MARKETING OVERVIEW

OF

By
Danish Khan
Waseem Hassan

1706

HISTORY OF PIZZA HUT

The legacy of Pizza Hut began in 1958, when two college students from
Wichita, Kansas, Frank and Dan Carney decided to open a Pizza parlor

They borrow $600 from their mother and they purchased some second
hand equipment and rented a small building on a busy intersection in
their hometown

Pizza Hut, a division of Tricon Global Restaurants, Inc., has more than
7,800 units in the U.S. and 3,200 units in more than 86 other countries
Their products have been voted Number One in countless consumer
surveys nationwide.
In 2008 Pizza hut history was made again, when they were the first
national pizza franchise to allow their customers to
order online in Spanish

The First Pizza Hut at Wichita, Kansas

PIZZA HUT IN PAKISTAN

Pizza Hut started its operations in Pakistan on December 23, 1993
Under the management of HABIB OILS MILLS (Pvt) Ltd HOM.

Presently it have total of thirty seven outlets in the country seventee

Karachi, twelve in Lahore, one in Hyderabad, one in Peshawar, one in
Faisalabad, one in Sialkot, one in Peshawar and three in Islamabad.

When Pizza Hut came to Pakistan, youth rose to this occasion and
responded with glee and appreciation to the very high and demanding
standards that Pizza Hut has set for itself.

Every Great length journey starts with a small step

PRODUCT
Pizza Hut has a wide assortment of products ranging from hot selling
Pizza to salads, lasagnas to sandwiches and appetizers to desserts
Keeping in mind the tastes of its target market, Pizza Hut keeps on
adding a number of products on its menu
Moreover, Pizza Hut eliminates out items which are obsolete or not
liked by Customers to insure the new range of Pizzas.
Pizza Hut assures high quality food and this is made possible due to
well-organized procedures, latest technology and imported raw
materials
Pizza Hut has a separate quality control management system, which
assures that the products are up to the standard mark.

PRICE
The management frequently brings about variations in its pricing
strategies to cater to the diversified market of its products
In order to penetrate into their targeted segments, Pizza Hut seeks
help from Promotional Pricing and Discount Pricing .
Price has never been Pizza Huts unique selling preposition as most
of the raw materials are imported so because of this factor the prices
are little high

PROMOTION
Companies engage in promotional activities to communicate with
customers or clients.

There are basically five forms of promotion: personal selling, advertisi

sales promotion, public relations and publicity
The most commonly used form of promotion adopted by Pizza Hut is
advertising through Billboard signs and prints (Newspapers and
magazines).
Some of the promotional schemes carried out by Pizza Hut in order to
attract more customers and increase sales.

Pizza hut is the one who has introduced the concept of Midnight deals
concept Pakistan

PLACE
The strong and wide distribution network of Pizza Hut play a vital role
grabbing the maximum market share in Pakistan.
Pizza Hut currently has seventeen operational units in Karachi.
Pizza Hut also has a free home delivery system.
And it has introduced the mobile unit i.e. PIZZA ON WHEELS at
different places in the city.
It is catering all the visitors and the people living the areas near by.

Product Life Cycle

Pizza Hut is in its maturity stage, the sales of Pizza Hut have risen
considerably. It has recently been classified the highest selling outlet
in Asia
As a rough about percentage its sales have increased by about
25% from last year and 65% from the year before that
Now even people who were unaware of Pizza Hut have become
aware of the incomparable food and services attained through
experience and also from hearing favorable words by its valued
customers.
The market share of Pizza Hut is increasing and more and more
people are turning towards Pizza Hut.

PRODUCT LIFE CYCLE

Maturity

Growth

Introduction

MARKET SEGMENTATION
Pizza Hut believes in customer orientation, it segments its market
on the basis of different dimensions such as:
Geographic,
Demographic,
Psychographic.

Geographic

Pizza Hut subdivides its markets on the basis of its branch locations in
Karachi. At present, it has 17 branches in Karachi alone and
therefore, the geographic distribution of its segments can be
categorized in the following way:
o
o
o
o

A category market- customers residing in Clifton and Defense.

B category market- customers living in PECHS and SMCHS.
C category market- customers dwelling in Nazimabad and Gulshan.
D category market- customers residing in the busy commercial area
of I.I. Chundrigar road.

MARKET SEGMENTATION
Demographic
Pizza Hut segments its market on the basis of a wide number of vital
statistics that describe its markets such as age, income, family size and
education. Initially, it targeted the higher income groups belonging to the
posh localities.
Later, it redefined its segmenting strategy and shifted to the lower and
middle classes families of the society to capture a huge market.

Psychographics
In Pizza Hut, there are basically two broad segments, mainly
People coming to have fun and enjoy themselves.
People coming for quality food.
Many teenagers are seen with their friends enjoying the dining experience
at Pizza Hut. The music at the time of the teenagers is specifically catered
to their needs.

MICRO ENVIRONMENT
Customers

The management at Pizza Hut believes that customers are an integral

part of the marketing environment
In order to form a long lasting relationship with customers, several
steps are taken such as the offering of attracted discounts, deals ,
acceptance of credit cards , arranging special events (e.g. independence day, Eid, Valentines day, New Years eve, Ramadan etc),
providing free home delivery and take away.
Pizza Hut teaches its employees in the initial training to treat every
customer with care.

Furthermore, the customers are treated with utmost respect and their
complaints are given due importance by the waiters and the branch
managers

MICRO ENVIRONMENT
Suppliers
The raw material of Pizza hut comes from two sources i.e. from local
market and as well as from foreign market.
They import about 60% raw material from foreign countries and 40%
from Local suppliers
In case of drinks, Pizza Hut has a contract with Pepsi. Cheese
are imported from Australia where the parent company is situated.

Work Force
The management at Pizza Hut realizes the importance of a
competent and friendly work force in the success of its business.

The employees are trained to serve the customers in a courteous and

friendly manner in order to create a homely atmosphere.
Fringe benefits and performance rewards are common means of
motivating the staff.

MACRO ENVIRONMENT
Demographic
Since, the population of Pakistan is increasing at a rapid rate, it
comprises mainly of younger generation which are fond of dining
out. Realizing this fact, Pizza Hut exploits the situation in its favor by
attracting the younger population.

In conjunction with the idea of joint family system in Pakistan, the

outlets also encourage the visits by families by offering facilities such
as the video games, goody bags and coloring kits for children.
After 8:00 p.m. each day, especially on weekends, the most regular
visitors are families.

Pizza Hut apparently caters to the upper and the middle classes of th
society. Since, it has branches in Karachi, Lahore, Islamabad, Multan,
Faisalabad, Sialkot, Peshawar and Hyderabad, it only caters to the
Urban population.

MACRO ENVIRONMENT
Economic
As far as the economic conditions of Pakistan are concerned, the
picture is very disappointing. The economy is in a state of economic
recession and the economy is not growing.

This effects Pizza Hut negatively because the economic environment

is not conducive to growth. The rate of inflation is very high, which
poses a serious problem for Pizza Hut. In spite of this fact, Pizza Hut h
not increased the prices of its menu since the last couple of years.

Technological
Being a multi-national company, Pizza Hut recognizes the importance
of technology in the operations and success of its business.

It has imported costly machines for the preparation of pizza such as

the one used for making the bread (at a precise temperature of 41C)
and an entire freezing unit to keep the salads fresh for at least two da

COMPETITORS

The competitive environment directly influences a businesss marketi

program. In the case of Pizza Hut, the business may face little or no
competition in respect to brand competition. which comes from the
marketers of directly similar products.

Pizza Huts management feels that it does not have any real
competition from a pizza selling business (except for Ginos in Lahore)
and is regarded as the largest pizza parlor chain in the world with the
added advantage of a strong brand name and solid clientele.
Restaurant goers have a wide range of alternatives to choose from
such as McDonalds, KFC etc. But management believes that the
inception of the operations by KFC and McDonalds does not create
any threat as they have a different orientation altogether.

Pizza Hut is a favorite hangout place for many people as it specializes

in many types of supreme quality pizzas while the other fast foods ha
a limited menu.

MARKET SHARE

Pizza Next
10%

Papa Johns
5%

Dominos
5%

Pizza Hut
80%

INDIRECT MARKET SHARE

ADVERTISMENT
Electronic Media
The electronic media is the most commonly used in medium in the
world of the marketing. In their advertisements, you will see a series
of hot and yummy pizzas. Currently they are celebrating their 15th
anniversary in Pakistan.

Print Media

Their print media is consist of a series of advertisements depicting

the brand personality in magazines and newspapers. These magazine
are oriented towards teenagers and families of affordable class.
Specific issues of newspapers such as Images in Dawn and You in
The News also serves as important media for their product image
as of Biggest Brand for Pizza Lovers.

Bill Boards
Billboards at strategic locations are placed in different different key
areas, in all the major cities where they are present this channel of
advertisement is being used as an important medium.

Special Thanks
Mr. Muhammad Raiyed Khan
Restaurant General Manager
Pizza Hut
North Nazimabad
Karachi.

Thank You