Haven't found the Essay You Want?
For Only $12.90/page

Frizza – Frozen Pizza Marketing Plan Essay

The current size of pizza market in India is INR 1750 crores and is growing at the rate of 25-30% per year. But there is almost no presence of the frozen pizza in India. Contrasting this to the USA where frozen pizza industry accounts for 13.6% of total USD 40 billion pizza industry. Thus there exists an opportunity to launch a product in this area. In this report, we are trying to achieve the following: market research to gauge consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for frozen pizza product in India and finally building a marketing strategy to launch it.

We started with the Porter’s Five Forces analysis. We found out that Intensity of Industry Competition was low to medium, Availability of Substitutes was low to medium, Potential Entrants were High, Buyer Power was low and Supplier Power was low-medium. This was followed by primary research where we took surveys (online and live). This was supplemented with secondary research to find out the various aspects of consumer behaviour.

The core benefits were identified as “Easy to Cook” and “Tasty Food”. Generally, the decision makers are the young earning professionals or the earning member of the family/housewife. In case of the housewife, their decisions are normally influenced by their pestering children. We then did market segmentation basis various methods like customer characteristics (geographic, demographic, socio economic, psychographic), buying situation (consumption rate, consumer predispositions), mediagraphics and personas. We decided to target people in age group of more than 23 years of age with earnings of more than 2 lakhs per annum.

We thus positioned our product as – To all those who want a comfortable life and who love good & healthy food, Frizza is a unique looking product that lets you enjoy the taste of heaven, saves your time and is there for you – Anytime you want it. The product was named as “Frizza” with the tagline – “Anytime Pizza”. We then decided the marketing strategy. Starting with Product decision, we saw that Frizza is differentiated from its competitors like Dominos basis 4 main parameters – (i) Lower price at same taste; (ii) Convenience factor (of using the product anytime rather than just 12 hours during which a restaurant is open); (iii) Square shape rather than circular shape, which would appeal to children and adults alike; (iv) Emotional satisfaction for mothers coming out of the feeling that she has cooked a meal for her children. We then decided various characteristics of the product like toppings, etc. basis results from the survey.

Due to many reasons as explained in the report, the pricing came to as 30-40% lower than that of competition like Dominos’s. In terms of the place, we decided to launch the product only in cities given the infrastructural constraints at the beginning. The retail channels were decided as supermarkets, speciality stores and super stores, thus following the selective distribution strategy. Various promotional activities (both ATL and BTL) like television ads, Facebook, newspapers, events, etc. were planned. Finally, financial analysis was done to conclude the breakeven point as 7 quarters.

The pizza industry in India is mainly divided into 2 formats – dine in and take away. The current size of pizza market in India is INR 1750 crores and is growing at the rate of 25-30% per year. The holding company of the current market leader, i.e. Dominos grew 9 times from INR 155 crores in 2007 to INR 1407 crores in 2013 brining the annual growth rate to an amazing figure of 45%. But there are gaps in the market. First, the pizza stores are limited in number, reach and timing. Thus accessibility is limited. Secondly, although pizzas at lower price points are available, higher end pizzas or pizzas offering variety of toppings cost upward of INR 200 per pizza.

Thus, there is scope to use low pricing as a competitive advantage. Hence comes the frozen concept to fulfil the existing gaps. This concept is already prevalent in developed countries. In USA for example, frozen pizza industry accounts for 13.6% of total USD 40 billion pizza industry. As per Frozen food global industry guide from Market Line, sale of frozen pizza & ready meal market globally account for 41.1% of overall frozen food market. Also, Asia-Pacific is the largest market for frozen foods, accounting for 34.3% of global market value, and supermarkets and hypermarkets form the leading distribution channel for frozen food account for 70.2% of the market’s value.

In this report, we are trying to achieve the following: market research to
gauge consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for frozen pizza product in India and finally building a marketing strategy to launch it.

Primary research: We had two kinds of approach towards primary research. We prepared a comprehensive questionnaire to gauge the demographic, socio-economic & psychographic traits and market reaction towards the existing products and willingness to pay of respondents for the frozen pizza product. We conducted live surveys in the nearby malls (Gopalan Mall and Meenakshi Mall) during peak days (a Sunday and the Independence Day) by distribution of questionnaire among people of different age, gender and income groups for example college goers, mothers, single men, married couples etc. We also collected online responses across diverse geographic and professional groups via social networking sites and emails.

Secondary research: We used online resources to study the global frozen pizza markets and potential growth of the same in Indian markets and to gather information about the existing players and their positioning.

1. Porter’s Five Forces to Understand Industry Competitiveness: Intensity of Industry Competition: Low-Medium

 Number of firms- There are large no of players in Indian Pizza market. These include the market leader Dominos, Pizza hut, Papa john’s, Pizza corner, Pizza Express, Smoking Joes, Amul and Local Pizza Producers. But there is no popular brand in frozen Pizza other than Amul.  Highly concentrated market (Low HHI)- The market is highly concentrated with high HHI of approx 4700.Dominos leads the market with 67% market share with its 600+ stores. Pizza hut is second with around 20% market share and 180 + stores. Others have market share from 2-5% with 20-40 Stores. Share of Amul is very low.

 Demand Supply mismatch- As per our estimates; there is clearly no supply in the market, although there seems to be strong demand.
Availability of Substitutes: Low-Medium
 Buyer propensity to substitute –Though overall competition is high, Competitors in the frozen pizza market segment are low; therefore buyer propensity to substitute is very low.  Product differentiation & Pricing- The products offered by most of the Pizza producers are similar and there is no differentiation in product currently. The number of products available at comparatively lower prices is less.

Potential Entrants: High
 Attractive Market-Indian quick service restaurant industry is estimated to be 6000 Cr and is expected to reach 18000 Cr by 2018. The pizza industry is expected to grow at a CAGR 25-28%.  Low Entry Barriers and low exit barriers- The capital requirement is comparable to other product providers in the market and is not massive in any way. Even the exit barriers are less. 

Big brands-Big global brands like Papa Murphy, Little Caesers are not in India yet and there is potential threat of them Entering India. McCain though not in frozen Pizzas, may enter in the future. Buyer Power: Low

 Uniqueness- Frozen Pizza is still a unique concept in India and the firms providing it are also less.  Large no. of buyers –The large no of Buyers with very few suppliers of frozen Pizza, decreases the bargaining power of buyer.

 Switching cost- The current pricing structure of big brands which is very similar also decreases the power of consumers, forcing them to buy from the available options. Supplier Power: Low-Medium

 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.  In-house technology-The technology used by most of the Pizza Manufacturer is in-house, which reduces supplier’s negotiation power.

Amul Frozen Pizza: Foreseeing the growth of the frozen food market in India, Amul launched 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 Amul Pizza was Rs 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, Amul has re-launched its frozen pizza product.

2. Consumer Behaviour:
Primary market research: We received 161 responses (43 offline & 118 online responses) for our survey. The survey data was then filtered based on our target segment (discussed later) – Employed/Earning member of the family in the age group of 24-41 with more than 2 lakh/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 the 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 Bangalore 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?


Demographic: The general market segment can be divided in younger generation with an age group between 12-23 years, Mid-age working people who can spend 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 B2&C along with upper segment of A2&B1. Psychographic: Based on VALS framework, we have identified 3 major segments (out of 8) as following:  Strivers – 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.  Achievers – This segment has goal-oriented people with a deep commitment to career. They are looking for timesaving alternatives in marketplace.

 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 Mediagraphics: It is a new term in marketing literature describing media viewing habits of customers. It helps identify type of promotional media consumer prefers. (TV, radio, internet etc.)


(d) Personas: Basis the above inputs, we made the following personasAnjali (16): College-going student who lives with her parents and spends most of the time with her college friends. She has a large circle of girl friends with a very busy social life. She doesn’t have a

strong brand loyalty and currently consumes pizza from all available major brands by taking turns. She is also very active on social networking sites. Rahul (27): Rahul is an unmarried IT engineer. His work life is very hectic and often eats out or gets food delivered at home. He lives in an apartment and is earning reasonably well. He spends lot of time on Internet but doesn’t have a very busy social life, virtual or otherwise. He is bit health conscious and when it comes about Pizza, he largely sticks with Dominos as his preferred brand. He likes their speedy delivery and ease of ordering.

Mrs. Bhargav (40): Mrs. Bhargav is a working mother who has a 9 to 5 job. She has two kids less than 10 years of age. She earns well for herself and often buys pizza for her kids depending as and when they insist. She doesn’t use Internet match but follows some TV programs very closely. Because of her workload, she often gets tired after coming back from office and doesn’t like idea of home cooked fullfledged meal every day. Targeting: Criteria while picking target segmentCriteria

Essay Topics:

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email. Please, specify your valid email address

We can't stand spam as much as you do No, thanks. I prefer suffering on my own