EXECUTIVE SUMMAÒY Pizza hut is the laògest pizza Restaurant Company in the world. Ét has 12000 out|ets in 90 countries emPloying morg than 3 lakh"people. The legacy of pizza hut began in 1958. In India there are not much outlets, out of 10 86 countvies$Yndic is one of them but only in 9 cities pizza hut has its outlets. This report on pizza hut basically spins around how direct marketing is done jy pizza hut. To substantiate its efforts to strengthen its direct marketing. This report gives an overvigw of the pizza industry including its competitors that is dominos, pizza corner, and pizza express. Followed by the overview is the history of pizza hut as in how pizza hut started and where all it is present and what has been its progress till now. “Survival of the fittest” has always been the punch line for all the competitors, to follow this guideline it is important to have a plethora of information about the competitors strategy which has also been substantiated in the report. The strategies and the ways by which pizza hut goes about its direct maroeting is the cream of our project which includes strategies such as National pizza month, celebration online and many other promotional!schemes. The 4 P’s of marketing …i.e.……PRODUCT, PRICE, PLCCE, QROMOTION. To support the success of pizza*hut and to identify its strengths and weaknesóus SWOT analysis xas been done. Uo wind up the project the findings and results based on the questionnaire is analyzed and hence conclusions cnd suggestions are given.
PROFILE OF THE COMPANY Pizza hut is the largest pizza restaurant company in the world. It has 12000 outlets in 90 countries; employing more than 300000 people. Pizza Hut has an aggressive expansion plan for India. It intends to have more than 1oo outlets by the end of the year Pizza Hut has more than 12,500 units across 90 countries making it one of the largest pizza brands. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores which are all franchisee owned. Hence, the same arrangement will be followed in the future to ensure growthoriented results The data written below represent what Pizza hut is all about and gives a brief profile of the company. Their main quote: "Customer are the reason that we are here." No customers No Pizzas That’s the secret ingredient. The 5 secret principles: Employees are our secret ingredients. Show your "care". Say "yes" to customers Satisfied, capable teams create satisfied customers. Satisfied customers create profit and growth PIZZA HUT IS ALL ABOUT: Its all about you and all about customers i.e. customer creation and customer retention through customer satisfaction, its all about team spirit, team spirit in order to attain good results. TELEPHONE CALLS: The employee are not allowed to make or receive personal telephone calls at work unless in an emergency. The restaurant has limited telephone lines, by keeping the telephone occupied, we may be denying customer access to
us and he may call the competition instead. THEIR TAC\ICS: "Whenever anybody thinks ajouu pizza hut we want him or her to smile and say "yum". Their trióon passion: To put a yum or peoples faces around thm worlt……… They alsï(have a bell outside each store which is to be rung by customers if they had a great time. It is a sort of good encouragement, c ki~d of booster!for them. "WE SUKEED BECAÕSE WE#KOOW HOW TO WORK TOGEtHER” They specigy "How we`work together principles" CUSTOMER FOCUs:$ They(listen and sesp nd |o the voice of the gustomern BELIEF`IN PEOPLE: they0believe in people, trust in positive in|entions< encourage k|uas from everyone and actyvely develop á workforce that`is diverse in style and baç{ground. RECOGÎITION: They find reásons to celebratg the achievements of othurs and fun doing it. COACHIONG AND SUPPORT: They coach end support each other ACCOUNTABILItY: They do what they say they are accountable, txey ict like ownersn EXCELLENCE: They take pride in their work and have a passion for e| cellence. POSITIVE ENERGY> They execute with qositive energy and intensity. They hate bureaucracy and all the nonsense that comes with it. TEAM WORK: They practice team together and team apart. They call themselves:C=Cleanliness H=Hospitality A=Accuracy of orders M=Maintenance of facilities
P=Product quality S=Speed of service They answer questions like: "What influences a customer decision to a restaurant? Food appeal=31% Food experience=50% Food value=13% CER= CHAMPS EXCELLENCE REVIEW CEM=CUSTOMER EXPERIENCE MONITOR "HANDLING CUSTOMERS" Solve problem before ét actually becomes a complcint. Never argue with the customer Never blame any other crew member Treat the customer, as you want to be treated. Thank the customer. THEIR$PASSION By 2008 Pizza hõt aims to have 2 milnion smiles!a week Smiling Investors Smiling"Employees Smiling customer{
RESEARCH METHODOLOGY The research process is carried out according to a designated series of steps, which arm required to be taken in q chronological ordeò. Fundamental to the success of any research project is sound research design. It is the framework or plan for a study that guides the collection and analysis of data. The research design used for this project is exploratory in nature. The major emphasis is on the discovery of ideas. The exploratory study is also used to increase the analyst familiarity with the problem under investigation. Sample Design Target population Those who have regularly visited in the fast-food.
Sampling unit Delhi market is treated as sampling unit. Sample size: 100.
Data Collection Primary Data Primary data has been collected through surveyed to the consumer. Secondary Data Secondary data has been collected from the company’s information brochure and internet.
OBJECTIVES OF STUDY To study how direct marketing is done by PIZZA HUT, to substantiate its effort to strengthen its direct marketing. To study about PIZZA HUT as a brand in India. To know about the long and successful history of PIZZA HUT. To study the working and functioning of PIZZA HUT in India and the world. To study the taste and preferences of customers of PIZZA HUT. To give recommendations and suggestions thereof.
SCOPE OF STUDY The subject matter has been arranged in a Systematic manner, providing all the details and Explanations needed. Every effort has been taken by to make the Project report complete in itself. This report has been prepared after an in - depth Study of the company’s main areas. This report has been divided into sections and sub sections for a better understanding.
TYPE OF DATA COLLECTED DATA COLLECTION 1) PRIMARY SOURCE – RETAILERS CONSUMERS DISTRIBUTORS
2) SECONDARY SOURCE – WEBSITES MAGAZINES AND NEWSPAPERS
RESEARCH
TACTICS
QUESTIONNAIRE PERSONAL DISCUSSION AND INTERVIEW
STATISTICAL AND PRESENTATIONS TOOLS USED PIE DIAGRAM BAR GRAPH
OVERVIEW OF THE PIZZA INDUSTRY IN INDIA INTRODUCTION In India nowadays so many fast food joints are opened and people are turning more towards the pizzas and they try to go to the best pizza parlor opened in their area of living. There are many different companies, which have come up the major players in this category are: PIZZA HUT DOMINO’S PIZZA PIZZA CORNER PIZZA HUT
Tricon global; restaurants which owns the Pizza hut Franchisee has become very very popular in India in the Indian Pizza Market. The first Pizza Restaurant was opened in 1958 in Wichita, Kansas under the name Pizza hut and features a variety of pizzas with different toppings as well as pasta, salads, sandwiches and other food chains. For the last ten years Pizza hut was named as the world’s best pizza chain in America and in India also it has captures most of the market share. Pizza hut is the largest pizza restaurant company in the world. It has 12,000 outlets in the 90 countries, employing more than 300,000 people. Pizza Hut has an aggressive expansion plan for India. Pizza Hut will consolidate its presence in cities where it already exists as an endeavor to create a major share of these profitable markets first before spreading to other markets. Pizza Hut has more than 12000 units across 90 countries
making it one of the largest pizza brands. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores, which are all franchisee, owned. Hence, the same arrangement will be followed in the future to ensure growth-oriented results. Pizza huts have 19 stores across 10 cities including Mumbai, Delhi, Bangalore, Chennai, Ahmadabad, Hyderabad, Pune, Chandigarh, Agra and Jaipur. By the end of this year we will scale it up to 35 stores. In Mumbai alone we plan to have five stores by the end of the year they want to become the most preferred pizza brand by offering great tasting pizzas for all the usage occasions at our place (table service) as well as yours (home service)
DOMINO’S PIZZA This company started in the year 1960, Tom Monaghan and Brother James purchased "Dominick’s" a pizza store in Ypsilanti, Michigan. Monaghan borrowed $500 to buy the store. Then in the year 1961 James traded half of his business to Tom for a Volkswagen Beetle. Then in the year 1965 Tom Monaghan became the sole owner of company, and renamed the business "Domino's Pizza, Inc." In the year 1967 the first Domino's Pizza franchise store opened in Ypsilanti, Michigan. The 200th Domino's store opened in the year 1978, then in the year 1980 Domino's first international store opened in Winnipeg Canada. The 1,000th Domino's store opened. In 2000 Domino's Pizza International opened its 2000th store outside the United States. There are many outlets opened in India also and it is specializing in the home delivery they have less of sitting arrangement and more of home delivery. In December 1998, investors, including funds managed by Bain Capital Inc, a leading private equity investment firm, together
with management and others, acquired a 93% stake in the Company, which was formerly owned by founder, Domino's is the largest privately-held restaurant chain, and the eighth largest of all restaurant chains in the world. Domino's Pizza offers Crunchy Thin Crust, Ultimate Deep Dish and Classic Hand tossed pizzas with a number of regional toppings. Side items include Domino's Bread Sticks, Double Cheesy Bread, CinnaStix and Buffalo wings. Beverages consist of icy cold Coca-Cola products Domino's Pizza operates a network of 6,977 owned and franchised stores in the United States and 64 international markets. Over 120,000 associates are employed by Domino's around the globe. 15,000 of those are corporate employees, of which 550 work at the worldwide headquarters in Ann Arbor, Michigan. Domino's Pizza, founded in 1960, is the recognized world leader in pizza delivery. Domino's Pizza operates a network of company-owned and franchise-owned stores in the United States and international markets. But Domino's isn't just about delivering; it's also about giving back to the community. Domino's Pizza believes that an essential component of its corporate responsibility is to provide support to charitable organizations that benefit the communities where our employees and customers work and live . Headquartered in Ann Arbor, Michigan, Domino's is committed to supporting initiatives and causes in its hometown while also participating in national programs that align with our vision, guiding principles and strategic focus.
HISTORY OF PIZZA HUT Pizza hut’s story began with a small restaurant and two young brothers- Dan and Frank Carney. In the year 1958 they were struck by inspiration and opened the first Pizza hut in Wichita, Kansas, USA. When they were setting up, they only had room for 25 seatsand the restaurant sign only had space for nine letters. They wanted “pizza” in the name, which left space for just 3 more letters. Because the building looked like hut----- Pizza hut started. Now Pizza hut is the largest pizza Restaurant Company in the world. It has 12,000 outlets in the 90 countries, employing more than 300,000 people. The first pizza hut restaurant was opened in 1958 in Wichita, Kansas and within a year the first franchise unit was open. By 1977 when Pizza hut was acquired by Pepsi co its US restaurant system had grown to nearly 3200 units today Pizza hut is the largest restaurant chain in the world. Specializing in the sale of ready to eat Pizza products as of year-end 1996 concept had grown to more than 12300 units. For ten of the last 12 years, Pizza hut was named best pizza hut chain in America in the “Choice in chains” national consumer survey published annually by restaurants & Institutions magazine. Also, the January 1997 Consumer reports named Pizza hut as the best Pizza chain in America and now it has opened. With every occasion Pizza hut adapts its ambience and decoration with a different concept, like wise in India on the Independence day they decorate their outlets with all national colors and logos etc, and on the valentines day for example they take out their pizza in
heart shape to attract more of young customers which get more attracted towards these things. 1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an undisclosed sum. Super Supreme is introduced nationwide. Pizza Hut opens its 3,000th unit in Arlington, Texas. 1979: The Sicilian Pan Pizza is introduced. Units open in Kuwait and Abu Dhabi. Pizza Hut raises $342,000 for Easter Seals from national promotion. 1980: Pan Pizza is introduced throughout the system. Restaurant number 4,000 opens. 1982: The Pizza Hut ET glass promotion is picked as the top marketing promotion of 1982 by the editorial staff of Chain Marketing and Management. Pizza Hut serves one and a half million pounds of pasta annually. 1983: Personal Pan Pizza®, with a five-minute guarantee, is introduced throughout the system. Pizza Hut celebrates 25th anniversary. Pizza Hut employs 10,000 teenagers from 16 to 19 years old. 1984: BOOK IT! ® National reading incentive program is launched with 200,000 elementary students enrolled. There are more pizza locations than hamburger restaurants in the United States. Pizzerias account for 9.9% of all restaurants in the U.S. 1985: Priazzo® and Calizza® are introduced. 1986: The system celebrates the opening of its 5,000th restaurant, located in Dallas, Texas. Delivery service, as a new concept, is initiated. Fastest construction of a Pizza Hut restaurant takes place in Wichita, KS --- 39 days from start to finish.
The national average is 85 days. 1988: Hand-Tossed Traditional Pizza is introduced throughout the system. Pizza Hut celebrates its 30th anniversary with a total of more than 6,000 restaurants and delivery units worldwide. President Ronald Reagan awards Private Initiative Citation to Pizza Hut President Art Gunther for the creation of BOOK IT! ® Program. 1989: The Pizza Hut Jobs Plus® program expands nationwide to employ more than 10,000 individuals with physical and developmental disabilities. The Jobs Plus program is recognized as the largest corporate initiative of its kind in the food service industry. Pizza Hut opens its 1,000th international unit in Well and, Ontario, Canada. Pizza Hut now serves 54 countries. Pizza Hut sells 9.1 million "Land before Time" puppets. When released to the public, the movie enjoyed the largest opening ever for an animated feature. For the first time in history, Pizza Hut pizza is delivered to the White House. First Lady Barbara Bush throws a party for 200 Washington, D.C. children during a "Reading is Fundamental" reception. 1990: Pizza Hut system sales reach $4 billion. Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday, about 7,000 pies a minute. Kamran Atri, assistant manager in Lees berg, VA serves his way into the Guinness Book of World Records by waiting tables at the Lees berg, VA Pizza Hut restaurant for 136 hours, donating $1,200 in tips to the Loudoun County Shelter for Abused Women & Children. More than 4,000 Jobs Plus employees work for Pizza Hut. Personal Pan Pizza® becomes available at 1,000 Stop 'N Go convenience stores. 1992: Lunch buffet introduced in 1,800 units. Pizza Hut sets up two mobile hot trailers in Florida City and Gould’s, FL after Hurricane Andrew wreaks havoc. Pizza Hut
provides 120,000 free meals to relief volunteers and those who lost their homes. Pizza boxes redesigned to save 275,000 trees a year. 1993: Pizza Hut introduces BIGFOOT™ Pizza -- two square feet of pizza cut into 21 slices. The Harvest Program is launched nationwide to donate surplus food to food rescue agencies. Pizza Hut makes its fastest and farthest delivery: 600 large pepperoni pizzas on a 24-hour flight from Dover Air Force Base to U.S. service personnel in Mogadishu, Somalia. Pizza Hut leads the entire restaurant industry in growth and sets new company records for sales and profits. Pizza Hut introduces Chunky Style Pizza in September. Pizza Hut signs contract with 30 hotel companies throughout the country to provide delivery service to their registered guests. 1994: Pizza Hut becomes the single largest retailer of basketballs in the United States, selling 3.7 million balls during its NCAA® Final Four® promotion. Pizza Hut opens 9,700 square foot Super Pizza Hut® restaurant and entertainment center in Mexico City. Pizza Hut in Beirut reopens after being closed during the Gulf War. Soccer legend Pele kicks a ball through the door of Pizza Hut® restaurant number 10,000 in Sao Paulo, Brazil on April 13. 1995: Pizza Hut launches the "You'll Love the Stuff we’re Made Of"® campaign. Two Customer Satisfaction programs initiated: a 1-800 Customer Satisfaction Hotline and a Customer CallBack Program, which takes the pulse of 50,000 customers per week. Pizza Hut launches Pizzeria Stuffed Crust Pizza, which immediately sets company sales records. Pizza Hut wins the 1995 "Choice of Chains" award for
Best Pizza Chain sponsored annually by Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last eleven years. 1997: Pizza Hut launches a meatier pepperoni. PepsiCo announces restaurant spin-off. Pizza Hut launches "Totally New Pizzas" a quality initiative putting sliced, fresh vegetables and meaty meats on pizzas. 1998: Pizza Hut celebrates 40 years of making and serving great pizza. Pizza Hut launches "The Sicilian Pizza" a flavorful crust with garlic, basil and oregano baked right into the crust. Pizza Hut launches "The Best Pizzas Under One Roof™" campaign. 1999: Pizza hut launches The Big New Yorker Pizza. A 16 inch pizza with a sweeter, savory sauce, 100% real cheese cut into 8 big foldable slices. 2000: In July 2000, Pizza Hut became the first company in history to place its logo on the world’s largest proton rocket.
2001: Pizza Hut introduced Twisted Crust™ pizza - Twisted Crust pizza boasted a revolutionary breadstick crust that surrounded a hot, delicious Pizza Hut Pizza. Pizza Hut became the first company in history to deliver pizza to the pioneers living in outer space on the International Space Station (ISS). The creation and delivery of the world’s first space-consumable pizza was the culmination of nearly a year of collaboration between Pizza Hut and Russian food scientists. 2002: Tricon Global becomes YUM! Brands. 2003: 5oo restaurants are how open throughout the UK, employing
over 20,000 people. 2004: Pizza Hut launches The Big New Yorker. 2005: The 4 for ALL is launched. Over 600 restaurants now open in the UK 70 of them are Franchise units. 2006: White bread sells their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd is now 100% owned by Yum! Cheesy Bites is launched! 697 Restaurants now in the UK! 154 stores are franchise owned by 61 franchisees.
PRODUCT PROFILE
An advertisement for Pizza Hut's Pan Pizza The most commonly sold food at the restaurants is the "Pan Pizza”, which usually comes in four different sizes including Personal Pan (which is an individual serving), Small, Medium, and Large, although some stores have done away with the small size. They come in a variety of toppings, including “specialty" styles. Pan Pizza has a thicker crust than most other commercially available pizzas. Unlike most of Pizza Hut's competitors (such as Domino's deep dish or Papa John's Perfect Pan), Pizza Hut does not charge extra For toppings.. In addition to the Pan Pizza, Pizza Hut also sells "Stuffed Crust (with the outermost edge wrapped around a coil of mozzarella cheese); "Hand-Tossed" (which is more like traditional pizzeria crusts); "Thin 'N Crispy “ (a thin and crispy dough which was the original crust); "Bigfoot", which is a two – foot by one - foot square cut pizza; and the Dippin' Strips pizza, which is similar to a Sicilian pizza but is cut into small strips that can be into a number of sauces. Another is the "Edge" Pizza. Where the pizza is baked with no puffy crust, and the toppings reach nearly to the edge of the pie. Pizza Hut has experimented with new products frequently. Less successful ones have been discontinued. These include Chicago Dish Pizza and Sicilian pizza; the Sicilian Pizza made a 2006 comeback as the Lasagnas Pizza. Other products Pizza Hut has are the "P'zone", Pizza Hut's version of the calzone; the "Cheesy Bites", similar to the "Stuffed Crust" Pizza Hut also has a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, hot and mild chicken wings, boneless wings, chicken munchers, jalapeño poppers, and garlic bread. Depending on the size, Pizza Huts also may offer pasta dinners such as Spaghetti and Cavatina - a mixture of Cavatelli (shells), Rotini and Rotelle (wheels). They often come with a side of garlic bread. Some Pizza Huts also serve lunch and dinner buffets with numerous types of pizza, breadsticks and pastas, as well as a bar. A new, upscale concept was unveiled in 2005, called “Pizza Hut Italian Bistro”.
MARKET SHARE AND SALES FIGURE OF
PIZZA HUT AND COMPETITORS MARKET SHARE The division of YUM! Brands operates the world's #1 pizza chain with more Than 12,600 outlets in more than 90 countries worldwide. Part of the largest restaurant chain in the world Over 20,000 franchises around the world Brand leader in the UK Innovative range of pizzas under one roof
Yum! on expansion drive Nine years after opening its first outlet in India, Yum! Restaurants is planning add 36 outlets this year to the 98 Pizza Huts and six Kentucky Fried Chicken KFC) restaurants already operational across India. With this expansion drive (, Pizza Hut outlets will spread across 33 cities; while KFC will open in Kolkata and Hyderabad after having opened in Pune recently. Yum! Is also planning to expand into markets like Sri Lanka, Mauritius and Bangladesh. At present the restaurant chain has 20 outlets in Sri Lanka, 15 in Mauritius and has opened the first one in Bangladesh.
SALES FIGURE
Key numbers for fiscal year ending December, 2007: Sales: $26.0M
Pizza Hut is the largest pizza purveyor in the world, with 12,583 total restaurants and combination delivery/takeout units in 90 countries; 6,590 units are company-owned. Pizza Hut in sales in 1996 generated approximately £4.7 billion. (Chain STORE GUIDE) Domino's Pizza is the world leader in delivery, with 5,500 stores in 46 international markets .Domino's reached £2.8 billion in sales in 1996 Papa John's is considered the fastest growing franchise in the USA, with 1,160 units generating £383 million in sales in 1996. Store Guide.) Of 31,386 pizza franchise units in the United States, roughly 83 percent (24,381 stores) offer delivery, 91% offer takeout, and 51% offer dine-in service. Each year, thousands of people involved in the pizza industry attend Pizza Expo, the world's largest pizza-only trade show. Pizza Expo is held each year in Las Vegas, Nevada.
MARKETING STRATEGIES- 4 P’S Marketing is indeed an ancient art. It has been practiced in one form or the other since the days of Adam and Eve. Its convergence as a management discipline, however, is of relatively recent origin. And within this relatively short period, it has gained a great deal of importance and stature. In fact, today most management thinkers and practitioners of the world, regard marketing as the most important of all management functions in each and every business. The marketing strategies adopted by the pizza hut as been highly competitive and has enable the company to keep a firm grip on the battle ground and fight competition and retain its market share and profits thereafter. In the following paragraphs I shall discuss the marketing strategies adopted by the company at various levels. My findings are dispersed into 4 P’s of marketing mix, i.e.
PRODUCT, PRICE, PLACE AND PROMOTION. PRODUCT STRATEGY Pizza hut is a powerful and strong brand that is popular for making pizzas and appetizers which has been of high standards and is approved by various authorities. The research and development department of the company constantly rolls out new and sturdy versions of product. It has proved as a backbone to the companies’ strong existence in the market. With the growing global competition, the keyword for industry lies within CUSTOMER SATISFACTION. A revolutionary twisted crust pizza: - the year 2002 saw pizza hut introduce a new twisted crust pizza ‘palat ke khao’ the catch line says implying that the pizza crust is filled with cheese and tempts the customer to eat its
background s. this is a revolutionary concept and is expected to go a long way in increasing the popularity of Pizza hut. Special Pizzas for other occasions. Pizza hut also offers special pizzas for occasions such as Diwali, Independence Day, Republic Day, Rakshabandhan etc. During Diwali time they offer a special “Pan-Pizza” and on Valentine’s Day they provide “Heart shaped pizza”. Special prizes & gifts are given to customers on “Christmas” Navratri special Pizzas The special veg. pizzas offered by Pizza hut during the Navratri week has gained a lot of popularity .There is great demand for the family size pizza 7 special sauces which are made without garlic & onion during the Navrats In addition to this there are various delicious verities of pizzas and fast food offered by PIZZA HUT.
Featured items Now stuffed with even more delicious, melted cheese in the crust, making your last bite as good as the first! Double Deep Pizzas are hand-crafted by loading the entire pizza with twice the toppings of a medium pizza,. Choose from three great recipes: Supreme Deep, Meaty Deep, and Veggie Deep.
SPECIALITIES Your choice of two fresh toppings smothered in mounds of cheese. Has six kinds of meat: pepperoni, Italian sausage, ham, bacon, beef and pork toppings. Loaded with two layers of pepperoni and two layers of cheese. Fresh mushrooms, red onions, green peppers, tomatoes and black olives make this a veggie-fan's favorite. Our signature blends of pepperoni, beef and pork toppings, green
peppers, red onions, and mushrooms.
SIGNATURE CRUSTS Our pizzeria-style pizza is now made with a light flavorful new crust and more of our zesty Italian sauce in every bite. America's favorite thick-crust pizza -- crispy on the outside, soft and chewy on the inside. America's favorite thick-crust pizza -- in a smaller, single-serving size. Now stuffed with even more delicious, melted cheese in the crust, making your last bite as good as the first! Just enough crispy crust to get a mouthful of toppings in every bite. A not-too-thick, not-too-thin crust -- 16 inches of golden brown perfection.
PROMOTIONAL SCHEMES OF PIZZAHUT PROMOTION PIZZA HUT USES SEVERAL TYPES OF TECHNIQUES FOR ADVERTISING THEIR PRODUCT Pizzas- Just a phone call away: An important promotional strategy of Pizza Hut is free home delivery of Pizzas. Pizza hut promises to deliver pizzas in 30 min or offers free pizzas if order doesn’t reach on time
DIRECT MARKETING OF PIZZA HUT Direct marketing of Pizza hut is basically done after collecting the Database, when they have the database then
they do the following things which are as follows: When a database is collected pizza hut does an analysis to know how often people in their database call them. Those customers who are enrolled in the executive category that is who calling the maximum number of times in a month are given preference over the others as far as their incentives and schemes are concerned. Pizza hut takes a very special care for their regular and frequent customers by personally giving them a telephone call to tell them about their new offers. The customer’s names, which have been listed in the database and have not ordered for a long time, are contacted personally to check on the satisfaction level of the customers. Pizza hut tries to establish an individual relationship with each of its customers. Pizza hut publicizes its new offerings by putting leaflets in the newspaper so that they can reach to their target audience. On special occasions like diwali they offer schemes like free personal pan pizza with an order of a medium pan pizza. On valentine a special heart shaped pizza is offered. Whenever a customers call up pizza hut the employees first ask if they have ever ordered the pizza before if not then they ask for customer information like name, age, address etc Pizza hut manages it database very well. They keep verifying their data against the original source by spotting mistakes and correcting them Every Christmas their database cranks out a list of their best customers for personally signed cards
DELIVERY The company lays great emphasis of timely delivery of the products.. Progress is reviewed very frequently. Top management takes active interest in executing orders in time. The research also revealed data that 37% of the people of Ahmadabad prefer Jain meals (Jain food is not only vegetarian but devoid of roots and bulbs like onions, garlic, ginger, potatoes.) Therefore keeping this in mind, the
restaurant will offer a choice of six Jain pizzas, Jain French bread, baked fresh with special herbs and a pre-mixed peanut celery pineapple salad. Pizza Hut has taken care to make special sauces which do not contain any garlic or onion.
SWOT ANALYSIS STRENGTHS It promises to deliver the pizzas in 30 minutes or offers free pizzas if order doesn’t reach on time, where as its competitors promise to deliver the pizzas in 39 minutes. The way in which they do up their ambience, the atmosphere, the sitting area, the way in which They greet the customers and the way they sing and make everyone have fun on occasions. A contemporary design split level seating, high ceiling and aesthetic pizza hut murals. Pizza hut was the first to start online pizza delivery in San Francisco, which still hasn’t been started by any of its competitors. Variety is the main strength they possess. They offer pastas, spaghetti, garlic bread etc. They are known to modify their menu and ambience according to occasions. e.g., they offer heart shaped pizzas on Valentines Day.
Pizza hut promotion schemes: DALLAS- national pizza month, which was first time, celebrated by pizza hut. Their mission statement is UNBEATABLE PIZZAS AT UNBELIEVABLE PRICES. When you call and order, they focus on cross selling and up selling i.e.: suggesting new pasta dish to pizza lovers. They build a training system that tracks user data and transfers it via the Internet to document user skill set and needs analysis for any employee that might need improvement. They offer 40% more ingredients per pizza than competitor. They have managed a perfect indianization of Italian dishes like chicken tikka etc.
WEAKNESSES: Its focus on the delivery concept is not much as compared to its competitor. Their variety as far as pastas and spaghetti are concerned are not much as compared to pizza express and pizza corner. The prices at pizza hut are comparatively more expensive than dominos. The pizza hut ad “aaa she doesn’t like pizzas” has down rated their salads just to prove their pizzas superior and they have shown that their salads are not good, “this is a major weakness in their Advertisement. One of the weaknesses of pizza hut is lack of efficient cold chains in the country. The company surmounted this problem, by reducing the dependency on cold chains besides setting up its own infrastructure.
OPPO RTUNITIES :
The first ad campaign on TV defines pizza hut as a brand and what it offers to its existing and potential customers. In future, focus will be on other facets of the brand and offerings. It could start on line delivery in India and other countries like it has started in the U.S. It could open more outlets in shopping malls, airports, railway stations etc. Mumbai is an important center, which has still not been tapped by pizza hut. This city has a potential for 30 outlets.
To open an outlet in those areas where the competitors have opened, like dominos in Agra etc.
THREATS: Amul has come up with a 30 rupees pizza, which is a big threat to pizza hut at least in the short run if not in the long run. Variety in pizza express and pizza corner as far as pastas, spaghettis etc. are concerned is much much more, and this has been checked by us by looking at their menu cards. Dominos offers “CHEESE WALA HUNGER” a regular hand toast pizza for rupees 39. As mentioned earlier also they have downgraded their salads which itself becomes a threat to their salads available. Pizza corner has a backing of icici venture. It has hired world-class consultants to scrutinize its pizzas. They have an equity base of which icici holds 33%
FINDINGS AND ANALYSIS CONSUMER PREFERNCE ON FAST FOODS
People prefer pizzas to burgers, hotdog, sandwich or any other fast food. Market for pizzas is growing, so there would be tougher competition. Great opportunity for pizza hut to capture the growing market.
BRAND AWARENESS
Pizza hut is a very well known brand. Domino’s is a good competitor. Pizza hut has to take care of other growing brands too. It has to maintain that recognition.
CUSTOMER PREFERNCE ON BRANDS
Pizza hut and domino’s both are equally prefered. Pizza hut has to work harder to achieve the 1 position and maintain that because it has got tough competition from domino’s and some other upcoming brands.
ARE PIZZAS CONSIDERED HEALTHY?
Pizza’s aren’t considered healthy by majority people. Pizza hut should consider making food varieties that are more healthy from the nutrition point of view
BEST AMBIENCE AND HOSPITALITY
As far as the ambience and hospitality is concerned, pizza hut and domino’s both take the lead. Only 20% of the people prefer pizza corner.
BEST ON- TIME DELIVERY
Domino’s has a better stand where on time delivery is concerned. Pizza hut should work hard on its delivery.
BETTER VARITIES AND RANGE
People prefer pizza Hut when it comes to offering more varieties and ranges (both veg and non veg). Pizza hut should continue experimenting with its varieties.
BEST ATTIRE
Pizza Hut should try and design some trendy, funkier clothes as dress code. Many youngsters do notice this and relate to this.
LIMITATIONS In case of primary source, sometimes it was difficult to contact or meet the professionals due to their busy work schedules. The company officials were reluctant to give exact pricing policies adopted by them. They were hesitant about giving details about their marketing strategies and money invested in advertisements. Personally contacting the employees was difficult, it involved time. Online searching for information’s or magazines also wasn’t very satisfactory. Environment is very dynamic; the information collected from secondary sources, though valuable wasn’t extremely useful as the market undergoes constant changes.
CONCLUSIONS AND SUGGESTIONS WE CAN CONCLUDE:Market for pizza is growing tremendously. Though pizza hut owns a good share but it faces extremely tough competition from domino’s.
SUGGESTIONS :-
Pizza hut should improve on developing products for all age groups instead of concentrating on only young crowd. Pizza hut should also concentrate on areas like appetizers. Domino’s leads in this segment. They should improve on its delivery and promotional tactics.
Domino’s is doing well in this area too. They should use better known celebrities as brand ambassadors, who can relate well with the middle class.
BIBLIOGRAPHY BOOKS REFERRED:Marketing Management – Philip Kotler Marketing Management - C.B. Gupta MAGAZINES REFERRED:Business Today Outlook Business World INTERNET SITES:www.google.com www.answers.com www.hovers.com www.knowledgestorm.com www.pizzhut.com
ANNEXURE QUESTIONNAIRE FOR CONSUMERS Name: - ……………………… Sex :- ……….Male ……………Female Age:-……………………. Occupation:-………………….. Income group :……..10000-15000 ……..20000-25000 Q1. Which one of them do you prefer?
……15000-20000 …….above 25000
Pizza c) sandwich Burger d) any other Q2. Which of these brands are known to you? Pizza Hut c) Pizza corner Domino’s d) papa John’s Q3. Which one of them do you prefer the most? Pizza Hut c) Pizza corner Domino’s d) papa John’s Q4. Do you consider pizza’s as a healthy food product? Yes c) Can’t Say No Q5. Whose ambience, hospitality do you find the most comforting and attractive? Pizza Hut c) Any other Domino’s Q6. Who has the fastest delivery on time? Pizza Hut c) Any other Domino’s Q7. Which one of them has better and attractive offers? Domino’s
c) Pizza corner Pizza Hut Q8. Which one has a better variety, offers a better range of products (both veg and non veg)? Papa John’s c) Domino’s Pizza Hut Q9. Which is ore affordable and offers value for price? Domino’s c) Pizza Hut Pizza corner Q10. Whose attire does you like the most? Domino’s c) papa John’s Pizza hut Only for pizza hut consumers:Q11. Do you have to wait for long after you place your order at pizza hut? yes, every time c) sometimes no, never Q12. Do you find the veg or non veg pizzas better? Veg c) both non veg Q13. How do you find the décor of pizza hut? Beautiful c) Poor average Q14. Have you ever attended any party organized by pizza hut? Yes
no Q15. If yes, how did you find it? Excellent c) boring Average Q16. What would you rate pizza hut out of 10? below 5 c) above 8 between 5 and 8
