Pizza hut Marketing Promotion in Pakistan

Pizza Hut
Promotion Assignment

Sohail Tariq
Reg. No. 70078369
University of Lahore Pakistan
Table of Contents

1. INTRODUCTION & HISTORY OF PIZZA HUT

Mission statement

Core values: P..E..A..R..I..S

2. Product portfolio

3. Marketing plan

Marketing budgets

Selling expense

Advertising / promotion expense

Product cost

4. Pizza hut’s communication mix

Sale promotion

Sponsorship

E-marketing

Branding

5. Marketing communication mix

Television

Internet

Public relations

6. Marketing strategy

Pull strategy

7. Conclusion
 1. INTRODUCTION & HISTORY OF PIZZA HUT

In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the
sign… the building looked like a hut… so 'Pizza Hut' was born!

Fifteen years later, they opened the first UK restaurant and since then we've become the biggest Pizza Company on the planet, let see listen Pizza Hut Story from
them!

1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.

1972 1000 restaurants are open throughout the USA.

1973 Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London.

1977 PepsiCo bought Pizza Hut.

1980 Pan Pizza was introduced.

1982 The UK joint venture started between PepsiCo and Whitbread.

1984 Over 50 restaurants so far in the UK.

1986 By now, there were 100 restaurants in the UK and 5000 worldwide.

1987 An average of one restaurant opened each week in the UK.

1988 The UK's First Delivery Unit was opened in Kingsbury, London.

1992 There were 9,000 restaurants in 84 countries.

1993 There were 300 restaurants and delivery stores in the UK.

1994 10,000 Pizza Huts were open for business.

1997 PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in the World. Tricon
became the partner company with Whitbread.

1999 Pizza Hut had over 400 restaurants, employing 14000 people.

2002 Tricon Global became YUM! Brands Inc.

2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum!
2008 bought Godfather's Pizza in Ireland with 28 stores.
The first Pizza Hut Restaurant in Pakistan was opened in December 1993 and took the culinary scene by surprise. From that time onwards,
the brand has contributed heavily towards the development of the society as a whole. It is responsible for creating job opportunities for the
youth of the country both directly as well as indirectly. Furthermore, Pizza Hut during the core of its existence has gradually aided in the
development of various local suppliers who as a requirement have to supply food staff equivalent in quality to the international food
standards. In this regard, our restaurant chain has proved to be a major contributor towards the progress of the Pakistani food industry as a
whole by bringing it to a point where they can now look forward to supplying their items to other chains as well as the international
market. Pizza Hut, being the first International franchise to enter the Pakistani market has set new standards of dine-in restaurants and
quick delivery of oven hot pizzas and has since then enjoyed tremendous brand loyalty from its customers.

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. Core Values: 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

LISTEN and respond to the customer needs

2. Product portfolio
There are total six product lines of pizza hut which includes pizza, wings, sides, pasta, desserts and drinks. In pizza’s line includes: major and popular
pizzas are: Cheese Pizza, Pepperoni pizza, Meat Lover’s pizza, Supreme pizza, Buffalo Chicken pizza and Veggie Lover’s pizza. Wings includes:
 Large traditional wings, breaded bone-out wings, individual wings meal, family wings meal, party wings meal, fries and apple pieces. Sides
includes: Stuffed garlic knots, Bread sticks and Cheese sticks. Pasta includes: Chicken alfredo pasta and meaty marinara pasta. Desserts
includes: Chocolate chip cookie, triple chocolate brownie, cinnamon sticks and apple pies. In drinks, all Pepsi drinks are included.

3. Marketing Plans
Marketing budgets The marketing management budget consists of selling expenses, advertising and other promotion expenses, product cost and
other costs. The overall marketing budget of new product in the 1 year (2015) is 150 million pounds. The various parts of marketing budgets are
described below:
 Selling expense:
The selling expenses of new product include the direct production costs, transportation costs, and other variable costs. It has estimated selling
cost of 10 million pounds in the 1 year (2015).
 Advertising/promotion expense:
New product will take massive promotion activities in the year The total estimated promotion budget for the for the 2015 are 100 million pounds.
Among this money 5 million pounds used to give discounts to customers on various occasions. The management will also spend 5 million pounds
to present customers with some gifts. The rest of the money used for advertising on television, newspapers, flyers, banners, etc. to attract more
customers.
 Product cost:
The product cost consists of production costs and storage costs. The organization store various vegetables on the store room. It has estimated a
storage cost of 30 million pounds in 2015.
4. Pizza Hut's Communication Mix
 Sales promotion
One of Pizza Hut's more recent sales promotions is its "Happy Hour" menu. The Happy Hour menu provides consumers the choice not only
pizza, but also pasta, salad and plus garlic bread and a drink. Pizza Hut promoted this menu at a £4 fixed price. Pizza Hut premiered this
promotion using an ATM advertising campaign. The purpose of this campaign is to hopefully increase visits by customers to Pizza and was
cleverly timed to premier around pay-day for most of the working public.

 Sponsorship
Pizza Hut possesses a wide sponsorship in different and variety areas from past until now. For instance, the notable sponsorship of Pizza Hut
is as a part of PepsiCo's. There has also been partnerships with Formula one, Euro '96' and was a sponsor of the Newcastle Vipers ice hockey
team from 2007/08 EIHL season. Nowadays, Pizza Hut is proud to sponsor National Family Week. This is the biggest official celebration of
families and 'Pizza Hut is a gold sponsor of such an exciting new initiative backed by the largest coalition of family in the UK.' (The
Greenwich Gazette, 2009) Therefore due to the association with such reputable brands, sponsorship is a very useful method of marketing for
Pizza Hut and has helped communicate the image of Pizza Hut to its target audience.

 E-marketing
The internet communication of Pizza Hut plays an important role for customers. Pizza Hut also has used social networking sites such as
Facebook and Twitter to create E-marketing. Facebook users can join a Pizza Hut group and receive information of any promotions. This new
form of marketing is Pizza Hut adapting to new technology and understanding there are some lucrative options for marketing this way. The
target audience that use social networking sites most profoundly Generation X and this creates a parallel to a large proportion of Pizza Huts
target audience.

 Branding
In 2008 Pizza Hut rebranded its UK business to Pasta Hut. The expenditure of this rebranding cost '£100M' (Marketing Week, 2008) as it
refurbished many restaurants and created new outlets. The
change of the brand's name could be a trial exercise to promote and test the market's acceptability of the new name. It has been noted however
that most people still prefer the previous name 'Pizza Hut' and found the rebranding of 'Pasta Hut' stale and uninteresting.

5. Marketing Communication Mix

Television
The creation of television provided a new opportunity for widespread effective advertising. When viewing advertisements, the public assesses
what the advert conveys and how it conveys this message. This causes the public to evaluate aspects such as presentation, creative appeal as
well as of course the message. Therefore, due to impact that this powerful audio-visual tool can have on the audience, it is imperative that
much consideration is given to the impression that is portrayed.

One major benefit of television advertising is that it has a very high level of penetration. Statistics have shown that in the United Kingdom on
average the public watches television for '28 hours per person per week' (Nation master, 2009). This therefore provides a lucrative possibility
for many corporations.

Due to the audio-visual possibilities that television advertising provides it gives the advertisers an opportunity to utilize the creative potential
and fully portray the message desired which consequently helps the brand to achieve its aspired goals.

For the television advertisement, a brand such as Pizza Hut should produce adverts that are creative and entertaining but also ensures that the
core message is clearly communicated. The advertisement must be appealing to keep the attention of the audience to hopefully limit the effect
that surrounding noise and distractions may have.

There is a tendency of many consumers to directly link the credibility of a brand with the credibility of the medium, and television advertising
is perceived as a highly credible source to most audiences. Therefore, the credibility of the Pizza Hut campaign has high chances of being
enhanced if it associated with TV adverts.
 The television advertisement for the new campaign needs to be positively engaging on the emotional and psychological
grounds. Our basic aim is to implement the pull strategy to create a demand for this new product category via the mass media.
 The target audience for the pizza hut campaign is the health-conscious segment, but health consciousness is reflected in varied
shades for different individuals, and this consideration is depicted in the television advertisement. The advertisement shows an
ordinary British family consisting of a mother, a father and two teenagers; a son and a daughter. They are discussing what to
have for dinner at the dining table. One option that is discussed is pizza, and it shows the four different perspectives of having
pizza for dinner. The mother's standpoint is that pizza wouldn't be suitable as it is unhealthy and lacks proper nutrients for the
family, while the daughter's perspective is that she would have motivational conflicts due to the high calorie count and the diet
she has been carrying out, the son also may have a similar negative perspective due an extensive work-out schedule that he has
been keeping to and doesn't want to ruin and that father may be worried about blood pressure and cholesterol that are common
with his age and therefore the consensus is not to order a pizza even though everyone would enjoy the experience.
 The advert would have a strong visual appeal to create the sense that it would be delicious and full of flavour, this would be
carried out with visually appealing colours of the topping as well as the surrounding background of the advert.
 The slogan used for this advert is "Pizzas Just Got Healthier." This is a clear, strong slogan and it also communicates the core
idea of the whole advertising campaign in lucid, simple language which is easily retained by consumers. The slogan also is able
to depict an image of the brand which cares about its customer's health through an product innovation. The sales promotion that
is integrated into the campaign will be shown at the end of the advert with a change in the tonal quality of the speaker, this is
aimed at getting the audience to pay attention at the moment when the majority of the information is relayed. Refer to Appendix
A for story board.
 The last but not the least the advert would be following the Association Guideline within "C4'S Golden Guidelines"; the
television advertisement will be aired throughout a entertainment/comedy section, throughout the time period of 6pm to 8 pm.
This time period would be a high reach period
 as it after school and work when more members of the family are at home. It would be most viable to relate the advert to the shared territory and
common targeting aspect of the Association Guidelines.

Internet Advertising
 The internet is described by many as a one of the most important inventions of the century. It has been a part of a major revolution
in technological development worldwide. With the advent of web based advertising in 1994, it has become an extremely
convenient method for many brands to reach to the greater masses at a relatively lower cost in comparison to traditional media.
 The current generation is highly dependent on the internet, and therefore advertising online in the form of banner ads, button ads,
pop ups are the smart and viable options for many reputed brands. Potter (1994) 'estimates that web based marketing results in ten
times the units sold at one tenth of the advertising budget, and that's one of the most important reasons to opt for an online advert.'
An added bonus also is that consumers have the option of watching the advert as many times as they wish and so are able to
obtain all the information that the advert provides. The new Pizza Hut campaign focuses mainly on giving healthier alternatives
when visiting Pizza Hut, mainly in the forms 'Healthy Pizzas'. This should be highlighted clearly to the audience as this should
create an interest that may cause possible customers to acquire more information about the campaign.
 Another rationale for using web based advertising is the higher chance of an instantaneous purchase, as long as there is a option of
purchasing the product or service. This impulse purchase effect will occur especially with food producers such as Pizza Hut, as it
satisfies a physiological need in Maslow's hierarchy of needs. To hopefully ensure a purchase it would be advisable for Pizza Hut
to have an option of "Order Now" and a link to the website.

Public Relations
 Harris (1998) indicates the 'purpose of marketing PR is to gain awareness, stimulate sales, facilitate communication, and build
relationships between consumers and companies and brands.' This opportunity is an interesting prospect for Pizza Hut and
alongside advertising may enable the campaign to reach more of the target audience.
 Pizza Hut can use its public relations agency to promote its products, services as well as its corporate identity. This is especially
useful as the campaign is aiming for an image change, public relations will help communicate this change to many different
groups of stakeholders.
 Corporate public relations is responsible for establishing understanding and trust with individuals who have a potential or actual
interest in the organization, (Kitchen, 1997). According to Gruning (1992), 'corporate PR is the management of communication
between an organization and its publics.' These may include health organizations, local businesses, local education authorities
and potential customers along with many more groups. Pizza Hut can use and associate 'the high credibility attached to this
form of communication.' (Fill et al, 2005) to create credibility and maintain the credibility of the brand.
 For Pizza Hut to be effective when carrying out its public relations, it will introduce newsletters informing the previously
mentioned groups of what they are trying to do in its new health campaign. Pizza Hut could also evaluate the effectiveness of its
public relations by offering readers the chance to comment on the company and any articles through the feedback form at the
back of the newsletter.
 Pizza Hut has decided to put together an article with a major newspaper publisher about obesity levels and the new Pizza Hut
healthy campaign. Public relations are often important at more of a corporate level and without this option Pizza Hut would
struggle to be seen as a major food outlet. This be a form of publicity.
 Pizza Hut should also conduct a certain amount of public relations to its internal stakeholders such as staff and external
stakeholders. Internally the employee magazine should be used, and these cues should 'develop images and perceptions' (Fill,
2005) in the mind of the stakeholders, internally as well as externally.
 Therefore, the ability for public relations to reach a medium size audience and also portray a credible image indicates that Pizza
Hut should be using PR as one of its communication tools. It must not be ignored however that public relations is more
effective when integrated with other communication tools. By combining such tools as advertising with public relations it is
possible to gain full national coverage something that would not necessarily be possible with other communication tools.
6. Marketing Strategy
 Pull strategy The 'healthy eating' campaign is directed at end user customers in order to generate increased level of awareness,
change and/or reinforce attitudes, reduce risk, encourage involvement and ultimately provoke a motivation within the target
group. The campaign hopes to create a motivation for the consumer to therefore stimulate action within the target audience.
The consumer 'expects the offer to be available to them when they decide to enquire, experiment or make a repeat purchase'
(Fill, 2009). The pull strategy requires the brand to allocate a large proportion of funds to advertising, this is especially so
when using mass media and sales promotion.
 Pizza Hut aims at attaining the objectives of the pull strategy by using television and internet advertising. These advertising
forms are seen as very credible examples of mass media as they have the ability for mass penetration which in turn reduces the
unit cost of the advertising. This above-the-line communication is accentuated by the use of sales promotions which is a
below-the- line communication. Sales promotion which is another aspect of the pull strategy, it's aimed at creating a demand
for the product in the consumers psyche, this creation of a want/need increases the likelihood of a purchase.

7. Conclusion
Pizza Hut has many targets which it has achieve in a given period of time. The time-period is mostly a year. Therefore, in order to
fulfil the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and
there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets.