Pizza Hut Karachi Pakistan Project Report

PAF (KIET), Karachi (SP-21) Page 1
PROJECT REPORT
ON
PIZZA HUT
Pakistan
Faculty
Dr. Ameena
Semester SP-21
Submitted by:
Tariq Mehmood 56908
Saeed Ahmed 10603
Sonera Shaikh 6606
LETTER OF TRANSMITTAL

Mr
PAF KIET,
Karachi.
Dear Mr.
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 class group project 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 class report.
We will be more than glad to respond to any queries that you might have regarding our
report.
Sincerely yours,
Tariq Mehmood
Saeed Ahmed
Sonera Shaikh
SIGNATURE

EXECUTIVE SUMMARY
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 / employees. 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 workin a friendly environment. We may elaborate work for society.

TABLE OF CONTENTS
S.no Topic Pg #
1 Pizza Hut 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 SWOT 9
9 Market Segmentation of Pizza Hut 10 - 11
10 Product Development Function 12
11 Marketing Mix 13
12 Target Marketing 17
13 Branding 19
14 Promotional & Advertising Strategies 20
15 Sales Strategies 21
16 Marketing Intelligence & Customer Value & Satisfaction 21
17 BCG matrix 23
18 Service Process 24
19 Fish Bone 26
20 Conclusion 27
21 Gap Model 28
22 Strategies should adopt by pizza hut 29
23 Recommendations 31
24 Resources 33

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.
Bon appetite!
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 boththe 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.

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.

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 it’s all history
With 74 outlets operational countrywide, Pizza Hut has become the first fast-food chain
in the country to go public and our next target is to take Pizza Hut to all districts of the
country.” Yum!
They are growing day by day even they have big competition in the market.

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!”
• 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.
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”

SWOT ANALYSIS
Strengths
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 or image: 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.
Hygiene & 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 Hours
They advertise very less
Fewer Outlets: Their outlets are not spread all over the city as compared to other
competitors or maybe less advertisement where opened.
Opportunities
Pizza Slice: They are one of the best pizza makers. In their take away 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 Domino or Pizza Max – one of its
competitors. Pizza Hut being in market for a long time can cash on this opportunity
Low Calorie Pizzas in their menu
Visit different institute to promote their product range
Business alliance like (MacDonald & Coca-Cola)
Sponsorships (Specially PSL)
Threats
Competitors like Dominos, Pizza Max.
Housewives are interested in making Pizzas & other Fast Food at home.
COVID-19

MARKET SEGMENTATION
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 and how a day’s Uber Careem & Bikya are also
helpful for customer and for us too, 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:
-
1. Geographic variables
2. Demographics variables
3. Psychographic variables
4. andBehavioral variables
Geographic Variables
· 36.91 percent Urban population of Pakistan
Demographic Variables
· Age: All age group
· Gender: Both male, female
Psychographic Variables
· Social class: Upper Class, Upper Middle Class, Middle Upper class.
Behavioral Variables

Geographic:
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.
Demographic:
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.
Psychographic:
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.
Behavioral:
Pizza Hut’s behavioral segment is the class where people love to spend money on
eating.

PRODUCT DEVELOPMENT FUNCTION
In order to achieve success and customer satisfaction, Product development function
plays a key role in an organization. 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 knows that Product Development Function is very important in order
to retain customers intact towards them.
To satisfy the customer NPD (New Product Development) isintroduce after every eight
weeks t ha t is the policy of Pizza Hut. They offer new variety so that customers
can’t get bored from those offers which they have already experienced. And this year as
well, they offer Vegetable Pizza 1st time in Pakistan.
For Product Development Function, they take certain steps regularly.
 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
reasonable.
After going through certain steps, it takes 2 – 3 months process for the final outcome.

MARKETING MIX
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:
1. PRODUCT
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
newlyintroduced Pizza Mia. Pan Pizza was launched nationally in 1980. More than
twentyyears 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 foodproducts 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 alsodeveloped, as there are choice differences. Pizza hut offers a
long list of products andnever 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 thisregion. There are a lot many products according to different
geographical places. Besides the pizzas, Pizza Hut also serves pastas, starter,
sandwiches, and deserts.

2. PRICE
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 keepingin 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 withreasonable 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.

3. PLACE
The chain has a total of 18,703 restaurants worldwide as of December 31, 2019 which
was Pizza hut has 9,000 outlets in 100 Countries in 2013. 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 site.
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 (Own app, Bank discounts &
foods panda). Now a day’s online shopping or dining due to COVID-19 is very in
specially those have big name in market. Selective County Customers cannow 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.

4. PROMOTION
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 and (Own app, Bank
discounts & foods panda with different deals) 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 Ramazan Deals and other seasonal
days.

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 its 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”.
Target Marketing:
Pizza hut targeted market defines them as a family product.
They don’t really straight market their customers. Middle
andhigh 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.

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
 Pastas
 Sandwiches
 Desserts
 Pizza (BBQ Bacon Cheeseburger, Premium Garden Veggie, Pepperoni, Italian
Meatball, Chicken-Bacon Parmesan Supreme etc)
To those kinds of people, people who’re ill or not allowed to have pizzas, pastascan 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. In Ramzdan when people want some taste pizza is
best option

BRANDING:
LINE EXTENSION:
They launch their pizzas and sandwiches in changing style or flavors
RANGE EXTENSION:
They also launch other food items like pizza to spicy wedges, potato skins
ADVERTISING STRATEGIES
 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.
 Now Days (own App, Food Panda deals, different back discounts) 
 Due to COVID-19 giving dine in is close now take away is very popular, giving
different deals and discount is very helpful for their business. 
PROMOTIONAL STRATEGIES
Promotions 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.pizzahut.com
 They follow below the line activities like Bill Boards , Bridge Panels , Door to
door policy , cable advertisement and magazines
 And you often find there promotional campaigns running in universities and
colleges etc

 Own App, Food Panda deals, different back discounts


SALES STRATEGIES
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 (closed now days due to COVID-19 SOPs)
 Delivery (their riders and also from food panda)
 Take away
Through Dine–In facility they facilitate their customers with their lavish services and
customer relationship.
Through Delivery facility they make their customers delight by providing Oven-Hot Pizza,
right at customer’s door-steps.
Through Take away facility, customers can take their foodwhere 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

MARKETING INTELLIGENCE
In order to maintain 7 – 8 lacs customers annually, 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 inthe 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.
CUSTOMERVALUE & 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 customers.
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
programs:
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

SERVICE PROCESS

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 un-satisfaction. These causes can be well explained by the fish
bone diagram.
FISH BONE DIAGRAM OF PIZZA HUT UNSATISFIED CUSTOMER

CONCLUSION
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
thosereasons.
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
development.
 Expertise, innovative ideas and hard work

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 or some time in special day’s
weekend or Eid Ul Fitr / Eid Ul Azha and other oceans 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 2: 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.

Strategiesshould adopt by pizza hut:
A business's strategy is the pattern of decisions and actions that are taken by the business
to achieve its goals. A business has a variety of goals and objectives. All businesses need
to organize their business activities in order to achieve their business objectives. Running a
business involves planning the current as well as future activities. Hence, in order to achieve
the business objectives, all business organizations adopt different strategies. Similarly,
Pizza Hut has adopted many strategies which help achieve the targets set by the main office
to the local store opened at different. Changes are the external as well as internal
environment has led Pizza Hut rethink their past strategies and has therefore designed new
strategies after noticing the changes in the environment. These environmental changes are
seen through the PEST and SWOT analysis (also done). After considering all the factors
Pizza Hut has decided upon the strategies and their current strategies are divided into five
main categories and further have sub-parts. These strategies are: -
Functional Strategies: -
These are strategies designed to improve the efficiency of a business's operations. They
often focus on an area, such as marketing, human resource etc. All business organizations
adopt strategies at functional level as once the functional objectives are achieved, corporate
objectives become easy. In order to make the functional strategy efficient, Pizza Hut has
made all the functional departments cooperate with each other
TotalQuality Management(TQM): -
This is the most important for a food chain like Pizza Hut. All the employees’ back-of-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
Karachi. This department has the task to implement quality standards and know whether
they are achieved or not, now a day’s COVID-19 is hitting the business specially services

and food industry to strictly adopt the SOPs given by the government.
Business Level Strategy: -
Business level strategies are plans made to gain a competitive advantage over its rivals in a
market. Hence, all the businesses need to adopt business level strategies in order to
compete in a competitive environment. If we take a look at the Pakistani market, there are
no large competitors of Pizza Hut but unlimited small competitors exist and new competitors
are entering in the market. Whereas, in future this competition will increase more and Pizza
Hut will have to change all its business level strategies in order to compete with its rivals. In
very near future Domino, pizza max, pizza point and others brands is opening its first branch
in Karachi. This would be a threat for Pizza Hut and hence, the strategies would be
changed.
Pricing Strategy: -
The level of competition a business faces determines its pricing strategy. Sometimes a
business has the scope to set its price and sometimes a business cannot. When a business
has the scope to set its price there is a number of pricing strategies or policies it might
choose. By questionnaire fill from the customers or survey may help to set the prices.

RECOMMENDATIONS
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.
 Different discount (like coupon, deals)
 Seasonal Discount (Like Ramzdan, Eid Ul Fitr and Eid Ul Azha etc)
 Food Panda (deals with Pepsi or Coke-Cola)

RESOURCES
· Google Search Engine
· www.definitions.com
· www.answers.com
· www.wikipedia.org
· www.pizzahut.net.pk
According to our knowledge all the information and queries in this report are correct.
We all read it carefully and we all are agreeing with this.
SIGNATURE
SIGNATURE
SIGNATURE
SIGNATURE
Teacher Faculty
Dr. Ameena

Pizza Hut Karachi Pakistan Project Report

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