My Pizza Hut

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ASSIGNMENT ON

BRANDING STRATEGIES OF

PIZZA HUT

Submitted to: Submitted By:

Dr. Vikram Sandhu, Rajni

CBM Deptt. MBA-IV Sem(A)

GNDU 890808


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INTRODUCTION

PIZZA is basically an Italian dish. The legacy of Pizza Hut began in 1958, when

two college students from Wichita, Kansas, Frank and Dan Carney, were

approached by a family friend with the idea of opening a pizza parlor. Although

the concept was relatively new to many Americans at that time, the brothers

quickly saw the potential of this new enterprise. After one year they open 10

more branches in different cities of America.

After borrowing $600 from their mother, they purchased

some second-hand equipment and rented a small building on a busy

intersection in their hometown. The result of their entrepreneurial efforts was

the first Pizza Hut

Restaurant and the foundation for what would become the largest and most

successful pizza restaurant company in the world. Over the past four decades

pizza hut've built a reputation for excellence that has earned the respect of

consumers and industry experts alike.

Pizza hut is an American restaurant chain and international

franchise based in Addison, Texas,offering different styles of pizza along with

side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza

Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco

Bell, A&W and Long John Silvers under its umbrella. Pizza Hut is the worlds

largest casual dining restaurant chain

with over 12,500 restaurants across 91

countries including India.

Pizza Hut played a major role in

turning pizza from an Italian specialty


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into a mass-market, mainstream food. Pizza Hut had developed a

reputation for and commitment to product quality that was deeply engraved

into the restaurant managers, and with it, great pride in the brand. By the mid

1990s, Pizza Hut had become a powerful brand, with some 8,000 U.S.-basedrestaurants, 140,000 employees and over $5 billion dollars in system-wide

sales. An internal Pizza Hut market researcher estimated that over 90 percent

of American pizza eaters had tried a Pizza Hut pizza.

The following chronology explains the growth ofPizza hut as a leading food

Chain:

y 1958 :Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.y 1972: 1000 restaurants are open throughout the USA.y 1973: Pizza Hut went international with restaurants in Japan, Canada &

England.

y 1975: The first UK Pizza Hut opened in Islington, London.y 1977: PepsiCo bought Pizza Hut.y 1980: Pan Pizza was introduced.y 1982: The UK joint venture started between PepsiCo and Whitbread.y 1984: Over 50 restaurants so far in the UK.y 1986: By now, there were 100 restaurants in the UK and 5000

worldwide.

y 1987: An average of one restaurant opened each week in the UK.y 1988: The UK's First Delivery Unit was opened in Kingsbury, London.y 1992:There were 9,000 restaurants in 84 countries.y 1993: There were 300 restaurants and delivery stores in the UK.y 1994: 10,000 Pizza Huts were open for business.


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y 1997: PepsiCo decided to focus on their drinks business. As aresult, Tricon

Global Restaurants was born, creating the largest restaurant brand in World.

Tricon became the partner company with Whitbread.

y 1999 :Pizza Hut had over 400 restaurants, employing 14000 people.y 2002: Tricon Global became YUM! Brands Inc.y 2006: Whitbread sold their share of the joint venture to Yum! Brands

Inc.

Pizza Hut UK Ltd was now 100% owned by Yum!

y 2008: bought Godfather's Pizza in Ireland with 28 stores.

Pizza Hut in India

Pizza Hut is the market leader in casual dining restaurants in India with 147

stores across 34 cities in India. Pizza Hut made its grand launch in India with a

dine-in restaurant in Bangalore in June 1996 and was the first international

restaurant chain to enter this category and can be credited with pioneering the

pizza market in India. After launching its first restaurant in Bangalore that

offered special vegetarian pizzas, Pizza Hut later opened its first all vegetarian

location in the city of Ahmedabad. After that it has been no looking back for

Pizza Hut with introducing more and more restaurants all across India. Its

largest restaurant in Asia is located in Kolkata.

It is diversity that has made the

history of Pizza Hut such a success. Its menus and

recipes across the various branches worldwide are not

the same.Different locations use different suppliers

and different toppings, varying as per the demand of


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the customers. The building block of the history of pizza hut has been

this diversity.

This same strategy was applied in its operations in India also.

Indians prefer spice in their food and having very peculiar eating habits. InPizza Hut in India, in addition to the traditional toppings, Indian foods are

incorporated such as chicken tikka, keema, lamb korma, and paneer, among

others. Beef toppings are not sold as the cow is considered as a sacred animal

among the Hindu majority. Indian Pizza Huts are typically sit-down restaurants

with waiters, and menu options include non-pizza items such as beer,

pasta,salad, and desserts.

According to the Economic Times - Brand Equity, Pizza Hut is ranked

2nd most trusted brand in the year 2010. Its great tasting pizzas and trademark

dining experience have made it possible for the company to record a

doubledigit growth and expand its presence to its current size. Pizza Hut

captures a 27 percent market share of the eating-out market in India and with

over 70,000 footfalls per day across the country, it claims to provide diners

with the ideal place to build memories and relationships over delicious food.


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VISION AND MISSION OF PIZZA HUT

Mission:

We take pride in making a perfect pizza and providing courteous and helpful

service on time all the time. Every customer says, "I'll be back!" We are the

employer of choice offering team members opportunities for Growth,

Advancement And Rewarding Careers in a Fun, Safe Working Environment.

P.E.A.R.L.S

PASSION for excellence in Doing everything

EXECUTE with positive energy and urgency.

ACCOUNTABLE for growth in customer satisfaction and profitability.

RECOGNIZE the achievement of others and have fun doing it.

LISTEN and more importantly, respond to the voice of the customer

Vision:

The vision of the PIZZA HUT is that reach on the top of the peak to provide

best service and taste & To see Yum on customers face.


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MENU AT PIZZA HUT


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Environment analysis

Now a days technology is improving so as baking and heating ovens will be of

new and efficient technology and will provide efficient service. Due to newtechnology there are new ways of marketing like internet; telemarketing and

the organization can advertise their products with much more faster pace.

Computer based customer data that is MIS (managing information system)

helps in collecting customer data, daily transactions, future forecasting and

decision making. New vehicles will make their service more efficient

SWOT ANALYSIS

y Strengths: Pizza Hut is the market leader in providing different products ofpizzas as there are no competitors in this sector. There good image makes

the organization more strong. Pizza Hut is providing good taste, quality

products with qualified staff, good atmosphere and hygienic environment.

They are specialized in pizzas. Motivation level of staff is very high which

make the organization more prosperous. They are ISO (International

Standard Organization) certified. They have enough resources for operating

different activities of the organization. They are providing free home

delivery service. They have created monopoly in this sector. Another big

Strength and even a Competitive Advantage is the fact that they have a full

service restaurant as well as delivery services. Most of Pizza Hut's

competitors do not have restaurants. Because of the restaurant, Pizza Hut

can market too many different segments that other pizza chains cannot. For

example, Pizza Hut can market to families much easier than Domino's or

Little Caesar's


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y Weakness: the fact that Pizza Hut does have a restaurant to run is alsoa weakness. Pizza Hut has higher overhead costs, due to the restaurant that

other competitors don't have to deal with. Another result of higher

overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut

is not the low cost producer. They rely on their quality pizza and good

service to account for their higher prices. They are providing less range of

products comparatively with high prices. They are more focused on

Western taste instead of Eastern.

y Opportunities: New markets can be explored and new opportunities theycan gain. Pizza Hut can come up with the new products considering the

Eastern taste of the people as like McDonalds. Diversification of new

products can increase their market share. They can reduce their prices

because of more resources

y Threats: In the UK, Pizza Hut has been criticized for the high salt content ofits meals, some of which were found to contain more than twice the daily

recommended amount of salt for an adult. The meats that consumers

demand for pizza toppings (pepperoni, sausage, bacon, etc.) are, likewise,

salty and fatty meats.[25] There have also been concerns raised over food

production practices as due to the high level of frozen produce being used.


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Positioning


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Product


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Pricing of pizza hut

In the past, pizza hut has successfully used the high/low pricing strategy when

setting the retail price for its products.the high/low retail pricing strategy

allows pizza hut to charge a price that is above the competition, but also

promote frequent sales to lower the price below them.the high/low pricing

strategy has several advantages. First, this pricing strategy will help segment

the market. Different groups of customers are willing to pay different prices for

the same product. The high/low pricing strategy will also creates

excitement.customers will be able to try something new when they purchase.

Finally, this strategy will emphasise product or service quality.pizza hut sets a

high initial price for its products to send a signal to customers that its productsare quality and the service is excellent.

As there are no such competitors of pizza hut which could compete with the

quality of pizza produced at pizza hut, therefore, the pricing strategy adopted

by pizza hut is market skimming.pizza hut has adopted this pricing strategy as

they want to hold maximum share of the market by maximum profit. This is a

golden area for the pizza hut, as there are no competitiors and hence, pizza hut

is free to charge any price they want.

They are charging higher prices due to uniqueness of the product. They satisfy

the target market as the food quality is worth price paid. The pricing strategy is

not just to get the worth of quality but also to gain maximum profits before

any competitior enters because then pizza hut will have to change its pricing

strategy.

Although the prices would be lowered with the new entrants in the market

but not to a great extent as the quality food products are not home-produced.

They are imported from different countries keeping in view the best quality.

This pricing strategy will help segment the market. Different groups of

customers are willing to pay different prices for the same product. The

high/low pricing strategy will also create excitement.


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Product Mix


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Depth:


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Co Branding


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Pizza hut-mastered the pull strategy


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Promotion


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Branding Strategies adopted by Hut

Pizza Hut has always had the first mover advantage. Their

marketing strategy in the past has always been to be first. One of their mainstrategies that they still follow today is the diversification of the products they

offer. Pizza Hut is always adding something new to their menu, trying to reach

new markets. For example, in 1992 the famous buffet was launched in Pizza

Hut restaurants worldwide. They were trying to offer many different food

items for customers who didn't necessarily want pizza.

Another strategy they used in the past and are still using is the

diversification of their pizzas. Pizza Hut is always trying to come up with some

innovative way to make a pizza into something slightly different -different

enough that customers will think its a whole new product. For example, let's

look at some of the pizzas Pizza Hut has marketed in the past. In 1983, Pizza

Hut introduced their Pan Pizza, which had a guarantee of being ready to eat in

5 minutes when dining at Pizza Hut restaurants. In1993, they introduced the

"Bigfoot," which was two square feet of pizza cut into 21 slices. In 1995, they

introduced "Stuffed Crust Pizza," where the crust would be filled with cheese.

In 1997, they marketed "The Edge," which had cheese and toppings all the way

to the edge of the pizza. Currently, they are marketing "The Big New Yorker,"

trying to bring the famous New York style pizza to the whole country.

Lastly, Pizza Hut has always valued customer service and satisfaction.

Strategies were implemented to make sure their customers were happy, and

always wanted to return.


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With a significant decline in sales, Pizza Hut is responding to the tough

economic times by launching a new branding strategy. Will The Hut make

you want to eat out again?

Its no secret, more consumers are choosing to dine at home and avoid junk

foods to save money. The largest player in the pizza industry is trying to win

back pizza fans with a new image and menu items like all-natural multigrain

pizza, lasagna, and wings.

Theres a big trend in general around having confidence in the foods that you

eat. People over the age of 35, whose frequency with pizza is declining, said

one of the big things that would reignite their passion with the category is to

have a pizza made with multigrain crust and an all natural tomato sauce

Design is a great way to create an emotional expression for your brand. But the

pizza category has been a real laggard in doing that. Their red box is a game

changer in packaging and design. And yes, theyre also introducing another

vocabulary word with Pizza Hut, which is The Hut. That ties in nicely with

(todays) texting generation. Hut wanted to make sure that Pizza Hut and The

Hut become common vernacular for our brand. Red is our mark and when you

see that red roof, people will refer to it as The Hut or Pizza Hut. As pizza hut

expand their online and mobile businesses, The Hut is the perfect icon for

mobile generation.

- Brian Niccol, Pizza Hut CMO on BrandWeek.


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Suggestions

y Reduce the menu costs; it is way too expensive for the middleclass Indian.

y Middle class forms the maximum population of india and hencereducing the costs of pizza can increase the elasticity of

demand greatly.

y Invariably there are no discounts, or discounts if offered arevery less. The pizza hut should offer more discounts to tap

more customers.

y Their reach is very less as compared to dominos as pizza huthave only premium restaurants} which deprives far- off

customers from having pizza huts experience. Hence they

should increase their presence.

Documents

My Pizza Hut