pizza hut.docx

A Project Report

On

The Brand Audit of Pizza Hut

Submitted in partial fulfilment of the requirements of

Master of Business Administration

By

Pawan Jariwala2014-2015

012014030

Submitted to

Rohit Singh

Auro University of Hospitality and Management

Surat

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Acknowledgement:

I take this opportunity to express my profound gratitude and deep regards to Mr Rohit Singh who gave me the opportunity to study the concept of Brand Management of Pizza Hut in the module of Brand Management at Auro University, Surat.

Lastly I would like to thank all those who helped throughout the project

Pawan Jariwala

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Table of Contents:

Sr. no TopicsBrand Inventory

1 Introduction of Pizza Hut2 History3 Ownership4 Product Related Attributes5 Communication, Pricing6 Pizza Hut Portfolio

Brand Exploratory7 Customer knowledge of Pizza Hut8 Sources of Pizza Hut9 Customer Based Brand Equity Model10 Threats to Pizza Hut11 Conclusion12 Recommendation13 References

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Brand Inventory

Introduction of Pizza Hut

When it comes to tossing dough around, no one does it more often and better than

Pizza hut. The division of YUM! Brands- operate the world's#1 pizza chain with more than

13,000 outlets in nearly 100 countries worldwide. Pizza Hut is an American restaurant chain

and international franchise based in Addison, Texas. Pizza Hut Inc. is the largest pizza restaurant

company in the world in terms of both the number of outlets and the percentage of market share

that it holds. A subsidiary of PepsiCo, Inc., the company oversees more than12000 pizza

restaurants and delivery outlets in 90 countries worldwide. The chain serves a variety of pizza

styles, including its flagship Pan Pizza, as well as thin n'crispy, Stuffed Crust, Hand Tossed, and

Sicilian. Other menu items include pasta, salads, and sandwiches. Nearly 20% of its restaurants

are company-operated; the remaining units are franchised or licensed.

For the past four decades, Pizza Hut has built a reputation for excellence that has earned the

respect of consumers and industry experts alike. Building a leading pizza company has required

relentless innovation, commitment to quality and dedication to customer service and value. The

qualities of entrepreneurship, growth and leadership have characterized Pizza Hutt’s business

through more than four decades of success. Through the strength of its heritage, its culture and

its people and franchisees, pizza hut looks forward to more success in the future.

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History

Pizza Hut founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita,

Kansas. When a friend suggested opening a pizza parlor then a rarity--they agreed that the idea

could prove successful, and they borrowed $600from their mother to start a business with partner

John Bender. Renting a small building at 503 South Bluff in downtown Wichita and purchasing

second hand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut

restaurant. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick Hassur opened

the first franchise unit in Topeka, Kansas

In the early 1960s Pizza Hut grew on the strength of aggressive marketing of the pizza restaurant

idea. In 1962, the Carney brothers bought out the interest held by Bender, and Robert Chisholm

joined the company as treasurer. In 1966, when the number of Pizza Hut franchisee units had

grown to 145, a home office was established to coordinate the businesses from Wichita. Two

years later, the first Pizza Hut franchise was opened in Canada. This was followed by the

establishment of the International Pizza Hut Franchise Holders Association (IPHFHA). It aimed

a acquiring 40 percent of the company's franchise operations, or 120 stores, and adding them to

the six outlets wholly owned by Pizza Hut. In early 1970 Frank Carney decided that the business

strategy was inadequate, and that a more developed, long-term business plan was necessary. The

turning point occurred when Pizza Hut went public and began growing at an unprecedented pace.

In 1970 Pizza Hut opened units in Munich, Germany, and Sydney, Australia. That same year,

the chain's 500th restaurant opened, in Nashville, Tennessee. In 1971 Pizza Hut became the

world's largest pizza chain, according to sales and number of restaurants. A year later the chain

gained a listing on the New York Stock Exchange. Pizza Hut also achieved, for the first time, a

one million dollar sales week in the U.S. market. At the end of 1972 Pizza Hut made its long-

anticipated offer of 410,000 shares of common stock to the public. The company expanded by

purchasing three restaurant divisions: Taco Kid, Next Door, and the Flaming Steer. In 1973

Pizza Hut expanded further by opening outlets in Japan and Great Britain. Three years later the

chain had more than 100 restaurants outside the United-States and two thousand units in

its franchise network. In 1977 Pizza Hut merged with PepsiCo, becoming a division of the global

soft drink and food conglomerate. Sales that year reached $436 million, and a new $10 million

5

dollar headquarters office opened in Wichita. The 1980s brought new competitors to Pizza Hut,

all challenging its number one position in the pizza restaurant trade, then worth $15billionin

sales annually in the United States alone. Also, to raise its profile, Pizza Hut introduced

"Pan Pizza" in1980 throughout its network. In 1984 Steven Reinemund was appointed president

and chief executive officer of Pizza Hut. In 1986 Pizza Hut opened its 5,000th franchise unit,

in Dallas, Texas, and began its successful home delivery service. By the 1990s the delivery and

carryout business had grown to account for approximately 25 percent of the company's total sales,

by 1986 there were 100 restaurants in UK and 5000 worldwide.

Ownership

Pizza hut is wholly owned subsidiary. The industry is a fast food restaurant. The founders are

Dan and Frank Carney. It employees more than 1,60,000 employees. The parent company was

Pepsi Co from 1977-97 and from 1997 till date it is Yum Brands. In July 2000, Pizza Hut

became the first company in history to place its logo on the world’s largest proton rocket. In

2002, Tricon Global became YUM! BRANDS INC. In 2006, Whitbread sold their shares to the

joint venture to Yum! Brands Inc. Also as a result, Pizza Hut Inc. UK was100% owned by Yum

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Product Related Attributes

Pizza Hut is the leader in innovative products and this new product that we are proposing will

surely be a success, given Pizza Huts track record. With high competition from the other top

firms in the industry, the introduction of a new product is necessary to keep one step ahead of the

competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger

than the competitors at twenty-inches and have twice the toppings that the competitors have.

Pizza Hut will market this product along side other extreme products such as Mountain Dew, to

help Pizza Hut capture part of this new segment of the market. The selection of pizza's offered by

the competition have been significantly less creative than that of Pizza Hut in the past and Pizza

Huts reputation of offering high quality, new products will allow this new product to move into

the market as other new offerings have in the past. With the introduction of a new product, one

of our main objectives is to create recognition for our product. Our goal is to reach 85%

recognition of the new product in our target market. 

Pizza hut has many unique features of their products due to which it attracts the customers. The

product is classified into non-durable goods as it is a food item pizza hut differentiates itself with

its competitors with respect to their wide range of offerings. The main advantage of pizza hut is

that one can customized his own pizza by selecting the bread and loading it with the toppings

which one can select, this creates variety in the customers mind and thus one can enjoy whatever

pizza hut can offer

Communication

Many companies capture large quantities of customer data. But few use the data to deliver a

competitively differentiating customer experience. Pizza Hut is asking customers to provide their

preferences and using that information to deliver preference driven communications and pizzas.

Compared with Pizza Hut's former bulk promotions, this new preference driven communication

process has generated:

A 200 percent jump in average campaign hit rates across customer segments,

A 38 percent improvement in Pizza Hut's customer retention rate,

A 9 percent increase in customer visit/purchase frequency in just seven months,

Up to 6 percent extra sales generated every month since the program started.

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Pricing– The pricing of Pizza hut is premium / skimming pricing. Pizza hut knows that it is the

first entrant for pizzas in India. On top of it, Pizza hut provides higher quality food as compared

to its competitors and at the same time the ambiance of the pizza hut chain is better and richer

than most of its competitors who serve Italian products. Thus, even though Pizza hut has a

premium pricing, people prefer Pizza hut over others.

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Pizza Hut Portfolio

Starters

Vegetarian

Garlic Bread Stick: Freshly baked buttery garlic bread sticks served with cheese.

Spicy Supreme: Cheese, onions and green chillies.

Exotica: Cheese, olives, jalapenos, tomatoes and onions.

Chilli Cheese: Garlic bread with onions and green chillies on top of a gooey chilli cheese

surface

Cheesy Topped Wedges: Yummy potato bites on a warm tortilla topped with melting

mozzarella cheese, three cheese sauce, jalapenos, garlic, parmesan and fresh parsley.

Non Vegetarian:

Chicken wings: Tender and juicy chicken wings tossed in your choice of sauce

Barbeque

Chicken skewers: Jamaican jerk spiced chicken and Thai chicken on skewers served

with a cucumber and yoghurt dip. A chicken lovers delight

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Soups

Vegetarian:

Tomato ‘n’ Basil: Rich and tangy tomato soup with basil and garlic croutons.

Cream of mushrooms: Creamy mushroom soup simmered with vegetables and parsley.

Hut fresh veg soup: A flavourful clear soup with goodness of seasonal veggies.

Non Vegetarian:

Cream of Chicken: Creamy chicken soup simmered with vegetables and chunks of

chicken

Hut fresh chicken soup: A flavourful clear soup with goodness of seasonal veggies

served with chicken ham.

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Salads

Vegetarian:

Fresh Garden: Exotic vegetables corn, broccoli, cherry tomatoes, pickled cucumbers,

carrots, lettuce, bell peppers and red cabbage tossed in an Italian herb dressing and

topped with garlic croutons, pico de gallo and a sprinkle of parsley.

Non Vegetarian:

Classic Caesar: Fresh lettuce and grilled chicken, tossed in a delicate Caesar dressing

and garnished with Parmesan cheese, garlic and basil croutons and chopped parsley.

Pastas

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Tangy Twist Fusilli: Creamy tomato sauce spiked with tangy spices.

Cream ‘o’ Luscious Fusilli: rich creamy sauce with red onion, roasted garlic and a twist

of tomatoes.

Cheesy Pepper Fusilli: Fusilli tossed in a rich creamy Italian cheese sauce with

mushrooms, chicken meatball, olives, red paprika and topped with fresh parsley.

Sandwiches

All sandwiches are served with potato chips where available.

Black Forest Ham

A toasted cheese-crusted bun layered with Black Forest Ham, melted provolone cheese, creamy

Italian dressing, tomatoes and lettuce.

Buffalo Chicken:

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A toasted hoagie bun filled with our boneless wings tossed in Buffalo sauce and cooled off with

a creamy blue cheese dressing and crisp shredded lettuce.

Honey BBQ Chicken:

A cheddar-toasted hoagie bun filled with our honey BBQ boneless chicken wings, topped with

Ranch dressing, shredded lettuce and cheddar cheese

Meatballs Sub:

A toasted Parmesan hoagie roll filled with juicy meatballs, tomato sauce and melted provolone

cheese.

Roasted turkey provolone:

A toasted sandwich layered with roasted turkey and melted provolone cheese, topped with our

creamy Italian dressing, tomatoes, red onions and lettuce.

Supremo:

This toasted favourite is sure to please with layers of Black Forest ham, Italian salami, pepperoni

and melted provolone cheese, finished with crisp shredded lettuce, sliced Roma tomatoes and

Italian dressing.

Pizzas

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Vegetarian:

Paneer overloaded Big Pizza: Peppy paneer, onion, tomato, green chillies, corn and

Italian sprinkle.

Cheese overloaded Big Pizza: Cheese, mozzarella cheese.

Spice overloaded Big Pizza: Onion, capsicum, green chillies, paprika, and jalapeno.

Veggie overloaded Big Pizza: Onion tomato, sweet corn, jalapeno, black olive.

Non vegetarian:

Chicken overloaded big pizza: Chicken keema, chicken kofta, capsicum, onion, rd

paprika.

Desserts

Choco Chip Cookie Sundae: Warm jumbo cookie with 2 scoops of ice cream.

Classic Tiramisu: Layered cheesecake enthused with coffee and sprinkled with cocoa.

Ebony ‘n’ Ivory: A warm chocolate cake with vanilla ice cream and chocolate sauce.

Classic Vanilla Romance

Chocoholic Symphony

Hut Chocolate Fudge

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Beverages

Coolers

Orange Strawberry Spritzer: Refreshing orange fizzy drink with a hint of strawberry

Peppy Peach: Sweet peach crush, spiked with a twist of spicy Paprika.

Spiced Mango Sparkle: Tangy green mangoes with a hint of jalapenos.

Litchi Mint Mojito: An iced medley of sweet litchi and fresh mint

Green Apple Mojito: Classic mojito with a twist of Green Apple

Mojito Blast: Frozen mojito with a rush of lemon and fresh mint lea

Shakes and Cold Coffees:

Berry Vanilla Shake: Strawberry and red berry shake blended with vanilla ice cream

Berry Vanilla Shake: Blend of Belgian chocolates, rich cream topped with whipped ice

cream

Mocha Cold Coffee: Chilled mocha flavored coffee topped with whipped cream

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Tea

Hot Tea

Lemon Iced Tea

Fresh Lime &Lemonades:

Fresh lime: Prepared with water or soda available as sweet, salted or mixed.

Lemonade

Masala Lemonade

Cucumber Splash: Beat the heat with refreshing cool cucumber lemonade

Aerated Drinks:

Pepsi

7-up

Miranda

Pepsi diet

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Brand Exploratory:

Customer knowledge:

Customers follows variety seeking buying behaviour in buying the pizza

This is not because of the distraction of the products of the brand, its only for the sake of

varieties.

“With knowledge of how and when a customer will make their next order, Pizza Hut can

now prompt customers to order according to their needs and at the point where they are

likely to consider a purchase, hence increasing incidence of impulse purchases,”. “With

data analytics, Pizza Hut is also able to identify new customers and use attractive and

timely offers to persuade them to stay with the brand to broaden their total customer

base. 

Customer segmentation models have become more refined as each customer now

receives communications via channels to which they are most likely to respond. This has

increased campaign hit rates, improved campaign ROI, and built customer brand loyalty

all at the same time.”

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Source of Pizza Hut

Brand as a Product:

As a core element of a brand’s identity is usually its product thrust, this will affect the type of

associations that are desirable and feasible. Attributes directly related to the purchase or use of a

product can provide functional benefits and sometimes, emotional benefits for customers. A

product related attribute can create a value proposition by offering something extra like features

or by offering something better. For Pizza Hut, the brand as a product would represent the menu

they serve mainly pizzas and pastas, the variety of pizzas with indian toppings and the quality of

pizzas.

Brand as Organization:

This perspective focuses on attributes of the organization rather than on those of the product or

service. Organization attributes for pizza hut as follows:

Innovation

Adaptability according to the different market needs and local prefrences

Efficiency

Integrity

Brand as a Symbol:

A strong symbol can provide cohesion and structure to an identity and make it much easier to

gain recognition and recall. It presence can be a key ingredient of brand development and its

absence can be a substantial handicap, there are three types of symbols: visual imagery,

metaphors and the brand heritage.

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Jingles

Pizza Hut 

Pizza Hut 

Cheesy pizza everywhere 

Try the others if you dare 

PIZZA HUT 

PIZZA HUT 

You'll come back to PIZZA HUT 

For pepperoni in your gut 

Pizza Hut 

Pizza Hut 

Slogans

We have Pizza.

Now you’re eating.

Making it great!

You’ll love the stuff we’re made of.

The best pizza under one roof.

Gather round the good stuff.

Share the good times.

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Customer Based Brand Equity Pyramid

• The salience feature of Pizza Hut is that it belongs to Yum group; its global rank in top

brands is 51th rank with brand value of $ 6 billion USD. Its an American company of

Italian food.

• The image of Pizza Hut is that the American's nose ethnic baking with uniform taste

globally

• The performance of Pizza hut is like European ethnic food redefined in fast food

segment

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Saliance: Belongs to Yum group, global rank in top brands 51 rank with brand value of $ 6 billion USD. American company of Italian food

Image: American's nose ethinic baking with uniform taste globally

Performance: European ethinic food redefined in fast food segment

Judgement: World's loves pizza, pizza brother is passta

Feelings: Little vegetarian, little non vegetarian, open choice

Resonance: Pizza needs no definition no identification

• The judgement of Pizza hut is that the World's loves pizza, pizza brother is pasta

• The feelings of Pizza Hut it is little vegetarian, little non vegetarian, open choice.

• The resonance of Pizza Hut is that Pizza needs no definition no identification

Threats – Dominos is a single major threat to pizza hut when concerned with pizza or Italian

food. Dominos does not have a high quality food variety like pizza hut but Dominos is present in

most places where Pizza hut is not. Another threat is the wide options of cuisines which a

customer has available today through various food franchisee. McDonald KFC and others are

indirect competitors who take away customers regularly from pizza hut. Rising health concern

and people being more fitness concerned might also cause a drop in pizza consumption.

Pizza hut needs to be on its toes to survive and thrive in a saturated food franchisee environment

like India.

Threats of new entrants:

Since industry growth is high it attracts new potential firms to enter the market. However, if the

new entrants is experienced then it will be able to compete with the existing players else the

economies of scale enjoyed by the existing players will force the new entrants to existing market.

Threats of substitute:

Threats from junk foods such as hot dogs, sandwiches and burgers

Threats of buyers bargaining power:

From customer or buyer when there re number of suppliers of buyers concentration is high or

large availability of substitute goods.

Threats of supplier bargaining power:

Also from suppliers when there is large number of buyers from these suppliers, high

concentration of suppliers, high switching costs and non-availability of raw materials substitutes.

Competitive points of difference: The major point of difference between pizza hut and dominos

is that pizza hut concentrates on in-restaurant dining. The ambience and décor of all pizza hut

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outlets are good and the outlets are spacious. When customers think of party and decide to have

pizza, pizza hut only comes into their mind. Pizza hut also arranges kitty parties, birthday parties

and business meetings in their outlets. Pizza hut has customized birthday party invites with

different themes for the customers to choose and use it as invitations. Dominos aims at fast home

delivery of pizza. Whenever customers want to have pizza at home, they think of calling

dominos and ordering for it because they are experts in home delivery of pizza. We earn 60% of

our revenue from home delivery of pizzas and 40% from the restaurants sales.

Competitive points of parity: Competitive points of parity in case of pizza hut is that, even

though pizza hut is costlier than dominos, they have their own customers, who do not bother

about spending, but look for quality and personalised services. When we visit pizza hut, they

have restaurants hostess who will assign us table and introduce the steward who will be taking

care of us this is generally a procedure that is followed in five star category hotels and pizza hut

is also following it to emphasize on service quality. In case of dominos, they are not costly as

pizza hut and do not offer great ambience to customers, but offer good pizzas at normal price.

They concentrate on turnover of covers and cater to customers who don’t have time to spend on

food and just stop over for refreshment. Moreover, dominos mainly looks into home delivery of

pizzas and are experts in it.

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Conclusion:

I would like to conclude that it need to be a step ahead and in sync with the consumer’s

perception of value. Customers move to the lower cost provider when marketers stop giving

them reasons not to. Its strategies are successful and there is flexibility in the strategies, as they

can be changed with the changes in the market conditions as well as the targets.

Recommendations:

Pizza hut should focus on more advertisements. To increase their sales Pizza Hut should

focus more on advertisement

It should decrease the variety seeking buying behaviour.

Membership or discounts cards for the loyal customers. They should give discounts to

their customers who are visiting Pizza Hut and special offers for schools and college

going students, they are offering 20% off to students who are having NUS extra card.

It should make online ordering system. Being in existence for over 50 years, Pizza Hut

now has around 13,000 restaurants across the world and has become the pizza specialist

with the online pizza order in India. Pizza Hut home delivery pleases its guests over and

over again with the high quality and freshness of its ingredients used as well as friendly

and fast service. Today Pizza Hut online order offers much more than pizza, from

freshly sauted pastas and delicious appetizers to desserts & sides, it has a wide range of

choices on the menu, all available for you to feast on

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References:

Pizza Hut - Wikipedia, the free encyclopedia. 2015. Pizza Hut - Wikipedia, the free

encyclopedia. [ONLINE] Available at:https://en.wikipedia.org/wiki/Pizza_Hut. [Accessed 03

October 2015].

Sandwiches - Make it Great . 2015. Sandwiches - Make it Great . [ONLINE] Available

at: http://pizzahutpizza.com/menu/sandwiches/. [Accessed 03 October 2015].

Pizza Hut Restaurant Dining – Appetisers. 2015. Pizza Hut Restaurant Dining – Appetisers.

[ONLINE] Available at:http://www.pizzahut.co.in/dinein/appetisers.php. [Accessed 03 October

2015].

Pizza Hut Restaurant Dining – Soups & Salads. 2015. Pizza Hut Restaurant Dining – Soups &

Salads. [ONLINE] Available at:http://www.pizzahut.co.in/dinein/soup-salad.php. [Accessed 03

October 2015].

Pastas, Pasta Recipes, Tuscani Pastas - Pizza Hut Pasta Restaurant Dining India. 2015.  Pastas,

Pasta Recipes, Tuscani Pastas - Pizza Hut Pasta Restaurant Dining India. [ONLINE] Available

at:http://www.pizzahut.co.in/dinein/the-big-pizza.php. [Accessed 03 October 2015].

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Pizza Hut Restaurant Dining – Pastas Recipes. 2015. Pizza Hut Restaurant Dining – Pastas

Recipes. [ONLINE] Available at:http://www.pizzahut.co.in/dinein/pastas.php. [Accessed 03

October 2015].

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