Pizza Hut 12666i

MARKETING OVERVIEW OF

By Danish Khan Waseem Hassan

1706

HISTORY OF PIZZA HUT

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney decided to open a Pizza parlor

They borrow $600 from their mother and they purchased some second hand equipment and rented a small building on a busy intersection in their hometown

Pizza Hut, a division of Tricon Global Restaurants, Inc., has more than 7,800 units in the U.S. and 3,200 units in more than 86 other countries Their products have been voted Number One in countless consumer surveys nationwide. In 2008 Pizza hut history was made again, when they were the first national pizza franchise to allow their customers to order online in Spanish

The First Pizza Hut at Wichita, Kansas

PIZZA HUT IN PAKISTAN Pizza Hut started its operations in Pakistan on December 23, 1993 Under the management of HABIB OILS MILLS (Pvt) Ltd “HOM”.

Presently it have total of thirty seven outlets in the country— seventee Karachi, twelve in Lahore, one in Hyderabad, one in Peshawar, one in Faisalabad, one in Sialkot, one in Peshawar and three in Islamabad.

When Pizza Hut came to Pakistan, youth rose to this occasion and responded with glee and appreciation to the very high and demanding standards that Pizza Hut has set for itself.

Every Great length journey starts with a small step…

PRODUCT Pizza Hut has a wide assortment of products ranging from hot selling Pizza to salads, lasagnas to sandwiches and appetizers to desserts Keeping in mind the tastes of its target market, Pizza Hut keeps on adding a number of products on its menu Moreover, Pizza Hut eliminates out items which are obsolete or not liked by Customers to insure the new range of Pizzas. Pizza Hut assures high quality food and this is made possible due to well-organized procedures, latest technology and imported raw materials Pizza Hut has a separate quality control management system, which assures that the products are up to the standard mark.

PRICE The management frequently brings about variations in its pricing strategies to cater to the diversified market of its products In order to penetrate into their targeted segments, Pizza Hut seeks help from Promotional Pricing and Discount Pricing . Price has never been Pizza Hut’s unique selling preposition as most of the raw materials are imported so because of this factor the prices are little high

PROMOTION Companies engage in promotional activities to communicate with customers or clients.

There are basically five forms of promotion: personal selling, advertisi sales promotion, public relations and publicity The most commonly used form of promotion adopted by Pizza Hut is advertising through Billboard signs and prints (Newspapers and magazines). Some of the promotional schemes carried out by Pizza Hut in order to attract more customers and increase sales.

Pizza hut is the one who has introduced the concept of “Midnight deals concept Pakistan

PLACE The strong and wide distribution network of Pizza Hut play a vital role grabbing the maximum market share in Pakistan. Pizza Hut currently has seventeen operational units in Karachi. Pizza Hut also has a free home delivery system. And it has introduced the mobile unit i.e. “PIZZA ON WHEELS” at different places in the city. It is catering all the visitors and the people living the areas near by.

Product Life Cycle Pizza Hut is in its maturity stage, the sales of Pizza Hut have risen considerably. It has recently been classified the highest selling outlet in Asia As a rough about percentage its sales have increased by about 25% from last year and 65% from the year before that Now even people who were unaware of Pizza Hut have become aware of the incomparable food and services attained through experience and also from hearing favorable words by its valued customers. The market share of Pizza Hut® is increasing and more and more people are turning towards Pizza Hut.

PRODUCT LIFE CYCLE Maturity

Growth

Introduction

MARKET SEGMENTATION Pizza Hut believes in customer orientation, it segments its market on the basis of different dimensions such as:  Geographic,  Demographic,  Psychographic.

Geographic

Pizza Hut subdivides its markets on the basis of its branch locations in Karachi. At present, it has 17 branches in Karachi alone and therefore, the geographic distribution of its segments can be categorized in the following way: o o o o

A category market- customers residing in Clifton and Defense. B category market- customers living in PECHS and SMCHS. C category market- customers dwelling in Nazimabad and Gulshan. D category market- customers residing in the busy commercial area of I.I. Chundrigar road.

MARKET SEGMENTATION Demographic Pizza Hut segments its market on the basis of a wide number of vital statistics that describe its markets such as age, income, family size and education. Initially, it targeted the higher income groups belonging to the posh localities. Later, it redefined its segmenting strategy and shifted to the lower and middle classes families of the society to capture a huge market.

Psychographics In Pizza Hut, there are basically two broad segments, mainly People coming to have fun and enjoy themselves. People coming for quality food. Many teenagers are seen with their friends enjoying the dining experience at Pizza Hut. The music at the time of the teenagers is specifically catered to their needs.

MICRO ENVIRONMENT Customers

The management at Pizza Hut believes that customers are an integral part of the marketing environment In order to form a long lasting relationship with customers, several steps are taken such as the offering of attracted discounts, deals , acceptance of credit cards , arranging special events (e.g. independence day, Eid, Valentine’s day, New Years eve, Ramadan etc), providing free home delivery and take away. Pizza Hut teaches its employees in the initial training to treat every customer with care.

Furthermore, the customers are treated with utmost respect and their complaints are given due importance by the waiters and the branch managers

MICRO ENVIRONMENT Suppliers The raw material of Pizza hut comes from two sources i.e. from local market and as well as from foreign market. They import about 60% raw material from foreign countries and 40% from Local suppliers In case of drinks, Pizza Hut has a contract with Pepsi. Cheese are imported from Australia where the parent company is situated.

Work Force The management at Pizza Hut realizes the importance of a competent and friendly work force in the success of its business.

The employees are trained to serve the customers in a courteous and friendly manner in order to create a homely atmosphere. Fringe benefits and performance rewards are common means of motivating the staff.

MACRO ENVIRONMENT Demographic Since, the population of Pakistan is increasing at a rapid rate, it comprises mainly of younger generation which are fond of dining out. Realizing this fact, Pizza Hut exploits the situation in its favor by attracting the younger population.

In conjunction with the idea of t family system in Pakistan, the outlets also encourage the visits by families by offering facilities such as the video games, goody bags and coloring kits for children. After 8:00 p.m. each day, especially on weekends, the most regular visitors are families.

Pizza Hut apparently caters to the upper and the middle classes of th society. Since, it has branches in Karachi, Lahore, Islamabad, Multan, Faisalabad, Sialkot, Peshawar and Hyderabad, it only caters to the Urban population.

MACRO ENVIRONMENT Economic As far as the economic conditions of Pakistan are concerned, the picture is very disappointing. The economy is in a state of economic recession and the economy is not growing.

This effects Pizza Hut negatively because the economic environment is not conducive to growth. The rate of inflation is very high, which poses a serious problem for Pizza Hut. In spite of this fact, Pizza Hut h not increased the prices of its menu since the last couple of years.

Technological Being a multi-national company, Pizza Hut recognizes the importance of technology in the operations and success of its business.

It has imported costly machines for the preparation of pizza such as the one used for making the bread (at a precise temperature of 41C) and an entire freezing unit to keep the salads fresh for at least two da

COMPETITORS

The competitive environment directly influences a business’s marketi program. In the case of Pizza Hut, the business may face little or no competition in respect to brand competition. which comes from the marketers of directly similar products.

Pizza Hut’s management feels that it does not have any real competition from a pizza selling business (except for Gino’s in Lahore) and is regarded as the largest pizza parlor chain in the world with the added advantage of a strong brand name and solid clientele. Restaurant goers have a wide range of alternatives to choose from such as McDonalds, KFC etc. But management believes that the inception of the operations by KFC and McDonalds does not create any threat as they have a different orientation altogether.

Pizza Hut is a favorite hangout place for many people as it specializes in many types of supreme quality pizzas while the other fast foods ha a limited menu.

MARKET SHARE

Pizza Next 10%

Papa Johns 5%

Dominos 5%

Pizza Hut 80%

INDIRECT MARKET SHARE

ADVERTISMENT Electronic Media The electronic media is the most commonly used in medium in the world of the marketing. In their ments, you will see a series of hot and yummy pizzas. Currently they are celebrating their 15th anniversary in Pakistan.

Print Media

Their print media is consist of a series of ments depicting the brand personality in magazines and newspapers. These magazine are oriented towards teenagers and families of affordable class. Specific issues of newspapers such as “Images” in Dawn and “You” in “The News” also serves as important media for their product image as of Biggest Brand for Pizza Lovers.

Bill Boards Billboards at strategic locations are placed in different different key areas, in all the major cities where they are present this channel of ment is being used as an important medium.

Special Thanks Mr. Muhammad Raiyed Khan Restaurant General Manager Pizza Hut North Nazimabad Karachi.

Thank You