2012
Marketing plan of pizza hut Unit standard 2932
Submitted to: Philip Roy
Submitted by: Baljeet Singh Student id: 4547
NIS DIPLOMA IN BUSINESS LEVEL 7 SEMESTER ONE 2011 - 2012 UNIT STANDARD - 2932 Manage Marketing Operations
Marketing Operations Assessment Version 4 Credit 10
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Table of content Content page-no Introduction............................................................ 3 Marketing objectives.............................................. 3 Resources Human resources.................................................... 4 Financial resources................................................. 4-5 Budget..................................................................... 5 Personal policies...................................................... 6 Sales force organization........................................... 6 Personal selling........................................................ 7 Sales promotion....................................................... 8 Marketing mix.......................................................... 8-9 Market trends.......................................................... 10 Distribution strategy................................................ 10 Internal stakeholders............................................... 10 External stakeholders.............................................. 11 Conclusion................................................................ 11 Bibliography............................................................. 11
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Introduction Pizza hut is the world’s largest pizza chain with over 12000 pizza restaurants and delivery
outlets worldwide has the vision of becoming the best branded restaurant with the best delivery and franchise network thereby providing the best food and best value to the families. Pizza hut as a company has always tried to target and satisfy various diverse customer categories in different countries depending upon various factors and situations. Pizza hut in order to fulfil its marketing objectives of maximizing customer satisfaction by proving high quality products, has believed in the following marketing strategy:
“Think Global, Act Local” Pizza hut has tried to target each and every diverse population segment either on the basis of age (kids, teenage, office goers, senior citizen) or special interest groups (celebrations, parties, festivals). As a part of the marketing strategy, pizza hut follows total market strategy along with international market strategy coupled with early entry strategy.
Coordinate marketing operations Marketing objectives
1. To maintain the number one market position. 2. To increase the percentage of pizza sales by increasing the number of franchisee delivery units with carryout facilities 3. Increase annual sales revenue from $2.0 billion in 2009 by 15% ($300 million)to 2.3 billion in 2010-11. 4. Increase market share from 13.4% to 14.0%. 5. Our goal is to reach 85% recognition of the new product in our target market. 6. As with all businesses, the most goal of a company is to increase revenue and profits. 7. Customer satisfaction is for most. What we preach: integrity, ethics and open communication. .
RESOURCES: HUMAN RESOURCES 4
The Human Resources Department is split into several functions, which aim to Support the overall business with a real ‘Passion for People’. These functions Include the following: -
The Training & Development Team: This team aims to support and develop team members to their fullest potential, using various programmes such as the Expert training programme, as well as the Developing Champions training programme for all levels of restaurant management .In addition we invest heavily in the further development of our management population through core and fast track management development programmes and specific technical training.
The Recruitment Team: The Recruitment Team is split into two separate teams, one recruiting for management positions within the restaurants and the other recruiting for positions within the Restaurant Support Centre. Both teams work to recruit the right people into the right positions .
The Compensation & Benefits Team: This team aims to provide all Pizza Hut employees with a comprehensive and competitive benefits package, including; fair pay, bonus, health care and pension. The team also works to produce HR policies and procedures, which are in line with UK legislation and manages the employment tribunal process, as well as managing HR information.
The HR Operations Team: This is dedicated generalist HR support for the Managers and Team Members working in the restaurants. This team is separated by regions, and aims to support our employees through manpower planning, district compensation and benefits, employee relations, welfare advice and the further development of Customer Mania.
The Organisational Development and Communications Team: This team focuses on business communication, organisational development and change. It also aims to support and develop team members to their fullest potential within our Restaurant Support Centre .
Financial information In support of our business goals, the Pizza Hut Finance function is split into three teams: Control, Planning and SCM. The overall role of Financial Control is to ensure that our financial statements are accurate and reflect a true and fair view of our business performance. It ensures that all transactions entered into by Pizza Hut are appropriately recorded. It also has the responsibility to ensure that our assets are pr otected, through appropriate controls and processes . Within Financial Control, we have teams that are responsible for the following: _ Preparing and reporting accurate data to senior management, Yum and Statutory Bodies _ supporting the expansion programmes of the Franchising and Business Development teams. _ Analysing variances from Plan and Forecasts to facilitate and influence decision-making. _ paying over 18,500 employees on a weekly basis and 15,000 employees every four weeks, ensuring the related tax and statutory responsibilities are discharged. _ Paying suppliers, who supply food, drink and the services that we need to run our restaurants. _ Treasury and Tax management. _ Insurance and Estates management. 5
_ Loss Prevention We also have specialised tax expertise to ensure that our Corporation, VAT, PAYE, NI and all relevant tax liabilities to the government is calculated properly. Planning’s role is to ensure that our underlying business performance is analysed and understood, that our business and units have suitably stretching performance targets and that our continual drive to improve our business return is well on track. Structurally, Planning is split into three teams: 1. Business planning, who manage the total business and individual unit budgeting process, as well as providing commercial analytical support for our operations. 2. Sales & Marketing Planning, who ensure that Marketing initiatives are rigorously evaluated and aligned with our strategic and financial goals. 3. Capital Planning, where our focus on returns is displayed through control of investment processes. SCM is responsible for procurement for food and non-food items and managing the logistics of delivering products from suppliers to the outlets. More specifically this involves: - Supply chain strategy development for both short and long term - Supplier development for both existing and new products - Negotiating and managing contracts for food suppliers as well as services - Working on cost reduction projects in conjunction with QA and operations - Negotiate and manage distribution contracts and ensure contract delivery performance to outlets remain at certain standards - Support strategic initiatives and cross functional projects like new product launches, promotion management Control, Planning and SCM team members spend much of their time helping other team members in Pizza Hut and in turn are sought out to add commercial and financial advice to the business as we work together in achieving our business goals. The senior leadership team is responsible for implementing strategy and overseeing the day to day operation of the company. They are: Russell Creedy - Chief Executive Officer Grant Ellis - Chief Financial Officer Brent Kitto - KFC General Manager Arif Khan - Pizza Hut General Manager Craig Neal - Starbucks Coffee General Manager Jennifer Blight - Human Resources Manager Deidre Gourlay - Development Manager
Budgets As pizza hut is spending enough money for their goodwill. They are willing to spend more money by providing their customer free delivery. They recently open the new restaurants in north shore in Whangaraie, and in south as well. They are spending more money on renovations their restaurants. Pizza hut also spending more money which they are giving to call centre for their services. There are more than 70 pizza hut stores in New Zealand. They are paying their employees on weekly basis. Objectives behind these expenses are to reach
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the vast population of New Zealand. They are having four brands from which they recently take over the Carles junior and the other brands are pizza hut, KFC and Starbucks.
Personal policies Pizza Hut is committed to the protection of your personal information. Pizza Hut has developed its own privacy policy, which complies with the Privacy Act 1993. This Policy covers all personal information that we hold and includes information we have collected through our outlets, over the phone through our customer service centre and over the internet through our web sites. This Policy also covers personal information that we have sourced from third parties. Collection Pizza Hut will only collect personal information that is necessary for one or more of its functions or activities. Pizza Hut will only collect personal information by lawful and fair means and will let you know where and how to contact us. If it is reasonable and practicable to do so, Pizza Hut will collect personal information only from you. Where Pizza Hut collects personal information about you from someone else, Pizza Hut will take reasonable steps to advise you as soon as practicable. Pizza Hut will not collect personal information about you unless you have consented to such collection, or the collection is required by law or the collection is otherwise permitted by the Privacy Act 1993. Where you choose not to provide requested information, Pizza Hut will advise you of what impact such non-disclosure may have. Pizza Hut may disclose your personal information to: (a) Third parties provided we have obtained your prior authorisation, which we will normally
obtain at the time of collecting the information from you. For example, your name, address and telephone number may be disclosed to a third party supplier of products or services that relate directly to a complaint that you have made about any of our products or services. (b) To employees of Pizza Hut where the information relates to a Pizza Hut outlet or a problem you have experienced with Pizza Hut provided either the information is aggregate information that does not personally identify you, or we have obtained your prior authorisation, which we will normally obtain at the time of coll ecting the information from you. (c) Where the law requires Pizza Hut to do so. (d) if you consent. Personal information may be disclosed under other circumstances where permitted by the Privacy Act.
Sales force organisations As there is heaps of competition in the New Zealand in food market. So it always needs to add some promotional deal to push sales. Pizza hut providing many services like free delivery and some dessert and free sides. For example like on Monday all classics pizza for 5.90$ and on Tuesday 2 slabs for 10$ and many other promotional deals to come in pizza hut. They are using the breast chicken in their company. But in dominos they are using the
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normal chicken in their pizzas. So pizza hut doing their best to increase the sales by providing different services to their customers .
Sales territory coverage As it has already reaches the every part of New Zealand with their services. Customers can order online by sitting in their homes and get a free delivery if they order more than $20. Pizza hut also provided readymade pizzas in the super market. There are more than 70 stores in the New Zealand which covers many part of country. It is an international company which serves best quality food to their customers in cheap price by providing many services.
Personal selling Personal selling refers to face to face interaction with customers. Pizza hut providing very good services to their customers. The politeness of their speech and mannerism which pizza hut crew member serving to their customers is absolutely enhances the brand value of pizza hut in customers mind. Pizza will take 15 minutes to get ready until that pizza hut providing TV, magazines to their customers to wait until it will get ready. In personal selling they provide delivery to their customer home within 30 minutes of time which make customer to be with pizza hut for long time.
Advertising 1. Television a) Television will be the primary medium for the new Pizza Hut campaign. b) Network television outlets allow national coverage and expanded reach to all target audiences. c) Through national cable television the campaign can reach special Demographics, and run more targeted commercials. d) Different times, day parts, and shows allow for further selectivity. e) Allows great creative flexibility with the integration of sight, sound, and motion, and makes possible dramatic representations of the product. 2. Radio
a) Radio will support television advertising. b) It allows for more frequency than the other media. c) Stations are already segmented so it is easy to target specific markets by different station formats or programming. d) Radio is less expensive than television. 3. Newspaper a) Newspapers will also be used for the Pizza hut campaign. b) It is a medium capable of reaching numerous market segments. c) It allows for individualized local advertising. d) Allows greater control of geographic placement. e) Also serve as a medium to supply promotional material such as Sunday coupons and special offers. 4. Internet a) Internet advertising will run in the Pizza Hut website. 8
b) The campaign will consist of embedded banner ads in the Pizza Hut and Pizza Hut sponsored websites. c) Pizza Hut has used their website in order to reinforce their advertisements and product promotions. d) It allows for cross-promotions. e) Allows an interactive campaign with direct feedback potential. f) Proximity to purchase, promotions are offered when consideration for an internet delivery order is taking place. g) Integrates all types of media thus establishing the integrated marketing strategy h) Since it is using the Pizza Hut website it is considerably inexpensive. 5. Outdoor (Test) a) Outdoor advertising will consist entirely of billboards. b) They are permanent and cannot be turned off by consumers. c) There is a greater reach and frequency than other media for the cost. d) Billboards allows for geographic and demographic flexibility. e) There is a low cost per thousand.
Sales promotion For sales promotions pizza hut providing many services to their customers by giving them discount card for their employees and vouchers to their customers. Where online ordering contributes a major percentage to total sales, pizza hut offers online coupons for different regions of varying denominations. Pizza hut offers large discount by making through these coupons. Pizza hut also gave free samples of the new pizza which it launches. For example in case of cheesy bites pizza, pizza hut offered free slices of it to the customers for sampling and testing it amongst the consumer group. They also give free sides that are ordering through sites and get free delivery if customer orders more than $20.
Public relations • To reposition Pizza Hut as a more healthy food brand. • To enhance public opinion of the Pizza Hut brand. • To provide public with information about new campaign and products. • To get magazines to publish articles about Pizza Hut’s new campaign and products.
Marketing mix Product:
Pizza hut follows multiple product strategy. As pizza hut not only sells pizzas but also deals in a variety of other products such as wings, garlic bread, fries, drinks and desserts. Although all the product offerings in pizza hut are not as fast moving as its pizza, but they usually complement each other. For instance a family coming for a dinner usually starts with garlic bread and then move on to pizza. Pizza hut selling the standardised product with modifications. Pizza hut mainly sells 4 types of pizzas: pan pizza, hand-tossed pizza, stuffed crust, and thin n crispy pizza. Pizza hut serves these standard style pizzas everywhere in the world but at the same time, it offers its customers to choose different toppings as extra mushroom or extra capsicum and onions with extra cheese or chicken topping like bacon, ham, pepperoni, beef etc. Secondly it offers what is known as”value meal combos” wherein it offers a combination of pizzas, drinks and desserts.
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Price:
In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above Competition, but also promote frequent sales to lower the price below them. Both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used.. Pizza Hut will be able to sell two products together at a single price to suggest a good value. Different groups of cu st om er s ar e willing to pay different prices for the same product. Pizza Hut can sell "The Extreme" to the customers who will pay the higher price to be the first to buy and also to the bargain hunters finally, this strategy will emphasize product and service quality. Pizz a Hu t set s a high initi al price for its prod ucts to se nd a signal to customers that its products are quality and the service is excellent.
Promotion: The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behaviour of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a co upon to purchase. This promotion is also distributed mainly by mail (VIP members), but also by fliers on college campuses around the country in order to reach the target market. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers. Pizza huts also using marketing techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts try's to attract the younger generation as their main market segment. Apart from this Pizza Hut issuing intense marketing strategies they are also giving ads in magazines. Advertising camping will creates awareness of the products in our target markets.
Place: The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channelize also useful when there are a large number of buyers, but a small amount purchased by each. Pizza Hut uses three different methods of selling its products directly to the market. The first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of time, place an order, and the order is delivered to the customer's home. Another method of distribution is for customers to dine-in. Customers can go to the nearest Pizza Hut, place an order and either leave with the order or eat at the restaurant. One of Pizza Hut's largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family atmosphere. The third method of distribution is online ordering. Customers can now go on the Internet and place an order. This method is useful because it allows customers to view the entire menu, downlo ad any special co upons, and order withou t having to disclose any credit card numbers. The market coverage for "The Extreme" will be nationwide. Customers all over the country will be able to order "The Extreme" by one of the three distributions methods.
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Market Trends: Market trends are those trends which pretend to be a part of financial market .These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames. Traders identify market trends using technical analysis, a framework which characterizes market trends as a predictable price tendencies within the market when price reaches support and resistance levels, varying over time.
Distribution strategy: Pizza hut is American restaurant chain and international franchise that offers different styles of pizza along with sides dishes including wings garlic breads breadsticks. Pizza hut is aa subsidiary of yum brands inc.(world largest restaurant company) with approx. 34000 restaurants, delivery/carry out locations. Seeing that Pizza Hut holds the most market share in the pizza industry, the perceived quality and service of the company will help to ensure a better than average chance at a successful introduction of a new product. The pizza industry firms are famous for introducing new products to spark short-term sales. Pizza Hut as stated earlier has been very successful at accomplishing this. The introduction of a product that keeps with today's trends is also important to reduce the risk of failure. Pizza Hut is the leader in innovative products and this new product that we are proposing will surely be a success, given Pizza Huts track record. With high competition from the other top firms in the industry, the introduction of a new product is necessary to keep one step ahead of the competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger than the competitors at twenty-inches and have twice the toppings that the competitors have. Pizza Hut will market this product alongside other extreme products such as Mountain Dew, to help Pizza Hut capture part of this new segment of the market. The selection of pizza's offered by the competition have been significantly less creative than that of Pizza Hut in the past and Pizza Huts reputation of offering high quality, new products will allow this new product to move into the market as other new offerings have in the past. With the introduction of a new product, one of our main objectives is to create recognition for our product. Our goal is to reach 85% recognition of the new product in our target market. As with all businesses, the most important goal of a company is to increase revenue and profits. With the introduction of this new product we hope to increase the overall sales of the company by 7%. If we can in fact reach our goal of 85% recognition of the product, through a successful promotions mix, then the increase in sales should be easily acquired.
Internal and external stakeholders: Internal stakeholders include: 1. Management: all staff is given 20% discount card on pizza hut and related companies like KFC, Starbucks and Carls junior. And management is also provided free tour if they cross certain sales limit. All insurance is also covered by the company as if any accident will happen then it should be covered by pizza hut. They also provide hospitality certificates to the employees with the passage of time. 2. Employees: pizza hut is having good promotional policies for the employees. Bonus packages and holiday packages are also provided to employees by company. Employees are also provided by 20% discount card.
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External stakeholders The external stakeholders are those who love to contain the impact of your good will like debtors, creditors, government, customers, general public.
Conclusion Pizza Hut has many targets which it has achieve in a given period of time. The time-period is mostly a year. Therefore, in order to fulfil the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets .
Bibliography:. (https://pizzahut.rbnzsecure.co.nz/indexFlash.cfm, 2012) www.pizzahut.com
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