Who is Pizza Esame?
Pizza Esame is a chain of pizza takeaways based in Greater Manchester, who want to expand their business into another major city in the UK, for example London or Birmingham. They started their business 15 years ago with only one takeaway in the city, but they now have several. This therefore shows their ability to expand and that they are able to take risks, with the help of marketing research.
Pizza Esame’s Aim:
Their aim is to open 5 new takeaways over the course of eight weeks, with a marketing budget of £60,000, but they wish to carry out some market research before doing so and they need a budget to help finance this.
Importance of market research:
Market research is the process of assessing the viability of a new good or service through research conducted directly with the consumer, which allows a company to discover the target market and record feedback from the consumers regarding interest in the product. It is important that Pizza Esame conducts market research because it will allow managers to have an idea of the consumer’s perception of the service being provided, and if no research is done Pizza Esame wouldn’t be able to evaluate whether or not it is a good idea. This would therefore help to reduce the risk of Pizza Esame being unsure of their expansion plan. Kogan Page is a trusted organisation who has been providing marketing advice for 50 years, and they suggest that market research is necessary when trying to satisfy the needs of consumers and trying to take the lead over other competitors in the market, as well as being informed about the current market in order to not make several mistakes, and to also learn from mistakes made by other businesses.
Types of Research:
Primary and Secondary research are the two main types of research used by any business. Primary research involves gathering new data that has not been collected before whereas secondary research involves using existing data that has already been produced. Market research may be classified in terms of its content into qualitative or quantitative research. All four methods are involved in a method called triangulation which uses evidence from multiple sources and combines multiple methods to gather data.
This is research based on larger samples and is, therefore, more statistically valid and more concerned with the use of data. The data collected using this method of research would usually be in numerical form, for example ‘3 out of 5 customers will buy a new food product after being offered a free in-store sample ‘.A quantitative approach allows the researcher to examine the relationship between any two variables. The data can then be used to look for cause and effect relationships as well as identifying trends and future project trends, and therefore, can be used to make predictions.
Pizza Esame could benefit from using quantitative research as it is found to be more reliable as responses from consumers are said to be more...