CASE

ANALYSIS
PRESENTED BY-
ON PIZZA
ISHIKA KHANDELWAL
SEJAL GARG
AANCHAL SINGH
HUT
 Brief analysis of the case
Brand: Pizza Hut
Product: Pizza
Dept. Name/Requestor: Pizza Hut
SLOGAN : MAKE IT GREAT
Project Summary: This campaign focuses all creative advertisements around the
idea that pizza’s are individual just like people. No one person is alike and your
pizza shouldn’t be either. Market share (currently) for this region: 14.3%
Who are we talking to (target):The target market for this campaign is minority
women Millennials, ages 25-34 that live in the Southern and Midwestern United
States.
Region description and conditions: The region for this campaign is the United States of
America. This region was selected because the nature of the campaign was national. It was also
chosen because America is Pizza Hut’s most struggling market- according to Pizza Hut’s financial
records (2017). In even greater depth, the more targeted regions within the U.S.A will be the South
and Midwest. These regions were selected because they are the largest market for minority.

Specific target: Research done by Media Mark shows that women ages 25-34 who did not
graduate from high school, are the number one consumers of pizza (2016). Pizza Hut’s previous
campaigns proved that Millennials like to be seen as individuals and not just one lump
some group. From this, it is clear that the hypodermic needle method cannot be used in
this campaign. By segmenting Millennials not only by gender and age but also by income,
education, family status, career, home value etc. this campaign will be more successful than
others because of the attentiCompetitive environment.

Main competitors: The top in store competitors for Pizza Hut are Papa Johns International,
Domino’s Pizza, and Caesar Little Enterprises. The Pizza Hut, KFC, and Taco Bell are all ran by the
same brand.on to individuality of the consumers.
IDENTIFICATION OF THE PROBLEM IN CASE

 Constant need and assured supply for adequate manpower to run

the outlets.
 Challenges of solid supply chain system
 Technological changes
 Ever-increasing real estate cost
 High overhead cost due to large number of restaurants
 The gap between customer expectation and management
perception.
 Service delivery and external communication of the customer.
 FACTS AND FIGURES
 PIZZA HUT is one of the largest pizza chains on earth.
 The chain started in Kansas with just $600.
 It now has over 16000 individual stores worldwide.
 The name “PIZZA HUT” just happened to fit on the sign.
 Former first lady Barbara Bush was the first to order PIZZA HUT to the WHITE
HOUSE.
 Pizza Hut has a charity aim that encouraging kids to read.
 Pizza Hut tried to lazer their logo on to the moon.
 Pizza Hut is available in over 100 countries.
 Mission, Objectives, Goals
 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.
 Objectives: 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.
 Goals: Our goal is to make everyone proud to work at Pizza Hut. That means
encouraging them to be the best version of themselves and making the work
environment friendly and fun. Because when we’re excited by our work, it
shows in everything we make working environment. (Pizza Hut Hawaii, n.d.)
 HISTORY
Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their
hometown of Wichita. The early 1960’s Pizza Hut grew on the strength of
aggressive marketing of the pizza restaurant idea. In 1962, the Carney
brothers bought out the interest held by Bender, and Robert Chisholm
joined the company as treasurer. In 1966, when the number of Pizza Hut
franchise units had grown to 145, a home office was established. In 1971
Pizza Hut became the world’s largest pizza chain, according to sales and
number of restaurants-then just more than 1,000 in all. In 1977 Pizza Hut
merged with PepsiCo, becoming a division of the global soft drink and
food conglomerate. The 1980s brought new competitors to Pizza Hut, all
challenging its number one position in the pizza restaurant trade, then
worth $15 billion in sales annually in the United States alone.
 SWOT
STRENGTH
• PIZZA HUT has a premium position in the mind of the customer.
• Pizza hut promotions and brand equity are better than competitor.
• Pizza hut specializes in making pizzas.
• It has a wide variety of pizza.
• Pizza hut recently developed a new hot delivery pouch to ensure that
pizzas are deliverd OVEN HOT
• Pizza is reasonably priced.
• Pizza hut is giving good offers.
• Pizza hut provides its own full service restaurant and delivery facilities.
• Pizza hut has a large share of the market and has a strong network.
 WEAKNESS
PIZZA HUT is not available in remote areas.

Customer support does not satisfy clients needs.

Food is not fresh enough.

Often the food does not meet the standart of the visitor.

Lack of novelty

The menu is confusing, since not only pizzas but other items are available.
 OPPORTUNITY
OPENING OF NEW MALLS CAN BE A GREAT OPPORTUNITY FOR PIZZA HUT.

NEW VARIENTS ACCORDING TO LOCAL TASTE CAN BE A GREAT

OPPORTUNITY TO ATTRACT CUSOMERS

INCREASING COMPETITION CAN ALSOINCREASE THE DEMAND OF THE

PIZZA.

MORE PROTION ON SOCIAL MEDIA CAN HELP THE COMPANY TO GROW.

PRODUCTION OF NEW FOOD WILL LIFT THEIR MARKET SHARE.

PIZZA HUT WILL CONCENTRATE ON EASTERN TASTE AS WESTERN TASTE

IS MORE FOCUSED.
 THREATS
GOVERNMENT NORMS AND POLICIES CAN DIRECTLY AFFECT PIZZA
HUT.

EVER CHANGING TASTE OF CUSTOMER CAN ALSO BE ATHREAT TO

PIZZA HUT.

TO LIVE AND PROSPER IN A COMPITATIVE FOOD FRANCHISEE SETTING

LIKE INDIA, PIZZA HUT NEEDS TO BE ON ITS TOES.

MCDONALDS, KFC AND OTHERS ARE THE INDIRECT RIVELS WHO

FREQUENTLY CARRIES CLIENTS FROM THE PIZZA HUT.

A DECREASE IN PIZZA INTAKE MAY ALSO BE CAUSED BY GROWING

HEALTH INTEREST.
 PESTEL
Political Factors that Impact Pizza Hut, Inc.
o - Judiciary Independence – In the matter of commercial and business decisions, judiciary of the country is independent to a
large extent. Business do face problem when the conflict is between public interest and proprietary technology

o - Government Regulations and Deregulations – The government is adhering to all the rules and regulations under World Trade
Organization norms. There is consistency in both policy making and implementations of those policies.

o - Democracy & Other Democratic Institutions – According to Patrick J. Kaufmann the democratic institutions are needed to be
strengthened further so that business such as Pizza Hut can thrive in an open, transparent and stable political environment.

o - Unrest within the Country & Chances of Civil Unrest – We don’t think that Pizza Hut business operations are facing any
dangers from any kind of civil unrest or internal militant operations in the country.

o - Transition of Government and Changes in Policy – There is consistency in policy making from one government to another.
Secondly governments from all parties adhere to the treaties made by the previous governments.

o - Segregation of Political Responsibilities between Different Government Agencies – There are numerous government agencies
which reduces the risk of overwhelming pressure by one agency. .
 Economic Factors that Impact Pizza Hut, Inc.
- Demand Shifts from Goods Economy to Service Economy – The share of services in the economy is constantly increasing
compare to the share of manufacturing, goods, and agriculture sector.

- Level of Household Income and Savings Rate – Increasing consumption and stagnant household income in United States
had led to credit binge consumption. It has decimated the culture of savings as people don’t have enough to save. Pizza Hut
needs to be careful about building marketing strategy that is dependent on “Purchase on Credit” consumer behavior.

- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of forex risk in – Venezuela,
Brazil, and Argentina. Pizza Hut should be careful about the history of forex risk before entering new market. Many US
companies have incurred losses in Mexico in regular forex crisis in that country.

- Consumer Disposable Income – The household income of the country has increased constantly in the last decade and half,
compare to the USA market where household income is still below 2007 levels and not increased in real terms since early
1980’s. Pizza Hut can leverage this trend to expand the market beyond its traditional customers by employing a
differentiated marketing campaign.

- Financial Market Structure and Availability of Capital at Reasonable Rates – The quantitative easing policy of Federal
Reserve has led to liquidity flooding all across the global financial markets. Pizza Hut can borrow cheaply under such
circumstances. But this strategy entails risks when interest rate will go up.

- Work Force Productivity – Work force productivity in US has grown by 25-30 % in last two decades even though the salaries
are not reflecting those gains. It can enable Pizza Hut to hire skilled workforce at competitive salaries.
Social Factors that Impact- Pizza Hut, Inc.
- Attitude towards Authority – Various cultures in different part of the world have different attitude towards authority. In Asia
authority is respected while in west it is something to rebel against. Pizza Hut should carefully analyze the attitude towards
authority before launching a marketing campaign for its products and services.

- Gender Composition in Labor Market Pizza Hut can use gender composition of labor market to understand the level of liberal
nature of the society, women rights, and women’s say in matter of societal issues and consumption decisions. The gender
composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs.

- Power Structure in Society – Pizza Hut should carefully analyze both - What is the power structure in the society? How it
impacts the demand in the economy. For example the power structure in US economy is slowly moving towards the older
generation as that generation has higher disposable income compare to the younger generation.

- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society often result higher consumer
activism and pressure from non-governmental organizations, & pressure groups.

- Demographic Trend – The demographic trend is one of the key factors in demand forecasting of an economy. For example as
the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Pizza Hut
should consider demographic trends before new product developments and integrate features that cater to this segment. As
population is ageing it will require less tech intensive products.

- Attitude towards Health & Safety – The attitude towards health and safety is often reflected in the quality of the products and
cost structures of manufacturing processes. Pizza Hut has stringent norms for health and safety norms so in emerging economies
it may have to compete with players who don’t have high cost structures that of Pizza Hut.
Technological Factors that Impact Pizza Hut, Inc.
- Cost of Production and Trends – Pizza Hut should assess - What are the cost of production trends in the economy and level of
automatization. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is
manufacturing and production.

- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Pizza Hut business model. It should
evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market.

- Preparedness for 5G Related Infrastructure – Countries across the world are trying to prepare themselves to install 5G
infrastructure. Pizza Hut should assess to what level the local market is prepared to roll out the 5G connectivity.

- Research and Development Investment Levels – If there is high level of investment in technology development sector then
there are high chances of building a self sustaining ecosystem that drives innovation. Pizza Hut can leverage such a situation to
hire the best people in business.

- Transparency & Digital Drive – Pizza Hut can use digitalization of various processes to overcome corruption in the local
economy.

- Technology transfer and licensing issues for Pizza Hut – laws and culture of licensing of IPR and other digital assets should
be analyzed carefully so that Pizza Hut can avoid shakedowns and IPR thefts.

- Integration of Technology into Society & Business Processes – Uber failed in China because it tried to enter before
smartphone were widespread in China. Pizza Hut should build a strategy that can integrate societal values, infrastructure, and
Pizza Hut business model.

- Property Rights & Protection of Technology Oriented Assets – Pizza Hut should analyze the legal status of various property
rights and intellectual property rights protections that are common in US.
Environmental Factors that Impact Pizza Hut, Inc.
- Corporate Social Responsibilities Culture – Are Pizza Hut present CSR efforts applicable in the new market or does it needs
to have new initiative to cater to the prospective market.

- Environmental Standards and Regulations both at National & Local Levels – Often the environment policy at national and
local level can be different. This can help Pizza Hut in numerous decisions such as plant location, product development, and
pricing strategy.

- Per Capita and National Carbon Emission – What is the per capita carbon emission of the country and what is the overall
level of carbon emissions of the country. This will help in better predicting the environment policy of the country.

- Level of Consumer Activism Regarding Environmental Concerns – Pizza Hut needs to know the level of consumer activism
regarding environmental concerns is. It will help Pizza Hut in both developing environmentally friendly products and
thwarting PR stumble blocks.

- Recycle Policies – What are the recycle policies in prospective market and how Pizza Hut can adhere to those policies.

- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry.

- Influence of Climate Change – How climate change will impact Pizza Hut business model and supply chain. For example if
the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of
sudden climate shift.
Legal Factors that Impact Pizza Hut, Inc.
- Data Protection Laws – Pizza Hut needs to assess what are the data laws in the country and what it needs to do to comply
with them. For example most of EU countries now want the EU citizen data to be saved in EU countries only.

- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Pizza Hut shouldn’t be worried about the
monopoly and restrictive trade practices law.

- Adherence to Common Law – Is the country following common law which is uniform for all parties – whether domestic or
international. If there is arbitrariness in the judicial process then Pizza Hut can’t be sure of the judgments.

- Securities Law – What are the securities law in the country and what are the conditions to list the company on national or
regional stock exchange.

- Employment Laws – What are the employment laws in the country and are they consistent with the business model of Pizza
Hut. For example Uber employment system is not consistent with French laws and it is facing challenges in the country.

- Consumer Protection Laws – Pizza Hut needs to know what are the consumer laws, what is the rate of enforcement, what is
the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer
protection laws.

- Intellectual Property Rights Protection – Pizza Hut should assess the level of protection that intellectual property rights get
under the legal system of the country.
 Proposed solutions

 Maintenance management
 Material management
 Incease number of employees
 Work on the feedback given by the customers
 Technological upgradation
EVALUATION OF EACH ALTERNATIVE
 MAINTAINANCE MANAGEMENT- THERE SHOULD BE THE PROPER STAFF TO
MANAGE THE THINGS LIKE REPAIRING MACHINES, CHANGING TEMPREATURE
ETC TO AVOID THE WASTE OF TIME.

 MATERIAL MANAGEMENT- SINCE PIZZA HUT HAS MOST OF ITS INPUTS

{ VEGETABLES, CHEESE, TOPPING, SAUSE ETC} TO BE STORED AT A PARTICULAR
LEVEL OF TEMPRETURE TO REDUCE LOSS DUE TO SPOILAGE AND ALSO IT
AFFECTS THE FRESHNESS OF THE INGREDIENTS OF INPUTS.

 INCREASE NUMBER OF EMPLOYEES- as constant need and assured supply for

adequate manpower to run the outlets.
WORK ON FEEDBACK GIVEN BY THE CUSTOMER- assign more staff for customer
service and work on the feedback of the customers.

TECHNOLOGICAL UPGRADATION- now a days technology is improving so pizza hut has

to keep track with with it or else its compititors will take advantage of it
 CONCLUSION
PIZZA HUT CAPTURES 27% MARKET SHARE OF THE EATING-OUT MATKET IN INDIA
AND WITH OVER 70,OOO FOOTFALLS PER DAY ACROSS THE COUNTRY. IT CLAIMS TO
PROVIDE DINER WITH THE IDEAL PLACE TO BUILD MEMORIES AND RELATIONSHIPS
OVER DELICIOUS FOOD.

LOCATION: THE MOST CRITICAL SUCCESS FACTOR FOR ANY HOSPITALITY BUISNESS
IS “LOCATION”. PIZZA HUT DOES NOT AIM TO BE A PREMIUM BRAND WITH
SELECTIVE DISTRIBUTION, INSTEAD IT AIMS TO BE MAKE ITSELF AVAILABLE
ANYWHERE AND EVERYWHERE.THUS PIZZA HUT MUST INCREASE ITS COVERAGE.

BESIDES OFFERING AN EXTENSIVE RANGE OF VEGETERIAN PIZZAS, IT WAS THE FIRST

PIZZA CHAINTO OPEN A 100 PERCENT VEGETERIAN RESTAURNT IN INDIA. WHERE IT
OFFERS A JAIN MENU SANS ALL ROOT-BASED INGRIDIENTS.
THANKYOU