Sample Management Paper on Paesan’s Pizza Marketing Plan

Paesan’s Pizza is a fast-food entity located in Albany, New York. The family-owned business, which is operated by the Scavio family, started its operations in 1994 (Paesan’s Pizza). The brothers, Vinnie, Frank, and Lorenzo handle most of the business activities. For example, Lorenzo is handling purchasing processes; Frank specializes in human resource issues, while Vinnie is responsible for overseeing the construction of new stores. The brothers have been successful in opening more outlets in Albany, NY, East Greenbush, and Gulderland while working as a team. The restaurant’s specialties include chicken wings, rolls, salads, pasta dishes, dinners, seafood, pizza, and frozen pizza. Notably, with the market for pizza continually growing, Paesan’s Pizza hopes to create new stores within the capital region and upstate New York and attract more consumers.

  1. Executive Summary

The marketing plan provides a comprehensive overview of Paesan’s Pizza. The pizza restaurant’s location is in Albany, New York. The successful implementation of the marketing plans is critical in sustaining the company’s service delivery and market operations within the capital region. The firm is a relatively small player in the local pizza industry within Albany, New York, with competition from Spinners Pizza & Subs, Pizza Express, and Sweet Willy’s Pizzeria. It offers family-oriented dining experience and home-delivery services. The pizza restaurant is positioning itself to become a leading player in the local pizza market. The company’s main customer segments include families and individual consumers living within the capital. Paesan’s Pizza should consider expanding its operations within the capital region and out West of Upstate New York or further up North to grow its market presence. The effective implementation of this marketing plan will help the company to attain unique value preposition and increase profit margins.

  1. Situation Analysis

The company has multiple store locations within the Capital Region of Upstate New York. The firm’s menu includes different sizes of pizzas with different combinations of toppings, such as breadsticks and soda. Additionally, the entity should consider opening multiple locations within the expansive Albany, New York, and within the capital region. Paesan’s Pizza takes pride in serving its consumers with the finest food combined with quality and exceptional customer services.

The Internal Environment

Marketing Goals and Objectives

The mission of Paesan’s Pizza is to “provide perfect products capable of satisfying its customers’ needs.” The company aims to provide courteous and supportive customer services that elicit positive responses from them (Paesan’s Pizza). The firm’s current marketing goals and objectives include:

  • To deliver appropriate customer value proposition through product quality and consistency
  • To expand market presence within the Capital Region to support its sales goals and attract customers from different demographic backgrounds
  • To attain healthy monthly sales targets and double-digit profit margins
  • To develop and promote new products to the targeted customer bases
  • To create a family-oriented business atmosphere providing unique dining experiences

The primary marketing objective of Paesan’s Pizza is to attract consumers seeking comfortable, family-oriented dining environments.Paesan’s Pizza plans to implement the identified marketing goals and objectives with the aid of efficient and competent staff. In particular, the home delivery teams are efficient and prompt, helping the company to remain consistent in the competitive pizza market. Indeed, exceptional and responsive customer service is a strategic marketing process that can attract higher sales margins and loyal customer bases (Batra & Keller, 2016). The safe family atmosphere and premium prices are other approaches that are helping the firm to implement the stipulated market strategies.

The mentioned goals and objectives are consistent with the firm’s mission statement, recent trends in the pizza industry, and changing customer preferences. Paesan’s Pizza is fulfilling its mission by providing quality and courteous dining services to its customers. The firm must understand the current trends in the pizza industry for it to achieve its mission. Some of these trends include the increased demand for frozen pizza, rising preferences for gluten-free pizzas, and new topping choices offered by other pizza restaurants, and the perceived effect on Paesan’s Pizza market operations.

Current Marketing Strategy and Performance

Presently, the restaurant is focusing on the food and leisure market, targeting consumers across different demographic backgrounds. Paesan’s Pizza’s unique selling proposition is providing the customers with different incentives to maintain a healthy relationship and repeat purchases. For instance, the company is using its product prices to maintain customer interactions. Specifically, the restaurant is charging premium market charges for its pizza products (approximately $10 per pan pizza). However, the entity should consider making the price inclusive of toppings, such as soda and other the consumers’ preferences. In particular, customers buying pizza at the stipulated prize should get a bottle of soda as a discount. The premium pricing applied by Paesan’s Pizza has enabled the company to attain higher profit margins. The restaurant can continue relying on such market strategies to increase the sale of its quality product ranges, attract, and retain consumers from different socio-economic backgrounds.

The company should continue using online marketing, strategic location within the capital region, and local distribution channels to improve its sales. The application of online platforms, such as social media (Facebook),will help the company to attract the millennial population, further enhancing sales potential (Andrews & Shimp, 2017). The company also owns several chain stores in different places, such as Albany, Rensselaer, Guilderland, Latham, and Rotterdam. Notably, strategic locations can help companies to augmenttheir sales and profit margins (Vita et al., 2016). Lastly, the restaurant’s distribution strategy shouldincludethe use of trucks to make prompt and efficient delivery of products to stores. The above elements of the firm’s current marketing strategies are working well for them. However, the restaurant has limited market share, with major operations in Albany, New York. The low brand preference outside the city is attributable to external market factors such as competition from other established firms and inadequate resources.

Current and Expected Organizational Resources    

The firm has several resources and anticipates more. The firm has a healthy financial status that can facilitate its market operations and expansion out West of Upstate New York or further up North. It has restaurant managers who are responsible for supervising daily operations in the company’s retail chain stores located in Albany, Rensselaer, Guilderland, Latham, and Rotterdam. The two brothers operating the family business are competent and efficient in their respective service deliveries. The company’s current relationship with key suppliers and customers facilitates various organizational operations and market performances. The restaurant should open up more chain stores in different parts of the capital region and expand the delivery mileage radius. Lastly, the company should seek loans and related assistance from banks to fund its plans to open more stores out West of Upstate New York or further up North.

Current and Anticipated Cultural and Structural Issues     

Several structural matters aid the organization in achieving its objectives. For example, the firm has a comprehensive customer orientation program, explaining its exceptional services. Moreover, the two brothers managing the pizza restaurant should facilitate the recruitment of customer-friendly personnel capable of providing exceptional services to the clients (Sparrow, Brewster, & Chung, 2016). The company should also introduce different employee-friendly programs, such as training and development seminars tosupport Paesan’s Pizza mission to achieve maximum customer satisfaction through the provision of quality products. Moreover, through such training programs, the employees gain relevant insights into the employees’ expectations and satisfy their innate needs (Deepak &Jeyakumar, 2019). Paesan’s Pizza emphasis on both long and short-term planning will prepare the firm to tackle various external and internal environmental challenges. The restaurant is also willing and ready to accept and embrace changes and trends in the pizza industry,for instance, Paesan’s Pizza plant, to embrace customers’ demand for healthier gluten-free pizzas and beverages.

The current cultural issue facing the company includes serving consumers from different cultures within the diverse Albany, New York. Notably, most people ordering pizza from the company knows that it is Italian-based thus expect Italian foods. Nevertheless, the business should consider combining different seasonings, flavors, and traditional recipes to increase the varieties it offers customers. The firm could also consider incorporating a culturally competent workforce to expand its service delivery to other consumers from diverse cultures. Cultural competence can help a business to control various environmental cues, such as emotional reactions and negative perceptions (Tsalikis & Stephanie, 2017).The organization should train its employees to enhance their cultural sensitivity to customers from different socio-cultural backgrounds.

  1. The Customers and their environment

Paesan’s Pizza current customers include the residents of Albany, New York, from different demographic backgrounds. The customers include children, men, and women who may want alternative and cheap dining experiences, and those who work in busy offices within the capital region. Paesan’s Pizza retail stores located in Albany, Rensselaer, Guilderland, Latham, and Rotterdam are also family-friendly and can provide the best dining experiences to different households seeking outdoor adventure. College students within the city are the largest consumers of Paesan’s Pizza products.

The potential customers that the firm should target includestudents from local institutions, such as the University of Albany and the College of Saint Rose. The students have limited time between classes, thus may view the company’s online ordering system convenient. Another possible customer base includes health-conscious consumers. A slice of pizza has rich protein content, which can provide health-related benefits to the consumers. The firm can also offer fresh vegetable toppings, a healthy combination for the targeted consumers. The customers can consume the products from the firm’s family-friendly restaurants or in-home settings. However, probable customers may not purchase the company’s products because of the high prices and inadequate marketing campaigns.

Paesan’s Pizza customers may purchase its products from the retail chain stores located in Albany, Rensselaer, Guilderland, Latham, and Rotterdam. Some clients choose to make orders through the firm’s e-commerce platforms (online ordering system). The customers select Paesan’s’ products based on affordable prices and a reputation for quality and healthy content. Vegetarian and other health-conscious customers enjoy the juicy pizza slices with fresh vegetable toppings. Overall, Paesan’s Pizza should maintain its combination of quality and healthy to create and sustain brand loyalty and unique value.

The External Environment

Competition

The restaurant’s major competitors in the pizza industry include Spinners Pizza & Subs, Pizza Express, and Sweet Willy’s Pizzeria. Thecompetitors offer similar combinations of pizza products as Paesan’s Pizza, threatening the company’s performances. As such, Paesan’s Pizza is selling its frozen pizzas through grocery stores, such as Gabriel’s Market, Shoprite, and ShopnSave, to remain competitive in the capital region. The company should also provide a discount to its loyal consumers to increase repeat sales and maintain customer loyalty.

Economic Growth and Stability

The current outbreak of the COVID 19 pandemic implies that the country is likely to experience an economic recession and loss of employment opportunities. Accordingly, companies such as Paesan’s Pizza may experience a reduction in sales and profitability. More consumers will not have the disposable income to spend on luxury products such as pizza. Other economic challenges that may influence the operations of the business include high taxes, high-interest rates, and inflation. For instance, high taxes may limit the restaurant’s ability to breakeven. Higher interest rates may reduce access to loans from financial institutions.

Political Trends

The political environment in the country is relatively stable. However, political decisions or legislative frameworks such as the introduction of higher minimum wage may affect the firm’s profit margins and revenue potentials. Such political impacts may force Paesan’s Pizza to raise its prices or cut employees’ hours to remain afloat.

Legal and Regulatory Issues

Regulatory bodies, such as the FDA (Food and Administration agencies), affect the firm’s market operations. Particularly, the implementation of strict health-related guidelines provided by the FDA is good for the business and consumers. As such,Paesan’s Pizza must continue to abide by its legal and regulatory requirements to survive in the competitive pizza market.

Technological Advancements

The advancement of user-friendly technologies has forcedPaesan’s Pizza to adapt to it to remain relevant. One of these innovations isan online-based ordering system (GrubHub). Such innovation allows clients to make online orders and request home deliveries, thus increasing a company’s operational efficiency (Jayanetti, Jones, & Freeman, 2018). The corporation should also consider using Doordash technology to facilitate online ordering. The current groups of consumers are technologically perceptive. They are increasingly embracing the changes in the firm’s operational procedures.The company should also consider embracing more technologies, such as the use of drones and robots, as they arise, to make home deliveries within the capital region and after expanding out West of Upstate New York or further up North.

Socio-cultural Trends

Paesan’s Pizza recognizes the existence of socio-cultural diversities in contemporary societies and adjusts to fit them. For instance, the firm usuallytailorsits food products to match traditional Italian dishes. The company should consider employing individuals who are conversant with the culture to affirmits cultural sensitivity.

  • SWOT Analysis
  1. Strengths

Paesan’s Pizza provides quality pizza products promptly and efficiently, attracting more consumers to the brand. The company relies on its unique service delivery models and channels that allow customers to receive their orders quickly. For example, the firm offers attractive options for products,such as in-store frozen pizza, and exceptional customer services.

  1. Weaknesses

The company’s products are relatively expensive because of the premium pricing strategy, which exposes the firm to unfair market competitions.Companies charging lower prices are likely to attract more consumers. Paesan’s Pizza lacks diversity in its production line, thus reducing its market share. Lastly, the five miles radius for the delivery of pizza is also quite limited.

  1. Opportunities

The biggest opportunity for Paesan’s Pizza is the expansion of operational bases within the capital region and out West of Upstate New York or further up North.Through such expansions, Paesan’s Pizza can attract more customers to its brand and increase its revenue. Paesan’s Pizza should also differentiate its products, for instance, bycustomizing the product labels to include nutritional information, to satisfy the customers who are conscious of pizza ingredients.

  1. Threats

The biggest threat facing Paesan’s Pizza is the company’s market competitors, such as Spinners Pizza & Subs, Pizza Express, and Sweet Willy’s Pizzeria, whichcan reduce the firm’s market share.Economic recessions in the country also threaten the company’s profits and operations since it reduces disposable income and spending power of consumers. Government policies such as high taxes and high-interest rates can also affect the firm’s ability to breakeven.

  1. The SWOT Matrix
Strengths

ü  Efficient delivery models

ü  Different food product ranges

ü  Exceptional customer services

ü  In-store purchase of frozen pizza

Opportunities

ü  Expansion within the capital region and out West of Upstate New York or further up North

ü  Product labeling

ü  Product differentiation

ü  Expand the delivery radius to 10-15 miles

Weaknesses

ü  Expensive products

ü  Lack of diversity in the production line

ü  The five-mile maximum delivery radius

ü  Companies charging lower prices

 

Threats

ü  Economic recessions

ü  Intense market competition

ü  High taxes and high-interest rates

ü  Reduced disposable income and spending power of consumers

 

  1. Developing Competitive Advantages

Paesan’s Pizza can match its strengths through the consistent production of quality products. The company can also integrate innovative processes in its product design and labeling processes. The company can also convert its weaknesses into strengths by adopting low-price strategies and product differentiation. The company can also hire competent staff to sustain its efficient production and delivery processes.

  1. Developing a Strategic Focus

The overall strategic focus of Paesan’s Pizza is to expand its local businesses within the capital region. According to Wood and Jobber (2016), the company strategy canvas of firms should focus on attaining value and satisfaction for the consumers, and Paesan’s Pizza is no exception. According to the business canvas model, the firm’s strategic thrust is on sustaining the customer bases. The strategy is unique because it understands and incorporates the varied needs of consumers from diverse demographic backgrounds (Joyce & Paquin, 2016). For example, the firm should collaborate with beverage companies such as Coca Cola Company to supply soft drinks to the pizza customers. The company’s value proposition includes a healthy combination of food products. The customer segment includes the U.S market and consumers within Albany, New York, and other proposed markets out West of Upstate New York or further up North. Currently, the company is using menu pamphlets to market its pizza products within the residential and business stores. The company should also continue relying on word of mouth advertisement conducted mostly through satisfied local consumers. However, based on the canvas strategy, the company should consider using different platforms, such as TV ads, social media, and billboards, to market the products.

  1. Marketing Goals and Objectives
  2. Marketing Goal A: To expand the company’s business operations within the capital region out West of Upstate New York or further up North

Objective A1: Tobecome a leading player in the pizza market within Albany, New York

Objective A2: To increase the company’s sales by establishing the new shops in the capital

  1. Marketing Goal B: To reinvent the company’s brand name

Objective B1: Differentiate product ranges to include other products

Objective B2: Customize the product labels by including nutritional information

  1. Marketing Strategy
  2. Primary (and Secondary) Target Market

The primary market includeslocal households and individual consumers. The demographic characteristics include; all age groups, males and females, household income of approximately $ 40,000 per year or more, and prefer unique dining experiences in a family-friendly environment and enjoy the leisure of fast foods.

The secondary target market includes individuals working in residential areas. The major characteristics include easy access to the internet, inadequate time to cook homemade foods, enjoy outdoor experiences and fast foods, live and work within the residential areas, and visiting the residential areas for business trips and other related engagements

  1. Product Strategy

Brand name, packaging, and logo design: The figure below includes the brand name of the company, the packaging image, and the logo design.

Major features and benefits:High-quality pizza slices attractconsumers to the brand.

Differentiation/positioning strategy: The Company plans to introduce more topping options such as fresh vegetables to its pizza slices

Supplemental products (including customer service strategy): Desserts, cookies, energy bars, and brownies attract more clients to the brand.

Connection to value (core, supplemental, experiential/symbolic attributes): Exceptional customer services and efficient home delivery services attract consumers to the brand

  1. Pricing Strategy

Overall pricing strategy and pricing objectives: The firm charges different prices for different products. For instance, frozen pizza goes for about $7, normal pizza for $10.99, and the “Feed the family” combination for about $17.99.

Price comparison to competition: Most Paesan’s Pizza competitors charge lower prices

Connection to differentiation/positioning strategy:The introduction of more toppings and quality pizzas will enable the company to sustain the premium-pricing model and attract more consumers

Connection to value (monetary costs): The firm seeks to attract and retain new consumers within the capital region and attain an expanded sales margin

Profit margin and breakeven:Setting up new retail shops within the capital and expand out West of Upstate New York or further up North will increase its sales and expand the profit margin and breakeven

Specific pricing tactics (discounts, incentives, financing, etc.): The introduction of price discounts during special events, such as Christmas, will further endear consumers to the brand.

  1. Distribution/Supply Chain Strategy

Overall, supply chain strategy (including distribution intensity): Efficient and prompt supply chain framework using online ordering systems

Channels and intermediaries to be used: Using other forms of print media such as flyers to market the company’s products

Connection to differentiation/positioning strategy: The hiring of more delivery staff to sustain the efficient delivery processes

Connection to value (nonmonetary costs):The distribution channel will help to attract and retain new consumers and expand sales margin

Strategies to ensure channel support (slotting fees, guarantees, etc.): The online delivery system allows customers to order pizzas at flat rate or price

Tactics designed to increase time, place, and possession utility: The firmcould research the best routs to use and what time to use them.

  1. Integrated Marketing Communication (Promotion) Strategy

Overall IMC strategy, IMC objectives, and budget: To transform into an excellent fast food making company and capture a large market share within the capital region

Consumer promotion elements

Advertising strategy:Using social media platforms,such as Facebook, Instagram, Google Review, and Twitter

Public relations/publicity strategy:An efficient feedback system to address various public relations issues of customers’ concerns

Personal selling strategy:Design a unique discount policy and flexible pricing of products

Consumer sales promotion (pull) strategy:Improve customer relationships through efficient delivery of products

Trade (channel) promotion elements

Advertising strategy:Print media, such as flyers

Public relations/publicity strategy: Usingpersonalized notes to appreciate the consumers

Personal selling strategy: Offer customized products during birthday and graduation celebrations

Trade sales promotion (push) strategy:Menu pamphlets, door hangers, and mailers to market its products within the residential and business stores

  1. Marketing Implementation
  2. Structural Issues

The company will rely on its exceptional employees to implement the marketing strategy. Per David and David (2016), firms should offer appropriate training and development programs to the employees on effective customer service models for the strategic management of various business processes, and the company intends to do so.

  1. Tactical Marketing Activities
Specific Tactical Activities Person/department responsible Required budget Completion data
Product Activities

ü  Product differentiation

ü  Customized products

Production and quality control teams Flexible Four months
Pricing Activities

ü  Premium pricing

ü  Low-cost pricing

ü  Discount programs

 

Production and quality control teams Flexible Four months
Distribution/Supply Chain Activities

ü  Online ordering systems

Distribution team Flexible Four months
IMC (Promotion) Activities

ü  Promotional events

ü  Social media campaigns

ü  Sponsoring events

Sales and marketing team Flexible Four months

 

  • Evaluation and Control

The formal and process controlsinclude additional delivery staff and the creating of a quality control department before the implementation of this marketing plan (Dodds, Heisey, &Ahonen, 2018). The human resource and quality control departments will ascertain the overall performance standards. The company should also introduce strict codes of conduct to monitor the employees’ attitudes and performance standardsbased on informal controls.

  1. Implementation Schedule and Timeline
                               Month      
Activities               Week 1 2 3 4 1 2 3 4 1 2 3 4
                         
Product activities       ü                  ü   
ü  Product differentiation                        
ü  Customized products                        
                         
Pricing Activities       ü               ü
ü  Low-cost pricing                        
ü  Discount programs                        
ü  Premium pricing                        
                         
Distribution/Supply Chain Activities       ü               ü
ü  Online ordering systems                        
ü  Drones program                        
ü  Delivery trucks                        
                         
IMC (Promotion) Activities       ü               ü
ü  Social media campaigns                        
ü  Sponsoring events                        
ü  Promotional events                        

 

  1. Marketing Audits

The company’s general and marketing managers will monitor the implementation of the marketing plan. The firm can also use a special checklist to ascertain whether the employees are implementing the identified strategies. Through such experiential marketing, a firm can encourage consumers to experience and directly express their feeling about the perceived impacts of the products (Smilansky,2017). Lastly, the managers will adjust the implementation schedule to incorporate every important marketing element detailed in this plan.

 

 

References

Andrews, J. C., &Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education.

Batra, R., & Keller, K. L. (2016). Integrating marketing communications: New findings, new lessons, and new ideas. Journal of Marketing, 80(6), 122-145.

David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach, concepts, and cases. Pearson–Prentice Hall.

Deepak, R. K. A., &Jeyakumar, S. (2019). Marketing management. Educreation Publishing.

Dodds, M., Heisey, K., &Ahonen, A. (Eds.). (2018). Routledge Handbook of International Sport Business. Routledge.

Jayanetti, A., Jones, A., & Freeman, B. (2018). Pizza, burgers, and booze: online marketing and promotion of food and drink to university students. Australian and New Zealand journal of public health, 42(1), 110-111.

Joyce, A., & Paquin, R. L. (2016). The triple-layered business model canvas: A tool to design more sustainable business models. Journal of cleaner production, 135, 1474-1486.

Paesan’s Pizza.  Welcome to Paesan’s Pizza& Restaurant. https://paesanspizza.com

Smilansky, S. (2017). Experiential marketing: A practical guide to interactive brand experiences. Kogan Page Publishers.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.

Tsalikis, J., & Stephanie, M. (2017). Cross-cultural priming and its effects on business ethical decision making. ARMG Publishing. 1(1), 83-94.

Vita, G. D., Salvo, G. D., Bracco, S., Gulisano, G., & D’Amico, M. (2016). Future market of pizza: Which attributes do they matter? GRIS on-line Papers in Economics and Informatics, 8(665-2016-45125), 59-71.

Wood, M. B., & Jobber, L. (2016). The marketing plan handbook. Pearson.