Product which I choose

PRESENTED BY :

Hammad Tariq

BEM / 861

Fall 1 2007

Institute of Business & Technology (Biztek)

“THROUGH THE STRENGTH OF OUR HERITAGE ,OUR CULTURE, OUR PEOPLE AND FRANCHISES, WE LOOK FORWARDTO EVEN MORE SUCCESS IN DECADES AHEAD.”

VISION STATEMENT

“To own majority shares of both the casual dine in and delivery sectors in Pakistan and to become the

industry leaders through customer mania.”

MISSION STATEMENT

“To be the first choice among restaurants and delivering brands by developing our

people capability to deliver maniacal service, product quality, 100% customer

satisfaction, innovation and building great look and feel restaurants to provide

attractive returns to our stake holders.”

Fun facts

Pizza Hut serves more than 1.7 million pizzas every day, to approximately 4 million customers worldwide.

Pizza Hut is the world's largest pizza restaurant chain, with nearly 12,000 restaurants,

Delivery-carry out in more than 86 countries.

It employs more than 240,000 people worldwide.

Pizza Hut uses 2.5 percent of all the milk (over 3.2 billion pounds) produced in the U.S. every year for cheese.

There are 4.2 billion pizza purchases made every year, which equates to 11.5 million purchases every day. Half of these purchases are done on Friday and Saturday.

Products of Pizza Hut Pizza hut provides a combination of products according to the need of local and foreign customers. These poducts are:

Pan PizzaStuffed Crust PizzaHand-TossedThin 'N CrispyMore4ALLCheesy Twisted Crust

Other food itemsCalzones ("P'zones"), Buffalo wings, Pasta,Breadsticks,Cinnamon sticks,Mozzarella sticks,Jalapeño poppers.Soft drinks PepsiSalad barLunch buffet

COMPETITORS

The main competitors of pizza hut are the following, these competitors are local as well as multinational:

Pizza NextPizza ExpressPizza Expert Papa John’sDomino

Market ShareMarket Share

Pizza Hut90%

Pizza Next5%

Domino3%

Papa John's2%

MARKET SHARE:

This following graph shows that currently Pizza Hut has maximum shares in the target market.

They have 90% shares and people prefer pizza hut because of its quality and service provide by their staff.

Who is the Franchiser ?Who is the Franchiser ?

Yum Brand Inc. Yum Brand Inc.

It’s the pizza everyone eats backwards!

The pizza has a ring of cheese baked into the crust for more cheese in every slice.

One of the most successful new products ever at Pizza Hut,

Stuffed Crust Pizza was launched in 1995 in USA.

This new product by Pizza Hut that has been launched in last Ramadan in Pakistani market.

It’s a hand tossed crust.

Stuffed crust pizza available in different tastes.

HOW THIS CONCEPT HAS BEEN RAISED?

This idea is generated as a result of a lot of market research

They analyzed that most of the people eat the upper part of the pizza and leave the remaining back side

Introduced a stuffed pizza that can easily eat by the young as well as old people.

Launched this product in Pakistan during last “Ramadan”,

They introduce the promotion in a way that buy 2 pizzas and get 1 free

After that they introduce this Pizza in Pakistan but in remaining world this pizza is not a new concept.

TYPES OF STUFFED CRUST PIZZA

Most of the following types of Stuffed Pizza is according to the needs and wants of local customer requirements. All these following Pizzas are available with a back of delicious cheese.

•Chicken Feast

•Chicken Tikka

•Chicken Fajita

•Fajita Sicilian

•The Euro

•Chicken Tandoori

Beefy Treats

•BBQ Beef

•Meat Lovers

•Hot and Spicy

•Beef Tandoori

Supremes

•Super Supremes

•Supreme

•Chicken supreme

Classic Pizza

Cheese Lovers

Veggie Lovers

Splitzza

Nutritional facts

A slice of “Stuffed Crust Pizza” contains calories starting from 310 to 400 subject to different flavors and type of “Stuffed Crust Pizza”.The following facts are of beef “Stuffed Crust Pizza”

Strengths

Company’s image

Quality and hygiene product

Unique pizza with cheese

Brand acceptance

Effective distribution network

Online order

Varity of tastes available

Chicken feast,Beefy treats,Supremes,Classic pizza,Splitzza

Little competitor

WeaknessesImport duty

Competitions

High prices

Customer’s loyalty towards Pan pizza

Only large size available

Taste of Cheese

ThreatsThreat of upcoming competition

Lowering tariffs on franchising and licensing

Acceptance of low price local brands

Opportunities

Economic component

Expansion opportunity

Demands of different tastes

Awareness increases

MARKET ANALYSIS

TARGET MARKET

COMPETITOR ANALYSIS

TARGET MARKET

The population of Karachi is estimated at 13.5 million, which is growing annually at around 5%

Their target market is the 10% of the total Karachi population which is 150,000

Target market of stuffed crust pizza can be based on two demographic factors:

•Income (high & medium Classes)

•Age

COMPETITOR ANALYSIS:

1. Stuffed Crust Pizza is not facing direct competition because of its uniqueness.

2. Other pizza restaurants don’t have this cheese taste, that’s why at yet there is no competitor of stuffed Crust pizza.

3. Their USP (unique selling point) is the ring of soft and delicious cheese stuffed into the crust

MARKETING OBJECTIVES

•SALES

•PROFITS

•QUALITY

•DISTRIBUTION

MARKETING STRATEGIES

Following are the strategies that Pizza Hut has adopted to increase their sales and profit margin, as well to increase there market shares for gaining competitive advantages.

•CONSUMER BEHAVIOR PLAN

•MARKET SEGMENTATION

•POSITIONING

•PROMOTION

CURRENT ADVERTISING CAMPAIGN

Advertising Strategies:

For advertising of Stuffed Crust Pizza, they use several sources:

BrushersBillboardsElectronic MediaPrint MediaInternet

TECHNICAL ANALYSIS

1.Technical risks

One risk might be that people do not like the taste of cheese.

They want to replace cheese with Mayonnaise.

2. Legal and safety issues

3. Production

MARKETING MIX

1. PRODUCT/ SERVICE

There are several categories of stuffed Crust pizza, such as:

• Chicken feat, • Beefy Treats,• Supremes,• Classic Pizza ,• Splitzza

2. PRICE

Stuffed crust pizza is priced as:

• Chicken feast Rs: 595-615/-

• Beefy treats Rs: 595-615/-

• Supremes Rs: 615-685/-

• Classic pizza Rs: 595/-

• Splitzza Rs: 615/-

3. PLACEMENT

Distribution objective is to achieve maximum territorial coverage as well as the volume in order to meet sales and profitability objective

They have a vast distribution channel for their stuffed crust pizza

Head Office TO Outlets TO Costumers

4. PROMOTION

“The fourth marketing mix tool stands for the various characteristics the company undertakes to communicate and promote to the target markets”

Different promotional strategies used are mentioned below in the promotion of Stuffed Crust Pizza.

•If you buy 2 Stuffed Crust Pizza get 1 free.

• Mid night deals: from 12.00 AM get discount on buying of Stuffed Crust pizza.

OBJECTIVE

The main objective is to increase the market share by 15% by the end of the fiscal year 2006-7.

STRATEGIES

•Convert the other fast food users into pizza users.

•To induce trial by loyal pizza users of other competing products