Pizza Hut Case Study

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Table of contents

Introduction ………………………………………..…………………………………………………………………   2

Competitive Landscape ……………………….…………………………………………………………………   2

Retailing format of Pizza Hut ……………….…………………………………………………………………  3

SWOT analysis ………………………………………………………………………………………………………..  3

Buying process of consumers from Pizza Hut ……………………………………………………….... 4

Multi attribute model …………………………………………………………………………………………….. 5

Franchising format of Pizza Hut ……………………………………………………………………………… 6

Market entry strategies of international players.…………………………………………………….. 8

Retail Strategy of Pizza Hut ..…………………………………………………………………………………… 9

Organization Structure at Pizza Hut ………………………………………………………………………  12

Compensation management …………………………………………………………………………………  13

Selection, training and retention ………………………………………………………………………….. 13

Logistics outsourced ……………………………………………………………………………………………… 14

CRM in Pizza Hut  ………………………………………………………………………………………………….. 14

Merchandise Management at Pizza Hut…………………………………………………………………. 15

Visual Merchandise………………………………………………………………………………………………… 18

Pricing……………………………………………………………………………………………………………………… 20

Pizza Hut Communication mix………………………………………………………………………………….  20

Store Management………………………………………………………………………………………………….  24

Customer Service…………………………………………………………………………………………………….. 25

References………………………………………………………………………………………………………………..  27

Introduction

Pizza Hut is an American fast food company, a subsidiary of Yum! Brands, Inc. It is an international franchise known for pizzas and side dishes. Pizza Hut entered India in 1996 and opened its first restaurant in Bengaluru. With Domino’s first operation in India the very same year Pizza Hut had had a tough competition. However Pizza Hut offered the unique value proposition of being an affordable casual dining restaurant providing diners an ideal place to change everyday moments into celebrations with delicious food. Thus, it has been successful in establishing itself as India’s largest casual dining restaurant brand with 462 dine-in restaurants across 44 cities.

Pizza Hut enjoys about 70,000 footfalls across the country and has captured 27 percent of the market share of the eating-out market. Its operations in India are 100 percent franchise based. An average investment for each outlet in India is US$ 275,000-335,000 which is borne by the franchisee.

 Pizza market in India – As per Crisil Research, the India quick-service-restaurants market is estimated to double to Rs 70 billion in 2015-16 from Rs 34 billion in 2012-13. Also the pizza market in India is worth above 1500 crore and has been growing at a CAGR of 26 % for the last five years. India and China has emerged as the next biggest markets for pizza after U.S. Due to the huge opportunities in the tier II and tier III cities the leading pizza makers are attracted towards these locations.

Competitive landscape

Pizza Hut’s biggest competitor, Domino’s Pizza, is currently the market leader enjoying over 55 percent of the market share alone in the organized pizza market and 70 percent in the market share in the pizza home delivery segment. Other competitors include –

• Smokin Joes
• California Pizza
• Papa Jones
• Sam’s Pizza
• Pizza Corner
• U.S Pizza
• Little Caesars
• Sbarro
• Neopolitan Pizza

Retailing formats of Pizza Hut

 Pizza Hut is focused on maintaining the highest quality of their product and services; giving utmost attention to the experience their customer receives.

Retailing Concepts of Pizza Hut in India

• Red Roof Restaurants:  These are full service restaurants offering a seated service (family-style dine-in) and takeaway, and may be delivered for off-premises consumption.
• Delivery/Carryout (Delco or Delco-lite) – Offers home delivery and takeaway, all for off-premises consumption.
• Pizza Home Delivery – Offers only delivery for off-premises consumption.

SWOT analysis

Buying process of consumers from Pizza Hut

Multi attribute model