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Table of Contents
Executive Brief ……………………………………………………….. 3
Introduction …………………………………………………………… 5
Details Needed ……………………………………………………….. 8
Survey Participants Population …………………………………….. 9
Methodology ………………………………………………………….. 10
Results ……………………………………………………………………16
Discussion ………………………………………………………………. 17
3
Executive Summary:
Research Brief SPARKNOTES
This report provides an analysis and evaluation of the current and
prospective state of the Pizza Hut Corporation and the following areas
concerning the corporation: productquality, company productivity, customer
satisfaction, growth with technology change, etc.
Methods of analysis include trend research, customer survey, horizontal and
vertical analyses. Results of data analyzed show that Pizza Hut is in an
intense competition with other contenders in the Pizza industry and is falling
behind due to lack of technology integration. Customer retention is
decreasing in correlation to lack of orders in technological categories of
service.
The report finds the prospects of the company in its current position are
neither positive nor negative. The major areas of weakness require further
investigation and action by management. Recommendations discussed
include: Conduction of more research studies, creation and implementation
4
of loyalty programs, increase of brand awareness, further development of
ordering experiences and creation and dispersion of more economic
discounts. The report also investigates the fact that the analysis conducted
has limitations. Some of the limitations include: biased survey research and
limited data along with the fact that not enough information is provided or
enough detail.
5
Introduction:
The NEED TO KNOW BASIS
The U.S. pizza market is a multi-billion dollar industry. Pizza is one of
America’s favorite foods, and the average American enjoys close to 50
slices of pizza a year. The category of pizza consumerism continues to
increase greatly, and with that growth comes behavioral changes in
consumers and in the patterns of how they patronize.
The questions the research study aimed to resolve was:
Why is Pizza Hut lackingin onlineorders and smartphone app orders?
What measuresshould be taken to stimulate and increase productivity
in the areas where Pizza Hut is displaying low performance?
Everything is about experience; the consumers want an unforgettable pizza
experience along with appealing and easy access to the food that they love.
The most noteworthy game changer in the pizza industry has been the
6
development of technology and the transformation of generations of
consumers. The way pizza is ordered and the specificity that it is ordered in
has changed dramatically forcing many pizza franchises, chains and
corporations to get on board in order to stay afloat and thrive as healthy and
competitive businesses.
The largest change has occurred in the way consumers order pizza or other
pizza-related products.
Instead of solely entering an establishment physically, customers have opted
to order their products online, by telephone and via applications available on
smart phones, laptops and other more efficient technology systems.
In the past, the Pizza Hut Corporation was the top national brand in the pizza
industry and is presently the largest pizza corporation nationally. It was a
household name that most families patronized when a desire for pizza and
pasta products would arise. However as time and technology have
transformed and grown, Pizza Hut has been left behind and is struggling to
regain control in the industry of pizza products.
Their main competitions are two other renowned pizza corporations,
Dominos Pizza & Papa John’s. These two companies have created new
7
reputations and high brand awareness causing their success rate to quickly
increase and continue to flourish.
The primary issue that plagues this corporation (Pizza Hut) is the lack of
online orders and the lack of orders being placed via smart phone
applications. While almost half of Pizza Hut’s orders are digitally accounted
for, the company struggles with keeping up with the competition in the area
of online orders and is behind in appealing to it’s target audience in the
competitive realm of technological ordering of pizza.
The shortage of online orders and the orders being placed through service
apps is a major issue because it hinders the productivity of the Pizza Hut
Corporation in the growing digital age. The Yum! Brand’s mission statement
for Pizza Hut aims to be best pizza for every pizza occasion and to be
accountable for growth in customer satisfaction. They aim to achieve this
mission by achieving a high recognition rate of the product for their market;
presently the company is failing to fulfill the aim of their mission and needs
to improve upon their failures by reassessing the target audience that holds
the key to it’s success.
8
DETAILS, DETAILS, DETAILS…
Details about:
What will entice customers to make online orders
and use Pizza Hut ordering apps?
How Can Pizza Hut outshine other competition?
What type of online experience does the average
consumer desire to have?
9
Survey Participants Population
Demographic Data:
 Millennials age 18-24 men/women
 25-44 mothers with at least one child in the household.
10
 Participants were taken from 9 different zones in the United Stat
Methodology:
The Process of the Research
In order to find viable solutions and campaigns to solve the digital
adaptation problem Pizza Hut is dealing with, the following methods were
used:
Contents of Survey
 The survey that was used was a 19 – point Survey distributed through
the Internet.
 Survey was distributed via Survey Monkey.
 Open-ended questions allowed for Qualitative answers.
 Multiple Choice questions allowed for Quantitative answers.
 Likert scale was used.
Recruitment
The study was administered in various ways such as texting, Facebook, e-
mail, and on rare occasions face to face.
11
Privacy
Opt out
 An Opt-out answer was added to the first question. This question
read:
o “How often have you purchased restaurant-style pizza in the
last three months?”
 The Opt-out answer read: “I have not ordered pizza in the last three
months.”
 10.27%of the participants choseto Opt-out.
Names of participants
The names of the participants remained confidential throughout the course
of the research study.
Collectionof IP addresses
During this study, the IP address of each participant’s computer was
gathered through Survey Monkey.
Time Parameters
The survey was completed during: The 4th
Quarter of the Year 2014
12
Convenience Sample
A total of 1013 participants took the survey, 90 percent of these willing
participants attempted, completed or partially completed the survey. As far
as the context of research, this particular study that was conducted did not fit
into the context of any other research.
A restriction that occurred during the study was that the population was
based off of a Convenience Sample. A convenience sample is when the
participants of a research study were not selected through random sampling
but chosenor selected based on personal relations to the surveyors. This
limits the diversity of the data because the population is a biased
demographic.
13
Results:
What Was LEARNED
The results yielded by the 19-point
online survey concerning the pizza
experience and consumer
preferences were broad and
generalized. The results affirm that
the Pizza Hut Corporation is still
highly recognized by consumers,
however the results also showed
that the corporation had other
pizza chains to compete with.
From Papa John’s and Domino’s
to Little Caesar’s Pizza and small
mom and pop pizza companies, the
quality pizza and quality
experience competition is evident.
Concerning the issue of the low
number of orders online and via
smart phone apps, the population
group that was surveyed varied.
The method of ordering pizza was
strong in the area of online
purchases and physically going
into the store. Majority of the
study contributors said that they
did not use mobile apps to order
pizza, this outcome correlated with
the results that indicate that
consumers have special
preferences for the experience of
ordering pizza. From the price and
quality of the pizza to the
restaurant ambiance/cleanliness
and employee friendliness, the
customers surveyed strongly favor
14
being physically inside the pizza
restaurant or being able to get a
full experience of the pizza chain
via the various avenues of ordering
pizza products.
GRAPH 1.1 is a representation of the pizza brands that the survey participants
prefer. Based on this information Pizza Hut is still highly preferred; but it has strong
competition.
Papa John's
27%
Pizza Hut
25%
Papa Murphy's
6%
Cici's Pizza
3%
Little Caesar's
6%
Dominos
17%
Other
16%
Preferred National Pizza Brands
15
Graph 1.2 is a representation of the different methods of ordering for pizza
consumers. This graph expresses the preference of the consumers and will help
Pizza Hut to improve its services in these areas.
Chart 1.1
Price Quality Restaurant
Ambiance
Cleanliness
Promotional
Discounts
Specialty Pizza
Options
Broader Menus
(more than pizza)
Employee
Friendliness
Phone
Restaurant
Computer/Tablet
Smart Phone App
Hulu
Xbox
Other
0 10 20 30 40 50
Phone Restaurant
Computer/T
ablet
Smart Phone
App
Hulu Xbox Other
Series1 46.89 23.2 22.59 6.11 0.24 0 0.98
Ordering Methods
16
Online Ordering
Ability
Downloadable App Order Recall Ability Carryout Service
Delivery to
Specified Location
Convenience Restaurant
Reputation
Third-Party Online
Reviews
Chart 1.1 is a collection of the important features of a pizza brand, based on
the answers that the research participants provided. This chart will enable
Pizza Hut to further develop its brand in these areas while maintaining and
increasing its consumer retention.
Discussion:
Result Interpretation & Recommendations
Based on the research study and the results yielded from it, it is clear that the
Pizza Hut Corporation is doing average when it comes to customer
satisfaction. However what is truly evident is that Pizza Hut has strong
competition and needs to reinforce or reconstruct its brand. The pizza
industry is changing due to the growth in technology and consumer patterns.
In order for Pizza Hut to thrive and control the success of the pizza industry,
they have to make major changes and implement recommendations from
marketing and consumers relation specialists.
Recommendations are as follows:
 Conductmore research studies
 Create are loyalty programs
 Increase brand awareness
 Further develop ordering experiences
 Implement more economic discounts
2

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Table of Contents

  • 1.
  • 2. 2 Table of Contents Executive Brief ……………………………………………………….. 3 Introduction …………………………………………………………… 5 Details Needed ……………………………………………………….. 8 Survey Participants Population …………………………………….. 9 Methodology ………………………………………………………….. 10 Results ……………………………………………………………………16 Discussion ………………………………………………………………. 17
  • 3. 3 Executive Summary: Research Brief SPARKNOTES This report provides an analysis and evaluation of the current and prospective state of the Pizza Hut Corporation and the following areas concerning the corporation: productquality, company productivity, customer satisfaction, growth with technology change, etc. Methods of analysis include trend research, customer survey, horizontal and vertical analyses. Results of data analyzed show that Pizza Hut is in an intense competition with other contenders in the Pizza industry and is falling behind due to lack of technology integration. Customer retention is decreasing in correlation to lack of orders in technological categories of service. The report finds the prospects of the company in its current position are neither positive nor negative. The major areas of weakness require further investigation and action by management. Recommendations discussed include: Conduction of more research studies, creation and implementation
  • 4. 4 of loyalty programs, increase of brand awareness, further development of ordering experiences and creation and dispersion of more economic discounts. The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: biased survey research and limited data along with the fact that not enough information is provided or enough detail.
  • 5. 5 Introduction: The NEED TO KNOW BASIS The U.S. pizza market is a multi-billion dollar industry. Pizza is one of America’s favorite foods, and the average American enjoys close to 50 slices of pizza a year. The category of pizza consumerism continues to increase greatly, and with that growth comes behavioral changes in consumers and in the patterns of how they patronize. The questions the research study aimed to resolve was: Why is Pizza Hut lackingin onlineorders and smartphone app orders? What measuresshould be taken to stimulate and increase productivity in the areas where Pizza Hut is displaying low performance? Everything is about experience; the consumers want an unforgettable pizza experience along with appealing and easy access to the food that they love. The most noteworthy game changer in the pizza industry has been the
  • 6. 6 development of technology and the transformation of generations of consumers. The way pizza is ordered and the specificity that it is ordered in has changed dramatically forcing many pizza franchises, chains and corporations to get on board in order to stay afloat and thrive as healthy and competitive businesses. The largest change has occurred in the way consumers order pizza or other pizza-related products. Instead of solely entering an establishment physically, customers have opted to order their products online, by telephone and via applications available on smart phones, laptops and other more efficient technology systems. In the past, the Pizza Hut Corporation was the top national brand in the pizza industry and is presently the largest pizza corporation nationally. It was a household name that most families patronized when a desire for pizza and pasta products would arise. However as time and technology have transformed and grown, Pizza Hut has been left behind and is struggling to regain control in the industry of pizza products. Their main competitions are two other renowned pizza corporations, Dominos Pizza & Papa John’s. These two companies have created new
  • 7. 7 reputations and high brand awareness causing their success rate to quickly increase and continue to flourish. The primary issue that plagues this corporation (Pizza Hut) is the lack of online orders and the lack of orders being placed via smart phone applications. While almost half of Pizza Hut’s orders are digitally accounted for, the company struggles with keeping up with the competition in the area of online orders and is behind in appealing to it’s target audience in the competitive realm of technological ordering of pizza. The shortage of online orders and the orders being placed through service apps is a major issue because it hinders the productivity of the Pizza Hut Corporation in the growing digital age. The Yum! Brand’s mission statement for Pizza Hut aims to be best pizza for every pizza occasion and to be accountable for growth in customer satisfaction. They aim to achieve this mission by achieving a high recognition rate of the product for their market; presently the company is failing to fulfill the aim of their mission and needs to improve upon their failures by reassessing the target audience that holds the key to it’s success.
  • 8. 8 DETAILS, DETAILS, DETAILS… Details about: What will entice customers to make online orders and use Pizza Hut ordering apps? How Can Pizza Hut outshine other competition? What type of online experience does the average consumer desire to have?
  • 9. 9 Survey Participants Population Demographic Data:  Millennials age 18-24 men/women  25-44 mothers with at least one child in the household.
  • 10. 10  Participants were taken from 9 different zones in the United Stat Methodology: The Process of the Research In order to find viable solutions and campaigns to solve the digital adaptation problem Pizza Hut is dealing with, the following methods were used: Contents of Survey  The survey that was used was a 19 – point Survey distributed through the Internet.  Survey was distributed via Survey Monkey.  Open-ended questions allowed for Qualitative answers.  Multiple Choice questions allowed for Quantitative answers.  Likert scale was used. Recruitment The study was administered in various ways such as texting, Facebook, e- mail, and on rare occasions face to face.
  • 11. 11 Privacy Opt out  An Opt-out answer was added to the first question. This question read: o “How often have you purchased restaurant-style pizza in the last three months?”  The Opt-out answer read: “I have not ordered pizza in the last three months.”  10.27%of the participants choseto Opt-out. Names of participants The names of the participants remained confidential throughout the course of the research study. Collectionof IP addresses During this study, the IP address of each participant’s computer was gathered through Survey Monkey. Time Parameters The survey was completed during: The 4th Quarter of the Year 2014
  • 12. 12 Convenience Sample A total of 1013 participants took the survey, 90 percent of these willing participants attempted, completed or partially completed the survey. As far as the context of research, this particular study that was conducted did not fit into the context of any other research. A restriction that occurred during the study was that the population was based off of a Convenience Sample. A convenience sample is when the participants of a research study were not selected through random sampling but chosenor selected based on personal relations to the surveyors. This limits the diversity of the data because the population is a biased demographic.
  • 13. 13 Results: What Was LEARNED The results yielded by the 19-point online survey concerning the pizza experience and consumer preferences were broad and generalized. The results affirm that the Pizza Hut Corporation is still highly recognized by consumers, however the results also showed that the corporation had other pizza chains to compete with. From Papa John’s and Domino’s to Little Caesar’s Pizza and small mom and pop pizza companies, the quality pizza and quality experience competition is evident. Concerning the issue of the low number of orders online and via smart phone apps, the population group that was surveyed varied. The method of ordering pizza was strong in the area of online purchases and physically going into the store. Majority of the study contributors said that they did not use mobile apps to order pizza, this outcome correlated with the results that indicate that consumers have special preferences for the experience of ordering pizza. From the price and quality of the pizza to the restaurant ambiance/cleanliness and employee friendliness, the customers surveyed strongly favor
  • 14. 14 being physically inside the pizza restaurant or being able to get a full experience of the pizza chain via the various avenues of ordering pizza products. GRAPH 1.1 is a representation of the pizza brands that the survey participants prefer. Based on this information Pizza Hut is still highly preferred; but it has strong competition. Papa John's 27% Pizza Hut 25% Papa Murphy's 6% Cici's Pizza 3% Little Caesar's 6% Dominos 17% Other 16% Preferred National Pizza Brands
  • 15. 15 Graph 1.2 is a representation of the different methods of ordering for pizza consumers. This graph expresses the preference of the consumers and will help Pizza Hut to improve its services in these areas. Chart 1.1 Price Quality Restaurant Ambiance Cleanliness Promotional Discounts Specialty Pizza Options Broader Menus (more than pizza) Employee Friendliness Phone Restaurant Computer/Tablet Smart Phone App Hulu Xbox Other 0 10 20 30 40 50 Phone Restaurant Computer/T ablet Smart Phone App Hulu Xbox Other Series1 46.89 23.2 22.59 6.11 0.24 0 0.98 Ordering Methods
  • 16. 16 Online Ordering Ability Downloadable App Order Recall Ability Carryout Service Delivery to Specified Location Convenience Restaurant Reputation Third-Party Online Reviews Chart 1.1 is a collection of the important features of a pizza brand, based on the answers that the research participants provided. This chart will enable Pizza Hut to further develop its brand in these areas while maintaining and increasing its consumer retention.
  • 17. Discussion: Result Interpretation & Recommendations Based on the research study and the results yielded from it, it is clear that the Pizza Hut Corporation is doing average when it comes to customer satisfaction. However what is truly evident is that Pizza Hut has strong competition and needs to reinforce or reconstruct its brand. The pizza industry is changing due to the growth in technology and consumer patterns. In order for Pizza Hut to thrive and control the success of the pizza industry, they have to make major changes and implement recommendations from marketing and consumers relation specialists. Recommendations are as follows:  Conductmore research studies  Create are loyalty programs  Increase brand awareness  Further develop ordering experiences  Implement more economic discounts
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