Project Report on Pizza Hut

(MARKETING RESEARCH)
Year-2011

Submitted under supervision of: Submitted by:

Dr. Anjali Malik Rishi Raj Bora

Mrs. Yogita Singh Sahil Bhansal

Rima Sharma

Riya Sharma

Rajeev Yadav

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 Acknowledgement

Through this acknowledgment, we express our sincere gratitude to all those people who
have been associated with this assignment and have helped us with it and made it a
worthwhile experience.

Firstly we extend our thanks to the various people and our group members who have shared
their opinions and experiences through which we received the required information crucial
for our report.

Finally, we express our thanks and gratitude to Faculty Dr. Anjali Malik who gave us this
opportunity to learn the subject in a practical approach and guided us and gave us valuable
suggestions regarding the project report. We also warmly thank to Mrs. Yogita Singh for her
great response and contribution in making our project a fruitful one.

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 Certificate of authentication

This is to certify that the Project report is genuinely made by Rishi Raj Bora, Rima Sharma,
Sahil Bansal, Rahul Goyal, Riya Sharma, Rajeev Yadav and Rahul Goyal and no
plagiarism is done. The project is done on the topic “Marketing research on Perceptual
mapping on customer of Pizza Hut” under the guidance of Mrs. Anjali Malik and have been
completed successfully.

Faculty: Dr. Anjali Malik/ Students:

Mrs Yogita Singh (Sec-G)

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 Table of Contents

 List of Graphs...........................................................................5
 List of Tables............................................................................6
 List of Appendices....................................................................7
 Executive Summary..................................................................8
 Introduction and brief history of Pizza Hut...............................9
 Perceptual mapping of Customer..............................................10
 Problem definition....................................................................12
 Literature review and research design......................................13
 Information need.......................................................................14
 Data analysis.............................................................................15
 Results.......................................................................................16
 Limitations.................................................................................26
 Conclusions and recommendation.............................................27
 References..................................................................................28
 Exhibits......................................................................................29

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 List of Graphs

 Figure 1.1...................................16

 Figure 1.2...................................16

 Figure 1.3...................................17

 Figure 1.4...................................17

 Figure 1.5...................................19

 Figure 1.6...................................19

 Figure 1.7...................................20

 Figure 1.8...................................20

 Figure 1.9...................................20

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 List of Tables

 Tab1.1..........................................................17

 Tab 1.2........................................................18

 Tab1.3........................................................18

 Tab1.4........................................................19

 Tab 1.5........................................................21

 Tab 1.6........................................................21

 Tab 1.7........................................................22

 Tab 1.8........................................................23

 Tab 1.9........................................................23

 Tab 1.10........................................................24

 Tab1.11........................................................25

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 List of appendices

 Questionnaire....................................30

 Statistical Output.............................. 31

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 Executive Summary

Pizza Hut has been consistently doing well in food chain business
since past four decades. It has built its reputation and brand image
through rigorous competitiveness and commitment for quality product
and service. Pizza Hut name is all for food lovers for service and
varieties provided to them.
The report mainly emphasis on “Perception mapping of Pizza Hut
customers” . Through this project we are able to find out basic
Customer wish, wants and needs which they would like to see in
Pizza Hut. The following tells about project briefly:
a) Major Findings- The major exploration done by us is that
customer are variables factors which cause a change in decision
policies of an organisation. Price, product, taste and all other
attributes are dependent on constant customers. So customer
loyalty built up is outmost requirement for an organisation
b) Conclusion-The only magic which binds the organisation into
one is create an congenial environment for the customer to know
customer in better way.
c) Recommendation- Pizza Hut has to concentrate more on
consumer behaviour within ,This will help in progress of organisation.

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 Brief introduction and 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, Pizza Hut opened its first UK restaurant and since then Pizza Hut become one of
the biggest Pizza Company on the planet!
 2008Pizza Hut bought Godfather's Pizza in Ireland with 28 stores. We also launched our Pepperoni
Stuffed Crust & Garlic Crust pizzas, larger 4 for ALL and a new range of Tuscani pastas in the UK.
Chicken Alfredo
 2007Pizza Hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in restaurants.
 2006Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now
100% owned by Yum! Cheesy Bites was launched! There were now 697 restaurants in the UK, with
154 stores as a franchise owned by 61 franchisees.
 2005The 4forALL was launched. Over 600 restaurants were open in the UK, 70 of them as Franchise
units.
 2004Pizza Hut launched The Big New Yorker.
 2003500 restaurants were now open throughout the UK, employing over 20,000 people.
 2002Tricon Global became YUM! Brands Inc. The Quad Pizza was launched in the UK, as Pizza Hut
opens its 500th restaurant. A & W and Long John Silver's join the Yum brand.
YUM! Brands inc
 2001Pizza Hut began a franchising programme with its delivery stores.
 2000Pizza Hut introduced The Edge, a thin pizza with toppings all the way round the edge.
 1999Pizza Hut had over 400 restaurants, employing 14000 people. The Italian Pizza was launched in
the UK.
The Edge
 1998Pan Pizza was relaunched as Grand Pan.
 1997PepsiCo 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
Whitbread. The Sicilian Pizza was launched in the UK, where there were 277 restaurants and 100
delivery stores.
 1995Stuffed Crust was launched in the UK.
Stuffed Crust
 199410,000 Pizza Huts were open for business.
 1993There were 300 restaurants and delivery stores in the UK.
 1992There were 9,000 restaurants in 84 countries.
 1990Pizza Hut warmed the cold shores of Russia. In the UK there were now 200 restaurants.
 1989The first restaurant was converted into a Restaurant Based Delivery store.
Delivery Unit
 1988The UK's first delivery unit was opened in Kingsbury, London.
 1987An average of one restaurant opened each week in the UK.
 1986By now, there were 100 restaurants in the UK and 5000 world wide.
 1984Over 50 restaurants so far in the UK.
 1982The UK joint venture started between PepsiCo and Whitbread.
Pan Pizza
 1980Pan Pizza was Introduced.
 1977PepsiCo bought Pizza Hut.
 1973Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza
Hut opened in Islington, London.
 19721000 restaurants are open throughout the USA.
 1958Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas

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 Perceptual Mapping of Customer

Perceptual mapping has been used as a strategic management tool for about thirty years. It offers a
unique ability to communicate the complex relationships between marketplace competitors and the
criteria used by buyers in making purchase decisions and recommendations. Its powerful graphic
simplicity appeals to senior management and can stimulate discussion and strategic thinking at all
levels of all types of organizations. Perceptual mapping can be used to plot the interrelationships of
consumer products, industrial goods, institutions, as well as populations. Virtually any subjects that
can be rated on a range of attributes can be mapped to show their relative positions in relation both to
other subjects as well as to the evaluative attributes. Perceptual maps may be used for market
segmentation, concept development and evaluation, and tracking changes in marketplace perceptions
among other uses. Perceptual mapping involves two steps: (1) data collection and (2) data analysis
and presentation.

Data Collection

Among the various mathematical and statistical methods used to produce perceptual maps,
POPULUS has found—and published research to this effect—that multiple discriminant analysis
provides the most reliable methodology. Among the reasons for this are:

1. Discriminant analysis has a close linkage between product points and attribute locations.

2. Discriminant analysis maps do not change if attributes are added that are linear combinations of
those already present in the perceptual space.

3. Discriminant analysis is alone in paying attention to “between product” information, after scaling it
so that “within product” differences are equal for each dimension and uncorrelated. That means that
DA uses a “yardstick” to give every dimension common metric (in terms of equal unexplained
variance).

4. Discriminant analysis is the most efficient method in terms of cramming into a space of low
dimensionality the most information about how products differ.

5. Unlike mapping based on distances or similarities, DA make use of attribute ratings, which are easy
and natural for respondents, and useful for their content even if mapping is not done with them.

6. POPULUS research [Fiedler, 1996] has shown that DA was more successful that Correspondence
Analysis at reproducing a known map when the data were distorted in various ways. Employing this
methodology, respondents are never asked about similarities among products or subjects; they are
asked to rate products on attributes, and similarities are inferred from differences in respondents’
ratings. POPULUS - 2 - Perceptual MappingThe data required for perceptual mapping thus comes
from rating scales where the subjects of the map, from products to populations, are described on the
basis of selected attributes. The validity of the map depends on both the overall set of attributes and
the subjects of the study as well as the subset of attributes and subjects evaluated by each respondent.
Most studies suffer from too many attributes. Manufacturers and service providers see hundreds of
ways in which their products and services differ—or might differ—from those of their competitors.
Often the research analyst is unable to impose thediscipline necessary to develop a reasonably short
list of attributes. In most studies, it is usually desirable (or necessary) to select a subset of attributes
for respondents to rate. This can be accomplished by using one of two approaches:

1. Select a subset of most important attributes. Each respondent rates all attributes on importance. The
questionnaire is programmed to select a subset of theimportant attributes for rating. This may assure
more meaningful questionnaires for respondents.

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2. Randomly select a subset of attributes. The questionnaire randomly selects a subset of attributes for
each respondent. This has the advantage that there will be roughly equal sample sizes for each of the
evaluative criteria. The obvious disadvantage is that the respondent task may be less interesting.

Research by POPULUS has shown that the first alternative provides for a greater correlation between
discrimination and importance..

Data Analysis and Presentation

Multiple discriminant analysis uses the “F ratio” to determine attribute and product or subject
location in the perceptual space. The F ratio is a ratio of the variance between ratings of
different products/subjects to the variance of ratings within products/subjects. In an attribute
study, these variations among ratings are generally of two types:
1. The differences between products/subjects, revealed in the difference betweenaverage
ratings for different products.
2. The differences within products, revealed in the differences among respondents’ ratings of
the same product.
An attribute would have a higher F ratio either if its product averages were more different
from one another, or if there were more agreement among respondents rating the same
product.
Multiple discriminant analysis finds the optimal weighted combination of all the attributes
which would produce the highest F ratio of between-product to within the product variation.
That weighted combination of attributes becomes the first dimension of the perceptual map.

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 Problem Definition

Statement to the Problem:

“Knowing Customer loyalty and Perceptual elements for overall
qualitative and quantitative improvement in service of an
Organisation”.

Background of the problem:

Pizza Hut deals with many customers on daily basis. Pizza Hut is
successful in timely delivery of food product demanded by Customer.
It has also expertise in making customer comfortable and relaxed with
their delicious food and courteousness.
Pizza hut is located almost every country, even though as a giant food
chain company it is not easy to handle and know the customers mind
and perception about the company as different people from different
places have different tastes, preferences and outlook about the food,
price, locality and services.
The research is conducted to know the overall wants, need, choice and
wish of the valuable Customer so that Pizza Hut can create
uniqueness and create value to their product and service from other
competitors like Dominos and Uncle Sam Pizza.

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 Literature Review

It was a pioneer research that we conducted and there was no

secondary research available.

Research Design
The research we conducted is descriptive as well as theoretical in
nature.

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 Information Need

 Data Collection
There was no secondary data available in the context for Pizza Hut. We
collected primary data from people. Secondary data are kept confidential and
not allowed to be published by Pizza hut for the reason of misuse of
information.

 Scaling Technique
We used likert, nominal, completion of data (descriptive) and ordinal scale
technique in our questionnaires.

 Questionnaire Development

While developing the questionnaire, we focused mainly on questions that

showed the preference of the fast-food customers with respect to food quality,
price, environment, services etc and could give us a clear impact of the most
preferred element.

 Pre-Testing

We approached for guidance to our faculty Dr. Anjali Malik and through her
precious advise we improved upon our questionnaire. We cross-checked the
questionnaire among our group members for under stability, easiness, more
interesting and less time consuming.

 Sampling Techniques

The sampling technique used by us in the research is Judgemental sampling.

 Field Work

The group has planned and divided its task according to plan. We divided our
questionnaire to all the group members in which they were assigned to fill up
the forms through different people they meet. This made our field work more
faster, reliable and less energy wasting. The form were mainly field in
premises of Huda market.

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 Data Analysis

 Population-
The population for our research consist of mainly people
from Huda market, Centrum Plaza and service people of
PG.

 Sample Size
The sample size was 50 as per standard given to us.

 Methodology
We have tried our best to relate the various datas with
concepts taught to us. We are taking the help of excel
sheet for calculation of datas, spss software for evaluation
purpose and pie chart for pictorial demonstration of data to
make our study more clear.
The main tools used are chi-square, frequency and
regression and anova with cross tabulation .

 Plan of the data analysis

-We scrutinised our questionnaire which match our
requirement best.
-Arranged the datas according to requirement.
-Feed the datas in proper order and check out the errors.
-For generation of result and evaluation we used spss
software and Microsoft excel sheet.
-The analysis part are checked and finally passed by all the
group members.
-The report is finally send for recheck by the faculty.

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 Results

The following are the results we have found through various sources:-
Crosstabs-

Fig 1.1

Fig 1.2

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Fig 1.3

Fig 1.4

Crosstab

Count

Price

Low Low-Med Low-Med Med Med Med-High

prefer_Piz_Yes_no Yes 4 3 2 3 2 5

No 7 1 5 3 3 4

Total 11 4 7 6 5 9

Tab1.1

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 Crosstab

Count

Price

Med-High High High Total

prefer_Piz_Yes_no Yes 3 1 1 24

No 1 2 0 26

Total 4 3 1 50

Tab1.2

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 5.677a 8 .683

Likelihood Ratio 6.209 8 .624

Linear-by-Linear Association .988 1 .320

N of Valid Cases 50

Tab 1.4 a. 16 cells (88.9%) have expected count less than 5. The minimum expected count is .48.

Explanation and findings- Through the bar graph and chi-square we found the
various variables as the index is divided into low, low medium, medium , medium
high, high we can find out that is preference is more for pizza hut as comparison to
others while comparing with various attributes. The various counts contribute to
know about various levels of likings and disliking by customers through yes and no
index.
The pearson chi is 5.677 which is comparatively favourable. Livelihood ratio is
6.209 which is sustainable. the yes condition variable is 3,1and 1 and no variable is
1,2 and 0 which means Pizza hut suits customer preference.

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 Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 5.677a 8 .683

Likelihood Ratio 6.209 8 .624

Linear-by-Linear Association .988 1 .320

N of Valid Cases 50

Frequency

Fig 1.5

Fig1.6

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fig 1.9

fig 1.8

fig1.9

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 prefer_Piz_Yes_no

Valid Cumulative
Frequency Percent Percent Percent

Valid Yes 24 48.0 48.0 48.0

No 26 52.0 52.0 100.0

Total 50 100.0 100.0

Tab 1.5

Pizza hut Price

Cumulative
Frequency Percent Valid Percent Percent

Valid Low 3 6.0 6.0 6.0

Low 5 10.0 10.0 16.0

Low-Med 7 14.0 14.0 30.0

Low-Med 2 4.0 4.0 34.0

Med 5 10.0 10.0 44.0

Med 5 10.0 10.0 54.0

Med-High 9 18.0 18.0 72.0

Med-High 6 12.0 12.0 84.0

High 6 12.0 12.0 96.0

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 High 2 4.0 4.0 100.0

Total 50 100.0 100.0

Tab 1.6

Pizza hut Taste

Cumulative
Frequency Percent Valid Percent Percent

Valid Low 1 2.0 2.0 2.0

Low 1 2.0 2.0 4.0

Low-Med 1 2.0 2.0 6.0

Low-Med 7 14.0 14.0 20.0

Med 7 14.0 14.0 34.0

Med 4 8.0 8.0 42.0

Med-High 5 10.0 10.0 52.0

Med-High 13 26.0 26.0 78.0

High 6 12.0 12.0 90.0

High 5 10.0 10.0 100.0

Total 50 100.0 100.0

Tab 1.7

Pizza hut Variety

Cumulative
Frequency Percent Valid Percent Percent

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Valid Low 5 10.0 10.0 10.0

Low 1 2.0 2.0 12.0

Low-Med 5 10.0 10.0 22.0

Low-Med 4 8.0 8.0 30.0

Med 2 4.0 4.0 34.0

Med 2 4.0 4.0 38.0

Med-High 10 20.0 20.0 58.0

Med-High 11 22.0 22.0 80.0

High 9 18.0 18.0 98.0

High 1 2.0 2.0 100.0

Total 50 100.0 100.0

Tab1.8

Pizza hut Ambience

Cumulative
Frequency Percent Valid Percent Percent

Valid Low 5 10.0 10.0 10.0

Low 3 6.0 6.0 16.0

Low-Med 4 8.0 8.0 24.0

Med 7 14.0 14.0 38.0

Med 4 8.0 8.0 46.0

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 Med-High 6 12.0 12.0 58.0

Med-High 8 16.0 16.0 74.0

High 8 16.0 16.0 90.0

High 5 10.0 10.0 100.0

Total 50 100.0 100.0

Tab1.9

Pizza hut Hospitality

Cumulative
Frequency Percent Valid Percent Percent

Valid Low 5 10.0 10.0 10.0

Low 1 2.0 2.0 12.0

Low-Med 7 14.0 14.0 26.0

Low-Med 4 8.0 8.0 34.0

Med 4 8.0 8.0 42.0

Med 2 4.0 4.0 46.0

Med-High 5 10.0 10.0 56.0

Med-High 10 20.0 20.0 76.0

High 9 18.0 18.0 94.0

High 3 6.0 6.0 100.0

Total 50 100.0 100.0

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 ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 7.144 24 .298 1.412 .202a

Residual 5.060 24 .211

Total 12.204 48

 Tab1.11

Explaination and findings- Through the frequency table and bar diagram and
anova we found out the various arithmetic mean and median quantity of
preferences of customers. Attributes like taste, ambience, hospitality shows in
bar diagram shows all the variation in changes of customer with context to
variables.

The valid frequency is 24 and no is 26 which means an improvement has to be

done on consumer preference as well The Anova showing the sum of squares
states the regression level is 7.1 residual value is 5.06 where the total comes out
to be 12.204.

The total of pizza hut price c.f is 100,taste, variety remains constant to
100.Detailed evaluation and analysis of the given result we conclude
that the overall performance of Pizza hut is more than average which
means Pizza Hut is acceptable by customers .Various attributes like
Hygiene factor, Service satisfaction, Consumer eatery preferences,
delivery services has shown a pleasant result for Pizza hut.
The consumer preference and perception study can enhance the
prosperity and growth of Pizza Hut. The customer choice directly and
indirectly influences the development of Pizza Hut.
Hence perceptual mapping has definitely helped us and Pizza Hut to
know the consumer through this analysis.
Thus the hypothesis statement has been proved right.

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 Limitations

- The findings are limited to Gurgaon area only. If the study was
conducted in other areas also the picture might have been
different and surprising.

- Some views of the people were bias and also unwilling to fill the
form due to time constrain.

- Limited time and budget to complete the project.

- Group availability and communication at certain point of time

was not easily available.

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 Conclusion and Recommendations

At the end we would recommend that in this modern competitive

world knowing customer is must to survive and to be in superior stage
.Tools like perceptual mapping truly helps in knowing Customer but it
is not sufficient to know all the factors. Other factors like brand
loyalty, quality management study, work and motion study should
also be taken care of for overall growth of the organisation. The
Organisation sustains with satisfaction of customer.

"He profits most who serves best."

-Arthur F. Sheldon

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 References

 www.scribd.com

 www.google.com

 www.pizzahut.com

 www.businessdictionary.com

 www.managementparadise.com

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 Exhibits

a) Questionnaire and format.

b) Statistical Output.

Submitting with Thanks

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