pizza hut marketing research project

Submitted By:

Affan ManzoorAyyaz TanveerHussain Iftikhar

MBA II, Sec A

M. A. HananMir Arooj HasanRaja Shakir Khan

Sarah Zaheer Syed

AT LAUNCH• Pizza hut was launched in Pakistan in Karachi with

several outlets• Later, they expanded to Lahore and Islamabad, and

then slowly spread to other major cities in the country1992

• SEC AMarket Segment

• Quality food chain which provides the best value for money to its customers Image

• Sole pizza franchise in the country• Dominated the market nationally• Market leader Competition

TODAY

Competition

Internationally acclaimed fast food

chains like KFC, McDonalds and

Subway

Direct competitor and international pizza restaurant chain-Dominos

Local fast food chains

Distribution

44 branches in Pakistan

Plans to reach the target of 88

branches within next 5 years

Special home-delivery and take

away centers (HDCs) have been set-up

across Lahore and Karachi

Modes of service

Dine-In

Take Away

Home Delivery

SCENARIOChanging consumer preferences

Customized menu to incorporate local flavors

Tap into a bigger market segment

Customer inflow shifted from SEC A to SEC B

Competitive long-term strategy - shift focus from SEC A to SEC B

SCENARIOPizza Hut is experiencing above average growth and plans on expanding its operations 2-fold

Revenue

Dine-in Sales60%

Home Delivery

40%

The home delivery

segment was more a premium

facility

Opportunity to develop and capitalize on this rapidly emerging segment

Understand the true market

potential of this segment

Mr. Rasikh Ismail (DCOO Pizza Hut)

“The management, at present, believes that the initial shift observed in the dine-in segment from SEC A to SEC B has not resulted in lapsed users of SEC A as was previously assumed, but was rather the function of a trend shift in the consumer

preferences of SEC A from dine in to home delivery”.

•Has SEC A fallen into lapsed users or has a shift in trends occurred causing SEC A to move from dine-in to delivery?

Marketing Problem

•What measures and modifications can be administered (mainly menu) to capitalize on the opportunity that a high SEC A concentration in the delivery segment has presented?

Business Decision

•Identify the prevalent and/or changing consumer preferences, tastes and trends of the SEC A consumer segment (pertaining to fast food category).

Research Problem

Research Objectives

Primary• Determine whether

SEC A has indeed shifted preferences from the dine-in to the home delivery segment

Secondary• Identify key fast food

consumption patterns of SEC A• Check price sensitivity of the

SEC A consumer segment with respect to home delivery

• Gauge Pizza Hut’s brand perception among SEC A)

Research Methodology

Exploratory Research Phase•Develop a deeper understanding of the research topic and industry for our research team•Understand consumers tastes, preferences, consideration factors•Develop a hypothesis•Identify important variables

Descriptive Research Phase

•Test variables identified in the exploratory phase •Get quantifiable responses•Test Hypothesis

Exploratory Research Design

Literature Survey(Secondary Data)

• Serve as a good starting point for our research • Lifestyle and social magazines, newspapers and online resources

Focus Group Discussions (Primary Data)

• Information sought is not very personal to individuals, can be easily shared and entails no technical details for which an expert may be required• It is cost effective• It is time effective• Enables us to receive various point of views at the same time, encourage interesting discussion and help us extract a bundle of information• 8 respondents• 3 FGD’s – Approx. 1.5 hours each

Exploratory Research Design

• Education and Occupation

• User• Lapsed User• Non-user

• Males (50%)• Females

(50%)

• 13-19 years• 20-25 years• 26-35 years

SEC AUser

Status

GenderAge

Groups

Selection Criteria

Discussion Guide OutlineConsumption

Habits

Consumption Preferences

Consideration factors (where

to dine-out)

Consideration factors (what to order)

Brand Preferences

Decision Making Process (Dining-out & home delivery)

Brand image of Pizza Hut vis-à-vis

its competitorsCustomer

Satisfaction

Competitors of Pizza Hut

Restaurants/Fast food joints considered

Avg. expenditure

Occasions vs.

spontaneous decisions

Price Sensitivity

Descriptive Research Design

Sample

SEC A

Users and Lapsed Users

Age Bracket (13-50)

Males and females

• Cross-sectional study (Gathering primary data)•Screener questions based on sample specifications•Self administered questionnaires

Exploratory Research Findings

Qualitative Research Findings

Variables 13 – 19 Years 20 – 25 Years 26 – 35 Years

General Food Category Likes

Fast food and ‘handy’ food with friends

Desi Food with family

Fast food (pizza and burgers)

Desi food

Fast Food Continental Food Good

understanding of why it is called fast food and the purpose it serves

What to eat depends on:

Mood Budget (some

cuisines are considered expensive)

Money Distance or

accessibility

Mood depends upon whether you are dinning out with friends or with family

Which restaurant to order from depends on:

Budget Food category

(mood) Consultation with

friends Time taken for

delivery Delivery Charges Quality of food

Budget Location Consulting with

friends

Mood Quality Time taken for

delivery



Restaurants for home delivery (friends):

KFC Mc Donald’s Hot ‘n’ Spicy Gino’s

Any restaurant with good ‘paratha rolls’

Hot ‘n’ spicy Hardees

Wasabi Pizza Hut McDonaldsGinosPizza and Pasta Pizza TimeHot n SpicyRed Apple

Restaurants for home Delivery (family):

Desi Food Joints BBQ Joints Parents choices

kept in minds

Pizza hut Nando’s Hot and spicy

Salt n PepperHot n SpicyBBQ (mutual ConsensusIs done among the family before ordering for family)

Consideration Factors for Eating out with friends:

Comfort Decent Crowd

(for girls only) Hip Place Lively

Environment

Hip crowd Lively “fun”

environment Emphasis is

more on the experience

Decent place

Comfort Decent Crowd Ambience



What to eat depends on:

Mood Budget (some

cuisines are considered expensive)

Money Distance or

accessibility

Mood depends upon whether you are dinning out with friends or with family

Which restaurant to order from depends on:

Budget Food category

(mood) Consultation with

friends Time taken for

delivery Delivery Charges Quality of food

Budget Location Consulting with

friends

Mood Quality Time taken for

delivery

Restaurants for home delivery (friends):

KFC Mc Donald’s Hot ‘n’ Spicy Gino’s

Any restaurant with good ‘paratha rolls’

Hot ‘n’ spicy Hardees

Wasabi Pizza Hut McDonalds Ginos Pizza and Pasta Pizza Time Hot n Spicy Red Apple



Restaurants for home Delivery (family):

Desi Food Joints BBQ Joints Parents choices

kept in minds

Pizza hut Nando’s Hot and spicy

Salt n Pepper Hot n Spicy BBQ (mutual ConsensusIs done among the

family before ordering for family)

Consideration Factors for Eating out with friends:

Comfort Decent Crowd

(for girls only) Hip Place Lively

Environment

Hip crowd Lively “fun”

environment Emphasis is

more on the experience

Decent place

Comfort Decent Crowd Ambience

Consideration Factors for Eating out with family:

Formal Restaurant

Decent Crowd Lively

Environment

Formal environment

Calm, and clear and a clean experience

Quality food and service

Formal Decent Family

comforting environment

Place that can offer variety of food



Restaurants for dining - out with family:

DHA Club YUM Freddy’s Café Gourmet Grill

Freddy’s Aylanto Nando’s Restaurants on

M.M Alam road

Pearl Continental

Defense Club Tabaq BBQ Dynasty

Restaurants for dining - out with friends:

Hot and spicy Espresso Cosa Nostra

Cosa NostraAylantoNandosEspressoArizona GrillFreedy’sEnglish Tea HouseZouk

Home delivery frequency:

15 – 20 times/month with friends and for self

15-20 times a month ( with friends and family)

3-4 times a week



Eating-out frequency:

10 – 15 times/ month for guys

5 – 10 times/ month for girls

3 – 4 times/ month with family for both genders

3-4 times a month

Others order regularly (daily)

Once a week, hence 3-4 times a month.

Home Delivery Occasions:

Spontaneous Mood Don’t like what is

cooked at home Did not get

permission to go out

Spontaneous Mood Don’t like what is

cooked at home

Spontaneous Mood

Timing of eating-out:

Any time with friends for guys

Mostly Breakfast/ Lunch with friends for girls

Any time with family for both genders

When out with friends

When they get time off from college or after classes

With family

Most of the time its dinner with family

Lunch is more a friends and colleagues thing



Average pocket money

Rs. 4000/month to Rs. 6000/month

Did not give a definitive answer but spend about RS (300-400) daily

Self Earning

Paying for home deliveries and dining-out by:

Paid by self through pocket money for home deliveries and eating-out

Paid through pocket money

Paid by self

Avg. Expenditure per head (eating out):

Rs. 500 – 700

Rs 700-1000 Rs 1000 maximum

limit

Rs.1150 (Rs.1500 – 900)



Avg. Expenditure per head (home delivery):

Rs 300 – 350 Rs 300-500 Maximum Rs 500

Rs.400 – 700

Ideal Restaurant should have:

Great setting and ambience

Good Taste Economical

(especially for guys) Location should be

close by (especially for guys)

Decent crowd (especially for girls)

AmbianceQuality FoodServiceEconomicalLocation

Ambience Quality of the

food Healthy

ingredients

Qualitatuve Research Findings


Pizza Hut Specific Opinion:

The first thing that comes to mind for almost all teenagers when they hear the word ‘pizza’ is Pizza Hut.

‘Pizza Hut se dil bhar gaya hai’

Would not go there even if they change the menu

Order the same pizza whenever they go to Pizza Hut

Thin crust is preferred but Pizza Hut’s thin crust is too thin and too hard; thick crust is too thick and gives a feel like they are eating a ‘naan’

Perceive pizza hut as an old man who is past his prime and about to die.

Already very expensive

Deteriorating quality.

Oily pizza’s Have less cheese

and are “doughy”

Gino’s,Pizza Hut and Pizza Time are the places that comes to their mind when asked about pizza.

Pizza Hut is not a top notch pizza provider in the town.

Dough is very heavy, pizza is very oily, cheese concentration has decreased and the amount of topping also reduced



Restaurants Considered for Pizza

Gino’s Pizza Time Pizza Hut Kings and Queens Domino’s

Gino’s Pizza time Pizza and pasta Domino’s

Gino’s Pizza Time Pizza Hut Kings and Queens Domino’s Pizza and Pasta

Reasons for not going to Pizza Hut:

Crowd stares (aunties, uncles and other families give judgmental looks)

Too much of family crowd

‘Backward’ crowd Will ONLY go with

friends, NEVER with family

Oily and fattening pizza (for girls)

Do not provide value for money

Have more substitutes

Deteriorating quality

Too many flavors Rectangular

pizza

Crowd is “cheap” females find it

unpleasant over there

Pizza Hut is all boys place

Their service is not consistent as there are many delivery issues regarding the order and timing

Avg. Expenditure for Eating out at Pizza Hut:

Rs. 350 – 450 per head RS 400 - 500



Average Expenditure of Home Delivery of Pizza Hut:

Rs. 250 – 300 per head

Rs 400 - 600

Marginal price hike vs. Eliminating deals perception:

If there is a marginal price hike, for example of Rs. 100, this age group would still order Pizza Hut home delivery

If deals are discontinued then majority of this age group would stop ordering Pizza Hut home delivery

Price increase dosen’t matter unless the quality is good and deals are considered very important



Preferred Medium of communication:

Facebook (most preferred)

Pamphlets Billboards TVC’s Texts are

considered IRRITATING

No one visits the websites for deals and promotions

Texts Facebook Billboards

Facebook Magazines TVCs

Survey QuestionnairePreferred

Food Category

Dine-out vs. home

delivery

Frequency of purchase

Price sensitivity

Brand preference

Consideration set

Customer satisfaction

Top of mind recall

Meal Deals

Average Expenditure

Consideration factors

(purchase)

Promotion

Descriptive Research Findings

Gender Segmentation

Dining Preference

Dining out Home Delivery Both

Male 56.7% 9.0% 34.3%

Female 38.8% 13.8% 47.5%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%56.7%

9.0%

34.3%

38.8%

13.8%

47.5%

•Majority of the males prefer Dining out•Females opt for Home delivery rather than dining out

Importance of Meal Deals

Dining Out Home Delivery Both

Male 19.4% 35.8% 44.8%

Female 16.3% 53.8% 30.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

19.4%

35.8%

44.8%

16.3%

53.8%

30.0%

•Females go for Home Delivery deals more than Males•Females also go for Meal Deals when dining out•Males prefer both Dine in and Home delivery meal deals

Frequency of Home Delivery

Less than 4 times in a month

5 - 10 times 11 - 15 times 16 - 20 times 21 or more times

Male 39.7% 35.3% 16.2% 2.9% 5.9%

Female 45.0% 32.5% 12.5% 5.0% 5.0%

2.5%

7.5%

12.5%

17.5%

22.5%

27.5%

32.5%

37.5%

42.5%

47.5%

39.7%

35.3%

16.2%

2.9%5.9%

45.0%

32.5%

12.5%

5.0% 5.0%

The General trend here suggests that the frequency of ordering for Males is more than Females in a month.

Reasons for Home Delivery

Spontaneous mood Don’t like what is cooked at home

Friends / family gathering at home

I can’t go out (no driver, permission

problems etc.)

Male 41.2% 32.4% 17.6% 2.9%

Female 57.5% 31.3% 3.8% 5.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

41.2%

32.4%

17.6%

2.9%

57.5%

31.3%

3.8% 5.0%

Females tend to order home delivery in spontaneous mood, where as males tend to order more when they don’t like food cooked at home and when guests are over

Importance of Factors Affecting Home Delivery Choices

Price Quality of Food

Variety of Menu

Speed of Delivery

Freshness (Hot) of

food

Delivery Timings

Deals Of-fered

Male 63.2% 94.1% 60.3% 85.3% 83.8% 85.3% 70.6%

Female 60.0% 86.3% 66.3% 86.3% 85.0% 86.3% 76.3%

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%

63.2%

94.1%

60.3%

85.3% 83.8% 85.3%

70.6%60.0%

86.3%

66.3%

86.3% 85.0% 86.3%

76.3%

For most of the respondents Quality of food is the most important criteria when ordering Home Delivery, second speed of delivery is kept in mind when ordering Home Delivery

Preferred Joint for Pizza

Pizza Hut Pizza Time Kings & Queens

Pizza and Pasta

Domino's Gino's

Male 52.2% 11.7% 6.7% 8.3% .0% 20.3%

Female 64.9% 10.1% 8.5% 2.8% 4.2% 13.9%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

52.2%

11.7%6.7%

8.3%

0%

20.3%

64.9%

10.1% 8.5%2.8% 4.2%

13.9%

Males and Females prefer Pizza Hut the most as a preferred joint to dine in, but females prefer more dine in than males

Dining In vs. Home Delivery Preference for Pizza Hut


Male 44.1% 19.1% 36.8%

Female 53.8% 21.3% 23.8%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

44.1%

19.1%

36.8%

53.8%

21.3%23.8%

Axis Title

For most Dinning out is prefer than home delivery, but females prefer more than males to dine out

Ala Carte Vs. Delivery Deals

Ala Carte Menu Special home delivery deals

Male 17.2% 75.0%

Female 29.2% 67.7%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

17.2%

75.0%

29.2%

67.7%

Both Males and Females prefer deals as opposed to Ala Carte when ordering in

Home Delivery Avg. Expenditure/person

200 or less 200 to 500 500 to 800 800 or 1000 .1000 or more

Male .0% 12.5% 54.7% 6.3% 26.6%

Female 3.1% 27.7% 20.0% 16.9% 32.3%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

.0%

12.5%

54.7%

6.3%

26.6%

3.1%

27.7%

20.0%16.9%

32.3%

For Most of the males the budget is Rs.500- Rs 600, For most of the females the budget is Rs. 1000 or more when ordering in.

Satisfaction with Pizza Hut Home Delivery Service

Speed of Delivery Freshness (Hot) of food

Delivery Timings Deals Offered

Male 78.1% 64.1% 71.9% 71.9%

Female 63.5% 66.7% 63.5% 50.0%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0% 78.1%

64.1%71.9% 71.9%

63.5% 66.7% 63.5%

50.0%

Majority of the males are satisfied with the speed of delivery, majority of the females are satisfied with the freshness of the food when ordering in, But majority of the females are less satisfied with the deals being offered for ordering in

If Deals Were Eliminated:

Continue to order from Pizza Hut Discontinue to order from Pizza Hut

Male 69.2% 30.8%

Female 71.2% 28.8%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0% 69.2%

30.8%

71.2%

28.8%

Majority of the respondents will still order from Pizza Hut if the deals were eliminated, But males would probably discontinue more than females if deals were discontinued

User & Lapsed User

Dining Preference

Dining out Home Delivery Both

User 48.1% 11.7% 40.3%

Lapsed User 45.1% 14.1% 40.8%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%48.1%

11.7%

40.3%45.1%

14.1%

40.8%

There is no apparent difference between preferences users and lapsed user when it comes to dining preference, most prefer to dine out

Importance of Meal Deals


User 24.4% 42.3% 33.3%

Lapsed User 10.0% 47.1% 42.9%

2.5%

7.5%

12.5%

17.5%

22.5%

27.5%

32.5%

37.5%

42.5%

47.5%

24.4%

42.3%

33.3%

10.0%

47.1%42.9%

Majority of the users dine out, while majority of the lapsed users order home delivery, for both users and lapsed users majority of the lapsed users meal deals are important when dining out and when ordering in

Frequency of Home Delivery

Less than 4 times in a

month

5 - 10 times 11 - 15 times 16 - 20 times 21 or more times

User 35.9% 37.2% 15.4% 3.8% 7.7%

Lapsed User

47.9% 32.4% 12.7% 4.2% 2.8%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

35.9% 37.2%

15.4%

3.8%7.7%

47.9%

32.4%

12.7%

4.2% 2.8%

Lapsed users have ordered in the least as compared to users in the last month, Users order in more frequently as compared to lapsed users in the month

Reasons for Home Delivery

Spontaneous mood

Don’t like what is cooked at home

Friends / family gathering at home

I can’t go out (no driver, permission

problems etc.)

User 46.2% 39.7% 3.8% 5.1%

Lapsed User 54.9% 22.5% 16.9% 2.8%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%46.2%

39.7%

3.8% 5.1%

54.9%

22.5%16.9%

2.8%

The main reason for ordering in for users is that they don’t like what's cooked at home, where as for lapsed users it depends on their mood when ordering in

Importance of Factors Affecting Home Delivery Choices

Price Quality of Food

Variety of Menu

Speed of Delivery

Freshness (Hot) of

food

Delivery Timings

Deals Of-fered

User 53.8% 88.5% 61.5% 93.6% 83.3% 89.7% 75.6%

Lapsed User

70.4% 91.5% 66.2% 77.5% 85.9% 81.7% 71.8%

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%

53.8%

88.5%

61.5%

93.6%83.3%

89.7%75.6%

70.4%

91.5%

66.2%77.5%

85.9%81.7%

71.8%

The main factors relevant for ordering in for users are, speed of delivery and quality of food, where as for lapsed users quality of food and freshness are of utmost importance

Preferred Joint for Pizza

Pizza Hut Pizza Time Kings & Queens

Pizza and Pasta

Domino's Gino's

User 75.0% 4.6% 7.6% 7.5% .0% 7.2%

Lapsed User 41.8% 15.9% 7.8% 3.0% 4.7% 27.3%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%75.0%

4.6% 7.6% 7.5%.0%

7.2%

41.8%

15.9%

7.8%3.0% 4.7%

27.3%

For both users and lapsed users the most preferred Pizza joint is Pizza Hut

Dining In vs. Home Delivery Preference for Pizza Hut


User 43.6% 16.7% 38.5%

Lapsed User 53.5% 26.8% 19.7%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

43.6%

16.7%

38.5%

53.5%

26.8%

19.7%

Majority of the Lapsed users prefer to dine out as well as opt for home delivery where as, majority of the users preferred to dine out and order in

Ala Carte Vs. Delivery Deals

Ala Carte Menu Special home delivery deals

User 18.3% 76.1%

Lapsed Used 28.8% 66.1%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

95.0%

18.3%

76.1%

28.8%

66.1%

Most of the Users prefer special deals for home delivery.

Home Delivery Avg. Expenditure/person

200 or less 200 to 500 500 to 800 800 or 1000 .1000 or more

User 2.8% 21.1% 25.4% 11.3% 39.4%

Lapsed User .0% 18.6% 49.2% 11.9% 20.3%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

2.8%

21.1%25.4%

11.3%

39.4%

.0%

18.6%

49.2%

11.9%

20.3%

For majority of the users the average expenditure per person is more than Rs 1000, where as for lapsed users the average expenditure ranges betweeen Rs. 500-800

Satisfaction with Pizza Hut Home Delivery Service

Speed of Delivery Freshness (Hot) of food

Delivery Timings Deals Offered

User 69.0% 69.0% 64.8% 60.0%

Lapsed User 70.2% 57.9% 68.4% 59.6%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0% 69.0% 69.0%64.8%

60.0%

70.2%

57.9%

68.4%

59.6%

For Users the speed of delivery and the freshness of food are the two most important factors where as for lapsed users speed of delivery and delivery timings are the most important factors

If Deals Were Eliminated:

Continue to order from Pizza Hut

Discontinue to order from Pizza Hut

User 66.7% 33.3%

Lapsed user 71.7% 28.3%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%66.7%

33.3%

71.7%

28.3%

Majority of the users would discontinue to order from Pizza Hut if deals were eliminated and most of the lapsed users would continue to order from Pizza Hut as deals are not so important for them.

pizza hut marketing research project

Marketing

country sec

consumer preferences

high sec

causing sec

yearsfast food pizza

lapsed users of sec

handy food

fast food category