Pizza Hut Marketing Research Project
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Transcript of Pizza Hut Marketing Research Project
Submitted By:
Affan ManzoorAyyaz TanveerHussain Iftikhar
MBA II, Sec A
M. A. HananMir Arooj HasanRaja Shakir Khan
Sarah Zaheer Syed
AT LAUNCH• Pizza hut was launched in Pakistan in Karachi with
several outlets• Later, they expanded to Lahore and Islamabad, and
then slowly spread to other major cities in the country1992
• SEC AMarket Segment
• Quality food chain which provides the best value for money to its customers Image
• Sole pizza franchise in the country• Dominated the market nationally• Market leader Competition
TODAY
Competition
Internationally acclaimed fast food
chains like KFC, McDonalds and
Subway
Direct competitor and international pizza restaurant chain-Dominos
Local fast food chains
Distribution
44 branches in Pakistan
Plans to reach the target of 88
branches within next 5 years
Special home-delivery and take
away centers (HDCs) have been set-up
across Lahore and Karachi
Modes of service
Dine-In
Take Away
Home Delivery
SCENARIOChanging consumer preferences
Customized menu to incorporate local flavors
Tap into a bigger market segment
Customer inflow shifted from SEC A to SEC B
Competitive long-term strategy - shift focus from SEC A to SEC B
SCENARIOPizza Hut is experiencing above average growth and plans on expanding its operations 2-fold
Revenue
Dine-in Sales60%
Home Delivery
40%
The home delivery
segment was more a premium
facility
Opportunity to develop and capitalize on this rapidly emerging segment
Understand the true market
potential of this segment
Mr. Rasikh Ismail (DCOO Pizza Hut)
“The management, at present, believes that the initial shift observed in the dine-in segment from SEC A to SEC B has not resulted in lapsed users of SEC A as was previously assumed, but was rather the function of a trend shift in the consumer
preferences of SEC A from dine in to home delivery”.
•Has SEC A fallen into lapsed users or has a shift in trends occurred causing SEC A to move from dine-in to delivery?
Marketing Problem
•What measures and modifications can be administered (mainly menu) to capitalize on the opportunity that a high SEC A concentration in the delivery segment has presented?
Business Decision
•Identify the prevalent and/or changing consumer preferences, tastes and trends of the SEC A consumer segment (pertaining to fast food category).
Research Problem
Research Objectives
Primary• Determine whether
SEC A has indeed shifted preferences from the dine-in to the home delivery segment
Secondary• Identify key fast food
consumption patterns of SEC A• Check price sensitivity of the
SEC A consumer segment with respect to home delivery
• Gauge Pizza Hut’s brand perception among SEC A)
Research Methodology
Exploratory Research Phase•Develop a deeper understanding of the research topic and industry for our research team•Understand consumers tastes, preferences, consideration factors•Develop a hypothesis•Identify important variables
Descriptive Research Phase
•Test variables identified in the exploratory phase •Get quantifiable responses•Test Hypothesis
Exploratory Research Design
Literature Survey(Secondary Data)
• Serve as a good starting point for our research • Lifestyle and social magazines, newspapers and online resources
Focus Group Discussions (Primary Data)
• Information sought is not very personal to individuals, can be easily shared and entails no technical details for which an expert may be required• It is cost effective• It is time effective• Enables us to receive various point of views at the same time, encourage interesting discussion and help us extract a bundle of information• 8 respondents• 3 FGD’s – Approx. 1.5 hours each
Exploratory Research Design
• Education and Occupation
• User• Lapsed User• Non-user
• Males (50%)• Females
(50%)
• 13-19 years• 20-25 years• 26-35 years
SEC AUser
Status
GenderAge
Groups
Selection Criteria
Discussion Guide OutlineConsumption
Habits
Consumption Preferences
Consideration factors (where
to dine-out)
Consideration factors (what to order)
Brand Preferences
Decision Making Process (Dining-out & home delivery)
Brand image of Pizza Hut vis-à-vis
its competitorsCustomer
Satisfaction
Competitors of Pizza Hut
Restaurants/Fast food joints considered
Avg. expenditure
Occasions vs.
spontaneous decisions
Price Sensitivity
Descriptive Research Design
Sample
SEC A
Users and Lapsed Users
Age Bracket (13-50)
Males and females
• Cross-sectional study (Gathering primary data)•Screener questions based on sample specifications•Self administered questionnaires
Exploratory Research Findings
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
General Food Category Likes
Fast food and ‘handy’ food with friends
Desi Food with family
Fast food (pizza and burgers)
Desi food
Fast Food Continental Food Good
understanding of why it is called fast food and the purpose it serves
What to eat depends on:
Mood Budget (some
cuisines are considered expensive)
Money Distance or
accessibility
Mood depends upon whether you are dinning out with friends or with family
Which restaurant to order from depends on:
Budget Food category
(mood) Consultation with
friends Time taken for
delivery Delivery Charges Quality of food
Budget Location Consulting with
friends
Mood Quality Time taken for
delivery
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Restaurants for home delivery (friends):
KFC Mc Donald’s Hot ‘n’ Spicy Gino’s
Any restaurant with good ‘paratha rolls’
Hot ‘n’ spicy Hardees
Wasabi Pizza Hut McDonaldsGinosPizza and Pasta Pizza TimeHot n SpicyRed Apple
Restaurants for home Delivery (family):
Desi Food Joints BBQ Joints Parents choices
kept in minds
Pizza hut Nando’s Hot and spicy
Salt n PepperHot n SpicyBBQ (mutual ConsensusIs done among the family before ordering for family)
Consideration Factors for Eating out with friends:
Comfort Decent Crowd
(for girls only) Hip Place Lively
Environment
Hip crowd Lively “fun”
environment Emphasis is
more on the experience
Decent place
Comfort Decent Crowd Ambience
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
What to eat depends on:
Mood Budget (some
cuisines are considered expensive)
Money Distance or
accessibility
Mood depends upon whether you are dinning out with friends or with family
Which restaurant to order from depends on:
Budget Food category
(mood) Consultation with
friends Time taken for
delivery Delivery Charges Quality of food
Budget Location Consulting with
friends
Mood Quality Time taken for
delivery
Restaurants for home delivery (friends):
KFC Mc Donald’s Hot ‘n’ Spicy Gino’s
Any restaurant with good ‘paratha rolls’
Hot ‘n’ spicy Hardees
Wasabi Pizza Hut McDonalds Ginos Pizza and Pasta Pizza Time Hot n Spicy Red Apple
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Restaurants for home Delivery (family):
Desi Food Joints BBQ Joints Parents choices
kept in minds
Pizza hut Nando’s Hot and spicy
Salt n Pepper Hot n Spicy BBQ (mutual ConsensusIs done among the
family before ordering for family)
Consideration Factors for Eating out with friends:
Comfort Decent Crowd
(for girls only) Hip Place Lively
Environment
Hip crowd Lively “fun”
environment Emphasis is
more on the experience
Decent place
Comfort Decent Crowd Ambience
Consideration Factors for Eating out with family:
Formal Restaurant
Decent Crowd Lively
Environment
Formal environment
Calm, and clear and a clean experience
Quality food and service
Formal Decent Family
comforting environment
Place that can offer variety of food
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Restaurants for dining - out with family:
DHA Club YUM Freddy’s Café Gourmet Grill
Freddy’s Aylanto Nando’s Restaurants on
M.M Alam road
Pearl Continental
Defense Club Tabaq BBQ Dynasty
Restaurants for dining - out with friends:
Hot and spicy Espresso Cosa Nostra
Cosa NostraAylantoNandosEspressoArizona GrillFreedy’sEnglish Tea HouseZouk
Home delivery frequency:
15 – 20 times/month with friends and for self
15-20 times a month ( with friends and family)
3-4 times a week
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Eating-out frequency:
10 – 15 times/ month for guys
5 – 10 times/ month for girls
3 – 4 times/ month with family for both genders
3-4 times a month
Others order regularly (daily)
Once a week, hence 3-4 times a month.
Home Delivery Occasions:
Spontaneous Mood Don’t like what is
cooked at home Did not get
permission to go out
Spontaneous Mood Don’t like what is
cooked at home
Spontaneous Mood
Timing of eating-out:
Any time with friends for guys
Mostly Breakfast/ Lunch with friends for girls
Any time with family for both genders
When out with friends
When they get time off from college or after classes
With family
Most of the time its dinner with family
Lunch is more a friends and colleagues thing
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Average pocket money
Rs. 4000/month to Rs. 6000/month
Did not give a definitive answer but spend about RS (300-400) daily
Self Earning
Paying for home deliveries and dining-out by:
Paid by self through pocket money for home deliveries and eating-out
Paid through pocket money
Paid by self
Avg. Expenditure per head (eating out):
Rs. 500 – 700
Rs 700-1000 Rs 1000 maximum
limit
Rs.1150 (Rs.1500 – 900)
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Avg. Expenditure per head (home delivery):
Rs 300 – 350 Rs 300-500 Maximum Rs 500
Rs.400 – 700
Ideal Restaurant should have:
Great setting and ambience
Good Taste Economical
(especially for guys) Location should be
close by (especially for guys)
Decent crowd (especially for girls)
AmbianceQuality FoodServiceEconomicalLocation
Ambience Quality of the
food Healthy
ingredients
Qualitatuve Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Pizza Hut Specific Opinion:
The first thing that comes to mind for almost all teenagers when they hear the word ‘pizza’ is Pizza Hut.
‘Pizza Hut se dil bhar gaya hai’
Would not go there even if they change the menu
Order the same pizza whenever they go to Pizza Hut
Thin crust is preferred but Pizza Hut’s thin crust is too thin and too hard; thick crust is too thick and gives a feel like they are eating a ‘naan’
Perceive pizza hut as an old man who is past his prime and about to die.
Already very expensive
Deteriorating quality.
Oily pizza’s Have less cheese
and are “doughy”
Gino’s,Pizza Hut and Pizza Time are the places that comes to their mind when asked about pizza.
Pizza Hut is not a top notch pizza provider in the town.
Dough is very heavy, pizza is very oily, cheese concentration has decreased and the amount of topping also reduced
Qualitatuve Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Restaurants Considered for Pizza
Gino’s Pizza Time Pizza Hut Kings and Queens Domino’s
Gino’s Pizza time Pizza and pasta Domino’s
Gino’s Pizza Time Pizza Hut Kings and Queens Domino’s Pizza and Pasta
Reasons for not going to Pizza Hut:
Crowd stares (aunties, uncles and other families give judgmental looks)
Too much of family crowd
‘Backward’ crowd Will ONLY go with
friends, NEVER with family
Oily and fattening pizza (for girls)
Do not provide value for money
Have more substitutes
Deteriorating quality
Too many flavors Rectangular
pizza
Crowd is “cheap” females find it
unpleasant over there
Pizza Hut is all boys place
Their service is not consistent as there are many delivery issues regarding the order and timing
Avg. Expenditure for Eating out at Pizza Hut:
Rs. 350 – 450 per head RS 400 - 500
Qualitatuve Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Average Expenditure of Home Delivery of Pizza Hut:
Rs. 250 – 300 per head
Rs 400 - 600
Marginal price hike vs. Eliminating deals perception:
If there is a marginal price hike, for example of Rs. 100, this age group would still order Pizza Hut home delivery
If deals are discontinued then majority of this age group would stop ordering Pizza Hut home delivery
Price increase dosen’t matter unless the quality is good and deals are considered very important
Qualitative Research Findings
Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years
Preferred Medium of communication:
Facebook (most preferred)
Pamphlets Billboards TVC’s Texts are
considered IRRITATING
No one visits the websites for deals and promotions
Texts Facebook Billboards
Facebook Magazines TVCs
Survey QuestionnairePreferred
Food Category
Dine-out vs. home
delivery
Frequency of purchase
Price sensitivity
Brand preference
Consideration set
Customer satisfaction
Top of mind recall
Meal Deals
Average Expenditure
Consideration factors
(purchase)
Promotion
Descriptive Research Findings
Gender Segmentation
Dining Preference
Dining out Home Delivery Both
Male 56.7% 9.0% 34.3%
Female 38.8% 13.8% 47.5%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%56.7%
9.0%
34.3%
38.8%
13.8%
47.5%
•Majority of the males prefer Dining out•Females opt for Home delivery rather than dining out
Importance of Meal Deals
Dining Out Home Delivery Both
Male 19.4% 35.8% 44.8%
Female 16.3% 53.8% 30.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
19.4%
35.8%
44.8%
16.3%
53.8%
30.0%
•Females go for Home Delivery deals more than Males•Females also go for Meal Deals when dining out•Males prefer both Dine in and Home delivery meal deals
Frequency of Home Delivery
Less than 4 times in a month
5 - 10 times 11 - 15 times 16 - 20 times 21 or more times
Male 39.7% 35.3% 16.2% 2.9% 5.9%
Female 45.0% 32.5% 12.5% 5.0% 5.0%
2.5%
7.5%
12.5%
17.5%
22.5%
27.5%
32.5%
37.5%
42.5%
47.5%
39.7%
35.3%
16.2%
2.9%5.9%
45.0%
32.5%
12.5%
5.0% 5.0%
The General trend here suggests that the frequency of ordering for Males is more than Females in a month.
Reasons for Home Delivery
Spontaneous mood Don’t like what is cooked at home
Friends / family gathering at home
I can’t go out (no driver, permission
problems etc.)
Male 41.2% 32.4% 17.6% 2.9%
Female 57.5% 31.3% 3.8% 5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
41.2%
32.4%
17.6%
2.9%
57.5%
31.3%
3.8% 5.0%
Females tend to order home delivery in spontaneous mood, where as males tend to order more when they don’t like food cooked at home and when guests are over
Importance of Factors Affecting Home Delivery Choices
Price Quality of Food
Variety of Menu
Speed of Delivery
Freshness (Hot) of
food
Delivery Timings
Deals Of-fered
Male 63.2% 94.1% 60.3% 85.3% 83.8% 85.3% 70.6%
Female 60.0% 86.3% 66.3% 86.3% 85.0% 86.3% 76.3%
5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%
63.2%
94.1%
60.3%
85.3% 83.8% 85.3%
70.6%60.0%
86.3%
66.3%
86.3% 85.0% 86.3%
76.3%
For most of the respondents Quality of food is the most important criteria when ordering Home Delivery, second speed of delivery is kept in mind when ordering Home Delivery
Preferred Joint for Pizza
Pizza Hut Pizza Time Kings & Queens
Pizza and Pasta
Domino's Gino's
Male 52.2% 11.7% 6.7% 8.3% .0% 20.3%
Female 64.9% 10.1% 8.5% 2.8% 4.2% 13.9%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
52.2%
11.7%6.7%
8.3%
0%
20.3%
64.9%
10.1% 8.5%2.8% 4.2%
13.9%
Males and Females prefer Pizza Hut the most as a preferred joint to dine in, but females prefer more dine in than males
Dining In vs. Home Delivery Preference for Pizza Hut
Dining Out Home Delivery Both
Male 44.1% 19.1% 36.8%
Female 53.8% 21.3% 23.8%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
44.1%
19.1%
36.8%
53.8%
21.3%23.8%
Axis Title
For most Dinning out is prefer than home delivery, but females prefer more than males to dine out
Ala Carte Vs. Delivery Deals
Ala Carte Menu Special home delivery deals
Male 17.2% 75.0%
Female 29.2% 67.7%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%
17.2%
75.0%
29.2%
67.7%
Both Males and Females prefer deals as opposed to Ala Carte when ordering in
Home Delivery Avg. Expenditure/person
200 or less 200 to 500 500 to 800 800 or 1000 .1000 or more
Male .0% 12.5% 54.7% 6.3% 26.6%
Female 3.1% 27.7% 20.0% 16.9% 32.3%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
.0%
12.5%
54.7%
6.3%
26.6%
3.1%
27.7%
20.0%16.9%
32.3%
For Most of the males the budget is Rs.500- Rs 600, For most of the females the budget is Rs. 1000 or more when ordering in.
Satisfaction with Pizza Hut Home Delivery Service
Speed of Delivery Freshness (Hot) of food
Delivery Timings Deals Offered
Male 78.1% 64.1% 71.9% 71.9%
Female 63.5% 66.7% 63.5% 50.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%
85.0% 78.1%
64.1%71.9% 71.9%
63.5% 66.7% 63.5%
50.0%
Majority of the males are satisfied with the speed of delivery, majority of the females are satisfied with the freshness of the food when ordering in, But majority of the females are less satisfied with the deals being offered for ordering in
If Deals Were Eliminated:
Continue to order from Pizza Hut Discontinue to order from Pizza Hut
Male 69.2% 30.8%
Female 71.2% 28.8%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0% 69.2%
30.8%
71.2%
28.8%
Majority of the respondents will still order from Pizza Hut if the deals were eliminated, But males would probably discontinue more than females if deals were discontinued
User & Lapsed User
Dining Preference
Dining out Home Delivery Both
User 48.1% 11.7% 40.3%
Lapsed User 45.1% 14.1% 40.8%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%48.1%
11.7%
40.3%45.1%
14.1%
40.8%
There is no apparent difference between preferences users and lapsed user when it comes to dining preference, most prefer to dine out
Importance of Meal Deals
Dining Out Home Delivery Both
User 24.4% 42.3% 33.3%
Lapsed User 10.0% 47.1% 42.9%
2.5%
7.5%
12.5%
17.5%
22.5%
27.5%
32.5%
37.5%
42.5%
47.5%
24.4%
42.3%
33.3%
10.0%
47.1%42.9%
Majority of the users dine out, while majority of the lapsed users order home delivery, for both users and lapsed users majority of the lapsed users meal deals are important when dining out and when ordering in
Frequency of Home Delivery
Less than 4 times in a
month
5 - 10 times 11 - 15 times 16 - 20 times 21 or more times
User 35.9% 37.2% 15.4% 3.8% 7.7%
Lapsed User
47.9% 32.4% 12.7% 4.2% 2.8%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
35.9% 37.2%
15.4%
3.8%7.7%
47.9%
32.4%
12.7%
4.2% 2.8%
Lapsed users have ordered in the least as compared to users in the last month, Users order in more frequently as compared to lapsed users in the month
Reasons for Home Delivery
Spontaneous mood
Don’t like what is cooked at home
Friends / family gathering at home
I can’t go out (no driver, permission
problems etc.)
User 46.2% 39.7% 3.8% 5.1%
Lapsed User 54.9% 22.5% 16.9% 2.8%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%46.2%
39.7%
3.8% 5.1%
54.9%
22.5%16.9%
2.8%
The main reason for ordering in for users is that they don’t like what's cooked at home, where as for lapsed users it depends on their mood when ordering in
Importance of Factors Affecting Home Delivery Choices
Price Quality of Food
Variety of Menu
Speed of Delivery
Freshness (Hot) of
food
Delivery Timings
Deals Of-fered
User 53.8% 88.5% 61.5% 93.6% 83.3% 89.7% 75.6%
Lapsed User
70.4% 91.5% 66.2% 77.5% 85.9% 81.7% 71.8%
5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%
53.8%
88.5%
61.5%
93.6%83.3%
89.7%75.6%
70.4%
91.5%
66.2%77.5%
85.9%81.7%
71.8%
The main factors relevant for ordering in for users are, speed of delivery and quality of food, where as for lapsed users quality of food and freshness are of utmost importance
Preferred Joint for Pizza
Pizza Hut Pizza Time Kings & Queens
Pizza and Pasta
Domino's Gino's
User 75.0% 4.6% 7.6% 7.5% .0% 7.2%
Lapsed User 41.8% 15.9% 7.8% 3.0% 4.7% 27.3%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%75.0%
4.6% 7.6% 7.5%.0%
7.2%
41.8%
15.9%
7.8%3.0% 4.7%
27.3%
For both users and lapsed users the most preferred Pizza joint is Pizza Hut
Dining In vs. Home Delivery Preference for Pizza Hut
Dining Out Home Delivery Both
User 43.6% 16.7% 38.5%
Lapsed User 53.5% 26.8% 19.7%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
43.6%
16.7%
38.5%
53.5%
26.8%
19.7%
Majority of the Lapsed users prefer to dine out as well as opt for home delivery where as, majority of the users preferred to dine out and order in
Ala Carte Vs. Delivery Deals
Ala Carte Menu Special home delivery deals
User 18.3% 76.1%
Lapsed Used 28.8% 66.1%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%
85.0%
95.0%
18.3%
76.1%
28.8%
66.1%
Most of the Users prefer special deals for home delivery.
Home Delivery Avg. Expenditure/person
200 or less 200 to 500 500 to 800 800 or 1000 .1000 or more
User 2.8% 21.1% 25.4% 11.3% 39.4%
Lapsed User .0% 18.6% 49.2% 11.9% 20.3%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
2.8%
21.1%25.4%
11.3%
39.4%
.0%
18.6%
49.2%
11.9%
20.3%
For majority of the users the average expenditure per person is more than Rs 1000, where as for lapsed users the average expenditure ranges betweeen Rs. 500-800
Satisfaction with Pizza Hut Home Delivery Service
Speed of Delivery Freshness (Hot) of food
Delivery Timings Deals Offered
User 69.0% 69.0% 64.8% 60.0%
Lapsed User 70.2% 57.9% 68.4% 59.6%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0% 69.0% 69.0%64.8%
60.0%
70.2%
57.9%
68.4%
59.6%
For Users the speed of delivery and the freshness of food are the two most important factors where as for lapsed users speed of delivery and delivery timings are the most important factors
If Deals Were Eliminated:
Continue to order from Pizza Hut
Discontinue to order from Pizza Hut
User 66.7% 33.3%
Lapsed user 71.7% 28.3%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
65.0%
75.0%66.7%
33.3%
71.7%
28.3%
Majority of the users would discontinue to order from Pizza Hut if deals were eliminated and most of the lapsed users would continue to order from Pizza Hut as deals are not so important for them.