Pizza Hut strategic plan
This proposal describes Pizza Hut and the introduction of a new product called "The Extreme." A brief history of Pizza Hut is provided at the beginning of this proposal along with an analysis of the fast food industry. Current trends in demographics and eating habits are included. 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 whether or not to launch the new "Extreme Pizza." Some of the key elements of our marketing plan first describe the "Extreme Pizza." It will be the largest pizza on the market, with double the cheese and double the toppings. We will target the X and Y Generations, which is the fastest growing segment in America. This segment has been successfully targeted before using the "extreme" angle. This segment is has been a segment that hasn't been targeted to the level that they should in this industry and we plan on changing that. !We have used past financial data to establish reasonable goals for the product and have set limits on promotional spending. We will be using a high/low pricing strategy, pricing this new pizza at $9.99. Our main sales promotions will be
(1999). (2000, December 2).Weissman, Rachel. (1999, August). School Daze. American Demographics. pp. NA ------------------------------------------------------------------------ The high/low pricing strategy has several advantages. First, this pricing strategy will help segment the market. Different groups of customers are willing to pay different prices for the same product. Pizza Hut can sell "The Extreme" to the customers who will pay the higher price to be the first to buy and also to the bargain hunters. The high/low pricing strategy will also create excitement. Customers will be able to try something new when they purchase "The Extreme" and this exciting experience may bring those customers back to purchase other products. Finally, this strategy will emphasize product and service quality. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent. izza Huts revenues. A 7% increase in sales for Pizza Hut will bring a total of $547 million dollars in revenue, making the advertising budget $43.76 million. This kind of advertising budget will allow for a mass media blitz of promotions featuring our new "Extreme Pizza". Our target market spends many hours a day in front of the TV and computer, so the constant messages being played will allow our product to generate a high level of awareness. The advertising of the product is very important but the promotion of this product along side Mountain Dew will help to put our product in a more specific category. Mountain Dew has targeted our target market for several years and is by far one of the leaders in this market. With this in mind promotions with Mountain Dew will be crucial to the success of the "Extreme Pizza". In 1996, Pizza Hut sales in the United States were over $5 million. Out of all the existing pizza chains, Pizza Hut had the largest market share, 46.4%. However, Pizza Hut's market share has slowly eroded because of intense competition from their rivals Domino's, Little Caesar's and newcomer Papa John's. Home delivery was a driving force for success, especially for Pizza Hut and Domino's. However, this forced competitors to look for new methods of increasing their customer bases. Many pizza chains decided to diversify and offer new non-pizza items such as buffalo wings, and Italian cheese bread. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions, and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas. guide.com/profile_tricon.htm> (2000, December 1).
Some common words found in the essay are:
Pizza Hut, Extreme Pizza, Pizza Huts, Mountain Dew, Pizza Hut's, pizza hut, Restaurants Institutions, Hut Domino's, Situational Analysis, Pizza Inn, Generation Generation, extreme pizza, mountain dew, fast food, pizza hut's, target market, pizza chains, market share, segment market, pricing strategy, fast food industry, pizza hut introduced, high/low pricing strategy, 2000 december 2, past pizza hut,
Approximate Word count = 4909
Approximate Pages = 20 (250 words per page double spaced)
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