4Ps-Place - Pizza Hut Marketing Strategic: Place PDF

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Pizza Hut Marketing Strategic: Place...

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Place Place strategy is an element in the marketing mix where it refers to how and where the customers can get the products. It is a fundamental role in the marketing mix as the process of product distribution is vital in the company marketing strategy to gain customers' purchase. Pizza Hut is an American restaurant chain and its headquarters is located in Plano, which is a city in The United States of Texas. In Malaysia, there are almost 400 outlets of Pizza Hut and their first outlet is located in Yong Chuan Plaza, Kuala Lumpur. Their head office is at Level 7, Tower 1, Vsquare @ PJ City Centre, Jalan Utara PJS 52 46200 Petaling Jaya Selangor MY, Jalan Utara, Petaling Jaya, Selangor. There are 3 main types of Pizza Hut Malaysia outlets, which are Pizza Hut Restaurant, Pizza Hut Delivery(PHD) and Pizza Hut Express(PHE). (Refers to Appendix A) These different types of Pizza Hut outlets are used to ensure that their different methods of distributing the products directly to customers can be more efficient and effective. For example, the working adults, students and people who lack time to dine in and cravings for pizzas can go to PHE to purchase the special menu designed while on the move which is "Grab and Go". (Pizza Hut Express, 2020) The customers can get their meals in just a couple of times as they can purchase from the fast service counter provided by the PHE. Other than typical "take away" and "dine-in" distribution methods, customers can also get their favorite by calling the Pizza Hut hotline 130088-2525 or place their orders on PHD Official Website and Pizza Hut mobile apps, the riders will deliver the pizza to their home within 30 minutes. Other than Pizza Hut Restaurant, PHD and PHE, Pizza Hut Malaysia has launched its first Digital Concept Stall in Sunway Pyramid. Customers will be provided a tablet pc to order or they can order by take-away-service-kiosk. The Digital Concept Store supports a systematic and advance ordering system for the customers to complete their transactions which is a new way of distribution strategy in this 21-century. (Refer to Appendix B) The catering industry is different from other industries, in the catering business, the choice of the right place is considering as the key success of the business. This is why most of the Pizza Hut Restaurant located in the business center, scenic spot, shopping complex, airport, city areas near with school and residence region. This is because these are places with high passenger flow and different groups of customers such as students, working adults, businessmen or women and tourists. According to Sunway Pyramid,

they suggest shoppers take public transport (LRT) to Sunway Pyramid to prevent traffic congestion. (Sunway Pyramid, 9 Nov 2019) The traffic notice shows that many Malaysian likes shopping especially during the weekend which can create a high volume of customers, and also shows public transport is available if we want to go to Pizza Hut Restaurant. Besides, the Pizza Hut Restaurant can also be fulfilled the demand of the family that wishes to dine in after they were tiring shopping as Pizza Hut provide a clean, comfortable and family-friendly place to enjoy their meals. This is the largest competitive advantage of Pizza Hut when compared to Domino's as they are more focused on the delivery pizza. Pizza Hut Malaysia was operated under QSR Brands (M) Holdings Sdn Bhd (QSR) which is the largest restaurant chain operator in Malaysia that operates over 1250 outlets of KFC and Pizza Hut per month. Besides, QSR also a franchisee of Pizza Hut Malaysia as Pizza Hut adopted franchising as the strategy to enter the international market. Franchising is a contractual relationship between a franchisor, an example like Yum! that operates the Pizza Hut brand worldwide and also a franchisee like QSR that allows the franchisee to conduct the same brand name and methods to distribute the products. (IFA, 2020) There are three types of franchises, which is Manufacturer-sponsored retailer, Manufacturer-sponsored wholesaler and Service-firmsponsored retailer. Pizza Hut Malaysia was drop under the third type which is Service-firmsponsored retail franchising. This type of franchising producing a system of service product and deliver the service conveniently to customers. (SATISH K, 2020) Pizza Hut uses franchising as a strategy to enter the Malaysian market because it is the best method to establish the operations without risk of the unfamiliar country operation. The marketing system and distribution channel used by Pizza Hut Malaysia is Contractual Vertical Marketing systems (Contractual VMS). Contractual VMS refers to the independent firms at different distribution channel levels as producers, wholesalers and retailers work together through the contractual agreements to improve their service effectiveness. To earn a profit, the other member of the channel has to cooperate with the producer and the most common form of Contractor VMS is franchising. (Refer to Appendix C) For example, Pizza Hut Malaysia's sauce which is Life sauce is supplied by Region Food Industry (RFI), which was acquired by KFC Holdings (Malaysia) in 1994 whereas KFC Malaysia and Pizza Hut Malaysia are together operating by QSR. (RFI, 2020) This shows that the supplier of the ingredient or

what we can call producer (RFI) and the retailers (Pizza Hut Malaysia) act as a unified system to further enhance a more productive distribution process. In order to support the core activities of the retail food industry in Malaysia like KFC and Pizza Hut, QSR not just only involved in sauce production, but involved also in poultry processing and ancillary business like baking. (QSR Brands Upstream Division, 2020)

Reference and citation Pizza Hut Express, 2020, Grab and Go, view on 31/3/2020,

Sunway Pyramid, 9 Nov 2019, Traffic Notice, view on 31/3/2020,

IFA,2020, WHAT IS A FRANCHISE?, view on 31/3/2020,

SATISH K, 2020, BASICS OF DISTRIBUTION MANAGEMENT: A LOGISTICS APPROACH, view on 31/3/2020, RFI, 2020, Region Food Industry, view on 31/3/2020, QSR Brands Upstream Division, 2020, QSR Brands Upstream Division, view on 31/3/2020,

Appendix A

Diagram 1: PHE

Diagram 2: PHD

Diagram 3: Pizza Hut Restaurant

Diagram 1: PHE, Diagram 2: PHD and Diagram 3: Pizza Hut Restaurant shows various types of Pizza Hut Malaysia outlets which mostly located in the business centre, scenic spot, shopping complex, airport, city areas near with school and residence region.

Appendix B

Diagram 4

Diagram 5

Diagram 4 and 5 shows systematic and advance ordering system which is tablet pc and takeaway-service-kiosk provided by the Digital Concept Store located in Sunway Pyramid which is a new way of distribution strategy in 21-century by Pizza Hut Malaysia. Reference: Says, 12 Oct 2017, Pizza Hut Launches The First Digital Concept Store Of Its Kind In Malaysia, view on 31/3/2020,

Appendix C

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l V M S Diagram 6

Diagram 6 shows types of Contractual VMS and types of Franchising. Pizza Hut Malaysia is a Service-firm-sponsored retail franchise under Contractual VMS....