Comprehensive Market Analysis of Wood Fired Pizza at Farm, Duluth

This report provides a comprehensive market analysis of Wood Fired Pizza at Farm, a business located in Duluth, Minnesota, founded in 2017. It begins with a SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats, focusing on aspects like fresh ingredients and cleanliness. The report then conducts a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the business. Furthermore, the analysis includes research on the food and pizza industry, highlighting the effects of the COVID-19 pandemic and future growth prospects. The report concludes with an STP (Segmentation, Targeting, and Positioning) analysis, detailing market segmentation strategies based on demographics, psychographics, and lifestyle, along with targeting and positioning approaches to increase market share and attract the desired customer base.

Market Analyses

INTRODUCTION
A market analysis may be defined as the study of attractiveness and the dynamics of a
target market of a target market within a special industry. It is also known as documented
investigation that is used in drafting the planning activities, decision makings, expansion of
business enterprises and in many aspects of the company (Benney and Xu, 2017). This project
report covers macro and micro environmental factors, research segmentation and the target
market selection. The project report is on Wood fired pizza at farm located in Duluth, Minnesota.
It was founded by John Beaton and Emily Beaton in 2017, they have also participated in various
business courses and mentorship programmes. This project was funded by John and Emily with
an initial amount of $40000 that covers construction of the pizza oven, architectural fee,
marketing and business consulting. This report was chosen to analysis the Strength and
Weaknesses along with the PESTEL analysis.
TASK
SWOT analysis
It is considered as a method that is used to evaluate internal and external factors that
affect or influence the objective/goal of the organization. It is the method by which a company
can evaluate its capability to execute a plan or to achieve the key objective. SWOT analysis
enables a manager to assess all the factors that affects the performance as well as the barriers that
come across in attaining the goal (Lu and Weng, 2018). SWOT is categorized into two
Environment that is Internal and External. The Strengths and Weaknesses came under the head
of Internal and Opportunities & Threats are in External Environment.
STRENGTH
1. it hosts weekly pizza nights to the
customers throughout the growing
season and every pizza sold with the
ingredients that are freshly picked.
2. buy from the good local producer direct
to the farm.
WEAKNESSES
1. This report analyse the weakness of
Wood fired pizza at farm which
includes the cleanliness of the farm.
2. It does not creates a favourable
environment to the customers in rainy
season.
OPPORTUNITIES THREATS

1. Because of the larger scalability it gets
the produces and
2. It may take the advantage by offering
lower prices to the customers with
different taste.
1. The change in the customer's taste
becomes a very challenging threat to
the food industry.
2. There are various competitors that
provides same product with some
different features.
PESTEL Analysis
This Analysis may be defined as a strategic framework that is used to breakdown the
opportunities and risks of the external environment into Political, Economic, Social,
Technological, Environmental, and Legal factors. This analysis is used in drafting the Corporate
Strategic Planning and to assess the advantages as well as disadvantages of the organization. It is
the extension of PEST, as it includes additional assessment of both Environmental and Legal
factors that directly or indirectly impact the business in attaining the objectives of the
organization.
 Political Factors- It is actions/impact of political condition or government that affect the
business directly or indirectly. Government may impose corporation tax which will
impact on net profitability and stability of the company (Laudien and Daxböck, 2017). In
this project it allows the pizza at farm to expand its operations regionally as well as
internationally because there are various rules and regulations that helps in expansion of
the enterprise. It will help in gaining new customers which results in making high profits.
 Economic factors- It comprise of tax rates,inflation rates,policies,wages that indirectly
influence the investment value. It consist of all the economic factors which impact on the
consumer habits that affect the company's performance. These are beyond the company's
control either for a micro or macro business enterprise. This project consist of an
elevation in the cost of essentials because of the higher inflation rates. There are some
policies related to wages that are in favour of the workers which results in increasing the
investment value. Yet they cannot be controlled but some anticipation can be done in
order to eliminates the risk involved in the business operations.

 Social environment- It is the composition of social belief's, practices,demographics,
tastes, lifestyles and trends. It is of 3 types-Natural, Physical and Human environment.
Social environment is the composition of social belief's, practices,demographics, tastes,
lifestyles and trends. It consist of 3 types-Natural, Physical and Human environment. A
business have to operate in a multicultural society which makes quite complex because it
consist of various people having their unique values,belief and culture. operate in a
multicultural society which makes quite complex because it consist of various people
having their unique values,belief and culture. Having complexity leads this project in
maintaining their USP. Different people have different choices in taste and, needs some
specific food ingredient which sometimes becomes unavailable.
 Technological environment - This consist of external factors that impact on business
operations. Company have to change its strategy according to the technology. It includes
the advancement of technology,up-gradation so that the work can be done more
effectively and efficiently (Poole, 2017). As pizza at farm is a new model project so it
should adapt the new technology to minimise the operating cost. Up gradation in the
equipment helps in time saving but requires higher amount of investment.
 Environmental - Environmental factors are those external forces that have limited
control over the business but should be considered while drafting strategic planning. It
includes temperature,population scale,food preferences that causes asymmetry in
operating the business smoothly. It saves the electricity as the pizza is made by the wood
on the stove.
 Legal environment - Legal environmental factors consist of government taxes which
helps in promoting the economic growth and to protect the consumer from malpractices
or from the exploitation. It includes getting business license,tax procedures,customer
security and import/export (Sexton and Iskow, 2021). It ensures that all the functions that
are carried out in the food industry are according to the rules and regulations and with
proper legal formalities. Prior to the incorporation of any food unit, one must do all the
legal formalities that are considered as a mandatory part in commencement of a business.
RESEARCH

The analytical data of food and pizza industry shows a downfall by 0.9% in 2020-21 sue
to Covid-19 pandemic. Many pizza franchise are engage in giving promotional offer to the
customer in order to drive the sales. They also lowered their prices as compared to other. Many
restaurants have closed their outlets due to downfall in sales and ongoing its fixed cost. They
also provides the facility of home delivery in pandemic to cover up their cost. Due to Covid-19,
the data has shown an increment of 5.8% in home delivery service. The restaurants had prompted
their dine-in facility. In 2016-2021, there is a vast competition in this industry which leads in
constrained revenue of the pizza shop owners. It would be assumed that there would be 12.6%
growth in upcoming 5 years. New market likely to be setup in rural parts of Australia which will
help in generating higher revenue as well as in raising the food industry. New technological
aspects to be considered in upcoming years. In order to maintain the sustainability of the existing
pizza franchise, they should introduce new exotic flavours to the pizza. The analytical data of
pizza industry shows the market size of $4bn and it contributes a profit margin of 9.8% along
with providing employment to approx 38,151 people. The report suggests that 58% of traffic
come from the age group of 15-22. In the last three years, it was shown a 28% of the pizza
outlets have started the facility of home delivery which results in increasing the revenue by
14.8%.
STP
This model is used in creating marketing communication plans as it helps the marketers to
prioritize and personalized messages to deliver and engage with different audience. It acts as a
three step funnel that consist of market segmentation, market targeting and product positioning.
It focus on delivering the same and right type of message rather than scattergun approach.
 Segmentation – It is a process of dividing the target market in a approachable form as it
creates subsets of demographics, needs, priorities and some other psychological factors to
better understand the audience. There are several ways to segment the target audience,
some are given below:
1. Demographics – It is considered as the breakdown of any combination such as
gender, income, education, business or profession and household. Based on these
factors companies divides the market into specific segments. The product which
relates to the educational sector shall be categorized into education segment.

2. Psychographics – It is based on the emotions and personality, purchase choices
which includes lifestyles, hobbies, attitudes and leadership qualities. It explains
“why” your customer buys (Rossi and Fattoruso, 2017). Different people have
different hobbies, and according to these choices or taste preference, the market is
customised into segments.
There are various ways by which data can be gathered for the typical customers.
 Interviews – It helps in gathering the qualitative data to know about the customer's
tick. Having a small sample size of data may not reflect the accurate result of the
people whom the company is trying to target. It is a very time consuming process
along with high expense incurred in conducting an interview. The company can
obtain a direct and immediate feedback from the company but as the sample size
increases it becomes difficult to get accurate results.
 Surveys – It may be considered as a complex procedure as compare to interview and
can be harder to get insightful responses. It may be defined as the procedure of
collecting data from predetermined group of people with a purpose to obtain the
information and insights of various topics (Dehghani and Dangelico, 2017). They are
obtained either by offline method or online, as per the availability of platform.
 Customer data – Gathering of customer data and creating an insight of the
purchasing history helps in developing the products in accordance to the customer's
need. The data can be used only for the business purpose and companies cannot
obtain the data which is not relevant to them.
 Lifestyle – It refers to the hobbies, vacation, entertainment and non work time
pursuits. Some hobbies are well established and it becomes easier to target the
customers. Wood fired pizza focuses on the younger generation of the Duluth. By this
it will help the company in getting the crowd in their weekends.
 Belief and values – It refers to various religious and cultural values. New market
opportunity can be identified with demographics. Going a mile ahead, there can be
seen a change in language and tradition of people.
 Life stages – It may be referred as the chronological benchmarking of people's lives
at different stages. It target a particular group of people of a certain age group. In this
case of Wood fired pizza it targets the customer of having a range of 15-30 years.

2. Market Targeting – It refers to the breakdown of entire market into segments
and drafting the planning strategies according to each segment in order to increase
market share (Marshalla, 2017). Following are the essentials which are needed to
evaluate the potential and commercial attractiveness of each segment.
▪ Criteria size – The market should be large so that the segmentation can be
justified enough. It will become complex to segment if the market size is
small. It focus on the premium food industry and how it can make its pizza
unique as compared to its competitors (Ngo and Le, 2019).
▪ Difference – There must be measurable differences between the segments.
The wood fired pizza should introduce its speciality to the customers and
how it is different from the restaurant style of pizzas. It also serves the
uniqueness in serving its pizza in a very different styles to the customers.
It makes the difference as compared to its competitors by providing better
quality service along with unique farm dining experience.
▪ Accessible - Each segment should be accessible to the team and able to
receive the marketing message. The team should respond to the query
tickets of the customers and try to solve for the satisfaction of their
respective clients.
3. Product positioning – It is considered as the last essential of STP
Process as it states that where to position the product in order to reach a
wider community. There are several factors that help in gaining
competitive advantage,some of are defined below:
 Symbolic Positioning – It helps in enhancing the ego, enhancing
and self image of the customers. The Wood Fired Pizza helps in
creating a positive ego among its customers by giving a
environmental touch and a better dining experience in the farm.
 Functional Positioning - It involves the solving of customer's
problem by providing them with a solution. The product will get
advantage as it solves the problems of customers. It is a long term
process of positioning and the company should improve the
features of product according to the dynamic requirements of the

customers. It facilitates the service of open roof dining experience
of pizza along with nature touch.
 Experiential Positioning - It focus on the establishing a
emotional connection to the customer with the product or service
rendered by the company. By providing the pizza at the farm it
provides a different experience of eating food with a wooden
theme around and having environmental touch. It also provides its
unique service of serving pizza in wooden based plates that are
easily biodegradable.
The combination of all the three factors makes product positioning successful. It will help in
targeting your
CONCLUSION
From the above report it, was concluded that the wood fired pizza at farm is a unique idea
as compared to restaurant style. As it gives a different experience of having a good quality of
food and it uses the produces such as required vegetables in its farm only in an organic manner.
It focus on the age group of 15-30 years old. They are using Wood fire ovens that will help in
conserving the electricity and gives a unique taste to the pizza. PESTLE analysis is also
concluded in the above report, which includes some sort of general guidelines which have to be
followed and ensures that no harmful chemical is used in the farming of vegetables in the farm.
Apart from that, It should also take care of all the legal formalities which are required to be
accomplished to be fulfilled formulated by the Australian government. It should also bring
innovation to its product in order to sustain in the food industry for a long run and introduce new
flavours in order to bring a positive and favourable change in the industry.

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