2. Retailing
The business activity that involved in selling
goods or services directly to final consumers
mostly for their personal use
Retailer :
A business whose sales come primarily from
retailing
3. Selected Retailer :
Pizza Hut
* Restaurant Industry
* World largest American Restaurant
Chain
* Franchise Organization
5. Pizza Hut - Self Selection Retailer
Customers can select the item
With the assistance of the employees
- Availability
- Price
Competitors: Dominos, Pizza & Pasta
6. Segmentation
• Pizza hut has used certain demographic factors.
Such as,
Age – ex : children, teenagers, adults.
Family size – : family is having children, college students,
young professionals.
Income – : low income, middle income and high income
families.
• And also psychological factors such as lifestyle of
the market.
Ex : whether the customers are having busy life style or
not.
7. Target markets
• They are targeting the following market
segments.
Males and females 18 to 55
Families with young children, college students, and young
professionals
Middle and high income families
Consumers with busy lifestyles are more likely to be heavy
users of quick service products
8. Positioning
• Steps in positioning
Identify possible differences/ competitive
advantage of Pizza Hut.
Choosing right differences of Pizza Hut
Communicate and delivering chosen competitive
advantage
9. Differentiation
• Step 1 - Identify possible differences/ competitive
advantage to Pizza Hut
product and services differentiation
level of services/ channel differentiation
• Step 2 - Choosing right differences of Pizza Hut
Product differentiation is very easy to differentiate by using product
attributes of Pizza Hut because competitors are not offering same
product with a same quality.
Other competitors are doing services same as Pizza Hut like home
delivery and help to customers to select a suitable products for their
requirements.
Therefore product attribute (Hot Pizza) is a main consideration to
position the Pizza huts’ products in the target consumers mind.
• Step 3 - Communicate and delivering chosen
competitive advantage
10. Marketing mix
• Product
Product Positioning of Pizza Hut - Pizza Hut has always
followed “Single brand positioning” called “PIZZAS”.
Product Scope of Pizza Hut - Pizza Hut follows a “multiple
product strategy” as pizza hut not only sell pizzas, but also deals in a
variety of other product. Such as appetizers, beverages, desserts,
pasta
Product Design of Pizza Hut - Pizza Hut follows the strategy
of selling standardized products with modifications. Pizza Hut mainly
sells 4 types of pizzas with 3 sizes, namely small, Regular and Large.
Those are Pan Pizzas, Stuffed Crust Pizzas, Sausage Crust Pizzas, Thin
Crust Pizzas
11. • Price
Pizza Hut follows “A High/Low Pricing”(“Price Skimming”)
strategy as far as its new product are concerned where it
fixes the price higher than its competitors and then
gradually lowers the price below the competitor’s prices.
The high/low pricing strategy has several advantages for
Pizza Hut.
Used to create excitement
Set high price initially to send a signal that its products are best in
quality and service offered in excellent.
Helps in segmenting the market as Pizza Hut can sell “the extreme
pizza” to the customers who wish to pay higher price as well as to
the bargain hunters too.
Sometimes in face of competition either from pizza
players or from its substitutes, Pizza Hut has also reduced
price by maintaining the same level of customer service
and quality.