Service Marketing-Pizza Hut

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[PIZZA HUT: AN ANALYSIS OF SERVICES]

Submitted to: Prof. K.C. Prakash Submitted By: Pallavi (07BS2758)


Table of Contents

Company Profile ……………………………………………………………………….02 Industry profile…………………………………………………………………………10 Major competitors profile……………………………………………………….……13 Literature review……………………………………………………………………….20 Marketing Mix Analysis………………………………………………………………..23 Marketing Mix Of Competitors……………………………………………………….29 Pizza Hut Competitive Advantage……………………………………………………32 Restaurant Management/ job description…………………………………………39 Present promotion and Pricing strategies…………………………………………41 Trend Spotting…………………………………………………………………………..43 Government Regulations in Fast Food Industry…………………………………...45 Existing Marketing Strategies………………………………………………………….51 Recommendations……………………………………………………………………..55

Company profile

Company History: Pizza Hut Inc
Incorporated:1959
Pizza Hut Inc. is the largest pizza restaurant company in the world in terms of both the number of outlets and the percentage of market share that it holds. A subsidiary of PepsiCo, Inc., the company oversees more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide. In October 1997, the company expected to become a subsidiary of Tricon Global Restaurants, Inc., formed from the spin-off of PepsiCo's restaurant holdings. Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. When a friend suggested opening a pizza parlor--then a rarity--they agreed that the idea could prove successful, and they borrowed $600 from their mother to start a business with partner John Bender. Renting a small building at 503 South Bluff in downtown Wichita and purchasing secondhand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut restaurant; on opening night, they gave pizza away to encourage community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick Hassur opened the first franchise unit in Topeka, Kansas. In the early 1960s Pizza Hut grew on the strength of aggressive marketing of the pizza restaurant idea. In 1962, the Carney brothers bought out the interest held by Bender, and Robert Chisholm joined the company as treasurer. In 1966, when the number of

Pizza Hut franchise units had grown to 145, a home office was established to coordinate the businesses from Wichita. Two years later, the first Pizza Hut franchise was opened in Canada. This was followed by the establishment of the International Pizza Hut Franchise Holders Association (IPHFHA). It aimed at acquiring 40 percent of the company's franchise operations, or 120 stores, and adding them to the six outlets wholly owned by Pizza Hut. The acquisitions, however, brought turmoil to the chain. Varied accounting systems used by the previous franchise owners had to be merged into one operating system, a process that took eight months to complete. In the meantime, sales flattened and profits tumbled. In early 1970 Frank Carney decided that the company practice of relying on statistics from its annual report to inform its business strategy was inadequate, and that a more developed, long-term business plan was necessary. The turning point occurred when Pizza Hut went public and began growing at an unprecedented pace. Pizza Hut's corporate strategy, arrived at after much consultation and boardroom debate, emerged in 1972.The corporate strategy's first priority was increasing sales and profits for the chain. Continuing to build a strong financial base for the company to provide adequate financing for growth was the second priority. The strategy also called for adding new restaurants to the chain in emerging and growing markets. In 1970 Pizza Hut opened units in Munich, Germany, and...
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