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SUBMITTED TO: SUBMITTED BY:

Miss: Jaspreet kaur SANDEEP AGARWAL
MBA-1’st Sem.
Section-RT1903-C
Roll No:A-59
Regt.No.10907223
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Contents:

1. What is Marketing Mix………………………………………. 3

2. Marketing a new product……………………………………… 4

3. Marketing mix at Mc Donald’s……………………………… 6

4. Marketing mix of Domino’s pizza…………………………….14

5. Marketing mix at Pizza Hut……………………………...…… 17

6. Conclusion…………………………………………………… 24

7. Bibliography………………………………………………… . 26
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1 . What is Marketing Mix:

1 . Marketeing mix - P’s;

The marketing mix is the combination of techniques used to market a brand. The
techniques are often called the 4 P’s. Originally there were four Ps:

1. Product (or service): what you sell, and the variety or range of products you sell. This
includes the quality (how good it is), branding (see Units 16–18), and reputation (the
opinion the consumers have) of the product. For a service, support for the client after
the purchase is important. For example, travel insurance is often sold with access to a
telephone helpline in case of emergency.

2. Price: how much the product or service costs.

3. Place: where you sell the product or service. This means the location of your shop, or
outlet, or the accessibility of your service – how easy it is to access.

4. Promotion: how you tell consumers about the product or service. The promotional mix is
a blend of the promotional tools used to communicate about the product or service – for
example, TV advertising.
Today some marketers talk about an additional four Ps:

5. People: how your staff (or employees), are different from those in a competitor’s
organization, and how your clients are different from your competitor’s clients.

6. Physical presence: how your shop or website looks.

7. Process: how your product is built and delivered, or how your service is sold, delivered
and accessed.

8. Physical evidence: how your service becomes tangible. For example, tickets, policies and
brochures create something the customers can touch and hold.
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2. Marketing in a new product:

A small educational games company is launching a new game to teach English vocabulary
to beginner learners. The marketing manager, Dominic Dangerfi eld, is making a
presentation using PowerPoint slides.

1.PRODUCT:
• Innovative way to learn new vocabulary
• Launch: how we are planning to introduce the product onto the market

2.PLACE:
• Distribution: high street retailers and mail order via website and catalogues
• Delivery: fi ve days by mail order or straightaway in shops

3.PROMOTION:
• Advertising: in children’s magazines
• Direct marketing: insert catalogue in Parent magazine

4.PEOPLE:
• Customers: educated, city-dwellers with pre-teen children, school teachers
• Competitors: they have a larger sales force to sell their products

5 . PRICING:
• Premium pricing: 20% above market average for a CD-ROM
• Special deals: 15% discount for schools

6 . How to Analyze:
A marketing manager is talking about the marketing mix for a brand of cleaning
products. Choose the correct words from the brackets to complete the text, and then
match each speech bubble with one of the Ps. Look at A opposite to help you.

1 Our (staff / reputation / competitors) are highly motivated. We really believe in our brand. For
example, our (consumers / employees / customers) are always trying to improve what we do.

2 Our (tools / range / support) includes detergent, toilet cleaner and sponges.

3 We use a lot of (advertising / presence / promotional), usually in women’s magazines.

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4 You can fi nd the brand in supermarkets and local shops. The (tangible / accessibility / process) of our (staff
/ mix / outlets) is important. We need to be in a lot of (locations / supports /distributions) so that we are easy to fi
nd.

5 We are more (accessibility / reputation / expensive) than our (competitors / staff / sales) butwe offer good
credit terms and we sometimes run special (deals / processes / support).
Complete the text using words from the box. Look at A opposite to help you.

2. What is AIDA:
AIDA is an acronym which represents the steps a marketer takes in order to persuade
customers to buy a product or service.

*Attention Marketing must fi rst attract the customers’ attention to the product. Customers
become aware of a product and know it is available.

*Interest Then, marketing must create an interest in the product. Customers will develop
an interest in the product.

*Desire Next, marketing must develop a desire to own or have the product so that
customers actively want the product.

*Action Finally, marketing must prompt action to purchase, so that customers take steps
to buy the product – for example, by going to the shop or ordering it online.

2.1
Put the words and expressions from the box into the correct columns. Look at A opposite
to help you.

acceptability awareness cost to user objects

accessibility communication customer needs operations
affordability convenience objectives organization

product price place promotion

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2.2 Complete the article about a supermarket in-store event using words from the box. Look
at A opposite to help you.

Awareness customers’ identified meet promotional

3.Marketing Mix at McDonald’s:

*Introduction:

McDonald’s is one of the best known brands worldwide. This case study shows how McDonald’s
aims to continually build its brand by listening its customers.It alsoidentifies the various stages in
the marketing process. Branding develops a personality for an organisation, product or service.
The brand image represents how consumers view the organisation.

Branding only works when an organisation behaves and presents itself in a consistent way.
Marketing communication methods, such as advertising andpromotions, are used to create the
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colours, designs and images which give the brand its recognisable face. At McDonald’s this is
represented by its familiar logo – the Golden Arches.

.Additionally, economic, legal and technological changes, social factors, the retail environment
and many other elements affect McDonald’s success in the market.
Marketing involves identifying customer needs and requirements and meeting these needs in a
better way than competitors. In this way a company creates loyal customers.

The starting point is to find out who potential customers are – not everyone will want what
McDonald’s has to offer. The people McDonald’s identifies as likely customers are known as key
audiences.

*The marketing mix of McDonald’s:

Having identified its key audiences, a company has to ensure a marketing mix is created that
appeals specifically to those people. The marketing mix is a term used to describe the four main
marketing tools – the 4Ps.

By analysing detailed information about their customers, as derived from ongoing market research,
the McDonald’s Marketing department can ascertain information key to determining the correct
marketing mix.

1) Which products are well received

2) What prices consumers are willing to pay
3) What TV programmes, newspapers and advertising consumers read and
View.
4) Which restaurants are visited
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Accurate research is essential in creating the right marketing mix which will help to win customer
loyalty and increase sales. As the economy and social attitudes change, so do buying patterns.
McDonald’s needs to identify whether the number of target customers is growing or shrinking and
whether their buying habits will change in the future.

Market research considers everything that affects buying decisions. These buying decisions can
often be affected by factors wider than just the product itself. Psychological factors are important,
e.g. the image a particular product conveys or how the consumer feels when purchasing it.

These psychological factors are of significant importance to the customer. They can be even more
important than the products’ physical benefits.Through marketing, McDonald’s establishes a
prominent position in the minds of customers. This is known as branding.

*Meeting the needs of key audiences in McDonald’s:

There are a limited number of customers in the market. To build long-term business, it is essential
to retain people once they have become customers.

Customers are not all the same. Market research identifies different types of customers. For
example:

A parent with two children Visits McDonald’s to give the

Children a treat.

Children Want to visit McDonald’s as it is a

un place to eat.

A business customer Visits McDonald’s during the day

as service is quick, the food tastes
great and can be eaten in the
car without affecting a busy work
schedule.

Teenagers Are attracted by the Saver

Menu which is affordable, and
the internet access available in
restaurants.

These examples represent just a few of McDonald’s possible customer profiles. Each has different
reasons for coming to McDonald’s

Using this type of information McDonald’s can tailor communication to the needs of specific
groups. It is their needs that determine the type of products and services offered, prices charged,
promotions created and where restaurants are located.
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In order to create a marketing strategy that will enable the needs of the key market to be met, the
strengths and weaknesses of the organization must first be identified and analyzed.

The analysis will examine the following parts of the company’s business:

• The company’s products and how appropriate they are for the future
• The quality of employees and how well trained they are to offer the best
service to customers
• The systems and how well they function in providing customer satisfaction
e.g. marketing databases and restaurant systems
• The financial resources available for marketing.

Once the strengths and weaknesses are determined, they are combined with the opportunities and
threats in the market place. This is known as SWOT analysis - strengths, weaknesses,
opportunities, threats.

The business can then determine what it needs to do in order to increase its chances of marketing
successfully.

*Marketing Objectives:
A marketing strategy must be created in order to determine the means by which a set of clear
objectives may be met. Objectives communicate what marketers want to achieve, guide marketing
actions and are used to measure how well a plan is working. They can be related to market share,
sales, reaching the target audience and creating awareness in the marketplace.

Long-term objectives are broken down into shorter-term measurable targets, which McDonald’s
uses as milestones along the way.

Results can be analysed regularly to see whether objectives are being met. This type of feedback
allows the company to change plans and allows flexibility.

Once marketing objectives have been established, the next stage is to define how they will be
achieved. The marketing strategy is the statement of how objectives will be delivered. It explains
what marketing actions and resources will be used and how they will work together.
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*The 4Ps
At this point the marketing mix is put together.
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i. Product:
The important thing to remember when offering menu items to potential customers is that there is a
huge amount of choice available to those potential customers with regard to how and where they
spend their money. Therefore McDonald’s places considerable emphasis on developing a menu
which customers want. Market research establishes exactly what this is. However, customers’
requirements change over time. What is fashionable and attractive today may be discarded
tomorrow. Marketing continuously monitors customers’ preferences.In order to meet these
changes, McDonald’s has introduced new products and phased out old ones over time, and will
continue to do so.
Care is taken not to adversely affect the sales of an existing option by introducing a new option
which will cannibalise its sales (trade off).

McDonald’s knows that sales of products on its menu will vary at different points in their life cycle
as is illustrated on the graph to the right.
The type of marketing undertaken and the resources invested will be different depending on the
stage a product has reached. For example, the launch of a new product will typically involve
television and other advertising support. At any time a company will have a portfolio of products,
each in a different stage of its cycle. Some of McDonald’s options are growing in popularity while
arguably the Big Mac is at the ‘maturity’ stage.

ii. Priceing:
The customer’s perception of value is an important determinant of the price charged. Customers
draw their own mental picture of what a product is worth. A product is more than a physical item;
it also has psychological connotations for the customer.
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The danger of using low price as a marketing tool is that the customer may feel that a low price is
indicative of compromised quality. It is important when deciding on the price to be fully aware of
the brand and its integrity.

A further potentially adverse consequence of price reduction is that competitors match the lower
prices resulting in no extra demand. This means the profit margin has been reduced without
increasing the sales.

iii. Promotions:
The promotions aspect of the marketing mix covers all types of marketing
communications.

One of the methods employed is advertising, sometimes known as ‘above the line’ activity.
Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for
example in newspapers and magazines.What distinguishes advertising from other marketing
communications is that media owners are paid before the advertiser can take space in the
medium.Other promotional methods include sales promotions, point
of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes,
door drops, demonstrations, etc.

The skill in marketing communications is to develop a campaign which uses several of these
methods in a way that provides the most effective results. For example, TV advertising makes
people aware of a food item and press advertising provides more detail. This may be supported by
in-store promotions to get people to try the product and a collectable promotional device to
encourage them to keep on buying the item.

It is imperative that the messages communicated support each other and do not confuse customers.
A thorough understanding of what the brand represents is the key to a consistent message.

The purpose of most marketing communications is to move the target audience to some type of
action. This may be to buy the product, visit a restaurant, recommend the choice to a friend or
increase purchases of the menu item.

Key objectives of advertising are to make people aware of an item, feel positive about it and
remember it. The more McDonald’s knows about the people it is serving, the more it is able to
communicate messages which appeal to them.

Messages should gain customers’ attention and keep their interest. The next stage is to get them to
want what is offered. Showing the benefits which they will obtain by taking action is usually
sufficient. The right messages must be targeted at the right audience, using the right media.

For example, to reach a single professional woman with income above a certain level, it may be
better to take an advertisement in Cosmopolitan than Woman’s Own.To advertise to mothers with
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families, it may be more effective to take advertising space in cinemas during Disney films. The
right media depends on who the viewers, readers or listeners are and how closely they resemble the
target audience.

iv. Place:
Place, as an element of the marketing mix, is not just about the physical location or distribution
points for products. It encompasses the management of a range of processes involved in bringing
products to the end consumer.

*Summary Mc Donald’s:
Once the marketing strategy is in place, various responsibilities are given to different individuals
so that the plan can be implemented. Systems are put in place to obtain market feedback which
measure success against short-term targets. McDonald’s has to ensure that this is done within the
confines of a tightly controlled, finite marketing budget.
.
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4. Marketing Mix at Domino’s Pizza

*Marketing Mix – 4 P’s of Marketing:

Marketing includes the planning and the implementation of the marketing mix. The
marketing mix which is also called the 4 P’s of marketing represents almost all the steps that are
involved in the marketing process. 4 P’s of marketing represent product, price, place and
promotion.

*Product:
The very brand name “Domino’s” adds value to the products available in the store. The quality
and the hygiene of the pizzas and the other add-ons are taken care of by the company or the
franchisees by way of training to the employees. Domino’s also takes pride on the innovation of
many new products and ideas. Some of these are as follows

Domino’s launched the first Double Decker pizza in the UK. Domino’s Double Decadence is
created when two thin and crispy dough bases are sandwiched together with a layer of creamy
cheese and herb sauce. The pizza is then topped with vine ripened tomato sauce, mozzarella cheese
and the customers; choice of toppings.
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To make take home pizza ordering more convenient for the customers, Domino’s has designed an
online service which features the customers’ favorites and also the customers can order for pizzas
by text message via mobile phones and orders can be placed online. When the order online option
is selected, the customer is taken to the order form. And the customers has to enter the postcode of
the delivery address and then other delivery details like the phone number and e-mail address has
to be entered. Then the customer is taken to another page – the best part of the process – pizza. The
customer can select the pizza and the size of it and also the customer has the option to create hisher
own pizza and then pay for the food either online using a debit or a credit card or to opt for paying
the amount to the person who delivers the pizza.

Domino’s Heat wave hot bag was introduced in the year 1998. The Hot bags contain a heating
mechanism that is warmed by using electromagnetic energy. This technology keeps the pizza
oven-hot during the delivery. The outer material of the bag is completed with water-repellent nylon
rather than the vinyl material that was previously used. The bag also contains a 3M thinsulate
insulation, this helps in eliminating the unwanted moisture and keeps the pizza both hot and crispy.

*Priceing:
Domino’s follows a pricing policy that is determined based on the economy of the country.
The pricing policy of Domino’s gives a competitive advantage to the company over it competitors.
The price discounts available to the customers are used as a tool to attract customers into the store.
Domino’s also follows seasonal pricing in order to attract customers and to keep an edge over its
competitors. The company also has special discounts on bulk purchases.

*Place :
Domino’s Pizza stores are established in almost 50 countries and they have got more than
8,000 stores worldwide. The Domino’s stores are centrally located and in a manner convenient for
the people to walk in and also convenient for the deliverers to do their job.The distribution channel
followed by the company is mostly through takeaways, telephone ordering, SMS and online
ordering. The pizzas are delivered by way of scooters at their door step. In order to maintain the
quality of the pizzas, they are carried in a heat wave bag so that they can deliver hot and tasty
pizzas to their customers.

*Promotion:
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Pizza order discount:Domino’s offers its customers a number of discount and other promotions on
purchasing Domino’s pizza.

*A customer walked out of a Florida Domino’s store with a $10,000 cheque for having bought the
Gotham City Pizza and the promotion was called The Dark Knight Deal.

* The Dark Knight Deal also allows the customers to win Xbox 360 and other gaming consoles.

*Domino’s pizza has introduced a new value meal called the 444 deal. This 444 value deal
contains three ten-inch pizzas with one topping for $4 each with a minimum number of three
orders.

*Dominos also allows its customers to play games by the time their food arrives. There are
actually two games – asteroids and slide puzzle to play.
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5. Introduction of Pizza Hut:

The history of pizza hut and existing marketing mix of this company.

Pizza Hut strategic plan Executive Summary This proposal describes Pizza Hut and introduction
of a new product called "The Extreme." A brief history of Pizza Hut is provided at the beginning
of this proposal along with an analysis of the fast food industry. Current trends in demographics
and eating habits are included.
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A SWOT analysis has been done to identify Pizza Hut's strengths, weaknesses opportunities, and
threats so that these factors can be taken into consideration in deciding whether or not to launch the
new "Extreme Pizza." Some of the key elements of our marketing plan first describe the "Extreme
Pizza." It will be the largest pizza on the market, with double the cheese and double the toppings.
We will target the X and Y Generations, which is the fastest growing segment in America.This
segment has been successfully targeted before using the "extreme" angle. This segment is has been
a segment that hasn't been targeted to the level that they should in this industry and we plan on
changing that. We have used past financial data to establish reasonable goals for the product and
have set limits on promotional spending. We will be using a high/low pricing strategy, pricing this
new pizza at $9.99.

Our main sales promotions will be offering the Extreme Pizza bundled with Mountain Dew to
target Generation X and Generation Y. We will be using direct channel distribution as well. This
pizza will be available through dine-in, carry-out, delivery, and ordering on the Internet.

Pizza Hut was started in 1958, by two brothers in Wichita, Kansas. Frank and Dan Carney had the
idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza
Hut. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut
would be serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put
on the New York Stock Exchange under the ticker symbol PIZ.

In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the
1990's Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th
anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996,
Pizza Hut sales in the United States were over $5 million. Out of all the existing pizza chains,
Pizza Hut had the largest market share, 46.4%. However, Pizza Hut's market share has slowly
eroded because of intense competition from their rivals Domino's, Little Caesar's and newcomer
Papa John's. Home delivery was a driving force for success, especially for Pizza Hut and
Domino's.

However, 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 its a whole new product. For example, let's
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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. In 1993, 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 BigNewYorker," trying to bring the famous New York
style pizza to the whole country.

*Industry Analysis:
According to the National Restaurant Association, food service sales were $320 billion for the
500,000 restaurants in the U.S. in 1997. The U.S. restaurant industry grew 5.2 percent in 1997. Six
major segments make up the fast food segment of the food service industry. Sandwich chains, like
McDonald's and Wendy's are the number one segment, followed by dinner houses, such as
Applebee's and Red Lobster. Pizza chains are ranked third. Out of all the pizza chains, Pizza Hut
has the largest market share, 46%, followed by Domino's with 21.7%. International sales have
become more and more important to the fast food industry. In 1998, Pizza Hut was the number one
global chain with units in 88 different countries. In 1990, Pizza Hut opened two restaurants in
Moscow where 20,000 customers were served a week, about the amount serviced by 10 American
Pizza Huts. As profitable as the fast food industry is, there has always been one problem that many
fast food companies cannot seem to overcome. Because of America's large aging population,
greater awareness and interest in health issues have resulted. Nutritional value of fast food is a
huge problem. For many people, fast food automatically means low nutritional value. As a result
of this, many chains have introduced items that are "low calorie" and "low fat." Despite their
efforts, many critics and consumers feel that their efforts were not satisfactory in providing a
healthy meal.

*Marketing Objectives:
Being that Pizza Hut holds the most market share in the pizza industry, the perceived quality and
service of the company will help to ensure a better than average chance at a successful introduction
of a new product. The pizza industry firms are famous for introducing new products to spark short-
term sales. Pizza Hut as stated earlier has been very successful at accomplishing this. The
introduction of a product that keeps with today's trends is also important to reduce the risk of
failure. In recent years there has been an increase in the marketing of products with an extreme
twist to them. Mountain Dew, which is a brand name owned by Pizza Huts parent company,
Pepsico, has been very successful at repositioning itself to this segment of the market, which has
sparked new interest in the soft drink. Many other imitators have followed in there footsteps and
have been successful as well. Pizza Hut has the resources available to research and implement a
new product with great success.

Pizza Hut is the leader in innovative products and this new product that we are proposing will
surely be a success, given Pizza Huts track record. With high competition from the other top firms
in the industry, the introduction of a new product is necessary to keep one step ahead of the
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competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger than
the competitors at twenty-inches and have twice the toppings that the competitors have. Pizza Hut
will market this product along side other extreme products such as Mountain Dew, to help Pizza
Hut capture part of this new segment of the market. The selection of pizza's offered by the
competition have been significantly less creative than that of Pizza Hut in the past and Pizza Huts
reputation of offering high quality, new products will allow this new product to move into the
market as other new offerings have in the past. With the introduction of a new product, one of our
main objectives is to create recognition for our product. Our goal is to reach 85% recognition of
the new product in our target market.

As with all businesses, the most important goal of a company is to increase revenue and profits.
With the introduction of this new product we hope to increase the overall sales of the company by
7%. If we can in fact reach our goal of 85% recognition of the product, through a successful
promotions mix, then the increase in sales should be easily acquired.

*Marketing Mix Of Pizza Hut:

A)Product :
Pizza Hut should offer a new product called "The Extreme" pizza. "The Extreme" is a twenty-inch
pizza with twice as much cheese and toppings as Pizza Hut's other pizzas. This new pizza will
have many different competitive advantages. The first competitive advantage of "The Extreme" is
that it is the largest pizza on the market. No other pizza restaurant offers a twenty-inch pizza. The
second competitive advantage is that it has more cheese and toppings than any other pizza on the
market. Another competitive advantage is the Pizza Hut brand name. Pizza Hut has built a brand
name that means quality products and services. Since Pizza Hut will be introducing"TheExtreme,"
customers will automatically think this is a high quality product. The final competitive advantage
is that this product will be the first pizza to target America's youth. "The Extreme" pizza will target
Generation X and Generation Y or people between the ages of 12 and 30. This market purchases a
lot of pizza each year, but very few pizza restaurants actually target them. "The Extreme" will be
introduced on Super Bowl Sunday, 2001. During the introduction stage of the product life cycle,
Pizza Hut will try to establish a market for the product and persuade early adopters to buy. During
the growth stage, Pizza Hut will try to build sales and develop a preference for the product. Pizza
Hut will try to seek differentiation during the maturity stage. "The Extreme" is expected to begin to
decline after one year on the market.

B)Pricing:
Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its
products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the
competition, but also promote frequent sales to lower the price below them. The retail price of
"The Extreme" pizza should be set at $9.99, which is higher than Pizza Hut's competitors. Several
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sales promotions and coupons will be used to lower the price below those competitors. Since both
Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used.
Customers can purchase "The Extreme" for $9.99 and receive a two-liter bottle of Mountain Dew
for free. Pizza Hut will be able to sell two products together at a single price to suggest a good
value. The high/low pricing strategy has several advantages. First, this pricing strategy will help
segment the market. Different groups of customers are willing to pay different prices for the same
product. Pizza Hut can sell "The Extreme" to the customers who will pay the higher price to be the
first to buy and also to the bargain hunters. The high/low pricing strategy will also create
excitement. Customers will be able to try something new when they purchase "The Extreme" and
this exciting experience may bring those customers back to purchase other products. Finally, this
strategy will emphasize product and service quality. Pizza Hut sets a high initial price for its
products to send a signal to customers that its products are quality and the service is excellent.

C)Promotion:
The main theme that will be used to promote "The Extreme" is youth. Fun, excitement, danger,
and even the term "extreme" all appeal to our target market. Mountain Dew, which has already
successfully appealed to this target market, will be included in "The Extreme" promotions. The
main promotion will be a coupon to purchase "The Extreme" for $9.99 and receive a free two-liter
bottle of Mountain Dew. The objectives of this 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. This promotion will be distributed mainly by mail, but also by fliers on
college campuses around the country in order to reach the target market. "The Extreme" will be
introduced on Super Bowl Sunday, 2001, in a television commercial. Although Super Bowl
television ads are expensive, Pizza Hut has enough financial resources for one. This commercial
will be similar to the current Mountain Dew advertising campaign. Several young people will be
performing exciting, high-risk activities such as snowboarding, rock climbing, and bungee
jumping. The young people will then eat "The Extreme" and drink Mountain Dew. There will also
be similar ads in magazines that are popular with the target market such as Surfer, Snowboarding,
YM, and Maxim. This advertising campaign will create awareness of the new product in our target
markets.

D)Distribution:
The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is
successful when there is an extremely large market that is geographically dispersed. The direct
channel is also useful when there are a large number of buyers, but a small amount purchased by
each. Pizza Hut uses three different methods of selling its products directly to the market. The first
method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of time,
place an order, and the order is delivered to the customer's home. Another method of distribution is
for customers to dine-in. Customers can go to the nearest Pizza Hut, place an order, and either
leave with the order or eat at the restaurant. One of Pizza Hut's largest competitive advantages is
its restaurant style facility. Pizza Hut offers a clean place to sit down and enjoy the variety of
pizzas, salads, and sandwiches in a fun, family atmosphere. The third method of distribution is!
online ordering. Customers can now go on the Internet and place an order. This method is useful
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because it allows customers to view the entire menu, download any special coupons, and order
without having to disclose any credit card numbers. The market coverage for "The Extreme" will
be nationwide. Customers all over the country will be able to order "The Extreme" by one of the
three distribution methods.

*Control:
Stage First, we will address who will be responsible for the control measures we plan to take. The
Marketing Vice President in the Corporate Headquarters, the local/regional Marketing Vice
Presidents and the Pizza Hut restaurant managers will all play a role in being responsible for the
control. Our success or failure will be determined in a couple of ways. One main way is to
compare results to our objectives. If our objectives are not met, steps to meet them will be taken in
the future. We will also look at profits, sales revenue, unit volume of the "Extreme Pizza"
promotions used. If our budget allows, perhaps we could give a survey to our customers and get
some direct feedback about our new pizza. Ongoing research is essential for our success. Since our
plan is for one year, we feel that every 3 months we should do some type of evaluation and control
to see how we are doing. Also, during the maturity state of the product life cycle, we will improve
the quality and distinguish ourselves well from competitors. Hopefully, this process of control will
be monitored on a monthly basis.

*Summary Pizza Hut:

Pizza Hut has a successful history of introducing new products to increase sales and reach new
customers. This introduction of new products to the market on a regular basis is what makes Pizza
Hut the leader in their industry. The level of success that the "Extreme Pizza" will bring Pizza Hut
depends heavily on the correct promotions mix. As we had stated earlier, the segment of the
market that we have targeted is a very diverse group. This means that the promotion of the product
must be done in a diverse fashion. This will result in a more expensive advertising campaign than
in past campaigns, but the potential for a successful product will cover the costs and bring in
substantial profit.

The advertising campaign is going to be budgeted to use 8% of projected sales. We are forecasting
that the introduction of the Extreme Pizza will increase sales by 7%. This forecast is based upon
other new products that Pizza Hut has introduced and the impact that they have had on Pizza Huts
revenues. A 7% increase in sales for Pizza Hut will bring a total of $547 million dollars in revenue,
making the advertising budget $43.76 million. This kind of advertising budget will allow for a
mass media blitz of promotions featuring our new "Extreme Pizza". Our target market spends
many hours a day in front of the TV and computer, so the constant messages being played will
allow our product to generate a high level of awareness.

The advertising of the product is very important but the promotion of this product along side
Mountain Dew will help to put our product in a more specific category. Mountain Dew has
targeted our target market for several years and is by far one of the leaders in this market. With this
in mind promotions with Mountain Dew will be crucial to the success of the "Extreme Pizza".
With competition being so strong in this industry the threat of imitation products will surely be a
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problem to be dealt with. Pizza Hut will however have the first mover advantage with this product.
With the entry of imitation products into the market, Pizza Hut will have to adjust its mixes to
accommodate change. The promotions may have to be bigger and better than the competition, or
the product may need to be altered to give it that little bit of an edge over the competition. For
example stuffing the crust with cheese or giving a free topping with the purchase would help give
Pizza Hut an edge over the competition. Basically, Pizza Hut will need to remain flexible in the
maturity stages of the product life cycle in an attempt to continue to be the market leader. Overall,
this is a product that is not much unlike any of the other new pizza's that Pizza Hut has introduced.
What makes this new product so exciting is the marketing plan that is directing the product at a
new segment. We are taking a large pizza with a lot of toppings and marketing it as an "Extreme
Pizza" to a generation of younger adults that are consumed by this marketing tool. This is what
will make this a success. The mix of promotion and advertising we will be using will target a very
profitable, sometimes overlooked market segment known as generations X and Y.
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6.Conclusition

*Product Mix:
Product mix denotes product development, packaging, branding, and research. To identify it as part of the
McDonald’s product mix, the pizza was branded with the “Mc” prefix. The restaurant had experienced
success with Chicken McNuggets and the Egg McMuffin earlier as “non-hamburger and fries” menu
additions and McDonald’s had no reason to assume that McPizza would fail. The very fact that the brand
was called McPizza, however, set up a problem with company identity. Most consumers associated
McDonald’s with hamburgers and felt that pizza was a poor menu fit. The packaging was a standard pizza
box. The box protected the pizza, established the pizza look for the consumer, and fit the product mix very
well. McDonald’s researched the McPizza for years. Market research showed that pizza was the company’s
biggest competitor. Product research provided the technology to make pizza quickly match the McDonald’s
image of fast food. This led to the development of new pizza ovens and to the recipe for the product itself.
Consumer research provided positive reactions to the taste of McPizza. Research also indicated that this
new product would require a shift in consumers’ perceptions of the restaurant. The company felt that it
could deal with these concerns in the promotion mix.

*Promotion Mix:
Promotion mix consists of advertising, sales promotion, and publicity. Business magazines, television news
reports, and newspaper articles provided free media coverage of the product launch and it became a
significant news story. The media gave McDonald’s franchise owners and corporate executives an
opportunity to explain the reasoning behind the menu addition and to reassure their customers that
McDonald’s was still in the hamburger business. Television advertisements for the new McPizza explained
the new ovens and attempted to generate excitement for the product. Sales promotion efforts involved free
samples, launch parties, and store banners.

*Pricing Mix:
Even the price seemed right. The consumer could buy a small pizza for the same price as a hamburger and
fries. The large pizza was competitively priced with those sold by Domino’s and Pizza Hut. The marketing
team felt In the 1980s, Burger King ran a marketing campaign built around the idea that there was only one
person in North America who had never tasted a Burger King Whopper. The person’s name was Herb. In
commercial after commercial, poster after poster, consumers were urged to “Find Herb” so that he could
enjoy the taste of a Whopper. The campaign was a major failure. What do you think was wrong with this
campaign?The McWrap is a recent addition to McDonald’s menu. Doyou think it fits their marketing mix
better? Why or why not?

*Comparative analysis:(Mc Donald’s,Dominos Pizza,

Pizz Hut:
 25

Domino’s is a takeaway and home delivery pizza chain and Pizza hut has both eat-
in, takeaway and home delivery. Domino’s pizzas are available in only two sizes (small and large)
whereas Pizza hut pizzas are available in four sizes (personal, small, medium and large). Pizza Hut
had an issue with the high salt content of their products.

It was found that the products of Pizza Hut had twice the amount of salt content that an adult is
supposed to consume. Domino’s guarantees its customers that the pizzas will be delivered within
30 minutes from the time of order. In the 1980’s

Domino’s well known advertisement Noid increased the sales because of the concept of “Avoid
the Noid”. For this the company was sued my Kenneth Lamar Noid. Another advertisement
campaign in the year 2000 called the “Bad Andy, Good Pizza” didn’t gain much importance. Many
of the Pizza Hut advertisements has celebrities promoting the products.

For the year 2007, the advertising expense of Domino’s was £4,304,578 whereas Pizza Hut spent
£10,281,679. The price of pizzas and the quality of services of Dominos and Pizza Hut is
competitive to each other. Since Domino’s do not facilitate eat-in, comparing the profits of the two
companies are not possible.

It would be a great idea to concentrate on a menu for children which Domino’s lacks compared to
Pizza Hut.
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7.BIBLIOGRAPHY:

1. Mcdonalds' Marketing Mix

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2. Marketing Strategies of McDonalds
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3. Pizza Hut & the Existing Marketing Mix of
This Company ...
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4. Pizza Hut Free Essays 1 - 30
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5. Marketing Mix For Pizza Hut Free Essays 1 -
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6. Free Essay Background on Pizza Hut &
Existing Marketing Mix of Comp
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7. NIRULAS MARKETING STRATEGIES -
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8. Domino's and Pizza Hut stress different
aspects of delivery ...
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9. McDonald Marketing Mix Analysis
CheatHouse.com
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