Pizza Express

1
Pizza Express

• Optima presentation

2
Agenda

• Study objectives
• What is Optima?
• Market drivers informal eating out market
• Brand performance and positioning
• Opportunities in the market
• Actionable guidelines to brand development
• Target audience selection
• Study outcome - summary

3
What is Optima?

• Optima is an approach to understanding markets
• It is based on a sound and proven theory of how
  markets work
  
• It builds a mathematical model over consumer
  choice
  
• It brings together behaviour and motivation in
  markets to explore the best opportunities for
  profitable brand development and strategic growth

4
Market drivers drivers of choiceMotivational
Sector Analysis

• A brand purchased by a respondent is called a
  choice
  
• Choices are divided into sectors, using a form of
  factor analysis
  
• A sector collects together all the choices that
  are made for the same kind of reasons

5
Motivational sector analysis - rationale

• A good driver analysis describes the variation in
  the consumer choices within a market
  
• Each choice is guided by a set of motivators...
• Functional eg. Good for cooking
• Emotional eg. Because it makes me feel better
  about myself
  
• Social eg. Because it is fashionable
• Brand attributes eg. Crunchy
• Brand adjectives eg. Trendy
• Brand personality eg. Friendly
• A consumer might buy at one out of home
  restaurant for eating out with colleagues for one
  set of motivators.
  
• And at a completely different brand for when
  dining out with family, with a different set of
  motivators
  
• Placing this consumer in just one group of
  motivations would not do justice to the different
  choices he/she makes
  

6
Motivational sector analysisExample -
Supermarkets
7
Brand positioningPositioning map - supermarkets
The positioning map provide an overview of the
supermarkets and the reason for choice.
Safeway, Sainsbury and Tesco are shopped at for
similar reasons. They are linked with things li
ke bright and airy store, modern and good
for fresh fish. In an opposite position stores
like Lidl and Aldi are positioned.
They are linked with aspects like low price fir
st and cheapest place to shop.
8
Brand performance and positioning

• The motivational sector analysis will provide
  insights to
  
• What sectors of motivations are at play in the
  market?
  
• How is Pizza Express positioned?
• How great a proportion of the sectors are Pizza
  Express meeting the needs of? (brand
  performance)
  
• Who buys in which sectors? (demographical profile
  of the sectors)
  
• But we would also like to get insights to what
  the opportunities are...

9
Opportunity Analysis(Where should I launch new
products)

• Once the sectors are identified, opportunity
  analysis can simulate the effect of adding an
  additional brand/product to a sector and
  marketing it to the average of the sector
• It will indicate the potential share gain/loss
  from the clients (or competitors) current share
  in the market - hence identifying opportunities
  

10
Opportunity analysisExample - supermarkets
All figures are in percentages of the clients
sales
The greatest opportunity is Convenient and
nearby Tescos sales would go up by 5 if they m
oved into this market as well as a typical player
there.
11
Actionable guidelines to brand development

• Optima is able to identify for any brand the
  contribution made to its brand share by the
  reasons for choice
  
• We can then analyse
• Key motivators Strengths for the brand,
  important in the market
  
• Niche motivators Strengths for the brand, but
  not important in the market
  
• Key opportunities Important in the market but
  only small strengths for the brand
  

12
Key Motivators
Get everyone to value the brand more
Statements that the brand has strengths on
Also important statements in the marketplace
0.3
0.2
Number of buyers increases Also purchase rates in
crease
Probability
0.1
New Mean
Old Mean
0
-5
-4
-3
-2
-1
0
1
2
Positive Utility
Negative Utility
13
Brand analysisExample supermarkets (Tesco)
The brand analysis will identify the messages
which will be most effective at increasing brand
share Tesco should especially focus on car park
ing space, fruit and vegetables and convenient
opening hours. Promoting on these messages will
attract both present and new buyers to Tesco as
well as increase differentiation to competitors.
This is because these are the reasons why people
shop there already (appealing to present
customers), but also important for most people
(so attracting new customers) and are better than
competitors on these aspects.
14
Brand analysisExample supermarkets (Aldi)
Aldi is very strong on the low price perspective
Cheapest place to shop would be really powerfu
l in generating brand share for Aldi
Being cheap however should be promoted on with c
are because it is not important to people in
general
15
Brand analysisExample supermarkets (Aldi)
Aldi has several elements holding it back from
having more customers Some of them can be ignor
ed but some may be improved upon

16
Brand analysisStrengths and weaknesses -
Supermarkets
The strengths and weaknesses analysis will
provide a profile of each brand in the market.
Kwiksave is doing better than average for the ma
rket on Not too expensive. However it is lowe
r on six of the other reason for choice, which
are most important in the market
17
Cannibalisation Analysis Explanation

• Cannibalisation analysis provides understanding
  of where new sales will come from if a brand
  experiences a sales increase
  
• This can be shown for the total market
• Or it can show where a brand will steal from if
  it is promoted on a particular statement
  
• This can guide one on how to promote a brand to
  target a competitor

18
Cannibalisation analysis exampleSimulation of
increase in shopping at Tesco who will loose?

• If more people shop at Tesco, they will reduce
  their shopping rate at other supermarkets if we
  assume that the market remain the same.
  
• Cannibalisation analysis shows that especially
  Sainsbury Savecenter and Marks Spencer Food
  Department will loose customers to Tesco if Tesco
  increases its shopping rate.

The cannibalisation analysis takes into account
the structure of the market in the simulation.
So eventhough Sainsburys Savecentre only have
13,42 of the market, 24,61 of the new shopping
at Tesco will come from Sainsbury customers
19
Cannibalisation analysis exampleWhich messages
will be most effective to be stealing customers
from Sainsbury?
Top 10 messages to promote Tesco on
The cannibalisation analysis also simulates the
effect of using different messages.
Promoting parking space and fruit and vegetables
will be particularly effectfull for stealing
customers from Sainsbury.
20
Cannibalisation analysis Tesco
The cannibalisation analysis takes into account
the structure of the market in the simulation.
So even though Sainsburys Savecentre only have
13,42 of the market, 24,61 of the new buying at
Tesco will come from Sainsbury customers
The cannibalisation analysis also simulates the
effect of using different messages.
Promoting parking space and fruit will be
particularly effective for stealing customers
from Sainsbury. 40 of the new share will come
from Saisburys much more than the 25 average
21
Target audience selection consumer segmentation

• Consumer segments based on lifestyle and attitude
  to life
  
• Inputs
• Self descriptors most related to beer
  consumption
  
• Age
• Life stage/family status
• Factor analysis used for grouping into segments

22
Overview of young segments
23
Study outcome - summary

• Optima is based on a proven theory of how markets
  work. The deliveries for Pizza Express are...
  
• Market drivers identification of how the
  informal eating out market is grouping into
  different motivational sectors
  
• How Pizza Express is positioning
• How Pizza Express is performing
• What the opportunities are in the informal eating
  out market
  
• How should Pizza Express be positioned to attract
  more customers (guidelines to concrete
  positioning statements)