heterogeneous markets into smaller segments that can be reached more
efficiently and effectively.
As we are not big company and do not have a business on large scale but
still we segmented our consumer market demographically. It is the most
popular basis for segmentation because customer needs, wants and usage
rates often vary closely with demographic variables. We divided the
consumer market of Air University by age group i.e. from 18-25 years.
POSITIONING
Beyond deciding which segment of the market we will target, then we must
decide what position we want to occupy in those segments. Our products
position is the way the product is defined by consumers on important
attributes- the place the product occupies in consumers’ minds. We have
done our pizza positioning by doing a massive advertising campaign.
COMPETITIVE EDGE:
Marketing Strategy
NEW PRODUCT
DEVELOPMENT STRATEGY
The process:
1. Idea Generation
We have generated many ideas for new product launch in our university.
We have surveyed our university campus and found that what is missing in
our university. Many ideas were put in by our group fellows like ice-cream
parlor, pizza corner, old book shop, dance classes etc
2. Idea Screening
o The object is to eliminate unsound concepts prior to devoting
resources to them.
o The main things which we considered in this stage are:
the customer in the target market benefited from the
product
the size and growth forecasts of the market
segment/target market
the current or expected competitive pressure for the
product idea
the industry sales and market trends the product idea is
based on
the product will be profitable when manufactured and
delivered to the customer at the target price
Keeping in mind all this we sorted out the best ideas and then from
them chose one idea that was pizza corner. For this we also have
consulted our instructor. He also gave some suggestions on launching a
pizza corner in our own university.
4. Business Analysis
o Estimate likely selling price based upon competition(in our case
it’s a monopoly) and customer feedback
o Estimate sales volume based upon size of market
o Estimate profitability and breakeven point
6. Commercialization
o Launch the product
o Produce and place advertisements and other promotions
o Fill the distribution pipeline with product
o Critical path analysis is most useful at this stage
PRICING STRATEGY
Pricing strategies usually change as the product passes through its life cycle.
The introductory stage is not only difficult but also challenging and critical
because it alone can sail the ship through or can sink it in the beginning if
not set properly.
The clearer the pricing objective the easier is to set price. Our
objective is to provide good quality pizza with variety. We have selected
penetration strategy.
PENETRATION STRATEGY:
PRICE SENSITITIVITY:
People want to have good food but still they can be sensitive of the
price increment or decrease because of income level for the reason that most
of the population in university is of students.
In short, they need food with quality better then the rest with
affordable prices.
SURVEY:
We did the survey and the results were showing that high demand of
good quality pizza with better taste and affordable price.
We are developing product line rather than single product so that we could
cater all the target market which includes heavy cheese lovers. SAY
CHEESE is offering two types of pizzas i.e. Heavy cheese and Normal
Cheese with prices of Rs. 60 and Rs. 55 respectively.
The amount of ingredients and quality differs which justifies the
price differences.
BRANDING STRATEGY
This is a brand new product from a newly born company but we are
planning to come up with more product lines and variants so for that
purpose, a branding strategy was carefully chosen:
“Say Cheese” is right now offering two product lines i.e. Heavy Cheese
pizza and Normal Cheese pizza coming under the flag of same company. In
the future, it will help us to name our products which are yet to come. The
brand name is not only meaningful, likeable and adaptable but also is
memorable.
PACKAGING
A well designed packaging can build brand equity and drive sales. And it
also affects consumers’ later product experiences. Keeping in view these
factors, the packaging has been taken special care of. The packaging is done
in a 5x5 inches paperboard on which the logo of the company has been
labeled beautifully. This not only attracts the customers’ attention but also
helps in making a favorable overall impression of the product and the
company.
ADVERTISEMENT
A product can be a success even if it is not what the firm depicts it to be only
through strong and aggressive advertisement campaign and on the other
hand a product can prove to be a flop if advertising strategy is not run
properly and effectively.
Keep this in view, “Say Cheese” has been effectively advertised throughout
the Air University Campus by means of posters which are not only attractive
but also informative. The response of poster advertisement has been
encouraging and lots of target customers have been found showing interest
in them.
In addition, we own a fan page of Air University on world’s largest website
www.facebook.com and we have almost 600 students of Air University as
fans on that page and this number is increasing day by day. Using this
forum, we have put an advertisement on the same fan page as well which is
turning out to be effective.