Pizza Hut Inc. is the leading and largest restaurant in terms of market share, revenue, and outlets. Since its establishment in 1958, the company has realized massive expansion to become a world leader. It offers fast foods, with pizza being the main product on its menu (Patra, 2021). It eliminates the problem of having to prepare food by providing fast food. It creates convenience for customers by providing their preferred meals.
The target segment for the company is young single adult males, families, students, and working class with a tight schedule. It targets people who are not willing to cook at home and are interested in fast foods.
The company has a strong brand name that has attracted a wide pool of customers in many places. It has also invested in online marketing and home delivery services that enable customers to place their orders from their convenient places. Having more than 18,000 outlets helps the company satisfy a wider market and achieve its marketing objective (Patra, 2021). The company has more toppings and cheese than its competitors.
To maintain the leading position in terms of quality, variety, tastes, and preferences.
Marketing Plan Objectives
- Improve growth and profitability
- Fulfill customer’s demand and enhance their satisfaction
- Expand the food market share and increase sales
- Maintain competitive edge
- Promote and improve brand awareness
- Company Name: Pizza Hut Company
- Industry: restaurant industry
- Headquarters (Piano, Texas, United States).
- Year founded: 1958
- Number of employees: 300,000 worldwide
- Annual revenue (estimated): 2020: $11.955 billion. 2019: $12.900 billion. 2018: $12.212 billion (Patra, 2021)
- Major products and/or services: Pan Pizza, Pasta, Wings, Breadsticks
- Target customers: Families and single males 25-34
- Distribution channel(s): The direct channel
- Key competitors: Domino’s Pizza, Olive Garden, Papa John’s, and Zume Pizza
- Link to website: www.pizzahut.com
Situation and Company Analysis
The company is operating in a growth economic environment that supports continuous expansion. It will be easy to find staff since many people will like to be associated with a strong company brand. The current interest rate is increasing, and the company is likely to realize better performance in the future (Patra, 2021). There is high consumer confidence as the company has maintained quality products and outstanding service.
Pizza Hut is determined to adopt new and better technology to remain relevant in the market. Since the company is operating in a dynamic and competitive environment, it has invested in innovation, research, and development. It embraces new ideas that can promote customers’ experiences and facilitate better market satisfaction. For instance, the company has made it easy for its customers to place orders online and have their products delivered within a short period. Moreover, the company has adopted customer-centric technologies to enhance the management of information systems (Patra, 2021). Investment in systems such as computer-based customer data has improved the ability of the company to make better decisions, forecast the future, conduct daily transactions, collect data, and manage resources. Pizza Hut has acquired efficient vehicles to enhance the delivery of products to customers, reduce the cost of doing business, and conserve the environment.
Pizza Hut is operating in a competitive environment where the risk of new entrants is high. The company is expected to keep on improving the quality of its products and service to its customers (Weil, 2021). Its decisions should be guided by market trends and expectations. Since there are many players in the industry offering similar products, the company is determined to maintain its strong relationship with its customers.
The company has many competitors, including Cici’s Inc., Papa Murphy Inc., Domino’s Inc, and Ceasar Little Enterprises Inc. There are also many small competitors in different places where the company operates. Indirect competition emerges from dietary fads, restaurants, and frozen pizzas in grocery stores (Patra, 2021). The company manages to remain strong in the competitive market by promoting its strong brand and striving to satisfy all its customers.
Pizza Hut Inc. is affected by the political realm in the U.S. The Food and Drug Administration offers health guidelines that every company must follow to remain in business. The regulations sometimes come with cost implications that affect the ability of the company to generate returns. Minimum wage is a major issue affecting the company since it limits its profitability. Raising the minimum wage would influence the company to cut employee hours or raise the prices of its products.
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Market Segmentation & Targeting
Pizza Hut applies a mix of psychographic and geographical segmentation variables to avail its products to the market. It uses an undifferentiated targeting strategy in designing its services and offerings depending on customers’ choices. It also uses a value-based positioning strategy to establish a strong and long-term image for consumers (Bazikyan, 2021). The company’s products offer ready-to-eat and easy-to-cook food to its customers. It solves the problem of having to prepare and cook food creating convenience for its customers. Many people are usually busy when they leave their places of work, and the company helps them relax by providing a wide variety of food (Kelso, 2021). Potential customers are families, students, and young single males. The company targets customers who are interested in accessing convenient food.
Customer Decision-Making Profile
Identifying the Customer and Problem
Most customers are young people who are not willing to cook at home. The decision-makers in families are usually mothers since they determine what others eat most of the families. Their decision depends on the characteristics of the product, availability, and price. Pizza Hut has improved the availability of its products by investing in online services (Bazikyan, 2021). Customers can now place their orders and have them delivered within a short period.
Factors Influencing Customer Decisions
Many factors influence customers’ decision to buy the pizza from the company, including their taste and texture, preferences, the location where they can be found, and climate. Demographic and personal characteristics have an impact on the buying decision (Kelso, 2018). Most of the customers buying the product are high and middle-income earners since the product is relatively expensive to low-earners (Patra, 2021). Lifestyle influences certain customers to go for the product while hindering others. Other influential factors are the level of involvement, attitudes, and brand loyalty.
Reaching the Customer
Marketing strategies that can help reach out to the target segment are direct selling and internet marketing. Direct selling can enable the company to establish a strong face-to-face relationship with its customers (Kelso, 2018). It can facilitate improved satisfaction of clients since feedback can be received easily. Internet marketing would enable the business to reach out to more customers, including those located in different places (Weil, 2021). It would combine the use of email and the web to advertise and promote e-commerce sales.
Positioning and Differentiation
The company is determined to improve its position on restaurant-style food and expand its product line to attract and satisfy diverse markets. It differentiates its products on taste, reliability, quality, and appearance. The objective of the company is to offer the best quality products in the markets and ensure that all its customers are satisfied (Bazikyan, 2021). It has opened up many branches around the globe to meet diverse customer requirements.
The company is leading in the pizza market since it has the largest variety and menu items. It presents the largest pizza, and it has more toppings and cheese than all its competitors. Having a strong brand name that is recognized around the globe helps attract many customers (Patra, 2021). The majority of customers will be willing to pay more to have their preferred brands. The strong customer base enables the company to meet its sales objectives effectively.
Market Niche and Positioning Strategy
The company targets young adults, families, students, and the working class who have a busy schedule. It positions itself to meet the needs of its customers by ensuring that they can receive their orders within a short period. The slogan “make it great” implies that the company is interested in providing the best quality products to its customers (Patra, 2021). Moreover, it is changing its strategies by adopting emerging technology to remain ahead of its competitors.
To maintain our leading position in terms of quality, variety, tastes, and preferences.
To customers, Pizza Hut is the only fast food that differentiates from others because it has the best quality and comes with a unique taste, texture, and appearance.
It is recommendable for the company to differentiate its products to meet diverse market requirements. Since the company products are relatively expensive, it is necessary to provide cheaper products to serve low-income earners and developing markets. The reposition can enable the company to penetrate more markets and achieve better economies (Bazikyan, 2021). It implies that the company has to invest in the development of new products to serve different markets.
Pizza Hut is the company’s brand name, and it has enabled it to remain competitive. Many customers have a positive attitude and perception towards it today. Since the brand has existed for many years, its customers continue to prefer it over that of competitors (Bhasin, 2021). The company is determined to maintain its outstanding performance.
The brand promises to keep on improving and changing everyday moments by creating new and better celebrations. Its campaign presents the company as the best place to celebrate life achievements, whether small or big. It highlights our happy moments and associates the brand with better outcomes and satisfaction.
Brand Voice and Personality
The Pizza Hut brand is a voice the company’s customers should hear and come to celebrate.
The Pizza Hut brand is never meant to misguide or mislead customers but to promote their satisfaction.
Brand Positioning and Strategy
The company needs to keep on improving its brand by enhancing its product portfolio to appeal to more potential customers. It should make it easier for customers to find their preferred pizza or meal (Lucas, 2020). Increasing categories based on tastes and sizes can help achieve a better outcome in the market.
Marketing Mix (4Ps)
The company follows a “single brand positioning” referred to as the “PIZZAS,” and it applies a “multiple product strategy”. Although pizza is the main product, it deals with other products such as pasta, desserts, appetizers, and beverages (Bhasin, 2021). The company sells standardized products with modifications, and the four types of pizzas are thin crust, sausage crust, stuffed crust, and pan.
The company follows the price skimming (high/low) pricing strategy during the introduction of a new product. Prices are set relatively high than those of competitors and then gradually drop. The strategy helps create excitement, is associated with better quality, and supports “the extreme pizza” segmentation.
Place: Distribution Strategy
Pizza Hut has opened more than 18,000 restaurants, and it intends to open more in the future. Customers can place their orders online through the company website. Home delivery services mean that the company products are now more accessible (Bhasin, 2021). Pizza Hut international is now present in countries such as Asia, Europe, and North America.
Promotion: Integrated Marketing Communications Strategy
Promotional strategies to be applied are direct marketing, interactive marketing, and media advertising. The campaign will help build awareness, enhance positive relationships with customers and improve sales.
The goal of the campaign is to increase sales by 20% within three months of its implementation.
- Primary Message: Improve the awareness of the available products and explain their features in terms of tastes, variety, and quality.
- Message Pillar: The Company will motivate its customers to keep coming back by providing quality products and outstanding services.
- Proof Point: Customers are interested in quality products and brands that have remained loyal for years.
- Call to Action: Apply improved promotional strategies
Promotional Mix and IMC Tools
- Personal selling
- Direct Marketing
- Public Relations.
The company ensures that sales align with the marketing strategy to enhance customer satisfaction. It achieves the objective by building relationships and discovering needs.
Measurement (KPIs – Key Performance Indicators)
- Increasing revenue and sales
- The increasing number of customers
- Rising website visitors
- Increasing generated leads
- Rising online orders
|Timing||Activity Type||Brief Description||Audience||Owner|
|Today’s Date||Example: |
|Add new key messages that fit repositioning strategy and audience focus||Tech company hiring managers||Jim Hill|
|6/01/2021||Logo update||Redesign the logo features to make them appealing using 3-D technology||Marketing department||Marketing manager|
|12/02/2021||New menu||Bringing in a new generation of pizzas with the best ingredients, flavors, sauces, and drizzles||Production departments||Production manager|
|13/04/2021||Conducting customer survey||To determine whether the updated logo and new menu have improved business according to customer tastes and preferences (Patra, 2021).||Sales and marketing departments||Marketing manager|
|1/06/2021||Updating online pizza business||Based on the customer survey outcome, an online ordering system will enhance customer familiarity with the menu and order their preferred pizza||IT department |
|04/08/2021||Outdoor advertising||Use of billboards to target on-the-road customers. They will be positioned in shopping malls, supercentres, and near colleges||Marketing department||Marketing manager|
|10/10/2022||Launching of the new pizzas on the new menu||Offering free samples for tasting to introduce different pizza varieties||Catering and marketing departments||Marketing manager|
The main risk factor is market competition since the company is facing stiff competition from companies such as Domino. Another threat is competitors’ creation of health-conscious customers and campaigns against fast foods. Customers feel confident with a product that is labeled ‘fresh’ while Pizza Hut pizza is perceived as ‘indulgent, which customers may perceive as being less healthy (Patra, 2021). Pizza Hut is reducing these risks by updating its menu, including pizza ingredients, to change its customers’ perceptions.
Bazikyan, V. (2021). Market segmentation of Pizza Hut and Dominos. The Social Grabber. Web.
Bhasin, H. (2021). Marketing mix of Pizza Hut. Marketing91. Web.
Kelso, A. (2018). Pizza Hut playing catch-up with digital, marketing investments. Forbes. Web.
Kelso, A. (2021). Pizza Hut extends relationship with beyond meat with a new plant-based pepperoni pizza. Forbes. Web.
Lucas, A. (2020). Pizza Hut’s slumping US business eyes turnaround with new management. CNBC. Web.
Patra, J., (2021). A case study on Pizza Hut. Business Upside. Web.
Weil, D. (2021). Yum’s Pizza Hut Adds Beyond Meat Pepperoni Topping to Menu. The Street. Web.
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