SlideShare a Scribd company logo
1 of 25
Download to read offline
PIZZA HUT

1958-1967
1967-1999
1999-PRESENT

Submitted by :Wasim Akram
GENERAL INFORMATION
• TYPE - PUBLIC
• FOUNDED - WICHITA, KANSAS (1958)
• LOCATION - DALLAS, TEXAS
• KEY PEOPLE - DAN AND FRANK CARNEY (FOUNDERS) DAVID C.
NOVAK (CEO)
• INDUSTRY - FOOD WHOLESALE

• PRODUCTS - PIZZA
• EMPLOYEES - 250,000 (APPROX.)
• WEBSITE - WWW.PIZZAHUT.COM
PIZZA HUT STORY
• 1958: THE LEGACY OF PIZZA HUT BEGAN, WHEN TWO COLLEGE-AGED
BROTHERS FROM WHICHITA, KANSAS, FRANK AND DAN CARNEY
OPENS FIRST PIZZA HUT RESTAURANT AFTER BORROWING $600
FROM THEIR MOTHER.
• 1959: PIZZA HUT IS INCORPORATED IN KANSAS AND THE FIRST
FRANCHISE UNIT OPENS IN TOPEKA, KANSAS.
• 1968: INTERNATIONAL MARKET ENTERED WITH OPENING OF PIZZA
HUT RESTAURANT IN CANADA.
• 1969: RED ROOF ADOPTED FOR RESTAURANTS.
• 1972: PIZZA HUT, INC. LISTED ON NEW YORK STOCK EXCHANGE
UNDER THE SYMBOL PIZ.
• 1977: PIZZA HUT, INC. STOCKHOLDERS OVERWHELMINGLY APPROVE
MERGER WITH PEPSICO, INC. FOR AN UNDISCLOSED SUM.
• 1986:DELIVERY SERVICE, AS A NEW CONCEPT, IS
INITIATED

• 1996: PIZZA HUT COMES TO INDIA WITH A DINE IN
RESTAURANT BANGALORE THAT HAS SPECIAL
VEGETARIAN PIZZAS.
• 1997: PIZZA HUT OPENS A DINE-IN RESTAURANT IN DELHI.
• 2007: PIZZA HUT BROUGHT OUT OUR THICK N THIN PIZZA
AND BEGAN TO RE-FRANCHISE OUR DINE-IN
RESTAURANTS.
• 2009: PIZZA HUT OFFERING BAKED FILLINGS IN THE
CORNER OF THE PIZZA
OVERVIEW OF THE CASE
• BY 1986, PIZZA HUT’S LEADERSHIP OF THE OVERALL PIZZA MARKET
IS BEING CHALLENGED BY DOMINO’S, A DELIVERY-ONLY CHAIN.

• THE DELIVERY SEGMENT ACCOUNTS FOR ONLY 20% OF THE $12.7
BILLION PIZZA MARKET, BUT IT IS GROWING RAPIDLY.

• A CHANGE IN CONSUMER PREFERENCES HAS LED TO THE
INCREASED PURCHASES IN THE DELIVERY SEGMENT.

• AFTER YEARS OF RESISTING ENTRY INTO THE DELIVERY SEGMENT
FOR FEAR OF CANNIBALIZING ITS EXISTING EAT-IN
RESTAURANTS, PIZZA HUT HAS DECIDED IT IS NECESSARY TO MOVE
INTO THE DELIVERY SEGMENT.
STRENGTHS
• IT IS THE MARKET LEADER IN PROVIDING DIFFERENT VARIETIES OF
PIZZAS
• SPECIALIZES ONLY IN PIZZAS
• HAS FULL SERVICE RESTAURANT AS WELL AS DELIVERY SERVICES.

• STRONG FRANCHISEE NETWORK

WEAKNESS
• HIGH OVERHEAD COSTS DUE TO LARGE NUMBER OF RESTAURANTS.
• HIGH PRICE
• INTERNAL CONFLICTS AMONG FRANCHISEES
OPPORTUNITY
• EXPANSION THROUGH ONLINE ORDERING SYSTEM.
• INTRODUCTION OF MORE INNOVATIVE PIZZAS.
• VENTURING INTO SENIOR CITIZENS MARKET.

THREATS
• THE DIFFERENTIATION STRATEGY FOLLOWED BY ANY PIZZA CHAIN IS
SOONER OR LATER ADOPTED BY ALL PIZZA INDUSTRY PLAYERS.
• MAIN THREAT FROM COMPETITORS: DOMINOS
PORTERS 5-FORCE MODEL
EXISTING RIVALRY
• RIVALRY AMONG EXISTING PLAYERS

• AT PRESENT THERE ARE 3 MAJOR PLAYERS IN US PIZZA
MARKET MAINLY DOMINOS LITTLE CEASERS PIZZA HUT
AND THE DEGREE OF RIVALRY IS VERY HIGH

• THE REASON IS NUMBER OF COMPETITORS IS VERY
LARGE INDUSTRY GROWTH IS HIGH AND FIXED COST
INVOLVED IS HIGH
THREAT OF NEW ENTRANTS
SINCE INDUSTRY GROWTH IS HIGH IT ATTRACTS NEW
POTENTIAL FIRMS TO ENTER INTO THE MARKET.
HOWEVER, IF THE NEW ENTRANTS IS EXPERIENCED THEN
IT WILL BE ABLE TO COMPETE WITH THE EXISTING
PLAYERS ELSE THE ECONOMIES OF SCALE ENJOYED BY
THE EXISTING PLAYERS WILL FORCE THE NEW ENTRANTS
TO EXISTING MARKETS
THREATS OF SUBSTITUTE
THREATS FROM JUNK FOODS SUCH AS HOT
DOGS, SANDWICHES AND BURGERS.

THREATS OF BUYERS BARGAINING
POWER
FROM CUSTOMER OR BUYERS WHEN THERE ARE
NUMBER OF SUPPLIERS OF BUYERS CONCENTRATION
IS HIGH OR LARGE AVAILABILITY OF SUBSTITUTE
GOODS
THREATS OF SUPPLIERS BARGAINING
POWER

ALSO FROM SUPPLIERS WHEN THERE IS LARGE NUMBER
OF BUYERS FROM THESE SUPPLIERS, HIGH
CONCENTRATION OF SUPPLIERS, HIGH SWITCHING COSTS
AND NON AVAILABILITY OF RAW MATERIAL SUBSTITUTES
CONSUMER SEGMENTATION BY CHANNEL
Eat-In

Carryout

Delivery

Benefit

Atmosphere,
Quality

Time

Time factors

Price Sensitivity

Lowest

Modest

Highest

Demographic Profile

Non-families

Families, timestarved

Families,
convenience
COMPETITION FROM DOMINOS & LOCAL PLAYERS
Units

Average
Delivery
Check/Person($)

PIZZA HUT

System wide
Sales
($ millions)
1934

5025

9.99

Separate delivery units plus franchisee
add-on delivery out of restaurant

DOMINO'S

1550

3696

9.5

Delivery only

LITTLE
CAESAR
PIZZA INN

520

1308

2.75

No delivery

278.7

748

4.3

Separate delivery units

GODFATHER'S

275

650

9.75

Add-on delivery out of restaurant

ROUND TABLE
PIZZA
SHOWBIZ/CHU
CK E. CHEESE

250

535

5

Add-on delivery out of restaurant

249

268

5.2

No delivery

SHAKEY'S

197

386

4.25

Add-on delivery out of restaurant

Mr. GATTI'S

139.2

319

7.81

Add-on delivery out of restaurant
1979
System net sales ($MM) 732

1980
832

1981
1007

1982
1170

1983
1394

1984
1556

1985
1743

1986
1934

Market share
Units
Company
Franchise
Total

14.9

15.7

17

17.2

18

17.3

16

15.4

1940
1801
3741

1888
1873
3761

1843
1922
3765

1845
1975
3820

1911
2095
4006

2051
2157
4208

2224
2309
4533

2534
2491
5025

196

221

267

306

348

372
395
282

400
289

Company
PSA sales ($M)
(Traditional)
(Delivery)
PSA sales growth
Real
Price
Total
Net sales($MM)
Net sales growth (%)
Total revenues ($MM)
ROAE(%)
Franchisees:
PSA sales($M)

-3.1
6.4
3.3

4.7
8.1
12.8

11.8
9
20.8

8
6.6
14.6

9.8
3.9
13.7

1.8
5.1
6.9

2
3.4
5.4

-2
0.8
-1.2

354

399
12.7
556
6.1

476
19.3
489
8.9

556
16.8
569
16.4

678
21.9
699
21.7

766
13
795
16.9

835
9
867
15

929
11.3
967
12.4

237

280

314

350

386

400

415

495
3.5
REASONS WHY PIZZA HUT ADOPTED
“FRANCHISING” AS THE ENTRY STRATEGY
• BEST METHOD TO ESTABLISH OPERATIONS WITHOUT RISK OF
OPERATIONS IN AN UNFAMILIAR MARKET.

• FRANCHISING ROUTE HELPS IN LEARNING THE BUYER BEHAVIOUR
, CONSUMER BEHAVIOUR & MARKET REALITIES.

• IN COUNTRIES WHERE DIRECT FOREIGN INVESTMENT IS NOT
ALLOWED , FRANCHISING IS THE EASIEST ROUTE TO ENTER IN
THESE MARKETS.
ISSUES IN THE CASE - 1
SHOULD PIZZA HUT ENTER THE DELIVERY SEGMENT OF
THE PIZZA MARKET IN AN ATTEMPT TO COMBAT DOMINO’S
GROWING POPULARITY AND MARKET SHARE FROM THIS
SEGMENT?
• YES IT SHOULD ENTER BECAUSE THE PIZZA DELIVERY
MARKET IS AN ENTIRELY SEPARATE SEGMENT IN ITSELF.
MOREOVER PIZZA HUT WOULD HAVE COMPETITIVE
ADVANTAGE BECAUSE OF ITS BRAND NAME.
KEY CONSTRAINTS

• CANNIBALIZING
• CONVINCING THE FRANCHISEE
• SETTING UP THE INFRASTRUCTURE FOR DELIVERY
SYSTEM.

• COMPETITION FROM LOCAL PLAYERS.
• IT DID NOT CANNIBALIZE THE DINE IN RESTAURANT AS
BOTH HAVE ITS DIFFERENT MARKET SEGMENTS.
• PIZZA HUT WAS ABLE TO CONVINCE THEIR FRANCHISEES
AFTER SUCCESSFULLY PUTTING ACROSS THEIR POINT OF
HIGH MARKET POTENTIAL IN THE PIZZA DELIVERY
MARKET.
• THEY BUILT A VERY ROBUST AND SUSTAINABLE DELIVERY
MODEL.
• THEY GAINED COMPETITIVE ADVANTAGE BECAUSE OF
THE NEW CSC SYSTEM.
ISSUES IN THE CASE - 2
IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE
INTO THE DELIVERY SEGMENT OF THE PIZZA MARKET,
WHAT OPERATIONAL APPROACH SHOULD THEY USE?

APPROACHES TO BE FOLLOWED
• ADOPTION OF CSC SYSTEM.
• ADEQUATE MAN POWER, DELIVERY VEHICLES AND
OTHER SUPPORTING INFRASTRUCTURES.
• PROPER TRAINING OF SALES AND DELIVERY FORCE.
• PROPER DEMARCATION AND PLANNING OF ZONES AND
DELIVERY ROUTES.
ISSUES IN THE CASE - 3
IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE
INTO THE DELIVERY SEGMENT OF THE PIZZA MARKET, HOW
DO THEY CONVINCE THEIR EXTENSIVE FRANCHISE
SYSTEM TO PARTICIPATE WITH THEM?

• INCENTIVIZE THE FRANCHISEE.
• MAKE THE FRANCHISEE UNDERSTAND THE POTENTIAL OF
DINE AT HOME.
ISSUES IN THE CASE - 4
• IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE INTO THE
DELIVERY SEGMENT OF THE PIZZA MARKET, WHAT WILL BE THE
OVERALL EFFECTS ON THEIR EAT-IN RESTAURANT BUSINESS AND
THEIR FRANCHISE RELATIONSHIPS?

EFFECT ON EAT IN RESTAURANT
EFFECT ON THE FRANCHISES
IN THE BEGINNING THERE WAS RESISTANCE FOR THE
ADOPTION OF THE NEW DELIVERY AND CSC SYSTEM BUT
AFTER LEARNING THE ADVANTAGES OF THESE NEW
STRATEGIES AND THE GROWTH POTENTIAL THAT IT WOULD
BRING ALONG WITH IT, THEY ADOPTED THESE NEW
CHANGES.
RECOMMENDATION
• HIGH QUALITY PERSONNEL: TOTAL COOPERATION OF ITS
EMPLOYEE’S THEREBY INCREASING PRODUCTIVITY , BEATING
COMPETITION AND ENHANCING CUSTOMER SATISFACTION. FOR THIS
HIGH INCENTIVES SCHEMES MUST BE ESTABLISHED.
• FOCUS ATTENTION TO UNTAPPED SEGMENT OF SENIOR CITIZENS:
CAN ESTABLISH PIZZA HUT SENIOR CLUBS WHICH WILL ORGANISE
ACTIVITIES FOR OLDIES. INNOVATION AND LAUNCH SOME PRODUCT
FOR SENIOR CITIZENS.
• CONTINUOUS INNOVATION IN PRODUCTS
• INNOVATION THROUGH CONSUMER FEEDBACKS AND REVIEWS AND
WHAT CHANGES THEY WANT TO SEE.

• LOCATION: THE MOST CRITICAL SUCCESS FACTOR FOR ANY
HOSPITALITY BUSINESS IS “LOCATION”. PIZZA HUT DOES NOT AIM TO
BE A PREMIUM BRAND WITH SELECTIVE DISTRIBUTION, INSTEAD IT
Pizza hut final ppt

More Related Content

What's hot

Pizza hut international business
Pizza hut international businessPizza hut international business
Pizza hut international businessMaswadi Bin Aziz
 
Pizza Hut Franchising - Yellow team
Pizza Hut Franchising - Yellow teamPizza Hut Franchising - Yellow team
Pizza Hut Franchising - Yellow teamNguyen Huyen Trang
 
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.Rajalaxmi Prakash
 
Pizza hut : Case Study
Pizza hut : Case StudyPizza hut : Case Study
Pizza hut : Case Studysumeet agarwal
 
Pizza Hut Karachi Pakistan Project Report
Pizza Hut Karachi Pakistan Project ReportPizza Hut Karachi Pakistan Project Report
Pizza Hut Karachi Pakistan Project ReportTariq Mehmood
 
Service Mix of Pizza Hut, Pakistan
Service Mix of Pizza Hut, PakistanService Mix of Pizza Hut, Pakistan
Service Mix of Pizza Hut, PakistanJunaid Inam
 
Final pizza hut 2010
Final pizza hut 2010Final pizza hut 2010
Final pizza hut 2010Quvol.com
 
Dominos marketing ppt
Dominos marketing pptDominos marketing ppt
Dominos marketing pptRADHIKA GUPTA
 
Domino’s Pizza - PPT
Domino’s Pizza - PPTDomino’s Pizza - PPT
Domino’s Pizza - PPTTaher S B
 
Mcdonalds presentation 130621085419-phpapp02
Mcdonalds presentation 130621085419-phpapp02Mcdonalds presentation 130621085419-phpapp02
Mcdonalds presentation 130621085419-phpapp02Muhammad Farhan Javed
 
Pizza hut by shovik sharma
Pizza hut by shovik sharmaPizza hut by shovik sharma
Pizza hut by shovik sharmaShovikSharma
 
Customer satisfaction towards domino's pizza
Customer satisfaction towards domino's pizzaCustomer satisfaction towards domino's pizza
Customer satisfaction towards domino's pizzausmankhankulkarni
 
PPT on Marketing Strategies of Domino's(Best Ever PPT)
PPT on Marketing Strategies of Domino's(Best Ever PPT)PPT on Marketing Strategies of Domino's(Best Ever PPT)
PPT on Marketing Strategies of Domino's(Best Ever PPT)Vibhor Agarwal
 
Pizza hut description and HR policies | project report of pizza hut
Pizza hut description and HR policies | project report of pizza hutPizza hut description and HR policies | project report of pizza hut
Pizza hut description and HR policies | project report of pizza hutMian Muhammad Zafar
 
pizza hut market analysis and consumer behaviour
pizza hut market analysis and consumer behaviourpizza hut market analysis and consumer behaviour
pizza hut market analysis and consumer behaviourkarishma chawla
 
Domino's V/s Pizza Hut
Domino's V/s Pizza HutDomino's V/s Pizza Hut
Domino's V/s Pizza HutGaurav Wadhwa
 
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI.
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI. SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI.
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI. Summaya Sharif
 

What's hot (20)

Pizza hut international business
Pizza hut international businessPizza hut international business
Pizza hut international business
 
Pizza Hut Franchising - Yellow team
Pizza Hut Franchising - Yellow teamPizza Hut Franchising - Yellow team
Pizza Hut Franchising - Yellow team
 
Pizza hut
Pizza hutPizza hut
Pizza hut
 
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.
A Comparative Study on Pizza Hut and Domino's; An innovative Health Restaurant.
 
Pizza hut : Case Study
Pizza hut : Case StudyPizza hut : Case Study
Pizza hut : Case Study
 
Pizza Hut Karachi Pakistan Project Report
Pizza Hut Karachi Pakistan Project ReportPizza Hut Karachi Pakistan Project Report
Pizza Hut Karachi Pakistan Project Report
 
pizza hut
pizza hutpizza hut
pizza hut
 
Service Mix of Pizza Hut, Pakistan
Service Mix of Pizza Hut, PakistanService Mix of Pizza Hut, Pakistan
Service Mix of Pizza Hut, Pakistan
 
Final pizza hut 2010
Final pizza hut 2010Final pizza hut 2010
Final pizza hut 2010
 
Dominos marketing ppt
Dominos marketing pptDominos marketing ppt
Dominos marketing ppt
 
Domino’s Pizza - PPT
Domino’s Pizza - PPTDomino’s Pizza - PPT
Domino’s Pizza - PPT
 
Mcdonalds presentation 130621085419-phpapp02
Mcdonalds presentation 130621085419-phpapp02Mcdonalds presentation 130621085419-phpapp02
Mcdonalds presentation 130621085419-phpapp02
 
Pizza hut by shovik sharma
Pizza hut by shovik sharmaPizza hut by shovik sharma
Pizza hut by shovik sharma
 
Customer satisfaction towards domino's pizza
Customer satisfaction towards domino's pizzaCustomer satisfaction towards domino's pizza
Customer satisfaction towards domino's pizza
 
PPT on Marketing Strategies of Domino's(Best Ever PPT)
PPT on Marketing Strategies of Domino's(Best Ever PPT)PPT on Marketing Strategies of Domino's(Best Ever PPT)
PPT on Marketing Strategies of Domino's(Best Ever PPT)
 
Pizza hut description and HR policies | project report of pizza hut
Pizza hut description and HR policies | project report of pizza hutPizza hut description and HR policies | project report of pizza hut
Pizza hut description and HR policies | project report of pizza hut
 
pizza hut market analysis and consumer behaviour
pizza hut market analysis and consumer behaviourpizza hut market analysis and consumer behaviour
pizza hut market analysis and consumer behaviour
 
Domino's V/s Pizza Hut
Domino's V/s Pizza HutDomino's V/s Pizza Hut
Domino's V/s Pizza Hut
 
Dominos vs pizza hut
Dominos vs pizza hutDominos vs pizza hut
Dominos vs pizza hut
 
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI.
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI. SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI.
SUPPLY CHAIN MANAGEMENT REPORT ON PIZZA HUT, KARACHI.
 

Viewers also liked

pizza-hut-operations-operations-management
 pizza-hut-operations-operations-management pizza-hut-operations-operations-management
pizza-hut-operations-operations-managementZahoor Soomro
 
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...Park Hae Ra
 
Pizza hut
Pizza hutPizza hut
Pizza hutanupam
 
A crime so monstrous
A crime so monstrousA crime so monstrous
A crime so monstrousMissing Link
 
Sample slides by Garr Reynolds
Sample slides by Garr ReynoldsSample slides by Garr Reynolds
Sample slides by Garr Reynoldsgarr
 
Eco-nomics, The hidden costs of consumption
Eco-nomics, The hidden costs of consumptionEco-nomics, The hidden costs of consumption
Eco-nomics, The hidden costs of consumptionJosh Beatty
 
Healthcare Napkins All
Healthcare Napkins AllHealthcare Napkins All
Healthcare Napkins AllDan Roam
 

Viewers also liked (14)

pizza-hut-operations-operations-management
 pizza-hut-operations-operations-management pizza-hut-operations-operations-management
pizza-hut-operations-operations-management
 
Pizza hut
Pizza hutPizza hut
Pizza hut
 
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...
CONTOH PBS Pengajian Perniagaann [Rancangan Perniagaan Produk Penjagaan Kulit...
 
Pizza hut
Pizza hutPizza hut
Pizza hut
 
Operations strategies of KFC
Operations strategies of KFCOperations strategies of KFC
Operations strategies of KFC
 
Pizza hut
Pizza hutPizza hut
Pizza hut
 
Why most presentations suck
Why most presentations suckWhy most presentations suck
Why most presentations suck
 
A crime so monstrous
A crime so monstrousA crime so monstrous
A crime so monstrous
 
Simplicity
SimplicitySimplicity
Simplicity
 
Sheltering Wings
Sheltering WingsSheltering Wings
Sheltering Wings
 
Feels Bad On The Back
Feels Bad On The BackFeels Bad On The Back
Feels Bad On The Back
 
Sample slides by Garr Reynolds
Sample slides by Garr ReynoldsSample slides by Garr Reynolds
Sample slides by Garr Reynolds
 
Eco-nomics, The hidden costs of consumption
Eco-nomics, The hidden costs of consumptionEco-nomics, The hidden costs of consumption
Eco-nomics, The hidden costs of consumption
 
Healthcare Napkins All
Healthcare Napkins AllHealthcare Napkins All
Healthcare Napkins All
 

Similar to Pizza hut final ppt

Domino's yogesh tanwar
Domino's yogesh tanwarDomino's yogesh tanwar
Domino's yogesh tanwarYogesh Tanwar
 
dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]Prathamesh Narkar
 
dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]Prathamesh Narkar
 
International environment final ppt ......
International environment final ppt ......International environment final ppt ......
International environment final ppt ......Manish Kumavat
 
dominos strategy for marketing,and food@
dominos strategy for marketing,and food@dominos strategy for marketing,and food@
dominos strategy for marketing,and food@gautamsehrawat3
 
(161092573) pizza hut kfc_cp(1)
(161092573) pizza hut kfc_cp(1)(161092573) pizza hut kfc_cp(1)
(161092573) pizza hut kfc_cp(1)biggi_123
 
Crm (2)
Crm (2)Crm (2)
Crm (2)min24
 
dominos vs pizza hut
dominos vs pizza hutdominos vs pizza hut
dominos vs pizza hutvivek shah
 
Team375_PizzaHut_PlansBook
Team375_PizzaHut_PlansBookTeam375_PizzaHut_PlansBook
Team375_PizzaHut_PlansBookJuan Pellerano
 
Hardees presentation
Hardees presentationHardees presentation
Hardees presentationTHE CREATORS
 
Marketing Project on PIZZA HUT
Marketing Project on PIZZA HUTMarketing Project on PIZZA HUT
Marketing Project on PIZZA HUTguest02319a9
 
Marketing Project PIZZA HUT
Marketing Project PIZZA HUTMarketing Project PIZZA HUT
Marketing Project PIZZA HUTsaurabh007in
 
Bar Promotion That Works Every Time!
Bar Promotion That Works Every Time!Bar Promotion That Works Every Time!
Bar Promotion That Works Every Time!Nick Fosberg
 
Dominoz and Pizza hut marketing mix
Dominoz and Pizza hut marketing mixDominoz and Pizza hut marketing mix
Dominoz and Pizza hut marketing mixPriyesh Neema
 

Similar to Pizza hut final ppt (20)

Gurbinder
GurbinderGurbinder
Gurbinder
 
Domino's yogesh tanwar
Domino's yogesh tanwarDomino's yogesh tanwar
Domino's yogesh tanwar
 
Mkt pizza hut
Mkt pizza hutMkt pizza hut
Mkt pizza hut
 
Pizza hut in Pakistan
Pizza hut in PakistanPizza hut in Pakistan
Pizza hut in Pakistan
 
dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]
 
dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]dominosvspizzahut.. [Autosaved]
dominosvspizzahut.. [Autosaved]
 
International environment final ppt ......
International environment final ppt ......International environment final ppt ......
International environment final ppt ......
 
dominos strategy for marketing,and food@
dominos strategy for marketing,and food@dominos strategy for marketing,and food@
dominos strategy for marketing,and food@
 
(161092573) pizza hut kfc_cp(1)
(161092573) pizza hut kfc_cp(1)(161092573) pizza hut kfc_cp(1)
(161092573) pizza hut kfc_cp(1)
 
Crm (2)
Crm (2)Crm (2)
Crm (2)
 
dominos vs pizza hut
dominos vs pizza hutdominos vs pizza hut
dominos vs pizza hut
 
Wipo smes sin_07_4
Wipo smes sin_07_4Wipo smes sin_07_4
Wipo smes sin_07_4
 
Team375_PizzaHut_PlansBook
Team375_PizzaHut_PlansBookTeam375_PizzaHut_PlansBook
Team375_PizzaHut_PlansBook
 
Hardees presentation
Hardees presentationHardees presentation
Hardees presentation
 
Marketing Project on PIZZA HUT
Marketing Project on PIZZA HUTMarketing Project on PIZZA HUT
Marketing Project on PIZZA HUT
 
Marketing Project PIZZA HUT
Marketing Project PIZZA HUTMarketing Project PIZZA HUT
Marketing Project PIZZA HUT
 
Dominos
DominosDominos
Dominos
 
Domino's report
Domino's reportDomino's report
Domino's report
 
Bar Promotion That Works Every Time!
Bar Promotion That Works Every Time!Bar Promotion That Works Every Time!
Bar Promotion That Works Every Time!
 
Dominoz and Pizza hut marketing mix
Dominoz and Pizza hut marketing mixDominoz and Pizza hut marketing mix
Dominoz and Pizza hut marketing mix
 

More from Wasim Akram

Mobile commerce.
Mobile commerce.Mobile commerce.
Mobile commerce.Wasim Akram
 
Mobile commerce
Mobile commerce Mobile commerce
Mobile commerce Wasim Akram
 
Organisational behaviour (group 2)
Organisational behaviour (group 2)Organisational behaviour (group 2)
Organisational behaviour (group 2)Wasim Akram
 
Impact of european union crisis on brazil
Impact of european union crisis on  brazilImpact of european union crisis on  brazil
Impact of european union crisis on brazilWasim Akram
 
Mahindra group sm final
Mahindra group  sm finalMahindra group  sm final
Mahindra group sm finalWasim Akram
 
Tata consultancy services final
Tata consultancy services finalTata consultancy services final
Tata consultancy services finalWasim Akram
 

More from Wasim Akram (9)

IBM server
IBM  serverIBM  server
IBM server
 
Mobile commerce.
Mobile commerce.Mobile commerce.
Mobile commerce.
 
Mobile commerce
Mobile commerce Mobile commerce
Mobile commerce
 
ONGC final ppt
ONGC final pptONGC final ppt
ONGC final ppt
 
Organisational behaviour (group 2)
Organisational behaviour (group 2)Organisational behaviour (group 2)
Organisational behaviour (group 2)
 
Ethical dilemma
Ethical dilemmaEthical dilemma
Ethical dilemma
 
Impact of european union crisis on brazil
Impact of european union crisis on  brazilImpact of european union crisis on  brazil
Impact of european union crisis on brazil
 
Mahindra group sm final
Mahindra group  sm finalMahindra group  sm final
Mahindra group sm final
 
Tata consultancy services final
Tata consultancy services finalTata consultancy services final
Tata consultancy services final
 

Recently uploaded

The Process of Google: A Journey through Innovation
The Process of Google: A Journey through InnovationThe Process of Google: A Journey through Innovation
The Process of Google: A Journey through Innovationgopzzzin
 
Understand the Key differences between SMO and SMM
Understand the Key differences between SMO and SMMUnderstand the Key differences between SMO and SMM
Understand the Key differences between SMO and SMMsearchextensionin
 
Master the art of Social Selling to increase sales by fostering relationships...
Master the art of Social Selling to increase sales by fostering relationships...Master the art of Social Selling to increase sales by fostering relationships...
Master the art of Social Selling to increase sales by fostering relationships...VereigenMedia1
 
Lesotho-Botswana Water Project Brand Manual developed with new logo
Lesotho-Botswana Water Project Brand Manual developed with  new logoLesotho-Botswana Water Project Brand Manual developed with  new logo
Lesotho-Botswana Water Project Brand Manual developed with new logonelaohaimbodi
 
Content Marketing: How To Find The True Value Of Your Marketing Funnel
Content Marketing: How To Find The True Value Of Your Marketing FunnelContent Marketing: How To Find The True Value Of Your Marketing Funnel
Content Marketing: How To Find The True Value Of Your Marketing FunnelSearch Engine Journal
 
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...Nugget Global
 
Navigating Global Markets and Strategies for Success
Navigating Global Markets and Strategies for SuccessNavigating Global Markets and Strategies for Success
Navigating Global Markets and Strategies for SuccessElizabeth Moore
 
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...Associazione Digital Days
 
Gen Z and Millennial Debit Card Use Survey.pdf
Gen Z and Millennial Debit Card Use Survey.pdfGen Z and Millennial Debit Card Use Survey.pdf
Gen Z and Millennial Debit Card Use Survey.pdfMedia Logic
 
2024 WTF - what's working in mobile user acquisition
2024 WTF - what's working in mobile user acquisition2024 WTF - what's working in mobile user acquisition
2024 WTF - what's working in mobile user acquisitionJohn Koetsier
 
History of JWT by The Knowledge Center.pdf
History of JWT by The Knowledge Center.pdfHistory of JWT by The Knowledge Center.pdf
History of JWT by The Knowledge Center.pdfwilliam charnock
 
Catálogo HYD 2024 gama completa Hydrapak
Catálogo HYD 2024 gama completa HydrapakCatálogo HYD 2024 gama completa Hydrapak
Catálogo HYD 2024 gama completa HydrapakEsteller
 
Professional Sales Representative by Sahil Srivastava.pptx
Professional Sales Representative by Sahil Srivastava.pptxProfessional Sales Representative by Sahil Srivastava.pptx
Professional Sales Representative by Sahil Srivastava.pptxSahil Srivastava
 
How To Become a Master In Search Engine Optimization (SEO)
How To Become a Master In Search Engine Optimization (SEO)How To Become a Master In Search Engine Optimization (SEO)
How To Become a Master In Search Engine Optimization (SEO)Blessings Ngalande
 
Digital Marketing complete introduction.
Digital Marketing complete introduction.Digital Marketing complete introduction.
Digital Marketing complete introduction.Kashish Bindra
 
The Ultimate Guide to Financial Advertising Strategies.pdf
The Ultimate Guide to Financial Advertising Strategies.pdfThe Ultimate Guide to Financial Advertising Strategies.pdf
The Ultimate Guide to Financial Advertising Strategies.pdfFinance Advertising Network
 
AMAZON Copywriting Portfolio by Cielo Evangelista
AMAZON Copywriting Portfolio by Cielo EvangelistaAMAZON Copywriting Portfolio by Cielo Evangelista
AMAZON Copywriting Portfolio by Cielo Evangelistacrevangelista
 
Exploring the Impact of Social Media Trends on Society.pdf
Exploring the Impact of Social Media Trends on Society.pdfExploring the Impact of Social Media Trends on Society.pdf
Exploring the Impact of Social Media Trends on Society.pdfolivalibereo
 
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...Social Samosa
 
TAM Sports IPL 17 Advertising Report- M01 - M23
TAM Sports IPL 17 Advertising Report- M01 - M23TAM Sports IPL 17 Advertising Report- M01 - M23
TAM Sports IPL 17 Advertising Report- M01 - M23Social Samosa
 

Recently uploaded (20)

The Process of Google: A Journey through Innovation
The Process of Google: A Journey through InnovationThe Process of Google: A Journey through Innovation
The Process of Google: A Journey through Innovation
 
Understand the Key differences between SMO and SMM
Understand the Key differences between SMO and SMMUnderstand the Key differences between SMO and SMM
Understand the Key differences between SMO and SMM
 
Master the art of Social Selling to increase sales by fostering relationships...
Master the art of Social Selling to increase sales by fostering relationships...Master the art of Social Selling to increase sales by fostering relationships...
Master the art of Social Selling to increase sales by fostering relationships...
 
Lesotho-Botswana Water Project Brand Manual developed with new logo
Lesotho-Botswana Water Project Brand Manual developed with  new logoLesotho-Botswana Water Project Brand Manual developed with  new logo
Lesotho-Botswana Water Project Brand Manual developed with new logo
 
Content Marketing: How To Find The True Value Of Your Marketing Funnel
Content Marketing: How To Find The True Value Of Your Marketing FunnelContent Marketing: How To Find The True Value Of Your Marketing Funnel
Content Marketing: How To Find The True Value Of Your Marketing Funnel
 
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...
Make Your Message Go Viral with Nugget Global's Press Release Distribution Se...
 
Navigating Global Markets and Strategies for Success
Navigating Global Markets and Strategies for SuccessNavigating Global Markets and Strategies for Success
Navigating Global Markets and Strategies for Success
 
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...
Francesco d’Angela, Service Designer di @HintoGroup- “Oltre la Frontiera Crea...
 
Gen Z and Millennial Debit Card Use Survey.pdf
Gen Z and Millennial Debit Card Use Survey.pdfGen Z and Millennial Debit Card Use Survey.pdf
Gen Z and Millennial Debit Card Use Survey.pdf
 
2024 WTF - what's working in mobile user acquisition
2024 WTF - what's working in mobile user acquisition2024 WTF - what's working in mobile user acquisition
2024 WTF - what's working in mobile user acquisition
 
History of JWT by The Knowledge Center.pdf
History of JWT by The Knowledge Center.pdfHistory of JWT by The Knowledge Center.pdf
History of JWT by The Knowledge Center.pdf
 
Catálogo HYD 2024 gama completa Hydrapak
Catálogo HYD 2024 gama completa HydrapakCatálogo HYD 2024 gama completa Hydrapak
Catálogo HYD 2024 gama completa Hydrapak
 
Professional Sales Representative by Sahil Srivastava.pptx
Professional Sales Representative by Sahil Srivastava.pptxProfessional Sales Representative by Sahil Srivastava.pptx
Professional Sales Representative by Sahil Srivastava.pptx
 
How To Become a Master In Search Engine Optimization (SEO)
How To Become a Master In Search Engine Optimization (SEO)How To Become a Master In Search Engine Optimization (SEO)
How To Become a Master In Search Engine Optimization (SEO)
 
Digital Marketing complete introduction.
Digital Marketing complete introduction.Digital Marketing complete introduction.
Digital Marketing complete introduction.
 
The Ultimate Guide to Financial Advertising Strategies.pdf
The Ultimate Guide to Financial Advertising Strategies.pdfThe Ultimate Guide to Financial Advertising Strategies.pdf
The Ultimate Guide to Financial Advertising Strategies.pdf
 
AMAZON Copywriting Portfolio by Cielo Evangelista
AMAZON Copywriting Portfolio by Cielo EvangelistaAMAZON Copywriting Portfolio by Cielo Evangelista
AMAZON Copywriting Portfolio by Cielo Evangelista
 
Exploring the Impact of Social Media Trends on Society.pdf
Exploring the Impact of Social Media Trends on Society.pdfExploring the Impact of Social Media Trends on Society.pdf
Exploring the Impact of Social Media Trends on Society.pdf
 
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...
TAM Sports-IPL 17 Advertising Report- M01 - M15.xlsx - IPL 17 FCT (Commercial...
 
TAM Sports IPL 17 Advertising Report- M01 - M23
TAM Sports IPL 17 Advertising Report- M01 - M23TAM Sports IPL 17 Advertising Report- M01 - M23
TAM Sports IPL 17 Advertising Report- M01 - M23
 

Pizza hut final ppt

  • 2. GENERAL INFORMATION • TYPE - PUBLIC • FOUNDED - WICHITA, KANSAS (1958) • LOCATION - DALLAS, TEXAS • KEY PEOPLE - DAN AND FRANK CARNEY (FOUNDERS) DAVID C. NOVAK (CEO) • INDUSTRY - FOOD WHOLESALE • PRODUCTS - PIZZA • EMPLOYEES - 250,000 (APPROX.) • WEBSITE - WWW.PIZZAHUT.COM
  • 3. PIZZA HUT STORY • 1958: THE LEGACY OF PIZZA HUT BEGAN, WHEN TWO COLLEGE-AGED BROTHERS FROM WHICHITA, KANSAS, FRANK AND DAN CARNEY OPENS FIRST PIZZA HUT RESTAURANT AFTER BORROWING $600 FROM THEIR MOTHER. • 1959: PIZZA HUT IS INCORPORATED IN KANSAS AND THE FIRST FRANCHISE UNIT OPENS IN TOPEKA, KANSAS. • 1968: INTERNATIONAL MARKET ENTERED WITH OPENING OF PIZZA HUT RESTAURANT IN CANADA. • 1969: RED ROOF ADOPTED FOR RESTAURANTS. • 1972: PIZZA HUT, INC. LISTED ON NEW YORK STOCK EXCHANGE UNDER THE SYMBOL PIZ. • 1977: PIZZA HUT, INC. STOCKHOLDERS OVERWHELMINGLY APPROVE MERGER WITH PEPSICO, INC. FOR AN UNDISCLOSED SUM.
  • 4. • 1986:DELIVERY SERVICE, AS A NEW CONCEPT, IS INITIATED • 1996: PIZZA HUT COMES TO INDIA WITH A DINE IN RESTAURANT BANGALORE THAT HAS SPECIAL VEGETARIAN PIZZAS. • 1997: PIZZA HUT OPENS A DINE-IN RESTAURANT IN DELHI. • 2007: PIZZA HUT BROUGHT OUT OUR THICK N THIN PIZZA AND BEGAN TO RE-FRANCHISE OUR DINE-IN RESTAURANTS. • 2009: PIZZA HUT OFFERING BAKED FILLINGS IN THE CORNER OF THE PIZZA
  • 5. OVERVIEW OF THE CASE • BY 1986, PIZZA HUT’S LEADERSHIP OF THE OVERALL PIZZA MARKET IS BEING CHALLENGED BY DOMINO’S, A DELIVERY-ONLY CHAIN. • THE DELIVERY SEGMENT ACCOUNTS FOR ONLY 20% OF THE $12.7 BILLION PIZZA MARKET, BUT IT IS GROWING RAPIDLY. • A CHANGE IN CONSUMER PREFERENCES HAS LED TO THE INCREASED PURCHASES IN THE DELIVERY SEGMENT. • AFTER YEARS OF RESISTING ENTRY INTO THE DELIVERY SEGMENT FOR FEAR OF CANNIBALIZING ITS EXISTING EAT-IN RESTAURANTS, PIZZA HUT HAS DECIDED IT IS NECESSARY TO MOVE INTO THE DELIVERY SEGMENT.
  • 6. STRENGTHS • IT IS THE MARKET LEADER IN PROVIDING DIFFERENT VARIETIES OF PIZZAS • SPECIALIZES ONLY IN PIZZAS • HAS FULL SERVICE RESTAURANT AS WELL AS DELIVERY SERVICES. • STRONG FRANCHISEE NETWORK WEAKNESS • HIGH OVERHEAD COSTS DUE TO LARGE NUMBER OF RESTAURANTS. • HIGH PRICE • INTERNAL CONFLICTS AMONG FRANCHISEES
  • 7. OPPORTUNITY • EXPANSION THROUGH ONLINE ORDERING SYSTEM. • INTRODUCTION OF MORE INNOVATIVE PIZZAS. • VENTURING INTO SENIOR CITIZENS MARKET. THREATS • THE DIFFERENTIATION STRATEGY FOLLOWED BY ANY PIZZA CHAIN IS SOONER OR LATER ADOPTED BY ALL PIZZA INDUSTRY PLAYERS. • MAIN THREAT FROM COMPETITORS: DOMINOS
  • 9. EXISTING RIVALRY • RIVALRY AMONG EXISTING PLAYERS • AT PRESENT THERE ARE 3 MAJOR PLAYERS IN US PIZZA MARKET MAINLY DOMINOS LITTLE CEASERS PIZZA HUT AND THE DEGREE OF RIVALRY IS VERY HIGH • THE REASON IS NUMBER OF COMPETITORS IS VERY LARGE INDUSTRY GROWTH IS HIGH AND FIXED COST INVOLVED IS HIGH
  • 10. THREAT OF NEW ENTRANTS SINCE INDUSTRY GROWTH IS HIGH IT ATTRACTS NEW POTENTIAL FIRMS TO ENTER INTO THE MARKET. HOWEVER, IF THE NEW ENTRANTS IS EXPERIENCED THEN IT WILL BE ABLE TO COMPETE WITH THE EXISTING PLAYERS ELSE THE ECONOMIES OF SCALE ENJOYED BY THE EXISTING PLAYERS WILL FORCE THE NEW ENTRANTS TO EXISTING MARKETS
  • 11. THREATS OF SUBSTITUTE THREATS FROM JUNK FOODS SUCH AS HOT DOGS, SANDWICHES AND BURGERS. THREATS OF BUYERS BARGAINING POWER FROM CUSTOMER OR BUYERS WHEN THERE ARE NUMBER OF SUPPLIERS OF BUYERS CONCENTRATION IS HIGH OR LARGE AVAILABILITY OF SUBSTITUTE GOODS
  • 12. THREATS OF SUPPLIERS BARGAINING POWER ALSO FROM SUPPLIERS WHEN THERE IS LARGE NUMBER OF BUYERS FROM THESE SUPPLIERS, HIGH CONCENTRATION OF SUPPLIERS, HIGH SWITCHING COSTS AND NON AVAILABILITY OF RAW MATERIAL SUBSTITUTES
  • 13. CONSUMER SEGMENTATION BY CHANNEL Eat-In Carryout Delivery Benefit Atmosphere, Quality Time Time factors Price Sensitivity Lowest Modest Highest Demographic Profile Non-families Families, timestarved Families, convenience
  • 14. COMPETITION FROM DOMINOS & LOCAL PLAYERS Units Average Delivery Check/Person($) PIZZA HUT System wide Sales ($ millions) 1934 5025 9.99 Separate delivery units plus franchisee add-on delivery out of restaurant DOMINO'S 1550 3696 9.5 Delivery only LITTLE CAESAR PIZZA INN 520 1308 2.75 No delivery 278.7 748 4.3 Separate delivery units GODFATHER'S 275 650 9.75 Add-on delivery out of restaurant ROUND TABLE PIZZA SHOWBIZ/CHU CK E. CHEESE 250 535 5 Add-on delivery out of restaurant 249 268 5.2 No delivery SHAKEY'S 197 386 4.25 Add-on delivery out of restaurant Mr. GATTI'S 139.2 319 7.81 Add-on delivery out of restaurant
  • 15. 1979 System net sales ($MM) 732 1980 832 1981 1007 1982 1170 1983 1394 1984 1556 1985 1743 1986 1934 Market share Units Company Franchise Total 14.9 15.7 17 17.2 18 17.3 16 15.4 1940 1801 3741 1888 1873 3761 1843 1922 3765 1845 1975 3820 1911 2095 4006 2051 2157 4208 2224 2309 4533 2534 2491 5025 196 221 267 306 348 372 395 282 400 289 Company PSA sales ($M) (Traditional) (Delivery) PSA sales growth Real Price Total Net sales($MM) Net sales growth (%) Total revenues ($MM) ROAE(%) Franchisees: PSA sales($M) -3.1 6.4 3.3 4.7 8.1 12.8 11.8 9 20.8 8 6.6 14.6 9.8 3.9 13.7 1.8 5.1 6.9 2 3.4 5.4 -2 0.8 -1.2 354 399 12.7 556 6.1 476 19.3 489 8.9 556 16.8 569 16.4 678 21.9 699 21.7 766 13 795 16.9 835 9 867 15 929 11.3 967 12.4 237 280 314 350 386 400 415 495 3.5
  • 16. REASONS WHY PIZZA HUT ADOPTED “FRANCHISING” AS THE ENTRY STRATEGY • BEST METHOD TO ESTABLISH OPERATIONS WITHOUT RISK OF OPERATIONS IN AN UNFAMILIAR MARKET. • FRANCHISING ROUTE HELPS IN LEARNING THE BUYER BEHAVIOUR , CONSUMER BEHAVIOUR & MARKET REALITIES. • IN COUNTRIES WHERE DIRECT FOREIGN INVESTMENT IS NOT ALLOWED , FRANCHISING IS THE EASIEST ROUTE TO ENTER IN THESE MARKETS.
  • 17. ISSUES IN THE CASE - 1 SHOULD PIZZA HUT ENTER THE DELIVERY SEGMENT OF THE PIZZA MARKET IN AN ATTEMPT TO COMBAT DOMINO’S GROWING POPULARITY AND MARKET SHARE FROM THIS SEGMENT? • YES IT SHOULD ENTER BECAUSE THE PIZZA DELIVERY MARKET IS AN ENTIRELY SEPARATE SEGMENT IN ITSELF. MOREOVER PIZZA HUT WOULD HAVE COMPETITIVE ADVANTAGE BECAUSE OF ITS BRAND NAME.
  • 18. KEY CONSTRAINTS • CANNIBALIZING • CONVINCING THE FRANCHISEE • SETTING UP THE INFRASTRUCTURE FOR DELIVERY SYSTEM. • COMPETITION FROM LOCAL PLAYERS.
  • 19. • IT DID NOT CANNIBALIZE THE DINE IN RESTAURANT AS BOTH HAVE ITS DIFFERENT MARKET SEGMENTS. • PIZZA HUT WAS ABLE TO CONVINCE THEIR FRANCHISEES AFTER SUCCESSFULLY PUTTING ACROSS THEIR POINT OF HIGH MARKET POTENTIAL IN THE PIZZA DELIVERY MARKET. • THEY BUILT A VERY ROBUST AND SUSTAINABLE DELIVERY MODEL. • THEY GAINED COMPETITIVE ADVANTAGE BECAUSE OF THE NEW CSC SYSTEM.
  • 20. ISSUES IN THE CASE - 2 IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE INTO THE DELIVERY SEGMENT OF THE PIZZA MARKET, WHAT OPERATIONAL APPROACH SHOULD THEY USE? APPROACHES TO BE FOLLOWED • ADOPTION OF CSC SYSTEM. • ADEQUATE MAN POWER, DELIVERY VEHICLES AND OTHER SUPPORTING INFRASTRUCTURES. • PROPER TRAINING OF SALES AND DELIVERY FORCE. • PROPER DEMARCATION AND PLANNING OF ZONES AND DELIVERY ROUTES.
  • 21. ISSUES IN THE CASE - 3 IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE INTO THE DELIVERY SEGMENT OF THE PIZZA MARKET, HOW DO THEY CONVINCE THEIR EXTENSIVE FRANCHISE SYSTEM TO PARTICIPATE WITH THEM? • INCENTIVIZE THE FRANCHISEE. • MAKE THE FRANCHISEE UNDERSTAND THE POTENTIAL OF DINE AT HOME.
  • 22. ISSUES IN THE CASE - 4 • IF PIZZA HUT DOES PURSUE THE OPPORTUNITY TO MOVE INTO THE DELIVERY SEGMENT OF THE PIZZA MARKET, WHAT WILL BE THE OVERALL EFFECTS ON THEIR EAT-IN RESTAURANT BUSINESS AND THEIR FRANCHISE RELATIONSHIPS? EFFECT ON EAT IN RESTAURANT
  • 23. EFFECT ON THE FRANCHISES IN THE BEGINNING THERE WAS RESISTANCE FOR THE ADOPTION OF THE NEW DELIVERY AND CSC SYSTEM BUT AFTER LEARNING THE ADVANTAGES OF THESE NEW STRATEGIES AND THE GROWTH POTENTIAL THAT IT WOULD BRING ALONG WITH IT, THEY ADOPTED THESE NEW CHANGES.
  • 24. RECOMMENDATION • HIGH QUALITY PERSONNEL: TOTAL COOPERATION OF ITS EMPLOYEE’S THEREBY INCREASING PRODUCTIVITY , BEATING COMPETITION AND ENHANCING CUSTOMER SATISFACTION. FOR THIS HIGH INCENTIVES SCHEMES MUST BE ESTABLISHED. • FOCUS ATTENTION TO UNTAPPED SEGMENT OF SENIOR CITIZENS: CAN ESTABLISH PIZZA HUT SENIOR CLUBS WHICH WILL ORGANISE ACTIVITIES FOR OLDIES. INNOVATION AND LAUNCH SOME PRODUCT FOR SENIOR CITIZENS. • CONTINUOUS INNOVATION IN PRODUCTS • INNOVATION THROUGH CONSUMER FEEDBACKS AND REVIEWS AND WHAT CHANGES THEY WANT TO SEE. • LOCATION: THE MOST CRITICAL SUCCESS FACTOR FOR ANY HOSPITALITY BUSINESS IS “LOCATION”. PIZZA HUT DOES NOT AIM TO BE A PREMIUM BRAND WITH SELECTIVE DISTRIBUTION, INSTEAD IT