Strategic

Marketing
Management
Project: Milano Pizza

Department: FMS
MBA 1.5 Marketing

Submitted to:
Sir Imran M. Qureshi

Submitted by:
Usman Afridi
7116
Abdul HaseebIqbal
7132

International Islamic University Islamabad, Fall 2015

Introduction
Company Profile
Products and Services

PEST
Forecast and trend

BCG
BCG matrix

SWOT

Strengths, Weakness, Opportunities, Threats

Strategy Selection
SWOT based Strategy

SCORPIO Technique
7 components

Name
The name of our project is Milano Pizza. The owner of the Pizza shop is Mr.
Muhammad Ikram Khalid. It is Italian pizza brand now serving you intellect pizza variety,
in which you can select custom ingredients according to your taste.

Area
It is situated in Fatima Plaza near Utility Store, I-10 Markaz Islamabad.

History
The owner of the Milano Pizza is a software engineer and run a business along
with their job. But there were two problem, high risk and money for investing. The
problem of money for investment was solved by getting money from his Brother in Law
and for risk he believes that it could be overcome by his good Quality. So eventually he
started this business in January 2013 and since then he is successfully running it.

Hierarchy
Muhammad Ikram Khalid is only the owner of the Milano Pizza and there are 5 workers
in his Shop. Two workers work in Kitchen and one of them takes the order and serve
them and one works as cleaner and one is for delivers pizza and other Fast food.
Milano Pizza has also one another branch in Lahore that manages by his Brother in
Law.

Operations

Target Customers: Our customers are young generation and also that People who like
and consume Fast food in high scale.

Products and Services:

Products:
Pizza: our main product is pizza that is in many flavors such as
Chicken Tikka, Chicken Fajita, Bar BQ, Spicy Hot, Vege Lover etc
Burger: Burgers we serve are
Zinger Burger
Zinger Combo
Chicken Burger
Double Decker
Chicken Tikka Burger
Fries
Sand witches: Chicken Sand witch and Club Sand witch
Pratha Roll and Twister Pratha
Shawarma roll and Plater Shawarma
Hot wings and Nuggets

Services:
Quality: We are using best quality of Mozzarella cheese in Pizza and in Burgers. We
have hygienic kitchen and using K&N's - Safe and healthy chicken, No one else in I-10
Markaz using K&N and changing cooking oil on timely manner.
Internet Connection: Free Wifi for customer to entertain their selves other by sitting
idle.
Free home Delivery: Free home delivery in 45 minutes after they order.

All these operation are control by the manager himself and they keep an eye on every matter,
solve problem with giving great importance to their work .The owner claim that he provide one of
the good quality food i.e. tasty and hygienic and also provide one of the good service.

PEST analysis for Milano pizza shop

PEST analysis is a tool of economics by which the business environment is evaluated to
gage the suitability of such an environment for setting up strategy.
PEST is an acronym for political environmental social and technology

Political factor
Government regulations regarding hygiene health and food, make food standard etc are
some of the factors. Economic policies of government regarding fast food industry that include
license ,inspection by health and food ministry department etc effect the organization Factors
such as laws on business employment, pollution and taxation apply on the organization which it
has to follow regarding the rules.

Trends
There were not as much law and order situation or inspection by health and food
minister department in previous year thus forecast is that same situation will continue.

Economic factor
There are some factor that effect organization but not to a very large extent they include;

Inflation
A general increase in price in an economy and consequent fall in purchasing value of
money is called inflation. So if the inflation rate is increased purchase value will decrease but
my analysis shows it still dont affect the sale of pizza shop because inflation rate was not that
much high

Trend
year Jan

Februar

marc

Apri

ma

Jun

Jul

augus

Septembe

201

3.8

y
3.24

h
2.49

l
2.11

y
3.1

e
3.16

y
1.8

t
1.72

r
1.32

Forecast
October
1.73

November
2.04

GDP
If the county's economy is better so the GDP of the country will be good, it is the initiative for
business as the per capita income increases people will spend more money and vice versa.

Trend
year

2010

GDP

1.6

2011

2012

2.7

3.

2013

2014

4.4

5.4

5
Forecast
For 2015 the forecast will be 1.44
Price is also another factor as fast food price is high in Pakistan and low in America and Europe.
Thus consumption rate is also low in Pakistan.

Social
Eating habits of the people in your chosen business environment may, and certainly will,
affect your marketing decisions.
These may include demographic aspects like age distribution, population growth rate,
employment and income statistics, education and career trends, religious beliefs and social
stigmas, overall general attitude (conservative or liberal), etc. These factors may have a huge
impact upon the firm's operations within the business environment as any action by the firm

Age
The analysis shows that children and young generation such as student visit more offen
as compare the old people so most of the revenue was from below 40 age population.

Trend
Young generation consumes the highest percentage of fast food
from shop.
Children were second to them
Old had a very small ratio of fast food consumption
Income
Income was one of the most effecting factor the effect the shop sale. In area such as I-9 and I10 the income of the most of the people is not very high .

Trend
The minimum income of people starts from 6000 to maximum. So for people who reside
in between 6000 to 20000 cant afford to buy fast food on daily or weekly basis.
Because of the income and of the price of fast food people use to visit shop once in a
two week.
Buying from one place
Trend
There is a trend of people buying sweet along with fast food so a good chance for increase sale
as well as dominating competitors

Forecast
People will prefer to buy from shop where both product are avialable

TECHNOLOGICAL
Technological factors may assume decisive proportions and may impact the cost, quality
and scope of innovation for a product, service or commercial utility.

At the present time, technology is improving, so as baking and heating ovens will be of
new and efficient technology and will provide efficient service. Due to these innovative
technology there are many latest ways of publicizing likewise, through internet; telemarketing
through which organization can advertise their products in much more rapidly than ever before.

Publicizing through internet

But Milano pizza shop is not doing as such publicizing on internet. So in future it may
affect the shop as competitor may take advantage of this opportunity.

Trend
There is trend for online fast food order in Islamabad. The people are finding it easy to buy
online as compare to personally going to shop.

Forecast
So in future the trend for online buying of pizza will increase.

BCG:
Performance Analysis:

Marke
t
Share

Star

Question Mark

Cash Cows

DOGS

Warhorses
0

Dodos

Relative Market Share

Market Growth & Market Share:

Revenue of Milano pizza along with their Competitors is as follows.
(In Lac Rupees)

Company

2013
July to
Dec

Pizzano

20

7.5%

21.5

6.9%

1.4

23

1.4

Milano Pizza

15

3.3%

15.5

3.2%

0.5

16

0.69

12.5

1.3%

12.9

0.7%

0.6

13

0.56

10

(5%)

9.5

(5.2%)

0.3

0.39

Fast Food

Heaven Foods
Pizza Cottage
and
Fast Food

Market 2014
Growth Jan to
June

Market Relativ
Growth e
Market
Share

2014
July to
Dec

Relative
Market
Share

Total

57.8

7.1%

59.4

5.6%

2.8

61

3.04

Overall Market Growth 2013 (July) to 2014 (June): 59.4-57.8/57.8=2.78

Overall Market Growth 2014 (Jan) to 2014 (Dec): 61-59.4/59.4=2.69%
Average Relative Market Share 2013 (July) to 2014 (June): 3.08/4= 0.77
Average Relative Market Share 2014 (Jan) to 2014 (Dec): 3.04/4= 0.76

BCG Matrix:

7.5
3.3

2.7
8
H

1.3

2013 (July)
1.38
0.6

0.77

to 2014

0.7

0.4

-5

(June)
P&C

6.9
3.2
2.6
9
0.7

2014

M
-5.2

(Jun) to
P&C
H

2014

1.4

0.76

Interpretation
Pizzanoo is the market leader because it is older as compare to Milano. The benefit of
their old customer and low price has made them allowed a good market share as well
higher market growth. Milano has done well as it was new but still it was better than
heaven foods and pizza&cottage because of their good quality and location, layout.
There was little change in 2014 (Jun) to 2014 (Dec) as compare to 2013
(July) to 2014 (June). The decrease was of the reason people are going towards saving
because of price increase. Pizzaono again lead the market because of same reason as discuss
above.

SWOT Analysis
SWOT analysis is a strategic tool for evaluation that help us understand the
internal strength and weakness of an organization but also the external
threat and opportunity that a business confronts with.
Following are some of the strength & weakness that has helped Milano pizza
to gain a competitive advantage and see Weak points respectively:

Strengths:
1. Location and layout gives us a competitive advantage because our
shop is in main markaz and very close to Schools and academies.

2. Milano runs two branches main in Islamabad and other in Lahore that
makes strong our business financially.
3. Use quality chicken of K&Ns and other raw material with
manufacturing and expiry date mentioned followed by the health
ministry of Pakistan.
4. IT expert owner and skilled kitchen staff.

Weakness:
1. Difficulties in maintaining a unified brand image due to low
differentiation.
2. No advertisement and promotional campaign because this is a small
business and not afford the expenses of print media.
3. Prices of Pizza and Burgers are high as compared to competitors.
4. Old entrant Pizzanoo enjoys the large market because their prices are
low and their free home delivery covers high area.
Following opportunity & threats help Milano increase its revenue and brand
awareness and aware us from changes in external environment:

Opportunity:
1. Because of customer trend toward the online buying so In future we
will manage the online food ordering system.
2. Because there is trend that people along with fast food like to buy
sweet as well e.g Tehzeeb so after one or more year we introduce a
Milano sweets and Bakers that increases our Sales and gives
advantage over competitors.
3. By new opportunity in growing economy, CPEC can introduce new
machinery that is beneficial for easy baking and heating cause to
reduce cost and less electricity consume.
4. In order to bring differentiation in our product we will introduce new
product in future e.g. Pizza cone etc.

Threat
1. Health conscious campaigns are increased by health department of
Government and social media also play equal role in it. This cause
may drop our customers in future.
2. Intense competition occurs from pizza hut and other multinational
companies because they increase their franchises and branches
globally.

3.

A slump in the economy reducing customer's disposable income

spent on eating outside.
4. As the trend of online is increasing as forecasted our lack to adopt
new technology and new online promotion tools that may be adopt
by Pizzano and other decrease our sale.

Product Life Cycle:

Growth
Pizza of Milano Foods since spending
one year of effort they are in growth
stage with some good achievement
since they overcome their two
competitor in improving market share
and market growth but still long way to
beat market leader.
Stage of competition
In the market the situation favor more
perfect competition (sometimes called
pure competition) as it describes markets such that no participants are large
enough to have the market power to set the price of a homogeneous
Product. No entry and exit barrier makes it extremely easy to enter or exit a
perfectly competitive market.
Market situation
Analysis of market shows that there is lot of space available in which large number
of potential customer are available as from PLC we see that Milano is in growth
stage so effort are required for garbing those potential customer e.g. price could be
an effective strategy. So we expect with the passage of time we will be able to
improve our market share and market growth as because of market situation favors
us.

Strategy Selection

Internal Strengths (S)

SWOT
based
Strategies
External Opportunities (O)
5. Online food ordering
system.
6. Launch new product
category i.e. Milano
sweets and Bakers
7. CPEC will bring new
machinery , reduce
costs
8. Introduce new
product in future
that is Pizza cone.

External Threats (T)

5. Health conscious
campaigns are
increased
6. Intense competition
occurs
multinational
companies
7. Due to slump in
economy people eat
at home
8. Lack to adopt new
technology and new
online promotion
tools

5. IT expert owner and

skilled kitchen staff.
6. Location and layout
gives us a
competitive
advantage
7. Milano runs two
branches that gives
revenue
8. Use quality chicken
of as compared to
competitors

SO Strategies
Expand business
online (S1,O1)

Internal Weaknesses (W)

5. Difficulties in
maintaining a
unified brand image
due to low
differentiation.
6. No advertisement
7. Prices of Pizza and
Burgers are high
8. Pizzano has low
price and free home
delivery covers high
area.

WO Strategies
For high differentiation among
competitors(W1,O4)
Adoption of new machinery
able us to low price (W3,O3)

Launch new
product
line(S1,O4)
ST Strategies

WT Strategies

Quality overcome health

campaigns (S4,T1)

Penetration price strategy

(W3,T3)

Early adopter in online

promotion(S1,T4)

We recommend SO Strategies for Milano Pizza that is:

Expand business online

Scorpio Technique:

Retention
Org culture and
processes

Offering

Customer

Industry or
Market?

Positioning

Segmentation

Industry or Market:
Includes the industry orientation where we follow the industry leader & trends by other
companies and the market orientation are customer orientation only see the wants and
needs of customers.
We select the market orientation in which we prefer the customer desires and needs by
market research. We manage an online ordering system that is best for youth and
internet users. By online system we attract large number of customers and they also
have option easy to approach us in their own place. We also launch a pizza cone with
our skilled staff that our SO strategy able us to make new concept of Pizza in fast food
market.

The Customer:
Basically our customers are youth and fast food lovers we also launch a new product
line to attract more customers among competitors. We satisfy their needs by giving
superior value. Keep eye on strengths and opportunities we make customers by online
system and loyal to this Pizza brand .Customer definition will change as by making a
new product pizza cone we made a distinct image in the mind of the customer that we
can differentiation as well the online promotion and dealing will help us grab potential
customer as well.
Segmentation:
It depends on the position of your organization on the life cycle where it falls. Our
business falls in Growth so we work for the maturity stage. Because of online and new
product pizza cone segmentation will change because of potential customer. By
observing the opportunity of online selling is capable us to shift our services from growth
to maturity. Our make segments on the base of need and wants and after apply these
strategies we expand our business online and launch new product line so according to
this we also segmented by giving benefits.

Positioning:
By made a new product pizza cone we made a distinct image in the mind of the
customer that we can say differentiation. We do advertisements and also use online
promotional tools to grab the minds of the prospects. By our strategy we can do this and
deliver our business message to public in an effective way.

Customer Retention:
We continuously add value in our food items and emphasize in customer driven
activities that help us to retain our current customers and also give advantage for
convert the potential into actual customers. Our strategy is also for those online order

system current customers that adds value and the new product line drive the new
customers in our business.

Organization: Processes and Culture:

Our skilled staff able to deliver the services that customer hopes from us. Make sure the
promise by keep in mind the health factor. We shift our process online to unite the staff and
customer. This system changes the process of a business like dealing and payments
processes.

Offerings:
According to segmentation, we segment on want and needs and also emphasize on
benefits. Firstly our purpose is only formal product and now we move towards
augmented product. We give deals of buy 1 get 1 to offer value to our regular
customers. Also motivating towards our new product we will use penetration price
strategy.