Marketing Strategy For Pizza Hut

Marketing Introduction

What define Marketing? According to Philip Kotler (1985) “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” There are many existing marketing concepts and strategies such as:

1. Phillip Kotler’s 4Ps Marketing Mix – Product, Price, Promotion, Place

2. Porter’s Generic Strategies – Cost Leadership, Differentiation, focus

3. Kenichi Ohmae’s 3C Model – Customer, Corporation, Competitor

Article Introduction

I have selected an article published on the Guardian International: life and style section on 11 November 2014 to discuss on. The title of the article is “Pizza Hut cooks up a new menu and modernized branding

In Table B, we can see that Pizza Hut closest competitor Dominos is making very healthy sales growth. The Washington Post (2014) stated that one of the main reason is the company effective strategy to introduce in some of its U.S. stores the concept that allows the customer to see their pizza freshly made before their eyes. The model which Domino has named “Pizza Theater” has help it emphasizes its pizza freshness and quality, thus increasing its sales volume. For Pizza Hut, it can look into offering personalised crusts and toppings selections of high quality, and/or creating unique delivery or ordering platforms with technology. The title of a differentiator is obtainable by Pizza Hut given proper

Brands CEO, David Novak indicated that they are looking to “better connect with millennials”. By using demographic segmentation, it has chosen to focus on the millennials which is a good choice as research done on this group shown great potential.

A research collaborated by (Smart Flour Food and The Center for Generational Kinetics, 2015) revealed that Millennials have a considerable influence on the pizza industry. Among the 1,004 people in U.S. interviewed, 63% of the pizza lovers are women and among these women, 41% are millennials. The research also indicated that within a few years’ time, the millennials will be the largest group of consumers in this marketplace.

We can see from this article that Pizza Hut had put in place its strategies for its target segment by its intention to introduce numerous toppings and crusts for the consumers to personalise their own pizzas at all their U.S. locations. Its strategies are backed by research conducted by (Technomic, 2016) on consumers who are more inclined towards innovation and personalisation, had shown a 7% increase from 32% in 2014. These 39% of consumers also indicated that in order to create a good pizza, new and innovative toppings are extremely important, that unique toppings are becoming an increasing factor in their decisions