Background

The world-renowned Pizza chain, globally known as Pizza Hut, was initiated in the year 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. Pizza Hut Inc., commonly referred to simply as Pizza Hut, is an American restaurant chain and international franchise that offers a variety of delicious Pizzas alongside other mouth-watering menu items including a wide range of Starters, Soups & Salads, Pastas, Sandwiches, Desserts and Beverages. Pizza Hut is a subsidiary of Yum! Brands, Inc. There are more than 6,000 Pizza Hut restaurants in the United States, and another 5,600+ store located in 94 other countries across the world.
Pizza Hut Pakistan

Pizza Hut initiated its operations in Pakistan with its first restaurant way back in 1993. The journey that started then continues to this day, as the chain consists of over 40 outlets spread all across Pakistan, and is arguably the largest restaurant chain in Pakistan. Karachi the business hub of the nation also serves as the most populous consumer focal point for Pizza Hut in Pakistan. The Clifton outlet of Pizza Hut has won numerous regional rewards for exceptionally high sales volumes, thanks to the loyalty of Our Customers. The team at Pizza Hut has launched various amazing flavors and toppings during our time here, in addition to our beloved and timeless classics, and continually strives to deliver new and ever-better tastes. The critically acclaimed topping, Chicken Tikka, which has swept the world since its creation, was introduced for the first time in Pakistan. Our Customers prefer us because of our innovative products and concepts, and the consistently high level of service, quality and standards that we set and meet every day. This is the mantra we uphold in all our restaurants, touching the lives of hundreds and thousands on a daily basis.
Pizza Hut Mission Statement

We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!
We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.
Core Values: P.E.A.R.L.S

Have a PASSION for excellence in everything we do. EXECUTE with positive energy and urgency. Be individually and collectively ACCOUNTABLE for growth in people, customer satisfaction and profitability. Find reasons to RECOGNIZE the achievement of others and have fun doing it. LISTEN and more importantly, respond to the voice of the customer.

Think SAFETY first.

SWOT Analysis
Strength

Pizza Hut is providing good taste, quality products, good atmosphere and hygienic environment. They are providing free home delivery service. They are ISO certificated They are specialized in pizzas They have a full restaurant service and as well as delivery services.
Weakness Pizza Hut has higher overhead cost due to the restaurant that other competitors dont have to deal with. Pizza Hut charge higher prices. They are providing less range of products comparatively with high prices.

It gives less parking facilities, its advertisements are very less and it is working less for social welfare.
Opportunities

Pizza Hut can come up with the new products considering the Eastern taste of the people

They can reduce their prices because of more resources.

Diversification of new products can increase their market shares. Threads McDonalds low price Other local restaurants can affect their market share by providing pizzas with lower price

Market segmentation
Geographic

Pakistans g e o g r a p h i c s e g m e n t a t i o n i s t h e d e v e l o p e d c i t i e s P i z z a H u t i s available in Lahore, Karachi, Islamabad, Faisalabad, Hyderabad, Multan, Peshawar, Sialkot, and Rawalpindi. We can observe that pizza hut is available on all provincial capitals of Pakistan. Demographic:
. Pizza Huts general market segment is younger generation. But t h e y go wide in this thing. They segment high incomes and

business class families which can spend money on the best pizzas i n t h e m a r k e t . P i z z a H u t s g l o b a l s l o g a n i s a l s o d e s c r i b i n g i t s market segmentation that is Now its time to eat more. But in Pakistan, the slogan is Share the good times. Main age group is 1 2 - 3 0 y e a r s . P i z z a H u t P a k i s t a n offers halal food to all its customers. Psychographic: P i z z a H u t s p s y c h o g r a p h i c s e g m e n t a t i o n i n c l u d e s p e o p l e w i t h havi ng good attitude about food sense especially pizza group and they want to have a good time with their friends and famil y as described in pizza hut Pakistan slogan. It serves all types of personalities as they dont have any product for specific personality.

Behavioural:
Pizza Huts behavioural segment is the class where people love to spend money on eating. Thats why in Pakistan, Pizza Hut M.M A l a m R o a d L a h o r e i s t h e s e c o n d l a r g e s t o u t l e t o f t h e p i z z a h u t outlets generating more than $150,000 a month Market Target Pizza hut targeted market defines them as a family product. They dont really straight market their customers. Middle class and high class family background people are the target people are the target market of pizza hut. Pizza Hut is targeting their customers by two types. Dine In T k A ay ae w Dine in Is for those who love to have good times with their friends and age fellows and some families Take away Is for those who dont have reach to any Pizza Hut outlet and they want pizza hut products. They can give the order on phone and may have their pizza at their home within 30 min.

Positioning
Worldwide and in Pakistan, Pizza Hut has come to become synonymous with the 'best pizzas under one roof'. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer. Pizza hut is committed to providing uncompromising product quality and giving services that is warm and friendly. Pizza hut arrange birthday parties and private parties.

4PS Product

Product refers to the actual program you are planning. The goal of pizza hut is to develop the best product with the resources available. Pizza Hut sells pizzas in four different sizes: personal (an individual serving), small, medium and large, though most stores have done away from with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker crust than most other commercially available pizzas .so their products have help them to retain their customers and to increase them .they provide their customers with complete nutrition plan and healthy food is guaranteed. The nutrition plan also clearly tells diabetes patients can use what range of food at pizza hut. Over weight patients are also satisfied and the pizza with less cholesterol can be ordered. This encourages the customers to visit pizza hut rather than going elsewhere. As pizza hut has to boost its sales in the existing markets, so they the new food products are introduced in all branches line-byline because all branches are operated in co-operation with one another. Different products for different regions are also developed as there are choice differences. Pizza hut offers a long list of products and never afraid to offer new products like in Peshawar according to market they introduce the very first "Chapli Kabab Pizza" which was very healthy product by Pizza hut in this region. There are a lot many products according to different geographical places. Like in India they have got there vegetable pizzas, which has a large market there BUT not the Cow Meat Pizza

Price
First, this pricing strategy will help segment the market. Different groups of customers are willing to pay different prices for the same product. The high/low pricing strategy will also create excitement. The pricing strategy adopted by Pizza Hut is 'market skimming'. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This product will emphasize product and service quality

Promotion
The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behaviour of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market. They are using billboards on main stream places to get there customer. They are also distributing door to door brochures to capture more and more customers .Pizza huts also using marketing techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts try's to attract the younger generation as their main market segment. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines .Advertising camping will creates awareness of the products in our target markets

Place

Pizza hut have 34000 outlets in 100 countries .In Pakistan there are 40 outlets in 10 famous cities, they opened there outlets in shopping malls.

McDonalds Background
Back in 1954, a man named Ray Kroc discovered a small burger restaurant in California, and wrote the first page of our history. From that humble start as a small restaurant, were proud to have become one of the worlds leading food service retailers, with more than 33,000 restaurants serving nearly 68 million people in more than 119 countries every day.

McDonalds Pakistan
McDonalds is the largest and best known global food services retailer with more than 30,000 restaurants in 121 countries. Our outstanding brand recognition, experienced management, high-quality food, site development expertise, advanced operational systems and unique global infrastructure ensure a position that enables us to capitalize on global opportunities. We plan to expand our leadership position through great tasting food, superior service, everyday value and convenience. McDonalds Pakistan is part of the Lakson Group of Companies, a leading business house in Pakistan. McDonalds first restaurant opened in Pakistan in Sep1998 in Lahore.

McDonalds Mission Statement McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."
SWOT Analysis

Strength
McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. The McDonalds brand offers consumers choice, reasonable value and great service Loyal staff and strong management team successful advertisement (Im loving it) Very strong brand name clean environment and play ground for kids

Weakness
Many other similar competitors

 Unhealthy food image

Advertisement techniques that target children Until recently, had very few options for eating healthy

Opportunities
Introduction of healthy hamburger Low cost Added internet access It introduce new salads and fruit and Yoghurt parfait

Threads
Fast food industry is increasing More heath conscious consumers Recession or down turn in economy

Market segmentation Geographic

InP a k i s t a n , o n g e o g r a p h i c b a s e s m a r k e t e r s h a v e t a r g e t e d b i g c i t i e s . A s inL a h o r e , K a r a c h i , I s l a m a b a d , R a w a l p i n d i , M u l t a n e t c . T h e t a s t e a n d q u a l i t y i s according to the people of region in which it is offered. They have more then one outlet in single city, like in Lahore. People of different areas in a city can get the same quality and price from different sales outlets.

Psychographics
The offerings are according to the lifestyle and social classes of people. Like in Lahore, there is trend of eating out, so it is best match for their style. There is wide band of their loyal customers

Demographics
The deals offer in McDonald are according to normal family size of four or five, it is economically reasonable for upper middle class and also for upper class families. Besides these deals it also offers different meals fit for youngsters, students, for small parties and celebrations

Market Target
McDonald's target market is every segment of the demography. These segments of the demography are; family life-cycles, gender, age, Nationality, Income, Generation, Race etc .McDonald's has based its segmentation on demographic variables (this is why demographic forces are so important to monitor). Most of the segments McDonald's targets are brokendown into age and lifestyle stage; this is probably because they are easily identifiable and consumer needs and wants vary closely with demographic variables. McDonald's primary target markets are seniors, adults and teenagers, but the most heavily targeted segment is children

Positioning In Pakistan positioning of McDonalds has been directed as a family restaurant. Then they started positioning according to the kids as well by introducing new advertising of toys with their products such as Happy meals. McDonalds 4Ps Product Product Line Pricing
Their Value Meals fall into the category of Product Line Pricing

Promotional Pricing
McDonalds always offer some sort of promotional pricing.

Penetration Pricing
Marketing campaign in order to gain some market share in the industry

Value Pricing
This approach is used where external factors Such as recession or increased competition force companies to provide 'value' products And services to retain sales.

Place
There are total 24 outlets of McDonalds in Pakistan, and they all are located in famous areas. So far McDonalds is only in Karachi, Hyderabad, Lahore, Faisalabad, Rawalpindi and Islamabad In future, very soon planning to expand in many cities in Pakistan.

Promotion
At Mc Donalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos. In fact, the various economy meals and value meals also signal to the customer that buying separate items results in greater value for money for the customer.

References

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