RetailingThe business activity that involved in sellinggoods or services directly to final consumersmostly for their personal useRetailer :A business whose sales come primarily fromretailing
Selected Retailer :Pizza Hut* Restaurant Industry* World largest American RestaurantChain* Franchise Organization
6000 Restaurants in US5139 store locations in 94 countries
Pizza Hut - Self Selection Retailer Customers can select the item With the assistance of the employees- Availability- Price Competitors: Dominos, Pizza & Pasta
Segmentation• Pizza hut has used certain demographic factors.Such as,Age – ex : children, teenagers, adults.Family size – : family is having children, college students,young professionals.Income – : low income, middle income and high incomefamilies.• And also psychological factors such as lifestyle ofthe market.Ex : whether the customers are having busy life style ornot.
Target markets• They are targeting the following marketsegments.Males and females 18 to 55Families with young children, college students, and youngprofessionalsMiddle and high income familiesConsumers with busy lifestyles are more likely to be heavyusers of quick service products
Positioning• Steps in positioningIdentify possible differences/ competitiveadvantage of Pizza Hut.Choosing right differences of Pizza HutCommunicate and delivering chosen competitiveadvantage
Differentiation• Step 1 - Identify possible differences/ competitiveadvantage to Pizza Hutproduct and services differentiationlevel of services/ channel differentiation• Step 2 - Choosing right differences of Pizza Hut Product differentiation is very easy to differentiate by using productattributes of Pizza Hut because competitors are not offering sameproduct with a same quality. Other competitors are doing services same as Pizza Hut like homedelivery and help to customers to select a suitable products for theirrequirements. Therefore product attribute (Hot Pizza) is a main consideration toposition the Pizza huts’ products in the target consumers mind.• Step 3 - Communicate and delivering chosencompetitive advantage
Marketing mix• ProductProduct Positioning of Pizza Hut - Pizza Hut has alwaysfollowed “Single brand positioning” called “PIZZAS”.Product Scope of Pizza Hut - Pizza Hut follows a “multipleproduct strategy” as pizza hut not only sell pizzas, but also deals in avariety of other product. Such as appetizers, beverages, desserts,pastaProduct Design of Pizza Hut - Pizza Hut follows the strategyof selling standardized products with modifications. Pizza Hut mainlysells 4 types of pizzas with 3 sizes, namely small, Regular and Large.Those are Pan Pizzas, Stuffed Crust Pizzas, Sausage Crust Pizzas, ThinCrust Pizzas
• PricePizza Hut follows “A High/Low Pricing”(“Price Skimming”)strategy as far as its new product are concerned where itfixes the price higher than its competitors and thengradually lowers the price below the competitor’s prices.The high/low pricing strategy has several advantages forPizza Hut.Used to create excitementSet high price initially to send a signal that its products are best inquality and service offered in excellent.Helps in segmenting the market as Pizza Hut can sell “the extremepizza” to the customers who wish to pay higher price as well as tothe bargain hunters too.Sometimes in face of competition either from pizzaplayers or from its substitutes, Pizza Hut has also reducedprice by maintaining the same level of customer serviceand quality.