Advertising Article Summary

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Article Summary #1

Title of Article: Pizza Hut Cuts Prices Again to Counteract the Slow Recovery Author: Stuart Elliott
Publication: The New York Times
Date of publication: August 18, 2010
Page Number: B8

Summary:
Pizza Hut is part of Yum Brands. “Every pizza price slashed,” is one of the new mottos Pizza Hut is using. After Pizza Hut started their promotional price cuts, the business saw an increase in revenues. Compared to 2009, Pizza Hut’s revenues rose six to seven percent in the first quarter and ten percent in the second quarter of 2010. Since the first promotion was such a big hit, Pizza Hut is going to continue the campaign by introducing the new everyday low prices.

The price changes at Pizza Hut are revealing how marketers are scrambling to address changing consumer behavior as the economy remains slow-moving. Many marketers believed that soon they would be able to stop running price-oriented advertisements or at least run fewer of them but this has proven to not be true since the economy is still not where it should be. In September, Pizza Hut is planning on introducing another brand campaign that will have the theme, “Your favorites. Your Pizza Hut.” Pizza Hut will also be adding new pizzas as well as pastas to the menu.

Mr. Niccol, chief marketing officer at Pizza Hut, said in an interview, “We want to build loyalty beyond the price.” This is something that Pizza Hut stands for. Pizza Hut wants to keep introducing new things to the menu but keep the same great pizza taste the business has always been known for.

Connection:
This article relates to our Advertising and Promotion class because it is all about advertising. The article was located in the Media and Advertising section of The New York Times. In class we learned that advertising helps a business achieve its marketing goals. In the Pizza Hut article it talked about how advertising lower prices actually made the business more money.

We also talked about the risk/reward...
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