Beruflich Dokumente
Kultur Dokumente
The Incredibles
INCREDIBLES
Topic
Pizza Hut Introducing Frozen Pizzas
Submitted To
Mam. Sarwat Kazmi
Submitted By
Sundas Ramzan
Sahar Mehboob
Anum Waheed
Shayan Latif
Saffi Ullah
Harris Arshad Abbasi
Usman Rafiq
Saad Qureshi
Due Date
22-05-2009
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ACKNOWLEDGEMENTS
It is HE who holds the time and regulates it. Without His support nothing is
possible. Hence it is a moral duty to recall him and offer thanks to Him.
Thanks are due to our respected teacher MADAM SARWAT KAZMI who
taught us the right way of making a project, yet THE INCREDIBLE share the
appreciation for efforts laid to come up with such an informative project, thanks to
each of them for their interest, assistance and support in preparation of this report.
PIZZA HUT Website, Wikipedia, Google and others were taken. Thanks to the
creators of those sites which made it possible to gather that extensive data.
DEDICATION
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Table of Contents:
Name of Topic: Page#
1.) Mission Statement..................................................................
2.) Product Oriented Mission……………………………………………..
3.) Current Market Situation……………………………………………… 1
3.1) SWOT Analysis………………………………………………..…. 1
4.) Strategic Planning……………………………………………………… 2
5.) Company’s Mission Statement……………………………………… 2
6.) Product Oriented Mission…………………………………………….. 2
7.) Market Oriented Mission……………………………………………… 2
8.) Company Goals & Objectives……………………………………… 3
9.) Business Portfolio……………………………………………………….. 3-4
10.) Product Life Cycle…………………………………………………… 5
11.) BCG Matrix……………………………………………………………. 6
12.) Marketing Strategy………………………………………………….. 7
13.) Marketing Process…………………………………………………… 8-13
14.) Market Segmentation………………………………………………. 13
14.1) Choosing a Target Marketing Strategy………………... 13-14
15.) Product Positioning………………………………………………….. 14
15.) Choosing a Positioning Strategy…………………….. 14-15
15.2) Selecting an Overall Positioning Strategy…………….. 15
15.3) Positioning Statement…………………………………….. 15-16
16.) Marketing Research………………………………………………… 16-17
17.) Marketing Research Process……………………………………… 17-19
18.) Pricing, Promotion & Distribution Strategies……………………. 19-21
19.) Promotion Strategies for our Product........................................ 21-22
20.) Distribution of our Product………………………………………… 22-24
21.) Control…………………………………………………………………. 24
22.) Summary & Conclusion…………………………………………….. 24
23.) References……………………………………………………………. 25
24.) Annexure……………………………………………………………… 26-28
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Company 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 will be back”.
“We take pride in making marvelous frozen pizzas and providing our
customers wholesome nutritious value making the blend of technology that
strengthens pizza’s traditional taste”.
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3) CURRENT MARKET SITUATION
By looking at the present situation of the market 40% customers are willing to buy the
Frozen Products and the rest 60% are not willing to buy Frozen Products, because they don’t
have enough knowledge about the Frozen Products.
So according to the current situation of the market we have to do such kind of work through
which we can create awareness among the customers who are not willing to buy the Frozen
Products.
Strengths:
Part of the largest restaurant chain in the world and enjoying a sound market share.
Innovative range of Pizza’s under one roof.
Their Food attracts people of various range from young to old.
Over 20,000 franchises around the world.
Famous television advertising.
Sound financial and international turn.
Weaknesses:
Loyal customers are feeling that the satisfaction of the pizzas is declining.
There are complex computer systems and internal conflicts from franchises.
There is a lack of an organic pizzas, which will limit the target market.
Opportunities:
New Pizzas with different crust sizes and flavors.
Pizza Hut expands Pakistani market menu.
Pizza Hut targets upscale products and a downscale consumer base.
Threats:
Rising competition undermines Pizza Hut as consumers go for greater convenience.
Rising cheese costs threaten margins.
Threats from their competitors Dominos Pizza, and in Pakistan threat from Papa
Sallies.
(1)
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4) Strategic Planning:
Each company must find the game plan for long run survival and growth that makes the most
sense given its specific situation, opportunities, objectives, and resources. We can say that
strategic planning is the process of developing and maintaining the strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.
(2)
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8) Company Goals and Objectives:
Pizza hut holds the most market share in the pizza industry, the perceived quality and
service of the company. Pizza Hut has the resources available to research and implement
a new product with great success. It has following goals and objectives:
To constantly increase sales and market share.
To provide superior customers service along with the highest quality product
availability in pizza industry.
To encourage employees to satisfy their customers wants and needs at any cost.
To offer several specialized pizzas, along with a menu that exceeds other
businesses in the pizza industry.
To accomplish them:
Pizza Hut maintains the goals of having at least 7% operating profit growth per
year.
It also strives to have at least 1-2% same - stores sales growth.
9) Business portfolio:
PIZZA HUT has divided its business into following divisions
Consumer Product Division
International Marketing Division
Ethical Marketing Division
(3)
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APITIZERS
1. Garlic Bread
2. Garlic bread with cheese
3. Garlic mashrooms
4. Breadstick
5. Breadstick with cheese
6. Soups
7. Chicken wings
8. Potato skin
PASTA’s
1. Chicken Pomodoro
2. Fettuccini Alfredo
3. Chicken Fettuccini Alfredo
4. Spaghetti and Meat Sauce
5. Spaghetti and Tomato Sauce
6. Meat Lasagna
SALAD’s
1. Warm Spinach Salad
2. Garden Salad
3. Greek Salad
4. Caesar Salad
5. Grilled Chicken Caesar Salad
BEVERAGE’s
1. Soft Drinks
2. Juices
3. Milk (2% or chocolate)
4. Coffee
5. Tea
6. Hot Chocolate
7. Bottled Bear
8. Red or White wine
(4)
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10) Product Life Cycle:
Sales and profits
Losses /investment
Justification:
As we are launching new product, we are following Introduction Stage in which the new
product is first distributed and made available for purchase. We are providing our valued
customers same taste, quality Mystic Frozen Pizza by high distribution and promotion to
inform our consumers about our new product and get them to try it.
(5)
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11) BCG Matrix:-
LOW
HIGH LOW
Our Product Lie in Question Mark category which require a lot of cash to hold market
share where our market growth rate is high.
(6)
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12) Marketing Strategy:
Currently Pizza Hut is following the marketing concept which holds that “ achieving
organizational goals depends on knowing the needs and wants of the target markets and
delivering the desired satisfaction better their competitors”.
Their job not to find the right customers for your product, but to find the right products
for our customers.
We will base our Marketing Activities on the following concepts:
Product Concept:
Product concept states that “the idea that consumers will favor products that offer the
most in quality, performance and innovative features”.
We are continuously focusing on this concept by providing attractive designs, packages,
prices, convenient distribution channels and convince our buyers, that what they buy is
better product. This creates value and satisfaction in them.
Selling Concept:
Selling concept states that “consumers will not buy enough of the organization’s product
unless the organization undertakes a large scale of selling and promotion effort”.
As we are going to introduce new product in the market, so we have decided to choose
this marketing strategy. We will promote large scale selling and undertake promotional
efforts by crating awareness among buyers about the product nutrition’s and delicious
qualities. To attain this , we will prefer door to door selling’s, fliers on college campuses,
repeated advertisements on television and radio, billboards to create identity, use of
broachers to enhance sales and promotion of our product.
(7)
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13) Marketing Process:-
Marketing process is the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in return.
Its five steps of building customer relationship and to get value from them in return are as
follows:
1) In the first step we set our research objective to understand the customer’s needs and
wants so as to make our product worthy for them.
In this part of our project we had done Descriptive research in order to check the market
potential the demographics and the attitude of our customers.
(8)
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The second step is developing the research plan and collecting
information:
This part consists of two parts.
A) Gathering secondary data:-
To collect information that already exists somewhere, having been collected for another
purpose.
2) Ethnographic research:-
A form of observational research that involve sending trained observers to watch and
interact with consumers in their natural habitat
3) Survey research:-
Gathering primary data by asking people questions about their knowledge, attitude,
preferences and buying behavior.
4) Experimental research:-
Research in which we gather primary data by selecting matched groups of subjects,
given them different treatments controlling related factors and checking for differences in
group responses.
In our project we used survey research to understand the needs and wants of our
customers. In this research we divided our customers in to five different parts to complete
the survey, these are as follows:
1) PROFESSIONALS 2) TEACHERS
3) FRIENDS 4) NEIGHBOURS
5) RELATIVES
(9)
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5) Implementing the research plan collecting and analyzing the data:
In this part of our project we collected the required information needed for the
development of our product which was done by using the questionnaire filled by our
costumers.
In this research we discussed the introduction, flavor and tagline of our product and
checked the response of our customers whether they accept our product or not and most
of the result was positive toward our product and its features.
Market Targeting:-
It is the process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter.
It has two major steps:
A) Evaluating Market Segments:-
In which we determine the size and growth, attractiveness of our targeted market and our
company’s goals and objectives
B) Selecting Target Market Segments:-
It has four different types:
Undifferentiated (mass) Marketing: it is a market coverage strategy in which a
firm decides to ignore market segment differences and go after the whole market
with one offer.
(10)
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Concentrated (niche) Marketing: it is a market coverage in which a firm goes
after a large share of one or a few segments or niches.
Local Marketing: tailoring brands and promotions to the needs and wants of
local customer groups-cities neighborhoods and even specific stores.
3) Promotion 4) Place
(11)
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Quality as our company is maintaining the quality of our entire products and in
our new product “Mystic Frozen Pizza” we are not compromising on the quality
of our product.
We will create better relationships with our customers and also to other people
around us so that to create a strong and long term relationship with our customers.
Then comes its next important aspect which is to distribute our product properly
and on time so that our customers may not face any difficulties.
(12)
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Capture Value from Customers in Return:-
Now in last stage of our marketing process we will try to capture value from our
customers in return for this purpose we had done all of the above mentioned processes to
gain their attention and to satisfy them and we will hope to these customers as a potential
customer in the future
a) Geographic Segmentation:-
In which we d.ivide a market into different geographical units such as nations, states,
regions, countries, cities or neighborhoods.
b) Demographic Segmentation:-
In which we divide a market in to groups based on variables such ass age, family size,
family life cycle, income, occupation, education, religion, race, generation and
nationality. This of three types:
Age and life cycle segmentation: in which we divide a market into different age
and life-cycle groups
(13)
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From these we divided our market into two types :
1) In demographic segmentation we used its sub part of age and life cycle segmentation
in which we divided our market into different age groups. 06-15 years 16-25 years and
26-35 years.
2) In geographic segmentation we divided our market into two regions ISLAMABAD
and RAWALPINDI.
Our company is maintaining good image along with the quality of food and we are
maintaining service differentiation through speedy convenient and careful on locations
that are convenient to the customers. Services are different as for home delivery we are
using.
(14)
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1. Important:-
We will deliver a high benefits to target buyers.
2. Distinctive:-
As there are no competitors so this makes the benefit distinctive.
3. Superior:-
The difference is superior to that the customer might obtain the same benefit.
4. Communicable:-
The difference is communicable and visible to buyers.
5. Pre emptive :-
Competitors cannot easily copy the difference.
6. Affordable:-
Buyers can offer to pay for the difference.
7. Profitable:-
The company can introduce the difference profitability.
(15)
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Target segment and need:-
Professionals and students who avoid cooking and prefer ready made food items.
Brand:-
Frozen pizza
Concept:-
Societal marketing and product concept
Point of difference:-
Healthy and easy to made
Collection of data:
We collected data by survey research method. In this we gathered primary data by asking
people questions about our new product. We also conducted focus group interviewing.
Sampling techniques:
We drew the sample from large number of people in Islamabad and Rawalpindi
segments.
Sample:
We collected samples from the large areas of Islamabad from G-7, G-8, G-11, F-6, I-9, I-
10, H-8, and F-8 and in Rawalpindi we focused in Saddar, Gulzar-e-Quaid, Adyala
Sector, and Scheme III.
(16)
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Size of Sample:
In the above mentioned populated areas we distributed 50 questioners.
Sample Composition:
We have conducted the survey in five main categories and three main age groups:
Following are the main five categories:
Students.
Professionals.
Corporate level.
Relatives.
Neighbors.
Age Group:
6-15
16-25
26-35
(17)
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4. Interpreting and Reporting the Findings:
Question # 2
Which flavor would you like to prefer in the form of frozen pizza?
Chicken Chicken
tandoori tikka Chicken fajita
22% 48% 28%
Question # 3
Which type of packing do you prefer?
Soft
packing Hard packing
38% 62%
Question # 4
Which type of base do you prefer in frozen pizza?
Soft thick Thin hard
82% 18%
Question # 5
How you find the idea of Pizza hut introducing frozen pizza?
Positive Negative No Comments
70% 10% 20%
Question # 6
How the tag line “yumz! share the freshness” sounds like?
Good Bad No Comments
68% 18% 14%
(18)
Overall feedback
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No
Positive Negative comments
66% 22% 11%
Our product is a new product so we have used only one of these market pricing strategies.
Market skimming pricing
Market penetration pricing
We have chosen market penetration strategy as we know we do not have any specific
competitors for frozen pizzas in market.
So in order to attract the customers we shall have to go for lower price to attain the higher
market share. We have not used market skimming strategy because our big competitor is
"PAPA SALLIES” and they are quite strong because of this they have got a strong hold
on market share and if they launch our type of product they can easily grab our
customers. If we used the skimming strategy then the customers according to Pakistani
buying trends would not even consider looking at the
Product in the beginning yet when we will reduce the price we might think that there was
something wrong with the product. That is why we have reduced the price.
Therefore we decided to go with the penetration strategy. Once we have penetrated into
the market and gain some market share then we intends to increase the price of our
product to level our product competitors.
(19)
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After penetration of our product in market we adopt further strategies. We used price
adjustment
Strategies to adjust the price of our product, There are six price adjustment strategies.
1. Discount & allowance pricing.
2. Segmented pricing.
3. Psychological pricing.
4. Promotional pricing.
5. Geographical pricing.
6. International pricing.
Out of these six strategies we will be using the following pricing strategies
Discount Pricing:
In discount pricing strategy we have used quantity discount strategy for our product in
this we are giving discount on frozen pizzas such as buy two medium size pizzas and get
one small pizza free.
Psychological Pricing:
In general when we see the prices of pizzas they are quite high and in case of our product
frozen pizzas by pizza hut we are giving you the facility of ready to cook food therefore
we are offering an introductory price for our product when we will enter into the market
with the lower price the customer will perceive the cost of our product comparatively less
than the other products this low price may grab the attention of middle class households
who always tries to have quality product in low price.
Promotional Pricing:
We are using promotional pricing on different events like Eid and Ramadan we are
giving special discount packages on these occasions. That will include, with a pack of
four large size pizzas you will get a discount of 25%.
International Pricing:
Since our product is newly launched in the market so we still not decided about the
international market we are still focusing on the domestic market of Pakistan.
(20)
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Initiating Price Increase:
If in future we find out that our product has a great image and has great value in the
minds of customers and that our product has an edge over other competitors by having
more of a market share then we might consider increasing the price of our product.
(21)
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The Strategy:
We have decided to use the both “Push Strategy & Pull Strategy” for the promotion of
our product, because we have to increase our supply of product in the market and also we
have to motivate the customer by boosting them towards buying behavior. We also use
these strategies because instead of buying our product from our outlets the customers can
easily buy it from any departmental store which will help them to save their time. And we
have also decided to use the direct marketing concept.
Following are the strategies we have decided to use for the promotion:
Print Media:
In this type of promotion we will use the billboards of Islamabad and Rawalpindi; we
will also promoter our product through popular magazines and newspapers. We will use
posters and pamphlets in each and every departmental store and we will also promote our
product among the customers who mostly come to our franchises by doing this we can
easily create awareness of our product among our customers.
(22)
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Distribution Channel of our Product:
In the distribution of our product we will use the both direct and indirect channel concept,
because we think that
Direct channel:-
In direct channel the customer can call in our outlets, place an order and that order
will be delivered to customer’s home. In second method of distribution is the 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
menu and order without having to disclose any credit card numbers.
Indirect channel:-
In the indirect channel method for the convenient of our valuable customers we have
decided to distribute in the big super stores like METRO CASH N CARRY, CITY
SUPER Market and some other super store in ISLAMABAD and RAWALPINDI.
Denomination Price
Small size (6”) Rs 415/- Only
Medium size (9”) Rs 515/- Only
Large size (12”) Rs 725/- Only
Family size (16”) Rs 825/- Only
(23)
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Product:
Anything that can be offered to a market for attention, acquisition, use or consumption
that might satisfy want or need. Following are the three levels of product:
Core Benefit:
The core benefit of our product is that it is spicy, delicious, and fresh taste which will
give taste of home made food to the customers.
Actual Product:
We have carefully combined the features, design, packaging, quality level and brand
name to deliver core benefits.
Augmented Product:
At this stage we can only give the guarantee of the quality of our product which will give
the taste of home made food. But in the future when our product will be augmented will
be give certain benefits and incentives.
21) Control:
Our Marketing Vice President in the corporate Headquarters, the local/regional marketing
vice presidents and the Pizza Hut restaurant Management all will play a role is being
responsible for the control. We will also increase profits, sales revenues, unit volume of
the “Mystic Frozen Pizza” promotion used. If our budget allows, we will get the direct
feed back about our new Pizza. On going research is essential for our success we will
improve the quality and distinguish ourselves well from competitors.
(24)
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23) References:
Principles of Marketing by Philip Kotler and Gray
Armstrong.
(25)
Annexure
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NAME ___________________________________________
GENDER ___________________________________________
OCCUPATION ___________________________________________
DATE ___________________________________________
STATEMENT: Please mark the box that best reflects your response to each question
QUESTIONNAIRE
1. How often do you visit Pizza Hut
Weekly
Monthly
Occasionally
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5. Would you like to buy frozen pizza only from pizza hut outlet
Yes
No
6. Which flavor would you like to prefer in the form of frozen pizza
Chicken tandoori
Chicken tikka
Chicken fajita
7. Do you think Pizza Hut should give sauces with frozen pizza
Yes
No
11. Which type of rating would you like to give to the taste of Pizza Hut
5
7
10
12. How you find the idea of Pizza Hut introducing frozen pizza?
_____________________________________________________________
_____________________________________________________________
________
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14. Do you think Pizza Hut is giving good quality of Pizza’s
Yes
No
15. How the tagline “yumz! Share the freshness sounds like?
_____________________________________________________________
____
(28)
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