General Information about Pizza

The product I selected for this study is pizza. It is a food product. The main reason why people buy pizza is due to its health nutrients obtained from tomatoes and other ingredients used to make it. It is also a tasty brand that has won the hearts of consumers at the international level. Sometimes people buy it to taste the luxurious brand.Pizza has been in the market for long enough and is dated back in the 18^th century with Italy and the United States among the first countries to come up with the product. In the era of globalization, the product has found its way in other economies in Africa and Asia.It is available in major food stores. Recently customers can make orders online via apps. The parent companies advertise it on their online stores where consumers can place orders and have it delivered at their doorsteps.

Information about Pizza

Pizza is packed in sizes; small, medium, large and occasionally extra-large. It is measured in diameter. Ten-inch diameter would be considered a small scale; twelve inch is medium while 14 inch is a large pizza. It could vary between countries and units of measurements. The client can read the content on the package. Additionally, the seller provides enough information on the package.Other sources of information about pricing come from food outlets that sell the product and via friends and online platforms. There are also advertisement platforms such as social media and mainstream media. Celebrities access information from magazines. Sellers have described pizza as a tasty delicacy and even described it as a healthy product that prevents heart diseases.

The pricing uncertainty principle states that all prices are malleable and arbitrary. This case is similar to pizza where the manufacturer determines the price.  Consumers are not aware of value pricing, and the manufacturer may take advantage of this misinformation. When people place orders at the international level, the market creates an increase in demand. Consumers cannot determine its actual price because its price is based on market demand. Additionally, it is quite difficult to ascertain the real cost of pizza since different brands offer their pizza at different rates. However, there is not much uncertainty about the quality of pizza since the producers of the product have given ingredients used to make the pizza.Additionally, competition at the market level makes sure that companies maintain quality standards.The primary mechanism used to ensure that the quality of pizza remains constant is the brand. Pizza is not available in food outlet or supermarkets. It’s only available in a pizza shop,  ensuring that only licensed outlets produce the brand.

Demand

Pizza is favorite among the youth mostly within 14-30 years. This class of consumers loves to explore new products and have over time stuck on to pizza due to their tasty product and their services.Family-oriented people are also targeted by marketers, even though the millennial group is the primary target.Pizza is most valuable to consumers due to their affordable prices and is locally available. However, most people cannot access it from local stores, making them opt for online shopping. It is also a quick food that saves most people time to prepare a meal. It can also be taken along other products like drinks. It also comes along with some health benefits.

Price elasticity of demand is the responsiveness of quality demanded a change in price. Pizza is under constant demand by the consumers; hence it faces inelastic demand.Door delivery has made pizza very popular in the modern day. You have to order and make payments, and within a few minutes, pizza delivery comes to the doorstep.The main substitutes of pizza are meatballs, kale chips, and white sauce.  Soft drinks like Coca-Cola and hard drinks are the main complements of pizza.

Supply

Suppliers of pizza vary from one region to another.  In my region, the leading suppliers around the market include Nestle USA, Home Run Inn, and Amy’s Pizza. It is also sold online by MacDonald’s Inc. Pizza is an international brand; hence it commands both local and global markets. The brand is international and large scale. For instance, the origin of Domino’s pizza is in Ypsilanti, Michigan yet it’s popular in most countries and the regions.Every product suffers competition, but premium brands have an added advantage. The market competition is fair as different brands have different ways of preparing the product to ensure its popularity among its consumers. The packaging also differs among brands.The inputs range from the equipment to the ingredients used.  Oven, kitchen utensils and tools and quality ingredients are among the inputs. These are crucial inputs to a successful production of the product. The equipment and components are readily available. Thus there is no competition.

Government’s Role

Regulation

The government agency that regulates cheese is the Food Safety and Inspection Service (FSIS). They monitor the crust on pizza thus ensuring its safety for consumption. The USDA agency regulates tomato sauce.
Taxation

The government recently lowered its taxation rates from 18% to 5% to all food-producing outlets, and this has, in turn, reduced the prices of production and delivery to the customers. Pizza is not exceptional to these changes
Public Programs

The government through its agencies is ensuring that the product gets produced with minimal calories and health hazards.
Public purchasing

The government agencies ensure the product is safe for consumption and undergoes the correct pricing to protect the public from overpricing.

Information provision

The government ensures that the brand provides the consumer with the correct information they need for purchasing and consumption of the product.
What is the impact of government activity on the market in terms of efficiency?

The government ensures the manufacturer does not exploit the consumers by inducting pricing strategies and providing the products are safe for consumption without posing some health hazards by coming up with safety measures through government agencies like the food security and inspection agencies.

Future Issues

In recent years, the population has rapidly increased hence the demand for pizza is likely to increase as the population increases. Additionally, cultural changes and preferences are likely to impact the rate of supply when it becomes locally available at the global level.Technological changes are also expected to affect the production and distribution of Pizza.In the recent future, the equipment’s in the food industry are likely to improve in a way that the machine will be more modified than the one currently used as people are becoming more innovative each day in the industry.

The political uncertainties do not affect the product since the consumers are international which means their political activities differ from one region to another.

Concerning elasticity pricing, when the demand rises the prices are also likely to go up. Since the population is growing, the market demand increases which means the prices would automatically increase. Regarding supply and market structure, the presence of innovative measures would ensure an increase in production of the product which means there would be increased product deliveries hence high demand for the ingredients which would make the suppliers increase the cost of the components thus transferring the charge to the consumers

 
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