Group Members :-

ContentsHistory of pizza hutVision and missionCompetitorsProduct lineLaunch in IndiaSwot analysisPorters five force modelAnsoff matrixKey success factorFuture plansSource of information

History 1958-Frank and Dan Carney open the first Pizza Hut in Wichita,

Kansas. 1972 -1000 restaurants are open throughout the USA. 1977-PepsiCo bought Pizza Hut. 1980-Pan Pizza was Introduced 1986-By now, there were 100 restaurants in the UK and 5000 world

wide. 1988-The UK's first delivery unit was opened in Kingsbury, London. 1992-There were 9,000 restaurants in 84 countries 1994-10,000 Pizza Huts were open for business. 1997-PepsiCo decided to focus on their drinks business. As a result,

Tricon Global Restaurants was born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. The Sicilian Pizza was launched in the UK, where there were 277 restaurants and 100 delivery

2000-Pizza Hut introduced The Edge, a thin pizza with toppings all the way round the edge.

2005-The 4forALL was launched. Over 600 restaurants were open in the UK, 70 of them as Franchise units.

2008-We bought Godfather's Pizza in Ireland with 28 stores. We also launched our Pepperoni Stuffed Crust & Garlic Crust pizzas, larger 4 for ALL and a new range of Tuscani pastas in the UK.

Mission :- We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!"

We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment.

We are accountable for profitability in everything we do, providing our shareholders with value growth.

Vision :to make the people know that for all the eating items they desire to eat can be made available in minimum time without our effort excluding money

MAJOR COMPETITORSDomino's PizzaPapa John'sLittle Caesar's

Pizza price comparison Company Price range(rs)

Domino’s 39-265

Pizza hut 75-350

Pizza hut versus domino’sBoth chains claim to be leaders: Pizza Hut for

casual dining, Domino's for delivery. But there's quite a bit of crossover. Domino's has been renovating its takeout storefronts to add eat-in tables and now does up to 40% of its business in some locations that way. Pizza Hut claims as much as 50% of sales from delivery in some stores, and ten of its outlets are takeout only. Pizza Hut boasts 30% year-over-year sales growth in India; Domino's says its is 55%

Contd.Domino's are not a restaurant player.At Pizza Hut you get table service. You get to

order appetizers, salads, and dessert as well.

Market share captured by pizza hut

PRODUCT LINE

Pan The Italian Cheesy Bites Stuffed Crust Thin Tortilla Pizza Delicious Margherita pizza Tuscani  Traditional Lasagne* Spinach & Ricotta

Cannelloni* 

Salmon Pasta Bake Tomato & Mozzarella

Mezzaluna*  Tagliatelle alla carbonara Chicken & Mushroom

Pasta Bake  Tori's Tomato Pasta Bake Arrabiata

Launch of pizza hut in IndiaThe Pizza Hut franchise stepped into the Indian fast food

market by opening a dine-in restaurant at Bangalore in 1996. The pizza franchise soon expanded itself in India and now has the KFC brand beneath its umbrella. The fast food franchise was the first international fast food firm to make an entry into the Indian scene and has thus pioneered the Indian pizza market.

The menu provided at the Pizza Hut franchise is that of a complete meal. Customers are considered as honoured guests at the fast food franchise and are treated accordingly. It is the customer satisfaction provided by the specialty food franchise that enabled it to position itself at the top of the Indian fast food market.

The fast food franchise also ensures that it adds an Indian touch to all the varieties of pizzas that it makes

Performance in IndiaPizza hut is believed to have close to 50% market

share of the organized pizza –retailing segment in India.According to the article Financial Express, the

market size of the pizza segment is around US$ 87 million and currently growing at the rate of 15 per cent to17 per cent per annum. According to Pizza Hut sources, most of their outlets are financially successful, encouraging further expansion. In India, the average investment for each outlet is US$ 275,000-335,000and is borne by the franchisee.

SWOT ANALYSIS

STRENGTHS AND WEAKNESSStrengths Part of the largest restaurant chain in the world Over 20,000 franchises around the worldBrand leader in the UK Innovative range of pizzas under one roof Famous television advertising Food attracts people of various ranges from young to old. Sound financial situation and international turnover. offer full service and delivery service Pizza Hut sits on top of global full-service restaurant treeWeaknesses Loyal customers are feeling that the satisfaction of the pizzas

is declining. While Novak said Pizza Hut’s expansion into China is going

exceedingly well, there is battling problems in New Zealand and Australia. There are complex computer systems and internal conflicts

from franchisees. There is a lack of an organic pizzas, which will limit the target

marketPricing strategies

OPPORTUNITY AND THREATSOpportunities New Pizzas with different crust sizes and flavours. Pizza Hut expands Indian market menu and looks to old

favourite to bolstersales in the US Pizza Hut targets upscale products and a downscale

consumer baseThreat Rising competition undermines Pizza Hut as consumers go

for greaterconvenience Rising cheese costs threaten marginsThreat from Dominos pizza, also from Mc Donald’s who

have tried to introduce a new meal that is a Pizza called: McPizza.

Porters five forces model

The threat of new entrantsReduce the market shareOffer cheaper productsConsumer shift from pizza hut to otherBargaining power of suppliersSupplier control the cost &supply of raw materialReplace it with substitutes which are cheaperShould order in bulk so price will be cheaperThreat of substitutesIt is very high as different substitutes are

available.

Bargaining power of buyersBuyers have low powerBecause of few players in the industryDegree of rivalryIt can either be low-level or high levelCompetition is high, though market is wide.Must have aggressive advertisement and

competitive pricing.

Ansoff Matrix

Ansoff Matrix shows the main strategic options available to firms.

The best option for Pizza hut is to introduce new products in existing market.

So this firm should follow a product development strategy. This may involve

substantial modification of or additions to its present product range, which in turn might require extensive research and development. So Pizza Hut can introduce a new Pizza with different toppings in order to widen their product range.

Also as Pizza Hut lead this market segment they have the money to indulge in research and development.

We feel that Pizza Hut should not follow the strategy of diversification, this is a high risk strategy as it would be very difficult for them to find a completely different product as they are un experienced and have limited skills.

Promotional strategy

Promotional strategiesBuilding emotional bond with customers.Bell rang by customer when they leave Providing entertainmentOrganizing contestLaunching pizza with Indian flavor like

tandori pizza and tama –tamDiversification of pizzasCoupon to purchaseUsing billboard on main stream

Factors for successOffering value food.Moving beyond metros. Aggressive marketing and tie-ups with local

and popular brands. Developing the local supply chain.Customising product offerings

Future plansFor Pizza Hut, India is:

one of the top 5 growth markets worldwide. Future plans India:presence in 35 cities by

2005, 55cities by 2009The expansion programmewill make Pizza Hut the

fastest growing westernrestaurant chain in India.

Source of informationwww.times100.com

www.marketingteacher.comwww.icmrindia.org