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M&M satisfies the customers need and wants as food is a basic need but pizza is considered to be a luxury food which in other words it is a want product. M&M also sells complementary goods (i.e. garlic bread) which in order for the company to make a profi

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Introduction

M&M's products M&M's main product is high quality pizza which is the sort of pizza which takes time and money to produce. Normally a popular pizza parlour sells high quality pizza depending on how much market share they own, profit, sales and costs. They may have gotten the idea of selling high quality pizza when they visited the USA and experienced high quality pizza which is similarly to their own pizza. As they sell high quality pizza means that they have competitions which are pizza hut, pizza go go and domino's pizza. However gaining market share for any pizzeria is not easy as currently the economy is in a recession so their customers would purchase their goods and services fewer times as customers have less disposable income. M&M provides a service to the customers which are a take away service and an eat-in restaurant. The advantage of both services is that customers have a choice where to eat however that will mean that the cost of these services will rise but they need to keep a budget. M&M satisfies the customers need and wants as food is a basic need but pizza is considered to be a luxury food which in other words it is a want product. M&M also sells complementary goods (i.e. garlic bread) which in order for the company to make a profit, market share and increase reputation. This also satisfies the customer and this makes the customer buy the complementary goods when they purchase pizza. Target market Target market is when the marketing department has to find out the business's current market, for example if there is a business which makes washing up liquid and there is another business makes washing up liquid. There is a sale of automatic dishwashers, this would be important on the business. They also find out the consumers' needs and wants by carrying out market research activities. ...read more.

Middle

Pizza hut also tries to advertise to people from different perspectives from movies so that people will grow an attention to their product. Pizza hut is also providing below the line promotions (providing offers and deals), pizza hut is probably doing this because of the recession of the late 2000s. Domino's pizza is doing similarly same but the business has recently put an ethnic food on the menu for to bring in a new target audience which is to increase sales and profits. Although pizza hut may be earning most of the market share due to the several of reasons such as having domino's pizza as a take away business only which decreases the chances of them to gain market share higher than pizza hut. Pizza go go is the business which has the least market share as it sells lower quality pizza which is mainly targeting for people who are under C1 or C2. Overall I presume that all the businesses have to try harder to fulfil the business objectives and extend the product life cycle as people have less disposable income and the recession occurrence. Extension strategies Businesses use an extension strategy whenever they believe that it will delay the time of the product declining this sort of strategy is mainly used in the saturation stage. An example of an extension strategy is diversifying the product range this for instance when pizza hut started sell pasta due to the fact that it will attract more customers. Product development- this is when the business decides on whether to improve or make any changes to the current product this point being is because for the product to be more appealing to the customers. This can be improved by the product's packaging, better quality and more. For example of this, is the Sony's Play station 3 console just launched and slimmer and perfected version of the model. ...read more.

Conclusion

has diversified its product range as it sells different flavour. As higher demand, the higher supply and then eventually the profits will increase and in the future they can use another extension strategy if this goes successful. The disadvantage of having a healthy eating option in the menu is that due to the late 2000s recession many people have less disposable income. Then people wouldn't have that much money to spend on many luxuries such as M&M products. Therefore M&M would earn minimum sales and profit, so it would be difficult for them to do an extension strategy which is doing a healthy eating option. If it would be difficult for them to introduce the healthy eating option then its product life cycle would be declined quicker if they haven't used extension strategy. This will also lead to of not having a greater part of the market share. Their sales and profit will decline even more when the specific target market demands for having a healthy eating options as it will impossible for M&M to supply. Loyalty card A loyalty card is when where a business offers a card issued to customers by the business for allowing them to receive for rewards or discounts if they continue to purchase goods and services there. For example Tesco's gives a customer a Tesco club if they wish and each time the customer buys goods, automatically the points will add to the club card then eventually they will be able to purchase goods which are giving the customer a chance to purchase a random product which is a below the line promotion. For example there are some loyalty cards that are different from club cards, which is something similar to what Costa coffee uses which is when a customer buys a coffee and they will stamps on their card and eventually they will get a free coffee from the number of stamps ...read more.

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