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In todays business world, competition has
gone feral than ever. Competition is defined as thebattle between businesses to win consumer
acceptance and loyalty thus, even though they have
a high market share in their respective industries,
they cant be complacent enough with the goods andservices they cater. Businesses should always
understand that innovation is always the key to the
sustenance of its life. It will always be their leeway for
their own survival in the market.
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Objectives:
To have an actual experience of conducting a
research.
To learn the value or contribution of the
information gathered through research in theorganizations decision-making activity.
To apply the principles already acquired in
preparing recommendations relating to the
objective at hand.
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Activities:
1. We, a newly hired Marketing Managerof a Pizza Company in the Philippines,
were tasked by the management to
present our plan of action for theimprovement of the companys
performance.
2. Conducted an interview to at least 50respondents that represents our target
market.
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Activities
The following questions were considered inthe conduct of this research:
When thinking of Pizza, what is the first
brand that comes to your mind?
What brand of pizza have you eaten last?
If you are to buy a pizza now, what brand of
pizza will that be?
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Activities3. Tabulate the analysis and findings and present them using
the format given.
4. Determine who are the:
Market Leader
Market Follower
Market Challenger
5. Determine the following:
Market Share
Mind Share
Heart Share
6. Determine the RSOM (relative share of market):
Leader Brand
Follower Brand
Challenger Brand
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To compute Mind Share
Considering the answer to the question:(What brand of Pizza that comes first to your
mind?)
No. of counts of Brand A
Mind Share =
No. of counts of all brand
20
Mind share: = 40%
50
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Mind Share
40%
18%
16%
26%
Pizza hut
greenwich
yellow cab
Others
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To compute Market Share
Considering the answer to the question: (What
brand of Pizza have you eaten last?)
No. of counts of Brand A
Market Share =
No. of counts of all brand
16
Market Share: = 32%
50
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Market Share
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To compute Heart Share
Considering the answer to the question:(If you are to buy pizza now, what brand
will that be?)
No. of counts of Brand A
Heart Share =
No. of counts of all brand
14
Heart Share: = 28%
50
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Heart Share
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TablePizza Hut Greenwich Yellow Cab Pizza
F % F % F %Mind share 20 40 18 18 8 16
Market share 16 32 15 30 0 0
Heart share 14 28 7 14 13 26
Shakeys Others Total
F % F % F %
Mind share 0 0 13 26 50 100
Market share 10 20 9 18 50 100
Heart share 0 0 16 32 50 100
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To determine the Brands RSOM
(Relative Share of Market)Market share of leader brand
RSOM (LEADER BRAND) =
Market share of no. 2 brand
16
RSOM (LEADER BRAND) = 1.0715
Market share of brandRSOM (FOLLOWER/CHALLENGER) =
(No. 2/No. 1, No.3/No.1) Market share of leader brand
15
RSOM GREENWICH= =0.94
16
10
RSOM SHAKEYS= = .6316
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40 Pizza Hut 32 Pizza Hut 28 Pizza Hut 1.07
Greenwich 18 Greenwich 30 Yellow Cab 26 Greenwich 0.94
Yellow Cab 16 Shakeys 20 Greenwich 14 Shakeys 0.63
Others 26 Others 18 Others 32 Others 0.56
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The interpretation of the resulting RSOM indicates or numbers are as follows:
If your brands RSOM is: Then your competitive status is:
Greater than 1.00 Market leader or Champion status
Greater than 6.00 Formidable market leader
3.01 6.00 Dominant market leader
1.51 3.00 Strong market leader
1.01 1.50 Vulnerable market leader
0.31 1.00 Challenger status
0.61 1.00 Threatening challenger
0.31 0.60 Serious challenger
0.01 0.30 Contender status
0.16 0.30 Major contender
0.01 0.15 Minor contender
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Recommendations:
for Market LeaderExpand Total Market
Defend Market Share (Continuous
Product Innovation)Focus on Consumer Demand
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for Market Follower/ChallengerWillingness to Change
Improved Services
Product DifferentiationAssess its Product Focus
Intensive Advertising Strategy
Recommendations:
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