Chapter 1

Introduction to Organization

1.1 Introduction
It was one fine moment back in 1958, someone in Kansas inspired by an Italian dish, thought of opening up a parlor in his own country. The idea was destined to create waves and headlines in the years to come. Realizing the potential in their family friends concept, the two brothers Dan and Frank Carney decided to go for it. Borrowing $ 600 from their mother, they purchased some second hand equipment, rented a small building in Wichita, Kansas and opened up the first restaurant and later made it big. Within the span of a few decades, their Pizza Hut restaurant network engulfed the globe. Pizza Hut, a division of Tricon Global Restaurants, Inc., has more than 7,200 units in the U.S. and 3,000 units in more than 86 other countries. Tricon is the parent company of two other segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make up the world's largest restaurant group, with almost twice as many units as McDonald's. When it comes to leadership the proactive approach to product development and marketing provides ample evidence of their abilities. Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made continuing efforts to refine their products, and to develop new products suited to every consumer taste. Today, the five major products, Pan Pizza, Thin 'N Crispy pizza, Hand-Tossed style pizza, Stuffed Crust Pizza and The Big New Yorker Pizza are loved by millions around the world and have become the standard by which all others are judged. Pizza hut is working together to run great restaurants in order to be the best at making and serving the best pizza in America. That means they are willing and able to go to any lengths to make the customer's experience with Pizza Hut an enjoyable one. They have come a long way since that opening night back in 1958 when pizzas were given away to generate interest in the fledging business. And through the strength of their the minds of their target consumers. heritage, their culture and their people, they look forward to even more success in the years ahead. They have achieved success by creating value in

1.2 Pizza Pakistani

Someone once said, A great idea has a following of exactly one in the beginning. This was the case when Manzar Riaz, the managing director of Pizza Hut left a promising career at Beech Aircraft to wait tables at Pizza Hut as part of the franchise requirement. Little did he realize then that he was sowing the seeds of an eating out revolution in Pakistan. Pizza Hut proved to be a big success in the country. It was the first global heavyweight in the food business to venture into the countrys virgin market. It was also the first one to face tough competition from other global franchises and thrive. And the reason for this success is what makes nay great thing stand out

quality. Everyone here at Pizza Hut believes in going an extra mile in order to maintain that edge. Fully familiar with this fact, the customers young and old alike have thronged the restaurants be it any city. The result: the business has recorded significant growth. Infact the Pakistan division of Pizza Hut chain has even tacked up the highest same store sales growth in the world.

1.3 Company Mission

Be the best at making and serving the best pizza in every neighborhood. Customers say, "I love it" at home and at the hut.

1.4 Pizza Huts Passion

To be the best hospitality business Anywhere in the world The best branded restaurants The best delivery business The best franchise network The best food, service assets and value The best for families

1.5 Core Competencies

Basically, core competency means how many advantages the firm has over his competitors. Pizza hut has certain core competencies over his competitors. Quality Taste Family environment Style Over hot Market Share

From these core competencies Pizza hut is using Taste and Style as a competitive advantage.

1.6 Marketing objectives

Objective is needed in every area where performance and results directly and vital affect the survival and prosperity of the business. Bata being a performance and result-oriented company have also certain marketing objectives: To go beyond customer satisfaction to customer delight. To increase profit and sales. To increase market share. To fulfill their consumers demands efficiently.

Chapter 2
2.1 Competition

Competition

It is between an industry, which is a group of firms that offer a product or class of products that are close substitutes of each other. Competitors strive to maximize profits. Each competitor pursues some mix of objectives, current profitability, market share growth, cash flow, technological leadership and services leadership. Knowing how the competitor weighs each objective will help the company anticipate its reactions. Competitors are companies that satisfy the same customer need. For e.g. a customer coming to Pizza Hut would want a Pizza but with additional benefits like cleanliness, ambiance and service so therefore for that Pizza Hut has a program by the name of CHAMPS which stands for: C for Cleanliness H for Hospitality A for Accuracy M for Maintenance P for product S for service Pizza Hut exceeds its customers expectations by offering these programs for customer retention. CHAMPS mechanism has been incorporated through an independent agency. Each member of their staff will be trained to understand the CHAMPS concept and assist in its implementation in their operations.

2.2 Competitor's Analysis

Pizza Hut needs to gather information on its each competitors strength and weaknesses. Pizza Hut does not have a major competitor as such but the QSR (Quick Serving Restaurants) related franchises come in its competitors, which are KFC and McDonalds. Though KFC is a part of TRICON but it still considered being Pizza Huts competitor. Since KFC and McDonalds dont offer Dine Inn service but are self service based, thats why they are not considered as major competitors. Pizza Hut caters to a market for dining inn, but it has a major competitor coming up to Pakistan in December 2003 that is Dominos as its the first time Dominos is offering 380 seated dine inn place in Carlton Hotel. This is for the first time ever that Pizza Hut would have a real competitor to face and beat. For this they are competing by opening new restaurant outlets in the country.

2.3 Players of Industry. Pizza Hut categories the business according to this concept into four types

Market Leader. Market Follower. Market Challenger Market Niche

In it we have to mention that what type of player our product to be so Pizza Hut is doing this we compare in realistic manner then we see Bata is market leader and KFC is its challenger. 2.4 Analyzing the Competitors Plans (KFC) 2.5 SWOT Analysis of KFC Pizza Hut analyze what are major strengths, weakness and plans of competitors. They point out following major strengths and weakness of KFC. 2.5.1 Strengths
KFC the most recognizable brand in chicken Original recipe is its core competency. Large food supplies chain. It has growing customer base and customer loyalty.

2.5.2 Weaknesses
KFCs only a chicken store. Losing business because they lack the variety the other stores offer. They are slow adopter in technology. No advertisements on TV. Higher prices low quantity. No parking facilities available in premises.

2.5.3 Opportunities
Dining out trend is increasing. Population is chicken lover. People are becoming health conscious. Labor is cheep. Increasing population.

2.5.4 Threats
Government Policies Chicken Diseases

Some burger places have added chicken to their menus. Other chicken chains are adding other types of food to their product lines. Anti US activities victim. Food Technology advancement.

2.6 SWOT Analysis of Pizza Hut 2.6.1 Strengths

Pizza Hut has been to be a division of PepsiCo since 1977 and now an integral part of YUM . It is the world's largest pizza restaurant and it has a good reputation and a good branding. It can raise the profile of the company to gain the ability to sell at higher price, to recognize its products through the corporate image and to launch new products more easily. Pizza Hut has a good franchising development that has risen rapidly since its foundation in 1958.

2.6.2 Weaknesses
The complex computer systems. Internal conflicts from franchisees.

2.6.3 Opportunities
Pizza Hut can readily grow in other markets because it has a very good organization and it has solid market share. Pizza Hut research and development managers are confident that the Pizza is well-suitable to the delivery environment and no causing quality to suffer. Pizza Hut management intended to pursue vigorously the "exciting opportunities afforded by our new segment of delivery", after the right marketing studies, they can try to diversify growth because it allows Pizza Hut to make better and wider use of their management, technical and financial resources.

2.6.4 Threats
Pizza Hut can be the intense competition and in narrow relationship with it, to cut down the quality of the products, the service and the attention to the customers so as to develop new products as a means of increasing profit. Pizza Hut should know as much as possible about its customers' tastes. Pizza Hut should also obtain as much information as possible about its competitor's objectives and strategies. Pizza Hut is a top Pizza Chain but it has to maintain its position over its competitors. Pizza Hut should never forget that the loyalty quotient of its customers is very low.

Chapter 3

Marketing Strategy

3.1 Marketing Strategy of Pizza Hut 3.2 Market Segmentation

Market segmentation means segmenting the market in different groups according to their tastes, preferences, income, gender, age and many others. Marketers segment the market to target the appropriate market segment for their company. Pizza hut has segmented its market for the customers who have the same market mix. The target market for pizza hut in Pakistan is mostly the upper-upper class and upper-middle class families. These families consist of adults, children, and teen agers. So we can say that pizza hut is a family restaurant. All these families are similar with respect to the factors that affect demand. They like to have pizzas, salad, pastas, drinks and deserts and a lot more under one roof. By tailoring marketing program to individual market segments pizza hut is doing better job and is making efficient use of its marketing resources. The Process through which Pizza Hut has segmented its market. 1. 2. 3. 4. 5. Pizza hut identified the current and potential wants that exist within a market. Pizza Hut distinguished the characteristics of different segments and designed various segments for potential marketing mixes. What segment the customers fall into must be measurable e.g. the ages of those who eat pizzas. The segment should be accessible through media. The market for Pizza Hut is easily accessible through electronic and print media. Each segment should be large enough to be profitable.

3.3 Target Market

In Pakistan, the main target segments of Pizza Hut are: High upper Class High middle Class Homogenous group of people The target market is: Families including:

In all we can say that

Adults Teenagers Youngsters (children)

3.4 Segmentation and Targeting Variables for Pizza Hut

GEOGRAPHICS COUNTRY DENSITY CLIMATE DEMOGRAPHICS AGE GENDER FAMILY SIZE FAMILY LIFE INCOME OCCUPATION PSYIOGRAPHICS SOCIAL CLASS LIFE STYLE PERSONALITY BEHAVIORAL OCCASIONS BENEFITS USER STATUS LOYALTY STATUS READINESS STAGE ATTITUDE Sindh Urban Spring Under 15 Male 1-2 Young Single Under 5,000 Professional Lower Class Conservative Compulsive Regular Quality Non-USer None Unaware Enthusiastic Punjab Suburban Summer 16-30 Female 3-4 Young Married 5,000-14,000 Crafts People Middle Class Social Gregarious Special Convenience Potential User Medium Aware Positive Baluchistan Rural Autumn 31-45 5-6 Married with children 15,000-24,000 Students Upper middle Lively Authoritarian N.W.F.P Winter 46-60 6+ Married with no children 25,000 Homemaker Upper Class Food Lovers Ambitious

Service First Time Strong Informed Indifferent

Speed Regular User Absolute Interested Negative

Table 3.1 Segmentation And Targeting Variables For Pizza Hut

Chapter 4

Market Leader Strategies

4.1 Pizza Hut Strategies as Market Leader

Pizza Hut has the largest market share in the Pizza Food Market. It leads its QSR competitors in the following: 4.1.1 Price Changes: Pizza Hut has changed it prices after seven years and they have increased their prices just by 3.5% which has not even been noticed by the consumers. 4.1.2 New Product Introduction: One of its new product innovations is the Chapli Kabab available in both chicken as well as beef. Then their new Masala Chicken pizza will be coming up soon, they also introduced a new dessert in their menu that was a concept of a Cheese Cake. If u have a Pizza with cheese so you finish your meal by having a cheese cake in the end. 4.1.3 Distribution Coverage: Pizza Hut is opening new outlets and has been the pioneers in coming up with their all time famous MOBILE UNIT. They add value to the customer and business in order to maintain the same value of sales and increase sales as well. 4.1.4 Promotional Intensity: Print media and billboards are used for sales promotions by Pizza Hut. They dont cater to electronic media because they dont have enough seating arrangement in their outlets, so if they market themselves on TV theyll get a good response but a bad impression on the customer when he reaches to the outlet to have the pizza and would end up waiting in huge ques as there wont be any space to sit. On cooperate level Pizza Hut spends 4% of their sales on Marketing. Sales promotion is done by LCM (Local Store Marketing) and 1% of sales for whatever they want to do. Pizza Hut must maintain constant vigilance. The leader might misjudge its competition and find itself behind. Therefore the firm must do the following: Find ways to expand total market demand. Protect its current market share through good defensive and offensive actions. Try to increase market share further, even if the market size remains constant.

Conclusion
Pizza Hut has been established by a lot of research and analysis. No cost has been spared to reach the objectives of Pizza Hut which are training young energetic staff to give customer satisfaction and to provide food with all the healthy ingredients to meet quality of excellence. They have great experience in their work and are highly committed to serve the customers better and to meet their value perspective. The marketing, promotional and positional strategies are unique in their own respect. Even though high costs and emerging competitors could be a threat but still pizza Hut has had an upper hand over all other restaurants. If there was marketing award in Pakistan, Pizza Hut would definitely be a contender. Their inexhaustible service justifies its position as the largest international chain of Pizza in the world. They have achieved tremendous amount of success not only in their food category but also in providing services such as trained and educated staff to assist, comfortable and relaxing ambience with soft background music. To conclude, we would like to add in that Pizza Hut has been performing extremely well in Pakistan as a Market Leader and it should continue to do so no matter whichever competitor comes in.