Eagle Boys Pizza: A Strategic Marketing Plan for Product Launch

This marketing plan details Eagle Boys Pizza's strategy for launching a new bacon and cheese sandwich product line to diversify its menu and attract new customers. The plan includes a PEST analysis, situational analysis (SWOT), market analysis focusing on segmentation, targeting, and positioning, and identifies key competitors such as Pizza Hut and Dominos. Objectives include expanding the customer base and creating employment opportunities. Strategies involve thorough market research, unique product packaging, and online advertising. Financial forecasts, including break-even analysis, profit and loss projections, and cash flow statements, are presented. The company aims to target teenagers, college students, and middle-class families, positioning the new product as high-quality and affordable. Funding will be sourced from the company owners and loans from Commonwealth Bank of Australia and ANZ Bank. This detailed plan aims to ensure a successful product launch and improved market presence for Eagle Boys Pizza. Desklib offers similar solved assignments for students.

Running head: MARKETING PLAN
Marketing Plan
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................3
External environment analysis.........................................................................................................3
PEST analysis..............................................................................................................................3
Political....................................................................................................................................3
Economic.................................................................................................................................4
Social.......................................................................................................................................4
Technological..........................................................................................................................4
Situational analysis..........................................................................................................................5
Strengths......................................................................................................................................5
Weaknesses..................................................................................................................................5
Opportunities...............................................................................................................................5
Threats.........................................................................................................................................6
Identify the opportunity...................................................................................................................6
Market analysis................................................................................................................................7
Segmentation...............................................................................................................................7
Targeting......................................................................................................................................7
Positioning...................................................................................................................................8
Competitors..................................................................................................................................8
Objectives and strategies.................................................................................................................8

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Three year forecasts.........................................................................................................................9
Summary statement.....................................................................................................................9
Projected Break-even analysis...................................................................................................10
Projected Profit and Loss Account............................................................................................10
Projected Cash Flow statements................................................................................................11
Balance Sheet projections..........................................................................................................12
Measurement of product performance...........................................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15

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Introduction
Eagle Boys Pizza is an Australian company that specializes mostly in the American-
Italian cuisine and emphasizes on producing delicious pizzas for the customers. The company
was founded by Tom Potter in the year 1987 in Albury that is situated in New South Wales. The
headquarters of the company is located in Annerley that is situated in Queensland. The company
was bought over by a group of venture capital that is based in Queensland in the year 2007 and
was the leading company with more than 340 stores in all over Australia. By the end of 2014, the
number of stores for the company reduced drastically and only 170 were in production. The
company was merged with Pizza Hut in 2016 and has been in operation since then. The company
is the fourth largest pizza store in Australia and has a market share of about 10 percent (Lamb et
al., 2017).
External environment analysis
PEST analysis
Political
These issues are inclusive of the rules and regulations that are present within the judicial
system that affects the business in a number of ways. The company does not face any political
factors in the Australian market after it has merged with Pizza Hut due to the low rate of
competition that is present in the market. The company however needs to adhere to the policies
listed under business employment, taxation and pollution policies that are present within the
country (Ho, 2014).

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Economic
The economy of the country is in a stable position, which means that there is a rise in the
Gross Domestic Product (GDP) and the per capita income of the consumers as well. This means
that the consumers are willing to spend more on availing the facilities that are issued y the
companies. This has resulted in earning better profits for most of the companies. The rate of
inflation within the country is also low that has affected the customers in a positive manner
(Grant et al., 2014).
Social
Most of the Australian consumers are influenced by the western culture that is prevalent
in America. This has resulted in a higher concentration of money in the hands of the upper,
middle and the lower classes as well. This enables then in spending more than their capacity so
that they can enjoy the luxuries present within the country. Most of the organizations that are
operating within the country value the religion, beliefs and the traditional values of the country
so that it can attract the local people (Ho, 2014).
Technological
The advancement in the level of technologies has resulted in increasing the
manufacturing of the products at the same time reducing the cost of production. The rise in the
technological advancements has resulted in providing the services at an efficient manner so that
the new products can be advertised in the market in a better manner. The use of Management
Information System (MIS) has resulted in collecting the information of the customers and storing
it so that it can help the company in manufacturing new products that will meet the needs and
preferences of the customers in an efficient manner (Saha & Zhang, 2013).

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Situational analysis
Strengths
The major strength of the company is that they have a wider network in Australia and has
around more than 250 stores, which makes them the highest number of stores within the country.
The company makes sure that they deliver the products at a faster rate to its customers so that
they can be satisfied with the product. The company offers a customized ambience to the local
people so that they can enjoy their meals while sitting within the restaurant (Hair & Lukas,
2014). Another major strength of the company is that they feel connected with the Australian
people, as the company is local and has the ability to measure the level of satisfaction within the
customers. They are also involved in the community services so that they can connect with the
local people in an easy manner. The company is growing at a faster rate when compared to the
other food joints that are present in the country. They also offer a wide variety of menu for the
customers to choose so that it can help them in satisfying their hunger (Grant et al., 2014).
Weaknesses
The company offers variety but mainly concentrates on pizzas, as the varieties are all
connected with pizzas. Most of the people may consider it to be a brand of lower quality when
compared with the American brands, since the company has not been accepted on a global scale.
The competitors of the company also offer the same products, which makes it difficult for the
people to differentiate with the other brands (Rutsaert et al., 2014).
Opportunities
The company can expand to a greater extent due to the geographical expansion that the
country is experiencing. The company is not being able to establish themselves in other markets

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and only has the presence in Japan and India. They need to expand on a global scale so that it can
be easy for the customers to associate themselves with the brand. the company can introduce
more number of varieties in the market since it is a local brand by gaining feedbacks from the
customers so that it can help them in increasing their rate of profits (Grant, 2016).
Threats
Competitors like Dominos Pizza has more number of stores in the market that Eagleboys,
which helps them in gaining a competitive advantage in the market over the company. Most of
the consumers are shifting their food habits that are healthier so that they can remain fit. This
trend will lead to a decrease in the sale of the company thus affecting the profits as well. This
type of market is fragmented to a greater scale, which offers constant threats of gaining new
entry in the market by other companies. This may lead to a fall in the profits for the company as
well due to the market attraction that the new companies will get from the customers (Liu, Wang
& Wilkinson, 2016).
Identify the opportunity
The company will be launching a sandwich that will be made with bacon and cheese so
that they can diversify their products from the pizzas. The product will be launched with four
variants. The first one would be the normal bacon and cheese sandwich, which will be priced at
$3 AUD, and the sandwich will be ordered along with a bottle of coke that will be priced at $5
AUD. The other two variants of the product will be that the sandwich can be ordered with a
bottle of coke and a choice of waffle that will be priced at $7 AUD and the choice of customers
regarding the vegetables that can be put in the sandwich along with a bottle of coke and waffle
will be priced at $8 AUD. The expected sale of the first variant has been calculated at 5,500 units

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where as the second variant has been expected to sell 10,000 units. The third and fourth variant
will sell 11,500 and 7,500 units respectively.
Market analysis
Segmentation
The company will segment its market with respect to the demographic, behavioral and
the psychographic factors. The company will mainly try to attract the customers who are
between the age group of 14-30 years. Apart from this particular age group, consumers who
belong to the other age groups may also be interested in the product, as the products are designed
for customers of all age groups (Heasman & Lang, 2015). Mostly, the teenage and the youth
customers will be interested in the products, as they are likely to be influenced by the new
variants that are being provided by the company. The company will also try to attract the lower
middle class, upper middle class and the upper class people, as they will have the capacity to
spend on these products because they belong to the socio-economic class of people within the
society. The company will gain better profits due to the loyal base of customers that they have
along with the new customers who will come to the restaurant to try the new product (Morley et
al., 2013).
Targeting
The company will target the customers who are teenagers and college student, as the
price of the food is less and can fulfill their hunger as well. They will mainly try to target the
upper middle class and middle class families that are present within the society, as these
customers are more attracted towards the product that is being offered by the restaurant (King et
al., 2013).

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Positioning
The company positions itself in the range of high quality food products that are offered at
a lower rate. This helps the company in attracting a majority of customers toward the food
product, which will help in increasing the sale of the items in the market. Targeting the
customers who belong to the upper middle class will help in increasing the profit of the
company, as they will be interested in the product due to its cheap price and satisfying their
hunger as well (Jarillo, 2013).
Competitors
The competitors of Eagleboys Pizza are Pizza Hut and Dominos Pizza, as they have a
better market coverage in the Australian economy. These companies provide the same variety of
pizzas that are being produced by Eagleboys. These companies have a wide presence in the
international market that has led them to increase the sale of products in the Australian market
(Armstrong et al., 2015).
Objectives and strategies
The objective of the company in launching the new product in the market is that they
want to diversify their food menu so that it can result in attracting new customers towards the
restaurant. The launch of the new product will result in expanding the base of customers, which
were earlier untapped due to the same kind of product that was being offered by the company.
This has also resulted in creating employment opportunities in the market, as the development of
the new product requires additional man power (Baker, 2014).
The strategies taken up by the company is that they have researched the market in a better
manner so that it can help them in understanding the marketing dynamics for the product to be

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successful in the market. The uniqueness of the product has helped the company in achieving
better return on the investment that has been done by them (Boone & Kurtz, 2013). The start-up
cost of the product will be borne by the owners of the company who will contribute $70,000
AUD and the rest of the amount will be taken up from the rest will be taken up from
Commonwealth Bank of Australia and ANZ Bank. The amount will be $45,000 and $30,000
AUD respectively at an annual rate of interest of 4 percent. The direct labor and the salaries of
the employees for the new product will be 29 and 25 percent respectively.
The product will be packaged in a unique manner so that it can grab the attention of the
customers and the nutritional value of the product will also be mentioned in the product. The
website of the company will advertise the new product so that the customers will be aware of the
product being available in the food joint (Strauss, 2016). The product will be available in all the
branches of the company due to an effective system of distribution that will be taken up by the
company. This will result in increasing the effectiveness of the company in making the products
available in all the Eagleboys Pizza outlets. The company will also hire a dedicated team of
experts who will specialize in making this product with the help of the new machinery that has
been purchased by the company. This will result in achieving the long-term goals of the
company in an eventual manner (Barney, 2014).
Three year forecasts
Summary statement
Summary Statement
Sources of Capital
Owners' and Other Investments
$
70,000
Bank Loans

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75,000
Other Loans -
Total Source of Funds
$
145,000
Startup Expenses
Bldgs / Real Estate
$
-
Leasehold Improvements -
Capital Equipment 70,000
Location / Admin Expenses -
Opening Inventory -
Advertising / Promo Expenses 45,000
Other Expenses -
Total Startup Expenses
$
115,000
Projected Break-even analysis
Net income (loss)
-
$116,102.98 $46,648.83 $49,456.31 $55,086.63
Cumulative income -$69,454.14 -$19,997.83 $35,088.80
Positive Cash Flow? FALSE FALSE TRUE
Undiscounted breakeven year 3 years
Actual break even period 2.36 years
The company will achieve its breakeven at the end of 3 years and specifically after 2
years and 3 months.
Projected Profit and Loss Account
Year 1 Year 2 Year 3
Revenue
Gross revenue $207,000 $213,210 $226,003
Cost of goods sold $78,660 $80,233 $83,443
Gross margin $128,340 $132,977 $142,560

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Other revenue [source] $0 $0 $0
Interest income $0 $0 $0
Total revenue $128,340 $132,977 $142,560
Operating expenses
Sales and marketing $45,000 $45,900 $47,736
Payroll and payroll taxes $0 $0 $0
Depreciation $14,000 $14,280 $14,560
Maintenance, repair, and overhaul $0 $0 $0
Total operating expenses $59,000 $60,180 $62,296
Operating income $69,340 $72,797 $80,264
Interest expense on long-term debt $2,699 $2,145 $1,569
Operating income before other items $66,641 $70,652 $78,695
Loss (gain) on sale of assets $0 $0 $0
Other unusual expenses (income) $0 $0 $0
Earnings before taxes $66,641 $70,652 $78,695
Taxes on income 30% $19,992 $21,196 $23,609
Net income (loss) $46,649 $49,456 $55,087
Cumulative income $46,649 $96,105 $151,192
Projected Cash Flow statements
Year 1 Year 2 Year 3
Operating activities
Net income $46,649 $49,456 $55,087
Depreciation $14,000 $14,280 $14,560
Accounts receivable $0 $0 $0
Inventories ($1,242) ($2,559) ($4,068)
Accounts payable $0 $0 $0
Amortization 0 0 $0
Other liabilities 0 0 $0
Other operating cash flow items 0 0 $0
Total operating activities $59,407 $61,178 $65,579
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 0 0 0
Sale of fixed assets ($19,992) ($21,196) ($23,609)
Other investing cash flow items 0 0 0
Total investing activities ($19,992) ($21,196) ($23,609)

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Financing activities
Long-term debt/financing ($13,847) ($14,401) ($14,977)
Preferred stock 0 0 0
Total cash dividends paid 0 0 0
Common stock 0 0 0
Other financing cash flow items 0 0 0
Total financing activities ($13,847) ($14,401) ($14,977)
Cumulative cash flow $25,567 $25,581 $26,993
Beginning cash balance $30,000 $55,567 $81,149
Ending cash balance $55,567 $81,149 $108,142
Balance Sheet projections
Assets Initial balance Year 1 Year 2 Year 3
Cash and short-term investments $30,000 $55,567 $81,149 $108,142
Accounts receivable $0 $0 $0 $0
Total inventory $41,400.00
$42,642.0
0
$45,200.5
2
$49,268.5
7
Prepaid expenses 0 0 0 0
Deferred income tax 0 0 0 0
Other current assets 0 0 0 0
Total current assets $71,400 $98,209 $126,349 $157,410
Buildings $0 $0 $0 $0
Land 0 0 0 0
Capital improvements
$
- 0 0 0
Machinery and equipment
$
70,000 70,000 70,000 70,000
Less: Accumulated depreciation expense 0 14,000 28,280 42,840
Net property/equipment $70,000 $56,000 $41,720 $27,160
Goodwill $3,600 $0 $0
Deferred income tax 0 0 0 0
Long-term investments 0 0 0 0
Deposits 0 0 0 0
Other long-term assets 0 0 0 0
Total assets $145,000 $154,209 $168,069 $184,570
Liabilities Initial balance Year 1 Year 2 Year 3
Accounts payable $0 $0 $0 $0
Accrued expenses 0 0 0 0
Notes payable/short-term debt 0 0 0 0
Capital leases 0 0 0 0
Other current liabilities 23,056 51,317 82,795

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Total current liabilities $0 $23,056 $51,317 $82,795
Long-term debt from loan payment
calculator
75,00
0 $61,153 $46,752 $31,775
Other long-term debt $0 $0 $0 $0
Total debt $75,000 $84,209 $98,069 $114,570
Other liabilities 0 0 0 0
Total liabilities $75,000 $84,209 $98,069 $114,570
Equit
y Initial balance Year 1 Year 2 Year 3
Owner's equity (common)
$
70,000 $70,000 $70,000 $70,000
Paid-in capital 0 0 0 0
Preferred equity 0 0 0 0
Retained earnings 0 0 0 0
Total equity $70,000 $70,000 $70,000 $70,000
Total liabilities and equity $145,000 $154,209 $168,069 $184,570
Measurement of product performance
The company needs to keep a track of the volume of sales that the product is making in
the market so that they can understand the attractiveness that the product has among the
customers. This will help the company in understanding the dynamics that are present in the
market based on which they may continue the product within the market by offering other
variants as well (Jarillo, 2013).
The profit of the company needs to be taken in to account so that it can result in
understanding the attractiveness of the product in the market. This will enable the company in
understanding the increase in their rate of profit before and after the product has been introduced
by them in the market (Armstrong et al., 2015).

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There will be an increase in the base of customers as well due to the introduction of the
new product in the market. The repetition of the customers in the restaurant needs to be analyzed
so that the favorability of the new product can be understood in the market. The repetition of the
customers in the food joint will show that the product is being accepted in the market, which
needs to be capitalized y the company and other new variants also needs to be launched in the
market so that it can attract the customers (Baker, 2014).
Conclusion
Thus it can be concluded that the new product can be able to increase the market share of
Eagleboys Pizza in the Australian market, as the new product will be able to attract the
customers. The financial projections have showed that the company would be able to establish
themselves in the market in a strong manner by introducing the bacon and cheese sandwich in
the market. The pizza outlets that are present in Australia does not provide any food items like
this, which will help in gaining a competitive advantage in the market as well for the company.

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