Assignment : 2

Tutor Name: Mr. Asmat Ali

Marketing Theory & Practice

Made By: Furqan Arshad

PROJECT ON “PIZZA EXPERTS”

Roll No. AD512439

Semester: Spring 2009

MARKETING THEORY AND PRACTICE -1-

 INTRODUCTION:

Pizza In Pakistan

Over the past century, Pizza has been made famous by the Italians all over the world. But
it is only recently that pizza has entered the Pakistani food market in a big way. And this
has to be owed to the marketing and promotion efforts of the American pizza chain –
Pizza Hut. The chain first came to Pakistan on 14th December, 1993. Since then it has
made tremendous progress, and has established 10 restaurants in a span of 11 years. It has
eroded the share of many older established pizza joints and sets the bench mark which all
other competitors aspire to attain.
Six years ago, another U.K. based franchise – ‘Pizza Xpresss’ also opened its doors in
Karachi. But unable to compete with the Pizza Hut, the franchise was eventually
cancelled and the restaurant and equipment bought by the local restaurant manager. The
name was changed to ‘Pizza Experts’ and the owners began to focus their attention on
starting anew from the one outlet in Park Towers. This was three years ago, now there are
three restaurants across Karachi.
In 2004, the competition was upped once again with Domino’s – another American chain
famous for having the best Pizza delivery service in the world – entering the market. But
with a reputable brand name, and strategically located restaurants across the city, Pizza
Experts is well placed to compete with these global giants.

Promotion Introduction:

Company Introduction:

First and foremost, I thank Almighty Allah, for giving me the strength and knowledge to
achieve this project. A special thank you must go to Mr.Sajid Rafique – Owner of Pizza
Experts – who was always willing to answer our endless questions, and invaluable
suggestions. Without, his help this report would not have been possible.

Here is our marketing plan for the launch of “Pizza Experts”. I hope the report fulfills all
the requirements set by you and is according to the specified outline.

MARKETING THEORY AND PRACTICE -2-

As you will see, my plan carefully analyzes the external and the internal factors that
should be considered when designing the new marketing mix for Pizza Experts. The
marketing mix and the promotion mix have been designed after careful research,
investigation and exploration.

I sincerely hope that you will find this report up to the mark. Thank you for giving us the
opportunity to work on such an interesting and enlightening project and giving us a
chance to apply our theoretical knowledge.

Defining Pizza Experts Business and Mission

The main purpose or the business of pizza experts is to provide quality product and
service with the assistance of trained and professional staff.
After defining the key elements of the company’s operations, the mission statement can
be easily stated.

Mission Statement:

“To be the first choice of every pizza lover, by providing original Italian
Pizza’s at affordable prices to guarantee 100 % customer satisfaction”
STRATEGIC ANALYSIS
Our basic strategy is to focus on specific area of expertise where we are strong and have
an edge over our competitors. The service we have come up with is unique, providing the
Italian thin crust pizzas.
STRATEGIES:

S-O STRATEGY
We can make use of the increased demand for pizza by opening up a branch in the
corporate area.
S-T STRATEGY
In this strategy, we can make use of our strengths to cope up with threats or avoid any
possible threats. The Loyalty card is an effective promotional strategy adopted by us.
W-O STRATEGY

MARKETING THEORY AND PRACTICE -3-

 In this developmental strategy, I can overcome weakness to pursue opportunities. we can
develop an efficient delivery system by employing their own bikes rather than hiring
workers on commission bases

.MARKETING MIX FOR PIZZA EXPERTS:

Product:
The Actual Product
Pizza Experts, being a restaurant, is a mixture of food and services.Ioffer not only pizzas
but Starters, Salads & Sandwiches, Calazone, Pastas, Drinks, Coffee & Tea and Deserts.
Our restaurant has a clean environment with quick service and friendly waiters to take
orders of the consumers. It offers customers not only the opportunity to go and have food,
but also offers customers the chance to relax and enjoy in an environment which offers
light music, décor and a friendly ambience.

Introduction Growth Maturity Decline

Sales

Pizza

Time

MARKETING THEORY AND PRACTICE -4-

As can be seen, Pizza in the Pakistani market has entered the growth stage.
Effective planning and investment at this stage will help it to further expand and
increase our company’s market share.
The Core Product
Augmented Product
Product Quality
Price:

Price of the Product

The price of our product ranges from Rs.200 to rs.400 whereas pastas and sandwiches are
priced from Rs.100 to Rs.200.
The pricing of our product is inclusive of the following costs incurred by the
organization:
• Direct costs
• Indirect costs
Our direct costs include:
o Product costs: This includes the cost of the material that is made up of
cheese, mushrooms, chicken, beef, olives and different toppings.
o Shops and warehouse costs: Cost of overheads, fixed & variable costs.
Our indirect costs include:
o Transportation: Transporting the material from the warehouse to
the our restaurants.
o Cost of marketing: Costs of advertising and sales promotion.
Our restaurant Pizza Experts follows four pricing strategies. They are:
• Market penetration
• Promotional pricing
• Cost plus pricing
Promotion:
In spite of the fact that we face heavy competition from the leading Pizza makers, namely
Pizza Hut and Domino’s, we do not advertise to that extent. we do not have a separate

MARKETING THEORY AND PRACTICE -5-

department for marketing or advertising. The owners themselves develop all the
marketing strategies, but make it a point not to come up with expensive campaigns.

As Pizza Experts (formerly known as Pizza Express) was a franchise two years ago, it did
not have Pizzas to cater to the local tastes. This was a drawback for our company as most
people did not like it that much. When the franchise was terminated, and the name
changed to Pizza Experts, the owners (also the chefs of the company) came up with new
tastes which had a local touch to it.
One of our promotional campaigns, which can be regarded as our best so far, is the
launch of Loyalty Cards. With the facility of this card, members can avail a one year
membership and a 50% off on all the Pizza’s that they order at our restaurants.Ihave
publicized this campaign as “Buy 1 Get 1 Free”.
The good thing about this campaign and what makes it different from our competitor’s
campaign is that there is no restriction on the number of visits that the members can make
on the card. They can avail it as much as they want in a year..
Thus, I have our customers growing due to the affordability and the quality. WhatIlack is
the right amount of investment for our promotional activities and the right kind of
marketing strategies. Once all this is achieved,Iwould pose a great threat to Pizza Hut and
Domino’s in terms of their prices and their quality.
Promotional Strategies:

Advertisement

According to our research around sixty five percent of the families do not even know
about Pizza Experts. This shows that an advertising and effective marketing campaign
does not exist at all. And from those who do know about Pizza Experts, many of them do
not know about their home delivery service. This is also due to ineffective promotion and
advertising.

Based on the above-mentioned facts, I should allocate advertising budgets each month in
order to familiarize people with the restaurant and the new deals and sale promotion
programs thatIcarry out very often. This is because both our competitors, Domino’s and
Pizza Hut, carry out heavy promotional campaigns.

MARKETING THEORY AND PRACTICE -6-

Thus, we propose that we should use World Calls’ Cable to promote our restaurant. For
this we contacted with marketing manager of World Calls Cable. That will proposed a
marketing package considering our company size.

Gift Scheme
We should offer gifts to customers depending on the billing amount. The gift schemes
should be as follows:

Billing Amount Children Adults

Rs 500 to Rs 1000 Stationary boxes / Pizza Expert
T-Shirt / Coloring Book/ Pizza
Experts Key Chain with Cartoon
Characters
Rs 1001 to Rs 2000 Pizza Experts Football /
Wristwatches / Cricket Ball
Rs 2001 and above Cricket Bat from Jinnah Sports/
Pizza Experts Waist Pouch
Pizza Experts branded
Glass / Pizza Expert T-
Shirt / Free Pizza of your
choice
Pizza Experts Key Chain
from Khaas Industries
Pizza Experts branded Pen
Set

One of the above gifts in each category can be offered to customers spending more than
the amount stated in each billing bracket. Thus, customers will take away with them
something that will remind them of their dining out experience at Pizza Experts.

Seasonal Promotional Campaigns

We can offer seasonal promotional activities to take advantage of the hype created by the
media during various international sporting tournaments,Ican also offer special gift
schemes tailored specifically to that sporting event.
The football World Cup is scheduled to be held next year. There will be a global hype
long before the first ball is ever kicked at the tournament. Thus to take advantage of
this,Ishould offer special deals starting three months before the tournament starts. Gifts
such as sports water bottles, footballs and posters of football stars can be given away to
people spending over Rs.2000.

MARKETING THEORY AND PRACTICE -7-

Furthermore, during the course of the tournament, a large screen television can be leased
at Rs.15, 000 per month long tournament, to attract people to come and watch the
matches live on a large screen while enjoying a meal. Football matches last ninety
minutes, thus during this time a group of friends can come watch a match and also have a
meal. Another advantage the next years World Cup offers is that it is being held in
Germany and there is a time difference of three hours between Pakistan and Germany.
Almost ninety percent of the matches will be held during the late afternoon and evening,
and this will mean the local time in Pakistan will be between 7 and 10 O’clock. ThusIcan
take maximum benefit of this sporting event at minimal extra costs.
Similarly this sort of promotional campaign can also be used during cricket series and
cricket World Cup.
Meal Deals
We should also offer customers the opportunity to select meals deals. The following are
the meal deals thatIshould offer to customers. These meals can be discounted from what
the gross cost would be of everything put together in the meal deal.
Executive Lunch:

• Salad
• Six inch Pizza
• Cold drink or Coffee

Chotto Expert

• Six Inch Pizza

• Cold Drink

Family Expert

• One Garlic Bread

• Two Large Pizza’s
• One Pitcher of Cold Drink

Waiters as cartoon character

During peak hours from 5-9 pm, when families arrive with their children,Ican have
waiters dress up in cartoon character costumes and entertain the children. This way

MARKETING THEORY AND PRACTICE -8-

children would enjoy having dinner with Mickey mouse, Spiderman, or any other
children’s’ character.
Apart from thatIcan have special meal deals, like Spiderman deal, goofy deal; where the
children are served by their favorite character and that character sits and plays with them
for a while they are having their meal.

All you can eat

This strategy is quite applicable. We have this offer at lunchtime. During this time, there
would be a special table or counter set up where four or more pizzas of different types are
available for those availing the All you can eat offer. It would be more of a buffet, where
customers would be provided with plates and they would be requested to get slices of the
pizza they prefer. Apart from pizza we have a spaghetti bowl with spaghetti sauce at its
side.

Corporate catering
The corporate clientele represents a significant section of our consumers, especially
during lunch hours.Ican provide catering services to corporate clients at their different
meetings, seminars and conferences.Igot this idea from our questionnaire whereIasked
corporate clients whether they would prefer catering from a proper catering service, the
Hotel where the seminar or conference is organized or by a restaurant.
Public Transport advertising:
We could create more awareness about our loyalty scheme by a very inexpensive method.
The new ‘DAEWO’ buses have started operations in Lahore. On a typical day these
buses make 10 rounds on their routes. By painting the exterior of the buses with our logo,
phone numbers and the loyalty card schemeIcan reach a large audience with minimal
cost.Ihave employed the company cat eye to make our advertisements andIcan also ask
them to design the exterior of the metro buses.

MARKETING THEORY AND PRACTICE -9-

This picture shows the exact view from the main road, and it clearly shows how the sign
board is not visible from the main road.
As can be seen, this picture was taken from the road side and the Sign board is not clearly
visible to motorists passing by. The sign board needs to be strategically placed, as this
offers the benefit of promotion at no additional cost thatIwould otherwise have to pay to
setup a billboard. Further more, we should also use our balcony to put up banners
promoting our ‘Loyalty Card’ scheme.
Partnerships with credit card companies
We should start a partnership with Visa Card. This is because Visa card offers customers
points every time they use their card. Customers can then avail these points at various
outlets to get free gifts
Alliance with Nestle

MARKETING THEORY AND PRACTICE - 10 -

In recent times there has been an increased global shift towards mutual cooperation
amongst companies andIshould be doing the same. By joining hands with nestle there is a
win-win situation for us and nestle. The outline of this cooperation would be that:

1) We shall offer nestle water, juices and flavored yogurts in our restaurants.

2) Nestle would offer a scheme where a Nestle pure life customer will get a coupon with
every 5 gallon nestle water. Once the customer has 6 coupons they get a free pizza from
Pizza experts

Online Promotion Scheme

First of all, I should start up a new site with complete information about our restaurant
and its different locations. However; our main purpose will be quite unique. Through this
site I will register regular pizza experts’ customers and they will receive exclusive special
offers via E-mail. Now once they print the special offer and arrive at Pizza experts they
will be asked to submit five more email addresses( not more than five) for member ship
in our exclusive online deals program. Apart from that as there is a limit to number of
email addresses listed in one visit, there will be none or very little repetition on email
addresses. Thus, increasing our emailing list almost exponentially by 5 provided people
utilize our online promotions. I can also have random numerical lotteries for free food for
online mailing list members.
Distribution:
The distribution can be done through the following resources
Facilities
Transport
Communication
Marketing channels
There are two kinds of marketing channels employed by Pizza Experts, but in both these
channels there is no middle man or intermediary involved. The first kind of marketing
channel is our own restaurants where we serve our customers hot pizzas. The second is
the home delivery service where we provide customers the option of having pizza at
home.

MARKETING THEORY AND PRACTICE - 11 -

 SWOT Analysis:

Strengths:

• The high quality that pizza experts provide there consumers is one of the most
important aspects. The food served can be compared to any other restaurant at the
high end of the market.
• This is one of our major strengths. Owners of our Loyalty Cards receive an
identical order free for a purchase of any item. I.e. everything is Buy-one-Get-
one-Free.
• Our Employees are well-educated and well-trained. They help in providing
quality services to the customers. They give suggestions regarding the orders and
the different kind of pizzas. Thus it helps the customers to order according to their
needs.
Weaknesses:

• At the moment, they lack large finances for opening new branches and
obtaining more machinery. However, they have a specified plan for the next
five years and plan to adhere to it.
• With limited branches, machinery and seating capacity, i are restricted to
operate on a small scale.
• They deliver only within a radius of 4 km from either of its branches. Apart
from that, the home-delivery mechanism is not company owned and is
outsourced to different people working for commissions per pizza delivered.
This means an increase in variable costs, even if sales increase.
• Apart from having ad-strips in different cable-network companies, they do not
have any advertising campaign.

Opportunities:

• They can develop into a market leader if they initiate aggressive rival-tackling
strategies and maintains our quality as its size increases.
• They, nowadays are effectively targeting middle class, upper class and students.

MARKETING THEORY AND PRACTICE - 12 -

 • Considering the 20% annual growth rate, opening new branches can definitely
increase their market share.
• The standard of living in Pakistan’s urban areas has been on the increase People
have moved to a higher social status and moreover their wants have diversified
and changed from dining out at ‘desi’ restaurants to trendier and istern menu
based restaurant.
• The political situation in the country has stabilized to a great extent. A stable
inflation rate of 6-8 percent and non-fluctuating tax rates and duties will allow us
to follow their long term objectives effectively and efficiently.
Threats:

• Rival firms like Pizza Hut and Domino’s Pizza are a definite threat to us with their
aggressive marketing and advertising strategies. The public perception of these
firms is far superior to that of Pizza Express. People view these established
international brands and it is not surprising to see many people completely unaware
of our existence.
• They are not in competition with only Pizza based firms but are also competing
with every restaurant in Pakistan. our non-pizza rivals include McDonald’s, KFC,
Arizona Grill, Nandos, Barbeque Tonite, Hot’n’Spicy, Bundo Khan Etc. these
restaurants have already established a name in the market and most of them are
doing massive advertising and promotional efforts.
• Threatening competition from pizza hut and dominos has negatively affected our
position in the market. Pizza hut and dominos shares a large proportion of the
consumer market. Consumers are more into having pizzas at these restaurants as
compared to pizza experts. This is because these names are well established in the
market and thus have a strong influence and a strong brand image.

RECOMMENDATIONS:

Home Delivery

MARKETING THEORY AND PRACTICE - 13 -

Seventy percent of the families surveyed said that the pizza delivered at home was not
hot, and because of this the taste of the pizza was not the same which forty percent
families complained. We should consider providing our riders/deliverymen with the oven
hot technology which currently Pizza Hut and Dominos, our main competitors are using.
Firstly,Ishould buy our own motorbikes with full time employed riders. Secondly,Ishould
then invest in the oven hot technology. Thirdly, our riders are commission based and not
full time employed. In addition to this we have to pay them a fixed amount monthly for
the maintenance and petrol for the bikes whether or not the fixing and maintenance costs
are utilized or not.
By investing in all these,Iwill reduce our variable cost in the long run. Investing in the
motorbikes will save us these costs andIwould only have to pay them a specific amount
of salary per month. Maintenance costs and petrol costs would be as per utilization.
The New Delivery System
We need to improve our delivery system to gain wider appeal in the market. This was
highlighted whenIquestioned consumers. Furthermore, not having our own delivery
system means that as our market share increases, our variable cost will rise with it,
sinceIhave to pay a certain percentage on each delivery under our current delivery
system. Thus, to overcome these problemsIshould purchase our own bikes.

A new Honda CD 70 costs Rs.75000. Further investments will have to be made on fitting
these bikes with heated boxes which will keep the pizzas while they are being
transported. In addition these delivery boxes, fitted on to the back of the motorbikes, can
be painted with the restaurants logo’s and telephone numbers. These bikes will be driven
all around the affluent areas of the city, and additional benefits will be generated in terms
of spreading greater awareness about Pizza Experts delivery service.

MARKETING THEORY AND PRACTICE - 14 -

Contract with school and College Cafeteria’s
We should also look into providing schools with pizza during lunch breaks. We should
target school where children from the affluent class study; because we have to consider
the fact that pizza is still expensive for a school lunch thus the affluent class should be
our primary choice. A list of schools that we have identified is given below.
• Lahore Grammar School
• City School
• Lyceum
• DPS
We could also target universities
• PU
• IBA
• UMT etc.

MARKETING THEORY AND PRACTICE - 15 -

Customer feed back program
We should start a customer feed back program so that we can find out which areas
customers feel we are lacking in. this will help us improve the service and food we offer
to customers.
The following is a customer feed back ‘comments card’ that we have designed:

YOUR COMMENTS PLEASE

Excellent Good Average Poor

Quality of food?
Was the food hot?
Value for money?
Variety of menu?
Restaurant cleanliness?
Service fast?
Service friendly?
Environment?

Today’s date ____________________, and time right now is _________________

The name of this branch ____________

Any suggestions to serve you better __________________________________________

_______________________________________________________________________
_______________________________________________________________________

My name is ____________________, Address ________________________________

____________________________________________, Phone no. _________________,
E-mail ______________________________________

“What’s your Half? ™”

This strategy proposes having half a pizza of one type and half of another type together as
one pizza. Consumers would prefer savoring two flavors at the same time. Apart from
that, if two people buy a pizza and one like’s one flavor the other another, still they
would not order another pizza. Thus, through this offer they would get two different
pizzas at the same time.

MARKETING THEORY AND PRACTICE - 16 -

 References

CEO
Mr Sajid Rafique

Marketing Manager:
Ms.Freeha Agha

Interior Dsigner:
Mr.Tabrez Awadia

http://en.wikipedia.org

http://www.google.com

MARKETING THEORY AND PRACTICE - 17 -