The pizza segment of the fast food industry operates on low profit margins and in a highly competitive environment. Once the realm of local and regional operations, the market is now characterized by national chains which offer takeout, delivery and dinein service in restaurants. In addition, the market has attracted "gourmet" pizza outlets which combine interesting ingredients with hightech decor in order to attract the wellheeled professionals who traditionally do not purchase pizza on a regular basis, but do order it occasionally for parties or who are attracted to the gourmet stylings.
Pizza Hut is one of the most successful of the traditional pizza restaurants. Owned by the soft drink giant PepsiCo (which also owns Taco Bell), Pizza Hut offers dinein restaurants as well as takeout and delivery service from most of its locations. In addition, the chain also features some small stores which only feature the delivery/takeout service, which is in direct competition with companies such as Domino's and Little Caesars as well as independent operators.
This research considers a marketing program for Pizza Hut taking into account the company's stated strategy of introducing four new products each year and using the demographics and marketing information associated with this industry. Because profit margins for pizzerias are lean, special attention is given to helping to boost sales of new products during the critical first months of their introduction.
Pizza Hut is based in Wichita, Kansas and has more than 7,300 domestic units and another 1,600 worldwide. A subsidiary of PepsiCo, Pizza Hut has stated that its goal is to become the dominant player in every facet of the pizza business, including delivery. To accomplish that goal, Pizza Hut instituted separate strategies for four separate channels of distribution in the early 1990s: fullservice red roof restaurants; Delco units for delivery/carryout; Fastino's dri...