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Product Evaluation and Recommendations for Pizza Hut

MARKETING MANAGEMENT

Project Proposal

Presented to

Professor Nagasimha Balakrishna Kanagal

Indian Institute of Management, Bangalore

On

September 27, 2011

By

Section A

Atul Suhas Hegadepatil (1111013)

Divya RM (1111026)

Mohd Qasim (1111039)

Raja Simon (1111052)

Shrikanth C A (1111066)

Sama Kajur (1011200)

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Project Tile: Product Evaluation and Recommendations for Pizza Hut

Background:

The Pizza Market in India has been witnessing rapid growth on the back of positive developments and

presence of massive investments. The market growth is largely fuelled by the rising young population,

working women, and increasing disposable income of the middle-class households. The Pizza market

in India comprises of major foreign players like Pizza Hut, Dominos, Pizza Corner as well as

domestic players like Smokin Joes and Pop-Tates.

Marketing Decision Problem:

Pizza Hut is one of the earliest foreign players along with Dominos to enter Indian market in 1996.

Since its entry in India, its USP has been providing Dining Experience. Its menu list comprises a

large number of items under different product ranges such as Classic, Favourite, Signature and

Supreme. However, it is facing fierce competition from other players in the industry like Dominos

which in addition to offering a wide range of products also offers quick delivery time. Pizza Corner

invented its own one-of-a-kind no-pork Pepperoni pizza. Under these circumstances, we intend to

study the existing product and marketing strategies of Pizza Hut and suggest suitable innovations in

product, pricing and positioning.

Scope and Limitations of the Project:

Scope:

The project would analyze the various marketing strategies primarily focusing on product strategy for

Pizza Hut taking into account product specification and differentiation, unconventional promotional

offers, consumer preferences, pricing strategies etc. We would finally use these results to

conceptualize a new product and promotional strategies to spearhead new as well as existing products.

Limitations:

The project being hypothetical confines our analysis in certain issues due to the following:

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1. The study covers the region in and around Bangalore. So customers and franchisee chosenare very narrow in terms of their attributes and preferences.

2. Most of the innovative ideas in pizza industry are easily copied by the competitors but theirentry during Pizza Huts new product launch will not be considered.

3. We assumed that Pizza Hut is cost competitive and so we would not consider their financialdata in pricing strategy. We would rather use only customer viewpoint and industry standard.

Methodology:

The following are the different steps that will be used in the analysis of our project:

Step-1: Collection of data for the analysis can be divided into primary and secondary data.

Primary Data Collection:

The primary data collection includes the following:

1. Survey of target customers on the needs and wants to enable us come up with new productsand product differentiation.

2. Survey to understand the consumer preferences and choices in the present pizza market.3. Survey of customers who currently prefer the competitors product on their perception of

strengths and weaknesses of the competitors product.

4. Interview with existing Pizza outlets on their expectation from the product vis a vis thecompetitors product and the current market trend

Secondary Data Collection:

The secondary collection of data includes the following:

1. Media reports on the pizza in the present scenario.2. Market share of various Pizza brands in India and the position of various competitors.3. Data about the strategy of the existing player on promotion and expansion4. Industry standards on pricing

Step-2: Based on the results of the study, we will recommend a product strategy consisting of the

following:

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1. We will evaluate current product offerings and suggest new products or product category withdifferentiating character under multi product strategy.

2. The pricing of the product will be arrived at on the basis of customers willingness to pay andcompetitors pricing.

3. In the next step we will be analyzing various segments of target customers and this will bedone on the basis of customer preferences collected through primary and secondary data.

Deliverables:

Some of the key deliverables from this project analysis would comprise:

1. In terms of the product detailed specification of the products and variants that the companyshall be offering, time line of launch etc.

2. Product Strategy: What type of product and its variants can be offered?3. Promotional Strategy: What type of medium to be used in introducing the product? How to

capitalise on their existing distribution and franchise network for the new product?

4. Pricing Strategy: What should be the feasible and correct price for the product being offered?