[MKT420] MARKETING MIX 4P'S_PIZZA HUT

Summary

This presentation delves into the marketing mix of Pizza Hut, focusing on its product variety, pricing strategy, location decisions, and promotional efforts. Pizza Hut's success is attributed to its innovative approach to marketing, including offering seasonal pizza options, using a skimming pricing strategy, and reaching a wide audience through strategic partnerships and effective advertising. With over 440 locations in Malaysia alone, the company focuses on providing convenience through various formats like restaurants, delivery, and express outlets. Pizza Hut's adaptability and dynamic marketing mix ensure it remains a global leader in the pizza industry.

Takeaways

• 😀 The 4Ps of marketing (Product, Price, Place, Promotion) are essential elements in promoting a product or service.
• 😀 Successful marketing strategies need to be revisited and refined over time to adapt to changes in the product and market.
• 😀 Pizza Hut's origin dates back to 1958, when two university students in Wichita, Kansas, started the company.
• 😀 Pizza Hut's first restaurant in Malaysia opened in 1982, marking the start of its presence in Southeast Asia.
• 😀 Pizza Hut's product strategy includes offering a variety of pizzas and the option to customize toppings.
• 😀 Pizza Hut uses a skimming pricing strategy, initially setting higher prices and gradually lowering them to match market averages.
• 😀 Pizza Hut partners with PepsiCo for combo meal offers, targeting students and the working population.
• 😀 Pizza Hut operates in various formats, including full-service restaurants, delivery services, and Pizza Hut Express outlets.
• 😀 Pizza Hut's promotional strategy includes advertising through television commercials, media, and online ads, spending significant amounts annually on marketing.
• 😀 Pizza Hut's competitive advantage lies in its ability to offer both dine-in and delivery services, unlike many of its competitors.
• 😀 By regularly introducing new products and focusing on customer needs, Pizza Hut has remained a top player in the pizza industry, ensuring customer satisfaction and brand loyalty.

Q & A

What are the 4Ps of marketing and why are they important?

The 4Ps of marketing are Product, Price, Place, and Promotion. They are essential as they represent the key elements involved in promoting a product or service, and help businesses create strategies to attract and retain customers. These elements interact with each other and must be adjusted as a business evolves.

What advice is given regarding the 4Ps in a marketing strategy?

It is advised that any successful marketing strategy must be revisited periodically. The 4P strategy is not static; as products evolve and consumer preferences change, businesses should refine and adjust their approach.

Can you explain the background of Pizza Hut?

Pizza Hut was founded in 1958 by brothers Frank and Dan Carney in Wichita, Kansas. It started as a small pizza joint and quickly grew after opening its first franchise in Tokyo. By 1986, Pizza Hut had become the largest pizza company in the world with over 11,000 restaurants across 90 countries.

How did Pizza Hut come to Malaysia?

Pizza Hut entered Malaysia in 1982 when it opened its first outlet at Yochuan Plaza in Kuala Lumpur. It was initially owned by Cerebus, a Singapore-based company, which later sold the franchise to KFC Holdings in 1995.

How did Pizza Hut get its name?

Pizza Hut got its name from the building in which the first restaurant was established. The building had a sign with space for only nine characters. A family member suggested the building looked like a hut, leading to the name 'Pizza Hut'.

What types of products does Pizza Hut offer to its customers?

Pizza Hut offers a variety of pizzas with customizable toppings. They also create seasonal pizzas, such as the Kari Raja pizza during Eid, to cater to specific occasions.

What pricing strategy does Pizza Hut use?

Pizza Hut uses a skimming pricing policy, where they initially price new products higher than competitors and then gradually lower the price to match the market. This creates excitement and positions the product as high quality. They also offer combo deals in partnership with PepsiCo, attracting budget-conscious customers.

What types of Pizza Hut locations exist in Malaysia?

Pizza Hut in Malaysia operates three types of outlets: Pizza Hut Restaurants, Pizza Hut Delivery, and Pizza Hut Express. Each caters to different consumer needs, offering dine-in, delivery, and quick takeaway options.

How does Pizza Hut promote its products?

Pizza Hut promotes its products through a variety of channels including TV commercials, print media, online advertisements, and sponsorships. They allocate a significant budget, approximately 10 to 12 crore annually, for advertising, especially targeting younger audiences.

What are the key factors that contribute to Pizza Hut’s success?

Pizza Hut's success can be attributed to its competitive pricing, high-quality products, and effective marketing strategies. The company has also expanded its reach through a combination of full-service restaurants, delivery services, and innovative product offerings. Additionally, their ability to regularly introduce new products has helped them stay at the top of the industry.