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HERE HERE YOUR HERE HERE Pizza Hut: Target Market and CRM Pizza Hut market segmentation approaches that are the most relevant are segmentation through psychographics, in terms of identifying with lifestyle characteristics. Additionally, segmentation by household type is appropriate. These were chosen as most appropriate for its pizza products for two distinct reasons: First, Pizza Hut uses very high quality ingredients that are designed to satisfy the discriminating appetite especially over that of competition.
Under the VALS2 Network, the most appropriate market segments are those who are status oriented and maintain characteristics of image-consciousness, who are attracted to products with premium aspects, and are relatively affluent (Boone & Kurtz, 302). Pizza Hut is priced much higher due to its quality focus and satisfies this market over lower-income customers. Secondly, Pizza Hut is well-known for its family-focused in-house dining capabilities that appeal to large groups in the nuclear family structure (Huynh, 4).
This is a unique characteristic of Pizza Hut over competition that appeals to families looking for quality meals for dine-in purposes. Pizza Hut is widely dispersed geographically across the world, therefore geographic segmentation or demographics are not very effective. The following is a positioning strategy for Pizza Hut using psychographic elements: Pizza Hut pizzas are positioned under price/quality dimensions. An appropriate slogan for the products might be Pizza Hut: Incredible ingredients for a more luxurious pizza experience for the discriminating client.
Forget the other guys and tap into high quality at Pizza Hut. This positioning strategy reinforces that the price tag, which is approximately three to five dollars over that of competition for a large pizza, is worth the experience and will meet the needs of segmented customers that are image conscious and sustain the resources needed to pay premium prices for a premium pizza product. Pizza Hut already sustains advantages with its current customer relationship management focus. The Internet is one technology that currently provides Pizza Hut with registration data for customers interested in placing their orders online and also gives them geographic and demographic data associated with age and city of origin.
Additionally, Pizza Hut is able to make improvements on their products based on in-store surveys and questionnaires that are available at the table for review during the customer’s eating experience. This gives them hard data to make internal improvements to decor, product quality, and even menu variety. Pizza Hut is also able to use CRM software to track coupon and incentives redemption, something found already on their main website (pizzahut.com, 1). It allows Pizza Hut to maintain interactive relationships with customers and also send different coupon offerings to user’s e-mail inbox whenever new deals or new products become available.
By staying in touch with customers across the globe and domestically in this fashion, Pizza Hut has managed to sustain the highest market share in the world above all other competition. The business creates in-store and virtual relationships that keep customers loyal to the brand and its many diverse product offerings. Bibliography Boone, L. & Kurtz, D. Contemporary Marketing, 12th ed. (2007). Thomson South-Western. Huynh, H.M. “Creative Brief: Pizza Hut – One delivery, multi-value campaign”. (2009). Accessed March 9, 2011 at http://www.
hmhcreative.com/data/Pizza%20Hut%20-%20Ad%20Campaign%20Proposal.pdf Pizzahut.com. “Your Favorites, Your Pizza Hut”. (2011). Accessed March 10, 2011 at http://www.pizzahut.com/pizza.html
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