Market research is when information is collected to meet consumer needs e.g. products and services and how things can keep improving to satisfy them. Market research helps to identify more about customers the more a business knows about what will satisfy its customers the more successful the marketing will be. If market research is not done there can be a failure in products or service which can result in loss of money and profit.
Market research is very cost effective and is easily accessible it does not have to cost much and can help to make a product successful in the market when launched. Questionnaires can be used to collect data to find out customer needs. The validity of these data will vary on the widely spread of questionnaires the more questionnaires that are given out and filled in the more accurate the information will be therefore the reliability will be good.
I think that I made the right choice in my primary and secondary research. I used questionnaires for my primary research and found out that the data was reliable. What are stakeholders? Stakeholders are individuals or groups who have a stake or interest in running an organisation. Stakeholders have some control over decisions on how an organisation competes in a marketplace. The organisation also determines the stakeholders. Stakeholders put in money and service towards the organisation to make it more successful. A stakeholder in an organisation includes employees, suppliers, creditors, public, and consumers.
Pizza Hut has two shareholders Tricon and Whitbread, which help to sort out financial problems. Pizza Hut must have a good relationship with its stakeholders such as the public, customers and suppliers for it to do well in the market. I have decided that the stakeholders in my product will be suppliers because I will need to have a lot of supplies for my product like toppings and cheese. Suppliers will help to make the product more successful because it will assure that my product will not make much loss. My other stakeholders will be customers and the public because they will be the ones that will buy the product. Not all stakeholders want the same thing.
Other stakeholders will be managers, employees, Trade unions and shareholders. When an organisation is aware that customers choose to spend money on a product therefore a good reputation must be established. Organisations depend on stakeholders every stakeholder has its own objectives for example the suppliers may want a regular customer which will always be willing to buy. Business partners may want simply more profit and the environment may involve concerns on packaging and how to minimise waste. If the relationship between the stakeholders is strong this will help the stakeholders to achieve its objectives.
PEST ANALYSIS OF MY PRODUCT SWOT ANALYSIS OF PIZZA HUT My product has much strength the wide variety of pizzas will over come other pizza shops that may not offer as many pizzas. There is a big weakness with my product with non-halal meat therefore there is an opportunity for halal meat to be introduced. Links between my SWOT and PEST analysis There are some links that I have noticed relating to my SWOT and PEST analysis. I found out that if there is inflation in economy Pizza Hut will receive more income and this will mean that my product could be improved, in this case my pizza can be adapted to suit Muslims who are only allowed to eat halal meat. There is a link between social and weakness
Marketing penetration is the marketing strategy that increases sale figures of a product without changing the product in any way like adding extra features or modifying specification. Marketing Penetration helps make organisations improve in the markets and it is also cost effective because there will be less use of money. New Product Development New product development marketing strategy can be a product that replaces an old product, opens up a new market and broadens an existing market. An example of a product that has replaced its old product can be a product such as toothpaste where the old product only focused on whitening but the new product fights plaque whitens teeth etc. A product that has opened a new market is Lynx who established deodorant for men and now have products in other new markets. Nike has broadened its market into almost every sport.
When new products go through these stages there is a decrease in the rate of ideas. Ideas Screening of Ideas Marketing analysis Product development Testing Launch Enter New Markets Entering new markets is when a new product or an existing product targets a new market. Different markets will want different products and therefore the product may benefit from this strategy. Usually it is when products go international and sell to other countries, this includes Exporting.
Diversification Diversification is when an organisation that specialises in selling a specific product for example a clothes company and then develop its interest into a more better market industry like food snacks. This way the organisation will benefit from being stuck in a slow growing market industry to a more fast selling and successful business. I have decided that I will use the marketing penetration strategy because it is good conjunction with price penetration. I think that marketing penetration will make the product sell good without really losing out on money. There will be a level of risk that may concern Pizza Hut if this pizza does well in the market other pizzas that are sold by pizza hut may not sell that well.
Ansoff’s Matrix Ansoff’s Matrix focuses on an organisation’s present and potential products and markets including customers. This strategy considers ways to grow through existing products and new products, and in existing markets and new markets, there are four possible product market combinations. Ansoff’s Matrix uses four different growth strategies. Ansoff’s matrix can be used to help a business make decisions and help to sell a new product. It can be used to improve or sell a new product. A Product Life Cycle Product Life Cycle of My Product A product life cycle shows the journey of a product from development stages to its decline. Most product life cycles are similar, however some products may be different like World Cup 2002 merchandise it was developed quickly its growth grew rapidly but towards the end of the tournament the merchandise declined very rapidly then expired.
Some product life cycles show inconsistency and may have ups and downs. I think that my product will have a steady growth and it will enjoy a long spell in the maturity and saturation stages because my product will be an innovative pizza and people will want a different taste in pizza and this means that people will purchase my product and it will be popular and will keep my product in the market for a long-time. When my product starts to decline I may have to apply more offers or introduce a new product or change the price. This is because the product will need to make a new approach to the market after it is coming to a decline I may decide to revamp it with stuff crust.
Boston Matrix Boston Matrix diagram of pizza hut and my product Stars Stars are products with high market share and high growth, such as leaders but need a lot of cash investment in order to maintain growth in face of competition, which may offset cash production. Pizza Hut’s stars include well-established pizzas that are doing well in sales such as Stuff Crust these pizzas’s are customer favourites. These pizzas make a lot of money and because of this Pizza Hut invest more.
Cash cows Cash cows are old stars but enter a low market growth, still generating large amounts of cash but need a relatively lower cash investment. Due to high market shares over a period of years, cash cows enjoy economies of scale and high profit margins. Pizza Hut’s cash cows are side snacks like garlic bread or pizza’s that have declined in sales customers do enjoy eating them although it makes a large amount of cash it does not make as much emphasis as stars. Cash cows make cash to invest in stars and problem children.