New Product Development for Pizza 4P's | Final Report Product Management

lOMoAR cPSD| 47206071
BỘ GIÁO DỤC VÀ ĐẠO TẠO
TRƯỜNG ĐẠI HỌC HOA SEN FINAL REPORT
TOPIC: NEW PRODUCT FOR PIZZA 4P’S Subject: Product Management Class: 0300 Instructor: TRẦN THỊ THU HIỀN Group: 6
1. Đinh Nguyễn Như Ý 22013630 2. Trần Thảo Anh 22107763 3.
Lại Thụy Mai Vy 22104782 4. Nguyễn Huỳnh Hoàng Anh
22122852 5. Nguyễn Huỳnh Hoàng Anh
22122852 6. Hoàng Minh Hiếu 22114247
TP. Hồ CHí Minh, tháng 11 năm 2023 lOMoAR cPSD| 47206071 TABLE OF CONTENT TABLE OF
TABLES...................................................................................................................v TABLE OF
IMAGES.................................................................................................................vi
PHASE 1: OPPORTUNITY
IDENTIFICATION................................................................1 1.1 Micro
environment.................................................................................................................. 1 1.1.1.
Customers:............................................................................................................................................ .......... 1 1.1.2. Solid supply
source:................................................................................................................................... 2 1.1.3. Dedicated
staff:............................................................................................................................................. 2 1.1.4. Pizza 4P’s
competitors:............................................................................................................................2 1.2 Macro
environment................................................................................................................. 3 1.2.1.
Demographics....................................................................................................................................... ........ 3 1.2.2.
Economy................................................................................................................................................ ........... 4 1.2.3.
Natural.................................................................................................................................................. ............ 4 1.2.3.
Technology:........................................................................................................................................... ......... 4
1.2.5. Political and social
environment........................................................................................................5 1.3
Opportunities.................................................................................................................. .......... 6 1.3.1. Opportunity 1: Online Ordering and Delivery
Optimization...............................................6
1.3.2. Opportunity 2: Menu Innovation and Specialized Offerings................................................6
1.3.3. Opportunity 3: “From farm to
table”:...............................................................................................7
1.3.4. Opportunity 4: Tech Integration for Customer Engagement...............................................7
1.3.5. Opportunity 5: Expansion and
Collaborations............................................................................7 lOMoAR cPSD| 47206071 1.4 Product Innovation Charter
(PIC).......................................................................................8 1.4.1
Background........................................................................................................................................... .......... 8 1.4.2.
Focus..................................................................................................................................................... ............. 8 1.4.3. Goals and
Objectives..................................................................................................................................9 1.4.4. Degree of
innovativeness........................................................................................................................9 1.4.5.
Quality................................................................................................................................................... ............ 9
PHASE 2: CONCEPT
GENERATION................................................................................10 2.1. Forming
Ideas....................................................................................................................... 10 2.2 VRIN
Model............................................................................................................................ 15 2.3. Product
Concepts.................................................................................................................. 19
PHASE 3: CONCEPT
EVALUATION................................................................................24 3.1 Initial
reaction........................................................................................................................ 24 3.2 Concept testing
survey..........................................................................................................25 3.3 Scoring
model......................................................................................................................... 29
PHASE 4: PRODUCT
DEVELOPMENT...........................................................................32 4.1 Product
Design....................................................................................................................... 32 4.2 Product
Architecture............................................................................................................32 4.3
Prototype............................................................................................................................. .... 34
PHASE 5: LAUNCHING
PRODUCT..................................................................................35 5.1 Market
testing........................................................................................................................ 35 5.2 Strategic Launch
Planning...................................................................................................35 5.3
Differentiation..................................................................................................................... lOMoAR cPSD| 47206071 ... 36 Table 8. Differentiation of
rivals.................................................................................................36 5.4
Positioning.......................................................................................................................... ..... 36 5.5
Branding............................................................................................................................. ..... 37 5.6
Price.................................................................................................................................... ...... 38 5.7
Place.................................................................................................................................... ..... 38 5.8
Promotion........................................................................................................................... ..... 38 5.9 ATAR
model........................................................................................................................... 39
CONCLUSION........................................................................................................ ..................41 lOMoAR cPSD| 47206071 ABSTRACT
The following report provides an overview of the collaborative process and
team discussions regarding the planning and development of Pizza 4P's new pasta
product line. After considering the current state of the product and its future
direction, our team made the decision to focus on developing the concept named
Purple dragon fruit pasta as a new product in the Product Management course. This
choice was made after carefully considering both subjective and objective factors,
taking into account customer preferences and behaviors. lOMoAR cPSD| 47206071 ACKNOWLEDGEMENT
We would like to sincerely thank and deeply appreciate the HOA SEN
University instructors for setting up the necessary conditions for us to have a
valuable subject. We also have a great deal of knowledge with the research and
product development process after taking this course.
We also like to express our gratitude to Lecturer Tran Thi Thu Hien for her
enthusiastic leadership and guidance during the course of our education.
Errors may inevitably occur during the test and report-writing processes and
I sincerely hope that you will pardon them. Simultaneously, the study has
limitations owing to its restricted theoretical background and practical experience.
As such, we welcome your feedback and recommendations to expand our
knowledge base. in anticipation of report. lOMoAR cPSD| 47206071 TABLE OF TABLES
Table 1. Perceptual Map for new Pizza 4P’s product ideas............................................11
Table 2. VRIN Model......................................................................................................16
Table 3. Product concept.................................................................................................20
Table 4. Table of initial reaction technique.....................................................................24
Table 5. Scoring Model...................................................................................................30
Table 6. Product Architecture..........................................................................................32
Table 7. Strategic Launch Planning.................................................................................35
Table 8. Differentiation of rivals.....................................................................................36 lOMoAR cPSD| 47206071 TABLE OF IMAGES
Image 1. Perceptual mapping..........................................................................................12
Image 2. Product design..................................................................................................32
Image 3. Logo..................................................................................................................37 lOMoAR cPSD| 47206071
TEAM MEMBERS EVALUATION Full name Đinh Trần Thảo Lại Thụy Trần Thị Nguyễn Hoàng SID Nguyễn Anh - Mai Vy - Thanh Đào Huỳnh Minh Như Ý - 22107763 22104782 - 22122687 Hoàng Anh Hiếu- 22013630 - 22122852 22114247 Attending 20 20 20 20 20 20 Meeting on Time (20 %) Contributing to 20 20 20 20 20 20 Discussion (20 %) Completing 15 20 20 20 20 20 Tasks on Time (20 %) Delivering High 20 20 20 20 20 20 Quality Tasks (20 %) Presentation 20 20 20 20 20 20 (20 %) Overall Score 95 100 100 100 100 100 (100 %)
PHASE 1: OPPORTUNITY IDENTIFICATION lOMoAR cPSD| 47206071 1.1 Micro environment 1.1.1. Customers:
Pizza 4P's targets consumers 18 years and older who live and work in big
cities such as Ho Chi Minh City, Hanoi, Da Nang, and Hai Phong. In addition,
eating out is also becoming an essential part of modern life due to the increasing
demand for making friends, meeting business partners, most of whom are students
or people with stable income. Outside careers increase depending on where they
live. For that reason, Pizza 4P's also aims to be stimulated by the simplicity and
appeal of the food, the quality of the need to contact and meet, and the standards
of Vietnamese consumers about delicious foods. Customers who love food, want
to gather to eat, enjoy food outside, skip the common parties, or maybe couples, or
families. The family wants to have a sunset dinner together at a restaurant.cheese
will create favorable and loving consumers, which will make them willing to pay
for its product food 12 of life, immerse yourself in the meals and joys of life offered
by Pizza 4P's. Because the price of products at Pizza 4P's ranges from 250,000 -
500,000VND/serving. With the integration of many cultures, the love for cheese is
one of the top reasons why Pizza 4P's wants to reach customers with a fairly
average income - over 7 million VND a month. Promoting foreign dishes such as
Pizza 4P's - which produces 8 types of cheese with different flavors Pizza 4P's also
regularly launches pizzas with unique and new flavors, making it one of the groups
of modern people. , likes to try new things and is also someone who enjoys life. It
is a fake flavor. Different businesses have helped businesses strongly enter the
Vietnamese market. Pizza 4P's guides consumers 18 years and older to live and
work in big cities like Cho City. Pizza 4P's hits VNM of Vietnamese people who love cheese for its customers
1.1.2. Solid supply source:
Pizza 4P's owns many sustainable local sources of supply, ensuring the
deliciousness of the ingredients. This contributes to the high quality of the dish.
1.1.3. Dedicated staff: lOMoAR cPSD| 47206071
The attitude and service provided at Pizza 4P's brings comfort to customers.
Staff are very professional and enthusiastic.
1.1.4. Pizza 4P’s competitors: 1.1.4.1. Pizza Hut Advantage:
- Global scale: Pizza Hut has an extensive global network, which can provide
marketing and promotional strategies globally.
- Strong brand: Pizza Hut is a famous brand that can take advantage of the benefits
of brand recognition to attract customers. Defect:
- Mass production of products: Due to its large scale, Pizza Hut may have to use
mass production of products, reducing product personalization.
- High advertising costs: Global advertising costs can be quite a challenge,
especially for small businesses. 1.1.4.2. Pizza Company Advantage:
- Localization: The Pizza Company can focus on creating products and services that
meet the specific needs of the local market.
- Menu diversity: Offering a variety of pizzas and other conscious dishes to meet the diversity of the market. Defect:
- Global regulatory regime: Compared to Pizza Hut, The Pizza Company's
international regulation may limit its ability to compete globally.
- Brand recognition may be lower: Compared to Pizza Hut, The Pizza Company's
brand may be less strongly recognized. 1.1.4.3. Peperonies Advantage:
- Quality Attributes: Peperonies can focus on providing high quality products and
can use this strategy to attract customers. lOMoAR cPSD| 47206071
- Operational in business: Due to its smaller size, Peperonies can be more active in
laboratory work and respond quickly to the market. Defect:
- Scale regime and long-range influence: Due to its small size, Peperonies may have
difficulty competing with large chains on price and advertising.
- Brand awareness risk: If Peperonies does not have a strong follow-up strategy, they
may have difficulty building brand awareness. 1.2 Macro environment
Pizza 4P's (Platform personal pizza for pizza) is currently one of the most
successful pizza brands in Vietnam with a scale of 25 establishments, famous for
its homemade cheese founded by Sanae and Yosuke Masuko. Achieving success
like today, the Pizza 4P's brand has gone through a long path of development. 1.2.1. Demographics
Our country's current population is more than 98 million people (March 13,
2022). The trend of Vietnamese people switching from street food to fast food is
increasingly favored because of convenience and more professional and attentive service.
Vietnam has a largely young population and international students,
foreigners which are the group that accounts for the majority of the demand for fast food.
=> With the above advantages, investing in food is extremely reasonable.
Pizza 4P's has grasped this trend and has been growing strongly in the present. 1.2.2. Economy
Pizza 4PS's equity as of June 30, 2023 reached 218.2 billion VND, an
increase of 55% compared to the previous period; The debt/equity ratios decreased
from 1.58 to 1.03 times; Outstanding bond debt/equity is 0.064 times. lOMoAR cPSD| 47206071
From 2022, Pizza 4PS's business results have improved with profit after tax
of 83.6 billion VND while the previous 2 years lost nearly 38 billion VND and 21 billion VND respectively.
In 2022, Pizza 4PS paid 7.1 billion VND of bond principal and about 2.1
billion VND of interest, thereby reducing the bond principal balance as of
December 31, 2022 to 13.9 billion VND.
In 2022, Pizza 4PS served more than 3.5 million customers at the store,
double the number of 1.7 million customers in 2021. 1.2.3. Natural
Vietnamese people have a tradition of eating bread, and pizza also has main
ingredients quite similar to Vietnamese bread, so Pizza 4P's in particular and other
Pizzas in general are easily accepted and loved by Vietnamese people. Consider
pizza as a familiar dish. Pizza is very suitable for every meal, has high nutritional
content, has wheat flour to help you feel fuller and ensure all activities of the day.
Vietnamese people love to eat hot food, like in a tray of rice we can easily eat. It's
easy to see that the dishes and rice are hot. Pizza 4P's is served with a hot cake
taken from the earthenware oven and uses firewood to burn. Currently, Pizza 4P's
is present in the frozen Pizza market to serve customers far away from branches.
Pizza 4P's provides detailed instructions to customers on how to bake and reheat
the cake to ensure preservation. Original taste of cake. 1.2.3. Technology:
Behind Pizza 4P's high-end service is the "support" of an entire technology
system built and operated by the company's staff. Taking on the position of
Director of Innovation Technology at this brand is Kelly Tran. Previously, the IT
team's work here was as simple as ensuring the camera systems, point of sale
equipment or wifi,... worked normally. However, when Covid-19 hit, Pizza 4P's
had to find new sources of revenue in the context of restaurants having to close
due to social distancing orders. This brand has abandoned its "principle" of only
serving at restaurants for 9 years. Last year to deploy online sales channels and lOMoAR cPSD| 47206071
home delivery. However, instead of switching to applications like Grab, Gojek or
Now, Pizza 4P's built a sales channel through its own website and even developed
a battery in the thermos box to keep the food in perfect condition. Not only taking
orders and delivering orders, but all other processes at Pizza 4P's 25 stores are
managed by 100% "home-made" technology such as electronic invoices and
building customer feedback systems. customers, partners, and employees. After
only 8 months of developing the ordering system on the website and home delivery,
this sales channel has helped Pizza 4P's earn 30 billion VND, deliver more than
60,000 orders and grow monthly. At the same time, this brand's website is also in
the top 10 e-commerce in Vietnam, next to big names such as Tiki, Lazada, Shopee,...
1.2.5. Political and social environment
1.2.5.1. Pizza 4P's focuses on employee satisfaction
Employees can directly visit and practice at the restaurant's production
farms. Through this, employees will better understand the production process as
well as the difficulties in producing clean vegetables, from which they will
appreciate food more, avoid food waste, and can also explain to diners about the ingredients in the dish
1.2.5.2. Contribution activities and connection with the community
In recent years, this brand's social activities have appeared increasingly
dense. The most prominent of these is the charity project "Table For Two" with the
extraction of 1% of the company's profits to bring meals full of smiles to children
in Van Ho district, Son La province.
1.2.5.3. Research and develop a menu that includes many healthy dishes:
If you pay attention, you will see that about 25% of 4P's appetizer menu is
vegetable dishes and the restaurant also has many options for vegetarians. This is
also one of the moves to encourage people to eat a more balanced and healthier diet. lOMoAR cPSD| 47206071
1.2.5.4. Environmental protection:
Pizza 4P's is currently implementing many unique and creative measures
such as taking advantage of Whey water in the cheese production process to reuse
in dishes and drinks, or using earthworms to Transform organic waste from leftover
food into useful products. In addition, besides stopping the use of plastic straws
and changing the material of take-out boxes, furniture such as tables and chairs at
the restaurant are also made from recycled materials. In addition, 4P's also aims to
radically reduce food waste in all branches, use clean electricity from the sun as
well as contribute more to social activities. 1.3 Opportunities
1.3.1. Opportunity 1: Online Ordering and Delivery Optimization
With the growing trend of online food delivery, Pizza 4P's can optimize its
online ordering platform and delivery services. This includes investing in
userfriendly mobile apps, website interfaces, and efficient delivery systems to
enhance customer convenience and satisfaction.
1.3.2. Opportunity 2: Menu Innovation and Specialized Offerings
Introducing innovative and unique pizza flavors or offering specialized
options for different dietary preferences (e.g., gluten-free, vegan) can attract a
wider range of customers. Keeping the menu fresh and exciting can generate buzz
and keep customers coming back for new experiences.
1.3.3. Opportunity 3: “From farm to table”:
Adopt sustainable practices, such as sourcing local and organic ingredients.
This is a health assurance process associated with Pizza 4P's. The staff here
regularly go into the field, looking for households that grow vegetables and many
other products using organic methods, without using chemicals to buy. directly
from farmers. Or reducing packaging waste and implementing energysaving
measures, which can appeal to consumers who are environmentally conscious and lOMoAR cPSD| 47206071
interested in a healthy lifestyle. Not only is this in line with social responsibility,
but it can also appeal to a growing market segment.
1.3.4. Opportunity 4: Tech Integration for Customer Engagement
Opportunity: Leveraging technology for customer engagement, loyalty
programs, and personalized promotions can enhance the overall customer
experience. Implementing a customer relationship management (CRM) system and
utilizing data analytics can help Pizza 4P's understand customer preferences and
tailor marketing strategies accordingly.
1.3.5. Opportunity 5: Expansion and Collaborations
Exploring opportunities for expansion into new locations or collaborating
with other businesses can help Pizza 4P's tap into different markets. Collaborations
with local breweries, wineries, or cultural events can create unique dining
experiences and attract diverse customer demographics.
With the 5 opportunities listed above, our team has analyzed the conditions
and potential of Pizza 4P’s to select the most potential opportunity to develop a
new product idea which was opportunity 3. Based on the healthy lifestyle trend of
the majority of people. Pizza 4P's should focus on researching how to use
ingredients to reduce calories but still have enough nutrients and attract customers.
So that customers can enjoy dishes that are full of nutrients and vitamins and especially avoid obesity.
1.4 Product Innovation Charter (PIC) 1.4.1 Background
Pizza 4P's is a popular pizza brand in Vietnam with an interesting origin and
background. The brand was founded by Japanese couple Yosuke Masuko and
Sanae Takasugi in 2011 in Ho Chi Minh City.
The name "4P's" represents four key elements in the brand's philosophy:
People, Product, Place, and Purpose. 4P's aims to build a friendly environment, lOMoAR cPSD| 47206071
create high-quality pizza products from fresh ingredients, create a place where
people can enjoy intimate and cozy meals, and promote social goals such as
training and supporting the local community.
By successfully combining the flavors of Western pizza with fresh
Vietnamese ingredients, Pizza 4P's quickly attracted attention and made a
difference in the food industry in Vietnam. The brand has expanded its network of
stores throughout Vietnam and even expanded abroad, creating a community of
quality and creative food lovers. 1.4.2. Focus
4P's targets customers with an average income or above, aged 25-45, who
love food and are looking for new and quality dining experiences. They are likely
to pay for high-quality products made from fresh ingredients and with unique
flavors. They also care about the atmosphere and dining experience at the restaurant.
With its efforts, 4P's has become one of the leading pizza brands in Vietnam.
The brand has attracted a large number of customers, from young people to families with young children.
1.4.3. Goals and Objectives
Measure the impact of new products and bring benefits to the brand. Short-term:
- Gauge the impact of new products
- Understand customer psychology when using new products Long-term:
- Offer more choices for customers
- Guide customers to healthy and nutritious products
1.4.4. Degree of innovativeness
In order to be successful in the food industry, especially in the pizza
segment, brands need to quickly be the first to market with new products. This lOMoAR cPSD| 47206071
gives them a competitive advantage and helps them to gain brand recognition and awareness. 1.4.5. Quality
Pizza 4P's has been able to maintain its reputation for quality and service.
These two factors are essential for the brand to continue to be successful. New
products must also be of high quality in order to maintain the brand's values and meet the needs of customers.
PHASE 2: CONCEPT GENERATION 2.1. Forming Ideas
In the previous stage, we selected an opportunity for Pizza 4ps to focus on
development: bringing a sustainably sourced high-quality organically grown
produce for a group of customers. And to develop this opportunity into a concrete
idea for a new product, we will choose the Perceptual map method to generate the
right and appropriate ideas for the new product when it comes to market.
Perceptual map is a graphic technique that helps marketers get a visual
display of customer or potential customer perception. The position of a displayed
product or brand relative to our competitors. Cognitive maps are often used to help
organizations categorize positioning strategies.
Perception maps are useful for figuring out the strengths and weaknesses of
a company's other products. In addition, it helps to realize a competitive advantage for the product.
Below, our team will create a perceptual map for new Pizza 4ps product
ideas based on analysis of other produce brands including: L'Antica Pizza, Pizza
4U, Italiani's Pizza, Carpaccio, Basta Hiro, Pizza Pendolasco, The Long@Times Square Pizza, Pizza 4P's. lOMoAR cPSD| 47206071
In that map, we shall partition four quadrants to assess conceptions and shall
be predicated upon two pivotal characteristics: Price and product quality of brand other pizza.
The reason we chose these two attributes to evaluate and locate new ideas
is that when customers choose or use organically grown products, they will always
consider cost, effectiveness, and efficiency. As a result of the product, we will
sketch a map to see the gaps in price and product quality to launch a suitable new
product. We then researched the prices and read all the customer reviews for the
quality of the products so that we were able to accurately score each brand attribute.
Table 1. Perceptual Map for new Pizza 4P’s product ideas PRODUCT NAME PRICE PRODUCT QUALITY L'Antica Pizza 500,000 = 10 8 Carpaccio 450,000 = 9 7
The Long@Times Square 400,000 = 8 5 Pizza Pizza Pendolasco 350,000 = 7 6 Basta Hiro 300,000 = 6 4 Italiani's Pizza 250,000 = 5 7 Pizza 4U 200,000 = 4 5 Pizza 4P's 150,000 = 3 6
And from this scoreboard, we'll outline it on the map with the scale for each
attribute from 0-10 points. After sketching the Perceptual map, we will analyze
Pizza 4P's innovation opportunities as follows: lOMoAR cPSD| 47206071
Image 1. Perceptual mapping
As we can see on the map, all firms have certain segmentation positions for
themselves. As L'Antica Pizzato claims to be the leader in terms of product quality
and price, they believe that price goes hand in hand with quantity. Next is the mid-
high segment including brands: Carpaccio, The Long @ Times Square Pizza, Pizza
Pendolasco, Basta Hiro. And finally, the middle segment includes brands such as:
Italiani’s pizza, Pizza 4U, Pizza 4ps. However, looking at this average area, one
can see that Pizza 4ps is lagging behind Italianni’s pizza or Pizza 4u. Therefore, in
order for Pizza 4ps to compete with those firms, Pizza 4ps needs to be in the red
circle area that we have zoned on the map. Because only when Pizza 4ps is in this
red circle can Pizza 4ps compete on price and gain market share and customers of
these firms. And to do that, this time Pizza 4ps will have to launch new products
with improved quality but still have to keep the same price or maybe change the
price up a bit. With the goal of positioning new products in such a new area, our
team discussed and had unique ideas for Pizza 4ps new products as follows: 1. Customizable Pizza Builder 2. Pizza with chocolate sauce
3. Miniature Size of Pizza for kids 4. Purple Dragon Fruit Pasta