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Table of contents
History of Pizza Hut………………………………………. 05 Pizza Hut in Pakistan……………………………………… 12 Pizza Hut in Lahore……………………………………….. 12 Facts about Pizza Hut……………………………………... 13 Why Pizza Hut…………………………………………….. 13 Situation Analysis…………………………………………. 14 Uncontrollable environment………………………………. 18 Key Companies……………………………………………. 19 Target Market……………………………………………… 20 Promotion Program………………………………………… 25 Product……………………………………………………... 28 Price………………………………………………………… 33 Communication Mix………………………..……………… 35 Communication method……………………………………. 36
SWOT analysis…………………………………................... 37 Future Out look…………………………………………….. 38 Media Strategy……………………………………………… 40 Branding……………………………………………………. 41 Labeling…………………………………………………….. 41 Bibliography………………………………………………… 42
History of Pizza Hut:
The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the brothers quickly saw the potential of this new enterprise.
After borrowing $600 from their mother, they purchased some secondhand equipment and rented a small building on a busy intersection in their home- town. The result of their entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest and most successful pizza restaurant company in the world. Over the past four decades we've built a reputation for excellence that has earned us the respect of consumers and industry experts alike. Our products have been voted Number One in countless consumer surveys nationwide. And our accomplishments as an innovative business leader have been cited by such respected publications as Restaurant Business, Fortune and The Wall Street Journal. Pizza Hut, Inc., a division of Tricon Global Restaurants, Inc., has more than 7,200 units in the U.S. and 3,000 units in more than 86 other countries. What did it take to build a successful business of that magnitude? It took hard work, to be sure. And it took a commitment to quality and a dedication to service and value. But perhaps as much as anything, it took the qualities of entrepreneurship, growth and leadership which have characterized our business through nearly four decades of success. Pizza Hut franchisees, for example, exemplify the entrepreneurial spirit which launched the system back in 1958. Through their interest and initiative, the Pizza Hut system was able to develop new territories both in the United States and overseas. Tricon is the parent company to two other segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make up the world's largest restaurant group, with almost twice as many units as McDonald's. When it comes to leadership our proactive approach to product development and marketing provides ample evidence of our abilities. Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made continuing efforts to refine our products, and to develop new products suited to every consumer taste. Today, our five major products, Pan Pizza, Thin 'N Crispy pizza, HandTossed Style pizza, Stuffed Crust Pizza and The Big New Yorker Pizza are loved by millions around the world and have become the standard by which all others are judged.
We are working together to run great restaurants in order to be the best at making and serving the best pizza in America. That means we're willing and able to go to any lengths to make our customer's experience with Pizza Hut an enjoyable one. And it means we strive to present the finest products the industry has to offer, and to provide those products wherever and whenever people want them. Yes, we've come a long way since that opening night back in 1958 when pizzas were given away to generate interest in the fledgling business. And through the strength of our heritage, our culture and our people, we look forward to even more success in the years ahead.
The first Pizza Hut restaurant opens in Wichita, Kansas, started by two college-aged brothers who borrowed $600 from their mother. Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.
"Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial. 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. International market entered with opening of Pizza Hut restaurant in Canada. Pizza Hut serves a million people a week at its 310 locations. Red roof adopted for restaurants. First Pizza Hut restaurant opens in Mexico. Construction begins in Munich, Germany and Australia.
Sandwiches added to basic menu of Thin 'N Crispy pizza, salad, beer and soft drinks. First restaurant opened in Australia. Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number of restaurants. Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ. Pizza Hut restaurant number 1,000 opens in Wichita, KS. A unit opens in Costa Rica. Pizza Hut restaurants open in Japan and England. Thick'n Chewy pizza introduced. Chatsworth, CA Pizza Hut restaurant is used in the filming of "The Bad News Bears. The 100th international Pizza Hut restaurant is opened in Australia, while entire system reaches 2,000.
Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an undisclosed sum. Super Supreme is introduced nationwide. Pizza Hut opens its 3,000th unit in Arlington, Texas. The Sicilian Pan Pizza is introduced. Units open in Kuwait and Abu Dhabi. Pizza Hut raises $342,000 for Easter Seals from national promotion. Pan Pizza is introduced throughout the system.
Restaurant numbers 4,000 opens. The Pizza Hut ET glass promotion is picked as the top marketing promotion of 1982 by the editorial staff of Chain Marketing and Management.
Pizza Hut serves one and a half million pounds of pasta annually. Personal Pan Pizza, with a five-minute guarantee, is introduced throughout the system. Pizza Hut celebrates 25th anniversary. Pizza Hut employs 10,000 teenagers from 16 to 19 years old. BOOK IT! national reading incentive program is launched with 200,000 elementary students enrolled. There are more pizza locations than hamburger restaurants in the United States. Pizzerias account for 9.9% of all restaurants in the U.S. Priazzo and Calizza are introduced. The system celebrates the opening of its 5,000th restaurant, located in Dallas, Texas. Delivery service, as a new concept, is initiated. Fastest construction of a Pizza Hut restaurant takes place in Wichita, KS --- 39 days from start to finish. The national average is 85 days. Hand-Tossed Traditional Pizza is introduced throughout the system. Pizza Hut celebrates its 30th anniversary with a total of more than 6,000 restaurants and delivery units worldwide. President Ronald Reagan awards Private Initiative Citation to Pizza Hut President Art Gunther for the creation of BOOK IT! Program. The Pizza Hut Jobs Plus program expands nationwide to employ more than 10,000 individuals with physical and developmental disabilities.
The Jobs Plus program is recognized as the largest corporate initiative of its kind in the food service industry. Pizza Hut opens its 1,000th international unit in Well and, Ontario, Canada. Pizza Hut now serves 54 countries. Pizza Hut sells 9.1 million "Land Before Time" puppets. When released to the public, the movie enjoyed the largest opening ever for an animated feature. For the first time in history, Pizza Hut pizza is delivered to the White House. First Lady Barbara Bush throws a party for 200 Washington, D.C. children during a "Reading is Fundamental" reception. Pizza Hut system sales reach $4 billion. Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday, about 7,000 pies a minute. Kamran Atri, assistant manager in Leesburg, VA serves his way into the Guinness Book of World Records by waiting tables at the Leesburg, VA Pizza Hut restaurant for 136 hours, donating $1,200 in tips to the Loudoun County Shelter for Abused Women & Children.
More than 4,000 Jobs Plus employees work for Pizza Hut. Personal Pan Pizza becomes available at 1,000 Stop 'N Go convenience stores. Lunch buffet introduced in 1,800 units. Pizza Hut sets up two mobile hot trailers in Florida City and Gould’s, FL after Hurricane Andrew wreaks havoc. Pizza Hut provides 120,000 free meals to relief volunteers and those who lost their homes. Pizza boxes redesigned to save 275,000 tree a year. Pizza Hut introduces BIGFOOT Pizza -- two square feet of pizza cut into 21 slices. The Harvest Program is launched nationwide to donate surplus food to food rescue agencies.
Pizza Hut makes its fastest and farthest delivery: 600 large pepperoni pizzas on a 24-hour flight from Dover Air Force Base to U.S. service personnel in Mogadishu, Somalia. Pizza Hut leads the entire restaurant industry in growth and sets new company records for sales and profits. Pizza Hut introduces Chunky Style Pizza in September. Pizza Hut signs contract with 30 hotel companies throughout the country to provide delivery service to their registered guests. Pizza Hut becomes the single largest retailer of basketballs in the United States, selling 3.7 million balls during its NCAA Final Four promotion. Pizza Hut opens 9,700 square foot Super Pizza Hut restaurant and entertainment center in Mexico City. Pizza Hut in Beirut reopens after being closed during the Gulf War. Soccer legend Pele kicks a ball through the door of Pizza Hut restaurant number 10,000 in Sao Paulo, Brazil on April 13.
Pizza Hut launches the "You'll Love the Stuff We're Made Of" campaign. Buffalo Wings soar onto Pizza Hut menu. These spicy chicken wings are served with dipping sauce. Two Customer Satisfaction programs initiated: a 1-800 Customer Satisfaction Hotline and a Customer Call Back Program, which takes the pulse of 50,000 customers per week. Pizza Hut launches Pizzeria Stuffed Crust Pizza, which immediately sets company sales records. The Deliver Me Home program is created by Pizza Hut and the National Center for Missing and Exploited Children and is tested at the Dallas/Fort worth International Airport to inform the community of an important identification tool in helping to locate, identify and return
missing children to their families. Pizza Hut wins the 1995 "Choice of Chains" award for Best Pizza Chain sponsored annually by Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last eleven years. Pizza hut comes to Pakistan with a dine in restaurant Karachi that has special vegetarian pizzas. In additional to traditional Italian toppings , it incorporates Pakistani favorites such as Chicken tikkas, Lamb korma etc. In its list of innovative toppings. Along with pizzas, the menu features appetizers like garlic bread and soups, fresh salads, oven bakes pastas and choice of ice-cream sundaes. Pizza Hut airs its first ever ad during the Super Bowl. Pizza Hut delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. This is the biggest pizza delivery day of the year. On May 30, Pizza Hut introduces two varieties of chicken-topped pizza... Italian Chicken and Chicken Supreme. Pizza hut opens a restaurant in the capital's building bustling M-block market in Greater Kailash-I, Unlike the existing Pizza Hut at Shanti Niketan which is delivery counter for just pizzas, this is dine-in where the entire menu (salads, appetizers, pastas, deserts and of course pizzas) is available. Letting Delhiites get a taste of Pizza hut And getting them to
Pizza Hut launches a meatier pepperoni. PepsiCo announces restaurant spin-off. Pizza Hut launches "Totally New Pizzas" a quality initiative putting sliced fresh vegetables and meaty meats on pizzas. Pizza Hut launches "The Edge pizza" Pizza Hut celebrates 40 years of making and serving great pizza. Pizza Hut launches "The Sicilian Pizza" a flavorful crust with garlic, basil and oregano baked right into the crust Pizza Hut launches "The Best Pizzas Under One Roof" campaign.
Pizza Hut features Sony's Crash Bandicoot in the Stuffed Crust Pizza/Sony Promotion. Pizza Hut launches The Big New Yorker Pizza. A 16-inch pizza with a sweeter, savory sauce, 100% real cheese cut into 8 big foldable slices. Pizza Hut brings New York-style pizza across America. Pizza Hut features Fran Dresher, Spike Lee and Donald Trump in The Big New Yorker Pizza advertising campaign. The celebrity campaign launched in the pre-game advertising for Super Bowl XXXIII.
Pizza Hut in Pakistan:
Pizza hut comes to Pakistan with a dine in restaurant Karachi that has special vegetarian pizzas. In additional to traditional Italian toppings, it incorporates Pakistani favorites such as Chicken tikkas, Lamb korma etc. In its list of innovative toppings. Along with pizzas, the menu features appetizers like garlic bread and soups, fresh salads, oven bakes pastas and choice of ice-cream sundaes. Pizza Hut airs its first ever ad during the Super Bowl. Pizza Hut delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. This is the biggest pizza delivery day of the year. On May 30, Pizza Hut introduces two varieties of chicken-topped pizza... Italian Chicken and Chicken Supreme. Pizza Hut in Lahore: Pizza Hut comes in Lahore in 1997 with a great passion. Arriving in Lahore Pizza Hut attained a good position in the market of fast food in Lahore. Lahorians were not aware of Pizza before pizza hut but when Pizza hut came, it was boom in fast food industry and people were delighted by the taste of pizza in Pizza Hut. Till now 3 main branches had been opened in Lahore and still in progress. The details of the branches are given below: 1. Out of the three Pizza Huts in Lahore, one is situated on the MM Alam Road, Ali Garah Chowrangi, Gulberg III. This branch offers a more formal atmosphere than the other two. Pizza Hut Defence and Pizza Hut Mall Road cater more to the younger crowd of Lahore, but my personal preference still remains the MM Alam Road one. 13
2. The second branch of the Pizza Hut is situated on Mall Road near Railway Station. The place is thickly populated and crowded. This Branch of Pizza hut offers not a formal atmosphere. People from all over Lahore come here on this branch including people from rural areas. 3. The third branch is located in Defence near Main Market. The Defence branch is for the People of high resources and upper class. It is the one of the most gorgeous branch in Pakistan. This branch enjoys a great atmosphere created by people of good choices. Facts about Pizza Hut: Pizza Hut serves more than 1.7 million pizzas every day, to approximately 4 million customers worldwide. Pizza Hut is the world's largest pizza restaurant chain, with nearly 12,000 restaurants, delivery-carry out units and kiosks in more than 86 countries. It employs more than 240,000 people worldwide. Pizza Hut uses 2.5 percent of all the milk (over 3.2 billion pounds) produced in the U.S. every year for cheese. That cheese production requires a herd of 250,000 dairy cows producing at full capacity 365 days a year. Pizza Hut uses more than 360 million pounds of REAL cheese per year; of that, 335 million pounds is mozzarella cheese. Stuffed Crust Pizza used approximately 50% of the 35 million pounds of string cheese produced in the U.S. in 1995. The highest volume Pizza Hut restaurant in the world is in Paris, followed by stores located in Moscow, Hong Kong and the U.K. Outside the U.S., the country with the most Pizza Hut units is Australia, followed by Canada and the U.K. In 1991, Pizza Hut made one of its most historic deliveries - - to Russian President Boris Yeltsin and his supporters, who prevailed over an attempted political coup. When food supplies dwindled in the Russian Parliament Building, Yeltsin called Pizza Hut delivery. Pizza Hut uses more than 700 million pounds of pepperoni per year. If you lay those pepperoni slices side by side, they would create a paths that would stretch around the world twice and go to the moon! There are 4.2 billion pizza purchases made every year, which equates to 11.5 million purchases every day. Half of these purchases are done on Friday and Saturday.
A national survey commissioned by Pizza Hut revealed that 1829 year-old males preferred pizza to ice cream, cookies and candy when indulging their palates and nearly one-third of those surveyed rank pizzas as their favorite indulgence food over cookie, cake and candy.
Why Pizza Hut??
When Dan and Carney lease the building for their first restaurant, they discovered that the room for the sign on the door was only for eight letters, so the first word was pizza which took five letters space for remaining three letters they “hut” as the best combination.
MCR is a private limited company. Which was incorporated on august 1, 1992, and Mr. manzar riaz as CEO of MCR (pvt). MCR is the sole franchisee of pizza hut in Pakistan. Now this company (MCR) is owned by Habib oil mills.
Conduct a Market Analysis / Situation Analysis
Overview Whether you are starting a new business or launching a new product, conducting a marketing analysis is the first step in determining if there is a need or audience for your idea. Knowing the market's needs and how it is currently serviced provides you with key information that is essential in developing your product/service and marketing plan. Too often, businesses spend thousands of dollars launching a "new" idea with a limited market because of competition. The owner is forced to reevaluate his strategy and determine if there is room for another player. Although the quality of the product is critical, your development of the best product on the market will not necessarily correlate with the most sales. Up to 50 percent of a product's price can be for marketing. The company who wins the marketing game generally will capture the larger share of the market. For related information, see Identify Your Target Market.
Conducting a market analysis will help you: 1. Prepare to enter a new market 2. Launch a new product/service 3. Start a new business At the completion of this exercise, you should be able to:
• • • • • •
Explain the concepts of a marketing analysis Determine if there is a need for your idea or product/service Identify a new market Analyze your current market Gain a competitive advantage Begin to establish a marketing plan
Outline: I. II. Marketing Analysis - What Is It? Why Should we Do It? The Complete Process: A. Defining the Problem B. Analysis of the Situation C. Obtaining Data That Is Specific to the Problem D. Data Analysis and Interpretation E. Fostering Ideas and Problem Solving F. Marketing Plan
I. Marketing Analysis - What Is It? Why Should You Do It? Although the terms "marketing" and "marketing analysis" can both be described as games of information, they are not to be confused. Marketing encompasses all of the activities that go into promoting a product or service. A marketing analysis is the actual assessment of the target population, competition and needs for marketing that product or service. The marketing analysis process can be broken down into six steps: 1. 2. 3. 4. 5. 6. Defining the problem Analysis of the situation Obtaining data that is specific to the problem Analysis and interpreting the data Fostering ideas and problem solving Designing a plan
So, why should you embark on the market analysis process? The primary reasons are:
• • •
To determine if there is a market for your products or services To establish the need for developing a marketing plan To ascertain market information that will assist in the sale of your product or service
Before embarking on the complete process, complete the following Market Analysis Questionnaire. Market Analysis Questionnaire To begin the market analysis process, answer the following questions. If you cannot answer every question, focus on finding the answers even if it means consulting others. This article can be downloaded or printed to enable you to complete the questionnaire. These questions will enhance your understanding and knowledge of your target market and industry, and ultimately determine: Is there a need for my product or service? 1. What defined market am I trying to reach? 2. What specific companies are servicing this market? a. Are they successful? b. Are there other companies servicing this market with a similar product? c. Are they successful? d. What is their market share? 3. Is the market saturated or wide open? If so, why? 4. What is the size of the market? a. Is it a growing market? b. Is the industry stable, volatile, growing or trendy? 5. How can I reach this market? a. How do my competitors reach the market? 6. What are the business models of my competitors? 7. What do customers expect from this type of product or service? 8. What core competencies must the product or service have? 9. What are customers willing to pay for this type of product or service? 10. What is my competitive advantage?
II. The Complete Process: A. Defining The Problem Defining the problem is crucial to conducting a successful marketing analysis. This may require a great deal of time but it is well worth the time and energy expended. Defining the objectives is tantamount to a successful marketing campaign. Many individuals waste valuable time performing good research on the wrong problem. The following questions will assist you in defining the problem: 1. Are we trying to market our entire product or service line? Or, are we trying to hone in on a new product or a new service? 2. What specific marketing strategies have we utilized in the past two years? a. How has each strategy affected sales? b. What strategies are we currently using? c. How do our competitors market their product? 3. How much money is allocated to marketing? 4. When making a sale, do we survey our customers to determine a referral source? 5. Do we thank our referral source? 6. Why would someone choose our product? a. What differentiates our product from our competitors' products? b. c. Why do people choose our competitors' products or services? d. Do we need to enhance our current product or service? 7. Who are our customers? a. Are they from a specific region? b. How do we attract new customers? c. How do we increase sales from current customers? Many companies fail to understand the nature of the problem before trying to solve problems related to sales. A classic example occurred in the soft drink industry when Coke and Pepsi, the two top soft drink rivals increased the intensity of marketing efforts to battle for higher sales. At the same time, Dr Pepper's revenues began to decline, a problem that was attributed to a weak promotional campaign. Subsequently, the "Be a Pepper" slogan was instituted. Although the ads were a hit, revenues continued to decrease. The marketing managers had to reanalyze their problem.
Focused research revealed that the target population for Dr Pepper differed from Coke and Pepsi. It was found that Dr Pepper's target market believe life should be lived in accordance with one's own set of personal values and not based on the expectations of others. Cola drinkers, on the other hand, try to win the approval of others. Despite the catchy slogan, Dr Pepper's marketers turned away prospects with a campaign that invited them to be part of a large group of "Peppers." The soft drink industry clearly exemplifies the importance of defining the problem. It is important not to confuse the symptom with the problem. If a company is having trouble selling a certain product, it doesn't mean that there isn't a need. The problem may be distribution and/or pricing. Mistaking symptoms for problems will lead to misguided research and serious mistakes. B. Analysis of the Situation An analysis of the situation is an informal survey of what information is available in the problem area. The analysis will help define the problem and ascertain the need for additional information. This process entails informal talks with informed people. Informed individuals can be others in the company or outsiders with knowledge about the industry or product. In some instances, customers are contacted to provide information. http://va-interactive.com/inbusiness/editorial/sales/ibt/target_market.html When the marketing manager is unfamiliar with the situation, the analysis step is of primary importance. It is important to understand the problem area - including the nature of the target market, competition, the marketing mix and the external environment. Without this knowledge, costly mistakes may result. An example of this problem would be a retailer who wants to survey his customers. A research firm is hired to do in-store interviews. Uncontrollable environment: Whereas the market and the competitive environment are essentially outside the control of a company, its own situation should be largely within its sphere of control. For this reason, the company's situation is referred to as the controllable environment. Each company keeps a clear view of the factors and environment that it can control and not. This factors may have a major impact on the
over all outcome of the company. Research shows pizza hut are not facing any problems relating to their uncontrollable environments. They clam to have a total control over all situation and environments.
As there are very few international pizza companies in Pakistan and even they are at lower levels. Pizza hut claims that they do not face any threats from the other pizza companies as they are either at a lower level or at local market level. They claim to have no problem in attaining the market share with comparison to the competitors. They are only focused about their own product and service. The only international competitors of pizza hut in Pakistan are Dominoes pizza but still they are not affected.
Target market Pizza hut’s market can be segmented into three target populations: • Individuals: people that dine in by themselves. • Families: a group of people, either friends or a group of nuclear relatives dining together. • Take out and delivery: people that prefer to eat pizzas in their home or at a different location than the actual restaurant. The pizza hut’s customer are hungry individuals between the ages of 25 and 50.Age is not the most defined demographic of this customer base; all age groups enjoy pizza. The most defined characteristic of the target market is income, people from middle upper and upper class love to visit pizza hut. Pizza hut operates normally in metropolitan areas, these areas have a large day and night population consisting of business people and families. Combining several key demographic factors, pizza hut's arrives at a profile of the primary customer as follows: Sophisticated families who live nearby. Young professionals who work close to the location. Shoppers who patronize the high rent stores.
For this we also conduct a formal investigation (Questioner):
Here are some sample questions to include in your survey: What is your age range? Under 25 25-35 35-45 Over 55 Sex M/F
Occupation: ________________________________________________________ ___ ________________________________________________________ ___ Household income range: Less than 50,000 Rs. 50,000-70,000 Rs. 70,000-100,000 Rs. More than 100,000 Rs. What is the highest level of education you have completed: High school Trade school Some college Associate degree Bachelor's degree Master's degree Doctorate degree What are your favorite hobbies? ________________________________________________________
___ ________________________________________________________ ___ Which of the following products do you buy regularly? Include a listing of your products, as well as products that you are able to add if you uncover a need for them. What benefits do those products provide for you? ________________________________________________________ ___ ________________________________________________________ ___ How often do you purchase those products? Daily Weekly Monthly Bi-annually Annually
How loyal are you to the particular brand that you purchase? Not loyal (I'll purchase whatever brand is on sale.) Somewhat loyal (I'll usually purchase one brand unless another one offers a good deal.) Pretty loyal (I'll always buy one brand unless it is out of stock or otherwise unavailable.) Extremely loyal (I would never purchase any other brand.) Where do you normally purchase these items? Include a list of distributors in your area. Also include questions that are specific to your company regarding your products, pricing and
service to determine if the survey respondent is a potential customer for you.
Demographic Checklist Ensure that you include the following characteristics in the demographic profile of your target market: Age Gender Profession Education level Household income level Marital status Geographic location If your target market is made up of corporate customers, include the following elements: Company size Location of headquarters Types of products and services they provide Annual revenue Number, size and location of branches Year founded Psychographic Checklist Which of the following categories fit the psychographic profile of your customers? Conservative Liberal Conformist 23
Environment-friendly Socially conscious Power-wielding Fun-loving Cutting-edge Trend follower Fashion-forward Family-oriented How many family members are typically in your customers' households? ________________________________________________________ ________________ What hobbies and/or sports do your customers enjoy? ________________________________________________________ ________________ What types of entertainment do they like? (movies, theater, opera, etc.)
________________________________________________________ ________________ What publications do they subscribe to? ________________________________________________________ ________________ How else do they enjoy spending their free time? ________________________________________________________ ________________ If your target market is made up of corporate customers, which of the following psychographic categories fit them?
Market leader Innovative or cutting-edge Liberal Conservative Environment-friendly Employee/family-friendly Fast growing/adopting new ideas Stable/set in their ways What growth stage is the company in? (start-up, growth, stable or decline) ________________________________________________________ ________________ What is the type of workforce they employ? ________________________________________________________ ________________ What is the company's culture? ________________________________________________________ ________________ What is the management style? ________________________________________________________ ________________ What trade associations do they belong to?
________________________________________________________ ________________ What publications do they subscribe to? ________________________________________________________ ______________ Rank the order of importance of the following criteria to your target market: 25
Very Important Price Quality of products or services Brand name recognition Customer service Broad array of services Friendly staff attitude Discounts and sales Attractiveness of packaging Convenience of store location Store appearance Convenience of product/service use Guarantees/Warranties Technical Assistance Flexible payment terms
Nature of Merchandise:
Pizza hut is a best place for pizza lovers. As it is in pizza industry, so it is basically providing the best pizzas to pizza lovers under one roof. Initially pizza hut had to work very hard to create awareness among people about pizza as pizza was a new product for the Pakistani environment and not very popular among Pakistani’s.
Pizza hut prides itself on providing service that is on par with fine dining. This is accomplished through an extensive training 26
program. The training time period for a newly hired employee is about 3 to 4 month. Pizza hut is also offering free home delivery services to it customers. The range for free delivery is within 3kms from the main outlet.. Take away and dine in services are also available at pizza hut. Recently pizza hut has introduced “oven hot pizza delivery technology”. When a pizza comes out of the oven, its temperature is in between 72c to 80c. But using “oven hot pizza delivery technology”, pizza is delivered to customer using special pouch that contain heaters in it, within a temperature of 65c to 70c.
Pizza Hut uses different promotion programs whenever it decides to introduce a new product or service.
Bases for attaining a sustainable competitive advantage:
Here are some bases that has helped pizza hut to attain a sustainable competitive advantage. High-quality food offerings that exceed competitor’s offerings in quality. Excellent staff who are highly trained and very customer attentive. Customer service is the first and the foremost priority. All employees l ensure that the customers are having the most pleasant dining experience. People are demanding a larger selection of pizzas, and pizza hut is offering them a variety of best pizzas under one roof. Great retail space that is bright, hip, and clean. Pizza hut has developed pizzas by focusing on the taste of local people that are differentiated and superior to competitors. Customers can taste the quality and freshness of the product in every bite. The following are characteristics of the pizzas: 1. Mozzarella Cheeses is used in pizzas. 2. Vegetables are fresh with daily supplies. 3. Pizzas dough is made with Italian semolina flour. 27
4. Meats are all top-shelf varieties, organic when possible.
A verity of superior quality pizzas, appetizers, sandwiches are available at pizza hut. Here is the menu for pizza hut.
GARLIC BREAD GARLIC BREAD SUPREME CHICKEN WINGS GARLIC MUSHROOMS SALAD 28
CHEESE LOVERS INGREDIENTS Melted layer of 100% real cheese. VEGGIE LOVERS INGREDIENTS Tomatoes Onions Mushrooms Black olives Green peppers.
CHICKEN TIKKA INGREDIENTS Chicken tikka cubes Onions CHICKEN FAJITA INGREDIENTS Marinated chicken Onion Peppers with special herbs & spices. FAJITA SICILIAN INGREDIENTS Fajita chicken Onion 30
Green peppers Green chilies & lots of cheese. THE EURO Ingredients Mushrooms Green peppers Chicken sausage Smoked chicken Tomatoes & Olives.
HOT & SPICY Ingredients Green chilies Beef Onions Tomatoes.
SUPREMES SUPREME Ingredients Beef pepperoni bologna beef, onions green peppers mushrooms CHICKEN SUPREME Ingredients Chicken sausage, spicy chicken, chicken fajita, smoked chicken, onions, green peppers, olives and mushrooms.
SUPER SUPREME Ingredients Beef pepperoni smoked chicken bologna beef onions, green peppers, olives mushrooms with double the toppings. PIZZA + TOPPINGS “Do it yourself” you can even develop a pizza of your choice from the following topping from the following toppings MARGHERITA Loads of cheese on Pizza Hut’s rich tomato sauce, with any of these great toppings. MEATS Beef Pepperoni Spicy beef Smoked chicken Bologna Chicken tikka Chicken fajitas Chicken sausage Extra cheese.
VEGGIES Black olives Mushrooms Tomatoes Green chilies Onion Green peppers.
SANDWICHES PHILLY STEAK SANDWICH Succulent Philly steak shavings sautéed with silvers of bell pepper & onions stacked on bread with mozzarella cheese, mayonnaise & mustard. Served with pickles, spicy wedges and coleslaw. SPICY CHICKEN SANDWICH Scrumptious spicy chicken with mustard, mayonnaise, lettuce & tomatoes. Served with pickles, spicy wedges and coleslaw. BEVERAGES Pepsi Miranda Mountain Dew Team *Available in regular bottle as well as in 1.5 liter pet bottle. Mineral Water *Available in large and small bottle. Juices are also available at pizza hut.
Pizza Hut should continue to offer a high quality product with higher price (Price skimming strategy) Taking in account that the major input to the price decision is the cost of producing and marketing the product. Pizza Hut should maintain highest price giving the best quality but trying hard to reduce as much is possible, the section of variable costs, such as Semi-variable & premiums in both, Traditional Restaurant and Delivery Unit, or the vehicles section in the Delivery Restaurant improving the routes to delivery, to save petrol.
However, all the sections whose costs are variable, should be reduced as much is possible, to obtain the maximum profit, maintaining high quality, high price and high standard service.
Pizza Hut always remember the environmental factors such as legislation, trade union, or consumer pressure, together with the current business climate, influence the price decision. Prices for Different Items APPETIZERS GARLIC BREAD GARLIC BREAD SUPREME CHICKEN WINGS GARLIC MUSHROOMS SALAD RS. 75 RS. 105 6 PCS RS. 120/- 12 PCS RS. 225/RS. 105/RS. 195/-
ENTREES-PIZZA (REGULAR RS. 425/- LARGE RS. 635/-) Cheese lovers Veggie lovers Chicken Tikka Chicken Fajita Fajita Sicilian The Euro Hot & Spicy SUPREMES (REGULAR RS. 445/- LARGE RS. 655 /-)
SUPREME CHICKEN SUPREME SUPER SUPREME (REGULAR RS. 480/- LARGE RS. 695 /-) PIZZA + TOPPINGS Cheese MEATS VEGGIES SANDWICHES PHILLY STEAK SANDWICH SPICY CHICKEN SANDWICH RS. 275/RS. 255/REGULAR RS . 425/- LARGE RS. 635/REGULAR RS. 425/- LARGE RS. 635/REGULAR RS. 425/- LARGE RS. 635/-
Pepsi Mineral Water one serves 4 serves Small Large Rs.60/Rs.195/Rs.40/Rs.75/-
Communication Strategy: Pizza hut is the Multinational Food Retailer in the Pakistani Market. It has strong brand image in the mind of consumers. Pizza hut is focusing on short term objectives like product promoting, Sales promotional actives and managing the flow of traffic so, that's why Pizza hut is not focusing on brand image building strategies. Communication Objectives: Pizza hut has the following three Communication objectives Awareness 35
To aware consumer about new product innovations for this pizza hut has setup billboard at prime locations of the city. Brochures, leaflets are available in the Retail location and also provide information through telemarketing. They inform consumer about product for example recently pizza hut introduced tandori pizza it is placed on the billboard, Leaflet; brochures are available in the retail location which carry product specification quality and price information. Pizza hut also placed directions board at the different location to give the direction about nearest pizza location for those people who live outside. Managing Flow of Traffic: To manage the flow of traffic pizza hut offer more discount on special timing. For example pizza hut gave up to 40% discount on late night. Offer free Pepsi on morning. Pizza hut promote these discount offering through Billboard, Brochures and personal selling activities.
Advertisement Print Media (Broachers, Leaflets) Display Media (Billboards, signs) Sales Promotion Discount Card Special offering at specific timing Free offering on more purchase Retail Atmosphere To experienced the consumer about Pizza. Pizza hut has established customer oriented Retail outlet atmosphere to exceed the consumer expectation. Personal selling
Pizza hut is also doing personal selling Sales person promote product, offer free home delivery service and get feedback from consumers about product quality, taste and service
Market share is the single most important measure of the strength of a company. Even Pizza Hut are in high advantage over their market share. SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Strengths and weaknesses are internal factors. For example, strength could be your specialist marketing expertise. A weakness could be the lack of a new product. General Manager Quotes: “Our product and quality both are our strengths and weaknesses.” He further explained that keeping a good and expected quality of their product will keep their position in the market making this the strengths, where as if the quality of their product is affected which affects their loyalty and market share would be their weakness. Strength of pizza hut lies in taste in quality. Weakness of pizza hut is a small no of out lets in Pakistan Opportunities of pizza hut is to open new out lets Threats : Basically there area no threats for pizza hut in Lahore.
Future out Look
Our plans are like our pizzas : BIG! We want more and more people enjoy pizza hut restaurants. We want to open more restaurants. We want to exploit every delivery opportunity We want to be the Pakistan’s favorite restaurant to work in. We will achieve our business aims by living our values.
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Customer Focus Belief in People Recognition Coaching and Support Accountability Executional Excellence Positive Energy Teamwork 38
Integrity and openness Fun and Enthusiasm
Not just good…..Not jut great ….but the best Our passion To be the best hospitality business Any where in the world The best branded restaurants The best delivery business The best franchise network The best food, service assets and values The best for families So how we will know when we are the best We have set some mile stone for the journey, Against which to measure progress: Our bold goals
5 millions smiles every weak
Our Bold Goals
Media Strategies Media Type
Provide Attention about pizza hut’s Name Identification New product Promotion Retail Location Directions
To experienced the consumer about Pizza and Pizza Hut To create positive word of mouth about pizza hut To change consumer attitude from unfavorable to favorable To achieve sales objective To Manage Traffic flow
Evaluating Communications Program
Pizza hut has setup a marketing intelligence system. 40
Managers get feedback from customer through customer Evaluation card about promotional activities.
Frequent Shoppers loyalty Program
Pizza hut offers discount cards for frequent shoppers of worth Rs.500.Validity of card is about six month. About 20 visit is allowed per card and about 50 % off on per visit. For example recently pizza hut launched buy one get one free offer.
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Pizza Hut's logo was developed by British -Salvadorian firm Ideas Frescas, the firm of beach volleyball champ Frida Larios Pizza Hut’s logo consists of a red straw hat, a logo endorsed by its twelve thousand restaurants round the globe. Pizza Hut has established its brand in more than eighty countries across the world Pizza Hut regularly introduces new offerings to protect its market share. Due to Pizza Hut’s aggressive strategy of protection of its brand it has stayed successfully in the market for the last forty five years. Pizza Hut provides nutritious details of most of its basic pizzas Pizza Hut continues to be the leader in the $33 billion Pizza Industry. Pizza hut has gone for ecological packaging .Few years back it redesigned its boxes to save 275,000 trees. Pizza Hut uses the branding services of Landor, a world leader in branding whose clients include Xerox ,Coleman and BP et al. Pizza Hut takes the infringement or slur of its brand name seriously. In 2002 it sued Papa John’s for an ad which made fun of Pizza Hut’s promotional lines. Pizza hut is the first company in history to place a new logo on the world's largest proton rocket. In 1999 Pizza hut announced that it will invest $500 million to contemporize and upgrade its restaurants over the next five years.
Packaging* and Labeling*: • Pizza packaging probably began in the 1940s after World War II. With the advent of carry-out pizza, the first package was most likely a combination of paper bag and a chipboard or corrugated square Pizza Hut uses a cost effective ,ecological rollover boxes which are used in Domino’s among others Pizza Hut uses paper pulp it's economical. Second, it has substantial stacking strength, or crush-resistance. Third, it resists condensation build-up on the interior surfaces.
*Branding: A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitor’s product. *Packaging: Consists of all designing & producing the container & wrapper for a product. *Labeling: Part of Product that carries information about the product or seller.