Economics Project

•Topic:

Pizza Hut (pēt'sə h^t)

Members:

» Lamia Asad - 70
» Rehan Mehmood - 95
» Faizan Safdar - 37
» Shahnawaz Mumtaz - 122
» Ayesha Mehmood – 25
» Sharjeel Khan - 125
 HISTORY
Pizza Hut is a resturant chain and international franchise
based in Addison, Texas
•USA (a northern suburb of Dallas) offering
different styles of pizza along with side dishes
including pasta, buffalo wings, breadsticks, and
garlic bread. Pizza Hut is a subsidiary of Yum!
Brands, Inc., the world's largest restaurant
company

•With, approximately 34,000 restaurants, delivery-

carry out units, and kiosks in 100 countries.
 HISTORY
•The chain was founded in 1958 by Dan and Frank
Carney.
•The Original Pizza Hut building was later relocated
to the Wichita State University campus.
•Additional restaurants were opened, with the first
franchise unit opening in 1959 in Topeka, Kansas.
•At the same time Pizza Hut was growing in and
around Kansas, Shakey's Pizza was developing a
stronghold along the West Coast.
•By 1972, with 314 stores nationwide, Pizza Hut
went public on the New York Stock Exchange
under the stock ticker symbol PIZ.
•In 1977, Pizza Hut was acquired by Pepsico, who
later also bought KFC and Taco Bell.
 HISTORY
•In 1997, the three restaurant chains were spun off
into Tricon, and in 2002 joined with Long John
Silver's and A&W Restaurants to become Yum!
Brands.
•Pizza Hut has opened Pizza Hut Express which
specialize in large 12" pizzas.
•The oldest continuously operating Pizza Hut in the
world is in Manhattan, Kansas, in a shopping and
tavern district known as Aggieville.
 Fun Facts in Pizza Hut
History

•Pizza hut are the world's largest user of cheese, Over the
course of a summer it is estimated that Pizza hut uses a 100
million pounds of cheese. Pizza Hut uses more than 300
million pounds of cheese annually.

•Pizza Hut purchases more than 3 percent of all cheese

production in the United States ,which requires a herd of
about 170,000 dairy cows to produce it.

•They also use 700.000.000 pounds of pepperoni and

525.000.000 pound of tomatoes in one year.

•Gorbachev (the former president of the USSR) also played

in a Pizza Hut commercial.
•In 2001 Pizza Hut sponsored a pizza delivery to the
international space station.
 MARKET SHARE

•In whole world, pizza hut has a

market share of 48%. Whereas
Domino’s covers about 20% of
the market share.

•Other pizza sellers, both having

small business or large restaurants
have total 32% share in world
market.

•Pizza hut is using advance

marketing strategies to enhance
its sales and to over come more
market share.
 MISSION STATEMENT

The mission of Pizza hut, can be identified by its mission statements that are
used in different promos. Like these

• “To be the best pizza for every pizza occasion”

• “ Alone we are delicious, Together we are YUM!”

Another one is:

• We are P.E.A.R.L.S

§ PASSION for excellence in Doing everything

§ EXECUTE with positive energy and need
§ ACCOUNTABLE for growth in customer satisfaction
§ RECOGNIZE the achievement of others and have fun doing it
§ LISTEN and more importantly, respond to the voice of the
customer.
 MARKETING STRATEGY

• Some strategies used by the

company is by showing its
sincerity to the customers.

• This is done by displaying big

boards on busy roads, and by
framed Motives in written form
inside the restaurants.

• Pizza Hut Says:

We want to satisfy our customer by offering

them “The Best”
 MARKETING STRATEGY

• Be C.H.A.M.P.S
§ Cleanliness
§ Hospitality
§ Accuracy
§ Maintenance
§ Product & Quality
§ Speed

You will Find 3F’s at Pizza Hut

1. Fun
2. Friendly
3. Familiarity
 SEGMENTATION

• Segmentation:
Identifying portions in market different from one another is
called segmentation

 The Segments Pizza Hut is Working on

§ Higher Income: it means pizza hut is setting its prices to built is

standard and hence only those people with good income
are the regular customers of pizza hut.
§ Dual Career Families: families having dual carriers and hence
it means they earn good income.
§ Age 12-50 Years: providing the range of pizza of all sizes and
tastes for the customers from the age of 12years to 50
years.
 Types Of Segmentation

• Geographic segmentation

– Localize products, advertising, promotion and sales efforts

to fit the needs of the individual areas and cities is geographic
segmentation.
e.g. Products and Promotion in India about Cow Meat etc.

• Psychographic segmentation

– Dividing the market into different groups based on social

class, life style or personality characteristics is psychographic
segmentation.
e.g. Choosing Prices for Products as 999 OR 899
 Target Market

• Pizza hut targeted market defines them as a family

product. This is because they don't really directly market
there customers. They are target everyone.

• Were as there competitors target a certain gender or age.

But pizza hut targets a wide range of customers. This is
because they want to make the most money.

• They have many competitors and they are bound to try

everything to Coe up tops. There competitors are every
where.

• There are just a few that are main competitors and pizza
hut will always try to be the best and get the most money
by making there products better quality but also cheaper.
 Target Market

• They try to offer something different with there product as

well. They offer a range of stuffed crusts.

• To try and attract customers of young age, they also do

vegetarian options with meat free pizzas and a salad and
pasta bar.

• This is because young generation is more health conscious

now and mostly are vegetarians. Not a lot of restaurants
offer a salad and a pasta bar.
 POSITIONING

Pizza hut has done their positioning in the target market by

keeping in view two basic factors:

1. Quality
2. Frequency

• Worldwide and in Pakistan, Pizza Hut has come to

become synonymous with the
‘Best pizzas under one roof‘

• Crew members and trained specially and the training session is

named as 'customer mania‘ which makes the crew
members proficient in providing the customers a Unique
dining experience.
e.g. speed & quality of service
 MARKETING MIX
Large Chicken Supreme Pizza:
Four P’s This is the type of Pizza in the world with largest
sales. It contain cheddar cheese, mozzarella
cheese, Spicy chicken, chicken fajita, smoked
chicken, onions, green peppers, olives &
mushrooms. with double the amount of topping
• Product , capsicums, tomatoes, tomato sauce with
oregano leaves and basin leaves.
• Place
• Promotion Quality:
This is considered as most tasty pizza in Pakistan
• Price and is highly demanded as compared to other
variety of pizza. As people think that it is a
good pizza ,so most of the people don’t want to
take a different variety of pizza as there is a
common fear that it might happen that pizza of
different variety wouldn’t taste good and hence
they will face loss of money on a less tasty
pizza.
 MARKETING MIX
Design:
Four P’s Usually typical round style Pizzas are offered to the customers,
however Pizza Hut now introduced rectangular shaped large
pizza which is further divided into 16 pieces in form of
stripes.
Features:
• Product On purchase of a large pizza a pitcher of Pepsi, Dew or 7up
• Place are offered depending upon the choice of customer.
• Promotion Large Rectangular Pizza named as ‘Dippin Strips’ is offered
with three delicious dipping.
• Price Packaging:
Pizza is delivered in Boxes behind the bikes of delivery boys
and they claim to serve it as hot as it is on the time
when its been taken out of the oven.
 MARKETING MIX
•Pizza hut has opened its branches world-wide and is having 34,000
Four P’s outlets in 100 Countries.

•In Pakistan Pizza hut has opened 37 outlets in 9 Cities.

Karachi – 17 branches
Lahore – 10 branches
• Product Islamabad – 2 branches
• Place Faisalabad – 2 branches
• Promotion Hyderabad – 1 branch
Peshawar – 1 branch
• Price Multan - 1 branch
Rawalpindi – 1 branch
Sialkot – 1 branch
Muree - 1 branch
 MARKETING MIX
• Pizza Hut is the pioneer of pizza in Pakistan, aimed at
the casual dine-in market.
Four P’s
• Pizza Hut came to Pakistan in 1993 with only one
outlet at Boat Basin, Clifton, Karachi.

• Today, there are 37 restaurants in nine cities in

• Product Pakistan.
• Place
• The slogan is “Share the good times”.
• Promotion
• Price • The second largest outlet of the Pizza Hut is situated
in Lahore at M.M.Alam Road.

• The monthly sales of the outlet is more than

US$1,30,000 (about 1 crore rupees) making it the
second highest revenue generator of Pizza Hut all over
the world.
 MARKETING MIX
• Pizza Hut also opened its outlets in Sport Arena’s,
Four P’s Major Airports & Shopping Mall of big cities as
they are the most crowded places.

• Pizza Hut opens its outlet in every fourth area of

the city, depending upon the size of the city. So
• Product that it is more accessible to the customers.
e.g. Karachi & Lahore has large number of outlets as
• Place compared to other cities because they are the
• Promotion biggest cities of Pakistan.

• Price •Channel:
Pizza hut sell their products through 3 ways
1. Take In
2. Dine in
3. Home Delivery.
 MARKETING MIX
• Pizza hut spends approximately Rs. 1million - 1.2
Four P’s million on advertising annually using a Media mix.

• Pizza Hut advertise their products through

§Bill Boards
§TV Ads
• Product §News Papers

• Place •Visit to School & Colleges: they visit school, colleges and
universities and set their stalls to promote their
• Promotion products among young community.
• Price
•Sales Promotion (Discounts): they offer discounts on
their products, On Super supreme they reduced the
price from 745 to 700 and also add a pitcher of soft
drink.
 MARKETING MIX
• Another technique used by pizza Hut to promote the
Four P’s company within the country & culture it is working in,
is that, it introduced several locally-influenced tastes of
pizza aiming the taste buds of the Pakistani market.
• This includes
• Product  Seekh Kebab Pizza
 Sundance Pizza
• Place  Spicy Hot Pizza
• Promotion  Bonfire Pizza
• Price  Ring O Fire Pizza
 Green Chicken Tikka Pizza
 Spicy Prawn Pizza
 MARKETING MIX
• Super Supreme is a pizza which contain chicken as well
Four P’s as beef.

• It was not Popular in India as Cow meat is forbidden

in Hindu religion.

• Product • But it is due to their good advertising and promotion

• Place techniques that most of the young generation in India
is now eating Super Supreme along with beef topping.
• Promotion
• Price • The Chicken Tikka topping which is now used in
franchises in India was first used in restaurants in
Pakistan.
• Pizza Hut offers annually an "All you can eat" in the
month of Ramadan
 PIZZA DELIVERY TO SPACE

•Pizza Hut Delivered Pizza

to space in Year 2001
Which made them More
Famous and a New Slogan
came into Being
That

“Wherever There
Is Life, There Will Be
Pizza Hut’s Pizza”
 Sponsorships
• In 2000, Pizza Hut was a part-time sponsor of Galaxy
Four P’s Motor sports.

• Pizza Hut was the shirt sponsor of English Football

Club.

• Product • In 2005, Pizza Hut sponsored “The Simpsons” on

• Place Channel 4.

• Promotion • In March 2007, Pizza Hut partnered with Verizon

• Price Wireless to offer a free LG mobile phone with the
purchase of a Cheesy Bites Pizza.

• 2007-08 Pizza Hut is a sponsor of the Newcastle

Vipers ice hockey team for the season in the UK.
 Advertising

• The 1990 NES game Teenage Mutant Ninja Turtles II: The Arcade
Game, came with a coupon for a free pizza. The game was filled with
Pizza Hut advertising and pizza that would refill the character's life .

• In late 2008 Pizza Hut's main advertising slogan was "Gather 'round the
good stuff".

• Early 2007 saw Pizza Hut move into several more interactive ways of
marketing by utilising mobile phone SMS technology and their MyHut
ordering site, they aired several television commercials containing hidden
words that viewers could type into their phones to receive coupons
 Advertising

• On April 1, 2008, Pizza Hut in America sent emails to

customers advertising that they now offer pasta items on
their menu. The email (and similar advertising on the
company's website) stated "Pasta so good we've changed our
name to 'Pasta Hut'.
• " The name change was a publicity stunt held in conjunction
with April Fools' Day, extending through the month of April,
with the company's Dallas headquarters changing its exterior
logo to Pasta Hut.
• This name change was also used to promote the new Tuscani
Pasta line and new Pizza Hut dine-in menu.
• The First Pasta Hut Ad has the Original Pizza Hut restaurant
being imploded and recreated, but when they construct the
new building, the sign saying "Pasta Hut" is placed on the
building.
 Demand Curve

Demand Curve of Large Chicken Supreme Pizza per day

Price 650 Price Quantity
600
demand
ed
550
400 9100
500

450
450 8875

400 500 8750

350 550 8600

8000 8200 8400 8600 8800 9000 600 8450

Qd
650 8300
 Factors of demand and
supply
Determinants of Demand

• Income

• Taste

• Expectations

• Price of Related Goods

 Supply Curve

Supply curve of Large Chicken supreme Pizza per day

Price 650 Price Quantity
600
supplied

550
400 8150
500

450
450 8300

400 500 8450

350 550 8600

8000 8200 8400 8600 8800 9000 600 8750

Qd
650 8875
 Factors of demand and
supply
Determinants of Supply

• Price

• Input prices

• Expectations

• Technology
 Elasticity

Elasticity of Demand:

%age change in price = p2-p1/p1 x 100

%age change in quantity demanded = Q2-Q1/Q1 x 100
= (% Change in Quantity Demanded)/(% Change in Price)

= <1
Elasticity of Supply:
%age change in price = p2-p1/p1 x 100
%age change in quantity Supplied = Q2-Q1/Q1 x 100
= (% Change in Quantity Supplied)/(% Change in Price)

=<1
 Equilibrium

Equilibrium Price of Large Chicken Supreme Pizza

Price Price Quantit Quantit
650
y y
600 deman supplie
Equilibrium Price ded d
550
400 9100 8150
500

450 450 8875 8300

400 500 8750 8450

350
550 8600 8600

8000 8200 8400 8600 8800 9000 600 8450 8750

Qd, Qs
650 8300 8875
 Cost of Production
Quantity F.C V.C T.C A.F.C A.V.C A.T.C M.C
0 50000 00000 50000 ----------- ----------- ---------- 6250

25 50000 6250 56250 2000 250 2250 6500

50 50000 12750 62750 1000 255 1255 6750
75 50000 19500 69500 666.7 260 926.6 7000
100 50000 26500 76500 500 265 765 7250
125 50000 33750 83750 400 270 670 7500
150 50000 41250 91250 333.33 275 608.33 7750
175 50000 49000 99000 285.7 280 565.7 8000
200 50000 57000 107000 250 285 535 8250
225 50000 65250 115250 222.22 290 535 8500
250 50000 73750 123750 200 295 545
 Cost of Production Graph

Graph

M.C

A.T.C
A.V.C

A.F.C
ANY Questions??