Pizza Hut vs Mcdonalds

Topics: Pizza Hut, Pizza, McDonald's Pages: 7 (2039 words) Published: March 16, 2009
PIZZA HUT IN INDIA
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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, they opened the first UK restaurant and since then they have become the biggest Pizza Company on the planet. Today Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries.Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Today Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkatta, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country. Pizza Hut holds the record for the world’s largest pizza (six feet in diameter), which was baked and served at the grand opening of a Fort Worth, Texas Pizza Hut restaurant. Pizza Hut is fun, friendly and familiar '' it gives a sense of belonging, of comfort and an experience that allows friends and families to share a good time

MARKETING STRATEGIES OF PIZZA HUT IN INDIA
• Offering value food
Employing economies of scale, Pizza Hut has made its offerings more affordable. Its delivery offer of US$ 4.4 for four personal pan pizzas has been very successful, helping it grows the business by 25 per cent. They have recently introduced a range of vegetarian personal pan pizzas for US$ 1.1. Most Pizza Hut restaurants are located in the metros and smaller metros. In taking long strides across the country, Pizza Hut is consolidating its position by opening more restaurants in the metros where it already has a presence as well as opening outlets in new markets.

• Moving beyond metros
According to company sources, Pizza Hut is moving beyond the metros and foraying into 12 to 13 new markets including Trichy Nagpur Bhubhaneswar, Thiruvananthapuram and Pondicherry to increase penetration. Aggressive marketing and tie-ups with local and popular brands Pizza Hut has increased its visibility by launching a well-received TV campaign aimed at the young crowd. It has formed partnerships with recognized brands such as Nestle and Pepsi. It also holds regular promotional campaigns targeted at children and uses these alliances to offer packages during these campaigns.

• Developing the local supply chain
The local supply chain for Pizza Hut was developed by Yum! and currently 95 per cent of the ingredients they use are locally produced. They now import very few specialty items like pepperoni.

• International brand with an Indian heart
Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community, whose members prefer not to eat at places where meat is served.

• Offering more than the international menu
International food chains typically offer only a few localized products in other parts of the world. However, Pizza Hut’s local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavors. Th Tandoori range of pizzas, which was developed locally, has a menu mix of over 20 per cent.

• Indigenous sourcing of raw materials
Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a local company Dynamix Dairy Industries Ltd...
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