Over time most businesses will have goals to grow and expand. One growth option is to target a new market segment (known as market development). You need to determine whether the Pizza restaurant in the case below will need to modify its marketing mix as they pursue another target market.
Gino Pizza restaurant offers a unique range of high-quality pizzas. The restaurant is well known for its innovative and unique pizza tastes. They originally segmented their market based on demographics and attitudes. As a result, they decided that their target market would be “pizza purists”, “variety seekers” and “experience seekers” who are willing to pay a premium price for unique tastes. The business was built around a general positioning of: “Set new standards for pizza restaurants”. Their marketing mix/strategy is as follows:
|Marketing Mix Element||General Approach|
|Product||Unique range of high-quality pizzas. Use unusual ingredients (with choices such as oysters, kangaroo, avocado). Great wine list.|
|Price||Premium pricing. Membership discounts.|
|Place||Located in a beautiful historic building. No home delivery but offers takeaway option.|
|Promotion||Food magazines, word of mouth, digital marketing, targeted television commercials.|
|People||Knowledgeable, cheerful, approachable, multi-skilled and friendly staff.|
|Process||Reservation is a must. Impeccable and multilingual service. High ratio of serving personnel to patrons. The pizza is immediately prepared and served hot.|
|Physical Evidence||Intellectual atmosphere, surrounded by books and old portraits of intellectuals.|
The store has now decided to grow the business by offering “something for everyone” targeting ‘value seekers’ and ‘convenience seekers’ and have a ‘value’ based positioning focus. Please answer the following question using the textbox provided below:
Considering the restaurant’s new target market, explain how you would structure the new marketing mix, across the 7Ps, for the restaurant to successfully pursue its new target market. Feel free to make assumptions and try to be creative!