Developing A Marketing Plan For A Small Business - Essay: Napols Pizza.

1. Identify and conduct a stakeholder analysis

2. Develop a marketing plan for a small business.

The business concept is an idea for the business. The business concept of Napols Pizza is that it serves the domestic and local regions of New Zealand. It is a small business which serves few regions of the nation. There are varieties of pizzas offered by the business to attract all type of customer segments.

The vision of the business is to serve the high quality food products to the consumers which can satisfy their taste buds

The mission statement of the business is to rapidly expand the business and become one of the highly recognized pizza chains in New Zealand.

• It is the primary goal of the business to target the children and youngsters with an increasing rate
• The second goal is to extend the market reach by having more business chains in the country

• The key objective of the business is to offer some diverse taste to the individuals with number of varieties in the pizza
• The second objective is to offer food product with high quality but at lower price range as comforted to other food outlets serving pizzas.

The Napols Pizza is a sole proprietorship and the owner has its complete control over this small business. The owner is the only one in the Napols Pizza which is solely responsible for the profits, losses and the risks of the business. The key customers of the business are the students of universities, youngsters as well as the local residents. The location of the business is one of the most favoured place of New Zealand i.e. Auckland, which is presently the most urban and metropolitan areas. The company has selected Auckland as there are several potential customers and it becomes easy for the business to fetch attention of the individuals from urban localities.

The business offerings i.e. the products and services which are offered to the customers are the variety of pizzas as well as beverages. There are also several combos for gathering the attention of the groups as well as the kids. The competitive advantages which can be attained by the business is that there are not present more numbers of local pizza outlets as well as the prices are comparatively less so taut they can be easily affordable by the youngsters and school and college going students. There are also variety of pizza which is made up of cereals base rather than wheat for in caressing the attention of the adults who are conscious for their diet and fitness. Thus all these offer several competitive advantages to the business such as high customer base and brand recognition in the local regions.

The background of the owner of Napols Pizza is that the individual has attained a degree in culinary arts as well as hospitality management. Before opening this small business, the individuals used to work as chef in one of the renowned hotel, of New Zealand.

The business background is that, it was established four months ago and now there is planning of several strategic moves and approaches for fetching the attention of the masses.

The purpose of this business plan is to identify the significant potential opportunities available for the business to grow and develop. With this business plan, there will also be able to have analysis about the strengths and weaknesses of the business and the environmental analysis. This will help the small business to make appropriate plan for further development.

The critical success factors for the business is its prime location which is a residential area and can easily attract the local individuals. The second critical success factors are the people i.e. chefs which are great cooks and the waiters that serve the customers in a most efficient manner. The third critical are the processes; there are numerous varieties as well as diverse products for all customer segments being children, teenage or adults. The next critical success factor is the prices; these are the factors which attracts the customers because they are comparatively low from the competitors’ prices (Trkman, 2010).

Developing a Business Profile

The food and beverage industry is rising with an increasing rate. The characteristics of the industry are that there must be excellent customer service for any business to grow. There are changing needs of the consumers, thus it is essential that there must be innovations for satisfying the diverse customer needs and requirements (Granato, et al., 2010).

The trends in the industry are that there are foods products which are organic in nature as well as more of healthy commodities are used to prepare such thing such more use of green veggies, cereals, oats, fruits etc. (Davis, et al., 2013). Another trend of the industry is the home delivery of the food products. The small business for extending their reach serves the customers at their gateways by the means of home delivery. Thus, this helps the businesses in having increased customer base (Hawkes, 2007).

There are few direct competitors of the business in the market which gives tough competition to the growth of the business. These competitors are Hell Pizza, Pizza Club etc.

There are few indirect competitors of the business in the market that also impacts the business and its customer base. The indirect competitors are the recognized pizza chains such as Pizza Hut, Domino’s Pizza, etc. There are customers who prefer going to the recognized pizza outlets only. Thus such market tendency impacts the sales of the local pizza outlets.

There has been formulation of a competitive strategy for sustaining the market competition. The competitive strategy is that the small business once get well-recognized in the local areas than there will be open a franchise of the same in other areas as well as there will also initiate offering service of home delivery of the pizzas in the nearby regions (Porter, 2008).

There are high rules and regulations in NZ as well as the Government changes in every three years therefore there are high chances of restructuring of laws and regulations. The labour force is also extremely expensive but competent in nature. For starting any new business, it is very much essential to have huge capital investments. Therefore, Napolas Pizza will be requiring high amount of capital for having more efficient labour and business expansion in future (Dragosdumitrachi, 2015).

In the past decade, there has been a significant growth of New Zealand economy and the nation is well known as high-income economy. There are decreased investments in the research and development, thus the country is depended on other nations for new and innovative technology. There is low rate of inflation and consumers have high buying power. Thus, there are enough chances for the growth of the small business in the regions of NZ (Lucintel, 2013).

From the social perspective of bushiness, the country is the third least corrupt nation which support the new business as well as FDIs. The businesses are encouraged without making any kind of discrimination and inequitable behaviours because of various factors. There are equal opportunities available for all kind of businesses. As well as the nation also have improved association with overseas countries which helps in maintaining a social balance among the globalised world.

Business Concept

The education system of New Zealand is much powerful and run through OECD. There is an increasing use of internet and IT in the rural as well as urban areas. Therefore, it is beneficial for the new business to take use of innovative technologies and achieve business development (Marketresearchreports, 2017).

The nation has innovative practices for keeping the nation safe from unwanted waste, garbage, pollution and dust. There is a unique ecological system in the country which supports the environmental sustainability. The companies are also aware of the laws related to the environmental safety. Thus, the businesses remain cautious while performing business activities so that there is no or minimum impact caused on the environment and the natural resources (Higgins and Dibden, 2011).

There is offered trade and business freedom to the organisations. There are legal factors which support the development of new business as well as also offer support to the small scale organisations. The laws and regulations have their vital role in the flourishing of the business society in New Zealand (Marketresearchreports, 2017).

• The biggest strength of Napolas Pizza is its low-cost pricing. The food products are offered at comparatively low prices from the competitors. Thus, it attracts numerous potential customers who want high quality food products at low prices.
• The second key strength of the business is that it is established at one of the most crowded place which offers the competitive advantage of fetching the attention of increased number of customers.

• The primary weakness is the intense market competition. There are numerous pizza outlets both regionally as well as nationally which have a high brand visibility.
• The second weakness is that, it is new and small business. Thus, it will be very difficult for the organisation to gather the attention of the customers and serve them with the products which match their preferences and taste.

• There is an opportunity for Napolas Pizza that it can diversify its business by having additions’ in the food menu such as offering products other than pizza to the customers. So that there can be increased customer base.
• Another opportunity is of business expansion. Once the business attained recognition and braid visibility, it becomes easy for the organisation to expand in several other regions (Sharma, Teret and Brownell, 2010).

• There is an increasing threat of the competitors. There are several other restaurants, cafes and outlets which serve quality pizza. Thus, there is no guarantee that Napolas Pizza will be able to maintain its position in such a competitive market.
• There is also a threat of substitutes offered by the other outlets (Godfray, et al., 2010).

There are majorly five key stakeholders of Napolas Pizza. These key stakeholders comprises of customers, owner, creditors, employees and the Government. 

Stakeholders	Stakeholder Impact (this shows the impact of business on the stakeholders)	Assessment of Impact (this shows the influence of the key stakeholders on the business)	Potential Strategies
Customers	High	High	To have a feedback session from which there can be performed analysis of the customers’ experiences
Owner	High	High	To check the business activities on a continuous basis and having meetings with the other stakeholders
Creditors	Medium	Medium	To have meetings with the creditors mad ensure them regarding the sustainability and dev elopement of eth business.
Employees	Low	High	To have an open forum discussion by which there can be gathered the views and opinions of the employees as well as involving them in decision making.
Government	Low	Low	To involve Government by working by following all the rules and regulations as well as having practices which are responsible for social development

(Varvasovszky and Brugha, 2000; Jepsen and Eskerod, 2009).

Customer Group: Teenagers and Youngsters

Value Preposition: The value preposition or benefit offered to the teenagers and youngsters is that the prices are squat thus it buying the food products is economical for them. There is a benefit of getting pocket friendly products with huge variety.

Customer Group: Adults

Value Preposition: The value preposition or benefit offered to the adults is that there is offered healthy products too. There is also available Pizzas wit cereals base so that it can help the adults in remaining fit and also save them from the negative implications of fast food.

• The marketing objectives of the small business i.e. Napolas Pizza is to increase its sales by the mains of huge varieties and low cost pricing.
• The organisation wants to attracts the potential customers and have a grip on them with the divers set of tastes as per the requirement of the customers.
• Another objective of the business is to have increased born visibility and rapid extension in the other unatpped regions of NZ.

The KPIs will help the business in analysing and measuring that in what ratio and how efficiently the business is achieving its objectives. Following is the KPIs of Napolas Pizza:

• Customer Retention and Satisfaction
• Customer Acquisition Cost
• Sales Revenue
• Percentage of product defects
• Number of customers
• Revenues Vs Expenses (Parmenter, 2015)

The business offers quality and fresh pizzas. There are offered both non-vegetarian as well as vegetarian varieties. There is localizing of the flavours for getting the attention of the regional customers. There are also offered various kinds of beverages with pizzas so that people can enjoy their meals. There is offered extensive varieties of pizzas as well as there is also variety in the crust which includes wheat based or cereal based crusts (Christian and Gereffi, 2010).

The place where the business is established is Auckland and also at one of the most crowded place. This will benefit the organisation in attaining increased customer base. As it one of most developed pace, there is high demand for such food products by the families, children, youngsters etc.

The prices of the products are comparatively very low. This is the cost-leadership strategy of the business for having increased number of customers. The organisation will offer the products at very nominal charges as well as there are also combos and meals which are at economic prices so that all range of customer segments can buy them easily.

Vision and Mission for the business

For the promotion and advertising, the business has selected various means such as newspaper advertisements, radio advertisements, pamphlets, hoardings, posters as well as online advertisements. The customers will be getting pop-notification on various online sites. There will be distribution of pamphlets to the youngsters so that they are aware of the products of Napolas Pizza (Nezakati, et al., 2011).

There is placement of trained and well-organised staff in the organisation so that the customers can have a good experience of their visit. There are also highly efficient chefs that prepare appetizing dishes.

There are efficient business processes in which the orders are handled. The food is served on the tables as well as there is also available home delivery of the products. There are robust processes which offers rapid making of the pizzas so that the customers do not have goo wait for long for the pizzas.

The restaurant is well spacious and has separate sitting arrangements for couples, families and individual. There is played soft music for having a soothing environment for the customers. The outlet setup is highly attractive which fascinate the youngsters to have an enjoyable time there. There is also a separate small playing zone for the entertainment of the children so that the families can have a peaceful time with kids (Lin, 2011).

Marketing Activities	Budget for the activities
Newspaper Advertisements	$1000
Advertisements on Radio	$5000
Posters and Hoardings	$2500
Distribution of Pamphlets	$1000
Online Advertisements	$10,000

Promotional Activities	Timeline
Newspaper Advertisements	In the first two months of business
Advertisements on Radio	In the second and third month of business
Posters and Hoardings	Before initiating the business till next 30 days of start up
Distribution of Pamphlets	Before initiating the business till next 15 days of start up
Online Advertisements	15 days prior to the business set up and ongoing till next three months of establishment

As Napolas Pizza is a small business thus, the best mode of communication for the business will be face to face communication. Through face to face communication, there is developing a personal association among the customers and the business which helps in selling the services or products to the customers (Asheim, Coenen and Vang, 2007). There are several advantages of face to face communication to Napolas Pizza, such as:

• The first advantage is faster resolution of queries. At the time of purchasing a product and specially a food product, a consumer has diverse set of preferences which results kin queries. Therefore, face to face communication helps in answering all the queries of the consumers and helps them in making a satisfying purchase (Storper and Venables, 2004).
• The second advantage is that it can help in converting a non-buyer to a potential buyer. Through face-to face communication, the individuals can be influenced for making a purchase. Influencing people is the most powerful outcome of face to face communication as communicating directly without any means of restrictions helps the individuals in having a direct impact over the listener. And thus, by the power of influence, there can be generation of potential buyers (Cook and Doyle, 2002).
• The third most benefit of face to face communication is that there is understanding of the consumers’ mindset and viewpoints which is not possible to understand I other mode of communications such as e-mail, phone call, etc. the individuals get to understand the gesture of the consumers that whether they are interested in buying or not. It certainly helps them in having their focus on the potential buyers rather than all set of individuals (Kupritz and Cowell, 2011).

There are several recruitment methods by which Napolas can have recruitment of efficient candidates. But the most appropriate for the business will be external sourcing. Through external sourcing such as trade publication announcements, newspaper advertisements, job boards, etc. The external sourcing helps in finding candidates from more diverse areas which may high potentials. The candidate should be selected by the means of external sourcing carry forward with interviewing process so that there can be gained appropriate knowledge about the person before appointing the individual as a full time employee within the business (Kapse, Patil and Patil, 2012). Following are the advantages of recruiting through external sourcing:

• The key advantage of external sourcing recruitment is that it fetches the attention of individuals from more extended areas as the advertisements are public which helps in gathering the attention of the potential candidates. Thus, the business is not restricted to select from very few individuals. There are diverse options for the organisation to have selection of the most appropriate candidates (Schweyer, 2010).
• The second advantage is that the organisation gets an opportunity to have faster recruitments. In internal sourcing or through any other recruitment method, there is a probability that it will take time due to number reasons but in external sourcing there is vast announcement for the vacancy by various methods. Thus there are more chances that the vacancies can be filled (Compton, et al., 2009). 

Risks Identified	Impact of each risk	Probability of Occurrence
Poor customer service	The major impact of this risk will be on the growth and sustainability of the business. The poor customer service will result in higher rate of customer dissatisfaction. And if the customers are dissatisfied there are least chances that they will come back to make a second purchase. The brand value also deteriorates due to word-of mouth adversity (Brady and Cronin 2001).	The probability of the occurrence is high but it can be controlled or minimized once the issue has been identified.
Substitutes available	The major impact of this risk will be on the sales and revenue of the business. The market is highly competitive and the availability of the substitutes makes it difficult for the bushiness to have a marked and recognized presence. The customers easily switch to the substitute products once they found it valuable and more satisfactory. Therefore, there are numerous negative implications for the business due to availability of substitutes such as declined sales, customer base, revenues and brand visibility (Sadgrove, 2016).	The probability of the occurrence of the risk is high as there are several new entrants in this business which delivers identical or substitute on a continuous basis.
Cost of materials increased	The major impact of this risk will be on the production department as well as on the prices of the expenses and revenues. The business has a strategy to sell its products at low prices. But the increase in the material cost will result in high cost of production. Thus the squat prices and high costs will result in less revenue margin (Jüttner and Ziegenbein, 2009).	The probability of the occurrence is medium as there is change in the costs of the materials because of several afctors. Thus, it is not essential that these factors will take place on a continuous basis.
Increased wage expense	The major impact of this risk will be on the business and also on the process efficiency and the overall costs. As the costs of labour is already high in NZ and if there will be increased wage expenses then it will result in increased cost for the organisation. And if the needs are not met, then there will be stoppage of the production process which may impact the customers’ services as well as the sales (Czinkota, et al., 2009).	The probability of the occurrence of the risk is low as once the labours are appointed then there are changes in the wage structure at a very slow arte such as on annual basis. Therefore, the risk is majorly a one-time risk i.e. at the time of acquiring labours for the operations.
Slow response to marketing campaign	The major impact of this risk will be on the customer base as well as on the sales of the business. If there is slow response to the marketing campaign, then it will not be able to attract the customers. Therefore, the sales will not be increased and so the profits of the business. The decrease number of customers also has a negative impact over the business in terms of future sustainability and brand visibility.	The probability of the occurrence of the risk is low as there is a need of effective marketing response once. And if there is good response than it is easy to attract the consumers in future.

Risks Identified	Risk Management Strategy	Action plan
Poor customer service	To overcome the risk of poor customer service, it is essential to evaluate all the processes and the food products so that there can be identified the actual issues. There must also be taken feedbacks and suggestions from the customers so that the issue of poor services can be resolved on an immediate basis.	·         Mangers will take customer’s feedbacks and suggestions ·         A proper quality check will take place of the processes
Substitutes available	Risk management strategy for the risk of availability of substitutes is that the business must diversify its product range. There must be additional items in the menu so that the customers can be retained by those products instead of going to the competitor for the substitute (Lam, 2014).	·         The management will include more number of food products
Cost of materials increased	This risk can be overcome by purchasing the materials from other suppliers who can provide the materials at an appropriate rate as well as there can be storage of the products which are imperishable in nature so that the increased costs do not affects the production.	·         Storage of materials ·         Finding new suppliers
Increased wage expense	Risk management strategy for the risk of increased labour cost is to hire the expatriates as they are ready to work at lower prices as well as the business must take more efficient sue of the labours if they are charged high. There must be decrease number of workers but the work should be increased of each of them.	·         Recruit expatriates ·         Increase the level of productivity
Slow response to marketing campaign	To overcome the risk of slow response to marketing campaign, the business must evaluate the marketing activities on a continuous basis so that the response can be measured and appropriate strategies can be planned for getting increased response of the marketing campaigns and activities and more number of sales can be generated.	·         Have new marketing strategies ·         Measuring response at initial level

(Katz and Green, 2009). 

Timeline

Activities	May, 17	June, 17	July, 17	Aug. 17	Sep, 17	Oct. 17	Nov. 17
Market Research
Overall architecture
Project Planning
Detail Design
Marketing activities
Recruitments
Milestone 1: Acquiring sales
Promotional activities
Diversifying product portfolio
Milestone 2: Increased Sales

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