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Contents

History of pizza hut Vision and mission Competitors Product line Launch in India Swot analysis Porters five force model Ansoff matrix Key success factor Future plans Source of information

History

1958-Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas. 1972 -1000 restaurants are open throughout the USA. 1977-PepsiCo bought Pizza Hut. 1980-Pan Pizza was Introduced 1986-By now, there were 100 restaurants in the UK and 5000 world wide. 1988-The UK's first delivery unit was opened in Kingsbury, London. 1992-There were 9,000 restaurants in 84 countries 1994-10,000 Pizza Huts were open for business. 1997-PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. The Sicilian Pizza was launched in the UK, where there were 277 restaurants and 100 delivery 2000-Pizza Hut introduced The Edge, a thin pizza with toppings all the way round the edge. 2005-The 4forALL was launched. Over 600 restaurants were open in the UK, 70 of them as Franchise units. 2008-We bought Godfather's Pizza in Ireland with 28 stores. We also launched our Pepperoni Stuffed Crust & Garlic Crust pizzas, larger 4 for ALL and a new range of Tuscani pastas in the UK.

 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. We are accountable for profitability in everything we do, providing our shareholders with value growth.

to make the people know that for all the eating items they desire to eat can be made available in minimum time without our effort excluding money

Vision :

MAJOR COMPETITORS
Domino's Pizza Papa John's

Little Caesar's

Pizza price comparison

Company
Dominos

Price range(rs)
39-265 75-350

Pizza hut

Pizza hut versus dominos

Both chains claim to be leaders: Pizza Hut for casual

dining, Domino's for delivery. But there's quite a bit of crossover. Domino's has been renovating its takeout storefronts to add eat-in tables and now does up to 40% of its business in some locations that way. Pizza Hut claims as much as 50% of sales from delivery in some stores, and ten of its outlets are takeout only. Pizza Hut boasts 30% year-over-year sales growth in India; Domino's says its is 55%

Contd.
Domino's are not a restaurant player.
At Pizza Hut you get table service. You get to order

appetizers, salads, and dessert as well.

Market share captured by pizza hut

PRODUCT LINE

Pan The Italian Cheesy Bites Stuffed Crust Thin Tortilla Pizza Delicious Margherita pizza Tuscani Traditional Lasagne* Spinach & Ricotta Cannelloni*

Salmon Pasta Bake Tomato & Mozzarella Mezzaluna* Tagliatelle alla carbonara Chicken & Mushroom Pasta Bake Tori's Tomato Pasta Bake Arrabiata

Launch of pizza hut in India

The Pizza Hut franchise stepped into the Indian fast food market

by opening a dine-in restaurant at Bangalore in 1996. The pizza franchise soon expanded itself in India and now has the KFC brand beneath its umbrella. The fast food franchise was the first international fast food firm to make an entry into the Indian scene and has thus pioneered the Indian pizza market. The menu provided at the Pizza Hut franchise is that of a complete meal. Customers are considered as honoured guests at the fast food franchise and are treated accordingly. It is the customer satisfaction provided by the specialty food franchise that enabled it to position itself at the top of the Indian fast food market. The fast food franchise also ensures that it adds an Indian touch to all the varieties of pizzas that it makes

Performance in India
Pizza hut is believed to have close to 50% market share of

the organized pizza retailing segment in India. According to the article Financial Express, the market size of the pizza segment is around US$ 87 million and currently growing at the rate of 15 per cent to17 per cent per annum. According to Pizza Hut sources, most of their outlets are financially successful, encouraging further expansion. In India, the average investment for each outlet is US$ 275,000-335,000and is borne by the franchisee.

SWOT ANALYSIS
strength weakness

opportunity

threat

STRENGTHS AND WEAKNESS

Strengths Part of the largest restaurant chain in the world Over 20,000 franchises around the world Brand leader in the UK Innovative range of pizzas under one roof Famous television advertising Food attracts people of various ranges from young to old. Sound financial situation and international turnover. offer full service and delivery service Pizza Hut sits on top of global full-service restaurant tree Weaknesses Loyal customers are feeling that the satisfaction of the pizzas is declining. While Novak said Pizza Huts expansion into China is going exceedingly well, there is battling problems in New Zealand and Australia. There are complex computer systems and internal conflicts from franchisees. There is a lack of an organic pizzas, which will limit the target market Pricing strategies

OPPORTUNITY AND THREATS

Opportunities New Pizzas with different crust sizes and flavours. Pizza Hut expands Indian market menu and looks to old favourite to bolster sales in the US Pizza Hut targets upscale products and a downscale consumer base Threat Rising competition undermines Pizza Hut as consumers go for greater convenience Rising cheese costs threaten margins Threat from Dominos pizza, also from Mc Donalds who have tried to introduce a new meal that is a Pizza called: McPizza.

Porters five forces model

Threat of new entrants

Bargaining power of suppliers

Competitive rivalry

Bargaining power of buyers

Threat of substitute products

 The threat of new entrants

Reduce the market share

Offer cheaper products Consumer shift from pizza hut to other

Bargaining power of suppliers

Supplier control the cost &supply of raw material Replace it with substitutes which are cheaper

Should order in bulk so price will be cheaper

Threat of substitutes It is very high as different substitutes are available.

 Bargaining power of buyers

Buyers have low power Because of few players in the industry

Degree of rivalry
It can either be low-level or high level Competition is high, though market is wide.

Must have aggressive advertisement and competitive

pricing.

Ansoff Matrix

Ansoff Matrix shows the main strategic options available to firms. The best option for Pizza hut is to introduce new products in existing market. So this firm should follow a product development strategy. This may involve substantial modification of or additions to its present product range, which in turn might require extensive research and development. So Pizza Hut can introduce a new Pizza with different toppings in order to widen their product range.

Also as Pizza Hut lead this market segment they have the money to indulge in research and development. We feel that Pizza Hut should not follow the strategy of diversification, this is a high risk strategy as it would be very difficult for them to find a completely different product as they are un experienced and have limited skills.

Promotional strategy

Promotional strategies
Building emotional bond with customers.
Bell rang by customer when they leave Providing entertainment Organizing contest Launching pizza with Indian flavor like tandori pizza

and tama tam Diversification of pizzas Coupon to purchase Using billboard on main stream

Factors for success

Offering value food.
Moving beyond metros. Aggressive marketing and tie-ups with local and

popular brands. Developing the local supply chain. Customising product offerings

Future plans
For Pizza Hut, India is: one of

the top 5 growth markets worldwide. Future plans India: presence in 35 cities by 2005, 55cities by 2009 The expansion programme will make Pizza Hut the fastest growing western restaurant chain in India.

Source of information
www.times100.com www.marketingteacher.com www.icmrindia.org