Week 5 Project

9

Marketing Plan

Sandra Villarreal

South University

MKT3010 Marketing Management SU01

Prof. Thomas Harper

November 15, 2021

Week 3 Project

Introduction

This paper aims at discussing a fast-food mid-sized business by providing a summary of the business and assessing Michael Porter’s strategies that will be used to ensure the success of the business. Additionally, it shows how the marketing segmentation dimension is used to in-market targeting and essential strategies of the consumer decision-making process that will facilitate the business in the market (Schamp et al., 2019). The new product that the business aims to introduce in the market is Pizza to ensure that there are differences and attractions of more consumers. The consumer decision process mainly entails the stages that clients use to obtain the product, efficiently solving their current problem. Moreover, the business needs to influence customers to purchase their goods through campaigns and advertising on websites, television, and social media channels (Brotspies & Weinstein, 2019). The company can also use testimonials, customers’ videos, and reviews to entice other clients to buy their products, which will benefit their health.

A summary of the selected scenario

The mid-sized business focuses on fast food delivery, ensuring the availability of quick service where foods and services are served quickly and effectively to customers. Additionally, the business was largely populated to facilitate increased access to customers and attract more consumers (Stankevich, 2017). Despite being a mid-sized business, all the required licenses have been acquired to ensure that the undertaken activities follow the set regulations and avoid costly lawsuits. However, there is a lack of adequate equipment such as refrigerators to automate our operations and increase the production of food products. The business offers chicken nuggets, sandwiches, hot dogs, and ice cream. The need to increase our market penetration and access to more customers has facilitated a marketing plan for next year. We target to increase revenue and attract more customers to increase our production equipment and expand the business. Furthermore, the business aims to use strategic and tactical marketing strategies to achieve the set objectives while introducing pizza products to attract more customers.

The Michael Porter’s Basic Strategies Used in the Marketing Process

The main Michael potter strategies that will be used in the product’s marketing includes differentiation strategy that encourages new products offered in the market that are unique to consumers and at a low cost. According to Barghouthi (2017), the differentiation strategy enables organizations to make services and products more attractive and appealing to consumers and different than competitors. For that reason, the introduction of Pizza products follows extensive research and determination that only a few food restaurants in the town offer such products to customers. Additionally, our products will involve essential ingredients different from those of the competitors to maintain a market advantage. The company has established its ability to deliver high-quality products, especially through innovation, and the required equipment and skills have already been employed (Datta, 2010). However, the effectiveness of the sales and marketing team will play a vital role in ensuring the product success in the market as there is a need for adequate customer targeting and market segmentation when offering new products (Tanwar, 2013). For that reason, the business needs to stay agile while enforcing the differentiation strategy to facilitate an effective project development process.

Additionally, the business will incorporate Potter’s focus strategy to ensure the success of Pizza products in the market. According to Datta (2010), the strategy ensures that organizations focus on a niche market to ensure an increased understanding of market dynamics and unique customer needs. Hence, there will be effective development of uniquely low-cost products and well-specified products for consumers. Serving customers uniquely facilitates the efficient building of a strong relationship and business rapport with the consumers, thus making a particular market segment less attractive to new entrants and consumers (Barghouthi, 2017). For that reason, the business aims to utilize the focus strategy to attract more consumers and develop a competitive edge over the consumers. Effective cost reduction will ensure that the new Pizza products introduced in the market are easily affordable by customers to ensure that they are fast-moving and have a deep understanding of the customer needs and preferences.

Target Markets and Segmentation

With the use of dimensions of market segmentation, the business will target demographic markets that groups people according to their observable differences such as age, gender, occupation, race, and marital status. As a result, clustering people according to their demography is easy as information is accessible quickly while using low costs (Brotspies & Weinstein, 2019). Through surveys, the business will acquire more information about the target market as it reveals specific demographics (Schamp et al., 2019). Moreover, using demographic segmentation, the business assumes that the segments have common traits, tastes, lifestyle patterns, and interests, thus making it easier to influence their purchasing habits. By using the clusters, the business will know how vast the market opportunity is for the new product being introduced (Goyat, 2011). Furthermore, the firm will identify which segment of the demographic will purchase the product more often. The business will also recognize how to reach frequent customers with the right marketing strategies and messages.

The business will also target geographic segmentation, which groups people according to their location, workplace, or traveling routines. The location has an essential influence on people and their buying habits, which the firm can use to improve the marketing strategies. Furthermore, geographic locations help businesses to understand the customers’ needs and want, thus enabling the product to be supplied into the area in large amounts (Dolnicar et al., 2012). Population density and culture are vital to include when carrying out market research of the new Pizza product. It helps the marketers solve the problem before introducing the good. For instance, individuals from a certain region may not accept the product being presented to them due to climate or rural or urban (Brotspies & Weinstein, 2019). Identifying the target location will help the business to know which language to use when advertising their products. Cultural norms and interests of people in the area may influence their opinions which cause them to choose one product over another.

Stages of Consumer Decision Making Process of the new Product

The consumer decision-making process includes steps that help the business identify and recognize the customers’ problems or need for the product. The stage offers information on which need the consumers to want to be satisfied, thus laying out a ground for introducing the new product to satisfy their need (Ashman et al., 2015). Furthermore, the business can influence the customers by developing product campaigns to build recognition and awareness of the presence of the good. Through campaigns, the firm builds trust with the consumers, thus making them feel like their problem is solved. Additionally, information search helps customers to seek their solutions through browsing online sources such as customer reviews and Google (Stankevich, 2017). The firm needs to give the consumers access to information they want to know by suggesting that the new product will solve their problems. As a result, the mid-sized business needs to include customer-generated comments or testimonials, attracting other clients to purchase or try the product.

Evaluation of alternatives mainly includes prospective buyers deciding whether the product is right for them or not by weighing choices against the comparable alternatives. Conversely, alternatives present themselves in the form of product benefits, lower prices, and product availability (Schamp et al., 2019). However, some aspects such as packaging, style, color, and product ingredients also affect their decision. The business needs to gear the marketing materials to convince the customers to purchase their products as they are superior to other products. In the process, the purchase decision is the stage where the client buys the product after gathering all the required facts and feedbacks from previous consumers (Ashman et al., 2015). The customers realize that the business’ product is the best alternative, thus making the purchase. The post-purchase evaluation involves the business determining whether the product satisfies the clients’ needs and making additional purchases.

Essential Improvements to be made on the Product

Essential that needs to be improved to ensure that the company provides the best quality Pizza in the market is Providing professional food visuals to ensure that they are attractive to the customers. Additionally, there is a need to ensure that the Pizza products are fresh to reduce the cases of food poisoning. The marketing process will require offers and discounts while requesting customer reviews to increase its market targeting. Additionally, the business can ensure that there is the introduction of online ordering and delivery services. The estimated cost for these improvements is $ 370,000, generated by the end of this year. The enhancements will involve diversified ingredients such as mushroom and gorgonzola, black olives, potatoes, and garlic. The need for market enhancements includes ensuring a better market performance and maintaining marketing advantage. As a result, there will be an increased generation of revenue while maintaining the company’s reputation and brand image. The new pizza products enhancements will aim at satisfying consumer needs while catering to their changing behaviors. For that reason, enhancements will enable the business to discover new market opportunities while building better relationships with the consumers. 

Conclusion

The business's marketing plan will help advertise the new product to all the customers through market segmentation, which groups people into segments according to their needs. Next year, the business aims to introduce pizza products into the market to attract more customers and generate revenues crucial for business expansion. Furthermore, the firm also aims at ensuring that the set objectives are met, such as increasing sales of the new product in different regions in the country. Identifying consumers’ needs, demands, and problems ensure that the firm produces the best goods to satisfy their wants. In addition, the improvements are done to guarantee the progress of the mid-sized business after introducing the new product. The firm needs to review the competitors, marketing environment, and feedback from the customers by hiding their opinions to improve the product and improve their satisfaction.

References

Ashman, R., Solomon, M. R., & Wolny, J. (2015). An old model for a new age: Consumer decision making in participatory digital culture. Journal of Customer Behaviour, 14(2), 127-146.

Barghouthi, O. A. (2017). Analysis of Competitive Advantage of the Basic Industries in Palestine Based on the Porter’s Diamond Model. International Journal of Marketing Research Innovation, 1(1), 25-39.

Brotspies, H., & Weinstein, A. (2019). Rethinking business segmentation: A conceptual model and strategic insights. Journal of strategic marketing, 27(2), 164-176.

Datta, Y. (2010). A critique of Porter's cost leadership and differentiation strategies. Chinese Business Review, 9(4), 37.

Dolnicar, S., Kaiser, S., Lazarevski, K., & Leisch, F. (2012). Biclustering: Overcoming data dimensionality problems in market segmentation. Journal of Travel Research, 51(1), 41-49.

Goyat, S. (2011). The basis of market segmentation: a critical review of literature. European Journal of Business and Management, 3(9), 45-54.

Schamp, C., Heitmann, M., & Katzenstein, R. (2019). Consideration of ethical attributes along the consumer decision-making journey. Journal of the Academy of Marketing Science, 47(2), 328-348.

Stankevich, A. (2017). Explaining the consumer decision-making process: Critical literature review. Journal of International Business Research and Marketing, 2(6).

Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and management, 15(1), 11-17.