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Product Evaluation and Recommendations for Pizza Hut

Product Evaluation and Recommendations for Pizza Hut

MARKETING MANAGEMENT Project Proposal Presented to Professor Nagasimha Balakrishna Kanagal Indian Institute of Management, Bangalore On September 27, 2011 By Section A Atul Suhas Hegadepatil (1111013) Divya RM (1111026) Mohd Qasim (1111039) Raja Simon (1111052) Shrikanth C A (1111066) Sama Kajur (1011200)

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Product Evaluation and Recommendations for Pizza Hut

Project Tile: Product Evaluation and Recommendations for Pizza Hut

Background: The Pizza Market in India has been witnessing rapid growth on the back of positive developments and presence of massive investments. The market growth is largely fuelled by the rising young population, working women, and increasing disposable income of the middle-class households. The Pizza market in India comprises of major foreign players like Pizza Hut, Dominos, Pizza Corner as well as domestic players like Smokin Joes and Pop-Tates.

Marketing Decision Problem: Pizza Hut is one of the earliest foreign players along with Dominos to enter Indian market in 1996. Since its entry in India, its USP has been providing Dining Experience. Its menu list comprises a large number of items under different product ranges such as Classic, Favourite, Signature and Supreme. However, it is facing fierce competition from other players in the industry like Dominos which in addition to offering a wide range of products also offers quick delivery time. Pizza Corner invented its own one-of-a-kind no-pork Pepperoni pizza. Under these circumstances, we intend to study the existing product and marketing strategies of Pizza Hut and suggest suitable innovations in product, pricing and positioning.

Scope and Limitations of the Project: Scope: The project would analyze the various marketing strategies primarily focusing on product strategy for Pizza Hut taking into account product specification and differentiation, unconventional promotional offers, consumer preferences, pricing strategies etc. We would finally use these results to

conceptualize a new product and promotional strategies to spearhead new as well as existing products. Limitations: The project being hypothetical confines our analysis in certain issues due to the following:

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Product Evaluation and Recommendations for Pizza Hut

1. The study covers the region in and around Bangalore. So customers and franchisee chosen are very narrow in terms of their attributes and preferences. 2. Most of the innovative ideas in pizza industry are easily copied by the competitors but their entry during Pizza Huts new product launch will not be considered. 3. We assumed that Pizza Hut is cost competitive and so we would not consider their financial data in pricing strategy. We would rather use only customer viewpoint and industry standard.

Methodology: The following are the different steps that will be used in the analysis of our project: Step-1: Collection of data for the analysis can be divided into primary and secondary data. Primary Data Collection: The primary data collection includes the following: 1. Survey of target customers on the needs and wants to enable us come up with new products and product differentiation. 2. Survey to understand the consumer preferences and choices in the present pizza market. 3. Survey of customers who currently prefer the competitors product on their perception of strengths and weaknesses of the competitors product. 4. Interview with existing Pizza outlets on their expectation from the product vis a vis the competitors product and the current market trend Secondary Data Collection: The secondary collection of data includes the following: 1. Media reports on the pizza in the present scenario. 2. Market share of various Pizza brands in India and the position of various competitors. 3. Data about the strategy of the existing player on promotion and expansion 4. Industry standards on pricing Step-2: Based on the results of the study, we will recommend a product strategy consisting of the following:

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Product Evaluation and Recommendations for Pizza Hut

1. We will evaluate current product offerings and suggest new products or product category with differentiating character under multi product strategy. 2. The pricing of the product will be arrived at on the basis of customers willingness to pay and competitors pricing. 3. In the next step we will be analyzing various segments of target customers and this will be done on the basis of customer preferences collected through primary and secondary data.

Deliverables: Some of the key deliverables from this project analysis would comprise: 1. In terms of the product detailed specification of the products and variants that the company shall be offering, time line of launch etc. 2. Product Strategy: What type of product and its variants can be offered? 3. Promotional Strategy: What type of medium to be used in introducing the product? How to capitalise on their existing distribution and franchise network for the new product? 4. Pricing Strategy: What should be the feasible and correct price for the product being offered?