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RESEARCH METHODLOGY THE PIZZA HUT STORY

TOPIC PIZZA HUT

SUBMITTED BY M.COM(PART-II)SEMESTER-3 PROJECT GUIDE PROF.PRAJNA SHETTY SUBMITTED TO UNIVERSITY OF MUMBAI AFFILIATED TO UNIVERSITY OF MUUMBAI ACCREDITED BY NAAC WITH AGRADE & DURGADEVI SARAF JUNIOR COLLEGE (ARTS & COMMERCE) S.V.ROAD,MALAD(W) MUMBAI 400064 YEAR:2013-2014

CERTIFICATE
I Prof.PRAJNA SHETTY. here by certify that MS.RESHA MEHTA a student of ghanshyamdas saraf college of m.com part II (semister 3)has completed project on PIZZA

HUT in the academic year 2013-2014.this information


submitted is true and original to the best of my knowledge. External examiner principal
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Date: Project co-ordinator seal Date: college

ACKNOWLEDGEMENT
I take this opportunity to thank the university of Mumbai for giving me a chance to do this project. I express my sincere gratitude to the principal course co-ordinator Prof.Prajna Shetty and our librarian and other teachers for their constant support and helping for completing the project. I am also grateful to my friends for giving support in my project lastly I would like to thank each and every person who helped me in completing the project especially my parents.

DECLARATION
I Miss.Resha Mehta a student of ghanshaymdas saraf college of art and commerce, malad (w) M.COM PATR (II) (SEMESTER 3) hereby declared that I have completed project on PIZZA HUT In the academic year 2013-2014.This information submitted is true and original to best of my knowledge.

Date: student

signature of

LETTER OF TRANSMITTAL We enjoyed doing this project as it gave us a great experience and more exposure to the MARKETING WORLD. We came across different people having different kinds of experiences and enjoyed listening to them and getting the questionnaires filled by them. At the same time there were some constraints too, that we had to face. This mainly included the time constraint and the non- cooperation of people. Still we found it very interesting and are thankful to our respected teacher who gave us the opportunity and moral support to conduct this research.

TABLE OF CONTENTS

List of Charts. List of Appendices. Executive Summary... Introduction.... Problem Definition Literature Review.. Research Design Information Needs. Data Analysis. Results Limitations. Conclusion And Recommendations... Appendice... Swot analysis

EXECUTIVE SUMMARY The research report includes our research about Pizza Hut to analyze the most important element for its profitability. In this research we conducted a customer analysis in which we asked the customers their preferences for going to any fast food restaurant. We also asked them about their experiences in Pizza Hut, every time they visit there. This helped us making a broad perception about the future sales and profitability of Pizza Hut and what Pizza Hut needs to do to maintain its image and retain the customers.

INTRODUCTION
Pizza Hut takes great pride and care to provide its customers with the best food and dining experience in the quick-service restaurant business. It has its 34 outlets in 9 different cities of Pakistan that include: Rawalpindi Islamabad Peshawar Lahore Faisalabad Sialkot Multan Hyderabad Karachi

Pizza hut has been a renowned restaurant since 1958. it has maintained its quality and goodwill since then. It has also been awarded as the best restaurant chain internationally. The history of Pizza Hut comes a long way from 1958. On May 31st 1958, the first Pizza Hut restaurant opened in Wichita, Kansas, started by two college aged brothers who borrowed $600 from their mother. In 1959, Pizza Hut got incorporated in Kansas and the first franchise unit opened in Topeka, Kansa.In 1964 The basic freestanding design of Pizza Hut was adopted. In 1966 Pizza Huts first Home Office was built in Wichita, Kansas to handle the business of now 145 Pizza Restaurants. In 1967 Nine- inch tall Pizza Pete dolls became available at all Pizza Huts restaurants. In 1969, the familiar top roof was adopted for Pizza Huts restaurants. In 1971, Pizza Hut became the number one Pizza restaurant chain in the world in both sales and number of restaurants. In 1972, Pizza Hut Inc. was listed on the New York Stock Exchange under the symbol PIZ, and restaurant number 1000 opened in Wichita, Kansas. Pizza Huts goes International as a restaurant opened in Costa Risa. In 1976, The 100th International Pizza restaurant opened in Australia while the entire number reaches 2000 restaurants. In 1977, Pizza Hut Stakeholders merged with Pepsi Co. In 1983, Pizza Hut celebrated its 25 th Anniversary. In 1986, Pizza

Huts started its Home Delivery service. In 1995, Pizza Hut launched its Stuffed Crust Pizza, which immediately set companys sales records. In 2007, Pizza Hut offered online ordering at all of their 65,000 locations. In 2008, Pizza Hut introduced Total Mobile Access- the ability for customers to order by text messaging or using their web enabled cell phones.

PROBLEM DEFINITION Statement of the problem: Quality is pivotal element for customer retention and growth Background of the problem:

Pizza Hut has always been successful in delivering the best fastfood. It has gained many customers throughout the world and has always been working on customer- retention. This research is conducted as Pizza Hut wants to know the preferences of their current valued customers so that they can serve them in a more satisfactory way and improve their overall performance.

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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.

INFORMATION NEEDS Data collection:

There was no secondary data available in this context for Pizza Hut. We collected primary data from people.
Scaling Technique:

We used the questionnaires.

non-comparitive

scaling

technique

in

our

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:

In pre-testing we got the questionnaires filled by 10 people from within our population. There was no problem faced by the population and they found the questionnaire easy to understand and fill and we could also figure out the results from the answers. Thus, we felt no need of any change in the questionnaire.
Sampling Techniques:

The sampling technique used by us in this research is Judgmental Sampling.

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Field Work:

We were two people to get the questionnaires filled. We got them filled within the premises of Fatimah Jinnah Women University.

DATA ANALYSIS Population:

The population for our research were all the students of Fatimah Jinnah University.
Sample:

We took sample size of 20 students.


Method:

We analyzed the results by making pie charts for all questions.

RESEARCH METHODOLOGY

The research process is carried out according to a designated series of steps, which are required to be taken in a chronological order. Fundamental to the success of any research project is sound research design. It is the framework or plan for a study that guides the collection and analysis of data. The research design used for this project is exploratory in nature. The major emphasis is on the discovery of ideas. The exploratory study is also used to increase the analyst familiarity with the problem under investigation.
Sample Design Target population

Those who have regularly visited in the fast-food Sampling unit 12

Delhi market is treated as sampling unit. Sample size: 100.


Data Collection Primary Data

Primary data has been collected through surveyed to the consumer.


Secondary Data

Secondary data has been collected from the companys information brochure and internet.
OBJECTIVES OF STUDY To study how direct marketing is done by PIZZA HUT, to

substantiate its effort to strengthen its direct marketing. To study about PIZZA HUT as a brand in India. To know about the long and successful history of PIZZA HUT. To study the working and functioning of PIZZA HUT in India and the world. To study the taste and preferences of customers of PIZZA HUT. To study PIZZA HUTS and competitors strategies. To give recommendations and suggestions thereof.
SCOPE OF STUDY

The subject matter has been arranged in a Systematic manner, providing all the details and Explanations needed. Every effort has been taken by to make the Project report complete in itself. This report has been prepared after an in - depth Study of the companys main areas. This report has been divided into sections and sub sections for a better understanding.
TYPE OF DATA COLLECTED A) DATA COLLECTION 1) PRIMARY SOURCE

RETAILERS CONSUMERS DISTRIBUTORS

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2) SECONDARY SOURCE

WEBSITES MAGAZINES AND NEWSPAPERS


RESEARCH TACTICS QUESTIONNAIRE

PERSONAL DISCUSSION AND INTERVIEW


STATISTICAL AND PRESENTATIONS TOOLS USED

PIE DIAGRAM BAR GRAPH

SWOT ANALYSIS
STRENGTHS It promises to deliver the pizzas in 30 minutes or offers
free pizzas if order doesnt reach on time, where as its competitors promise to deliver the pizzas in 39 minutes.

The way in which they do up their ambience, the


atmosphere, the sitting area, the way in which

They greet the customers and the way they sing and
make everyone have fun on occasions . A contemporary design split level seating, high ceiling and aesthetic pizza hut murals.

Pizza hut was the first to start online pizza delivery in

San Francisco, which still hasnt been started by any of its competitors.

Variety is the main strength they possess. They offer


pastas, spaghetti, garlic bread etc.

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They are known to modify their menu and ambience


according to occasions. e.g., they offer heart shaped pizzas on Valentines Day.

Pizza hut promotion schemes: DALLAS- national pizza


month, which was first time, celebrated by pizza hut. Their mission statement is UNBEATABLE PIZZAS AT UNBELIEVABLE PRICES.

When you call and order, they focus on cross selling


and up selling i.e.:suggesting new pasta dish to pizza lovers.

They build a training system that tracks user data and


transfers it via the Internet to document user skill set and needs analysis for any employee that might need improvement.

They offer 40% more ingredients per pizza than


competitor.

They have managed a perfect indianization of Italian


dishes like chickentikka etc.

WEAKNESSES:
Its focus on the delivery concept is not much as compared to its
competitor.

Their variety as far as pastas and spaghetti are concerned are


not much as compared to pizza express and pizza corner.

The prices at pizza hut are comparatively more expensive than


dominos.

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The pizza hut ad aaa she doesnt like pizzas has down rated
their salads just to prove their pizzas superior and they have shown that theirsalads are not good, this is a major weakness in their Advertisement.

One of the weaknesses of pizza hut is lack of efficient cold

chains in the country. The company surmounted this problem, by reducing the dependency on cold chains besides setting up its own infrastructure.

OPPORTUNITIES :
The first ad campaign on TV defines pizza hut as a brand and
what it offers to its existing and potential customers. In future, focus will be onother facets of the brand and offerings.

It could start on line delivery in India and other countries like it


has started in the U.S.

It could open more outlets in shopping malls, airports, railway


stations etc.

Mumbai is an important center, which has still not been tapped


by pizzahut. This city has a potential for 30 outlets.

To open an outlet in those areas where the competitors have


opened,like dominos in Agra etc.

THREATS:
Amul has come up with a 30 rupees pizza, which is a big threat to pizza hut at least in the short run if not in the long run. Variety in pizza express and pizza corner as far as pastas, spaghettis etc. are concerned is much much more, and this has been checked by us by looking at their menu cards.

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Dominos offers CHEESE WALA HUNGER a regular hand toast pizza for rupees 39. As mentioned earlier also they have downgraded their salads which itself becomes a threat to their salads available. Pizza corner has a backing of icici venture. It has hired world-class consultants to scrutinize its pizzas. They have an equity base of which icici holds 33%

MARKET SHARE AND SALES FIGURE OF PIZZA HUT AND COMPETITORS


MARKET SHARE The division of YUM! Brands operates the world's #1 pizza chain with more Than 12,600 outlets in more than 90 countries worldwide. Part of the largest restaurant chain in the world Over 20,000 franchises around the world Brand leader in the UK Innovative range of pizzas under one roof

Yum! on expansion drive


Nine years after opening its first outlet in India, Yum! Restaurants is planning add 36 outlets this year to the 98 Pizza Huts and six Kentucky Fried Chicken KFC) restaurants already operational across India. With this expansion drive (, Pizza Hut outlets will spread across 33 cities; while KFC will open in Kolkata and Hyderabad after having opened in Pune recently. Yum! Is also planning to expand into markets like Sri Lanka, Mauritius and Bangladesh. At present the restaurant chain
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has 20 outlets in Sri Lanka, 15 in Mauritius and has opened the first one in Bangladesh.
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SALES FIGURE
Key numbers for fiscal year ending December, 2007:
Sales: $26.0M

Pizza Hut is the largest pizza purveyor in the world, with 12,583 total restaurants and combination delivery/takeout units in 90 countries; 6,590 units are company-owned. Pizza Hut in sales in 1996 generated approximately 4.7 billion. (Chain STORE GUIDE) Domino's Pizza is the world leader in delivery, with 5,500 stores in 46 international markets .Domino's reached 2.8 billion in sales in 1996 Papa John's is considered the fastest growing franchise in the USA, with 1,160 units generating 383 million in sales in 1996. Store Guide.) Of 31,386 pizza franchise units in the United States, roughly 83 percent (24,381 stores) offer delivery, 91% offer takeout, and 51% offer dine-in service. Each year, thousands of people involved in the pizza industry attend Pizza Expo, the world's largest pizza-only trade show. Pizza Expo is held each year in Las Vegas, Nevada.
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PROMOTIONAL SCHEMES OF PIZZAHUT


PROMOTION
PIZZA HUT USES SEVERAL TYPES OF TECHNIQUES FOR
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ADVERTISING THEIR PRODUCT Pizzas- Just a phone call away: An important promotional strategy of Pizza Hut is free home delivery of Pizzas. Pizza hut promises to deliver pizzas in 30 min or offers free pizzas if order doesnt reach on time

DIRECT MARKETING OF PIZZA HUT


Direct marketing of Pizza hut is basically done after collecting the Database, when they have the database then they do the following things which are as follows: When a database is collected pizza hut does an analysis to know how often people in their database call them. Those customers who are enrolled in the executive category that is who calling the maximum number of times in a month are given preference over the others as far as their incentives and schemes are concerned.
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Pizza hut takes a very special care for their regular and frequent customers by personally giving them a telephone call to tell them about their new offers. The customers names, which have been listed in the database and have not ordered for a long time, are contacted personally to check on the satisfaction level of the customers. Pizza hut tries to establish an individual relationship with each of its customers. Pizza hut publicizes its new offerings by putting leaflets in the newspaper so that they can reach to their target audience.
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On special occasions like diwali they offer schemes like free personal pan pizza with an order of a medium pan pizza. On valentine a special heart shaped pizza is offered. 1. Whenever a customers call up pizza hut the employees first ask if they have ever ordered the pizza before if not then they ask for customer information like name, age, address etc 2. Pizza hut manages it database very well. They keep verifying their data against the original source by spotting mistakes and correcting them
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Every Christmas their database cranks out a list of their best customers for personally signed cards

DELIVERY

The company lays great emphasis of timely delivery of the products.. Progress is reviewed very frequently. Top management takes active interest in executing orders in time. The research also revealed data that 37% of the people of Ahmadabad prefer Jain meals (Jain food is not only vegetarian but devoid of roots and bulbs like onions, garlic, ginger, potatoes.) Therefore keeping this in mind, the restaurant will offer a choice of six Jain pizzas, Jain French bread, baked fresh with special herbs and a pre-mixed peanut celery pineapple salad. Pizza Hut has taken care to make special sauces which do not contain any garlic or onion.
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LIMITATIONS
In case of primary source, sometimes it was difficult to

contact or meet the professionals due to their busy work schedules. The company officials were reluctant to give exact pricing policies adopted by them. They were hesitant about giving details about their marketing strategies and money invested in advertisements. Personally contacting the employees was difficult, it involved time. Online searching for informations or magazines also wasnt very satisfactory. Environment is very dynamic; the information collected from secondary sources, though valuable wasnt extremely useful as the market undergoes constant changes.
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MARKETING STRATEGIES- 4 PS
Marketing is indeed an ancient art. It has been practiced in one form or the other since the days of Adam and Eve. Its convergence as a management discipline, however, is of relatively recent origin. And within this relatively short period, it has gained a great deal of importance and stature. In fact, today most management thinkers and practitioners of the world, regard marketing as the most important of all management functions in each and every business. The marketing strategies adopted by the pizza hut as been highly competitive and has enable the company to keep a firm grip on the battle 21

ground and fight competition and retain its market share and profits thereafter. In the following paragraphs I shall discuss the marketing strategies adopted by the company at various levels. My findings are dispersed into 4 Ps of marketing mix, i.e.

PRODUCT, PRICE, PLACE AND PROMOTION. PRODUCT STRATEGY


Pizza hut is a powerful and strong brand that is popular for making pizzas and appetizers which has been of high standards and is approved by various authorities. The research and development department of the company constantly rolls out new and sturdy versions of product. It has proved as a backbone to the companies strong existence in the market. With the growing global competition, the keyword for industry lies within

CUSTOMER SATISFACTION. A revolutionary twisted crust pizza: - the year 2002 saw pizza hut introduce a new twisted crust pizza palat ke khao the catch line says implying that the pizza crust is filled with cheese and tempts the customer to eat its background s. this is a revolutionary concept and is expected to go a long way in increasing the popularity of Pizza hut

CONCLUSION AND RECOMMENDATIONS From our research we conclude that in order to retain the current customers and increase in customers Pizza Hut has to focus on CUSTOMER
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Satisfaction. This customer satisfaction is only possible if Pizza Hut maintains its quality and also has control over its prices. We analyzed that the company has adjusted to new entrants into the market and managed to stay ahead of the competition just because of its consistent good quality. But it is also concluded that if Pizza Hut does not keep a focus on its quality and prices, it might loose its customers and the market share.

APPENDICE
Dear Customer, Dear Customer, As a Marketing Researcher for Pizza Hut, we want to thank you for giving Pizza Hut the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your cooperation and want to make sure we meet your expectations. Kindly fill the following Questionnaire so that we may serve you better. QUESTIONNAIRE

1. Do you like Fast Food? Yes


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No 2. How do you rate the following Fast Food restaurants? Papasallis KFC Mc Donalds Pizza Hut Hot Spot

3. Have you ever visited Pizza Hut? Yes No 4. How often do you visit Pizza Hut? Once in a week or more often 2 to 3 times a month Once a month Every 2 to 3 months 2 to 3 times a year

5. Which factors affect your preference while choosing any place for hoteling? Physical environment Interior Service Food Quality Price

6. Do you think that Pizza Hut offers enough variety of food? Yes No

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7. You visit Pizza Hut as it has a good Brand Image? Yes No 8. Do you think Pizza Hut delivers the best food in town? Yes No 9. Are you satisfied with the ingredients used in its food items? Yes No 10.Do you think Pizza Hut is consistent in its food quality whenever you go? Yes No 11.Are you satisfied with the service of Pizza Hut When you dine in? Yes No 12.Do you think that the preparation process of food in Pizza Hut is hygienic? Yes No 13.Are you satisfied with the prices charged by Pizza Hut? Yes No

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14.Are you satisfied with the Home Delivery Service of Pizza Hut that the food delivered is of the same quality as when you dine in? Yes No 15. If you switch to another fast food restaurant in place of Pizza Hut, the reason would be..

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