Executive Summary
The plan is to create frozen pizzas with high-quality criteria by purchasing raw materials from local producers. The products will have a high diffusion profile and a medium price, emphasizing quality and affordability. The presence of promotions and promotional campaigns will facilitate the distribution of the product in the market and increase its appeal quantitatively and then qualitatively. Staffing will include raw material buyers, cooks, and marketing and strategy staff. The teams will work flexible schedules and strive to maximize operating profits through collaboration and optimal work-to-value ratios.
SWOT Analysis
SWOT analysis is designed to assess a business’s market position comprehensively. The results are presented in Table 1.
Table 1 – SWOT Analysis of Frozen Pizza Company.
The main strengths of the frozen food business are related to the long shelf life of products and the possibility of easy distribution. Weaknesses of this business are related to consumer attitudes and environmental risks due to high energy costs and retention of interest in frozen products (“Frozen Pizza Market,” 2022). Business opportunities include expanding product lines, improving product quality, and increasing the product’s value in the industry. The main threats are caused by consumer behavior, which is gradually forgetting about frozen foods because consumers are concerned about their health.
Market Research
There is healthy competition in the finished goods industry without leaders. Each company has positive sides and competently manages the schemes of work with consumers, satisfying their interests. The quality varies everywhere, as well as the range of goods. The industry is evolving, and it is pretty easy for new suppliers to enter and exit.
A basic growth strategy should include managing the quality and quantity of products that will satisfy the target audience (“Frozen Pizza Market,” 2022). Any company should consider the potential unit volumes and the undulating nature of popularity in the industry. It is related to the target audience, so the growth strategy should focus on the dynamics of consumer interests.
The demographics of the target markets are such that frozen products have a limited scope. Low-income consumers are known to be the bulk, as frozen food is cheaper than prepared food. The main social criteria are people aged 20-30 years old, as this is usually college-educated at this time. Frozen food is the primary available food source, so the commitment of young people is high. At the same time, there is a correlation with consumers belonging to disability groups. This is probably due to limitations in mobility and cooking ability.
Firstly, the product preparation process should be simplified as much as possible, and the instructions should be easy to understand. Secondly, the interests of consumers should be taken into account, and the distribution of products should be encouraged with the best return on investment. Thirdly, products should not contain the information that their price corresponds to low quality. The primary strategy is to distribute the product based on the wishes of consumers, taking into account their need for the product.
Marketing Plan
Current market trends are such that the cost per pack rises, reaching 15-16 dollars per pack. The wholesale cost averages $4-5 dollars, which meets the needs of most consumers (“Frozen Pizza Market,” 2022). Based on these trends, the best price available to the target audience is no more than 10 dollars per pack in retail stores. This price will show consumers the quality of the core products (cheese, sauce, meat ingredients) and allow them to remain in demand.
The main sales tactic is distributing the product in retail stores and incentivizing it through promotions. One valuable and convenient strategy would be to sell combos, for example, with a drink or a 2+1 combo on pizzas of different flavors. This will first attract consumers in quantitative categories and then in qualitative ones. Promotion can occur through tastings, open company representatives meetings, and local producers’ cooperation. In particular, cooperation can be the primary way to attract and retain the audience.
Financial Plan
The gross profit of a business related to the production of frozen products will not be 20-25% of total revenue. This value is associated with increased energy costs and the first stages of a marketing campaign. You can expect revenue to increase gradually, but overall operating expenses will remain the same. Expenses include the cost of goods sold, initially set at 30% to cover the underlying business models.
The business’s break-point has to be at least 8 months, after which success in implementing financial technologies will be achieved. The main financial goals are to spend on producing goods, after which they are transferred to capital accumulation. Sources of financing should include reduction of growth in food processing areas and control of credit for production.
Manufacturing & Operational Plan
The short-term goals of the organization are:
- Distribution in local markets.
- Establishment of the first regular customers.
- Compensation for initial business contributions.
Mission: frozen food can and should satisfy customers because it is designed for their convenience and comfort, making the relationship with the company favorable and beneficial for both parties.
Vision: The company can delight customers, satisfy their tastes, and find a unique approach for everyone.
Operational activities may encompass procedures related to the distribution of the procedure. These include interaction, cash flow with stores, and revenue distribution. The effectiveness of these processes will inform further development and the nature of the interaction. The way of interaction with suppliers of essential ingredients that will be used to prepare frozen pizzas should be determined. In this regard, the team must have chef employees who will understand and recognize the suitable food products. People who will conduct quality control and manage the procurement of raw materials should also join the team.
Regarding organizational efficiency and its position in the market, it is advisable to resort to already experienced employees. However, newcomers should also be recruited to ensure the development and growth of the organization, as fresh ideas will facilitate its dynamic evolution. Initially, the company requires experienced people with skills and knowledge in sales and distribution. By gradually providing training, positive results can also be achieved with newcomers.
All employees will be offered a flexible schedule format with the option of telecommuting and on-site visits. Working hours will be limited by the labor code, but the main form of accounting will be weekly billing. They will perform the workload in the way that best suits them in terms of sleep-wake patterns and their relationship to production processes. The organization’s structure will allow them to receive feedback and keep abreast of significant developments, working effectively within their responsibilities and potential.
Reference
Frozen pizza market size – by size (personal size, medium size, large size, family size), by distribution channel (supermarkets & hypermarkets, convenience stores, online retailers, independent retailers), crust type, toppings & forecast 2023 – 2032. (2022). Global Market Insight. Web.