A critical review of Ernans Insights

on Marketing Best Practices of

Pizza Hut: Preference Driven
Communications
By
and Pizzas

Thilagavathy Palaniappan S811169

 Aim of the Study

To present and share how relationship

marketing being practice by Pizza Hut.
 Introduction

Article by ERDM (Ernan Roman Direct Marketing)

extracted from Ernans Insights on Marketing Best
Practices.

American restaurant chain and international

franchise.

As of Oct, 2013, Pizza Hut has more than 10000

outlets worldwide.

Offers varieties of pizzas and side dishes.

 Ernan Roman, customer Lim, Senior Marketing
experience innovator Director of Pizza Hut
Customers understand in We now run targeted
order to experience campaigns built with
significantly improved intelligence around
satisfaction; they need to customers preferred
provide more detailed product categories, typical
personal preference purchase times and
 Summary

Pizza Hut
-Successful in Food based industry
-Maximizes use of customer data
-Efficient and exclusive customer services
-Significant value , qualities and brand value (trust)
-Campaigns based on customer segmentation into
>6000 groups.
Based on characteristics, behavioral indicators and
purchase tendencies
-Customers understand the need to provide more
detailed personal preference information
-Customer retention rate rose up 38%
-Flexibility to customers to order thru online order,
mobile, call in and ordering app on an Xbox 360 system.
 Summary

Application of RM by Pizza Hut reference to framework by

Dr Arne Floh and Dr Horst Treiblmaier (2004).

Drivers Enablers
Increased competition Technology
Changes in consumer behavior Relationship Customer Agreement

Increased importance of services Marketing Adaptiveness of enterprises
Changes in marketing management

Framework for influencing factors of relationship marketing
 Critiques

Negative
-risk from hindering competitor or hackers in hacking
customers details and particulars and leads to misuse.

Positive
-Right strategy of using RM to retain customers (200%
jump in average campaign across customer segmentation)
& 6% extra sales every month)
-Maximizes technology usage
-Customer agreement & adoptiveness to its approach and
system
-Competitive advantage
-introduction to new product , better quality & cheaper cost
-Technology development & new technology introduction
-ability to create brand value and trust
 Conclusion

1. Practices RM and successful in retaining

customer.
2. Mix approach of RM and Transactional
Marketing
 Recommendation

1. Newsletter can be introduced to inform and

share information of its new product,
activities and innovations.

2. Offer chance to customers to comment and

feedback.
Q&A