MARKETING PLAN

Prepared By:

ATENCIANA, TONI ALYSSA

CABORNAY, RACHEL

DIZON, CAROLINE

HRDM 4A
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recipient also agrees not duplicate or distribute or permit others to duplicate or

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BOUND BY THE AFOREMENTIONED STATEMENT.

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 the strength of its heritage, its culture and its people and franchise. Pizza Hut

looks forward to more success in future. There are different objectives of every

organization. In order to achieve these objective different target are set. Targets pass

down to hierarchy depending on the nature of the business. Therefore, in order to

achieve the objectives, management decides on difference strategies. These strategies

are divided into many subparts 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 target set.

These targets arrest by the RSC i.e., the restaurant support centre in Karachi. These

targets re 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.

MISSION

The mission of the Pizza Hut is to improve the wellbeing of their customers by creating

a family atmosphere and a family dining experience. They promote family values and

are dedicated to helping with community projects and values as well.

OBJECTIVE

Pizza Hut objective is to attain QSCV at all of its restaurant where:

 Q is Quality

 S is Service

 C is Cleanliness

 V is Value
1. SITUATION ANALYSIS

1.1 Industry analysis

1.1.1 Market Characteristic

When compiling this year’s Pizza Power Report, three themes kept appearing again and

again: quality ingredients, technology and the youth culture. Consumers are

increasingly insisting on the freshest, healthiest ingredients, a trend driven largely by

younger segments of consumers, who also demand the highest technology available to

facilitate ease of ordering and delivery.

But, despite evolving approaches and consumer demands, the state of the pizza

industry is strong. According to a Technomic study, 83% of consumers eat pizza at least

once per month. According to PMQ’s 2018 Industry Census, 60.47% of respondents
reported an increase in sales over the previous year. Internationally, pizzerias are

thriving, with a five-year forecasted growth rate of 10.7%.

China continues growing, and everyone wants a piece of the pie. PMQ China projects

that Pizza Hut will open a whopping 1,000 new units throughout the country in 2019,

while Papa John’s and Domino’s are estimated to open 50 new units each. Other

projected players include Sazeriya (Japan), Mr. Pizza (South Korea) and Dodo Pizza

(Russia), planning to open 100, 50 and 20 new stores, respectively.

 1.1.2 Trends and Driver

Even in a market as well addressed as the pizza industry, opportunity abounds. There

are a number of key trends to keep in mind if you’re thinking about taking the plunge:

 Healthy options – increasingly the American consumer is trying to improve their

lifestyle. They are exercising more, shopping for more natural and wholesome foods,

and frequenting restaurants that offer the same. Pizza parlors that provide a diverse

menu – most offer robust salad options already – will continue to benefit.

 Environmentally conscious – particularly for the huge millennial population, they

are looking to frequent establishments that want to do more than make a buck – or

at the very least, make that buck in a responsible manner.

 Fast casual restaurants are the fastest growing segment of the restaurant market,

and the “step-up from fast food” is finding great success in the pizza market. Fast

casual pizza is focused on winning the lunch crowd, while traditional pizza stores

focus on dinner and delivery. These new chains are thought to compete more with

restaurants like Chipotle than the local pizza shop.

 Technology enablement – pizza chains are making great strides by creating a

robust online presence and providing easy online and mobile ordering.

Of course it all depends on your local market – if you’re interested in pursuing a pizza

business make sure you understand the local tastes and or course the competition.
 1.1.3 Legal, Political and Economic Factor

Political issues include regulatory frame work operating in judicial system which may

affect the business in different ways. There are not many political factors in London

affecting Pizza Hut as is lack of competition. Factors such as laws on business

employment, pollution and taxation apply on the organization which it has to follow

regarding the rules.

If the county’s economy is better so the GDP of the country will be good, this is a green

signal for the business as the per capita income of the people will be increased and they

will spend more money. In our survey we came to know that most of the people in the

beginning of the months spend more and they visit pizza hut very often. When the

inflation rate increases the cost of raw material also increases and this leads towards

high prices of the products and vice versa.

1.1.4 Social Factors

Pizza hut is a multinational and it is basically originated from America so the

organization is overwhelmed by western culture. There are social forms of society which

consist of Upper class, middle class, middle upper class, lower class and lower class.

Every country has cultural norms, values, beliefs and religion which can affect the

organization.
 1.1.5 Technological Factors

Now a day’s technology is improving so as baking and heating ovens will be of new and

efficient technology and will provide efficient service. Due to new technology there are

new ways of marketing like internet; telemarketing and the organization can advertise

their products with much more faster pace. Computer based customer data that is MIS

(managing information system) helps in collecting customer data, daily transactions,

future forecasting and decision making. New vehicles will make their service more

efficient.
 1.2 Sales Analysis

Global pizza chain Pizza Hut’s average sales per unit reached approximately 878

thousand U.S. dollars in 2017, down from 900 thousand the previous year. Sales per

store have remained reasonably steady over the years, with the lowest figure being 725

thousand U.S. dollars and the highest at 900 thousand. Pizza Hut is owned by YUM!

Brands, which is also parent company to restaurant chains Kentucky Fried Chicken

(KFC) and Taco Bell. Out of all the quick service chains in the U.S. Pizza Hut ranked

thirty ninth in terms of sales per unit in the U.S. - placing after its sister companies,

which had average sales per unit of 1.6 million U.S. dollars (Taco Bell) and 1.21 million

(KFC). Topping the list was chicken chain Chick-fil-A with average sales per unit of 4.17

million U.S. dollars. Pizza is a popular dish with people all over the world - especially

U.S. consumers. In a 2018 ranking, Pizza Hut placed second in terms of pizza chain

sales, having generated 5.53 billion U.S. dollars. While this was a valiant effort,

Domino’s Pizza ultimately ranked first with over six and a half billion U.S. dollars in

sales in 2018.
1.3 Competitors Analysis

1.3.1 Competitive Landscape

 1.3.2 Key Players

Domino’s Pizza

Domino’s Pizza is apparently one of the direct competitors of Pizza Hut. The reason for

this is because they both offer more or less similar product and service in the industry.

Domino’s also majors in providing pizza delivery and takeaway to its customers. With an

operating income of approximately $455 million per year, it demonstrates that it is indeed

a strong contender in this particular sector hence it is equally fundamental for it to be

considered in any case.

It is estimated that Domino’s Pizza has a total worth value of about $720 million as of the

end of 2016. It continuous expansion in the last decade again is a clear indication that
the potency of this particular fast food chain of restaurants should never be

underestimated. Domino’s Pizza is without a doubt the biggest Pizza Hut Competitors.

McDonalds

Statics in the quick service industry shows that McDonald’s is the leading fast food outlet

in the world considering all aspects. It covers quite a considerable percentage of the

market share both locally and internationally. Its efforts to expand to more and more towns

have also been fortunate making it the leading fast food joint with the highest number of

units worldwide. McDonald’s net income as of the end of 2016 was estimated to be over

$4.7 billion per annum, making it the highest earner of all these restaurants. McDonald’s

also has more than 37,000 restaurants worldwide making it the largest fast-food chain in

regards to a number of units globally.

KFC

One particular element that the Kentucky Fried Chicken, popularly referred to as KFC has

perfectly mastered is the art of creating brand awareness. It was founded in Kentucky,

but the level at which it has spread its operations to a wide range of towns and cities in

different parts of the world is astonishing.

As a matter of interest, KFC invests a considerable amount of money in doing its ads that

help it much in acquiring new locations for their units and subsequently new customers

for its products. It is a strong competitor in the fast food industry and on many occasions

often ranked second after McDonald’s in some aspects including sales volume, units, and

revenue among others.

Starbucks

Starbucks is another quick service competitor based in the US and specializes in offering

coffee. Actually, Starbucks covers over 40% of the US market share as far as coffee

chain industry is concerned. It is not a direct Pizza Hut competitor since it majors in

serving coffee and other breakfast menu but nonetheless offers competition on the basis

of market share and control of the industry.

Starbucks has a total assets worth of about $14.5 billion, which clearly illustrates how big

its muscles are in the industry. Starbucks also invests handsomely in ads hence making

it easy for its brand visibility to increase in many parts of the world.
Subway

Subway is apparently the largest QSR sandwich in the US. It has continually expanded

since its inception to become a significant competitor in the quick service sector. In the

US alone, Subway had been able to generate sales value of approximately $11. 5 billion

in the 2016 fiscal year.

This is attributed to several facts that it has been consistent in creating its brand

awareness through ads, which it has really invested on to a tune of over $500 million in

the 2016 fiscal year. Its number of store especially in the foreign market has also been

increasing steadily thus putting it in a better place as a noteworthy competitor in this

industry.
Burger King

Burger King is another competitor in the fast food service industry that has come out

strongly to create a solid foundation. It has progressively grown to become a famous fast

food joint that serves burger both in the US and global market. As of the end of 2016, the

worldwide revenue for this particular company was approximately $1.2 billion making it

among the top-ranked in the market. he company also spends a relatively vast amount of

money every year as a way of establishing more and more locations for eventual

increased revenue and expansion. In 2016, its net income was $234 million, which is

slightly lower than what they’d spend but a projection of higher figure in 2017 was

inevitable.
Dunkin Donuts

Dunkin Donuts is also another strong competitor in this quick-service industry that

specializes in offering donuts and coffee. It has also become among the top competitors

in this sector by virtue of its sales volume, which has increased in the recent past. This

particular company has opened a wide range of stores in American towns and cities as

well as other parts of Europe.

Many people are associating with it since it not only serves coffee but also offers

breakfast meals, cold and hot beverages and an array of baked goods. It is thus a strong

competitor to watch out in this industry.

Taco Bell

People from different walks of life have a preference for the ideal type of food to eat at

varied times. It is this particular idea that Taco Bell capitalized on and chose to specialize

in serving Mexican dishes. So far, it has succeeded vehemently in the industry going by

a wide range of stores that it is opening as well as the amount of revenue collected every

given financial year.

Taco Bell has severally been ranked in different years as the leading fast-food outlet in

the US, which apparently demonstrates that it is a big brand worth watching out. Its net

worth has also increased significantly in the last decade.

Chipotle

Similar to Taco Bell, Chipotle also identified a gap that was left in the fast service industry

and took advantage of it to make hay. Since its establishment, it has continuously served

its customers with a wide range of Mexican dishes including tacos, burritos and other

meat and vegetarian varieties.

Chipotle has also expanded and has established quite a number of its stores in major

cities across the world. What that implies is that it tries to reach out to its potential

customers in some of the areas that the demand for their products may be necessary. As

such, Chipotle is also regarded as one of the principal competitors in this industry.
Wendy’s

Wendy’s started as a small quick service restaurant in Ohio. However, it is the sheer

determination which the founder had that drove it to where it currently stands. Its upsurge

in the American market happened so fast, and within the shortest time possible it had

dominated the area.

Wendy’s have over the past served a wide range of fast food dishes including burgers,

baked products, ice and hot beverages and fries among others. This array of products

served is one of the elements that has made it possible for the brand to grow and become

popular in different parts of the country and region as a whole.

Tim Horton’s

It is an open fact that Tim Horton’s has made a name as the leading quick service

restaurant chain serves coffee in Canada. What is nonetheless, little known about this

success is that several businesses dealing with other competitors have played major roles

in ensuring that the dominance of this particular company in this sector become a reality.

The amount of money invested in creating brand awareness for this company every year

is also significant and has played a role too in ensuring that the brand is marketed

efficiently and acquire a new customer base. Tim Horton’s therefore still remains a key

player in the industry primarily in the Canadian market, where it apparently enjoys a

market share of almost 50%.

Papa John’s Pizza

One aspect that makes Papa John’s Pizza a worthy competitor in the quick service

industry is the fact that it has been consistent with delivering quality service to the

customers. What we got to understand is that customer loyalty can on many occasion

help drive a brand.

And for that matter, it is what happens to Papa John’s Pizza, which ultimately makes it a

strong competitor in the quick-service industry. Papa John’s Pizza kind of approach to

serving its customers is innovative, and it has seen it expand to different locations not

only in the US but also in other international markets.

 1.3.3 Key Players vs. Pizza Hut

1.3.4 Competitive Advantage

Pizza Hut has the first mover advantage in the pizza chains because of which it has

developed a strong customer base which is one of its strengths. In the Pakistani QSRs

industry, the delivery service of Pizza hut is clearly a competitive advantage that it

enjoys. Pizza hut’s delivery service is one of quickest and the pizzas delivered are oven

hot in the real sense of the world. Pizza Hut is often referred to as „Pizza Innovation

Leader‟ because it is constantly coming up with new varieties of pizzas to appeal the

different audiences and at the same time, people at the pizza hut have a really good
idea about which varieties are appealing to the customers and they are thus retained

in the menus. The first mover advantage is an advantage that Pizza hut was born with

but time, Pizza hut has been successfully creating competitive advantages like a

traditionally strong brand name for itself and the quality service that it provides.

1.3.5 Strategic Group Map

SWOT Analysis

(S)trengths
 Strong Brand Name

 Brand recognition is major strength for Pizza Hut. Pizza hut has the strong brand
name and a market leader by providing large range of pizzas that strong image of pizza
hut will make it easy to launch new pizza in the market.

 Loyal customers

Loyalty of customers is strength of Pizza Hut. The loyal customer will also help the Pizza
Hut to launch new pizza in the market.

 Strong financial position

Pizza Hut has excellent international turnover and strong financial position will also help
in new pizza’s financial matters.

 Specialized in pizzas

Pizza Hut is specialist in pizza making and this specialty will create a strong perception
in customers mind for our new pickle pizza.

 Subsidiary of Yum! Brands,inc

Yum is the world’s largest restaurant company and Pizza Hut is subsidiary of Yum brand.

 Full service restaurants

Pizza Hut provides a full service restaurant and delivery services which some of the pizza
Hut’s competitors are not doing. Because of restaurant facility Pizza Hut can market
some other segments like families that other pizza chains cannot.

(W)eaknesses
 High priced

Pizzas at Pizza Hut are high priced. This is the greatest weakness Pizza Hut has in the
market as compared with others.
  Higher overhead costs

Pizza Hut has higher overhead costs, due to the restaurant services and extra facilities
that other competitors do not have to deal with.

 Fewer outlets:

Pizza Hut has the lesser number of outlets and consumers feel difficulty to find pizza
Hut. The Pizza Hut chains are not spread as compare to the other fast food restaurants.

 More focused on western taste:

Pizza Hut is more focused on western taste and less on others. The new arrival will also
helpful to overcome that weakness.

(O)pportunities
 New Pizzas with different sizes and taste

This opportunity is always open for pizza hut to come with new tastes and sizes and
served the better than others. We can generate more revenue with our new innovative
pizzas. Pickle pizza will help us to take full advantage of that opportunity.

 Halal pizza

Pizza Hut has the opportunity to provide the Halal pizzas and capture a new segment
which will increase the market share of pizza Hut.

 Number of outlets

Pizza Hut has the opportunity to expand the business so Pizza Hut should open more
outlets to increase market share and compete will with others like McDonalds.

(T)hreats
 Increased completion

The competitions in fast food industry is increasing day by day, this increased
competition reducing the profit margins in the industry and also cause a great decrease
of market share.

1. Low prices by competitors

The prices of the competitors are the major concern for Pizza Hut. The competitors are
offering low prices to the customers and have competitive advantage over Pizza Hut.

 Frozen pizzas:

Other competitors to take into consideration are frozen pizzas that are available in super
stores and grocery stores.

Marketing Mix
As with all businesses, the most important goal of a company is to increase revenue and
profits. With the introduction of this new product we hope to increase the overall sales
of the company as well as the services and quality of the products.

Product
The reason behind our success in all over the world is uncompromising drive in
providing customers the best in terms of product quality, service, cleanliness and value.

Pizza Hut pizzas are made with fresh dough baked daily and smothered with our very
own 100% pure imported Mozzarella cheese. Pizza can be part of a well-balanced meal.
Ingredients in our pizza include mixed pickle, mushrooms, mixed peppers, black olives
(customers can add any other available topping of their choice). “Pickle supreme pizza”
will be available in all sizes in which other pizzas are available such as individual (4 slices)
– medium (6 slices) – large (8 slices). Pizza Hut has built a strong brand name that
means quality products and services. Since Pizza Hut will be introducing “Pickle supreme
pizza” customers will automatically think this is a high quality product.

Price
Pizza Hut is successfully using the high/low pricing strategies when setting the retail
price of its products. This high/low pricing strategies will help to serve more segments in
the market. The price of “pickle supreme pizza” should be set as

£5.99 for individual

£10.99 for medium

£13.99 for large

Price skimming strategy will be used as Pizza Hut sets high initial prices for its products
to send a signal to customers that its products are quality and the service is excellent.
The medium and large pickle pizza will be available in deals as well by paying £2.99
extra; customers can add salad of their own choice.

Place
At present we are using the direct distribution channels because our markets are very
large and geographically dispersed. Other reason of direct distribution is that we have a
large number of buyers, but a small amount purchased by each. Different methods of
distribution will be used for “pickle supreme pizza” as company is currently using for
other products.

Home delivery is the first distribution method by pizza Hut. Pizza hut provide the pizza
for those who want to stay at home and eat pizza.

Online ordering is another distribution method that we are using now.

Customers can go to the nearest Pizza Hut and can sit and eat there Pizza Hut provides
an excellent sitting facilities to customers where they can sit and enjoy the variety of
pizzas.

This is the most useful distribution method for our pizza. Our new pickle pizza will be
available in all distribution channels. This is One of Pizza Hut’s largest competitive
advantages is its restaurant style facility.

Promotion
This objective of the promotion is to create awareness of the new product, Stimulate
demand and change the short term behaviour of the customers. We will use different
advertisement methods to introduce ”Pickle supreme pizza” such as

 Advertisement on television
 Billboard in the main areas to get our customers
 Leaflets distribution in colleges and universities
 Door to Door distribution of leaflets
 In store promotions
 Banner ads
 Advertisement in Foot ball grounds
 E-mails
 Advertisement on the Web sites

These methods are used to promote our product in the market. We use different types
of advertisement to create awareness in our target market, we use leaflet distribution in
universities to create awareness in student about our product. Advertisement on
television in very expensive but we will use that method in the introduction stage of the
product where intensive marketing in required. The objective is to create awareness
among 90% of our target consumers about the new product.

People
Pizza Hut’s providing a very comfortable working environment and our employees are
very flexible and they can adopt any change in product with great ease. We will arrange
training sessions for employees to upgrade their skills according to the new product. We
will put all our efforts to satisfy our employees.

Process
We will not compromise on quality and services in our restaurants. Our process will
remain up to the mark for our new product as well. We have sufficient space for our new
product to deal with. We will provide quality food, efficient services with on time
deliveries. So our processes will continue without any problem.

Physical Evidence
Physical evidence is the place where the services being delivered. We are providing full
service restaurants with family environment and excellent services. Our new product will
also be available in restaurant’s menu and we have enough space to cover them.

Marketing Research
We will identify the market trends and the reaction of the target market towards the
product with the help of different types of research methods. This marketing research
will help us to identify the positioning of the product in the costumers mind. We will use
the following methods to conduct our marketing research

 Questionnaires

We will prepare a questionnaire that will help us in collecting primary data from the
customers. The questionnaire will be consisting of different question which will cover all
the points that will required to get the accurate research results.

 Surveys

Surveys will keep us up to date about our customers’ expectations and make us fulfils
their needs and wants more effectively. For this we would have to conduct a marketing
survey of our market and try to find out that what our customers want and what they
feel about new product. Whether they are satisfied with our product or want any up
gradation in it.

 Live Market Test

Live market test will work in two ways such as survey and promotions at one time. In
store advertisement, promotions and distribution will be done and free samples will be
offer to the people and feedback back will be taken from them. This feedback can
positive or negative but will help us in future planning of the products.

 Feedback Form

Feedback forms are also very important method of survey which will provide quick
information with very low cost. Costumers will give information about their experience
about products and services which help us to remove deficiencies if any.
 6. PERFORMANCE EVALUATION AND MONITORING

6.1 Monitoring Ad Campaigns

6.1.1 Performance Metrics

Pizza Hut is the world's largest pizza chain, with more than 12,500 restaurants in 91

countries. To remain relevant to its vast customer base, the company had to improve its

approach to capturing, structuring, and leveraging its customer data. The company

turned to Capillary Technologies, a provider of cloud software solutions to help

businesses engage with customers through mobile, social, and in-store channels.

Capillary's Lifecycle Marketer has created more than 6,000 customer behavioral groups

for Pizza Hut, helping the brand predict future purchases and execute campaigns at the

most opportune times through customers' preferred engagement channels.

Since implementing the solution in March 2018, Pizza Hut has noticed successive

increases in campaign performance, sales, and overall customer experience with the

brand. In comparison to Pizza Hut's former bulk promotions, automated life cycle

marketing with personalization has yielded a 200 person jump in average campaign hit

rates across customer segments, a 38 percent improvement in customer retention, and

a 9 percent increase in customer visits and purchase frequency.

The Payoff

Since implementing Capillary Technologies' solutions, Pizza Hut has seen:

 average campaign hit rates grow by 200 percent across customer segments;
 customer retention rates improve by 38 percent;

 customer visit and purchase frequency grow by 9 percent in just seven months; and

 sales grow by 6 percent every month since the program was started.

Outdoor

Our Campaigns will

include outdoor ads, as

they have recently

started to gain more

popularity among

millennials. Our

advertisement will be placed on billboards near interstates where high concentrations of

millennials commute to and from work. Furthermore, these ads will be placed on digital

billboards and the ads will run between 3PM to 9PM on weekdays, these schedule is

idea for targeting people who would rather order pizza than have to cook dinner when

they get home.

Social Media

Social Media is one of the main focuses of our campaign. We’ve designated a hefty

portion of the budget towards mediums such as Facebook, Instagram, Vine, Twitter,

Snapchat and other platforms. The perks of using social media as a marketing vehicle is

the ability to share content instantaneously to a large audience.

Television

Television is a great way to engrain the brand’s idea and the concepts into the minds of

consumers through repetition. Streaming services such as Hulu and Sling TV are

growing increasingly popular among millennials. Furthermore, broadcast television will

give Pizza Hut a chance to reach it’s secondary audience – those in other generations.

Internet Radio

Services like Spotify, Radio, Pandora and others are very popular among millennials.

These services offer free music streaming by requiring users to listen to short

advertisement between tracks.

New Sites

Millennilas are surprisingly up-to-date with world news. Site such as BuzzFeed,

UpWorthy, New York Times, Yahoo! News and Huffington Post are popular among

millennials.
6.1.2 Advertising Costs
6.2 Sales Analysis

6.2.1 Reporting Schedule

2013
239.2

2014 247.4

2015
233

2016 179

2017
210

2018 135

The timeline presents data on Pizza Hut's advertising spending in the United States

from 2013 to 2018. The pizza restaurant chain invested 135 million U.S. dollars in

measured media advertising in the United States in 2018. The chain is popular in the

United States - approximately a third of the population visits it at least once every six

months. Beside the U.S., Pizza Hut operates in 111 countries worldwide.
 6.2.2 Sales Breakdown

 Sales Territories

This statistic shows the countries with the largest number of Pizza Hut stores per million

people worldwide in 2018. The United States ranked second, with 24.8. Pizza Hut outlets

per million people.

In 2018, Pizza Hut was the leading pizza restaurant chain in the United States in terms of

sales.
  Customers type

Couples

Family

Broad:25-44 ABC housewives

Targeted: 25-44 ABC women

Own children 15 years under in household

Chief shopper/decision maker

Regularly visit restaurants

1.52million

Groups

Broad: 15-24 students

Living with parents/ students accommodation

In full time education

Targeted: 15-24 students

full time education

regularly visit restaurant

active social life

1.68million

49% women

51% men

73% like to treat themselves to food that is not good for them

47% like to go trendy places to eat and drink

58% spend a lot of their spare time with friends every day

78% have visited exhibitions/outings or music festivals in the past year

36% family in general

34% movies seen in the cinema

30% music listened to by self or others

23% mobile phones

23% TV programmes

32% movies seen/ planes to see

32% arranging meeting up with friends

55% has visited a pizza restaurants in the last 12 months

70% mainly in the evening

50% during the weekends

Average family income 34,124

Children age: under 5 49%

Age 5-15: 71%

 Product Packaging Format

The pizza hut box is big enough

to hold the circular pizza and can

be stacked in a way that allows it

to take up a small amount of

space. Also the design of the

cardboard makes for easy folding

to get it in the shape of the box. Then the design on the box shows in big letters PIZZA

HUT so everybody knows where this pizza is from. Then it tells people that they can

order their pizza online at their website.

The packaging is good and allows the company to transport its product to the customer

efficiently and the design on the box is an advertisement that indicates “Thank You”
message in different languages all over the world. Telling how much they appreciate

every purchased on their store.

 Product version

Pizza Hut offers more than two billion different topping combinations which includes

fresh vegetables and lean meats. The brand is committed to continually improving the

nutritional profile of our products

CHOICE

With more than two billion different topping combinations, Pizza Hut’s pizza is one of the

most customizable products on the planet. For example, ordering a Thin ‘N

Crispy® pizza with less cheese and toppings that are lower in fat (lean meats such as

chicken or ham and fruit/vegetables), can mean consumers enjoy a great tasting pizza

with up to 25 percent less fat than the regular Thin ‘N Crispy® pizzas. Customization is

made simple through the “Create Your Own” ordering feature at PizzaHut.com and

throughout all of their ordering options

New to Pizza Hut’s menu are Gluten Free Pizzas and the option to Skinny It Up. Pizza

Hut now offers cheese and pepperoni Gluten Free Pizzas in select locations throughout

the U.S. These pizzas are made with Udi’s® gluten free crust that is prepared following

a strict preparation process certified by the leading gluten free certification program, the

Gluten Intolerance Group (GIG). See pizzahut.com/glutenfree for more information

Skinny It Up Pizzas are delicious pizzas made with smarter portions, so you get the

same great flavor, with fewer calories per slice. You can order any recipe on Skinny It
Up crust or create your own Skinny It Up Pizza with select toppings for 300 calories or

less per slice. See pizzahut.com/skinnyitup for more information

Meeting the USDA’s National School Lunch Program and All Foods Sold in Schools

nutrition standards, Pizza Hut offers kid-approved pizzas made of 51 percent whole

wheat crust, lite mozzarella cheese, and reduced fat and sodium pepperoni.

Real and fresh ingredients are important to Pizza Hut. That’s why they offer an array of

toppings including fresh vegetables like green peppers and mushrooms, naturally-

preserved Italian sausage, 100 percent white meat chicken, and 100 percent real beef,

pork, and ham. Further, Pizza Hut’s Pan, Thin ‘N Crispy®, Hand-Tossed Style, and

Stuffed Crust pizzas contain:

 Zero grams of artificial trans fat

 No high fructose corn syrup

 No Monosodium Glutamate (MSG)

 No artificial colors/dye

 No artificial flavour

PIZZA HUT AUSTRALIA

In Australia, Pizza Hut offers a gluten free base that is a permanent option on the menu.

They have also added a list of gluten free ingredients on their website for consumers

interested in a gluten free alternative. In 2016, Pizza Hut Australia will introduce medium

and family sized bases to offer consumers more choice. A new plain, uncoated wing will

also be introduced into the range of sides in 2016 with a choice of three flavored sauces
 Pizza Hut Europe launched new balanced options in 2013

 Tuscani pizza range with salad on top in Poland (Prosciutto & Arugula, Chorizo &

Spinach)

 Pizza Sun in Germany, Romania, Luxembourg and Sweden

 Fresh fruit beverages, including grapefruit, cucumber and basil, and watermelon

lemonades

 Salad bar enhancements

 New plated salad offerings in Poland, Greece, Cyprus and Romania

Pizza Hut Canada launched a range of balanced pizza and pasta options.

Pizza Hut India provides more than 15 percent of meals with less than one-third RDA,

which includes personal portion pastas and Magic Pan Pizza.

TRANSPARENCY

PIZZA HUT U.S.

In addition to bringing more balanced choices to the menu, Pizza Hut U.S. made

nutrition, allergen, and ingredient information easier for customers to access in 2015.

Available via web and mobile platform, Pizza Hut now offers three nutrition tools that

allow consumers to obtain specific nutrition, ingredient and allergen information for all

menu items, including customized pizzas. To use Pizza Hut’s new digital tools go to

www.pizzahut.com/nutrition.

PIZZA HUT AUSTRALIA

In 2013, Pizza Hut Australia was the only pizza chain to partner with the government on

formulating QSR guidelines. They also have kilojoule (KJ) information on menu panels
nationwide. Full nutritional information for their Traditional large pizzas is available

online. KJ information for medium and family pizzas is available online. Allergen

information is available in store on request and online.

PIZZA HUT INDIA

Pizza Hut India proactively discloses the nutritional values of food on its website. Pizza

Hut India also deployed a QR code on the menu to inform customers

Most of the franchisees in Pizza Hut Europe communicate full nutritional information on

their websites

NUTRITIONAL IMPROVEMENT

SODIUM

PIZZA HUT U.S.

Amid rising concerns of Americans sodium intake, Pizza Hut successfully removed over

half a million pounds of salt from its menu in 2012 and has removed another 1.5 million

pounds of salt from core ingredients in 2015. The brand is committed to continually

improving the nutritional profile of their products.

PIZZA HUT INDIA

In India, Pizza Hut continues to look for ways to reduce sodium in its menu options by

working with suppliers and nutrition experts.

PIZZA HUT GLOBAL

Since 2008, Pizza Hut has been testing significant sodium reductions in core products,

which have been rolled out in Korea, Canada and Australia. Reductions of up to 50
percent have been achieved and their goal is to roll this out globally. The brand has also

developed a broader global menu for the dine-in business including pastas, individual

pizzas, plated salads, an enhanced salad bar and beverages broadening the brand’s

appeal through menu variety and choice.

PIZZA HUT AUSTRALIA

Pizza Hut Australia has had a continual sodium reduction program running for a number

of years and has targeted sodium reduction in dough, meat toppings and side items.

PIZZA HUT EUROPE

Pizza Hut Europe has reduced the salt in its mozzarella cheese by 15 percent and in its

dough by 17 percent.

PALM OIL

PIZZA HUT AUTRALIA

Pizza Hut Australia does not cook in any palm oil. There are products containing palm

oil as a sub-component and where possible these are sourced from a RSPO, or

Roundtable on Sustainable Palm Oil, certified source.

CALORIES AND FAT

PIZZA HUT U.S.

Pizza Hut U.S.’s Pan, Thin ‘N Crispy®, Hand-Tossed Style and Stuffed Crust pizzas

contain:

 Zero grams of artificial trans fat

 No high fructose corn syrup

 No Monosodium Glutamate (MSG)

 No artificial colors/dyes

 No artificial flavors

MSG

PIZZA HUT INDIA

Pizza Hut India is monosodium glutamate (MSG) free while KFC India continues to

explore ways to reduce MSG in menu items, particularly in grilled and vegetarian

options

 Product flavors
Viva Lasagna

Flavour Lasagna meat sauce, bell peppers and

mozzarella cheese on top of Pizza Hut’s Viva

pizza crust, finished off with lasagna strips and

dollops of cream cheese.

Super Supreme

Rich decked with nine delicious toppings – beef,

ham, Italian sausage, pepperoni, seasoned pork,

bell peppers, mushrooms, onions and pineapple.

Meat Lovers

A protein-packed serving of bacon, beef, ham,

Italian sausage, pepperoni and seasoned pork.

Cheesy Lava Mozza Crunch

Mozzarella parmesan and cheddar cheeses,

top with bite-sized mozzarella sticks.

Hawaiian Supreme

All-time favourite with double layers of ham

and pineapple.

 Method of sale

Pizza Hut uses three different methods of selling its products directly to the market. The

first 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, and sandwiches in a fun, family atmosphere. The third method of distribution is!

online ordering. Customers can now go on the Internet and place an order. This method

is useful because it allows customers to view the entire menu, download any special

coupons, and order without having to disclose any credit card numbers. The market

coverage for "The Extreme" will be nationwide. Customers all over the country will be

able to order "The Extreme" by one of the three distribution methods.

 6.2.3 Benchmarking

Base- 10 11 12 13 14 15 16 17 18 19 Previous
line Year
%
Change
Chick-fil-A NM NM NM NM NM NM 86 87 87 87 86 -1.1
All Others 73 76 81 82 82 84 81 81 82 82 82 0.0
Panera Bread NM NM NM NM NM NM 80 81 82 81 81 0.0
Papa John's NM 80 79 83 82 82 78 82 82 80 80 0.0
Arby's (Inspire NM NM NM NM NM NM 74 80 80 79 80 1.3
Brands)
Chipotle Mexican NM NM NM NM NM NM 83 78 79 79 80 1.3
Grill
Pizza Hut (Yum! 69 78 81 78 80 82 78 77 76 80 80 0.0
Brands)
Subway NM NM NM 82 83 78 77 80 81 80 79 -1.3
Domino's 67 77 77 77 81 80 75 78 78 79 79 0.0
Starbucks NM 78 80 76 80 76 74 75 77 78 79 1.3
Limited-Service 69 75 79 80 80 80 77 79 79 80 79 -1.3
Restaurants
KFC (Yum! 67 75 75 75 81 74 73 78 78 77 78 1.3
Brands)
Dunkin' NM NM NM 79 80 75 78 80 79 78 78 0.0
Wendy's 72 77 77 78 79 78 73 76 76 77 77 0.0
Little Caesars 72 78 80 82 82 80 74 81 78 77 77 0.0
Burger King 66 74 75 75 76 76 72 76 77 76 76 0.0
Sonic Drive-In NM NM NM NM NM NM NM NM NM NM 76 N/A
(Inspire Brands)
Taco Bell (Yum! 66 74 76 77 74 72 72 75 76 74 75 1.4
Brands)
Jack in the Box NM NM NM NM NM NM 72 74 75 74 75 1.4
McDonald's 63 67 72 73 73 71 67 69 69 69 69 0.0
 6.2.4 Performance Index

Population Expected Sale for Performance

Population Actual Sale
Percentage Territory Index

Cyprus 810,674 30,000,000 $29,800,000 99

49.13
United State 596,265 23,000,000 24,800,000 108
36.14
New Zealand 243,131 19,600,000 18,000,000 92
14.73
Total 1,650,070 $72,600,000 $72,600,000
100%
 2014 2015 2016 2017 2018

SG&A Expense 1.42B 1.1B 1.13B 976M 887M

Research & Development 30M 24M 24M 22M -

Other SG&A 1.39B 1.08B 1.11B 954M 887M

SGA Growth - -22.55% 2.73% -13.55% -9.12%

Other Operating Expense - - - 5M -

Unusual Expense 510M 15M 15M 26M 14M

EBIT after Unusual Expense 1.51B (15M) (15M) (26M) 1.76B

Non Operating Income/Expense 19M (40M) 128M 1.03B 534M

Non-Operating Interest Income 22M 12M 26M 33M 44M

Equity in Affiliates (Pretax) 30M - - - -

Interest Expense 152M 153M 331M 473M 496M

Interest Expense Growth - 0.66% 116.34% 42.90% 4.86%

Gross Interest Expense 152M 153M 331M 473M 496M

Interest Capitalized - - - - -

Pretax Income 1.43B 1.26B 1.35B 2.27B 1.84B

-
Pretax Income Growth - -11.63% 6.66% 69.07%
19.13%

Pretax Margin - - - - 32.33%

Income Tax 406M 325M 327M 934M 297M

Income Tax - Current Domestic 257M 296M 139M 10M 127M

Income Tax - Current Foreign 321M 131M 160M 290M 181M

Income Tax - Deferred Domestic (66M) (117M) 25M 615M (16M)

Income Tax - Deferred Foreign (106M) 15M 3M 19M 5M

 Income Tax Credits - - - - -

Equity in Affiliates - - - - -

Other After Tax Income (Expense) - - - - -

Consolidated Net Income 1.02B 936M 1.02B 1.34B 1.54B

Minority Interest Expense (30M) - - - -

Net Income 1.05B 936M 1.02B 1.34B 1.54B

Net Income Growth - -10.94% 8.76% 31.63% 15.07%

Net Margin Growth - - - - 27.11%

Extraordinaries & Discontinued

- 357M 625M - -
Operations

Extra Items & Gain/Loss Sale

- - - - -
Of Assets

Cumulative Effect -
- - - - -
Accounting Chg

Discontinued Operations - 357M 625M - -

Net Income After Extraordinaries 1.05B 1.29B 1.64B 1.34B 1.54B

Preferred Dividends - - - - -

Net Income Available to Common 1.05B 1.29B 1.64B 1.34B 1.54B

EPS (Basic) 2.37 2.97 4.17 3.86 4.79

EPS (Basic) Growth - 25.32% 40.40% -7.43% 24.06%

Basic Shares Outstanding 444M 436M 394M 347M 322M

EPS (Diluted) 2.32 2.92 4.11 3.77 4.69

EPS (Diluted) Growth - 25.86% 40.67% -8.22% 24.40%

Diluted Shares Outstanding 453M 443M 400M 355M 329M

EBITDA 2.76B 1.77B 1.85B 1.96B 1.95B

 EBITDA Growth - -35.65% 4.11% 6.06% -0.26%

EBITDA Margin - - - - 34.35%

6.3 Profit and Loss Statement

Fiscal year is January-December. All

2014 2015 2016 2017 2018
values USD millions.

Sales/Revenue 13.28B 6.44B 6.36B 5.88B 5.69B

Sales Growth - -51.50% -1.30% -7.52% -3.23%

Cost of Goods Sold (COGS) incl.

9.84B 3.88B 3.69B 3.19B 3.03B
D&A

COGS excluding D&A 9.1B 3.57B 3.38B 2.94B 2.85B

Depreciation & Amortization

739M 317M 310M 253M 183M
Expense

Depreciation 712M 304M 298M 243M 146M

Amortization of Intangibles 27M 13M 12M 10M 37M

COGS Growth - -60.54% -4.99% -13.52% -5.05%

Gross Income 3.44B 2.56B 2.67B 2.69B 2.66B

Gross Income Growth - -25.63% 4.30% 0.79% -1.08%

Gross Profit Margin - - - - 46.73%

6.4 Meeting Schedule

6.5 Customer 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 Demographic Geographical Economic Social

Middle
Major Cities all over Student or young
10-40years, male, and
Pizzas the world where professional,
female Upper
Pizza Hut established 20,000/month
Class

Major Cities all over Student or young

Soup and 8-40years, male, Almost
the world where professional,
Salad female All
Pizza Hut established 15,000/month

Middle
Major Cities all over Student or young
10-50years, male, and
Pastas the world where professional,
female Upper
Pizza Hut established 20,000/month
Class

Middle
Major Cities all over Student or young
Meal 10-40years, male, and
the world where professional,
Deal female Upper
Pizza Hut established 20,000/month
Class

Middle
All but Prefered Major Cities all over
Hot n Young professional, and
more than 25 years the world where
Cold Executives. 10,000/month Upper
male, female Pizza Hut established
Class

6.6 Salesforce Evaluation

6.6.1 Performance Variables
 1. Performance Appraisal "None of us is as good as all of us." According to Country HR
Manager: “To embed our values, we give our people 360-degree evaluation, with inputs from
superiors, peers, and subordinates. These are the roughest evaluation we get, because
people hear things about themselves they’ve never heard before.” Principles of Management
2. 32. . Performance Appraisal Process Performance Review is a formal process in Pizza Hut
twice a year where each employee is evaluated in order to determine how he or she is
performing. The appraisal process in Pizza Hut includes PA forms for every particular job
which involves: -International Pizza Hut standards. - Assessing the employees’ actual
performance relative to these standards. - Providing feedback to the employees. Principles
of Management
3. 33. . Levels of Performance Appraisal Out Standing Excellent Good Need Improvement After
giving the total grade to the employee the appraiser writes down about the strength and the
areas needing improvement of the employee. Principles of Management

6.6.2 Performance Ratio

Performance Measurement Policy To measure performance in the context of desired cultural
texture of the organization, Pizza Hut developed the ‘‘Founder’s Survey,’’ an annual company-wide
survey that measured the company on its adherence to the ‘‘How We Work Together Principles.’’ All
employees, except restaurant managers, were invited to participate, with participation rates in the mid-
80 percentages. Results were broken down by function and by levels. Managers were then required to
come up with action plans for those areas where results were less than satisfactory. Second, a values-
focused, 360-degree performance review system was implemented up to the restaurant manager level.
Individuals were held accountable for how they lived the values (Mike & Slocum, 2003).
 6.6.3 Cost Ratio
6.6.4 Compensation Plan

Financial Matters
We are financially strong enough to introduce a new product in the market. The
advertisement budget will be 5% of the projected sale. We are expecting that the “Pickle
supreme pizza” will increase our sale by 6%, this forecast is based upon pervious
products sale by Pizza Hut. This 6% increase in sale will bring £600 million in revenue. It
means advertising budget will be of 30 million. No other plant and equipment expenses
will be accrued because the existing plant and machinery is used for the production of
“Pickle Supreme Pizza”.

Controls and Implementation

We will establish a control program to help the management in measuring the results
and identifying any problems or performance variation that need corrective actions. The
control process involves establishing standards and measuring performance to correct
deviations from standards.

We will use different techniques to monitor quality and customer service satisfaction.
This will help us to react very quickly in correcting any problems at the beginning. We
will implement the following method to determine the effectiveness and customer
satisfaction from our new product.

 Annual plan control

In this method will monitor that whether company is achieving the targets and goals
that are expected from the new product. Different are used monitor this such as Sales
analysis, market share analysis, balance scorecard etc.

 Efficiency Control

With the help of this will control on spending efficiency and marketing expenditures. In
this we will analyze the sales force efficiency, advertising and sales promotions
effectiveness as compare to expenses on all these things.

 Customer’s feedback

This method will be used to collect information from the customers because this will
help us to take immediate actions against any problem. Customers are the primary
source to check the success of the product. Customer’s feedback will help us in taking
further steps if required.

Marketing Organisations
Marketing director will hold overall responsibility for all of the company’s marketing
activities and all managers in the marketing department will report to the director.
Marketing Audit plan will also executed enter the supervision of the marketing director.

CONCLUSION
I have critically analysed the Pizza hut and its current market situation and found that
the fast food trends are changing; customers are demanding high quality food with
excellent services and sitting arrangements. Pizza hut is offering large range of pizzas
with salads, desserts etc, under one roof. Pizza hut also provide restaurant facilities to
the customers. With the help of deep research of the market i found that the Pizza hut is
losing large market share by ignoring a rapidly growing market of Asian Customers in
the UK. These customers are less served by Pizza Hut but now it’s time to fill that gap by
introducing a new “Pickle Supreme pizza”.

The market environment of fast food industry in UK is very competitive. Pizza Hut is
facing direct completion as well as in direct competition in the market in the form of
Domino’s, McDonald’s, and KFC. Pizza Hut is a high price restaurant as compare to its
competitors but providing high quality food and sitting facilities. Pizza hut has fewer
number of outlets which is a weakness of pizza hut
https://www.slideshare.net/MichaelGlass6/pizza-hut-advertising-campaigns-plansbook