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Economy
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OVERVIEW
SITUATION
How to keep their customers
coming during recent difficult
economic times.
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1
What are the
implications of Pizza
Hut’s big price cuts
for its brand image?
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BRAND IMAGE
◎ Isn’t exactly a fast food, and
also isn’t quite full-service fare.
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Value Proposition
◎ “More for the same”
- giving more value than other similar
offerings of pizzas.
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Promotional rctino
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New BRAND IMAGE
◎ Making good quality products
for a really cheap price.
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New Value
Proposition
◎ “Same for less”
- the same quality of products but at a
lower price than most of its competitors.
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2
Can customer
loyalty be generated
through low prices?
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Ways to generate
customer loyalty
1. Make customer service a
priority
2. Quality of product
3. Product features
4. Low prices
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Brian Nicol
Chief Marketing Officer
Pizza Hut
“We want to make sure we can
provide people’s favorite foods
at accessible prices,”
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3
Can Pizza Hut
sustain such
dramatically lower
prices and still
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Pizza Hut cut prices to
counteract the slow
recovery of the economy
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In order to be
Profitable, it needs
1. More customers
2. Manage its cost efficiently
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However, this new pricing mechanism that Pizza
Hut implemented,