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LETTER OF ACKNOWLEDGEMENT
June 1st, 2013
Mr. Javed Iqbal
Dear Readers :
Great ideas fuse into one another to give birth to one Great Idea. Similarly, behind every
success lies another successful hand.
First of all we would like to thank Almighty God, for helping us out and guiding us in the
honest tracks of our findings.
We thank Miss Bushra who imparted us the necessary knowledge of Principles of
Marketing so that we could reach approximately correct conclusions. and also thank to
our senior co-ordinater Sir Javed Iqbal to allow our assigned group. This report has
enabled us to apply all that we studied in class and gave us the chance to enhance our
Our parents and grand-parents too, for their constant support throughout the report and
the numerous cups of coffee that they made for us during the nights that we spent
working on the report .
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LETTER OF TRANSMITTAL
We have prepared a Report on “Pizza Hut Pakistan” and found it to be an interesting
subject to work on and have tried our level best to understand how to explore and then
document a professional report.
We did the necessary secondary research to get sufficient information about the topics
in order to complete the report.
We are pleased to inform you that the final report you assigned to our group has been
completed and is ready for your perusal. This report as per your instruction has covered
all the authentic areas of concern and contains all the relevant information. We would
dearly like to thank you for the faith you showed in our capabilities and the
encouragement you gave us when assigning the report.
We will be more than glad to respond to any queries that you might have regarding our
Usama Zaki __________________
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During the past four decades Pizza Hut has built a reputation for excellence that has
earned the respect of consumers and industry experts alike. Building a leading pizza
company has required relentless innovation, commitment to quality and dedication to
customer service and value.The qualities of entrepreneurship, growth and leadership
have characterized Pizza Hut’s business through more than four decades of success.
Through the strength of its heritage, its culture and its people and franchisees, Pizza
Hut looks forward to more success in future.
There are different objectives of every organization. In order to achieve these objectives
different targets are set.Targets pass down the hierarchy depending on the nature of the
business.Therefore, in order to achieve the objectives, management decides on
different strategies. These strategies are divided into many sub-parts and are useful for
the running of the business. The employees and the management know what they have
to achieve through the targets which have been set to them and the strategies they
have adopted help them know the way they will achieve the objectives. Similarly, Pizza
Hut has different targets set to them and they have adopted different strategies to
successfully achieve the targets set.These targets are set by the RSC i.e. the restaurant
support centre in Karachi.These targets are passed on to the RGM (restaurant general
manager) and he passes them to the workforce.These targets fall within the
organizational structure in which there are many people who have different targets to
achieve. In order to successfully achieve the targets they need to co-operate and work
in a friendly environment.
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TABLE OF CONTENTS
S.no Topic Pg #
1 Letter of Acknowledgement 1
2 Letter of Transmittal 2
3 Executive Summary 3
4 History Of Pizza 5
5 Introduction & History of Pizza Hut 6
6 Pizza Hut In Pakistan 7
7 Pizza Hut Mission Statement & Vision 8
8 Market Segmentation of Pizza Hut 9-10
9 Product Development Function 11
10 Marketing Mix 12-15
11 Target Marketing 16-17
12 Branding 18
13 Promotional & Advertising Strategies 18
14 Sales Strategies 19
15 Marketing Intelligence & Customer Value & Satisfaction 20
16 BCG matrix 21
17 Conclusion 22
18 Recommendations 23
19 Resources 24
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HISTORY OF PIZZA
About Pizza, Some will tell you Italy. That's wrong. What you know as pizza came into
vogue around the time of Napoleon and the French revolution. Italians, known to be
lovers of fine food and wines perfected and imported this terrific dish to America. From
here it quickly endeared itself to mass production and re-export to the rest of the world.
The word "pizza" may be a derivative of the Latin word "picea", a
Roman word used to describe the blackening of bread in an oven. The word "pizza", in
its current spelling, emerged sometime in the middle Ages. It was used to describe both
the sweet and salty pies that were becoming popular among Italian aristocracy. Pizza is
basically a meal prepared in a plate made of bread. There are four main components of
a basic pizza pie.They are crust, sauce, cheese and toppings.
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INTRODUCTION & HISTORY OF PIZZA HUT
In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita
Kansas. The small 25 seat restaurant only had room for 9 letters on the sign… the
building looked like a hut… so 'Pizza Hut' was born!
Fifteen years later, we opened the first UK restaurant and since then we've become the
biggest Pizza Company on the planet, Let see listen Pizza Hut Story from them!
1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.
1972 1000 restaurants are open throughout the USA.
1973 Pizza Hut went international with restaurants in Japan, Canada & England.
The first UK Pizza Hut opened in Islington, London.
1977 PepsiCo bought Pizza Hut.
1980 Pan Pizza was introduced.
1982 The UK joint venture started between PepsiCo and Whitbread.
1984 Over 50 restaurants so far in the UK.
1986 By now, there were 100 restaurants in the UK and 5000 worldwide.
1987 An average of one restaurant opened each week in the UK.
1988 The UK's First Delivery Unit was opened in Kingsbury, London.
1992 There were 9,000 restaurants in 84 countries.
1993 There were 300 restaurants and delivery stores in the UK.
1994 10,000 Pizza Huts were open for business.
1997 PepsiCo decided to focus on their drinks business. As a result, Tricon
Global Restaurants was born, creating the largest restaurant brand in the World.
Tricon became the partner company with Whitbread.
1999 Pizza Hut had over 400 restaurants, employing 14000 people.
2002 Tricon Global became YUM! Brands Inc.
2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza
Hut UK Ltd was now 100% owned by Yum!
2008 We bought Godfather's Pizza in Ireland with 28 stores.
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PIZZA HUT IN PAKISTAN
Pizza Hut was introduced in Pakistan in December 1993.
Mr. Manzar Riaz from Lahore is credited with introducing it to Pakistan when he opened
up the country's first Pizza Hut outlet. Pizza Hut opened its outlets in Pakistan in 1993,
which was three years before India had its first Pizza Hut outlet in 1996.
It was December 1993 when Manzar Riaz merged with
Corlney , as a result of this association MCR Pvt Ltd , gives birth to Pizza Hut Pakistan .
The 1st outlet of Pizza Hut Pakistan was opened in Karachi ( The Biggest City of
Pakistan ) at Board Basin Clifton . Second was at Tariq Road and after that its all history
And after approximately 17 years later they have 42
outlets all over which is covering 10 major cities of Pakistan .
Recently the latest outlets of Pizza Hut was open in
Sialkot and Gujranwala , respectively .
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PIZZA HUT’S MISSION STATEMENET
We take pride in making a perfect pizza and providing courteous and helpful service on
time all the time. Every customer says, "I'll be back!"
We are the employer of choice offering team members opportunities For Growth,
Advancement, And Rewarding Careers in a Fun, Safe Working Environment.
“ To be the best pizza for every pizza occasion ”
“ Alone we are delicious, together we are YUM ! ”
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.
VISION OF PIZZA HUT
• To make the people know that for all the eating items they desire to eat can be made
available in minimum time without much effort and excluding money
• To improve the well-being of our customers, community and people connected to our
enterprise. “RUN GREAT RESTURANTS”
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A market segment is a subgroup of people or organizations sharing one or more
characteristics that cause them to have similar product / service need .
Broad Potential Market :
During the marketing research that we conducted, we learned that their target market is
basically who have their personal cars, who comes for shopping, offices, students of
various grades In order to formulate an effective marketing and promotional strategy,
the target market for Pizza Hut has divided into 4 different segments based on
Geographic variables, Demographics variables, Psychographic variables, and
Behavioral variables .
· Twenty percent Urban population of Pakistan
· Age: All age group
· Gender: Both male, female
· Social class: Upper Class, Upper Middle Class, Middle Upper class.
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Geographic segmentation of Pizza Hut is worldwide. Now Pizza Hut is serving more
than 80 countries including Pakistan, UK, USA, Algeria, India, Russia, Cyprus, China,
and Bangladesh etc…
But we’ll talk about the Pizza Hut Pakistan. Pizza Hut Pakistan’s geographic
segmentation is the developed cities. Pizza Hut is available in Lahore, Karachi,
Islamabad, Faisalabad, Hyderabad, Multan, Peshawar, Sialkot, and Rawalpindi. We can
observe that pizza hut is available on all provincial capitals of Pakistan.
Pizza Hut’s general market segment is younger generation. But they go wide in this
thing. They segment high incomes and business class families which can spend money
on the best pizzas in the market. Pizza Hut’s global slogan is also describing its market
segmentation that is “Now it’s time to eat more”. But in Pakistan, the slogan is “Share
the good times”. Pizza Hut Pakistan offers Halal foods to all its customers.
Pizza Hut’s psychographic segmentation includes people with having good attitude
about food sense especially pizza group and they want to have a good time with their
friends and family as described in Pizza Hut Pakistan slogan. It serves all types of
personalities as they don’t have any product for specific personality.
Pizza Hut’s behavioral segment is the class where people love to spend money on
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PRODUCT DEVELOPMENT FUNCTION
In order to achieve success and customer satisfaction , Product
development fuction plays a key role in an organizaton . And that’s what Pizza Hut is
doing since its birth .
Pizza Hut is very loyal to their customers , that is why there
customers always feel delight . Pizza Hut know that Product Development Function is
very important in order to retain customers intact towards them .
To satisfy the customer NPD ( New Product Development ) is
introduce after every eight weeks , that is the policy of Pizza Hut . They offer new
variety so that customers cann’t get bored from those offers which they have already
experienced . And this year as wel , they offer Vegetable Pizza 1st time in Pakistan .
For Product Development Function , they take certain steps
Whenever new flavor is being developed , it is tasted by there in house staff .
Once they are satisfied of that new flavor than that product goes for a trail .
Customers are the one who tastes that new flavor .
Then customers were asked about the price as what price customer find
After going through certain steps , it takes 2 – 3 months process for
the final outcome .
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Marketing mix is the combination of 4 p’s.This combination and the best strategies
makes pizza hut a perfect brand in all over the world. These four p’s are:
Pizza hut is to develop the best product with the resources available. Pizza Hut sells
pizzas in four different sizes: personal (an individual serving), small, medium and large,
though most stores have done away from with the small size. A variety of toppings are
available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese
Lovers,Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly
introduced Pizza Mia.Pan Pizza was launched nationally in 1980. More than twenty
years later, their customers love it so much that nearly every other pizza they sell is a
Pan Pizza. The pan pizza has a thicker crust than most other commercially available
pizzas. Therefore, their products have helped them to retain their customers and to
increase them .This encourages the customers to visit pizza hut rather than going
elsewhere. As pizza hut has to boost its sales in the existing markets, so the new food
products are introduced in all branches line-by–line because all branches are operated
in co-operation with one another. Different products for different regions are also
developed, as there are choice differences. Pizza hut offers a long list of products and
never afraid to offer new products like in Peshawar according to market they introduce
the very first "Chapli Kabab Pizza" which was very healthy product by Pizza hut in this
region. There are a lot many products according to different geographical places.
Besides the pizzas, Pizza Hut also serves pastas, starter, sandwiches, and deserts.
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The pricing strategy adopted by Pizza Hut is 'market skimming'. Pizza
Hut has adopted this pricing strategy, as it wants to hold maximum share of the market
by maximum profit. Pizza Hut is free to charge any price it wants. They are charging
higher prices due to the uniqueness of the product. They satisfy the target market as the
food quality is worth the price paid. They are imported from different countries keeping
in view the best quality. First, this pricing strategy will help segment the market.
Different groups of customers are willing to pay different prices for the same product.
The high/low pricing strategy will also create excitement. The pricing strategy adopted
by Pizza Hut is 'market skimming'. Pizza Hut has adopted this pricing strategy, as they
want to hold maximum share of the market by maximum profit.
As focusing on the pricing strategies, Pizza Hut has made some
product mix. According to the sizes of the pizzas, prices are made. They offer pizza
sizes such as personal pan, which is of 6 inches, regular of 9 inches, and then come the
large of 12 inches. Different pizzas have different prices according to their sizes. 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.
Pizza Hut also has MEAL DEALS. This scheme gives some discounts
of additions along with pizzas. In the meal you get starter, pizza and desert with
reasonable prices. In the MEAL DEALS, they offer time out, yuppie delight, extra time,
and family ties. These deals are made according to the satisfaction of the customer.
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Pizza hut has 34,000 outlets in 100 Countries. It refers to the best
place to offer program. That is the place where it is located and through what channels
are we distributing programs and the competitive advantage lies in distribution. In
Pakistan, Pizza Hut introduced itself in 1993, having 42 outlets in ten cities. Secondly,
the catchments area is of a specified minimum size and within a given drive time to the
The direct channel is also useful when there are a large number of
buyers, but a small amount purchased by each. Pizza Hut Delivered Pizzato space in
Year 2001, which made them More Famous.
Pizza Hut uses three different methods of selling its products directly
to the market.
1. The first method of distribution used by Pizza Hut is Home. Office delivery.
Customers can call Pizza Hut ahead of time, place an order, and the order is delivered
to the customer's home.
2. 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.
3. The third method of distribution is to order Online. Selective County Customers can
now go on the Internet and place an order for Pizza. 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.
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Promotion is the advertising, personal selling, sales promotion
and public relation. Pizza Hut has advertised their products through various means,
which include Newspapers, TV, Radio, Magazines, and Billboards. Promotional plans
have been made proper in positioning of the product. 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. They
are also distributing door- to- door brochures to capture more and more customers.
Pizza huts also using marketing techniques. Pizza hut is using these strategies 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. In 2000, Pizza Hut was a part-time sponsor of Galaxy
Motorsports. Pizza Hut was the shirt sponsor of English Football Club. In 2005, Pizza
Hut sponsored “The Simpsons” on Channel 4.In March 2007, Pizza Hut partnered with
Verizon Wireless to offer a free LG mobile phone with the purchase of a Cheesy Bites
Pizza.2007-08 Pizza Hut is a sponsor of the Newcastle Vipers ice hockey team for the
season in the UK. They have made many sales or discounts to target their customers.
In different occasions, Pizza Hut has made different schemes to capture their
customers. Such as, Winter Treat, Meal Deals, Midnight Deals and the famous one
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Basis Of Selecting Target Markets:
There are number of basis on which pizza hut selects those target markets for their
business. Number one is that they want the people with a bit high income and food
lovers. Who are ready to spend and enjoy the best food in best environment.
There are not only Muslims in Pakistan but also some minorities that are living their
lives. They want some vegetarian food and pizza hut is the only brand that offers some
vegetarian stuff to their customers. Due to the image of brand, vegetarians trust pizza
hut for best food in town. Visitors, who come to Pakistan, don’t go back without paying
visit to Pakistan’s food market. Pizza hut has also selected it’s target market on the
basis of this thing so that it could provide the more and more to their customers and
more than just food as the pizza hut Pakistan slogan is “Share the good times”.
Pizza hut targeted market defines them as a family product.
They don’t really straight market their customers. Middle and
high class family background people are the target market
of Pizza Hut. Like it has been discussed above about the
people who are highly paid employees and good
businessmen is the target market of Pizza Hut. But pizza hut focused a broad variety of
customers. We can also say that Pizza Hut is targeting the generation X which is more
active in spending money on non essential things like eating. Pizza Hut is also offering
products for vegetarians. The company is offering meat free pizzas with salad and pasta
so that people who don’t want to eat meat could enjoy the quality and best food of Pizza
Hut. Pizza Hut is also very good place for the students of colleges and universities.
Many students arrange the treat parties in Pizza Hut that made Pizza Hut to earn more
and more. Sometimes, it becomes hard to get a single seat in Pizza Hut due to all its
good and attractive offers and marketing mix.
Pizza Hut is targeting their customers by two types.
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1. Dine in is for those who love to have good times with their friends and age
fellows and some families.
2. Take away is for those who don’t have reach to any Pizza Hut outlet and they
want Pizza Hut products. They can give the order on phone and may have
their pizza at their home as Oven-Hot
Pizza Hut is also offering different kinds of meals to their customers. If anybody is not
interested in Pizza , Pizza Hut has targeted those customers too. It offers
to those kinds of people. People who’re ill or not allowed to have pizzas, pastas
can enjoy Pizza Hut’s meal deal with soup and salads.
Pizza Hut also targets to executive class people for meetings and discussion by offering
them hot and cold deals. Pizza Hut also arranges tea parties to those customers
according to their agenda and time.
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They launch their pizzas and sandwiches in changing style or flavours
They also launch other food items like pizza to spicy wedges, potato skins
The advertising strategy for Pizza Hut is two-fold.
Firstly, laying emphasis on it being an international brand with Pakistani heart
Pizza Hut’s communication is reflective of family values, family bonding, etc.
Secondly, highlighting the premise that the pizza is a catalyst that brings people
together ensures that this is a brand that connects with the Pakistani consumer
Pizza Hut spends approximately Rs 10-12 crore on advertising annually using a
media mix of print, television and radio.
Promotion are so very important for an organization , like any other organization same
applies to Pizza Hut as well . Pizza Hut Pakistan promotional strategies are as follow
They promote their latest deals offer in several local websites for e.g www.geo.tv
They follow below the line activities like Bill Boards , Bridge Pannels , Door to
door policy , cable advertisement and magazines
And you often find there promotinal campaigns running in universities and
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Pizza Hut being the leader among fast-food restaurant in
Pakistan have versatility in their sales strategies , as they follow a vast channels and
mediums to sale their product to the customers .
The medium and channels they follow are of 3 types
Dine – In
Through Dine–In facility they facitilate there customers with their
lavish services and customer relationship .
Through Delivery facility they make their customers delite by
providing Oven-Hot Pizza , right at customers door-steps .
Through Take away facility , customers can take their food
where ever they like .
Apart from this , there are many other sales strategies Pizza Hut
follow like they go to customers door-step to give awareness about their new
products , deal and offers , and also provide them coupons of which
customers can avail discounts as well
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In order to maintain 7 – 8 lacs customers anually , Pizza Hut
Pakistan has strong Marketing Intelligence team . They know how to delight customers
and keep them satisfied for a longer period of time .
Being the leaders in Pizza Industry , they know pizza is there core
product and what more varieties should offer to keep themselves different from others in
the market . Their marketing intelligence team keeps themselves up to date with current
environment , first they try the products and then launch them in the market .
CUSTOMER VALUE & SATISFACTION
Pizza hut create certain expectations among its customers, is
fulfilling it accurately, and get a good image in minds of customers. Its customers are
satisfied by its quality as it satisfies their expectations. They give basic priority to their
Customer relationship management (CRM):
Pizza hut build and maintain profitable customer relationships by delivering superior
customer value and satisfaction. In 1995, Pizza Hut began two customer satisfaction
a. 1-800 number customer hotlines and a customer callback program. These were
implemented to make sure their customers were happy, and always wanted to return.
b. They have full service restaurant as well as delivery services.
Exchange & relationships:
Pizza hut has maintained very good relationships with its customers. It believes on
exchange through relationships. They create relationships by offering the best product
and best services to their customers for example they are offering to their customers
home delivery services & providing products according to customer’s require
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Pizza Hut has many targets, which it has achieve in a given period. The time-period is
mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by
Pizza Hut. It can be concluded that these strategies have been successful and there is
flexibility in the strategies, as they can be changed with the changes in the market
conditions as well as the targets.
Strategy is only as good as its execution.
Not just product, but an experience.
Need to be just a step ahead…in sync with the consumer’s perception of value.
Customers move to the lower cost provider when marketers stop giving them
Pizza Hut's Secret of Success
The reason behind Pizza Hut's success all over the world is its steadfast belief
and uncompromising drive in providing customers the best in terms of product
quality, service, cleanliness and value .
Pizza Hut pizzas are made with fresh dough baked daily and smothered with our
very own Pizza Hut special tomato sauce, meat toppings, vegetables and a
double layer of 100% pure imported Mozzarella cheese .
Pizza Hut culture is integrity.
Invest heavily in our people through skills training and management
expertise, innovative ideas and hard work .
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There are some points, which Pizza Hut must follow to have more customers and
increase sales and profit in the market and in order to finish the threats.
Pizza Hut should focus on more advertisements, as in Pakistan, they are not making
advertisements. They should telecast their advertise more and on the right time when
their loyal customers and the target customers are watching the television. By this, they
are positioning their products in their customers’ minds. They should make an attractive
one in which they are differentiating their pizzas in quality, taste and tells that how
nutrition and healthy meals they are offering.
More advertisements of Pizza Hut is been watched by the customer then the variety
seeking buying behavior of the customer will also decrease. The customers will become
loyal to it.
They should make discounts cards or the membership cards for the loyal customers.
Those customers who mostly go once in a week or after two weeks.
They should reduce their price as compare to the competitors’ price and if not then
they should differentiate their product in their quality and taste. They should also tell
that they are using more toppings and cheese.
They must sponsor more concerts and games held in Pakistan, as they do not do. By
this, they will make a good reputation to towards their customers.
They should make stalls in the universities and colleges when there are some parties
held. In the stalls, they must offer pizzas in student discounted prices.
In order to move effectively into the rapidly progressing world of social responsibility, it
is time for business’ to expand their vision.
They should make its own website in which customers can place an online order.
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 number.
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· Google Search Engine
According to our knowledge all the information and queries in this report are correct.
We all read it carefully and we all are agree with this.
Head Of Marketing
Miss Bushra Akhter