VIETNAM NATIONAL UNIVERSITY, HANOI

The University of Economics and Business (UEB)

FINAL ASSIGNMENT

SUBJECT: PRINCIPLE OF MARKETING

Student : Nguyen Ba Hiep

Student Code : 21050201
Class : QH-2021-E QTKD CLC1
Subject Code : BSA2002-E*4
Lecturer : PH.D. HOANG BAO THOA
PH.D. NGUYEN VAN
PHUONG

HA NOI, 7/2023

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 OUTLINE

Introduction:.......................................................................................................................3
I. Introduce briefly about the Product: Pizza...............................................................3
II. Analyze SWOT of the business...............................................................................3
III. Analyze the process of market segmentation, choosing targeted market and
product positioning.............................................................................................................5
1. Market segmentation.......................................................................................................................5
2. Targeted market: The Age Group 16-25 in Viet Nam.......................................................................6
3. Product positioning..........................................................................................................................7
IV. Analyze customer’s behaviors to the service/product...........................................8
1. Shopping Behaviors..........................................................................................................................8
2. Summarize content in (1), (2), (3) to create a marketing mix strategy and analyze
that strategy........................................................................................................................9
1. Price..................................................................................................................................................9
2. Place...............................................................................................................................................10
3. Product...........................................................................................................................................11
4. Promotion.......................................................................................................................................13
3. Conclusion..................................................................................................................14
4. Reference....................................................................................................................16

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 Introduction:

Along with the continuous development of society, the number of established businesses
has also been rapidly increasing across various industries. To compete with numerous
competitors, besides differentiation in products, vision, and business strategies, marketing
is an indispensable factor in the operation and development of a business.

This article will delve into the creative practice, analysis, and development of the
Marketing mix strategy for a new product - Pizza. Starting from initial ideas, students will
analyze the SWOT model of the business, identify the target customers, and then proceed
to construct the marketing mix strategy for the business.

I. Introduce briefly about the Product: Pizza

Name: Pizza 3in1

Ingredients (topping): beef, seafood, chicken (customize based on clients' needs)
Price: 75.000 – 160.000 (vary in size and topping)
Distribution channel:
 Through mobile apps or online platforms such as Loship, Baemin, GrabFood,
ShopeeFood, GoFood, Ahamove,...
 Takeaway
Product Description: Pizza 3in1 - a tantalizing creation that combines three distinct
pizza flavors in one. Handcrafted with good ingredients, each bite is a celebration of taste
and convenience. Choose from versatile sizes and customize to perfection. Delivered
fresh to your doorstep, Pizza 3in1 is perfect for any occasion - family gatherings, game
nights, and more. Join the ultimate pizza experience and indulge in a symphony of flavors
that will keep you coming back for more. Treat yourself to Pizza 3in1 today and embark
on a pizza adventure like no other.

II. Analyze SWOT of the business

Business: The Pizza-Devouring Buffet

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SWOT analysis:
Operating time: 10:00 a.m – 23:59 p.m

Strengths:
 Affordable Pricing: Offering reasonable prices attracts price-sensitive young
consumers, making the business competitive in the market.
 Convenient Ordering: Online ordering and delivery services cater to the busy
student lifestyle, providing convenience and accessibility.
 Customization Options: Providing a wide range of pizza toppings and crust
options allows for personalized choices, enhancing customer satisfaction.
 Youthful Branding: A youthful and vibrant brand image resonates well with the
target audience, making it appealing and relatable.
 Social Media Presence: Strong social media presence and engagement help in
connecting with the target market and building brand loyalty.

Weaknesses:
 Limited Demographic Reach: Targeting mainly young people and students might
restrict the business's appeal to other demographic segments.
 Delivery Challenges: Ensuring timely deliveries during peak hours can be a
logistical challenge, potentially affecting customer satisfaction.
 Lack of brand awareness: The Pizza-Devouring Buffet will enter the market with
limited or no brand awareness as an entirely new brand. This issue will be
addressed through promotion and marketing strategies
 Competition: The pizza market is competitive, with other established pizza chains
and local eateries vying for the same target audience.

Opportunities:
 Campus Collaborations: Partnering with colleges and universities for exclusive
deals or sponsoring events can increase brand visibility and student engagement.
 Discount/Voucher for students:

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  Expand Menu for Diverse Preferences: Introducing new menu items like salads,
desserts, or beverages can attract a broader customer base.
 Online Marketing Expansion: Leveraging emerging online platforms and trends
can reach a wider audience and create viral marketing opportunities. (tiktok)
 Health-Conscious Options: Offering healthier pizza options aligns with the
growing trend of health-conscious eating among young consumers.

Threats:
 Economic Conditions: Economic downturns can impact the disposable income of
students, affecting their dining-out choices.
 Food Safety Concerns: Instances of foodborne illnesses or health concerns can
damage the business's reputation and customer trust.
 Competitor Actions: Aggressive marketing, discounts, or innovative offerings
from competitors can impact market share and customer loyalty.

The takeaway/online buying reasonable-price pizza business targeting young people and
students has several strengths, including affordability, convenience, and a youthful brand
image. However, it faces challenges such as limited demographic reach, seasonal demand
fluctuations, and strong competition.

To succeed, the business will capitalize on opportunities like campus collaborations, and
online marketing while addressing threats related to economic conditions, rising costs,
and maintaining food safety standards. An effective strategy that leverages strengths and
opportunities while mitigating weaknesses and threats will enable the business to thrive in
this competitive market segment.

III. Analyze the process of market segmentation, choosing targeted market

and product positioning

1. Market segmentation

Market Demographics Geographics Psychographics Behavior

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Segment
- pizza for family
- Urban and
- Children and gatherings
Age Suburban Areas - Attracted to
early teens - Birthday parties
Group 5- - Areas with colorful and fun
- Influenced by and special
15 educational toppings
parents occasion
institutions
celebrations
- Frequent online
- Open to trying orders and
new flavors takeaways
- Young adults - Urban areas
- Appreciate - Value deals and
Age and college - Areas with a high
customization discounts for
Group students concentration of
options budget-conscious
16-25 - Tech-savvy, young adults and
- Seek students
independent students
convenience and Social gatherings,
quick service dining out with
friends
- Busy, prefer
- Young - Urban and - Value quality
delivery and
Age professionals, Suburban Areas and taste
takeaway options
Group early families - Areas with a mix - Seek value-for-
- Family meal
26-35 - Busy and time- of residential and money options
deals and
constrained commercial spaces
promotions
- Classic and
- Urban and traditional tastes
- Middle-aged - Occasional
Age Suburban Areas - Dietary-
adults, seniors diners, ordering for
Group - Areas with a mix conscious options
- Seek quality family gatherings,
36-60 of residential and - Appreciate
and authenticity dine-in experience
commercial spaces health-conscious
choices

In that case, we choose the Age Group 16-25 as our Target Customers as their
Demographics, Geographics, Psychographics, and Behavior fit our business development
direction.

2. Targeted market: The Age Group 16-25 in Viet Nam

Demographics

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 Data points Targeted customers:
Age 16-24
Occupation Students, college students, fresher employees.
Location Big cities with many universities, near college campuses
Income Low to Medium

Psychographics

Data points Targeted customers:

Personal Characteristics Tech-savvy, social, energetic
Hobbies Gaming, music, hanging out with friends
Needs Quick and budget-friendly food options, convenient
ordering process
Interests Technology, music festivals, socializing
Pains Limited budget, lack of time for cooking, academic
pressure
Main challenges Balancing studies, work, and social life, finding
affordable meals

Geographic
The Pizza-Devouring Buffet chooses to operate in heavily populated cities like Ho Chi
Minh City, Hanoi, Da Nang, Hai Phong,... However, at first, the pizzerias focus to operate
in Hanoi and Ho Chi Minh City, near the campus where a massive amount of college
students are living.
Noticing that, besides targeted customers, we also have a number of potential customers.

3. Product positioning

The Pizza-Devouring Buffet targets young people and college students with affordable,
customizable pizzas. It emphasizes convenience, offering online ordering and doorstep
delivery. The brand image is vibrant and youthful, engaging with its audience through

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social media. Special student discounts and diverse menu options cater to various
preferences. Positioned as a go-to option for quick, budget-friendly, and delicious meals,
it challenges the notion that affordability compromises quality.

IV. Analyze customer’s behaviors to the service/product

1. Shopping Behaviors

Data points Targeted customers:

Budget Limited budget for food and other expenses
Shopping Frequency Frequently orders food for takeout and delivery
Preferred channels Mobile apps, online platforms, social media
Online behavior Relies heavily on online reviews and ratings
Search terms "Cheap pizza delivery near campus," "student discounts"
Preferred brands Local pizzerias, student-friendly pizza chains, cheap
pizza,..
Triggers Student discounts, fast delivery, customizable options
Barriers High prices, long delivery times during peak hours

Understanding these customer behaviors enables us to tailor our menu offerings,

marketing strategies, and customer engagement efforts to meet customer expectations
effectively. We can enhance customer satisfaction, foster loyalty, and maintain a
competitive edge in the market based on thoses.

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 2. Summarize content in (1), (2), (3) to create a marketing mix strategy and
analyze that strategy

1. Price

Price speaks to positioning in the market, the speed at which you want to penetrate your
market, and your company's revenue goals and profit margin.

Based on brand-positioning and target customers, The Pizza-Devouring Buffet chooses

Cost-based Pricing as the main pricing strategy to develop the company and accomplish
business objectives.

Detailed cost analysis:

Assuming 200 cakes are sold every day, with an average price of 80,000 VND per cake,
we have Estimated business costs for a month:

(This cost can only be true under this condition because the larger the scale of production,
the smaller the cost per product)

Estimated business costs for a month

Fix cost Variable cost

Category Amount (VND) Category Amount (VND)
Rent 8.000.000 Ingredients 200.000.000
Employee salary 50.400.000 Marketing 5.000.000
Depreciation of fixed
assets 2.000.000 Packaging 18.000.000
Electricity, water, Discount cost for
communication system 3.500.000 application partners 25.200.000
Other expenses (insurance,
expenses incurred ..) 1.000.000
Total Total
64.900.000 248.200.000

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 Total 313.100.000
With the estimated costs, the total cost is about 313.100.000 VND

With the condition 200 pizzas are sold every day, with an average price of 80,000 VND
per pizza, Total revenue: 540.000.000 VNĐ

 Revenue through delivery app about 30%: 144.000.000 VND

 Direct revenue about 70%: 396.000.000 VND

Cost-to-Revenue Ratio: 57,98%

Profit-to-Revenue Ratio: 42,02%

Average Price of a product: 80.000 VND

Cost per product: 46.384 VND

Profit per product: 33.616 VND

Conclusion: Thus, we can conclude with the above profit and cost ratios, it is feasible to
set the average price for a popular product to be about 80.000 VND. This price is both
suitable for the profit of the business and in line with the income of the target customer.

2. Place

Physical stores

 Location selection: The pizzerias have quite small area ranging from 25-50m2,
often established in strategic locations, such as busy streets, shopping malls, and
near college campuses, in narrow alleys instead of developing on the main road.
These locations ensure high visibility and foot traffic, attracting potential
customers. Moreover, it helps the pizza chain create a friendly image in the eyes of
consumers, in line with its brand positioning and target customers.
 Pizza outlets strategically positioned near college campuses target the student
population, offering a convenient and affordable dining option for students.

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  Although mainly selling online and take-away, the chain still has about 10 seats in
each store for young people to enjoy immediately => meeting part of the seating
demand.

Online methods:

 With the rise of online platforms and food delivery apps, pizza businesses have
expanded their reach to customers beyond their physical locations.
 Online ordering systems provide convenience and accessibility for customers,
especially those with busy schedules or preferring to dine at home.
 Delivery services allow pizza businesses to cater to a broader customer base,
including those in distant or less accessible areas.

Collaborations with Food Delivery Apps:

 Collaborations with food delivery apps enable businesses to benefit from their
efficient delivery infrastructure, ensuring timely and reliable order fulfillment.
 Partnering with popular food delivery apps expands the reach of pizza businesses,
tapping into the existing user base of these platforms.
 Food Delivery Apps can be mentioned: Loship, Baemin, GrabFood, ShopeeFood,
GoFood, Ahamove,...

3. Product
Product Attributes

 Provide a variety of fresh toppings and crust options to cater to different tastes and
dietary preferences, including vegan and gluten-free options.
 Quality food: Our brand's focus will be on ensuring that every pizza we serve is
freshly made.
 On-demand order: We give our customers the opportunity to customize their pizza
according to their taste preferences; offer a variety of crust options, such as thin
crust, thick crust, and gluten-free crust, catering to customers with different dietary
requirements.
 Convenience: In addition to high-quality food, our brand's focus will also be on
convenience, allowing customers to easily order and receive their pizza through

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 various channels, such as in-store (take-away), online, or mobile apps like
Shopeefood, Grabfood, Baemin, Loship ....

Features

 Nutritional information available for each pizza, catering to customers with

specific dietary needs.
 Features: Enhancing the Dining Experience

Style and design

 Design: Trendy and Eye-Catching

 Logo: Create a playful and trendy logo incorporating a pizza slice and vibrant
colors, using a combination of green, red, and yellow to represent fresh ingredients
and a lively atmosphere. The font is bold and eye-catching, with the text "The
Pizza-Devouring Buffet" positioned below the image.
 Packaging Design: For pizza boxes, use a clean and minimalist design with the
logo prominently displayed. Include relevant contact information, and social media
handles.
 Create a visually engaging website with a responsive design, featuring mouth-
watering images of pizzas and a user-friendly interface for easy online ordering.
Integrate social media buttons to encourage sharing and provide updates on
promotions and events.

Brand

 The brand name should be catchy, youthful, and easy to remember. " The Pizza-
Devouring Buffet" conveys the core offering of the restaurant while appealing to
the target demographic.

Packaging

 Eco-friendly packaging made from recycled materials to minimize the brand's

carbon footprint.
 Packaging: Eco-friendly and Convenient
 Choose eco-friendly packaging materials, such as biodegradable or recyclable
materials, to appeal to environmentally conscious customers. Opt for packaging
that keeps the pizza fresh and maintains its quality during delivery or takeaway.

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Product support services

 Online ordering system with real-time tracking of order status and estimated
delivery time.
 Loyalty Program: Implement a rewards program where customers can earn points
for each purchase and redeem them for discounts, free toppings, or exclusive
offers.

Product line

 Offer a variety of delicious and customizable pizzas with a range of toppings, crust
options, and sizes to cater to diverse preferences.

4. Promotion
Online channel

 Social media: Pizza businesses should heavily utilize digital marketing channels,
including social media platforms like Facebook, Instagram, and TikTok, to engage
with the target audience.
 Website building: A well-designed and user-friendly website serves as a powerful
online platform for pizza businesses to showcase offerings, engage with customers,
and drive online orders. Moreover, this can enhance the reputation of the business.
 Online advertising: Pizzerias should invest in online advertising, including Pay-
Per-Click (PPC) campaigns, to appear in search engine results and relevant
websites. PPC ads should target specific keywords like "pizza delivery" or "best
pizza near me," increasing the chances of reaching customers actively looking for
pizza options.
 Creative and visually appealing posts, videos, and stories showcase mouthwatering
pizza images, enticing customers to try products.

Traditional advertising:

 Using traditional advertising methods such as print media (newspapers,

magazines), POSM,…can be effective for targeting specific neighborhoods or
regions.

Sale promotion:
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  Student Discounts: Providing special discounts or deals exclusively for college
students caters to the young demographic and encourages repeat visits.
 Combo Deals: Offering combo meals with pizza, sides, and drinks at discounted
prices appeals to customers looking for a complete meal package.
 Takeaway Discounts: Offering discounts for takeaway orders encourages
customers to order and pick up their pizzas, reducing delivery costs for the
business.

Partnership with high school/college events:

 Collaborating with high school and college events allows pizza businesses to
leverage existing event promotion efforts and resources, reducing marketing costs.
 By participating as a sponsor or offering pizza discounts during these events, the
pizza business gains significant brand visibility among students, increasing brand
awareness.
 During events, pizza businesses can offer free pizza samples or tastings, allowing
students to experience the product firsthand and potentially convert them into loyal
customers
 Successful event partnerships can generate word-of-mouth promotion as students
share their event experiences and mention the pizza business's involvement to their
peers

3. Conclusion

The significance of Marketing in business activities is evident from the inception of a

business idea to its execution; marketing plays an essential role throughout this process.

For a student-priced pizza brand, the challenge lies in how to effectively approach and
attract the target customers while distinguishing itself from numerous direct and indirect
competitors in the same segment.

To address this challenge, it is crucial to integrate the elements of the marketing mix
model and utilize creativity to position the brand, reach the desired audience, and achieve
the business objectives. By carefully crafting the product, pricing, promotion, and
distribution strategies, the pizza brand can effectively cater to the needs and preferences
of its student clientele while staying ahead of the competition. Furthermore, innovative
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and eye-catching marketing campaigns, along with engaging social media presence, can
help create a distinct brand image and increase brand awareness among the target
audience.

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4. Reference

[1] Marketing service - pizza 4P’s is one of the leading pizza chain brands in the
World’s operates in (no date) Studocu. Available at:
https://www.studocu.com/vn/document/truong-dai-hoc-tai-chinh-marketing/
marketing-service/marketing-service/31361740
[2] Kotler, P. Principles of Marketing Ebook (15th edition) .
[3] Leadgle (2022) Chiến Lược Marketing Của Domino’s pizza – vua giao pizza
Nhanh Toàn Cầu, Phần mềm quản lý nhà hàng, quán cafe, quán ăn
CUKCUK.VN. Available at: https://www.cukcuk.vn/14483/chien-luoc-
marketing-cua-dominos-pizza/

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