The
company is struggling to develop a product and pricing strategy.
Pizza
in a Cone*
In
2020, Toni of Toni’s Pizza* launched a new concept of eating pizza — pizza in a
cone! Instead of eating pizza in its traditional form, the pizza dough is eaten
like an ice cream cone. The cones are made through a patented device created by
Toni. This technique allows consumers to eat pizza on the go with one hand.
Therefore, the pizza does not drip with grease or sauce. The cones are
personalized with whatever fixings the consumer desires. Toni is currently
using a cost-based strategy for pricing. Market research indicated this product
would be a huge success. The organization even started franchising the concept
in 2021. Nevertheless, the company has had lackluster sales. Toni believes her
company needs a better product and pricing strategy. Read the scenario and
address the checklist items in line with the goals as a hired marketing
consultant by Toni.
*Disclaimer:
The organization and characters depicted in this exercise are fictional. Any
resemblance to real organizations or individuals is purely coincidental. This
exercise may include actual companies and brand names solely for instructional
purposes; this exercise is not associated with any such existing company or
brand name. All trademarks remain the property of their respective
owners.
Generic
Goals:
- Sell several
hundred thousand units. - Create
awareness of new product line to new, prospective clients. - Incorporate
digital marketing. - Hire more
employees. - Target B2B
clients. - Identify the
best distribution model for selling to customers.
Checklist:
Part
1–
- Provide a brief
introduction to your selected scenario and define the problem. - Describe
attributes of how marketers can differentiate their products from their
competitors. - Explain several
attributes from your chosen scenario to differentiate your product. - Explain the
packaging and labeling for your product. - Create a
proposed product portfolio design, including width, length, depth, and
consistency, similar to Figure 8.1 in your text.
Part
2–
- Integrate a
service with your product using the five determinants of service quality.
Provide specific examples for each determinant. - Describe the
concept of branding. - Create a brand
mantra for your product. - Design
secondary sources of the brand referencing similar to Figure 10-1, using
specific examples for your product. - Recommend three
incentives to market your product to customers. - Explain the
pricing goals using the four common pricing objectives. - Recommend a
pricing method.