Designing Informative and Logical Strategies in Marketing Plan - Case Study Example

Student name: Institution: Subject: Date: Facilitator: Marketing Report of Pizza Hut: A fast Food Industry Introduction Pizza Hut offers a variety of styles of pizza together with side dishes such as garlic bread, buiffalo wings, pasta, breadsticks and salad. It is a wholly owned subsidiary dealing in restaurants industry, as was founded in 1958 Wichita Kansas by Dan and Frank Carney. The industry has its headquarters located Plano, Texas. Pizza hut deals in different kformats of the restaurants which include, store-front delivery and carry-out locations, original family-style din-in locations and hybrid locations that in corporate options of dine-in, catrry-out and delivery. The industry has vantages of red roofs locations which are constructed and available in many locatiokns within the united States and a few in Australia and United Kingdom. Overview of certain strategic documents 2011 Annual Report According to 2011 annual report, the industry established a gowth of 14% in the EPS which did not include special items, but which delivered a remarkable ten consecutive achievement of EPS growth above the set annual target of 10%. This is reported to be as a result of the increase in system sales of 7% before the translation of the foreign currency, and which came out as the bexst performing retail developers of units in other restaurants which are not within the USA. The industry, according t6o what I found ut in its 2011 annual report, realized $ 1.3 billion as neet income, recording $ 2 billion from the operations in cash. According to the chairman who is also the chief executive officer, their share price increased by 20% in the whole year, exceeding the the 2010, 40%. Tuhe recorded dividend increased by 14% as the annunal dividend per share rate calculating $ 1.14, wwith the exclusion of special items and before foreign currency conversion. The realization of the solid cash flow establishments owes its existence to the industry’s undertaking of a disciplined financial framework in capital deployment (GUMPERT, 1996). Social charter Given the status of Pizza Hut of Being a multinational organization and industry, it designs itgs marketing plan in fuoll consideration of the consumers aty the local market and splits the market into groups ibn relation to their demographic compositions and variables; including aspects of thbe size of the families, occupation, income, and occasions segmentation. It also ensures consistency with the individual countries social and cultural norms, religiobn, values, and beliefs which have the possibility of affecting the organization in its marketing strategy and plan. Customer service charter pizza hut operates on the basis of customer satisfaction, meeting their needs at every possible length. The company deploys resources into research to establish customer preferences as determined by the changing environments and concepts. The customers feedback are analysed for purposers of responding to what they need. This forms the framework of the company’s development of new product and innovation. CHAMPS as designed kby the company, describes the core standards of the customers’ needs. These are; Cleanliness, Hospitality, Accuracy, Maintenance, Product and Speed (GUMPERT, 1996). The company adopts a measure system that it uses in to ascertain service Consistency and the quality of the product jto be in line with customer mania program. Code of practice The company is cvommitted to uindertaking itvs business in a manner that is letgaal, ethical and socially acceptable. This therefore stresses the need to operate in full compliance of the klaw, that regulates the way suppliers conduct their businesses. The suppliers must all act in law abiding way, regulations and codes but not specific to any state, federal or local laws as regards to benefit and wages, workmen’s compensation, worker and product safety, hours of working, and eq-ual opportunity(Gitman & MCdonell, 2009) . The suppliers musut also act in full complinances to the indusry’s published standards. The employment practices of the company inhibits ovwerworking of employees, discrimination, child labor, indentured and forced labor. ,inspections and auditing are expected of suppliers to ensure that contractual and legal standards are observed plus the codes dictating the the product quality. Pizza Hut Mission statement ‘ we take prideWe 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 teammembers opportunities For Growth, Advancement, And Rewarding Careers in a Fun, SafeWorking Environment. P.E.A.R.L.S: Passion for excellence in undertaking everything. Execute with the positive urgency aand energy. Accountable for growth in the satisfaction of the customer and profit making Recognize the achievement of other people and enjoy doing that Listend and most essentially respond to the customer’s needs,. Vision statement Not just good…….not just great……. But THE BEST To be the best hospitality business anywherte in the world……. The best branded restaurant The best delivery business The best franchise network The best food, service assets and the values The best families Comments supporting the mission statement David Novak (chairman & CEO)….. ‘we are moving a tremendous success in the African continent, identifying every little effort and passion to build off our base in south Africa of 656 stores. We began business in Kenya, Zambia and Ghana in 2011 aaand our plan is to invest in seven more countries 2012 in the process of enlarging the presence okf our equity and increasing the number of units in south Africa. In general, we haave a plan of establishimmmbng restaurants thaaat provide better customer quality in 20 African countries.’ The organization’s current positioning strategy Pizza Hut has undertaken a positioning strategy in which the customers have developed certain .levels of preferences to the pizzas, pastas, the salads and many other products it offers to consumers. This positioning is to help the organization cope with the other competitors such as little caesars, domino’s, papla John and many others. PizzaHut has differentiated itvs positioning starategy as ‘pan pizza’ thee company uses tuhe term ‘customer mania’ to illustrate the significance of the customer to the products it sells. That the satisfaction of the customer is the company’s driving force. The organization has traversed the whole world taking place in franchising business and establishing numerous restaurants. Its current strategy is to reach out to many countries found in both Africa aand Europe and to establish a solid customer base in those countries. Itgs success so far is limjminent as it can be seen that it has overtaken other competitors at both bthe local and international levels. Its strategy of presenting its products at the time and place where the customer needs it has made it more popular, and also its refine d products and newly developed products have taken the market by storm. It has built a solid reputation in customer service and continues to enjoy a larger cchunk of the market share. The affordability of the pizza has also been improved by the pizza Hut since the customers can have a selection of their affordable quantity and taste, wwhile bearing in mind uncompromised quality. SWOT analysis Strengths It has a name recognition that is associated with the product it majorly offers. It is the first mover in the industry, therefore enjoying the pioneer advantage It has an advantage of competition but with an expansive network of full delivery and full service restaurant. It offers broad product selection, targeting a vauriety of customer segmnents. It has a solid franchise nnetwork. Weaknesses The large number of restaurants it operates subject the organization to large overhead costs. Pizza’s are highly priced limiting the customer range. The numerous franchisees experience internal conflicts. Opportunity More innovative pizzans lead to high revenue Good customer service that entails immediate and effective response to the consumer demands has increases the brand loyalty. Pizza Hut posses huge expansion scope due to itcs new ordering system which is done online Its ohome delivery enables Pizza hut to identify and enter new markets. Threats Competirtion from fast rising and injhnovative ccompetitors like Domino. Itfs differentiation strategy is often adopted by the other pizza industries, and this brings the cost of finding out new products that may attract the customers’ preferences. A competitor offering the same pizza flavours and quality is pizza Hut’s real threat. How Pizza Hut operates Like I identified in the first instance, this company operates in different formats: in the dine-in locations, customers select what kind of pizza they would like to have and order and sit within the restaurant to eat it. In the caary-out restaurants, customers can only buy and take away without sitting down to eat. Carry out and delivery by order take place in onne same restaurant format. However, there is a hybrid pizza Hut restaurants where customers can either take away, order delivery or dine-in. This organization has its top managers situated at the ‘headcquarter, Plano, Texas who coordinate the business allover the world through the management of individual restaurant jmanagement. These restaurant managers are expected to submmitt their financial report and accounting. Changes that have taken placwe in the last 5 years The organization has increased its delivery orders through the incorporation of online ordering. There have also been great improvements in the manner pizza Huy handles itvs employees mostly when it comes to rewarding hardwork, which has inculcated recognition and a sense of responsibility. It has also promoted the daily low prices. For instance it introduced “big eats, tiny price” menu in 2009 in which small items were offered at $5 only. Tuscani Pasta menu was also launced in 2009 Marketing objectives to counteract the new fast food environment. To appeal to the consumers that the type of pizza that pizza hut produces do not actually pose deadly influence of obesity and other associated illness, by promoting a new innovation of pizza that has low fat contents. To appeal to the consumers that eating pizza, is not seeking obesity and other lifestyle diseases but it is actually refreshing balancing the nutritional requirements of a healthy living. Objective evaluation The idea that pizzas are a type of food that is obesity welcoming has set a particular precedence in which people have started fearing their consumption. To help pihzza hut unfold this problem a marketing objective should focus on offering to the consumers a product that will not affect them healthwise (Gitman & MCdonell, 2009). In this regard the industry will be doing a lot of work and research to reduce the fatty levels in pizza and project a new innovation to curbing the problem. This decision is a long time one that must be in line with the ethical standards and which averts saying what should be there rather than giving what is needed. These marketing objectives will help the consumers to determine the right type of pizzas they should eat as opposed to the right pizzas that should be developed. Key performance indicators(KPI) High levels of purchase Increased rate of cconsumption\ The company’s ability to deliver the objective It is neither a tale nor a little story that Pizza Hut has traversed the whole world, creating franchisees and developing many restaurants inunited States, Europe, Asia and Africa.this success speaks for itself even in the consideration of the company’s historic path of business (Tidd & Hull, F. M. 2007). Because of this, I feel quite sure that resources of achieving the above objectives are more than readily available. The annual report of 2011 indicated profitability in cash billions. This can be used for rsearch and the eventual delivery of the marketing objectives. The development of the new types of pizzas tells it all that they had managed the past objectives. Long Term Strategic objective To overtake the other serious competitors by providing quality services and products that will lure customers and their preferences. To form a strong solid organizational empire that will increase the reputation of the organization to appeal distinctively to the consumers The objectives KPI Profitability Reputation Risk management strategy The risk management strategy will help the organization to handle the likely ouitcomes of the obesity as a result of eating a lot of pizzas. Hamburger will take advantage of this situation as fast food. This is due to their littlefatty content. I would stress on the fact that it has little fat hence not a cause of obesity and its sugar content is also relatively low. The promotions they a re taking is that low fatty levels or cholesterol does not encourage the sprouting of obesity, hence choosing a product with little or no fats is logical and health friendly (Gitman & MCdonell, 2009) . The objectives of marketing were to deal with the problem of excess fats and proteins. Are the promotions legal/ethical? These promotiokjns are legal and ethical depending on how they are articulated. For first, they should not purpot to undermine tuhe other product under threat as that is unethical and illegal but should only talk about the product itself and how it combats the problem at hand. However, the product has the weakness of making great appeals to consumers as compared to the pizzas in question. Rthe best contingency is to heitghten the levels of its marketing with profound marketing objectives (Tidd & Hull, F. M. 2007). . The new products threat There are ca lot of competition in the market that mnight affect its success and appeal to the consumers. A lot of costs would be incurred in its marketing and promotion which incase it fails to command the market attention and fails to do well greater losses would be realized which may affect its production. Contingencies to the above threat Competitions can be well handled if the organization producing the product becomes more innovative to improve the flavor and quality, providing new product that the customers find lively and refreshing to eat. This may help prevent the marketing c-osts overriding the profits and the output at large. Besides this, good marketing objectives should be set to make the product more relevant in the face of the consumers. Conclusion. This report focused obn the marketing essentials using Pizza Hut as an example in this case. It is therefore prudent that every organization designs informative and logical strategies in its marketing plan, to increase its relevance and the product’s aoppeal to the consumers. The objects must conform to the organization’s code of practice and the law for puposes of proving the genuity of the product. Good marketing essentials are necessary for a product success. References BRADACH, J. L. (1998). Franchise organizations. Boston, Mass, Harvard Business School Press. GITMAN, L. J., & MCDANIEL, C. D. (2009). The future of business: the essentials. Mason, OH, South-Western Cenage Learning. GUMPERT, D. E. (1996). Inc. magazine presents how to really create a successful business plan: featuring the business plans of Pizza Hut, Software Publishing Corp., Celestial Seasonings, People Express, Ben & Jerry's. Boston, MA, Inc. Pub. SMITH, A. F. (2006). Encyclopedia of junk food and fast food. Westport, Conn. [u.a.], Greenwood Press. TIDD, J., & HULL, F. M. (2007). Service innovation organizational responses to technological opportunities & market imperatives. London, Imperial College Press. Read More