Service Marketing Project


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Service Marketing Project

  1. 1. PROJECT REPORT ON PIZZA HUT Submitted By: Shruti Bhatia (70) Vikas Bansal (88) Vipul Agarwal (90) Dhruv Sahni(22) Neha(42) Aakanksha Vashistha(1)
  2. 2. INDEX S. NO PARTICULARS PAGE 1. Pizza Hut – The Introduction 3-5 2. Ansoff Matrix 6 3. Quality Management 7 4. Perceptual Mapping 8 5. Technological Changes 9-11 6. Pizza Hut Service Quality Dimensions 12--13 7. Chase Strategy 14 8. SWOT 15 9. 7Ps of Services 16-18 10. Service Process 19-20 11. Fishbone 21 12. Servicescape 22 13. Gap Model 23 14. Research & Development 24 15. Variability 25 16. Maintenance & Materials Management 26 17. Our Experience with Project 27
  3. 3. PIZZA HUT-The Introduction Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver‘s under its umbrella. Pizza Hut is the world‘s largest pizza chain with over 12,500 restaurants across 91 countries In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country Pizza Hut is known for its Good Quality Food (Hygiene) Brand Name Food worth its Price Good Service New Kind and Styles of Pizzas in its Menu. PIZZA HUT'S MISSION STATEMENT We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, quot;I'll be back!quot; We are the employer of choice offering team members opportunities For Growth, Advancement, And Rewarding Careers in a Fun, Safe Working Environment. • P.E.A.R.L.S PASSION for excellence in Doing everything EXECUTE with positive energy and urgency. ACCOUNTABLE for growth in customer satisfaction and profitability. RECOGNIZE the achievement of others and have fun doing it. LISTEN and more importantly, respond to the voice of the customer.
  4. 4. PIZZA HUT STORY  1958: The legacy of Pizza Hut began, when two college-aged brothers from Whichita, Kansas, Frank and Dan Carney opens first Pizza Hut restaurant after borrowing $600 from their mother.  1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.  1968: International market entered with opening of Pizza Hut restaurant in Canada.  1969: Red roof adopted for restaurants.  1972: Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.  1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an undisclosed sum.  1986:Delivery service, as a new concept, is initiated  1996: Pizza hut comes to India with a dine in restaurant Bangalore that has special vegetarian pizzas.  1997: Pizza hut opens a dine-in restaurant in Delhi.  2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in restaurants.  2009: Pizza Hut offering baked fillings in the corner of the pizza LOCATION IN INDIA Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annu. Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum! Brands owns Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John Silver‘s restaurants worldwide. In India Pizza Hut has not included all kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian customers
  5. 5. A critical factor in Pizza Hut‘s success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customers in different parts of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly established itself as a brand with an Indian heart. Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root-based ingredients.
  6. 6. ANSOFF MATRIX EXISTING NEW CUSTOMERS CUSTOMERS Consolidation/ EXISTING Market Market Share SERVICES Development Building NEW Service Diversification SERVICES Development Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the different things in their menu. Most recent one is the filling of toppings in the pizza corner. Therefore they are offering same customer a different kind of product. Thus they are into Service Development. Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different - different enough that customers will think it as a whole new product. For this they take innovative ideas from Institutes like IHM ( Institute of Hotel Management) as well as motivate their workforce to come up with ideas.
  7. 7. QUALITY MANAGEMENT To ensure stringent international bench-marks in the quality of products and services at all its restaurants across the world, Pizza Hut has a mystery shopper program in which an unknown official visits a restaurant and evaluates it on certain defined parameters called C.H.A.M.P.S. that stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. Based on the report submitted by the official, the restaurants are rated and in the rare case of finding under performers, they are kept under strict vigil This is the most important for a food chain like Pizza Hut. All the employees‘ backof-the-house i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet the quality standards set by Pizza Hut around the world. This strategy is important in order to satisfy the CHAMPS. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. Different quality management staff is also there at Pizza Hut. The shift managers have the task to observe whether the quality standards are met or not, whereas there are a total quality management department at the main office in Gurgaon. This department has the task to implement quality standards and know whether they are achieved or not.
  8. 8. PERCEPTUAL MAPPING Perceptual mapping helps the Management to see the real picture of their own and their competitiors. In above map, Services are plotted on X-axis and Pricing is plotted on Y-axis. Expensive and high services : 1st quadrant Expensive and moderate services : 2nd quadrant Inexpensive and moderate services : 3rd quadrant Inexpensive and high services : 4th quadrant The competitors for Pizza Hut are Domino‘s, KFC and McDonalds. Pizza Hut is providing High Services at very high price. That is why it is plotted in 1st quadrant. Likewise, McDonald provide high services but the food products are not expensive. But in 2nd quadrant, the services are moderate and they cost high than McDonald.
  9. 9. TECHNOLOGICAL CHANGES Now a day‘s technology is improving so Pizza hut has to keep track with it or else its competitor may take advantage of it and move ahead than pizza hut. It makes sure that it uses baking and heating ovens that are new and efficient. They have tie ups with company which provide them cold rooms. This tie up is of exchange of machine after a period of 6 months if new kind of machine is made by them. Not only in machines and equipments but also in marketing they try to be updated. They use internet (they have VIP (very into pizza) club made where people can register their email, mobile number where pizza hut provide them latest pizza news, discounts and offers at email ,mobile phones) telemarketing, advertising for their promotional activities.
  10. 10. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. Also in taking order they use the software provided by Devyani International Limited. DIL is a leading franchisee of YUM Restaurants International, the world's largest restaurant company with over 34,000 restaurants in more than 100 countries. Following are the screenshots telling the process of order in pizza hut. When a customer enters and takes table at pizza hut that table has certain number. An average of 4 tables are handled by one single employee. When order is placed by the customer the employee enters his employee id and mark the table in which the customer is sitting, place his order and once he click on
  11. 11. yes time of order is displayed on screen.Like our table is numbered 114 and order is placed at 5.25 pm. When the employee clicks on order he has an option of adding or removing a particular toping One of the benefit this software has that any employee can take the bill as it‘s feeded in software. And in case the employee who has served is busy payment can be taken up by anyone else thereby not making customer wait at all. Also it is secured as no one else except employee can use this software. Its transparent as its in written form.
  12. 12. PIZZA HUT SERVICE QUALITY DIMENSIONS Scale 5 4 3 2 1 Strongly Satisfied Satisfied Neutral Dissatisfied Strongly Dissatisfied Pizza Hut Service Quality Dimensions Tangibility 1.Employees’ Appearance 5 4 3 2 1 2. Environment is comfortable 5 4 3 2 1 3. Environment is attractive 5 4 3 2 1 4. Ingredients of Food 5 4 3 2 1 5. Freshness 5 4 3 2 1 6. Hygienic 5 4 3 2 1 7. Packages 5 4 3 2 1 Reliability 1.Perform the services right and accurately 5 4 3 2 1 2.Provide services on time 5 4 3 2 1 3.Correct the mistakes and errors 5 4 3 2 1 4. Timely home Delivery 5 4 3 2 1 5. Hospitality 5 4 3 2 1 Responsiveness 1.Employees’ behavior, when busy 5 4 3 2 1 2. Approach to higher Management 5 4 3 2 1 3.Employees’ guidance to customers 5 4 3 2 1 4.Response to customer 5 4 3 2 1 5.Waiting time for Dine In. 5 4 3 2 1 6. Providence of special services 5 4 3 2 1 7.Privacy 5 4 3 2 1 8. Time for take away. 5 4 3 2 1 Assurance 1. Employee Behavior 5 4 3 2 1 2. Knowledgeable Employees 5 4 3 2 1 3.Courtious 5 4 3 2 1 4. Attitude 5 4 3 2 1
  13. 13. Empathy 1. Sincerity 5 4 3 2 1 2. Solve the problems 5 4 3 2 1 3. Kind behavior of employees 5 4 3 2 1 4. Unique Service specially for you 5 4 3 2 1 Therefore from the above information we analysed that on the scale of 5 Pizza Hut ranks Tangibility – 4.2 (30 /7) Reliability – 4.2 (21/5) Responsiveness – 3.5 (28/8) Assurance – 4.75 (19/4) Empathy – 4.5 (18/4) And a total Service quality they score 4.23 on the scale of 5 ( 4.2 +4.2+ 3.5+4.75+4.5/ 5) which tells that its customer are satisfied. However it has to improve them on Responsiveness as it will help them to delight the customer. They are improving on their que management system by already preparing themselves two hours before the peak hours. The keep things at the place and make their ingredients ready so that minimum time is taken to serve the customer. As a result table gets vacant early and other customers can be served. This was the questionnaire through which we got above data. Average data has been marked of 42 customers. However data was collected from 56 customers. But we chose to take data from 42 customers only as some customers filled the questionnaire in a hurry and marked most 5 or most 1.
  14. 14. CHASE STRATEGY OF PIZZA HUT At the peak hours they prepare themselves few hours before 1. All team members are prepared before peak hours with vegetables required for toppings. They keep things ready in the line. Keep lemonade syrup ready so that they just have to add 7 up when the customer ask for a Lemonade. 2. They be ready with different patties ( pizza base) 3. They follow PREP strategy for peak hours. 4. During peak hour they provide the pizza making time of 15 – 20 minutes. While there cycle of making one pizza is only 7 minutes. In normal case they provide the pizza making time of 10 – 14 minutes. This they do, so that the customers have food as early as possible and their table gets vacant early so that more and more customers are served.
  15. 15. SWOT ANALYSIS Strngths Good Quality Food (Hygiene)- All the ingredients except local vegetables are provided by Yum Restaurants through their Restaurant Support System. All other inputs are according to the quality standards provided by them. Brand Name: Pizza Hut is a franchise of Yum Restaurant which has its outlets worldwide. Food worth its Price: Employing economies of scale, Pizza Hut has made its offerings more affordable. They have starting range of Pizza with just Rs 75 and individual serving pizza with cold drink for Rs 99 only. Good Service: The provide good service in terms of timeliness of pizza, courteousness of employee, knowledge of employees, taste of pizza etc. They provide pizza before time, their staff are scattered around near all the tables so that incase the customer wants to call pizza boy they just have to wave. Weaknesses Que during Peak Hour They advertise very less Fewer Outlets: Their outlets are not spread all over the city as compared to other competitors. Opportunities Pizza Slice: They are one of the best pizza makers. In their take aways they can start with pizza slices. This will attract people with small budget as well as those who wish to try pizza hut. This has been started by Sbaro – one of its competitor. Pizza Hut being in market for a long time can cash on this opportunity Low Calorie Pizzas in their menu Threats Competitors like Dominos, Sbaro . Housewives are interested in making Pizzas & other Fast Food at home.
  16. 16. 7 P’s OF SERVICES PRODUCT Worldwide and in India, Pizza Hut has come to become synonymous with the ‗best pizzas under one roof‘. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product – which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in Pizza Hut‘s success has been its unique dining experience. Crewmembers at Pizza Hut strive each day to provide ‗customer mania‘ - the kind of service that ensures that every visit of the customer is a memorable one. Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the menu offers the option of a complete meal. It includes appetizers, a Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas and desserts PRICE In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent sales to lower the price below them. Both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used.. Pizza Hut will be able to sell two products together at a single price to suggest a good value. Different groups of customers are willing to pay different prices for the same product. Pizza Hut can sell quot;The Extremequot; to the customers who will pay the higher price to be the first to buy and also to the bargain hunters Finally, this strategy will emphasize product and service quality. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent.
  17. 17. PROMOTION The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behavior of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail (VIP members), but also by fliers on college campuses around the country in order to reach the target market. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers. Pizza huts also using marketing techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts try's to attract the younger generation as their main market segment. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines. Advertising camping will creates awareness of the products in our target markets. DISTRIBUTION The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also useful when there are a large number of buyers, but a small amount purchased by each. Pizza Hut uses three different methods of selling its products directly to the market. The first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of time, place an order, and the order is delivered to the customer's home. Another method of distribution is for customers to dine-in. Customers can go to the nearest Pizza Hut, place an order, and either leave with the order or eat at the restaurant. One of Pizza Hut's largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family atmosphere. The third method of distribution is! online ordering. Customers can now go on the Internet and place an order. This method is useful because it allows customers to view the entire menu, download any special coupons, and order without having to disclose any credit card numbers. The market coverage for quot;The Extremequot; will be nationwide. Customers all over the country will be able to order quot;The Extremequot; by one of the three distribution methods.
  18. 18. PEOPLE Here the job design is not the most difficult task to do. Also there is no specific requirement for recruiting process. After talking one of the employees in Pizza Hut, we came to know the criteria of selection. The girl was from west India, she was only 10th passed out. After this we it was confirmed that there is no proper requirement of the educational background. The only factor they were considering on the communication skills, how they communicate with the customers. Since the communication is the most important factor between the customer and employee because the whole process is depended on giving the orders for food. For this the Management conducted the training process for the new employees. The Training is given for total 5 days. Out of 5 days, they have 3 days for kitchen training and other 2 days in the main dining, that is, how to take orders and basically how to communicate with customers and make them happy by their services. PROCESS The design of the process of the pizza hut is very efficient .pizza hut do not follow any kind of hierarchy , all the employee is at the same level ,pizza hut has a very prescribe and well known process by adopting various technology software which help them to upgrade their supply management and also manage their crowd of customer efficiently. PHYSICAL EVIDENCE The ambience of the pizza hut is good enough to catch up the people .they provide a very good dining experience with high quality of atmosphere in terms of there physical evidence. and pizza hut always try to upgrade with changing envierment and modernization is key of success of the pizza hut.
  20. 20. FISH BONE Fish bone is a cause and effect diagram to identify potential cause of problems. Pizza hut always try to have customer satisfaction on priority and if there customer are not satisfied, what are the main cause of unsatisfaction. These causes can be well explained by the fish bone diagram. FISH BONE DIAGRAM OF PIZZA HUT UNSATISFIED CUSTOMER
  21. 21. SERVICESCAPE It includes Physical product: the product of the company which is transferred to customer. These products can be seen & touched. In pizza hut, there are various products that were transferred to the customer like, pizza (veg & non veg), Pasta, Garlic Bread, Salads, Cold Drinks, Lemonade. The pizza is made in many flavors as per customers choice. SERVICE PRODUCT: Core performance purchased by the customer. It means in what manner the services are being provided to customer. Flow of events that are designed to produce the necessary outcome. SERVICE ENVIRONMENT : Evidence: Whole Ambiance, Background Music, Staff‘s Uniform. In pizza hut, the ambiance plays a very important part. It is the environment, ambiance, cleanliness, background music that attract customers to eat and to feel good about the whole process of entering the Hut and living the Hut. Staff‘s uniform is also very major part of their environment because if their uniform are not good enough, the customer will have a very negative impact on him and may be do not bother to place order. So apart from the ambiance, the uniforms are also important part of their service environment. SERVICE DELIVERY : planning your work and working your plan. The management of Pizza Hut are really strict with their planning and implementing those plans which they working on.
  22. 22. GAP MODEL A Gap Model defines the various gaps or wrong understanding or lack of sufficient knowledge within the Company. Due to these Gaps the company may face huge loses and thus low market share. In Pizza Hut, the objective of the management is to demolish all the gaps on the surface of the company. In order to deal with the Gaps of Pizza Hut, we conclude on two major Gaps on hand. GAP 1: The gap between customer expectations and Management perception of customer‘s expectations. This gap arises whenever they have peak hours, that is, during day & night and at weekends. At this time the waiting time for the food to come is quite big. Generally a single pizza took 7 minutes to get prepared but at peak hours the service provider took 3 times more than the usual time. Hence this is the case of what time customer expected for his meal to be ready and what the management thought of time to prepare the meal. GAP 4: The gap between Service delivery and external communication to customers. This gap arises when the services are not provided as promised. That is, for example, in their advertisement they talk of Pizza in just Rs.199 but the actual cost of that pizza is more than 199 after including VAT and other taxes. Therefore, what Pizza Hut is promised to their customers are not providing to them which leads to the formation of this Gap.
  23. 23. RESEARCH & DEVELOPMENT As we told that Pizza Hut is a brand under Yum therefore any research on making of new types of pizza, pasta, ice creams and drinks is a core responsibility of Yum itself. However it encourages its employees also to come up with new recipes and reward them for the same. Pizza Hut was the first one to come up with thin crust pizza and corner filled with topping. This differentiates it from other pizza making restaurants. Pizza Hut provides same Product- Pizza. But keeps on doing minor variations in it. It started with thin base pizzas. Under this it has reduce the weight of its Dough but kept the size of its pizza the same. By this it offered a new variety in pizza which is comparatively lighter to eat than others. Now it has come up with another new pizza with Golden Cheddar melted on the top and a tempted filling baked into the edge. In this they have not only garnished pizza with veg or non-veg toppings but also its base with some filling (They have advertised it by saying that you can enjoy pizza backwards now). They take ideas from hotel management institute(Institute of Hotel Management)
  24. 24. VARIABILITY For the purpose of least Variability possibility they follow below mentioned steps TRAINING- Every new employee undertakes the training of 5 days which includes 3 Days Kitchen Handling and 2 days Customer Dealing(Hospitality). This training is not provided at pizza hut outlet but rather at a cities head office. SCRIPTS: They have provided their employees with particular scripts that has to be spoken when similar situation arises Eg. When the customer enters employee have to say ―Hi Mam /Sir. How are you? Welcome to Pizza Hut. You require table for 2/4/6.‖ When pizza is ordered they say ―Pizza will take 15-20 minutes. Drinks will be served now (if ordered). Could I take the menu ‖ DOUGH: The different sizes of pizza are having different dough weight so as to keep all pizza bases at a same level. Pizza base is formed of 3 different size-Personal, Medium and Family Size. The size is differentiated by weight and then the shape. That means the weight of Dough of Personal Pizza and that of Medium Pizza is different (weight not disclosed as it‘s their internal information) Variability at two pizza hut outlets: while we visited four pizza hut outlet, we found each pizza hut outlet bit different in terms of the service provided by them. The employee‘s courtesy was different. This may be due to different management styles followed by managers. Like in Pizza Hut, CP- We were told the name of the employee who would be serving us. Throughout the meal only that employee interacted with us. When we refer employee by their name they feel respected. In Pizza Hut, GK – employee was not concerned too much interactive with the customer and was just serving. He just served what he was told by us. He didn‘t ask for whether we want anything else or not. In Pizza Hut, PVR Saket – Employee was coming too many times to ask how good food is, whether we want something else . This was quite offending as he disturbs the customer in between when he is chatting. Therefore we think that a common training must be provided to management staff so that such a variability doesn‘t exist in customer experiences at Pizza Hut
  25. 25. MAINTENANCE MANAGEMENT For the purpose of managing as well as maintaining machines there is GPM (General Purpose Maintenance) person available at every pizza hut outlet. He know how to repair machine, how to change temperature and incase of any failure how to temporary make the machine work. The have done AMC with the Yum Restaurant International Ltd for machine provided by them. For dish washers they have 5 yr AMC done. There is one IT person available to check system or software failure. This enables Pizza Hut to be prepared for any small breakdown affecting there business at any particular time. They have made a proactive management MATERIALS MANAGEMENT Since pizza hut has most of its inputs( vegetables, cheese ,topping sauce, imported vegetables) perishable, it has to be stored at a particular level of temperature. This is done by Restaurant Support System of YUM Restaurants. Whenever the things are taken from their Bills are issued to a particular outlet and these bills are paid monthly. This has reduced loss due to spoilage by a great extent
  26. 26. OUR EXPERIENCE WITH THIS PROJECT We have learnt a lot in terms of how difficult it is too please a customer. We got to know the practical knowledge of working of Restaurants—What kind of software is used, How they make process faster at peak hours, how to serve fast and what is a difference between what management thinks and what customer thinks. The factors for success of Pizza hut are value food, Developing the local supply chain, Customizing product offerings etc PROBLEMS FACED DURING THE PROJECT Information sharing is the most critical problem faced by us To reach pizza hut at those time when their staff is free and more open to share information Customers are not willing to spare time to fill the questionnaire. We need to see that is it a appropriate time to give questionnaire. Some people are very rude while saying no.