Pizza Hut Analysis: SWOT and PEST

2716 words (11 pages) Essay in Marketing

07/06/17 Marketing Reference this

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By 1972, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by PepsiCo, who later also bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Triton, and in 2002 joined with Long John Silver’s and A&W Restaurants to become YUM! Brands. Pizza Huthas opened Pizza Hut Express which specializes in small 6″pizzas. The oldest continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district known as Aggie Ville.

2.0 SWOT for Pizza Hut

2.1 Strengths

Pizza Hut’s strength is the company’s main strength is their focus on their products and services. Added, it was the atmosphere or facilities, not a hotel in the fast food category. The idea of this kind of location is to create bonds between family and friends. Another factor is the continuous of development efforts of the restaurants to provide healthy pizza. This is because they found that a percentage of their target, the health conscious. The idea is to decrease or cut unnecessary calories and fat, when cheese is added to the dough. Reinvented not there to stop when the company including to their menu, the different messages pizza tastes and joint, which is based on the flavors and tastes of consumers. Additional trust from the market, the company to catch up with their research and development pizza drain, when another answer to their endless customer requirements.

2.1.1 Weakness

Pizza Hut was designated as the largest user of the impact Hut cheese to form a branch, the lack of supply of the cheese. Selected final identification to buy the consumer and have a narrow choice for the bench. In addition, the company reports, they suffer from high costs according to their production, the root of this problem is reinvented in a highly competitive and their pizza just to meet the customer’s taste buds. Results, management fees push restaurants formations to the branch have additional costs not know, because of their actions, there are more possibilities to the failure of the majority of their consumers.

2.1.2 Opportunities

Pizza Hut has open many doors through their pizza to remake or product innovation. This is clearly on the rise, revenue and increase brand loyalty with their customers. Their services and products are outstanding and provide a taste of the new menu variety of products and expansion moved their dough, drinks, and dessert. When said earlier, the opportunity is also part of the marketing strategy of the company is to provide the appropriate application of technology, and through their online ordering system. The use of the horizon is still feasible but expands the technological world, where almost 70% of their customers were sitting in front of your computer to the company smart idea to build their relationship with them, along with the unique convenience of their customers.

2.1.3 Threats

Many companies are Pizza Hut and high competition disturb not different from those companies. The competition makes the company need to invest up to push their limits and support just answered a dangerous competition. Pizza Hut is also concerned about their customer satisfaction and most extensive R & D allocated to customer needs. The role of price, promotion, advertising, as well as the transmission system of the competition is too dangerous and leading customer confusion continuous. When there are many options, customers find it hard to elect and sometimes lead to dissatisfaction.

Market share

The ground at nearly is Pizza Hut. The business makes a lot of customers. There are many ways of a Pizza Hut and their add-ons.

The customer can choose whether the direct is called to do by online or go to the shop make order. Direct call makes the customer on distribution to a concrete number to be distribution to the Pizza Hut call center. A customer will be here to ask about their name and address. The particular will be recorded, hold in a data bank when the same customer calls, their addresses already been survey.

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Customers will be able to say that their comment and staff working in the call center will carefully check the confirmation command. The staff will detail the delivery time and price for customers on the side. After a time, the comment will be sent to the customer. The customer will be victimized and enjoy pizza.

For online ordering, information technology infrastructure is fully involved. The customer needs to be registered in the Pizza Hut (Malaysia) website using Internet. From there, they need to register. If the customer makes first time with the online services, the customers need to register. At registration, the customer will need to fill a form, to inquire about the details of the customer such as name, identity card (IC), address, telephone number and other important details and will be stored in a database. Interesting fact, online ordering, Pizza Hut is the customer can save their favorite choice menu ordering.

Then, the customer will say the comment before the check. After the inspection, the customer will need to pay through A transaction authorization password (tantalum carbide) is needed for safety reasons. After payment is solving, there will be an e-mail sent to the customer to confirm the command is received. The customer will receive delivery upon the comment in the hour or on a specific date, customers pick by itself.

Why are there good of business

The fast-food self-concepts such as KFC, McDonald’s, A & W and Marrybrown seems to draw more lunch time crowd than Pizza Hut and diet eat concept basically serve the dinner crowd. This led to a major restaurant space slag and waste of capacity, due to the time difference. However, Pizza Hut Malaysia is part of KFC and strategy, this is the second generation of the type of the place through restaurants experienced by Duo Mita’s Pizza

Pizza hut can attempt to do is to introduce a fast-food lunch package includes a pizza, garlic bread, coleslaw silk / salad and a Pepsi and pricing lunch loading equal or cheaper each other fast-food painting lunch time crowd. Most office workers only one hour and the operating speed is critical to its success. This will certainly increase sales and finally jumped pizza eating culture in Malaysia.

Pizza Hut restaurant located in the central and combined with modern trend, one of the classics of the atmosphere, traditional restaurants. Comfort of our restaurant, they carefully design lighting and modern music, to create an attractive environment. Our entire restaurant is in air-conditioned. Our health network and our strict compliance to the rules of the health visiting mission to ensure that our entire restaurant is clean and hygienic.

3.0 Conclusion

Pizza Hut has many targets which it has achieve in a given period of time. The time-period is mostly a tear. Therefore, in order to fulfill the targets differences strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changes with the strategy in the market conditions as well as the targets. Pizza Hut has built the strong reputation of its brand throw giving the quality products and earned the respect from its customers. Its innovation and quality with commitment took higher and higher during past few years. But still the company is planning to go and capture more market share. The employees and the management know what they have to obtain through the targets which have been put to them and the plans they have assumed help them recognize the way they will accomplish the objectives. Similarly, Pizza Hut has multiple of targets to set their mind to let them know there is difference of strategies to successfully achieve the targets set.

1.0 Introduction

The factors which influence a decision making are also termed as its environment. There external and internal environment but internal is controlled by the organization. Micro is specific to the industry and it is different form others industries, and lastly Macro, generic in nature and impacts the whole business environment. The Macro Environment includes all the factors which are external to the firm and which cannot be controlled by the organization. And also they are not specific to any industry but influence all the firms but the influence may be at different level. As marketing manager, must have knowledge of different factors which influences the marketing decision of a firm, And also since they are not controllable, one must adjust the decisions as per the changes in the environment. The important factors comparing the Macro Environment of Marketing are Demographic, Economic, Socio-Cultural, Natural, Technological and Political-Legal. Influence of each factor shall be discussed in detail in the following parameter.

2.0 Macro-environment factors would impact on the operation of Pizza Hut of Malaysia

2.1 Demographic factors

The demographic factors in the take-out pizza industry have provided new positive opportunities for companies in the industry. Now day, Pizza hut have many ways to order. Many people like to use the number specially to order the pizza from Pizza Hut. Pizza Hut’s general market segment is for younger generation and when theybut they go wide in this thing. The segment high incomes and business class families which can spend money on the best pizza hut the market. Pizza Hut’s global slogan is also describing in market segmentation that is “Now it’s time to eat more”. But in Pakistan, the slogan is “Share the good times”. The range age group is12-30 years. Pizza Hut Pakistan offers Halal foods to all its customers. Pizza Hut’s general market segment is younger generationand they got wide in this thing in pizza hut. They segment high incomes and business class families which can spend money on the best pizzas in the market. Pizza Hut’s global slogan is also describing its market segmentation that is “Now it’s time to eat more”. But in Pakistan, the slogan is “Share the good times”. Main age group is 12-30 years. Pizza Hut Pakistan offers Halal foods to all its customers. Every country have their own food type and they mostly won’t serve those food that they won’t do service and this will make they business more better.

2.2 Economic environment

Economic environment is the factors that influence consumer buying power and expenses design. For Pizza Hut, this part is care to the overall future for the ecommerce. The macroeconomic of a state has a large effect on a business such as Pizza Hut. Factors in the economy include the revolting internal products, the unemployment and monetary inflation rates, the foreign commerce deficit and profit. If the overall economy of a country they are not so favourable, minor people will franchise Pizza Hut because they all may will most likely loss a best amount of money instead obtain the profits to the customer.

2.3 Natural environment

Pizza Hut for being the first mainstream fast food chain to jump on the Natural wagon. I saw an advertisement today for Pizza Hut’s new “Natural” pizza. What’s so natural about this pizza

1. Multi-Grain Crust

2. Sauce “made-with” organic tomatoes

3. Choice of new “natural”

4. “All-Natural” mozzarella cheese

It’s just yet another example of the bastardization of the term “natural.” Junk food purveyors of the world are all racing to slap the term “natural” on their packaging to win the hearts, taste buds and market share of pseudo-conscious consumers.

2.4 Technological environment

The technological environment is all about the new technology idea and the new markets and opportunities. It to replaces with those products and service. They also need to research and development activities drives in this department, country they are spending on R&D. Besides that, technological environment are include administration programs to encourage more and administration institution to require a new product that are safety. A higher the technology has best effects in the marketing business environment. The factors that have a huge influence were the research and development, and new technology. The research and development has effects on the business of Pizza Hut they were through R&D new products are developed for the business, the internet and e-commerce also contributes to the technological factors because through them customers can give feedback regarding the products of Pizza Hut which can also have in the research and development, and the service of the company. The technology can makes the customer do research on the special outlet

Political environment

Political environment is all about laws, administration agencies, and pressure groups, influence and limit agency and individuals within a community, increasing legitimizes and also increasing emphasize on ethics and social duty. Business legislation is used to protect consumers, businesses, and the interests of community. It is the most hard from the four factors because the manner and beliefs of people are too hard to quantify. Aside from the attitudes and beliefs, demographic factors such as population and life expectancy are also important aspects in the analysis of the social factors. The influence of the values and beliefs affects the business of Pizza Hut. For example in India beef or pork is not served in the Pizza. The alter trends in the taste of the consumers also play an important role in the foreign analysis of the environment. If the current trend in the society is being health conscious, thus consumers will request that the foods be healthy. It’s most hard from the four factors because the attitudes and beliefs of people are difficult to quantity. Beside from the attitudes and beliefs, demographic factors such as population and life expectancy are also important aspects in the analysis of the social factors. The influence of the values and beliefs affects the business of Pizza Hut. The changing trends in the taste of the consumers also play an important role in the external analysis of the environment, if the current trend in food is Thai. Therefore Pizza Hut can add an additional food such as Vietnamese or Thai soups. If the alter trend in the society is being health conscious, thus consumers will demand that the food be healthy.

Cultural environment

Cultural environment is an agency and other preferences, and behaviour’s. Core beliefs passed on through family, reinforced by institutions and secondary beliefs are more open to change. Sometimes that people’s views of, themselves, others organizations army that affect. Society’s basic values, perceptions, society, nature and the universe. Each countryhas its own specific culture which is called National Culture and can be defined as. The values, belief, manner and normal shared by individuals from the specific country that shape their behaviour and beliefs. Every global organizationhas its own culture which is called Organizational Culture. Pizza Hut manages in global environment by giving more importance and emphasis to the national culture than its own culture. This culture also makes the company have to be more respect and will be more top in the country.

3.0 Conclusion

Pizza Hut is company which is a business model had stood the test of time. Today they are an industry giant with name demonization and restaurants most famous in the globe. The company has been able to remain in market and share despite efforts by competitors due to introduction of new products and services and the customer focus. Pizza Hut service is to achieve customer satisfaction and loyalty. They created a system in order to receive customer feedback in order to improve their service. Besides that, they also created a bonus service which makes individual store managers focus on the customer experience. The bonus design needs to be restructure to avoid the current situation of managers of poor performing stores receiving bonuses while managers of very profitable stores, receiving less if not nothing at all.

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