Marketing Strategy by Pizza Hut Essay

Various tools and methods like, secondary sources were espouse to collect protestation to critic entirelyy analyze the marketing strategies adopted by pizza pie pie pie pie shack, analyze the probable market for the ingathering, study its competitors and supplant mathematical products, to estimate future sales and expected sh atomic number 18 of the market, analyze the effectiveness of advertisement, its tar select market and in conclusion why people prefer pizza shack. RESULTS AND DISCUSSIONS MARKETING STRATEGY pizza field sea chantey follows the follo hitg outline Total market schema- pizza pie hut started with a single product i. e. pizza pie but with polar segments emerging and the degree of competition increasing, it diversified into several(prenominal)(prenominal) products to serve unlike segments. It came up with chicken nuggets, wedges, garlic bread, smiley etc. International marketing dodge pizza pie chantey started with local market strategy in Kansas, USA so moved on to regional markets in and across USA. In 1968, pizza chanty started its international movement by opening its 1strestaurant in Canada. And today pizza chantey is worlds largest pizza chain with its presence in more than 100 countries. Early Entry schemethough pizza sea chantey was not the prototypic entrants in the pizza market infuse. But pizza pie hutch followed an early entrant strategy. Customers k in the altogether(a) what a pizza is but still there was enormous likely to tap. In order to become a leader, pizza hut continued to refine their product &develop newborn product to suit their guests changing tastes. Ultimately pizza pie sea chantey with its superior onward motion, manufacturing and dispersal activities has turned out to be the winner. Strong Commitment dodging pizza pie Hut has been operate in the pizza market by realizing all economies of scale in promotion, distribution and manufacturing facilities.If Papa illusions or Little C aesars come out with a new competitive pricing strategy or innovative product, then pizza pie Hut quite aggressively fights back by bringing more competitive pr starters or better innovations in product category. In simple words, pizza Hut takes all possible measures to defend its leadership position in the market. Pizza Hut An Overview of the intersection point Strategy Product Strategies specify a market needs that may be served by different products offerings. Product Positioning Strategy-Pizza Hut has always followed Single brand positioning strategy wherein it has positi geniusd solitary(prenominal) its pizzas.Although the positioning teaching has been different in different countries but it has always hovered around its PIZZAS. For instance, in Canada, its positioning statement is The topper tasting pizzas under one roof which reflects great variety of pizza being served , in chinaware it has positioned on Dine-in restaurants, in Australia, it is made fresh, served hot and on time which reflects that best of ingredients are apply and pizza is delivered on time.Product-Scope strategy Pizza Hut follows a multiple product strategy as pizza hut not only sells pizzas, but as well deals in a variety of other products as although all the product offerings in pizza hut are not as fast sorrowful as its pizza, but they usually complement each other. For instance, family coming for a dinner usually starts with nearly soup and garlic breads and then moves on to pizzas on with some diet salads. In this way, pizza hut caters to different people with different needs and tastes and preferences.This helps in increasing sales, profitability, market share and above all Customers Mind Share Product-Scope Strategy Salads & Pastas, Appetizers Pizzas, Soups and Desserts Product-Design StrategyPizza Hut follows the strategy of interchange Standardized Products with modifications. Pizza Hut of importly sells 4 types of pizzas Pan Pizza, hand-tossed pizza, stuffed c rust pizza and Thin N Crispy pizza.Pizza Hut serves these standard style pizzas everywhere in the world but at the same time, it offers its guests to choose different toppings as extra mushrooms or extra capsicum and onions with extra cheese or chicken toppings like toppings of meat, bacon, fish, ham, beef topping, pork toppings etc. Secondly it offers what is known as judge meal combos wherein it offers a combination of pizzas, appetizers, beverages etc at lower prices.For instance, Pizza hut introduced Meal for 2 which offers modal(a) pan/ fresh pizza, garlic bread sticks with 2 eyeglasses of Pepsi. Similarly pizza hut too offered Meals for 4 where it offered 2medium pan pizzas, with one plateful of garlic bread and one portion of wedges with 4 glasses of Pepsi/Soup. Pizza Hut by offering standard products seeks economies of scale and by offering modification options enhances customer satisfaction which adds to brand equity of Pizza Hut Product innovation strategy Pizza Hut has been constantly involved in innovating new products.It started as Pizza chain in 1958. On one hand, it offers traditional Italian pizzas while on other hand, it innovated several new varieties as pan pizza, turn n crispy, stuffed crust, the big New Yorker pizza, hand tossed pizza, the edge pizza along with the Sicilian Pizza. Pizza Hut spends extensively on research and development of its innovative products. At the same time, customers feedback besides plays an important role in preparing new pizzas. For example, The Big New Yorker Pizza. Pizza Hut continued to assimilate innovations as it followed International marketing strategy.In India, Pizza Hut launched international style pizza in localized Indian flavors like Tandori pizza range with Punjabi flavors, vegetarian tama-tam, Murgh Mazedar Pizza etc. Similarly, in mainland China along with traditional pizzas, it served Sangria and Escargot. Along with pizzas, Pizza Hut also innovated beverages and drinks to satisfy the t astes of consumers. For e. g. Pizza Hut in Oman has added a refreshing splash of tropics to their menu with the launch of Monin, a new line of flavored drinks. Value Marketing Strategy Pizza Hut as far as mensurate marketing is concerned follows Quality strategy, Customer- service strategy.Time-based strategy Pizza Hut promises its customers to give them best choice product busing best graphic symbol ingredients. Time and again it re-emphasizes on this fact through its advertisement campaigns. Pizza Hut main motive is to enhance its customers satisfaction by providing them best tint products at inexpensive prices. At the same time, pizza hut always tries to deliver on time. Although Pizza Huts competitor Dominos differentiates on basis of timely actors line in 30 minutes, however, Pizza Hut through its innovative technology is also trying to reduce its delivery time to 30 minutes and fight back Dominos.Pizza Hut Overview of the set Strategy Pizza Hut ideology of Customers beh ind its pricing strategy unbidden to bear back up for relevance Willing to pay for excitement Willing to pay for quality Willing to pay for simplifying life Willing to pay for forward movement But Selective and defiant Pizza Hut follows A High/ base Pricing strategy as far as its new products is concerned where it fixes the price higher than its competitors and then gradually lowers the price below the competitors prices. In simple words, it is applying Price Skimming strategy for its new products.For instance, the price of the Extreme was fixed at $9. 99 which was much higher than its competitors. But several sales promotions were used to reduce the price of the pizza below its competitors since both Pizza Hut and Pepsi are partners Bundle Pricing is used where 2 liter bottle of Mountain dew was offered forgo with The Extreme pizza. The high/low pricing strategy has several advantages for Pizza Hut Used to create excitement. practice high prices initially to send a signal th at its products are best inequality and service offered is excellent.Helps in segmenting the market as Pizza Hut can sell the extreme pizza to the customers who wish to pay higher price as well as to the bargain hunters too. Pizza Hut in formulating the arrant(a) pricing strategy focuses on Value which it is providing to the customers at a ill-tempered price. As far as the pricing of established products is concerned, Pizza hut believes to give Value for Money to its customers. and so in order to provide maximum value to the customers and enhance the brand value, it sometimes maintains the same prices while sometimes reduces the prices, while sometimes increase prices also.One-Price Strategize. It charges the same price to allot customers under correspondent conditions and for the same quantities. This helps in establishing a favorable and fair image among its customers as well as having a stable market. Pizza Hut at the same time follows Price Bundling Strategy or Value Pricing wherein it combines the items of its menu and offers at a less(prenominal)er price then what a customer would have to pay if he bought these items individually . For Example, in India, Pizza Hut offered for Rs.75 a deal of a plate of garlic bread sticks, 1 personal pan pizza, a glass of Pepsi and one scoop of ice cream. Similarly Pizza Hut offered meal combos serving 2 people or 4 people. These bundling schemes attracted large number of customers who are not only interested in pizzas but in tasting other things as well. In offering such(prenominal) schemes, although Pizza Hut costs less but at the same time, this increases the customer inflow and sales revenue of PH tremendously. Thus Pizza Huts pricing strategy revolves around providing maximum value to the customer at an affordable price.Pizza hut never plays the price game as it has positioned its brand on high quality and excellent customer service. And even Pizza hut customers dont mind paying a little more than its competitors because of the service it renders and quality it promises. Pizza Hut An Overview of Franchise Model Franchising involves a contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to take over a minded(p) form of business under an established crap and according to a given pattern of business.Pizza Hut after its incorporation in 1958 opened its first franchise whole in Topeka, Kansas. Followed by a Pizza Hut restaurant built in just 5 days by franchisees in Oklahoma State Fairing 1968, Pizza Hut made a globose entry by entering in Canada. Then it made strong foot holding in Australia, Japan, England, Kuwait, and Abu Dhabi. By 1989, Pizza Hut was already serving 54 countries. In 1996, Pizza Hut entered India with the first dine-in restaurant in Bangalore. While entering in the international arena, Pizza Hut used the Franchising pathway as the entry strategy. (Scribd, 2010).FINDINGS Prom otion mix 1. advertising 2. Personal selling 3. sales promotion A) publicise Advertising is non personal communication transmitted through mass media as radio, television, print, internet and outdoor media. The main objective behind every campaign is either to increase sales by encouraging potential getrs or inducing repeat purchases or prompting immediate purchase by offering exceptional schemes or to create awareness about a new product offering by play up a new flavor or announcing price changes or demonstrating the product in use by depicting inexperience.Advertising Sales Promotion For instance, to launch a new flavor in India named The peachy Indian overlay, Pizza Hut signed a Jived Jaffrey for its new TV commercial. Similarly to inform the customers about Rs. 50 pan pizza, Pizza hut takeed Zayed Khan as a young stripling boy friend who has to treat his large number of girl friends with something trendy and affordable. Pizza Hut also launched certain ad campaigns to counter attack its competitors promotions.For instance, in 2005 Pizza Hut launchedFreshizza ad campaign featuring Malia sunrise Khan and counter attacked Dominos campaign showing Anuran Khmer and Parish Revaluate the same time, Pizza Hut brings about local flavor in its ad campaigns. Indifferent countries, it uses models, situations, positioning clearly related to that particular country. For instance, in India, Pizza Hut focused on parts such as marriage and used Indian models that represent and relate to their target audience. Similarly, in USA, Jessica Simpson sells chicken nuggets and pizzas for Pizza hut.(Scribd, 2010) Internet Advertising not only Television advertisement, Pizza Hut along with Pizza innovations, also innovates new ways of promoting its products. of late Pizza Hut signed a deal with Yahoo internet portal to advertise its products. sign Media (newspapers, magazines, pamphlets, posters) Although Pizza Hut advertises mainly via television, but print ads also c onstitutes a major portion of its promotion mix. Outdoor advertizings Pizza Hut adopted a variety of innovative types of outdoor advertisement.Balloon Advertising Pizza Hut indulged in an extremely innovative form of advertising named Balloon Advertisements where in bleak air balloons in the shape of Pepsi can, pizza slices and garlic bread are placed either in front of the hut or placed at its roof top. Space Marketing Pizza hut came up with a very innovative method of advertising when Pizza Hut paid huge sums (approx $1 million) to put a 30 ft large logo on Russian Proton Rocket. non only had the logo, Pizza Hut also made its pizza procurable to the astronauts in the space.On such a successful venture, Pizza hut stated that If space tourism is going to be a reality, Pizza Hut pizza volition make the trip even better. Banner Advertisement Styrofoam along with McCann Erickson came up with really innovative banner advertisements to advertise its new range of Gourmet Pizzas. Post er Advertisement Pizza Hut came with a tremendously successful Poster advertisement campaign on the join of Halloween when Pizza Hut advertised for The Ghoulish Tripplecheese, the spooky cheese combo, and the Halloween cheese supreme B) Sales Promotion.Sales promotion refers to a variety of short term incentives to encourage trial or purchase of a product or service. Coupons and Rebates Pizza Hut offers discount coupons in physical form with every purchase we make. However in USA, UK, Canada where online ordering contributes a major percentage to total sales, Pizza Hut offers online coupons for different regions of varying denominations Premiums & Gifts Pizza Hut offers Gift vouchers to be presented as a gift to someone peculiar(a) on marriages, birthday, and anniversary etc. these gift vouchers are available in denomination of Rs. 500, rs. 1000, rs.2000 etc. Pizza Hut offers CDs and DVD along with their pizzas as gifts to act as an additional incentive for customers to make the purchase. For e. g. preposterous DVD Promotion Pizza Hut came up withal promotion campaign where is offered a free DVD with a large size pizza and in a 6 week promotion, Pizza Hut distributed 10 millionDVDs. Pizza Hut collaborated with Sony to launch a promotion campaignnamedPizza-Powered PlayStation giveaway which was huge success. During the nigh year, Pizza Hut again came up with a promotion where along with stuffed crust pizza, kids will get PlayStation demo disc free.Sweepstakes Pizza Hut during the launch of gaudy Bites Pizza introduced nationwide online sweepstakes contest to win an autographed pair of shoes by Jessica Simpson. Fans will be able to go online to www. pizzahut. com/cheesybites to enter the sweepstakes. Customers will also have an opportunity to win an autographed pair of Miss Piggy boots. Sampling Pizza Hut gave free samples of the new pizza which it launches. For e. g. in case of Cheesy Bites Pizza, Pizza Hut offered free slices of it to the customers for s ampling and testing it amongst the consumer group.Point of Purchase Material Pizza Hut restaurants interiors are make in a uniform format for all the restaurants. Pizza Hut also comes outwit several innovative POP materials to attract the attention of its customers. For e. g. spin The Wheel games, danglers and posters. During the launch the The Great Indian Treat the entire interiors were given a pink color and the menu and danglers were all colored pink. On the occasion of Valentines Day in Malaysia, Pizza Hut launched a limited edition Heart do Pizza with danglers, greetings cards all over.This limited edition Heart shaped pizza not only created an excitement among the customers, it also increased its brand value. C) Personal Selling Personal Selling refers to reflexion to face interaction with the customer. Entertaining the customers in the restaurant Crew members at Pizza Hut bust in to a boogie at metros like Delhi and Mumbai and performed Hangar in Chandigarh and Amritsar. Pizza Hut in Delhi organized a JIG N JEETO contest with super star Faradeen Khan judging the show. The show received tremendous response from the customers.Etiquettes of the bunch members The politeness of their speech and the mannerism which Pizza Hut crew members serve their customers is absolutely outstanding which enhances the brand value of Pizza hut in customers mind. Pizza Hut An Overview of the Global Strategy Pizza Hut before entering into any new country conducts a comprehensive market survey of that country to learn about the culture that prevails in that country, the state of government and politics, the legal framework (product quality laws, packaging laws) , commercial practices (business structure, patterns of competition).Strategy Adopted by Pizza Hut for Global marketing programs Localized strategy Pizza Hut follows the strategy of specify Global, Act Local. For e. g. in India, the 1stPizza Hut which was launched in Bangalore served complete vegetarian meals. Sim ilarly, in China, along with serving Pizzas, Pizza Hut also serves Sangria and Escargot. Similarly, in India, to match the spicy tastes of Indian consumers, Pizza Hut launched Pandora Treat, The Great Indian Treat. For the cheese lovers in United States, Pizza Hut launched Cheesy Bites Pizza and Stuffed Crust Pizza.International Marketing Coordination Pizza Huts international marketing activities though dispersed in different countries are properly coordinated to gain competitive advantage as all marketing activities as market research, advertisements, and restaurant interiors are done using a similar method. Marketing know-how and skills are transferred from one country to another. For e. g. the franchising model is used successfully in althea countries by Pizza Hut. (AssignmentPoint,2012) SWOT ANALYSIS OF PIZZA HUT The swot analysis provides all the important aspects of the product and the company in brief.Swot stands for S-strength W-weakness O-opportunities T-threats S-strength -best quality of fare -quality of services -varieties in toppings -different promotional schemes -consistency -strong brand name W-weaknesses -high price -advertisement shows pizza not salads, sandwiches etc O-opportunities -needs to open more outlets -offer diet food and low calorie food -explore untouched market T-threatscompetition (wikiwealth, 2012) RECOMMENDATIONS/SUGGESTIONS 1)High Quality Personnel In order to maintain the no.1 position in Pizza market, Pizza Hut must(prenominal) obtain total cooperation of its employees thereby increasing productivity, beating competition and enhancing customer satisfaction. For this, proper training program with high incentive schemes must be established. 2) Pay more attention to untapped segment of Senior Citizens Pizza Hut must innovate and launch some product for Senior Citizens. It could establish Pizza Hut senior social club which will organize activities for oldies. 3) Maintain the product quality by continuous innovations thereby giving surprises to the customer off and on.Innovations can be based on consumers reviews and feedbacks as to what changes are they looking for in their pizzas. 4) mend, location and location the most critical success factor for any hospitality business is Location. Pizza Hut does not aim to be premium brand with selective distribution sort of Pizza Hut is brand which must be available anywhere and everywhere people thinks of PIZZA. Thus Pizza Hut must increase it coverage. 5) Emphasis on development of Home Delivery meshwork Although in developing countries like India, Pizza Hut has opened up a call summation to fasten the speed of home delivery.CONCLUSIONS This project helped in following areas Critical analysis of marketing strategies adopted by pizza hut Knowing the product offered by pizza hut Identify the alternatives available in the market Analyze the target market Know about the existing competition in the market To understand the distribution system in the product Rea sons why people prefer pizza hut products Methods to increase sales with maximum customer satisfaction Role of advertisements in the promotion of the product To estimate its future growth and market share.REFERENCESPizza Hut and Dominos marketing strategy Scribd (2010). Pizza Hut and Dominos marketing strategy. online Retrieved from http//www. scribd. com/doc/25371457/Pizza-Hut-and-Dominos-marketing-strategy Accessed 24 Nov 2012. somewhat Us Pizza Hut Pizzahut. Co. Uk (2012). About Us Pizza Hut. online Retrieved from http//www. pizzahut. co. uk/restaurants/about-us. aspx Accessed 24 Nov 2012. Assignment Point marketing plan on pizza hut Assignment Point (2012).Assignment Point marketing plan on pizza hut. online Retrieved from http//www.assignmentpoint. com/business/marketing-business/marketing-plan-on-pizza-hut. hypertext mark-up language Accessed 24 Nov 2012. Pizza Hut Franchise Pizzahutfranchise. Co. Uk (n. d. ). Pizza Hut Franchise. online Retrieved from http//www. pizzahu tfranchise. co. uk/html/history. html Accessed 24 Nov 2012. Pizza Today Magazine Pizzatoday. Com (n. d. ). Pizza Today Magazine. online Retrieved from http//pizzatoday. com Accessed 24 Nov 2012.Pizza Hut SWOT Analysis WikiWealth Wikiwealth (2012). Pizza Hut SWOT Analysis WikiWealth.online Retrieved from http//www. wikiwealth. com/swot-analysispizza-hut Accessed 24 Nov 2012. About Us Papa Johns develop Ingredients. Better Pizza. Papajohns (2012). About Us Papa Johns Better Ingredients. Better Pizza.. online Retrieved from http//www. papajohns. com/about/index. shtm Accessed 24 Nov 2012.APPENDIX/ ANNEXURE Figure 1 precedent of pizza hut coupons printed in newspapers and magazines. Figure 2 specimen showing pizza huts space advertisement. Figure 3 specimen of poster ad Pizza Hut launched for Halloween.