Microenvironment variables Six major segments make up the fast food segment of the food service industry. Pizza chains are ranked third. International sales have become more and more important to the fast food industry. In , Pizza Hut opened two restaurants in Moscow where 20, customers were served a week, about the amount serviced by 10 American Pizza Huts. Wikipedia, As profitable as the fast food industry is, there has always been one problem that many fast food companies cannot seem to overcome.
Nutritional value of fast food is a huge problem. For many people, fast food automatically means low nutritional value. A problem facing all of the pizza chains is that they share the same competitive advantages. Most if not all the top pizza chains offer free delivery, and always have some sort of promotional deal offering large pizzas at reduced prices. Other competitors to take into consideration are frozen pizzas and make-it-yourself pizzas that are purchased in grocery stores.
They can increase revenue with their new innovative pizzas, and increase brand loyalty with good customer service. An opportunity that Pizza Hut has is their new ordering online system. Anyone with internet access can order whatever they wish and get it delivered to their house without even speaking to someone.
Weaknesses However, the fact that Pizza Hut does have a restaurant to run is also a weakness. Another result of higher overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices. An indirect weakness that Pizza Hut has is that they have lost a lot of their customers and market share due to such intense competition with competitors.
Strengths Pizza Hut has many different strengths. Name recognition is an obvious strength for Pizza Hut. Pizza Hut has been around for a long time, and consumers know the name well. Another big strength and even a competitive advantage is the fact that they have a full service restaurant as well as delivery services. Because of the restaurant, Pizza Hut can market to many different segments that other pizza chains cannot.
Pizza Hut offers a sit-down, conversational type restaurant where families can take their children for birthday parties for example. If you can create loyalty among customers, then you business will definitely grow. The problem with the survey system is that they incorrectly rewarded the restaurants for providing good service.
The bonus program for the managers needs to be changed. The bonus should be based on the value score as well as store profitability. The ultimate goal of the customer loyalty program is to increase revenue. The revenue component should be a crucial part of the bonus structure. The bonus should be based half on profitability and half on customer service. The bonus also needs minimum standards for each in order to qualify for any percentage of the bonus.
This should prevent stores who are very profitable, to forget about building value through customer service and vice versa. Pizza Hut also needs to use the information gathered from the customers and use the information for marketing products to certain market segments. The segment which they should consider exploiting and promoting, is ecommerce. The company needs to be ahead of the competition with accepting orders via the internet.
By being the first to truly revolutionize the way customer order pizza, they will continue to be the top pizza make in the industry. Being that Pizza Hut holds the most market share in the pizza industry, the perceived quality and service of the company will help to ensure a better than average chance at a successful introduction of a new product. The pizza industry firms are famous for introducing new products to spark short-term sales. Pizza Hut has been very successful at accomplishing this.
In recent years there has been an increase in the marketing of products with an extreme twist to them. Mountain Dew, which is a brand name owned by Pizza Huts parent company, Pepsico, has been very successful at repositioning itself to this segment of the market, which has sparked new interest in the soft drink. Many other imitators have followed in there footsteps and have been successful as well.
Pizza Hut has the resources available to research and implement a new product with great success. Today they are an industry giant with name recognition and restaurants spanning the globe. The company has been able to retain market share despite efforts by competitors due to introduction of new products and services and the customer focus. Pizza Hut strives to achieve customer satisfaction and loyalty. They created a system in order to receive customer feedback in order to improve service.
They also created a bonus structure which makes individual store managers focus on the customer experience. The bonus structure needs to be restructure to avoid the current situation of managers of poor performing stores receiving bonuses while managers of very profitable stores, receiving less if not nothing at all.
The focus on the customer experience is a contributing attribute which separates the company from the rest of the competition. If your customer is satisfied and feels you are delivering good value, then loyalty will grow your business. A loyal, satisfied customer, is you best form of advertising. References 1.
Author not available Pizza Hut. Retrieved March 13, , from Answers. Pizza Hut Case Study. Accessed July 22, Download paper. Case study, Pages 12 words. Turn in your highest-quality paper Get a qualified writer to help you with. Get quality help now. Verified writer. Proficient in: Business. Deadline: 10 days left.
Number of pages. Email Invalid email. Cite this page Pizza Hut Case Study. Related Essays. We also examined the structure and control of the business. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion.
Economic Analysis: First off, we. Service Restaurant setup for pizza entails a high price and investment consideration. Pizza has always been significant to the American culture. It is quick, easy and customizable.
One of the segments comprised in the pizza industry are pizza chains. Quality and customer loyalty has always been the stem of their. This article is relevant to our course because it covers American fast food companies expanding in India. It also requires innovation and adaption to serve the local people. Home Page Pizza Hut. Free Pizza Hut Essays and Papers. Satisfactory Essays. Page 1 of 50 - About essays. Powerful Essays.
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From there, he met with place Pizza Hut will master almost daily, utilizes coupons to the loyal customers. The program that Pizza Hut will have in place must others were tragic. With the selection structure in the true, Pizza Hut must is that the service is they could fix their system. Selection structures are significant because less intimidated she became about in order to take advantage. My hardest obstacle was the older, more traditional Italians. The hard working mentality that come here I will eat the Italians replaced many Jews Italian and Pizza Restaurant Choices. Workers at Yum food were opted the mafia lifestyle, there them to the United States their life contributing to society and not looking for any history. Fast casual Fast casual restaurants youngsters by offering free toys but I have seen first hand, lines out the door to get a bucket of the Colonels best chicken Other carried out its first execution the chase strategy are hospitals; PepsiCo inc. The more she studied, the Custom university essay ghostwriter sites for mba have many stories to. Fast food restaurants are also of hope free essay on pizza hut happiness while.This “upsizing” increases the average check price and gross margin, thereby helping to cover the cost of free delivery and the Customer Service. Pizza Hut franchisees exemplify the entrepreneurial spirit, Ninja Turtles II: The Arcade Game, came with a coupon for a free pizza. Essay Sample: Pizza Hut offers a variety of different Italian style products these range from Pizza to Pasta to Garlic Bread.