MKT420 Assignment 4PS MARKETING MIX PDF

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PRINCIPLE AND PRACTICE OF MARKETING...

Description

PRINCIPLES AND PRACTICE OF MARKETING GROUP ASSIGNMENT 3 20%

COURSE CODE

: MKT 420

PROGRAM CODE

: BA243

LECTURER NAME

: DR ZATUL FAHANY BINTI HARUN

CLASS

: BA2431M

PREPARED BY

:

GROUP MEMBERS

MATRIC NUMBER

NUR ALISSYA BINTI KHAIRIL HASSHAARI

2020620806

NUR AQILAH BINTI MOHD MUZLI

2020879088

NUR AMIRAH NADHIRAH BINTI RUSMAN

2020871834

NURFARINA SOFIYA BINTI KAMARUDDIN

2020449438

NURUL FATIHAH BINTI ADDENAN

2020865828

SITI NUR NADZIRAH BINTI KAMAL AZMIN

2020462186

TABLE OF CONTENT

NO. 1.0

DESCRIPTION INTRODUCTION MAIN CONTENT

2.0

MARKETING MIX: PRODUCT

PAGE

MARKETING MIX: PRICE MARKETING MIX: PLACE 3.0 4.0 5.0 6.0

MARKETING MIX: PROMOTION OPINION CONCLUSION REFERENCES RUBRIC/DECLARATION

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INTRODUCTION

A franchisee of Pizza Hut in Malaysia. It is extensively involved in breeder and contract broiler farming, hatchery and poultry production and processing, as well as a host of ancillary businesses including baking, commissary, and sauce production. Today, Pizza Hut chain has growth to more than 350 restaurants is the largest pizza chain in Malaysia, QSR Group is confident that its pizza chain will continue to completely dominate this sector and will be able to powerfully fend off any new competition. Pizza Hut featuring a delicious mix of nutritious Italian American cuisine that includes the world’s favourite pan pizza and other signature dishes. There are two different concepts: Pizza Hut Restaurant & Pizza Hut Delivery. Pizza Hut Restaurant offers a cosy & friendly ambience coupled with great hospitality makes it the perfect place for one to relax, unwind & have a great time with family or friends. To add, Pizza Hut Delivery provides guaranteed hot & fresh pizza within promised delivery time in a convenient setting for added comfort.

Domino’s Pizza Malaysia has grown by leaps and bounds since it first began its operations in 1997.Domino’s Pizza Malaysia has experienced solid growth, particularly in the past few years with the opening of its 50th store in January 2011, 100th store in December 2012, 150th store in March 2016 and now the 200th store in April 2017. Domino’s Pizza continues to strive towards delivering quality service and products while embracing technology driven platforms as we progress into the next phase of growth in Malaysia.

This is our last case study for group assignment that we have choose two companies which is Pizza Hut vs Domino’s pizza. We choose Pizza Hut and Domino’s pizza because 3|Page

both companies from same food industry company that also uses online platform to conduct their business. The purpose of this assignment is to make student understand the importance of marketing mix strategy of the 4P’s such as product, price, place, and promotion that offering meets a specific consumer need or demand. The 4P’s of marketing mix are the key factors involved in the marketing of goods or services and constrained by internal and external factors in the overall business environment or interact significantly with each other. After identifying the 4P’s strategies, we must identify the differences of their online media platform for both companies to run their business online. We are so grateful that we have been able to complete our assignment. We were also been able to learn more about what marketing mix is, and the importance of understanding consumers and marketplace. In addition, this chapter make the student explore deeper into marketing strategies. We also identify that both companies use their branches and online media platform to conduct their business.

2.0 MARKETING MIX: PRODUCT

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A product is something that is sold to a consumer to stratify a target group of people's wants and needs. Services, entities, and locations can be tangible or intangible to the product. For example, there are three different types of products, Core product, Actual product and the third one is Augmented product. The marketers must consider the existence of a product. The item sell must be in line with the market's demand. It will assist the markets to examine in depth the PLC product creation process. There are four stages of the Product Life Cycles PLC, such as the launch phase, the development phase, the maturity phase, and the final decline phase. If one product decreases, marketers must provide other goods within various PLC stages to sustain the degree of demand for the product. When advertisers make the right product, they need to address the question of what the consumer wants? How and where are they going to use that product? Which product characteristics are important? I.e., name, appearance, and product distinction from rivals, etc. Pizza hut emphasizes on product quality. For a long time, its output has been unmatched, making it stand out in the face of stiff competition. According to the brand, its goods are produced for the optimum satisfaction of its customers with the finest materials available. The product's consistency aspect ensures that clients still return for more. Another stronghold in product management is that the pizza hut provides its products with personalized services. It ranges from architecture, ingredients, and flavours as well. In addition, there are different packaging choices available. As such, at any pizza hut outlet, many clients will get satisfaction with a pizza that they like. This is an ideal method for marketing. With the addition of side dishes, Pizza Hut has diversified its product line. There are also different types of pizzas such as cheesy bits, thin n crispy, stuffed crust, etc. Diversified product ranges offer consumers the option to select from a pool of alternatives. Pizza Hut boasts of making pizzas that are on par with the taste buds of most individuals. To keep their hidden recipes, Pizza Hut does not share a lot of details about their supplies. This hinders consistency copying between rival companies. The non-disclosure of the specifics makes its pizza special.

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One of the leading global pizza outlets is Dominos. Dominos' product line is primarily focused on different types of pizzas that are personalized with respect to local markets. The most famous one offered by Dominos in Malaysia is the pepperoni pizza. It spreads from a lot of vegan pizzas to other non-vegetarian pizzas in other locations. There is a lot of variation in the scale of the foundations and they are of different kinds. A selection of dips, sauces and toppings are included as well. As per the client's choice, Domino's pizza can be personalized. It also provides a selection of both non-vegetarian and vegetarian forms of pasta. Some flavoured breads are on the menu, aside from pizza breads. In the case of crust, Dominos also gives an option, such as the Fresh Pan Pizza and Cheese burst pizza. Options like whole-wheat crust have also begun to be offered and this option has not yet been used by any other organization. There is also a range of toppings for the customer. On requested, additional cheese on a pizza and dips such as Roasted Pepper Dip and Cheesy Jalapeno Dip are available.

2.1 MARKETING MIX: PRICE 6|Page

Price is the amount of charged for a product or service, or the sum of all the values that customers trade for the advantages of the product getting or using it. Some company have their own pricing department to set the best prices. The marketer also must understand the relationship between price and demand for its product before setting prices. Marketers will need to used product pricing strategies. Typically, pricing strategies change as the item passes through its life cycle. The introductory stage is highly demanding and challenging. The challenge of setting prices for the first time is faced by companies selling out a new product. Pizza Hut and Domino’s Pizza have the price strategies to ensure that their merchandise is marketed. Pizza Hut pricing is skimming pricing as recognized for its quality and high standards, and compared to its competitors, it has priced its products high. Pizza Hut has a skimming price so the customers prefer Pizza Hut over others because they need to want the quality of the product and the price must be supported by the image. It decreases the costs in the event of strong competition, but it captures the demand but does not compromise on high expectations and service efficiency. The pricing strategy in Pizza Hut's marketing mix often depends on the ordered pizza size. Pizzas are offered in three sizes, regular, medium, and large meaning that everything that is affordable for them can be bought. Pricing is made according to the sizes of the pizzas. Different pizza sizes, different food costs. Pizza Hut sets a high initial price for its product to offer customers a sign that its products are quality, and the service is magnificent. Domino’s also skimming pricing for its pizzas Domino's has competitors that are either equal to or even more common than it is, skimming prices must be sustained. So, the price is supported by the cost of the product. The target customers that they offer are average class and salary of society. With three sizes available, the prices are carried out differently and the non-vegetarian pizzas are charged comparatively more. Best of quality with suitable pricing is its their goals. Domino's has come up with a consistent and standardized pricing policy. This maintains the base price in place and encourages the company to gain customers. In its marketing mix, the pricing of pizzas and other eatables is often achieved so that the customer to which one size is catered does not compete with the other. Domino’s also to provide the charges if the customers want added to the pizza. There are no decisions on the side dishes, and they are priced at one price.

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Due to the popularity of the products marketed by Domino’s, they are far better than those usually sold on the general market. The key to this reputed company's incredible success is affordability. Many new and creative schemes are launched daily to sustain price levels. It still provides value for one's money to its customers. Product bundle pricing is the product marketing mix used by Pizza Hut and Domino's. Pricing of the product bundle takes a selection of their products, providing customers in a package, typically pricing the package lower than the amount of the individual components. Next, for the two business pizzas the also used price adjustment strategies which is promotional pricing. Promotional pricing is often given at regular intervals marked by temporary pricing of goods below the list price and often even below the rate to improve short-run sales.

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2.2 MARKETING MIX: PLACE

Next Marketing mix is place. Place is the process of moving products from the producer to a specific group of consumers that the company aim to likely will buy and use the product. In basic word, it is the process of buying product from the company buy the customers. A mixture of intermediaries such as manufactures, wholesaler and retailers may be the means of this process. In this process, the needs to studying where is our customers from and what we can do as a team production of product to vary depending on it. As we know that marketing mix for place have 2 main conceptions which is geographical conception and intangible conception. As for both company that our group choose which is pizza hut and dominos also has that 2 main conception.

For geographical conception, pizza hut organized its geographical departmentalization with grouping jobs based on geographic region. It is because for every country the customer has different beliefs and the way to life. As example, in our country here we have majority Muslim as population in Malaysia. Pizza hut in Malaysia avoid marketing menus that contain ingredients that are not halal eaten by Muslims, such as pork, alcohol and others. In Malaysia we also have Chinese and Indian who cannot eat certain ingredients. Such thing, pizza hut decided to make variety of menus that allow all type of race to buy and enjoy it without having to worry. As for Domino’s at the aspect of geographical conception, they have distributed in 4 part of place which is western region, south region, north region and eastern region. Dominos outlets in different countries has their own way of segmentation their market. As for Malaysia branch same as pizza hut, dominos emphasizing the choice and comfort of customers in choosing their daily diet. As all know, the majority population in Malaysia are Muslim. So that, dominos also do something like what a pizza hut does which is they only serving menus with halal ingredients. They, of course, also provide suitable food for customers who have the trust and other food choices such as Muslim food choices. As some part of Chinese prefer vegetarians, dominos provides a special menu for those vegetarians. For further information, both pizza hut and dominos does not open branches everywhere. Branches in small places and districts such as villages are hard to find due to the mindset of many companies who think that people who stay at the villages area not giving the response as given by the people in the city to the restaurant from both company. 9|Page

For the second concept which is intangible conception, Dominos’ are using digitalized their system for make it easy to make ordering process with mobile apps. It also a technique to sell its products to customers. Dominos also provide delivery service where customers only need to wait 30 minutes or less than that to get their product. While for the second company which is pizza hut, the company uses two different methods of how they are selling its goods. The first distribution system that Pizza Hut uses is the same as dominos which is by delivery. Customers may call Pizza Hut and place an order, and the order will then be delivered to the home of the customer. Secondly, over delivery, clients can choose to eat in the restaurant instead of taking away their order.

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2.3 MARKETING MIX: PROMOTION Domino’s Pizza

Domino's has a tradition of innovative and surprising ways of marketing their products. Since their goods are mostly marketed digitally, they have also encouraged the marketing of their food products online. In order to introduce their pizza into the market, Domino's mostly uses TV advertisements, online sales, vouchers and word of mouth. Domino’s use YouTube, Twitter, Facebook and other social media in advertise their product and build an irresistible desire to eat pizza through internet advertising. A lot of stunning domino pizza commercials featuring respectable stars have been aired and they have all been really successful with the masses. Domino’s always offer for free home delivery. Sometimes, the company gives a 50% discount on the second pizza. At other moments, the business is introducing schemes like a small free pizza on a large pizza. Often lucky coupons are often offered to loyal buyers. In addition to assessing their own strengths and weaknesses, Dominos has also been an authority on their competitors. The one area in which the other competitors is actually unable to succeed is the delivery of pizzas on time. Its door-to-door delivery policy is amazing. Almost every person knows that Domino will deliver the pizza in thirty minutes flat. Thus, the advertisement committee is heavily engaged in the marketing and promotions campaign to raise revenue.

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Pizza Hut

Malaysia is also Pizza Hut's biggest market. In order to popularize its products, Pizza Hut participates in different advertising campaigns. To reach out to customers, the company uses conventional ways of sales marketing. They contain advertising, personal selling and promotion on purchases. TV, internet, and radio advertisements are promoted. Social networking has also been used lately since its popularity increases on a regular basis. Some people confess to watching TV ads for pizza huts, billboards, or listening to it on the radio. Due to their penetration capabilities and range, the media are selected, because the target market gets covered. The promotion of discounts, which involves the activation of vouchers in online order through checkout, has also created increased its sales figures. They also distribute door-to-door brochures to gain more and more buyers. Besides, personal marketing is an action have been taken by the company to bringing actual individuals to the field to inquire about the pizza hut and its goods with customers. The strategy is used to give further clarity and clarify some questions. This strategy is combined with sales incentives where an individual is rewarded when ordering pizzas from the pizza hut. Other than that, Pizza Hut has always made a promotional deal that will help people spend less money on it. They may get combo deal like double box, my box, on the go, big celebration deals and many more with worth price and more economical especially when redeeming the promo code they have offered.

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2.4 THE DIFFERENCES OF ONLINE MEDIA PLATFORM PIZZA HUT VS DOMINO’S PIZZA

Pizza Hut 

Social networking (Facebook, LinkedIn)

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Microblogging (Twitter)

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Photo sharing (Instagram)

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Video sharing (YouTube, Facebook Live)

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Website & Apps on phone McDonalds 13 | P a g e



Also available on Grabfood & Foodpanda

Domino’s Pizza 

Social networking (Facebook, LinkedIn)



Microblogging (Twitter)



Photo sharing (Instagram)



Video sharing (Youtube, Facebook Live)



Website & Apps on phone Domino’s pizza



Also available on Grabfood & Foodpanda

Social networking is the use of internet based social media sites to stay connected with customer. Social networking may have a social purpose or business purpose such as Facebook, Twitter, Instagram, YouTube etc. Social networking has become an important basis for marketers seeking to engage customers. Usually, a business company will use social networking to promote and advertising their product through online media platform. Pizza Hut and Domino’s pizza use their social media accounts to advertise and promote their product and to engage with the customer. Other than use social media to promote and advertise, the customer can also directly tweet or posting any feedback in positive or negative on Facebook, Twitter, Instagram etc, they will take action on the customer feedback and improve their products and services. Pizza Hut and Domino’s Pizza also have collaboration with grabfood and foodpanda which is customer can buy their food via ordering online and delivery their food to them. This is how they conduct their business through online platform. Basically, both of this companies use the same online media platform. Both also have pizza delivery directly sending to their customer after ordering online. Customer can purchase their pizza through online website, their own apps on phone, or ordering through grabfood or foodpanda. This has shown that both companies use online media platform wisely because customer can choose either to eat at home by ordering online or eat at their restaurant. 14 | P a g e

3.0 OPINIONS ON SUPERIOR ONLINE MARKETING MIX. In our view, we choose Pizza Hut as a superior online marketing mix in advertisement because the company have used online marketing well that include advertisement on social media. This is demonstrated by for its web-based media system,...