1. Product life cycle and Social Economic Classification
Product Life Cycle
A product life cycle has four stages .Introduction, Growth, Maturity and Decline are the four stages in
the product life cycle . Right now pizza hut is in the maturity stage .
Introduction –Initially when pizza hut was first started in India in 1996, it was an introductory stage .
There were no players, essentially it was the only major player in the market. And it had the basic
products were sold, that is the same products that were sold in US.
Growth – In the later stages , there were new entrants in the market like dominos , papa johns and
local city based entrants .There was product innovation done by pizza hut .They started more Indianised
products .There was also increase in the amount spent for advertising .
Maturity – Right now it is in the early maturity stage , where there is lot of competition , rigorous
advertising and product innovation is being done. The competitors are trying to enter new unexplored
markets, especially the two tier and three tier cities .
Decline – This would be in the later stages when the weak competitors would leave the markets as it
has become highly competitive and very less profit is earned.
Social Economic Classification
Pizza hut targets the two income families. The age group that it targets is from 13 years -40 years. They
target especially the teenagers and youth , as they are the highest population and also are ready to
spend . As , pizza hut is in the early maturity stage , it has been doing lot of advertising campaigning in
order to sustain in the market . It wants to attract the other segments , which are not a part of its
customer base. It is essential that it has as many as loyal customers , as it would help them in later
stages to stand in the market .