MINI PROJECT-I REPORT ON NEW PRODUCT DEVELOPMENT
Adding new Pizza variants- The surpnse Pizza, the Tailor Made Pizza and Re-mzza - To
East
Food Menus
Submitted in partial fulfilment of the requirements
For the award of the Degree of Master
of Business Administration
(2020-22)
(Dr. API AKTU, Lucknow)
By
Tariq Siddiqi
MBA Semester 1
(GIMT, Greater Noida)
Report Submitted to:
Prof. Tariq Siddiqi GIMT
PREFACE
Innovative Idea Development is the overall process of taking a service or a
product from
conception to market. New products and services are meant to fill a consumer
demand or an
opportunity in the marketplace.
New products generally differ from a product line extension. Examples of new
products
Include things like one-cup gourmet coffee machines. Keurig machine offered the
gourmet
coffee experience previously only found in a coffee shops, right at home.
Examples of
product line extensions include products like Diet Coke. Coca-Cola company used
Diet Coke
to target the market of soda drinkers that wanted a lower calorie soda than their
regular Coke product.
However the more loose definition of New Product Includes not only new to the
world products
and services, but also new to the market and new to the company
products. It is basically catering to a heretofore untapped customer
need or want or desire.
This project has been carried out, to develop one such new product, in my
favourite product
category — food. That too, the Italian delicacy - Pizza.
Who doesn 't like Pizzas? And there are pizzas that are already selling like hot
cakes. But this
project aims to target several deeper issues.
Though a lot of varieties and flavours are currently available in market, but the
average
connoisseur is still looking for more novelty and variety. There doesn't seem to be
enough
newness in taste, with the same roll of cheese, veggies, chicken, pepperoni...
Second is the very unwholesome fact of restaurants having food going to waste,
because all
doesn 't get consumed on the same day. These fresh portions of food ingredients
that do not get
used in dishes on one day, are generally kept in storage for some time, and then
ultimately get
thrown away, simply because the chefs and kitchen staff work on strictly
measured portions for
the next day's dish.
This mini project has been carried out to develop some degree of innovation in
this product -
the pizza, to offer variety to the esteemed customers and to thereby stir energize
an already
saturated market of the Italian delicacy in our area.
ACKNOWLEDGEMENT
It is a matter of great satisfaction and pleasure to present this report. I take this
opportunity to
owe my thanks to all those Involved in my training.
This project report could not have been completed without the guidance of Prof.
Tariq
Siddiqi,
I express my gratitude to all those who have helped me directly or Indirectly in
completing the
training.
Name Tariq Siddiqi
Roll No.
MBA (1 SEM)
CONTENTS
Serial No. Content Page No.
8
Chapter 1
Introduction
New products are very essential for corporate success. Innovation IS a must if you want
to
continue competing in the market. However, the new product development is one of the
riskiest
processes that require focus and high investments. In today's market, careful
planning and a good product strategy are essential to help you succeed in the market.
Companies
develop a large number of new products every year, but most of these products
fail to secure competitive advantages and end up adding high costs for the company.
Several studies have been done in the successful product launch cases, and success
drivers have
been discovered. Among others, developing new unique products that are customer
centric and focus on several customer benefits should be the company mission.
Continuous
research and planning are necessary if a company wants to launch a successful product.
All
the employees of the company need to be involved, starting from R&D to
Marketing, to
sales, to finances and so on,
Chapter 2
Objectives
•To develop and introduce new variants in the pizza menu of our fast food
restaurant.
•To bolster and augment the sales of the fast food restaurant by offering
more variety,
more surprise and more awe, m our menu.
•To be a forerunner and offer a ground breaking solution to the universal
problem of
restaurants seen in the form of food wastage.
Chapter 3
Pizza Industry in India
The food service industry involves sale of food and drinks for Immediate
consumption
in designated eating areas, providing an ambience along with food, as a stand-
alone or
shared facility with other food service operators as also home delivery
transactions. The
industry is broadly classified into organised and the unorganised segment. The
organised
segment comprising of dining, food courts and cafes is characterised by
accounting
transparency, organised supply chain with quality control norms, and multiple
outlets
whereas outlets which lack technical and accounting standards such as Dhabas
(small
open eating places) and roadside eateries (comprising street stalls) form a part
of the
unorganised segment. According to the Food Franchising Report 2019, the food
services
industry in India is estimated to be worth Rs. 580,000 million in 2021, out of
which Rs.
80,000 million, or 7.24%, was accounted by the organised sector. The report
further
estimates that the consumer food services value sales grew by 20% in 2018
over 2017.
The changing demographics and increased individual income have led to higher
demand
for eating out and ordering in services in India. The food-services Industry in
India is m
the growth phase and offers opportunities across a variety of cuisines such as
fast-food
restaurants, multi-cuisine food courts and home delivery and the eating outside
habits of
Indians is quite diversified.
Organized pizza business in India is a little over a decade old. It started when
Domino's
and Pizza Hut, the two biggest pizza chains with origins in US entered India and
set up
stores. Before that the only pizzas that Indians were used to were from a very
few mom-
n-pop restaurants and chains like Nirula's. Pizzas were also served in 5-star
hotels and
were considered a very premium food back then. Over the last decade the
category has
been evolving and today it is available widely but it still is in a rapid growth
phase with
presence limited to top 44 cities. The category consumers are the young Indians
in the
age group of 18 to 35 years. Pizza as a food has been gaining acceptance. It
competes with other cuisines from North Indian, South Indian, and Chinese and
to some
extent burgers & snacks as an option for non-home cooked food, While Indian
consumers do not perceive Pizzas as an ideal meal option and speak of it in
quasi
meal/quasi snack terms, it is consumed purely as a meal with more than 95% of
the
consumption happening in the lunch and dinner occasions. Hence Pizza can be
classified
as a meal replacement food. It has a premium and special association as well
and for most consumers it's a special treat. Weekend dinner occasions account
for almost
40% of the category consumption (Saturday and Sunday dinner). Among all
these other regular food/meal options Pizzas have the lowest clarmed
consumption
frequency. This is true across age groups, genders and geographical regions.
One of the
Important reasons for this is that the Pizzas are not perceived as a food that is
healthy or
food that the whole family can have, on the positive side this is also because it is
seen
as a special food to be had on certain occasions. Pizzas get slotted somewhere in
between
full meal and snacks. It still is seen as an occasional consumption option,
which is high on novelty and indulgence. Nevertheless, the rising Income levels
& change
in customer preference along with India's consumption story poises
promising growth prospects for the pizza Industry.
Indians have a strong preference for freshly prepared foods, and most have a
definite
prejudice against packaged, branded, or processed foods, believing them to be
lower in
flavour and nutrients. However, with urbanization, more working women, the
arrival of
large food multinationals, and a proliferation of fast -food outlets, acceptance of
packaged food products is increasing. The key factors that have enormous
importance in
increasing demand for food are expected to play a major role in the
transformation of the
demand and these are rising population and increasing number of nuclear
families and
working women's palate and lifestyle changes. Indian consumers have
increasing
tendency to spend on fashion, health, fitness, education and more importantly
"self',
attributed to societal factors and independence from parental pressures.
These factors are likely to have an impact on demand for food individually as
well as in
combination, and result In significant changes in not only the demand for food
quantitatively but also in terms of where, how, what and when food is
consumed. This
translates to new and unprecedented modes of delivery mechanisms, retailing
formats,
packaging formulations and a range of convenience and ready-to-eat food
products.
Among those who are regularly consuming, there is a big chunk that thinks it is
slightly
overpriced. And offers little variety in actuality, even with huge number of stated
alternatives offered by the makers.
The country is yet to explore further possible options in pizza flavors and that is
what we
would try to bring on to the platter through our new product. We intend to keep
the
original authentic taste of the pizza intact and wish to serve to the actual foodies
with our
large array of authentic pizzas.
Our Competitive Landscape
Currently, the closest specialized pizza restaurant is one mile away from our
intended
location. There are five fast-food restaurants, near our intended location, that
also include
pizza among other menu items. They are being counted as competitors because
they have
had a long tenure in business and they are located within a one-mile radius from
our
pizzeria. Other main competitors that deliver In the area are: Pizza Cottage and
Checkers
& Ludos.
Chapter 4
Methodology (Innovation Process)
The Stage Gate model, which is an organized, structured product
development and
launch process, has been used. It is a series of stages and gates. As shown in the figure
below, there are five stages and after each stage is followed a gate. The stages
represent
the activities that are taken during the New Product Development process. Gates
are
checkpoints that are determined by certain criteria from which companies decide either
to
contmue with the project or not.
As shown in the figure, the Stage Gate Model starts with the discovery of the new
products and finishes with the launch of the product in the market.
Post launch review is recommended after the product has been launched in the
market.
The Stage Gate Model is a process that can be modified depending on the
complexity
and size of the project.
DISCOVERY
IDEA SCREEN
SECOND SCREEN GO TO DEVELOPM ENT GO TO TESTING GO TO LAU NCH
SCOPING BUILD DEVELOPMENT TESTING & LAUNCH
BUSINESS CASE VALIDATION
REVIEW
POST-LAUNCH
REVIEW
The steps m product development include drafting the concept, creating the
design, developing
the product or service, and defining the marketing. We will discuss the first two in
this chapter.
The need for more variety in pizza flavours and the possibility of springing
surprises m the
flavours, had long been there in the mind of the researcher. To ensure that a
similar need was
felt by others also, a survey was carried out, with a mix of open and close ended
questions.
This was the Scoping stage.
Survey and interviews were also carried out with various food industry owners
and staff
members to ascertain and quantify the problem of wastage of good untouched
food, remaining
after the closing of the kitchen at the end of the day, simply because some
Ingredients which
were kept in ready state, didn't find their way into the dishes, simply because that
dish was not
ordered on a particular day. The results were astonishingly high
Some brain storming sessions, idea generation meets and discussion forums
were set up to
reach some kind of consensus on the said problems and their possible solutions.
The idea of the Surprise- Pizza, the Tailor Made Pizza and the Re-pizza finds its
origins In
mothers' recipes of the assortment of stuffed parathas and kachoris made for
breakfast, from
leftover vegetables from the night before. Most of us would relate to the frequent
occurrence
of that last minute life saving maneuver of our mothers, where they magically
made fresh dishes
of last night's remnants for our school tiffins, our mid morning snack as well as for
a lazy
holiday lunch. To some of us that taste meant the Universe, not only because of
its assorted
flavors but also because of the surprise of the stuffing.
This idea, though very unique, and prudential, seemed to be a little low on the
SNOB scale.
So a survey was carried out to ascertain what potential customers thought of
such a possibility,
Most not only responded positively, but also loved the idea for its nostalgic value.
Chapter 5
Description of the New Product
The concept of the Surprise pizza would allow guests to let them be surprised
with a variety of
flavours, after asking a few questions about their taste and preference for spicy/
tangy/
vegetarian products etc. Ingredients would come from a variety of exotic sources.
The Tailor Made Pizza would allow guests to choose their pick from the variety of
different
Ingredients ranging from vegetables, fruits, to eggs, poultry, kebabs to chocolate,
rabdi and so
on.
Furthermore, the small portions of ingredients that normally get left out in the
kitchen, after
meals have been cooked, can also be combined together to produce exotic
variants. This would
be named as the Re-Pizza.
Ingredients would of course be all checked for quality and freshness.
The pizzas can be offered in over 200 flavours, with all the combinations and
permutations of
ingredients that are available in the restaurant.
The restaurants will also offer a wide variety of toppmgs, sauces, sodas, fruit
juices, and
desserts, to go with. The pizza can be sold by the slice or as whole pies. The pizza
would be
served with variety of condiments such as red chilli, pepper, oregano, cheese, or
garlic powder,
apart from more ethnic condiments from the Indian cuisine, like Coconut
Chutney, Thigayal
South Indian Chutney, Tamarind Chutney, Tomato Chutney, Cashew Nut
Chutney, sont,
jaljeera, etc. In addition to pizza, there would be, bread sticks, and buns. Pizza
could be served
at the counter, for take-out, or delivered to the location indicated in our customer
orders.
Chapter 6
Commercial Aspects and
Feasibility
Ours would be a typical take-out restaurant where customers would order food
and drinks
at the counter, as opposed to sit-down restaurants that provide table service.
Wait-staff is therefore not included in our work team. As explained in the
previous section,
our main products are a variety of pizzas that are served at the counter,
for
take-out, as street snacks, or delivered at the locations indicated in the customer
order.
We would take orders online, by phone, or at our location. To prepare pizza, we
would
use high quality ingredients and traditional recipes. Energy-efficient food
preparation
equipment and technology will be available to our kitchen staff, as we
plan to invest our capital in valuable long-term assets. Pizza would be
delivered hot or refrigerated. Special packages would offer protection and
quality conservation during transportation.
Re-heating instructions would also be included on to the package, along with
other items
ordered by the customer, such as soft drinks, cookies, or other dessert items.
The
entire delivery process will be conducted through five main food-catering on-line
services that have excellent references around the area. In this way, we would
be able to
save on delivery costs and logistics, and simultaneously use the high Internet
exposure
of our partners. In addition, delivery people will use their own vehicles, so
the business will not have to purchase delivery vehicles or hire drivers.
By always focusing on meeting or exceeding our customers' needs, wants and
expectations, we will be able to build customer loyalty and word-of-mouth
sales that many of our competitors are lacking.
Market
The area nearby our business IS a growing low-to-middle-class area, counting
more than
one million residents. There are about five hundred businesses close to our
location. Most
of these residents are families of three or more. The boom in the area is primarily
in
response to new business and employment opportunities in the city's Business
and
Industrial Park. Similar food service businesses that traditionally do well with this
population have proved the potential for our services as well. With continued
growth in
the area, opportunities to serve the local residents will increase.
The company will sell to individuals, but it will also accept some occasional
catering jobs
to Individuals and companies m the area. We estimate that over 90 percent of our
sales
will go to individuals (retail customers) and the remaining balance to existing and
future
businesses (corporate customers). However, it is important to note that, typically,
corporate customers make larger orders for their employees' needs or special
business
events.
According to our market survey, the target individual customers prefer to order
pizza
more than once a month, as an occasional alternative to an expensive and
timeconsuming
lunch or dinner. Businesses prefer to order pizza for thelr employees, or on
different
occasions or less exclusive business
events.
Strategy and Implementation
Our strategy is based on delivering a strong customer value proposition in a niche
market. We
are looking to offer the Local city and its surrounding areas a new choice in pizza
options.
We are building our marketing infrastructure so that we can eventually reach
more customers
with the same pizza offering. We focus on satisfying the needs of low-to middle
class
residents and companies located inside or outside the Business Park. We intend
to use various
forms of marketing communication as an efficient way to reach our target market
and raise
their awareness about our pizza service offerings. In addition, we will use effective
advertising
tools to promote the business. The usage of flyers is a common way to advertise
in the area. We will also hire people to hold signs near Industrial Park. Door handle
flyer
promotion can be helpful throughout the Local neighbourhoods. Adequate
funding has been
accounted for when projecting the promotion expenses. We intend to spend the
marketing
money in the most cost-effective way. Therefore, many other advertising options
will be
evaluated during the project implementation, to make sure that we achieve best
results.
Sales Strategy
Because ours is a new entity, we recognize that we will need to prove our
company's
worth to Local customers, in order to earn respect and business. Most important,
we need
to sell our company, not necessarily our products and services, and create
positive word-
of-mouth. We will have to push our service and delivery capacities. Our sales
strategy is
based on the belief that there will be a regular flow of first-time customers, due to
our
convenient location. The real sales effort will be to focus on the conversion of
each first-
time customer into a long-term customer relationship, where these customers
come
regularly to our pizzeria, and also bring or recommend friends to share the
experience of
a great pizza. This focus recognizes that it would cost our company less money to
convert
a new customer Into a long-term relationship, than it does to attract a new
customer. With
this m mind, our sales activities will concentrate on keeping existing customers
happy,
and always meet or exceed their expectations. Consistent, customer-centric
service is the
absolute requirement in the hospitality industry, and so it is for all our employees.
Every
member of our team will be empowered to deal with our customers' requests in
such a
way that no customer should leave dissatisfied. Problem solving will be
encouraged
throughout the organization, and it would also be fair to say that each employee
is part of
the sales staff, not only the first-line servers.
Sales Forecast
The first few months will be slower, a consequence of being a start-up business,
struggling to become more visible within the community, going from nothing to
achieving a regular clientele. A steady growth cycle will occur as the months pass.
Profitability is projected to occur during the first half of the first year. The
increasing
sales forecast suggest an important potential growth. Our projected sales are
actually net
sales, which consist of the gross proceeds from sales of merchandise gross sales
- less
returns and allowances. The projected average monthly sales are approximately
Rs. 3.5
lakhs. Considering an average price of Rs. 140 per pie, we would need to sell on
average
80 pizzas each day. Two weeks are reserved each year for pay vacation, when
the
restaurant will be closed, but important maintenance works are scheduled for
the
equipment and facilities during this break period. This is the reason why the
sales in
August are projected at 50 percent of normal sales. Using our equipment and
technology
we will be able to produce maximum 200 pies per day (theoretical operating
capacity).
However the normal operating capacity, which takes into account the usual
breaks and
the idle periods, is only 100 pies per day, or 50 percent (usually 10 working
hours per
day). In periods of peak sales, the normal operating capacity could be extended
by
working more than 10 hours per day. Therefore we believe that, from the
operating point
of view, our sales forecast IS feasible.
The question remains, will we be able to attract and maintain at least the
minimum
number of customers required to order 90-100 pizzas per day? This figure is
disputable
because the companies typically order a larger number of pizza, and the
individuals
usually buy by slices, or order full pies for home delivery. However, it is a good
starting
point for our analysis.
The population in the Local area exceeds ten lakhs, which means that,
theoretically, the
maximum number of pizza (1/2 pizza portions) ordered per month at different
restaurants
in the area (total market) would be 100,000. If we add the orders made by many
of the
five hundred businesses in the area, the estimated total market in Local area is
105,000
pizzas per month, and our target market share would be 3-4 percent
(3200 pizzas / 105 ,000 pies = .03).
We believe this target market share to be reasonable and achievable.
Marketing Strategy
The marketing strategy of our firm centres on creating and developing a
corporate
identity that clearly defines our market niche in terms that benefit our retail and
corporate
customers.
Since our target market includes two major segments — lower to-middle class
residents
m the Local area, and local businesses that are located inside or outside the
Local
Industrial Park - their most important needs are service, price, and delivery, in
that order.
One of the key points of our firm 's strategy is to focus on these target segments
that know
and understand these needs, and are willing to pay a reasonable price to have
them
fulfilled. Factors such as current local trends and historical sales data of similar
businesses in the area, ensure that the high demand for pizza will continue over
the next
five years.
Trends are in our favour: the last study we saw published in the Local area has
fast food
and limited-service restaurant sales growing at 10 percent per year, while fine
dining
restaurants, for example, experienced and will probably continue to see more
than 20
percent decrease in sales. Our previous experience m runnmg a similar business
shows
that advertising costs can easily overwhelm a start-up company, so keeping
marketing
simple, creative and cost-efficient will be challenging.
Cost-effective use of marketing money is one of our keys to success. To reach
our
potential customers, a combination of marketing techniques will be utilized:
• Local media (radio is most effective in the Local area, followed by print
media).
Radio and newspaper advertising will include our core positioning message, and
the New
York-style pizza that we offer, in order to differentiate our service from the
competition.
• Sales literature. To drive sales initially, we will utilize a full colour catalogue
with
a different cover including the company logo and contact address. We have
developed a
price sheet to be enclosed with each catalogue. In addition, we will produce in-
house
flyers on an as-needed basis that will also serve to advertise special events and
sales
promotions. The flyers and catalogues will be distributed using traditional
methods such
as:
a)give-away m store,
b)enclose in order shipments,
c)hire distributors or personally hand out in the Local Industrial Park area,
e)distribute at local trade shows and other business events organized by the
local
Chamber of Commerce, and
f)attach business card and coupons.
Upon release of a new catalogue, we will need to check into the financial
feasibility of
utilizing direct mail for bulk distribution, Certainly, the main task will be to clearly
define
the message of our sales literature to make certain that we are selling the
company, rather
than the products and services.
•Direct mail
•Grand opening
•Industry specific trade shows and other local business events
•Internet marketing
•Word of mouth All marketing decisions with regard to specific media choices,
frequency, size and costs will be conducted on an ongoing basis with careful
consideration of results (generated returns).
The concept of preventing food wastage in the Re-Pizza, will be highly
propagated and
used in marketing campaigns.
Pricing Strategy
Our retail and corporate customers are especially sensitive to service value. As a
firm, we
must ensure that price and service are perceived to be a good value to our
customers.
High-quality pizza will be offered at a reasonable price, but the price will certainly
not
be the lowest in the area. In the limited-service restaurants industry, one
message rings
true: other competitors can always beat you on price.
Therefore, our pricing strategy will be competitive within the various product
range, but
will not rely on the selling price to overshadow other advantages of doing
business with
our company, such as a diverse line of high-quality pizza products, that are
readily
available, reasonably priced, and backed by service excellence and on-time
delivery. In
addition, we recognize that price flexibility is critical to our success. We are
prepared to
offer discounts and allowances, sales promotion prices, and to reduce the price
over
limited periods of time during the slow-sales hours, in order to increase our
operating
capacity usage, and reduce or eliminate idle capacity and subsequent losses.
Freight-out
costs will be accounted for in such a manner that delivery prices will not differ
from the
prices offered at the counter.
Sourcing Strategy
There are several manufacturers and suppliers of pizzeria equipment, food
supplies,
Ingredients, packing, and accessories for pizza preparation. The specific
restaurant
equipment vendors will be chosen soon, based on competitive bidding process.
All the
selected manufacturers would produce and supply high-quality, energy-efficient
kitchen
and restaurant equipment, or materials for pizza preparation and delivery, and
they
compete primarily on price. Maintaining low levels of inventory will help to
reduce the
cost of financing, handling and storage. However, too low inventory levels may
also
result in lost sales and unhappy customers. Therefore, we will strive to
implement the
just-in-time operating environment. This will be achieved by working closely with
our
suppliers to coordinate and schedule shipments so that goods and materials
arrive just at
the time they are needed.
Many of the selected suppliers have already committed to special deals for us,
such us
waiving their buy-in requirements, sales referrals, and discounts for early
payment. Other
discounts can be negotiated gradually, depending on the increasing quantity
purchased,
and customer loyalty. We need to focus on making sure our volume gives us
negotiating
strengths. We will purchase our inventory both from local wholesalers and direct
from
manufacturers. Because of our past work experience m purchasing materials
and
ingredients for pizza preparation, we have a vast number of supplier contacts
within the
Industry. Ultimately, these suppliers will help us to achieve lower cost-of-goods
and reach
our financial performance objectives.
Location and Facilities
The company's location would be very favourable, providing high visibility, high
traffic,
and a high flow of customers wishing to stop at our outlet. Accordingly, the rent
that was
accounted for in this plan is higher than in other areas of the city. The outlet will
be
located just minutes from downtown, which provides shopping, dining, and
entertainment. The outletwould be conveniently located, just three blocks from
Local
shopping mall.
Other advantages of the chosen location include:
•Plenty of parking, garages, and additional storage area available
•Excellent central location with easy access to major destinations, freeways and
other
transportation means
•Short commute to major employers in Local Area
•High flow of pedestrians
•A recent new commercial complex opening, just across the street, that will
attract many
potential customers to our immediate vicinity
•Strategically located on one of the busiest streets in downtown
•High profile area with easy access from all parts of town
•Proximity to the busmess community and the Local Business Industrial Park;
there are
more than five hundred businesses in the area
•Proximity to trendy, upscale restaurants and recreational facilities
•All utilities required for operating an outletwould be available
All these characteristics of the location are consistent with the firm's goal of
providing
excellent pizza and delivery services for the Local community. The restaurant will
utilize 1250 square feet. The market rent in this high-profile area is between
Rupees 200
and 1500 per square foot per month. We have estimated Rs. 50,000 monthly
rent
expense. As the company gams community recognition, and our Local market
would get
developed, further expansion to one or both of the neighbouring
shopping malls will be considered as a possible second stage capital
investment option.
Analysis
SWOT Analysis
The SWOT analysis provides us with an excellent opportunity to examine and
evaluate
the internal strengths and weaknesses of our firm. It also allows us to focus on
the external
opportunities presented by the busmess environment as well as potential
threats.
Strengths
Our firm has a valuable set of strengths that would help it to be successful.
These
strengths include:
a)Huge variety in the menu including Indian ethnic flavours
b)Prudence in menu specially with the Re-Pizza, with costs reduced to
some extent.
c)Promise for both enhanced taste and extra effort for environmental
concerns and
prevention of food wastage.
d)Excellent quality of pizza that is currently not available anywhere in the
nearby
area
e)State-of-the-art, energy-efficient pizza preparation equipment and
technology
f)clear vision of the market needs: knowing the customers needs, familiarity
with
the latest
technology
Weaknesses
We have identified some of our weaknesses:
a)Unproved product with the Re-pizza concept likely to backfire with its
low snob score.
b)limited operating capacity during peak sales
periods c) Late entry in competition.
Opportunities
These opportunities Include, but are not limited to:
a)fast growmg population in the area
b)a large segment of low-to-middle class population, and more than five
hundred
businesses in the area
c)No other specialized pizza take-out and delivery restaurant within a five-mile
radius from our chosen location
d)consumer behaviour changes due to the economic downturn, respectively
an
increased preference to buy affordable pizza instead of expensive meals
Threats
Threats that we as a firm should be aware of include:
a)slow recovery process of the economy from the current
crisis b)changes in the business environment that might
reduce our sales c)rising cost of commercial property
d)tight credit times, higher interest rate, and high inflation
rate
Chapter 9
Limitations
The major problem that I faced during my project was the limitation of time due
to which it
was not possible to include all the aspects of new idea development. Though I
have tried my
best to keep the report free from errors but few drawbacks may occur merely due
to time
limitations and lack of secondary sources of information.
References
Narayana, A.V. Lakshmi & Badar Islam, "Determinants of Consumer
Behavior", Global Consumer Today, vol 2/no.l, New Delhi, June 2001,
pp 18-23,
Bibliography
Khan & Jain, Financial Management, PHI, 2005
Nirmala Khandelwal, Accounting Procedures, Tata McGraw
Hills, 2006
Appendix
Add Questionnaire used in various surveys of customers or business
owners/kitchen staff
members. Here is just a sample of a random questionnaire.
QUESTIONNAIRE
I. Are you a brand loyal customer?
Yes
Which attributes did attract you to purchase branded products? Rank these attributes in order of
their importance to you.
Brand Name Transparent
PriceCleanliness
Easy Availability Others
What was the reason for the delay between the purchase decision and the actual purchase?
Financial constraints
Waiting for more innovative product
I Waiting for market response
What influenced you to buy the above stated brand(s) ?
Advertising Shop Display Word
ofmouth F ami1y/Friend'Relatives
Attractive packaging Any Other
Dealer
Influence ofBrand name on purchasing decision
Agree Disagree
Strongly Agree Strongly disagree
[Link] of Quality on Purclmse Decision Agree Disagree
Strongly Agree Strongly disagree
[Link] of Price on Purchase Decision
Agree I Disagree