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SWOT Of Pizza Hut Marketing Essay

2905 words (12 pages) Essay in Marketing

5/12/16 Marketing Reference this

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You are newly appointed as a marketing manager of a pizza hut restaurant. You are required by the management director to identify the following to improve its market share. You are required to use the company and the product of your choice this assignment.

conduct a SWOT analysis on Pizza Hut Restaurant at your place to identify the company and market share status

what are the macro-environmental factor would impact on the operation of the pizza hut restaurant in Malaysia

1.0 Introduction

The fathers of pizza hut are brothers Dan and Frank Carney. They start this business in their hometown. Wichita, Kansas. They rent a small building at 503 south Bluff in downtown Wichita and buy a secondary pizza equipment to make pizza. Now let’s talk about SWOT.SWOT define as STRENGHTS, WEAKNESSES, OPPORTUNITIES, and THREATS. If they want to start a business they have to do research and understand the SWOT for their company. Because every company have their advantages and disadvantages. So that they can solve the problem based on the situation. Let’s talk about pizza hut that near my place. I live in pasir puteh. The nearest pizza hut restaurant is locate at gunung rapat. Last year pizza hut had set up a restaurant at gunung rapat with KFC(Kentucky Fried Chicken).They are the bigger and largest restaurant in Ipoh. So the consumer no need go to far from their area to take their meal. It bring a lot of convenience to consumer. Although pizza hut provide delivery service but need to extra charge. If is a long term consumer it will be the big amount in few month later. Let’s talk about the pizza hut restaurant that is near my area. This new pizza hut restaurant is new to us.so that we could not get information through internet

Answer:

2.0 SWOT of Pizza Hut

After Few day research and observation. Let’s talk about their strength .pizza hut own a strong strength because pizza hut have built a very big and strong dynasty. Pizza hut had start their business in long time ago.it already brings into the history. Majority of the consumer know pizza hut. Because pizza hut is very popular and famous even a 3 year old buy also know pizza hut. This can know that pizza hut had built their emperior. Majority of consumer will take a burger meal in McDonald, if they want to eat fried chicken they will go to KFC. If they want to eat pizza hut they will choose to take their meal at pizza hut. They will not choose papa john or domino because they are still new for Malaysia. They are still new for our area. Because pizza hut give confidence to the consumer. The management department are making improve based on their food, price, and services. Pizza hut also have the among of customers because some customer are long term customer .Although pizza market is very large but they are still a lot of customer a loyal to pizza hut because their price are far. Pizza hut also have a good reputation among customer. This is the reason that they can survive until this day. A business not only need to have good service, far prices and good quality of food, it also need to have a good reputation so that consumer will come back again.

Next, let’s talk about their weaknesses. KFC have a lot of strength but their weakness also not less. The serious weakness of pizza hut is the consumer are very confuses about pizza hut is a fast food restaurant, western restaurant, or a Japanese restaurant. Because fast food defines as prepare quickly and easily that are sold by restaurant. You can finish you meal in short time. Everyone knows pizza hut are selling pizza even a kid also know this fact but in the true story pizza hut are not only selling pizza. They also sell tempura this is a Japanese food, they going to come out a thai tuna roll this is a food from Thailand. They also selling steak or lamb chop that are from western country and lastly the new menu are appear rice, and this rice are not made with cheese it made assam. As a consumer they are really confuse to know that this is a remix restaurant or western restaurant or pizza restaurant. Because they keep come some product that is not related to pizza. I can sure in few year time it will come out burger.it will be a very scary phenomena because how could a restaurant that are name pizza hut but can come out the product that are not related to pizza hut. Pizza hut are afraid of their market sharewill decrease so that they keep come out some product that are no related to pizza. Every restaurant have their specific food. Pizza hut are good in pizza, they can’t good in fried chicken or burger. pizza hut R&D department have to think and do research for pizza only. If they do research to fried chicken or burger. I think majority of the consumer need pizza hut change their company to remix restaurant. Second weaknesses of this restaurant are their delivery service. We know to be punctual since standard one but pizza hut delivery service are not punctual at all. Because of this situation it will bring down the image and less people will choose pizza hut. The consumer will prefer call domino pizza. Because if they are late for the delivery their company will give some free coupon to you. Pizza hut should think back and correct their mistake so that their market share won’t decrease.

Third.Opportunities. They has lot opportunities. Pizza hut are mostly supply or sell their product to teenager or young boy. Because most of the young man and ladies like fast food the most.so pizza hut can give some reward or bonus to them long term support consumer.so that they will come back again. Pizza hut also can target to old man. Because most of them will bring their grandchildren to pizza hut. Most of the kid will call their grandparent to bring them to fast food restaurant.

Consumer need are can’t fulfil, so pizza hut management should come out more product to attract consumer.so that they can fulfil customer demand. Because of good reputation pizza hut already have around 34,000 branch of restaurant. This result is from reputation. Pizza hut also have to buy or get new technology so that they can use this technology to made and produce more pizza to supply to the consumer it can fulfil their demand and needs.in 2000 century technology bring a lot of convenience to human. Pizza hut should use this technology to make nice pizza to consumer. Although now pizza huts is the 1st place in market share but other pizza company also improving. Pizza hut should improve more if not they will be forfeit by the market.

Forth, threat. In Ipoh have a lot of fast food restaurant. That not only has pizza hut .that also have McDonald, KFC, Domino pizza, papa john, Kenny Roggers and etc. Although the market is very large but the economy is very low so that so everyone can afford to get a meal from fast food restaurant.one set of pizza hut meal cost RM 10++ for a person. Majority of them choose to cook at home because the cost is very low. Second threat to pizza hut is set up a new regulation. If the pizza hut management set up a policy that set up a new price, decrease the size of the food.it also will affect pizza hut. Third threat of pizza hut is shifts in consumer taste away from the firm’s product. A long term consumer will shift their taste if a new pizza company had set up. Because will may be bored pizza hut they will try to eat other company pizza hut.

Conclusion of the question:

Lastly, although pizza hut have a lot competitor but they still can be the leader of pizza. Because pizza huts have a lot of advantages. Pizza hut always provide service that other pizza company that can do it. pizza hut should correct their weakness and keep improve their strength so that they can always be the leader of the pizza and get 1st in market share This is the reason why pizza hut are the 1st place among other pizza company. Because they have a good reputation, long history for their background and good brand name.it will bring a lot of profit to pizza hut because this company had given a lot good work.

Market share

In my area market share of this pizza hut restaurant is occupied 30% between Domino pizza, McDonald, KFC, and Burger King. Because most of the consumer like to eat pizza hut. Everyday pizza hut also have among of customer. They have really big market share in my area. Because they always produce a lot of new product to fulfil different consumer demand. If the market share increase so that they can earn more and can open my restaurant all around the world. Pizza hut restaurant are the top brand fast food restaurant among all that other pizza hut company.

1.0 INTRODUCTION:

Marco environmental factor are PESTLE. Every company are effect by this factor. Let’s talk about PESTLE.PESTLE defines as a method for reviewing the macro environment. PESTLE stand for Political, Economic, Sociological, Technological, Legal, and Environmental. A company business may be effect by this factor. Factor of PESTLE can affect pizza hut business so their management should correct their mistake.

ANSWER:

2.0 MACRO-ENVIRONMENT

Now let’s talk about first macro environmental factor that are Political factor.it will affect the operation of pizza hut restaurant in Malaysia. When the election around the corner, everything in the market will increase their price.so that not everyone will come out to take their dinner. They will choose to cook at home. Because of this election the tax will increase. This environment is composed of laws, government agencies, and pressure group that influence and limit various organizations and individuals. Sometimes this happen also will be create a new business. Because sometime politicians will low down the price of the shop so that they can get more supporters to win the election and win their heart. Because there have a lot of negative issue on the government nowadays. Our country does not have a good relationship between other country it will effect tourism in Malaysia.it will decrease our country economy and also pull down businesses all around Malaysia. Politicians also will keep control number of restaurant.so that pizza hut have to force to set up new restaurant in other country. Although the demand is very high but pizza hut cannot cater the demand.it will bring down the economy because of the decision of made by politicians.

Second macro environmental factor are economical factor.it will affect a lot and will decrease pizza hut business because of inflation rate. If it really does not only food will increase their prices, Commodity also will increase a lot.it will affect the business of pizza hut.it also have advantages of macro environmental factor that is Growth in spending power. If the economy of the country is good, then growth in spending power will increase faster. Because consumer can spend their money with no stress. Economy will affect a lot to the consumer. If the market is good then their business with increase if there had decrease it means Malaysia economy is not good. Moreover, Recession or Boom is a main effect to the pizza hut because business can affect by one change. If our country economy drops other country will buy our currency so that they can earn money from that. If the economy drops less people will buy pizza hut share. If the economy drop the headquarter will not choose to set up new restaurant in Malaysia.so if Malaysia economy is good then everything will be better .economy can make a lot of changes to determine pizza hut business increase or decrease.

Third factor of macro environmental is Socio-culture. This factor also is a very important because it also will influence pizza hut restaurant. Let’s talk about some example of socio culture. Now let’s tell about this case. Nowadays families eat out more often because they are less house wife, all mother of the families have to go out to work to earn money. Some mother don’t know how to cook or to prepare a dinner in the house so that they rather choose to eat at outside. Pizza hut should come out some plan to the families that take dinner at their restaurant so that they will come back again. Some mother is very lazy to cook at home because after cooking they have to wash the plate. Another reason that they don’t like to cook because after working they will feel tired they are lazy to cook so that choose pizza hut or other fast food restaurant. Nowadays kid like to eat fast food a lot.one of them are pizza hut.in 2000 century parent start to love their son more, provide a good environment to them. Parent will follow their children decision. If their children like to eat pizza their parent will bring them to pizza hut.it will increase the pizza hut business.

Forth factor of macro environmental is Technological factors. Pizza hut are the top brand between other pizza company, example domino pizza, papa john, and other pizza company.so their website are design in nice to read and good design. Pizza hut have their own homepage. The consumer can make order through the website it will be very save time and it will get less accident to happen.it also provide a menu to let consumer to read through. Consumer finish read through the online menu then they can straight away to make their order.it really bring convenience to the consumer. Pizza hut always update their latest product into their website so that consumer can get the information from their website it really save time, save money and save petrol. Because consumer no need to go to their restaurant to get this latest information. Although pizza huts always send flier to every house but is faster to get latest information from their website. If the consumer order by using internet it is easy to organize.it can ensure low chances of making mistake take order from phone or texts. When we use phone to make order it may be mistake because sometimes the worker can’t heard properly but if consumer made order by using the internet I will be less accident. Example their delivery won’t send to other area. Consumer also can customize their pizza. Consumer would like to make a lot of change to pizza because they want to try few flavours so pizza hut allow consumer to choose 2 flavours in one pizza. This plan can let their consumer to save money to try more flavour of pizza.

Fifth factor of macro environmental is Environmental factors, every company have their competitive advantages. Pizza hut have their own competitive advantages .Example, they have a strong brand, and give consumer confidence and pizza hut have a lot of franchise. They have around 20000restaurant are set up in all around the world. Pizza hut also consider a very cheap restaurant. Every family can afford to take their meal at pizza hut. Pizza hut is a fast food restaurant they will make the food as fast as possible so that their consumer won’t be wait too long, so customer are very inpatient if their speed are really fast then they can get good comment by the consumer.so that their consumer will come back again. Pizza hut also put very high exaptation to their food. They will give the best prepared food to their consumer. Pizza hut is a very strict restaurant so that in this few year newspapers didn’t come out some negative comment on pizza hut. Pizza hut also did well in waste disposal. They will clear their restaurant as clean as they can so that It can provide a good area to consumer and they can enjoy the food and the environment. Nowadays all around the world are discuss about recycle .Pizza hut is a popular restaurant because they have provide a lot of product to fulfil the demand. Most of the consumer choose pizza hut because pizza hut give a lot of choices to the consumer. Pizza hit no only produce pizza it also produce other product so that It can supply to other customer.

3.0 Conclusion:

All the factor of macro environmental such as Political, Economic, Sociological, Technological, Legal, and Environmental will influence pizza hut business so pizza hut should do more update and they have to always discuss and produce the latest product to supply to their consumer

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