The latest size of french fries market in India is INR 1750 crores which is growing on the rate of 25-30% per year. But there exists almost no presence of the iced pizza in India. Different this for the USA in which frozen lasagna industry makes up about 13. 6% of total USD 40 billion pizza industry. Therefore there exists a way to launch an item in this area. With this report, we could trying to achieve the following: researching the market to determine consumer behavior and preferences, followed by Segmentation, Targeting and Positioning pertaining to frozen lasagna product in India and lastly building a marketing strategy to start it.
We started out with the Porter’s Five Pushes analysis. We all found out that Intensity of Industry Competition was low to channel, Availability of Substitutes was low to channel, Potential Traders were Large, Buyer Electrical power was low and Dealer Power was low-medium. This was followed by primary research wherever we took research (online and live). This is supplemented with secondary study to find out the various aspects of client behaviour.
The core rewards were referred to as “Easy to Cook” and “Tasty Food”. Generally, the decision makers are the young generating professionals or the earning part of the family/housewife. In case of the housewife, their very own decisions are typically influenced by their pestering kids. We then simply did industry segmentation basis various methods like client characteristics (geographic, demographic, socio economic, psychographic), buying situation (consumption price, consumer predispositions), mediagraphics and personas. We all decided to target people in age group of more than 23 years old with profits of more than 2 lakhs per annum.
We hence positioned each of our product because – To all those who want a comfortable lifestyle and whom love good & healthy food choices, Frizza iis a remarkable looking product that lets you enjoy the taste of heaven, saves your time which is there for you – Anytime you want it. The product was known as as “Frizza” with the tagline – “Anytime Pizza”. We then decided the marketing strategy. Starting with Item decision, we saw that Frizza is definitely differentiated from the competitors just like Dominos basis 4 primary parameters – (i) Cheap at same taste; (ii) Convenience element (of making use of the product anytime rather than merely 12 hours during which a cafe is open); (iii) Rectangular shape instead of circular condition, which will appeal to children and adults likewise; (iv) Emotional satisfaction pertaining to mothers appearing out of the feeling that she has cooked properly a meal on her behalf children. All of us then made the decision various features of the item like toppings, etc . basis results from the survey.
Because of many reasons as explained inside the report, the pricing came to as 30-40% lower than those of competition like Dominos’s. In terms of the place, all of us decided to kick off the product only in towns given the infrastructural limitations at the beginning. The retail programs were made the decision as grocery stores, speciality shops and extremely stores, thus following the picky distribution approach. Various promotional activities (both ATL and BTL) like television advertising, Facebook, papers, events, and so forth were organized. Finally, economic analysis was done to conclude the breakeven point while 7 quarters.
MOTIVATION:
The pizzas industry in India is principally 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 price of 25-30% per year. The holding company of the market place leader, my spouse and i. e. Dominos grew 9 times by INR 155 crores in 2007 to INR 1407 crores in 2013 brining the total annual growth price to an amazing figure of 45%. But there are spaces in the market. First, the lasagna stores will be limited in number, reach and time. Thus availability is limited. Second of all, although pizza at cheap points can be obtained, higher end pizzas or pizza offering selection of toppings expense upward of INR 200 every pizza.
As a result, there is opportunity to use low pricing as a competitive edge. Hence comes the freezing concept to fulfil the present gaps. Idea is already frequent in developed countries. In USA for example , frozen pizza industry accounts for 13. 6% of total USD 40 billion pizza industry. According to Frozen foodstuff global market guide via Market Collection, sale of frosty pizza & ready food market internationally account for forty one. 1% of overall iced food market. As well, Asia-Pacific is the largest market for iced foods, accounting for 34. 3% of global market value, and supermarkets and hypermarkets constitute the leading syndication channel intended for frozen foodstuff account for 75. 2% from the market’s benefit.
OBJECTIVE:
In this report, we are planning to achieve the subsequent: market research to
measure consumer conduct and choices, followed by Segmentation, Targeting and Positioning intended for frozen french fries product in India and finally building a online strategy to start it.
METHOD:
Main research: There were two sorts of approach toward primary analysis. We ready a comprehensive set of questions to measure the market, socio-economic & psychographic attributes and market reaction for 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 optimum days (a Sunday and the Independence Day) by division of customer survey among people of different age, gender and profits groups by way of example college goers, mothers, solitary men, married couples etc . All of us also gathered online answers across diverse geographic and professional teams via social networking sites and e-mails.
Secondary analysis: We employed online resources to analyze the global frozen pizza marketplaces and potential growth of the same in American indian markets and gather advice about the existing players and their positioning.
FINDINGS:
1 . Porter’s Five Forces to Understand Industry Competitiveness: Depth of Sector Competition: Low-Medium
Range of firms- You will discover large no of players in Indian Pizza market. These include the marketplace leader P�lerines, Pizza shelter, Papa john’s, Pizza corner, Pizza Express, Smoking Joes, Amul and native Pizza Makers. But there is not any popular company in frosty Pizza apart from Amul. Highly centered market (Low HHI)- The market is highly focused with substantial HHI of approx 4700. Dominos qualified prospects the market with 67% market share with its 600+ stores. Pizzas hut is usually second with around twenty percent market share and 180 + stores. Other folks have business from 2-5% with 20-40 Stores. Talk about of Amul is very low.
Require Supply mismatch- As per each of our estimates; there may be clearly zero supply available in the market, although there appears to be strong demand.
Accessibility to Substitutes: Low-Medium
Buyer propensity to replace –Though overall competition is usually high, Competitors in the iced pizza marketplace segment will be low; for that reason buyer tendency to alternative is very low. Product differentiation & Pricing- The merchandise offered by almost all of the Pizza suppliers are similar and no difference in product currently. The quantity of products offered at comparatively lower prices is less.
Potential Entrants: Excessive
Attractive Market-Indian quick support restaurant market is approximated to be 6000 Cr which is expected to reach 18000 Cr by 2018. The pizza industry is expected to grow at a CAGR 25-28%. Low Entry Limitations and low exit barriers- The capital necessity is comparable to other product companies in the market and is also not large in any way. However, exit boundaries are less.
Big brands-Big global brands like Sopas Murphy, Very little Caesers are generally not in India yet and there is potential danger of them Coming into India. McCain though not really in iced Pizzas, might enter in the future. Buyer Electrical power: Low
Uniqueness- Frozen Pizza is a unique strategy in India and the organizations providing it are also less. Significant no . of buyers –The large zero of Buyers with not many suppliers of frozen Pizza, decreases the bargaining benefits of buyer.
Switching cost- The current charges of big brands which is much the same also decreases the power of consumers, forcing them to buy from the available options. Provider Power: Low-Medium
Materials Suppliers- There is certainly large number of suppliers for substances like flour, vegetables, and so forth The suppliers for Mozzarella cheese and brought in vegetables are much less and so they have an overabundance power. In-house technology-The technology utilized by most of the French fries Manufacturer is in-house, which in turn reduces supplier’s negotiation electrical power.
Amul Frosty Pizza: Foreseeing the growth with the frozen market in India, Amul launched frozen pizza in 2001 in Gujarat. It designed to present the product across India through its old channel. But it failed to capture the market together to close the merchandise category rapidly. It could not really adapt to the changes that the Indian quick cafe and the Lasagna market were undergoing in this period. The pricing of Amul Pizza was Rs 45 for any small French fries which was quite high at that time. Also, the product has not been positioned well in the market and proper segmentation was not done. But recently, Amul has re-launched the frozen pizzas product.
2 . Consumer Conduct:
Principal market research: We all received 161 responses (43 offline & 118 on the net responses) for our study. The study data was then filtered based on the target part (discussed later) – Employed/Earning member of the family inside the age group of 24-41 exceeding 2 lakh/annum salary of household. Thus, 83 of the respondents chop down under each of our target market. Main values & Benefits wanted by the customers: Based on each of our survey, we came to understand that, 27% customers take french fries, whenever they experience ‘Too sluggish to cook’, and 40% take pizzas for ‘Lunch or Dinner’. The primary benefits as a result are “Easy to Cook” and “Tasty Food”. Therefore our product must be created to satisfy these types of core benefits. In addition to this, next are the effects for several factors since rated by the respondents. These are on a level of 1 to five with 1 as least important and 5 since several important.
Making decisions Unit: Depending on our main market research, it can be evident that 55% of the customers whom are in the age group of 24-41 will be variety-lovers and they used to try latest developments & items. Generally, the earning family member or the housewife makes the order decision. However decisions are typically influenced by way of a pestering kids. Decision Making: The flavor and number of the food forms the basic analysis criteria for the purchase decision. Most the participants are unaggressive in data search. And, out of various medium details, people recommended to spend period on TV and the list is followed by the social networking sites.
3. Segmentation, Aimed towards, Positioning:
Segmentation: Researching the market results helped in figuring out the market sections. We will use below three broad basics on which we will identify our target market. (a) Depending on Customer Feature:
Geographic: We expect significant no . of customers to arrive mainly by metro towns in India. Based on the survey, we come across less understanding of the freezing pizza item in Bangalore despite it being one of the primary cities in India. We expect the specific situation to be very much worse in smaller cities. Ever had Freezing Pizza just before?
Disinterested
Demographic: The general market segment can be divided in younger generation with a great age group among 12-23 years, Mid-age working people who can put money into high quality frozen pizzas with their high throw-away income and 35+ females mothers who make the Lasagna purchase decision for their children.
Socioeconomic: We can target SECURITIES AND EXCHANGE COMMISSION’S middle section of B2&C along with upper part of A2&B1. Psychographic: Based upon VALS structure, we have determined 3 significant segments (out of 8) as pursuing: Strivers – They can be resource restricted people with excessive elasticity of demand, who choose variety on the whole and will be keen to try new items offered at an attractive price. Achievers – This segment has goal-oriented people with a deep determination to job. They are looking for timesaving alternatives in market.
Believers – They can be conservative, regular people with proven routine and exhibit excessive brand devotion. They are expected and prefer familiar brands.
(b) Based upon Buying Condition:
Ingestion Behavior/Usage Level: Through the review we determined people with various consumption frequency of lasagna from regular to regular monthly. The typical 80/20 rule exactly where 80% of firms sales are extracted from 20% of customers, doesn’t apply in our framework. Consumer Predispositions/Product knowledge & Attitude: A number of the non-earning young adults show readiness to spend a higher price and ability to manage high discretionary expenses. There is certainly another part with an indifferent attitude towards the product.
(c) Based on Mediagraphics: This can be a new term in marketing literature conveying media viewing habits of shoppers. It helps determine type of marketing media client prefers. (TV, radio, internet etc . )
SOCIAL NETWORKING
(d) Personas: Basis the above advices, we made the following personasAnjali (16): College-going student who also lives with her parents and consumes most of the time with her college friends. This wounderful woman has a large ring of young lady friends using a very busy social life. She noesn’t need a
strong brand dedication and at the moment consumes pizza from almost all available big companies by taking transforms. She is also very active on social networking sites. Rahul (27): Rahul is usually an single IT engineer. His job life is incredibly hectic and sometimes eats away or gets food delivered at home. This individual lives in a condo and is earning reasonably well. He spends lot of time on Internet although doesn’t have a very busy interpersonal life, online or otherwise. He’s bit health conscious and when it comes about Lasagna, he typically sticks with Dominos since his desired brand. He likes their particular speedy delivery and ease of ordering.
Mrs. Bhargav (40): Mrs. Bhargav is a operating mother who has a 9 to 5 job. This wounderful woman has two youngsters less than 10 years of age. She earns well for herself and often acquires pizza on her behalf kids depending as and when that they insist. The lady doesn’t use Internet meet but follows some TV SET programs extremely closely. Because of her workload, the lady often gets tired following coming back via office and doesn’t just like idea of residence cooked fullfledged meal every day. Targeting: Standards while finding target segmentCriteria
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