Comprehensive Marketing Plan for Napoli Multi-Fuelled Pizza Oven

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Added on  2020/05/16

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This report presents a comprehensive marketing plan designed for the Napoli multi-fuelled pizza oven, a startup based in Minneapolis. The plan begins with an executive summary, outlining the product's features, including its multi-fuel capabilities and portability. It then provides a detailed situation analysis, utilizing both micro and macro environmental analysis tools, including SWOT and PESTEL analyses, to identify strengths, weaknesses, opportunities, and threats. The report identifies the lack of financial analysts as a key problem and proposes solutions. Part 2 of the report outlines specific marketing objectives, defines the target customer segment, and designs a comprehensive marketing mix. The report concludes with a summary of findings and recommendations for the Napoli pizza oven's marketing strategy.
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Running head: INTRODUCTION TO MARKETING
Introduction to marketing
Name of the student
University name
Author’s note
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INTRODUCTION TO MARKETING
Executive summary
The current assignment focuses on designing an effective marketing plan for a
Minneapolis based Napoli multi-fuelled pizza oven. The product was a much awaited
replacement to the traditional wooden ovens. One of the most attractive features of the
product was that it could be operated through a number of fuel options. Additionally, the
portable and the small size of the products ensure that it could be operated almost anywhere
and everywhere. One of the USPs of the product was that it could be used for cooking wide
variety of dishes including the most coveted Neapolitan style pizza, which requires a very
high temperature and therefore could not be achieved with the traditional pizza ovens based
indoor. Though, the product was gradually catching up with the food lovers it possessed a
huge number of marketing challenges. Some of these are the lack of effective financial
analysts, which hindered effective future planning of the business related to expansions and
gaining sufficient profitability ratios.
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INTRODUCTION TO MARKETING
Table of Contents
Background:...............................................................................................................................3
Part 1......................................................................................................................................3
Situation analysis using micro and macro environmental analysis tools...................................3
Deduction of the problem situation from the situation analysis................................................7
Part 2......................................................................................................................................8
Marketing objectives for the company.......................................................................................8
Defining the target customer segment........................................................................................9
Designing a marketing mix......................................................................................................10
Conclusion................................................................................................................................12
References............................................................................................................................13
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INTRODUCTION TO MARKETING
Background:
In the current assignment, a marketing plan had been designed for the Napoli multi-
fuelled pizza oven. It is a start-up venture conceived by Eric and his partners based in the
Minneapolis. One could easily fit in the Napoli multi-fuelled pizza in their backyard and bake
pizzas as well as a number of other cuisines or dishes. The cooking apparatus here is fuelled
by gas, charcoal or wood giving a variety of options for cooking food. The USP of the
apparatus is that it can even cook a Neapolitan style pizza at a temperature as high as 900
degrees in 90 secs (napolioven.com 2018). The apparatus allows you to convert the backyard
of your home into a makeshift kitchen easily where you can cook on one side as well as host
parties. They were a welcoming change to the typical firewood ovens which are both
expensive as well as take up a lot of space. Additionally, the apparatus has been designed in
manner so that it offers you a variety of heating options compared to some of its competitors
which could only be operated with cooking gas. Additionally, the apparatus would start from
a minimum price of $ 249 which could make it easily affordable.
However, the product is still in its initial stage and had to undergo a number of
challenges for achieving maximum sales. Some of the challenges faced by the product in this
regard were the lack of sufficient financial analyst for designing an effective future marketing
strategy. In this assignment, we have tried to develop a marketing plan for the concerned
start-up.
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INTRODUCTION TO MARKETING
Part 1
Situation analysis using micro and macro environmental analysis tools
A business firm operates within two different types of environment that is a
microenvironment and the macro environment. In this respect, the different components
affect the business venture differently. The microenvironment consists of customers,
producers, marketing intermediaries and the company itself. Customer targeting forms a
specific component of a start-up venture as the purchases made by the customers often
govern the survival of the brand within the competitive market. As commented by
Jarzabkowski and Kaplan (2015), advertising and sufficient brand promotion often forms a
critical component of achieving maximum amount of sales. The producers can play a very
constructive role in the marketing of a product by pitching the right prices for the products.
The marketing intermediaries comprise of the distributors, who play a significant role in
making the goods available to the target customer group. Therefore, for understanding the
micro environmental factors affecting the growth in business of the Napoli multi-fuelled
pizza oven can be described with the help of a SWOT analysis.
Strength Weakness
Portable and easy to handle
Can cook a wide variety of dishes
Can be used with a wide range of
heating options (napolioven.com 2018)
Lack of financial analysts to plan the
future marketing plans
Lack of sufficient funds for a startup
venture might impact upon its growth
and place too much dependence upon its
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INTRODUCTION TO MARKETING
stakeholders.
Opportunities Threats
Cheap price of the oven along with a
number of heating options can provide
it with a competitive advantage
the apparatus is fun and addictive to
use offering tasty charcoal cooked
food making it worth the purchase of
the traditional wood oven
the emergence of similar brands in the
market
lack of effective financial planning can
result in the financial losses being
ignored (napolioven.com 2018)
Table 1: SWOT analysis
(Source: Author)
The SWOT analysis conducted over here help in analysing the micro environmental
factors which influence the operations and management of the Napoli multi-fuelled pizza
oven. Since the Napoli Multi-fuelled pizza is a start-up venture it lacks a number of strength
factors which could provide it with a competitive advantage. The lack of expert financial
planners could challenge the long-term growth of the business (Groesser and Jovy 2016). For
a start-up, the lack of sufficient funds can also hamper successful pitching of the brand in the
competitive market. One of the problems which could be faced over here is recurring
sufficient profits from the sale of the products. As a start-up company the Napoli medium
fuelled pizza needs to increase its per capita rate of production so that it can reach out to
maximum number of customers. However, the lack of effective financial planning can
hamper the sales target being achieved.
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Additionally, an external market analysis can be conducted for the Napoli multi-felled
pizza oven with the help of a PESTEL analysis. The PESTEL here can be broken down into a
number of components such as political, economic, social, technological, environmental and
legal factors.
Attributes Effect on the brand/product
Political the effect of recession can make people cut down spending on
unnecessary services (Kleppe and Mossberg 2015)
changes in trade policies can affect the per capita sale of the
products and services
Economic the lower rates of the product can lead to negative revenue
generation (Keller 2017)
the growth in the rate of disposable income can lead to increase in
the purchase of the products
Social changing attitude towards health can develop a certain amount of
doubt in the population regarding the purchase of the oven
growing consumer activism can also challenge the growth of the
product by questioning the health benefits of a fast food product
(Silva et al. 2017)
Technological the insulating coating around the ceiling and the walls prevent the
risk of any burn or injury
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INTRODUCTION TO MARKETING
rapid changes in automation and technology can soon cause the
product design to become outdated
Environmental the burning of charcoal wood as a fuel can be seen as a negative
move by the environmental activists
Legal The lack of financial analysts can result in unnecessary economic
burdens on the company which could invite legal actions (Kuratko
2016).
Table 2: PESTLE analysis
(Source: Author)
Deduction of the problem situation from the situation analysis
The problem situation of the Napoli multi-fuelled pizza oven can be deduced from a
number of environmental analyses. The reflection through the various parameters helps in
understanding the loophole associated with the sale of the product. One of the cheap
problems identified from the SWOT and PESTEL analysis of the firm is the lack sufficient
financial analysts. As argued by Abdelkafi et al. (2016), less effective financial planning can
lead to negative revenue generation from the sale of the products. Additionally, failure in
reflecting upon the losses incurred by the company can challenge the existence of the
products in the global market. The lack of financial analysts leads to ineffective financial
management (Hartmann et al. 2016). The financial management enables a company to obtain
sufficient capital for growth along with maximizing the income potential of the start-up
venture (Vogel 2017). In this respect, a number of guidelines could be followed by the Napoli
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INTRODUCTION TO MARKETING
multi-fuelled pizza for enhancing the financial returns. Some of these are balancing the
management skills and abilities with the increasing demand for the product, which could help
in gathering sufficient revenue from the sales of the product. For example, balancing the debt
position of the business with equity and additional equity can help in managing the future
debts (Wheeler 2017). In this respect, if the business has an equity position of less than 30
percent, a certain amount of money will have to inject as equity to finance additional debt
(Reinhardt et al. 2017).
There are several ways of balancing opposing forces that affect the finances of
business. One of the ways by which it could be done is financial management concept. Under
this concept, the profits earned by the company are reinvested into the business. Additionally,
a number a number of business models could be applied over here for maximization of the
profits from the per capita sales of the product. As commented by Rana et al. (2017), risk
planning firms and effective part of effective financial management. This can further help in
coping up with the lack of effective financial analysis. One of the financial planning systems
which could be used over here is the CAC LTV framework, which helps in monetizing the
customer at significantly high rates than the cost of acquisition. The CAC refers to the cost of
acquiring a customer which should be less than the TLV, which refers to the lifetime value of
acquiring a customer (Dai et al. 2016). The CAC score can be obtained by dividing the entire
cost of sales and marketing with the number of customers dealt with (Kleppe and Mossberg
2015). The LTV could be measured from the gross margin associated with a customer. It
consists of a number of factors such as installation, support and operational expenses; a
higher LTV refers to highly satisfied customers. Additionally, improving the after sale
support services can help in coping up with the loopholes associated with financial analysis
(Rossiter 2014). An effective after sales support services means that thee customers keep on
coming back along with building a loyal customer base (Reinhardt et al. 2017). This gives the
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INTRODUCTION TO MARKETING
company a competitive advantage in the global market and would help in managing effective
finances for the start-up venture.
Part 2
Marketing objectives for the company
The marketing objective refers to the goals fixed by the company for the promotion of
its products and services to potential clients. They help in developing a separate identity for
the business within the global and competitive market. In this respect, the Napoli multi-
fuelled pizza oven can lay down a number of marketing objectives. Some of these are –
increasing the sales of the product, improve the product awareness, brand management. The
increase in sales needs to exceed the cost of marketing, the higher the returns on investment
the better are the chances of the survival of the firm (Paetz 2014). The product awareness is
the important component of the promotional tactic. As commented by DiResta et al. (2015),
using the digital media for raising the awareness regarding the commodities and services can
help in increasing the investment in returns. Some of the sites which could be used by the
Napoli pizza oven are facebook, youtube, etc. they have successfully maintained a number of
blog posts over YouTube which could serve as effective product awareness campaigns.
Social media marketing can also help in educating the audiences regarding the method of
using the pizza oven, which may remove any apprehensions associated with the product
(DiResta et al. 2015). Additionally, brand management or building upon the brand value
associated with the product also helps in engaging a large number of customers. For example,
Nike got its brand associated with some of the famous people which further help in
expanding the customer base. Additionally, reaching out to the target customer base with the
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help of increasing the number of sales outlet can also help in maximization of the profits
(Paetz 2014).
Defining the target customer segment
The customer segmentation forms an important part of a marketing plan. This is done
by personalizing the products and services as per the requirements of the target customer
group. For the current marketing plan middle, aged foodies settled across various parts of the
world harbouring a strong love for Neapolitan styles pizza were made into the target
customer base. The reason why the Napoli pizza oven was made popular among the
population was the relatively high range of temperature the apparatus could offer. As cooking
a Neapolitan pizza requires temperature above or across 9000-degree Fahrenheit. Thus, such
as high temperature could not be reached indoors with the traditional ovens. However, the
insulated ceiling of the pizza oven makes the cooking at such high temperatures relatively
safe and easy (napolioven.com 2018). The oven is also portable and could be carried
anywhere by the foodies. Additionally, the multi-fuel aspect of the apparatus also makes it
easy to operate, increasing the product worth and value. The marketing gimmicks which were
chosen by the Napoli multi-fuelled pizza oven over here was promoting their product over
some of the most visited channels such as facebook and youtube.
Designing a marketing mix
A marketing mix model could be used for promotion of the product and reach the
target market. The marketing mix model could be divided into four important components
such as –product, place, price and promotion. A detailed analysis of the marketing mix has
been provided below:
Attributes Effect on the product marketing
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INTRODUCTION TO MARKETING
Product The compact, portable and options for using a number of
fuels makes the product a worthy purchase for the foodies
The high temperature offered by the product makes
cooking Neapolitan pizza easier
The customers can easily set up the product in the
backyard of their homes
The product is 7-10.5 inch which makes it easily adjustable
in small garden areas (napolioven.com 2018)
The oven could be used to cook a wide variety of dishes
Price The product is available across different offers and
different price ranges
It starts somewhere between $ 249 to 5600 dollars,
therefore there is something on the platter for everyone
(napolioven.com 2018)
Place The start-up is based in Minneapolis but Eric and his
partners ensure that they keep the delivery options open
across the world.
The products are put on display at local electronics and
Spencers which could generate sufficient customer
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