North South University

Mkt - 412
Assignment on Service Redesign
Pizza Hut Delivery
Submitted By
Kazi Sazidul Hasan
ID: 102 0115 030
Sec: 3

Submitted to
Ishrat Jahan Synthia
Lceturer
School of Business,
North South University

Date of Submission
24.08.2013

Table of Contents
Section

Page No

1. Background of Pizza Hut

2. Background of PHD

3. Promises of PHD

4. Process of service redesign

5. Positioning

6. Target Market

7. Marketing mix

8. Rivals of PHD

9. Benefits for the Consumers

10. Advantages for PHD

11. Recommendations

12. Reference List

PIZZA HUT DELIVERY

Background of Pizza Hut in Bangladesh:
Pizza Hut, the first International Chain Restaurant in Bangladesh, opened its flagship restaurant
in 2003 at Gulshan in Dhaka. Transcom introduced Pizza hut in Bangladesh. From the day of its
launching Pizza Hut remains the acknowledged leader of the Pizza Industry, evident from the
continuous crowds the restaurant successfully draws in. Pizza Hut has over 12,000 outlets across
100 countries. Following its grand success in Dhaka, the Chittagong outlet was opened in

September 2005. The third Pizza Hut restaurant was launched in Dhanmondi, Dhaka in January
2008 and yet another in Baily road.
Many pizza chains like pizza inn, pizzaria bellavita, dominnos pizza decided to diversify and
offer new non-pizza items such as b-b-q pizza, bacon pizza and Italian cheese bread. The current
trend in pizza chains today is the same. They all try to come up with some newer, bigger, better,
pizza for a low price. Offering special promotions and new pizza variations are popular today as
well. For example, chicken is now a common topping found on pizzas.
In the past, Pizza Hut has always had the first mover advantage. Their marketing strategy in the
past has always been to be first. One of their main strategies 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. In 1993, 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 NewYorker," trying to bring
the famous New York style pizza to the whole country.
Lastly, Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began
two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back
program. These were implemented to make sure their customers were happy, and always wanted
to return. In our plan, we will first give a situation analysis of current and relevant environmental
conditions that affect our plan. Next, we will give a brief analysis of the current fast food
industry, and any trends or changes that might occur in the future.

Pizza Hut is the leader in innovative products and this new product that we are proposing will
surely be a success, given Pizza Huts track record. With high competition from the other top
firms in the industry, the introduction of a new product is necessary to keep one step ahead of the
competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger
than the competitors at twenty-inches and have twice the toppings that the competitors have.
Pizza Hut will market this product alongside other extreme products such as Mountain Dew, to
help Pizza Hut capture part of this new segment of the market. The selection of pizza's offered by
the competition have been significantly less creative than that of Pizza Hut in the past and Pizza
Huts reputation of offering high quality, new products will allow this new product to move into
the market as other new offerings have in the past. With the introduction of a new product, one of
our main objectives is to create recognition for our product. Our goal is to reach 85% recognition
of the new product in our target market.

Pizza Hut Delivery in Bangladesh

Pizza Hut has introduced its international home delivery concept the Pizza Hut delivery (PHD)
in Bangladesh. PHD stands for hot and tasty Pizzas delivered at your doorstep. For first stage,
Pizza Hut has presented this service to limited areas extending from its Bashundhara outlet to
places like Baridhara, Baridhara DOHS, Notun Bazar, Sahjadpur and areas within these
precincts. Other items include baked pastas, garlic breads, cheese garlic breads, garlic bread
exotica chocolate truffle cake and choco mousse. The restaurant also offers superb deals like
PAN4ALL with 4 Pizzas in one box, family fun meals and special coupons. Their tag line is We
deliver great Pizzas to your door steps! They also opened outlet at Mirpur and Banani to grab
the market.

Promises of PHD:

Inspiring good times.

Creating new traditions
Involving friendships
Electric energy
Up-to-date style

Process of service Design:

Segmentation, Targeting, Positioning Strategies of PHD:
Segmentation is identifying areas where people have high disposable income. The Segments
Pizza Hut Delivery System is working on youth, Dual Career Families.
Geographic segmentation Localize products, advertising, promotion and sales efforts to fit
the needs of the individual areas and cities
Psychographic segmentation Dividing the market into different groups based on social class,
life style or personality characteristics e.g. Choosing Prices for Products as 499 or 699

Positioning:
Pizza hut has done their positioning in the target market by keeping in view two basic factors:
Quality
Frequency
Worldwide and in Bangladesh, Pizza Hut delivery has come to become synonymous with the
Best pizzas under one roof. The Crew members customer mania which makes Customers
Unique dining experience.

Target Market:
Pizza Hut Delivery campaign targets younger consumers. Target market is Middle Level &
Upper Middle Class. College graduates spending habits of college freshmen also indicates a
high percentage of money being spent on non-essential items.

Marketing Mix of PHD:

Product: Salads, Pizza, Pasta. Desert and beverage.
Price: PHD has successfully used the high/low pricing strategy when setting the retail price
of its products. Pan Pizzas start at just taka 250.

 Promotion: Advertising through bill Boards , leaflets.

Place: The ambience is vibrant and casual which appeals to young people. The seats, couches
are comfortable to sit. Having 2 to3 outlets in Dhaka City. Nice music is being played in the
background. Restaurant Manager: Delivery Crew Member, Other Staff
Physical Evidence: Cleanliness, speed, decoration, environment, quality and transparency.
Process: Ready to cook frozen Initiator Processing food material Delivery to Serving
Counter Customer

Rivals of PHD:
The most common rival of PHD is Pizzaeria Bellavita because after introducing PHD they also
started home delivery service but their workforce is less than PHD. So comparatively PHD is
ahead of them.

Benefits for the consumers:

Pizza Hut phone number for the benefit of the customers to enquire about the delivery
service, timings and other details.
The customers can make use of the services offered by Pizza Hut delivery by dialing
the Pizza Hut phone number for ordering pizza. Pizza Hut promises to delivery in 30
minutes.

Advantages for the Pizza Hut:

Grabbing a large number of segments.
Generate more revenue.
Gaining Completive advantage.

 PHD may be one of the companys promotional tools.

Recommendations:

They should open their service for 24*7. By doing this they can earn more revenue

because most of us sometimes wish to eat pizza at mid night.

They should open more outlets of PHD in Dhaka city and Chittagong.
They should manage parking space for their PHD outlets because sometime people go to
the PHD for eating pizza.

References:

http://voices.yahoo.com/pizza-hut-existing-marketing-mix-company-142650.html
http://www.slideshare.net/Rohit246/final-pizza-hut-2010-rohit
http://www.thedrum.com/news/2011/02/18/pizza-hut-delivery-campaign-targets-youngerconsumers
https://www.facebook.com/PHDBangladesh/photos_stream