Assignment on

Branding strategies of pizza

hut

Submitted to: Submitted By:

Dr. Vikram Sandhu, Rajni

CBM Deptt. MBA-IV Sem(A)

GNDU 890808
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 Silver’s under its umbrella. Pizza Hut is the world’s
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 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.-based restaurants,
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 of Pizza hut as a leading food
Chain:
 1958 :Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.
 1972: 1000 restaurants are open throughout the USA.
 1973: Pizza Hut went international with restaurants in Japan, Canada &
England.
 1975: The first UK Pizza Hut opened in Islington, London.
 1977: PepsiCo bought Pizza Hut.
 1980: Pan Pizza was introduced.
 1982: The UK joint venture started between PepsiCo and Whitbread.
 1984: Over 50 restaurants so far in the UK.
 1986: By now, there were 100 restaurants in the UK and 5000
worldwide.
 1987: An average of one restaurant opened each week in the UK.
 1988: The UK's First Delivery Unit was opened in Kingsbury, London.
 1992:There were 9,000 restaurants in 84 countries.
 1993: There were 300 restaurants and delivery stores in the UK.
 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 World.
Tricon became the partner company with Whitbread.
 1999 :Pizza Hut had over 400 restaurants, employing 14000 people.
 2002: Tricon Global became YUM! Brands Inc.
 2006: Whitbread sold their share of the joint venture to Yum! Brands
Inc.
Pizza Hut UK Ltd was now 100% owned by Yum!
 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. It’s
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 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. In
Pizza 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.
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 customer’s face.”

MENU AT PIZZA HUT

Environment analysis
Now a day’s technology is improving so as baking and heating ovens will be of
new and efficient technology and will provide efficient service. Due to new
technology 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

 Strengths: Pizza Hut is the market leader

in providing different products of pizzas 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
 Weakness: the fact that Pizza Hut does have a restaurant to run is also
a 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.

 Opportunities: New markets can be explored and new opportunities they

can 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

 Threats: In the UK, Pizza Hut has been criticized for the high salt content of
its 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.
Positioning
Product
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 products
are 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.
Product Mix
Depth:
Co Branding
Pizza hut-mastered the pull strategy
Promotion
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 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 it’s 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.
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?

It’s 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.

There’s 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, they’re also introducing another
vocabulary word with Pizza Hut, which is ‘The Hut.’ That ties in nicely with
(today’s) 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.

Suggestions
 Reduce the menu costs; it is way too expensive for the middle
class Indian.
 Middle class forms the maximum population of india and hence
reducing the costs of pizza can increase the elasticity of
demand greatly.
 Invariably there are no discounts, or discounts if offered are
very less. The pizza hut should offer more discounts to tap
more customers.
 Their reach is very less as compared to dominos as pizza hut
have only premium restaurants} which deprives far- off
customers from having pizza huts experience. Hence they
should increase their presence.