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Pizza Hut Strategies

Categories: PizzaStrategy

When it comes in tossing around pizza no one can beat Pizza Hut the world’s largest and successful Pizza chain with over 12,689 restaurants in 88 countries around the globe. Thanks to a bright suggestion of a friend, $ 600 starting money from a mother and two enterprising brothers. The current world’s largest and most successful pizza restaurant, PIZZA HUT was made. The two brothers named Dan and Frank Carney are of the pioneers of the now well-known pizza restaurant.

They began in 1958 and borrowed their initial investment worth $ 600 to their mother and materialize the suggestion of a friend to have a pizza parlor.

They opened up the first Pizza hut in Wichita, Kansas U. S. A the business started to grow and profitable even in other countries and also in the Philippines. Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta,buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc.

(the world’s largest restaurant company) with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries. Philippine Pizza Inc. , the franchise owner and operator of Pizza Hut, has over 140 restaurants, here in the Philippines since it began in 1984. * January,1984= the first restaurant in Quad, Makati (Parksquare) was opened * 1986= first provincial outlet was opened in Dau, Pampanga * 1987= the first mall outlet was opened in SM North Edsa * 1989= delivery was introduced in Greenbelt store and was converted to RBD * 1990= first DELCO unit was opened in Wilson Greenhills.

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* 1990= first food court outlet was opened in Food Gallery * 1993= Pizza hut was introduced in Cebu with opening its outlet in Gaisano Country Mall * November 14,1997= the Customer Service Center was establish and the new state of the art one number 911-111 Pizza Hut’s Mission 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 * 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 Pizza Hut Operations The Pizza Hut restaurant operation is the face of the company. The role of operations is to be obsessed with the quality of our pizza and the experience that our customers receive. There are five categories of Pizza Hut Restaurants.

* RR = Red Roof also known as Traditional Restaurant ( dine-in/ take-out/ slice) * RBD = Restaurant Based Delivery ( dine-in/ take-out / slice/ delivery) * DELCO = Delivery and Take-out or carry-out restaurants * EXPRESS = offer a limited menu with many products not found at traditional Pizza Huts. These type of stores are often paired in a colocated location with a sibling brand such as Wing Street, KFC or Taco Bell, and are also found on college campuses, food courts, theme parks, and in stores such as Target.

* BISTRO = casual dine-in restaurant Pizza Hut’s CHAMPS Pizza hut create their standard process in understanding what the customers really want and doing whatever it takes to make it happen this is what they call as CHAMPS which stands for:

Cleanliness = Before and after handling the customers Hospitality Accuracy Maintenance Products Service These six items define the very core of customer expectations. CHAMPS has become the vehicle which drives Operations Excellence into our business and is also supported by a reward and recognition scheme for the Team members. The ‘CHAMPScheck’ is a tool used to ensure consistency of service and product quality across the entire Pizza Hut estate; in fact it is used for all the Tricon brands internationally.

Products and Services in Market The pizza company is very aggressive in terms of servicing the consumers. They are very optimistic and based their strategies in their on-going customer relations where the communication with their loyal customers leads the way to create another delightful product and quality service. Their effective marketing is not only placed on different advertisement but also in television and Internet. Part of their marketing strategy is to offer an online ordering system where a potential or loyal customer can address her or his order through the website they provided.

In fact, the delivery system attracts the customer and states that “if it’s late it’s free”. This kind of statement is popular and most of the fast foods or restaurant adds it to their advertisement to guarantee that they will deliver the customer’s needs in time Products An advertisement for Pizza Hut’s Pan Pizza The most commonly sold food at the restaurants is the “Pan Pizza”, which usually comes in four different sizes including Personal Pan (which is an individual serving), Small, Medium, and Large, although some stores have done away with the small size.

They come in a variety of toppings, including “specialty” styles. Pan Pizza has a thicker crust than most other commercially available pizzas. In addition to the Pan Pizza, Pizza Hut also sells “Stuffed Crust” (with the outermost edge wrapped around a coil of mozzarella cheese); “Hand-Tossed” (which is more like traditional pizzeria crusts); “Thin ‘N Crispy” (a thin and crispy dough which was the original crust); “Bigfoot”, which is a two-foot by one-foot square cut pizza; and the Dippin’ Strips pizza, which is similar to a Sicilian pizza but is cut into small strips that can be dipped into a number of sauces.

Pizza Hut has experimented with new products frequently. Less successful ones have been discontinued. These include Chicago Dish Pizza and Sicilian; the Sicilian Pizza made a 2006 comeback. Other products Pizza Hut have offered are the “P’zone”, Pizza Hut’s version of the calzone; the “Cheesy Bites”, similar to the “Stuffed Crust” except the crust has been divided into bite-sized pieces that can be pulled apart; and the “Insider”, where a layer of cheese is in between two layers of dough.

Pizza Hut also has a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, hot and mild chicken wings, boneless wings, chicken munchers, jalapeno poppers, and garlic bread. Depending on the size, Pizza Huts also may offer pasta dinners such as Spaghetti or Cavatini. They often come with a side of garlic bread. Some Pizza Huts also serve lunch and dinner buffets with numerous types of pizza, breadsticks and pastas, as well as a salad bar. A new, upscale concept was unveiled in 2005, called “Pizza Hut Italian Bistro”.

The concept, unveiled at fifty locations nationwide, is similar to a traditional Pizza Hut, except that new pasta dishes are offered, such as penne pasta, chicken pomodoro; toasted sandwiches and other foods are also offered. Instead of black, white, and red, Bistro locations feature a burgundy and tan motif. Pizza Hut Bistros still serve the chain’s traditional pizzas and sides, as well. Pizza Hut Marketing The need for marketing was realized by all business firms especially for customer oriented businesses.

Marketing is the key to understand what the customers really need and Pizza hut ensures that these are met in order to achieve its corporate goals. Pizza was extremely popular not only for Italian because now a day’s lots of different variation were made just to fit different tastes of people. Pizza hut have wide range of customers due to pizza popularity. In order to satisfy the needs of the consumers Pizza hut also involved their marketing in New Product Development. Different researches are carried out to know the needs of the consumers to come up with product innovation that surely fits the requirement of the customers.

Marketing Strategy and Strategy for Success A business’s strategy is the pattern of decisions and actions that are taken by the business to achieve its goals. A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives. Running a business involves planning the current as well as future activities. Hence, in order to achieve the business objectives, all business organizations adopt different strategies. Similarly, Pizza Hut has adopted many strategies which help achieve their goal.

Both external and internal changes forced Pizza Hut to rethink their past strategies and have therefore designed new strategies after noticing the changes in the environment. These environmental changes are seen through the PEST (Political, Economy, Society and Technology) and SWOT analysis. After considering all these factors Pizza Hut has decided upon the strategies that would meet the continuous changes of need of their consumers Pizza Hut adopted different strategies such as: Functional Strategies: These are strategies designed to improve the efficiency of a business’s operations.

They often focus on an area, such as marketing, human resource etc. All business organizations adopt strategies at functional level as once the functional objectives are achieved, corporate objectives become easy. In order to make the functional strategy efficient, Pizza Hut has made all the functional departments co-operate with each other. Total Quality Management (TQM): This is the most important for a food chain like Pizza Hut. All the employees’ back-of-the-house i. e. the kitchen assistants are trained accordingly.

They are given extra classes in order to meet the quality standards set by Pizza Hut around the world. This strategy is important in order to satisfy the CHAMPS. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. Different quality management staff is also there at Pizza Hut. The shift managers have the task to observe whether the quality standards are met or not, whereas there are a total quality management department to implement quality standards and know whether they are achieved or not. Market Targeting:

Pizza hut targeted market defines them as a family product. This is because they don’t really directly market their customers. They target everyone where as their competitors target certain gender or age. But pizza hut targets a wide range of customers. This is because they want to make the most money and who blames them. They have many competitors and they are bound to try everything to cope up ops. Their competitors are everywhere. There are just a few that are main competitors and pizza hut will always try to be the best and get the most money by making their products better quality but also cheaper.

They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers. They also do vegetarian options with meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and a pasta bar. This is another competitive idea to attract or customers. Comparative strategy This forced competitors to look for new methods of increasing their customer bases. Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings, and Italian cheese bread.

The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas. In the past, 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.

In 1995, Pizza Hut began two customer satisfaction programs: a UAN (in USA 1-800) number customer hotline and a customer call-back program. These were implemented to make sure their customers were happy, and always wanted to return. In our plan, we will first give a situation analysis of current and relevant environmental conditions that affect our plan. Next, we will give a brief analysis of the current fast food industry, and any trends or changes that might occur in the future.

PROMOTION and ADVERTISING The objectives of promotion are to introduce a new product, stimulate demand,change the short-term behavior of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers. Pizza Hut used these strategies for its marketing.

Pizza huts also try to penetrate class B market by launching its buy one take one promo for P399. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines.

Advertising camping will creates awareness of the products in our target markets. Different Pizza Hut Advertisements Old in-restaurant ad for Pizza Hut’s Pan Pizza. Pizza Hut sponsored the 1989 film Back to the Future Part II, and offered a free pair of futuristic sunglasses, known as “Solar Shades”, with the purchase of Pizza Hut pizza. Pizza Hut also engaged in product placement within the film itself, having a futuristic version of their logo with their trademarked red hut printed on the side of a mylar dehydrated pizza wrapper in the McFly family dinner scene, and appear on a storefront in Hill Valley in the year 2015.

The 1990 NES game Teenage Mutant Ninja Turtles II: The Arcade Game, came with a coupon for a free pizza. The game was filled with Pizza Hut advertising and pizza that would refill the character’s life. In 1994, Donald Trump and ex-wife Ivana Trump starred in a commercial. The ending of the commercial showed Ivana Trump asking for the last slice, to which Donald replied, “Actually dear, you’re only entitled to half”, a play on the couple’s recent divorce. In 1995, Ringo Starr starred in a Pizza Hut commercial which also featured The Monkees.

Rush Limbaugh also starred in a Pizza Hut commercial the same year, where he boasts that “nobody is more right than me,” yet he states that for the first time he will do something wrong, which was to participate in Pizza Hut’s then “eating pizza crust first” campaign regarding their stuffed crust pizzas. Talk show host Jonathan Ross, co-starred in an ad with American model, Caprice Bourret. They were used to advertise the stuffed crust pizza, with Jonathan Ross saying “Stuffed Cwust”, to which is a play on Jonathan’s pronunciation of ‘R’s. Pizza Hut International ad featuring The Muppets (2003–2005).

Another UK ad shows British Formula One driver Damon Hill visit a Pizza Hut restaurant and order a pizza, with famous F1 commentator Murray Walker visiting with him, and narrating as though it was a Formula One race. As Hill is about to finish his meal, Walker, in a play on Hill’s 1994 & 1995 seasons where he was runner up in the Formula One World Championship both won by Michael Schumacher, shouts “And Hill finishes second, again! ” at which Hill grabs Walker by his shirt and shakes him angrily, Walker proclaiming, in his usual tones, “He’s lost it!

He’s out of control! ” Following England’s defeat to Germany on penalties in the semi-finals of Euro 96, Gareth Southgate, Stuart Pearce and Chris Waddle featured in an advert. The advert shows Southgate wearing a paper bag over his head in shame as he was the one, who missed the crucial penalty against the Germans. Waddle and Pearce, who both missed penalty kicks in Italia 90 are ridiculing him, emphasising the word ‘miss’ at every opportunity. After Southgate finishes his pizza he takes off his paper bag, heads for the door and bangs his head against the wall.

Pearce responds with, “this time he’s hit the post”. In 1997, former Soviet Union Premier Mikhail Gorbachev starred in a Pizza Hut commercial to raise money for the Perestroyka Archives. In recent years, Pizza Hut has had various celebrity spokespeople, including Jessica Simpson, the Muppets, and Damon Hill and Murray Walker. Recent commercials have Queen Latifah providing the voiceover. Also in 1997, Pizza Hut, reunited “greatest of all time boxer” Muhammad Ali with trainer Angelo Dundee in a sentimental made for Super Bowl commercial.

Pizza Hut sponsored the first space pizza delivery in 2001, and paid for their logo to appear on a Russian Proton rocket in 2000 In Australia, 2006 saw the introduction of a mascot in Pizza Hut’s advertising – “Pizza Mutt”, a small dog who delivers pizzas. The mascot was dumped after just two ads. Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the consumer. Utilizing mobile phone SMS technology and their MyHut ordering site, they aired several television commercials (commencing just before the Super Bowl) containing hidden words that viewers could type into their phones to receive coupons.

Other innovative efforts included their “MySpace Ted” campaign, which took advantage of the popularity of social networking, and the burgeoning user-submission marketing movement via their Vice President of Pizza contest. Pizza Hut is also advertised in anime such as Code Geass, Maria-sama ga Miteru, Darker Than Black and Toaru Kagaku no Railgun, though in the translated versions of Code Geass the logo was removed, leaving only the red roof logo. As of October 2009, Pizza Hut is advertising its WingStreet brand on a nationwide basis, having met its internal requirement of 80% of stores having the product available.

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Pizza Hut Strategies. (2017, Apr 07). Retrieved from http://studymoose.com/pizza-hut-strategies-essay

Pizza Hut Strategies
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