Marketing Project on PIZZA HUT

Marketing PROJECT

ON

PIZZA HUT

Submitted To: Submitted By:

Dr. Sajeevan Rao Saurabh Gupta

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Roll No-90, Sec-B

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INDEXS. No PARTICULARS PAGE

1. Pizza Hut- The Introduction 3-5

2. Ansoff Matrix 6

3. Quality Management 7

4. Perceptual Mapping 8

5. Technological Changes 9-10

6. Chase Strategy 11

7. SWOT Analysis 12

8. Segmentation, Targeting & Postioning 13-15

9. 7Ps of Services 16-18

10. Service Process 19-20

11. Refrences 21

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PIZZA HUT-The Introduction

Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W

and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over

12,500 restaurants across 91 countries

In India, Pizza Hut has 140 restaurants across 36 cities, including Delhi, Mumbai, Bangalore,

Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of

opening Pizza Hut restaurants at many more locations to service a larger customer base across

the country

Pizza Hut is known for its

Good Quality Food (Hygiene)

Brand Name

Food worth its Price

Good Service

New Kind and Styles of Pizzas in its Menu.

PIZZA HUT'S MISSION STATEMENT

We take pride in making a perfect pizza and providing courteous and helpful service on time all

the time. Every customer says, "I'll be back!" We are the employer of choice offering team

members opportunities For Growth, Advancement, And Rewarding Careers in a Fun, Safe

Working Environment.

• P.E.A.R.L.S

PASSION for excellence in Doing everything

EXECUTE with positive energy and urgency.

ACCOUNTABLE for growth in customer satisfaction and profitability.

RECOGNIZE the achievement of others and have fun doing it.

LISTEN and more importantly, respond to the voice of the customer.

PIZZA HUT STORY

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1958: The legacy of Pizza Hut began, when two college-aged brothers from Whichita,

Kansas, Frank and Dan Carney opens first Pizza Hut restaurant after borrowing $600 from

their mother.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka,

Kansas.

1968: International market entered with opening of Pizza Hut restaurant in Canada.

1969: Red roof adopted for restaurants.

1972: Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for

an undisclosed sum.

1986:Delivery service, as a new concept, is initiated

1996: Pizza hut comes to India with a dine in restaurant Bangalore that has special

vegetarian pizzas.

1997: Pizza hut opens a dine-in restaurant in Delhi.

2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in

restaurants.

2009: Pizza Hut offering baked fillings in the corner of the pizza

LOCATION IN INDIA

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has

captured a dominant and significant share of the pizza market and has maintained an impressive

growth rate of over 40 per cent per annu. Yum! Brands Inc is the owner of the Pizza Hut chain

worldwide. A Fortune 300 company, Yum! Brands owns Kentucky Fried Chicken, Pizza Hut, Taco

Bell, A&W and Long John Silver’s restaurants worldwide. In India Pizza Hut has not included all

kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian customers

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A critical factor in Pizza Hut’s success has been a menu that has constantly evolved and

expanded to cater to the changing needs and specific preferences of customers in different parts

of the world. In having understood the pulse of the customers in India, Pizza Hut has

clearly established itself as a brand with an Indian heart. Besides offering an extensive

range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian

restaurant in India in Surat and later in Ahmedabad and Chowpatty, where it offers a

Jain menu sans all root-based ingredients.

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ANSOFF MATRIX

EXISTING CUSTOMERS

NEW CUSTOMERS

EXISTINGSERVICES

Consolidation/ Market Share Building

Market Development

NEWSERVICES

Service Development

Diversification

Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has

always been to be first. One of their main strategies that they still follow today is the different

things in their menu. Most recent one is the filling of toppings in the pizza corner. Therefore they

are offering same customer a different kind of product. Thus they are into Service Development.

Pizza Hut is always trying to come up with some innovative way to make a pizza into something

slightly different - different enough that customers will think it as a whole new product. For this

they take innovative ideas from Institutes like IHM ( Institute of Hotel Management) as well as

motivate their workforce to come up with ideas.

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QUALITY MANAGEMENTTo ensure stringent international bench-marks in the quality of products and services at all its

restaurants across the world, Pizza Hut has a mystery shopper program in which an unknown

official visits a restaurant and evaluates it on certain defined parameters called C.H.A.M.P.S.

that stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and

Speed. Based on the report submitted by the official, the restaurants are rated and in the rare

case of finding under performers, they are kept under strict vigil

This is the most important for a food chain like Pizza Hut. All the employees’ backof-the-house

i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet

the quality standards set by Pizza Hut around the world. This strategy is important in order to

satisfy the CHAMPS. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality

standards. Different quality management staff is also there at Pizza Hut. The shift managers

have the task to observe whether the quality standards are met or not, whereas there are a total

quality management department at the main office in Gurgaon. This department has the task to

implement quality standards and know whether they are achieved or not.

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PERCEPTUAL MAPPING

Perceptual mapping helps the Management to see the real picture of their own and their competitiors. In above map, Services are plotted on X-axis and Pricing is plotted on Y-axis.

Expensive and high services : 1st quadrant

Expensive and moderate services : 2nd quadrant

Inexpensive and moderate services : 3rd quadrant

Inexpensive and high services : 4th quadrant

The competitors for Pizza Hut are Domino’s, KFC and McDonalds. Pizza Hut is providing High Services at very high price. That is why it is plotted in 1st quadrant. Likewise, McDonald provide high services but the food products are not expensive. But in 2nd quadrant, the services are moderate and they cost high than McDonald.

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TECHNOLOGICAL CHANGESNow a day’s technology is improving so Pizza hut has to keep track with it or else its competitor

may take advantage of it and move ahead than pizza hut. It makes sure that it uses baking and

heating ovens that are new and efficient. They have tie ups with company which provide them

cold rooms. This tie up is of exchange of machine after a period of 6 months if new kind of

machine is made by them.

Not only in machines and equipments but also in marketing they try to be updated. They use

internet (they have VIP (very into pizza) club made where people can register their email, mobile

number where pizza hut provide them latest pizza news, discounts and offers at email ,mobile

phones) telemarketing, advertising for their promotional activities.

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Computer based customer data that is MIS (managing information system) helps in collecting

customer data, daily transactions, future forecasting and decision making.

Also in taking order they use the software provided by Devyani International Limited. DIL is a

leading franchisee of YUM Restaurants International, the world's largest restaurant company with

over 34,000 restaurants in more than 100 countries. Following are the screenshots telling the

process of order in pizza hut.

CHASE STRATEGY OF PIZZA HUT11

At the peak hours they prepare themselves few hours before

1. All team members are prepared before peak hours with vegetables required for

toppings. They keep things ready in the line. Keep lemonade syrup ready so that

they just have to add 7 up when the customer ask for a Lemonade.

2. They be ready with different patties ( pizza base)

3. They follow PREP strategy for peak hours.

4. During peak hour they provide the pizza making time of 15 – 20 minutes. While

there cycle of making one pizza is only 7 minutes. In normal case they provide the

pizza making time of 10 – 14 minutes.

This they do, so that the customers have food as early as possible and their table gets vacant early so that more and more customers are served.

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SWOT ANALYSIS

Strngths

Good Quality Food (Hygiene)- All the ingredients except local vegetables are provided

by Yum Restaurants through their Restaurant Support System. All other inputs are

according to the quality standards provided by them.

Brand Name: Pizza Hut is a franchise of Yum Restaurant which has its outlets worldwide.

Food worth its Price: Employing economies of scale, Pizza Hut has made its offerings

more affordable. They have starting range of Pizza with just Rs 75 and individual serving

pizza with cold drink for Rs 99 only.

Good Service: The provide good service in terms of timeliness of pizza, courteousness of

employee, knowledge of employees, taste of pizza etc. They provide pizza before time,

their staff are scattered around near all the tables so that incase the customer wants to

call pizza boy they just have to wave.

Weaknesses

Que during Peak Hour

They advertise very less

Fewer Outlets: Their outlets are not spread all over the city as compared to other

competitors.

Opportunities

Pizza Slice: They are one of the best pizza makers. In their take aways they can start with

pizza slices. This will attract people with small budget as well as those who wish to try

pizza hut. This has been started by Sbaro – one of its competitor. Pizza Hut being in

market for a long time can cash on this opportunity

Threats

Competitors like Dominos, Sbaro .

Housewives are interested in making Pizzas & other Fast Food at home.

SEGMENTATION

Identifying portions in market different from one another.

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Demographic segmentation:

Higher Income

Dual Career Families

Age 12-30 Years.

Geographic segmentation:

Localize products, advertising, promotion and sales efforts to fit the needs of the individual

areas and cities.

Psychographic segmentation:

Dividing the market into different groups based on social class, life style or personality

characteristics.

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Target Markets Target audience is basically anyone and everyone who loves to eat pizzas.

Age group of 12 to 30.

Pizza has long been targeted to families, because of the convenience that is present when

serving pizza to a group.

Generation with a "spend now, pay later" attitude

Spending habits of college freshmen also indicates a high percentage of money being

spent on non-essential items.

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PositioningPizza hut has done their positioning in the target market by keeping in view two basic factors:

Quality

Frequency

Worldwide and in India, Pizza Hut has come to become synonymous with the ‘Best pizzas

under one roof‘

• Crew members 'customer mania‘ which makes Customers Unique dining experience.

e.g. Services

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7 P’s OF SERVICESPRODUCT

Worldwide and in India, Pizza Hut has come to become synonymous with the ‘best pizzas under

one roof’. This is because at Pizza Hut the belief is that every pizza has its own magic, thus

making it a destination product – which everyone seeks. It is this belief that has ignited the

passion to create, innovate and serve the finest product the industry has to offer, while setting

standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising

product quality, offering customers the highest value for money and giving service that is warm,

friendly and personal. A critical factor in Pizza Hut’s success has been its unique dining

experience. Crewmembers at Pizza Hut strive each day to provide ‘customer mania’ - the kind of

service that ensures that every visit of the customer is a memorable one.

Over the years Pizza Hut has also developed and successfully introduced a range of products

especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spicy

Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also

given Pizza Hut a competitive edge is that in addition to an extensive range of

internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed

Crust, in India the menu offers the option of a complete meal. It includes appetizers, a

Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas and

desserts

PRICE

In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail

price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is

above the competition, but also promote frequent sales to lower the price below them. Both

Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used..

Pizza Hut will be able to sell two products together at a single price to suggest a good value.

Different groups of customers are willing to pay different prices for the same product. Pizza Hut

can sell "The Extreme" to the customers who will pay the higher price to be the first to buy and

also to the bargain hunters Finally, this strategy will emphasize product and service quality. Pizza

Hut sets a high initial price for its products to send a signal to customers that its products are

quality and the service is excellent.

PROMOTION

The objectives of promotion are to introduce a new product, stimulate demand, change the

short-term behavior of the customers, and encourage repeat or greater usage by current 17

customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to

purchase. This promotion is also distributed mainly by mail (VIP members), but also by fliers on

college campuses around the country in order to reach the target market. They are using

billboards on main stream places to get there customer. They are also distributing door to door

brochures to capture more and more customers. Pizza huts also using marketing techniques.

These are the strategies Pizza hut is using for its marketing. Pizza huts try's to attract the

younger generation as their main market segment. Apart from this Pizza Hut is using intense

marketing strategies they are also giving ads in magazines. Advertising camping will creates

awareness of the products in our target markets.

DISTRIBUTION

The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is

successful when there is an extremely large market that is geographically dispersed. The direct

channel is also useful when there are a large number of buyers, but a small amount purchased

by each.

Pizza Hut uses 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.

PEOPLE

Here the job design is not the most difficult task to do. Also there is no specific requirement for

recruiting process.

After talking one of the employees in Pizza Hut, we came to know the criteria of selection. The

girl was from west India, she was only 10th passed out. After this we it was confirmed that there

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is no proper requirement of the educational background. The only factor they were considering

on the communication skills, how they communicate with the customers.

Since the communication is the most important factor between the customer and employee

because the whole process is depended on giving the orders for food. For this the Management

conducted the training process for the new employees. The Training is given for total 5 days. Out

of 5 days, they have 3 days for kitchen training and other 2 days in the main dining, that is, how

to take orders and basically how to communicate with customers and make them happy by their

services.

PROCESS

The design of the process of the pizza hut is very efficient .pizza hut do not follow any kind of

hierarchy , all the employee is at the same level ,pizza hut has a very prescribe and well known

process by adopting various technology software which help them to upgrade their supply

management and also manage their crowd of customer efficiently.

PHYSICAL EVIDENCE

The ambience of the pizza hut is good enough to catch up the people .they provide a very good

dining experience with high quality of atmosphere in terms of there physical evidence. and pizza

hut always try to upgrade with changing envierment and modernization is key of success of the

pizza hut.

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SERVICE PROCESS

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REFRENCES21

• Websites

1. www.pizzahut.co.in

2. www.pizzahut.com

3. www.images.google.co.in

4. www.wikipedia.org

5. www.google.co.in

• Books

1. Marketing management-(Philip Kotler)

2. Marketing planning & strategy-(Subhash C.Jain)

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