17490662 marketing research pizza hut

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RESEARCH METHODLOGYRESEARCH METHODLOGY

THE PIZZA HUT STORYTHE PIZZA HUT STORY

TOPIC

PIZZA HUT


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SUBMITTED BY

M.COM(PART-II)SEMESTER-3

PROJECT GUIDE

PROF.PRAJNA SHETTY

SUBMITTED TO

UNIVERSITY OF MUMBAI

AFFILIATED TO UNIVERSITY OF MUUMBAI

ACCREDITED BY NAAC WITH AGRADE

&

DURGADEVI SARAF JUNIOR COLLEGE

(ARTS & COMMERCE)S.V.ROAD,MALAD(W)

MUMBAI 400064

YEAR:2013-2014

CERTIFICATEI Prof.PRAJNA SHETTY. here by certify that MS.RESHA

MEHTA a student of ghanshyamdas saraf college of m.com

part II (semister 3)has completed project onPIZZA

HUTin the academic year 2013-2014.this information

submitted is true and original to the best of my knowledge.

External examiner

principal

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Date:

Project co-ordinator collegeseal

Date:

ACKNOWLEDGEMENT

I take this opportunity to thank the university of

Mumbai for giving me a chance to do this project.

I express my sincere gratitude to the principal course

co-ordinator Prof.Prajna Shetty and our librarian and

other teachers for their constant support and helping for

completing the project.I am also grateful to my friends for giving support in

my project lastly I would like to thank each and every

person who helped me in completing the project especially

my parents.

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DECLARATIONI Miss.Resha Mehta a student of ghanshaymdas

saraf college of art and commerce, malad (w) M.COM

PATR (II) (SEMESTER 3) hereby declared that I have

completed project onPIZZA HUTIn the academic year 2013-2014.This information

submitted is true and original to best of my knowledge.

Date: signature of

student

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LETTER OF TRANSMITTAL

We enjoyed doing this project as it gave us a great experience and more exposure to theMARKETING WORLD. We came across different people having different kinds ofexperiences and enjoyed listening to them and getting the questionnaires filled by them.At the same time there were some constraints too, that we had to face. This mainlyincluded the time constraint and the non- cooperation of people. Still we found it veryinteresting and are thankful to our respected teacher who gave us the opportunity andmoral support to conduct this research.

TABLE OF CONTENTS

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List of Charts.

List of Appendices.

Executive Summary...

Introduction....

Problem Definition

Literature Review..

Research Design

Information Needs.

Data Analysis.

Results

Limitations.

Conclusion And Recommendations...

Appendice...

Swot analysis

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EXECUTIVE SUMMARY

The research report includes our research about Pizza Hut to analyze the most importantelement for its profitability. In this research we conducted a customer analysis in whichwe asked the customers their preferences for going to any fast food restaurant. We alsoasked them about their experiences in Pizza Hut, every time they visit there. This helpedus making a broad perception about the future sales and profitability of Pizza Hut andwhat Pizza Hut needs to do to maintain its image and retain the customers.

INTRODUCTION

Pizza Hut takes great pride and care to provide its customers with the best food and

dining experience in the quick-service restaurant business. It has its 34 outlets in 9different cities of Pakistan that include:

Rawalpindi

Islamabad

Peshawar

Lahore

Faisalabad

Sialkot

Multan

Hyderabad

Karachi

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Pizza hut has been a renowned restaurant since 1958. it has maintained itsquality and goodwill since then. It has also been awarded as the bestrestaurant chain internationally.The history of Pizza Hut comes a long way from 1958.On May 31st 1958, the first Pizza Hut restaurant opened in Wichita, Kansas,

started by two college aged brothers who borrowed $600 from their mother.In 1959, Pizza Hut got incorporated in Kansas and the first franchise unitopened in Topeka, Kansa.In 1964 The basic freestanding design of PizzaHut was adopted. In 1966 Pizza Huts first Home Office was built inWichita, Kansas to handle the business of now 145 Pizza Restaurants.In 1967 Nine- inch tall Pizza Pete dolls became available at all Pizza Hutsrestaurants.In 1969, the familiar top roof was adopted for Pizza Huts restaurants.In 1971, Pizza Hut became the number one Pizza restaurant chain in theworld in both sales and number of restaurants. In 1972, Pizza Hut Inc. waslisted on the New York Stock Exchange under the symbol PIZ, andrestaurant number 1000 opened in Wichita, Kansas. Pizza Huts goesInternational as a restaurant opened in Costa Risa. In 1976, The 100th

International Pizza restaurant opened in Australia while the entire numberreaches 2000 restaurants. In 1977, Pizza Hut Stakeholders merged withPepsi Co. In 1983, Pizza Hut celebrated its 25 th Anniversary. In 1986, Pizza

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Huts started its Home Delivery service. In 1995, Pizza Hut launched itsStuffed Crust Pizza, which immediately set companys sales records. In2007, Pizza Hut offered online ordering at all of their 65,000 locations. In2008, Pizza Hut introduced Total Mobile Access- the ability for customersto order by text messaging or using their web enabled cell phones.

PROBLEM DEFINITION

Statement of the problem:

Quality is pivotal element for customer retention and growth

Background of the problem:

Pizza Hut has always been successful in delivering the best fast-food. It has gained many customers throughout the world and hasalways been working on customer- retention. This research isconducted as Pizza Hut wants to know the preferences of their

current valued customers so that they can serve them in a moresatisfactory way and improve their overall performance.

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LITERATURE REVIEW

It was a pioneer research that we conducted and there was nosecondary research available.

RESEARCH DESIGN

The research we conducted is descriptive as well as theoretical innature.

INFORMATION NEEDS

Data collection:

There was no secondary data available in this context for PizzaHut. We collected primary data from people.

Scaling Technique:

We used the non-comparitive scaling technique in ourquestionnaires.

Questionnaire Development:

While developing the questionnaire, we focused mainly onquestions that showed the preference of the fast-food customerswith respect to food quality, price, environment, services, etc. andcould give us a clear impact of the most preferred element.

Pre- testing:

In pre-testing we got the questionnaires filled by 10 people fromwithin our population. There was no problem faced by the

population and they found the questionnaire easy to understandand fill and we could also figure out the results from the answers.

Thus, we felt no need of any change in the questionnaire.

Sampling Techniques:

The sampling technique used by us in this research is JudgmentalSampling.

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Field Work:

We were two people to get the questionnaires filled. We got themfilled within the premises of Fatimah Jinnah Women University.

DATA ANALYSIS

Population:

The population for our research were all the students of FatimahJinnah University.

Sample:We took sample size of 20 students.

Method:

We analyzed the results by making pie charts for all questions.

RESEARCH METHODOLOGY

The research process is carried out according to a designatedseries of steps,which are required to be taken in a chronological order.Fundamental to the success of any research project is soundresearch design. It isthe framework or plan for a study that guides the collection andanalysis of data.

The research design used for this project is exploratory in nature.The majoremphasis is on the discovery of ideas. The exploratory study is

also used toincrease the analyst familiarity with the problem underinvestigation.

Sample Design

Target population

Those who have regularly visited in the fast-food Sampling unit

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Delhi market is treated as sampling unit.

Sample size: 100.

Data Collection

Primary Data

Primary data has been collected through surveyed to the consumer.

Secondary Data

Secondary data has been collected from the companys informationbrochure andinternet.

OBJECTIVES OF STUDY

To study how direct marketing is done by PIZZA HUT, tosubstantiate its effort to strengthen its direct marketing.To study about PIZZA HUT as a brand in India.To know about the long and successful history of PIZZA HUT.To study the working and functioning of PIZZA HUT in India and theworld.To study the taste and preferences of customers of PIZZA HUT.To study PIZZA HUTS and competitors strategies.To give recommendations and suggestions thereof.SCOPE OF STUDY

The subject matter has been arranged in a Systematic manner,providing all the details and Explanations needed.Every effort has been taken by to make the Project report completein itself.This report has been prepared after an in - depth Study of thecompanys main areas.This report has been divided into sections and sub sections for abetter understanding.

TYPE OF DATA COLLECTED

A) DATA COLLECTION

1) PRIMARY SOURCE

RETAILERS

CONSUMERS

DISTRIBUTORS

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2) SECONDARY SOURCE

WEBSITES

MAGAZINES AND NEWSPAPERS

RESEARCH TACTICS

QUESTIONNAIREPERSONAL DISCUSSION AND INTERVIEWSTATISTICAL AND PRESENTATIONS TOOLS USED

PIE DIAGRAMBAR GRAPHSWOT ANALYSIS

STRENGTHS

It promises to deliver the pizzas in 30 minutes or offers

free pizzas iforder doesnt reach on time, where as its competitorspromise to deliver the pizzas in 39 minutes.

The way in which they do up their ambience, the

atmosphere, the sitting area, the way in which

They greet the customers and the way they sing andmake everyone have fun on occasions.

A contemporary design split level seating, high ceiling

and aestheticpizza hut murals.

Pizza hut was the first to start online pizza delivery in

San Francisco, which still hasnt been started by any ofits competitors.

Variety is the main strength they possess. They offer

pastas, spaghetti, garlic bread etc.

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They are known to modify their menu and ambience

according tooccasions. e.g., they offer heart shaped pizzas onValentines Day.

Pizza hut promotion schemes: DALLAS- national pizza

month, which was first time, celebrated by pizza hut.Their mission statement is UNBEATABLE PIZZAS ATUNBELIEVABLE PRICES.

When you call and order, they focus on cross selling

and up selling i.e.:suggesting new pasta dish to pizza

lovers.

They build a training system that tracks user data and

transfers it via the Internet to document user skill setand needs analysis for any employee that might needimprovement.

They offer 40% more ingredients per pizza than

competitor.

They have managed a perfect indianization of Italian

dishes like chickentikka etc.

WEAKNESSES: Its focus on the delivery concept is not much as compared to its

competitor.

Their variety as far as pastas and spaghetti are concerned arenot much as compared to pizza express and pizza corner.

The prices at pizza hut are comparatively more expensive than

dominos.

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The pizza hut ad aaa she doesnt like pizzas has down rated

theirsalads just to prove their pizzas superior and they have shownthat theirsalads are not good, this is a major weakness in theirAdvertisement.

One of the weaknesses of pizza hut is lack of efficient cold

chains in the country. The company surmounted this problem, byreducing thedependency on cold chains besides setting up its owninfrastructure.

OPPORTUNITIES :The first ad campaign on TV defines pizza hut as a brand and

what it offers to its existing and potential customers. In future,focus will be onother facets of the brand and offerings.

It could start on line delivery in India and other countries like it

hasstarted in the U.S.

It could open more outlets in shopping malls, airports, railway

stations etc.

Mumbai is an important center, which has still not been tapped

by pizzahut. This city has a potential for 30 outlets.

To open an outlet in those areas where the competitors have

opened,like dominos in Agra etc.

THREATS: Amul has come up with a 30 rupees pizza, which is a big

threat to pizza hut at least in the short run if not in the long

run.

Variety in pizza express and pizza corner as far as pastas,

spaghettis etc. are concerned is much much more, and thishas been checked by us by looking at their menu cards.

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Dominos offers CHEESE WALA HUNGER a regular hand

toast pizza for rupees 39.

As mentioned earlier also they have downgraded their

salads whichitself becomes a threat to their salads available.

Pizza corner has a backing of icici venture. It has hired

world-classconsultants to scrutinize its pizzas. They have an equity baseof which icici holds 33%

MARKET SHARE AND SALES FIGUREOF PIZZAHUT AND COMPETITORSMARKET SHARE

The division of YUM! Brands operates the world's #1 pizzachain with more

Than 12,600 outlets in more than 90 countries worldwide.Part of the largestrestaurant chain in the world Over 20,000 franchises around the world Brand leader in the UK Innovative range of pizzas under one roof

Yum! on expansion driveNine years after opening its first outlet in India, Yum!Restaurants is planning add36 outlets this year to the 98 Pizza Huts and six KentuckyFried Chicken KFC)restaurants already operational across India. With this

expansion drive (, Pizza Hutoutlets will spread across 33 cities; while KFC will open inKolkata and Hyderabadafter having opened in Pune recently. Yum! Is also planningto expand intomarkets like Sri Lanka, Mauritius and Bangladesh. At presentthe restaurant chain

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has 20 outlets in Sri Lanka, 15 in Mauritius and has openedthe first one inBangladesh.31

SALES FIGUREKey numbers for fiscal year ending December, 2007:Sales: $26.0M

Pizza Hut is the largest pizza purveyor in the world, with12,583 total restaurantsand combination delivery/takeout units in 90countries; 6,590 units arecompany-owned. Pizza Hut in sales in 1996 generatedapproximately 4.7billion. (Chain STORE GUIDE) Domino's Pizza is the

world leader indelivery, with 5,500 stores in 46 internationalmarkets .Domino's reached 2.8billion in sales in 1996 Papa John's is considered thefastest growing franchise inthe USA, with 1,160 units generating 383 million insales in 1996. StoreGuide.) Of31,386 pizza franchise units in the UnitedStates, roughly 83 percent

(24,381 stores) offer delivery, 91% offer takeout, and51% offer dine-inservice.Each year, thousands of people involved in the pizza industryattend Pizza Expo,the world's largest pizza-only trade show. Pizza Expo is heldeach year in LasVegas, Nevada.32

PROMOTIONAL SCHEMES OFPIZZAHUTPROMOTIONPIZZA HUT USES SEVERAL TYPES OF TECHNIQUES FOR

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ADVERTISING THEIR PRODUCTPizzas- Just a phone call away: An important promotionalstrategy ofPizza Hut is free home delivery of Pizzas. Pizza hut promises

to deliverpizzas in 30 min or offers free pizzas if order doesnt reachon time

DIRECT MARKETING OF PIZZA HUTDirect marketing of Pizza hut is basically done aftercollecting theDatabase, when they have the database then they do thefollowing thingswhich are as follows:

When a database is collected pizza hut does an analysis to

know howoften people in their database call them. Those customerswho areenrolled in the executive category that is who calling themaximumnumber of times in a month are given preference over theothers as faras their incentives and schemes are concerned.38

Pizza hut takes a very special care for their regular andfrequentcustomers by personally giving them a telephone call to tellthem abouttheir new offers.

The customers names, which have been listed in the

database and havenot ordered for a long time, are contacted personally tocheck on the

satisfaction level of the customers. Pizza hut tries to establish an individual relationship with

each of itscustomers.

Pizza hut publicizes its new offerings by putting leaflets in

thenewspaper so that they can reach to their target audience.

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On special occasions like diwali they offer schemes like free

personalpan pizza with an order of a medium pan pizza. On valentinea special

heart shaped pizza is offered.1. Whenever a customers call up pizza hut the employeesfirst ask if theyhave ever ordered the pizza before if not then they ask forcustomerinformation like name, age, address etc2. Pizza hut manages it database very well. They keepverifying their dataagainst the original source by spotting mistakes andcorrecting them39Every Christmas their database cranks out a list of their bestcustomersfor personally signed cards

DELIVERYThe company lays great emphasis of timely deliveryof the products..Progress is reviewed very frequently. Topmanagement takes active

interest in executing orders in time.The research also revealed data that 37% of the people ofAhmadabadprefer Jain meals (Jain food is not only vegetarian but devoidof roots andbulbs like onions, garlic, ginger, potatoes.)Thereforekeeping this in mind,the restaurant will offer a choice of six Jain pizzas, JainFrench bread,

baked fresh with special herbs and a pre-mixed peanutcelery pineapplesalad.Pizza Hut has taken care to make special sauces which donot contain anygarlic or onion.40

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LIMITATIONSIn case of primary source, sometimes it was difficult tocontact or

meet the professionals due to their busy work schedules.The company officials were reluctant to give exact pricingpolicies adopted by them.They were hesitant about giving details about theirmarketing strategiesand money invested in advertisements.Personally contacting the employees was difficult, itinvolvedtime.Online searching for informations or magazines alsowasnt verysatisfactory.Environment is very dynamic; the information collectedfromsecondary sources, though valuable wasnt extremely usefulas themarket undergoes constant changes.52

MARKETING STRATEGIES- 4 PS

Marketing is indeed an ancient art. It has been practiced in one form ortheother since the days of Adam and Eve. Its convergence as amanagementdiscipline, however, is of relatively recent origin. And within thisrelativelyshort period, it has gained a great deal of importance and stature. Infact, today most management thinkers and practitioners of the world,

regardmarketing as the most important of all management functions in eachandevery business.

The marketing strategies adopted by the pizza hut as been highlycompetitive and has enable the company to keep a firm grip on thebattle

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ground and fight competition and retain its market share and profitsthereafter. In the following paragraphs I shall discuss the marketingstrategies adopted by the company at various levels. My findings aredispersed into 4 Ps of marketing mix, i.e.

PRODUCT, PRICE, PLACE AND PROMOTION.

PRODUCT STRATEGY

Pizza hut is a powerful and strong brand that is popular for makingpizzasand appetizers which has been of high standards and is approved byvariousauthorities.The research and development department of the company constantly

rollsout new and sturdy versions of product. It has proved as a backbone tothecompanies strong existence in the market.With the growing global competition, the keyword for industry lieswithin

CUSTOMER SATISFACTION.

A revolutionary twisted crust pizza: - the year 2002 sawpizza hutintroduce a new twisted crust pizza palat ke khao thecatch line says implying that the pizza crust is filled withcheese and tempts the customer to eat its background s.this is a revolutionary concept and is expected to go a longway in increasing the popularity of Pizza hut

CONCLUSION AND RECOMMENDATIONS

From our research we conclude that in order to retain the current customersand increase in customers Pizza Hut has to focus on CUSTOMER

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Satisfaction. This customer satisfaction is only possible if Pizza Hutmaintains its quality and also has control over its prices.We analyzed that the company has adjusted to new entrants into the marketand managed to stay ahead of the competition just because of its consistentgood quality. But it is also concluded that if Pizza Hut does not keep a focuson its quality and prices, it might loose its customers and the market share.

APPENDICE

Dear Customer,

Dear Customer, As a Marketing Researcher for Pizza Hut, we want to thank you for

giving Pizza Hut the opportunity to serve you. Please help us serve you better by

taking a couple of minutes to tell us about the service that you have received so far.

We appreciate your cooperation and want to make sure we meet your expectations.

Kindly fill the following Questionnaire so that we may serve you better.

QUESTIONNAIRE

1. Do you like Fast Food?

Yes

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No

2. How do you rate the following Fast Food restaurants?

Papasallis KFC

Mc Donalds

Pizza Hut

Hot Spot

3. Have you ever visited Pizza Hut?

Yes

No

4. How often do you visit Pizza Hut?

Once in a week or more often

2 to 3 times a month

Once a month

Every 2 to 3 months

2 to 3 times a year

5. Which factors affect your preference while choosing any place forhoteling?

Physical environment

Interior

Service

Food Quality

Price

6. Do you think that Pizza Hut offers enough variety of food?

Yes

No

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7. You visit Pizza Hut as it has a good Brand Image?

Yes

No

8. Do you think Pizza Hut delivers the best food in town?

Yes

No

9. Are you satisfied with the ingredients used in its food items?

Yes No

10.Do you think Pizza Hut is consistent in its food quality whenever yougo?

Yes

No

11.Are you satisfied with the service of Pizza Hut When you dine in?

Yes

No

12.Do you think that the preparation process of food in Pizza Hut ishygienic?

Yes

No

13.Are you satisfied with the prices charged by Pizza Hut?

Yes

No

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14.Are you satisfied with the Home Delivery Service of Pizza Hut thatthe food delivered is of the same quality as when you dine in?

Yes

No

15. If you switch to another fast food restaurant in place of Pizza Hut,the reason would be..

17490662 marketing research pizza hut

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