THE PIZZA PIZ ZA HUT STORY
MARKETING RESEARCH Final Project SUBMITTED TO: Ms. Hajra Waheed
SUBMITTED BY: Nida Gul Kiran Sahar
SUBMITTED ON: 12-01-09
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LETTER OF TRANSMITTAL
We enjoyed doing this project as it gave us a great experience and more exposure to the MARKETING WORLD. We came came across across differ different ent people people having having differ different ent kinds kinds of experiences and enjoyed listening to them and getting the questionnaires filled by them. At the same time there were some constraints too, that we had to face. This mainly included the time constraint and the non- cooperation of people. Still we found it very interesting and are thankful to our respected teacher who gave us the opportunity and moral support to conduct this research.
TABLE OF CONTENTS
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List of Charts……………………… Charts………………………….5 ….5
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List of Appendices…………………….6
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Executive Summary………………… Summary…………………...7 ...7
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Introduction…………………………....8
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Problem Definition………………… Definition……………………10 …10
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Literature Review……………………..1 Review……………………..11 1
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Research Design……………………… Design………………………11 11
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Information Needs…………………….12
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Data Analysis……………… Analysis………………………….13 ………….13
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Results…………………………………14
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Limitations…………………………….22
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Conclusion And Recommendations…...23
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Appendice……………………………...24
LIST OF CHARTS
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Figure 1.1……………………………… 1.1…………………………………………14 …………14
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Figure 1.2……………………………… 1.2…………………………………………14 …………14
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Figure 1.3……………………………… 1.3…………………………………………15 …………15
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Figure 1.4……………………………… 1.4…………………………………………15 …………15
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Figure 1.5……………………………… 1.5…………………………………………16 …………16
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Figure 1.6……………………………… 1.6…………………………………………16 …………16
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Figure 1.7……………………………… 1.7…………………………………………17 …………17
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Figure 1.8……………………………… 1.8…………………………………………17 …………17
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Figure 1.9……………………………… 1.9…………………………………………18 …………18
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Figure 1.10……………………………… 1.10………………………………………..18 ………..18
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Figure 1.11………………………………………..19 1.11………………………………………..19
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Figure 1.12……………………………… 1.12………………………………………..19 ………..19
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Figure 1.13……………………………… 1.13………………………………………..20 ………..20
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Figure 1.14……………………………… 1.14………………………………………..20 ………..20
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Figure 1.15……………………………… 1.15………………………………………..21 ………..21
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LIST OF APPENDICEs
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Questionnaire………………………………………25
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EXECUTIVE SUMMARY
The research report includes our research about Pizza Hut to analyze the most important element for its profitability. In this research we conducted a customer analysis in which we asked the customers their preferences for going to any fast food restaurant. We also asked them about their experiences in Pizza Hut, every time they visit there. This helped us making a broad perception about the future sales and profitability of Pizza Hut and what Pizza Hut needs to do to maintain its image and retain the customers.
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INTRODUCTION Pizza Hut takes great pride and care to provide its customers with the best food and dining experience in the quick-service restaurant business. It has its 34 outlets in 9 different cities of Pakistan that include: •
Rawalpindi
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Islamabad
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Peshawar
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Lahore
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Faisalabad
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Sialkot
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Multan
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Hyderabad
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Karachi
Pizza hut has been a renowned restaurant since 1958. it has maintained its quality and goodwill since then. It has also been b een awarded as the best restaurant chain cha in internationally. internationally. The history of Pizza Hut comes a long way from 1958. On May 31st 1958, the first Pizza Hut restaurant opened in Wichita, Kansas, started by two college aged brothers who borrowed $600 from their mother. In 1959, Pizza Hut got
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incorporated in Kansas and the first franchise unit opened in Topeka, Kansa.In 1964 The basic freestanding design of Pizza Hut was adopted. In 1966 Pizza Hut’s first Home Office was built in Wichita, Wichita, Kansas to handle the business of now 145 Pizza Restaurants. In 1967 Nine- inch tall Pizza P izza Pete dolls became available at all Pizza Huts restaurants. In 1969, the familiar top roof was adopted for Pizza Huts restaurants. In 1971, Pizza Hut became the number one Pizza restaurant chain in the world in both sales and number of restaurants. In 1972, Pizza Hut Inc. was listed on the New York Stock Exchange under the symbol PIZ, and restaurant number 1000 opened in Wichita, Kansas. Pizza Huts goes International as a restaurant opened in Costa Risa. In 1976, The 100th Internation International al Pizza restaurant restaurant opened in Australia while the entire entire number reaches 2000 restaurants. In 1977, Pizza Hut Stakeholders merged with Pepsi Co. In 1983, Pizza Hut celebrated its 25th Annive Anniversa rsary ry.. In 1986, 1986, Pizza Pizza Huts Huts starte started d its Home Home Deliver Delivery y service. In 1995, Pizza Hut launched its Stuffed Crust Pizza, which immediately set company’s sales records. In 2007, Pizza Hut offered online ordering at all of their 65,000 locations. In 2008, Pizza Hut introduced Total Mobile Access- the ability for customers to order by text messaging or using their web enabled cell phones.
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PROBLEM DEFINITION •
Statement of the problem: “Quality is pivotal element for customer retention and growth”
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Background of the problem:
Pizza Hut has always been successful in delivering the best fast- food. It has gained many customers throughout the world and has always been working on customer- retention. This research is conducted as Pizza Hut wants to know the preferences of their current valued customers so that they can serve them in a more satisfactory way and improve their overall performance.
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LITERATURE LITERATURE REVIEW
It was a pioneer research that we conducted and there was no secondary research available.
RESEARCH DESIGN
The research we conducted is descriptive as well as theoretical in nature.
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INFORMATION NEEDS •
Data collection: There was no secondary data available in this context for Pizza Hut. We collected primary data from people.
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Scaling Technique: We used the non-comparitive scaling technique in our questionnaires.
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Questionnaire Development: While developing the questionnaire, we focused mainly on questions that showed the preference of the fast-food customers with respect to food quality, price, environment, services, etc. and could give us a clear impact of the most preferred element.
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Pre- testing: In pre-testing we got the questionnaires filled by 10 people from within our population. There was no problem faced by the population and they found the questionnaire easy to understand and fill and we could also figure out the resu result ltss from from the the answe answers rs.. Th Thus us,, we felt felt no need need of any change change in the the questionnaire.
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Sampling Techniques: The sampling technique used by b y us in this research is Judgmental Sampling.
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Field Work: We were two people to get the questionnaires filled. We We got them filled within the premises of Fatimah Jinnah Women Women University.
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DATA ANALYSIS
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Population: The population for our research were all the students of Fatimah Jinnah University.
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Sample: We took sample size of 20 students.
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Method: We analyzed the results by making pie charts for all questions.
RESULTS
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The results of all questions individually are as follows: •
Question 1:
yes no Slice 3 Slice 4
fig:1.1 yes: 20 no: 0
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Question 2:
above 3 3 and below Slice 3 Slice 4
fig:1.2 Above 3: 13 3 and below: 7
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Question 3:
yes no Slice 3 Slice 4
fig:1.3 yes:20 no:0
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Question 4:
within 3 months 3 months or more Slice 3 Slice 4
fig:1.4 Within 3 months: 14 3 months or more: 6
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Question 5:
quality others Slice 3 Slice 4
fig:1.5 Quality: 12 Others: 8
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Question 6:
yes no Slice 3 Slice 4
fig:1.6 Yes: 14 No: 6
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Question 7:
yes no Slice 3 Slice 4
fig: 1.7 Yes: 17 No: 3
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Question 8:
yes no Slice 3 Slice 4
fig:1.8 yes: 10 no: 10
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Question 9:
yes no Slice 3 Slice 4
fig: 1.9 yes: 19 no: 1
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Question 10:
yes no Slice 3 Slice 4
fig:1.10 yes: 11 no:6
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Question 11:
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yes no Slice 3 Slice 4
fig:1.11 yes: 16 no: 4
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Question 12:
yes no Slice 3 Slice 4
fig:1.12 yes:13 no:7
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Question 13:
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yes no Slice 3 Slice 4
fig:1.13 yes: 11 no: 9
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Question 14:
yes no Slice 3 Slice 4
fig:1.14 yes: 10 no: 10
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Question 15:
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Food quality price null variety/chang e service
fig:1.15 Food quality: 11 Price: 3 Null: 3 Variety/ Change: 2 Service: 1
After a detailed analysis of all the results we conclude that QUALITY is most preferred by the customers. Pizza Hut has retained its customers because of its consistent quality but if the quality decreases, this will directly influence the customers and they might switch to any other fast food restaurant. Thus, quality has a direct impact over the customers and ultimately the sales of Pizza Hut. Thus, the hypothesis statement has been proved right.
LIMITATIONS
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There were certain limitations that we faced while doing this project. These limitations include The limited time Limited budget Resistance of people to fill the questionnaires To gather Adequate information about Pizza Hut from its management • • • •
CONCLUSION AND RECOMMENDATIONS RECOMMENDATIONS
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From our research we conclude that in order to retain the current customers and increase in custom customers ers Pizza Hut has to focus focus on CUSTO CUSTOMER MER Satis Satisfac factio tion. n. This This custom customer er satisfaction is only possible if Pizza Hut maintains its quality and also has control over its prices. We analyzed that the company has adjusted to new entrants into the market and managed to stay ahead of the competition just because of its consistent good quality. But it is also concluded that if Pizza Hut does not keep a focus on its quality and prices, it might loose its customers and the market share.
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APPENDICE
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Dear Customer, As a Marketing Researcher for Pizza Hut, we want to thank you for giving Pizza Hut the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your cooperation and want to make sure we meet your expectations. Kindly fill the following Questionnaire so that we may serve you better. “QUESTIONNAIRE”
1. Do you you lik likee Fas Fastt Food Food?? • •
Yes No
2. How do do you rate the follow following ing Fast Fast Food Food restaur restaurants? ants? • • • • •
Papasallis KFC Mc Donald’s Pizza Hut Hot Spot
3. Have Have you you ever ever visite visited d Pizza Pizza Hut? Hut? • •
Yes No
4. How often often do do you you visi visitt Pizza Pizza Hut? Hut? • • • • •
Once in a week or more often 2 to 3 times a month Once a month Every 2 to 3 months 2 to 3 times a year
5. Which factors factors affe affect ct your prefere preference nce while while choosing choosing any place place for hoteling hoteling?? • • • • •
Physical environment Interior Service Food Quality Price
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6. Do you you think think that Pizza Hut offers offers enough variety variety of food? food? • •
Yes No
7. You visit visit Pizza Pizza Hut as it has a good good Brand Brand Image? Image? • •
Yes No
8. Do you you think think Pizza Pizza Hut Hut delivers delivers the best best food food in in town? town? • •
Yes No
9. Are you you satisfied satisfied with the the ingredient ingredientss used in in its food food items? items? • •
Yes No
10. Do you think Pizza Hut is consistent in its food food quality whenever you go? • •
Yes No
11. Are you satisfied with the service of Pizza Hut Hut When you dine in? in? • •
Yes No
12. Do you think that the preparation preparation process of food in Pizza Pizza Hut is hygienic? • •
Yes No
13. Are you satisfied with the prices charged charged by Pizza Hut? • •
Yes No
14. Are you satisf satisfied ied with the Home Home Deliver Delivery y Servic Servicee of Pizza Hut that that the food delivered is of the same quality as when you dine in?
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• •
Yes No
15. If you switch switch to another fast fast food restaurant restaurant in place of Pizza Pizza Hut, the reason would be………………………… be……………………………….. ……..
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