Pizza Hut Marktig Strategy

2 February 2017

The service of the company includes delivery and carry –out locations and kiosks in around 100 countries. Pizza Hut is one of the flagship brands of yum which has owned 100% shares of pizza hut UK ltd. (pizza hut franchisee) Pizza Hut ltd is a multinational fast-food chain which has been built a reputation of excellence in the past 40 years; it has become the fast food chain industry expert and has earned consumers expectation. As a leading pizza company, it requires innovation to make it profitable and productive. In addition it entails the best services and products to its customs.

The excellent entrepreneurship, growth and leadership have characterized Pizza Hut’s business since 1985 when it was first open. Through the strength of its business strategy, its culture, its franchises, Pizza Hut expects to be more successful in the future. Pizza Hut mission statement ? Object: To be PEARLS ? Passion: doing everything excellently ? Execute: performing positive energy and urgency ? Accountable: Growth of customer satisfaction and profitability must be accountable ? Recognized: Achievement must be organized. ? Listen: listen to customers feedback are more important.

Pizza Hut Marktig Strategy Essay Example

Company Objectives: Pizza Hut’s main company objectives are to be the best pizza provider in the UK and to gain the top market position. There are another three objectives which are: ? Keep and increase a high quality product by providing its value and good service. ? Introducing new improvement of restaurants’ facilities. ? Use “best practice” approach, focus on staff as a resource to maintain” high performance” which can help the company to increase productivity, provide customer service and gain their market share.

Providing helpful and friendly services to the customers by the well-trained staff. ttp://www. pizzahutfranchise. co. uk/index. html Methodology The secondary data has been used to analyze the information of first part of my assignment. I used website and internet resources and text books for collecting information. I also did some primary research in my recommendation: I went to the supermarket such as Tesco and Sainsbury, and did a little bit research on the chilled pizza which sold in the supermarket, it has been found that there is good opportunity for pizza hut to launch their product to the supermarket to expand the pizza market .

According to my research, pricing and promotion has been targeted.  Marketing Mix The marketing mix for pizza hut fast food line is formed by traditional elements includes product, price, place and promotion Product price List price, Discounts structure Brand name, Packaging New product development Promotion place Adevertising, promotion Location, Customer service, PR,sponsorship. Distribution. People physical evidence Selection,Trainning,Motivation .

Layout, ease of access (Figure1 Marketing Mix of Pizza hut) Product In UK pizza hut serves different types of pizzas with a variety of toppings for meat lovers, pepperoni lover, vegetarian and cheese lovers. There are four different basses for customer to choose: pan pizza: it is pizza hut’s signature product with thick pan –baked. Thin Italian pizza: This is an Italia style pizza which is thin and light. Cheese bite and stuffed crust pizza: a ring of melted cheese backed into the doughy bites or crust with garlic herb butter. Stuff Crust pizza is a unique product of pizza hut .

It has been successful introduced to the market since it has been launched. Customers can add different toppings as they want. A range of other food is provided such as free unlimited salad with any main course, pastas. Considering the health requirement, pizza hut provide the food nutrition on the menu for customers to understand what types of food they can choose according to their health condition. Besides from the exit products, pizza hut also keep providing new food to gain the competitive advantage such as pasta and salad.

According to the large of competitions, such as domino, pizza express. Pizza Hut offers an affordable price to everyone. Pizza hut uses a range of strategies to gain market shares. For example, pizza hut offers free salad with any main course, or providing free of eating for kids. This bundle strategy adds value to their customers. Place Pizza hut restaurant normally locates on retail or Leisure Park with a large parking area . There is also some delivery stores in the local areas for take away and delivery only.

Three Different methods of direct selling to customers used by pizza hut: 1. pizza hut home delivery: customers make a call to the nearest store to order pizza, to delivery to their place. 2, full service restaurants is offered to t customers who want to dine in to enjoy the equipment and fresh food, or to take out. 3onling-odering. customer can use the coupon voucher easily. They go online, look at the menu, place the order and pay with the credit card. Promotion Pizza hut uses promotion strategy to introduce a new or exit product in order to change shot-term behavior customers.

The main promotion strategies used by pizza hut are: Above-the-line: pizza hut uses traditional advertising route such as television, media and radio Below-the-line: Pizza hut also send the leaflet or discount voucher to customers’ house. IT helps to attract and keep their customers to go back again. Pizza hut also uses letter or email to inform their customers about the new products and special offers. It is a good way to create a relationship with customer and also can be used to get feedback from the customers to do researches and promotions.

PR and sponsorship: it shows that pizza hut understands and concerns about the relationship between the company and the public. For example, pizza hut used its relationship with ISS (International Space Station) to be the first company who deliveries the first pizza to the space and eaten by people in space, it emphasizes the delivery service that whenever they want, whatever they want and wherever they want, even in the space, there will be pizza hut pizza. ( http://www. spaceref. com/news/viewpr. html? pid=4921) Pizza hut had a sponsor with channel 4 for Simpsons.

In 2005, there is great success in introducing brand awareness of pizza hut’s home delivery sector by having a Sponsorship with Simpsons. (http://www. marketingweek. co. uk/channel-4-seeks-new-sponsor-for-simpsons-as-pizza-hut-pulls-out/2004819. article). Pizza hut currently supports two charities which are “Starlight” and “World Food Programme”. This also can help pizza hut to build up a good relation with worldwide. Personal: Competitive footsteps have been followed by Pizza. People can design their own favorite pizza by choosing the base and toppings.

They have strong financial support by YUM (pizza hut Franchise Company). They have highly motivated staff to lead the successful of the organization. The big strength is that they do not only have full service restaurants but also delivery stores. Most of its competitors have either restaurants or take away stores. Regarding the point made above, it can be concluded that pizza hut targets on a wide segmentation. Weaknesses Pizza Hut has some weaknesses in terms of high cost on the products and services. One of the issues is the conflict between profit making and maintaining the competitiveness of Pizza Hut.

Due to the external pressure from Dominos Ltd and lots of other companies which offer free pizza delivery services. Pizza Hut is pressurized into keeping up the free services with the others, meanwhile losing out on the opportunities of making a profit gain on it. Moreover, the computerized Customer Service Centers was too expensive. These are some weakness on the advertising strategy, according to the research (what research? state the title of research and reference! ) there is a lack of advertisement on the newspaper; this may suggests that Pizza Hut might lost that particular group of target audience.

Opportunities: On the Pizza Hut website, they introduce a range of fresh salad which is free of charge with every main course to attract people who want to have some health food. According to the history of pizza hut market growth, the company is still growing rapidly worldwide by their good management, technical and financial resources. Pizza Hut company is acquiring for the partners who can assist stabilizing the growth as well as attaining more strategies and innovations to maintain the long term survival of the company. ( http://www. pizzahutfranchise. co. uk/html/franchisee_profile. tml)

The on-line ordering system Pizza Hut provides can be seen as an opportunity as it offers convenience to customers. Treats Pizza Hut faces big treats from competitors such as Domino’s. Although Pizza Hut is on the top of the pizza chain, Domino’s intend to gain the marketleadership. http://adage. com/article/mediaworks/pizza-hut-domino-s-media-strategy/139027/ Due to the inflation, the cost of ingredients such as cheese and raw material will be increased. Most of pizza restaurants offer free delivery, and frequent promotional deals offering large pizzas at reduced prices.

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