Marketing Strategy by Pizza Hut Essay

Various tools and systems identical, subsidiary sources were adoptive to collect information to critic altogethery analyze the tradeing strategies adopted by pizza pie pie pie pie pie sea chantey, analyze the probable merchandise for the w be, study its competitors and stand in proceedsions, to estimate future sales and expected sh be of the market, analyze the effectivity of proclaimment, its tar choke market and finally why stack prefer pizza chantey. RESULTS AND DISCUSSIONS MARKETING STRATEGY pizza field chantey follows the following dodging entirety market dodge- pizza pie army hut started with a single product i. e.pizza but with unalike shares emerging and the degree of competition increasing, it diversified into or so(prenominal) products to serve diametric segments. It came up with chicken nuggets, wedges, garlic bread, smiley and so forth supranational trade scheme pizza shanty started with local market dodge in Kansas, USA and so moved on t o regional markets in and across USA. In 1968, pizza pie sea chantey started its transnational movement by equal to(p)ing its 1strestaurant in Canada. And today pizza shack is worlds largest pizza chain with its presence in more(prenominal) than 100 countries. earlier Entry schemeThough pizza chanty was not the prototypal entrants in the pizza market infuse. But pizza army hut followed an early(a) entrant strategy. Customers k current what a pizza is but still there was coarse potential to tap. In order to become a leader, pizza hut continued to refine their product &develop new-sprung(prenominal) product to jibe their nodes changing tastes. Ultimately pizza pie shanty with its super onward motion, manufacturing and distribution activities has turned out to be the winner. Strong allegiance Strategy pizza field hut has been operating in the pizza market by realizing all economies of scale in promotion, distribution and manufacturing facilities.If Papa backsides or Little Caesars come out with a new competitive pricing strategy or innovative product, then pizza pie shanty quite aggressively fights back by bringing more competitive scathes or better innovations in product category. In simple-minded words, pizza shack takes all possible measures to defend its leadership baffle in the market. pizza pie chantey An Overview of the Product Strategy Product Strategies attribute a market needs that may be served by diametric products passs. Product Positioning Strategy-pizza shanty has always followed Single dishonor military position strategy wherein it has positioned only its pizzas.Although the status statement has been different in different countries but it has always hovered around its PIZZAS. For instance, in Canada, its positioning statement is The scoop out taste pizzas under one roof which reflects great variety of pizza being served , in China it has positioned on Dine-in restaurants, in Australia, it is made fresh, ser ved vehement and on time which reflects that best of ingredients are apply and pizza is delivered on time.Product-Scope strategy Pizza sea chantey follows a multiple product strategy as pizza hut not only sells pizzas, but withal deals in a variety of other products as although all the product offerings in pizza hut are not as spry moving as its pizza, but they usually complement each other. For instance, family approach path for a dinner usually starts with some soup and garlic breads and then moves on to pizzas along 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 portion Product-Scope Strategy Salads & Pastas, Appetizers Pizzas, Soups and Desserts Product-Design StrategyPizza Hut follows the strategy of selling like Products with modifications. Pizza Hut mainly sells 4 types of pizzas Pan Pizza, hand-tossed pizz a, stuffed crust pizza and Thin N Crispy pizza.Pizza Hut serves these standard elbow room pizzas everywhere in the world but at the kindred time, it offers its customers to opt different toppings as special(a) 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 Value meal combos wherein it offers a conspiracy of pizzas, appetizers, beverages etc at lower expenses.For instance, Pizza hut introduced Meal for 2 which offers fair pan/ fresh pizza, garlic bread sticks with 2 glasses of Pepsi. besides pizza hut as well as offered Meals for 4 where it offered 2medium pan pizzas, with one denture 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 inn ovation strategy Pizza Hut has been constantly abstruse in innovating new products.It started as Pizza chain in 1958. On one hand, it offers handed-down Italian pizzas while on other hand, it innovated some(prenominal) new varieties as pan pizza, thin n crispy, stuffed crust, the big revolutionary 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 uniform time, customers feedback as well as plays an important role in preparing new pizzas. For example, The Big New Yorker Pizza. Pizza Hut continued to make innovations as it followed International trade strategy.In India, Pizza Hut launched global style pizza in localized Indian flavors like Tandori pizza range with Punjabi flavors, vegetarian tama-tam, Murgh Mazedar Pizza etc. Similarly, in China along with traditional pizzas, it served Sangria and Escargot. Along with pizzas, Pizza Hut also innovated beverag es and drinks to sate the tastes 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 market Strategy Pizza Hut as far as nurture marketing is concerned follows Quality strategy, Customer- serv scrap strategy.magazine-establish strategy Pizza Hut promises its customers to give them best quality product busing best quality ingredients. Time and over again it re-emphasizes on this fact through with(predicate) its advertisement foments. Pizza Hut main motive is to enhance its customers satisfaction by providing them best quality products at affordable prices. At the same time, pizza hut always tries to deliver on time. Although Pizza Huts competitor half masks differentiates on basis of timely words in 30 proceedings, however, Pizza Hut through its innovative engine room is also trying to fasten its delivery time to 30 minutes and fight back Dominos.Pizza Hut Overview of the Pricing Strategy Pizza Hut ideology of Customers hindquarters its pricing strategy instinctive to acquit for relevance Willing to pay for excitement Willing to pay for quality Willing to pay for simplifying life Willing to pay for transport movement But Selective and defiant Pizza Hut follows A High/Low Pricing strategy as far as its new products is concerned where it fixes the price laid-backer than its competitors and then gradually lowers the price below the competitors prices. In simple words, it is applying determine graze 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 freshet dew was offered free with The Extreme pizza. The high/low pricing strategy has several advantages for Pizza Hut Used to cre ate excitement. Set high prices initially to send a signal that its products are best inconsistency and service offered is excellent.Helps in segmenting the market as Pizza Hut derriere 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 complete pricing strategy focuses on Value which it is providing to the customers at a particular price. As far as the pricing of found products is concerned, Pizza hut believes to give Value for Money to its customers. Thus in order to provide maximum value to the customers and enhance the brand value, it sometimes produces the same prices while sometimes reduces the prices, while sometimes attach prices also.One-Price Strategize. It charges the same price to allot customers under similar 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 tim e follows Price Bundling Strategy or Value Pricingwherein it combines the items of its menu and offers at a lesser price then what a customer would flip 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 curl uped large number of customers who are not only interested in pizzas but in tasting other things as well. In offering such schemes, although Pizza Hut costs less but at the same time, this increases the customer inflow and sales r stock-stillue 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 yet Pizza hut customers dont mind payi ng a little more than its competitors because of the service it renders and quality it promises. Pizza Hut An Overview of right 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 conduct a given form of business under an established name and consort to a given pattern of business.Pizza Hut after its internalization in 1958 opened its first franchise unit in Topeka, Kansas. Followed by a Pizza Hut restaurant built in in effect(p) 5 days by franchisees in Oklahoma State Fairing 1968, Pizza Hut made a global entry by launching 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 submission in the international arena, Pizza Hut used the Franchising Route as the entry stra tegy. (Scribd, 2010).FINDINGS forwarding mix 1. publicizing 2. in-person selling 3. gross revenue promotion A) Advertising 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 supporting(a) potential leveragers or inducing repeat purchases or prompting quick purchase by offering special schemes or to create ken about a new product offering by spotlight 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 Great Indian dole out, Pizza Hut signed a Jived Jaffrey for its new TV commercial. Similarly to inform the customers about Rs. 50 pan pizza, Pizza hut pictureed Zayed Khan as a young teenager boy whizz 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 Aurora 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 focussed on occasions 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) earnings Advertising Not only Television advertisement, Pizza Hut along with Pizza innovations, also innovates new ways of promoting its products. Recently Pizza Hut signed a deal with Yahoo internet portal to advertise its products. Print Media (newspapers, magazines, pamphlets, posters) Although Pizza Hut advertise s mainly via television, but print ads also constitutes a major portion of its promotion mix. Outdoor Advertisements Pizza Hut adopted a variety of innovative types of outdoor advertisement.Balloon Advertising Pizza Hut indulged in an extremely innovative form of advertizement named Balloon Advertisements where in cold air balloons in the shape of Pepsi can, pizza slices and garlic bread are placed either in summit of the hut or placed at its roof top. Space market Pizza hut came up with a very innovative method of advertising when Pizza Hut paid huge sums (approx $1 million) to edit a 30 ft large logo on Russian Proton Rocket. Not only had the logo, Pizza Hut also made its pizza available 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 will make the trip even better. Banner Advertisement Styrofoam along with McCann Erickson came up with really innovative waft advertisements to advert ise its new range of Gourmet Pizzas. Poster Advertisement Pizza Hut came with a tremendously successful Poster advertisement campaign on the occasion of Halloween when Pizza Hut advertised for The Ghoulish Tripplecheese, the flighty cheese combo, and the Halloween cheese supreme B) Sales Promotion.Sales promotion refers to a variety of short term bonuss 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 parliamentary law 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 have to someone special 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 fillip for customers to make the purchase. For e. g. Unique DVD Promotion Pizza Hut came up withal promotion campaign where is offered a free DVD with a large size pizza and in a 6 calendar 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 next 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 Cheesy 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 neandertal boots. Sampling Pizza Hut gave free samples of the new pizza which it launches. For e. g. in case of Cheesy Bites Pizza, Pizz a Hut offered free slices of it to the customers for sampling and testing it amongst the consumer group. menstruation of Purchase Material Pizza Hut restaurants interiors are done 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 swear out 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 Shaped 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 face to face interaction with the customer. Entertaining the customers in the restaurant Crew members at Pizza Hut broke in to a boogie at metros like D elhi and Mumbai and performed airdock 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 crew members The politeness of their speech and the affectedness 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 get into into any new country conducts a comprehensive market valuate of that country to learn about the culture that prevails in that country, the state of political sympathies and politics, the legal framework (product quality laws, packaging laws) , commercial practices (business structure, patterns of competition).Strategy select by Pizza Hut for Global marketing programs Localized strategy Pizza Hut follows the strategy of Think Global, Act Local. For e. g. in India, the 1stP izza Hut which was launched in Bangalore served complete vegetarian meals. Similarly, in China, along with serving Pizzas, Pizza Hut also serves Sangria and Escargot. Similarly, in India, to match the raging 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 correctly 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) work up synopsis OF PIZZA HUT The swot analysis provides all the important aspects of the product and the compa ny in brief.Swot stands for S-strength W-weakness O-opportunities T-threats S-strength -best quality of food -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 full 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 obtain total cooperation of its employees thereby increasing productivity, shell 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 ordering which will organize activities for oldies. 3 ) Maintain the product quality by invariable 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) Location, situation and location the most critical success factor for any cordial reception business is Location. Pizza Hut does not aim to be premium brand with selective distribution instead 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 Network Although in developing countries like India, Pizza Hut has opened up a call warmness to fasten the speed of home delivery.CONCLUSIONS This project helped in following areas searing analysis of marketing strategies adopted by pizza hut well-read the product offered by pizza hut Identify the alternatives available in the market Analyze the target market Know about the animated compe tition in the market To understand the distribution system in the product Reasons 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. well-nigh 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 formulate 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 markup language Accessed 24 Nov 2012. Pizza Hut Franchise Pizzahutfranchis e. Co. Uk (n. d. ). Pizza Hut Franchise. online Retrieved from http//www. pizzahutfranchise. 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 Better 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 ideal 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.