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Assignment

On
Marketing Strategy
Of Pizza Hut

Marketing Strategy of Pizza Hut


Course: Principles of Marketing

Submitted To:
Kashfia Ahmed
Senior Lecturer
Department of Business Administration
East West University
Dhaka 1212

Submitted By:
Jannatul Ferdous Shanta

ID # 2010-1-10-061

Md.Golam Mursalin

ID # 2009-1-10-308

Md. Yasir Arafat

ID # 2009-1-13- 034

Md.Atiqur Rahman Khan

ID # 2009-3-10- 014

Shakh Riad Adnan

ID # 2009-2-10-092

Submission Date: 02.08.2011

LETTER OF TRANSMITTAL
A u g u s t 0 2 , 2 0 11
K a s h f i a Ah m e d
Senior Lecturer
D e p a r t m e n t o f B u s i n e s s Ad m i n i s t r a t i o n
E a s t Wes t U n i v e r s i t y

S u b j e c t : S u b m i s s i o n o f As s i g n m e n t .

Dear Madam:
We a r e v e r y p l e a s e d t o s u b m i t t h i s a s s i g n m e n t o n P i z z a H u t a s y o u h a v e
a u t h o r i z e d u s t o i n t h i s s e m e s t e r.
We a r e h o n o r e d t o p r e p a r e t h i s a s s i g n m e n t u n d e r y o u r g u i d a n c e s i n c e i t
gave us the opportunity to know the current marketing status of Pizza
Hut and analyze its market condition.
We t r i e d

our level

comprehensive

as

best

to

possible.

accumulate
We

will

be

the

information

obliged

to

for you

provide

as

further

c l a r i f i c a t i o n o n t h i s r e p o r t w h e n e v e r n e c e s s a r y.
S i n c e r e l y You r s ,
Jannatul Ferdous Shanta

[ID # 2010-1-10-061]

________________

Md. Golam Mursalin

[ID # 2009-1-10-308]

________________

Yasir Arafat Areef

[ID # 2009-1-13-034]

________________

Shakh Riad Adnan

[ID # 2009-2-10-092]

_______________

Md. Atiqur Rahman Khan

[ID # 2009-3-10-014]

________________

Acknowledgement
We w o u l d l i k e t o e x p r e s s o u r g r a t i t u d e a n d i n d e b t e d n e s s t o o u r h o n o r a b l e
f a c u l t y, M s . K a s h f i a Ah m e d , S e n i o r L e c t u r e r, D e p a r t m e n t o f B u s i n e s s
A d m i n i s t r a t i o n , E a s t Wes t U n i v e r s i t y ( E W U ) . Wit h h e r i n e x h a u s t i b l e
guidance, valuable advice, continuous inspiration, constructive criticism
a n d g e n e r o s i t y s h e h e l p e d u s t o c a r r y o u t t h i s r e p o r t s u c c e s s f u l l y.
We w o u l d a l s o l i k e t o e x p r e s s o u r g r a t i t u d e t o t h e w e b s i t e t h a t h e l p e d u s
to gather all the necessary information.
F i n a l l y, w e w o u l d l i k e t o t h a n k t o a l l g r o u p m e m b e r s t h a t d i r e c t l y o r
indirectly

helped

us

to

provide

and

accumulate

information for the accomplishment of this assignment .

all

the

necessary

Table of Content
Executive Summary
Title

v
Page

1. Introduction..

2. Company Profile...

3. Market Segmentation

4. Target Marketing..

5. Market Positioning .

6. Positioning Map. .

7 Differentiations .

8. Choosing Right Competitive Advantage

9. Positioning Strategy..

10. Positioning Statement.

.9

11. Marketing Mix

12. Conclusion..

11

13. Reference

12

Executive Summary
Pizza Hut is one of the leading pizza restaurant companies in the world in terms of both
the number of outlets and the percentage of market share that it holds. Pizza Huts main
purposes are to provide foods and services of superior quality and value that improve
the lives of the world's consumers, now and for generations to come.
In this report we have discussed about how Pizza Hut uses marketing segmentation,
targeting and positioning strategy.
Pizza Hut believes a plentiful and leveraged diverse strategy is a competitive
advantage. Their goal is to grow that competitive edge by fostering an inclusive culture.
Diversity is a business strategy for Pizza Hut. It's an intentional choice that creates
sustainable competitive advantage. Here we have discussed how Pizza Hut plans and
uses diverse strategies to segment the market(Major segmentation variables for
consumer market, requirements for effective segmentation),

target each of the

segmented market(Evaluating and selecting market segmentation) and differentiation


and positioning (Positioning maps, possible value differentiation, choosing the right
competitive advantages, selecting an overall positioning strategy and developing a
positioning statement).Finally we have discussed about marketing mix.

Introduction
About Pizza Hut: A beginning
The journey began in 1958, when two college students and brothers from Wichita, USA, Frank and Dan
Carney, opened the first Pizza Hut restaurant at their hometown on June 15, 1958. After borrowing $600
from their mother, they purchased some second-hand equipment and rented a small building on a busy
intersection in Wichita. 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.

Many people ask how Pizza hut got its name. When Carneys were setting up their first
restaurant, the building had sign with room for just nine characters. They wanted to use
pizza in the name, which left room for a word with only three letters. A family member
suggested the building looked like a hut and Pizza Hut was born.
Pizza Hut Today:

Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also
the worlds largest pizza chain with more than 6,100 restaurants in the United States
and over 5,500 restaurants in 97 countries and territories around the world, employing

more than 300,000 people, serving 1.7 million pizzas everyday to more than seven
million customers.
Pizza Hut in Bangladesh:
Transom Foods Limited, a concern of Transom Group is the franchisee of Pizza hut in
Bangladesh. With a seating capacity of 220 persons, the first outlet of Pizza Hut opened
South Avenue, Gulshan-1 at 6th December. Currently there are three outlets, two in
Dhaka which are situated at Gulshan, Dhanmondi and Baily road other at Chittagong.
Very soon Pizza Hut is going to open another new outlet in in sylhet. All foods served in
the outlets in Bangladesh are 100% halal.

Company Profile
When it comes to tossing around dough, no one does it more often than Pizza Hut. The
unit of YUM! Brands operate the world's #1 pizza chain with more than 13,200 outlets in
about 90 countries worldwide. The chain serves a variety of pizza styles, including its
flagship Pan Pizza, as well as Thin n' Crispy, Stuffed Crust, Hand Tossed, and Sicilian.
Other menu items include pasta, salads, and sandwiches. Pizza Hut offers dine-in
service at its characteristic red-roofed restaurants, as well as carry-out and delivery
service. About 15% of the restaurants are company-operated, while the rest are
franchised. The world's largest fast food company, YUM! Brands run KFC and Taco Bell
in addition to Pizza Hut.

Contact Information
Address:

14841 Dallas Pkwy.


Dallas, TX 75254

Phone:

972-338-7700

Fax:

972-338-6869

Financial Highlights
Fiscal Year End:

December

Key People
President and Chief Concept Officer: Scott O. Bergren
COO: Patrick C. (Pat) Murtha
CFO: David Gibbs

Top Competitors
Domino's Pizza, Inc. (dpz)

Segmentation, Targeting and Positioning


Market Segmentation
Actually, market segmentation is the identification of the group of customers, who are
different from one another & need different products. Now a day, companies cant avoid
the process segmenting the market. So Pizza hut has also gone through it as a part of
business. Pizza hut has segmented the whole market into smaller group of buyers who
have differences in characteristics, needs or behaviors. As the different segments need
different products, Pizza hut have tried to deliver different products for their selected
segments. Four very important variables of market segmentation of Pizza hut are
discussed in following
T AB L E :
Vari abl es
Geographic

Segmentin
g unit
Country
City
Density

Explanation

Example

Bangladesh
In provincial city of
Bangladesh
Areas of cities where
selected segments
customers are dense

Dhaka,
Chittagong,
sylhet.
Gulshan, Dhanmondi,
Bayli Road of Dhaka
GEC
circle
at
Chittagong.

Family size

Many sizes of Pizza Small size, middle


they offered
size and big size or
family size.

Religion

Halal foods for all


religions, also offered
vegetarian and nonvegetarian both for
muslim and nonmuslim.
It is also segmented
by income

Demographic

income
Occupation

Vegetable
pizza,
chicken pizza, beef
pizza

Much expensive for


high income based
people.
Students
& Lunch packages
professional persons
who dont have time
to go home for meal
and who have ability
to purchase.

Psychograph
ic

Social
class
Personalit
y
Occasion

Beha vioral

Benefit

Upper middle &


upper class people
are customers
Some people prefer
to enjoy gorgeous
environment.
Sometimes
they
participate
many
occasion
and
delivered
the
service based on
occasion
Best quality food
and best service
they provide.

High prices of foods


Many
important
meeting and party
held in pizza hut.
Special decorations
in
occasions
like
Valentines Day,
In
Pahela Baisakh they
offered ILISH PIZZA
Decoration and serve
style of food. Neat
and clean place.

Tar g e t M a r k e t i n g
Segmenting the market reveals companys market segment business opportunities. The
company evaluates each market segments attractiveness and selects one or more of
the market segments to enter. Targeting marketing involves two steps: 1.Evaluating
Market Segment. 2. Selecting Market Segment.
Targeting market

Evaluating market
segmentation

Selecting market
segmentation

At first Pizza Hut list or find


there
segmentations
based
on
which
are
profitable for those.

Finally
they
selected
those
segmentations
which are profitable for
them.

For example: they dont


produce pizza in every
district in Bangladesh.

For example: they select


the segmentation based
on country, city, income,
occupation, social class
etc.

Differentiated Marketing: Pizza Huts statement is differentiated marketing as they


segment their products for different types of customer segment. They produce product
based on need of segment customers..
Example:
They make vegetable pizza for vegetarian and non-vegetable pizza for
non-vegetarian.
They give different sizes pizza which is based on peoples family size or
lifecycle.

1. Micro Marketing: Pizza hut also follow the statement of micro marketing.
They also provide individual services to customer.
Example:
They make pizza based on own recipe for individual customers.
Differentiation and Positioning:
Positioning Map: The positioning map between Pizza hut and Dominos is given
below
Price High

PIZZA HUT

*DOMINO S PIZZA

D i f f e r e n t i a t i o n : By creating product, service, channel, people & image


differentiation pizza hut reach the consumer touch point more effectively & efficiently in
comparing with their competitors in the competitive food sector. Pizza huts product
holds pretty a favorable position in the consumers mind.

1. Product Differentiation: Pizza hut has differentiated their product on reliability,


taste, and nutrition & quality. It always tries to serve their best. Quality of its product is
strictly maintained by the authority. Their main focus is quality of product.
2. Service Differentiation: Pizza hut has many brunches throughout the world as
well as Bangladesh. In those brunches they have a service goal that is to give every
customer a reason to return. They form an idea of customer mania to maintain the
standard of service.
3. Channel Differentiation: Dhaka is the most populated district of the country. Thats
why there are many outlet of pizza hut in Dhaka. It has good transportation facility for
the distribution, so that that outlet can get the product at proper time. They have
targeted Chittagong and Sylhet also. They have selected product according to those
characteristics. For an example- they import spicy ingredients and chicken from the
foreign country. By this it has made channel differentiation.
4. People Differentiation: Pizza hut has gained a strong competitive advantage
through people differentiation by hiring and training skilled, sincere, educated people.
Pizza hut is present all around the globe, on all countries, with around 42000 people
working in more than 100 countries.
5. Image Differentiation: Pizza hut logo differentiates from the other companies. For
that reason customer really identify them in the market, which is another advantages for
Pizza hut.

Choosing the Right Competitive Advantage:


Important: Pizza hut gives much importance to product quality rather than any other
feature.
Distinctive: Pizza hut doesnt follow other companys concept. They have different
logo, color and celebrity who promote their products.
Superior: Pizza hut gives priority in quality and taste for their products. But their main
focus is proper quality of product.
Preemptive: Its not easy to copy design of pizza hut even the taste of Pizza.
Affordable: pizza hut always tries to serve best within standard price.
Profitable: Pizza hut always tries to serve best within standard price and their business
is also profitable.

Selecting an Overall Positioning Strategy:


P RICE
MORE

MORE B
FOR MORE

THE SAME

MORE B

FOR
THE SAME P

LESS

MORE B
FOR LESS

Mor

BELLA
I TALIA

THE
B

SAME
FOR

LESS

LESS B
LESS P

The
same

FOR

DOMINOS
PIZZA

Less

B
e
n
e
f
i
t

Pizza Hut's Mission Statement /Positioning Statement


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 .
Marketing Mix: The marketing mix consists of everything the firm can do to
influence the demand for its product.
Product: Pizza hut has unique design, feature, brand name, services, and good quality
& products. They offer standard price but high quality. They mainly focus on quality.
They offer deserts beverage salad, pasta or pizza items mainly.
Price: Pizza hut charges price according to there costing. Though pizza hut is well trust
brand but they hardly use there brand name while pricing. For this reason it is quite
popular. Price of some goods is given below:

Brand

Measure

PRICE (TK)

Pizza , Pasta

Personal Pan Pizza/


Medium/ Family Size/

310/550/1020/=

Tea/ Coffee

Per cup

45/=

Salad

Per plate

200/250/300/350/=

Place: Pizza hut makes its product available to target consumers. They targeted
mainly populated area such as Dhaka & Chittagong, though their products are available
in every outlet of pizza hut. Their channel coverage, assortments, locations are very
well planned.
Promotion: Pizza hut is being promoted through advertisements, consumer promotion,
public relation, and point of sales.
Advertisements:
1. Television
2. Outdoor (bill boards, posters)
3. Print (newspapers and magazines)
4. Consumer promotion:
* Free offers Ex. Unlimited pizza in Ramadan.
* Free pizza at winning games

Public Relation: Pizza Hut arranges different kind of programs to create social
awareness.
Point of Sales: Sponsor on different programs

CONCLUSION

Pizza Hut topics is discussed in the preceding chapters. It becomes very clear to us
that pizza huts products holds a favorable position in the consumers mind. Its
tactfully promoting its product in Bangladesh. Pizza Hut has done considerable
amount of research to analyze the consumer profile of Bangladeshi market. At
present it is trying to attract the attention of younger generation, family, etc. Pizza
hut is not facing hard competition from other brands. Pizza hut is trying to position
itself in the higher end of Bangladeshi market. The way Pizza hut is trying to
position and promote itself is very logical and we can see only success in the days
to come.

REFERENCE

BOOK (Principles of Marketing)

HTTP:// www.pizzahutbd.com

HTTP:// www.wikipidia.com

HTTP :// www.google.com

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