Group Name

The Incredibles

INCREDIBLES
 Topic
Pizza Hut Introducing Frozen Pizzas

Submitted To
Mam. Sarwat Kazmi

Submitted By
Sundas Ramzan
Sahar Mehboob
Anum Waheed
Shayan Latif
Saffi Ullah
Harris Arshad Abbasi
Usman Rafiq
Saad Qureshi

Due Date
22-05-2009

COMSATS Institute of Information Technology Islamabad

INCREDIBLES
 ACKNOWLEDGEMENTS

It is HE who holds the time and regulates it. Without His support nothing is

possible. Hence it is a moral duty to recall him and offer thanks to Him.

“THANK YOU ALLAH”

for being so kind on us.

Thanks are due to our respected teacher MADAM SARWAT KAZMI who

taught us the right way of making a project, yet THE INCREDIBLE share the

appreciation for efforts laid to come up with such an informative project, thanks to

each of them for their interest, assistance and support in preparation of this report.

PIZZA HUT Website, Wikipedia, Google and others were taken. Thanks to the

creators of those sites which made it possible to gather that extensive data.

DEDICATION

TO OUR PARENTS WHO MADE US CAPABLE OF

ACHIEVING WHAT WE DESERVE

INCREDIBLES
 Table of Contents:
Name of Topic: Page#
1.) Mission Statement..................................................................
2.) Product Oriented Mission……………………………………………..
3.) Current Market Situation……………………………………………… 1
3.1) SWOT Analysis………………………………………………..…. 1
4.) Strategic Planning……………………………………………………… 2
5.) Company’s Mission Statement……………………………………… 2
6.) Product Oriented Mission…………………………………………….. 2
7.) Market Oriented Mission……………………………………………… 2
8.) Company Goals & Objectives……………………………………… 3
9.) Business Portfolio……………………………………………………….. 3-4
10.) Product Life Cycle…………………………………………………… 5
11.) BCG Matrix……………………………………………………………. 6
12.) Marketing Strategy………………………………………………….. 7
13.) Marketing Process…………………………………………………… 8-13
14.) Market Segmentation………………………………………………. 13
14.1) Choosing a Target Marketing Strategy………………... 13-14
15.) Product Positioning………………………………………………….. 14
15.) Choosing a Positioning Strategy…………………….. 14-15
15.2) Selecting an Overall Positioning Strategy…………….. 15
15.3) Positioning Statement…………………………………….. 15-16
16.) Marketing Research………………………………………………… 16-17
17.) Marketing Research Process……………………………………… 17-19
18.) Pricing, Promotion & Distribution Strategies……………………. 19-21
19.) Promotion Strategies for our Product........................................ 21-22
20.) Distribution of our Product………………………………………… 22-24
21.) Control…………………………………………………………………. 24
22.) Summary & Conclusion…………………………………………….. 24
23.) References……………………………………………………………. 25
24.) Annexure……………………………………………………………… 26-28

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 Company Mission Statement:

“We take pride in making a perfect Pizza and providing courteous and helpful
service on time all the time”. Every customer says; “ I will be back”.

Product Oriented Mission:

“We take pride in making marvelous frozen pizzas and providing our
customers wholesome nutritious value making the blend of technology that
strengthens pizza’s traditional taste”.

INCREDIBLES
 3) CURRENT MARKET SITUATION
By looking at the present situation of the market 40% customers are willing to buy the
Frozen Products and the rest 60% are not willing to buy Frozen Products, because they don’t
have enough knowledge about the Frozen Products.
So according to the current situation of the market we have to do such kind of work through
which we can create awareness among the customers who are not willing to buy the Frozen
Products.

3.1) SWOT Analysis:

It is very important for an organization to understand its internal and external environment
.SWOT analysis help an organization to understand its internal and external environment
SWOT is an abbreviation of strengths, weaknesses, opportunities and threats respectively.
SW (strengths, weaknesses) of SWOT helps an organization to analyze its internal
environment and OT (opportunities and threats) of SWOT helps the organization to analyze
its external environment.
SWOT Analysis of Pizza Hut:

Strengths:
 Part of the largest restaurant chain in the world and enjoying a sound market share.
 Innovative range of Pizza’s under one roof.
 Their Food attracts people of various range from young to old.
 Over 20,000 franchises around the world.
 Famous television advertising.
 Sound financial and international turn.

Weaknesses:
 Loyal customers are feeling that the satisfaction of the pizzas is declining.
 There are complex computer systems and internal conflicts from franchises.
 There is a lack of an organic pizzas, which will limit the target market.

Opportunities:
 New Pizzas with different crust sizes and flavors.
 Pizza Hut expands Pakistani market menu.
 Pizza Hut targets upscale products and a downscale consumer base.

Threats:
 Rising competition undermines Pizza Hut as consumers go for greater convenience.
 Rising cheese costs threaten margins.
 Threats from their competitors Dominos Pizza, and in Pakistan threat from Papa
Sallies.

(1)

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4) Strategic Planning:
Each company must find the game plan for long run survival and growth that makes the most
sense given its specific situation, opportunities, objectives, and resources. We can say that
strategic planning is the process of developing and maintaining the strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.

Strategic Planning With Reference To Our Company and Product:

This planning has been done to describe Pizza Hut and introduction of a new product called
“Mystic Frozen Pizza”. A brief company mission statement and a product mission statement
is provided at the beginning, a SWOT analysis has been done to identify Pizza Hut’s
Strengths, Weaknesses, Opportunities and Threats. So that these factors can be taken into
consideration in deciding either or nor to launch the new “Mystic Frozen Pizza”. Some of our
key marketing plans is to set our annual plans, long range plans. Like Pizza Hut should
introduce new flavors with the passage of time and it should focus on its current business and
it should continue to develop more and more flavors with the passage of time so that their on
going business should keeps on growing. We have also taken advantage of the existing
opportunity like up till now no body has introduced Frozen Pizza in Pakistan, and Pizza Hut
has taken advantage of this opportunity and the second thing is that we have targeted the
children’s and middle age people which is the fastest growing segment in Pakistan.

5) Company’s Mission Statement:

“We take pride in making a perfect Pizza and providing courteous and helpful service on
time all the time”. Every customer says; “ I will be back”.

6) Product Oriented Mission:

“We take pride in making marvelous frozen pizzas and providing our customers wholesome
nutritious value making the blend of technology that strengthens pizza’s traditional taste”.

7) Market Oriented Mission:

As we aim to introduce new product. So we are preferring to use product oriented mission.

(2)

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8) Company Goals and Objectives:
Pizza hut holds the most market share in the pizza industry, the perceived quality and
service of the company. Pizza Hut has the resources available to research and implement
a new product with great success. It has following goals and objectives:
 To constantly increase sales and market share.
 To provide superior customers service along with the highest quality product
availability in pizza industry.
 To encourage employees to satisfy their customers wants and needs at any cost.
 To offer several specialized pizzas, along with a menu that exceeds other
businesses in the pizza industry.

To accomplish them:
 Pizza Hut maintains the goals of having at least 7% operating profit growth per
year.
 It also strives to have at least 1-2% same - stores sales growth.

9) Business portfolio:
PIZZA HUT has divided its business into following divisions
 Consumer Product Division
 International Marketing Division
 Ethical Marketing Division

We are discussing only Consumer Product Division in detail:

Consumer Product Division:

 Pizza’s
1. Stuff crust pizza
2. Dippin strips
3. Pizza mia
4. The natural
5. Thin n Crisspy pizza
6. The Edge
7. Hand Tossed
8. Pan Pizza

(3)

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 APITIZERS
1. Garlic Bread
2. Garlic bread with cheese
3. Garlic mashrooms
4. Breadstick
5. Breadstick with cheese
6. Soups
7. Chicken wings
8. Potato skin

 PASTA’s
1. Chicken Pomodoro
2. Fettuccini Alfredo
3. Chicken Fettuccini Alfredo
4. Spaghetti and Meat Sauce
5. Spaghetti and Tomato Sauce
6. Meat Lasagna

 SALAD’s
1. Warm Spinach Salad
2. Garden Salad
3. Greek Salad
4. Caesar Salad
5. Grilled Chicken Caesar Salad

 BEVERAGE’s
1. Soft Drinks
2. Juices
3. Milk (2% or chocolate)
4. Coffee
5. Tea
6. Hot Chocolate
7. Bottled Bear
8. Red or White wine

(4)

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10) Product Life Cycle:
Sales and profits

Product Introduction Growth Maturity Decline

Development

Losses /investment

Justification:
As we are launching new product, we are following Introduction Stage in which the new
product is first distributed and made available for purchase. We are providing our valued
customers same taste, quality Mystic Frozen Pizza by high distribution and promotion to
inform our consumers about our new product and get them to try it.

(5)

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 11) BCG Matrix:-

STARS QUESTION MARKS

Chicken Tikka Supreme Mystic Frozen Pizza

Dippin Strips Garlic bread with cheese
Chicken Fajita and Salad
Salad

L CASH COWS DOGS

HIGH Soups Bread stick Garlic

Pastas Spaghetti
Lasagna
Supreme Pizza

LOW

HIGH LOW

Our Product Lie in Question Mark category which require a lot of cash to hold market
share where our market growth rate is high.

(6)

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12) Marketing Strategy:
Currently Pizza Hut is following the marketing concept which holds that “ achieving
organizational goals depends on knowing the needs and wants of the target markets and
delivering the desired satisfaction better their competitors”.
Their job not to find the right customers for your product, but to find the right products
for our customers.
We will base our Marketing Activities on the following concepts:

Product Concept:
Product concept states that “the idea that consumers will favor products that offer the
most in quality, performance and innovative features”.
We are continuously focusing on this concept by providing attractive designs, packages,
prices, convenient distribution channels and convince our buyers, that what they buy is
better product. This creates value and satisfaction in them.

Selling Concept:
Selling concept states that “consumers will not buy enough of the organization’s product
unless the organization undertakes a large scale of selling and promotion effort”.
As we are going to introduce new product in the market, so we have decided to choose
this marketing strategy. We will promote large scale selling and undertake promotional
efforts by crating awareness among buyers about the product nutrition’s and delicious
qualities. To attain this , we will prefer door to door selling’s, fliers on college campuses,
repeated advertisements on television and radio, billboards to create identity, use of
broachers to enhance sales and promotion of our product.

Societal Marketing Concept:

It is a great pleasure for us that we are following this concept with full sincerity and
dedication.
We are delivering value to our customers in a way that maintains the consumer’s and
society’s well being.
We are meeting high standards of good quality. Our product consists of complete
nutritious diet which is tasty and convenient food at reasonable price, not rich in fats and
is free of artificial colors, flavors and ingredients. By making financial donations to
register charities that provide food and shelter to the needy, we hope to fulfill our
obligation towards them.

(7)

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13) Marketing Process:-
Marketing process is the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers in return.
Its five steps of building customer relationship and to get value from them in return are as
follows:

1) Understand the marketplace and customer needs and wants.

2) Design a customer driven marketing strategy.
3) Construct an integrated marketing program that delivers superior value.
4) Build profitable relationship and create customers delight
5) Capture values from customers to create profits and customer equity
In our project we used these aspects of the marketing process in the following way.

Understanding the Marketplace and Customer Needs and Wants:-

To understand the marketplace and customers needs and wants we carried out some
research, in this research we followed these steps:

1) Defining the problem and research objective

2) Developing the research plan for collecting information
3) Implementing the research plan for collecting and analyzing the data.
4) Interpreting and reporting the findings.
We used these steps in our research in the following way:

1) In the first step we set our research objective to understand the customer’s needs and
wants so as to make our product worthy for them.

This research is of two types:

a) Exploratory research: it is the marketing research used to gather preliminary

information that will help define problems and suggest hypothesis.
b) Descriptive research: a research which is done to better describe marketing
problems, situations, or markets, such as the market potential for a product or the
demographics and attitudes of the consumer.

In this part of our project we had done Descriptive research in order to check the market
potential the demographics and the attitude of our customers.

(8)

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The second step is developing the research plan and collecting
information:
This part consists of two parts.
A) Gathering secondary data:-
To collect information that already exists somewhere, having been collected for another
purpose.

B) Gathering primary data:-

Information collected for the specific purpose at hand.

In gathering primary data so many research approaches can be used

1) Observational research:-
The gathering of primary data by observing relevant people actions and situations

2) Ethnographic research:-
A form of observational research that involve sending trained observers to watch and
interact with consumers in their natural habitat

3) Survey research:-
Gathering primary data by asking people questions about their knowledge, attitude,
preferences and buying behavior.

4) Experimental research:-
Research in which we gather primary data by selecting matched groups of subjects,
given them different treatments controlling related factors and checking for differences in
group responses.
In our project we used survey research to understand the needs and wants of our
customers. In this research we divided our customers in to five different parts to complete
the survey, these are as follows:

1) PROFESSIONALS 2) TEACHERS

3) FRIENDS 4) NEIGHBOURS
5) RELATIVES

(9)

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5) Implementing the research plan collecting and analyzing the data:
In this part of our project we collected the required information needed for the
development of our product which was done by using the questionnaire filled by our
costumers.

6) Interpreting and reporting the findings:

In this part of our project we interpreted the gathered information from the customers and
checked the results which show the needs and wants of our customers that what they
want.

In this research we discussed the introduction, flavor and tagline of our product and
checked the response of our customers whether they accept our product or not and most
of the result was positive toward our product and its features.

7) Design a Customer Driven Marketing Strategy:-

While designing a customer driven marketing strategy these things must be kept in mind.

Market Targeting:-
It is the process of evaluating each market segment’s attractiveness and selecting one or
more segments to enter.
It has two major steps:
A) Evaluating Market Segments:-
In which we determine the size and growth, attractiveness of our targeted market and our
company’s goals and objectives
B) Selecting Target Market Segments:-
It has four different types:
 Undifferentiated (mass) Marketing: it is a market coverage strategy in which a
firm decides to ignore market segment differences and go after the whole market
with one offer.

 Differentiated (segmented) Marketing: it is a market coverage strategy in which

a firm decides to target several market segments and designs separate offers for
each.

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  Concentrated (niche) Marketing: it is a market coverage in which a firm goes
after a large share of one or a few segments or niches.

 Micro Marketing: the practice of tailoring products and marketing programs to

the needs and wants of the specific individuals and local customer groups. It is of
two types:

 Local Marketing: tailoring brands and promotions to the needs and wants of
local customer groups-cities neighborhoods and even specific stores.

 Individual marketing: tailoring products and marketing programs to the needs

and preferences of individual customer’s also known as one-to-one marketing.

In this part of our project we used Differentiated (segmented) marketing to understand

the needs and wants of our customers.

3) Differentiation and Positioning:-

We are differentiating our positioning our product in the market by providing value to
our customers as we are giving them a good taste of their desire on affordable price and
the quality and distribution of our new product will be as good as possible so that our
product is easily in the reach of our customers.

Construct an Integrated Marketing Program that Delivers Superior

Value:-
In this part of our project we include the four P’s of the integrated marketing mix.
These are as described under:
1) Product 2) Price

3) Promotion 4) Place

In the first P we take care about these things of our product

 Variety should be their in our product as we are providing two different varieties
of our product

(11)

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  Quality as our company is maintaining the quality of our entire products and in
our new product “Mystic Frozen Pizza” we are not compromising on the quality
of our product.

In the second P we considered these aspects of our product:

 Our pricing strategy is according to the affordability of our customers as we kept
our prices low and providing more quality services and product to our customers.

In the third P we are considering these aspects of our product:

 Advertising is carried out through billboards to promote our product properly in
the new market.

 We will create better relationships with our customers and also to other people
around us so that to create a strong and long term relationship with our customers.

In the Fourth P we take these aspects of our product:

 Currently we are introducing our “Mystic Frozen Pizza” in ISLAMABAD only
and then we will extend our product to other parts of the country like LAHORE
RAWALPINDI.

 Then comes its next important aspect which is to distribute our product properly
and on time so that our customers may not face any difficulties.

Build Profitable Relationship and Create Customer Delight:-

In this part of our project we tried to understand the needs and wants of our customer by
the help of our research so that we can properly satisfy them and to create good
relationship with them so that we can create a long term profitable relationship with
them.
In all the four steps above mentioned, we tried our best to create value for customers and
to build strong relationship with them.

(12)

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Capture Value from Customers in Return:-
Now in last stage of our marketing process we will try to capture value from our
customers in return for this purpose we had done all of the above mentioned processes to
gain their attention and to satisfy them and we will hope to these customers as a potential
customer in the future

14) Market Segmentation:-

In Market segmentation we will follow the same procedure as discussed above in the
second step of marketing process so we will discuss it as the same.
It is a process in which we divide a market in to smaller groups with distinct needs,
characteristics or behaviors who might require separate products. These are of four types:

a) Geographic Segmentation:-
In which we d.ivide a market into different geographical units such as nations, states,
regions, countries, cities or neighborhoods.

b) Demographic Segmentation:-
In which we divide a market in to groups based on variables such ass age, family size,
family life cycle, income, occupation, education, religion, race, generation and
nationality. This of three types:

 Age and life cycle segmentation: in which we divide a market into different age
and life-cycle groups

 Gender segmentation: in which we divide a market into different groups based on

gender.

 Income segmentation: in which we divide a market into different income groups.

c) Psychographic Segmentation:
In which we divide a market into different groups based on social class, lifestyle or
personality characteristics.
d) Behavioral Segmentation:-
In which we divide a market into groups based on consumer knowledge, attitude, use or
response to a product. This is of two types:
 Occasion segmentation: in which we divide a market into groups according to
occasions when buyers get the idea to buy, actually make their purchase, or use
the purchased item.

 Benefit segmentation: in which we divide a market into groups according to the

different benefits that consumer seek from the product.

(13)

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From these we divided our market into two types :
1) In demographic segmentation we used its sub part of age and life cycle segmentation
in which we divided our market into different age groups. 06-15 years 16-25 years and
26-35 years.
2) In geographic segmentation we divided our market into two regions ISLAMABAD
and RAWALPINDI.

15) Product positioning:

The way the product is defined by consumer on important attributes, the place the
product occupies in consumer mind relative to competing product.

15.1) Choosing a positioning strategy:

The poisoning task consists of three steps:-
1. Identifying the set of possible competitive advantage upon which to build
position.
2. Choosing the right competitive advantage.
3. Selecting an overall positioning strategy.

Identifying a set of possible competitive advantage:-

Competitive advantage:-
“An advantage over competitors gained by offering consumers greater value, either
through lower price or by providing more benefits that justify higher prices “
A company or market offer can be differentiated along the lines of product, services,
channels, people or image.
Oven hot pizza and by using this our customers are getting fresh and have a hot pizza at
home as well.
We have decided to gain a competitive advantage through
1. Image differentiation
2. Service differentiation

Our company is maintaining good image along with the quality of food and we are
maintaining service differentiation through speedy convenient and careful on locations
that are convenient to the customers. Services are different as for home delivery we are
using.

Choosing the right competitive advantage

We have decided to promote healthy chicken, delicious taste, low price and easy to
use .we are these differences because they are:

(14)

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 1. Important:-
We will deliver a high benefits to target buyers.
2. Distinctive:-
As there are no competitors so this makes the benefit distinctive.
3. Superior:-
The difference is superior to that the customer might obtain the same benefit.
4. Communicable:-
The difference is communicable and visible to buyers.
5. Pre emptive :-
Competitors cannot easily copy the difference.
6. Affordable:-
Buyers can offer to pay for the difference.
7. Profitable:-
The company can introduce the difference profitability.

15.2) Selecting an overall positioning strategy:-

Following are the positioning strategies that a company can choose to position its
product.
 More for more :-
Positioning involves providing the most upscale product or service and charging
the higher price to cover the higher cost.
 More for the same:-
Positioning by introducing a brand offering, comparing quality but at lower
price.
 The same for less :-
Positioning by offering equivalent product at a lower price.
 Less for much less:-
Positioning by offering less for less price.
 More for less:-
Positioning by offering more for less price.

Our positioning strategy is going to be more for the same.

15.3) Positioning statement:-

A statement that summarizes company or brand positioning
Following are the components of positioning statement:

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Target segment and need:-
Professionals and students who avoid cooking and prefer ready made food items.

Brand:-
Frozen pizza

Concept:-
Societal marketing and product concept

Point of difference:-
Healthy and easy to made

So our positioning statement is :

“For pizza lovers who can party at any time with great taste and ready to made pizza”

16) Marketing Research:

In our marketing research we introduced frozen pizzas by “Pizza Hut" by going through
following steps:

Collection of data:
We collected data by survey research method. In this we gathered primary data by asking
people questions about our new product. We also conducted focus group interviewing.

Analysis of the data:

We analyzed the data with the current marketing situation and applied sources to
overcome the flaw.

Sampling techniques:
We drew the sample from large number of people in Islamabad and Rawalpindi
segments.

Sample:
We collected samples from the large areas of Islamabad from G-7, G-8, G-11, F-6, I-9, I-
10, H-8, and F-8 and in Rawalpindi we focused in Saddar, Gulzar-e-Quaid, Adyala
Sector, and Scheme III.

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Size of Sample:
In the above mentioned populated areas we distributed 50 questioners.

Sample Composition:
We have conducted the survey in five main categories and three main age groups:
Following are the main five categories:
 Students.
 Professionals.
 Corporate level.
 Relatives.
 Neighbors.

Age Group:
 6-15
 16-25
 26-35

17) Marketing Research Process:

We use marketing research process to analyze the data which we have collected from the
survey, marketing research process include the following steps.

1. Defining the Problem:

By the survey it was clear that ready to cook food was not available in Pakistan in a large
variety and pizzas we considered to be eaten as fast food or take away only. The main
problem was to introduce a product that could replace ready made pizzas with a product
that was easy to be stored and prepared at home.

2. Developing a Research Plan:

We developed a research plan that was to find out the requirements of the people about
the flavors and sizes of pizza. As well as getting an idea about the taste of the people.
And if the customers want any improvement in the quality.

3. Implementing the research Plan:

After defining the problem we will start collecting the data through the survey and
analyze the data this process will be done with the help of our special team that will guide
us in taking marketing decisions on the basis of the survey conducted.

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4. Interpreting and Reporting the Findings:

Following are the results which we interpreter after analyzing questionnaires:

Question # 1
Would you like to prefer frozen pizza by pizza hut?
Yes No
60% 40%

Question # 2
Which flavor would you like to prefer in the form of frozen pizza?
Chicken Chicken
tandoori tikka Chicken fajita
22% 48% 28%
Question # 3
Which type of packing do you prefer?
Soft
packing Hard packing
38% 62%

Question # 4
Which type of base do you prefer in frozen pizza?
Soft thick Thin hard
82% 18%

Question # 5
How you find the idea of Pizza hut introducing frozen pizza?
Positive Negative No Comments
70% 10% 20%

Question # 6
How the tag line “yumz! share the freshness” sounds like?
Good Bad No Comments
68% 18% 14%

(18)

Overall feedback

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 No
Positive Negative comments
66% 22% 11%

18) Pricing promotion and distribution strategies:

Our product is a new product so we have used only one of these market pricing strategies.
 Market skimming pricing
 Market penetration pricing

We have chosen market penetration strategy:

We have chosen market penetration strategy as we know we do not have any specific
competitors for frozen pizzas in market.
So in order to attract the customers we shall have to go for lower price to attain the higher
market share. We have not used market skimming strategy because our big competitor is
"PAPA SALLIES” and they are quite strong because of this they have got a strong hold
on market share and if they launch our type of product they can easily grab our
customers. If we used the skimming strategy then the customers according to Pakistani
buying trends would not even consider looking at the
Product in the beginning yet when we will reduce the price we might think that there was
something wrong with the product. That is why we have reduced the price.
Therefore we decided to go with the penetration strategy. Once we have penetrated into
the market and gain some market share then we intends to increase the price of our
product to level our product competitors.

(19)

Price adjustment strategies:

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After penetration of our product in market we adopt further strategies. We used price
adjustment
Strategies to adjust the price of our product, There are six price adjustment strategies.
1. Discount & allowance pricing.
2. Segmented pricing.
3. Psychological pricing.
4. Promotional pricing.
5. Geographical pricing.
6. International pricing.
Out of these six strategies we will be using the following pricing strategies

Discount Pricing:
In discount pricing strategy we have used quantity discount strategy for our product in
this we are giving discount on frozen pizzas such as buy two medium size pizzas and get
one small pizza free.

Psychological Pricing:
In general when we see the prices of pizzas they are quite high and in case of our product
frozen pizzas by pizza hut we are giving you the facility of ready to cook food therefore
we are offering an introductory price for our product when we will enter into the market
with the lower price the customer will perceive the cost of our product comparatively less
than the other products this low price may grab the attention of middle class households
who always tries to have quality product in low price.

Promotional Pricing:
We are using promotional pricing on different events like Eid and Ramadan we are
giving special discount packages on these occasions. That will include, with a pack of
four large size pizzas you will get a discount of 25%.

International Pricing:
Since our product is newly launched in the market so we still not decided about the
international market we are still focusing on the domestic market of Pakistan.

Initiating price cuts:

We are going to use initiating price cuts only if our competitor papa sallies introduces a
new product of our type or it lowers its prices to capture the market share.

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Initiating Price Increase:
If in future we find out that our product has a great image and has great value in the
minds of customers and that our product has an edge over other competitors by having
more of a market share then we might consider increasing the price of our product.

Buyer’s Reaction to Price Change:

If we cut the prices the buyers will think that it is an occasional discount or any discount
offer where as if we increase the prices the buyers will think that we are improving the
quality or adding new flavors or deals.

Competitor’s reaction to Price Change:

If we introduce the lower price than our competitor’s product we will capture more
market share but we should be aware of the fact that they might use aggressive market
strategies that may cause problems for our product to capture a market share or even exist
in the market.

Responding to Price changes:

We have to analyze the change in price by our competitors like if they have decided to
decrease or increase their product price just to grab more market share or to crush our
product. In this case we have to make certain adjustments increase our market share.

19) Promotion Strategy of our Product:

Promotion strategy is a key process through which we can create awareness among the
customers. Through this strategy we can launch our product into the market because the
Frozen Pizza has not been launched by our competitors yet, and the second thing is that
the customers don’t have much awareness about the Frozen Pizza. So we have to spend a
lot of budget on our promotion, so that we cam give a lot of knowledge of our product to
our customers. With the help of this we will have a strong grip on market share in the
future.
As our product is totally based on its freshness and the other most important thing is that
it will not take much time to bake through which we can capture a group of people like
the people who are working in an organization living away from their home, and students
who are living in hostels. So our product will give them a taste of just like home made
food. By focusing on our strategy we will grab the market share easily.

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INCREDIBLES
The Strategy:
We have decided to use the both “Push Strategy & Pull Strategy” for the promotion of
our product, because we have to increase our supply of product in the market and also we
have to motivate the customer by boosting them towards buying behavior. We also use
these strategies because instead of buying our product from our outlets the customers can
easily buy it from any departmental store which will help them to save their time. And we
have also decided to use the direct marketing concept.
Following are the strategies we have decided to use for the promotion:

Using Electronic Media:

In electronic media we have decided to promote our product through local television
channels, FM radio stations and through mobile phone sms service. By doing this we can
easily aware our customers about our product and this will bring us maximum result. We
will also promote our product through our company’s own website in which we will give
extra information which is required to our customers.

Print Media:
In this type of promotion we will use the billboards of Islamabad and Rawalpindi; we
will also promoter our product through popular magazines and newspapers. We will use
posters and pamphlets in each and every departmental store and we will also promote our
product among the customers who mostly come to our franchises by doing this we can
easily create awareness of our product among our customers.

20) Distribution of our Product:

After the promotion of our product we have to focus on our distribution process in which
intermediaries will play a vital role to make our product available for the final customers.
In order to done a successful distribution we have to find certain product marketing
channels which will play a vital role in making the product available for the customers.

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INCREDIBLES
Distribution Channel of our Product:
In the distribution of our product we will use the both direct and indirect channel concept,
because we think that

 Direct channel:-
In direct channel the customer can call in our outlets, place an order and that order
will be delivered to customer’s home. In second method of distribution is the online
ordering. Customers can now go on the internet and place an order this method is
useful because it allows customers to view the entire menu, download any special
menu and order without having to disclose any credit card numbers.

 Indirect channel:-
In the indirect channel method for the convenient of our valuable customers we have
decided to distribute in the big super stores like METRO CASH N CARRY, CITY
SUPER Market and some other super store in ISLAMABAD and RAWALPINDI.

Pricing of our Product:

We will use market penetration strategy regarding our product, because we are newly
launching our product in the market. So we have to set a low price of our product (and
there will be no compromise on quality of product) in order to attract to the customers.

Cost of our Product:

By concerning with the prices of all individual ingredients used in the making of our
product. We finally estimated the total price of our product regarding three sizes of Pizza.
Following are the three sizes and their prices are given in the table:

Denomination Price
Small size (6”) Rs 415/- Only
Medium size (9”) Rs 515/- Only
Large size (12”) Rs 725/- Only
Family size (16”) Rs 825/- Only

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INCREDIBLES
Product:
Anything that can be offered to a market for attention, acquisition, use or consumption
that might satisfy want or need. Following are the three levels of product:

Core Benefit:
The core benefit of our product is that it is spicy, delicious, and fresh taste which will
give taste of home made food to the customers.

Actual Product:
We have carefully combined the features, design, packaging, quality level and brand
name to deliver core benefits.

Augmented Product:
At this stage we can only give the guarantee of the quality of our product which will give
the taste of home made food. But in the future when our product will be augmented will
be give certain benefits and incentives.

21) Control:
Our Marketing Vice President in the corporate Headquarters, the local/regional marketing
vice presidents and the Pizza Hut restaurant Management all will play a role is being
responsible for the control. We will also increase profits, sales revenues, unit volume of
the “Mystic Frozen Pizza” promotion used. If our budget allows, we will get the direct
feed back about our new Pizza. On going research is essential for our success we will
improve the quality and distinguish ourselves well from competitors.

22) Summary and Conclusion:

Pizza hut has a successful history of introducing new products to increase sales and reach
our target customers. This introduction of new products to the market on regular basis is
what makes Pizza hut the leader in this industry. The level of success that the “Frozen
Pizza” will bring Pizza Hut depends heavily on the correct promotion mix. As we have
stated earlier, the segment of the market that we have targeted is a very diverse group.
Our advertising budget will allow us for mass media blitz of promotions featuring our
new “Frozen pizza”.
Our target market spends many hours a day in front of the TV and constant messages
being played will allow our product to generate a high level of awareness.

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INCREDIBLES
 23) References:
Principles of Marketing by Philip Kotler and Gray
Armstrong.

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Annexure

INCREDIBLES
  NAME ___________________________________________
 GENDER ___________________________________________

 OCCUPATION ___________________________________________
 DATE ___________________________________________

STATEMENT: Please mark the box that best reflects your response to each question

QUESTIONNAIRE
1. How often do you visit Pizza Hut
 Weekly
 Monthly
 Occasionally

2. How was your last Pizza Hut experience

 Good
 Poor
 Excellent

3. Which is the most attractive thing in frozen pizza?

_____________________________________________________________
____

4. Would you like to prefer Frozen Pizza by Pizza Hut

 Yes
 No

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INCREDIBLES
 5. Would you like to buy frozen pizza only from pizza hut outlet
 Yes
 No

6. Which flavor would you like to prefer in the form of frozen pizza
 Chicken tandoori
 Chicken tikka
 Chicken fajita

7. Do you think Pizza Hut should give sauces with frozen pizza
 Yes
 No

8. Which size do you prefer for 3 sizes of frozen pizza

a. Small
b. Medium
c. Large

9. Which type of packing do you prefer

 Soft packing
 Hard packing

10. Which type of base do you prefer in frozen pizza

 Soft thick
 Thin hard

11. Which type of rating would you like to give to the taste of Pizza Hut
 5
 7
 10

12. How you find the idea of Pizza Hut introducing frozen pizza?
_____________________________________________________________
_____________________________________________________________
________

13. Do you like

 Pizza Hut
 Papa sallies

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 14. Do you think Pizza Hut is giving good quality of Pizza’s
 Yes
 No

15. How the tagline “yumz! Share the freshness sounds like?
_____________________________________________________________
____

THANKYOU FOR YOUR PRECIOUS TIME

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INCREDIBLES