University Of Management and Technology

Marketing Management

Market Segmentation and Target Market Of Pizza Hut Pakistan

Name Serial No ID No Section Date

Khawaja Naveed Haider 28 073605-085 B Wednesday, April 01, 2009
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University Of Management and Technology, Lahore

About Pizza Hut:
Pizza Hut is the company owned by Yum! Brands in 1997 by Wichita and Kansas. The headquarter is located at Texas USA. The company is engaged in restaurant industry producing wide range of pizzas, pastas etc… History: By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by PepsiCo, who later also bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in 2002 joined with Long John Silver's and A&W Restaurants to become YUM! Brands. Pizza Hut has opened Pizza Hut Express which specializes in small 6" pizzas. The oldest continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district known as Aggie Ville.
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Executive Summary:
Pizza Hut has built the strong reputation of its brand throw giving the quality products and earned the respect from its customers. Its innovation and quality with commitment took higher and higher during past few years. But still the company is planning to go and capture more market share. The employees and the management know what they have to attained through the targets which have been put to them and the plans they have assumed help them recognize the way they will accomplish the objectives. Similarly, Pizza Hut has diverse targets set to them and they have adopted different strategies to successfully achieve the targets set.

University Of Management and Technology, Lahore

Market Segmentation:

Market segmentation of Pizza Hut is quite simple and easy to understand. I’d like to discuss the market segmentation of pizza hut in headings of variables of it. Geographic: Geographic segmentation of Pizza Hut is worldwide. Now Pizza Hut is serving more than 80 countries including Pakistan, UK, USA, Algeria, India, Russia, Cyprus, China, and Bangladesh etc… But we’ll talk about the Pizza Hut Pakistan. Pizza Hut Pakistan’s geographic segmentation is the developed cities. Pizza Hut is available in Lahore, Karachi, Islamabad, Faisalabad, Hyderabad, Multan, Peshawar, Sialkot, and Rawalpindi. We can observe that pizza hut is available on all provincial capitals of Pakistan. Demographic: Pizza Hut’s general market segment is younger generation. But they go wide in this thing. They segment high incomes and business class families which can spend money on the best pizzas in the market. Pizza Hut’s global slogan is also describing its market segmentation that is “Now it’s time to eat more”. But in Pakistan, the slogan is “Share the good times”. Main age group is 12-30 years. Pizza Hut Pakistan offers Halal foods to all its customers. Psychographic: Pizza Hut’s psychographic segmentation includes people with having good attitude about food sense especially pizza group and they want to have a good time with their friends and family as described in Pizza Hut Pakistan slogan. It serves all types of personalities as they don’t have any product for specific personality. Behavioral: Pizza Hut’s behavioral segment is the class where people love to spend money on eating. That’s why in Pakistan, Pizza Hut M.M Alam Road Lahore is the second largest outlet of the pizza hut outlets generating more than $150,000 a month.

University Of Management and Technology, Lahore

Target Marketing:
Pizza hut targeted market defines them as a family product. They don’t really straight market their customers. Middle and high class family background people are the target market of Pizza Hut. Like it has been discussed above about the people who are highly paid employees and good businessmen is the target market of Pizza Hut. But pizza hut focused a broad variety of customers. We can also say that Pizza Hut is targeting the generation X which is more active in spending money on non essential things like eating. Pizza Hut is also offering products for vegetarians. The company is offering meet free pizzas with salad and pasta so that people who don’t want to eat meat could enjoy the quality and best food of Pizza Hut. Pizza Hut is also very good place for the students of colleges and universities. Many students arrange the treat parties in Pizza Hut that made Pizza Hut to earn more and more. Sometimes, it becomes hard to get a single seat in Pizza Hut due to all its good and attractive offers and marketing mix. Pizza Hut is targeting their customers by two types. • Dine In

• Take Away

University Of Management and Technology, Lahore

Dine in is for those who love to have good times with their friends and age fellows and some families. Take away is for those who don’t have reach to any Pizza Hut outlet and they want Pizza Hut products. They can give the order on phone and may have their pizza at their home within 30 minutes as per policy of Pizza Hut. Pizza Hut is also offering different kinds of meals to their customers. If anybody is not interested in Pizza Hut, Pizza Hut has targeted those customers too. It offers pastas, sandwiches and desserts to those kinds of people. People who’re ill or not allowed to have pizzas, pastas can enjoy Pizza Hut’s meal deal with soup and salads. Pizza Hut also targets to executive class people for meetings and discussion by offering them its hot and cold deals. Pizza Hut also arranges tea parties to those customers according to their agenda and time.

Basis Of Selecting Target Markets:
There are number of basis on which pizza hut selects those target markets for their business. Number one is that they want the people with a bit high income and food lovers. Who are ready to spend and enjoy the best food in best environment. There are not only Muslims in Pakistan but also some minorities that are living their lives. They want some vegetarian food and pizza hut is the only brand that offers some vegetarian stuff to their customers. Due to the image of brand, vegetarians trust pizza hut for best food in town. Visitors, who come to Pakistan, don’t go back without paying visit to Pakistan’s food market. Pizza hut has also selected it’s target market on the basis of this thing so that it could provide the more and more to their customers and more than just food as the pizza hut Pakistan slogan is “Share the good times”.

University Of Management and Technology, Lahore

Pizza Hut has also selected its target market because of the X generation which is more active than the previous generation. X generation is more aware about the things as the time is going with new technologies in every sector. X generation wants the food which can fully satisfy their needs and hunger so that it could be the most memorable times for them. X generation especially in Lahore is more active in fast food as the time is so fast and they want quick meal on their tables. X generation is spending a lot in their food needs.

Consumer Profiling:
Pizza Hut’s customers are offered different kinds of food according to their needs. The whole customer profiling table is given below which shows the complete analysis of Pizza Hut.
Characteristics Products Pizzas Soup and Salad Pastas Demographic 10-40years, male, female 8-40years, male, female 10-50years, male, female 10-40years, male, female All but Prefered more than 25 years male, female All Geographical Major Cities of Punjab, Sindh Sarhad Major Cities of Punjab, Sindh Sarhad Major Cities of Punjab, Sindh Sarhad Major Cities of Punjab, Sindh Sarhad Major Cities of Punjab, Sindh Sarhad Major Cities of Punjab, Sindh Sarhad Economic Student or young professional, 20,000/month Student or young professional, 15,000/month Student or young professional, 20,000/month Student or young professional, 20,000/month Young professional, Executives. 10,000/month Student or young professional, 10,000/month Social Middle and Upper Class Almost All Middle and Upper Class Middle and Upper Class Middle and Upper Class Almost All

Meal Deal Hot n Cold Desserts

University Of Management and Technology, Lahore

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