P4 Unit 3 Business
Task 3: Report on either Resources or Price and Non Price Marketing
To be submitted via the Assessment 3 Dropbox on 11BEC Moodle by Friday 7th April at 5pm. Paper copies will also be accepted.
This assessment has two parts:
1. Preparation and Research (Not assessed)
A. Choose a producer. You are advised to check your choice of producer with the teacher to ensure it is suitable.
B. Gather information about the production decisions of your chosen producer. It is expected that information will be gathered in your own time.
Decision 1) Hell Pizza have done a lot of non-price marketing including gifts, advertising, branding (developing an image and name for the product), high-quality service, packaging, sponsoring children sport teams …show more content…
and reading books and store locations.
Decision 2) Offense ads that mocking Christianity offense many people, a example is below.
This ad offended many people because it was inspired from condoms packages. (ad on the left)
Decision 3) The manager decided to franchise this business.
Decision 4) Buying back their own stores.
Decision 5) high quality pizza’s that cost a lot of money to buy.
Introduction to your producer
• Who is your producer? What type of producer are they? What sector do they belong to?
• What is the good(s) or service(s) they produce?
The producer I have chosen is Hell Pizza which a tertiary company producing and serving fast food (mainly pizza). This company in 1996 in New Zealand and has expanded into UK, Australia, Ireland, Canada, Korea and India.
They have a lot of non-price marketing up to the point that general manager Ben Cumming even said that “it's almost as much of a marketing company as it is a pizza company”.
Price and non-price marketing
• What is meant by price and non-price marketing?
• Does your producer use price or non-price marketing or a mixture of both? Give details
• Why has it chosen these methods of marketing?
• Has the producer been successful or not with its marketing strategy and how has their decision impacted on society?
• Has it changed its methods marketing over the years?
Hell Pizza have done a lot non-price which is when a company does some form of advertisement to make their product stand out over an competitor like pizza hut (picture of a Pizza Hut store below), in a way that does not increase the cost of making the product.
Non-price marketing is the opposite to price marketing which is where the price is key part of the marketing eg, drop in price to attract more customers.
Hell Pizza have practice non-price marketing in many forms like advertising, gifts, good services and now they encourage children playing spot and children reading books up to the point that 344 schools and 221 libraries have taken part resulting in 2,800,000 books read as of July 20, 2016.
Hell Pizza has not made much change to its use of non-price marketing in recent years.
Given that there are no signs they are in trouble of bankruptcy they are properly successful in make enough money back that they are able to hand out all those free pizzas and their workers look happy (picture below of workers).
Resource use
• What are the economic resources available to a producer of a good or service?
• What are the resources used by this producer?
• Why have they chosen this mix, has the mix changed? Why or why
not?
• Are all the resources able to be found in New Zealand or do some have to be imported from other countries? Does the location of the business dictate the type of resources used? Does the price of different resources dictate their use?
• How does this producer’s resource mix affect them and society?
2. Report (Assessed)
Use the information you have collected to write a final report. In your report you need to explain in detail
1. A decision the producer has made in relation to either resource use or price and non-price marketing
A decision is
a) What your producer currently does i.e. what resources are used in production or what kind of marketing do they carry out.
b) Specific resource or marketing decisions such as:
• To replace human resources with more capital resources. To use renewable resources, operate a paperless office, be environmentally friendly (sustainable)
• To use non price marketing to increase sales, increase market share or launch new products. To carry out a “price war’, reduce prices in order to maximise sales, launch a product etc. To use a specific type of non – price marketing.
2. Explain the consequences of these producer decisions for the producer and society. You must integrate (use) your data/information from your research to support your explanations.
This means how does your producer’s decision affect & or impact on the producer and society?
Society includes:
• The consumers who buy and use the product
• The shareholders/owners of the business who receive dividends from the business
• The workers in the business
• The sellers of the product ( e.g. supermarkets / shops )
• The environment
• The local community
Hell Pizza is a well-known fast food company that have done a lot of Non-price marketing who’s General Manager claims “it's almost as much of a marketing company as it is a pizza company”. Their non-price marketing includes gifts, advertising, branding (developing name and image), high-quality service, packaging, sponsoring children sport teams and reading books and store locations.
Marketing decision 1
Promotion of lust pizza
A good example is the time they were planning on advertising their Lust pizza (meat lovers), which’d involved promoting the Pizza by delivery 170,000 hell trademarked condoms. For better or for worse their packaging didn’t meet New Zealand labelling and packaging requirements resulting with the remaining stocks being destroyed.
One of the reasons hell pizza could have decided to advertise their pizza like this is because, often doing something that is rememberable and debatable can became the point of a conversation. This is an useful way of attracting more customers and make more people aware of them
Consequence social
Even though the remaining stocks was destroyed they still managed to reach a total of 685 written complaints and created anger in groups likes The Family First who’s director said it “cross the line of what is decent and acceptable to our community”. Hells pizza non-price advertisement is likely to hold the record for the largest complained advertisement in New Zealand.
Consequence for branding
While this advertisement offended many people, I think the advertising achieved what it was meant to achieved. I say this because the advertisement was done to promote and make people aware of their brand. Having people complaining about the pizza and having worldwide media attention fulfils their goals.
Marketing Decision 2:
Reading challenge
One of Hell’s pizza other non-price marketing methods is a Reading Challenge which involved young children reading books. In this form of Non-price marketing involves the customer (in this case a child in primary or intermediate) doing something, that isn’t a survey which is another form on non-price marketing.
The decision to do this could have been made due to all the negative attitude place toward them for offending people. For example, many of their pizza names or advertisement are inspired from the seven deadly sins or have some connection to Christianity in an offensive way, as you can see in the advertisement below.
This would have likely been costing them customers because people would not support them or want to be seen supporting them. To counter this, they would have to do something, to be seen as supporting good causes. This would have the ability to change how people look at them and perhaps see them as a company looking to do good out there.
So, having a non-price marketing scheme involving a child in a primary or intermediate school having the ability to reading seven books so they can get a free pizza is a good idea. To do this, they need to complete a challenge where you must have something called a Pizza wheel which has seven spaces that can be clicked off by teacher or librarian and once clicked off you can get a free hell pizza. This way of encouraging children to read was met with remarkable success, having 221 libraries and 344 schools around New Zealand taking part in this activity. This decision has led to 2,800,000 confirmed books being read among primary and intermediate schools in New Zealand. This have encouraged children to read books and now because of this the Library and Information Association of New Zealand Aotearoa supports Hell pizza.
This have also led to hell pizza having image of supporting children education, gaining people who they would have lost due to having an image of encouraging offensive idea’s being socially ok, but know see them as a company worth supporting.
This is a picture of one of the pizza wheels that is needed to get a free hell’s pizza
3. Possible data/information could include:
• A table or diagram identifying the types of resources used by the firm
• A map to show the producer and their competition
• Photos to illustrate a marketing strategy
• A table or diagram to show the types of labour resources used
To achieve question 3 I had added a picture of one of their main competitors, Photos illustrating their marketing strategy (‘for a limited time. A bit like Jesus”) and I got I picture of their employees (form of labour).
To be submitted via the Assessment 3 Dropbox on 11BEC Moodle by Friday 7th April at 5pm. Paper copies will also be accepted.
This assessment has two parts:
1. Preparation and Research (Not assessed)
A. Choose a producer. You are advised to check your choice of producer with the teacher to ensure it is suitable.
B. Gather information about the production decisions of your chosen producer. It is expected that information will be gathered in your own time.
Decision 1) Hell Pizza have done a lot of non-price marketing including gifts, advertising, branding (developing an image and name for the product), high-quality service, packaging, sponsoring children sport teams …show more content…
and reading books and store locations.
Decision 2) Offense ads that mocking Christianity offense many people, a example is below.
This ad offended many people because it was inspired from condoms packages. (ad on the left)
Decision 3) The manager decided to franchise this business.
Decision 4) Buying back their own stores.
Decision 5) high quality pizza’s that cost a lot of money to buy.
Introduction to your producer
• Who is your producer? What type of producer are they? What sector do they belong to?
• What is the good(s) or service(s) they produce?
The producer I have chosen is Hell Pizza which a tertiary company producing and serving fast food (mainly pizza). This company in 1996 in New Zealand and has expanded into UK, Australia, Ireland, Canada, Korea and India.
They have a lot of non-price marketing up to the point that general manager Ben Cumming even said that “it's almost as much of a marketing company as it is a pizza company”.
Price and non-price marketing
• What is meant by price and non-price marketing?
• Does your producer use price or non-price marketing or a mixture of both? Give details
• Why has it chosen these methods of marketing?
• Has the producer been successful or not with its marketing strategy and how has their decision impacted on society?
• Has it changed its methods marketing over the years?
Hell Pizza have done a lot non-price which is when a company does some form of advertisement to make their product stand out over an competitor like pizza hut (picture of a Pizza Hut store below), in a way that does not increase the cost of making the product.
Non-price marketing is the opposite to price marketing which is where the price is key part of the marketing eg, drop in price to attract more customers.
Hell Pizza have practice non-price marketing in many forms like advertising, gifts, good services and now they encourage children playing spot and children reading books up to the point that 344 schools and 221 libraries have taken part resulting in 2,800,000 books read as of July 20, 2016.
Hell Pizza has not made much change to its use of non-price marketing in recent years.
Given that there are no signs they are in trouble of bankruptcy they are properly successful in make enough money back that they are able to hand out all those free pizzas and their workers look happy (picture below of workers).
Resource use
• What are the economic resources available to a producer of a good or service?
• What are the resources used by this producer?
• Why have they chosen this mix, has the mix changed? Why or why
not?
• Are all the resources able to be found in New Zealand or do some have to be imported from other countries? Does the location of the business dictate the type of resources used? Does the price of different resources dictate their use?
• How does this producer’s resource mix affect them and society?
2. Report (Assessed)
Use the information you have collected to write a final report. In your report you need to explain in detail
1. A decision the producer has made in relation to either resource use or price and non-price marketing
A decision is
a) What your producer currently does i.e. what resources are used in production or what kind of marketing do they carry out.
b) Specific resource or marketing decisions such as:
• To replace human resources with more capital resources. To use renewable resources, operate a paperless office, be environmentally friendly (sustainable)
• To use non price marketing to increase sales, increase market share or launch new products. To carry out a “price war’, reduce prices in order to maximise sales, launch a product etc. To use a specific type of non – price marketing.
2. Explain the consequences of these producer decisions for the producer and society. You must integrate (use) your data/information from your research to support your explanations.
This means how does your producer’s decision affect & or impact on the producer and society?
Society includes:
• The consumers who buy and use the product
• The shareholders/owners of the business who receive dividends from the business
• The workers in the business
• The sellers of the product ( e.g. supermarkets / shops )
• The environment
• The local community
Hell Pizza is a well-known fast food company that have done a lot of Non-price marketing who’s General Manager claims “it's almost as much of a marketing company as it is a pizza company”. Their non-price marketing includes gifts, advertising, branding (developing name and image), high-quality service, packaging, sponsoring children sport teams and reading books and store locations.
Marketing decision 1
Promotion of lust pizza
A good example is the time they were planning on advertising their Lust pizza (meat lovers), which’d involved promoting the Pizza by delivery 170,000 hell trademarked condoms. For better or for worse their packaging didn’t meet New Zealand labelling and packaging requirements resulting with the remaining stocks being destroyed.
One of the reasons hell pizza could have decided to advertise their pizza like this is because, often doing something that is rememberable and debatable can became the point of a conversation. This is an useful way of attracting more customers and make more people aware of them
Consequence social
Even though the remaining stocks was destroyed they still managed to reach a total of 685 written complaints and created anger in groups likes The Family First who’s director said it “cross the line of what is decent and acceptable to our community”. Hells pizza non-price advertisement is likely to hold the record for the largest complained advertisement in New Zealand.
Consequence for branding
While this advertisement offended many people, I think the advertising achieved what it was meant to achieved. I say this because the advertisement was done to promote and make people aware of their brand. Having people complaining about the pizza and having worldwide media attention fulfils their goals.
Marketing Decision 2:
Reading challenge
One of Hell’s pizza other non-price marketing methods is a Reading Challenge which involved young children reading books. In this form of Non-price marketing involves the customer (in this case a child in primary or intermediate) doing something, that isn’t a survey which is another form on non-price marketing.
The decision to do this could have been made due to all the negative attitude place toward them for offending people. For example, many of their pizza names or advertisement are inspired from the seven deadly sins or have some connection to Christianity in an offensive way, as you can see in the advertisement below.
This would have likely been costing them customers because people would not support them or want to be seen supporting them. To counter this, they would have to do something, to be seen as supporting good causes. This would have the ability to change how people look at them and perhaps see them as a company looking to do good out there.
So, having a non-price marketing scheme involving a child in a primary or intermediate school having the ability to reading seven books so they can get a free pizza is a good idea. To do this, they need to complete a challenge where you must have something called a Pizza wheel which has seven spaces that can be clicked off by teacher or librarian and once clicked off you can get a free hell pizza. This way of encouraging children to read was met with remarkable success, having 221 libraries and 344 schools around New Zealand taking part in this activity. This decision has led to 2,800,000 confirmed books being read among primary and intermediate schools in New Zealand. This have encouraged children to read books and now because of this the Library and Information Association of New Zealand Aotearoa supports Hell pizza.
This have also led to hell pizza having image of supporting children education, gaining people who they would have lost due to having an image of encouraging offensive idea’s being socially ok, but know see them as a company worth supporting.
This is a picture of one of the pizza wheels that is needed to get a free hell’s pizza
3. Possible data/information could include:
• A table or diagram identifying the types of resources used by the firm
• A map to show the producer and their competition
• Photos to illustrate a marketing strategy
• A table or diagram to show the types of labour resources used
To achieve question 3 I had added a picture of one of their main competitors, Photos illustrating their marketing strategy (‘for a limited time. A bit like Jesus”) and I got I picture of their employees (form of labour).