Download - Pizza Hut Working With Pg Final
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Title of the term paper
Developing a marketing plan on Pizza Hut.
Company
Pizza Hut-Bangladesh
Group Name: CREATIVE
“We like to satisfy but love to create first”
Group Members: I. D Numbers:
1. Azmir Hasnat……………………………………...….0720153
2. S. M. Riffat Wahid…………………………………….0610094
3. Badrul Hasan…………… ………………………..….. 0620224
4. Md. Shahadat Hossain Emon…………………..….....0720257
5. Mehedi Jannat……………….…….…………………..0720395
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Letter of Transmittal
19th April 2009
Noorjahan Parvaz
Department of Business Administration
Independent University, Bangladesh
Subject: Submission of Marketing Plan of Pizza Hut. Dear Madam,It is an honor and great pleasure for us to present our marketing plan report on Pizza Hut.
During threw process of constricting our assignment on Pizza Hut, we had the chance of
experiencing and rediscovering our potential. This marketing plan gave us an opportunity to
apply our theoretical expertise, sharpies our views ideas and communication skills and bride
them with the real world of practical experience, which will be good start for our future
professional career.
We hope you will find the term paper presented in an appropriate manner. We deeply appreciate
your cooperation.
Thanking you and looking forward to receive your cordial approval of your submission.
Sincerely
Members of group:
1. Azmir Hasnat ID# 07201532. S. M. Riffat Wahid ID# 06100943. Badrul Hasan ID# 06202244. Md. Shahadat Hossain Emon ID# 07202575. Mehedi Jannat ID# 0720395
School of business Independent University, Bangladesh
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Acknowledgment
The successfully accomplishment of this assignment is the outcome of contribution and
involvement of a number of people, specially those who took time share their thoughtful
guidance and suggestion to improve the assignment .At the beginning we would like to
pay our gratitude to the almighty for giving us ability to work hard under pressure.
We have deepest gratitude to our respected course instructor Noorjahan Parvez. We are
thankful to her for her continuous support and supervision, suggestion, providing us with
valuable information that was very much need for the completion of this marketing plan
for a new product. We also thankful to the several employees of Pizza Hut who gave us
sufficient information of the company when we demanded to them.
Finally, our sincere gratitude goes to our classmates who helped us whenever we needed.
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Executive summary:
Pizza Hut, a world famous franchise international fast food
chain has been in operation in Bangladesh for more than
one year. They have started their operation in Bangladesh at
the end of 2003. Since then, they have been able to attract a
wide range of customers especially from the elite society.
Some of their mouthwatering menus include the famous
‘Pan Pizza’- pizza made on a flat pan with delicious
toppings of mushrooms, capsicum, beef and bar-b-que chicken. Even though there were
several fast-food stores operating in Dhaka city, they in fact focused on a bit of every
item. Pizza Hut is the first of its kind to concentrate only on pizza. Introduction of
Pizza hut in Bangladesh has generated a fairly tough competition among the reputed and
existing fast-food stores in Dhaka city.
Our report focuses on the situation analysis of pizza Hut, international competitiveness
and a thorough analysis of the marketing strategy in terms of Mission, Marketing
Objectives, Financial Objectives, Target Market (s), Strategies, and Marketing Mix which
includes price, product, place and promotion. The report also focuses on customer
relationship management and offers recommendation to improve customer equity and
customer relation.
Finally an assessment on Pizza Hut’s SWOT analysis, five forces of industry
competitiveness are provided. In the course of this report, we have discovered that there
are more to learn in the real life business scenario and that it differs from the text book
information in several ways.
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Table of Contents
IndexContents Page #
01. Introduction---------------------------------------------------------------------------- 07
02.Company Background------------------------------------------------------------ 07
03.Pizza Hut in Bangladesh------------------------------------------------------- 08
04.Situation Analysis: The
Company----------------------------------------------------------------- 10
Existing products----------------------------------------------------------- 11
New products----------------------------------------------------------------- 11
Market Summary: The
market------------------------------------------------------------- 12
Market Demographics---------------------------------------------- 13
Geographic------------------------------------------
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----------- 13 Demographic----------------------------------------
---------- 13 Behavior
Factors--------------------------------------------- 13
Target Market and Segmentation------------------------------ 14
Market
analysis----------------------------------------------- 15
Market Needs---------------------------------------------------------- 16
Market Trends--------------------------------------------------------- 17
Market
forecast----------------------------------------------- 18
Market growth--------------------------------------------------------- 18
Target market growth
graph----------------------------- 19
SWOT analysis-------------------------------------------------------------- 19
Strengths----------------------------------------------------------------- 20
Weaknesses----------------------------------------------------------- 21
Opportunities---------------------------------------------
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----------- 22 Threats-----------------------------------------------------
-------------- 23
Competition-------------------------------------------------------------------- 23
Growth and share analysis--------------------------------------- 24
The five forces of industry competitiveness---------------- 24
Total revenue of global competitors--------------------------- 27
Product Offerings------------------------------------------------------------- 27
Key to success------------------------------------------------------------------ 29
Critical issues------------------------------------------------------------------- 29
05.Marketing Strategy: Mission----------------------------------------------------------
------------------ 30
Marketing objectives and goals------------------------------------- 30
Financial objectives-------------------------------------------------------- 31
Branding and Positioning---------------------------------------------- 31
Marketing Mix----------------------------------------------------------------
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33 Product----------------------------------------------------
---------------- 34 Price--------------------------------------------------------
---------------- 37 Place-------------------------------------------------------
----------------- 41 Promotion------------------------------------------------
--------------- 42
Customer Relationship Management (CRM)--------------- 44
Ethical and Social Responsibilities------------------------------ 47
Marketing Research------------------------------------------------------- 48
06.Financial Analysis: Break-Even
Analysis------------------------------------------------------50
Sales Forecast------------------------------------------------------------------ 79
Expense Forecast------------------------------------------------------------- 83
07.Conclusion-------------------------------------------------------------------------------- 84
08.References-------------------------------------------------------------------------------- 84
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PIZZA HUT-BANGLADESH 01. Introduction:
The urban community in Bangladesh has always longed for a reputed fast-food chain to
be in operation in this country, which add an extra
dimension to the city life and would also facilitate a
particular segment of the community to ‘hang out’ in
their free time. By opening a franchise store in Dhaka
city, Pizza Hut has fulfilled the long-term dream of the
city dwellers. They started their operation in Bangladesh
at the later part of 2003. In our report, we have talked
about the preliminary operation of Pizza Hut in Dhaka and how they have planned their
marketing.
02. Company Background:
Pizza Hut started its journey in a busy locality in Wichita, Kansas USA in the year 1958.
It was the idea of two college students and also brothers, Dan and Frank Carney who
started the business with a capital of $600 borrowed from their mother. 1959 Pizza Hut is
incorporated in Kansas and the first franchise unit opened in Topeka, Kansas. In 1971
Pizza Hut became the number one pizza restaurant chain in the world on both sales and
number of restaurants. Pizza Hut got their big break in 1977 when PepsiCo by 3000 U.S
units, bought them out. The Pizza hut management took a philanthropic effort when they
employed 10,000 disabled people in different positions in the organization under the ‘Job
Plus’ program. 1997 On October 6, 1997, Tricon Global Restaurants, Inc. was formed as
a result of a spin-off from PepsiCo Inc. of the three restaurant concepts - Pizza Hut, KFC,
and Taco Bell. Pizza Hut launched "Totally New Pizzas", a quality initiative putting
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sliced, fresh vegetables and meatier meat toppings on pizzas. Currently they have 12,500
restaurants across 91 countries. Today, they are the highest-flying brand of 'Yum!
Restaurants International’. The franchises of Pizza Hut are spread all around the world
covering major parts of the Northern hemisphere namely USA, Canada, Ireland, U.K and
other major European cities. Currently Pizza Hut is the recognized leader in the fast-food
business with a global asset of $25 billion. Every year, Pizza Hut uses more than 700
million pounds of flour, 525 million pounds of tomatoes and 700 million pounds of
pepperoni. If all those pepperoni slices were laid side by side, they would stretch around
the world twice and go to the moon!
Their introduction into the subcontinent started when they came to India in 1996. From
then onwards, they have been doing very productive business with excellent promotional
campaigns.
03. Pizza Hut in Bangladesh:
Pizza Hut moved into Bangladesh with the motto of ‘Think global and act local’ and
their observed marketing activities totally agree with this motto.
Pizza Hut started its operation in Bangladesh on the 6th of December 2003 under the
banner of Transcom Food and Beverages (LTD) a concern of Transcom group Ltd, with
the head operation of Bangladesh, Mr. Akku Chowdhury.
‘Pizza Hut’ always maintains good quality service. They know what the customer wants
and are also aware of the customers’ desired service. They are also aware of the
customer's desired service. That is why the management and the employees are always
trying to deliver the service that the customer desires from them. In this way, they believe
that they would be able to maintain the topmost position in Bangladesh and thus giving
them an upper hand over their competitors.
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The outlet, with a seating capacity of 220 persons, is located on South Avenue, Gulshan
1. Covering an area of 6000 sq ft, it is one of the largest Pizza hut in Indian subcontinent.
This is the first of a total of five outlets that they plan to open in the country over the next
three years. In all the outlets that they are planning to open, they are relentlessly trying to
promote the sense of ‘Family Pizza Place’ - a perfect outing place for any family.
The main mission of Pizza hut Bangladesh is to serve the best pizza to any pizza lovers
and also other customers. However, for the sake of proper commercialization, they have
focused mainly on the upper middle class and higher-class residents of the Dhaka city.
They have also targeted the foreigners residing in Bangladesh as their customers.
Starting with this mission, Pizza hut Bangladesh won the excellence award for the year
2004, being the best restaurant all over the subcontinent. The
award has been given to Mr. Akku Chowdhury and the whole
Pizza Hut team, Bangladesh.
The success of Pizza Hut relies heavily on delighting customers
by ensuring that all their needs and desires are met in every
way. Hence, they give strong importance to their marketing
efforts to ensure that Along with customer satisfaction, they make sure, that the business
makes money! Therefore, the first task is to understand their consumers from every
aspect.
In this regard, they have tried to gain a thorough understanding of their competitive
environment and continuously strive to develop unique business ideas to make their
business a success. Thus, Pizza hut has successfully attained a broad range of loyal
customers, to whom pizza has gained extreme popularity. In order to expand this range,
their marketing team is involved in developing new products and concepts, all the time.
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Above all, not only do they make GOOD FOOD,
they are also famous for providing great service and
dining experience, to give their valued customers
more reasons, to return.
04. Situation analysis:
The Company: A brief information about the company are given below:
Company Name: Pizza Hut-Bangladesh
Company Type: Franchise.
Ownership: Transcom Food and Beverages (LTD).
Parent brand: Yum! Brands.
Industry: Restaurants.
Type of Product: Pizza
Brand Icon:
Website: www.pizzahutbd.com
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Existing products:
Pizza Hut-Bangladesh is passionate about making and serving the best pizzas just like its
other global franchises. Over the year, Pizza Hut has delighted customers with a variety
of innovative pizzas. Pizza Hut sells pizzas in four different sizes: personal (an individual
serving), small, medium and large, though most stores have done away with the small
size. The menu of Pizza Hut in three branches in Bangladesh which are located at
Gulshan, Dhanmondi and Chittagong is same. Existing product of Pizza hut in three
branches are given below:
Pan Pizza.
Italian Pizza.
Thin ‘n’ Crispy.
Stuffed Crust.
The Big New Yorker.
The Sicilian Pizza.
The Hand Tossed Pizza.
New products:
Recent products of Pizza Hut of Bangladesh are given below:
Seafarer: Shrimps, tuna, tomato chunks and mozzarella cheese. A true seafood
lover's blend of tuna and shrimps sauteed with herbs and garlic covered with
tomatoes and cheese.
Seafood Symphony: Shrimps and red paprika with mozzarella cheese. Shrimps
sauteed with herbs and garlic topped with red paprika and mozzarella cheese.
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The Works: Beef pepparoni, chunks of beef, BBQ chicken and chicken topped
with onions, mushrooms, black olives, capsicum and mozzarella cheese.
Beef Supremo: Beef pepperoni topped with beef chunks oozing with mozzarella
cheese; a delight for beef lovers.
Market Summary:
The Market: The market of Pizza hut in Bangladesh is not very competitive in
Bangladesh. The only large one competitor is Domino’s which has several outlets
in Dhaka. Pizza hut has the large market share as well as the customer share in
Bangladesh. This company is not only a local company; it is very wide and big
enough to meet their customer needs. It has very few competitors in local market
but there are many competitors in global market. Pizza Hut of Bangladesh is
considering socially elite people as their target market. That’s why they establish
their two outlets in two aristocratic areas in Dhaka which are Dhanmondi and
Ghulshan.
Market Demographics: Market demographics generally consist of three
factors. They are listed below- arosacative
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Geographic: Considering geographic target area in Bangladesh,
Pizza Hut targeted Dhanmondi and Ghulshan in Dhaka as the people
of these areas are status sensitive. Pizza Hut also targeted Chittagong
as they have an outlet there.
Demographic: Pizza Hut of Bangladesh always focuses on
teenagers. They encourage teenagers by offering many discounts and
allowance. Pizza Hut also targeted high income and social class and
educated people as a demographic segment.
Behavior Factors: Bangladesh is full of occasions. Bangladeshi
people have PAHELA BOISHAK, Valentine’s Day, Birthday
parties, and many celebration parties. So, Pizza Hut of Bangladesh
can use of these opportunities. They can deliver quality pizzas to the
special occasion. Customers of Pizza Hut are willing to pay a
premium for higher quality, tastier Pizzas. There is a value attributed
to the more attractive presentation of a salad mix and many more.
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Target Market:
The target market strategy is undifferentiated. It means that they do not target any
specific type of customer. Pizza hut started its journey with the focus of serving families
mainly but they cater to people of all age group. Most of the male and female come in
groups of friends.
In fact the management claims that their target customers would be anybody who loves
pizzas. Since it is quite impossible to focus on the entire target group, they have limited
their attention to the foreigners living close to the diplomatic zone and the teenagers
who come from an elite society. However, for the sake of proper commercialization,
they have focused mainly on the upper middle class and higher-class residents of the
Dhaka city. All the customers are coming both individual and with family or group
and many pizzas are also taken out. They have also targeted the foreigners residing in
Bangladesh as their customers. Their main focus is on offering a food that is made by
fresh ingredient.
The market can be segmented into three target populations:
Individuals: people that dine in by themselves.
Families: a group of people, either friends or a group of nuclear relatives dining
together.
Take out: people that prefer to eat Pizza Hut’s food in their home or at a different
location than the actual restaurant.
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Market Analysis:
Years 2004 2005 2006 2007 2008
Potential Customers Growt
hCAGR
Individuals 8% 13000 14500 15000 16000 18000 8.4%
Families 9% 9500 10000 10500 12000 13500 9.0%
Take out 10% 25000 26500 28000 32000 36500 10.0%
Total 8.9% 48000 51000 53500 60000 67500 8.9%
CAGR of Individuals: {(18000÷13000) (1÷4) -1}*100=8.4%
CAGR of Families: {(13500÷9500) (1÷4) -1}*100=9.0%
CAGR of Take out: {(36500÷25000) (1÷4) -1}*100=10.0%
CAGR of Total: {(67500÷48000) (1÷4) -1}*100=8.9%
NOTE: CAGR=Compound Annual Growth Rate.
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Market Needs: Regionally ‘Pizza Hut of
Bangladesh’ is facing different market needs. As
Pizza Hut of Bangladesh is targeting social elite
people, they have to provide high quality as the
customers needs. On the other hand, Pizza hut also
targeted teenagers. The teenagers are always
looking for tasty, stylish and delicious product at a
minimum price. So, Pizza Hut have to be flexible in
quality and price and design of the product. Pizza
Hut satisfies socially elite people by delivering different kinds of products with
different designs or features with very high quality. But for the teenagers, pizza
hut arrange many discounts, allowance and many unique offers.
Pizza Hut provides high-quality pizza to their customers. They seek to fulfill the
following benefits that are important to their customers.
Selection: A wide choice of different Pizzas and other products with the
flexibility.
Accessibility: In Dhaka, there are two big outlets in getable places and
there is another huge outlet in Chittagong.
Customer service: Pizza Hut provides the customers high qualified
service. They always try to impress their customers with the level of
attention of needs.
Competitive pricing: All products are priced competitive to true
substitutes with many discount offers.
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Market Trends: The market trend for Pizza Hut is headed toward a more
sophisticated customer. The restaurant customers today relative to yesterday is
more sophisticated in a number of different ways.
Food quality: The preference for high-quality ingredients is increasing as
customers are learning to appreciate the qualitative differences.
Presentation/appearance: As presentation of an element of the cooking
experience becomes more pervasive, customers are learning to appreciate
this aspect of the industry.
Health consciousness: Bangladeshis are becoming more aware of their
health, evidenced by the increase in individuals exercising and health club
memberships, customers are requesting more healthy alternatives when
they eat out. They recognize that an entree can be quite tasty, and
reasonably good for you.
Selection: People are demanding a larger selection of foods, they are no
longer accepting a limited menu.
The reason for this trend is that within the last couple of years the restaurant offerings
have increased, providing customers with new choices. Pizza Hut customers no longer
need to accept a limited number of options. With more choices, customers have become
more sophisticated.
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Market Forecast:
Market Growth:
In 2002, the market of Pizza Hut reached at
$8 billion dollars. Pizza sales are estimated
to grow by at least 10% for the next few
years. This growth can be attributed to
several different factors. The first factor is an
appreciation for health conscious food.
While not all pizza is "good for you,"
particularly the cream based sauces, pizza
can be very tasty yet health conscious at the
same time. Pizza is seen as a healthy food because of its high percentage of carbohydrates
relative to fat.
Another variable that is contributing to market growth is an increase in the number of
hours their demographic is working. Over the last five years the number of hours spent at
work of their archetype customer has significantly increased. As the number of work
hours increases, there is a high correlation of people that eat out at restaurants. This is
intuitively explained by the fact that with a limited number of hours available each day,
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people have less time to prepare their meals and eating out is one way to maximize their
time.
Target Market Growth
SWOT Analysis:
SWOT stands for Strengths, weaknesses, opportunities, and threats. SWOT analysis
reveals the internal strengths and weaknesses and external potential opportunities and
threats of a firm. The SWOT analysis of Pizza Hut will give us the overall profit potential
of this firm. Our SWOT analysis has tried to focus on the controllable factors that Pizza
Hut has already taken into consideration.
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Strengths:
The brand image of Pizza Hut is presumed to be one of the greatest strength they
possess. The customers of Bangladesh are easily attracted by the brand image of
the Pizza Hut.
As a successful international food chain Pizza Hut knows how to blend with the
different cultures across the globe. This is the story behind the international
success of this company and considered one of the greatest strengths of Pizza Hut.
The strictness of the procedure to acquire and retain the franchising of Pizza
Hut is one of the strengths of the company. Through this the franchisees will be
able to maintain the quality of food and the quality of service thus the customers
will get the maximum satisfaction with the touch of international hospitality.
In Bangladesh, the location of Pizza Hut can also be regarded as one of its prime
strengths. Elite members of the society, one of their target audiences, frequently
visit Gulshan Avenue and the eye-catching exterior decoration of the franchise
makes people to stop for a while and take a look inside. As they move inside, they
do not usually leave without having a bite. Also the floor space is another
encouraging aspect of it.
An educated and smart group of young energetic employees has added to the many
plus points of Pizza Hut. Their sober behavior and efficient way of handling
customers has certainly added value to the franchise.
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Pizza Hut has been to be a division of PepsiCo since 1977 and now an integral part
of Tricon. It is the world's largest pizza restaurant as outlined above. It has a good
reputation and a good branding. It can raise the profile of the company to gain the
ability to sell at higher price, to recognize its products through the corporate image
and to launch new products more easily.
Pizza Hut also 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.
Weaknesses:
Globally, Pizza Hut faces one major problem and that is the internal conflict
between the franchisees. Such problems are widespread when there is more than
one franchise of the same company in the same country.
The franchising fee of Pizza Hut is very high as the money has to come from
franchisee’s own pocket. This has an adverse effect on the pricing of its products
in Bangladesh which is a quite high comparatively. This high price acts as a
barrier of tapping into the full market potential of Bangladeshi consumers.
Due to heavy traffic congestion in Dhaka city and there is only two outlet of Pizza
Hut, it is not possible to deliver hot pizza in 30 minutes. As a result, there is no
home delivery service like the other fast food shops for examples – Domino’s
Pizza, Subcity.
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Unavailability of quality raw materials in Bangladesh is a big weakness to be
considered which affects the price and quality of the product.
The initial set up cost is too high to invest for an investor in this country which
increases the risk of the project.
They are yet to develop any specific meals for the children like the other fast-food
chains in Dhaka.
Very weak promotional campaign can also be regarded as one of their major
weaknesses. People expect that such a large multinational franchise would be
creative in their promotional approaches. But when their advertisements are very
rarely seen in the newspaper and are not aired on the T.V where their main
competitor “Domino’s” telecasting ads very frequently.
Opportunities:
The demand for Pizza Hut is here in Bangladesh among the young generation
and this is the best opportunity for Pizza Hut to increase their profitability here and
capture a very big market share.
Another opportunity that Pizza Hut can have is introducing a new ordering
online system. Anyone with Internet access can order whatever they wish and get
it delivered to their house without even speaking to someone.
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The cheap labor cost in Bangladesh acts as a very good opportunity for Pizza
Hut as they can run the business relatively at a lower cost in spite of the huge
initial set up cost with high franchising fee.
Threats:
Pizza Hut's number one threats are from their competitors. Currently, their closest
competitor is Domino's Pizza. Domino's main competitive advantage over Pizza
Hut is their price. It is generally lower than Pizza Hut. Also, Domino's was very
profitable when they ran the promotional deal of delivering a pizza at home.
Recently created ‘Jamuna Future Park’ there will be the first outlet of
MacDonald in Bangladesh which is a global competitor of Pizza Hut. So, this
can be a big threat for Pizza Hut of Bangladesh.
The other competitors who are considered as threats for Pizza Hut for delivering
quality of food and service and also with the experience of international market
includes, KFC, Nandos etc.
Competition
Competition of Pizza Hut is competitive even though they are operating their operation as
a market leader of the Pizza market. Their main and direct competitor in Bangladesh is
Dominos. Dominos has several outlets throughout the Dhaka. They also provide quality
Pizzas at a competitive price. But they have less option regarding the menu comparing
with Pizza Hut. Another competitor is pizza corner. It has one outlet in Dhaka. It has low
option in terms of menu and low quality comparing with Pizza Hut. Other indirect
competitors are Nandos, KFC, BFC, Helvetia, and so on.
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Growth and Share Analysis: Growth and Share
Competitors Price Growth Rate Market Share
Dominos (Pizza) BDT 165(Min.) 8% 20%
Pizza Corner (Pizza) BDT 120(Min.) 7% 15%
Other BDT 50(Min.) 7% 30%
Average BDT 111.67 7.33% 21.670%
Total BDT 335.00 22.00% BDT 65.00%
THE FIVE FORCES OF INDUSTRY COMPETITIVENESS
The five forces that determine industry competitiveness are:
BARGAINING POWER OF BUYERS
BARGAINING POWER OF SUPPLIERS
THE NEW ENTRANTS
THE THREAT OF SUBSTITUTES
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RIVALRY
BARGAINING POWER OF BUYERS:
All companies when entering into a foreign market predicts the likelihood of maintaining
their customers. In the market of Bangladesh, Pizza Hut has a number of competitors,
such as Domino’s Pizza, Pizza Corner, Wimpy, KFC, Helvetia, King’s Confectionary etc.
So to attain a large market share the company is trying to offer competitive prices and
carry out extensive promotions. Since Pizza Hut offers a wide variety of items it also
helps the shop to attract a larger number of customers, where they can get quality meals
for themselves.
BARGAINING POWER OF SUPPLIERS:
All companies when entering into a foreign market looks at the power of the industry’s
suppliers to see if it can gain a competitive advantage in the market. In this case, the
franchiser of Pizza Hut is trying to build up a supply chain that is necessary to maintain
production. But till to date the franchiser is fully responsible for supplying the materials
to Pizza Hut in Bangladesh.
THE NEW ENTRANTS:
Entry of Pizza Hut in the market of Bangladesh had opened up an opportunity for new
firms such as McDonalds, Barista café, House of Doughnuts, Dunkin Doughnuts entering
the industry. Pizza Hut will continuously try to determine the impact they might have on
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their company. So to deal with such new entrant’s pizza Hut will keep their prices
competitive and high customer loyalty by maintaining the quality of their products. On
the other hand having a strong brand image and product differentiation Pizza Hut will
also act as a threat to the new entrants in the market.
THE THREAT OF SUBSTITUTES:
Pizza Hut is always considering the availability of substitute goods, such as burgers,
shawrma, chicken fry etc offered by various international fast food chain, hotels, and
restaurant and anticipate the reactions of their customers. So to offset such competitive
forces they are trying to keep the prices competitive, which will help them to maintain the
existing customers. Their product differentiation is also helping them to avoid the threats
of these substitutes.
RIVALRY:
Pizza Hut to maintain competitiveness is examining the rivalries that currently exists
between themselves and the competitors and seek to anticipate future changes in this
arrangement. There are a number of rivals for Pizza Hut, such as Domino’s Pizza, Pizza
Corner, Wimpy, KFC, Helvetia, King’s Confectionary etc. Common strategies that Pizza
Hut must use to maintain and increase their market strength include:
Increasing productivity by training the workers. A trained workforce will mean
more efficiency, thus reducing overall costs.
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Differentiating current goods and services from those of the competition through
quality and competitive pricing.
Providing a spacious homely and calm atmosphere in their store so that customers
feel the urge to frequently visit the place.
Revenue of global competitors:
Product Offering:
Pizza Hut provides the perfect mix of great food, great service and great place at a great
value to their customers who are looking for a grand experience. They believe in positive
intension, and maintain a strong internal environment by developing their competitive
work force, which they trust. The latest technological tools along with the best support
systems from their franchiser YUM! International is used to ensure easy workflow and to
make their restaurants the favorite in the Country. Pizza Hut-Bangladesh is passionate
about making and serving the best pizzas just like its other global franchises. And that
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includes going to any length to make the customer’s experience with Pizza Hut an
enjoyable one. The signature pizza crusts at Pizza Hut are Pan Pizza, Italian Pizza, Thin
‘n’ Crispy, Stuffed Crust, the Big New Yorker, the Sicilian and the Hand Tossed Pizza.
Initially, two of these crusts are being served at the new outlet in Dhaka – Pan Pizza,
which is golden brown and crisp on the outside, and light and fluffy on the inside; the
Italian Pizza, made with a traditional Italian sauce, with a thin and crispy crust.
Other than pizzas, Pizza Hut also offers a range of Soups, refreshing Beverages, Pasta,
Shrimp cocktail, Chicken Calypso, Shrimp and Chicken Mushroom, fresh and crispy
fruits and vegetables (and dressings) at the Salad Bar, and delightful Desserts.
They produce the food on the basis of order. They try to deliver the production as quickly
as possible.
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Keys to success:
Some key points by which Pizza Hut –Bangladesh is taking the taste of success are
given below:
Cleanliness
Hospitality
Accuracy
Maintenance
Product
Speed
Critical issues:
Globally, Pizza Hut faces one major problem and that is the internal conflict between
the franchisees. Such problems are widespread when there is more than one franchise of
the same company in the same country. The franchising fee of Pizza Hut is very high as
the money has to come from franchisee’s own pocket. This has an adverse effect on the
pricing of its products in Bangladesh which is a quite high comparatively. Pizza Hut's
opportunities are almost endless. Unavailability of quality raw materials in
Bangladesh is a big weak spot to be considered which affects the price and quality of the
product. Their prime weak point is the lack of home delivery service like the other fast
food shops for examples – Domino’s Pizza. Very weak promotional campaign can also
be regarded as one of their major disadvantage. Currently, their closest competitor is
Domino's Pizza. In the Jamuna Future Park there is a possibility of opening Domino’s
Pizza and brand new outlet of MacDonald.
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05. Marketing Strategy:
Mission:
“Think Global, Act Local”- with this motto Pizza Hut, Bangladesh dedicated its
resources and offered excellent service in providing delicious pizzas and at the same time
achieving customer’s satisfaction. Their mission statement is given below:
‘Pizza Hut provides the perfect mix of great food, great service and great place at a
great value to our customers who are looking for a grand experience. We believe in
positive intension, and maintain a strong internal environment by developing our
competitive work force, which we trust. The latest technological tools along with the
best support systems from our franchiser YUM! International is used to ensure easy
workflow and to make our restaurants the favorite in the Country.
Marketing Objectives and Goals:
The marketing objectives of Pizza Hut of Bangladesh are given below:
To hold the number one marketing position in the fast-food industry in
Bangladesh.
Be recognized chiefly for providing quality products, excellent care and
satisfaction to the customer.
To increase the number of pizza sales by increasing the number of outlets in
Dhaka city as well in other profitable parts of Bangladesh.
Successfully open two more outlets in Dhaka city in areas like Uttara and
Dhanmondi in the next 2 years and also in Sylhet.
To open a kid’s zone and serve meals specially designed for kids.
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Financial objectives:
The financial objectives of Pizza Hut of Bangladesh are given below:
Increasing gross profit by at least 10% by every year.
Pizza Hut plans to roll out another 3 outlets in Bangladesh within next 3 years.
Accelerating the internal growth through the development of more innovative product.
Increasing growth rate at least 10%.
Keeping sufficient amount of money for advertisement in mass media.
To gain 70% of the market for pizza industry by 2010.
Maximizing long-term return to shareholders while being mindful of their
overall responsibities
To achieve a 25% return on capital employed by 2011.
Branding and positioning:
Pizza Hut has been very successful in positioning their brand name in the target
customer’s mind. The only things that Pizza Hut accomplishes while brand positioning is
that it has a superior product attribute. They can give a unique taste and experience when
one visits Pizza Hut. Pizza Hut positions themselves with strong benefit attribute by
giving excellent service within convenient time. The strongest attribute in brand
positioning - beliefs and values, does not have so much to do with Pizza Hut. All they can
do is make the consumers believe that they are given extra care and importance. Other
than that, eating pizza doesn’t actually make you feel more important or attractive.
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Pizza Hut was very careful when it selected its name. The name “Pizza Hut” was named
keeping in mind all the crucial aspects needed to name a company in order to be
recognized in consumer’s mind. An important part of branding is that the name itself
should by itself inform the consumer about what the company is all about. For this
instance anyone can identify that “Pizza Hut” has something got to do with pizzas.
“Pizza Hut” is easy to pronounce, recognize and remember. The brand name “Pizza
Hut” is distinct from most of its competitors (especially in Bangladesh). Another
important thing is that the name should be extendable – and “Pizza Hut” can be easily
extended to www.pizzahut.com. The name of a company should be easily translated
into foreign languages. In order to avoid any sort of dispute or dissatisfaction when the
name is translated giving any vague or indecent meaning is not probably possible with
Pizza Hut. Finally, “Pizza Hut” like it should be is registered and has legal protection. We
can say that “Pizza Hut” gave a lot of thoughts when selecting their name in order to have
a positive and long-lasting position in consumer’s mind.
Another important thing that should be noted is that Pizza Hut in its all outlets serves
only Pepsi Co beverages. This is another plus point why consumers are likely to
remember the brand name “Pizza Hut”, since Pepsi is a very well recognized brand by
itself and almost everybody knows about their product.
It is quite easy for Pizza Hut to introduce additional items to their product category under
the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
The vast majority of all new-product activity consists of line extension.
After having a positive brand positioning in consumer’s mind Pizza Hut has been quite
successful managing their brand. They offer the same quality and gives higher priority to
all consumers throughout the world. For all these reasons Pizza Hut has been able to
serve so many consumers for such a long time and hopes to do the same in the future.
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Marketing Mix
Pizza Hut marketing mix is comprised of the following approaches to product, pricing,
promotion, distributing. The marketing mix concept is regarded as a set of controllable
variables at the disposal of marketing management that can be used to influence
customers
Product: Price:
Variety List price
Quality Discounts
Design Allowances
Features Payment period
Brand name Credit terms
Packaging
Services
Target customers
Intended positioning
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Promotion: Place:
Advertising Channels
Personal selling Coverage
Sales promotion Assortments
Public relations Locations
Inventory
Transportation
Logistics
Pizza Hut has been able to attract a wide range of customers in Bangladesh especially
from the elite society. Pizza Hut is the first of its kind to concentrate only on pizza. Our
report focuses on the basic marketing research, international competitiveness and a
thorough analysis of the marketing strategy in terms of price, product, place and
promotion and suggests ways to improve the 4Ps. There objective is compete on quality
not compete on price. They have achieved this by a quality initiative putting sliced, fresh
37
vegetables and meatier meat toppings on pizzas. Pizza Hut moved into Bangladesh with
the motto of ‘Think global and act local’ and their observed marketing activities totally
agree with this motto. ‘Pizza Hut’ always maintains good quality service. They know
what the customer wants and are also aware of the customers’ desired service. That is
why the management and the employees are always trying to deliver the service that the
customer desires from them. In this way, they believe that they would be able to maintain
the topmost position in Bangladesh and thus giving them an upper hand over their
competitors. Pizza Hut-Bangladesh is passionate about making and serving the best
pizzas just like its other global franchises. They have focused mainly on the upper middle
class and higher-class residents of the Dhaka city.
Product:
The first and the only truly international chain restaurant in Bangladesh, Pizza Hut offers
the same great taste, wonderful dining experience and excellent service.
Since the majority of the population in Dhaka city is Muslim,
it is very important that Pizza Hut serves meals, which are to
be accepted by their respectful customers. The Pizza Hut team
needs to assure that the food served is HALAL since it really
does not matter in other countries whether the food is HALAL
or HARAM as long as the foods are hygienic.
Pizza Hut is offering different types of product. In planning its
marketing offering, the marketer needs to address five product levels. The product they
are offering must should have the core benefit, that the service or benefit the consumer is
really buying. Pizzas have the core benefit as because they are minimizing the hunger. At
the second level, the marketer has to turn the core benefit into a basic product. Pizza Hut
is offering pizzas that have vegetables and meatier meat toppings and so on. At the third
level, the pizza hut marketer is preparing an expected product (a set of attribution and
38
condition buyers normally expect when they purchase the product). Pizza Hut marketer is
offering fresh pizza which are made by fresh ingredients. At the forth level the marketer
prepares as augmented product that exceeds customer expectation. Anyone can easily
differentiate pizzas product from Dominos product. At the fifth level stands the potential
product, which encompasses all the possible augmentations and transformations the
product or offering might undergo in the future. Pizzas have this opportunity because any
time pizza marketers can add different features in the future.
The vast array of goods consumers can be classified on the basis of shopping habits. We
can distinguish among convenience, shopping, specialty and unsought goods. Shopping
goods are goods that the consumer in the process of selection and purchase,
characteristically compares on such bases as suitability, quality, price and style. In the
process of purchase of pizza consumers can easily compare the product with the
competitors based on quality. So pizzas are shopping goods. The product they are
offering is tangible.
Product attributes:
Developing a product or service involves defining the benefits that it will offer such as
product quality, product feature, product style and design.
Product quality: Ability of a Product to Perform Its
Functions; Includes Level & Consistency. Pizza Hut is
offering a certain level of quality all over the world and
any one is buying a pizza form Pizza Hut can expect a
certain level of consistency of the pizza.
39
Product Features: helps to differentiate the Product from Those of the Competition.
Anyone buying a pizza from Pizza Hut can easily differentiate the pizza from Dominos or
other competitors.
Product Style & Design: Process of
designing a product’s style & function. The
outlooks of pizzas are its design and if the
outlook has the benefit we call it design. The
outlook of Pizza Hut has some benefit as
though it can attract customers by its
delightedness.
Price:
40
Selecting the pricing objective:
Pizza Hut wants to maximize its market share by product quality leadership. The
company first decides where it wants to position its market offering. The clear a firm’s
objectives, the easier it is to set price. Pizza Hut wants to be the leader in the market of
the world. Survival was a short run objective for Pizza Hut; in the long run, Pizza Hut
learned how to add value or face extinction. Maximize current Profit is not the goal of
Pizza Hut in the short run. Some company wants to maximize their market share by
pricing low. They believe that low price will lead to higher sale and higher sales will lead
to lower unit cost and higher long run profit. But Pizza
Hut cannot offer lower price because they are offering
quality product. Companies unveiling a new
technology favor setting high prices to maximize
market skimming. Market skimming is where prices
start high and are slowly lowered over time. Pizza Hut
is using maximizing market skimming strategy. Pizza
Hut aim to be the product quality leader in the market.
They are offering high level of perceived quality and taste.
Determining Demand:
Each price will lead to a different level of demand and therefore have a different impact
on a company’s marketing objective. Price sensitivity reflects that in case of increasing
or decreasing price, what will be the response of the customers. Customers are very price
sensitive in case of specialty product, less price sensitive in case of convenience product.
Though pizzas are not specialty product nor convenience product, but shopping product,
the marketer has no chance of pricing high. They also can not charge low because they
are providing quality product. Most companies make some attempt to measure their
demand curves using several different methods. Companies use statistical analysis
41
method to measure their demand. Pizza Hut’s Pan Pizzas sales in 2010 will be 15000
unites, 2011 sales will be 17000 unites and 2012 sales will be around 19000 unites. Price
experiments can be conducted. Pizza Hut gives discount to see the responses of their
customers and found that sale increases in the discounted period. Another can be use that
is survey. Company can ask customers if the price will increase than what will the
customer do? Whether they will purchase the same quantity in case of price increase or
not? Marketers need to know how responsive, or elastic, demand would be to a change in
price. If demand hardly changes with a small change in price, we say the demand is
inelastic. If demand changes substantially with the change in price, than we say elastic
demand. Pizza Hut can change its price and then measure the elasticity. If demand is
inelastic, than they can increase the price of their product. Now we will consider the cost
of the company. Pizza Hut’s cost of the company can be divided into two parts, fixed
cost and variable cost. We measure detail those things in the financial part. Fixed cost
for 2010 will be 4700000 and variable cost will be 2000,000. Total quantity sale will be
70750. So their average cost will be 6700000/70750 = 94.70 per unit. Now we will
consider accumulated production for the Pizza Hut. Accumulated production is total
production. The decline in the average cost with accumulated production experience is
called the experience curve learning curve. After a long experience, which is gathered
from working a long time, they have now experience in making pizzas. They can produce
pizzas with lower cost than their competitors. So they can offer pizzas with lower cost
than their competitors. Activity based costing tries to identify the real costs associated
with serving the each customer. It allocates indirect cost like clerical costs, office
expenses, supplies, and so on, to the activities that use them, rather than in some
proportion to direct cost. Both variable and overhead costs are tagged back to each
customer. Pizza Hut should do their activity based costing correctly. Now we will
consider the markup pricing for Pizza Hut. Now we are considering mark up price for
Pan Pizza.
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We assume that the desired return on sales is 45%.
Variable cost per unit tk. 61.6
Fixed cost (30% of unite sale) tk. 396000
Expected unite sales 15000 unit
The unit cost
= variable cost per unit + fixed cost / unite sales = tk. 88
Markup price for Pan Pizza = Unit cost/ (1-desired return on sales) = 88 / (1-.45) = tk.160
Though Pizza Hut sale directly to its customer, they can sale the product at tk. 180.
By using the same technique we calculate the mark up price of Italian pizza is tk.
190, Thin ‘n’ Crispy is tk. 150, Stuffed Crust Pizza is tk. 160, The Big New York is
tk. 160, Soups is tk. 80, refreshing Beverages is tk. 50, scrumptious Pasta is tk. 130,
fresh and crispy fruits and vegetables at the Salad Bar is tk 70, delightful Desserts is
tk. 45.
Perceived value pricing is that the marketer must deliver the value promised by their
value proposition, and the customers perceive this value. Pizza Hut using the other
marketing-mix elements, such as advertising and sales force, to communicate and
enhance perceived value in buyers mind. Perceived value of Pizza Hut is made up of
several elements, such as buyer’s image of product performance, customer support, and
softer attributes such as the suppliers reputation, trustworthiness. There are three types of
buyers for Pizza Hut, Price buyers, value buyers and loyal buyers. Pizza Hut need
different strategies for different buyers. Such as for price buyer Pizza Hut offering
striped-down product and reduced services. For value buyers Pizza Hut is keeping
innovative new value and aggressively reaffirming their value. For loyal buyers, Pizza
Hut is investing in relationship building and customer intimacy. Value pricing is for
43
loyal customer company is charging low price for a high quality offering. Pizza Hut
cannot use everyday low pricing and high-low pricing. Because they do not has retailer.
They are selling their final product directly to their customer. But, they can keep lower
price because they are not bound for that to anybody. In going-rate pricing, the firm
bases its price largely on competitors’ prices. Pizza Hut is following going-rate pricing.
They are charging slightly high than their competitors because their image positioning is
high in minds of consumer. Auction type pricing is growing more popular, especially
with the growth of the internet. One major purpose of
auction is to dispose of excess inventories or used goods.
Pizza Hut needs to be aware of the three major types of
auctions and their separate pricing procedure. Currently
Pizza Hut is not using this type of pricing.
For holding marketing position, Pizza Hut is practicing
Psychological Pricing Strategy during promotions and other special occasions. The
authority can take steps to offer pizzas at an economy price (e.g. a price range of Tk. 80
to Tk. 100, (excluding the VAT). The ground for recommending this price range is, since
Pizza Hut can afford to offer pizzas during sales promotion at Tk.99, therefore it is
justifiable to offer pizzas at the above recommended price. The manager informed us that
this increases their profit margin by around Tk.40000.
Place:
If Pizza Hut wants to make significant profit out their operation in Bangladesh, like in
any other countries it is very important to position it in proper locations. Currently they
have their outlet in Gulshan-1, Dhanmondi and Chittagong, which is a very good
locations and have access from all parts of the country. The nearby roads and the
44
environment itself are satisfactory. Even though they have these outlets located in a very
good locations many people is unwilling to travel all the way from their home to have
pizzas because of the distance. So, Pizza Hut are planning to set up 3 more outlets in
different suitable position in Dhaka.
The distribution policy for Pizza Hut is that they distribute their final product to the
customer directly. Pizza Hut’s market coverage is the whole world. They use logistic
service level. They bring their ingredients from their supplier through different kind of
transportation. They collect their required ingredient from different source. They have
only upstream suppliers; they do not use any down-stream channel. They have chosen
the most favorable location to available their product to the final customer. They have
built long term relationship with their
suppliers.
Promotion:
Since the focus has been to develop a
product mix, which uploads the tradition
of Bangladesh, it would be wise to
promote this product through a campaign,
which would clearly emphasize on cultural values. Blending the western concept with the
local image will be a difficult task and at the same time not a very good approach for
marketing. Therefore, if Pizza Hut introduces or launches their new product during any
traditional festival that the Bengalis give value would be given higher priority. For
instance, rather than launching the product during any time, it would be better if the
45
product is launched on the occasion of “Pahela
Baishakh”. This can add a positive impact and people
would really trust to what Pizza hut means saying –
Think Global, Act Local. Since Pizza Hut does very
little promotions on T.V, most of the consumers have
heard about Pizza Hut mainly through friends and
relatives. Our survey showed that 51% of the IUB
students have heard of it from word-to-mouth sources
and 39% were informed through leaflets. The Pizza
Hut authority can take initiatives to air more number of
ads on the television and newspapers and also in attractive posters on selected magazines
could proved to be the best promotional tools for Pizza Hut. The ads on T.V should be
broadcasted in Channels like NTV, Channel I, Channel 1(one), and Bangla vision during
the time of 6pm – 11pm, which is considered to be the prime time for families.
One advertising promotion that Pizza Hut undertakes is, they distribute leaflets hand to
hand in front of universities like IUB, NSU, EWU, BRAC and AIUB etc, to attract more
and more students. In the month of March in 2008, Pizza hut provided the “Shadhinota
Offer” on the occasion of the Independence Day. Later, they decided to extend the offer
till the end of April because of the Bengali New Year coming up. The offer included one
personal pan pizza (PPP) for Tk 99 only. Such an offer was also given during the month
of Ramadan when customers were allowed to have ‘as much as they can’ paying Tk 200
only.
One of the main focuses of Pizza hut should be ‘home delivery’ service. This could gain
more customers. Promotion can also be done through direct marketing. Customers can be
provided special discounts on the Valentine’s Day, Christmas Day etc. The local
authority should keep in pace with all the current trends of the world and try to identify
46
the needs of the younger generation. In order to have a leading position, adapting the
ever-changing world is very crucial.
This is a very important tool for an acclaimed business organization like Pizza Hut
operating in a market like Bangladesh. So, Pizza Hut can improve its operations by
conducting a rigorous advertisement campaign. This is very important for Pizza Hut as
well as we all know that, a big portion of our target customer, the younger generation of
this country is well aware of Pizza Hut. So there can be any misconception among the
customers about Pizza Hut or about the food of Pizza Hut as they did not get the
information from any formal or official sources. So this is a big time for Pizza Hut to
stand strong and declare their standing on any issue through their promotion to avoid
these misconceptions (if any) among the target customers. This is also an opportunity for
Pizza Hut to acquire those customers of this country who are not at all aware of Pizza Hut
and that can be done through effective promotion.
The promotion plan for Pizza Hut is as follows:
Our advertising campaign is for 1 year. We want to divide our advertising into four
segments:
1st month intensive advertising with 360 degree approach
2nd month advertising with little less effort
3rd month advertising with minimum effort
After 3 months we will run ads on television channels and newspapers randomly to get in
touch with our customers. Between this time if there is any occasion and festival or any
new offer is introduced then there will be suddenly a lot of TV and news paper ads to get
the customers noticed about the offer.
Customer Relationship Management
47
One of the main reasons for Pizza Hut’s success is building close customer relationship.
The brand image of Pizza Hut helped it to gain eager consumers but their more than a
year journey was successful because of building profitable customer relationships by
delivering superior customer value and satisfaction. It is what Pizza Hut calls “Customer
Mania.”
Since the promotion and advertisements of Pizza hut are limited, it is only the satisfied
customers who spread words about Pizza Hut’s superior values. The effort and the extent
to which Pizza Hut’s employees undergo to satisfy consumers are given below in some
dramatic illustrations.
‘On a rainy night, a couple on their first visit to Pizza Hut was escorted by Amit - one of
the employees of Pizza Hut. He then introduced them to the server, Shohug. While
serving their food, Shohug somehow found out that it was their first wedding
anniversary. He went up to Amit and requested to be released for 5 minutes. He came
back drenched to the bone, with a bouquet of flowers in his hand. Shohug along with the
team then went up to the couple and wished them. The couple was totally taken aback
and on their way out, wrote on the comment card that they’ll never forget this visit which
had indeed touched their hearts.’
‘In yet another busy day at Pizza Hut, Jasim - a server, came up to Akku Chowdhury, the
directing manager of Pizza Hut and told him about one of the customer who did not have
any local currency (Tk) but only carrying dollars with him. He was not even carrying a
credit card. Mr. Akku Chowdhury, went up to Mr. Islam, the customer and found out that
he had come with a guest, and would be put in a very awkward position of his guest had
to pay. Mr. Akku did not hesitate for even a moment and settled the entire bill from his
48
own pocket. Till now the customer has not come back to refund the money, but at that
moment Akku with his instant foresight had saved Mr. Islam from the embarrassment.
‘A foreign family came with their child to the Gulshan outlet of Pizza Hut. The child was
playing in the children’s zone with his mother. The child started crying out of hunger
while the family was eating, as the toddler could not eat the pizza. The mother had
forgotten to bring the milk for the child. Akku saw the plight of the child and rushed to
the nearest shop and bought a pack of milk. The family was so appreciative of the great
concern shown by Akku that they thanked him profusely and acknowledged that they had
never seen such service all their life.’
These are only a handful illustration what Pizza Hut is ready to do to delight the
consumers. Serving the consumers within the promised is another of their strengths.
Usually Pizza Hut serves the consumer a few minutes before the promised time, which
not only satisfies the consumers but also delights them.
Pizza Hut goes to the length of satisfying consumers by providing various entertainment
and surprise gifts. Standing on the chair, singing and dancing are one of their unusual but
frequent ways of wishing a ‘birthday person’. Customer Relationship Management
simply doesn’t stop here. Giving promotional offers during Noboborsho (Bengali New
Year), Shadhinata Dibosh (Independence Day) and Ramadan month reflects the
franchising company’s respect for our culture and impresses upon the mind of the
consumer that Pizza Hut is thinking globally and acting locally. All the initiatives and the
efforts that Pizza Hut undertook to delight the consumers with outstanding service earned
them on January 2004, the 22nd ‘Restaurant Excellence Award’ in the whole
subcontinent.
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As mentioned before in this report that Pizza Hut does not do any customer segmentation
hence they give all consumers equal priority. But it can be recommended that to increase
consumer equity, Pizza Hut can offer their loyal and regular customers discounts once or
twice a year.
Though Pizza Hut do send their promotional offers and birthday wishes to their
consumers based on information collected through questionnaires and feedback received
from the net, our survey revealed that most of the consumers who dine out at Pizza Hut
hardly ever return the questionnaire. Pizza Hut can increase consumer’s feedback by
making ‘loyal consumer of the year’ through feedback and can offer special promotional
offers for the individual and the family. This will not only increase feedback for Pizza
Hut to know their consumer’s better but consumer’s will be more eager to give feedback
and might more frequently dine at Pizza Hut.
As Pizza Hut is open from noon to midnight, they have some regular and fixed number of
customers at late night. They can offer a free appetizer item with pizzas or other
promotional offers starting from 11:00 pm-12:00 am which can increase the number of
late night consumers.
Though Pizza Hut does an excellent job of
satisfying customers but the above suggestions are
worth mentioning as it always costs 5 times more to
attract a new customer than to keep a current
customer happy.
Ethical and Social Responsibilities
To earn customer’s trust and to stay put in business,
it is indispensable that a company should practice ethical and social responsibilities.
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Pizza Hut imports all its raw materials from abroad but they also keep in mind the
religion sensitive people of this country. Therefore, all the raw materials purchased are
halal and under strict monitoring of the Pizza Hut’s authorities. Under Pizza Hut’s code
of conduct, they strictly maintain cleanliness and hygiene food and never serve a day-old
product items.
It is also ethical that Pizza Hut provides a nutritional chart in its website which informs
health conscious consumers how much cholesterol and other proteins that they are
having.
If Pizza Hut includes the ingredients used for their items in the website and have a
ingredient chart in their outlet, this would then be a ethical responsibility to inform
consumers who might have restriction on consumption of certain ingredient items.
Pizza Hut is also going to introduce the online delivery service within the next few
months. It is their ethical responsibility to protect consumers’ private information on the
website.
Pizza Hut often undertakes social responsibility. As they are the part of the society, Pizza
Hut takes part in performing social responsibility. For example, Pizza Hut treated 150
orphans for free in their fast food shop. Pizza Hut
already practices “green marketing” – the use of
environmental friendly materials such as water based
paint and recycled Pizza boxes.
Pizza Hut defines its mission statement in broad social
terms rather than narrow product terms and focuses
their business actions towards socially responsible
marketing. Their mission statement includes not only
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welfare of its consumers and employees satisfaction but also asserts maximization of life
quality through improvement in the quality of the environment.
Marketing Research
Before launching any new product, Pizza Hut conducts extensive research to find out:
What people think about pizzas (what role do they play in people's lives, when do
they eat them and so on)
What do they like about pizza
What do they dislike about pizzas
What do they want from pizzas
What are the expectations about their food, when they enter into their store.
52
This information is collected together and used to create ideas for prototypes. The ideas
are tested first, before introducing new items. Once Pizza Hut has perfected the pizza,
They LAUNCH!
Due to the vast success of our flagship restaurant in Gulshan, and huge demand from
their consumers, opening of new stores in different cities are already under way. And
from this experience their marketing team has the recognition and understanding of
cultural influences
governmental and political influences
demographic and lifestyle trends
local and national economic trends
06. Financial analysis:
The f inancia l p ic ture of Pizza Hut i s qui te encouraging. In th is
sec t ion we wi l l of fer a f inancia l overview of Pizza Hut which deals
about break even analys is , sa les
forecas ts , and expenses forecas ts .
Break even analysis
In our projection we are expecting that in fixed
asset we will expense 30% of total expense
budget and for variable expenses we also
expecting that we will expense 70% and
contribution margin will be 61.5%. As in first
53
year, we will have a total expense of Tk.4745125 and from this, we will spend
Tk.1423537.5 in fixed cost and we will spend Tk. 3321587.5 in Variable cost. As we are
producing verities product so we calculate Break even fo r each produc t s .
Break even point of each product:
Break even for Pan Pizza:
BEP in Units sales = FC / unit contribution margin
= 396000 / 98.4
= 4024.39 units
= 4024 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 98.4 / 160
= 61.5%
BEP in total sales in dollar = FC / CM ratio
= 396000 / 61.5%
= Tk. 643902
Profit
Tk. 1080000
Tk.0
54
Tk. 643902 Tk. 2, 400,000 Sales
Yearly based break even for Pan Pizza
Breakeven point = where line intersect with 0s
From that Break-even we can see that in BEP dollar sales is Tk.643902 but our
expected sales for 1st year is Tk.2400000 and assume that we will be able to make
profit at Tk.1080000 in the 1st year, which will be a great achievement. We
expect that profit to grow over time.
For Pan Pizza in year 2010:
FC = TK.396000
VC = Tk.61.6 Total Per unit
Sales (15000) Tk.2,400,000 Tk.160
(-) VC Tk.924000 Tk.61.6
Contribution margin Tk.1476000 Tk.98.4
(-) FC 396000
Operation income Tk.1080000
For Pan Pizza in year 2011:
FC = TK. 448800
55
VC = Tk.61.6 Total Per unit
Sales (17000) Tk. 2720000 Tk.160
(-) VC Tk.1047200 Tk.61.6
Contribution margin Tk.1672800 Tk.98.4
(-) FC 448800
Operation income Tk.1224000
For Pan Pizza in year 2012:
FC = TK.528000
VC = Tk.61.6 Total Per unit
Sales (20000) Tk. 3200000 Tk.160
(-) VC Tk.1232000 Tk.61.6
Contribution margin Tk.1968000 Tk.98.4
(-) FC 528000
Operation income Tk.1440000
Break even for Italian Pizza:
BEP in Units sales = FC / unit contribution margin
= 195937.5 / 116.85
56
= 1676.83 units
= 1677 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 116.85 / 190
= 61.5%
BEP in totals sales dollars = FC / CM ratio
= 195937.5 / 61.5%
= Tk. 318597.56
Profit
Tk. 534375
Tk.0
Tk. 318597.56 Tk.1187500 Sales
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Yearly based break even
Breakeven point = where line intersect with
From that Break-even we can we can see that in BEP dollar sales is Tk.318598
but our expected sates for 1st year is Tk.1187500 and assume that we will be able
to make profit at Tk.534375 in the 1st year for Italian Pizza. We expect that profit
to grow over time.
For Italian Pizza in year 2010:
FC = TK.195937.5
VC = Tk.73.15 Total Per unit
Sales (6250) Tk.1187500 Tk.190
(-) VC Tk.457187.5 Tk.73.15
Contribution margin Tk.730312.5 Tk.116.85
(-) FC 195937.5
Operation income Tk.534375
For Italian Pizza in year 2011:
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FC = TK.188100
VC = Tk.73.15 Total Per unit
Sales (6000) Tk.1140000 Tk.190
(-) VC Tk.438900 Tk.73.15
Contribution margin Tk.701100 Tk.116.85
(-) FC 188100
Operation income Tk.513000
For Italian Pizza in year 2012:
FC = TK.282150
VC = Tk.73.15 Total Per unit
Sales (9000) Tk.1710000 Tk.190
(-) VC Tk.658350 Tk.73.15
Contribution margin Tk.1051650 Tk.116.85
(-) FC 282150
Operation income Tk.769500
Break even for Thin ‘n’ Crispy:
BEP in Units sales = FC / unit contribution margin
= 210375 / 92.25
= 2280.49 units
59
= 2280 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 92.25 / 150
= 61.5%
BEP in totals sales dollars = FC / CM ratio
= 210375/ 61.5%
= Tk. 342073.17
Profit
Tk. 573750
$0
Tk.342073.1 Tk.1275000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk.342073
but our expected sates for 1st year is Tk.1275000 and assume that we will be able
60
to make profit at Tk.573750 in the 1st year for Thin ‘n’ Crispy. We expect that
profit to grow over time.
For Thin ‘n’ Crispy 2010:
FC = TK.210375
VC = Tk.57.75 Total Per unit
Sales (8500) Tk.1275000 Tk.150
(-) VC Tk.490875 Tk.57.75
Contribution margin Tk.784125 Tk.92.25
(-) FC 210375
Operation income Tk.573750
For Thin ‘n’ Crispy 2011:
FC = TK.247500
VC = Tk.57.75 Total Per unit
Sales (10000) Tk.1500000 Tk.150
(-) VC Tk.577500 Tk.57.75
Contribution margin Tk.922500 Tk.92.25
(-) FC 247500
Operation income Tk.675000
For Thin ‘n’ Crispy 2012:
FC = TK.371250
61
VC = Tk.57.75 Total Per unit
Sales (15000) Tk.2250000 Tk.150
(-) VC Tk.866250 Tk.57.75
Contribution margin Tk.1383750 Tk.92.25
(-) FC 371250
Operation income Tk. 1012500
Break even for Stuffed Crust:
BEP in Units sales = FC / unit contribution margin
= 132000 / 98.4
= 1341.46units
= 1341 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 98.4 / 160
= 61.5%
BEP in totals sales dollars = FC / CM ratio
= 132000 / 61.5%
= Tk. 214634.15
Profit
Tk. 576000
62
$0
Tk. 214634.15 Tk. 800000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk.214634
but our expected sates for 1st year is Tk.800000 and assume that we will be able to
make profit at Tk. 576000 in the 1st year for Stuffed Crust. We expect that profit
to grow over time.
For Stuffed Crust in year 2010:
FC = TK.132000
VC = Tk.61.6 Total Per unit
Sales (5000) Tk. 800000 Tk.160
(-) VC Tk.308000 Tk.61.6
Contribution margin Tk.492000 Tk.98.4
(-) FC 132000
Operation income Tk.360000
For Stuffed Crust in year 2011:
63
FC = TK.211200
VC = Tk.61.6 Total Per unit
Sales (8000) Tk. 1280000 Tk.160
(-) VC Tk.492800 Tk.61.6
Contribution margin Tk.787200 Tk.98.4
(-) FC 211200
Operation income Tk.576000
For Stuffed Crust in year 2012:
FC = TK.264000
VC = Tk.61.6 Total Per unit
Sales (10000) Tk. 1600000 Tk.160
(-) VC Tk.616000 Tk.61.6
Contribution margin Tk.984000 Tk.98.4
(-) FC 264000
Operation income Tk.720000
Break even for the Big New Yorker:
BEP in Units sales = FC / unit contribution margin
= 158400/ 98.4
= 1609.76units
= 1610 units (round up)
64
CM Ratio = Unit CM / Unit Sales Price (P)
= 98.4 / 160
= 61.5%
BEP in totals sales dollars = FC / CM ratio
= 158400 / 61.5%
= Tk. 257560.97
Profit
Tk. 432000
$0
Tk. 257560.97 Tk. 960000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 257560.97
but our expected sates for 1st year is Tk. 960000 and assume that we will be able
65
to make profit at Tk. 432000 in the 1st year for the Big New Yorker. We expect
that profit to grow over time.
For the Big New Yorker in year 2010:
FC = TK.158400
VC = Tk.61.6 Total Per unit
Sales (6000) Tk. 960000 Tk.160
(-) VC Tk.369600 Tk.61.6
Contribution margin Tk.590400 Tk.98.4
(-) FC 158400
Operation income Tk.432000
For the Big New Yorker in year 2011:
FC = TK.184800
VC = Tk.61.6 Total Per unit
Sales (7000) Tk. 1120000 Tk.160
(-) VC Tk.431200 Tk.61.6
66
Contribution margin Tk.688800 Tk.98.4
(-) FC 184800
Operation income Tk.504000
For the Big New Yorker in year 2012:
FC = TK.184800
VC = Tk.61.6 Total Per unit
Sales (7000) Tk. 1120000 Tk.160
(-) VC Tk.431200 Tk.61.6
Contribution margin Tk.688800 Tk.98.4
(-) FC 184800
Operation income Tk.504000
Break even for soup:
BEP in Units sales = FC / unit contribution margin
= 105600/ 49.2
= 2146.34units
= 2146 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
67
= 49.2 / 80
= 61.5%
BEP in totals sales dollars = FC / CM ratio
= 105600 / 61.5%
= Tk. 171707.31
Profit
Tk. 288000
$0
Tk. 171707.31 Tk. 640000 Sales
Yearly based break even
Break even point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 171707.31
but our expected sates for 1st year is Tk. 640000 and assume that we will be able
to make profit at Tk. 288000 in the 1st year for the soup. We expect that profit to
grow over time.
68
For the soup in year 2010:
FC = TK.105600
VC = Tk.30.8 Total Per unit
Sales (8000) Tk. 640000 Tk.80
(-) VC Tk.246400 Tk.30.8
Contribution margin Tk.393600 Tk.49.2
(-) FC 105600
Operation income Tk.288000
For the soup in year 2011:
FC = TK.118800
VC = Tk.30.8 Total Per unit
Sales (9000) Tk. 720000 Tk.80
(-) VC Tk.277200 Tk.30.8
Contribution margin Tk.442800 Tk.49.2
(-) FC 118800
Operation income Tk.324000
69
For the soup in year 2012:
FC = TK.158400
VC = Tk.30.8 Total Per unit
Sales (12000) Tk. 960000 Tk.80
(-) VC Tk.2369600 Tk.30.8
Contribution margin Tk.590400 Tk.49.2
(-) FC 158400
Operation income Tk.432000
Break even for refreshing Beverages in year 2010:
BEP in Units sales = FC / unit contribution margin
= 33000/ 30.75
= 1073.17units
= 1073 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 30.75 / 50
= 61.5%
70
BEP in totals sales dollars = FC / CM ratio
= 33000 / 61.5%
= Tk. 53658.54
Profit
Tk. 90000
$0
Tk. 53658.54 Tk. 200000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 53659
but our expected sates for 1st year is Tk. 200000 and assume that we will be able
to make profit at Tk. 90000 in the 1st year for the refreshing Beverages. We
expect that profit to grow over time.
71
.
For the refreshing Beverages in year 2010:
FC = TK.33000
VC = Tk.19.25 Total Per unit
Sales (4000) Tk. 200000 Tk.50
(-) VC Tk.77000 Tk.19.25
Contribution margin Tk.123000 Tk.30.75
(-) FC 33000
Operation income Tk.90000
For the refreshing Beverages in year 2011:
FC = TK.41250
VC = Tk.19.25 Total Per unit
Sales (5000) Tk. 250000 Tk.50
(-) VC Tk.96250 Tk.19.25
Contribution margin Tk.153750 Tk.30.75
(-) FC 41250
Operation income Tk.112500
72
For the refreshing Beverages in year 2012:
FC = TK.66000
VC = Tk.19.25 Total Per unit
Sales (8000) Tk. 400000 Tk.50
(-) VC Tk.154000 Tk.19.25
Contribution margin Tk.246000 Tk.30.75
(-) FC 66000
Operation income Tk.180000
Break even for scrumptious Pasta:
BEP in Units sales = FC / unit contribution margin
= 128700/ 79
= 1609.75units
= 1610 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 79.95/ 130
= 61.5%
73
BEP in totals sales dollars = FC / CM ratio
= 128700 / 61.5%
= Tk. 209268.29
Profit
Tk. 351000
$0
Tk. 209268.29 Tk. 780000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 209268.29
but our expected sates for 1st year is Tk. 780000 and assume that we will be able
to make profit at Tk. 351000 in the 1st year for the scrumptious Pasta. We expect
that profit to grow over time.
74
For the scrumptious Pasta in year 2010:
FC = TK.128700
VC = Tk.50.05 Total Per unit
Sales (6000) Tk. 780000 Tk.130
(-) VC Tk.300300 Tk.50.05
Contribution margin Tk.479700 Tk.79.95
(-) FC 128700
Operation income Tk.351000
For the scrumptious Pasta in year 2011:
FC = TK.117975
VC = Tk.50.05 Total Per unit
Sales (5500) Tk. 715000 Tk.130
(-) VC Tk.275275 Tk.50.05
Contribution margin Tk.439725 Tk.79.95
(-) FC 117975
75
Operation income Tk.321750
For the scrumptious Pasta in year 2012:
FC = TK.193050
VC = Tk.50.05 Total Per unit
Sales (9000) Tk.1170000 Tk.130
(-) VC Tk.450450 Tk.50.05
Contribution margin Tk.719550 Tk.79.95
(-) FC 193050
Operation income Tk.526500
Break even for fresh and crispy fruits and vegetables at the Salad
Bar:
BEP in Units sales = FC / unit contribution margin
= 63525/ 43.05
= 1475.61units
= 1476 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 43.05/ 70
= 61.5%
76
BEP in totals sales dollars = FC / CM ratio
= 63525 / 61.5%
= Tk. 103292.68
Profit
Tk. 173250
$0
Tk. 103292.68 Tk. 385000 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 103292.68
but our expected sates for 1st year is Tk. 385000and assume that we will be able to
make profit at Tk. 173250 in the 1st year for the fresh and crispy fruits and
vegetables at the Salad Bar. We expect that profit to grow over time
77
For the fresh and crispy fruits and vegetables at the Salad Bar in
year 2010:
FC = TK.63525
VC = Tk.26.95 Total Per unit
Sales (5500) Tk. 385000 Tk.70
(-) VC Tk.148225 Tk.26.95
Contribution margin Tk.236775 Tk.43.05
(-) FC 63525
Operation income Tk.173250
For the fresh and crispy fruits and vegetables at the Salad Bar in
year 2011:
FC = TK.69300
VC = Tk.26.95 Total Per unit
Sales (6000) Tk. 420000 Tk.70
(-) VC Tk.161700 Tk.26.95
Contribution margin Tk.258300 Tk.43.05
(-) FC 69300
Operation income Tk.189000
78
For the fresh and crispy fruits and vegetables at the Salad Bar in
year 2012:
FC = TK.80850
VC = Tk.26.95 Total Per unit
Sales (7000) Tk. 490000 Tk.70
(-) VC Tk.188650 Tk.26.95
Contribution margin Tk.301350 Tk.43.05
(-) FC 80850
Operation income Tk.220500
Break even for delightful Desserts:
BEP in Units sales = FC / unit contribution margin
= 48262.5/ 27.675
= 1743.90units
= 1744 units (round up)
CM Ratio = Unit CM / Unit Sales Price (P)
= 27.675/ 45
= 61.5%
79
BEP in totals sales dollars = FC / CM ratio
= 48262.5 / 61.5%
= Tk. 78475.61
Profit
Tk. 131625
$0
Tk. 78475.61 Tk. 292500 Sales
Yearly based break even
Breakeven point = where line intersect with 0s
From that Break-even we can we can see that in BEP dollar sales is Tk. 78475.61
but our expected sates for 1st year is Tk. 292500 and assume that we will be able to
make profit at Tk. 131625 in the 1st year for the fresh and crispy fruits and
vegetables at the Salad Bar. We expect that profit to grow over time
80
For delightful Desserts in year 2010:
FC = TK.48262.5
VC = Tk.17.325 Total Per unit
Sales (6500) Tk. 292500 Tk.45
(-) VC Tk.112612.5 Tk.17.325
Contribution margin Tk.179887.5 Tk.27.675
(-) FC 48262.5
Operation income Tk.131625
For delightful Desserts in year 2011
FC = TK.59400
VC = Tk.17.325 Total Per unit
Sales (8000) Tk. 360000 Tk.45
(-) VC Tk.138600 Tk.17.325
Contribution margin Tk.221400 Tk.27.675
(-) FC 59400
Operation income Tk.162000
For delightful Desserts in year 2012:
FC = TK.89100
VC = Tk.17.325 Total Per unit
Sales (12000) Tk. 540000 Tk.45
(-) VC Tk.207900 Tk.17.325
Contribution margin Tk.332100 Tk.27.675
81
(-) FC 89100
Operation income Tk.243000
Sales forecast
Unit sales:
Years 2010 2011 2012
Pan Pizza 15000 17000 20000
Italian Pizza 6250 6000 9000
Thin ‘n’ Crispy 8500 10000 15000
Stuffed Crust 5000 8000 10000
the Big New Yorker 6000 7000 7000
Soups 8000 9000 12000
refreshing Beverages 4000 5000 8000
scrumptious Pasta 6000 5500 9000
fresh and crispy fruits
and vegetables at the
Salad Bar
5500 6000 7000
delightful Desserts 6500 8000 12000
Total sales 70750 81500 109000
82
Unit sales figure:
Assuming=Series 1=2010, Series 2=2011, Series 3=2012
Unite price:
Years 2010 2011 2012
Pan Pizza Tk.160 Tk.160 Tk.160
Italian Pizza Tk.190 Tk.190 Tk.190
Thin ‘n’ Crispy Tk.150 Tk.150 Tk.150
Stuffed Crust Tk.160 Tk.160 Tk.160
the Big New Yorker, Tk.160 Tk.160 Tk.160
Soups Tk.80 Tk.80 Tk.80
refreshing Beverages Tk.50 Tk.50 Tk.50
scrumptious Pasta Tk.130 Tk.130 Tk.130
fresh and crispy fruits
and vegetables at the
Salad Bar
Tk.70 Tk.70 Tk.70
83
delightful Desserts Tk.45 Tk. 45 Tk.45
Total Sales:
Years 2010 2011 2012
Pan Pizza Tk.2,400,000 Tk.2720000 Tk.3200000
Italian Pizza 1187500 1140000 1710000
Thin ‘n’ Crispy 1275000 1500000 2250000
Stuffed Crust 800000 1280000 1600000
the Big New Yorker, 960000 1120000 1120000
Soups 640000 720000 960000
refreshing Beverages 200000 250000 400000
scrumptious Pasta 780000 715000 1170000
fresh and crispy fruits
and vegetables at the
Salad Bar
385000 420000 490000
delightful Desserts 292500 360000 540000
Total sales Tk.8627500 Tk. 10585000 Tk.13440000
Sales forecast:
The company sa les forecas t assumes tha t in % of f ixed cos t and
var iable cos t wi l l not changes but to ta l uni t of sa les wi l l increase
f rom Tk.8627500 to Tk. 10585000 in the year 2010 to 2011 and then
sa les wi l l increase Tk. 10585000 to Tk.13440000 in the year 2011 to
2012 and cm ra t io wi l l remain same.
84
For 2010 the company wi l l in ternal ly develop new amount of
product and i t s var iance which wi l l increase the new cus tomer
group. The focus wi l l be on fami ly , s tudents , and young people .
VC
Expense budget
Marketing
Expense Budget
2010(thousand) 2011(thousand) 2012(thousand)
Production cost 3321587.5 4075225 5174400
Ads/Promotion 800000 1000000 1500,000
Wages &
Salaries
300000 300000 300000
Others expanses 323537.3 446525 417600
Total Expense 4745125 5821750 7392000
Sales (%)
Contribution
Margin
61.5% 61.5% 61.5%
FC 30% of total
expanses
30% of total
expanses
30% of total
expanses
VC 70% of total
expanses
70% of total
expanses
70% of total
expanses
FC
85
Expenses forecast:
The main expense area of p izza hut i s adver t i sement . They spend
16.86% of to ta l expenses . Every year the market ing budget of
p izza hut i s increas ing a t a grea t dea l wi th the increase of sa les
and revenue.
07. Conclusion:
The overall image that Pizza Hut has brought in
Bangladesh is undoubtedly a positive one since
there has been no other international fast food
chain in Bangladesh. With the idea of global
thinking along with its application locally has
proven to be successful for the company. The
profit maximization margin of Pizza Hut is quite
remarkable compared to the fast food shops like
Domino’s Pizza, Subcity, Shawrma Palace and others. They have developed their strong
image of being a part of Tricon Global Restaurants and the Yum! International Brand, by
developing the services in their only outlet in Dhaka. Their competitive edge has been the
excellent service that they provide-something very rarely observed in Bangladesh fast
food industry. Their presence has added charisma to the city life and certainly gave the
younger people someplace to ‘hang out’. Their control method of their operation has
certainly helped them to attain one of the top market positions and that too within a year
only.
86
The quality and service timing makes it exceptional and its promotional offers during our
different cultural occasions undoubtedly makes it more popular among the people. With
the online delivery service coming up within a few months, it will be the role model
among the fast food shops with its innovative ideas. The policies and strategies that Pizza
Hut practices will positively lead them to success. And the recommendation that we have
offered throughout the report can make Pizza Hut a unique fast food shop amongst the
rest.
08. References:
01. www.pizzahutbd.com
02. http://www.pizzahut.com/Deals.aspx 03. http://en.wikipedia.org/wiki/Pizza_Hut 04. http://www.pizzahuthawaii.com/
05. http://www.thefreelibrary.com/Pizza+Hut+BOOK+IT!+Program+and+HarperCollins+Publishers+Join+Forces...-a0139467739