Pizza Hut Fast Food Company

Executive Summary

We are now in 21st Century. We can objectively inspect. What a new generation is likely to mean for business and business policy of PIZZA HUT.This report covers the profile, future and passion, SWOT analyses and recommendations of PIZZA Hut. We have tried our best to provide our project information about this organization regarding PIZZA HUT’s Mission statement, Goals, Planning their Organization and finally the information consuming to our subject Business Policy. We hope this project report will satisfy all of requirements in study guide.

Outlook Profile

Pizza is an Italian dish. PIZZA HUT Founded in 1986. PIZZA HUT is one of the flagship brands of YUM Brands which in itself is a brand which handles brands like Long John Silver’s, A & W, Taco Bell and KFC under its umbrella brand setup. Pizza Hut is offering products such as signature pizzas, beverages, desserts, appetizers and pasta.Pizza Hut has been operating in the pizza market by realizing all economies of scale in promotion, manufacturing and distribution facilities.

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Pizza Hut quite aggressively fights back by bringing better innovations or more competitive prices in product category. In simple words, Pizza Hut takes all possible measures to defend its leadership position in the market.The futureTheir plan are like their Pizzas ” BIG! They want more people to enjoy PIZZA HUTs. They want to open more PIZZA HUTs. They want to exploit every delivery opportunity.Their PassionTo be the best hospitality business.. Anywhere in the world The best branded PIZZA HUT restaurants.

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The best delivery. The best meals, service assets and value the best for families.So how will PIZZA HUT know when they are the best?PIZZA HUT have set some milestones for the journey, Against which to measure progress: PIZZA HUT Bold Goals 5 million Smiles every week.

Pizza Hut offers a variety of different Italian style products these range from Pizza to Pasta to Garlic Bread. They have a number of different types of pizza topping/base; their bases are quite diverse including deep pan, stuffed crust, Italian. Pizza Hut usually has a promotional base recent examples include, The Quad and The Twister. Their selection of topping cater for everyone’s own taste with its range including meaty, cheesy, fishy and vegetarian styles of topping there should be something for everyone, and if you don’t like any of them you can design your own topping. There range also includes pasta, salad and a selection of puddings. The pasta selection has the usual Lasagne, Spaghetti Bolognese and pasta in a cheese/meat sauce. Their salad range includes chopped up vegetables and other usual salad pieces. Their puddings selection includes cake, ice creams and sundaes.

The quality of their products though not as high as 5* restaurants is not as low as its main competitors such as MacDonald’s or Burger King. As the quality is higher so is the price with it sometimes costing twice as much MacDonald’s and Burger King. The main differences between Pizza Hut and its competitors (e.g. MacDonald’s) is that it has an image of a proper restaurant though really it is fast food dressed up as a restaurant, and its more aimed at families than the teenage market that MacDonald’s target. Pizza Hut tailors certain products for specific market segments. For example The Ice Cream Factory is obviously marketed at the children’s segment of the market. The recent promotion The Quad is aimed at families/groups of friends who can’t decide what to eat.

Internal Analysis

Strengths of PIZZA HUT

Company brand name has biggest strength in the world wide. Quick Delivery service and fully service restaurant network They offer various range of pizza to their customers Good Quality Foods for affordable prices They have well organized Marketing stagiestPizza hut has a Premium situating in customer’s mind. The promotions and brand value of pizza hut is superior to competitors. Another strength of Pizza hut is the range of Italian food that it has. The pizza and pasta range is excellent and Pizza hut delivers on its guarantee of having an excellent Italian meal. The food is of high quality and so is the ambiance in any Pizza hut restaurant. Because of its higher prices, it also gets good margins thereby giving Pizza hut an excellent sustainable advantage. The brand has an excellent presence online and offline with Pizza hut delivery giving home delivery and Pizza hut also having an online ordering system for its pizza.

Weakness of PIZZA HUT

Limited for only Town areas Less parking Facilities Good quality pizzas and services based on high prices Less appetizers range High overhead cost due to restaurant maintainsMajor weakness of pizza hut is that while keeping up its brand image, pizza hut is losing the turnover that it can generate by being available in towns. If not the fast food chain, than at least Pizza hut delivery, which is pizza huts home delivery franchise should be available in such places. This will ensure that Pizza hut has a high turnover and at the meantime it is present far and wide. Another weakness of Pizza hut is that the taste of their pizzas is there since ages and customer’s ongoing surveys have demonstrated that clients are not happy with a similar old pizza taste and there is more interest in wider range of pizzas. Thus pizza hut needs to keep inventing.

External Analysis

Opportunities of PIZZA HUT

They can place New online ordering system They can improve Call center operations for very respond They can offer discounts, and raffle draws to their regular clients They can keep their restaurants very attractivelyThe best open door for pizza hut is further extension of the food range. I for one am hanging tight for a cheesy type pizza being served in Pizza hut. This will give clients the cheesy assortment that they need. A similar system has done some amazing things for McDonald’s and Domino’s. Another open door is to spread out in select B towns and make their tasty pizza accessible in these spots. Sometime Pizza hut needs to do that. Same ways, if not the feasting knowledge, Pizza hut delivery can be begun so Pizza hut stays in rivalry with Dominos.

Threats of PIZZA HUT

Increase price of cheese Increase Many competitors in Pizza industry Have to face with other international level restaurants likewise Mc Donald ,Dominos and KFC Local Restaurants offer various of pizzas for less priceDominos is a solitary real risk to pizza hut when worried about pizza or Italian meals. Dominos does not have an astounding food assortment like pizza hut yet Dominos is available in many spots where Pizza hut isn’t. Another danger is the wide choices of cooking styles which a client has accessible today through different sustenance franchisee. McDonald KFC and others are roundabout contenders who remove clients normally from pizza hut. Rising wellbeing concern and individuals being more wellness concerned may likewise cause a drop in pizza utilization.

Pizza Huts Pricing Strategies

Pizza Company’s Price for a Large Pizza

Pizza

Pizza Hut

Pizza Express

Domino’s Pizza

Perfect Pizza

Margherita

�7.99

�4.80p(small)

�9.00

�9.99

Hawaiian

�8.99

�12.39

Farmhouse

�8.99

�6.10p(small)

�12.05

�12.39

Meat Feast

�10.99

�6.95p(small)

�13.05

�13.99

Pepperoni

�10.99

�12.05

�13.99

Vegetarian

�9.99

�6.90p(small)

�12.55

�13.39

Spicy

�9.99

�7.40p(small)

�12.05

�13.99

I think Pizza Hut uses competitive pricing, usually undercutting their competition by 3-4 pounds. I think their prices are also cost based because if they were market based they could up the prices of their products by 2 pounds and still undercut the competition. This does mean though that the quality of the products is probably lower than their competitors.

Pizza Hut use several marketing strategies, Pizza Hut uses pricing to attract customers away from their competitors, for example when they run promotion such as the current one with blockbuster. They also use penetration pricing; an example of this is that their prices are about 3-4 pounds cheaper then their competition.

How Pizza Hut gets Products to its Customers

This is a map showing where the Pizza Hut in Chichester is situated.

Pizza Hut’s location is suitable as it accessed easily from the dual carriageway, if it were situated in the city centre it would be harder to find to find somewhere park, also there might be more traffic. It is easily recognisable from the carriage way and it looks easily recognisable as you can see the neon lights spelling out Pizza Hut and it looks quite enticing as you can see all the people eating from the road.

Another way that Pizza Hut attracts customers is its wide range of facilities. The Pizza Hut in Chichester has a free car park and toilets/baby changing room, these attract people because they make it easier for families (Pizza Huts main target group) to have a good time with these facilities at hand.

Pizza Hut is decorated in quite warm colours like red or orange this makes it more inviting and welcoming, the walls also contain lots of pictures that are quite modern and abstract, Having these colours on the walls make it seem more homely and give more of a proper restaurant feel though it is really a fast food restaurant I think this attracts families as it is quite homely whilst still being a restaurant. The pictures emulate this even more and attract a younger consumer as they make it trendier. The layout of Pizza Hut is quite affective as it allows the costumers and waiters to have access to the tables easily the basic layout is that of several tables in the middle then a ring surrounding them. This layout encourages people to spend as they always in view of the ice cream factory and salad bar also as there is a window into the kitchen you can always see something being cooked, seeing and smelling food all around will make people spend more. The Pizza Hut in Chichester offers both ‘eat-in’ and ‘take-away’, you can order take-away by phoning ahead and going to collect, ordering online and going to collect or ordering and waiting at Pizza Hut.

Promotion Methods used by Pizza Hut

Another media that Pizza Hut uses to advertise its product is T.V, their most recent advertisement that I have seen is the twisted crust pizza advert where in line with pizza base everything was all twisted around and upside down. Another advertisement for Pizza Hut stars Pamela Anderson she says,” I love coming here it’s the only I don’t get hit on”, therefore e suggesting that Pizza Huts food is better than Pamela Anderson. They also Their website to advertise their products and promotions.

The Pizza Hut brand is used to promote their products by using the name Pizza Hut in their advertisements, for instance instead of saying,” try our new stuffed crust pizza”, they say ” try Pizza Huts new stuffed crust pizza” , the brand name is used to grab the attention of the audience, also the Pizza Hut logo is always visible so you immediately know what the advert is for and your attention is grabbed.

Pizza Hut Survey

1. Are you male or female?

A. Male

B. Female

2. What is your age range?

A. 11-12

B. 13-14

C. 15-16

3. What is your monthly income?

A. �0-10

B. �11-20

C. �21-30

D. �31-50

E. �51+

4. Which of these Pizza restaurants do you prefer?

A. Pizza Hut

B. Pizza Express

C. Dominoes Pizza

D. Perfect Pizza

5. Do you think the quality of their food is?

A. Very Good

B. Good

C. Average

D. Poor

E. Very Poor

6. Do you think their range of toppings is?

A. Extensive

B. Average

C. Could be better

D. Poor

7. How much would you be willing to pay for a medium margarita?

A. �1-3

B. �4-6

C. �7-9

D. �10+

8. Do you think Pizza Hut is good value for money?

A. Yes

B. No

9. Would special offers tempt you to buy at Pizza Hut?

A. Yes

B. No

10.If you go to Pizza Hut do you usually:

A. Eat in

B. Take out

11. Do you think their advertising coverage is?

A. Extensive

B. Good

C. Could be better

D. Poor

12. Do you feel that you are fully informed about the latest Pizza Hut offers?

A. Yes

B. No

13. Have you ever visited the Pizza Hut website www.pizzahut.co.uk?

A. Yes

B. No

Task 3-Present and Analyse your Finding

Results Table

This first results table shows how many people gave answers for each question.

Question

A

B

C

D

E

1

42

38

N/A

N/A

N/A

2

20

22

38

N/A

N/A

3

9

29

12

12

18

4

32

27

9

12

N/A

5

23

32

19

5

1

6

36

35

8

1

N/A

7

18

24

26

12

N/A

8

51

29

N/A

N/A

N/A

9

51

29

N/A

N/A

N/A

10

57

23

N/A

N/A

N/A

11

15

22

23

20

N/A

12

26

54

N/A

N/A

N/A

13

27

53

N/A

N/A

N/A

This results table shows the percentage of answers for each question.

Question

A

B

C

D

E

1

52.5%

47.5%

N/A

N/A

N/A

2

25%

27.5%

47.5%

N/A

N/A

3

11.25%

36.25%

15%

15%

22.5%

4

40%

33.75%

11.2%

15%

N/A

5

28.75%

40%

23.75%

6.25%

1.25%

6

45%

43.75%

10%

1.25%

N/A

7

22.5%

30%

32.5%

15%

N/A

8

63.75%

35.25%

N/A

N/A

N/A

9

63.75%

35.25%

N/A

N/A

N/A

10

71.25%

28.75%

N/A

N/A

N/A

11

18.75%

26.25%

30%

25%

N/A

12

32.5%

67.5%

N/A

N/A

N/A

13

33.75%

66.25%

N/A

N/A

N/A

Important Findings

This is quite an important finding because it shows that Pizza Hut is the most popular pizza restaurant among teenagers and this is an age group that Pizza Hut doesn’t even specifically target. I think this may be because the prices are quite a lot cheaper than their main competitors as shown in the table of prices in Task 1.

These results show the extent of Pizza Hut’s marketing Campaign’s. The majority of people think that Pizza Hut’s marketing could be better. 2/3 of people also don’t think they are informed fully informed of Pizza Huts latest offers.

Task 4-Conclusions and Recommendations

From the research I have collected I can make a number of recommendations to Pizza Hut as to what parts of their marketing strategy are succeeding and which need to be improved.

Pizza Huts pricing strategies are the part of their marketing mix that is working the most successfully. From our survey I can gather that the price of Pizza Huts Pizza’s is at what it should be for their quality and to undercut their rivals. Though we can also say from our research that Pizza Hut is over priced in other areas e.g. salads, pasta, drinks etc. To improve this area of their marketing mix they could try reducing the price of other products not Pizza. Though doing this may lose some profits in the short term, in the long term an increase in customers should occur increasing Pizza Huts profits.

Currently Pizza Hut’s Products are good; we found that only 7% of the people we surveyed thought that the quality of Pizza Huts products were poor or very poor, only one 1% of the people we surveyed thought that Pizza Huts range of toppings was poor. Pizza Huts products are very good at the moment and the only way I can see from our research to improve their products is to extend the life cycle of some of their products and some of their limited time only products, e.g. The Twister and The Sicilian, from my experiences by the time I’ve heard about these promotions they’ve ended. They could also try targeting other segments of the market, their current target group are families, they target families by having a children’s menu and low prices, nice atmosphere etc. They could try targeting other segments like teenagers or twenty-something’s, they could do this by offering student discounts or running promotions that specifically target these age groups. To improve the products area of their marketing mix they should try to extend the life cycle of some of their products and try targeting other market groups.

The way Pizza Hut gets its products to its customer is also working well. Their restaurants are in suitable locations offering easy access, and their take-away service is good. The ways I can see of to improve this from our research are to offer special take-away only offers to improve numbers of people, also to increase numbers of visitors to their website they could use an internet ordering service and give Internet only offers. Another way of improvement would be to increase the size of some of the busier restaurants to allow more customers therefore increasing income.

To improve this area they should introduce take away/internet only offers and increase size of some of the busiest restaurants. Doing this would increase numbers using the take away service and ordering over the Internet at little cost. Increasing the size of the restaurants would be expensive but in the long run would increase customers and profits.

The last segment of their marketing mix is marketing. This part of their marketing mix is the least successful one. We have found that 67% of people think that they aren’t fully informed about Pizza Huts latest promotions and the majority of people think Pizza Huts advertising could be better or poor. Pizza Hut could improve their advertising by using clearer advertising and putting more adverts on T.V, the Internet, on the street etc. When I saw the advert for their twister promotion I didn’t understand what it meant by twisted crust, as there was no picture of the Pizza itself. Increasing the amount of advertising would mean people were better informed of Pizza Huts latest offers. To improve Pizza Huts marketing they should use clearer advertising and more of it. Though doing this could prove costly it would inform more people of Pizza huts latest promotions.

Priorities

The most important thing that needs to be improved is the promotions part of Pizza Hut, which is pretty bad at the moment. This would be a long-term measure because they would need to make sure that they continually kept their marketing up to date. The next most important is to reduce the price of their salads, pasta and rinks etc. This is a long-term measure because it would a long time for an improvement to be seen. Next would be to increase the size of some of their restaurants and introduce take-away/Internet special offers. This would be a short-term measure because in improvement in takeaways and customers should appear straight away. The least important change would be to target other market groups, this isn’t very important because they are already very successful with their current market segment. This would be a long term measure because it would take a while for other these people to go to Pizza Hut.

Actions and Recommendation

  • Mission Statement:We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, Ill be back! We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.
  • Specific Goals: Our goal is reach 85% recognition of the new product in our target market. As with all business, the most important goal of a company is to increase revenue and profits. Customer satisfaction is for most. Practice what we preach: integrity, ethics and open communication.
  • Actions and Recommendation:There are few things, which pizza hut have to follow increase their customer base and rising sales and being profitable company in the market. Pizza hut must move with more TV commercial advertisements. It should advertise on right time when their target customer market watching television.

Advertisement should make an attractively which they shown quality of the pizza, test and tell how is pizzas nutrition’s and healthy meals they are providing Pizza Hut Approach young generation by advertising using social Medias like Facebook promotion, Instagram. They can use attractive video clips ,customer feedbacks and records of service excellence Pizza hut should give discounts, Membership cards and raffle draws to their regular customers once every purchasing. And have to send their new products and deals via text massages to customer’s mobile .There for customer comes to the pizza hut once a week or after two weeks.

Pizza Hut should install Stalls in International schools and Universities. Should give pizzas for students on discount prices. Pizza Hut should give sponsorships for games held in country. Like Cricket matches, athletics games and other cyber competition games. There for they will gain publicity and good reputation toward their customers Pizza Hut should reduce their prices equal to other competitors. Or else increase quality and taste than others. There for they can tell we are using more toppings and extra cheeses our pizzas Pizza Hut should modified their own web site to online purchasing. It must include completed food menu. It allows client to view entire food menu. It useful to when customer Oder pizzas by online.

Bibliography

  1. CNBC. (2019). Pizza Hut execs ‘dissatisfied’ with growth, brand has ‘a lot of work to do’. [Online] Available at: [Accessed 3 May 2019]. In-text: (Hill, 2019) Bibliography: Hill, C. (2019).
  2. How Do You Solve a Problem Like Pizza Hut? — The Motley Fool. [Online] The Motley Fool. Available at: [Accessed 2 May 2019]. In-text: (Hill, 2019) Bibliography: Hill, C. (2019).

Cite this page

Pizza Hut Fast Food Company. (2019, Aug 20). Retrieved from https://studymoose.com/pizza-hut-fast-food-company-essay

Pizza Hut Fast Food Company

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