term paper on pizzahut
TRANSCRIPT
MARKETING PLAN
MARKETING PLAN
Executive Summery
The pizza hut always provides high quality pizza. Pizza hut offering various type of pizza drinks, entertainment facilities. Now we are offering special type of pizza that is vegetable pizza.
Although pizza hut provide high quality food in little time, people may not come to this restaurant, as they don’t have much idea about this type of unique product. There is also a chance of risk, as there are many well-known restaurants in that area as well it is a new product.
We want our customers to be satisfied in all the way possible, and we want all type of customers come to pizza hut, that’s why we are also offering some this kind of product . We are also offering ‘take away’ service, ‘home delivery’ (only to the offices, homes) and also take orders for occasions such as meeting, family gatherings, and parties. We also have gift items for the customers in some occasions like, New Year, New Year (Bengali), Religious Festivals, Wedding, and Birthday with this special product.
Our advertising objective is to inform, to persuade, and to remind the customers about this food item. But our advertising objective is to provide the information to the customer for a longer period.
Table of contents
Page no. Executive summery 1.0 Introduction (Chapter # 1) 1 1.1 Marketing objective 2 1.2 Methodology 3
2.0 Overview situation (Chapter # 2) 4
3.0 Current market situation (Chapter # 3) 5 3.1 Market share 6
4.0 Marketing strategy (Chapter # 4) 7
5.0 SWOT analysis (Chapter # 5) 5.1 Strengths 8 5.2 Weakness 8 5.3 Opportunities 9 5.4 Threats 9
6.0 Pro-forma statement and budget (Chapter # 6) 6.1 Marketing budget 10 6.2 Selling expense 10 6.3 Advertising/ promotion expense 10 6.4 Budgets for promotion in first year 11 6.5 Product cost 11 6.6 Other cost 11 6.7 Pro-forma annual profit and loss statement 12
7.0 Action programs (Chapter # 7) 13
8.0 Conclusions (Chapter # 8) 14
8.1 Bibliography 15
1.0 Introduction
On June 13, 1958 the first Pizza Hut Restaurants opened. By
September it was grossing $700 to $800 a week, by December, over $1,000
a week Pizza Hut restaurants number two and three soon followed.
Franchising began in 1959 when Dick Hassur, Manager of Pizza Hut
Unit No. 3 signed the first Franchise Agreement. For a fee, he would have
the right to use the Pizza Hut name and 'secret' recipes. He also would
receive management assistance from the Carneys.
Pizza Hut Restaurants were patterned for growth. In 14 years (1958-1972)
franchise and company Restaurants numbered 1,000. In the next three years
(1972-1977) they numbered 3,000.
Home delivery is a fast growing segment of the pizza market worldwide, and
Pizza Hut Delivery was developed in 1985 to compete aggressively in this
highly competitive market.
Today, Pizza Hut is the largest pizza chain in the world with more than
12,000 Pizza Hut Restaurants and Delivery Units operating worldwide.
1.1 Marketing objective
It has emerged by keeping some marketing objectives in mind .
The marketing objectives are as follows:
To make an effective marketing plan so that it can draw attention of
the customer and grab a substantial portion of customers in
Bangladesh.
Grow and retain current customers by taking various promotion
activities.
Diversify the service offering to insulate the business against
fluctuations in any one component of the revenue stream.
Build customer loyalty by providing quality foods, excellent
environment and quick service programs.
Maintain a staff of enthusiastic employees excited to serve the
customers.
Build the new product to the point where it becomes a household
name in Bangladesh.
Increase market share in local market segment by 15% in 3rd year.
Reduce marketing costs by 20%over next year.
1.2 Methodology
The study requires a systematic procedure from selection of marketing
planning topic to final report preparation. To perform the study information
sources are to be identified and collected, they are to be classified, analyzed,
interpreted, and presented in a systematic manner and key points are to be
found out. This overall process of methodology is given below in the form
of flow chart we have followed in the planning.
Flow chart of methodology:
Selection of research topic
Identifying information sources
Collection of information
Classification, analysis, interpretation, and presentation of information
Final report preparation
2.0 Over View Situation
Pizza Hut opened its doors to the Bangladeshi market on the 6th of
December, 2003 and ever since then it has been one of the most popular fast
food outlets in Bangladesh.Currently there are three outlets, two in Dhaka
and one in Chittagong.
The outlets in Dhaka are in the posh areas of Dhanmondi and Gulshan.
While the one in Chittagong is situated at GEC Mor.
Another 2/3 outlets are set to start operations soon. All foods served in
the outlets in Bangladesh are halal.
Pizza Hut Bangladesh has an annual all you can eat offer during the
Islamic holy month of Ramadan.
The outlet in Gulshan has 220 seats and at 6000 sq ft. is one of the
largest Pizza Huts on the Indian subcontinent.Pizza hut in bangladesh now
offer pizza in 300 to 1200 range.
Pizza hut now launch new item o f pizza that is the vegetable pizza
which is the totally new concept in fast food with the perspective of
bangladesh. It is clear that any fast food maker organization does not
produce this kind of pizza. It will be given in a moderate price in TK 175.
3.0 Current Market situation
Here data presented on the target market. The size and growth of the market are shown for several past years and by market and geographical segments. Data on customer needs, perceptions, and buying behavior, trends are also presented.
Pizza hut the primary buyers are middle class consumers as like as couple, ages 20 to 35 who want to reasonable price with better pizza but do not want not invest in expensively. They want to buy a better pizza produced by a name they can trust.
In Bangladesh Pizza hut and dominos pizza both are the market leader. Pizza hut approximately cover 36% market share, dominus is same and other
organization covers the rest of the share.
3.1 Market share
Below this graph we have found that pizza hut covering 36% market share, dominus 30%,shawrma 16% and others 18%. So, we can say pizza hut capture large portion of market share.
4.0 Marketing Strategy
Here is the new product development that means Vegetable Pizza’s plan:
Target Market:
Middle class generation most probably age 20 to 35
Positioning:
The best quality and the most reliable food
Product line:
Add one most qualityful but lower prices food
Price:
Price somewhat above competitive quality
Distribution outless:
Its fastast delivery within 30 minutes from order
Sales forces:
Expand by 10 percent and introduce a new product in our country
Service:
Quickly and widely available food
Sales promotion:
Develop a new product that support the positioning strategy
5.0 SWOT Analysis
5.1 Strength
Despite of competition pizza hut has numerous strength.
1. This type of pizza is first for Bangladeshi middle class people.
2. At first we ca say that we find this product with reasonable price.
3. Middle class generation easily take this product.
4. It is also very attractable for vegetarian.
5. Quick home delivery
5.2 Weakness
In this product have many weakness.
1. May people doesn’t like only vegetable pizza.
2. Taste will be not high quality able.
3. Though it has less price people will think it is high price.
5.3 Opportunities
The main opportunities facing pizza hut line are as follows:
1. Consumers are showing interest more in pizza hut
2. Pizza hut will get more popularity and many people will go here.
5.4 Threats
The main threats of pizza hut are as follows:
The main threats of pizza hut is their competitor,
Dominus pizza,
Shawarma restaurant and
Others restaurant.
6.0 Pro-forma financial statements and budgets
6.1 Marketing budgets
The marketing management budget consists of selling expenses, advertising
and other promotion expenses, product cost and other costs. The overall
marketing budget of new product on the 1st year of operation is 3600000
taka. The various parts of marketing budgets are described below:
6.2 Selling expense:
The selling expenses of new product include the direct production costs,
transportation costs, and other variable costs. It has estimated selling cost of
3600000 taka in the 1st year of business.
6.3 Advertising/promotion expense:
New product will take massive promotion activities in the 1st year of
operation. The total estimated promotion budget for the 1st year is 3600000
taka. Among this money 100000 will be used to give discounts to customers
on various occasions. The management will also spend 100,000 taka to
present customers with some gifts. The rest of the money will be used for
advertising on television, newspapers, flyers, banners, etc. to attract more
customers.
6.4 Budgets for promotion in 1st year:
Promotion Items 1st year
Discounts 100000
Gifts 100,000
Other Promotions 50,000
Total Budgets 2,50,000
6.5 Product cost:
The product cost consists of production costs and storage costs. The
organization will store various vegetables on the store room. It has estimated
a storage cost of 1, 20,000 taka in the 1st year.
6.6 Others cost:
Management has some miscellaneous costs. The total anticipated amount is
120000 taka.
6.7 Pro forma annual profit and loss statement (1st year)
The pro-forma annual profit and loss statement of new product for 1st year is
given below:
Pro Forma Income Statement for 1st year:
2008
Sales 6300000
Gross profit 2700000
Operating expenses
Rent 100000
Salaries and wages 150000
Depreciation and
other cost
590000
Total operating
expenses
740000
Profit before taxes 1960000
Taxes (15%) 294000
Net profit 16,66,000
7.0 Action Programs
Before and after lunching our vegetable pizza we will make an
excellent marketing campaign and monitor our competitor’s
activities.
Here is how we will carry out its marketing strategy according to
month by month, so that everything would be under our control.
In March, We will lunch our vegetable pizza firstly in Dhaka,
Chittagong, all out let. Promotion director has the responsibility
over the position. He will handle this project at a planned cost of
tk.3600000
8.0 Conclusion
It is known to all pizza hut always provides high quality type
pizza and it is the largest pizza producer company from the beginning of the
company.
Pizza hut main goal is to achieve a better and reasonable market
share and profitability in the cosmetics market. We create a new product
plan for increasing market share. Our competitor is Dominus, Shawrma and
others every competitor offers various products in different segment for
increasing market share but they do not produce this kind of product.
Middle class younger, coupe or vegetarian is our target surely we
will ahead from our competitors by this unique product.
8.1 Bibliography
1. “Marketing Management” millennium and eleventh edition by Philip Kotler.
2. a. www.pizzahut.comb. www. pizzahutbd.com