THE PIZZA HUT STORYTHE PIZZA HUT STORY

MARKETING RESEARCH

Final Project

SUBMITTED TO:

Ms. Hajra Waheed

SUBMITTED BY:

Nida GulKiran Sahar

SUBMITTED ON:

12-01-09

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LETTER OF TRANSMITTAL

We enjoyed doing this project as it gave us a great experience and more exposure to the MARKETING WORLD. We came across different people having different kinds of experiences 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 mainly included the time constraint and the non- cooperation of people. Still we found it very interesting and are thankful to our respected teacher who gave us the opportunity and moral support to conduct this research.

TABLE OF CONTENTS

List of Charts………………………….5

List of Appendices…………………….6

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Executive Summary…………………...7

Introduction…………………………....8

Problem Definition……………………10

Literature Review……………………..11

Research Design………………………11

Information Needs…………………….12

Data Analysis………………………….13

Results…………………………………14

Limitations…………………………….22

Conclusion And Recommendations…...23

Appendice……………………………...24

LIST OF CHARTS

Figure 1.1…………………………………………14

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Figure 1.2…………………………………………14

Figure 1.3…………………………………………15

Figure 1.4…………………………………………15

Figure 1.5…………………………………………16

Figure 1.6…………………………………………16

Figure 1.7…………………………………………17

Figure 1.8…………………………………………17

Figure 1.9…………………………………………18

Figure 1.10………………………………………..18

Figure 1.11………………………………………..19

Figure 1.12………………………………………..19

Figure 1.13………………………………………..20

Figure 1.14………………………………………..20

Figure 1.15………………………………………..21

LIST OF APPENDICEs

Questionnaire………………………………………25

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EXECUTIVE SUMMARY

The research report includes our research about Pizza Hut to analyze the most important element for its profitability. In this research we conducted a customer analysis in which we asked the customers their preferences for going to any fast food restaurant. We also asked them about their experiences in Pizza Hut, every time they visit there. This helped us making a broad perception about the future sales and profitability of Pizza Hut and what 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 9 different cities of Pakistan that include:

Rawalpindi

Islamabad

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Peshawar

Lahore

Faisalabad

Sialkot

Multan

Hyderabad

Karachi

Pizza hut has been a renowned restaurant since 1958. it has maintained its quality and goodwill since then. It has also been awarded as the best restaurant 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 unit opened in Topeka, Kansa.In 1964 The basic freestanding design of Pizza Hut was adopted. In 1966 Pizza Hut’s first Home Office was built in Wichita, Kansas to handle the business of now 145 Pizza Restaurants.In 1967 Nine- inch tall Pizza Pete dolls became available at all Pizza Huts restaurants.In 1969, the familiar top roof was adopted for Pizza Huts restaurants.In 1971, Pizza Hut became the number one Pizza restaurant chain in the world in both sales and number of restaurants. In 1972, Pizza Hut Inc. was listed on the New York Stock Exchange under the symbol PIZ, and restaurant number 1000 opened in Wichita,

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Kansas. Pizza Huts goes International as a restaurant opened in Costa Risa. In 1976, The 100th International Pizza restaurant opened in Australia while the entire number reaches 2000 restaurants. In 1977, Pizza Hut Stakeholders merged with Pepsi Co. In 1983, Pizza Hut celebrated its 25th Anniversary. In 1986, Pizza Huts started its Home Delivery service. In 1995, Pizza Hut launched its Stuffed Crust Pizza, which immediately set company’s sales records. In 2007, Pizza Hut offered online ordering at all of their 65,000 locations. In 2008, Pizza Hut introduced Total Mobile Access- the ability for customers to 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:

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Pizza Hut has always been successful in delivering the best fast- food. It has gained many customers throughout the world and has always been working on customer- retention. This research is conducted as Pizza Hut wants to know the preferences of their current valued customers so that they can serve them in a more satisfactory way and improve their overall performance.

LITERATURE REVIEW

It was a pioneer research that we conducted and there was no secondary research available.

RESEARCH DESIGN

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The research we conducted is descriptive as well as theoretical in nature.

INFORMATION NEEDS

Data collection:There was no secondary data available in this context for Pizza Hut. We collected primary data from people.

Scaling Technique:We used the non-comparitive scaling technique in our questionnaires.

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Questionnaire Development:While developing the questionnaire, we focused mainly on questions that showed the preference of the fast-food customers with respect to food quality, price, environment, services, etc. and could give us a clear impact of the most preferred element.

Pre- testing:In pre-testing we got the questionnaires filled by 10 people from within our population. There was no problem faced by the population and they found the questionnaire easy to understand and 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 Judgmental Sampling.

Field Work:We were two people to get the questionnaires filled. We got them filled within the premises of Fatimah Jinnah Women University.

DATA ANALYSIS

Population:The population for our research were all the students of Fatimah Jinnah University.

Sample:

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We took sample size of 20 students.

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

RESULTS

The results of all questions individually are as follows:

Question 1:

13

fig:1.1

yes: 20no: 0

Question 2:

fig:1.2Above 3: 133 and below: 7

Question 3:

14

fig:1.3

yes:20no:0

Question 4:

fig:1.4 Within 3 months: 14 3 months or more: 6

Question 5:

15

fig:1.5Quality: 12Others: 8

Question 6:

fig:1.6 Yes: 14No: 6

Question 7:

16

fig: 1.7Yes: 17No: 3

Question 8:

fig:1.8yes: 10no: 10

Question 9:

17

fig: 1.9yes: 19no: 1

Question 10:

fig:1.10yes: 11no:6

Question 11:

18

fig:1.11yes: 16no: 4

Question 12:

fig:1.12yes:13no:7

Question 13:

19

fig:1.13yes: 11no: 9

Question 14:

fig:1.14yes: 10no: 10

Question 15:

20

fig:1.15

Food quality: 11

Price: 3

Null: 3

Variety/ Change: 2

Service: 1

After a detailed analysis of all the results we conclude that QUALITY is most preferred by the customers. Pizza Hut has retained its customers because of its consistent quality but if the quality decreases, this will directly influence the customers and they might switch to any other fast food restaurant. Thus, quality has a direct impact over the customers and ultimately the sales of Pizza Hut. Thus, the hypothesis statement has been proved right.

LIMITATIONS

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There were certain limitations that we faced while doing this project. These limitations include

The limited time Limited budget Resistance of people to fill the questionnaires To gather Adequate information about Pizza Hut from its management

CONCLUSION AND RECOMMENDATIONS

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From our research we conclude that in order to retain the current customers and increase in customers Pizza Hut has to focus on CUSTOMER Satisfaction. This customer satisfaction is only possible if Pizza Hut maintains its quality and also has control over its prices.We analyzed that the company has adjusted to new entrants into the market and managed to stay ahead of the competition just because of its consistent good quality. But it is also concluded that if Pizza Hut does not keep a focus on its quality and prices, it might loose its customers and the market share.

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APPENDICE

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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 No

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

Papasallis KFC Mc Donald’s 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 for hoteling?

Physical environment Interior Service Food Quality Price

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

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Yes No

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 you go?

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 is hygienic?

Yes No

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

Yes No

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

Yes No

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

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