Analyze the process of market segmentation, choosing targeted market and product positioning

Starting from initial ideas, students will analyze the SWOT model of the business, identify the target customers, and then proceed to construct the marketing mix strategy for the busines

VIETNAM NATIONAL UNIVERSITY, HANOI

The University of Economics and Business (UEB)

FINAL ASSIGNMENT SUBJECT: PRINCIPLE OF MARKETING

PH.D NGUYEN VAN PHUONG

HA NOI, 7/2023

Introduction: 3

I Introduce briefly about the Product: Pizza 3

II Analyze SWOT of the business 3

III Analyze the process of market segmentation, choosing targeted market and product positioning 5

1 Market segmentation 5

2 Targeted market: The Age Group 16-25 in Viet Nam 6

3 Product positioning 7

IV Analyze customer’s behaviors to the service/product 8

1 Shopping Behaviors 8

2 Summarize content in (1), (2), (3) to create a marketing mix strategy and analyze that strategy 9

1 Price 9

2 Place 10

3 Product 11

4 Promotion 13

3 Conclusion 14

4 Reference 16

Introduction:

Along with the continuous development of society, the number of established businesses has also been rapidly increasing across various industries To compete with numerous competitors, besides differentiation in products, vision, and business strategies, marketing

is an indispensable factor in the operation and development of a business

This article will delve into the creative practice, analysis, and development of the Marketing mix strategy for a new product - Pizza Starting from initial ideas, students will analyze the SWOT model of the business, identify the target customers, and then proceed

to construct the marketing mix strategy for the business

I Introduce briefly about the Product: Pizza

Name: Pizza 3in1

Ingredients (topping): beef, seafood, chicken (customize based on clients' needs)

Price: 75.000 – 160.000 (vary in size and topping)

Distribution channel:

 Through mobile apps or online platforms such as Loship, Baemin, GrabFood, ShopeeFood, GoFood, Ahamove,

 Takeaway

Product Description: Pizza 3in1 - a tantalizing creation that combines three distinct

pizza flavors in one Handcrafted with good ingredients, each bite is a celebration of taste and convenience Choose from versatile sizes and customize to perfection Delivered fresh to your doorstep, Pizza 3in1 is perfect for any occasion - family gatherings, game nights, and more Join the ultimate pizza experience and indulge in a symphony of flavors that will keep you coming back for more Treat yourself to Pizza 3in1 today and embark

on a pizza adventure like no other

II Analyze SWOT of the business

Business: The Pizza-Devouring Buffet

SWOT analysis:

Operating time: 10:00 a.m – 23:59 p.m

Strengths:

 Affordable Pricing: Offering reasonable prices attracts price-sensitive young

consumers, making the business competitive in the market

 Convenient Ordering: Online ordering and delivery services cater to the busy

student lifestyle, providing convenience and accessibility

 Customization Options: Providing a wide range of pizza toppings and crust

options allows for personalized choices, enhancing customer satisfaction

 Youthful Branding: A youthful and vibrant brand image resonates well with the

target audience, making it appealing and relatable

 Social Media Presence: Strong social media presence and engagement help in

connecting with the target market and building brand loyalty

Weaknesses:

 Limited Demographic Reach: Targeting mainly young people and students might

restrict the business's appeal to other demographic segments

 Delivery Challenges: Ensuring timely deliveries during peak hours can be a

logistical challenge, potentially affecting customer satisfaction

 Lack of brand awareness: The Pizza-Devouring Buffet will enter the market with

limited or no brand awareness as an entirely new brand This issue will be addressed through promotion and marketing strategies

 Competition: The pizza market is competitive, with other established pizza chains

and local eateries vying for the same target audience

Opportunities:

 Campus Collaborations: Partnering with colleges and universities for exclusive

deals or sponsoring events can increase brand visibility and student engagement

 Discount/Voucher for students:

 Expand Menu for Diverse Preferences: Introducing new menu items like salads,

desserts, or beverages can attract a broader customer base

 Online Marketing Expansion: Leveraging emerging online platforms and trends

can reach a wider audience and create viral marketing opportunities (tiktok)

 Health-Conscious Options: Offering healthier pizza options aligns with the

growing trend of health-conscious eating among young consumers

Threats:

 Economic Conditions: Economic downturns can impact the disposable income of

students, affecting their dining-out choices

 Food Safety Concerns: Instances of foodborne illnesses or health concerns can

damage the business's reputation and customer trust

 Competitor Actions: Aggressive marketing, discounts, or innovative offerings

from competitors can impact market share and customer loyalty

The takeaway/online buying reasonable-price pizza business targeting young people and students has several strengths, including affordability, convenience, and a youthful brand image However, it faces challenges such as limited demographic reach, seasonal demand fluctuations, and strong competition

To succeed, the business will capitalize on opportunities like campus collaborations, and online marketing while addressing threats related to economic conditions, rising costs, and maintaining food safety standards An effective strategy that leverages strengths and opportunities while mitigating weaknesses and threats will enable the business to thrive in this competitive market segment

III Analyze the process of market segmentation, choosing targeted market

and product positioning

1 Market segmentation

Market Demographics Geographics Psychographics Behavior

Age

Group

5-15

- Children and

early teens

- Influenced by

parents

- Urban and Suburban Areas

- Areas with educational institutions

- Attracted to colorful and fun toppings

- pizza for family gatherings

- Birthday parties and special occasion celebrations

Age

Group

16-25

- Young adults

and college

students

- Tech-savvy,

independent

- Urban areas

- Areas with a high concentration of young adults and students

- Open to trying new flavors

- Appreciate customization options

- Seek convenience and quick service

- Frequent online orders and

takeaways

- Value deals and discounts for budget-conscious students

Social gatherings, dining out with friends

Age

Group

26-35

- Young

professionals,

early families

- Busy and

time-constrained

- Urban and Suburban Areas

- Areas with a mix

of residential and commercial spaces

- Value quality and taste

- Seek value-for-money options

- Busy, prefer delivery and takeaway options

- Family meal deals and promotions

Age

Group

36-60

- Middle-aged

adults, seniors

- Seek quality

and authenticity

- Urban and Suburban Areas

- Areas with a mix

of residential and commercial spaces

- Classic and traditional tastes

- Dietary-conscious options

- Appreciate health-conscious choices

- Occasional diners, ordering for family gatherings, dine-in experience

In that case, we choose the Age Group 16-25 as our Target Customers as their

Demographics, Geographics, Psychographics, and Behavior fit our business development direction

2 Targeted market: The Age Group 16-25 in Viet Nam

Demographics

Data points Targeted customers:

Occupation Students, college students, fresher employees

Location Big cities with many universities, near college campuses

Psychographics

Personal Characteristics Tech-savvy, social, energetic

Hobbies Gaming, music, hanging out with friends

Needs Quick and budget-friendly food options, convenient

ordering process Interests Technology, music festivals, socializing

Pains Limited budget, lack of time for cooking, academic

pressure Main challenges Balancing studies, work, and social life, finding

affordable meals

Geographic

The Pizza-Devouring Buffet chooses to operate in heavily populated cities like Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, However, at first, the pizzerias focus to operate

in Hanoi and Ho Chi Minh City, near the campus where a massive amount of college students are living

Noticing that, besides targeted customers, we also have a number of potential customers

3 Product positioning

The Pizza-Devouring Buffet targets young people and college students with affordable,

customizable pizzas It emphasizes convenience, offering online ordering and doorstep delivery The brand image is vibrant and youthful, engaging with its audience through social media Special student discounts and diverse menu options cater to various

preferences Positioned as a go-to option for quick, budget-friendly, and delicious meals,

it challenges the notion that affordability compromises quality

IV Analyze customer’s behaviors to the service/product

1 Shopping Behaviors

Budget Limited budget for food and other expenses

Shopping Frequency Frequently orders food for takeout and delivery

Preferred channels Mobile apps, online platforms, social media

Online behavior Relies heavily on online reviews and ratings

Search terms "Cheap pizza delivery near campus," "student discounts" Preferred brands Local pizzerias, student-friendly pizza chains, cheap

pizza,

Triggers Student discounts, fast delivery, customizable options Barriers High prices, long delivery times during peak hours

Understanding these customer behaviors enables us to tailor our menu offerings, marketing strategies, and customer engagement efforts to meet customer expectations effectively We can enhance customer satisfaction, foster loyalty, and maintain a competitive edge in the market based on thoses

2 Summarize content in (1), (2), (3) to create a marketing mix strategy and analyze that strategy

1 Price

Price speaks to positioning in the market, the speed at which you want to penetrate your market, and your company's revenue goals and profit margin

Based on brand-positioning and target customers, The Pizza-Devouring Buffet chooses

Cost-based Pricing as the main pricing strategy to develop the company and accomplish business objectives

Detailed cost analysis:

Assuming 200 cakes are sold every day, with an average price of 80,000 VND per cake,

we have Estimated business costs for a month:

(This cost can only be true under this condition because the larger the scale of production, the smaller the cost per product)

Estimated business costs for a month

Depreciation of fixed

Electricity, water,

communication system 3.500.000

Discount cost for application partners 25.200.000 Other expenses (insurance,

expenses incurred ) 1.000.000

With the estimated costs, the total cost is about 313.100.000 VND

With the condition 200 pizzas are sold every day, with an average price of 80,000 VND

per pizza, Total revenue: 540.000.000 VNĐ

 Revenue through delivery app about 30%: 144.000.000 VND

 Direct revenue about 70%: 396.000.000 VND

Cost-to-Revenue Ratio: 57,98%

Profit-to-Revenue Ratio: 42,02%

Average Price of a product: 80.000 VND

Cost per product: 46.384 VND

Profit per product: 33.616 VND

Conclusion: Thus, we can conclude with the above profit and cost ratios, it is feasible to

set the average price for a popular product to be about 80.000 VND This price is both suitable for the profit of the business and in line with the income of the target customer

2 Place

Physical stores

 Location selection: The pizzerias have quite small area ranging from 25-50m2, often established in strategic locations, such as busy streets, shopping malls, and near college campuses, in narrow alleys instead of developing on the main road These locations ensure high visibility and foot traffic, attracting potential customers Moreover, it helps the pizza chain create a friendly image in the eyes of consumers, in line with its brand positioning and target customers

 Pizza outlets strategically positioned near college campuses target the student population, offering a convenient and affordable dining option for students

 Although mainly selling online and take-away, the chain still has about 10 seats in each store for young people to enjoy immediately => meeting part of the seating demand

Online methods:

 With the rise of online platforms and food delivery apps, pizza businesses have expanded their reach to customers beyond their physical locations

 Online ordering systems provide convenience and accessibility for customers, especially those with busy schedules or preferring to dine at home

 Delivery services allow pizza businesses to cater to a broader customer base, including those in distant or less accessible areas

Collaborations with Food Delivery Apps:

 Collaborations with food delivery apps enable businesses to benefit from their efficient delivery infrastructure, ensuring timely and reliable order fulfillment

 Partnering with popular food delivery apps expands the reach of pizza businesses, tapping into the existing user base of these platforms

 Food Delivery Apps can be mentioned: Loship, Baemin, GrabFood, ShopeeFood, GoFood, Ahamove,

3 Product

Product Attributes

 Provide a variety of fresh toppings and crust options to cater to different tastes and dietary preferences, including vegan and gluten-free options

 Quality food: Our brand's focus will be on ensuring that every pizza we serve is

freshly made

 On-demand order: We give our customers the opportunity to customize their pizza

according to their taste preferences; offer a variety of crust options, such as thin

crust, thick crust, and gluten-free crust, catering to customers with different dietary requirements

 Convenience: In addition to high-quality food, our brand's focus will also be on

convenience, allowing customers to easily order and receive their pizza through various channels, such as in-store (take-away), online, or mobile apps like Shopeefood, Grabfood, Baemin, Loship

Features

 Nutritional information available for each pizza, catering to customers with specific dietary needs

 Features: Enhancing the Dining Experience

Style and design

 Design: Trendy and Eye-Catching

 Logo: Create a playful and trendy logo incorporating a pizza slice and vibrant colors, using a combination of green, red, and yellow to represent fresh ingredients and a lively atmosphere The font is bold and eye-catching, with the text "The Pizza-Devouring Buffet" positioned below the image

 Packaging Design: For pizza boxes, use a clean and minimalist design with the logo prominently displayed Include relevant contact information, and social media handles

 Create a visually engaging website with a responsive design, featuring mouth-watering images of pizzas and a user-friendly interface for easy online ordering Integrate social media buttons to encourage sharing and provide updates on promotions and events

Brand

 The brand name should be catchy, youthful, and easy to remember " The Pizza-Devouring Buffet" conveys the core offering of the restaurant while appealing to the target demographic

Packaging

 Eco-friendly packaging made from recycled materials to minimize the brand's carbon footprint

 Packaging: Eco-friendly and Convenient

 Choose eco-friendly packaging materials, such as biodegradable or recyclable materials, to appeal to environmentally conscious customers Opt for packaging that keeps the pizza fresh and maintains its quality during delivery or takeaway

Product support services

 Online ordering system with real-time tracking of order status and estimated delivery time