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Pizza HutRetail MarketingApplications

RetailingThe business activity that involved in selling goods or services directly to final consumers mostly for their personal use

Retailer :

A business whose sales come primarily from retailing

Selected Retailer :

Pizza Hut

* Restaurant Industry* World largest American Restaurant Chain* Franchise Organization

6000 Restaurants in US5139 store locations in 94 countries

Pizza Hut - Self Selection Retailer

Customers can select the item With the assistance of the employees

- Availability- Price

Competitors: Dominos, Pizza & Pasta

Segmentation

• Pizza hut has used certain demographic factors. Such as,Age – ex : children, teenagers, adults. Family size – : family is having children, college students,

young professionals. Income – : low income, middle income and high income

families.

• And also psychological factors such as lifestyle of the market. Ex : whether the customers are having busy life style or

not.

Target markets

• They are targeting the following market segments.Males and females 18 to 55 Families with young children, college students, and young

professionalsMiddle and high income familiesConsumers with busy lifestyles are more likely to be heavy

users of quick service products

Positioning

• Steps in positioningIdentify possible differences/ competitive

advantage of Pizza Hut.Choosing right differences of Pizza HutCommunicate and delivering chosen competitive

advantage

Differentiation• Step 1 - Identify possible differences/ competitive

advantage to Pizza Hutproduct and services differentiationlevel of services/ channel differentiation

• Step 2 - Choosing right differences of Pizza Hut Product differentiation is very easy to differentiate by using product

attributes of Pizza Hut because competitors are not offering same product with a same quality.

Other competitors are doing services same as Pizza Hut like home delivery and help to customers to select a suitable products for their requirements.

Therefore product attribute (Hot Pizza) is a main consideration to position the Pizza huts’ products in the target consumers mind.

• Step 3 - Communicate and delivering chosen competitive advantage

Marketing mix

• Product Product Positioning of Pizza Hut - Pizza Hut has always

followed “Single brand positioning” called “PIZZAS”.

Product Scope of Pizza Hut - Pizza Hut follows a “multiple product strategy” as pizza hut not only sell pizzas, but also deals in a variety of other product. Such as appetizers, beverages, desserts, pasta

Product Design of Pizza Hut - Pizza Hut follows the strategy of selling standardized products with modifications. Pizza Hut mainly sells 4 types of pizzas with 3 sizes, namely small, Regular and Large. Those are Pan Pizzas, Stuffed Crust Pizzas, Sausage Crust Pizzas, Thin Crust Pizzas

• Price Pizza Hut follows “A High/Low Pricing”(“Price Skimming”)

strategy as far as its new product are concerned where it fixes the price higher than its competitors and then gradually lowers the price below the competitor’s prices.

The high/low pricing strategy has several advantages for Pizza Hut.Used to create excitement Set high price initially to send a signal that its products are best in

quality and service offered in excellent.Helps in segmenting the market as Pizza Hut can sell “the extreme

pizza” to the customers who wish to pay higher price as well as to the bargain hunters too.

Sometimes in face of competition either from pizza players or from its substitutes, Pizza Hut has also reduced price by maintaining the same level of customer service and quality.

Consumer promotions

Advertising•Television•Radio•News papers•Internet

Internet selling and tele selling

Direct marketing

Locations

Thank you !