Background of Pizza Hut
The legacy of Pizza Hut® began in 1958, when two college students from
Wichita, Kansas, Frank and Dan Carney, were approached by a family friend
with the idea of opening a pizza parlor. Although the concept was relatively new
to many Americans at that time, the brothers quickly saw the potential of this new
enterprise.
Over the past four decades the Pizza Hut has built a reputation for excellence
that has earned the respect of consumers and industry experts alike. Pizza Hut’s
products have been voted Number One in countless consumer surveys
nationwide.
Pizza Hut®, a division of Tricon Global Restaurants, Inc., has more than 7,200
units in the U.S. and 3,000 units in more than 86 other countries. Pizza Hut is
owned by Pepsi Internationals who also owns Tacobell and KFC.
Pizza Hut is commitment to quality, dedication to service and value & the
qualities of entrepreneurship, growth and leadership, which have characterized
its business through nearly four decades of success.
Tricon is the parent company to two other segment leaders, Taco Bell and KFC.
When combined with Pizza Hut, these organizations make up the world's largest
restaurant group, with almost twice as many units as McDonald's.
When it comes to leadership Pizza Hut has a proactive approach to product
development and marketing. The five major products, Pan Pizza, Thin 'N Crispy®
pizza, Hand-Tossed style pizza, Stuffed Crust Pizza and The Big New Yorker
Pizza are loved by millions around the world and have become the standard by
which all others are judged.
1
We are working together to run great restaurants in order to be the best at
making and serving the best pizza in America. That means we're willing and able
to go to any lengths to make our customer's experience with Pizza Hut® an
enjoyable one. And it means we strive to present the finest products the industry
has to offer, and to provide those products wherever and whenever people want
them. Pizza Hut is the only franchise to offer Home Delivery Services.
Yes, we've come a long way since that opening night back in 1958 when pizzas
were given away to generate interest in the fledgling business. And through the
strength of our heritage, our culture and our people, we look forward to even
more success in the years ahead.
2
Pizza Hut Year after Year
1958
The first Pizza Hut® restaurant opens in Wichita, Kansas, started by
two college-aged brothers who borrowed $600 from their mother.
1959
Pizza Hut is incorporated in Kansas and the first franchise unit opens
in Topeka, Kansas.
1965
"Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first
television commercial.
1967
World's largest pizza (six feet in diameter) is baked and served at the
grand opening of a Fort Worth, Texas Pizza Hut® restaurant.
1968
International market entered with opening of Pizza Hut restaurant in
Canada.
1969
Red roof adopted for restaurants.
1970
Sandwiches added to basic menu of Thin 'N Crispy® pizza, salad,
beer and soft drinks.
1971
Pizza Hut becomes the number one pizza restaurant chain in the world
in both sales and number of restaurants.
3
1972
Pizza Hut, Inc. listed on New York Stock Exchange under the symbol
PIZ.
1973
Pizza Hut restaurants open in Japan and England.
1975
Thick'n Chewy® pizza introduced.
1976
The 100th international Pizza Hut restaurant is opened in Australia,
while entire system reaches 2,000.
1984
There is more pizza locations than hamburger restaurants in US.
1984
Pizzerias account for 9.9% of all restaurants in the U.S.
1986
Delivery service, as a new concept, is initiated.
1988
Hand-Tossed Traditional Pizza is introduced throughout the system.
1989
The Pizza Hut Jobs Plus® program expands nationwide to employ
more than 10,000 individuals with physical and developmental
disabilities.
The Jobs Plus program is recognized as the largest corporate initiative
of its kind in the food service industry.
Pizza Hut opens its 1,000th international unit in Welland, Ontario,
Canada.
Pizza Hut now serves 54 countries.
1990
Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday,
about 7,000 pies a minute.
More than 4,000 Jobs Plus employees work for Pizza Hut
Personal Pan Pizza® becomes available at 1,000 Stop 'N Go
convenience stores.
4
1992
Pizza Hut provides 120,000 free meals to relief volunteers and those
who lost their homes.
Pizza boxes redesigned to save 275,000 trees a year.
1993
Pizza Hut introduces BIGFOOT™ Pizza -- two square feet of pizza cut
into 21 slices.
Pizza Hut leads the entire restaurant industry in growth and sets new
company records for sales and profits.
1995
Two Customer Satisfaction programs initiated: a 1-800 Customer
Satisfaction Hotline and a Customer Call-Back Program, which takes
the pulse of 50,000 customers per week.
1995
The Deliver Me Home™ program is created by Pizza Hut and the
National Center for Missing and Exploited Children and is tested at the
Dallas/Fort Worth International Airport to inform the community of an
important identification tool in helping to locate, identify and return
missing children to their families.
1995
Pizza Hut wins the 1995 "Choice of Chains" award for Best Pizza
Chain sponsored annually by Restaurants & Institutions magazine,
making Pizza Hut the "Best Pizza Chain" ten of the last eleven years.
1997
PepsiCo announces restaurant spin-off.
1998
Pizza Hut celebrates 40 years of making and serving great pizza.
5
PIZZA HUT IN PAKISTAN
Pizza Hut came to Pakistan in somewhat the same way it began in America, it
was Dan Carney who approached Manzar Riaz with proposition of bringing the
chain to Pakistan. Along with its flagship restaurant in Clifton it has three more
operational units functioning in Karachi, while one is functioning in Gulberg,
Lahore. It is called “RED ROOF”, with seating capacity of 350, which makes it the
largest in the sub-continent.
The sale of Clifton Pizza Hut is the highest in the Asia Pacific region with a daily
turnover of 1500 Pizza (Normal days) and a turnover of 1800 to 2000 Pizza / day
over the week end.
The vision is to have 30 units of Pizza hut in two major cities by the year 2000 i.e.
Karachi and Lahore. It must be mentioned that these 30 units of Pizza hut will
provide employment to 1870 people and contribute Rs. 150 million in the form of
duties and taxes to the exchequer.
Marketing Objectives
1. To able to capture the essence of success as a Global company.
2. To be the first choice for every Pizza occasion by always providing 100%
customer satisfaction.
3. To focus or unique selling proposition by providing the most irresistible
variety, quality taste, and service.
4. To capture 90% of relative market share by the end of year 2000.
6
Facts About Pizza Hut
1. Pizza Huts worldwide sales were approximately $10 billion.
2. Pizza Hut service more than 1.5 million pizzas every day to approximately 5
million customers worldwide.
3. Pizza Hut owns and operates more than half of its restaurant and delivery
units making Pizza Hut, inc. the largest company-owned restaurant chain in
the world.
4. The highest volume Pizza Hut restaurant in the world is in Moscow followed b
stores located in France, Hong Kong, Finland and the U.K.
5. Outside the US the country with the most Pizza Hut units is Australia (405)
followed by Canada (354) and the U.K. (326.
6. Pizza Hut delivery drivers range in age from 18 to 80 miles, and average 50
miles per driver per day to deliver Pizza Hut products. The mode of
transportation varies from country to country with motor scooters the most
common mode in Western Europe, the U.K. and the Asia Pacific Countries.
7. Pizza Hut uses 2.5 percent of all the milk produced in the US every year for
cheese. That cheese production requires a herd of 250,000 dairy cows
producing at full capacity 365 days a year.
8. Pizza Hut uses more than 50 million pounds of wheat representing the annual
yield from nearly 400,000 acres of wheat.
9. Pizza Hut uses more than 400 million pounds of tomatoes each year and 50
million pounds of pepperoni.
10. Approximately 50 percent of all Pizza Hut units outside the US are full service
restaurant. About 35 to 40 percent are delivery carry out units, and 10 t0 15
percent are express units or slide “windows”.
7
Product Situation
Pizza Hut opened its very first outlet in Karachi at Clifton on December 14, 1993
introducing the internationally recognized and well-accepted variety of Pizza as in
their original tastes. Pizza hut took great care, while remaining with the fact that
its wheat, cheese and pepperoni remain original while other ingredients available
in the local market come up to the manufacturers standards and consumers
expectations.
Target Market
The target market belongs to upper - upper and upper middle class who has a
definite taste for foreign foodstuff. Out of 140 million people, we are only
targeting 20% of the population. Right now they are targeting market, which is
1% of the total urban population. Anybody whose household income is over Rs.
100,000 is in the “A” category, Rs. 50,000 is “B” and “C” is Rs. 50,000. They are
right now catering to “A” and “B” market and they have not touched the entire
market.
They are also targeting kids, teenagers and students & are also trying to increase
their customer base.
8
Consumer Profile
DEMOGRAPHICS
The age group of our customers is family oriented i.e., the parlor offers a variety
that to the needs of the family as a whole.
INCOME
The income bracket includes Rs. 50,000 per month and above.
OCCUPATION
Professionals, Executives, House Wives, studying individuals.
PSYCHOGRAPHCS
ACTIVITIES
Actively participate in social welfare causes, business matters, and members of
socially elite clubs, annual family vacations.
LIFE STYLE
Encouraging eating habits towards foreign foodstuff, for instance, likely to use
cake mixes, imported cheese.
MEDIA HABITS
Regular readers of Newspapers and Magazines.
PERSONALITY
Quality food conscious, outgoing and healthy eating habits health conscious
people.
9
Marketing Mix
PRODUCT
Pizza Hut offers aims in providing 100% customer satisfaction by excellence in
the product, service, equipment and hospitality they offer the products quality and
taste remains standard of excellence all over the world.
It has maintain its quality by importing the main ingredients and keeping the
recipes the same exclusively, for the South Asia regions it test launched spicy
flavored Chicken Tikka. Followed by a Seek Kabab Pizza, which gained and
remained so popular that they were included in the regular menu.
To make a check of its service and customers satisfaction, they issue a comment
card to make sure they come up to their customer’s satisfaction.
MARKET GROWTH MATRIX
MARKET SHARE
HIGH
HIGH
MARKET
GROWTH
RATE
Star
LOW
?
Bar B Q Beef
Supper Supreme
LOW
Cash Cow
Chicken Tikka
Dogs
Sea Faer
10
PRICE
They are serving various variety of Pizzas, there menu card along with their
respective prices have been placed at the appendix section.
PROMOTION
Pizza Hut runs more or less the same type of promotion and advertising
campaigns in Pakistan as it does internationally, with the exception of electronic
media. It uses advertising tools such as newspapers, magazines to create
awareness and to get its message through its required target market. Recently
they are doing joint promotion with Milo and Pepsi in connection with World Cup
Cricket 1999.
Pizza Hut promotion budget remains the same world wide except for a few
countries i.e., it allocates 50% of its promotion budget on national advertising and
50% of the budget to regional advertising.
With regard to promotion, they have launched kid Klub for children under 12 year
of age. Every Tuesday is kids night for members where they get 50% discount on
their order. They are trying to start a program called book it, to promote reading
habits among kids. Any child who reads a book and get it signs by his teacher
that he has read it get a free Pizza.
Pizza Hut has adapted to promotional and advertising techniques regarding the
local market. It uses Newspaper and Magazines according to their availability
and effectiveness with regard to their respective target market.
11
PLACE
KARACHI
At present there are four functioning units of Pizza Hut in Karachi.
Clifton
Takeaway, Dine-in seating capacity of 200
Tariq Road
Takeaway, Dine-in seating capacity of 250
Gulshan
Takeaway, dine-in seating capacity of 120
I.I. Chundrigar
Take away with dine-in seating capacity of 50.
LAHORE
At present there are two functioning units in Lahore.
Gulburg
Takeaway, Dine-in seating capacity of 350 Red Roof
Mall
Takeaway, Dine-in seating capacity of 200
12
Mission Statement
We at Pizza Hut are committed to provide high quality of Pizza and exceed
the expectation through our passion for service, quality and value. We
believe that our prime responsibility is to serve our families who get
satisfaction from our product and services. Our product line consist from
various pizzas to sandwiches, pasta and deals to suit every customer.
We are known for consistency in providing the very best quality in facilities
and products, and for friendly personal and efficient, comfortable service
which gives the natural warm welcome and relaxed, comfortable ambience
of Pizza Hut.
We are dedicated to the total success of Pizza business as a worldwide
competitor. We are concern for its operation and are dedicated to its total
success and prosperity.
Pizza Hut is regarded as an industry leader for the innovation in each
discipline in the business, blending effectively the finest tradition of our
profession with progressive management philosophy and this is ultimately
our major competitive advantage.
Out team is seen as highly aggressive, competitive, and regarded by our
customer as reliable helpful and resourceful. Through open two-way
communication employees share the companies objective and strive to
provide complete satisfaction to our valuable customer.
13
Vision Statement
Pizza Hut aims to succeed in one of the most logistically complex service
business. It is our intention to not only serve our customers with genuine
care and comfort, but to fulfill all their needs and give them complete
service excellence all the time, every time. Every employee is committed
to the ultimate dream and vision: 100% customer satisfaction and
retention.
We will continuously improve our product and services. Simply defined,
we empowers all Pizza Hut employees to “move heaven and earth” to
give instant pacification. Our customer’s expectations will not simply be
met; they will be exceeded to give each guest a “memorable visit”
“We Serve But We Are Not Servants
We Are Ladies And Gentlemen Serving Ladies And Gentlemen”
14
Code of Ethics
We are committed to the highest ethical standard. This responsibility is because our
customer, family and communities rely on each other which enhance the level of trust
and this can only be build on honesty and dedication.
We believe that our first responsibility is to satisfy our customer who takes advantage
from our services. It is our duty to serve them with honestly. We will promise only what
we can deliver.
Our business associate must know, that we will be fair and just. Our decision will be
based on factors such as quality, service, and reliability. We want our customer to be
proud of our character as individuals in the business we do. We look forward for a
friendly and caring relationship between our customer and ourselves.
We take pride in the quality of our collective effort at Pizza Hut. We are proud that
Pizza Hut has got the human resource that can face any challenge, because a
company is only depended on what their employees do for their organization.
We will justify with everybody, to whom we are in contact, whether employees or
customers – in assigning responsibilities, awarding incentives, and we will consider
every body. We will not entertain any unfair practices, which could harm our
organization prestige
We will establish the empire of friendship and trust between our employees and
customers, so that they could be benefited and achieve instant satisfaction.
15
External Factor Evaluation Matrix
Key External Factors
Weights
Ratings
Weighted
Average
OPPORTUNITIES
1. There is a strong untapped market
across Pakistan for the introduction
of Pizzas.
2. Consumption pattern is more in
Karachi.
3. “Eating out” is the main source of
entertainment in Pakistan.
4. Pizza Hut has an opportunity to
target new segments of class “C”
customer base as they are currently
targeting “A” and “B” class
customers i.e. income groups of
50,000 & above respectively.
5. Cost could be reduced by the
utilization of local flour.
6. There is a rising trend of consuming
pizza.
0.15
4
0.60
0.08
3
0.24
0.10
4
0.40
0.07
4
0.28
0.14
3
0.42
0.06
2
0.12
1. Unstable economic, legal and
political environment.
2. Increase in tax rates, which has a
direct impact on the cost of pizza.
3. High duties on imported ingredients.
0.12
4
0.48
0.10
2
0.20
0.09
3
0.27
4. Attractive market for new entrants.
0.04
2
0.08
5. Pizza Hut’s main competitor is Pizza
Express, who is providing best
service to its customers.
6. Another major directs competitor is
Domino Pizza.
0.03
1
0.03
0.02
1
0.02
TOTAL
1.00
Threats
3.14
16
Internal Factor Evaluation Matrix
Key Internal Factors
Weights
Ratings
Weighted
4
0.16
Average
Strengths
1. Pizza Hut is the pioneer in Pizza
business in Pakistan.
0.04
2. Popular brand name.
0.10
4
0.4
3. Pizza Hut follows strict quality
control system.
4. Sales are growing at the rate of 4%
annually.
5. Pizza Hut introduces new menu
according to local taste buds and
monitor new trends regularly.
6. Pizza Hut follows open door policy.
0.07
4
0.28
0.10
4
0.40
0.12
4
0.48
0.04
3
0.12
7. They maintain inventory up to the
extent of 60%.
8. Pizza Hut home delivery service.
0.04
3
0.12
0.08
4
0.32
1. Lack of finances for implementing
new strategies.
2. Shift in Strategic Management.
0.05
2
0.10
0.06
1
0.06
3. Flour, which is the main raw material
for pizza is imported, which
increases the cost of pizza.
4. Cannibalization
of
sales
by
introduction of new branches.
5. Introduction of I.I. Chundrigar branch
was a wrong decision and Pizza Hut
has only been able to break even
their cost.
6. Pizza Hut is unable to retain the
customer base in Lahore.
0.10
2
0.20
0.04
2
0.08
0.09
1
0.09
0.06
2
0.12
TOTAL
1.00
Weaknesses
2 .93
17
ANALYSIS
External Factor Evaluation (EFE) Matrix:
The total weighted score of 3.14 indicates that Pizza Hut is well above average
and close to superior position in its effort to pursue strategies that capitalize on
external opportunities and avoid threats.
Internal Factor Evaluation (IFE) Matrix:
The total weighted score of 2.93 indicates that Pizza Hut is above average in its
overall internal strategic position.
18
19
THE STRATEGIC POSITION AND ACTION EVALUATION
(SPACE) MATRIX
FINANCIAL STRENGTH
RATING
Debt to equity ratio is 58:42, which shows its financial strengths
5
EBIT is 8%
4
Pizza Hut’s market share is 55% leading to high sales revenue
6
Liquidity ratio is 1:1 which is the norm in the industry
2
TOTAL
17
FINANCIAL STRENGTH AVERAGE
INDUSTRY STRENGTH
4.25
RATING
High growth potential
6
High profit potential
5
Resource utilization is excellent
5
TOTAL
INDUSTRY STRENGTHS AVERAGE (16/3)
16
5.33
20
ENVIRONMENTAL STABILITY
RATING
Dwindling Pakistan economy & high rate of inflation are norms of
the industries
-6
Demand is not price sensitive/elastic
group is concern.
-1
as far as middle income
High entry barriers because Rs 50 to Rs. 55 million is needed for
fixed costs and initial operations.
-3
Low demand variability
-2
TOTAL
-12
ENVIRONMENTAL STABILITY (-12/4)
COMPETITIVE ADVANTAGE
-3
RATING
Highest market share due to early due to early market penetration
-1
Strict quality control system
-2
Strong customer base and high customer loyalty
-1
Technological edge our competitors
-4
TOTAL
-8
COMPETITIVE ADVANTAGE (-8/4)
-2
21
RESULT
ES AVERAGE
-3
IS AVERAGE
5.33
CA AVERAGE
-2
FS AVERAGE
4.25
Directional Vector Coordinates:
Conservative
x – axis : CA + IS
-2 + (+5.33)
3.33
y – axis : ES + FS
-3 + (+4.25)
1.25
Aggressive
+6
+5
+4
+3
+2
+1
-6
–5 – 4
–3
–2
–1
-1
+1
+2
+3
+4
+5
+6
-2
-3
-4
Defensive
-5
Competitive
-6
22
INTERPRETATION
This space matrix suggest that the firm’s industry situation is excellent for growth
opportunities but it has to improve upon its financial strength, it has to build its
internal strength to take advantage of the excellent external position.
Pizza Hut can pursue the following strategies:
1. Integration
2. Intensive
3. Diversification
These strategies have been explained in “The Quantitative Strategic Planning
Matrix (QSPM)”.
23
QSPM Model
Critical Success Factors
Backward
Market
Concentric
Integration
Development
Diversification
STRENGTHS
WEIGHTS
AS
TAS
AS
TAS
AS
TAS
1. Pizza Hut are the pioneers in
Pizza business in Pakistan.
2. Popular brand name.
3. Pizza Hut follows strict quality
control system.
4. Sales are growing at the rate of
4% annually.
5. Pizza Hut introduces new menu
according to local taste buds and
monitor new trends regularly
6. Pizza Hut follows open door
policy.
0.04
2
0.08
4
0.16
3
0.12
0.10
0.07
2
4
0.2
0.28
4
3
0.4
0.21
3
4
0.3
0.28
0.10
3
0.3
3
0.3
3
0.3
0.12
3
0.36
4
0.48
4
0.48
0.04
1
0.04
1
0.04
1
0.04
7. They maintain inventory upto the
extent of 60%.
0.04
4
0.16
4
0.16
2
0.08
8. Pizza Hut home delivery service.
0.08
3
0.24
4
0.32
3
0.24
1. Lack of finances for implementing
new strategies.
0.05
2
0.1
2
0.1
2
0.1
2. Shift in Strategic Management.
0.06
-
-
3
0.18
3
0.18
3. Flour, which is the main raw
material for pizza is imported,
which increases the cost of pizza.
0.10
4
0.4
3
0.3
-
4. Cannibalization of sales
introduction of new branches.
by
0.04
1
0.04
2
0.08
4
0.16
5. Introduction of I.I. Chundrigar
branch was a wrong decision and
Pizza Hut has only been able to
break even their cost.
0.09
-
-
4
0.36
3
0.27
6.
0.06
2
0.12
3
0.18
3
0.18
Weaknesses
Pizza Hut is unable to retain the
customer base in Lahore.
24
Backward
Critical Success Factors
Integration
New Market
Development
Concentric
Diversification
OPPORTUNITIES
WEIGHTS
AS
TAS
AS
TAS
AS
TAS
1. There is a strong untapped
market across Pakistan for the
introduction of Pizzas.
2. Consumption pattern is more in
Karachi.
3. “Eating out” is the main source
of entertainment in Pakistan.
4. Pizza Hut has an opportunity to
target new segments of class “C”
customer base as they are
currently targeting “A” and “B”
class customers i.e. income
groups of 50,000 & above
respectively.
5. Cost could be reduced by the
utilization of local flour.
6. There is a rising trend of
consuming pizza
0.15
3
0.45
4
0.6
1
0.15
0.08
3
0.24
4
0.32
3
0.24
0.10
2
0.2
4
0.4
4
0.4
0.07
3
0.21
4
0.28
3
0.21
0.14
4
0.56
2
0.28
-
-
0.06
3
0.18
4
0.24
3
0.18
1. Unstable economic, legal and
political environment.
0.12
3
0.36
1
0.12
1
0.12
2. Increase in tax rates, which has a
direct impact on the cost of pizza.
0.10
3
0.3
2
0.2
1
0.1
3.
0.09
4
0.36
2
0.18
2
0.18
new
0.04
3
0.12
4
0.16
3
0.12
5. Pizza Hut’s main competitor is
Pizza Express, who is providing
best service to its customers.
0.03
3
0.09
3
0.09
2
0.06
6. Pizza Hut’s main competitor is
Pizza Express, who is providing
best service to its customers.
0.02
1
0.02
3
0.06
2
0.04
TOTAL
2
THREATS
High duties on imported
ingredients.
4. Attractive
entrants.
market
for
5.41
6.44
4.53
25
Reason for considering corporate strategy
In the implementation stage of strategic management process, we have
designed TOWS and SPACE Matrix for Pizza Hut, and the strategic
thereby suggested were those of:
 Intensive
 Integration, and
 Diversification.
Keeping in view these strategies and the results generated thereby in the
input stages of strategic management process as depicted in the iFEM and
EFEM matrix suggest that the firm is relatively week because of the
financial position where as EFE Matrix suggests that the firm is taking
advantage of strong environment stability and marketing condition.
In the QSPM model, we have deigned 3 strategies and these are as
follows:
 Backward Integration
 New Market Development
 Concentric Diversification
The 3 strategies thus considered have been given ratings from 1 to 4 and
the SWOT has been taken from the EFE Matrix and EFE Matrix along with
their weights.
26
REASON / JUSTIFICATION OF STRATEGIES DESIGNED
1. Backward Integration
The reason for designing and considering backward integration was
the fact that the costs of producing Pizzas have
been rising
consistently since past few years, due to the exchange rate
fluctuation etc, and the fact that Pizza Hut Does not Hedge have a
direct impact on the costs of raw material and the most important
being flour. Therefore, the company can pursue the strategy of
backward integration and procure local flour of consistent high quality
which will not only reduce the costs of producing pizza but will also
increase its profit margin. Plus the supply of four will be in their own
hands and will not fact problems of under or oversupply of flour.
2. Marketing Development
Pizza Hut is currently pursuing marketing penetration strategy where as
we have designed new market development strategy along with the
currently used market penetration.
The reason being that there is a wide, untapped market in Pakistan
where Pizza Hut can open its branches and reap the benefits of 1 st. entry
in those markets.
27
3. Concentric Diversification
We have designed a concentric diversification strategy which can be
considered by Pizza Hut. It can concentrate its business by opening a
Coffee shop or a dessert parlors separately as departments in the Pizza
Hut and offer special delicacies for each department. This will improve its
financial strengths and profits margin considerably.
28
RECOMMENDATIONS
The QSPM total averae of the 3 strategies thus designed were:
STRATEGIES
AVERAGE
ATTRACTIVE SCORE
Backward Integration
5.41
Market Development
6.44
Concentric Diversification
4.53
Due to the low financial condition of Pizza Hut and internal problems whereas,
excellent market condition with developing tastes and preference for Pizzas, it is
highly recommended that Pizza Hut must pursue New Market Development
Strategy.
ADVANTAGE
The Advantages of pursuing New Marketing Development Strategy are as follow:
1. Ist. to enter in the new market, therefore no competition, so Pizza hut can
reep the gains of 1st. to enter.
2. Strong Brand Name.
3. Innovations in menu will attract new consumers.
4. Eating out is the main source of entertainment in Pakistan, therefore
consumer’s will be attracted towards the introduction of Pizza Hut across
Pakistan.
5. Most importantly the food industry is attractive for the entrants, so, Pizza Hut
will reap huge benefits out of pursuing this strategy.
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CONCLUSION
PIZZA HUT, is the world’s renounced chain of fast food stores and our project
was based on its strategic management position keeping in new the internal and
external environment.
In the process of analyzing Pizza Hut we have deduced that it is the most
popular international franchise in Pakistan, with the largest market share in the
Pizza industry.
There is no major competitor of Pizza Hut and the market opportunities are
excellent in teems of growth and profits.
Pizza Hut has an opportunity to strengthen its business by adopting various
strategies e.g. Backward integration, and New market development.
Pizza Hut has to strengthen its financial position either by increasing its equity or
debt or both which will improve its internal position.
To conclude, we can say that Pizza Hut has a history of producing quality food
with growth as an integral part built into its root strategies.
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