William Allen

Seth Baylor

Andrea Buescher

Christie Clark

Table of Contents

1. Executive Summary...... Page 3

2. Company Descriptions and Organization...... Page 4

3. Strategic Focus...... Page 5

4. Situational Analysis...... Pages 6-7

5. Market-Product Focus...... Page 8-9

6. Promotions Opportunity Analysis...... Page 10-11

7. Product Focus...... Page 12-14

8. Financial Data and Projections...... Page 15

9. Advertisements...... Page 16

10. Research Findings...... Page 17-18

1. Executive Summary

Pizza Bagels is a new competitor in the frozen pizza industry. The company has defined their target market as consumers under the age of 25 years old. Specifically, Pizza Bagels will be marketing to children and college students. We chose to target this group because they represent a large and lucrative portion of frozen pizza product consumers. Our product is designed to be relatively inexpensive, quickly prepared, and extremely convenient so it is perfect for children and college students. We intend to implement an advertising campaign including television ads and direct mailing with coupons. The marketing plan focuses on developing the Pizza Bagel line and using promotions such as in-store displays, contests, and free samples. We have defined Pizza Bagel’s main competitors to be Totino’s Party Pizzas and Pizza Rolls, Heinz Bagel Bites, Nestle’s Hot Pockets, and, more generally, all frozen pizza products.

Marketing Plan

The marketing team recognizes the current economic crisis. We plan to issue a healthy perspective on the current situation. Many families are beginning to cut back on expenses especially when it comes to eating out. We realize these families need to save money and at the same time hope to establish healthier buying habits. Since our target market includes children, we are optimistic that our product will decrease child obesity rates. Even though our product has more calories, it is more satisfying than eating several small calorie snacks. Statistics have found that a single food item helps with weight loss versus eating several meals a day (citation probably needed). We plan to make Pizza Bagels a household name. Our production advantages will provide a significant stepping-stone in that direction.
2. Company Description and Organization

Italiamerica is a local start-up company operating out of Evansville, Indiana. Since the product is brand new, there is a lot of work to be done so the company has hired us as a consulting firm to help them market their product. The marketing team has decided on the name Pizza Bagels in order to give the consumer a clear idea of what the product is since it is brand new to the market. The brand will have a differentiated variety of products to appeal to consumers’ differing tastes.

3. Strategic Focus

Italiamerica’s strategic focus is tri-fold, consisting of a mission, goals, and competitive advantage.

Mission

Our mission is to satisfy our customers with a great-tasting, convenient, and unique pizza snack.

Goals

To produce a quality product with healthy ingredients
To satisfy the tastes of young-minded consumers
To become a profitable competitor in the frozen pizza industry
To create a recognizable brand name
To lead the industry in innovation
To operate with a socially responsible attitude

Competitive Advantage

Italiamerica’s Pizza Bagels products will offer a new way to enjoy pizza at a competitive price. The products will be diverse and convenient to meet our target markets’ needs.

4. Situational Analysis

SWOT Analysis

We have thoroughly evaluated the industry they are competing in and the company itself in order to produce an accurate SWOT Analysis.

Strengths

New approach to pizza market
Wide variety of toppings to satisfy our target’s needs
Our bagel offers a healthier alternative to pizza crust

Weaknesses

Unknown company with no credibility or brand loyalty
Other companies are already considered the staple brands of the industry
Higher production costs
Can’t afford to buy ingredients in bulk like our larger competitors

Opportunities

Value gap in the frozen pizza industry
Offer environmentally-friendly packaging
Create a kids’ activity pack to include with each product
Economy is weakening
Consumers are looking to spend less and may be looking to alternatives to existing name brand products

Threats

Competitors
Totino’s Party Pizzas and Pizza Rolls
Heinz Bagel Bites
Nestle’s Hot Pockets
All other frozen pizza producers
Substitutes for pizza
Health-conscious trend may deter consumers from all sorts of pizza products

5. Market-Product Focus

This section goes into detail about the marketing and product objectives, target markets, and points of difference for Italiamerica’s Pizza Bagels products.

Marketing and Product Objectives

The main marketing objective is to create awareness of this brand new product. Since there are so many frozen pizza products on the market today, Italiamerica must make sure their target market is aware of their product. Customers will not try a product if they are not aware of it, so this is a crucial step. Once the awareness is created, Italiamerica needs to continue to make their logo and product prominent. After Pizza Bagels makes their product prominent, they will strive to create brand loyalty.

The objective of the Pizza Bagels product is to give customers an alternative to the frozen pizza products currently offered. The Pizza Bagels product is intended to be more convenient, more satisfying, and healthier.

Target Markets

The target market for Pizza Bagels is defined as consumers under the age of 25. In general, Italiamerica would like to target their Pizza Bagels products towards college students and children. Since the Pizza Bagels product is meant to be quick, convenient, and inexpensive, it fits in perfectly with the values of this target market. These consumers do not have a high discretionary income and are not looking for anything too fancy. The Pizza Bagels product fits in perfectly.

Points of Difference

Italiamerica’s Pizza Bagels takes pride in its points of difference, including the following:

Wide variety of toppings
Macaroni & Cheese, Cheeseburger, Meatball, Philly Cheesesteak
Possibly expand into a line of breakfast products
Possibly expand into a line of dessert products
Full-size bagel
Unlike any of our competitors
Healthier
Fresh ingredients and bagel foundation

6. Promotions Opportunity Analysis

We have done a thorough analysis of the market and we have identified several opportunities to expand the business. We have designed our Promotional Strategy in such a way that it takes advantage of most of these opportunities.

Below is an explanation of how we have taken advantage of the opportunities:

Value gap in the frozen pizza industry

Italiamerica has designed a new product to satisfy the needs of its target market. The target market needs a food that is convenient and great-tasting, and Pizza Bagels satisfies that need. The Pizza Bagels products also come in a variety of toppings to satisfy as many people as possible. Our promotions are going to give potential customers a chance to sample the product to see for themselves that this product meets their needs.

Offer environmentally-friendly packaging

Today, consumers and corporations are more concerned with the environment and their “footprint” than ever. Without a sense of social responsibility, no company can survive. Because of this trend, Pizza Bagels has taken steps to use as many organic products as possible. They also use recyclable materials in their packaging, which we plan to promote in the advertisement.

Create a kids’ activity pack to include with each product

The Pizza Bagels product is going to be marketed partly towards children, so a huge opportunity for Italiamerica to attract kids is to include an activity pack. This activity pack will engage the children and give Pizza Bagels an added benefit. The pack can include trivia, puzzles, and other games and toys.

Economy is weakening

Many companies are under added stress due to the poor state of the economy, but Italiamerica should view this as an opportunity. Their Pizza Bagels product is ideal for consumers who are looking to spend less money and may be looking for alternatives to existing name brand products.

7. Product Focus

The product is a full-sized whole grain bagel with pizza toppings called Pizza Bagels.

Brand and Label

The brand of this product is Pizza Bagels and the logo will illustrate the brand name. The logo is pleasing to the eye and representative of the product inside the box. Hopefully in the future, when consumers hear the name Pizza Bagels our logo will come to mind. The label should include cooking instructions as well as ingredients. The packaging should comply with all FDA regulations. Since the product is targeted towards a younger age group, we may include puzzles or trivia on the box as well.

Positioning

It is important for Italiamerica to understand where consumers perceive its position in the market. A great way to determine the positioning is by taking a survey and interpreting the results into a perceptual map. We created and distributed a survey to fourteen individuals ranging from age 16 to 37 and the results are shown below.

Price Strategy

Since our product is new and our production costs are higher than our competitors, we cannot afford to offer a lower price than the competition. We could consider selling at a slightly higher price, but that may deter people from trying our product. A higher price leads to a higher risk for a first-time purchase. A higher price also leads to a higher profit for the company, though. Based on this, we have chosen to price our product slightly higher than our competitors but to advertise that our product is more satisfying than the other frozen pizza products.

Promotional Strategy

We have thought of several ways to promote our new product. The promotional strategies we will implement are directly tailored towards the target market in order to maximize their effectiveness.

Promotional:

Set up sample tables in grocery stores
Offer samples to college clubs and organizations
Give coupons to apartment complexes to pass out to college-age residents
Create a contest for kids to win a Pizza Bagels party for their class
Offer samples to Sunday School groups
Offer samples to Daycare Providers