Saturday, May 25, 2019
Pizza Hut Mkarekting Strategy Essay
The journey began in 1958, when two college students and brothers from Wichita, USA, Frank and Dan Carney, opened the premier pizza chantey eating house at their hometown on June 15, 1958. subsequently borrowing $600 from their mother, they bargain ford some second-hand equipment and rented a sm each building on a busy intersection in Wichita. The result of their entrepreneurial efforts was the first pizza army shack restaurant, and the foundation for what would frame the largest and just ab stunned successful pizza restaurant company in the universe of discourse. Many bulk ask how pizza hutch got its name.When Carneys were climb up their first restaurant, the building had sign with room for just nine characters. They wanted to use pizza in the name, which left room for a word with al whiz three letters. A family member suggested the building looked like a hut and pizza hovel was born. pizza hovel Today pizza shanty is non notwithstanding the ack outrightl brinkd e vil leader of pizza industry worldwide, but it is alike the worlds largest pizza chain, with over 12,000 restaurants across 100 countries, employing more than than 300,000 people, help 1. 7 million pizzas everyday to more than seven million clients. pizza Hut is the high-flying brand of YumRestaurants International, which is also the p arent company of KFC, Taco Bell, A&W and Long John Silvers. Taking other four brands with pizza pie Hut, Yum Restaurants International makes up the worlds largest restaurant group. pizza Hut in Bangladesh Transcom Foods Limited, a concern of Transcom Group is the franchisee of Pizza hut in Bangladesh. With a seating capacity of 220 persons, the first press release of Pizza Hut is located on south-central Avenue, Gulshan-1. Pizza Hut provides the perfect mix of great food, great service and great place at a great grade to guests who are expression for a grand familiarity.We believe in positive intension, and maintain a strong national envir onment by developing our competitive work force, which we trust. The latest technological tools along with the best(p) support systems from our franchiser YUM International is employ to ensure easy workflow and to make our restaurants the favorite in the Country. The success of Pizza Hut relies heavily on delighting our customers by ensuring that in all their needs and desires are met in every way. Hence, the company give strong importance to grocery storeing efforts to ensure that.along with customer pleasure, make sure, that the business makes money Therefore, the first task is to understand our consumers from every aspect. In this regard, we have tried to gain a thorough pinch of our competitive environment and continuously strive to develop unique business ideas to make our business a success. Thus, Pizza hut has successfully attained a broad range of loyal customers, to whom pizza has gained extreme popularity. In order to expand this range, our marketing team is involve d in developing new intersection points and concepts, all the time.Above all, not only do we make GOOD FOOD, we are also famous for providing great service and dining experience, to give our valued customers more reasons, to return. Due to the vast success of our flagship restaurant in Gulshan, and gigantic demand from consumers, opening of new stores in different cities are already under way. And from this experience marketing team has the recognition and understanding of * cultural influences * governmental and political influences * demographic and breeding manner trends * local and national economic trends.In Pizza Hut the role of trading operations is to be obsessed with the quality of our pizza and the experience that our customers receive. There are 3 distinct categories of restaurants. Full Service Restaurants These are the traditionalistic pizza restaurants that offers seated service and take-away. Home Service Restaurants Restaurants that offer home deliveries and tak e-away. Restaurant Based Delivery A full service restaurant in combination with livery and takeaway service. Currently, they are operating as the first category of restaurant, i. e a full service restaurant, with take-away facility.In the estimable future we will plan to introduce the other categories as well. All Pizza Hut sites work on the CHAMPS standard Cleanliness Hospitality Accuracy alimentation Product Speed These six objects define the very core of customer expectations. CHAMPS have become the vehicle, which drives Operations Excellence into our business and is also supported by a reward and recognition scheme for the Team members. The CHAMPScheck is a tool used to ensure consistency of service and harvest-festival quality across the spotless Pizza Hut estate in fact it is used for all the YumBrands internationally. Environmental considerations Pizza Hut uses environmentally friendly materials where applicable, e. g. water based tonality and recycled Pizza boxes. 2. 1 Environmental forces Strategies are not and should not be developed in a vacuum. They must be responsive to the external and inside environment. Otherwise the firm become, in effect, the most efficient producer of buggy whips, leisure suits, or slide rules. To avoid such strategic mistakes, firms must erudite about the business environment. Here we analyze the pricing strategies of Pizza Hut.In order to developing the pricing strategies and implementing these strategies into program they must scan the major internal and external factors. a. The Company Pizza Hut is a chain restaurant, operated by Transcom Group in Bangladesh. In designing the pricing strategies, they must take cypher the other company groups. Top management sets the companys mission, objectives, broad strategies, and policies. They must work closely with discussion sections. Finance department of the Pizza Hut is pertain with finding and utilize funds to carry out the long run and short run cost and different promotional program.The R&D department focuses on designing tasty and attractive pizzas. The purchasing and operations are responsible for getting supplies and materials, producing and distributing a desired quality and quantity of the foods. b. Suppliers The marketing bus of the Pizza Hut must monitor the price trends of their key inputs or raw materials such as bread loaf, different meats, capsicums, oregano, different flavor souses etceteratera Because it charges the price of a pizza that both covers all its costs for producing, distributing, and shiting the product and delivers a fair rate of return for its efforts and risk.As cost is an classic element in its pricing strategy so they should try to reduce supply cost of the inputs. c. Marketing Intermediaries Pizza Hut uses direct marketing to sell their products. Their cost of serving customers is comparatively high than the others. Besides they uses marketing service agencies such as research and development firm, advert ising agencies, media firms and marketing consulting firms to promote their products and scratch the right market. Developing pricing strategies involve the cost of maintaining these intermediaries to sell their final product to consumers.d. Customers The Company believe that customers estimate which offer will deliver the most value. They face a vast array of product and brand choices, prices and suppliers. Whether the buyers are satisfied after purchase depends on the offers performance in relation to the buyers expectations. As the customers are the value- maximizers then(prenominal) if the total customer value and the total customer cost doesnt equal then they become dissatisfied. So it is the most important factor for Pizza Hut to implement effective pricingstrategy that match the customers expectations to incur in evaluating, obtaining, using and disposing of the given market pass. e. Demographic Environment Pizza Hut chooses Bangladesh to set up their outlets as it is one of the mostly dense countries in the world. Growing universe of discourse means growing human needs to satisfy. Depending on purchasing power, it also means growing market opportunities. This large and highly divers(a) population poses an chance for them to capture the increasing market share.Pizza Hut established their outlets exclusively at Gulshan in Dhaka, at Agra bad in Chittagong. Pizza Hut divides its population group into six different levels 1. Preschool 2. School-age children 3. Teens 4. Young adults age 25 to 40 5. Middle aged adults age 40 They provide different offer with changing prices to the customers. f. Changing pricing strategies with changing family structure The traditional family structure is changing with the modern world. The number of working women has also increased. This trend has increased the consumption of thingmabob foods and services.In order to capture big market share and consumers support they must design their pricing strategy that satisfy t he consumers perceived value. g. Economic Forces Pizza Hut use market skimming as their pricing strategy. They charge high price at the initial stage. It focuses on the changes in income of the consumers, their changing pass patterns. Pizza Hut cigarette the high class people as their electric potential customers. They also set the outlets exclusively in the city. It also monitors the changing pass patterns of the people. Today people spend more in the foods. h. Natural FactorsThe deterioration of the natural environment is a major global concern. As a restaurant Pizza Hut should take the pricing strategies that also contribute the improvement of green movement. latterly they use recyclable or biodegradable packaging of their products. i. technological Advancement naked technologies create new markets and opportunities. Developing the pricing strategy, technological advancement should give the priority. Pizza Hut uses internet to serve online orders with the help of Banglades h, documentation account of raw materials, and they use consumers database of the regular customers.j.Political Environment Pizza Hut makes their marketing environment in Bangladesh by by-line the rules and regulation of the government. It considers several(prenominal) laws covering issues such as competition, fair trade practice, environmental protection, product safety, truth advertising, labeling, pricing and other factors in setting their product price. h. Cultural Factors Recently the people of Bangladesh have tried to facsimile the Western culture. They are becoming interested to the western food like pizza, burger, hot dog, pasta, and so many foods.Pizza Hut uses this changing trend in their marketing as well as a pricing strategy. They spend more funds in product promotional program in this country. They offer Ramadan discounts, Valentines Day offer for the couples, friendship day program and so on. All of these schemes must match with their pricing sprint. COMPETITORS O F THE pizza pie HUT Today, competition is not only rife but growing more intense every time. In Bangladesh the most dominant competitors of Pizza Hut are the BFC, KFC, CFC, DOMINOUS PIZZA, HELVITIA, SHARMA PALACE, CHICKEN KING, BURGER KING, BELLA ITALIA.As the basic product of Pizza Hut is the different flavors pizza, the other fast-food shop is also serve pizza and may copy the marketing strategy of Pizza Hut. It has a certain cost burden that shares oft of its strategic mastermind. In developing an effective strategy it makes a expire difference between the market concept of competition and the industry concept of the competition. They analyze their competitors base on the following characteristics a. Objectives b. Strengths and weaknesses c. Reaction patterns International Competitors of Pizza Hut.* papa Johns * Dominos * Little Caesars Dominos Pizzas Founded in 1960, Dominos pizza is the recognized world leader in pizza delivery operating a network of company founded and fr anchise-owned stores in national and international markets. Dominos Pizzas passel illustrates a company of exceptional people on a mission to be the best pizza delivery company in the world. With more than 8000 restaurants and delivery units spread across in 50 countries, Dominos holds the 2nd identify in international pizza market.Dominos is the worlds fastest pizza maker. It makes 14 pizzas in 2 minutes and 35 seconds. In 2004, Super Bowl Sunday was the busiest day of the year when Dominos sold close to 1. 2 million pizzas which is approximately 42% more pizzas compared to a normal Sunday. Super Bowl Sunday ranks among the top five days for pizza deliveries annually along with Thanks giving, New Years Day, New Years Eve and Halloween. Little Caesars Little Caesars is 4th largest pizza manufacturer in USA. The company claims to be largest carry-out pizza chain in the world.The company is famous for its advertisement campaign of pizza Pizza which was later adapted to pan Pan to promote their pan pizzas. Little Caesars is famous for selling more pizzas at a few(prenominal)er prices. It has notable differentiating outline wherein Little Caesars sells Hot-N-Ready pizza for $5. 00 only which means those customers do not have to call before taking the delivery of their pizza. They can just drop in to a Little Caesar outlet and collect their hot-n-ready pizza instantly. Marketing Strategy Pizza Hut follows the following strategy* Total market strategy Pizza Hut started with a sensation product i. e. Pizza but with different segments emerging and the degree of competition increasing, it diversified into several products to serve different segments. It came up with chicken nuggets, wedges, garlic bread, smiley etc. * International marketing strategy Pizza Hut started with local market strategy in Kansas, USA then moved on to regional markets in and across USA. In 1968, Pizza Hut started its international movement by opening its 1st restaurant in Canada.And tod ay Pizza Hut is worlds largest pizza chain with its presence in more than 100 countries. * Early Entry Strategy Though Pizza Hut was not the first entrants in the pizza market in USA. But Pizza Hut followed an early entrant strategy. Customers knew what a pizza is but still there was huge potential to overwork. In order to become a leader, pizza hut continued to refine their product & develop new product to suit their customers changing tastes. Ultimately Pizza Hut with its superior promotion, manufacturing and distribution activities has turned out to be the winner.* Strong Commitment Strategy Pizza Hut has been operating in the pizza market by realizing all economies of scale in promotion, distribution and manufacturing facilities. If Papa Johns or Little Caesars come out with a new competitive pricing strategy or innovative product, then Pizza Hut quite aggressively fights back by bring more competitive prices or better innovations in product category. In simple words, Pizza Hu t takes all possible measures to defend its leadership position in the market. Customer Focus.Consumption is the sole end and purpose of production and the interest of producer ought to be attended to only so far as it may be necessary for promoting that of the customer- Adam Smith Frank and Dan Carey recognized that the concept of Pizza was quite new to American. Although frozen pizzas and pizza mixes had entered into the market and started penetrating in non-traditional food market. Initially Pizza sampling was done to test the product and consumers preferences about the product. Thus first Pizza Hut was a success. From the very start, Pizza Hut aimed to get pizzas to the masses.Initially, the entire world was a common market for Pizza Hut until it began segmenting and targeting especial(a) market segments by differentiating and developing diverse products for them. Pizza Hut as a company has always tried to target and satisfy various diverse customer categories in different coun tries depending upon various factors and situations. Pizza Hut in order to fulfill its marketing objective of maximizing customer satisfaction by providing high quality products, has believed in the following marketing strategy Think Global, Act topical anesthetic.In Malaysia for instance, Pizza Hut targeting both urban adults as well as families with pre-teens and teenage children by offering a delicious mix of nutritious Itlaian-Amercian cuisine which includes worlds favorite pan pizza. Pizza Hut Malaysia at the same time offers a cozy, friendly ambience in which to relax and have a great time with family or friends. Pizza Hut Malaysias success has been due to imaginative and innovative thinking in continuously developing, marketing and promoting new pizza products with unique and distinctive flavor, taste, style and appeal.In order to target the entire family experience, Pizza Hut launched a Hand Tossed Pizza which was pizza huts first step in traditional stuffed crust segment. It offers not-to-thin and not-to-thick crust on which the entire family agrees. To hit the market for young one in-hurry office goers looking for fast lunch, Pizza hut came up with personal pan pizza for one. The Personal Pan Pizza revolutionized lunch and became the perfect solution to satisfy pizza cravings in a hurry. Pizza Hut introduced America to the perfect pizza for on-the-go back in 1983.Today, we can find Personal Pan Pizzas in airports, college cafeterias and even sports arenas. To satisfy the New York pizza lovers, Pizza Hut introduced a The big New Yorker Pizza. This pizza was 30% larger than pizza huts largest pizza. It is New York style pizza at un-New York price introduced in 1999. In some countries, to capture the interest of Echo Boomer generation which the ultimate cheese loving population, Pizza Hut launched The Ultimate Cheese to give them the ultimate pizza experience.As Pizza Hut is the worlds largest Pizza manufacturing company believing in strategy of Thin k Global, Act Local, somewhere in USA pizza hut introduced variants with extra cheese or large in size, at the same time, when pizza hut to grow in international waters as Asia, it diversified to adapt their cultures and provide their favorite flavors. In order to tap huge spices lovers population in India, Pizza Hut recently has launched The Great Indian Treat which is rich in Indian spices and garlic.In order to tap market segment less than 18 years, pizza hut introduced Stuff Under 18 only in United Kingdom, to tap the kids segment, various prize combos are introduced comprising of a Pizza, Chicken wedges, Fruit drink and ice cream. Whereas to tap the teenage market, Pizza hut introduced different flavors of pizza along with fruit beer was offered. At the same time, Teenagers were lured by promotional schemes as DUBIT CARD which will allow them to take discounts at various entertainment places including pizza hut.In an attempt to target, the people who are young and romantic at heart, whether it is an 18 year old boy friend or 50 year husband, on the occasion of Valentines Day, Pizza Hut launched a limited edition Sweetheart Pizza in the shape of heart. In nutshell, Pizza Hut tried to target each and every diverse population segment either on the scale of age (kids, teenage, office goers, senior citizens) or on basis of life style (singles or couples) or special interest groups (celebrations, parties, festivals).Pizza Hut An Overview of the Product Strategy Product Strategies specify a market needs that may be served by different products offerings. * Product Positioning Strategy Pizza Hut has always followed Single brand positioning strategy wherein it has positioned only its pizzas. Although the positioning avowal has been different in different countries but it has always hovered around its PIZZAS.For instance, in Canada, its positioning statement is The best tasting pizzas under one roof which reflects a great variety of pizza being served , in chin a it has positioned on Dine-in restaurants, in Australia, it is made fresh, served hot and on time which reflects that best of ingredients are used and pizza is delivered on time. Similarly, in India, pizza huts positioning has been Good times, Great pizza. * Product-Scope strategy Pizza Hut follows a multiple product strategy as pizza hut not only sells pizzas, but also deals in a variety of other products as Product-Scope Strategy Soups and DessertsSalads & Pastas Appetizers Pizzas Although all the product offerings in pizza hut are not as fast moving as its pizza, but they usually complement each other. For instance, a family coming for a dinner usually starts with some soup and garlic breads and then moves on to pizzas along with some diet salads. In this way, pizza hut caters to different people with different needs and tastes and preferences. This helps in increasing sales, profitability, market share and above all Customers Mind Share * Product-Design Strategy Pizza Hut follo ws the strategy of selling Standardized Products with modifications.Pizza Hut mainly sells 4 types of pizzas Pan Pizza, hand-tossed pizza, stuffed crust pizza and Thin N nappy pizza. Pizza Hut serves these standard style pizzas everywhere in the world but at the same time, it offers its customers to choose different toppings as extra mushrooms or extra capsicum and onions with extra cheese or chicken toppings like toppings of meat, bacon, fish, ham, beef topping, pork toppings etc. Secondly it offers what is known as Value meal combos wherein it offers a combination of pizzas, appetizers, beverages etc at lower prices.For instance, Pizza hut introduced Meal for 2 which offers a medium pan/freshizza pizza, garlic bread sticks with 2 glaze of pepsi. Similarly pizza hut also offered Meals for 4 where it offered 2 medium pan pizzas, with one plate of garlic bread and one portion of wedges with 4 glasses of Pepsi/Soup. Pizza Hut by offering standard products seeks economies of scale a nd by offering modification options enhances customer satisfaction which adds to brand equity of Pizza Hut. * Product innovation strategy Pizza Hut has been constantly involved in innovating new products.It started as Pizza chain in 1958. On one hand, it offers traditional Italian pizzas while on other hand, it innovated several new varieties as pan pizza, thin n crispy, stuffed crust, the big New Yorker pizza, hand tossed pizza, the edge pizza along with the Sicilian Pizza. Pizza Hut spends extensively on research and development of its innovative products. At the same time, customers feedback also plays an important role in preparing new pizzas. For example, The Big New Yorker Pizza. Pizza Hut continued to make innovations as it followed International marketing strategy.In India, Pizza Hut launched international style pizza in localized Indian flavors like Tandori pizza range with Punjabi flavors, vegetarian tama-tam, Murgh Mazedar Pizza etc. Similarly, in China along with traditi onal pizzas, it served Sangria and Escargot. Along with pizzas, Pizza Hut also innovated beverages and drinks to satisfy the tastes of consumers. For e. g. Pizza Hut in Oman has added a refreshing dot of tropics to their menu with the launch of Monin, a new line of flavored drinks. Value Marketing Strategy Pizza Hut as far as value marketing is concerned follows Quality strategy Customer- service strategy.Time-based strategy Pizza Hut promises its customers to give them best quality product by using best quality ingredients. Time and again it re-emphasizes on this fact through its advertisement campaigns. Pizza Hut main motive is to enhance its customers satisfaction by providing them best quality products at affordable prices. At the same time, pizza hut always tries to deliver on time. Although Pizza Huts competitor Dominos differentiates on basis of timely delivery in 30 minutes, however, Pizza Hut through its innovative technology is also trying to reduce its delivery time to 3 0 minutes and fight back Dominos.PRICING STRATEGIES OF PIZZA HUT IN THE PRODUCTS LIFE turn STAGES Their pricing strategy usually changes as the product passes through its life cycle. As Pizza Hut chooses the market- skimming pricing strategy by setting a high price for their pizzas at the initial stage to skim maximum revenues layer by layer from segments (high society people, exclusive outlets) willing to knuckle under the high price, their introductory stages were especially challenging. Here example given for Bangladeshi Context. Pricing strategies Product Development portray.This stage begins when the parent company (Transcom Group) finds an idea to purchase the franchise of selling pizza at a particular area. During this stage the sales are zero and their investment cost mounts. Pricing strategies Introduction Stage Introduction stage starts when the Pizza Hut was launched their basic product first at Gulshan in Dhaka. In designing their pricing strategy they face the followi ng factors 1. Their opening cost was very high because they organize a grand party and use heavy sales promotion to entice trial.2. At the initial time their sales were comparatively low. 3. High cost per customer for creating superior image was increasing. 4. Their profit was positive. 5. The customers are the innovators of the new flavors pizzas with an attractive presentation style. 6. They charge the higher(prenominal) price with the justified quality. 7. They build only two exclusive distribution outlets. 8. Build mass advertising in newspaper, bill boards etc. 9. They compete with few competitors. Pricing Strategies Growth Stage In this stage their sales are rising.The customers are properly known about the brands and the goods. 1. High cost per customer reduces and become the average cost. 2. During this stage profits are rising. 3. They maximize their market share. 4. They use product line extension by adding new flavors, ingredients, sizes such as family size, single pan pi zza etc. 5. Their competitors are growing. 6. Develop new marketing plan to make the product superior from the competitors. 7. They also organize birthday party, sum day party and so many occasions for a payment. By these they enhance their brand image.Pricing strategies Maturity Stage Pizza Hut is now passing through the maturity stage. Their profits are at the peak. This stage normally lasts longer than the previous stages, and poses formidable challenges to marketing management. 1. Product modification by modifying the products quality improvements, feature improvements and style improvements. 2. Stable number of competitors is beginning to rise. 3. They change the price to match or best competitors. 4. Pizza Hut is building a new outlet at Dhanmondi to meet the increasing demand of customers. 5.They create significance brand differences from competitors and take the advantages. Pricing strategies Decline Stage This is the product life cycle stage in which a products sales decli ne. Pizza Hut doesnt reach in this stage at present. Pizza Hut An Overview of Franchise Model Franchising involves a contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a service sponsor) and a retail franchisee, which allows the franchisee to conduct a given form of business under an established name and according to a given pattern of business.Pizza Hut after its incorporation in 1958 opened its first franchise unit in Topeka, Kansas. Followed by a Pizza Hut restaurant built in just 5 days by franchisees in Oklahoma State Fair. In 1968, Pizza Hut made a global entry by entering in Canada. Then it made a strong foot holding in Australia, Japan, England, Kuwait, and Abu Dhabi. By 1989, Pizza Hut was already serving 54 countries. In 1996, Pizza Hut entered India with the first dine-in restaurant in Bangalore.While entering in the international arena, Pizza Hut used the Franchising Route as the entry strategy. In Bangladesh Pizza Hut enter Franchising with Transcrom group. Reasons why Pizza Hut adopted Franchising as the entry strategy * The best method to establish operations without risk of operations in an unfamiliar country. * Franchising root helps in learning the buyer behaviour, consumer preferences, market realities etc. * Franchising helped Pizza Hut in building a brand name and creating efficient distribution system.* In certain socialist countries as China, Russia etc, direct foreign investment is not allowed, so pertaining to the local court-ordered framework of these countries, Franchising is an easier route to enter into these countries. Pizza Hut An Overview of the Global Strategy Pizza Hut before entering into any new country conducts a comprehensive market survey of that country to learn about the culture that prevails in that country, the state of government and politics, the legal framework (product quality laws, packaging laws) , commercial-grade practices (business structure, patterns of competition).Strategy Ad opted by Pizza Hut for Global marketing programs Localized strategy Pizza Hut follows the strategy of Think Global, Act Local. For e. g. in India, the 1st Pizza Hut which was launched in Bangalore served complete vegetarian meals. Similarly, in China, along with serving Pizzas, Pizza Hut also serves Sangria and Escargot. Similarly, in India, to match the spicy tastes of Indian consumers, Pizza Hut launched Tandoori Treat, The Great Indian Treat.For the cheese lovers in the United States, Pizza Hut launched gimcrack Bites Pizza and Stuffed Crust Pizza. In South Asian Muslim Country (like Bangladesh) Pizz Hut giver special Offer during Ramadan like eat as much as You can in iftar. International Marketing Coordination Pizza Huts international marketing activities though dispersed in different countries are properly coordinated to gain competitive advantage as * All marketing activities as market research, advertisements, and restaurant interiors are done using a similar method.* Marke ting know-how and skills are transferred from one country to another. For e. g. the franchising model is used successfully in all the countries by Pizza Hut. Scanning the Environment S. W. O. T Analysis Strengths * Name Recognition * First-Mover Advantage (pioneer advantage) * Competitive advantage as pizza hut has he largest network of full service restaurants and delivery services. * full selection of products to target different segments. * Strong Franchisee network. Weakness * High overhead costs due to large number of restaurants * High price pizza which leads to loss of customers. * Internal conflicts among franchisees. Opportunity * Increase revenue through more and more innovative pizzas. * Increase in brand loyalty through good customer service. * Pizza hut has tremendous scope of expansion through its new online ordering system. * Pizza Hut home delivery network and entry in to new markets. Threats * Main threat is from competitors. Out of these threat from Dominos is m ain concern.* The differentiation strategy followed by any pizza chain is preferably or later adopted by all pizza industry players. New and newer methods to lure the customers must be found out. * Any competitor offering the same quality and diverse flavours might be a real threat to Pizza Hut. Pizza Hut An overview of Promotion Strategies Pizza Hut uses a wide assortment of promotion tools to achieve the following * Increase the market share * Increase the sales volume * To increase repeat purchase * To energize the non buyers to buy the product.The Promotion mix which it uses is as follows Sales Promotion Advertising Promotion Mix Personal Selling Advertising Maximum used middling of Pizza Hut Promotion Strategy The main objective behind every campaign is either to increase sales by encouraging potential purchasers or inducing repeat purchases or prompting immediate purchase by offering special schemes or to create awareness about a new product offering by highlighting a new flavor or announcing price changes or demonstrating the product in use by depicting an experience.For instance, to launch a new flavor in India named The Great Indian Treat, Pizza Hut signed a Javed Jaffrey for its new TV commercial. Similarly to inform the customers about Rs. 50 pan pizza, Pizza hut showed Zayed Khan as a young teenager boy friend who has to finesse his large number of girl friends with something trendy and affordable. Pizza Hut also launched certain ad campaigns to counter attack its competitors promotions.For instance, in 2005 Pizza Hut launched Freshizza ad campaign featuring Malika Arora Khan and counter attacked Dominos campaign showing Anupam Kher and Paresh Raval. At the same time, Pizza Hut brings about local flavor in its ad campaigns. In different countries, it uses models, situations, positioning clearly related to that particular country.
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