Supplier Power: Low-Medium 0 Material Suppliers- There is large number of suppliers for ingredients like flour, vegetables, etc. The suppliers for Cheese and imported vegetables are less and so they have more power. 0 In-house technology-The technology used by most of the Pizza Manufacturer is in-house, which reduces supplier’s negotiation power. Maul Frozen Pizza: Foreseeing the growth of the frozen food market in India, Maul munched frozen pizza in 2001 in Gujarat. It planned to introduce the product all over India through its already existing channel.
But it failed to capture the market and had to close the product category soon. It could not adapt to the changes that the Indian quick restaurant and the Pizza market were undergoing in that period. The pricing of Maul Pizza was RSI 45 for a small Pizza which was very high at that time. Also, the product was not positioned well in the market and proper segmentation was not done. But recently, Maul has re-launched its frozen pizza product. 2. Consumer Behavior: Primary market research: We received 161 responses (43 offline & 118 online responses) for our survey.
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The survey data was then filtered based on our target of 24-41 with more than 2 lack/annum salary of household. Thus, 83 of our respondents fell under our target market. Core values & Benefits sought by the consumers: Based on our survey, we came to know that, 27% consumers take pizza, whenever they feel ‘Too lazy to cook, and 40% take pizza for ‘Lunch or Dinner’. The core benefits thus are “Easy to Cook” and “Tasty Food”. Hence our product must be designed to satisfy these core benefits. In addition to this, following are the results for various factors as rated by the respondents.
These are on a scale of 1 to 5 with 1 as least important and 5 as most important. Decision Making Unit: Based on our primary market research, it is evident that 55% of our customers who are in the age group of 24-41 are variety-lovers and they used to try latest trends & products. Generally, the earning member of the family or the housewife makes the purchase decision. But their decisions are normally influenced by their pestering children. Decision Making: The taste and variety of the food forms he basic evaluation criteria for the purchase decision.
Majority of the respondents are passive in information search. And, out of various medium of information, people preferred to spend time on TV and the list is followed by the social networking sites. 3. Segmentation, Targeting, Positioning: Segmentation: Market research results helped in identifying the market segments. We will use below three broad bases on which we will identify our target market. (a) Based on Customer Characteristic: Geographic: We expect large no. Of customers to come mainly from metro cities in India.
Based on our survey, we see less familiarity with the frozen pizza product in Bangor despite it being one of the biggest cities in India. We expect the situation to be much worse in smaller cities. Ever had Frozen Pizza before? No 84% Interested to buy? Neutral to Positive 34% Yes Disinterested Demographic: The general market segment can be divided in younger generation money on high quality frozen pizzas with their high disposable income and 35+ women mothers who make the Pizza purchase decision for their kids. Socioeconomic: We can target SEC middle segment of BE&C along with upper segment of AH&B1.
Cryptographic: Based on VAL’S framework, we have identified 3 major segments (out of 8) as following: 0 Strives – They are resource constrained people with high elasticity of demand, who like variety in general and would be keen to try new products offered at an attractive price. 0 Achievers – This segment has goal-oriented people with a deep commitment to career. They are looking for timeserving alternatives in marketplace. 0 Believers – They are conservative, conventional people with established routine and exhibit high brand loyalty. They are predictable and favor familiar brands. (b) Based on Buying Situation:
Consumption Behavior/Usage Rate: Through the survey we identified people with varying consumption frequency of pizza from weekly to monthly. The typical 80/20 rule where 80% of firms sales are obtained from 20% of customers, doesn’t apply in our context. Consumer Predispositions/Product knowledge & Attitude: Some of the non-earning teenagers show willingness to pay a higher price and ability to afford high discretionary expenses. There is another segment with an indifferent attitude towards the product. (c) Based on Metaphysics: It is a new term in marketing literature describing media Ewing habits of customers.