Assignment On “Marketing Strategy Of Pizza Hut”
014 ID # 2009-2-10-092
Submission Date: 15.Marketing Strategy of Pizza Hut Course: Principles of Marketing
Kashfia Ahmed Senior Lecturer Department of Business Administration East West University Dhaka 1212
Shams Jahan Farhat Md.2010
.Golam Mursalin Yasir Arafat Areef Md.Atiqur Rahman Khan Shakh Riad Adnan ID # 2009-1-10-060 ID # 2009-1-10-308 ID # 2009-1-13.034 ID # 2009-3-10.07.
We are honored to prepare this assignment under your guidance since it gave us the opportunity to know the current marketing status of “ Pizza Hut” and analyze its market condition. We tried our level as best to accumulate We will be the information to for you as
c l a r i f i c a t i o n o n t h i s r e p o r t w h en e v e r n e c e s s a r y .
Dear Madam: We are very pleased to submit this assignment on “Pizza Hut” as you have authorized us to in this semester. Sincerely Yours. Shams Jahan Farhat Md. Atiqur Rahman Khan [ID # 2009-1-10-060] [ID # 2009-1-10-308] [ID # 2009-1-13-034] [ID # 2009-2-10-092] [ID # 2009-3-10-014] ________________ ________________ ________________ _______________ ________________
. Golam Mursalin Yasir Arafat Areef Shakh Riad Adnan Md. 2010 Kashfia Ahmed Senior Lecturer Department of Business Administration East West University
S u b j e c t : S u b m i s s i o n o f A s s i gn m e n t .LETTER OF TRANSMITTAL
valuable advice. constructive criticism and generosity she helped us to carry out this report successfully.
. Ms. we would like to thank to all group members that directly or indirectly helped us to provide and accumulate all the necessary
information for the accomplishment of this assignment. We would also like to express our gratitude to the website that helped us to gather all the necessary information. East West University (EWU).Acknowledgement
We would like to express our gratitude and indebtedness to our honorable faculty. Department of Business Administration. With her inexhaustible
guidance. Finally. continuous inspiration. Senior Lecturer. Kashfia Ahmed.
6. Target Marketing…………………………………. Positioning Map………………………………. Positioning Strategy……………………………………. 5.. Marketing Mix…………………………………… 12.Table of Content
Executive Summary Title 1. Introduction………………………………………. …. ……………………………… 8... Positioning Statement……………………………….. Reference………………………………………… v Page 1 2 3 5 6 6 6 7 8 . 3. 10.9 9 11 12
. Choosing Right Competitive Advantage……………… 9.. 11. 2. Company Profile………………………………….. 7 Differentiations …. 13. Market Positioning ………………………………. Market Segmentation……………………………… 4. Conclusion……………………………………….
possible value differentiation. In this report we have discussed about how Pizza Hut uses marketing segmentation.
. requirements for effective segmentation). now and for generations to come. It's an intentional choice that creates sustainable competitive advantage. targeting and positioning strategy. Diversity is a business strategy for Pizza Hut.
Pizza Hut’s main purposes are to provide
foods and services of superior quality and value that improve the lives of the world's consumers.Finally we have discussed about marketing mix. Pizza Hut believes a plentiful and leveraged diverse strategy is a competitive advantage. Here we have discussed how Pizza Hut plans and uses diverse strategies to segment the market(Major segmentation variables for consumer market.Executive Summary
Pizza Hut is one of the leading pizza restaurant companies in the world in terms of both the number
of outlets and the percentage of market share that it holds. choosing the right competitive advantages. Their goal is to grow that competitive edge by fostering an inclusive culture. selecting an overall positioning strategy and developing a positioning
statement). target each of the segmented market(Evaluating and selecting market segmentation) and differentiation and positioning (Positioning maps.
but it is also the world’s largest pizza chain with more than 6. which it has occupied since 1995. Currently there are three outlets. Inc. a concern of Transom Group is the franchisee of Pizza hut in Bangladesh. and garlic bread. When a friend suggested opening a pizza parlor.000 restaurants. Kansas. All foods served in the outlets in Bangladesh are 100% halal. the first outlet of Pizza Hut opened South Avenue. expires at the end of 2010
Pizza Hut Today: Pizza Hut is not only the acknowledged leader of pizza industry worldwide. two in Dhaka which are situated at Gulshan and Dhanmondi other at Chittagong. serving 1. is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta. they agreed that the idea could prove successful Currently based in Addison. buffalo.100 restaurants in the United States and over 5. and kiosks in 100 countries.) Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita. With a seating capacity of 220 persons.7 million pizzas everyday to more than seven million customers. Gulshan-1 at 6th December. Texas Pizza Hut is relocating its headquarters to
Legacy Office Park in nearby Plano when the lease on its current building. Very soon Pizza Hut is going to open another new outlet in in sylhet. delivery/carry-out locations.( the world's largest restaurant company with approximately 34. Pizza Hut is a subsidiary of Yum! Brands. Inc.500 restaurants in 97 countries and territories around the world. Pizza Hut in Bangladesh: Transom Foods Limited. breadsticks.
About Pizza Hut: Pizza Hut corporately known as Pizza Hut.000 people. employing more than 300.
The world's largest fast food company. The unit of YUM! Brands operate the world's #1 pizza chain with more than 13. no one does it more often than Pizza Hut. Inc. (Pat) Murtha • CFO: David Gibbs
• Domino's Pizza. Dallas. and sandwiches. Contact Information Address: Phone: Fax: 14841 Dallas Pkwy. About 15% of the restaurants are company-operated. salads. including its flagship Pan Pizza. YUM! Brands run KFC and Taco Bell in addition to Pizza Hut. TX 75254 972-338-7700 972-338-6869
Financial Highlights Fiscal Year End: December
• President and Chief Concept Officer: Scott O. The chain serves a variety of pizza styles. as well as carry-out and delivery service. Stuffed Crust. Other menu items include pasta. Hand Tossed. and Sicilian.200 outlets in about 90 countries worldwide. Bergren • COO: Patrick C.Company Profile
When it comes to tossing around dough. (dpz)
. Pizza Hut offers dine-in service at its characteristic red-roofed restaurants. while the rest are franchised. as well as Thin n' Crispy.
India. Bangladesh Dhaka. So Pizza hut has also gone through it as a part of business. USA. Bangladesh In provincial capitals Mumbai. Pakistan. Four very important variables of market segmentation of Pizza hut are discussed in following
Segmentin g unit Country City Density Family size
UK. Targeting and Positioning
Market Segmentation Actually. Pizza hut have tried to deliver different products for their selected segments. who are different from one another & need different products. Pakistan. selected segments’ Bayli Road of Dhaka customers are dense
sizes of combo is Family size pizza offered
of different Tables for Couples. Family with kids Halal foods religions Family size’s are high Lunch packages for all
F a m i l y L i f e Tables Cycle sizes Religion income Occupation
Allowing people of different religion to enjoy people having enough money will spend a lot for food Students & professional persons who don’t have time to go home for meal
People of the High price foods generation who spend money in nonessential things Upper middle & High prices of foods upper class people 2
. As the different segments need different products. market segmentation is the identification of the group of customers. Lahore. needs or behaviors. Bangladesh Areas of cities where Gulshan. Dhanmondi. Karachi. New Delhi. Now a day. of India. Pizza hut has segmented the whole market into smaller group of buyers who have differences in characteristics. China. companies can’t avoid the process segmenting the market.Segmentation.
Actionable: Pizza hut has enough resources for taking action for its services whenever needed. it has not reached in cities without Dhaka & Chittagong.are customers Personality Occasion Behavioral Benefit People who don’t want to be alone Occasional customers Who want specials privileges Crowd in Pizza Hut environment Special decorations in occasions like Valentines Day. They have targeted the higher middle class people. Differentiable: Pizza hut offers Halal foods. quality service
Requirement for Effective Segmentation: Market segmentation has to be very much useful to work. Some such segmentation to be effective is discussed below:
requirements for a
Measurable: Segmentation of Pizza hut is very much measurable. their desired customers can get them. which response differently. Substantial: pizza hut has enough large segments & those are enough Profitable Segments. Pizza hut is available in places where. They are utilizing the scopes pretty efficiently. different size of combos. But still in our country. different size tables etc are for different segments. Accessible: Pizza hut become very much successful to reach & serve. Pahela Baisakh Quality food. But they have potential customers at many other cities.
growth and also is structurally attractive. buyer power.If Pizza Hut’s market share is growing rapidly in a specific segment. For instance. supplier power and substitute products. Different SIZES OF pizza appetizers. etc can form a differentiated marketing approach. Individual marketing 1. Targeting marketing involves two steps: 1. Selecting Market Segment.Evaluating Market Segment. segment structural attractiveness and company objectives & resources. Differentiated or Segmented Marketing. growth rate. Undifferentiated Marketing: The target customers are of upper middle & upper class people.If a target segment has too many competitors for Pizza Hut then that segment will be unattractive for the Company.
2. The company evaluates each market segment’s attractiveness and selects one or more of the market segments to enter. 2. Evaluating Market Segment: To target the best market segments the company first evaluates segment’s size and growth.Segmenting the market reveals company’s market segment business opportunities. Even if a segment has the right size. For instance. ice creams.
.The company first collects and analyzes data on current segment sales. Concentrated or Niche Marketing and the last one is Micromarketing or Local. Selecting Market Segment: The Company Chooses one of four target marketing strategies. Differentiated Marketing: Products for different segments are delivered. 2.
They are: Undifferentiated or Mass Marketing. then the Company will decide whether to expand it or not. 1. sometimes the company should consider its own objectives. The company also examines major structural factors that involve competitors. expected profitability on each segments. Pizza hut skips all other social classes. Pizza Hut Company accumulates their earnings of each Strategic Business Unit at the end of the year.
*DOMINO ’S PIZZA
1. They form an idea of customer mania to maintain the standard of service. They have targeted chittagong and sylhet also. service. Service Differentiation: Pizza hut has many brunches throughout the world as well as Bangladesh. It has good transportation facility for the distribution. channel. Channel Differentiation: Dhaka is the most populated district of the country. and nutrition & quality. 2. Micro Marketing: Changes interior decoration depending on occasions. 4. Concentrated Marketing: Pizza hut has products for some specific groups. people & image differentiation pizza hut reach the consumer touch point more effectively & efficiently in comparing with their competitors in the competitive food sector. so that that outlet can get the product at proper time. Pizza hut’s product holds pretty a favorable position in the consumers mind. Product Differentiation: Pizza hut has differentiated their product on reliability. 3.3. taste. Quality of its product is strictly maintained by the authority. That’s why there are many outlet of pizza hut in Dhaka. It always tries to serve their best. Their main focus is quality of product.
Differentiation and Positioning: Positioning Map: The positioning map between Pizza hut and Domino’s is given below Price High
PIZZA HUT D i f f e r e n t i a t i o n : By creating product. In those brunches they have a service goal that is to give every customer a reason to return.
People Differentiation: Pizza hut has gained a strong competitive advantage through people differentiation by hiring and training skilled. For an example. which is another advantages for Pizza hut.They have selected product according to those characteristics. Profitable: Pizza hut always tries to serve best within standard price and their business is also profitable. They have different logo. 5.
Selecting an Overall Positioning Strategy: PRICE MORE THE SAME LESS
. But their main focus is proper quality of product. Preemptive: It’s not easy to copy design of pizza hut. 4. By this it has made channel differentiation. Distinctive: Pizza hut doesn’t follow other company’s concept. Choosing the Right Competitive Advantage: Important: Pizza hut gives much importance to product quality rather than any other feature. Affordable: pizza hut always tries to serve best within standard price. For that reason customer really identify them in the market. sincere. with around 42000 people working in more than 100 countries. educated people. color and celebrity who promote their products. Pizza hut is present all around the globe. Image Differentiation: Pizza hut logo differentiates from the other companies. Superior: Pizza hut gives priority in quality and taste for their products. on all countries.they import spicy ingredients and chicken from the foreign country.
Less for much less: Companies offer fewer benefits with fewer prices. But it is not applicable for pizza hut. But pizza hut is not the example of more for the same. Some times pizza hut offers such benefits to the customers.
Pizza Hut's Mission Statement /Positioning Statement “We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. And Rewarding Careers in a Fun. But it is not applicable for pizza hut. Pizza hut always provides best quality with high price. More for less: More for less positioning involves providing the more benefits at lower price. "I'll be back!" We are the employer of choice offering team members opportunities For Growth. Safe Working Environment. More for the same: Companies can attack a competitor’s more for more positioning by including a brand offering comparably quality but at a lower price. The same for less: Companies offer same benefits with fewer prices.
. Every customer says. For example at the month of Ramadan they offer unlimited pizza at a fixed price.MORE
MORE FOR LESS
More for more: More for more positioning involves providing the most upscale product pr service and charging a higher price to cover the higher costs. Advancement.
E. respond to the voice of the Customer . Product: Pizza hut has unique design. brand name. Promotion: Pizza hut is being promoted through advertisements. Their channel coverage. consumer promotion. public relation.
.S PASSION for excellence in Doing everything EXECUTE with positive energy and urgency. and point of sales.L. For this reason it is quite popular. Pasta
Measure Personal Pan Pizza/ Medium/ Family Size/ Per cup Per plate
PRICE (TK) 310/550/1020/=
Tea/ Coffee Salad
Place: Pizza hut makes its product available to target consumers. though their products are available in every outlet of pizza hut.R. feature. assortments. Though pizza hut is well trust brand but they hardly use there brand name while pricing. Price of some goods is given below:
Brand Pizza . Marketing Mix: The marketing mix consists of everything the firm can do to influence the demand for its product.• P.A. They offer standard price but high quality. Price: Pizza hut charges price according to there costing. locations are very well planned. They offer deserts beverage salad. They mainly focus on quality. ACCOUNTABLE for growth in customer satisfaction and Profitability. They targeted mainly populated area such as Dhaka & Chittagong. services. and good quality & products. pasta or pizza items mainly. LISTEN and more importantly. RECOGNIZE the achievement of others and have fun doing it.
At present it is trying to attract the attention of younger generation. Point of Sales: Sponsor on different programs
Pizza Hut topics is discussed in the preceding chapters. etc. Unlimited pizza in Ramadan. Pizza hut is not facing hard competition from other brands. It’s tactfully promoting its product in Bangladesh. Print (newspapers and magazines) 4. posters) 3. Pizza Hut has done considerable amount of research to analyze the consumer profile of Bangladeshi market. * Free pizza at winning games Public Relation: Pizza Hut arranges different kind of programs to create social awareness. It becomes very clear to us that pizza hut‘s products holds a favorable position in the consumers mind.Advertisements: 1. Pizza hut is trying to position itself
. Outdoor (bill boards. Television 2. family. Consumer promotion: * Free offers Ex.
The way Pizza hut is trying to position and promote itself is very logical and we can see only success in the days to come.in the higher end of Bangladeshi market.
BOOK (Principles of Marketing)
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