Pizza Hut | canopiz

Introduction

Pizza hut is an American restaurant chain and international franchise, known for pizza and side dishes. It is now corporately known as Pizza Hut, Inc. and is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company.

In 2015, the company had more than 6,000 Pizza Hut restaurant chains in the United States, and 5, 139 store locations in 94 countries and territories worldwide. Pizza Hut has a total of 11,139 branches worldwide ("Pizza Hut", 2016).

Approximately 270 stores are located in Australia (Pizza Hut, 2016).

Objectives

The marketing objective of Pizza Hut is either to increase sales by encouraging potential purchasers or stimulating repeat purchases or prompting instant purchase by providing special schemes or to create awareness about a new product offering by highlighting a new flavor or announcing price changes or demonstrating the product in use by depicting an experience (Marketing strategy of Pizza Hut , 2013).

Target Market

Pizza Hut targeted market defines them as a family product. Middle and high class family background people are the target market of Pizza Hut. Similarly, the people who are highly paid employees and businessmen are the target of Pizza Hut. But Pizza Hut focused a broad variety of customers such as targeting the people who are more active in spending money on non-essential things like eating. Pizza Hut is also offering meet free pizzas and salad for vegetarians so that people who don’t want to eat meat could enjoy the quality and best food of Pizza Hut (Khawaja, 2014).

Segmentation

Demographics

The age group of the customers is family oriented, such as the parlour offers a variety that to the needs of the family as a whole.

Occupation: Professionals, executives, house wives, studying individuals.

Psychographics

Activities:

Actively participate in social welfare causes, business matters, and members, and members of socially elite clubs, annual family vacations.

Life style:

Encouraging eating habits towards foreign foodstuff, for instance, likely to use cake mixes, imported cheese.

Media habits:

Regular readers of Magazines, Facebook and Newspapers.

Geographic

Geographic segmentation of Pizza Hut is worldwide. Pizza Hut is operating around 12000 pizza restaurants chains over 94 countries worldwide. Pizza Hut’s geographic segmentation is the developed cities, especially crowded places and centers.

Behavioristic

Pizza hut’s behavioral segment is the people who are more active in spending money on non-essential things like eating (Karachi, 2013).

Positioning

Pizza Hut has made many ways to position their products:

Advertisements in which they have differentiate their pizzas in quality, such as television, magazines, facebook, radio and newspaper
Uniqueness and taste
Varieties

Marketing strategy

Marketing strategy of Pizza Hut has always been to be first. One of their main strategies that they still follow today diversification of the products they offer. Pizza Hut is always adding something new to their menu, trying to reach new markets. Similarly, Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different. Moreover, locating stores and placing orders has never been easier for pizza hut loyal. With their virtual store kind website, Pizza Hut offers customers wide range of options to choose from menu and avail new offers. Now orders can also be placed through mobile phones (Hitesh, 2015).

The marketing mix – 7 P’s

Product

The pizzas features of Pizza Hut are high quality and are offered in sizeable portions, therefore their products have support them to maintain their customers and increase them. They also serve them nutrition plan for some specific people such as people with diabetes and pizzas with less cholesterol for overweight customers. Moreover, with growing competition from Pizza Capers, Crust and Domino’s Pizza (Customer satisfaction ratings, 2015), Pizza Hut has offered product quality, giving customers the efficient value for money and providing great customer service that is fast, friendly and warm.

Price

Pizza Hut adopts ‘price skimming’ strategy when setting a price of its products. This pricing strategy allows Pizza Hut to fix the price which is above its competitors and then slowly diminishes the prices below them. There are several advantages for this pricing strategy. Firstly, setting high price allows giving signal to customers that its products are excellent in quality and service offered in attractive. Moreover, this pricing strategy helps in segmenting the market because Pizza Hut can sell ‘extreme product’ to the customers who are willing to pay higher prices for the similar product (Rohra. H, 2015).

Place

Pizza Hut is present in most of A grade places across urban areas. This placement helps Pizza Hut maintain its premium positioning in the mind of people, because B grade town people will have to go to the A grade area to have a Pizza Hut pizza.

Three different distribution channels used by Pizza hut place its products to the market. The first distribution is delivery that customers can call Pizza Hut what they want and the order is delivered to the customers’ home.

The second distribution is for customers to dine-in. this means customers can go to the nearest Pizza HuThe final distribution is online ordering. This distribution is easier and faster channel for customers because it allows customers to see the entire menu, and order what they want directly.

source: www.pizzahut.com.uk

Promotion

Pizza Hut is known to be a smart promoter for its own products. Their promotions mostly focus on introduction of new products as well as to build brand equity. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion also distributed by mainly by mail, but also by fliers on college campuses around the country in order to reach the target market. They are also using facebook on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers.

These days Pizza Hut offers some enterprise discounts as well as provides discounts to corporate discounts. Pizza hut has partnered with several organizations to attract their customers. For example Pizza Hut partnered with NCAA sports, including they distribute free pizzas at competition and give particular discount certificate to their organization (team sports marketing).

People

The best part of Pizza Hut is people. Pizza Hut introduced a way of showing customer appreciation – the bell. Anyone who rings the bell on exiting from Pizza Hut is greeted with a loud greeting from all waiters in Pizza Hut. The Pizza Hut chain has the most polite and well-mannered people in the fast food industry (Marketing 91, n.d).

Physical evidence

The only reason Pizza Hut is able to demand premium pricing is because of its physical evidence and the ambiance. The cutlery of Pizza Hut is fantastic and it is an enjoyable experience to have pizza out of the pan right into customer’s plate. Moreover, the seats and tables are comfortably spaced giving people the complete experience of luxury dining (Marketing 91, n.d).

Process

Pizza hut serves only freshly made pizza and pastas. The process of Pizza Hut involves having the raw materials half prepared in the kitchens of Pizza Hut. Once the order received, the pizza is immediately prepared and served hot. In case of pizza hut delivery, Pizza Hut has gone a further length and introduced a hot mark on all their packaging for home delivery. Furthermore the outlet also promises 30 minutes delivery for which it has to maintain a slew of drivers who deliver the pizza (Marketing 91, n.d).