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IIPM Knowledge Centre > Marketing > Spiced up Pizzaz!

“Pizza Hut will continue to bring Yum on people’s faces by offering great quality pizzas at remarkably affordable prices along with high standards of service.”

Pankaj Batra, Director Marketing- Indian Sub Continent, Yum! Restaurant)

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, were approached by a family friend with the idea of opening a pizza parlor. After borrowing $600 from their mother, they purchased some secondhand equipment and rented a small building on a busy intersection in their hometown. The result of their entrepreneurial efforts was the first Pizza Hut restaurant and the foundation for what would become the largest and most successful pizza chain in the
world.

Building the leading pizza company has required innovation, a commitment to quality, and dedication to service and value. What has also characterized Pizza Hut’s business through more than four decades of success are the qualities of entrepreneurship, growth and leadership. Pizza Hut franchisees, for instance, exemplify the entrepreneurial spirit which launched the system. Through their interest and initiative, the Pizza Hut system was able to rapidly develop new territories in the United States as well as overseas.

Pizza Hut’s development on the international front is a good indication of the growth that has characterized the system. After the opening of the first international restaurant in Canada in 1968, Pizza Hut restaurants began appearing all over the globe from Mexico, Australia and Europe to Africa and even the Far East. An indication of Pizza Hut’s rapid growth is that in 1977 the 3000th unit opened in Arlington, Texas and 3 years and 1000 units later, in 1980, the 4000th unit opened. The 10,000th unit opened in 1993 in Sao Paulo, Brazil with soccer legend Pele kicking a ball through the front door.

A significant milestone was in 1977 when Pizza Hut was acquired by one of the true giants of international business - PepsiCo, Inc. In October 1997, PepsiCo spun off its restaurant businesses (Pizza Hut, KFC and Taco Bell) and Tricon was founded. With the addition of two more brands to its portfolio – A&W and Long John’s Silver, in 1999, Tricon was re-christened Yum! Restaurants International that soon became the world’s largest restaurant chain, which currently has over 30, 000 restaurants in more than 100 different countries.

Pizza Hut’s famous Red Roof made its foray into India with a dine-in restaurant in June 1996. While it started with six units in its first year, an overwhelming demand for its distinct pizzas and trademark dining experience made it possible for it to register a double-digit growth.

Product

Worldwide and in India, Pizza Hut has come to become synonymous with the ‘best pizzas under one roof’. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product – which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in Pizza Hut’s success has been its unique dining experience. Crewmembers at Pizza Hut strive each day to provide ‘customer mania’ - the kind of service that ensures that every visit of the customer is a memorable one.

In fact, to ensure stringent international bench-marks in the quality of products and services at all its restaurants across the world, Pizza Hut has a mystery shopper program in which an unknown official visits a restaurant and evaluates it on certain defined parameters called C.H.A.M.P.S. that stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. Based on the report submitted by the official, the restaurants are rated and in the rare case of finding under performers, they are kept under strict vigil.

A critical factor in Pizza Hut’s success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customers in different parts of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly established itself as a brand with an Indian heart. Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root-based ingredients. Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the menu offers the option of a complete meal. It includes appetizers, a Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas and desserts.

Market
Pizza Hut was among the first multinational brands to enter the food retail sector in India. When the first Pizza Hut restaurant opened in Bangalore the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. Pizza Hut went on to play a significant role in pioneering and developing this category in India.

Since then the market has sustained considerable growth. A dramatic shift in lifestyle trends, substantial increase in disposable income, a burgeoning middle class and the entry of a significant number of international and national players has contributed to a boom in the industry. The market has become greatly competitive and the customer has become more discerning and adventurous. This however has not affected Pizza Hut’s comfortable reign over the Indian pizza industry and the everincreasing number of loyal customers who have made it possible for Pizza Hut to aggressively extend its presence.

Achievements
Pizza Hut is the world’s largest pizza chain with over 12, 500 restaurants in more than 91 countries, serving over 1.7 million pizzas to nearly 4 million customers across the world every day. The acknowledged worldwide leader of the pizza industry since 1971, Pizza Hut has established itself as the market leader of the category in India with a 48% share (internal survey).

Pizza Hut’s constant endeavour to provide extra value – whether it is pizzas which are available to suit every price range, new promotions or the introduction of innovative product ranges - that puts a ‘Yum’ on every customer’s face - has allowed it to increase its presence in India to the current 70 restaurants across 18 cities. Pizza Hut plans to scale up its presence to 100 restaurants by this yearend. While consolidating its presence in the metropolitans, this aggressive expansion will involve Pizza Hut entering smaller cities like Cochi, Nasik, Lucknow and Madurai .

Pizza Hut has built a reputation of excellence that has earned it the loyalty of its customers and respect of industry experts. Not only have the offerings from Pizza Hut been voted number one in countless customer surveys, Pizza Hut’s accomplishments as an innovative business leader have been cited by publications such as Restaurant Business, Fortune and The Wall Street Journal.

Recent Developments
As a part of its continuing efforts to provide its customers with maximum value in India, Pizza Hut launched the Tandoori range of pizzas, which have a distinct Indian flavour and offer an innovative and exciting combination of toppings. These pizzas are served with a sliver of lemon to enhance the overall experience of relishing each scrumptious mouthful. Pizza Hut’s leadership in innovation was further reinforced with the introduction of the Chicken Stuffed Crust pizza last year, which has a ring of succulent chicken baked right into the crust making it the most delightful experience. The latest offering from the Pizza Hut stable was the delicious Chettinad pizza, a mouthwatering combination of the world’s best pizzas with strong flavours of the Chettinad region. An initiative from Pizza Hut that met with tremendous success was the ‘Kids Eat Free’ promotion, which was introduced last year to coincide with the summer vacations. This was the first time in India that a quick restaurant chain offered a free pizza to all children, 12 years and below.

Promotions
The strength of Pizza Hut’s success globally lies in a marketing strategy that builds connections with customer’s everyday in different parts of the world. Many customer service initiatives have been uniquely developed for India and have been greatly instrumental in building an emotional bond with the customer. For instance the crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. While a bell hangs at each Pizza Hut restaurant, which is rung by customers who as they leave wish to thank the servers for yet another memorable visit.

In India, eating out is perceived as a form of entertainment. Which is why Pizza Hut servers not only serve our customers great food, they also sing and dance for them. And many of Pizza Hut’s customers would, we are certain, love to participate in this process. Giving them an opportunity to showcase their talent – we conceived the Jig n Jeeto contest. Organized in Delhi for the first time, it received a phenomenal response with super star Fardeen Khan judging the show. Pizza Hut hopes to continue this contest as a tradition for the years to follow.

Pizza Hut’s communication has also always struck a chord with the Indian customer. Its very first television commercial in India featured a boy and girl, who meet at a Pizza Hut restaurant in a traditional arranged marriage setting. They lose their inhibitions when the pizza arrives. When the sequel went on air featuring the same couple, now married, with the girl’s father consoling her over a pizza as her bridegroom waits outside the restaurant to escort her after their wedding - the customer’s involvement was so complete that several wrote in to inquire whether the couple had children!

The more recent campaign that was launched with the introduction of the Tandoori pizzas featured a typical Indian wedding procession abandoning the bridegroom when enticed by delicious aromas from a Pizza Hut restaurant. While the famous ‘Good times start with great pizzas’ slogan has been prominent in the communication ,the focus has remained on the best and most distinct pizzas.

Brand Values
Pizza Hut is all about giving a unique and unforgettable dining experience by offering the best and most distinct pizzas and impeccable service, in a relaxed and friendly ambience. Pizza Hut is fun, friendly and familiar – it gives a sense of belonging, of comfort and an experience that allows friends and families to share a good time over great pizzas – wherever and whenever. The truth about Pizza Hut pizzas is that they act like a catalyst, a bonfire that brings people together.

Things you did not know about Pizza Hut The dough for the crust, is made out of whole meal flour and not of plain flour (maida), as is largely believed and is kneaded several times a day at each Pizza Hut restaurant. For the delicious toppings only freshly cut vegetables and whole unprocessed meat is used.

Pizza Hut holds the record for the world’s largest pizza (six feet in diameter), which was baked and served at the grand opening of a Fort Worth, Texas Pizza Hut restaurant.

Pizza Hut uses more than 700 million pounds of whole wheat each year, representing the annual yield from nearly 500,000 acres of wheat and it uses more than the equivalent of 525 million pounds of tomatoes annually. If the slices of the more than 700 million pounds of pepperoni used per year by Pizza Hut were to be laid side by side, they would create a path that would stretch around the world twice and go to the moon! n
 
 
 

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