Research Title:

The Impact of Internet Marketing on Business performance- a case study of Pizza Hut Restaurant,London

Table of contents

CONTENTS PAGE NO.CHAPTER-1 INTRODUCTION 031.1BACKGROUND OF RESEARCH 031.2PURPOSE OF THE RESEARCH 031.3AIM & OBJECTIVES OF THE PROPOSED RESEARCH 031.4RESEARCH QUESTIONS 04

1.5RATIONALE BEHIND THE CHOSENRESEARCH TOPIC 04

1.6BACKGROUND OF THE CASE COMPANY 04CHAPTER -2LITERATURE REVIEW 052.1INTRODUCTION 052.2INTERNET MARKETING 052.3 STRATEGIES OF THE MARKETING AS WELL AS THE INTERNET: 052.4 IMPACT OF INTERNET MARKETING ON BUSINESSES 072.5 SUMMARY 09CHAPTER -3 RESEARCH METHODOLOGY 103.1 OVERVIEW 103.2 RESEARCH APPRAOCH 103.3 RESEARCH METHOD 10 3.4 RESEARCH STRATEGY 103.5 CASE SELECTION 113.6 DATA COLLECTION METHODS AND TOOLS 113.7 SAMPLING TECHNIQUE 113.8 PROPOSED QUESTIONNAIRE 113.9 DATA ANALYSIS & PRESENTATION METHOD 123.10 VALIDITY 123.11 RELIABILITY 123.12 ETHICAL CONSIDERATIONS 123.13 LIMITATION OF THE STUDY 12CONCLUSION 13REFERENCE 14-15

CHAPTER-1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

A proper construction and use of marketing strategy can have a significance influence on theprofitability of a firm. In the technologically advanced world of today internet marketing is emergingas the important part of the business strategies as well as the activities of the business in the wholeworld influence by the introduction of the modern tools of the marketing. Marketing strategy shouldbe performed first because it will facilitate the firms to concentrate on their customers and marketsand manage the responses from marketing to construct the marketing strategy and to assess fromwhere the profit will be generated. Today internet marketing is getting popularity due to thedevelopment of electronic technology. In the UK the use of internet is growing day by day. Most ofthe companies of different industries prefer to use internet marketing compared to the traditionalmarketing. In this study I will evaluate the impacts of Internet Marketing on the businesses in thecontext of Pizza Hut.

1.2 PURPOSE OF THE PROPOSED RESEARCH:

Evaluating the impact of Internet Marketing on the businesses in UK in the context of Pizza Hut isthe purpose of the proposed study.

1.3 AIM & OBJECTIVES OF THE STUDY

The study is aimed to evaluate the impacts of Internet Marketing on the businesses. The majorobjectives of this study are:

i. To evaluate the impacts of Internet Marketing on the businesses in the context of Pizza Hut;ii. To analyze the performance resulted from the usage of internet marketing of the Pizza Hut;iii. To observe the usage of Internet as a Marketing tool by the companies in the context of Pizza

Hut;iv. To identify the factors of the growth of internet marketing;

1.4 QUESTIONS TO BE ANSWERED:

i. How Internet marketing influence the performance of the business organization?ii. Is the utilization of internet marketing help product development?iii. What are the different internet-marketing strategies followed by the firm?

1.5 SCOPE & RATIONALE FOR CHOSING THE DISSERTATION TOPIC

Internet Marketing has great effect on the performance and profitability of businesses. DaveChaffey (2007) said that, “for the organization of the low cost internet marketing bring most of theprofitability.” On the contrary Gatticker U. and Bohmann K. said that, “for the marketing internet isused as the effective as well as the modern tool in addition to the success of the marketing of anyorganization depends on the strategies as well as decisions to a certain extent than the use of theinternet.” Today business organization can take competitive advantage by using Internet Marketing.Thereby its scope is wider and essential. Therefore the study regarding the impact of internetmarketing is helpful for the business and also develops the knowledge about the internet marketing.

So the proposed study is rational.

1.6 BACKGROUND OF THE CASE COMPANY

,

In 1985 Pizza Hut started its business in Wichita, Kansas as well as it is the largest restaurant in theworld. This restaurant was founded by Frank and Dan Carney. After fifteen years the first restaurantof United Kingdom was opened. From this time the Pizza Hut is the biggest pizza company all overthe world. For the Pizza the Pizza Hut is in the leading position in the United Kingdom. All over theUnited Kingdom there are six hundred outlet of Pizza Hut. Pizza Hut’s parent company is the YumBrands, Inc. to be the best Pizza Hut restaurant brand is the mission of Pizza Hut.

CHAPTER-2

LITERATURE REVIEW

2.1 INTRODUCTION

In this chapter I have described the concept of internet marketing and different literature related tothe internet marketing. This study will critically evaluate the impact of internet marketing on thebusiness in the context of Pizza Hut.

2.2INTERNET MARKETING

Internet marketing is the marketing practice through the use of information technologies. Accordingto Chaffey (2009), “successful internet marketing needed the still integration of the moderntechniques with the media support of traditional way as well as by the achievement of the objectivesof the marketing determined the investment for the internet marketing.”

2.3 Strategies of the marketing as well as the Internet:

According to Levy, (1996), “as the effective media for accessing, organizing, communicating as wellas sharing the communication internet is considered that can draw the unpredictable affects of theactivities of the business.” With the emergence of the technological advancement the marketingstrategies of the organization are inspired as well as affected. According to Ashworth, Lauranceand Clinton Free, “the advancement as well as the growth of the internet and email with a excellentpace over the recent few decades that has the result in its increasing utilization in the purpose of themarketing but it is very difficult task to measure the impact of the internet for the activities of themarketing as well as the outcome of the internet changes the activities of the world very quickly.”According to Darby, James and Ghada (2003),”some predetermined steps should be contained inthe traditional marketing activities for the ensuring the effectiveness of the marketing.” Tounderstand the perceptions of the customers the marketing strategy should have eight steps. Theseare as follows: market research, product development, perceived the wants of the customers,delivery the products, taking regular feedback from the customers, testing the market etc. in thetime of the modern marketing of the use of internet there is a great changes in the marketingactivities as well as in the concept of the marketing.

Particularly the emergence of internet marketing caused the firms to face challenge to buildmarketing strategies and product development.

In the traditional marketing according to Komenar, (1997), “normally te information was collectedfrom the consumers for the development of the goods and services that the satisfaction of thecustomers on the other hand most of the information is collected from the internet for both theparties of business as well as the consumers it is mean that the management of the business istapped into the internet for satisfying the consumers demand that is ever increasing as well as forthe competition of the today’s competitive business market.” According to Peterson, A Robert, BartJ Bronnenberg, (2007), “most of the people believe that there is the linkage between the internet aswell as the marketing strategies of the organization for the reason that as the utilization of the hypermedia internet helps the business by providing the information and at the same time it also kept thegreater implications for the marketing because of this motive internet is treated as a combination ofthe electronic business as well as a group of people tick market.”

According to Christopher Smith (2005), “as a competitive mechanism the internet is quickly growingas well as widening in the scope of the marketing and the place of the market is turned in to abusiness world as the technology centric. It is very essential for the organization to for the survivingin this business world that is technology centric then these firms can realize the significance as wellas the importance of the internet marketing and adopting and utilizing internet properly to receive allthe benefits of this modern mechanism.” According to Kokkinaki F. and Ambler, T. (2003), “ manyactivities of the marketing as well as policies are taking effects of the marketing based on theinternet such as the policies of the pricing, for the marketing mix the pricing is the very significantelements as well as for any firms the policies of the pricing has the great importance the cause is itdetermines that the final amount of money that the customers will pay for the products or theservices as the return.” The most important thing a firm should focus on is to construct a betterpricing policy in such a way they will ensure the benefits of customers because the price of theproducts and services significantly influence the customer’s responses towards the products. Thefirm in this case should take into account different things to construct marketing strategy one ofwhich is the analyzing the customers behavior that can be better performed by marketing throughinternet. Internet marketing in this regard facilitates the firms to comprehensively assess theresponses from customers and to trace their behavior that will ultimately help firms to form theirmarketing strategy.

Darby et al (2003) pointed out that “the 4Ps of Marketing - Price, Product, Promotion and Place aremuch influenced by the internet because with the help of internet, the consumers are now able tocompare the prices of the product from a wide range of suppliers due to which there is rise in theprice competition and cross border price standardization has also increased”.

Due to the emergence of new technology and internet marketing the firms are now able to reducetheir cost structure resulting the lower cost of production and lower price of product requiring thefirms to construct better pricing policies performing online marketing. The companies in this regardcontinuously have to develop the unique and innovative products to satisfy the customers’ needsbecause the customers facing online markets now has a varieties of option to choose their productthat will better satisfy their needs. Internet marketing can also facilitate the internet marketing byproving a low cost of performing promotional activities via internets and enabling to become closerto the customers. As a result of this privilege of internet marketing the small firm can promote theirproducts in an identical manner as the large firm can.

2.4 IMPACT OF INTERNET MARKETING ON BUSINESSES

The business under which the products or services are promoted, distributed and sold through theinternet is referred as internet marketing. About internet marketing Smith and Chaffey (2005) saidthat “internet marketing is used to achieve the objectives by applying the high technologies.”According to Liang and Hung (1998), “for the quick extension as well as expanded use of the

internet the firms are changing the attentions to the activities of the marketing of the goods as wellas the services by using the internet,” for thfield of marketing internet has the both positive andnegative implications. According to Dave Chaffey (2007) , “for the use of the internet the firms canreduce the cost by using the effective marketing such as reducing the overall marketing costreduction by using the firm’s email and website as the tool of the marketing.” The organization canreach to the large number of the customers in very short period and very lower amount of the cost. According to Dave Chaffey, (2007), “as a return of the internet marketing the firm not only receivesthe immediate responses of the customers but also receive the overall efficiency as well as theproficiency in the business activities with the help of the internet marketing.”

According to Varadarajan and Yadav (2002) there are some positive effects of internet marketing.Some of these are given below: Greater information richness of the transactional and relationalenvironment;

1. For the buyer the lower the information searching costs.2. Reducing the irregularity of information between the customers as well as the buyers.3. Proximity of the customers as well as the buyers by the electronic media.4. Increasing the temporal separation in the period of the buying as well as the possession of

the physical goods that is bought in the market place that is electronically arranged.

According to Collins, Buhalis, Peters (2003), “by providing the different types of the advantages theinternet marketing affects the firms, now it is a very powerful mechanism as well as the firms canuse the internet for making the their presence in the market in twenty four hours the consumers willget the facilities to to buy the get the required information about the organization, goods, servicesany time they wants.”

The visitors of the websites can easily submit their comments and queries they are willing to askfor thought the internet and the sales and marketing representatives of the companies can also beable to trace the responses of customers and provide feedback to their queries by using internetinstantly as well as effectively.

According to Collins, Buhalis, Peters, (2003), “by using the internet marketing the organization canbuild up the close relationship with the customers then the activities of the business will beincreased and the customers will get more information about the firms and the products.” Accordingto Adam, Mulye, Palihawadana, (2002) “to make the presence online it is necessary before enteringin the web space to create the awareness about the potential effects of the internet marketing aswell as they have to prepare the plan for the strategies facing the internet marketing as well as theyhave to plan about the challenges before entering in the internet marketing, then they can get theefficiency from the internet marketing by the presence online.”

Aaording to Wientzen H. R. (2000), “from the marketing perspective internet is playing the vital rolesas well as internet offers a great benefits for the small as well as medium types of the firms in thepromotion of the goods as well as the services in the international market.”

The Company by using internet marketing can attain cost reduction through reduction of differentdistribution cost related to the product. However the traditional methods of marketing are alsoeffective but are subject to some constraints. According to Wientzen, “internet marketing has twomain goals in the general way, first off all attracting the most of the visitors in the websites of the firmthen they can get idea about different types of the goods as well as the services of the organizationand then the actual sales volume of the firm will be increased, secondly the significant goal of theinternet marketing is to increase the worth of the brands as well as this goal will be attained by theinternet marketing that used different strategies as well as mechanism in comparison to thetraditional methods of the marketing.”

2.5 SUMMARY

This study will evaluate the impact of internet marketing on the business. Internet marketing is themarketing promotion through using information technology. In this chapter I have explained the originof the internet marketing. Internet marketing provides various benefits to the firm using suchmarketing. I have illustrated different literatures related to the impact of the internet marketing in thischapter.

Chapter -3

RESEARCH METHODOLOGY

3.1 OVERVIEW

In this chapter I have described in what ways I will conduct the proposed study. Here I haveexplained the research approach, method, strategy, data collection method needed to conductedthe study.

3.2 APPRAOCH TO RESEARCH

As mentioned by Dubois and Gadde, (2002) Research approach can be classified into three kindsthat are explanatory, descriptive and exploratory. At the time of the research which is developingmodels theories and hypothesis exploratory research is mostly used (Scholz and Tietje, 2002).While the research is to make to determine the relationships between the cause and effects thenexplanatory research is used in the study.

3.3 RESEARCH METHOD

Two types of research methods are used in a research study named as quantitative and qualitativeresearch. As mentioned by Saunders et al (2007) that the qualitative or inductive research methodis used while there is a need for develop a hypothesis and to grow the current theory and determinethe impact of theory. A qualitative research method mainly deals with the case studies analysis andmuch more depends on the subjective meanings of the respondents (Burns & Grove, 1997). Toprepare this thesis I mainly focused on both the qualitative and quantitative methods of research.

3.4 RESEARCH STRATEGY

As mentioned by the Yin (2003) the strategy of research can be decomposed into four categoriesnamed as experiments, surveys, case study, and historical analysis. The case study strategy is themost effective among these all categories. If a research include the two types of questions such as‘how’ and ‘why’ then the case study strategy is appropriate (Yin, 2003). Include ‘how’ and ‘why’ thecase study strategy is appropriate”.

I will follow the case study strategy for the proposed study.

3.5 CASE SELECTION

I have chosen Pizza Hut restaurant as the case company for the proposed dissertation.

3.6 DATA COLLECTION METHODS AND TOOLS

Normally data is collected from the two common sources; such as-

Figure: Sources of Data (source-own)

3.6.1 SECONDARY DATA

Secondary data will be collected from different secondary sources such as internet, article, journal,text books etc.

3.6.2 PRIMARY DATA

Normally primary data is collected through experiments, survey, or observation. In this study I will usesurvey method to collect primary data in the premises of Pizza Hut.

3.7 SAMPLING TECHNIQUE

In this study I will use simple random sampling technique to determine the sample. The sample sizewill be 30 for this study. The sample includes managers and customers of the Pizza Hut. Among the30 respondents 2 are managers of the Pizza Hut and reaming 28 are customers come to the Pizzahut.

3.8 PROPOSED QUESTIONNAIRE

I will use a predetermined questionnaire in the time of primary data collection. The details of thequestionnaire will be attached in the Appendix of the dissertation.

3.9 DATA ANALYSIS & PRESENTATION METHOD

The collected data will be presented and analyzed using different statistical techniques. To presentthe findings frequency distribution will be used. I will use descriptive statistics to analyze the findingsof the empirical study. Mean, standard deviation, variance are the measures of the descriptivestatistics.

3.11 VALIDITY

Validity is the concern that whether the findings of the proposed study will be relevant to what theyactually are. The research has to be conducted in such a way so that the validity of the data can bemaintained. In maintaining the validity Yin (2003) suggests collect the chain of evidences. Therebyall necessary activities will be done to maintain the validity of the data.

3.12 RELIABILITY

As mentioned by Saunders et al., (2003) The reliability of the research basically depends on thedegree to which whether research will generate the same results if conducted by the another partyusing the same procedures followed by the previous researchers and will draw the same conclusionidentical to previous researcher. The objective or goal of the reliability of the research is to provide

an assurance based on the fact that the research if conducted by a third party will produce aidentical conclusions (Yin 2003). Yin (2003) also emphasized on the evidence or the properdocumentation of the procedures and in this case I will perform the identical things that will enhancethe reliability of the research.

3.13 ETHICAL CONSIDERATIONS

The most important thing that bears in mind in conducting a research is the ethical considerations.As mentioned by Saunders et al., (2007) the ethics of research are the suitability of theresearcher’s attitudes about the rights of the persons involved in research considering the fact thatthe research may be affected by another researcher. The researchers at first should gatherknowledge about the Code to Ethical Conduct for Research before going conduct a research. I willdo this with carefully. I will ensure the respondents that anyhow their names will not be shown in thisdissertation.

I will ensure the respondents that anyhow their names will not be shown in this dissertation.

CONCLUSION

In the technologically advanced world of today internet marketing is emerging as the important partof the business strategies as well as the activities of the business in the whole world influence bythe introduction of the modern tools of the marketing. Marketing strategy should be performed firstbecause it will facilitate the firms to concentrate on their customers and markets and manage theresponses from marketing to construct the marketing strategy and to assess from where the profitwill be generated. Today internet marketing is getting popularity due to the development ofelectronic technology. In the UK the use of internet is growing day by day. Most of the companies ofdifferent industries prefer to use internet marketing compared to the traditional marketing. TheCompany by using internet marketing can attain cost reduction through reduction of differentdistribution cost related to the product. However the traditional methods of marketing are alsoeffective but are subject to some constraints. According to Wientzen, “internet marketing has twomain goals in the general way, first off all attracting the most of the visitors in the websites of the firmthen they can get idea about different types of the goods as well as the services of the organizationand then the actual sales volume of the firm will be increased, secondly the significant goal of theinternet marketing is to increase the worth of the brands as well as this goal will be attained by theinternet marketing that used different strategies as well as mechanism in comparison to thetraditional methods of the marketing.” In the literature review chapter I have explained variousliteratures related to the internet marketing tools and to the impact of internet marketing on theperformance of the business. In this study I will evaluate the impact of the Internet Marketing on thebusinesses in UK in the context of Pizza Hut.

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