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Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
1. Submitted By:
Affan Manzoor
Ayyaz Tanveer
Hussain Iftikhar
M. A. Hanan
Mir Arooj Hasan
Raja Shakir Khan
Sarah Zaheer Syed
MBA II, Sec A
2. AT LAUNCH
1992
Market
Segment
Image
Competition
• Pizza hut was launched in Pakistan in Karachi with
several outlets
• Later, they expanded to Lahore and Islamabad, and
then slowly spread to other major cities in the country
• SEC A
• Quality food chain which provides the best value for
money to its customers
• Sole pizza franchise in the country
• Dominated the market nationally
• Market leader
3. TODAY
Competition
Distribution
Modes of
service
Internationally
acclaimed fast food
chains like KFC,
McDonalds and
Subway
44 branches in
Pakistan
Dine-In
Direct competitor and
international pizza
restaurant chainDominos
Plans to reach the
target of 88 branches
within next 5 years
Take Away
Local fast food chains
Special home-delivery
and take away centers
(HDCs) have been setup across Lahore and
Karachi
Home Delivery
4. SCENARIO
Changing consumer preferences
Customized menu to incorporate
local flavors
Tap into a bigger market segment
Customer inflow shifted from
SEC A to SEC B
Competitive long-term strategy shift focus from SEC A to SEC B
5. SCENARIO
Pizza Hut is experiencing above average growth
and plans on expanding its operations 2-fold
Dine-in Sales
60%
Revenue
The home
delivery segment
was more a
premium facility
Home
Delivery
40%
Opportunity to
develop and
capitalize on this
rapidly emerging
segment
Understand the
true market
potential of this
segment
6. Mr. Rasikh Ismail
(DCOO Pizza Hut)
“The management, at present, believes that the
initial shift observed in the dine-in segment
from SEC A to SEC B has not resulted in lapsed
users of SEC A as was previously assumed, but
was rather the function of a trend shift in the
consumer preferences of SEC A from dine in to
home delivery”.
7. Marketing
Problem
• Has SEC A fallen into lapsed users or has a
shift in trends occurred causing SEC A to
move from dine-in to delivery?
Business
Decision
• What measures and modifications can be
administered (mainly menu) to capitalize on
the opportunity that a high SEC A
concentration in the delivery segment has
presented?
Research
Problem
• Identify the prevalent and/or changing
consumer preferences, tastes and trends of
the SEC A consumer segment (pertaining to
fast food category).
8. Research Objectives
Primary
• Determine whether SEC A has indeed shifted
preferences from the dine-in to the home
delivery segment
Secondary
• Identify key fast food consumption patterns of
SEC A
• Check price sensitivity of the SEC A consumer
segment with respect to home delivery
• Gauge Pizza Hut’s brand perception among
SEC A)
9. Research Methodology
Exploratory Research Phase
Descriptive Research Phase
• Develop a deeper
understanding of the
research topic and
industry for our research
team
• Understand consumers
tastes, preferences, consid
eration factors
• Develop a hypothesis
• Identify important
variables
• Test variables identified in
the exploratory phase
• Get quantifiable responses
• Test Hypothesis
10. Exploratory Research Design
Literature Survey(Secondary Data)
• Serve as a good starting point for our research
• Lifestyle and social magazines, newspapers and online resources
Focus Group Discussions (Primary Data)
• Information sought is not very personal to individuals, can be
easily shared and entails no technical details for which an expert
may be required
• It is cost effective
• It is time effective
• Enables us to receive various point of views at the same time,
encourage interesting discussion and help us extract a bundle of
information
• 8 respondents
• 3 FGD’s – Approx. 1.5 hours each
11. Exploratory Research Design
• Education
and
Occupation
• User
• Lapsed User
• Non-user
SEC A
User
Status
Selection
Criteria
Age
Groups
• 13-19 years
• 20-25 years
• 26-35 years
Gender
• Males (50%)
• Females
(50%)
13. Descriptive Research Design
Sample
SEC A
Sample
Size
150
respondents
Sampling
Technique
Non probability
sampling
• Convenience
sampling
• Snowball sampling
Users and
Lapsed
Users
Age Bracket
(13-50)
Males and
females
• Cross-sectional study (Gathering primary data)
•Screener questions based on sample specifications
•Self administered questionnaires
15. Qualitative Research Findings
Variables
General Food
Category Likes
What to eat depends
on:
Which restaurant to
order from depends
on:
13 – 19 Years
Fast food and
„handy‟ food with
friends
Desi Food with
family
Mood
Budget (some
cuisines are
considered
expensive)
Budget
Food category
(mood)
Consultation with
friends
Time taken for
delivery
Delivery Charges
20 – 25 Years
Fast food (pizza
and burgers)
Desi food
Money
Distance or
accessibility
Budget
Location
Consulting with
friends
26 – 35 Years
Fast Food
Continental Food
Good
understanding
of
why it is called fast
food
and
the
purpose it serves
Mood depends
upon whether you
are dinning out
with friends or
with family
Mood
Quality
Time taken for
delivery
16. Qualitative Research Findings
Variables
13 – 19 Years
Restaurants for
home delivery
(friends):
KFC
Mc Donald‟s
Hot „n‟ Spicy
Gino‟s
Restaurants for
home Delivery
(family):
Desi Food Joints
BBQ Joints
Parents choices
kept in minds
Consideration
Factors for Eating
out with friends:
Comfort
Decent Crowd
(for girls only)
Hip Place
Lively
Environment
20 – 25 Years
26 – 35 Years
Wasabi
Pizza Hut
Any restaurant
McDonalds
with good „paratha Ginos
Pizza and Pasta
rolls‟
Pizza Time
Hot „n‟ spicy
Hot n Spicy
Hardees
Red Apple
Pizza hut
Nando‟s
Hot and spicy
Hip crowd
Lively “fun”
environment
Emphasis is
more on the
experience
Salt n Pepper
Hot n Spicy
BBQ
(mutual Consensus
Is done among the
family before ordering
for family)
Comfort
Decent Crowd
Ambience
17. Qualitative Research Findings
Variables
13 – 19 Years
20 – 25 Years
26 – 35 Years
What to eat depends
on:
Mood
Budget (some
cuisines are
considered
expensive)
Money
Distance or
accessibility
Mood depends
upon whether
you are dinning
out with friends
or with family
Which restaurant to
order from depends
on:
Budget
Food category
(mood)
Consultation with
friends
Time taken for
delivery
Delivery Charges
Quality of food
Budget
Location
Consulting with
friends
Mood
Quality
Time taken for
delivery
Any restaurant with
good „paratha rolls‟
Hot „n‟ spicy
Wasabi
Pizza Hut
McDonalds
Ginos
Pizza and Pasta
Restaurants for
home delivery
KFC
Mc Donald‟s
Hot „n‟ Spicy
18. Qualitative Research Findings
Variables
13 – 19 Years
20 – 25 Years
26 – 35 Years
Restaurants for
home Delivery
(family):
Desi Food Joints
BBQ Joints
Parents choices
kept in minds
Pizza hut
Nando‟s
Hot and spicy
Salt n Pepper
Hot n Spicy
BBQ
(mutual Consensus
Is done among the
family before
ordering for
family)
Consideration
Factors for Eating
out with friends:
Comfort
Decent Crowd
(for girls only)
Hip Place
Lively
Environment
Hip crowd
Lively “fun”
environment
Emphasis is
more on the
experience
Decent place
Consideration
Factors for Eating
out with family:
Formal
Restaurant
Decent Crowd
Lively
Formal
environment
Calm, and clear
and a clean
experience
Comfort
Decent Crowd
Ambience
Formal
Decent Family
comforting
environment
Place that can
19. Qualitative Research Findings
Variables
Restaurants for
dining - out with
family:
13 – 19 Years
20 – 25 Years
26 – 35 Years
DHA Club
YUM
Freddy‟s Café
Gourmet Grill
Freddy‟s
Aylanto
Nando‟s
Restaurants on
M.M Alam road
Pearl
Continental
Defense Club
Tabaq
BBQ
Dynasty
Hot and spicy
Espresso
Cosa Nostra
Restaurants for
dining - out with
friends:
Home delivery
frequency:
15 – 20
times/month with
friends and for self
Cosa Nostra
Aylanto
Nandos
Espresso
Arizona Grill
Freedy‟s
English Tea House
Zouk
15-20 times a
month ( with
friends and
family)
3-4 times a week
20. Qualitative Research Findings
Variables
Eating-out
frequency:
Home Delivery
Occasions:
Timing of eating-out:
13 – 19 Years
10 – 15 times/
month for guys
5 – 10 times/
month for girls
3 – 4 times/
month with
family for both
genders
Spontaneous
Mood
Don‟t like what is
cooked at home
Did not get
permission to
go out
Any time with
friends for guys
Mostly Breakfast/
Lunch with friends
for girls
20 – 25 Years
3-4 times a
month
Others order
regularly (daily)
Spontaneous
Mood
Don‟t like what is
cooked at home
When out with
friends
When they get
time off from
college or after
26 – 35 Years
Once a week,
hence 3-4 times a
month.
Spontaneous
Mood
Most of the time
its dinner with
family
Lunch is more a
friends and
21. Qualitative Research Findings
13 – 19 Years
20 – 25 Years
26 – 35 Years
Average pocket
money
Rs. 4000/month to
Rs. 6000/month
Did not give a
definitive
answer but
spend about RS
(300-400) daily
Self Earning
Paying for home
deliveries and
dining-out by:
Paid by self through
pocket money for
home deliveries and
eating-out
Paid through
pocket money
Rs. 500 – 700
Rs 700-1000
Rs 1000 maximum
limit
Variables
Avg. Expenditure
per head (eating
out):
Paid by self
Rs.1150 (Rs.1500
– 900)
22. Qualitative Research Findings
13 – 19 Years
20 – 25 Years
26 – 35 Years
Avg. Expenditure
per head (home
delivery):
Rs 300 – 350
Rs 300-500
Maximum Rs 500
Rs.400 – 700
Ideal Restaurant
should have:
Great setting and
ambience
Good Taste
Economical
(especially for guys)
Location should be
close by (especially
for guys)
Decent crowd
(especially for girls)
Variables
Ambiance
Quality Food
Service
Economical
Location
Ambience
Quality of the
food
Healthy
ingredients
23. Qualitatuve Research Findings
Variables
Pizza Hut Specific
Opinion:
13 – 19 Years
The first thing that
comes to mind for
almost all teenagers
when they hear the
word ‘pizza’ is Pizza
Hut.
„Pizza Hut se dil
bhar gaya hai‟
Would not go there
even if they change
the menu
Order the same
pizza whenever
they go to Pizza Hut
Thin crust is
preferred but Pizza
Hut‟s thin crust is
too thin and too
hard; thick crust is
too thick and gives
a feel like they are
20 – 25 Years
26 – 35 Years
Perceive
pizza
hut as an old man
who is past his
prime and about
to die.
Already
very
expensive
Deteriorating
quality.
Oily pizza‟s
Have less cheese
and are “doughy”
Gino‟s,Pizza Hut
and Pizza Time
are the places
that comes to
their mind when
asked about
pizza.
Pizza Hut is not
a top notch pizza
provider in the
town.
Dough is very
heavy, pizza is
very oily, cheese
concentration has
decreased and
the amount of
topping also
reduced
24. Qualitatuve Research Findings
Variables
13 – 19 Years
Restaurants
Considered for Pizza
Gino‟s
Pizza Time
Pizza Hut
Kings and Queens
Domino‟s
Reasons for not
going to Pizza Hut:
Crowd stares
(aunties, uncles and
other families give
judgmental looks)
Too much of family
crowd
„Backward‟ crowd
Will ONLY go with
friends, NEVER
with family
Oily and fattening
pizza (for girls)
20 – 25 Years
26 – 35 Years
Gino‟s
Pizza time
Pizza and pasta
Domino‟s
Gino‟s
Pizza Time
Pizza Hut
Kings and Queens
Domino‟s
Pizza and Pasta
Do not provide
value for money
Have more
substitutes
Deteriorating
quality
Too many flavors
Rectangular pizza
Crowd is “cheap”
females find it
unpleasant over
there
Pizza Hut is all
boys place
Their service is
not consistent as
there are many
delivery issues
regarding the
order and timing
25. Qualitatuve Research Findings
Variables
Average Expenditure
of Home Delivery of
Pizza Hut:
Marginal price hike
vs. Eliminating deals
perception:
13 – 19 Years
Rs. 250 – 300 per
head
If there is a
marginal price
hike, for example
of Rs. 100, this
age group would
still order Pizza
Hut home delivery
If deals are
discontinued then
majority of this
age group would
stop ordering
Pizza Hut home
delivery
20 – 25 Years
26 – 35 Years
Rs 400 - 600
Price increase
dosen‟t matter
unless the quality is
good and deals are
considered very
important
26. Qualitative Research Findings
Variables
Preferred Medium of
communication:
13 – 19 Years
20 – 25 Years
26 – 35 Years
Facebook (most
preferred)
Pamphlets
Billboards
TVC‟s
Texts are
considered
IRRITATING
No one visits the
websites for deals
and promotions
Texts
Facebook
Billboards
Facebook
Magazines
TVCs
27. Survey Questionnaire
Preferred
Food
Category
Dine-out vs.
home delivery
Price
sensitivity
Customer
satisfaction
Average
Expenditure
Frequency of
purchase
Top of mind
recall
Brand
preference
Consideration
factors
(purchase)
Promotion
Consideration
set
Meal Deals
31. Importance of Meal Deals
60.0%
53.8%
50.0%
44.8%
40.0%
35.8%
30.0%
30.0%
20.0%
19.4%
16.3%
10.0%
0.0%
Male
Female
Dining Out
Home Delivery
Both
19.4%
16.3%
35.8%
53.8%
44.8%
30.0%
•Females go for Home Delivery deals more than Males
•Females also go for Meal Deals when dining out
•Males prefer both Dine in and Home delivery meal deals
32. Frequency of Home Delivery
50.0%
45.0%
40.0%
45.0%
39.7%
35.3%
32.5%
35.0%
30.0%
25.0%
20.0%
16.2%
15.0%
12.5%
10.0%
5.0%
2.9%
5.0%
0.0%
Male
Female
5.9%5.0%
Less than 4
times in a
month
5 - 10 times
11 - 15 times
16 - 20 times
21 or more
times
39.7%
45.0%
35.3%
32.5%
16.2%
12.5%
2.9%
5.0%
5.9%
5.0%
The General trend here suggests that the frequency of ordering for Males is
more than Females in a month.
33. Reasons for Home Delivery
70.0%
60.0%
57.5%
50.0%
41.2%
40.0%
32.4%31.3%
30.0%
17.6%
20.0%
10.0%
3.8%
0.0%
2.9% 5.0%
Spontaneous mood
Male
Female
Don‟t like what is
cooked at home
Friends / family
gathering at home
I can‟t go out (no
driver, permission
problems etc.)
41.2%
57.5%
32.4%
31.3%
17.6%
3.8%
2.9%
5.0%
Females tend to order home delivery in spontaneous mood, where as males
tend to order more when they don’t like food cooked at home and when guests
are over
34. Importance of Factors Affecting
Home Delivery Choices
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
.0%
94.1%
86.3%
63.2%
60.0%
85.3%
86.3%
85.0%
86.3%
83.8%
85.3%
76.3%
70.6%
66.3%
60.3%
Price
Male
Female
Quality of
Food
Variety of
Menu
Speed of
Delivery
Freshness
(Hot) of
food
Delivery
Timings
Deals
Offered
63.2%
60.0%
94.1%
86.3%
60.3%
66.3%
85.3%
86.3%
83.8%
85.0%
85.3%
86.3%
70.6%
76.3%
For most of the respondents Quality of food is the most important criteria when
ordering Home Delivery, second speed of delivery is kept in mind when
ordering Home Delivery
35. Preferred Joint for Pizza
70.0%
60.0%
64.9%
52.2%
50.0%
40.0%
30.0%
20.3%
13.9%
20.0%
11.7% 10.1%
10.0%
6.7%
.0%
8.5%
8.3%
2.8%
0%
4.2%
Pizza Hut
Male
Female
Pizza Time
Kings &
Queens
Pizza and
Pasta
Domino's
Gino's
52.2%
64.9%
11.7%
10.1%
6.7%
8.5%
8.3%
2.8%
.0%
4.2%
20.3%
13.9%
Males and Females prefer Pizza Hut the most as a preferred joint to dine
in, but females prefer more dine in than males
36. Dining In vs. Home Delivery
Preference for Pizza Hut
60.0%
50.0%
53.8%
44.1%
36.8%
Axis Title
40.0%
30.0%
19.1%
20.0%
21.3%
23.8%
10.0%
.0%
Male
Female
Dining Out
Home Delivery
Both
44.1%
53.8%
19.1%
21.3%
36.8%
23.8%
For most Dinning out is prefer than home delivery, but females prefer more
than males to dine out
37. Ala Carte Vs. Delivery Deals
80.0%
75.0%
67.7%
70.0%
60.0%
50.0%
40.0%
29.2%
30.0%
20.0%
17.2%
10.0%
.0%
Male
Female
Ala Carte Menu
Special home delivery deals
17.2%
29.2%
75.0%
67.7%
Both Males and Females prefer deals as opposed to Ala Carte when ordering in
39. Satisfaction with Pizza Hut Home
Delivery Service
90.0%
80.0%
70.0%
78.1%
63.5%
64.1%66.7%
71.9%
63.5%
60.0%
71.9%
50.0%
50.0%
40.0%
30.0%
20.0%
10.0%
.0%
Speed of Delivery
Male
Female
Freshness (Hot) of
food
Delivery Timings
Deals Offered
78.1%
63.5%
64.1%
66.7%
71.9%
63.5%
71.9%
50.0%
Majority of the males are satisfied with the speed of delivery, majority of the
females are satisfied with the freshness of the food when ordering in, But
majority of the females are less satisfied with the deals being offered for
ordering in
40. If Deals Were Eliminated:
80.0%
70.0%
69.2%
71.2%
60.0%
50.0%
40.0%
30.8%
30.0%
28.8%
20.0%
10.0%
.0%
Male
Female
Continue to order from Pizza Hut
Discontinue to order from Pizza Hut
69.2%
71.2%
30.8%
28.8%
Majority of the respondents will still order from Pizza Hut if the deals were
eliminated, But males would probably discontinue more than females if deals
were discontinued
43. Importance of Meal Deals
50.0%
47.1%
42.9%
42.3%
45.0%
40.0%
33.3%
35.0%
30.0%
25.0%
24.4%
20.0%
15.0%
10.0%
10.0%
5.0%
0.0%
User
Lapsed User
Dining Out
Home Delivery
Both
24.4%
10.0%
42.3%
47.1%
33.3%
42.9%
Majority of the users dine out, while majority of the lapsed users order home
delivery, for both users and lapsed users majority of the lapsed users meal deals
are important when dining out and when ordering in
44. Frequency of Home Delivery
60.0%
50.0%
40.0%
47.9%
35.9%
37.2%
32.4%
30.0%
15.4%
20.0%
12.7%
3.8%4.2%
10.0%
0.0%
User
Lapsed User
7.7%
2.8%
Less than 4
times in a
month
5 - 10 times
11 - 15 times
16 - 20 times
21 or more
times
35.9%
47.9%
37.2%
32.4%
15.4%
12.7%
3.8%
4.2%
7.7%
2.8%
Lapsed users have ordered in the least as compared to users in the last
month, Users order in more frequently as compared to lapsed users in the
month
45. Reasons for Home Delivery
60.0%
50.0%
54.9%
46.2%
39.7%
40.0%
30.0%
22.5%
16.9%
20.0%
10.0%
3.8%
0.0%
5.1%
2.8%
Spontaneous
mood
User
Lapsed User
Don‟t like what is
cooked at home
Friends / family
gathering at home
I can‟t go out (no
driver, permission
problems etc.)
46.2%
54.9%
39.7%
22.5%
3.8%
16.9%
5.1%
2.8%
The main reason for ordering in for users is that they don’t like what's cooked
at home, where as for lapsed users it depends on their mood when ordering
in
46. Importance of Factors Affecting
Home Delivery Choices
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
.0%
70.4%
66.2%
61.5%
85.9%89.7%
83.3%
81.7% 75.6%
77.5%
71.8%
53.8%
Price
User
Lapsed User
93.6%
91.5%
88.5%
53.8%
70.4%
Quality of Variety of
Food
Menu
88.5%
91.5%
61.5%
66.2%
Speed of
Delivery
Freshnes
s (Hot) of
food
Delivery
Timings
Deals
Offered
93.6%
77.5%
83.3%
85.9%
89.7%
81.7%
75.6%
71.8%
The main factors relevant for ordering in for users are, speed of delivery and
quality of food, where as for lapsed users quality of food and freshness are of
utmost importance
47. Preferred Joint for Pizza
80.0%
75.0%
70.0%
60.0%
50.0%
41.8%
40.0%
27.3%
30.0%
15.9%
20.0%
10.0%
4.6%
.0%
7.8%
7.6%
7.5%
3.0%
4.7%
.0%
7.2%
Pizza Hut
User
Lapsed User
Pizza Time
Kings &
Queens
Pizza and
Pasta
Domino's
Gino's
75.0%
41.8%
4.6%
15.9%
7.6%
7.8%
7.5%
3.0%
.0%
4.7%
7.2%
27.3%
For both users and lapsed users the most preferred Pizza joint is Pizza Hut
48. Dining In vs. Home Delivery
Preference for Pizza Hut
60.0%
50.0%
53.5%
43.6%
38.5%
40.0%
30.0%
26.8%
20.0%
16.7%
19.7%
10.0%
.0%
User
Lapsed User
Dining Out
Home Delivery
Both
43.6%
53.5%
16.7%
26.8%
38.5%
19.7%
Majority of the Lapsed users prefer to dine out as well as opt for home delivery
where as, majority of the users preferred to dine out and order in
49. Ala Carte Vs. Delivery Deals
100.0%
90.0%
76.1%
80.0%
66.1%
70.0%
60.0%
50.0%
40.0%
28.8%
30.0%
20.0%
18.3%
10.0%
.0%
User
Lapsed Used
Ala Carte Menu
Special home delivery deals
18.3%
28.8%
76.1%
66.1%
Most of the Users prefer special deals for home delivery.
50. Home Delivery Avg.
Expenditure/person
60.0%
49.2%
50.0%
39.4%
40.0%
30.0%
25.4%
21.1% 18.6%
20.0%
20.3%
11.3% 11.9%
10.0%
2.8%
.0%
User
Lapsed User
.0%
200 or less
200 to 500
500 to 800
800 or 1000
.1000 or more
2.8%
.0%
21.1%
18.6%
25.4%
49.2%
11.3%
11.9%
39.4%
20.3%
For majority of the users the average expenditure per person is more than Rs
1000, where as for lapsed users the average expenditure ranges betweeen Rs.
500-800
51. Satisfaction with Pizza Hut Home
Delivery Service
80.0%
70.0%
69.0%
70.2%
69.0%
64.8%
68.4%
57.9%
60.0%
60.0% 59.6%
50.0%
40.0%
30.0%
20.0%
10.0%
.0%
Speed of Delivery
User
Lapsed User
Freshness (Hot) of
food
Delivery Timings
Deals Offered
69.0%
70.2%
69.0%
57.9%
64.8%
68.4%
60.0%
59.6%
For Users the speed of delivery and the freshness of food are the two most
important factors where as for lapsed users speed of delivery and delivery
timings are the most important factors
52. If Deals Were Eliminated:
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
.0%
User
Lapsed user
66.7%
71.7%
33.3%
28.3%
Continue to order from
Pizza Hut
Discontinue to order from
Pizza Hut
66.7%
71.7%
33.3%
28.3%
Majority of the users would discontinue to order from Pizza Hut if deals were
eliminated and most of the lapsed users would continue to order from Pizza Hut
as deals are not so important for them.