Pizza Hut 12666i

ABOUT THE COMPANY. Pizza Hut is one of the flagship brands of Yum! Restaurant Int., which also has KFC, Taco Bell, A&W and  Long  John  Silver’s  under   its   umbrella.  It   is   the  world’s  largest   pizza   chain   with  over  12,500 restaurants across 91 countries. Two brothers Frank and Dan Carney in Wichita, Kansas, started pizza Hut in 1958. They had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut was serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990's Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the United States were over $5million. The first Indian outlet was opened in June 1996 in Bangalore. In India, Pizza Hut has 139 restaurants across 36 cities. Pizza Hut has been voted the “best family restaurant” for the second year running at the 2007Tommy’s   Parent   Friendly   Awards.   "Pizza   Hut   is   known   for   quality,   innovation   and   category leadership.

     MISSION STATEMENT. “We take pride in making a perfect pizza and providing courteous and helpful service on time all the time.” “To be the best pizza for every pizza occasion” “ Alone we are delicious, Together we are YUM!”

 o    P.E.A.R.L.S: ION for excellence in doing everything EXECUTE with positive energy and urgency. ABLE 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.      VISION.

o To make the people know that for all the eating items they desire to eat can be made available in minimum time without our effort excluding money.

o To improve the well being of our customers, community and people connected to our enterprise. “RUN GREAT RESTURANTS”

STRATEGIES ADOPTED BY PIZZA HUT. A business strategy is the pattern of decisions and actions that are taken by the business to achieve its goals. A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives. Running a business involves planning the currents well as future activities. Hence, in order to achieve the business objectives, all business organizations adopt different strategies. Similarly, Pizza Hut has adopted many strategies, which help achieve the targets set by the main office to the local store opened at Peshawar. Changes are the external as well as internal environment has led Pizza Hut rethink their past strategies and has therefore designed new strategies after noticing the changes in the environment. These environmental changes are seen through the PEST and SWOT analysis. After considering all the factors Pizza Hut has decided upon the strategies and their current strategies are divided into five main categories and further have sub-parts.  Functional Strategies: These are strategies designed to improve the efficiency of a business operations. They often focus on an area, such as marketing, human resource etc. All business organizations adopt strategies at functional level as once the functional objectives are achieved, corporate objectives become easy. In order to make the functional strategy efficient, Pizza Hut has made all the functional departments co-operate with each other.    Total Quality Management: This is the most important for a food chain like Pizza Hut. All the employees’ back-ofthe-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. This department has the task to implement quality standards and know whether they are achieved or not.

   Business Level Strategy: Business level strategies are plans made to gain a competitive advantage over its rivals in a market. Hence, all the businesses need to adopt business level strategies in order to compete in a competitive environment. If we take a look at the Pakistani market, there are no large competitors of Pizza Hut but unlimited small competitors exist in the market. The threat of competitors is very low as there is no international food chain offering pizza in Pakistan at present. Therefore, present strategies adopted by Pizza Hut are keeping in consideration the present competition. Whereas, in future this competition will increase and Pizza Hut will have to change all its business level strategies in order to compete with its rivals. In very near future Dominos is opening its first branch in Karachi. This would be a threat for Pizza Hut and hence, the strategies would be changed.    Pricing Strategy: The level of competition a business faces determines its pricing strategy. Sometimes a business has the scope to set its price and sometimes a business cannot. When a business has the scope to set its price there is a number of pricing strategies or policies it might choose. As there are no such competitors of Pizza Hut which could compete with the quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza Hut is market skimming. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Pizza Hut, as there are no competitors and hence, Pizza Hut is free to charge any price they want. They are charging higher prices due to the uniqueness of the product. They satisfy the target market as the food quality is worth the price paid. The pricing strategy is not just to get the worth of quality but also to gain maximum profits before any competitor enters because then Pizza Hut will have to change its pricing strategy. Although the prices would be lowered with the new entrants in the market but not to greater extent as the quality food products are not home-produced. They are imported from different countries keeping in view the best quality

VALUE CHAIN ANALYSIS. The value chain is a systematic approach to examine the development of competitive advantage. It was developed in 1985 by Michael Porter in Competitive Advantage. It is used as a tool to identify various ways to create Customer Value. The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. Value chain model from Michael E. Porter’s Competitive Advantage: According to this model the activities are divided into two broad categories:

• Primary Activities: Activities, which relate directly to the actual creation, manufacture, distribution, and sale of a product or service to the firm’s customers. • Activities: Economic activities, which assist the firm’s primary activities.

Operations:  Preparation of pizza base using the above mentioned sources as per the requirements and expectations i.e. the required amount of materials need to be added, thickness, softness, size of the pizza base as per the requirement, heating the same for the right time. All this so that the base becomes as per the expectations set for it.  Centralized locations for the preparation of pizza bases to maintain the uniformity, from where these are transported to the various outlets.  Customization of Pizzas, as per the order by the customer like what all toppings and flavors he wants. Examples: A orders for a chicken pizza, while B orders for a Vegetarian one with lots of toppings like mushroom, onion, on other hand C orders for just cheese pizza with no toppings at all. So different customers have different orders depending on their taste and preferences, location of the restaurant (like in India beef and other similar non vegetarian items are banned and people prefer Paneer items, on the other hand this thing completely differs abroad). Thereby making it an international brand with local taste.  Make Pastas and Salads: as per the order of the customer from the raw materials as mentioned above.  Doing all this in the specific time period (so as to deliver to the customer in the mentioned time period at the time of ordering) and also adhering to the company standards while maintaining the quality of the food item (pizzas and pastas).

Outbound Logistics:  Transporting the pizza bases to the Pizza Hut outlets, where they are kept and used for customization as per the order. This helps maintaining the uniformity of bases, saving time and resources in the preparation of pizza at each outlet.  Pizza and pastas etc. serving hot to the customers at the restaurant and at their doorstep.

Marketing and Sales:  Segmentation and Target Market: it basically targets the people till the age 55 years, including working people, families with young children, students and travellers. 

Branding: Pizza hut is a brand of pizzas and pastas, which means that its products have an authenticity and a definite brand value and satisfaction to customer of its quality.

 Redefining its menu: Like in India, they have introduced products that suit the Indian taste like the Paneer and tandoori pizzas etc. This helps to increase the customer base and satisfy them. Also, not using the products which are not acceptable in India like beef, ham etc.  Introduction of new products and backing them up with proper promotions, discounts and ments which excites the customers to give it a try at least or just have a high ‘what’s new’ quotient.  Pricing: as per the market demand and keeping the competitors also in mind.  Distribution: Pizza Hut is opening a large number of outlets targeting a large customer base, so that more and more people can enjoy its offerings.  Advertising through hoardings, newspapers, TV ads, promotion on internet, mobile apps, pamphlets etc. And also setting up stalls and catering in colleges, fests, events, marriages, parties etc.  Promotional offers like buy one get one free, corporate/college and group discounts, meals for 2 and 4, choose your own topping and pizza etc.  Consumer benefit: a belief about its exclusivity that Pizza hut offers a great and memorable dining experience, so much so that at many places people have to wait/book a table to get into the restaurants, thus increasing the charm in the people about it.  Also advertising that the pizzas are ‘served hot’ with their own set of indicators to do that- This also helps create an interest and confidence of getting hot pizzas in the customer’s mind.

Service and :  Provide/Serve the pizzas hot to the customers at the restaurants.  Providing the customers good service by making them feel comfortable and fulfil their needs both before and after serving the pizza to them.

 Politely tell the customers of the new menu items, offers that they have so as to ease their process of making choices.  Ordering online service: customers can look at the menu, decide and order online as per their location. They can also get and other information like the new entries, discounts and offers, which they can use as per their wish.

Activities Procurement: It basically deals with how to get the required resources.  It has to maintain the quality, deliver the best pizzas, keep the customer satisfied, all this at affordable and competitive prices. Thus, to achieve this they maintained the supply chain and developed a chain for 95% of its ingredients of local suppliers. And to maintain its famous Pizza Hut’s taste, it imports the main ingredients like pepperoni, mozzarella cheese from Australia and Spain respectively.  Their strategy to take some ingredients from the local market and get some imported helps them maintain the quality as well as low prices (as required especially by the Indian market).

Technology Development:  Pizza hut believes in taking from the customers and improvising themselves. So, all the customers that come to the Pizza hut restaurants and even the ones who order online give their valued as to what they liked and how can they improve to serve better.  Pizza hut does research work on how to improve on the existing products and innovate to introduce new ones. This is to provide the customer with the new products and increase the foot step, and also give a distinctive perspective to the brand so as to be in front of the line when it comes to offer the best pizzas and service. Usage of the modern technology is also done like:

 Maintaining of databases of customers so that they can be ed at the time of festivals and for promotional offers.  Reaching out to the corporates and colleges through emails and over the net communication, for setting up of stalls during the fests and events for increased sales, enlarging the customer base and targeting these customers as frequent customers by sending them offers through emails and SMS giving them corporate and college discounts (which helps make Pizza Hut the top most option for the people when they want to have good food and have a memorable time).  Usage of the computers and other advanced electronic items which help keep them a check on:  Billing information  The Inventory  What all needs to be bring in as raw materials  Sales  Readily available Employees details  Temperature controlled trucks for the transportation of the raw materials and prepared bases at a controlled temperature can be done / ?

Human Resource Management: Pizza Hut  Focuses on hiring of the new employees.  Provides them the required trainings so that they can perform as per the expectations set for them on the job.  Strives to increase the knowledge and skills (including soft skills) of its employees.  Gives annual appraisals as per the performance of the employees. This also helps the employees get the motivation and work hard to get the appraisals.  Important information’s are diligently internally communicated to all the employees.  Its employees work ionately in providing the customers a great time by doing a number of activities like smiling and greeting the customer, politely taking the orders and even guide them (if required), serving the food hot as and on time as per the specifications and customizations mentioned by the customers (like what all toppings should be there, use of onion or not in vegetarian pizzas, even to the extent that number of ice cubes in the drinks/beverages served), politely asking them to come again. This makes the customer feel really comfortable and happy and thus making them wanting to come again and again. 

The employees are able to handle some critical situations and take decisions accordingly- as per the demand of the situation, without even the help of their supervisors. This thus even provides them the freedom of decision making.