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Brand Pizza Hut Final
Brand Pizza Hut Final
Pizza Hut
Submitted to:
Mr. Noman Ashraf
Submitted by:
Muhammad Bilal Wajid Youns Khan Khattak Syed Awais Ali Sana Razak Samia baig Idress Waris 2520 2050 2708 2849 2853 3095
Letter of Transmittal
Course Supervisor Brand Management Date: 18 Dec, 2010 Respected Sir, Subject: Letter of Transmittal
We have given task to make a Report on a Brand. For that we have selected Pizza Hut. The following are the main points which we discussed in this Report. History of Pizza Hut Pizza Hut in Pakistan SWOT Analysis Marketing Strategy of Pizza Hut Brand Strategy of Pizza Hut Recommendations We have included almost every point relevant to the topic. You are free to ask any query & classification regarding this Report to us.
Your obediently, Muhammad Bilal Wajid (iu_bilal2520@yahoo.com) Youns Khan Khattak (younskhan08@yahoo.com) Syed Awais Ali (awaisali_1985@hotmail.com) Samia baig (samiabaig@hotmail.com) Sana Razak (cancer_superb@hotmail.com) Idress Waris (idress1988@gmail.com)
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Acknowledgement
IN THE NAME OF ALLAH THE MOST BENEFICENT AND MERCIFUL
This report is an example of a great teamwork and cooperation among group members. As business students this is our initial learning to work collaboratively with mutual understanding, mutual consent and cooperation. The same learning in the educational field helped us to achieve our educational goals related to each subject. This report as a whole is a representation of a group to work with each other and help and supported each other on every step. For this report firstly we are very much thankful to all of the personalities which helped us to collect information regarding Brand Management report on Pizza Hut. Afterward we are also in indebted to IQRA UNIVERSITY which opened the new windows of education for us; we also want to say thanks to our beloved teacher Sir. Noman Ashraf without whom we might never become able to understand the concept of our current offered subject.
Brand Management
EXECUTIVE SUMMARY HISTORY OF PIZZA HISTORY OF PIZZA HUT INTRODUCTION Yum! PIZZA HUT IN PAKISTAN Pizza Hut Outlets in world PIZZA HUT'S MISSION STATEMENT VISION PRODUCTS MARKET SHARE COMPETITOR ANALYSIS SLOGANS UNIQUE SELLING PROPOSITION of Pizza Hut ENVIRONMENTAL AND INTERNAL ANALYSIS OF PIZZA HUT Marketing Objectives STP Marketing Strategy Brand Strategy Conclusion Recommendation Reference
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EXECUTIVE SUMMARY:
During the past four decades Pizza Hut has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized Pizza Huts business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future. There are different objectives of every organization. In order to achieve these objectives different targets are set. Targets pass down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives, management decides on different strategies. These strategies are divided into many sub-parts and are useful for the running of the business. The employees and the management know what they have to achieve through the targets which have been set to them and the strategies they have adopted help them know the way they will achieve the objectives. Similarly, Pizza Hut has different targets set to them and they have adopted different strategies to successfully achieve the targets set. These targets are set by the RSC i.e. the restaurant support centre in Karachi. These targets are passed on to the RGM (restaurant general manager) and he passes them to the workforce. These targets fall within the organizational structure in which there are many people who have different targets to achieve. In order to successfully achieve the targets they need to co-operate and work in a friendly environment.
HISTORY OF PIZZA:
About Pizza, Some will tell you Italy. That's wrong. What you know as pizza came into vogue around the time of Napoleon and the French revolution. Italians, known to be lovers of fine food and wines perfected and imported this terrific dish to America. From here it quickly endeared itself to mass production and re-export to the rest of the world. Bon appetite!
1965 "Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial. 1967 A Pizza Hut restaurant was built in five days by franchisees at the Oklahoma State Fair. World's largest pizza (six feet in diameter) is baked and served at the grand opening of a Fort Worth, Texas Pizza Hut restaurant. 1968 International market entered with opening of Pizza Hut restaurant in Canada. Pizza Hut serves a million people a week at its 310 locations. 1969 Red roof adopted for restaurants.
First Pizza Hut restaurant opens in Mexico. Construction begins in Munich, Germany and Australia. 1970 Sandwiches added to basic menu of Thin 'N Crispy pizza, salad, beer and soft drinks. First restaurant opened in Australia. 1971 Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number of restaurants. 1972 1000 restaurants are open throughout the USA. 1973 Pizza Hut went international with restaurants in Japan, Canada & o England. The first UK Pizza Hut opened in Islington, London. 1977 PepsiCo bought Pizza Hut. 1980 Pan Pizza was introduced. 1982 The UK joint venture started between PepsiCo and Whitbread.
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1984 Over 50 restaurants in UK. 1986 By now, there were 100 restaurants in the UK and 5000 worldwide. 1987 An average of one restaurant opened each week in the UK. 1988 The UK's First Delivery Unit was opened in Kingsbury, London. 1992 There were 9,000 restaurants in 84 countries. 1993 There were 300 restaurants and delivery stores in the UK. 1994 10,000 Pizza Huts were open for business. 1997 PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in the World.Tricon became the partner company with Whitbread. 1999 Pizza Hut had over 400 restaurants, employing 14000 people. 2002 Tricon Global became YUM! Brands Inc. 2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum! 2008 We bought Godfather's Pizza in Ireland with 28 stores.
INTRODUCTION:
Pizza Hut is a world-recognized leader of the pizza industry with the most popular pizza, pasta and wing choices. A subsidiary of Yum! Brands, Inc. (Yum!), Pizza Hut, Inc. has more than 6,000 restaurants in the United States and more than 5,600 restaurants in 94 other countries and territories around the world. As a Pizza Hut franchisee, you have the ability to bring a familiar brand of pizza to your surrounding community at an affordable price. Customers know and recognize the Pizza Hut brand and love the product that's why Pizza Hut is America's favorite pizza! You will be given the tools and unparalleled support to run a successful business and to leverage the power of Pizza Hut.
Yum!
Pizza Hut's parent company, Yum!, is the world's largest restaurant company in terms of the number of restaurants with more than 37,000 locations in more than 120 countries and territories and more than one million associates. The Yum! System includes three operating segments: U.S., International and China Division. Outside the United States in 2008, the Yum! System opened more than four new restaurants each day of the year, making it the largest retail developer in the world.
Execute with positive energy and urgency Accountable Recognize for growth in customer satisfaction the achievements of others
Vision:
The vision of the PIZZA HUT is that reach on the top of the peak to provide best service and taste & To see Yum on customers face.
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Products:
Pizza hut product line includes Pizza, Beverages, Desserts, Pastas, Sandwiches, Soups And Salads and Starters. Pizza: Pizza includes Supreme (Chicken Supreme, Super Supreme), Chicken feast (Chicken Tikka, Chicken Fajita, The Euro, Fajita Sicilian), Local delights (Shawarma Pizza, Chicken Tandoori Pizza, Karahi Chicken Pizza, Behari Chicken Pizza), Beefy treats (Meat Lovers, Hot & Spicy), Classic Pizza (Cheese Lovers, Veggie lovers), D.L.Y Pizza (Margherita), Splitzza. Beverages: Beverages include Soft Drink, Fresh Lime, Mineral Water, Orange Juice, Cappuccino, Hot Tea, and Coffee. Desserts: Desserts include Strawberry Cheesecake, Lemon Cheesecake, Chocolate Cheesecake, Ice Cream, Triple Treat, and Brownie a la Mode. Pastas: Pastas include Lasagna Florentine, Creamy Tomato Penne, Fettuccine Alfredo, and Spaghetti Bolognaise. Sandwiches: Sandwiches include Philly Steak Sandwich, Mexican Chicken Sandwich, and Tuna Melt Sandwich. Soups And Salads: Soups And Salads includes Sweet Corn and Chicken Soup, Mexican Tomato Bean Soup, Chicken Caesar Salad and Salad Bar. Starters: Starters include Chicken Wings, Spicy Wedges, BBQ Chicken Spin Rolls, Cheese Stuffers, Kebab Stuffers, Bruschetta, Flaming Wings and Behari Chicken Spin Rolls.
Market share:
As there are Dozens of Pizza Suppliers Globally Providing Services in different part of the World, but Pizza Hut is the One who got the Bigger Market Share Globally. This is the Survey taken by www.survey.com that Pizza Hut is having 48% of Overall Pizza Market in the World. After that Dominos is leading with a percentage of 20% while the rest 32% is divided in the Remaining Pizza Providers Globally.
Competitor analysis:
Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas.
Slogan:
We have Pizza Now youre eating Making it great! You'll love the stuff we're made of. The best pizzas under one roof. Gather 'round the good stuff. Share the good times
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Pizza Hut- Fresh, hot pizza delivered in thirty minutes or less - or it is free
ENVIRONMENTAL AND INTERNAL ANALYSIS OF PIZZA HUT
In our visit to Pizza Hut we conducted research on PEST (Political, Economic, Social and Technological) Analysis. In the internal analysis of Pizza Hut we have considered SWOT of the Company.
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Parking facilities Advertisings are very less Fewer Outlets No Social Welfare
OPPORTUNITIES: More Outlets should be open Increased global expansion opportunities due to continued process of globalization. Sitting area should be broader Environment should be more attractive More Attractive offers should be introduced
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Diversification of new products can increase their market share. Offer deals on different occasions.
THREATS:
Competitors like Pizza in, Dominos, Papa Johns, Pizza Next etc.
New entrance like Penny Pizza in Pakistan market can affect their market share. Social factors can affect their image as a Western organization. Instant Fast Food. Other local restaurants can affect their market share by providing pizzas with lower price.
Housewives are interested to make pizza and other fast food at home
Changing consumer habits towards healthier food choices
Marketing Objectives:
Being that Pizza Hut holds the most market share in the pizza industry, the perceived quality and service of the company will help to ensure a better than average chance at a successful introduction of a new product. The pizza industry firms are famous for introducing new products to spark short-term sales. Pizza Hut as stated earlier has been very successful at accomplishing this. The introduction of a product that keeps with today's trends is also important to reduce the risk of failure. In recent years there has been an increase in the marketing of products with an extreme twist to them. Pizza Hut has the resources available to research and implement a new product with great success. Pizza Hut is the leader in innovative products and this new product that we are proposing will surely be a success, given Pizza Huts track record. With high competition from the other top firms in the industry, the introduction of a new product is necessary to keep one step ahead of the competition. The selection of pizza's offered by the competition have been significantly less creative than that of Pizza Hut in the past and Pizza Huts reputation of offering high quality, new products will allow new products to move into the market as other new offerings have in the past. With the introduction of a new product, one of our main objectives is to create recognition for our product. Our goal is to reach 85% recognition of the new product in our target market. As with all businesses, the most important goal of a company is to increase revenue and profits. With the introduction of new products we hope to increase the overall sales of the company by 7%. If we can in fact reach our goal of 85% recognition of the product, through a successful promotions mix, then the increase in sales should be easily acquired.
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Target Markets:
Pizza hut targeted market defines them as a family product. This is because they dont really directly market their customers. They are targeting everyone whereas their competitors target a certain gender or age. But pizza hut targets a wide range of customers. This is because they want to make the most money and who blames them. They have many competitors and they are bound to try everything to cope up tops. Their competitors are everywhere. There are just a few that are main competitors and pizza hut will always try to be the best and get the most money by making their products better quality but also cheaper. They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers.
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POSITIONING:
Pizza Hut was among the first multinational brands to enter the food retail sector in Pakistan. When the first Pizza Hut restaurant opened in Karachi the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. Pizza Hut went on to play a significant role in pioneering and developing this category in Pakistan. Worldwide and in Pakistan, Pizza Hut has come to become synonymous with the 'best pizzas under one roof'. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in Pizza Hut's success has been its unique dining experience. Crew members at Pizza Hut strive each day to provide 'CUSTOMER MANIA' - the kind of service that ensures that every visit of the customer is a memorable one. Pizza Hut's constant endeavor to provide extra value whether it is pizzas which are available to suit every price range, new promotions or the introduction of innovative product ranges - that puts a 'Yum' on every customer's face - has allowed it to increase its presence in Pakistan to the current 40 restaurants across 9 cities.
Marketing Strategy:
Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the diversification of the products they offer. Pizza Hut is always adding something new to their menu; they introduced some of the local taste in pizzas like Chicken Tikka, Hot & Spicy etc, trying to reach new markets. Pizza Huts Says: We want to satisfy our customer by offering them The Best. Be C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) You will Find 3Fs at Pizza Hut ( Fun, Friendly and Familiarity)
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Marketing Mix:
Product: Pizza Hut offers different pizzas to meet the needs of a variety of consumers which reinforces the differentiated strategy. They will add length to the product lines by offering products to meet the differing tastes of consumers. Product refers to the actual program you are planning. The goal of pizza hut is to develop the best product with the resources available. Pizza Hut sells pizzas in four different sizes: personal (an individual serving), small, medium and large, though most stores have done away from with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker crust than most other commercially available pizzas, so their products have help them to retain their customers and to increase them. They provide their customers with complete nutrition plan and healthy food is guaranteed. The nutrition plan also clearly tells diabetes patients can use what range of food at pizza hut. Over weight patients are also satisfied and the pizza with less cholesterol can be ordered. This encourages the customers to visit pizza hut rather than going elsewhere. As pizza hut has to boost its sales in the existing markets, so they the new food products are introduced in all branches line-byline because all branches are operated in co-operation with one another. Different products for different regions are also developed as there are choice differences. Price: Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent sales to lower the price below them. Several sales promotions and coupons will be used to lower the price below those competitors. The high/low pricing strategy has several advantages. First, this pricing strategy will help segment the market. Different groups of customers are willing to pay different prices for the same product. The high/low pricing strategy will also create excitement. Finally, this strategy will emphasize product and service quality. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent. Promotion: The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behavior of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers. Pizza huts also using marketing techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts try's to attract the younger generation as their main market
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segment. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines. Advertising camping will creates awareness of the products in our target markets. Advertising through Bill Boards News Papers Personal Selling Visit to School & Colleges Sales Promotion (Discounts) Pizza Hut offers annually an "All you can eat" in the Holy month of Ramadan. Place/Distribution: The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also useful when there are a large number of buyers, but a small amount purchased by each. Pizza Hut uses two different methods of selling its products directly to the market. The method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of time, place an order, and the order is delivered to the customer's home. Another method of distribution is for customers to dine-in. Customers can go to the nearest Pizza Hut, place an order and either leave with the order or eat at the restaurant. One of Pizza Hut's largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas, salads, coffee in family atmosphere.
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Pizza Hut Delivered Pizza to space in Year 2001 Which made them More Famous and a New Slogan came into Being that Wherever there is life, there will be Pizza Hut pizza.
togetherness. The symbol must always be adjacent to the Red Roof icon when it is used as a graphic element.
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According to the survey results, it was voted highest in its category on the attribute of Quality whereas Familiarity was found to be second most voted feature as the brand name itself explains the product. It has been noted that certain other brands of Pizza are also entering the local market as till to date it is only the Pizza Hut which is catering to more than 90% Pizza restaurant business in Pakistan. Therefore, it gives an ample chance to a second player to enter into the market. Today because of its quality image and good promotion campaigns it is the most acceptable brand in Pizza restaurant business in its category. As we have already mentioned that it caters the high income group therefore, Affordability was not given considerable value by the consumers. It is important to mention that Availability was voted lowest.
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Conclusion:
At the end of this report being the students of MBA, we craving to conclude our report in few words based on facts and figures. food being one of the basic need is essential for every one so the business of any food item has much scope in all over the world, the people of Pakistan by getting money are running after the luxuries and status values, and are paying thousands of rupees just for the sake of delight, pleasure and diversion, this creates the best scenario for "Pizza Hut" to penetrate in Pakistani market by increasing its outlets all over the country, by allocating its marketing budget, improve its services, providing the best quality at reasonable price, the more important is to launch some new flavors that suits Pakistani culture and love by the people.
RECOMMENDATION:
PIZZA HUT is working in a very manner way, no doubt. But the problem is just this in my view that it is just for high class. Normal person can not afford pizza hut. Means the cost of PIZZA HUT is very high. So, in my view, PIZZA HUT should less price for low class or normal person or introduce some special packages for the normal man. Except this, everything is going good in PIZZA HUT.
RERERENCES:
Muhammad Ammar Assistant Brand Manager MCR (PVT.) LTD. (021-34140842) Ext 135 Franchisee of Pizza Hut, 7th Floor, Shahnaz Arcade, Shaheed-e-Millat Road, Karachi, Pakistan. Board: (92-21) 3491-4000 Fax: (92-21) 3491-6022
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