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A Project Report

On
The Brand Audit of Pizza Hut
Submitted in partial fulfilment of the requirements of
Master of Business Administration
By
Pawan Jariwala
2014-2015
012014030
Submitted to
Rohit Singh
Auro University of Hospitality and Management

Surat

Acknowledgement:
I take this opportunity to express my profound gratitude and deep regards to Mr Rohit Singh who
gave me the opportunity to study the concept of Brand Management of Pizza Hut in the module
of Brand Management at Auro University, Surat.
Lastly I would like to thank all those who helped throughout the project
Pawan Jariwala

Table of Contents:

Sr. no

Topics
Brand Inventory

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2
3
4
5
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Introduction of Pizza Hut


History
Ownership
Product Related Attributes
Communication, Pricing
Pizza Hut Portfolio

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8
9
10
11
12
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Brand Exploratory
Customer knowledge of Pizza Hut
Sources of Pizza Hut
Customer Based Brand Equity Model
Threats to Pizza Hut
Conclusion
Recommendation
References

Brand Inventory
Introduction of Pizza Hut

When it comes to tossing dough around, no one does it more often and better than
Pizza hut. The division of YUM! Brands- operate the world's#1 pizza chain with more than
13,000 outlets in nearly 100 countries worldwide. Pizza Hut is an American restaurant chain
and international franchise based in Addison, Texas. Pizza Hut Inc. is the largest pizza restaurant
company in the world in terms of both the number of outlets and the percentage of market share
that it holds. A subsidiary of PepsiCo, Inc., the company oversees more than12000 pizza
restaurants and delivery outlets in 90 countries worldwide. The chain serves a variety of pizza
styles, including its flagship Pan Pizza, as well as thin n'crispy, Stuffed Crust, Hand Tossed, and
Sicilian. Other menu items include pasta, salads, and sandwiches. Nearly 20% of its restaurants
are company-operated; the remaining units are franchised or licensed.
For the past four decades, Pizza Hut has built a reputation for excellence that has earned the
respect of consumers and industry experts alike. Building a leading pizza company has required
relentless innovation, commitment to quality and dedication to customer service and value. The
qualities of entrepreneurship, growth and leadership have characterized Pizza Hutts business
through more than four decades of success. Through the strength of its heritage, its culture and
its people and franchisees, pizza hut looks forward to more success in the future.

History
Pizza Hut founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita,
Kansas. When a friend suggested opening a pizza parlor then a rarity--they agreed that the idea
could prove successful, and they borrowed $600from their mother to start a business with partner
John Bender. Renting a small building at 503 South Bluff in downtown Wichita and purchasing
second hand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut
restaurant. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick Hassur opened
the first franchise unit in Topeka, Kansas
In the early 1960s 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 franchisee units had
grown to 145, a home office was established to coordinate the businesses from Wichita. Two
years later, the first Pizza Hut franchise was opened in Canada. This was followed by the
establishment of the International Pizza Hut Franchise Holders Association (IPHFHA). It aimed
a acquiring 40 percent of the company's franchise operations, or 120 stores, and adding them to
the six outlets wholly owned by Pizza Hut. In early 1970 Frank Carney decided that the business
strategy was inadequate, and that a more developed, long-term business plan was necessary. The
turning point occurred when Pizza Hut went public and began growing at an unprecedented pace.
In 1970 Pizza Hut opened units in Munich, Germany, and Sydney, Australia. That same year,
the chain's 500th restaurant opened, in Nashville, Tennessee. In 1971 Pizza Hut became the
world's largest pizza chain, according to sales and number of restaurants. A year later the chain
gained a listing on the New York Stock Exchange. Pizza Hut also achieved, for the first time, a
one million dollar sales week in the U.S. market. At the end of 1972 Pizza Hut made its longanticipated offer of 410,000 shares of common stock to the public. The company expanded by
purchasing three restaurant divisions: Taco Kid, Next Door, and the Flaming Steer. In 1973 Pizza
Hut expanded further by opening outlets in Japan and Great Britain. Three years later the chain
had more than 100 restaurants outside the United-States and two thousand units in its franchise
network. In 1977 Pizza Hut merged with PepsiCo, becoming a division of the global soft drink
and food conglomerate. Sales that year reached $436 million, and a new $10 million dollar
headquarters office opened in Wichita. The 1980s brought new competitors to Pizza Hut, all
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challenging its number one position in the pizza restaurant trade, then worth $15billionin sales
annually in the United States alone. Also, to raise its profile, Pizza Hut introduced "Pan Pizza"
in1980 throughout its network. In 1984 Steven Reinemund was appointed president and chief
executive officer of Pizza Hut. In 1986 Pizza Hut opened its 5,000th franchise unit, in Dallas,
Texas, and began its successful home delivery service. By the 1990s the delivery and
carryout business had grown to account for approximately 25 percent of the company's total sales,
by 1986 there were 100 restaurants in UK and 5000 worldwide.

Ownership
Pizza hut is wholly owned subsidiary. The industry is a fast food restaurant. The founders are
Dan and Frank Carney. It employees more than 1,60,000 employees. The parent company was
Pepsi Co from 1977-97 and from 1997 till date it is Yum Brands. In July 2000, Pizza Hut became
the first company in history to place its logo on the worlds largest proton rocket. In 2002, Tricon
Global became YUM! BRANDS INC. In 2006, Whitbread sold their shares to the joint venture
to Yum! Brands Inc. Also as a result, Pizza Hut Inc. UK was100% owned by Yum

Product Related Attributes


Pizza Hut is the leader in innovative products and this new product that we are proposing will
surely be a success, given Pizza Huts track record. With high competition from the other top
firms in the industry, the introduction of a new product is necessary to keep one step ahead of the
competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger
than the competitors at twenty-inches and have twice the toppings that the competitors have.
Pizza Hut will market this product along side other extreme products such as Mountain Dew, to
help Pizza Hut capture part of this new segment of the market. The selection of pizza's offered by
the competition have been significantly less creative than that of Pizza Hut in the past and Pizza
Huts reputation of offering high quality, new products will allow this new product to move into
the market as other new offerings have in the past. With the introduction of a new product, one of
our main objectives is to create recognition for our product. Our goal is to reach 85% recognition
of the new product in our target market.
Pizza hut has many unique features of their products due to which it attracts the customers. The
product is classified into non-durable goods as it is a food item pizza hut differentiates itself with
its competitors with respect to their wide range of offerings. The main advantage of pizza hut is
that one can customized his own pizza by selecting the bread and loading it with the toppings
which one can select, this creates variety in the customers mind and thus one can enjoy whatever
pizza hut can offer
Communication
Many companies capture large quantities of customer data. But few use the data to deliver a
competitively differentiating customer experience. Pizza Hut is asking customers to provide their
preferences and using that information to deliver preference driven communications and pizzas.
Compared with Pizza Hut's former bulk promotions, this new preference driven communication
process has generated:

A 200 percent jump in average campaign hit rates across customer segments,

A 38 percent improvement in Pizza Hut's customer retention rate,

A 9 percent increase in customer visit/purchase frequency in just seven months,

Up to 6 percent extra sales generated every month since the program started.

Pricing The pricing of Pizza hut is premium / skimming pricing. Pizza hut knows that it is the
first entrant for pizzas in India. On top of it, Pizza hut provides higher quality food as compared
to its competitors and at the same time the ambiance of the pizza hut chain is better and richer
than most of its competitors who serve Italian products. Thus, even though Pizza hut has a
premium pricing, people prefer Pizza hut over others.

Pizza Hut Portfolio

Starters

Vegetarian

Garlic Bread Stick: Freshly baked buttery garlic bread sticks served with cheese.
Spicy Supreme: Cheese, onions and green chillies.
Exotica: Cheese, olives, jalapenos, tomatoes and onions.
Chilli Cheese: Garlic bread with onions and green chillies on top of a gooey chilli cheese

surface
Cheesy Topped Wedges: Yummy potato bites on a warm tortilla topped with melting
mozzarella cheese, three cheese sauce, jalapenos, garlic, parmesan and fresh parsley.
Non Vegetarian:
Chicken wings: Tender and juicy chicken wings tossed in your choice of sauce
Barbeque
Chicken skewers: Jamaican jerk spiced chicken and Thai chicken on skewers served
with a cucumber and yoghurt dip. A chicken lovers delight

Soups

Vegetarian:

Tomato n Basil: Rich and tangy tomato soup with basil and garlic croutons.
Cream of mushrooms: Creamy mushroom soup simmered with vegetables and parsley.
Hut fresh veg soup: A flavourful clear soup with goodness of seasonal veggies.

Non Vegetarian:

Cream of Chicken: Creamy chicken soup simmered with vegetables and chunks of

chicken
Hut fresh chicken soup: A flavourful clear soup with goodness of seasonal veggies
served with chicken ham.

Salads

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Vegetarian:

Fresh Garden: Exotic vegetables corn, broccoli, cherry tomatoes, pickled cucumbers,
carrots, lettuce, bell peppers and red cabbage tossed in an Italian herb dressing and
topped with garlic croutons, pico de gallo and a sprinkle of parsley.

Non Vegetarian:

Classic Caesar: Fresh lettuce and grilled chicken, tossed in a delicate Caesar dressing
and garnished with Parmesan cheese, garlic and basil croutons and chopped parsley.

Pastas

Tangy Twist Fusilli: Creamy tomato sauce spiked with tangy spices.
Cream o Luscious Fusilli: rich creamy sauce with red onion, roasted garlic and a twist
of tomatoes.
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Cheesy Pepper Fusilli: Fusilli tossed in a rich creamy Italian cheese sauce with
mushrooms, chicken meatball, olives, red paprika and topped with fresh parsley.

Sandwiches

All sandwiches are served with potato chips where available.


Black Forest Ham
A toasted cheese-crusted bun layered with Black Forest Ham, melted provolone cheese, creamy
Italian dressing, tomatoes and lettuce.

Buffalo Chicken:
A toasted hoagie bun filled with our boneless wings tossed in Buffalo sauce and cooled off with a
creamy blue cheese dressing and crisp shredded lettuce.
Honey BBQ Chicken:
A cheddar-toasted hoagie bun filled with our honey BBQ boneless chicken wings, topped with
Ranch dressing, shredded lettuce and cheddar cheese
Meatballs Sub:

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A toasted Parmesan hoagie roll filled with juicy meatballs, tomato sauce and melted provolone
cheese.
Roasted turkey provolone:
A toasted sandwich layered with roasted turkey and melted provolone cheese, topped with our
creamy Italian dressing, tomatoes, red onions and lettuce.
Supremo:
This toasted favourite is sure to please with layers of Black Forest ham, Italian salami, pepperoni
and melted provolone cheese, finished with crisp shredded lettuce, sliced Roma tomatoes and
Italian dressing.

Pizzas

Vegetarian:
Paneer overloaded Big Pizza: Peppy paneer, onion, tomato, green chillies, corn and
Italian sprinkle.
Cheese overloaded Big Pizza: Cheese, mozzarella cheese.
Spice overloaded Big Pizza: Onion, capsicum, green chillies, paprika, and jalapeno.
Veggie overloaded Big Pizza: Onion tomato, sweet corn, jalapeno, black olive.
Non vegetarian:

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Chicken overloaded big pizza: Chicken keema, chicken kofta, capsicum, onion, rd
paprika.

Desserts

Choco Chip Cookie Sundae: Warm jumbo cookie with 2 scoops of ice cream.
Classic Tiramisu: Layered cheesecake enthused with coffee and sprinkled with cocoa.
Ebony n Ivory: A warm chocolate cake with vanilla ice cream and chocolate sauce.
Classic Vanilla Romance
Chocoholic Symphony
Hut Chocolate Fudge

Beverages

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Coolers
Orange Strawberry Spritzer: Refreshing orange fizzy drink with a hint of strawberry
Peppy Peach: Sweet peach crush, spiked with a twist of spicy Paprika.
Spiced Mango Sparkle: Tangy green mangoes with a hint of jalapenos.
Litchi Mint Mojito: An iced medley of sweet litchi and fresh mint
Green Apple Mojito: Classic mojito with a twist of Green Apple
Mojito Blast: Frozen mojito with a rush of lemon and fresh mint lea
Shakes and Cold Coffees:

Berry Vanilla Shake: Strawberry and red berry shake blended with vanilla ice cream
Berry Vanilla Shake: Blend of Belgian chocolates, rich cream topped with whipped ice

cream
Mocha Cold Coffee: Chilled mocha flavored coffee topped with whipped cream

Tea

Hot Tea
Lemon Iced Tea

Fresh Lime &Lemonades:

Fresh lime: Prepared with water or soda available as sweet, salted or mixed.
Lemonade
Masala Lemonade
Cucumber Splash: Beat the heat with refreshing cool cucumber lemonade
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Aerated Drinks:

Pepsi
7-up
Miranda
Pepsi diet

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Brand Exploratory:

Customer knowledge:

Customers follows variety seeking buying behaviour in buying the pizza


This is not because of the distraction of the products of the brand, its only for the sake of

varieties.
With knowledge of how and when a customer will make their next order, Pizza Hut can
now prompt customers to order according to their needs and at the point where they are
likely to consider a purchase, hence increasing incidence of impulse purchases,. With
data analytics, Pizza Hut is also able to identify new customers and use attractive and
timely offers to persuade them to stay with the brand to broaden their total customer

base.
Customer segmentation models have become more refined as each customer now
receives communications via channels to which they are most likely to respond. This has
increased campaign hit rates, improved campaign ROI, and built customer brand loyalty
all at the same time.

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Source of Pizza Hut

Brand as a Product:
As a core element of a brands identity is usually its product thrust, this will affect the type of
associations that are desirable and feasible. Attributes directly related to the purchase or use of a
product can provide functional benefits and sometimes, emotional benefits for customers. A
product related attribute can create a value proposition by offering something extra like features
or by offering something better. For Pizza Hut, the brand as a product would represent the menu
they serve mainly pizzas and pastas, the variety of pizzas with indian toppings and the quality of
pizzas.

Brand as Organization:
This perspective focuses on attributes of the organization rather than on those of the product or
service. Organization attributes for pizza hut as follows:

Innovation

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Adaptability according to the different market needs and local prefrences

Efficiency

Integrity

Brand as a Symbol:
A strong symbol can provide cohesion and structure to an identity and make it much easier to
gain recognition and recall. It presence can be a key ingredient of brand development and its
absence can be a substantial handicap, there are three types of symbols: visual imagery,
metaphors and the brand heritage.

Jingles
Pizza Hut
Pizza Hut
Cheesy pizza everywhere
Try the others if you dare

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PIZZA HUT
PIZZA HUT
You'll come back to PIZZA HUT
For pepperoni in your gut
Pizza Hut
Pizza Hut

Slogans

We have Pizza.
Now youre eating.
Making it great!
Youll love the stuff were made of.
The best pizza under one roof.
Gather round the good stuff.
Share the good times.

Customer Based Brand Equity Pyramid

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Saliance: Belongs to Yum group, global rank in top brands 51 rank


with brand value of $ 6 billion USD. American company of Italian
food
Image: American's nose ethinic baking with uniform taste globally

Performance: European ethinic food redefined in fast food segment

Judgement: World's loves pizza, pizza brother is passta

Feelings: Little vegetarian, little non vegetarian, open choice

Resonance: Pizza needs no definition no identification

The salience feature of Pizza Hut is that it belongs to Yum group; its global rank in top
brands is 51th rank with brand value of $ 6 billion USD. Its an American company of
Italian food.

The image of Pizza Hut is that the American's nose ethnic baking with uniform taste
globally

The performance of Pizza hut is like European ethnic food redefined in fast food
segment

The judgement of Pizza hut is that the World's loves pizza, pizza brother is pasta

The feelings of Pizza Hut it is little vegetarian, little non vegetarian, open choice.

The resonance of Pizza Hut is that Pizza needs no definition no identification

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Threats Dominos is a single major threat to pizza hut when concerned with pizza or Italian
food. Dominos does not have a high quality food variety like pizza hut but Dominos is present in
most places where Pizza hut is not. Another threat is the wide options of cuisines which a
customer has available today through various food franchisee. McDonald KFC and others are
indirect competitors who take away customers regularly from pizza hut. Rising health concern
and people being more fitness concerned might also cause a drop in pizza consumption.
Pizza hut needs to be on its toes to survive and thrive in a saturated food franchisee environment
like India.

Threats of new entrants:


Since industry growth is high it attracts new potential firms to enter the market. However, if the
new entrants is experienced then it will be able to compete with the existing players else the
economies of scale enjoyed by the existing players will force the new entrants to existing market.

Threats of substitute:
Threats from junk foods such as hot dogs, sandwiches and burgers

Threats of buyers bargaining power:


From customer or buyer when there re number of suppliers of buyers concentration is high or
large availability of substitute goods.

Threats of supplier bargaining power:

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Also from suppliers when there is large number of buyers from these suppliers, high
concentration of suppliers, high switching costs and non-availability of raw materials substitutes.

Competitive points of difference: The major point of difference between pizza hut and dominos
is that pizza hut concentrates on in-restaurant dining. The ambience and dcor of all pizza hut
outlets are good and the outlets are spacious. When customers think of party and decide to have
pizza, pizza hut only comes into their mind. Pizza hut also arranges kitty parties, birthday parties
and business meetings in their outlets. Pizza hut has customized birthday party invites with
different themes for the customers to choose and use it as invitations. Dominos aims at fast home
delivery of pizza. Whenever customers want to have pizza at home, they think of calling
dominos and ordering for it because they are experts in home delivery of pizza. We earn 60% of
our revenue from home delivery of pizzas and 40% from the restaurants sales.
Competitive points of parity: Competitive points of parity in case of pizza hut is that, even
though pizza hut is costlier than dominos, they have their own customers, who do not bother
about spending, but look for quality and personalised services. When we visit pizza hut, they
have restaurants hostess who will assign us table and introduce the steward who will be taking
care of us this is generally a procedure that is followed in five star category hotels and pizza hut
is also following it to emphasize on service quality. In case of dominos, they are not costly as
pizza hut and do not offer great ambience to customers, but offer good pizzas at normal price.
They concentrate on turnover of covers and cater to customers who dont have time to spend on
food and just stop over for refreshment. Moreover, dominos mainly looks into home delivery of
pizzas and are experts in it.

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Conclusion:
I would like to conclude that it need to be a step ahead and in sync with the consumers
perception of value. Customers move to the lower cost provider when marketers stop giving
them reasons not to. Its strategies are successful and there is flexibility in the strategies, as they
can be changed with the changes in the market conditions as well as the targets.

Recommendations:

Pizza hut should focus on more advertisements. To increase their sales Pizza Hut should

focus more on advertisement


It should decrease the variety seeking buying behaviour.
Membership or discounts cards for the loyal customers. They should give discounts to
their customers who are visiting Pizza Hut and special offers for schools and college

going students, they are offering 20% off to students who are having NUS extra card.
It should make online ordering system. Being in existence for over 50 years, Pizza Hut
now has around 13,000 restaurants across the world and has become the pizza specialist
with the online pizza order in India. Pizza Hut home delivery pleases its guests over and
over again with the high quality and freshness of its ingredients used as well as friendly
and fast service. Today Pizza Hut online order offers much more than pizza, from
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freshly sauted pastas and delicious appetizers to desserts & sides, it has a wide range of
choices on the menu, all available for you to feast on

References:
Pizza Hut - Wikipedia, the free encyclopedia. 2015. Pizza Hut - Wikipedia, the free
encyclopedia. [ONLINE] Available at:https://en.wikipedia.org/wiki/Pizza_Hut. [Accessed 03
October 2015].
Sandwiches - Make it Great . 2015. Sandwiches - Make it Great . [ONLINE] Available
at: http://pizzahutpizza.com/menu/sandwiches/. [Accessed 03 October 2015].
Pizza Hut Restaurant Dining Appetisers. 2015. Pizza Hut Restaurant Dining Appetisers.
[ONLINE] Available at:http://www.pizzahut.co.in/dinein/appetisers.php. [Accessed 03 October
2015].
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Pizza Hut Restaurant Dining Soups & Salads. 2015. Pizza Hut Restaurant Dining Soups &
Salads. [ONLINE] Available at:http://www.pizzahut.co.in/dinein/soup-salad.php. [Accessed 03
October 2015].
Pastas, Pasta Recipes, Tuscani Pastas - Pizza Hut Pasta Restaurant Dining India. 2015. Pastas,
Pasta Recipes, Tuscani Pastas - Pizza Hut Pasta Restaurant Dining India. [ONLINE] Available
at:http://www.pizzahut.co.in/dinein/the-big-pizza.php. [Accessed 03 October 2015].
Pizza Hut Restaurant Dining Pastas Recipes. 2015. Pizza Hut Restaurant Dining Pastas
Recipes. [ONLINE] Available at:http://www.pizzahut.co.in/dinein/pastas.php. [Accessed 03
October 2015].

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