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Pizza Hut: Retail Marketing Applications

Pizza Hut is the world's largest pizza chain with over 6000 restaurants globally. It targets families, young professionals and students aged 18-55 with busy lifestyles. Pizza Hut differentiates through product attributes like hot pizza and uses a high-low pricing strategy, advertising across TV, radio and online to drive sales.

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Amit Gupta
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39 views

Pizza Hut: Retail Marketing Applications

Pizza Hut is the world's largest pizza chain with over 6000 restaurants globally. It targets families, young professionals and students aged 18-55 with busy lifestyles. Pizza Hut differentiates through product attributes like hot pizza and uses a high-low pricing strategy, advertising across TV, radio and online to drive sales.

Uploaded by

Amit Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Pizza Hut

Retail Marketing
Applications
Retailing
The business activity that involved in selling
goods or services directly to final consumers
mostly for their personal use

Retailer :

A business whose sales come primarily from


retailing
Selected Retailer :

Pizza Hut

* Restaurant Industry
* World largest American Restaurant
Chain
* Franchise Organization
6000 Restaurants in US
5139 store locations in 94 countries
Pizza Hut - Self Selection Retailer
 Customers can select the item
 With the assistance of the employees
- Availability
- Price

 Competitors: Dominos, Pizza & Pasta


Segmentation
• Pizza hut has used certain demographic factors.
Such as,
 Age – ex : children, teenagers, adults.
 Family size – : family is having children, college students,
young professionals.
 Income – : low income, middle income and high income
families.
• And also psychological factors such as lifestyle of
the market.
 Ex : whether the customers are having busy life style or
not.
Target markets
• They are targeting the following market
segments.
 Males and females 18 to 55
 Families with young children, college students, and young
professionals
 Middle and high income families
 Consumers with busy lifestyles are more likely to be heavy
users of quick service products
Positioning
• Steps in positioning
Identify possible differences/ competitive
advantage of Pizza Hut.
Choosing right differences of Pizza Hut
Communicate and delivering chosen competitive
advantage
Differentiation
• Step 1 - Identify possible differences/ competitive
advantage to Pizza Hut
product and services differentiation
level of services/ channel differentiation
• Step 2 - Choosing right differences of Pizza Hut
 Product differentiation is very easy to differentiate by using product
attributes of Pizza Hut because competitors are not offering same
product with a same quality.
 Other competitors are doing services same as Pizza Hut like home
delivery and help to customers to select a suitable products for their
requirements.
 Therefore product attribute (Hot Pizza) is a main consideration to
position the Pizza huts’ products in the target consumers mind.
• Step 3 - Communicate and delivering chosen
competitive advantage
Marketing mix
• Product
Product Positioning of Pizza Hut - Pizza Hut has always
followed “Single brand positioning” called “PIZZAS”.
Product Scope of Pizza Hut - Pizza Hut follows a “multiple
product strategy” as pizza hut not only sell pizzas, but also deals in a
variety of other product. Such as appetizers, beverages, desserts,
pasta
Product Design of Pizza Hut - Pizza Hut follows the strategy
of selling standardized products with modifications. Pizza Hut mainly
sells 4 types of pizzas with 3 sizes, namely small, Regular and Large.
Those are Pan Pizzas, Stuffed Crust Pizzas, Sausage Crust Pizzas, Thin
Crust Pizzas
• Price
 Pizza Hut follows “A High/Low Pricing”(“Price Skimming”)
strategy as far as its new product are concerned where it
fixes the price higher than its competitors and then
gradually lowers the price below the competitor’s prices.
 The high/low pricing strategy has several advantages for
Pizza Hut.
 Used to create excitement
 Set high price initially to send a signal that its products are best in
quality and service offered in excellent.
 Helps in segmenting the market as Pizza Hut can sell “the extreme
pizza” to the customers who wish to pay higher price as well as to
the bargain hunters too.
 Sometimes in face of competition either from pizza
players or from its substitutes, Pizza Hut has also reduced
price by maintaining the same level of customer service
and quality.
Consumer promotions
Advertising
•Television
•Radio
•News papers
•Internet
Internet selling and tele selling

Direct marketing
Locations
Thank you !

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