Pizza Hut Is One Of The Flagship Brands

Pizza Hut is one of the flagship brands of yum! Restaurant. 2nd Umbrella. It is the world’s largest Pizza Chain with our 12,500 restaurants across 91 countries.

Pizza Hut was started in 1958, by two brothers Frank and Dan Carney in Whichita, Kansas. Firot they decided to start parlor. They borrowed $600 from their mother and opened the very first Pizza. Almost tem years later, Pizza Hut was servng one million customers a weed in their 310 locations. Pizza Hut is an international franchise and restaurant chain having presence in many countries.

It is the largest pizza restaurant company in the world. It has 12000 outlets in 90 countries employing more than 2 launch people.

The first Indian out that was opened in June 1996 Banglore, In India, Pizza Hut was 139 restaurants across 36 cities. Pizza Hut has been voted the “Best Family Restaurant” for the second year running at the 2007. Tommy’s parent friendly awards. “Pizza Hut is known for quality innovation and category leadership.”

SWOT ANALYSIS

STRATEGIES

Pizza Hut is an international franchise and restaurant chain having presence in many countries.

As Pizza Hut is the largest restaurant chain in the world. This means that they can dominate their market and can invest in new product. It has 20000 franchise around the world. Although they have large competitor such as dominos pizza, but still they have low competition they have the advantage our dominos pizza as Pizza Hut are a restaurant as meek as a take away which dominos pizza, this means pizza hut may have more sales and therefore more income, which may help pizza hut with any improvement. The have the specialization in American Pizza that no other company is able to compete till to date. The company also offers many Side dishes like breadsticks, mangos, garlic bread etc.

Pizza Hut with a large variety and types of pizzas under one roof and is known for innovative pizzas.

Pizza Hut with a large market share and strong networks has become a market leader in the united kingdom.

The marketing of the company is another strength of the company. They have many media partners and use television advertising that attracts people of various ages.

WEAKNESS:-

Loyal customers are feeling that their satisfaction for the Pizzas is declining and other restaurants are offering much more. This may lead to customer dissatisfaction and reduction in the customers and which results in customer commenting towards the main to competition that is dominos pizza.

There is some internal confusion within the company as their processes one computerized. This has hard to high turnover well as demotivation of staff.

While pizza hut’s expansion into china is going exceedingly and there is battling problems in New Zealand and Australia. This therefore meaning they are losing money in planes such as New Zealand and Australia, this could be done to their culture and lifestyle, mayble its means that pizza hut need to introduce more range of products in order to attract more customers of all lifestyles and cultures.

THREATS:-

The company faces serious threats from other international restaurant chains like KFC, Mc Donald’s, Dominos Pizza etc. the competition in the pizza industry is increasing and rising competition underviews. Pizza Hut as consumers go for greater convenience, this will lower the amount of sales consumed by pizza hut as these sales are going to smaller companies who are charging less.

The rising prices of spetial ingredients.

Rising cheese costs threatens margins cheese is essential to the business as it is there primary good, there for they are unable to go with it, this may lead to pizza hut eventually buying goods from abroad or buying cheaper brands.

Threats from dominos pizza also from Mc Donald’s who have tried to introduce a new meal that is a pizza called Mc Pizza. So pizza hut will have to improve or maintain the quality of pizza more good and accurate in order compete with dominos and Mc Donald’s to endure that pizza hut has dominate this market. This will lead to keep their prices down and which make them to buying goods from abroad where it is cheaper.

Besides these competitors the local restaurants that provide pizzas offer food item at more affordable price as well as known the taste of the local people batter. Many of its competitors are trying to capture the market share of the pizza hut by introducing similar kind of pizzas and food items.

OPPORTUNITIES:-

Pizza Hut has been serving pizzas in the united states since 1957. It was just two years that they are offering franchise and it has been also growing over since.

Rising competition underviews pizza hut as consumers go for greater convenience, this will lower the amount of sales consumed by pizza hut as these sales one going to smaller companies who are charging less.

Pizza Hut can introduce new pizza with different crust sizes and flavors. This may attract new customers with new tastes and this many increase their sales.

Pizza Hut has expanded into the Indian market menu and looks to the old favorite to bolsters sales in the U.S.

Pizza hut has targetest upsale products and a consumer base this mill attract customers into the more milling to buy these pizza.

PEST ANALYSIS OF PIZZA HUT

1. POLITICAL ISSUES :

The political issues includes the factors such as laws on business employment, pollution and taxation apply on the organization which it has to follow according to the rules. It may also include the regulatory frame work operating in judicial system which may affect the business in different way.

2. ECONOMIC FACTOR :

In economic factor it will be beneficial for the country to have good GDP. If the GDP of the country is good then that means that per capita income of the people will be increased and they will be ready to spend more money. So this will both green signal for the country. In the beginning of the month, most of the people spend more money and they visit pizza hut very often. But when the inflation rates increased the cost of raw material also increased and it will ultimately lead to the increase in the price of the product which may lead to reduce in the number of the customer.

3. SOCIAL FACTOR :

Social factor of the country can also affect the various firms. As pizza hut is basically from America so the organization is overwhelmed by western culture. There are several social forms of the society which consists of upper class, middle class, middle upper class, and lower class. For example upper class spends more money as compared to the lower class. Every country has culture norms, values, beliefs and religion which can affect the organization.

4. TECHNOLOGY FACTOR :

Technology also plays an important role. Now a days technology is improving. Like baking and heating ovens will be of new and efficient service. Due to new technology there are new way of marketing like internet, telemarketing and the organization can market their product with much more faster pace. Through internet with the help of management information system all type of data regarding daily transaction, future forecasting and decision making. On the other hand new vehicles will make their service more efficient.

POSITIONING

Pizza Hut was the first multinational brands to enter the food retail sector in India. .

In worldwide and in India, Pizza Hut has come in the synonymous with the ‘best pizzas under one roof’. This is only because they belief that every pizza in pizza hut has its own magic. It is only because of this belief they ignited the passion to create, and serve the best product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut has provided uncompromising product quality and offer customers the highest money value and giving services that is warm, friendly and personal.

One of the main factor in Pizza Hut’s success has been its unique dining experience. Crewmembers at Pizza Hut strive each day to provide ‘customer mania’ – the kind of service that ensures the customer that their every is a memorable one.

Pizza Hut’s constant effort to provide extra value , whether these are the pizzas which are available to suit every price range, new promotions or the introduction of innovative product ranges that puts yun on every customer which leads the growth of pizza hut in India which is 136 restaurant in 36 states.

MARKETING STRATEGY

Pizza Hut’s marketing strategy is very simple: “we want to satisfy our customer by offering them the best.” Pizza Hut has always concentrated on customer service and satisfaction. In 1995 Pizza Hut began two customer satisfaction programs and that were:

1-800 number customer hotline,

and a customer call-back program. These programs were implemented to make sure that their customers are happy and satisfied.

Full service restaurant and good delivery services are the another big strength and even a competitive advantage of the pizza hut. Most of Pizza Hut’s competitors do not have restaurants. Because of the restaurant, Pizza Hut can market to different segments that other pizza chains cannot. For example, Pizza Hut can market more as compared to dominos and lilttle ceaser . Pizza Hut offers a sit-down, conversational type restaurant where families can take their children for birthday parties for example. Pizza Hut’s broad selection of products also makes it easier for them to market to different market segments.

The other two strategies followed by Pizza Hut is C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) and 3F’s (Fun, Friendly and Familiar). These two strategies have really helped Pizza hut to evolve out as a market leader with a competitive advantage.

PORTERS FIVE FORCES MODEL

1. BUYER’S BARGAINING POWER :

Pizza Hut command supplies at the lowest rate as pizza hut has higher market reach and greater market with respect to the Pizza industry. And due to the established market position Pizza Hut uses the strategy of commanding supplies at the penetration cost. However on other hand their competitors cannot command supplies at lower cost. Thus the muscle power of pizza hut is way beyond the others.

2. SUPPLIERS GROWING BARGAINING POWER :

Suppliers growing bargaining power is not a major problem ever till date but with the rise in the food cost, suppliers are not ready to supply items at the manual cost. They also demanded more due to the increase in food cost and their muscle power grew only due to the inflation. If the suppliers lost increases then the company either has to increase the menu costs or reduce the operational costs to recover. Failing to do this will make the company into losses or to lose out in the industry and the market position can also be finished.

3. THREATS OF NEW ENTRANTS :

There are many new entrants in the Pizza industry, some of them are

Papa John’s Pizza

US Pizza

With economic reforms and liberalization, many new entrants also want the revenue of 200 billions Indian fast Food Industry.

The New entrants in the industry always wants to capture more and customers by offering discount and with their new style. The youth generation always wanted some change and they frock their restaurants and their taste buds are getting modified. The new entrants are likely to enter the tier cities and make their presence our there. They have to constantly differentiate their services from the new entrants.

4. SUBSTITUTES :

There are lots of substitutes which are available to choose with respect to the fast food industry some of them are :

Any Restaurants.

Mc donald’s

Barista

Café Coffee day

Chinese Restaurants

It is basically depends upon the customers what they want to have. Generally it is assumed that when people dine outside. They think of having Pizza at least 25% of time. Thus the more people will be attracted if receive particular company a good. Higher the quality of food, service higher will be the customers and higher will be product recall end sales.

ANSOFF’S MATRIX

Ansoff’s Matrix shows all the main strategies options available to the firm.

According to Ansoff, the best option for Pizza hut is to introduce new products in the existing market.

So the firm should follow the product development strategy. It leads to attract more customer as every one likes to have something new. This many also increase in its present product range, which in turn might require enter sine research and development.

So Pizza Hut can introduce a new product with different and some extra toppings in order to attract more and customers and to maintain their product range, also for the development of Pizza Hut.

So Pizza Hut should not follow the strategy of diversification, as it involves a large risk and it would be very difficult for them to find a different competiting product as that are un experienced and having limited skills.