Individual part

Introduction
This is the individual part of the marketing plan that how Pizza Hut applies the
marketing mix strategy to penetrate the Malaysia market. Checklist and media schedules are
prepared to ensure all activities are in order and under control. Budget allocation is included
to show how RM1 million is being used and the contingency plan is being prepared as well to
allow Pizza Hut to return to their daily operations as quickly as possible after an unforeseen
event.
Product
Pizza Hut’s One Bite Tarts is made with an unsweetened pastry base, filling with
pastry cream flavoured with vanilla seeds and the top will be occupied with fresh and sweet
mixed fruits such as strawberry, kiwi, peach and, blueberry. Each tart contains a slice of
strawberry, kiwi, peach and two small blueberries. The size of the ‘One Bite Tarts’ is 5cm x
5xm x 4cm which is perfectly fit in a person’s mouth. This tart is baked daily to maintain its
freshness and deliciousness. It can be stored either in the fridge or under room temperature,
but it has to be consumed in between three days to ensure the good taste of the tarts. The
mixed fruits used by Pizza Hut are purely organic which contains the least amount of
pesticides and without preservatives to guarantee the highest nutrition for their customers.
Within one bite, customers can enjoy four different fruits and at the same time, each fruit
provides great amounts of nutrition that are beneficial for their body health. The benefits of
nutrition have been shown below. All the nutrition helps to protect people heart from diseases,
lower down their blood pressure and guard against cancer (Gabrick, 2008). With only one
bite, customers can keep their body healthy that make it become so special and become a
competitive advantage to compete with the opponents. Pizza Hut’s One Bite Tarts is sold in a
set of six pieces that cost RM9.99. The ingredients used are recognised by Halal Certification
which is suitable for all races of customers. In order to meet the efficiency and effectiveness
of the product strategies of Pizza Hut, they have to make sure One Bite Tarts are in stocks all
day long so that the customers can get the product all the time and on the spot. Furthermore,
Pizza Hut can develop more innovation in the packaging in line with the trend to affect the
customer’s adoption decision. The packaging will mark with a Healthier Choice Logo (HCL)
credentials to identify the product as a health-conscious lifestyle product and differentiate
themselves from those of competitors. The packaging has been shown below.

Content Benefits

Vitamin A Great for skin, bone, and tooth development, and protected vision,
including protection against macular degeneration (Kourmpetli and
Drea, 2013).

Vitamin E A role as an antioxidant and helps support the immune system along
with potassium to balance the body's electrolytes and limiting
hypertension and high blood pressure (Kourmpetli and Drea, 2013).

Table 1: Benefits of the content of One Bite Tarts

 Figure 1: Packaging of One Bite Tarts (Own Creation)

Pricing
Pizza Hut will apply the cost-based pricing strategy to determine the price of One Bite
Tarts and it would take about 50% of the profit margins for the single box of One Bite Tarts.
This strategy is used for accomplishing the objective of profit maximization and it is the
easiest way to calculate what it should be priced at. Besides that, Pizza Hut will continue to
use the premium pricing strategy for serving One Bite Tarts due to the high cost of
ingredients which means it may not be affordable to all the customers and low-income group
people may not willing to spend money on dessert. The psychological tactic will be practiced
as people perceived high price means high quality. Not only that, Larson (2014) found that
customers tend to process a price from the left-most digit to the right, and so will tend to
ignore the last few digits of a price. Therefore, Pizza Hut will set One Bite Tarts’ price for
RM9.99 instead of RM10.00 by using psychological pricing. Furthermore, in order to
penetrate the market and influence the customers’ purchase intention as much as possible, the
bundling pricing strategy will be utilized as well by selling multiple products as a package
deal. In fact, product bundling generates more sales and customers nowadays value bundle
more than purchasing individually (Derdenger and Kumar, 2012).

Distribution strategy
The online ordering and payment system as well as home delivery service, will be
continuously applied on their official website and mobile application to maintain their
distribution strategy. In fact, Pizza Hut could actually utilize the indirect distribution channel
by building the partnerships with the food delivery providers such as Foodpanda, GrabFood
and Honestbee as Pizza Hut can utilize their existing customers to grow their business as well
as increase the availability and reachability of Pizza Hut (Lehmann et al., 2010). Furthermore,
since these food delivery providers will give the special offers such as ‘Free Delivery’ or ‘10%
off for all fast food restaurant’ at the certain period, it could grab the attention from the
customers and tend to increase the sales. On the other hand, as Pizza Hut and KFC are the
restaurants that operated by QSR Brands, it could be a bonus for Pizza Hut that One Bite
Tarts can be sold in KFC stores which could help them to approach more customers and
increase the reachability and eventually, gain the profit. Moreover, since one of the major
trends for QSR operations includes drive-thru service in response to increasing demand for
faster service, Pizza Hut has to update themselves to satisfy the customers’ needs by
introducing drive-thru service in Malaysia (Parso and Khan, 1992). People are more
workaholic in urban areas and thus tend to dine in any fast food restaurant to save a lot of
times. Besides that, Pizza Hut can also establish a partnership with the dessert store such as
llaollao or Haagen Dazs as One Bite Tarts is also a type of dessert that can trigger the
customers’ minds when they enter the dessert stores.

Foodpanda
Haagen
GrabFood
Dazs

llaollao Honestbee

Pizza
Hut
Self
KFC Home
Delivery

Drive-
Kiosks
thru
Vending
Machines

Figure 2: Distribution Strategy for One Bite Tarts (Own Creation)

Promotional strategy

Advertising
Pizza Hut should involve in several platforms of advertising for the release of One
Bite Tarts such as Banner, Newspaper, Billboard, Transit advertising, Radio, and TV. Banner
can be presented and displayed at the Subang Jaya outlet and trade show to capture the
customers’ attention by delivering the benefits and values of One Bite Tarts. The Sun
newspaper, Mingguan Malaysia, Makkal Osai and Sin Chew Daily are chosen because they
are having the highest circulation figures and readership compared to the others. The
circulation figure of The Sun is 307,481 copies per day, Mingguan Malaysia is 312,835
copies per day, New Straits Times is 44,090 copies per day and Sin Chew Daily is 328,930
copies per day (BrandEquity, 2018). The high readership will help to increase product
exposure to the customers. The advertisement will be published in the quarter page size
which is 3 columns x 5.25 inches in first double page of the newspaper as those are the
information that could maximize the readers’ attention. Pizza Hut can advertise on two
billboards with the size of 15ft x 25ft where located at the Subang Jaya area to gain customer
awareness and generate the impulse buying behavior. RapidKL bus and train are also
effective mediums to increase the frequency of consumer exposure. Meanwhile, the
advertisement will be airing a 30-second version on radio station such as Hitz FM, My FM
and One FM around 6am-10am and 4pm-8pm due to the traffic congestion and most of the
driver will play the radio as their entertainment. Pizza Hut will also invest in television
advertising including TV2, Astro Quan Jia and Astro Food Network with a 20-second short
video by using both emotional and rational appeal to motivate change the customers’ eating
habit and generate the purchase intention.

Exhibition and trade show

Pizza Hut will join the food and beverage trade shows that will be organized in the
year 2019 and 2020 in Kuala Lumpur to reach the multitude of potential customers such as
FoodBE Malaysia on September 2019 and Malaysia International Food Technology
Exhibition on March 2020 (10times.com, 2019). Besides that, Pizza Hut will also set up a
food truck or booth during the event in Subang Jaya and Kuala Lumpur such as Songkran
Music Water & Food Festival 2019 on May, and Greater Hartford Food Truck Fest 2019 on
June to promote the new product to the target audiences (Ctfoodtrucks.com, 2019). Moreover,
according to the report conducted by Hershey Foodservice (2018), they found that young
customers love desserts. Hence, this could be a great opportunity to set up a booth in the
university to approach the students and grab their attention. During the trade show, in-store
sampling will be distributed as it is often an effective way to generate trial (Shimp and
Andrews, 2010). Getting the customers to try One Bite Tarts will lead them to experience the
brand directly and potentially generate the purchase intention. According to the research of
Hoeffle (2003); Meyer, Zhao, and Han (2008), they found that the customers’ adoption
decisions will be affected by the innovation newness and feature richness. Therefore, Subway
will come out with the innovative packaging and use this strategy to gain more customers’
attention such as Christmas Theme and Chinese New Year Theme during the trade show or
exhibition.

Internet Marketing
In this modern era of communication and networking, Pizza Hut can actually engaged
in internet marketing by hiring Art Network Directory Agency to create a pop-up
advertisement regarding One Bite Tarts in search engines and different kind of social media
such as Twitter and Facebook to increase product awareness and connect with the customers
as this is the most suitable and cheapest way to promote the product. By using the internet
platform, Pizza Hut will be able to receive feedback from the customers and able to make the
improvement to satisfy every customer preferences. Other than that, Pizza Hut can provide
the e-voucher via social media such as Twitter, Facebook and Email to the customers as it
can effectively increase the customer data due to the e-vouchers can be used exclusively for
gifting purpose and only valid for the newly registered user and there is one redemption per
customer. According to the research of MCMC (2018), they determined that the percentage
of internet users in 2018 has increased from 76.9% to 87.4% which means that internet
marketing can be recognized as the most effective medium to promote One Bite Tarts in
Malaysia. Hence, Pizza Hut should appreciate this opportunity to approach the target
audiences.

Sales Promotion

In hope to achieve the objective of launching the product, the first 100 customers who
purchase it in the tradeshow or booth that set up in the university and will enjoy the Buy 1
Free 1 offer that used to favor the customers and increase customer loyalty for the brand. In
fact, it applies the psychological tactics in marketing as the offer is on first-come, first-served
basis to maximize the demand of the new product.
Checklists
The following table shows the checklist for the activities to be launched and it is used to
ensure all the activities are in order and under control.

No. Activities (

1. The information in advertising are accurate and in order

2. The actual design and size of banner are in the right manner

3. The place for the banner to display is easy view

4. The availability of advertising in The Sun newspaper, Mingguan Malaysia, Makkal

Osai and Sin Chew Daily

5. The size of the advertisement in The Sun newspaper, Mingguan Malaysia, Makkal Osai
and Sin Chew Daily

6. The availability of advertising in the two billboards

7. The size of the advertisement in the two billboards

8. The location of the billboards in Subang Jaya area

9. The availability of advertising on RapidKL bus and train

10. The availability of advertising in Hitz FM, My FM and One FM

11. The time duration of the time duration of the advertisement on the radio channel

12. The timing of the advertisement on the radio channel.

13. The availability of advertising in TV2, Astro Quan Jia and Astro Food Network

14. The time duration of the time duration of the advertisement on the TV channel

15. The timing of the advertisement on the TV channel

16. The promoters being assigned to the event are essential

17. The promoters being assigned are on time

18. The availability of the samples for testing, so that consumers are allowed to taste before
buying and that there is no shortage on the samples so in order to make sure everyone
who is interested in the product is able to test it.

19. The freshness and quality of the ingredients

20. The online platforms have updated information

21. To get a feedback form filled by the test samples, so that Horlicks can know what its
products reviews are and if there are negative reviews it would want to put them right

Table 2: Checklist
Implementation schedule, deadlines

Figure 3: Media Schedule

There will be plenty of advertising will be implemented for the first three months to
maximize brand exposure and product awareness. Banner Advertising, Email Campaigns,
and Twitter and Facebook Advertising are scheduled as a continuous pattern as these
platforms don’t cost a lot. Email Campaigns and Twitter and Facebook Advertising are
constantly used throughout one year to ensure the customers are aware and well informed of
Pizza Hut latest information or any promotional activities. Besides that, the social media
techniques are used for the whole time span as it will mainly be of no cost if it spreads a good
word of mouth and reviews as well as ratings will be updated by consumers who have had
their experiences with the restaurant, this could prove to have free publicity for the company
thereby spreading brand awareness. While Billboard and Rail Advertising run as a continuous
program in order to fulfil the contract requirements. Commercials will disseminate on
newspaper once a month while Bus Advertising only runs for the first half of the year due to
the cost efficiency of advertising. Exhibition advertising runs as flighting program by joining
the food and beverage trade shows and exhibition that will be organized in 2019 and 2020 in
Kuala Lumpur such as FoodBE Malaysia, Malaysia International Food Technology
Exhibition, Songkran Music Water & Food Festival 2019 and Greater Hartford Food Truck
Fest 2019. TV Advertising and Radio Advertising are scheduled as flighting pattern as well
to remind the customers regarding One Bites Tarts and trigger their minds. Packaging
Advertising will run as pulsing advertising in order to impress the customers with attractive
packaging during some festivals such as Chinese New Year, Christmas, Hari Raya and
Deepavali.
Cost analysis and control
Medium Approximate Media Budget Approximate Percent of
Media Budget
Billboard RM 120,000 12%
TV Station RM 120,000 12%
Radio Station RM 80,000 8%
Newspaper RM 186,000 18.6%
Transit Advertising RM 110,000 11%
Banner RM 2,000 0.2%
Packaging RM60,000 6%
Total RM 678,000 100%
Table 3: Budget for Electronic and Mass Media

Medium Approximate Media Budget Approximate Percent of

Media Budget
Exhibition and Trade Show RM18,000 1.8%
(Including promoter salary)
Total RM18,000
Table 4: Budget for Exhibition and Trade Show

Medium Amount

Pop up link advertisement on Twitter and RM 4,000

Facebook

Video Advertising RM 50,000

Total RM 54,000

Table 5: Budget for Internet/Interactive Marketing

Medium Approximate Media Approximate Percent

Budget of Media Budget

Electronic and Mass Media RM 678,000 67.80%

Exhibition and Trade Show RM 18,000 1.8%

Internet/Interactive Marketing RM 54,000 5.4%

Contingency Plan RM250,000 25%

Total RM 2,000,000 100%

Table 6: Budget Allocation for Promotional Expenses

Pizza Hut has provided RM 1 Million for the funding of the new product, in order to
cover the costs of launching and other promotion activities. The amount will be divided
between specific promotional activities. Only 75% of the budget will be allocated for the
promotional expenses while the rest of the budget will be used for the contingency plan. The
major budget will be used in Electronic and Mass Media which is RM678,000 (67.80%) as
those platforms are expected to maximize the awareness of One Bite Tarts and reach the
target audience easily and effectively. The cost of newspaper and magazine are the most
expensive as the advertisement is designed in the full page and will be advertised on different
language of newspaper in order to maximize the reachability to the Malaysia market. Banner
cost only RM2,000 as it only has to be produced once from the beginning and last to the end
of the campaign. 1.8% of the budget is allocated for Exhibition and Trade Show for the venue
fee in every event and the salary for the promoters. 5.4% of the budget belongs to
Internet/Interactive Marketing and the cost is mainly paid for the video advertising as
according to Dehghani et al. (2016), they found that video advertising plays an important role
in forming purchase intention of consumers which increase advertising value as the
customers nowadays prefer to watch videos on the go and it has higher trustworthiness than
traditional advertising. In addition, since 87.4% of Malaysian is the internet user, Pizza hut
should grab this opportunity to advertise online to gain more awareness.
Contingency Plan
If the competition increases advertising or our sales are less than expected, Pizza Hut is
prepared to add as much RM250,000 to our advertising budget.

Strategy In Case Fail Correction

Banner Advertising Not attractive enough to Generate more innovative and
capture the customers’ creative idea in designing banner
attention
Radio and Newspaper Not effective due to the Invest the other channels that
Advertising decreasing audience and low have higher performance
performance of the channel
Billboard Advertising Not effective due to only fewer Relocate the billboards to the
people pass by area that has a higher population
density
TV Advertising The view of the channel Advertise in the other channels
decrease that have higher viewer and more
popular
Exhibition and Trade Competitors offer low price Offer sale promotion such as Buy
Show 1 Free 1 or give the coupon to
impress the customers
Exhibition and Trade Insufficient promoters or Recruit more promoters or
Show salesperson which lower down salespersons
the productivity
Table 7: Contingency Plan

Control and Evaluation

No. Activities Action to Implement
1. Advertising on The Sun newspaper, Pizza Hut will check with these three
Mingguan Malaysia, Makkal Osai and Sin newspaper companies about the number
Chew Daily of newspaper sold in every last week of
a month.
2. Advertising on Hitz FM, My FM and One Collect data from the radio channel
FM regarding the number of listenership in
between 6am-10am and 4pm-8pm
3. Billboard Advertising at Subang Jaya area Estimate the number of people passing
the billboard by using video recorder
once a month.
4. Internet Marketing and pop-up Obtain and analyse data from Twitter
advertisement Facebook advertising tools and track the
number of people view the
 advertisement.
Word of mouth such as comments and
discussion on social media platform can
also be the way to measure how One
Bite Tarts has penetrated the market.
5. Exhibition and Trade Show Collect the customer feedback by using
questionnaire survey about the
awareness of One Bite Tarts and their
satisfaction level. The questionnaire has
been shown in the Appendix.
6. Market share of Pizza Hut in Malaysia This can be measured through the sales
statistic of One Bite Tarts as well as the
market share analysis within one year
period of launch
Table 8: Control and Evaluation
Conclusion
Pizza Hut has developed the marketing mix strategy to introduce and promote One
Bite Tarts. Their product strategy is to make sure the product is in stock all day long and
recognized by Halal Certificate as well as marked with Healthier Choice Logo to impress the
customers. They applied different kind of pricing strategy including cost-based pricing,
premium pricing, psychological pricing and bundling pricing to set their price. They apply
direct and indirect distribution channel as their distribution strategy to maximize their
reachability and accessibility. Banner Advertising, Email Campaign, Billboard Advertising,
Exhibition and Trade Show, Newspaper and TV Advertising, Transit Advertising and
Internet Advertising are used as the promotional tools to increase product awareness and
approach the customers. Checklist and media schedule are prepared to ensure all activities are
in order and under control. RM1 million of the budgets have been provided and only 75% of
the budget will be utilized as the promotional expenses while the rest of the budgets are used
for the contingency plan.
Reference

BrandEquity (2018). Newspaper Ad Rates. [online] Brandequity.com.my. Available at:

http://www.brandequity.com.my/web/index.php?option=com_content&view=article&id=170
&Itemid=158 [Accessed 21 Nov. 2018].

Ctfoodtrucks.com. (2019). CT Food Truck Festivals & Events 2019 | CT Food Trucks.
[online] Available at: http://www.ctfoodtrucks.com/food-truck-festivals/ [Accessed 14 Apr.
2019].

Dehghani, M., Niaki, M., Ramezani, I. and Sali, R. (2016). Evaluating the influence of
YouTube advertising for attraction of young customers. Computers in Human Behavior, 59,
pp.165-172.Derdenger, T. and Kumar, V. (2012). The Dynamic Effects of Bundling as a
Product Strategy. SSRN Electronic Journal.

Gabrick, A. (2008). Nutritional Benefits of the Strawberry. [online] WebMD. Available at:
https://www.webmd.com/diet/features/nutritional-benefits-of-the-strawberry [Accessed 10
Apr. 2019].

Hershey Foodservice (2018). IT PAYS TO BE SWEET: Gen Z and Millennials Like Hershey
Branded Desserts. [online] Hersheyfoodserviceinsights.com. Available at:
http://www.hersheyfoodserviceinsights.com/hershey_whitepaper.pdf [Accessed 9 Apr. 2019].

Hoeffler, S. (2003). Measuring Preferences for Really New Products. Journal of Marketing
Research, 40(4), pp.406-420.

Kourmpetli, S. and Drea, S. (2013). The fruit, the whole fruit, and everything about the fruit.
Journal of Experimental Botany, 65(16), pp.4491-4503.

Larson, R. (2014). Psychological Pricing Principles for Organizations with Market

Power. Journal of Applied Business and Economics, 16(1), pp.11-25.

Lehmann, D., Winer, R., Saihani, S., Noor, M., Abdul, A., Hashim, N. and Alam, S.
(2010). Product Management & Strategy. 4th ed. McGraw-Hill Education.

MCMC (2018). Internet Users Survey 2018. Malaysian Communications and Multimedia
Commission, pp.1-38.

Meyer, R., Zhao, S. and Han, J. (2008). Biases in Valuation vs. Usage of Innovative Product
Features. Marketing Science, 27(6), pp.1083-1096.
Parso, H. and Khan, M. (1992). Trends in the Quick Service Restaurant Industry. Hospitality
Review, 10(1), pp.19-26.

Shimp, T. and Andrews, J. (2010). Integrated marketing communications in advertising and

promotion. 8th ed. Mason, Ohio: South-Western, pp.480-504.

10times.com. (2019). Food & Beverage Trade Shows in Malaysia,Food & Beverage Trade
Fairs & Business Exhibitions in Malaysia. [online] Available at:
https://10times.com/malaysia/food-beverage/tradeshows [Accessed 14 Apr. 2019].
Appendix

Pizza Hut One Bite Tarts

Please take a moment to complete this small survey. The information that you provide us will
be used to value the grade of acceptation in the market of One Bite Tarts.
This survey will take you approximately [3] minutes. Thank you for the collaboration
1. Which opinion do you have of One  Very interesting
Bite Tarts?
 Interesting
 Neutral
 Not interesting
 Not interesting at all
2. Which are the aspects that attract you  Design
of One Bite Tarts?
 Price
 Attractive
 It’s trendy
 None of the previous one
 Others (Please specify):

3. Where would you like to purchase  Specialized ship

this product?
 Pizza Hut retail store
 Internet
 Others (Please specify):

4. Please, tell us your reasons to not to  Don’t need it

be attracted by the product?
 Excessive price
 Lack of choice
 Others (Please specify):

5. Could you tell us your sex?  Man

 Woman
6. Could you tell us your age  Under 18 years old
 From 19 to 30 years old
  From 31 to 45 years old
 From 46 to 60 years old
 More than 60 years old
The survey is over.
Thank you very much for your help.