PIZZA HUT

Executive summary:
Pizza Hut, a world famous international fast food chain has been in operation in
Bangladesh for more than one year. They have started their operation in Bangladesh at

the end of 2003. Since then, they have been able to attract a wide range of customers
especially from the elite society. Some of their mouthwatering menus include the
famous Pan Pizza- pizza made on a flat pan with delicious toppings of mushrooms,
capsicum, beef and bar-b-que chicken. Even though there were several fast-food
stores operating in Dhaka city, they in fact focused on a bit of every item. Pizza Hut is
the first of its kind to concentrate only on pizza. Introduction of Pizza hut in

Bangladesh has generated a fairly tough competition among the reputed and existing
fast-food stores in Dhaka city.

Our report focuses on the basic marketing research, international competitiveness and
a thorough analysis of the marketing strategy in terms of price, product, place and
promotion and suggests ways to improve the 4Ps. The report also focuses on customer

relationship management and offers recommendation to improve customer equity and

customer relation.

A detailed outline of the companys website is also provided and our own views about
Pizza Huts domain are given to make the site more popular among people. The
companys ethical and social responsibility is evaluated and suggestions are provided
for more proactive participation in social responsibilities. Finally an assessment on

Pizza Huts strengths, weaknesses, opportunities and threats, Porters Diamond, PEST
Analysis, five forces of industry competitiveness are provided .In the course of this
report, we have discovered that there are more to learn in the real life business
scenario and that it differs from the text book information in several ways.

Introduction

The urban community in Bangladesh has always longed for a reputed fast-food chain
to be in operation in this country, which add an extra dimension to the city life and
would also facilitate a particular segment of the community to hang out in their free
time. By opening a franchise store in Dhaka city, Pizza Hut has fulfilled the long-term
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dream of the city dwellers. They started their operation in Bangladesh at the latter part
of 2003. In our report, we have talked about the preliminary operation of Pizza Hut in
Dhaka and how they have planned their marketing.

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Company Background

Pizza Hut started its journey in a busy locality in Wichita, Kansas USA in the year
1958. It was the idea of two college students and also brothers, Dan and Frank Carney
who started the business with a capital of $600 borrowed from their mother. 1959
Pizza Hut is incorporated in Kansas and the first franchise unit opened in Topeka,
Kansas. In 1971 Pizza Hut became the number one pizza restaurant chain in the world
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on both sales and number of restaurants. Pizza Hut got their big break in 1977 when
PepsiCo by 3000 U.S units, bought them out. The Pizza hut management took a
philanthropic effort when they employed 10,000 disabled people in different positions
in the organization under the Job Plus program. 1997 On October 6, 1997, Tricon
Global Restaurants, Inc. was formed as a result of a spin-off from PepsiCo Inc. of the
three restaurant concepts - Pizza Hut, KFC, and Taco Bell. Pizza Hut launched
"Totally New Pizzas", a quality initiative putting sliced, fresh vegetables and meatier

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meat toppings on pizzas. Currently they have 12,500 restaurants across 91 countries.
Today, they are the highest-flying brand of 'Yum! Restaurants International. The
franchises of Pizza Hut are spread all around the world covering major parts of the
Northern hemisphere namely USA, Canada, Ireland, U.K and other major European
cities. Currently Pizza Hut is the recognized leader in the fast-food business with a
global asset of $25 billion. Every year, Pizza Hut uses more than 700 million pounds
of flour, 525 million pounds of tomatoes and 700 million pounds of pepperoni. If all

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those pepperoni slices were laid side by side, they would stretch around the world
twice and go to the moon!
Their introduction into the subcontinent started when they came to India in 1996.
From then onwards, they have been doing very productive business with excellent
promotional campaigns.

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Pizza Hut in Bangladesh

Pizza Hut moved into Bangladesh with the motto of Think global and act local and
their observed marketing activities totally agree with this motto.
Pizza Hut started its operation in Bangladesh on the 6th of December 2003 under the
banner of Transcom Food and Beverages (LTD) a concern of Transcom group Ltd,
with the head operation of Bangladesh, Mr. Akku Chowdhury. The major items of
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Pizza Hut include Pan Pizza, which is categorized under several items such as: Beef
lovers, Bar-B-Que Chicken and Arabiatta (with beef chicken or prawn). They come in
different size and shapes and of course, under different price range. Besides, a wide
selection of the world-renowned Pizza Hut pizzas, the menu includes delightful appetizers such as crunchy garlic bread and chicken wings, and a wide choice of
delicious soups, delightful pastas and mouthwatering desserts. Moreover, the restaurant boasts of the famous Pizza Hut Salad Bar, where customers can make their own

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salads, choosing from a range of crunchy, fresh vegetables and fruits and various
options of dressings. Such services are very rare in other fast-food stores in
Bangladesh.

Pizza Hut always maintains good quality service. They know what the customer
wants and are also aware of the customers desired service. They are also aware of the
customer's desired service. That is why the management and the employees are

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always trying to deliver the service that the customer desires from them. In this way,
they believe that they would be able to maintain the topmost position in Bangladesh
and thus giving them an upper hand over their competitors.

Pizza Hut-Bangladesh is passionate about making and serving the best pizzas just like
its other global franchises. And that includes going to any length to make the
customers experience with Pizza Hut an enjoyable one. The signature pizza crusts at

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Pizza Hut are Pan Pizza, Italian Pizza, Thin n Crispy, Stuffed Crust, the Big New
Yorker, the Sicilian and the Hand Tossed Pizza. Initially, two of these crusts are being
served at the new outlet in Dhaka Pan Pizza, which is golden brown and crisp on the
outside, and light and fluffy on the inside; the Italian Pizza, made with a traditional
Italian sauce, with a thin and crispy crust. Other than pizzas, Pizza Hut also offers a
range of Soups, refreshing Beverages, Pasta, Shrimp cocktail, Chicken Calypso,

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Shrimp and Chicken Mushroom, fresh and crispy fruits and vegetables (and dressings)
at the Salad Bar, and delightful Desserts.

The outlet, with a seating capacity of 220 persons, is located on South Avenue,
Gulshan 1. Covering an area of 6000 sft, it is one of the largest Pizza hut in Indian
subcontinent. This is the first of a total of five outlets that they plan to open in the
country over the next three years. In all the outlets that they are planning to open, they

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are relentlessly trying to promote the sense of Family Pizza Place - a perfect outing
place for any family.

The main mission of Pizza hut Bangladesh is to serve the best pizza to any pizza
lovers and also other customers. However, for the sake of proper commercialization,
they have focused mainly on the upper middle class and higher-class residents of the

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Dhaka city. They have also targeted the foreigners residing in Bangladesh as their
customers.

Starting with this mission, Pizza hut Bangladesh won the excellence award for the
year 2004, being the best restaurant all over the subcontinent. The award has been
given to Mr. Akku Chowdhury and the whole Pizza Hut team, Bangladesh.

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The Hutseum
Over the years, Pizza Hut has delighted customers with a variety of innovative
pizzas. You can count on Pizza Hut to bring your family traditional and not-sotraditional Italian pizza recipes that your family will love. Here are just a few of Pizza
Hut's remarkable food innovations worthy of being listed at the Pizza Hutseum.

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The Thin 'N Crispy pizza is based on the first pizza that we
ever served back in 1958. And it's been so popular that Pizza
Hut has been offering Thin 'N Crispy pizza ever since! The
crust is rolled thin to be perfectly crispy and adds just the
right amount of crunch.
The Pan Pizza is America's #1 favorite, golden-brown on the
outside, soft and chewy on the inside. Pan Pizza was

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launched nationally in 1980. More than 20 years later, our

customers love it so much that nearly every other pizza we
sell is a Pan Pizza.
The Hand-Tossed Style pizza was Pizza Hut's first step into
the traditional crust segment. The crust is not too thin and not
too thickit's a crust that everyone in the family can agree
on.

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It's the pizza everyone eats backwards! The pizza has a ring
of cheese baked into the crust for more cheese in every slice.
One of the most successful new products ever at Pizza Hut,
Stuffed Crust Pizza was launched in 1995 with commercials
including Donald and Ivana Trump, Dennis Rodman, David
Robinson, Rush Limbaugh and more.

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The pizza so big it covers three ZIP codes! It's the New Yorkstyle pizza at an un-New York price introduced in 1999. It's a
pizza thats 30% larger than our large pizza. Launched
with an advertising campaign featuring big New Yorkers such
as Donald Trump, Fran Drescher and Spike Lee, this product
is the most successful new product in the history of Pizza
Hut.
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All the taste of the Pan Pizza packed into a pizza for one!
The Personal Pan Pizza revolutionized lunch and became
the perfect solution to satisfy pizza cravings in a hurry. We
introduced America to the perfect pizza for on-the-go back in
1983. Today, you can find Personal Pan Pizzas in airports,
college cafeterias and even sports arenas.

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The EDGE Pizza has toppings all the way up to the edge.
This pizza, overflowing with toppings and no outer crust, was
originally introduced in 1997. Everywhere they turned,
Americans were challenged with, Have you been to the edge.
A schoolkid standing on a desk, a football coach, Elvis
Presley and Mikhail Gorbachev were among the many to ask
this provocative question.
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This product was designed especially for the Echo Boomer

generation. The Ultimate Cheese Pizza is as much cheese as
you can fit on the Hand-Tossed-Style pizza crust, which
made it not just another cheese pizza, but the ultimate pizza
experience.

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The Sicilian Pizza is the most powerful pizza from Pizza

Hut. It was introduced in 1994, and it keeps coming back!
This is the mother of all pizzas with garlic, basil, and
oregano baked into the crust. No wonder we asked, Can you
handle it when we re-introduced the Sicilian Pizza in 1998.

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Mission:

Think Global, Act Local- with this motto Pizza Hut, Bangladesh dedicated its
resources and offered excellent service in providing delicious pizzas and at the same
time achieving customers satisfaction. Their mission statement is given below:
Pizza Hut provides the perfect mix of great food, great service and great place at a
great value to our customers who are looking for a grand experience. We believe in
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positive intension, and maintain a strong internal environment by developing our

competitive work force, which we trust. The latest technological tools along with the
best support systems from our franchiser YUM! International is used to ensure easy
workflow and to make our restaurants the favorite in the Country.

Code of Conduct:

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All Pizza Hut sites work to the CHAMPS standard

Cleanliness
Hospitality
Accuracy
Maintenance
Product
Speed

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These six items define the very core of customer expectations. CHAMPS have
become the vehicle, which drives Operations Excellence into the business and also
supported by a reward and recognition scheme for the Team members.

The CHAMPS check is a tool used to ensure consistency of service and product
quality across the entire Pizza Hut estate; in fact it is used for all the Tricon Brands
internationally.

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Marketing Objectives and Goals:

To hold the number one marketing position in the fast-food industry in

Bangladesh.
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 Be recognized chiefly for providing quality products, excellent care and

satisfaction to the customer.
To increase the number of pizza sales by increasing the number of outlets in
Dhaka city as well in other profitable parts of Bangladesh.
Successfully open two more outlets in Dhaka city in areas like Uttara and
Dhanmondi in the next 2 years and also in Sylhet.
To open a kids zone and serve meals specially designed for kids.
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Target Market:

The target market strategy is undifferentiated. It means that they do not target any
specific type of customer. Pizza hut started its journey with the focus of serving
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families mainly but they cater to people of all age group. Most of the male and female
come in groups of friends.

In fact the management claims that their target customers would be anybody who
loves pizzas. Since it is quite impossible to focus on the entire target group, they have
limited their attention to the foreigners living close to the diplomatic zone and the
teenagers who come from an elite society.

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Market Research:

Pizza hut has a broad range of customers. This is because pizza is extremely popular
with a wide range of people. In order to satisfy the needs of customers, marketing is
also involved in new product development. There are several steps to go through
before launching a new product. The Simulated Test Marketing would be the
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appropriate marketing tactics to evaluate the new product offering. In this type of test
marketing, the marketing department can show ads and promotions varying in
different ways. The new product will be offered to the customers along with the other
existing products. Then the authority should note how many customers are willing to
pay for the new product. For doing this the first step is to carry out research to find
out:

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What people think about pizzas (what role do they play in peoples
lives, when do they eat them and so on)

What do they like about pizzas.

What do they dislike about pizzas

What do they want from pizzas

This information is collected together and used to create for prototypes. The
ideas are tested first on consumers, before making any pizzas. Based on their
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observation, they should decide whether to keep this particular product offering in
their menu. If the feedback is not productive then the authority should cease
producing this product. Once they have perfected the pizzas, the product is
launched.

Marketing Strategy:

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Product

Price

Variety

List price

Quality

Discounts

Design

Allowances

Features

Payment period

Brand name

Credit terms

Packaging
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Services

Target customers

Intended positioning

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Promotion

Place

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Transportation
Logistics
In order to achieve the marketing objectives we need to follow some guidelines that
would influence the market share. If we focus on the Business Life Cycle of Pizza Hut
Bangladesh then it can be said that it is still in its growth stage. In order to extend the life
cycle for a longer time the marketing department could take some initiative or tactics. As

it is already known that the brand image of Pizza Hut is very strong due to its

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yearlong reputation though not much widely known in Bangladesh yet. For holding
marketing position, Pizza Hut is practicing Psychological Pricing Strategy during
promotions and other special occasions.

The authority can take steps to offer pizzas at an economy price (e.g. a price

range of Tk. 80 to Tk. 100, (excluding the VAT). The ground for
recommending this price range is, since Pizza Hut can afford to offer pizzas

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during sales promotion at Tk.99, therefore it is justifiable to offer pizzas at the

above recommended price. The manager informed us that this increases their
profit margin by around Tk.40000.

They could also facilitate their customer groups by offering coupons for the

regular customers like offering a substantial discount for family parties.

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 It has been observed that in spite of being a major international franchise they

are yet to come up with proper promotional tactics. In order to improve this
scenario, the Pizza Hut- Bangladesh authority could take some aggressive
promotional strategies. They have to utilize the print media for their benefit to
a greater extent. They can place their ads on the first or the last page in such a
position, which has to be colorful and would cover a significant amount of
column space.
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 Pizza hut can begin to give some facilities like home delivery service. Since it

is difficult to serve hot pizzas due to heavy traffic jam, it can be recommended
to deliver frozen pizzas.

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Product:
The first and the only truly international chain restaurant in Bangladesh, Pizza Hut
offers the same great taste, wonderful dining experience and excellent service.
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Since the majority of the population in Dhaka city is Muslim, it is very important that
Pizza Hut serves meals, which are to be accepted by their respectful customers. The
Pizza Hut team needs to assure that the food served is HALAL since it really does not
matter in other countries whether the food is HALAL or HARAM as long as the foods
are hygienic.
Like the rest of the world, Bangladeshis are also now aware and health conscious.
They have lots of preferences amongst food items and also in quantity of food intake.
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Number of vegetarians has increased and keeping that in mind, Pizza Hut offers
veggie pizzas. Customers also have the option to create their own pizzas selecting
extra toppings, extra cheese or those who wants less cholesterol can ask for less
cheese. Last year, in July, Pizza Hut launched new items such as - the new pizzaseafarer, seafood symphony, and beef supreme. These items will give added features
giving options to customers to try out dishes of their own choice.

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In order to have a significant market positioning in consumers mind, Pizza Hut could
introduce several pizzas with local taste and probably give them local names as well.
This process might be troublesome but once done, they might end up successfully. In
order to do so, they would obviously have to keep their own standard and quality of
product. To maintain their quality, people associated with the kitchen should be
efficient and highly trained since a variation in standard and taste might result in
dissatisfied customers.

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Product & Branding:

Pizza Hut has been very successful in positioning their brand name in the target
customers mind. The only things that Pizza Hut accomplishes while brand
positioning is that it has a superior product attribute. They can give a unique taste and
experience when one visits Pizza Hut. Pizza Hut positions themselves with strong
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benefit attribute by giving excellent service within convenient time. The strongest
attribute in brand positioning - beliefs and values, does not have so much to do with
Pizza Hut. All they can do is make the consumers believe that they are given extra
care and importance. Other than that, eating pizza doesnt actually make you feel
more important or attractive.

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Pizza Hut was very careful when it selected its name. The name Pizza Hut was
named keeping in mind all the crucial aspects needed to name a company in order to
be recognized in consumers mind. An important part of branding is that the name
itself should by itself inform the consumer about what the company is all about. For
this instance anyone can identify that Pizza Hut has something got to do with
pizzas. Pizza Hut is easy to pronounce, recognize and remember. The brand name
Pizza Hut is distinct from most of its competitors (especially in Bangladesh).

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Another important thing is that the name should be extendable and Pizza Hut can
be easily extended to www.pizzahut.com. The name of a company should be easily
translated into foreign languages. In order to avoid any sort of dispute or
dissatisfaction when the name is translated giving any vague or indecent meaning is
not probably possible with Pizza Hut. Finally, Pizza Hut like it should be is
registered and has legal protection. We can say that Pizza Hut gave a lot of thoughts

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when selecting their name in order to have a positive and long-lasting position in
consumers mind.

Another important thing that should be noted is that Pizza Hut in its all outlets serves
only Pepsi Co beverages. This is another plus point why consumers are likely to
remember the brand name Pizza Hut, since Pepsi is a very well recognized brand by
itself and almost everybody knows about their product.

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It is quite easy for Pizza Hut to introduce additional items to their product category
under the same brand name, such as new flavors, forms, colors, ingredients, or
package sizes. The vast majority of all new-product activity consists of line extension.
After having a positive brand positioning in consumers mind Pizza Hut has been
quite successful managing their brand. They offer the same quality and gives higher
priority to all consumers throughout the world. For all these reasons Pizza Hut has

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been able to serve so many consumers for such a long time and hopes to do the same
in the future.

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Price:

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In order to keep pace with the food industry in Bangladesh, Pizza hut tries to keep
their current pricing similar to their competitors. If the price is charged too high, they
wont be able to attract more customers and also keep the existing ones. If price
charged is too low, it can have a negative impact. Currently, the least price charged
by Pizza Hut is Tk 120 whereas Pizza Huts major competitor Dominous fixes its least
price at Tk 165. This gives Pizza Hut a competitive advantage over Dominous. But,

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our survey result on NSU students showed that 75% of them think that price of Pizza
Hut is high.

Majority of people in Dhaka come from lower and middle class, thus charging a little
more, keeping a narrow margin of profit would be appreciated. Pizza hut might also
start introducing the discount schemes for regular customers, students along with

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providing 10% discounts for celebrating birthday parties, which they have already
introduced.

Pizza hut can provide the free offer, saying if you buy one medium pizza then you
get one half of another medium or one personal pan pizza free. Giving such offers can
increase the number of customers.

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Place:

If Pizza Hut wants to make significant profit out their operation in Bangladesh, like in
any other countries it is very important to position it in proper locations. Currently
they have their outlet in Gulshan-1, which is a very good location and have access
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from all parts of the country. The nearby roads and the environment itself are
satisfactory. Even though they have this outlet located in a very good location many
people is unwilling to travel all the way from their home to have pizzas because of the
distance. This statement is also supported by the NSU surveyed students who ranked
location as the second important criteria for selecting a fast food shop. In order to
reach more consumers, extending their outlets would be a very good step that they can
take. Since Pizza Hut is planning to open more outlets within the next few years it is a

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very crucial for them where would they open their next outlets to maximize more
consumers.

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According to the current situation and trends it can be said that Dhanmondi and Baily
Road could be the best location for their outlets. Besides this two place, Pizza Hut
could be thinking of opening other outlets in Uttara and Bashundhara. The reason
behind the latter two locations is because Uttara is being more and more populated
nowadays and the place is quite far from Gulshan-1, so many people, eager to have a
pizza dont go here because of the distance. The reason behind thinking of
Bashundhara is, people from different parts of Dhaka are moving to Bashundhara and

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this should also be noted that many private universities are building their main
campus in Bashundhara. North South University (NSU) & Independent University of
Bangladesh (IUB) has already started building their main campus there. The location
has a notable large number of offices (mainly private office) located there, thus people
involved in jobs could go to Pizza Hut and have a quick bite.
In order to expose their brand, Pizza Hut should not only think of extending their
outlets in Dhaka city but to other districts as well. Sylhet and Chittagong could be a

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very good location to extend in the first place. They can gradually extend their outlets
to all over Bangladesh.

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Distribution Strategy:

Pizza Hut can run smoothly once they have extended their branches. Now with the
only outlet that they have, they do serve a lot of customers everyday but could
increase them when they open new outlets.

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One very important step that Pizza Hut can undertake is by introducing Home
Delivery service. Once this step is taken, many customers would be happy and have
a pizza sitting at their home comfortably. Other initiative that Pizza Hut could take is
that they can introduce drive-in outlets in Bangladesh in several suitable locations.

This would distinguish Pizza Hut from other fast food shops as no one has taken this
step before. Besides, drive-in outlets are very common in rest of the world. This could

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be costly and not so profitable in the first stage but the novelty of this idea has a
chance to be well accepted by the consumers and Pizza Hut would gain the position of
being pioneer by introducing this and might even enjoy a competitive advantage of its
competitors. In order to make customers delighted, Pizza Hut need to be innovative
from all aspects. Then gaining the best position in the overall market would be very
easy.

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Promotion:

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Since the focus has been to develop a product mix, which uploads the tradition of
Bangladesh, it would be wise to promote this product through a campaign, which
would clearly emphasize on cultural values. Blending the western concept with the
local image will be a difficult task and at the same time not a very good approach for
marketing. Therefore, if Pizza Hut introduces or launches their new product during
any traditional festival that the Bangalis give value would be given higher priority.
For instance, rather than launching the product during any time, it would be better if

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the product is launched on the occasion of Pahela Baishakh. This can add a positive
impact and people would really trust to what Pizza hut means saying Think Global,
Act Local. Since Pizza Hut does very little promotions on T.V, most of the consumers
have heard about Pizza Hut mainly through friends and relatives. Our survey showed
that 51% of the NSU students have heard of it from word-to-mouth sources and 39%
were informed through leaflets. The Pizza Hut authority can take initiatives to air
more number of ads on the television and newspapers and also in attractive posters on

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selected magazines could proved to be the best promotional tools for Pizza Hut. The
ads on T.V should be broadcasted in Channels like NTV, Channel I, during the time of
6pm 9pm, which is considered to be the prime time for families.

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One advertising promotion that Pizza Hut undertakes is, they distribute leaflets hand
to hand in front of universities like NSU, AIUB etc, to attract more and more students.
In the month of March, Pizza hut provided the Shadhinota Offer on the occasion of
the Independence Day. Later, they decided to extend the offer till the end of April
because of the Bengali New Year coming up. The offer included one personal pan
pizza (PPP) for Tk 99 only. (The advertisement for Shadhinota offer and the
Noboborsho offer are attached in Appendix C.) Such an offer was also given during

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the month of Ramadan when customers were allowed to have as much as they can
paying Tk 200 only.

Pizza Hut is also offering Tk 40 per scoop of any flavored ice cream in this summer.
The advertisement for ice-cream offer is shown below.

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One of the main focuses of Pizza hut should be home delivery service. This could
gain more customers. Promotion can also be done through direct marketing.
Customers can be provided special discounts on the Valentines Day, Christmas Day
etc. The local authority should keep in pace with all the current trends of the world

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and try to identify the needs of the younger generation. In order to have a leading
position, adapting the ever-changing world is very crucial.

Operations

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The Pizza Hut restaurant operation is the face of the company. The role of operations
is to be obsessed with the quality of our pizza and the experience that the customers
receive.

There are 3 distinct categories of restaurants.

Full Service Restaurants

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These are the traditional pizza restaurants offering a seated service and take-away.

Home Service Restaurants

These restaurants offer home deliveries and take-away.

Restaurant Based Delivery

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These restaurants are full service restaurants combined with a delivery and takeaway
service.

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Customer Relationship Management:

One of the main reasons for Pizza Huts success is building close customer
relationship. The brand image of Pizza Hut helped it to gain eager consumers but their
more than a year journey was successful because of building profitable customer
relationships by delivering superior customer value and satisfaction. It is what Pizza
Hut calls Customer Mania.
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Since the promotion and advertisements of Pizza hut are limited, it is only the
satisfied customers who spread words about Pizza Huts superior values. The effort
and the extent to which Pizza Huts employees undergo to satisfy consumers are given
below in some dramatic illustrations.
On a rainy night, a couple on their first visit to Pizza Hut was escorted by Amit - one
of the employees of Pizza Hut. He then introduced them to the server, Shohug. While

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serving their food, Shohug somehow found out that it was their first wedding
anniversary. He went up to Amit and requested to be released for 5 minutes. He came
back drenched to the bone, with a bouquet of flowers in his hand. Shohug along with
the team then went up to the couple and wished them. The couple was totally taken
aback and on their way out, wrote on the comment card that theyll never forget this
visit which had indeed touched their hearts.

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In yet another busy day at Pizza Hut, Jasim - a server, came up to Akku Chowdhury,
the directing manager of Pizza Hut and told him about one of the customer who did
not have any local currency (Tk) but only carrying dollars with him. He was not even
carrying a credit card. Mr. Akku Chowdhury, went up to Mr. Islam, the customer and
found out that he had come with a guest, and would be put in a very awkward position
of his guest had to pay. Mr. Akku did not hesitate for even a moment and settled the
entire bill from his own pocket. Till now the customer has not come back to refund

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the money, but at that moment Akku with his instant foresight had saved Mr. Islam
from the embarrassment.

A foreign family came with their child to the Gulshan outlet of Pizza Hut. The child
was playing in the childrens zone with his mother. The child started crying out of
hunger while the family was eating, as the toddler could not eat the pizza. The mother
had forgotten to bring the milk for the child. Akku saw the plight of the child and

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rushed to the nearest shop and bought a pack of milk. The family was so appreciative
of the great concern shown by Akku that they thanked him profusely and
acknowledged that they had never seen such service all their life.

These are only a handful illustration what Pizza Hut is ready to do to delight the
consumers. Serving the consumers within the promised is another of their strengths.

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Usually Pizza Hut serves the consumer a few minutes before the promised time,
which not only satisfies the consumers but also delights them.
Pizza Hut goes to the length of satisfying consumers by providing various
entertainment and surprise gifts. Standing on the chair, singing and dancing are one of
their unusual but frequent ways of wishing a birthday person. Customer
Relationship Management simply doesnt stop here. Giving promotional offers during
Noboborsho (Bengali New Year), Shadhinata Dibosh (Independence Day) and

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Ramadan month reflects the franchising companys respect for our culture and
impresses upon the mind of the consumer that Pizza Hut is thinking globally and
acting locally. All the initiatives and the efforts that Pizza Hut undertook to delight the
consumers with outstanding service earned them on January 2004, the 22nd
Restaurant Excellence Award in the whole subcontinent.

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As mentioned before in this report that Pizza Hut does not do any customer
segmentation hence they give all consumers equal priority. But it can be
recommended that to increase consumer equity, Pizza Hut can offer their loyal and
regular customers discounts once or twice a year.

Though Pizza Hut do send their promotional offers and birthday wishes to their
consumers based on information collected through questionnaires and feedback

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received from the net, our survey revealed that most of the consumers who dine out at
Pizza Hut hardly ever return the questionnaire. Pizza Hut can increase consumers
feedback by making loyal consumer of the year through feedback and can offer
special promotional offers for the individual and the family. This will not only
increase feedback for Pizza Hut to know their consumers better but consumers will
be more eager to give feedback and might more frequently dine at Pizza Hut.

111

As Pizza Hut is open from noon to midnight, they have some regular and fixed
number of customers at late night. They can offer a free appetizer item with pizzas or
other promotional offers starting from 11:00 pm-12:00 am which can increase the
number of late night consumers.

112

Though Pizza Hut does an excellent job of satisfying customers but the above
suggestions are worth mentioning as it always costs 5 times more to attract a new
customer than to keep a current customer happy.

113

114

115

Situational Analysis:

We have done the situation analysis with the help of Porters Model, Pest Analysis
and also with the SWOT analysis. We are finding all the ins and outs of Pizza Hut and
the Bangladeshi environment where they are conducting their business.

PORTER DIAMOND MODEL

116

Firm Strategy,
Structure
& Rivalry

Factor
Conditions

117

Demand
Conditions

Related
& Supporting
118
Industries

A nations competitiveness depends on the capacity of its industry to innovate and

upgrade. A fast food restaurant such as Pizza Hut has gained advantage against their
competitors such as Dominos Pizza because of pressure and challenge. Pizza Hut
also benefits from having strong domestic rivals, aggressive suppliers and demanding
local customers. Various differences in national values, culture, economic structure,
institutions and national histories all contribute to competitive success of this
119

company. Additionally, in order to maintain competitive advantage, Pizza Hut needs

to adapt a global approach to strategy. Once Pizza Hut achieves competitive
advantage through innovation, it needs to sustain it by relentless improvement,
innovation, and upgrade, moving towards sophisticated approaches.

The four elements of Porter Diamond Model:

120

The four dimensions of Porter diamond Model that concerns the international
competitiveness of a product or company are to be concerned in the context of
Bangladesh. This model is useful to explain the business territory and propositions
when a company crosses its home boundary and becomes international.

Factor Condition

Demand Condition
121

Related & Supporting Industries

Firm Strategy, Structure & Rivalry

All of the above terms of Porters Diamond Model are taken into consideration for
Pizza Hut and their operation in the Bangladeshi market.

Factor Condition
122

Factor conditions mean the factor of production; the factors that will play as a catalyst
to produce goods. Factors of production are labor, land, natural resources, capital &
infrastructure. These factors eventually will determine the flow of trade. From the
perspective of skilled labor, Bangladesh has the advantage of large population with
potential manpower. Also it has many unemployed people who are seeking for job.
So, employees will be available in Dhaka as there are a decent number of educated
people coming to the food and hotel business sector. So the availability of labor is the

123

major advantage that Pizza Hut is enjoying in Bangladesh. In considering the land,
Dhaka and Chittagong are the two major places where the project building of Pizza
Hut is undergoing. The location of Dhaka city is Gulshan-2 and there are two
proposed sites in Dhanmondi & Uttara. For Chittagong the suitable proposed location
is G.E.C. turning point. Bangladesh is sufficient well with its natural resources to run
this business but the problem lies on inefficiency of government offices because of
corruption. But the recent measure taken by caretaker government to cut down

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corruption is the bright side of running business smoothly. The infrastructure of this
country is improved well enough in the last decade and that is also positive for us to
consider.

Demand Condition
125

The demand for fast food in Bangladesh is always here. The result one can see on the
Dhaka street. Almost in every road you can find an outlet of fast food. This may be
frustrating for us in a way that most of our customers are acquired by those fast food
shops. But the bright side of this story is almost all of those are of less quality in terms
of food quality as well as the decoration and service quality. This situation opened the
gate for the foreign brands of fast food chain. The outlet of KFC and Pizza Hut is
126

always in rush to deliver to its customers and most of the customers are from the
younger generation of the country. This means there is certainly a demand for a
quality food with the essence of international brand among the youngsters of
Bangladesh.
There is high demand for Pizza & Pasta in the high class and upper middle class
people of Bangladesh for these customers have a high purchasing power and look for
quality products. Starbucks produces a wide variety of Pizzas which helps the

127

customer to get taste of various cultures of the world. Thus, with world class quality
and wide variety of choice Pizza Hut is certainly and will be able to quench the thirst
of people of Bangladesh.

Related & Supporting Industries

128

Pizza Hut is facing problem in coordinating the related and supporting industries here
in Bangladesh. Because of the economic condition of Bangladesh a lot of industry is
yet to be produced to support the food chain giant Pizza Hut. The quality raw
materials that are essential for a food item to be an actual Pizza Hut item is very
difficult to collect. Pizza Hut is not finding the right quality of meat, potatoes, pickles,
white sauce, mayonnaise, vegetable, etc. So Pizza Hut producing them here or
bringing them from some other countries to maintain the quality of the foods. The

129

availability of land, labor, capital in total the factors of production is helping them
partially to produce that in this country and rest of it they are importing from other
countries.

Firm Strategy, Structure & Rivalry

130

In Bangladesh, Pizza Hut as the franchisee is following the same strategy structure
that is dictated by the headquarters (franchiser) and be a lone firm specialized in
serving quality Pizza. With an international superior brand image and freedom of
choice, Pizza Hut is easily competing against local Bangladeshi rivals & international
rivals like: KFC, A&W Wimpy etc.

131

132

THE FIVE FORCES OF INDUSTRY COMPETITIVENESS

The five forces that determine industry competitiveness are:

BARGAINING POWER OF BUYERS

BARGAINING POWER OF SUPPLIERS

THE NEW ENTRANTS

133

THE THREAT OF SUBSTITUTES

RIVALRY

BARGAINING POWER OF BUYERS:

All companies when entering into a foreign market predicts the likelihood of
maintaining their customers. In the market of Bangladesh, Pizza Hut has a number of
134

competitors, such as Dominos Pizza, Pizza Corner, Wimpy, KFC, Helvetia, Kings
Confectionary etc. So to attain a large market share the company is trying to offer
competitive prices and carry out extensive promotions. Since Pizza Hut offers a wide
variety of items it also helps the shop to attract a larger number of customers, where
they can get quality meals for themselves.

BARGAINING POWER OF SUPPLIERS:

135

All companies when entering into a foreign market looks at the power of the
industrys suppliers to see if it can gain a competitive advantage in the market. In this
case, the franchiser of Pizza Hut is trying to build up a supply chain that is necessary
to maintain production. But till to date the franchiser is fully responsible for supplying
the materials to Pizza Hut in Bangladesh.

136

THE NEW ENTRANTS:

Entry of Pizza Hut in the market of Bangladesh had opened up an opportunity for new
firms such as McDonalds, Barista caf, House of Doughnuts, Dunkin Doughnuts
entering the industry. Pizza Hut will continuously try to determine the impact they
might have on their company. So to deal with such new entrants pizza Hut will keep
their prices competitive and high customer loyalty by maintaining the quality of their

137

products. On the other hand having a strong brand image and product differentiation
Pizza Hut will also act as a threat to the new entrants in the market.

THE THREAT OF SUBSTITUTES:

Pizza Hut is always considering the availability of substitute goods, such as burgers,
shawrma, chicken fry etc offered by various international fast food chain, hotels, and

138

restaurant and anticipate the reactions of their customers. So to offset such

competitive forces they are trying to keep the prices competitive, which will help
them to maintain the existing customers. Their product differentiation is also helping
them to avoid the threats of these substitutes.

RIVALRY:

139

Pizza Hut to maintain competitiveness is examining the rivalries that currently exists
between themselves and the competitors and seek to anticipate future changes in this
arrangement. There are a number of rivals for Pizza Hut, such as Dominos Pizza,
Pizza Corner, Wimpy, KFC, Helvetia, Kings Confectionary etc. Common strategies
that Pizza Hut must use to maintain and increase their market strength include:

140

Increasing productivity by training the workers. A trained workforce will mean

more efficiency, thus reducing overall costs.

Differentiating current goods and services from those of the competition

through quality and competitive pricing.

Providing a spacious homely and calm atmosphere in their store so that

customers feel the urge to frequently visit the place.

141

142

Pest Analysis

Political Environment:

A stable political environment is a pre-condition in order to ensure smooth business

operation in any country. In recent years, the political environment of Bangladesh is
experiencing a more or less stable economy and thus investors are not facing many
143

difficulties with their business provided they have strong political support and
accessibility. However, more recently in times of the care taker government the
situation of the country has improved even further and this has helped many
businesses. Being a service-oriented business the impact of political environment of
Pizza Hut is considerably not that significant as other businesses. Although the
economy of Bangladesh is almost stable there are some political inconsistencies
which affects the businesses like strikes, terrorists threats etc, which have not been

144

happening in the term of the care taker government. These could have hampered the
business of Pizza Hut as the store has to be kept closed during those times. Moreover
Pizza Hut is a US based firm and the US wheedles a considerable sphere of influence
in Bangladesh. Thus, Pizza Hut should be able to easily gain support from the local
government.

Economic Condition:

145

The marketers need customers who comprise the demand and buying power for their
products. This is true in the case of Bangladesh also. However for quite a few decades
Bangladesh has been passing through a severe downturn situation and things have
improved much in recent years. Annual GDP increase has improved the per capita
income and hence the total expenditure in the economy. As their income has
increased, people have become more conscious about their lives and trying to adopt

146

the western fast lifestyle. People are spending more on personal consumption and are
very conscious while purchasing their food items. They seek more world-class fast
food chains now than ever before.

Pizza is different from the local cousines that are available the pre-capita income
condition and increase in purchasing power of the customers can be a special
opportunity for Pizza Hut that has come up with wide variety of Pizzas along with

147

other delicious items. In a subsistence economy like, Bangladesh, here most of our
consumption is made on domestically produced goods; this improved situation can be
a great opportunity for the consumption of foreign foods.

Net factor Per

Year
Income
2000-2001 2963.0

GNP
5504

capita Annual rise of GDP at constant

market prices (TK. In crores)
5.3
148

2001-2002 3445.1
2002-2003 3513.3
2004-2005

5749
5955

5.5
5.8
5.2

Social Influences:

Bangladeshi people are very entertaining and like gossiping, but there is lack of space
in our country where people can have go for outings and chat with each other.
149

Moreover, because of the impact of global culture in our country, people particularly
from rich and upper middle class are adapting the Western culture i.e. dress up, food
items. Especially office going people and students are getting addicted to coffees
more often than they had in the past. These people often prefer to go to the fast food
chains to spent their leisure and chitchat with any friend for time as well as space
constrain. So a food chain like Pizza Hut will not only provide various types of pizza
to people but also will provide them a place where they can express their feeling and

150

share views with each other. Due to all these reasons, the social acceptability for fast
food shops is increasing day by day, which is an optimistic surface for the business
growth. People usually go to restaurants where they have to spend approximately
1000 taka per meal, here at Pizza Hut, they dont have to spend that much. This makes
it more affordable for the younger crowd and since fast food is mainly for the younger
generation this will work in our advantage.

151

Technological Influence:

Technological advancement is especially essential for service industry. In Bangladesh

there are not enough food courts, which can prepare pizza with the actual essence
because of lack of pizza producing equipment. Most of the shops have one or two
varieties of so called pizzas and the customers do not have the option to choose from a
wide range of pizzas therefore accept whatever they are offered at instant.

152

Pizza Huts franchise with Bangladesh is a great opportunity in such a growing market
condition. We the franchisee uses that technologies whatever headquarter (franchiser)
dictate and provide the customers pizzas with the actual flavor. The shop is able to
produce a wide variety of pizzas, which will meet the demand of the customers and
consequently bring a new era for pizza chains in Bangladesh.

153

154

155

SWOT Analysis:

SWOT stands for Strengths, weaknesses, opportunities, and threats. SWOT analysis
reveals the internal strengths and weaknesses and external potential opportunities and
threats of a firm. The SWOT analysis of Pizza Hut will give us the overall profit

156

potential of this firm. Our SWOT analysis has tried to focus on the controllable
factors that Pizza Hut has already taken into consideration.

Strengths:

157

The brand image of Pizza Hut is presumed to be one of the greatest strength they
possess. The customers of Bangladesh are easily attracted by the brand image of the
Pizza Hut.

As a successful international food chain Pizza Hut knows how to blend with the
different cultures across the globe. This is the story behind the international success of
this company and considered one of the greatest strengths of Pizza Hut.

158

The strictness of the procedure to acquire and retain the franchising of Pizza Hut is
one of the strengths of the company. Through this the franchisees will be able to
maintain the quality of food and the quality of service thus the customers will get the
maximum satisfaction with the touch of international hospitality.

159

In Bangladesh, the location of Pizza Hut can also be regarded as one of its prime
strengths. Elite members of the society, one of their target audiences, frequently visit
Gulshan Avenue and the eye-catching exterior decoration of the franchise makes
people to stop for a while and take a look inside. As they move inside, they do not
usually leave without having a bite. Also the floor space is another encouraging aspect
of it.

160

An educated and smart group of young energetic employees has added to the many
plus points of Pizza Hut. Their sober behavior and efficient way of handling
customers has certainly added value to the franchise.

Product and brand image of Pizza Hut has been their added advantage. Everybody
those who get proper exposure to the media can recognize their brand .But speaking

161

globally their major strength closely lies with the name of PepsiCo. One of the
strengths of Pizza

Hut has been to be a division of PepsiCo since 1977 and now an integral part of
Tricon. It is the world's largest pizza restaurant as outlined above. It has a good
reputation and a good branding. It can raise the profile of the company to gain the

162

ability to sell at higher price, to recognize its products through the corporate image
and to launch new products more easily.
.
However, Pizza Hut has a good franchising development that has risen rapidly since
its foundation in 1958. In 1986, 135 individuals, partnerships and/or corporations
operated 2,395 Pizza Hut systems restaurants and 96 delivery-only units which serves
the customers within the promise time.

163

Pizza Hut also offers a sit-down, conversational type restaurant where families can
take their children for birthday parties for example.

Pizza Hut's broad selection of products also makes it easier for them to market to
different market segments.

164

Weaknesses:
Globally, Pizza Hut faces one major problem and that is the internal conflict between
the franchisees. Such problems are widespread when there is more than one franchise
of the same company in the same country.
The franchising fee of Pizza Hut is very high as the money has to come from
franchisees own pocket. This has an adverse effect on the pricing of its products in

165

Bangladesh which is a quite high comparatively. This high price acts as a barrier of
tapping into the full market potential of Bangladeshi consumers.
An indirect weakness that Pizza Hut has is that they have lost a lot of their customers
and market share due to such intense competition with competitors. Pizza Hut's
opportunities are almost endless. They can increase revenue with their new innovative
pizzas, and increase brand loyalty with good customer service.
Considering the Bangladesh perspective:

166

Unavailability of quality raw materials in Bangladesh is a big weakness to be

considered which affects the price and quality of the product.
The initial set up cost is too high to invest for an investor in this country which
increases the risk of the project.

Their prime weakness is the lack of home delivery service like the other fast food
shops for examples Dominos Pizza, Subcity.

167

They are yet to develop any specific meals for the children like the other fast-food
chains in Dhaka.
Very weak promotional campaign can also be regarded as one of their major
weaknesses. People expect that such a large multinational franchise would be creative
in their promotional approaches. But when their advertisements are very rarely seen in
the newspaper and are not aired on the T.V.

168

Opportunities:

The demand for Pizza Hut is here in Bangladesh among the young generation and this
is the best opportunity for Pizza Hut to increase their profitability here and capture a
very big market share.

169

Another opportunity that Pizza Hut can have is introducing a new ordering online
system. Anyone with Internet access can order whatever they wish and get it delivered
to their house without even speaking to someone.

In Bangladesh, Pizza Hut can have the benefit of the disorganized market structure in
the fast-food business. Even though there are several well-established fast-food stores,
they are not creative in coming up with new flavors and recipes. This discourages the

170

food lovers. Also, some of the food lovers may not appreciate the fact of the selfservice. Since Pizza Hut Bangladesh has both type of service, they can make it to their
advantage by properly organizing this disoriented fast-food market and make
themselves established even further.

Due to heavy traffic congestion in Dhaka city and there is only one outlet of Pizza
Hut, it is not possible to deliver hot pizza in 30 minutes. Since they cannot maintain

171

their standard, so they avoid home delivery. They can introduce the home service
delivering frozen pizzas.

The cheap labor cost in Bangladesh acts as a very good opportunity for Pizza Hut as
they can run the business relatively at a lower cost in spite of the huge initial set up
cost with high franchising fee.

172

Threats:

Pizza Hut's number one threats are from their competitors. Currently, their closest
competitor is Domino's Pizza. Domino's main competitive advantage over Pizza Hut
is their price. It is generally lower than Pizza Hut. Also, Domino's was very profitable
when they ran the promotional deal of delivering a pizza at home.

173

The other competitors who are considered as threats for Pizza Hut for delivering
quality of food and service and also with the experience of international market
includes, KFC, Nandos etc.

174

175

Ethical and Social Responsibilities

To earn customers trust and to stay put in business, it is indispensable that a company
should practice ethical and social responsibilities. Pizza Hut imports all its raw
materials from abroad but they also keep in mind the religion sensitive people of this
176

country. Therefore, all the raw materials purchased are halal and under strict
monitoring of the Pizza Huts authorities. Under Pizza Huts code of conduct, they
strictly maintain cleanliness and hygiene food and never serve a day-old product
items.
It is also ethical that Pizza Hut provides a nutritional chart in its website which
informs health conscious consumers how much cholesterol and other proteins that
they are having.

177

If Pizza Hut includes the ingredients used for their items in the website and have a
ingredient chart in their outlet, this would then be a ethical responsibility to inform
consumers who might have restriction on consumption of certain ingredient items.
Pizza Hut is also going to introduce the online delivery service within the next few
months. It is their ethical responsibility to protect consumers private information on
the website.

178

Pizza Hut often undertakes social responsibility. As they are the part of the society,
Pizza Hut takes part in performing social responsibility. For example, Pizza Hut
treated 150 orphans for free in their fast food shop. Pizza Hut already practices green
marketing the use of environmental friendly materials such as water based paint
and recycled Pizza boxes.

179

Pizza Hut defines its mission statement in broad social terms rather than narrow
product terms and focuses their business actions towards socially responsible
marketing. Their mission statement includes not only welfare of its consumers and
employees satisfaction but also asserts maximization of life quality through
improvement in the quality of the environment.

180

Environmental considerations

Pizza Hut (UK) uses environmentally friendly materials where practical e.g. water
based paint and recycled Pizza boxes.

Finance and Planning

181

In support of their business goals, the Pizza Hut Finance function is split into two
teams, Control and Planning.

The overall role of Control is to ensure that their financial statements are accurate and
reflect a true and fair view of the business performance. It ensures that all transactions
entered into by Pizza Hut are appropriately recorded. It also has a responsibility to
ensure that their assets are protected, through appropriate controls and processes.

182

Within Control, Pizza Hut has teams that are responsible for the following:

Preparing and reporting accurate data to senior management, Investors and Statutory
bodies

183

 Supporting the expansion programs of the Franchising and Business development

teams

Analyzing variances from Plan and Forecasts to facilitate and influence decision
making

184

 Paying over 12,500 employees on a weekly basis and ensuring the related tax and
statutory responsibilities are discharged

Paying the suppliers who keep them supplied with food, drink and the services that
they need to run their restaurants

Treasury and Tax management

185

 Insurance and Estates management

Pizza Hut also have specialized tax expertise to ensure that our liability to the
government is calculated properly.

186

Planning's role is to ensure that their underlying business performance is analyzed &
understood, that their business & units have suitably stretching performance targets
and that our continual drive to improve their business returns is well on track.

187

Structural Planning

188

 Business Planning, who manage the total business and individual unit budgeting
process, as well as providing commercial analytical support to their Operators

Strategic Planning, who drive the long range planning process, and who support
strategic projects around the business

189

 Financial Investment, where they focus on returns is displayed through control of

their investment processes

Both Planning and Control team members spend much of their time helping other
team members in Pizza Hut, and in turn are sought out to add commercial and
financial advice to the business as they work together in achieving their business
goals.

190

191

TRAINING

Training (Team Members)

Pizza Hut is a company with a track record of promoting from within. While they are
happy to employ people looking for part-time work or a flexible job that will fit in
with their lifestyle, there are also opportunities if someone is looking for a long-term

192

career with them, the opportunities to move into management and world-class training
are definitely there for you.

Training (Management)
At every stage of your development, you'll be exposed to a series of on- and off-thejob training modules that will ensure you're ready to handle more and more
responsibility as your career develops with Pizza Hut.

193

As you progress through the program, you'll not only learn everything you need to run
your own business; you'll discover increasingly advanced ways to develop and boost
your passion for people and your desire for success.

Deputy Designate Manager

At Deputy Designate level, your training will consist of the following:

194

ON-THE-JOB MODULES
Orientation
Getting Started
Basic leadership skills
Cleanliness
Sanitation & Food Safety
Safety & Security

195

 Basic Product Management

Basic Labor Management
Basic HR Management
Crisis Management
Cash Management
Service Recovery
Opening the Restaurant

196

 Closing the Restaurant

Shift Change
Floor Management
Receiving & Storing Product

CLASSROOM MODULES
Orientation

197

 Technical Skills
Basic Leadership Skills

198

Deputy Manager
Earn a promotion to Deputy Level, and you'll experience the following:

ON-THE-JOB MODULES
Selecting Team Members
Recruiting Team Members
Team Member Training

199

 Advanced HR Management
Improving Team Performance
Advanced Product Management
Concept Modules
Advanced Leadership Skills
Preventive Maintenance

200

CLASSROOM MODULES
Train the Trainer
Advanced Leadership Skills
Systems & Administration

201

Restaurant General Manager

202

Even when you reach the most powerful role in the restaurant, the training doesn't
stop. All the Restaurant General Managers have the opportunity to taste the following
advanced training:

ON-THE-JOB MODULES
Forecasting

203

 Managing the P&L

Conducting Period Meetings
Restaurant Sales & Marketing
Ops Excellence
CLASSROOM MODULES
Managing meetings
Business Development Programme

204

 CER (Champs' Excellence Review)

Area Manager

Pizza Hut offers their Area Managers advanced training in a vast number of
behavioral workshops, which include:
In-store Operational Standards (STAR)
205

 Personal Development Program

Time Management
Presentation and Training Skills
Performance Management
Health & Safety
GTT (Group Training Techniques)

206

BENEFITS

The longer one stays with Pizza Hut, the more benefits they will receive. After their
first 6 months, they will receive a Whitbread discount card, which entitles them to
discounts at a number of leisure and retail outlets.
Depending on your role, you'll also be eligible for our pension scheme, PPP
healthcare and long service reward.
207

208

209

Promotion Policy:

This is a very important tool for an acclaimed business organization like Pizza Hut
operating in a market like Bangladesh. So, Pizza Hut can improve its operations by
conducting a rigorous advertisement campaign. This is very important for Pizza Hut
as well as we all know that, a big portion of our target customer, the younger
generation of this country is well aware of Pizza Hut. So there can be any

210

misconception among the customers about Pizza Hut or about the food of Pizza Hut
as they did not get the information from any formal or official sources. So this is a big
time for Pizza Hut to stand strong and declare their standing on any issue through
their promotion to avoid these misconceptions (if any) among the target customers.
This is also an opportunity for Pizza Hut to acquire those customers of this country
who are not at all aware of Pizza Hut and that can be done through effective
promotion.

211

The promotion plan for Pizza Hut is as follows:

Our advertising campaign is for 1 year. We want to divide our advertising into four
segments:
1st month intensive advertising with 360 degree approach
2nd month advertising with little less effort
3rd month advertising with minimum effort

212

After 3 months we will run ads on television channels and newspapers randomly to
get in touch with our customers. Between this time if there is any occasion and
festival or any new offer is introduced then there will be suddenly a lot of TV and
news paper ads to get the customers noticed about the offer.

Advertising budget for the 1st month

Electronic media (Television)

213

Channel

N TV

Time

Per Day

Advertising

Cost

advertising

cost (for 1 week)

1st month

Weekdays (on

duration
Weekdays

For news,

Sunday between

30 seconds

Weekdays

10-30 to 11-00

just before

(22500X3)+(24000X3)

news, Tuesday

news and in

= 139500

between 10-30 to the 1st mid in

214

Weekends

1026000

11-00 and

News

(22500X2)+(24000X2)

Thursday

Weekends

= 93000

between 7-30 to Do for the

For program,

8-00 news)

news and 30

12000 X 2

Weekends (on

seconds

= 24000

Friday, and

In mid break

Saturday from 7-

of program
215

30 to 8-00 news)
Mid breaks in 9
o clock programs
on weekends (on
Friday, and
Channel I

Saturday)
Weekdays (on

Do

For news,

Saturday

Weekdays
216

1026000

between 10-30 to

(22500X3)+(24000X3)

11-00 news,

= 139500

Monday between
10-30 to 11-00

Weekends

and Wednesday

(22500X2)+(24000X2)

between10-30 to

Do

= 93000

11 news)

For program,
217

Weekends (on

12000 X 2

Friday, and

= 24000

Saturday from 730 to 8-00 news)

Mid breaks in 9
o clock
programs on
218

weekends (on
Friday, and
E TV

Saturday)
Weekdays (on

Do

For news,

Saturday

Weekdays

between 10-30 to

(13500X3)+(18000X3)

11-00 news,

= 94500

Monday between

Weekends
219

702000

10-30 to 11-00

(13500X2)+(18000X2)

and Wednesday

= 63000

between10-30 to

For program,

11 news)

9000 X 2

Weekends (on

= 18000

Friday, and
Saturday from 7220

30 to 8-00 news)
Mid breaks in 9
o clock
programs on
weekends (on
Friday, and
Saturday)
221

For news,
Weekdays
Bangla Vision

Weekdays (on

Do

(13500X3)+(22500X3)

Sunday between

= 108000

10-30 to 11-00

Weekends

news, Tuesday

(13500X2)+(22500X2)

between 10-30 to

= 72000
222

792000

11-00 and

For program,

Thursday

9000 X 2

between10-30 to

= 18000

11 news)
Weekends (on
Friday, and
Saturday from 7223

30 to 8-00 news)
Mid breaks in 9
o clock programs
on weekends (on
Friday, and
Saturday)
Total advertising budget for 1st month in television = 3546000 BDT
224

2nd Month advertising budget

Channel

N TV

Time

Per Day

Advertising

Cost

advertising

cost (for 1 week)

2nd month

Weekends (on

duration
Weekends

For news,

Friday, and

30 seconds

Weekends

Saturday from 7-

just before

(22500X2)+(24000X2)

30 to 8-00 news)

news and in

= 93000

225

468000

Mid breaks in 9

the 1st mid in

For program,

0 clock

News

12000 X 2

programs on

and 30

= 24000

weekends (on

seconds

Friday, and

In mid break

Saturday)

of program

226

Channel I

Weekends (on

Do

For news,

Friday, and

Weekends

Saturday from 7-

(22500X2)+(24000X2)

30 to 8-00 news)

= 93000

Mid breaks in 9

For program,

o clock programs

12000 X 2
227

468000

on weekends (on
Friday, and

= 24000
Do

Saturday)

324000
E TV

Weekends (on

Do

For news,
228

Friday, and

Weekends

Saturday from 7-

(13500X2)+(18000X2)

30 to 8-00 news)

= 63000

Mid breaks in 9

For program,

o clock programs

9000 X 2

on weekends (on

= 18000

Friday, and
229

Saturday)

For news,
Weekends
Bangla Vision

Weekends (on

Do

(13500X2)+(22500X2)

Friday, and

= 72000

Saturday from 7-

For program,
230

360000

30 to 8-00 news)

9000 X 2

Mid breaks in 9

= 18000

o clock programs
on weekends (on
Friday, and
Saturday)
Total budget for 2nd month = 1620000 BDT
231

3rd month advertising budget:

Channel

Time

Per Day

Advertising

Cost

advertising

cost (for 1 week)

3rd month

duration
N TV

Weekends (on

Weekends
232

For news,

372000

Friday, and

30 seconds

Weekends

Saturday from 7-

just before

(22500X2)+(24000X2)

30 to 8-00 news)

news and in

= 93000

the 1st mid in

News

233

Channel I

Weekends (on

Do

For news,

Friday, and

Weekends

Saturday from 7-

(22500X2)+(24000X2)

30 to 8-00 news)

= 93000

234

372000

235

E TV

Weekends (on

Do

For news,

Friday, and

Weekends

Saturday from 7-

(13500X2)+(18000X2)

30 to 8-00 news)

= 63000

236

252000

For news,
Weekends
Bangla Vision

Weekends (on

Do

(13500X2)+(22500X2)

Friday, and

= 72000

Saturday from 730 to 8-00 news)

237

288000

Total advertising cost for 3rd month = 1284000 BDT.

Total advertising budget for electronic media for the first 3 months = 6450000
BDT.
Print MEDIA
1st month advertising cost

238

Newspaper

Position

Number of times
ad inserts

239

Rate

Cost for 1st

month

The Daily Star

3rd Page, 8 Col

4 days in a month

Tk.4000 per inch 1024000

8 Inch ,4 color

On Sunday

per column
So Tk.256000
per day

The daily Star

weekend

Back Cover

On Friday 4 days
in a month

magazine
240

30000 per issue

120000

The daily

First Page, 8

On Thursdays 4

Tk.6500 per inch 1664000

Prothom Alo

inch 8 column

days in a month

per column
So 6500 X 64
= Tk.416000 per
day

Total cost for 1st month = 2808000 BDT.

241

2nd month advertising cost

Newspaper

Position

Number of times
242

Rate

Cost for 1st

The daily Star

Back Cover

weekend

ad inserts
On Friday 4 days

30000 per issue

month
120000

in a month

magazine
The daily +

Sports page

+Prothom Alo

5 column 5 inch in a month

On Sundays 4 days

Tk.2000 per inch 200000

per column
So 2000 X 25
= Tk.50000 per

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day
Total cost for 2nd month of advertising = 320000 BDT.

Total cost of Print media for 3 month advertising = 3128000 BDT.

Out of home advertising:

Billboards
244

Campaign will be conducted at Dhaka and Chittagong divisional district for 3 months.
The three billboards will at Dhaka be on Gulshan circle-2,
Mohakhali.
Total cost for billboards = 420000 BDT.

Spectaculars

245

Motijheel, and on

Spectaculars will be set up on 10 departmental stores inside Dhaka City. 30000

BDT.per month for each spectaculars. Spectacular expenses will be incurred only foe
the first month.
Total cost for 1 month 300000 BDT.
Transit Advertisements
Terminal posters will be posted on 15 different terminals inside Dhaka city. Total cost
per month BDT 20000 per terminal, for 3 months.

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The total cost would be 900000 BDT.

Aerial Advertising
3 red color balloons with Pizza Hut logo will be placed in Mohakhali, Gulshan and
Bashundhara City Market area. Campaign will go on for 3 months.
The cost would be 30000 BDT.
Total out of home advertisement cost = 165000 BDT.
Promotional expenses after first 3 months(approx) : 3000000 BDT.

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TOTAL ADVERTISEMENT COST FOR 1 year campaign

= (165000+3128000+6450000+3000000)
= 14228000 BDT.
After 1 year of campaign the effectiveness of Pizza Hut promotion will be measured
through market research and based on that result the following years promotional
plan will be done by Pizza Hut.

248

Pizza Huts Website:

The official website of Pizza Hut in Bangladesh is www.pizzahutbd.com .With a

bright, bold red splash in the background; the very colorful webpage contains
numerous pictures of mouth-watering pizzas, different shots of the interior dcor of
the outlet and various information and activities of Pizza Hut.
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The main objective of the website is to give an eager inquirer an idea about Pizza Hut
and keep them updated about any new arrivals of pizza or other food items and other
promotional offers.

All the information about Pizza Hut is categorized under eight groups. The home page
gets updated every time with the arrival of different occasions. The advent of Bengali

250

New Year is marked on the home page with pictures and greetings of the New Year
followed by promotional offers, which shows Pizza Huts moving pace with our
traditions.

In the main site, news about Pizza Hut, special promotional offers, the new arrivals of
pizzas and appetizers are always bolded out in red to catch the consumers eye. The
Pizza Hut news contains several excerpts from newspapers containing information

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about the different product launches that they undertook. The company background
information and their future plans can also be found in the website. Pizza Hut also
bolds out the Kids Zone which contains attractive pictures and all the birthday
arrangement information and offers online pizza games which is one of the unique
features of the website which even the original Pizza Hut website does not offer.
Under the menu category, all the product information can be found- the different
types of pizzas and appetizers with prices are also outlined but the added feature of

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their website is the nutrition recipe which includes a detailed list of the percentage of
nutrition of different pizzas, appetizers and beverages.

As Pizza Hut does little promotion, the best place to know about their offers are from
the website. Pizza Hut makes up for their little promotional activities by announcing
all their discounts and special offers beforehand so that consumers are aware of it.
Besides that, the discounts and promotional offers of Pizza Hut are always specially

253

outlined with special pop-ups or changing colorful ads, which are sure to catch
anybodys eyes.

The fun facts and the photo gallery add more color to the website. The fun facts
contain some amusing and unbelievable facts about Pizza Hut, like delivering pizzas
to the pioneers living in the outer space on the International Space Station.

254

The inauguration of Pizza Hut and launching of new product line are all captured in
photos in the photo gallery. The photos of employees who showed outstanding
calibers in handling CRM are also added in the website.

Finally the feedback questionnaire is also in the web to know the customers better.
The contact information provides e-mail address and the address of the corporate,

255

outlet and restaurant support center. Pizza Hut actively encourages all complaints to
be sent to restaurant support center or to be reported directly in the Gulshan outlet.

The Pizza Hut website is colorful and eye-catching but they can put more pictures of
consumers chilling out in Pizza Hut and having a nice time. To increase consumer
awareness and to make Pizza Hut more popular, they can use pop-up ads in other
Bangladeshi websites. Recently, Pizza Hut authority has introduced the online

256

ordering system, which will open up new ways of delivering services to consumers.
Since Pizza Hut do introduce some online pizza games in their website, they can
increase the number of pizza games and create hyperlinks in other popular websites
with theirs so that consumers visit their website and once they enter the site it would
be difficult not to get impressed with Pizza Huts ads and promotional offers. A search
engine can also be added as an additional feature, which will facilitate consumers in
faster access of information.

257

A consumer is likely to get disappointed as Pizza Hut, surprisingly dont have any
price schedule of its products in the website. As Pizza Hut do charge a high price, a
consumer would definitely like to know the price for all categories before ending up
in the Pizza Hut facing a cash shortage. Besides that the website does not include all
the different categories and different types and sizes of pizzas available. A detailed
product menu with prices will definitely uplift the website.

258

Though Pizza Hut is the only fast food in Bangladesh, which offers a nutritional
recipes, but it is only for Personal Pan Pizza and in case of appetizers it is only for
garlic bread. The franchising companys website actually offers a Nutrition Calculator
which helps a consumer calculate any number of food items with beverages in his/her
tray. Our franchisee can undoubtedly introduce this new concept of health
consciousness in the website with the technical supports from the franchisers. With
increasing number of health conscious consumers, Pizza Hut can introduce a balanced

259

diet nutrition guide and can put the list of the ingredients for making pizzas as the
franchisers does.

A website is a very essential tool for keeping in pace with the changing environment
of business. Though Pizza Hut website provides up-to-date information, the abovementioned suggestions can uplift the image of the company.

260

261

Conclusion

262

The overall image that Pizza Hut has brought in Bangladesh is undoubtedly a positive
one since there has been no other international fast food chain in Bangladesh. With
the idea of global thinking along with its application locally has proven to be
successful for the company. The profit maximization margin of Pizza Hut is quite
remarkable compared to the fast food shops like Dominos Pizza, Subcity, Shawrma
Palace and others. They have developed their strong image of being a part of Tricon
Global Restaurants and the Yum! International Brand, by developing the services in

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their only outlet in Dhaka. Their competitive edge has been the excellent service that
they provide-something very rarely observed in Bangladesh fast food industry. Their
presence has added charisma to the city life and certainly gave the younger people
someplace to hang out. Their control method of their operation has certainly helped
them to attain one of the top market positions and that too within a year only.

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The quality and service timing makes it exceptional and its promotional offers during
our different cultural occasions undoubtedly makes it more popular among the people.
With the online delivery service coming up within a few months, it will be the role
model among the fast food shops with its innovative ideas. The policies and strategies
that Pizza Hut practices will positively lead them to success. And the recommendation
that we have offered throughout the report can make Pizza Hut a unique fast food
shop amongst the rest.

265