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Pizza Hut Report...

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Letter of Transmittal

September 26, 2020 Mehnaaz Samantha Kamal School of Business & Economics North South University

Subject: Submission of the Customer Driven Marketing Strategy report.

Dear, Ma’am We feel immensely honored to present this report, which has been created according to your instructions. This report was a challenging and learning experience in terms of gaining new insights and researching. It truly made us better at time management and also on how to gather the right information. We feel confident now when discussing Market Segmentation, STP analysis, Product Market Expansion Grid, and the rest of the parts in the report. This report has increased our theoretical knowledge, and the experience will surely make us with the utmost flexibility in the future.

Thus, we genuinely feel that we have tried our level best with regards to your desired requirements. Despite the limitations we felt as freshmen, we nevertheless still gave our utmost in fulfilling this report. If there is any need for rectification, we would surely like to oblige. Yours sincerely,

Istiaq Ahmed

Ashik Uz Zaman Habiba Taslim Mim Hadiya Alam Meghla

ID: 2012552630 ID: 2013841630

ID: 2013841630

ID: 2012867630

Acknowledgement

We express our sincerest appreciation to those associated with this project and helped each other make it an advisable experience through this acknowledgment. In brief, this project also helped us to learn the fundamentals of “FRANCHISING OF PIZZA HUT”. I want to thank all my group members who shared their opinions and ideas on this project and their precious time to provide on this project. Finally, we would like to express our thanks and gratitude to our faculty Mehnaaz Samantha kamal (ma’am), who gave us this fantastic opportunity to learn about the franchisee of Pizza Hut and also helped us regarding the project report. We all group members, thanks to our group leader Istiaq Ahmed for his excellent response and contribution to making our project fruitful warmly.

Executive summary The qualities of entrepreneurship, growth, and leadership have characterized the pizza huts business for more than four decades of success. Pizza hut is one of the largest pizza restaurant companies globally; it has 12000 outlets around 90 countries. Most importantly, the legacy of pizza hut began in 1958. In Bangladesh, there are not many outlets for now. Approximately they provide eight dine-in restaurants, including six in Dhaka and also eight delivery locations. This report gives an overview of the pizza industry, including its competitors that are Dominos, Cheez. Away from each other, Pizza hut looks for more success in the future because of their excellent pizzas. Pizza Hut has a history of innovation and revolutionary firsts. Not only did Pizza Hut revolutionize the digital age by selling the first online order, but it also went above and beyond. The history of pizza hut follows the overview of how Pizza Hut started and where it stands now by how much the progression has been made. Some strategies of Pizza Hut are divided into many different parts and are useful for the running of the business. The employees and the management know what they have to accomplish through the targets set to them, and the strategies they have adopted help them know how they will achieve the objectives. Similarly, Pizza Hut has different targets set to them, and they have accepted different strategies to achieve the targets set successfully. Pizza hut the primary buyers are middle-class consumers like a couple, ages 19 to 35 who want to reasonable price with better pizza but do not want not to invest in lavishly. Pizza Hut to successfully achieve the targets needs to cooperate with the region and keep working in a friendly environment.

HISTORY OF PIZZA HUT About Pizza, some will describe Italy. That is wrong. What you know as pizza came into trend around Napoleon and the French revolution. Italians, known to be lovers of fine food and imported this great saucer to America. From here, it quickly recommended itself to mass production and re-export to the rest of the world. Bon appetite

Table of Contents 1.

Introduction

2.

STP analysis

3.

4.

5.

Marketing Mix strategies

Strategic Analysis

Conclusion

6.

References

7.

Appendices

Introduction

Pizza Hut was founded in June 1958 by two Wichita State University students, brothers Dan and Frank Carney, as a single location in Wichita, Kansas. Six months later, they opened a second outlet, and within a year, they had six Pizza Hut restaurants. The brothers began franchising in 1959. The iconic Pizza Hut building style was designed in 1963 by Chicago architect George Lindstrom and was implemented in 1969. PepsiCo acquired Pizza Hut in November 1977. 20 years later, Pizza Hut, alongside Taco Bell and Kentucky Fried Chicken) PepsiCo spun off on May 30, 1997, and all three restaurant chains became part of a new company named Tricon Global Restaurants, Inc. The company assumed the name of Yum! Brands on May 22, 2002.

Pizza has been leading brands in the food chain industry of Bangladesh. The Brand has set benchmarks over the years, giving the people a taste of premium delicacy in the most familyfriendly ambiance. Transcom Food, which is the subsidiary Transcom Group, operates Pizza hut Bangladesh. Pizza Hut BD started its journey in December 2003. In all these years, they have created over 15 outlets and plan to create more outlets and many smiles to their consumers.

STP Analysis In marketing, STP means segmentation, targeting, and position. It is a complete system that sums up and improves the cycle of market division. Major Segmentation Variables in The Company's Consumer Market

With more than 12,500 restaurants in 91 nations, the world's biggest pizza chain is the Pizza Hut. (Pizza Hut Slices Customer Base with segmentation.com, 2014). So, in order to reach customers, it needed to segment it is market. The market segmentation of pizza hut is given below with the variables of it.

Geographic : The geographic division of Pizza Hut is all over the world. Presently, Pizza Hut is serving more than 80 nations, including Pakistan, UK, the USA, Algeria, Bangladesh, India, China, Etc. However,

Pizza Hut in Bangladesh's geographic segmentation is in the developed cities. Gulshan Pizza Hut.

Dhanmondi Pizza Hut

Pizza Hut is available in Dhaka (Gulshan, Uttara, Dhanmondi, Etc.), Chattogram, and Sylhet. (Marketing Team Five.com, 2012).

Demographic : Pizza Hut's overall market portion is people of youthful age. However, they go wide in this thing. They fragment high wages and business class families that can burn through cash on the market's best pizzas. They target people from age 12-30 years. Pizza Hut's worldwide motto is portraying

its market division: " Now it is time to eat more. " In Bangladesh, pizza hut offers Halal food to all its customers as Bangladesh declares Islam as the state religion (MarketingTeam Five.com 2012).

Psychographic: Pizza Hut's psychographic division is additionally called a way of life division. Pizza Hut has partitioned the market into various gatherings dependent on social class, way of life, or character qualities. For example- Along with big family size special pizza, pizza hut is now offering mini pizzas for the students (Marketing Team Five.com 2012).

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Behavioral: Pizza Hut's psychographic division is additionally called a way of life division. Pizza Hut has partitioned the market into various gatherings dependent on social class, way of life, or character qualities. For example- Along with big family size special pizza, pizza hut is now offering mini pizzas for the students (Marketing Team Five.com 2012). Targeting Strategy and Target Market of The Company The world's famous Pizza Hut uses an undifferentiated targeting strategy to design the offerings and services as per the customers' choice. Pizza hut targets those people who want a comfortable, family-oriented atmosphere for dining in a pizza. Their secondary target market additionally wishes the delivery service of pizza. Dual financial gain families turned to the convenience of home food delivery with larger frequency due to preparation when a day's work wasn't forever appealing. The line to the aware health shopper broadened what was deemed as acceptable.

Target Couples Family Broad:25-44 ABC housewives (See in appendix A) Target Marketing • Pizza Hut targets the family who has meals outside once a week. • They likewise target adolescents of school • Pizza Hut provides home delivery services to customers who want to have food with their dear ones. • Spending habits of first-year school students additionally indicates a high proportion of money being spent on non-essential things. Likewise, Pizza Hut focuses on the age X, which is more dynamic in spending through cash on insignificant things like eating. Pizza Hut is also providing items for vegans. The organization is offering meat-free pizzas with a serving of mixed greens and pasta so that customers who would prefer not to eat meat could appreciate the quality and best food of Pizza Hut. (Marketing Team Five.com 2012) Value Proposition Strategy Pizza Hut's value proposition talks regarding its international heritage, it is pizza experience, and elite norms of value and taste alongside its atmosphere. It has been created is a value proposition strategy in many ways (Defining value proposition.com). Pizza Hut's Value Proposition Strategy Is Given Below : • Reputation And Brand: Pizza Hut is one of the well-known and most famous pizza brands globally, with fame for providing top-quality products and services to customers dating back to its institution within the late 1950s.

• Quality And Reliability: Pizza Hut is known for providing high-quality pizzas, pasta dishes, and side dishes and developing unique and innovative offerings and region-specific pizza toppings, ensuring that it can serve the tastes of a large, international customer base. • Affordability: Pizza Hut offers its product to customers at reasonable costs, guaranteeing that its product are offered to customers across a broad range of demographics across world. • Convenience And Accessibility: Pizza Hut wants to serve it is customers quickly and with efficiency. It also provides home delivery and online ordering services to the customers to make sure that its services are accessible to customers at any time. • Sales And Marketing Reach: pizza Hut operates an intensive network of restaurants, comprising over 18,000 individual shops across quite a hundred countries and territories within the Americas, Asia Pacific, Europe, the center East, and Africa ( Company Pizza Hut | Cleverism.com 1958) In this case ,the customers are looking not for the best estimating however for the straight forwardness and speed of conveyance experience and these entrepreneurs have seen how to improve the estimation of their support of the customers.(Defining value proposition.com).

Affordability

Products Product Attributes In product attributes, pizza hut's core identity is the excellent quality of food, good customer service, and sufficient dining experience. They make sure that their customers are happy with them. Apart from pizzas, they do serve other beverages to meet customer satisfaction. Branding Again if we talk about branding, they have their logo and colors to represent them as an international chain. (design hill, 2020) Social media is a huge impact now, so they promote their place through that platform too. Apart from that, they put the pictures of their interiors, photos of pizzas on banners. Pizza Hut is a global Brand that traces millions of people in over 100 countries, yet they offer the customers their experiences.

Packaging If we talk about the packaging of pizza hut, they mainly focus on how much the food will be warm inside that card board and how long it can hold. They also focus on their logo on top of their box. They put their websites and customer service numbers on their delivery boxes, too, to make their customers work easy. Pizza Hut has introduced a limited-time test of a plant-based pizza topping served in a round pizza box. (packaging strategies , 2020)

Product Support Services Pizza hut cares about their customers because they matter the most. Their opinions matter the most. Pizza hut always surveys its food through customers. To make the customer's task convenient, pizza hut helpline is always there. Whenever they get a call from customer they always answer in a very convenient way and customer friendly (msrblog ,2020). The Customer Service Representative is responsible for processing and handling customer menu orders and concerns via the phone.

Pricing Strategy The pricing strategy of pizza hut is mainly focused on the customer base. Their marketing objective is to satisfy their customers through products. Pizza hut has its chain think global act local. Pizza hut cares about the taste of people from everywhere their branch is located. Pizza hut uses a market skimming strategy more like a reasonable range price but provides time to keep their customers attracted. Most importantly, their offers are convenient to keep their customers attracted to them. Pizza Hut uses the zone pricing to make the pizza affordable to the target customers

. Place As from the secondary research, it has been found that Pizza hut has outlets in Dhaka, Chattogram, and Sylhet. There are many branches in Dhaka, such as Banani, Bashundhara (Jamuna Future Park), Dhanmondi, Uttara, Etc. So, the people of this area can directly buy from the pizza hut. Alternatively, sometimes they order pizza through other sources such as Food Panda, Uber Drive, Pathao, Etc., and many more. However, most of the time, consumers directly buy the product from the manufacturer because, as we know, Pizza Hut sells fast food, which is one of the "Convenience Product." Convenience products are sold frequently. Most of the time, consumers buy it directly without a third party's help. Nevertheless, in this current pandemic situation, consumers are buying the pizza with another party's help. Manufacturer � Agent � consumer

Promotion Pizza hut has promoted for it is target customers. The method Pizza Hut is following to do it is promotions are given below: • Pizza Hut gives "Wow everyday value," where customers will find pizzas at an attractive price, starting from BDT 199 for personal pizza while the medium-sized pizza will be available at BDT 399. • Pizza sales increases during festive seasons as they target their promotional strategy in festive seasons like Eid and puja. • They have another offer of "Do not Cook on Sunday." They give the "Buy One Get One Free" offer that day. They also give free delivery on that day. By this, they get the attention of the customer. • They provide substantial value to occasional lay like New year, as it is prevalent mostly in Bangladesh's diverse people. It is said that customers are the most valuable promoting hand for a company. Sometimes, a company's fate depends on its customers. Pizza Hut BD is dedicated to serving its customers, and thus, they have been promoted by the customers. The customers bring more people there. So, the consumer promotional strategy followed is like this by Pizza Hut BD. • They use advertisement strategy following Television, billboards, newspaper, and magazine. Over and above, Pizza Hut BD advertises to social media such as FACEBOOK, INSTAGRAM, TWITTER, Etc. Pizza Hut sends its pizza price and offers through mail to their visited customers to promote and attract them to come again. • Last but not least, they have "Family Friday" where they sell pizza at the best price. On this day, they also give an offer of having unlimited pizza at BDT 249.

By following these steps, Pizza Hut is promoting its products and increasing its product sells.

Strategic Analysis As we all know, inside Bangladesh, Pizza Hut is one of the most premium brands in the food chain market in terms of hygiene and quality meals. Also, Bangladesh, having the largest branch in Asia, speaks volumes about the demand pizza hut has. (The Daily Star, 2020) To keep this stature of standard, meticulous marketing, and strategic analysis have always been done been consistent.

Major Competitors Pizza hut, since its rise, has always had a substantial market value along with a wide range of devoted customers. Because of its multiple categories at various meals, there is a meal for every generic people. Over the years, Pizza hut has always had many obstacles and competitors, but they have kept staying in the market astoundingly. Companies like Cheez, which is incorporated by Madchef, Domino’s Pizza, Pizza Inn, are the Pizza’s Hut core rivals in terms of Pizza’s Hut core meal (Pizzas). However, if we consider overall fast-food, then KFC, BFC, Madchef, Takeout, Chillox, and Herfy come into the mind because these are the absolute top food chains that people in general pick. Even after facing so much heat in the market, Pizza Hut always became a standout performer in their field. In recent years, after its renovation in the Dhanmondi branch, Pizza hut, which made it the largest Pizza Hut branch in Asia, has drawn quite the people’s attention as it has a sophisticated and retro aesthetic for people from all taste. (The New Nation, 2020) This suave transition on their Dhanmondi branch, which arguably is the main branch of Pizza, has made them more of a fan favorite. Pizza Hut has created such an upscale standard that its competitors have to compete to stay in range.

SWOT Analysis Being the world's largest pizza chain, Pizza hut has created benchmarks in the fast-food market throughout all these years. It has been done by keeping proper human resources, quality assurance, and of course, a foresighted marketing strategy. Here, Pizza Hut's essential abilities, advantages, and liabilities through SWOT Analysis would like to be established. Strengths The most fundamental feature of Pizza hut is its wide range of meals at a range that is affordable by the full genre of people. Pizza has created such an ambiance that every time a potential loyal consumer enters there, he sees cannot but feel its sophisticated aura. Bangladesh, as it is known for restaurants, often sells adulterated meals, thus in case people have this thought over Pizza Hut, they now often randomly request their consumers to look at how hygienic and tidy their personnel and the kitchens. People have always had a sophisticated sense of thought over Pizza Hut, and they have not been disappointed in its expectations. They often provide convenient offers at a discount rate or provide buy 1 get 1 offer on specific days so that people can enjoy their excellent fine dine experience. Pizza hut has also created a flexible image in terms of ordering meals online. In general, whenever they are ordered meals online or through their customer service, their employee-force always seems to deliver Hot and in time Weaknesses Often, people in Bangladesh believed that the Pizza hut in here is not the original pizza hut. This rumor leads to bad PR, and the ordinary folks had a wrong opinion about it. This information is entirely a libel, Pizza hut, in fact, is 100% original, and Transcom foods operates Pizza Hut Bangladesh. (The DailyStar,2020) While Pizzas have been a fine delicacy for people, it has been a keen source of obesity. Even though obesity is not entirely relevant to the brand, it is a global issue, and often brands can be negatively promoted. A new research from Imperial College London and WHO has stated that Bangladesh is on the verge of facing a dual burden: obesity and malnutrition. (Bdnews24.com,2020) Dhaka as it is one of the most densely populated cities i...