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Pizza hut Strategic Marketing examines the concepts and processes in market-driven strategies which mean escalating importance of Superior customer value, Leveraging distinctive Capabilities, responding quickly to change in the marketplace. I select Pizza Hut and identify their marketing activates and tools of strategic marketing. Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also the world’s largest pizza chain, with over 12,000 restaurants across 100 countries, employing more than 300,000 people, serving 1.7 million pizzas everyday to more than seven million customers. Pizza Hut is the highest-flying brand of Yum! Restaurant internationally, which is also the parent company of KFC, Taco Bell, A&W and Long John Silvers. Taking other four brands with Pizza Hut, Yum! Restaurants International makes up the world’s largest restaurant group.

Pizza Hut provides the perfect mix of great food, great service and great place at a great value to our customers who are looking for a grand experience. We believe in positive intension, and maintain a strong internal environment by developing our competitive work force, which we trust. The latest technological tools along with the best support systems from our franchiser YUM! International is used to ensure easy workflow and to make our restaurants the favorite in the Country.


The success of Pizza Hut relies heavily on delighting our customers by ensuring that all their needs and desires are met in every way. Hence, we give strong importance to our marketing efforts to ensure that. Along with customer satisfaction, we make sure, that the business makes money! Therefore, the first task is to understand our consumers from every aspect.

In this regard, we have tried to gain a thorough understanding of our competitive environment and continuously strive to develop unique business ideas to make our business a success. Thus, Pizza hut has successfully attained a broad range of loyal customers, to whom pizza has gained extreme popularity. In order to expand this range, our marketing team is involved in developing new products and concepts, all the time. Above all, not only do they make GOOD FOOD, they are also famous for providing great service and dining experience, to give their valued customers more reasons, to return. Segmentation of a product or good is very much important to position a market. So to position a market, it is needed to segment a market at first. Pizza Hut segmented its products in the following way:

1. Geographic Segmentation 2. Demographic Segmentation 3. Psychographic Segmentation Now, they are described in the following manner:

Geographic Segmentation


At first Pizza Hut segmented the market on the basis of the geographic angle. It segmented it products in the following geographical manner: Variable

Customer Segmentation

World Region or Country

United States, United Kingdom, Bangladesh, India.

Country (Bangladesh)

Region Dhaka, Chittagong.

Demographic Segmentation Pizza Hut also segmented its consumer market into different types of income along with the age of an individual. Among the consumers of geographic segmented consumer market, it is very necessary to consider the demographic segmentation. As fast food industry a factor of cost, so based on this purpose we will consider income segmentation. Variable

Customer Segmentation

Religion

Islam, Hindus, Christian, Buddhist etc.

Psychographic Segmentation It is also very important to the customer of the fast food industry. Psychographic Segmentation, it plays the most important role. Psychographics segmentation divides consumers into different segments based on social class, life style or personality. It is very important to design the products and services of fast food industry according to the consumers’ psychographic factors.

Variable

Customer Segmentation

Social Class

Upper lower class, Upper middle class and Upper upper class.

All these segments dictate the person’s need of different kind of fast foods. From this


segmentation process, we can say that it is very much effective to each of the consumer. So for the fast food industry these are the most important segmentation variables regarding Pizza Hut From this segmentation process, we can say that it is very much effective to each of the consumer. Therefore, we think it will be the good segmentation process for Pizza Hut in Bangladesh.

Target market of pizza hut “Many men many minds” and it is in all around the world. Therefore, the Organization that sells its product to consumer and business markets are not all the same. In this case, the company cannot appeal to all buyers in those markets or at least not to all buyers in the same way. On the other hand, not the all company influences the buyers too. They are very much different from their numerous, widely scattered characteristics, and too varied in their needs and buying practices. Market segmentation reveals the firm’s market segments opportunity. The firm now has to evaluate various segments and decides how many and which ones to target. The company, Pizza Hut targeted all the people of the world. And these people will be from teenager to any age group: from lower-middle class to upper-upper; regardless to race, religion, gender literacy level, life style or personality any and every single person who is interested in fast foods backed with affordability spend the expense of possessing fast foods is their target market. The company, Pizza Hut makes two regions in Bangladesh and reveals the attention of the customer in Bangladesh to maximize their revenue as well as their earnings. In evaluating different market segments, a firm must look at three factors: Segment size and growth, Segment structural attractiveness and Company’s objectives and resource. For evaluating each of the segmentation process, we can follow the following criteria: Types of

Level of

Evaluation

Segmentation

Segmentation

Segment Size Segment Structural Company’s Objectives (% of Attractiveness & Resource Population)


Dhaka City

5%

Easy to survive Possibility

for

Customer satisfaction at high a high profit

return Geographic

Large sales people.

Large population Maximize revenue Chittagong

2%

Possibility

City

to

high Customer satisfaction at

return

a high profit

Greater

profitable

customer

Types of Segmentation

Level of Segmentation

Evaluation Segment Segment Size (% of Structural Population) Attractiveness Easy to survive

Company’s Objectives Resource Customer

Possibility for high satisfaction Demographic

Income

5%

&

at

return

high profit

Large population

Large sales people

a

People are price Capable to provide insensitive

better

customer

service

After evaluating different segments, the company must now decide which and how many segments it will target. Target market consist s of a set of buyers who share common needs of characteristics that the company decides to serve. So according to the segmentation of demographic, Pizza Hut chose the income level and in case of psychographic it chose the life style variable of the customers. A company can follow the following three types of strategies: •

Undifferentiated Marketing

Differentiated Marketing

Concentrated Marketing

Choosing the target marketing strategy When a company chooses a target marketing strategy, they have to consider their company’s resources and the product or service available. Since, Pizza Hut had a lot of resources and thus why, they selected the differentiated marketing strategy to


capture the target market easily.

Pricing of pizza hut Price is a important factor to sell a product. Price is the amount of money charged for a product or service, or a sum of the value that consumers exchange for the benefits of having or using the product or service. And price is the only element of generating revenue. There are three approaches to make pricing of a product or service; are:

Cost-based Pricing

Value-based pricing

Competition-based pricing

Since the target market of Pizza Hut is upper level of customers and also in Bangladesh they haven’t any strong market challenger, thus why, Pizza Hut followed the value-based pricing strategy. The pricing of Pizza Hut is given bellow:

Tools and strategic marketing Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also the world’s largest pizza chain, Pizza Hut is the highest-flying brand of Yum Restaurant in the world. So the are using some strategic marketing including: We can show it in the following figure:

Becoming Market Oriented

Achieving

Leveraging

Superior

Distinctive

Performan ce

capabilities


Customer Value/ Capabilities match

Superior Customer Value Pizza hut provide superior customer in terms of the following criteria: •

Ingredients quality is high

Hygienic and Delicious in taste

Well decorated and Comfortable internal environment

Located in a nice place

Highly trained and smart employees

Warm reception

Facilities of car parking

Faster and better delivery service

Exclusive offer

Past experience

Distinctive Capabilities All our Pizza Hut sites work on the CHAMPS standard •

Cleanliness

Maintenance

Hospitality

Product

Accuracy

Speed

These six objects define the very core of customer expectations. CHAMPS have become the vehicle, which drives Operations Excellence into our business and is also supported by a reward and recognition scheme for the Team members. As Pizza Hut is not only the acknowledged leader of pizza industry worldwide, but also the world’s largest pizza chain, they have the capability to cope with the change of environmental change including geographic, cultural difference and change political and legal changes.

Pizza huts future in Bangladesh


In the next three years, Pizza Hut plans to roll out another 4 outlets in Bangladesh. •

Pizza Hut is not convenience and Price is very much high

This is an American’s franchisee religious matter may come with the issue of ”Halal” and “Haram”

Limited branch is Bangladesh (Only two branches: Dhaka and Chittagong)

No advertisement, publicity and No event marketing and specific sponsorship

Lack of brand awareness about Pizza Hut by the general people

Huge gap between new offers

Postponement EDGE service

Low share of local company

Though the Pizza market is increasing thus why, other international brand may enter into the market

Customers may switch to another well and cheap price Pizza restaurant because the price of Pizza that is very much high

Different exclusive offer by other

SUGGESTION • Attracting customers with cultural programs. • Broad sponsorships • Spreading the promotional policy and increase Share market. • Arranging road show.


• Use of knowledgeable persons • Pizza Hut should have to increase its branches. (At least divisional cities branches) • Price should be matched with the consumer affordability. • Pizza should have to adopt colorful advertisement both electronically and non-electronically • Pizza should take affective promotion policy • Sponsorship and event marketing should have to introduce in their market policy • Consumer awareness should be created through the mass media • Customized products should be produced • Home delivery service should be included

CONCLUSION Pizza Hut is only one of the most servicing and valuable fast food restaurants in world which provide better qualitative products. It is also the leading restaurant in Bangladesh. No doubt that it the market leader in Bangladesh which provide better service. But only for some promotional policies are not adopted by the company. So, it this restaurant company can adopt the promotional policies then there will be no competitor in the world which can promote or compete them. -------------------------------


Pizza Hut  

Strategic Marketing examines the concepts and processes in market-driven strategies which mean escalating importance of Superior customer va...

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