EXECUTIVE SUMMARY

During the past four decades Pizza Hut has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized Pizza Huts business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future. There are different objectives of every organization. In order to achieve these objectives different targets are set. Targets pass down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives, management decides on different strategies. These strategies are divided into many sub-parts and are useful for the running of the business. The employees and the management know what they have to achieve through the targets which have been set to them and the strategies they have adopted help them know the way they will achieve the objectives. Similarly, Pizza Hut has different targets set to them and they have adopted different strategies to successfully achieve the targets set. These targets are set by the RSC i.e. the restaurant support centre. These targets are passed on to the RGM (restaurant general manager) and he passes them to the workforce. These targets fall within the organizational structure in which there are many people who have different targets to achieve. In order to successfully achieve the targets they need to co-operate and work in a friendly environment.

HISTORY OF PIZZA About Pizza, Some will tell you Italy. That's wrong. What you know as pizza came into vogue around the time of Napoleon and the French revolution. Italians, known to be lovers of fine food and wines perfected and imported this terrific dish to America. From here it quickly endeared itself to mass production and reexport to the rest of the world. Bon appetite!

INTRODUCTION & HISTORY OF PIZZA HUT In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the sign the building looked like a hut so 'Pizza Hut' was born! Fifteen years later, we opened the first UK restaurant and since then we've become the biggest Pizza Company on the planet, Let see listen Pizza Hut Story from them! 1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas. 1972 1000 restaurants are open throughout the USA. 1973 Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London. 1977 PepsiCo bought Pizza Hut. 1980 Pan Pizza was introduced. 1982 The UK joint venture started between PepsiCo and Whitebread. 1984 Over 50 restaurants so far in the UK. 1986 By now, there were 100 restaurants in the UK and 5000 worldwide. 1987 An average of one restaurant opened each week in the UK. 1988 The UK's First Delivery Unit was opened in Kingsbury, London. 1992 There were 9,000 restaurants in 84 countries. 1993 There were 300 restaurants and delivery stores in the UK. 1994 10,000 Pizza Huts were open for business. 1997 PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitebread. 1999 Pizza Hut had over 400 restaurants, employing 14000 people. 2002 Tricon Global became YUM! Brands Inc. 2006 Whitebread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum! 2008 We bought Godfather's Pizza in Ireland with 28 stores.

Pizza Hut is known for its Good Quality Food (Hygiene) Brand Name Food worth its Price Good Service New Kind and Styles of Pizzas in its Menu.

PIZZA HUT'S MISSION STATEMENT We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!" We are the employer of choice offering team members opportunities For Growth, Advancement, And Rewarding Careers in a Fun, Safe Working Environment. P.E.A.R.L.S PASSION for excellence in doing everything. EXECUTE with positive energy and urgency. ACCOUNTABLE for growth in customer satisfaction and profitability. RECOGNIZE the achievement of others and have fun doing it. LISTEN and more importantly, respond to the voice of the customer.

LOCATION IN INDIA Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum! Brands owns Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John Silvers restaurants worldwide. In India Pizza Hut has not included all kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian customers.

A critical factor in Pizza Huts success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customers in different parts of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly established itself as a brand with an Indian heart. Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root-based ingredients.

COMPARATIVE STRATEGY: This forced competitors to look for new methods of increasing their customer bases. Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas. In the past, Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the diversification of the products they offer. Pizza Hut is always adding something new to their menu, trying to reach new markets. For example, in 1992 the famous buffet was launched in Pizza Hut restaurants worldwide. They were trying to offer many different food items for customers who didn't necessarily want pizza. Another strategy they used in the past and are still using is the diversification of their pizzas. Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different - different enough that customers will think its a whole new product. For example, let's look at some of the pizzas Pizza Hut has marketed in the past. In 1983, Pizza Hut introduced their Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Pizza Hut restaurants. In 1993, they introduced the "Bigfoot," which was two square feet of pizza cut into 21 slices. In 1995, they introduced "Stuffed Crust Pizza," where the crust would be filled with cheese. In 1997, they marketed "The Edge," which had cheese and toppings all the way to the edge of the pizza. Currently, they are
5

marketing "The Big New Yorker," trying to bring the famous New York style pizza to the whole country. Lastly, Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began two customer satisfaction programs: a UAN (in USA 1-800) number customer hotline and a customer call-back program. These were implemented to make sure their customers were happy, and always wanted to return. In our plan, we will first give a situation analysis of current and relevant environmental conditions that affect our plan. Next, we will give a brief analysis of the current fast food industry, and any trends or changes that might occur in the future. ENVIRONMENTAL AND INTERNAL ANALYSIS OF PIZZA HUT In our visit to Pizza Hut we conducted research on PEST (Political, Economic, SocialAandATechnological)SAnalysis. In the internal analysis of Pizza Hut we have considered SWOT of the Company. PEST (Political, Economic, Social & Technological)
i.

POLITICAL ISSUES:

Political issues include regulatory frame work operating in judicial system which may affect the business in different ways. There are not many political factors affecting Pizza Hut. Factors such as laws on business employment, pollution and taxation apply on the organization which it has to follow regarding the rules.
ii.

ECONOMIC FACTORS:

If the countrys economy is better so the GDP of the country will be good, this is a green signal for the business as the per capita income of the people will be increased and they will spend more money. In our survey we came to know that most of the people in the beginning of the months spend more and they visit pizza hut very often. When the inflation rate increases the cost of raw material also increases and this leads towards high prices of the products and vice versa.
iii.

SOCIAL FACTORS:

Pizza hut is a multinational and it is basically originated from America so the organization is overwhelmed by western culture. There are social forms of society
6

which consist of Upper class, middle class, middle upper class and lower class. Every country has cultural norms, values, beliefs and religion which can affect the organization.
iv.

TECHNOLOGICAL FACTORS:

Now a days technology is improving so as baking and heating ovens will be of new and efficient technology and will provide efficient service. Due to new technology there are new ways of marketing like internet; telemarketing and the organization can advertise their products with much more faster pace. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. New vehicles will make their service more efficient.

SWOT ANALYSIS
Every organization has its strengths, weakness, opportunity and threats. So, the SWOT analysis for pizza hut is as under: Strengths: Pizza Hut is the market leader in providing different products of pizzas. Their good image makes the organization more strong. Pizza Hut is providing good taste, quality products with qualified staff, good atmosphere and hygienic environment. They are specialized in pizzas. Motivation level of staff is very high which make the organization more prosperous. They are ISO (International Standard Organization) certified. They have enough resources for operating different activities of the organization. They are providing free home delivery service. They have created monopoly in this sector. Another big Strength and even a Competitive Advantage is the fact that they have a full service restaurant as well as delivery services. Most of Pizza Hut's competitors do not have restaurants. Because of the restaurant, Pizza Hut can market too many different segments that other pizza chains cannot. For example, Pizza Hut can market to families much easier than Domino's or Little Caesar's.

Weaknesses: Pizza Hut has higher overhead costs, due to the restaurant that other competitors don't have to deal with. Another result of higher overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices. They are providing less range of products comparatively with high prices. They are more focused on Western taste instead of Eastern. Opportunities: New markets can be explored and new opportunities they can gain. Pizza Hut can come up with the new products considering the Eastern taste of the people as like McDonalds. Diversification of new products can increase their market share. They can reduce their prices because of more resources. Threats: Pizza Hut's number one threats are from their competitors. Currently, i. ii. Their closest competitor is Domino's Pizza. Domino's main competitive advantage over Pizza Hut is their Lower price. Little Caesar's who is establishing their self in India is another Pizza Hut's competitors, right behind Domino's in market share. Little Caesar's is famous for offering large quantities of pizza for less money. Other local restaurants can affect their market share by providing pizzas with lower price. Social factors can affect their image as a Western organization.

iii. iv.

STP ANALYSIS OF PIZZA HUT

SEGMENTATION: Main segments which Pizza hut has captured are the combination of higher incomes and dual career families , due to higher income consumer have more disposable income , allowing them to eat out more often . Pizza Hut holds the most market share in the Pizza industry, the perceived quality and service of the company will help to ensure a better the average chance at a successful introduction of a new product. The introduction of a product that keeps with today trends is also important to reduce the risk of failure. Pizza Hut maximum market segment is younger generations. These generation ranges from 12 to 30, the overall spending of these generations is mostly on non essential items, the higher amount of spending has been done on eating out. POSITIONING: Pizza Hut was among the first multinational brands to enter the food retail sector in India. When the first Pizza Hut restaurant opened in India the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. Pizza Hut went on to play a significant role in pioneering and developing this category. Worldwide, Pizza Hut has come to become synonymous with the 'best pizzas under one roof'. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal.

A critical factor in Pizza Hut's success has been its unique dining experience. Crew members at Pizza Hut strive each day to provide 'CUSTOMER MANIA' - the kind of service that ensures that every visit of the customer is a memorable one. Pizza Hut's constant endeavor to provide extra value whether it is pizzas which are available to suit every price range, new promotions or the introduction of innovative product ranges - that puts a 'Yum' on every customer's face - has allowed it to increase its presence across the world . Market Targeting: Pizza hut targeted market defines them as a family product. This is because they dont really directly market their customers. They are targeting everyone whereas their competitors target a certain gender or age. But pizza hut targets a wide range of customers. This is because they want to make the most money. They have many competitors and they are bound to try everything to cope up tops. Their competitors are everywhere. There are just a few that are main competitors and pizza hut will always try to be the best and get the most money by making their products better quality but also cheaper. They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers. They also do vegetarian options with meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and a pasta bar. This is another competitive idea to attract or customers. STRATEGIES ADOPTED BY PIZZA HUT: A business's strategy is the pattern of decisions and actions that are taken by the business to achieve its goals. A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives. Running a business involves planning the current as well as future activities. Hence, in order to achieve the business objectives, all business organizations adopt different strategies. Changes are the external as well as
10

internal environment has led Pizza Hut rethink their past strategies and has therefore designed new strategies after noticing the changes in the environment. These environmental changes are seen through the PEST and SWOT analysis. After considering all the factors Pizza Hut has decided upon the strategies and their current strategies are divided into five main categories and further have subparts. These strategies are: Functional Strategies: These are strategies designed to improve the efficiency of a business's operations. They often focus on an area, such as marketing, human resource etc. All business organizations adopt strategies at functional level as once the functional objectives are achieved, corporate objectives become easy. In order to make the functional strategy efficient, Pizza Hut has made all the functional departments co-operate with each other. Total Quality Management (TQM): This is the most important for a food chain like Pizza Hut. All the employees backof-the-house i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet the quality standards set by Pizza Hut around the world. This strategy is important in order to satisfy the C.H.A.M.P.S. that stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. Different quality management staff is also there at Pizza Hut. The shift managers have the task to observe whether the quality standards are met or not, whereas there are a total quality management department at the main office in Karachi. This department has the task to implement quality standards and know whether they are achieved or not. Business Level Strategy: Business level strategies are plans made to gain a competitive advantage over its rivals in a market. Hence, all the businesses need to adopt business level strategies in order to compete in a competitive environment. The threat of competitors is very low. Therefore, present strategies adopted by Pizza Hut are keeping in consideration the present competition. Whereas, in future this
11

competition will increase and Pizza Hut will have to change all its business level strategies in order to compete with its rivals.

Pricing Strategy: The level of competition a business faces determines its pricing strategy. Sometimes a business has the scope to set its price and sometimes a business cannot. When a business has the scope to set its price there is a number of pricing strategies or policies it might choose. The pricing strategy adopted by Pizza Hut is 'market skimming'. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Pizza Hut, and hence, Pizza Hut is free to charge any price they want. They are charging higher prices due to the uniqueness of the product. They satisfy the target market as the food quality is worth the price paid. The pricing strategy is not just to get the worth of quality but also to gain maximum profits. Market Share: As there are Dozens of Pizza Suppliers Globally Providing Services in different part of the World, but Pizza Hut is the One who got the Bigger Market Share Globally. This is the Survey taken by www.survey.com that Pizza Hut is having 48% of Overall Pizza Market in the World. After that Dominos is leading with a percentage of 20% while the rest 32% is divided in the Remaining Pizza Providers Globally.

12

7 Ps OF SERVICES
PRODUCT Worldwide and in India, Pizza Hut has come to become synonymous with the best pizzas under one roof. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in Pizza Huts success has been its unique dining experience. Crewmembers at Pizza Hut strive each day to provide customer mania - the kind of service that ensures that every visit of the customer is a memorable one. Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the menu offers the option of a complete meal. It includes appetizers, a Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas and desserts.

PRICE In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent sales to lower the price below them. Both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used. Pizza Hut will be
13

able to sell two products together at a single price to suggest a good value. Different groups of customers are willing to pay different prices for the same product. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent. PROMOTION The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behavior of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail (VIP members), but also by fliers on college campuses around the country in order to reach the target market. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers. Pizza huts also using marketing techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts tries to attract the younger generation as their main market segment. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines. Advertising camping will creates awareness of the products in our target markets. DISTRIBUTION The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also useful when there are a large number of buyers, but a small amount purchased by each. Pizza Hut uses three different methods of selling its products directly to the market. The first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of time, place an order, and the order is delivered to the customer's home.

14

Another method of distribution is for customers to dine-in. Customers can go to the nearest Pizza Hut, place an order, and either leave with the order or eat at the restaurant. One of Pizza Hut's largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family atmosphere. The third method of distribution is online ordering. Customers can now go on the Internet and place an order. This method is useful because it allows customers to view the entire menu, download any special coupons, and order without having to disclose any credit card numbers. PEOPLE Here the job design is not the most difficult task to do. Also there is no specific requirement for recruiting process. After talking to one of the employees in Pizza Hut, we came to know the criteria of selection. The girl was from west India, she was only 10th passed out. After this it was confirmed that there is no proper requirement of the educational background. The only factor they were considering on the communication skills, how they communicate with the customers. Since the communication is the most important factor between the customer and employee because the whole process is depended on giving the orders for food. For this the Management conducted the training process for the new employees. The Training is given for total of 5 days. Out of 5 days, they have 3 days for kitchen training and other 2 days in the main dining, that is, how to take orders and basically how to communicate with customers and make them happy by their services.

15

PROCESS The design of the process of the pizza hut is very efficient. Pizza hut does not follow any kind of hierarchy , all the employee is at the same level ,pizza hut has a very prescribe and well known process by adopting various technology software which help them to upgrade their supply management and also manage their crowd of customer efficiently. PHYSICAL EVIDENCE The ambience of the pizza hut is good enough to catch up the people. They provide a very good dining experience with high quality of atmosphere in terms of their physical evidence and pizza hut always try to upgrade with changing environment and modernization is key of success of the pizza hut.

16

SERVICE PROCESS

17

18

PIZZA HUT PROMOTIONAL STRATEGIES

PROMOTIONAL OF PIZZA HUT The strength of Pizza Huts success globally lies in a marketing strategy that builds connections with customers everyday in different parts of the world. Many customer service initiatives have been uniquely developed for India and have been greatly instrumental in building an emotional bond with the customer. For instance the crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. While a bell hangs at each Pizza Hut restaurant, which is rung by customers who as they leave wish to thank the servers for yet another memorable visit. In India, eating out is perceived as a form of entertainment which is why Pizza Hut servers not only serve our customers great food, they also sing and dance for them. And many of Pizza Huts customers would, we are certain, love to participate in this process. Giving them an opportunity to showcase their talent they conceived the Jig n Jeeto contest. Organized in Delhi for the first time, it received a phenomenal response with super star Fardeen Khan judging the show. Pizza Hut hopes to continue this contest as a tradition for the years to follow. Pizza Huts communication has also always struck a chord with the Indian customer. Its very first television commercial in India featured a boy and girl, who meet at a Pizza Hut restaurant in a traditional arranged marriage setting. They lose their inhibitions when the pizza arrives. When the sequel went on air featuring the same couple, now married, with the girls father consoling her over a pizza as her bridegroom waits outside the restaurant to escort her after their wedding - the customers involvement was so complete that several wrote in to inquire whether the couple had children.
19

 The campaign that was launched with the introduction of the Tandoori pizzas featured a typical Indian wedding procession abandoning the bridegroom when enticed by delicious aromas from a Pizza Hut restaurant. While the famous Good times start with great pizzas slogan has been prominent in the communication, the focus has remained on the best and most distinct pizzas. Online promotional strategies Pizza hut provides many services online such as: Birthday reminder service- here people can save the birthday date of their friends, relatives , and pizza hut will remind you the birthday date and birthday parties discount and u can book online. E-coupon and discount offer available to online customers. Hot line number pizza hut hot line number also provide at online which is 39883988. Even customer can do online order of pizzas. VIP CLUB VIP (very into pizza) club made where people can register their email, mobile number where pizza hut provide them latest pizza news, discounts and offers at email and mobile phones.

20

21