Global marketing

Final Project

:Done by
Mohammad Awji
Nouf El Sabbagh
Ayman Hallal
Sara Khamis
Moufid Assi
Submitted to: Dr. Rifaat Abdullah

Spring: 2009-2010
 OUTLINE
I. Introduction about Pizza Hut
A. Type of industry
B. Size of the business
C. Historical information about Pizza Hut
1. Market Share
2. Profits
3. Turnover Rate
4. Suppliers, Customers & Competitors
II. Problem & Purpose of the Research 
III. Exploratory Research(Identify the Problem)
IV. Research Methods
A. Sample Selection
B. Sample Size
C. Data Gathering Techniques
D. Materials & Procedures Used
E. Statistical Data & Test

 Summary of data Collected, Statistical Analyze & Conclusion

 Appendixes, Tables & Figures

I. Introduction about Pizza Hut

Pizza Hut is the largest pizzaBackground restaurant company in the world based in Addison, Texas,
USA specializing in employing more it has 34,000 outlets in 100 countries American- style pizza
than 300,000 people
 Our story began with one smallHistory restaurant and two young brothers - Dan and Frank Carney.
In 1958 they were struck by inspiration, and opened the first Pizza Hut in Wichita, Kansas, USA.
Borrowing $600 from their mother, they purchased some second-hand equipment. When they were
setting up, they only had room for 25 seats - and the restaurant sign only had space for nine letters.
They wanted 'Pizza' in the name, which left space for just 3 more letters. Because the building looked
like a hut, Pizza Hut was born.

October 1997, Family ties Transformation Phase 1977 Pizza Hut was acquired off the restaurant
businesses (PizzaPepsiCo spun Hut, KFC and Taco Bell) by one of the true giants of international
business:  Tricon officially became YUM! Tricon was founded. May 16, 2002 PepsiCo, Inc. Pizza
Hut shared its Brands with the addition of two leadership position with such new brands, Long John
Silver's fine products as Pepsi-Cola and A&W YUM! Brands are now the parent Lay brand
snackbrand soft drinks and Frito- foods. Company of Pizza Hut, Taco Bell, KFC, A&W and Long John
Silver's

PerishKey characteristics of Pizza Hut service  Hot and on time ability: Service cannot be stored
for later sale or use To achieveStrive to present the products when and where the customer wants
this goal developed a number of services through the years like Personal Pan Pizza, we made quick,
affordable pizza a lunch alternative for millions of Provide a pleasant environment and that’s where the
role of staffAmericans. Attitude and communication are so important in conveying the quality of
service

Delivery on time or free nextMode of operation Refined our carryout procedures to provide faster,
more Take away time Rapidly expanded our delivery operations throughout theefficient service
Implementing combination operations with our sister companies Tacocountry Bell and KFC, we're
reaching thousands of new customers while providing unprecedented speed and fast food pricing.

Pizza Hut has a type of Hospitality Industry

In 1958, Frank and Dan Camey were students at Wichita State University, in Witchita, Kansas, USA,
Dan, at 25, were completing his Masters in Business Administration and Frank, 19 and an
undergraduate, was considering a career in Electrical Engineering.
Landlady wanted a nice neighborhood business in her building. Having read an article on the growing
popularity of pizza in the Saturday Evening Post, she approached Dan and Frank with the idea of
opening a pizza restaurant in her building.
Frank and Dan borrowed US$600 from their mother and opened the first Pizza Hut restaurant on 15
June 1958. By September, the restaurant was earning a gross income of US$700 to US$800 a week
and by December over $1,800 a week. Another two restaurants soon followed.
The Cameys' vision and drive developed a brand that has become a worldwide success.

1959:
Franchising begins in 1959 when Dick Hassur, manager of a Pizza Hut restaurant, signs the first
franchise agreement and opens the first franchised restaurant, in Topeka, Kansas. The agreement
gives him the right to use Pizza Hut's registered trademark, its secret recipes, and to receive
management assistance from the Cameys, all for fee.
1969:
First Pizza Hut opens in Canada.
Red roof adopted for restaurants.
First Pizza Hut opens in Mexico, in Guadalajara.
1970:
First Pizza Hut opens in Australia.
Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number of
restaurants.
1972:
Pizza Hut Inc. listed on the New York Stock Exchange.
Pizza Hut opens 1,000th restaurant, in Wichita, Kansas.
Pizza Hut restaurants open in Japan and England.
1975:
Pizza Hut opens 2,000th restaurant, in independence, Missouri, USSA.
Pepsi Co. buys the Pizza Hut chain. With the support of Pepsi Co, Pizza Hut begins to embark on a
worldwide expansion plan.
3,000th restaurant opens in Arlington, Texas, USA.
1980:
Pan pizza introduced throughout the system.
Number of restaurants climbs to 4,000.
Pizza Hut enters the home delivery, counter service, and pizza by the slice markets.
1986:
Restaurant number 5,000 opens, in Dallas, Texas.
Pizza Hut celebrates 30th anniversary with more than 6,000 units worldwide.
1991:
Pizza Hut makes one of its most historic deliveries – to Russian President Boris Yeltsin and his
supporters, who prevail over an attempted political coup. When food supplies dwindle in the Russian
Parliament Building, Yeltsin calls Pizza Hut delivery.
1997:
10,000th restaurant opens in Sao Paulo, Brazil.
Pizza Hut relocates headquarters to Dallas, Texas.
Tricon Global Restaurants and Tricon Restaurants International (TRI) founded on October 7th.
A market study is required to identify the best areas to install the delivery units.
The Finance Department will carry out its study to know the cost of the investment and its possible
profitability as well.
The number of franchises who had introduced delivery was growing rapidly and many franchisees that
had introduced delivery were doing significantly better than the company-owned stores. Eighteen
franchisees opened 65 delivery - only units in 1986, bringing the overall to 96. I think that that if it is
possible to install carryout facilities, the business’ volume could increase in a favourable way.
As I mentioned in previous lines, Pizza Hut must strongly work to develop a new products designed
especially for delivery. This would involve an entirely different production process than that used
currently in the traditional restaurants.

Who is the real market? If we were going to market a candy bar, who is our market? A candy bar is a
snack, source of energy, a reward to kids, in some cases a substitute for a meal. Some chocolates are
advertised as fat free. Candy could be a health food. As a result it can be positioned in many different
ways in many different markets. This first step is to find all the possible needs your business, product,
or service fills.
Who are the real competitors? Who are the real competitors of McDonalds? Burger King and
Wendy's of course, but what about Pizza Hut, Arby's, Dairy Queen, Subway? Other hamburger places
are direct competitors and other types of foods could be considered secondary competitors.
McDonald's recently tried, unsuccessfully, to introduce us to adult foods with their Arch Deluxe
sandwich line. Trying to move away from what and who you are is never a good idea.

How do consumers evaluate their options? Once you know this, positioning is a simple process.
Customers who have problems are looking for products and services that will fill their needs. How they
evaluate you and your competition is the real key to positioning.

How are your competitors perceived in the marketplace? Kraft Foods is a good example here.
They are primarily known for cheese but try to enter other markets. For example: Jams and Jellies.
Number one brand, Smuckers -- Not Kraft. Mayonnaise. Number one brand, Hellman's - Not Kraft.
Their best brand, 80% of the market, Philadelphia Cream Cheese. They have done an excellent job of
positioning their cream cheese. They are perceived as the best in this category.

Where are the gaps? The Sharper Image catalog came along in the late 70's - early 80's featuring
upscale, trendy, expensive gift ideas primarily for men in executive positions. This was truly a gap that
was not being filled by other merchants.

Plan your work and work your plan. Once the position is decided upon, every piece of literature,
every TV ad, newspaper, whatever must reinforce that position in the mind of the consumer. Tell them
where it is, how much it is, why it’s worth the price, and how to get it.

Watch what happens. Evaluate the positioning plan and get feedback as often as possible from as
many sources as possible. Monitor and adjust as needed as the market changes.

The following: Pizza home delivery and growth into new markets.

After an initial rejection by the franchisees, the number of them which had introduced delivery was
growing rapidly and were doing significantly better than the company owned stores. It was a fiercely
competitive environment in the delivery service markets (Domino's, Pantera, Little Caesar, Godfathers,
Pizza Inn, etc.) But looking at the files in Exhibit 1, we can assert that it is it the leader in Top Pizza
Chain and that the positive difference which exists with Domino's will increase in the next years. We
cannot forget that in 1990 the sales of the delivery segment (the most important new fast food
concept) was U.S. Dollar 21.9 billion. Kaufmann (1993)

In my opinion, Pizza Hut can readily grow in other markets because it has a very good organisation
and it has solid market share. Despite it having slightly fallen in 1984,1985 and 1986, it still has quite a
good market share implying that people buy Pizza Hut's products simply because they like its
products.

But Pizza Hut cannot stop looking after its customer's satisfaction. Consumer research has shown that
the standard Pizza Hut pizza served in the traditional restaurants was not as well-suitable to the
delivery environment, causing quality to suffer. Pizza Hut research and development managers were
confident that they could solve the problem by developing a new product designed especially for
delivery. This would involve an entirely different production process than that used currently in the
traditional restaurants.
In the same way that Pizza Hut management intended to pursue vigorously the "exciting opportunities
afforded by our new segment of delivery", after the right marketing studies, they can try to diversify
growth because it allows Pizza Hut to make better and wider use of their management, technical and
financial resources.

One of the strengths of Pizza Hut has been to be a division of PepsiCo since 1977 and now an
integral part of Tricon. It is the world's largest pizza restaurant as outlined above. It has a good
reputation and a good branding. It can raise the profile of the company to gain the ability to sell at
higher price, to recognise its products through the corporate image and to launch new products more
easily. However, Pizza Hut has a good franchising development that has risen rapidly since its
foundation in 1958 by Dan and Frank Carney. In 1986, 135 individuals, partnerships and/or
corporations operated 2,395 Pizza Hut systems restaurants and 96 delivery-only units. Source: Pizza
Hut Website (1998)

II. Problem & Purpose of the Research

We can define through this research the percentage of persons who make delivery according to their
ages. Consequently; we either follow up the delivery as it is, or after the adjustment due to the
stooping of the cost percentage.

Pizza Hut's problem is the complex computer systems.

The complex computer system was contracted to develop delivery pizza service because Pizza Hut
management was convinced that the installation of this system was essential to the delivery strategy
and would be a significant competitive advantage (the cost of co-ordination and management of such
centralized ordering system at Domino's would be prohibitive because about 70% of Domino’s
franchisees are owned by only one store).

This system allowed the customers in a particular market to call a single number to place in order. The
caller first was asked his or her phone number and the system ascertained whether the caller had
ordered. The operator would verify the caller's name and address and ask if the customer would like
the same type of pizza previously ordered. The order would then be forwarded automatically to the
appropriate delivery unit where a terminal would receive the order information.

One major issue presented in developing a profitable delivery concept was whether there would be a
charge for service taking into account that, for competitive reasons, the Company could not charge for
delivery. The solution to this problem was that the size and the price of delivered pizzas would be
slightly increased over pizzas in traditional restaurants. Customers would pay approximately 10%
more for a small, medium or large pizza but would get more as well.

In my interview I asked the manager some questions such as:

a) Who are your direct competitors?

- The most indirect competitor is the KFC and there is no direct competitor.
b) Who are your customers?
- The families in general.
c) What do you do to have continual improvement?
- Customer satisfaction, listens to his complaint, and deliver special price offer.
d) How do you measure customer satisfaction?
Inside the restaurant there are two ways:

- Continual check up on the costumer.

- Complaint card on the tables.
Outside the restaurant there are two ways:

- The employee who delivers the pizza asked about if they are satisfied with the speed of the
deliver.
- Call back: the next day they will call back the customer if he has any remarks.

III. Exploratory Research(Identify the Problem)

We have achieved the following statistics to discover the percentage of the persons who make
delivery based on their ages.
We use the following technique to solve the problem
1. Age: 10-20
20-30
 30-40
40-50
50 and above
2. Gender: Male-Female
3. Weight: 40-60
60-80
80-100
100 and above
4. Vegetarian: Yes-No
5. Living near Pizza Hut: Yes-No
6. Average Income in $: 400-600
600-900
900-1200
1200 and above
7. Members of Family: 1-3
3-6
6 and above
8. Prefer: house cooking-restaurant cooking
9. Prefer: Delivery-nondelivery
10. Number of PH branches: increase-stay as it

Now the following table that we discover

Age Number Delivery No delivery % Delivery %No delivery

10-20 20 3 17 15% 85%
20-30 20 9 11 45% 55%
30-40 20 13 7 65% 35%
40-50 20 14 6 70% 30%
50 and above 20 10 10 50% 50%
Sum 100 49 51 49% 51%

IV. Research Methods

∑ni xi
M=---------------
N
2.45*49
M=---------------=1.2 of delivery
100

2.55*51
M=----------------=1.3 of no delivery

100

1. Age: 10-20 (20)

20-30 (20)
30-40 (20)
40-50 (20)
50 and above (20)
2. Gender: Male-Female (55) male (45) female
3. Weight: 40-60 (15)
60-80 (40)
80-100 (35)
100 and above (10)
4. Vegetarian: Yes-No (35) yes (65) no
5. Living near Pizza Hut: Yes-No (30) yes (70) no
6. Average Income in $: 400-600 (40)
600-900 (35)
900-1200 (20)
1200 and above (5)
7. Members of Family: 1-3 (22)
3-6 (61)
6 and above (17)
8. Prefer: house cooking-restaurant cooking (65) hc (35) rc
9. Prefer: Delivery-no delivery (49) d (51) no d
10. Number of PH branches: increase-stay as it (38) inc (62) stay

V. Summary of data Collected, Statistical Analyze & Conclusion

Today, Pizza Hut is the largest and best pizza distribution system in the world, with more than 10,000
locations around the globe, in over 90 countries and territories. The company employs more than
240,000 people worldwide.

Pizza Hut serves more than 1.7 million pizzas every day, to approximately 4 million customers
worldwide. The highest volume Pizza Hut in the world is in Moscow, with average daily sales of over
US$6,500.
Pizza delivery, grouped with taxi-driving by the Bureau of Labor Statistics, is ranked as the fifth most
dangerous occupation category in the United States

Among the several hazards common to both made-to-order food delivery professionals and taxi
drivers, the most frequent danger by far is armed robbery and the possibility of serious injury or death
implicit in such encounters.

On March 28, 2008 James William Spiers, a delivery driver for a Pizza Hut restaurant in Des Moines,
Iowa became the victim of an attempted robbery during a late-night delivery. Held up at gunpoint and
fearing for his life, Spears produced his own firearm and shot his assailant several times, although not
fatally. Police charged Spears' attacker and another individual in connection with the crime and
Spears, thankful to be alive, was cleared of any wrongdoing.

Following the incident Spears was immediately placed on suspension by his employer, and three
weeks later was fired from his job at Pizza Hut

A statement from the company revealed that its decision regarding the matter was not case-specific to
Spears' ordeal. Vonnie Walbert, VP of human resources at Pizza Hut explained “We have a policy
against carrying weapons. We prohibit employees from carrying guns because we believe that that is
the safest for everybody."

Pizza Hut is not alone in this practice. Other large chains maintain similar policies concerning the carry
of concealed weapons by delivery persons.

- Due to my field work we have discover that this company uses the vertical system.
- During the training each employee is trained to do several tasks while when he gets the job his
job becomes specific.
- The process of repairing the special recipe no one knows about it.
- In case of misunderstanding with the customer they are ready to adapt with customer
complains in order to have customer satisfaction.
- In pizza Hut there is a competitive environment when every person cares about himself.
- Each year the plan changes due to market demand which is made in the main branch.
We have concluded that the Pizza Hut uses the mechanical system paradigm.

The marketing objectives can be achieved through different ways. One of them can be creating
internal campaigns or contests with attractive prizes to achieve the established objectives. In July
1997, Pizza Hut organised a " Serving Up a Million" contest. It was an eight-week long contest among
all Company-owned Pizza Hut stores across the country and the Odessa restaurant outperformed
more than 4,000 company-owned Pizza Huts in U.S.A. The Pizza Hut manager and his staff received
a check for U.S. dollar 100.000. Pizza Hut Website (1998).

Another way could be signing agreements with leading corporations or chains which are operating in
the same or in complementary markets such as the agreement signed in 11 February 1997 by Pizza
Hut and Hilton Hotels. The objective was to offer hot, tasty Pizza Hut pizzas at select Hilton Hotels and
resorts across the United States "To provide travellers with the same food and service that they
received at their hometown "Pizza Hut" said Pat Williams, President of PepsiCo Express Restaurant.
In my opinion, Pizza Hut can improve its sales percentage and its profit by opening more delivery units
with carryout facilities in strategic places carefully chosen. In comparison with the traditional
restaurants, the delivery-units required an estimated U.S. Dollar 128,500 to 198,500. By contrast with
the company-owned delivery units, the franchisee investing in delivery-units typically did not buy
vehicles and did not always adopt the company's computer-ordering system. The cost of sales would
be lower in the Delivery units due a combination of upsizing and higher prices for order. However, the
carryout segment is the segment with a greater percentage of sales. The number of staff required for
its functioning should be smaller as well. "When we introduce delivery to a market, we get the
business of customers who probably were ordering a competitors pizza simply for the convenience of
home delivery" said a senior Pizza Hut manager.

Pizza Hut should continue to offer a high quality product with higher price

Pizza Hut could revise all its unnecessary expenses increasing the advertising promotion in local
radios and T.V. and more publicity.

In the same way, another marketing strategy could be to start or increase the number of mailings to
send homes. The Marketing Department will establish which areas and the frequency with which to
send it.

It could be very useful for Pizza Hut to edit a monthly "Pizza Hut Magazine" which will include news of
the Restaurants and delivery units either Company-owned and franchisees, customers letters, games
with prices, promotions of the month, etc.

In my opinion with the creation of discount cards for loyal customers, it is possible to obtain from them
"total " fidelity to Pizza Hut with free advertising ("word of mouth")

Another strategy could be to pay more attention to the senior citizen segment, because its number is
steadily increasing and they have more buying power as well. They could join the "Pizza Hut Senior
Club" specially created for them. This Club could organise activities, holidays in attractive places in
States or abroad in collaboration with Hilton Hotels, organised monthly meetings, etc. However, Pizza
Hut in collaboration with the Nutrition Department of a famous American University can launch special
menus for them which a perfect balance between health (no fat, no cholesterol, etc.) and taste.

Perhaps these menus would be suitable also to vegetarian people. This strategy should be advertised
in local radios and T.V.

To achieve this objective, it would be most appropriate to increase staff training to make all fully aware
that they are working in the top Pizza chain. To continue maintaining this position the company needs
them, needs their professional skills which they should try to improve everyday and needs their
friendliness providing the best treatment to the customers (personal selling)

To obtain total co-operation of employees because they are essential in increasing productivity,
providing customer service and beating the competition.

Motivate the personnel to perform effectively through a plan which should be fair, ethical and well
understood by them.

Hire and maintain high quality personnel and market the organisation or service to them because it is
people in a service organisation who differentiate the organisation from competitors.
Establishing rewards to employees and appropriate compensation, promoting and implementing
flexible benefits programme. Simkim, Ferrel (1994).

Pay more attention to the senior citizen segment creating suitable products and increasing staff
attention to them. Creating Pizza Hut Senior Club which will organise different activities.

Maintain and enhance a high quality product providing value and excellent service.

Launching new products and "New Pizzas" to "surprise" the customer as it was with The Edge Pizza
which "delivers a phenomenal new taste" and "will consumers will run out of crust before they run out
of toppings?" as commented Randy Gear chief marketing officer of Pizza Hut.

Launching periodic Customer Satisfaction campaigns.

Staying in touch with and adapting quickly to new preferences. Always providing friendly, helpful
service from well trained staff.

Introducing new improvements in the restaurants’ facilities such as introducing lunch buffets to exhibit
the pizzas and the salads and unifying its corporate image.

From its drive-thru units to the contemporary Pizza Hut Cafe, this segment giant is striving to do many
things -- and do them all well

WICHITA, Kan. -- Even as it faces a downturn in dine-in business, Pizza Hut is pushing ahead with a
comprehensive "distribution" strategy that executives hope will carry the chain well into the next
century and solidly establish its dominance at all levels of the $15 billion pizza segment.

Already recognized as a pioneer in the development of alternative sites and locations, the 8,400-unit
pizza giant is fine-tuning a variety of new concepts and tactics that will give it increased flexibility to
position its brand in an even greater number of venues around the world.

Chief among Pizza Hut's latest developments are a drive-thru quickservice unit that can serve a pizza
in less than 60 seconds and a contemporary midscale prototype destined to replace many of the
chain's tired red-roof restaurants.

The two new concepts, together with the company's delivery-only units and now-ubiquitous kiosks, are
giving the already fiercely aggressive pizza chain the added muscle to establish itself in every
conceivable consumer outlet.

"Our competitors are doing only one thing; they're all specialists. They do either delivery or carryout or
dine-in," observes Steven Reinemund, Pizza Hut's president and chief executive. "In order for us to
succeed, we must do a number of big things well; we're a generalist."

"We went from being the traditional red roof [with carryout] to introducing delivery in 1985," explains
Pat Williamson, who is executive vice president of development. "We continue to focus on those, but
we added a whole new category called |everywhere.' We want to be a player anywhere else that pizza
is being sold."

And while Pizza Hut unveils the newest weapons in its pizza war arsenal, executives continue to focus
on its ultimate goal: a 40-percent market share of the pizza industry.

"In 1986 we got together as a management team and talked about our mission," Williamson remarks.
"At that time we said that we wanted to grow our market share to 40 percent. When you have about 40
percent of a market, you dominate the category. So 40 percent is where we want to be. That [goal] is
the key that is driving a lot of our strategy."

So far, Pizza Hut has been drawing steadily closer to its market-share goal -- fueled by both its
groundbreaking alternate-site strategy and its unrelenting offensive into the delivery market. When the
company set out to reach that goal five years ago, its market share was about 17 percent, according
to Williamson. Today Pizza Hut--which expects to generate about $4 billion in sales this year
worldwide--is standing on or near the 25 percent market-share yard line.

Another goal the executive team set for itself is to boost same-store sales from its current average of
about $700,000 to $1 million by 1995.

But shifting consumer demands and aggressive competition from both within and without the segment
have left Pizza Hut executives apparently taking nothing for granted. "Today we're making it good; we
aren't making it great," Williamson adds frankly.

One of the chain's vulnerabilities is its market position in relation to non-pizza segment players'.

For much of its recent history, Pizza Hut has been positioned in a sort of foodservice limbo that is
neither precisely fast-food nor midscale. While the company has succeeded in making its retail brand
one of the most easily recognizable in the world--Boris Yeltsin survived on Pizza Hut pies during the
ill-fated Soviet coup attempt last August -- executives indicate that the lack of competitive concepts at
either end could pose a serious threat to the chain in the future.

"We aren't fast food, and we aren't midscale," Williamson observes. "The reality of it is that we are
convenient, but the biggest issue is we aren't fast. If you want to compete in the quick-service arena,
speed has got to be a key element as well as convenience and we're missing out on both of those
attributes right now."

At the same time Pizza Hut's traditional dine-in concept, the red roof, has come under fire from such
feisty midscale newcomers as General Mill's Olive Garden and Brinker International's Chili's --
contemporary full-service chains that have lured traffic away from the red roof.

It is a situation that may have been further complicated when Pizza Hut, in its quest to expand its non-
traditional portfolio and delivery base, lost sight of the trends driving the dine-in market.

But that's not an explanation everyone at Pizza Hut is willing to accept. "If you look at our red-roof
restaurants without delivery, we're performing like the current industry -- either flat or down slightly,"
Williamson says in defense of the concept. But then he also poses the possibility that the red roofs are
suffering because the company has been doing too thorough a job in other markets. "Why would a
consumer come into our restaurant when we deliver that product into the house?" he questioned.
"There is no added value."

Business Opportunity: Choosing the right business market.

The most crucial question in starting a business is also by far the hardest to answer. What business?
The question applies equally to the company that's soldiered on for years, staying put and staying
small - or smaller than its owner would truly like. The same effort, applied in a more fertile field, would
generate better results. The problem is finding the field.
There's a marvellous moment in The Graduate when a friend of Dustin Hoffman's screen father
buttonholes the young man and offers him a one-word recommendation: 'Plastics'. That's not been a
bad business, either. Nor has the one nominated by Lord Rayner in his early days as a managing
director of Marks & Spencer. Asked what business he would recommend to an aspiring entrepreneur,
Rayner didn't hesitate: speciality breads.

That phenomenon has applied in many other markets, from stereo to ice cream. Purchasers have
traded up, going for better quality at higher prices. The small firm, stealing a tiny proportion of the
large company's mass market, can make a tidy fortune in its special niche. But that general principle
still doesn't answer the specific question. It doesn't even need asking, of course, if you have a special
skill, some high-tech brilliance that's certain to win customers - if it works.

At one point, high technology seemed by far the surest choice for the aspiring start-up. In 1992, half
the top twenty in Fortune's list of America's fastest-growing companies were working in the broadly
defined computer industry. They literally ranged from A to X: from Artisoft, whose niche lies in helping
PCs to work together, to Xilinx, making reprogrammable chips. In 1994, Artisoft is still among the 100
fastest growers, but only just: Xilinx is out.

The point isn't simply that high-tech is an up-and-down occupation (though it is). The 1994 top twenty
include only four computery wizards. But as high-tech times have become harder, some very
humdrum occupations have come to the fore - led by a couple of retailers. One sells hardware and
garden tools and fixtures. The other, a franchise operation, has an intriguing variation on the usual
themes: it sells both new and used goods.

That's not unknown in British retailing. Video games are traded that way in many a High Street. But
surely no purveyor has matched Funco in selling Nintendo and Sega: this American firm has grown by
179% a year. It's no longer small, with $50.5 million of sales. But that expansion meant multiplying
nearly tenfold in five years from a small base. In 1991 there were just three FuncoLand stores.

Today there are 127: they average some ‚£300,000 of sales a year, by no means on the far side of
the moon.

The relevance of American experience to Britain is long-established. Eating chains are only one of the
business imports which continue to demonstrate that the Atlantic is easily crossed eastwards. Feeding
is still fast-growth in the US, where new operators are stealing a free ride from McDonald's, Burger
King, Pizza Hut and the rest. Just as the enormous growth of sliced bread stimulated the taste for
something superior, as spotted by Rayner, so the proliferation of the vast fast-food chains gives their
chance to successes serving slower Texan-style steak or chicken-on-a-spit.

Don't bet too quickly on such US hits staying American: are you sure that child play centres, say, or
premium quality golf clubs, or second-hand sporting goods wouldn't work in Britain? Wherever you see
a business that's apparently prospering, either in another country or at home, that's an important clue.
Direct imitation is not the answer, though.

Every business idea has to be adapted to fit your own personality and perceptions.
It helps, of course, if the proprietor's instincts and interests coincide with the business choice. Anita
Roddick's recent rash of troubles can't obscure the fact that, by following her own feelings about
natural cosmetics, she built Body Shop into a fabulous business: and one which, reversing the usual
flow, travelled successfully to America. But chickens-on-a-spit, whose original three locations are now
hundreds, attracted three non-foodies from Blockbuster Video: while the video-game king of
FuncoLand came from mail-order computers (he'd gone bust). Ultimately, only one instinct matters:
the nose for a profitable turnover.

In my opinion the threats to Pizza Hut can be the intense competition and in narrow relationship with it,
to cut down the quality of the products, the service and the attention to the customers so as to develop
new products as a means of increasing profit. Such a course of action would be a slippery slope to
disaster.

Pizza Hut should know as much as possible about its customers' tastes. How do the current
customers and prospects judge the company and its competitors on reputation, product quality,
service, strength and price? In the same way, it should know how the different classes of customers
make their buying decisions.

Pizza Hut should also obtain as much information as possible about its competitors. It must know who
its major competitors are and identify what the objectives and strategy of each major competitor are
and their weaknesses and its strengths. What are the sizes and the trends in the market share? The
study about the competitors should describe the trends that can be foreseen and identify external
market threats - substitutes for this product.

Pizza Hut is a top Pizza Chain but it has to maintain its position over its competitors. Domino's clearly
intended to gain total market leadership. Kaufmann (1993) Exhibit 1. Pizza Hut should maintain and if
is possible, increase the "total quality" of its products creating differential advantages in its service. It
showed this when it made the decision to computerise the central ordering system which was a
splendid means of improving performance. The differential advantages can be in the product, in its
presentation and also in the way that the staff treat the customers. Pizza Hut should never forget that
the loyalty quotient of its customers is very low. However, if another chain, for the same price as Pizza
Hut, gives the customer something different and more exciting than those products Pizza Hut is
offering, the consumer, following the typical consumer behaviour, will try the other chain. It is a truism
to say that it is much more difficult to capture or recapture a customer than to maintain an existing
one. Perceptions as price, quality and value are considered pivotal determinants of shopping
behaviour and product choice. Valaria A. Zeithaml (1988)

VI. Appendixes, Tables & Figures

Pizza Hut has been a longtime sponsor of the "Book It!" program (started in 1984), which encourages
reading in American schools. Those who read books according to the goal set by the classroom
teacher are rewarded with Pizza Hut coupons good for a free Personal Pan Pizza or discounted menu
items.

In the late 1980s, Pizza Hut threw free pizza parties for classes if all students met their reading goals.
The program has been criticized by some psychologists on the grounds that it may lead to over
justification and reduce children's intrinsic interest in reading. The program's 25th anniversary is in
2009
 18

16

14

12

10
delivery
8 no delivery

0
Age 10-20 Age 20-30 Age 30-40 Age 40-50 Age 50 above

Pizza Hut is split into a number of restaurant concepts. Quickly disappearing from the scene are
original family-style "Red Roof" dine-in-only locations, which do not have delivery service. Restaurant-
based delivery (RBD) locations offer a hybrid of carry-out, delivery, and dine-in options. Most new
stores, however, are "DEL/CO" locations, offering only delivery and carry-out service.

Additionally, Pizza Hut also has a number of unique concepts that are different from the store type.
Pizza Hut "Bistro" locations are Red Roofs and RBDs which offer an expanded menu and slighly more
upscale options. The new Wingstreet concept is an addition to many RBD and DEL/CO locations
which offers customers an expanded selection of chicken wing choices, more than the 'hot' or 'mild'
available at all locations.

Pizza Hut experiments with new products frequently, with less successful ones being discontinued.
These include the initially popular two-foot by one-foot square cut pizza Bigfoot, the 16" Big New
Yorker, made with a sweet sauce few enjoyed, the Chicago Dish Pizza and Sicilian pizza, the latter
also offered in 2006 as Lasagna Pizza. Other products Pizza Hut has offered are the "P'zone", Pizza
Hut's version of the calzone; the Cheesy Bites pizza, similar to the Stuffed Crust pizza except the crust
has been divided into bite-sized pieces that can be pulled apart; and the Insider pizza, where a layer
of cheese is in between two layers of dough. Another limited time offer was a Double Deep pizza with
double the toppings and 50% more cheese, with the crust wrapped over the top to hold in all the
toppings.

In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side dishes
including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, chicken wings
(Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ, Spicy BBQ, Garlic Parmesan, Cajun,
Spicy Asian) boneless wings, chicken munchers, jalapeño poppers, Quepapas potato bites filled with
cheese and jalapeño flavor., a basket of taters or tater tots and fried apple pies.

Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as
spaghetti and Cavatini - a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).

A new, upscale concept was unveiled in 2005, called "Pizza Hut Italian Bistro". Unveiled at fifty
locations nationwide, the Bistro is similar to a traditional Pizza Hut, except that new pasta dishes are
offered, such as penne pasta, chicken pomodoro, toasted sandwiches and other foods. Instead of
black, white, and red, Bistro locations feature a burgundy and tan motif. Pizza Hut Bistros still serve
the chain's traditional pizzas and sides as well.

A new version of Pizza Hut pizza, named Pizza Mia, was introduced in 2007. The product is aimed at
the cost sensitive consumer segment and typically is priced at $5.00, but the customer must order 3 or
more to get this price (for each pizza.) In comparison, a Pizza Hut medium sized, hand-tossed
pepperoni pizza is internationally priced at $10.24 (Houston, Texas 12/15/2007). The Pizza Mia comes
in only one size (medium) with extra toppings costing $1.25. One slice of Pizza Hut pepperoni Pizza
Mia weighs 83 grams. One slice of Pizza Hut pepperoni hand-tossed pizza weighs 96 grams.

Pizza Hut on May 9, 2008, created and sold in Seattle, Denver and Dallas, “The Natural”, a new all-
natural multi grain crust sweetened with honey, a red sauce of organic tomatoes and topped all-
natural cheese (or with all-natural chicken sausage and roasted red peppers). A medium Natural pizza
with one topping sold for $9.99. It has since gone national. Also in 2008, Pizza Hut created their
biggest pizza ever, the Panormous Pizza. It has 16 pieces to it and is about an inch bigger than a
large pizza.

Pizza Hut in the UK have been criticized for the high salt content of some of their meals which were
found to contain more than twice the daily recommended amount of salt for an adult. As well as high
salt content, there is a significant amount of fat

It has also been brought to light that Pizza Hut uses a Silicon based chemical, as an additive in their
cheese. This chemical has not received final FDA approval as a safe food additive.

Pizza Hut's main advertising slogan is "Gather 'round the good stuff". Pizza Hut does not have an
official international mascot, but at one time, there were commercials in the United States called 'The
Pizza Head Show.' These commercials ran from 1993-1997 and were based loosely on the Mr. Bill
shorts from Saturday Night Live in the 1970s. The ads featured a slice of pizza with a face made out of
toppings called 'Pizza Head'. In Australia during the Mid to late 1990s, the advertising mascot was a
delivery boy named Dougie, with boyish good looks who, upon delivering pizza to his father, would
hear the catchphrase "Here's a tip, be good to your mother".

Pizza Hut sponsored the first space pizza delivery in 2001, and paid for their logo to appear on a
Russian Proton rocket in 2000.

In Australia, 2006 saw the introduction of a mascot in Pizza Hut's advertising - "Pizza Mutt", a small
dog who delivers pizzas. The mascot was dumped after just two ads.
Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the consumer.

Utilizing mobile phone SMS technology and their My Hut ordering site, they aired several television
commercials (commencing just before the Super Bowl) containing hidden words that viewers could
type into their phones to receive coupons. Other innovative efforts included their "MySpace Ted"
campaign, which took advantage of the popularity of social networking, and the burgeoning user-
submission marketing movement via their Vice President of Pizza contest.

Pizza Hut sponsored the 1989 film Back to the Future Part II, and offered a free pair of futuristic
sunglasses, known as "Solar Shades", with the purchase of Pizza Hut pizza. Pizza Hut also engaged
in product placement within the film itself, having a futuristic version of their logo with their
trademarked red roof printed on the side of a mylar dehydrated pizza wrapper in the McFly family
dinner scene, and appear on a storefront in Hill Valley in the year 2015.

Pizza Hut is also advertised in anime such as Code Geass and Darker Than Black, though in the
translated versions of Code Geass the logo was removed leaving only the red roof logo.

Age Number Delivery No delivery % Delivery %No delivery

10-20 20 3 17 15% 85%
20-30 20 9 11 45% 55%
30-40 20 13 7 65% 35%
40-50 20 14 6 70% 30%
50 and above 20 10 10 50% 50%
Sum 100 49 51 49% 51%

Situation Analysis
By developing a SWOT Analysis, a Company can determine what its distinctive competencies are.
This will help determine what the organisation should be in business for, what its mission should be.

Finally, "Pizza Hut Express" locations are fast food restaurants licensed by Pizza Hut and operated
independently. They offer a completely different menu with many products not found at traditional
Pizza Huts, and are often found on college campuses, food courts, theme parks, and in stores such as
Target.