Pizza Hut Strategies
History When it comes in tossing around pizza no one can beat Pizza Hut the world’s largest and successful Pizza chain with over 12,689 restaurants in 88 countries around the globe. Thanks to a bright suggestion of a friend, $ 600 starting money from a mother and two enterprising brothers. The current world’s largest and most successful pizza restaurant, PIZZA HUT was made. The two brothers named Dan and Frank Carney are of the pioneers of the now well-known pizza restaurant.
Pizza Hut’s CHAMPS Pizza hut create their standard process in understanding what the customers really want and doing whatever it takes to make it happen this is what they call as CHAMPS which stands for: Cleanliness = Before and after handling the customers Hospitality Accuracy Maintenance Products Service These six items define the very core of customer expectations.
CHAMPS has become the vehicle which drives Operations Excellence into our business and is also supported by a reward and recognition scheme for the Team members.
The ‘CHAMPScheck’ is a tool used to ensure consistency of service and product quality across the entire Pizza Hut estate; in fact it is used for all the Tricon brands internationally. Products and Services in Market The pizza company is very aggressive in terms of servicing the consumers. They are very optimistic and based their strategies in their on-going customer relations where the communication with their loyal customers leads the way to create another delightful product and quality service.
Their effective marketing is not only placed on different advertisement but also in television and Internet.
Part of their marketing strategy is to offer an online ordering system where a potential or loyal customer can address her or his order through the website they provided. In fact, the delivery system attracts the customer and states that “if it’s late it’s free”. This kind of statement is popular and most of the fast foods or restaurant adds it to their advertisement to guarantee that they will deliver the customer’s needs in time . An advertisement for Pizza Hut’s Pan Pizza The most commonly sold food at the restaurants is the “Pan Pizza”, which usually comes in four different sizes including Personal Pan (which is an individual serving), Small, Medium, and Large, although some stores have done away with the small size. They come in a variety of toppings, including “specialty” styles. Pan Pizza has a thicker crust than most other commercially available pizzas.
In addition to the Pan Pizza, Pizza Hut also sells “Stuffed Crust” (with the outermost edge wrapped around a coil of mozzarella cheese); “Hand-Tossed” (which is more like traditional pizzeria crusts); “Thin ‘N Crispy” (a thin and crispy dough which was the original crust); “Bigfoot”, which is a two-foot by one-foot square cut pizza; and the Dippin’ Strips pizza, which is similar to a Sicilian pizza but is cut into small strips that can be dipped into a number of sauces. Pizza Hut has experimented with new products frequently. Less successful ones have been discontinued.
These include Chicago Dish Pizza and Sicilian; the Sicilian Pizza made a 2006 comeback. Other products Pizza Hut have offered are the “P’zone”, Pizza Hut’s version of the calzone; the “Cheesy Bites”, similar to the “Stuffed Crust” except the crust has been divided into bite-sized pieces that can be pulled apart; and the “Insider”, where a layer of cheese is in between two layers of dough.
Pizza Hut also has a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, hot and mild chicken wings, boneless wings, chicken munchers, jalapeno poppers, and garlic bread.
Depending on the size, Pizza Huts also may offer pasta dinners such as Spaghetti or Cavatini. They often come with a side of garlic bread. Some Pizza Huts also serve lunch and dinner buffets with numerous types of pizza, breadsticks and pastas, as well as a salad bar. A new, upscale concept was unveiled in 2005, called “Pizza Hut Italian Bistro”.
The concept, unveiled at fifty locations nationwide, 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 are also offered.
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. Pizza Hut Marketing The need for marketing was realized by all business firms especially for customer oriented businesses. Marketing is the key to understand what the customers really need and Pizza hut ensures that these are met in order to achieve its corporate goals.
Pizza was extremely popular not only for Italian because now a day’s lots of different variation were made just to fit different tastes of people. Pizza hut have wide range of customers due to pizza popularity.
In order to satisfy the needs of the consumers Pizza hut also involved their marketing in New Product Development. Different researches are carried out to know the needs of the consumers to come up with product innovation that surely fits the requirement of the customers. Marketing Strategy and Strategy for Success A business’s strategy is the pattern of decisions and actions that are taken by the business to achieve its goals.
A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives.
Running a business involves planning the current as well as future activities. Hence, in order to achieve the business objectives, all business organizations adopt different strategies. Similarly, Pizza Hut has adopted many strategies which help achieve their goal.
Both external and internal changes forced Pizza Hut to rethink their past strategies and have therefore designed new strategies after noticing the changes in the environment. These environmental changes are seen through the PEST (Political, Economy, Society and Technology) and SWOT analysis.
After considering all these factors Pizza Hut has decided upon the strategies that would meet the continuous changes of need of their consumers Pizza Hut adopted different strategies such as: Functional Strategies: These are strategies designed to improve the efficiency of a business’s operations. They often focus on an area, such as marketing, human resource etc. All business organizations adopt strategies at functional level as once the functional objectives are achieved, corporate objectives become easy. In order to make the functional strategy efficient, Pizza Hut has made all the unctional departments co-operate with each other.
Total Quality Management (TQM): This is the most important for a food chain like Pizza Hut. All the employees’ back-of-the-house i. e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet the quality standards set by Pizza Hut around the world. This strategy is important in order to satisfy the CHAMPS.
This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. Different quality management staff is also there at Pizza Hut.
The shift managers have the task to observe whether the quality standards are met or not, whereas there are a total quality management department to implement quality standards and know whether they are achieved or not. Market Targeting: Pizza hut targeted market defines them as a family product. This is because they don’t really directly market their customers.
They target everyone where as their competitors target certain gender or age. But pizza hut targets a wide range of customers. This is because they want to make the most money and who blames them. They have many competitors and they are bound to try everything to cope up ops.
Their competitors are everywhere.
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 their products better quality but also cheaper. They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers. They also do vegetarian options with meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and a pasta bar. This is another competitive idea to attract or customers.
Comparative strategy This forced competitors to look for new methods of increasing their customer bases.
Many pizza chains decided to diversify and offer new non-pizza items such as Buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well.
For example, chicken is now a common topping found on pizzas. In the past, Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the diversification of the products they offer.
Pizza Hut is always adding something new to their menu, trying to reach new markets. For example, in 1992 the famous buffet was launched in Pizza Hut restaurants worldwide.
They were trying to offer many different food items for customers who didn’t necessarily want pizza. Another strategy they used in the past and are still using is the diversification of their pizzas. Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different -different enough that customers will think it’s a whole new product.
For example, let’s look at some of the pizzas Pizza Hut has marketed in the past . In 1983, Pizza Hut introduced their Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Pizza Hut restaurants. In1993, they introduced the “Bigfoot,” which was two square feet of pizza cut into 21 slices.
In 1995, they introduced “Stuffed Crust Pizza,” where the crust would be filled with cheese. In 1997, they marketed “The Edge,” which had cheese and toppings all the way to the edge of the pizza. Currently, they are marketing “The Big New Yorker,” trying to bring the famous New York style pizza to the whole country.