TERM PROJECT

SEMINAR IN MENAGEMENT

LAUNCH

Of

“SAY CHEESE PIZZA”

I
SUBMITTED TO:

Prof. Abrahim Sani Mert

SUBMITTED BY:

MUHAMMAD SHAHZAIB KHAN

MBA -II
ANTALYA BILIM UNIVERSITY
ANTALYA TURKEY

II
 ACKNOWLEDGEMENT
As a matter of fact, people tend to forget those who are
behind their achievements and have stood for them whenever they have needed assistance. A
Malayan Proverb is “One can pay back the loan of Gold, but one dies forever in debt to those
who are kind”. Realizing the fact, I express my gratitude to those who have helped me
throughout in this Project. In fact, it will be right to say that without their co-operation this effort
may have ended up in disaster.

My gratitude will be meaningless if I’m not grateful to Allah for His kindness upon me. His
benevolence and blessings have made me capable. I’m whole-heartedly thankful to Him. I’m
very thankful to my project advisor Prof. Abrahim Sani Mert for offering me with every help
possible. His sincere cooperation has helped me to complete this project.

I’m also very thankful to the institution of which I have been a part. Its lecturers have been very
helpful and co-operative. I’m very thankful to them. I’m very thankful to all those who guided
me actively in completion of my project.

III
 Contents
EXECUTIVE SUMMARY ............................................................................................................ 1
MISSION ........................................................................................................................................ 1
KEYS TO SUCCESS ..................................................................................................................... 1
OBJECTIVES ................................................................................................................................. 2
MARKET CONDITION ................................................................................................................ 2
COMPANY SUMMARY ............................................................................................................... 2
SERVICES .................................................................................................................................. 2
RESEARCH PLAN ........................................................................................................................ 2
INSTRUMENTS......................................................................................................................... 3
SAMPLING PLAN ..................................................................................................................... 3
GATHERING INFORMATION ................................................................................................ 3
DEFINING THE POPULATION OF CONCERN: ............................................................... 3
MARGIN OF ERROR ............................................................................................................ 3
CONFIDENCE LEVEL.......................................................................................................... 3
POPULATION SIZE: ............................................................................................................. 3
RESPONSE LEVEL ............................................................................................................... 4
FINDINGS: ............................................................................................................................. 4
CONSUMER BEHAVIOR ............................................................................................................. 6
FACTORS AFFECTING CONSUMER BEHAVIOR ............................................................... 6
Cultural Factors: .................................................................................................................... 6
Social Factors: ........................................................................................................................ 6
Personal Factors: ................................................................................................................... 6
Variety Seeking Buying Behavior: .......................................................................................... 7
CONSUMER DRIVEN STRATEGY ............................................................................................ 7
4Ps—4Cs..................................................................................................................................... 7
I- Product:............................................................................................................................... 7
II- Price:.................................................................................................................................. 7
III- Placement: ........................................................................................................................ 8
IV- Promotion: ........................................................................................................................ 9
SEGMENTATION ......................................................................................................................... 9
THE TARGET MARKET .............................................................................................................. 9
POSITIONING ............................................................................................................................... 9
COMPETITIVE EDGE ............................................................................................................ 10

IV
MARKETING STRATEGY ......................................................................................................... 10
WEBSITE MARKETING STRATEGY .................................................................................. 10
NEW PRODUCT DEVELOPMENT STRATEGY ................................................................. 10
Idea Generation ..................................................................................................................... 10
Idea Screening....................................................................................................................... 10
Concept Development and Testing ....................................................................................... 11
Business Analysis ................................................................................................................. 11
Beta Testing and Market Testing .......................................................................................... 11
Commercialization ................................................................................................................ 11
PRICING STRATEGY ................................................................................................................. 11
SELECTING THE PRICING OBJECTIVES .......................................................................... 12
PENETRATION STRATEGY ..................................................................................................... 12
PRICE SENSITITIVITY .............................................................................................................. 12
ESTIMATION DEMAND CURVE ............................................................................................. 12
SURVEY................................................................................................................................... 12
PRODUCT MIX STRATEGY ..................................................................................................... 12
Product Line .............................................................................................................................. 12
BRANDING STRATEGY............................................................................................................ 12
PACKAGING ........................................................................................................................... 13
ADVERTISEMENT ................................................................................................................. 13

V
EXECUTIVE SUMMARY
Say Cheese Pizza is a new player in Antalya Bilim University. The parlor is inside the campus
that has a strong need for additional food options. Bolstered by the need for more choices in
students-oriented experiences, combined with the option for delivery, the parlor is positioned to
take advantage of the market demand and serve the students in the University.

The population of Antalya Bilim University is rapidly growing with the addition of new
departments and more number of students being enrolled each semester. It is Say Cheese
Pizza’s strategy to exploit the first-mover opportunity and establish itself as the preferred pizza
provider to the market. We believe a locally-owned pizza parlor is the best option to serve the
rapidly growing population with a fresh, unique menu as opposed to any other national chain
franchise.

This business plan calls for an exciting, profitable start-up year ahead with future forecasted
growth as we meet the demands of the community. In all, this plan describes a healthy company
with good growth prospects, looking to manage its orderly growth in the near future.

MISSION
“Say Cheese Pizza” creates a friendly and pleasant atmosphere for customers in a well-designed
and productive environment in which people can work happily. We are sensitive to the look
and taste of good pizza as well as to high-quality ingredients. We look to provide the best
possible value to our customers who desire great tasting pizza and to provide customers with the
satisfaction of receiving a great value, both tangibly and intangibly.

Our customers are our neighbors as we are residents of our market area (Dosemealti, Toki ). We
will also create and nurture a healthy, creative, respectful, and fun working environment, in
which our employees are fairly compensated and encouraged to respect the customer and the
quality of the product we produce. We seek fair and responsible profit, enough to keep the
company financially healthy for the long term and to fairly compensate owners for
their investment and risk.

KEYS TO SUCCESS

The keys to success in this business are:

• Delivering the customer value proposition.

• Marketing: promoting a new company and product.
• Product quality and consistency.
• Pricing effectively with respect to the project quality and customer value proposition.

1
OBJECTIVES
The objectives for “Say Cheese Pizza” are:

• To establish the market presence needed to support marketing and sales goals and to
attract customers
• To reach healthy monthly sales by the end of the year, and average monthly sales
increasing modestly by steadily through Year 3.
• To achieve double digit profit margins.

MARKET CONDITION
In the cafeteria of Antalya Bilim University, lots of food items are available except pizza which,
in our opinion, was an opportunity because pizza, being a well accepted product among the
students, pizza can certainly be a success.
We are differentiating our product from others which are already available in our cafeteria by
providing quality pizza with two varieties.

High cheese pizza Normal cheese pizza

COMPANY SUMMARY
Say Cheese Pizza is a privately-owned pizza parlor offering a product menu that does not
currently exist in the market and have the honor of being the pioneer. Our customers are
Students, Faculty &Staff members of the University as well as the residents of Dosemealti.

SERVICES

Say Cheese Pizza offers high quality pizza to a growing community that currently has limited
availability of food stuff and no availability pizza. At start up we will be open from 9 a.m. to 5
p.m. Monday - Friday.
Our menu will include pizzas with various combinations of toppings. Predefined, high-margin
pizzas will be highlighted on the menu.

RESEARCH PLAN
To determine the needs and wants of the market and to analyze the acceptability of our product,
we formulated a comprehensive research plan which included:

2
INSTRUMENTS

The instrument which we used in our survey is questionnaires which included open-ended as
well as close-ended questions.

SAMPLING PLAN

We randomly selected students from our sample size which is

2000 including faculty members as well.

GATHERING INFORMATION

We approached our sample size with in university regardless of gender basis and calculated
information from them on the spot through questionnaire.
The research plan comprises several stages:

DEFINING THE POPULATION OF CONCERN

We are concerned with the population of our target market.

Specifying a sampling frame, a set of items or events possible to measure:
We included students of both genders and faculty members of Antalya Bilim University as well.
Specifying a sampling method for selecting items or events from the frame:
Method which we have used is QUESTIONNAIRES.
Sample size is about 249.
Sampling and data collecting: we collected primary data through our survey.

MARGIN OF ERROR

The margin of error is the amount of error that we can tolerate or we can say the amount of
random sampling error in survey’s result which we have conducted in Antalya Bilim University.
We have taken 5% margin of error in our survey because it’s a common choice for everyone. We
have found 5% of errors in our survey.

CONFIDENCE LEVEL

The confidence level is the amount of uncertainty. Typical choices are 90%, 95%, 99%.
confidence level and it is important issue in sampling because when we use sample data to draw
inferences about the population, we hope to be fairly “on target” and have some idea of the
extent of possible error. We have used 90% confidence level in this survey to get fair results.
Higher confidence level requires a larger sample size.

POPULATION SIZE

The aggregate of objects with which we are concerned is called population size or we can say
how many people are there to choose our random sample. If we don’t know the population size,

3
we use 20,000 but in our survey the number of population we are targeting by providing them
quality pizza is about 2000.

RESPONSE LEVEL

It is basically what we expect the result will be after surveying our target market. There are
respondents who give 50% response in some questions and in rest of questions their response
level varies on options.

Margin of error 5%
Confidence level 90%
Population size 2000
Response level 50%
Our recommended size is 249

So this is the recommended sample size of our survey which we have done in Antalya Bilim
University. If we create a sample of this many people and get responses from everyone, we are
more likely to get a correct answer then we would from a large sample where only a small
percentage of the sample respond to our survey.

FINDINGS

The findings in response of questionnaire are as follows:

Question #1
*Would you like to have a 4 inches pizza inside your campus?
Yes 74% No 24% YES 76%

NO 24%

Chicken 74

Question#2 Veg 4%
*Which pizza would you like to have?
74% 4% 4% 18% Beef 4%

All in one 18%

4
Question #3 Question#4
*Which type of pizza would you like the most? *What price would you prefer for heavy
70% 30% cheese pizza?
80% 12% 8%

Thin Crust Lovers 30 TL

35 TL
Heavy Crust
Lovers 40 TL

Question#5 Question # 6
* What price would you prefer for normal * Would you like some different
cheese pizza? flavors which are not available in the
64%,20%,16% market? 36% 64%

25TL
YES
25 TL 36%
NO
30 TL 64%

Question#7 Question#8
*Which location would you like pizza *Would you like special occasions like
parlor to be at? Sports week, birthday or party etc?

52% 40% 2% 6% 76% 24%

Lawn 52%
YES
cafeteria 40% 76%

closer to entrance
gate 2% NO
other 6% 24%

5
Question#9 Question#10
*Would you like to have a delivery service *How many times would you like to have
of pizza? pizza in a week?
18% 82% 16% 44% 44%

once 16%
YES 18%
twice 44%
NO 82%
option 44%

CONSUMER BEHAVIOR

Since we are following a customer driven strategy, so it is important to take care of consumers’
behavior towards “Say Cheese Pizza”.

FACTORS AFFECTING CONSUMER BEHAVIOR

Cultural Factors:

Pizza is not a traditional food item in Turkey and it was launched in 1993 for very first time in
the country. It clearly was not a part of our culture but gradually has become a part of it and now
is widely accepted all over the country. Moreover, keeping in view the target market, most of the
students of Antalya Bilim University are from the backgrounds where pizza is neither anything
new nor inacceptable.

Social Factors:

Being a private sector university, general population of the university has relatively higher
buying power and most of them are status conscious. So, whenever they plan for a treat, party or
function, pizza comes first and if a high-quality pizza is available inside the campus, there could
be nothing better for them.

Personal Factors:

As far as personal factors are concerned, most of the target customers are of the age group of 18-
25 and hold good buying power as well. In fact, pizza has become a part of lifestyle of a person
in major cities of Turkey, and this case is even better when it comes to private sector universities
including our target market.

6
Variety Seeking Buying Behavior:

Inside the premises of Antalya Bilim University is a well-established Cafeteria with huge seating
capacity but very limited food items and that is why most of the students are interested in having
modern food items such as pizza inside the campus. Say Cheese Pizza can be a great success
keeping in view the variety seeking buying behavior of the target customers.

CONSUMER DRIVEN STRATEGY

4Ps—4Cs

I- Product:

The reason for existence of a product:

People want pizza to eat, but why they prefer the brands like pizza hut, Domino’s. The reason is
that because they have no idea where the pizza was made. So, we offer a clear message and
product that addresses consumer concerns.
We are offering our pizza with two major varieties and our menu will include pizzas with various
combinations of toppings.

High cheese pizza Normal cheese pizza

Consumer wants and needs
As it is obvious from the survey findings that or target customers want the pizza and the response
was quite encouraging. They not only are interested in just the pizza but also showed interest in
different varieties and tastes which we are offering. We will so take care of the market demand
of the pizza and its variants.

II- Price:

Pricing refers to affordability.

Pizza was introduced as a safe, healthy and affordable product. The prices, which were, currently
set when the product was introduced was affordable and the objective was to offer a quality
product at a standard price.
Markup Pricing:

The most elementary pricing method was used.

Unit Cost/1-Return On Sales

HEAVY CHEESE: NORMAL CHEESE:

(17.76+0.2) / (1-25%) =23.93 TL (13.75+0.2) / (1-25%) = 18.60 TL

7
II- Cost to satisfy:
Cost Calculation:

Heavy cheese pizza Normal cheese pizza

Variable cost per unit: 17.76 TL Variable cost per unit: 13.75 TL
Ingredients (15.75 TL) Ingredients (11.74 TL)
Electricity (100/30=3.3/300 units=0.0111) Electricity (0.0111)
Packaging (2 TL per box) Packaging(2 TL per box)

FIXED COST PER UNIT: 0.2 TL

Rent Per Day (40 TL)

Oven Rent (20 TL)

Total (40+20 )= 60/300

BREAK EVEN POINT:

Price: Variable Cost: Ratio: Avg. Price: Avg. Cost

H- 30 17.76 40.80% 12.24 7.246
N- 25 13.75 45% 11.25 6.18
============ ===========
23.49 13.42
FIXED COST / PRICE – VARIABLE COST:

1800 / 23.49 – 13.42 = 179 Units

III- Placement:

Pizza is placed in the market at the point where customers can reasonably look for it i.e. in the
lawn. The distribution is intensive. As we selected the whole university as target market, so
consumers can buy the pizza from our outlet.
III- Convenience to buy:

According to the survey findings, most of the target customers opted for the pizza outlet to be
placed in university lawn and that shows that it would be convenient for them and we have well
taken care of customer’s convenient access to the retail outlet. This offers a proper system for
consumers to access the product easily.

8
IV- Promotion:

Promotion refers to influencing people

We have introduced the product in a convincing and different style. Our product is basically for
cheese lovers and for this we have a logo which explains this fact. This figure is embossed on the
packaging of pizza. From there the advertising message started. This involved true visual
elements i.e. posters, conducting other events i.e. sports week, concert of artists, parties etc

IV- Communication

We have conveyed the information about our product in a successful manner to our target
customers. We have done this by placing posters all around the university to make the customers
aware about the “Say Cheese Pizza”.

SEGMENTATION

Markets consist of buyers, and buyers differ in one and more ways. They may differ in their
wants, resources, locations, buying attitudes and buying practices. Through market segmentation
a company divides large heterogeneous markets into smaller segments that can be reached more
efficiently and effectively.
As we are not big company and do not have a business on large scale but still we segmented our
consumer market demographically. It is the most popular basis for segmentation because
customer needs, wants and usage rates often vary closely with demographic variables. We
divided the consumer market of Antalya Bilim University by age group i.e. from 18-25 years.

THE TARGET MARKET

After evaluating different segments, we must now decide which and how many segments we will
target. It consists of a set of buyers who share common needs or characteristics that the company
decided to serve.
We are basically working on undifferentiated marketing (mass marketing). A specific
demographic target market was not chosen for our pizza; instead the goal was to develop a
product to be used by consumers of all ages - from teenagers to seniors. It was intended as a
liking product especially for students of Antalya Bilim University. In fact, pizza is targeting to be
also an alternative to other snacks.

POSITIONING

Beyond deciding which segment of the market, we will target, then we must decide what
position we want to occupy in those segments. Our products position is the way the product is
defined by consumers on important attributes- the place the product occupies in consumers’
minds. We have done our pizza positioning by doing a massive advertising campaign.

9
COMPETITIVE EDGE

Our competitive edge is to be first-to-the-market with pizza in a friendly environment.

Additionally, the location of “Say Cheese Pizza” is crucial as a convenience model to
customers. Antalya Bilim University students frequently visit the front lawn. This location is
directly in the center of activity in this university and inevitable for all the students and faculty
members of the university.

MARKETING STRATEGY

To drive customers to “Say Cheese Pizza”, we will employ several techniques outlined below.
Advertising has been done by placing the posters all over the campus with attractive logos and
colors. Additionally, special discounts and membership offers will also be launched soon and in
case of special events such as Sports week, we have planned to come up with special
promotional prices and offers. Future plans are to advertise in university magazines as well as on
the official website of Antalya Bilim University. With the increasing sales, lots of further
marketing activities will be considered.

WEBSITE MARKETING STRATEGY

Advertising campaign has also been launched on the internet by means of world’s most popular
website “Facebook”. We also own and run a fan page of Antalya Bilim University on Facebook
which holds almost 600 students from our target market. Future opportunities exist in offering
online ordering.

NEW PRODUCT DEVELOPMENT STRATEGY

New Product Development Process:

The process:

Idea Generation

We have generated many ideas for new product launch in our university. We have surveyed our
university campus and found that what is missing in our university. Many ideas were put in by
our group fellows like ice-cream parlor, pizza corner, old book shop, dance classes etc

Idea Screening

The object is to eliminate unsound concepts prior to devoting resources to them. The main things
which we considered in this stage are:

10
The customer in the target market benefited from the product the size and growth forecasts of the
market segment/target market the current or expected competitive pressure for the product idea
the industry sales and market trends the product idea is based on
the product will be profitable when manufactured and delivered to the customer at the target
price. Keeping in mind all this we sorted out the best ideas and then from them chose one idea
that was pizza corner.

Concept Development and Testing

Then we developed the marketing details like:

The target market and the decision maker in the purchasing process Benefits provided by the
product. Consumers reaction to the product. The product be produced in most cost effectively
manner. Its cost to produce it. Testing the Concept by asking a sample of prospective customers
what they think of the idea.
For this purpose, we distributed a questionnaire with the response of which we came to know
about demands of the customers as well as their perception about the upcoming pizza which
helped us a lot in the later stages.

Business Analysis

Estimate likely selling price based upon competition (in our case it’s a monopoly) and customer
feedback. Estimate sales volume based upon size of market. Estimate profitability and breakeven
point. All of these analyses have been done in the pricing part of Consumer driven strategy
section.

Beta Testing and Market Testing

Produce a physical prototype or mock-up. Test the product (and its packaging) in typical usage
situations. Conduct focus group customer interviews. Make adjustments where necessary
Produce an initial run of the product and sell it in a test market area to determine customer
acceptance. In this we made a prototype of our product and tested on the students in the
university campus. The response was good, encouraging and in favor of our product that’s why
we decided to launch pizza in our campus.

Commercialization

Launch the product. Produce and place advertisements and other promotions. Fill the distribution
pipeline with product. Critical path analysis is most useful at this stage. We have done a massive
advertising campaign in our own campus by posters plus have put an advertisement on internet
as well.

PRICING STRATEGY

Pricing strategies usually change as the product passes through its life cycle. The introductory
stage is not only difficult but also challenging and critical because it alone can sail the ship
through or can sink it in the beginning if not set properly.

11
SELECTING THE PRICING OBJECTIVES
The clearer the pricing objective the easier is to set price. Our objective is to provide good
quality pizza with variety. We have selected penetration strategy.

PENETRATION STRATEGY

In case of our product price is highly elastic that is customers are highly price sensitive and they
want a quality product. The quantity demand will increase significantly as price declines. We
have two products and their price varies according to the quantity and types of cheese. We have
chosen penetration pricing strategy because our product is of the nature that can gain mass
appeal fairly and quickly, as the product life cycle progresses, there will be changes in the
demand curve and cost as such the pricing policy should be revaluated overtime.

PRICE SENSITITIVITY

People want to have good food but still they can be sensitive of the price increment or decrease
because of income level for the reason that most of the population in university is of students.
In short, they need food with quality better then the rest with affordable prices.

ESTIMATION DEMAND CURVE

SURVEY

We did the survey and the results were showing that high demand of good quality pizza with
better taste and affordable price.

PRODUCT MIX STRATEGY

Product Line

We are developing product line rather than single product so that we could cater all the target
market which includes heavy cheese lovers. SAY CHEESE is offering two types of pizzas i.e.
Heavy cheese and Normal Cheese with prices of Rs. 60 and Rs. 55 respectively.
The amount of ingredients and quality differs which justifies the price differences.

BRANDING STRATEGY
This is a brand-new product from a newly born company, but we are planning to come up with
more product lines and variants so for that purpose, a branding strategy was carefully chosen:
Corporate name combined with individual family name:

12
“Say Cheese” is right now offering two product lines i.e. Heavy Cheese pizza and Normal
Cheese pizza coming under the flag of same company. In the future, it will help us to name our
products which are yet to come. The brand name is not only meaningful, likeable and adaptable
but also is memorable.

PACKAGING
A well designed packaging can build brand equity and drive sales. And it also affects
consumers’ later product experiences. Keeping in view these factors, the packaging has been
taken special care of. The packaging is done in a 5x5 inches paperboard on which the logo of the
company has been labeled beautifully. This not only attracts the customers’ attention but also
helps in making a favorable overall impression of the product and the company.

ADVERTISEMENT
A product can be a success even if it is not what the firm depicts it to be only through strong and
aggressive advertisement campaign and on the other hand a product can prove to be a flop if
advertising strategy is not run properly and effectively.
Keep this in view, “Say Cheese” has been effectively advertised throughout the Antalya Bilim
University Campus by means of posters which are not only attractive but also informative. The
response of poster advertisement has been encouraging and lots of target customers have been
found showing interest in them.
In addition, we own a fan page of Antalya Bilim University on world’s largest website
www.facebook.com and we have almost 600 students of Antalya Bilim University as fans on that
page and this number is increasing day by day. Using this forum, we have put an advertisement
on the same fan page as well which is turning out to be effective.

13