A Marketing Plan For Pepe’s
Pizza And Pasta Palace
Submitted: Sunday, November 08, 2009
Executive Summary
‘Pepe’s Pizza & Pasta Palace’ (known as ‘Pepe’s‘) is a small retail food
outlet on the main street of Valleyview. It is owned and operated by
Pepe and Peter Portelli. The product offered by Pepe’s is primarily
Italian-style food, including pizzas (small, medium & large sizes) with a
large range of toppings, pastas, garlic bread, gelato ice-creams and soft
drinks. Sales have been down over the previous year; however, by
following the marketing plan outlined in this report, Pepe’s business will
improve.
Pepe’s mission is to provide pizzas and pastas with fresh ingredients, a
variety of toppings and friendly service to the people of Valleyview and
surrounding areas. Pepe’s hopes to expand the business while
maintaining a focus on quality food, competitive prices and reliable
home delivery. Young people and families in the Valleyview area will
be the main target for this marketing plan.
There is a competitive market for Italian-style food in Valleyview, with
the main direct competitors in the nearby area being Valleyview Italian
Pizzeria and Pizza Hut. Other indirect competitors include: other take–
away restaurants, frozen pizzas and pastas from the nearby supermarket,
other quick prepared food alternatives, etc.
To be successful in this market, Pepe’s needs to increase awareness
among the community of Pepe’s as a provider of good, fresh pizzas and
pastas, with a friendly service. It must also attempt to build a good name
for Pepe’s as a fun place to buy pizzas, and for customers to prefer to
buy from Pepe’s than from its competitors.
Although it is recognised that the promotions budget is relatively small,
the promotional activities for Pepe’s will include: newspaper advertising,
signs, posters, fridge magnets, a space in the Yellow Pages, pamphlet
delivery, price-offs, and sponsorship of a local football team. These
promotional activities will support the product, price and distribution
strategies established in this marketing plan.
It is recommended that all the marketing activities in this plan be
supported by the owners and staff of Pepe’s in an attempt to increase
business for the forthcoming year.
Introduction
This marketing plan has been prepared for the proprietors of ‘Pepe’s
Pizza & Pasta Palace’ (known as ‘Pepe’s’), Pepe and Peter Portelli. Pepe’s
is a small retail food outlet located at 22 High Street, Valleyview, an up–
market area with a population of 20,000. The product offered by Pepe’s
is primarily Italian-style food, including pizzas (small, medium and large
sizes) with a wide range of toppings, pastas, garlic bread, gelato ice-
creams and soft drinks. Pepe’s provides a take-away and home delivery
service. There is no formal dine-in facility, although there are a few
tables and chairs to seat 10 patrons. The operating hours are from 5pm to
late (approximately 10.30pm Sunday to Wednesday and 12pm Thursday
to Saturday), with Friday and Saturday nights being the time of most
sales. Sales have been down over the previous year, with sales averaging
at approximately 500 pizzas and 80 pastas per week.
The activities set out in the marketing plan will follow Pepe’s ongoing
marketing strategy, as first presented in the company‘s business plan.
This marketing plan will cover the next calendar year from January to
December and concentrate on the geographic area around Valleyview
and Hilltop. Responsibility for implementing the plan will be in the
hands of the proprietors, Pepe and Peter Portelli. The main limitations in
preparing this plan include the proprietors’ lack of experience with
marketing or advertising activities, and the small promotional budget.
Situation Analysis
Market Analysis
Business/Market Definition
Pepe’s is in the food preparation and delivery business, particularly
Italian-style food in the Valleyview and surrounding area. The main
market for Pepe’s is young people (18-30 years) living in Valleyview
and Hilltop.
Market Size
Valleyview is an up-market area with a population of 20,000, while
Hilltop is a slightly smaller area on the main highway, which is situated
next to Valleyview. A large proportion of the population in these areas is
young families or established families with young children. The market
for take-away restaurants, including for pizzas, is strong and quite
competitive.
Market Potential
Valleyview is a growing area with a population of young families which
is expanding as new housing developments are being completed. Apart
from growth through population increases, there is a potential for
widening the average age of the customers to obtain more customers in
the 30+ age group. There is another potential for growth if Pepe’s widen
the home delivery area to include more parts of Hilltop.
Market Structure
The market is composed of personal take-away customers, home
delivery customers and dine-in customers. Pepe’s concentrates on the
personal take-away customers and home deliveries, as there is no formal
dine-in facility, only seating for 10 patrons.
Market Trends
Despite the growing population, last year saw a drop in sales which it is
hoped will not be repeated this year. Pizzas and pastas are acceptable
take-away food, although there is a market perception that the large
amount of cheese and fat in pizza make it an unhealthy food option, and
that some pizzas taste like cardboard. There has been talk in the industry
magazines about introducing ‘low fat pizzas’, ‘healthy pizzas’ and
‘gourmet pizzas’.
Environmental Analysis
There is a wide range of ages and incomes living in the Valleyview area,
although it primarily has a large number of young families on above
average incomes. It is noted that the main age of customers tends to be
young (18-30 years). It is hoped that this customer demographic can be
widened to include more older people. However, as people grow older
they may stop buying pizza, due to the feeling that pizzas are too fatty or
hard to eat, or they may be concerned about being at a place where there
is obviously a large proportion of young people.
Economic Factors
The overall economy is good, with little sign of inflation and interest
rate increases. Even though the economy is steady, prices of the
