TERM PROJECT

MARKETING MANAGEMENT

LAUNCH

Of

“SAY CHEESE PIZZA”

 ACKNOWLEDGEMENT

As a matter of fact, people tend to forget those who are

behind their achievements and have stood for them whenever they have
needed assistance. A Malayan Proverb is “One can pay back the loan of
Gold but one dies forever in debt to those who are kind”. Realizing the fact
we express our gratitude to those who have helped us throughout in this
Marketing Plan. In fact it will be right to say that without their co-operation
this effort may have ended up in disaster.

Our gratitude will be meaningless if we are not grateful to

Allah for His kindness upon us. His benevolence and blessings have made
us capable. We are whole-heartedly thankful to Him. We are very thankful
to our project advisor Prof. Tariq Sohail for offering us with every help
possible. His sincere cooperation has helped us to complete this project.

We are also very thankful to the institution of which we have

been a part. Its teachers have been very helpful and co-operative. We are
very thankful to them. We are thankful to all those who guided us actively in
completion of our project.
SUBMITTED TO:

Sir. TARIQ SOHAIL

SUBMITTED BY:

Arslan Ali
Amna Rasheed
Mariam Nazir
Aqsa Rauf

MBA -II
AIR UNIVERSITY
ISLAMABAD.

DATE OF SUBMISSION:

11th of December 2009

 TABLE OF CONTENTS

• 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

• FACTORS AFFECTING CONSUMER BEHAVIOR

Cultural Factors
Social Factors
Personal Factors
• CONSUMER DRIVEN STRATEGY

4 Cs----4 Ps

• MARKET SEGMENTATION

• THE TARGET MARKET

• POSITIONING

• NEW PRODUCT DEVELOPMENT STRATEGY

Idea generation
Idea Screening
Concept development and testing
Business Analysis
Beta Testing and Market Testing
Commercialization

• PRICING STRATEGY

Selecting the Pricing Objectives

Penetration Strategy
Price Sensitivity
Estimation Demand Curve
Product Mix Strategy

• BRANDING STRATEGY

• PACKAGING

• ADVERTISEMENT
 EXECUTIVE SUMMARY

Say Cheese Pizza is a new player in Air University. The parlor

is inside the campus that has a strong need for additional food
options. Bolstered by the need for more choices in students-oriented
experiences, combined with the option for delivery, the parlor is
positioned to take advantage of the market demand and serve the
students in the University.

The population of Air University is rapidly growing with the

addition of new departments and more number of students being
enrolled each semester. It is Say Cheese Pizza’s strategy to exploit
the first-mover opportunity and establish itself as the preferred pizza
provider to the market. We believe a locally-owned pizza parlor is the
best option to serve the rapidly growing population with a fresh,
unique menu as opposed to any other national chain franchise.

This business plan calls for an exciting, profitable start-up year

ahead with future forecasted growth as we meet the demands of the
community. In all, this plan describes a healthy company with good
growth prospects, looking to manage its orderly growth in the near
future.
 MISSION

“Say Cheese Pizza” creates a friendly and pleasant atmosphere for

customers in a well-designed and productive environment in which people
can work happily. We are sensitive to the look and taste of good pizza as
well as to high-quality ingredients. We look to provide the best possible
value to our customers who desire great tasting pizza and to provide
customers with the satisfaction of receiving a great value, both tangibly and
intangibly.

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:

The keys to success in this business are:

• Delivering the customer value proposition.

• Marketing: promoting a new company and product.

• Product quality and consistency.

• Pricing effectively with respect to the project quality and customer

value proposition.

Objectives:
The objectives for “Say Cheese Pizza” are:

• To establish the market presence needed to support marketing and sales

goals and to attract customers

• To reach healthy monthly sales by the end of the year, and average
monthly sales increasing modestly by steadily through Year 3.

• 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.

1. High cheese pizza

2. Normal cheese pizza

Company Summary
Say Cheese Pizza is a privately-owned pizza parlor offering a product menu
that does not currently exist in the market and have the honor of being the
pioneer. Our customers are students, Faculty and Staff members of Air
University, Islamabad.

SERVICES
Say Cheese Pizza offers high quality pizza to a growing community that
currently has limited availability of food stuff and no availability pizza. At
start up we will be open from 9 a.m. to 5 p.m. Monday - Friday.
Our menu will include pizzas with various combinations of toppings.
Predefined, high-margin pizzas will be highlighted on the menu.

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:
The instrument which we used in our survey is questionnaires which
included open-ended as well as close-ended questions.

SAMPLING PLAN:
We randomly selected students from our sample size which is
3000 including faculty members as well.

GATHERING INFORMATION:
We approached our sample size with in university regardless of gender basis
and calculated information from them on the spot through questionnaire.

The research plan comprises several stages:

• Defining the population of concern:

We are concerned with the population of our target market.

• Specifying a sampling frame, a set of items or events possible to

measure:
• We included students of both genders and faculty members of Air
University as well.
• Specifying a sampling method for selecting items or events from the
frame:
• Method which we have used is QUESTIONNAIRES.
• Sample size is about 249.
• Sampling and data collecting: we collected primary data through our
survey.

MARGIN OF ERROR:
The margin of error is the amount of error that we can tolerate or we
can say the amount of random sampling error in survey’s result which we
have conducted in Air University. We have taken 5% margin of error in
our survey because it’s a common choice for everyone. We have found 5%
of errors in our survey.
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:
The aggregate of objects with which we are concerned is called
population size or we can say how many people are there to choose our
random sample. If we don’t know the population size we use 20,000 but in
our survey the number of population we are targeting by providing them
quality pizza is about 3000.

RESPONSE LEVEL:

It is basically what we expect the result will be after surveying our

target market. There are respondents who give 50% response in some
questions and in rest of questions there response level varies on options.

Margin of error 5%
Confidence level 90%
Population size 3000
Response level 50%

Our recommended size is 249

So this is the recommended sample size of our survey which we have done
in Air University. If we create a sample of this many people and get
responses from everyone, we are more likely to get a correct answer then we
would from a large sample where only a small percentage of the sample
respond to our survey.
FINDINGS:
The findings in response of questionnaire are as follows:

Question #1
*would u like to have a 4 inches pizza inside your campus?
Yes 74% no 24%

YES 76%
NO 24%

Question#2
*which pizza would you like to have?
74% 4% 4% 18%

Chicken 74
Veg 4%
Beef 4%
All in one 18%
Question #3
*which type of pizza would you like the most?
70% 30%

YES 70%
NO 30%

Question#4
*what price would you prefer for heavy cheese pizza?
80% 12% 8%

60 Rs
65 Rs
70 Rs

Question#5
* what price would you prefer for normal cheese pizza?
84% 16%

YES 84%
NO 16%
Question # 6
* would you like some different flavors which are not available in the
market?
36% 64%

YES 36%
NO 64%

Question#7
*which location would you like pizza parlor to be at?
52% 40% 2% 6%
Law n 52%

cafeteria 40%

closer to
entrance gate
2%
other 6%

Question#8
*would you like special occasions like sports week, birthday or party etc?
6% 94%

YES 76%
NO 24%
Question#9
*would you like to have a delivery service of pizza?
18% 82%

YES 18%
NO 82%

Question#10
*how many times would you like to have pizza in a week?
16% 44% 44%

once 16%
tw ice 44%
option 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”.

Factors affecting Consumer behavior:

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:

Being a private sector university, general population of the university has

relatively higher buying power and most of them are status conscious. So
whenever they plan for a treat, party or function, pizza comes first and if a
high quality pizza is available inside the campus, there could be nothing
better for them.

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.
 Variety Seeking Buying Behavior
Inside the premises of Air University is a well established Cafeteria with
huge seating capacity but very limited and low quality food items and that is
why most of the students are interested in having modern food items such as
pizza inside the campus. Say Cheese Pizza can be a great success keeping in
view the variety seeking buying behavior of the target customers.

CONSUMER DRIVEN STRATEGY

4Ps—4Cs
I- Product:

The reason for existence of a product:

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.

3. High cheese pizza

4. Normal cheese pizza

I- Consumer wants and needs

As it is obvious from the survey findings that or target customers want

the pizza and the response was quite encouraging. They not only are
interested in just the pizza but also showed interest in different varieties
and tastes which we are offering. We will so take care of the market
demand of the pizza and its variants.
II- Price:

Pricing refers to affordability.

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:

The most elementary pricing method was used.

Unit Cost/1-Return On Sales

HEAVY CHEESE: NORMAL CHEESE:

(45.22+1.22) /(1-25% )= 61.92 (41.22+1.22)/(1-25%)=56.58

II- Cost to satisfy:

Cost Calculation:

Heavy cheese pizza

Variable cost per unit : Rs 45.22

Ingredients (42 rs)
Electricity (200/30=66/300 units=0.22)
Packaging (Rs 3 per box)

Normal cheese pizza

Variable cost per unit: Rs 41.22

Ingredients(Rs 38 )
Electricity(Rs 0.22)
Packaging( 3 rs per box)
FIXED COST PER UNIT: Rs 1.22

Rent Per Day (Rs 66)

Oven Rent (Rs 300)

Total ( 300+66 )= 366/300

BREAK EVEN POINT:

Price: Variable Cost: Ratio: Avg. Price: Avg. Cost:

H- 60 45.22 33.33% 19.99 15.07

N- 55 41.22 66.66% 36.66 27.47
56.65 42.54

FIXED COST / PRICE – VARIABLE COST:

11000 / 56.65 - 42.54 =779 Units

Total cost will be recovered in approximately three days.

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.

III- Convenience to buy:

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:
 Promotion refers to influencing people

We have introduced the product in a convincing and different style. Our

product is basically for cheese lovers and for this we have a logo which
explains this fact. This figure is embossed on the packaging of pizza. From
there the advertising message started. This involved true visual elements i.e.
posters, conducting other events i.e. sports week, concert of artists, parties
etc

IV- Communication

We have conveyed the information about our product in a successful manner

to our target customers. We have done this by placing posters all around the
university to make the customers aware about the “Say Cheese Pizza”.

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.

THE TARGET MARKET

After evaluating different segments, we must now decide which and how
many segments we will target. It consists of a set of buyers who share
common needs or characteristics that the company decided to serve.
We are basically working on undifferentiated marketing (mass marketing).
A specific demographic target market was not chosen for our pizza; instead
the goal was to develop a product to be used by consumers of all ages - from
teenagers to seniors. It was intended as a liking product especially for
students of Air University. In fact, pizza is targeting to be also an alternative
to other snacks.

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:

Our competitive edge is to be first-to-the-market with pizza in a friendly

environment.
Additionally, the location of “Say Cheese Pizza” is crucial as a convenience
model to customers. Air University students frequently visit the front lawn.
This location is directly in the center of activity in this university and
inevitable for all the students and faculty members of the university.

Marketing Strategy
To drive customers to “Say Cheese Pizza”, we will employ several
techniques outlined below.
Advertising has been done by placing the posters all over the campus with
attractive logos and colors.
Additionally, special discounts and membership offers will also be launched
soon and in case of special events such as Sports week, we have planned to
come up with special promotional prices and offers.
Future plans are to advertise in university newspaper as well as on the
official website of Air University. With the increasing sales, lots of further
marketing activities will be considered.

Website Marketing Strategy:

Advertising campaign has also been launched on the internet by means of
world’s most popular website “Facebook”. We also own and run a fan page
of Air University on Facebook which holds almost 600 students from our
target market. Future opportunities exist in offering online ordering.

NEW PRODUCT
DEVELOPMENT STRATEGY
New Product Development Process:

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.

3. Concept Development and Testing

o Then we developed the marketing details like:
 The target market and the decision maker in the
purchasing process
 Benefits provided by the product
 consumers reaction to the product
 the product be produced in most cost effectively manner
 its cost to produce it
o Testing the Concept by asking a sample of prospective
customers what they think of the idea.

For this purpose we distributed a questionnaire with the response

of which we came to know about demands of the customers as well
as their perception about the upcoming pizza which helped us a lot
in the later stages.

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

All of these analyses has been done in the pricing part of

Consumer driven strategy section.

5. Beta Testing and Market Testing

o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical usage situations
o Conduct focus group customer interviews
o Make adjustments where necessary
o Produce an initial run of the product and sell it in a test market
area to determine customer acceptance

In this we made a prototype of our product and tested on the

students in the university campus. The response was good,
encouraging and in favor of our product that’s why we decided
to launch pizza in our campus.

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

We have done a massive advertising campaign in our own

campus by posters plus have put an advertisement on internet as
well.
 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.

SELECTING THE PRICING OBJECTIVES:

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:

In case of our product price is highly elastic that is customers are

highly price sensitive and they want a quality product. The quantity demand
will increase significantly as price declines. We have two products and their
price varies according to the quantity and types of cheese. We have chosen
penetration pricing strategy because our product is of the nature that can
gain mass appeal fairly and quickly, as the product life cycle progresses,
there will be changes in the demand curve and cost as such the pricing
policy should be revaluated overtime.

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.

ESTIMATION DEMAND CURVE:

• SURVEY:

We did the survey and the results were showing that high demand of
good quality pizza with better taste and affordable price.

PRODUCT MIX STRATEGY:

Product Line:

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:

Corporate name combined with individual family name:

“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.