Pizza Hut Marketing Promotion plans and budget in Pakistan

1. Pizza Hut
Promotion Assignment
Sarfraz Ashraf
MBAS15M025
University of Sargodha Gujranwala Pakistan

2. 1
Table of Contents
1. INTRODUCTION & HISTORY OF PIZZA HUT...........................................................................................2
Mission Statement....................................................................................................................................3
Core Values: P.E.A.R.L.S.....................................................................................................................3
2. Product portfolio...................................................................................................................................3
3. Marketing Plans ....................................................................................................................................4
Marketing budgets....................................................................................................................................4
Selling expense:.........................................................................................................................................4
Advertising/promotion expense:..............................................................................................................4
Product cost:.............................................................................................................................................4
4. Pizza Hut's Communication Mix............................................................................................................5
Sales promotion........................................................................................................................................5
Sponsorship...............................................................................................................................................5
E-marketing...............................................................................................................................................5
Branding....................................................................................................................................................5
5. Marketing Communication Mix ............................................................................................................6
Television ..................................................................................................................................................6
Internet Advertising..................................................................................................................................8
Public Relations.........................................................................................................................................8
6. Marketing Strategy .............................................................................................................................10
Pull strategy ............................................................................................................................................10
7. Conclusion...........................................................................................................................................10

3. 2
Pizza Hut
1. INTRODUCTION & HISTORY OF PIZZA HUT
In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas.
The small 25 seat restaurant only had room for 9 letters on the sign… the building looked like a
hut… so 'Pizza Hut' was born!
Fifteen years later, they opened the first UK restaurant and since then we've become the biggest
Pizza Company on the planet, let see listen Pizza Hut Story from them!
1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.
1972 1000 restaurants are open throughout the USA.
1973 Pizza Hut went international with restaurants in Japan, Canada & England.
The first UK Pizza Hut opened in Islington, London.
1977 PepsiCo bought Pizza Hut.
1980 Pan Pizza was introduced.
1982 The UK joint venture started between PepsiCo and Whitbread.
1984 Over 50 restaurants so far in the UK.
1986 By now, there were 100 restaurants in the UK and 5000 worldwide.
1987 An average of one restaurant opened each week in the UK.
1988 The UK's First Delivery Unit was opened in Kingsbury, London.
1992 There were 9,000 restaurants in 84 countries.
1993 There were 300 restaurants and delivery stores in the UK.
1994 10,000 Pizza Huts were open for business.
1997 PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants
was born, creating the largest restaurant brand in the World. Tricon became the partner
company with Whitbread.
1999 Pizza Hut had over 400 restaurants, employing 14000 people.
2002 Tricon Global became YUM! Brands Inc.
2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was
now 100% owned by Yum!

4. 3
2008 bought Godfather's Pizza in Ireland with 28 stores.
The first Pizza Hut Restaurant in Pakistan was opened in December 1993 and took the culinary
scene by surprise. From that time onwards, the brand has contributed heavily towards the
development of the society as a whole. It is responsible for creating job opportunities for the youth
of the country both directly as well as indirectly. Furthermore, Pizza Hut during the core of its
existence has gradually aided in the development of various local suppliers who as a requirement
have to supply food staff equivalent in quality to the international food standards. In this regard,
our restaurant chain has proved to be a major contributor towards the progress of the Pakistani
food industry as a whole by bringing it to a point where they can now look forward to supplying
their items to other chains as well as the international market. Pizza Hut, being the first
International franchise to enter the Pakistani market has set new standards of dine-in restaurants
and quick delivery of oven hot pizzas and has since then enjoyed tremendous brand loyalty from
its customers.
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'll be back!"
We are the employer of choice offering team members opportunities For Growth, Advancement,
And Rewarding Careers in a Fun, Safe Working Environment.
Core Values: P.E.A.R.L.S
Passion for excellence in doing everything
EXECUTE with positive energy and need
ACCOUNTABLE for growth in customer satisfaction
RECOGNIZE the achievement of others
LISTEN and respond to the customer needs
2. Product portfolio
There are total six product lines of pizza hut which includes pizza, wings, sides, pasta, desserts
and drinks.
In pizza’s line includes: major and popular pizzas are: Cheese Pizza, Pepperoni pizza, Meat
Lover’s pizza, Supreme pizza, Buffalo Chicken pizza and Veggie Lover’s pizza. Wings includes:

5. 4
Large traditional wings, breaded bone-out wings, individual wings meal, family wings meal, party
wings meal, fries and apple pieces. Sides includes: Stuffed garlic knots, Bread sticks and Cheese
sticks. Pasta includes: Chicken alfredo pasta and meaty marinara pasta. Desserts includes:
Chocolate chip cookie, triple chocolate brownie, cinnamon sticks and apple pies. In drinks, all
Pepsi drinks are included.
3. Marketing Plans
Marketing budgets
The marketing management budget consists of selling expenses, advertising
and other promotion expenses, product cost and other costs. The overall
marketing budget of new product in the 1 year (2015) is 150 million pounds. The various parts of
marketing budgets are described below:
Selling expense:
The selling expenses of new product include the direct production costs,
transportation costs, and other variable costs. It has estimated selling cost of
10 million pounds in the 1 year (2015).
Advertising/promotion expense:
New product will take massive promotion activities in the year
The total estimated promotion budget for the for the 2015 are 100 million pounds. Among this
money 5 million pounds used to give discounts to customers on various occasions. The
management will also spend 5 million pounds to present customers with some gifts. The rest of
the money used for advertising on television, newspapers, flyers, banners, etc. to attract more
customers.
Product cost:
The product cost consists of production costs and storage costs. The organization store various
vegetables on the store room. It has estimated a storage cost of 30 million pounds in 2015.

6. 5
4. Pizza Hut's Communication Mix
Sales promotion
One of Pizza Hut's more recent sales promotions is its "Happy Hour" menu. The Happy Hour menu
provides consumers the choice not only pizza, but also pasta, salad and plus garlic bread and a
drink. Pizza Hut promoted this menu at a £4 fixed price. Pizza Hut premiered this promotion using
an ATM advertising campaign. The purpose of this campaign is to hopefully increase visits by
customers to Pizza and was cleverly timed to premier around pay-day for most of the working
public.
Sponsorship
Pizza Hut possesses a wide sponsorship in different and variety areas from past until now. For
instance, the notable sponsorship of Pizza Hut is as a part of PepsiCo's. There has also been
partnerships with Formula one, Euro '96' and was a sponsor of the Newcastle Vipers ice hockey
team from 2007/08 EIHL season. Nowadays, Pizza Hut is proud to sponsor National Family Week.
This is the biggest official celebration of families and 'Pizza Hut is a gold sponsor of such an
exciting new initiative backed by the largest coalition of family in the UK.' (The Greenwich
Gazette, 2009) Therefore due to the association with such reputable brands, sponsorship is a very
useful method of marketing for Pizza Hut and has helped communicate the image of Pizza Hut to
its target audience.
E-marketing
The internet communication of Pizza Hut plays an important role for customers. Pizza Hut also
has used social networking sites such as Facebook and Twitter to create E-marketing. Facebook
users can join a Pizza Hut group and receive information of any promotions. This new form of
marketing is Pizza Hut adapting to new technology and understanding there are some lucrative
options for marketing this way. The target audience that use social networking sites most
profoundly Generation X and this creates a parallel to a large proportion of Pizza Huts target
audience.
Branding
In 2008 Pizza Hut rebranded its UK business to Pasta Hut. The expenditure of this rebranding cost
'£100M' (Marketing Week, 2008) as it refurbished many restaurants and created new outlets. The

7. 6
change of the brand's name could be a trial exercise to promote and test the market's acceptability
of the new name. It has been noted however that most people still prefer the previous name 'Pizza
Hut' and found the rebranding of 'Pasta Hut' stale and uninteresting.
5. Marketing Communication Mix
Television
The creation of television provided a new opportunity for widespread effective advertising. When
viewing advertisements, the public assesses what the advert conveys and how it conveys this
message. This causes the public to evaluate aspects such as presentation, creative appeal as well
as of course the message. Therefore, due to impact that this powerful audio-visual tool can have
on the audience, it is imperative that much consideration is given to the impression that is
portrayed.
One major benefit of television advertising is that it has a very high level of penetration. Statistics
have shown that in the United Kingdom on average the public watches television for '28 hours per
person per week' (Nationmaster, 2009). This therefore provides a lucrative possibility for many
corporations.
Due to the audio-visual possibilities that television advertising provides it gives the advertisers an
opportunity to utilize the creative potential and fully portray the message desired which
consequently helps the brand to achieve its aspired goals.
For the television advertisement, a brand such as Pizza Hut should produce adverts that are creative
and entertaining but also ensures that the core message is clearly communicated. The
advertisement must be appealing to keep the attention of the audience to hopefully limit the effect
that surrounding noise and distractions may have.
There is a tendency of many consumers to directly link the credibility of a brand with the credibility
of the medium, and television advertising is perceived as a highly credible source to most
audiences. Therefore, the credibility of the Pizza Hut campaign has high chances of being
enhanced if it associated with TV adverts.

8. 7
The television advertisement for the new campaign needs to be positively engaging on the
emotional and psychological grounds. Our basic aim is to implement the pull strategy to create a
demand for this new product category via the mass media.
The target audience for the pizza hut campaign is the health-conscious segment, but health
consciousness is reflected in varied shades for different individuals, and this consideration is
depicted in the television advertisement. The advertisement shows an ordinary British family
consisting of a mother, a father and two teenagers; a son and a daughter. They are discussing what
to have for dinner at the dining table. One option that is discussed is pizza, and it shows the four
different perspectives of having pizza for dinner. The mother's standpoint is that pizza wouldn't be
suitable as it is unhealthy and lacks proper nutrients for the family, while the daughter's perspective
is that she would have motivational conflicts due to the high calorie count and the diet she has
been carrying out, the son also may have a similar negative perspective due an extensive work-out
schedule that he has been keeping to and doesn't want to ruin and that father may be worried about
blood pressure and cholesterol that are common with his age and therefore the consensus is not to
order a pizza even though everyone would enjoy the experience.
The advert would have a strong visual appeal to create the sense that it would be delicious and full
of flavour, this would be carried out with visually appealing colours of the topping as well as the
surrounding background of the advert.
The slogan used for this advert is "Pizzas Just Got Healthier." This is a clear, strong slogan and it
also communicates the core idea of the whole advertising campaign in lucid, simple language
which is easily retained by consumers. The slogan also is able to depict an image of the brand
which cares about its customer's health through an product innovation.
The sales promotion that is integrated into the campaign will be shown at the end of the advert
with a change in the tonal quality of the speaker, this is aimed at getting the audience to pay
attention at the moment when the majority of the information is relayed. Refer to Appendix A for
story board.
The last but not the least the advert would be following the Association Guideline within "C4'S
Golden Guidelines"; the television advertisement will be aired throughout a entertainment/comedy
section, throughout the time period of 6pm to 8 pm. This time period would be a high reach period

9. 8
as it after school and work when more members of the family are at home. It would be most viable
to relate the advert to the shared territory and common targeting aspect of the Association
Guidelines.
Internet Advertising
The internet is described by many as a one of the most important inventions of the century. It has
been a part of a major revolution in technological development worldwide. With the advent of web
based advertising in 1994, it has become an extremely convenient method for many brands to reach
to the greater masses at a relatively lower cost in comparison to traditional media.
The current generation is highly dependent on the internet, and therefore advertising online in the
form of banner ads, button ads, pop ups are the smart and viable options for many reputed brands.
Potter (1994) 'estimates that web based marketing results in ten times the units sold at one tenth of
the advertising budget, and that's one of the most important reasons to opt for an online advert.'
An added bonus also is that consumers have the option of watching the advert as many times as
they wish and so are able to obtain all the information that the advert provides.
The new Pizza Hut campaign focuses mainly on giving healthier alternatives when visiting Pizza
Hut, mainly in the forms 'Healthy Pizzas'. This should be highlighted clearly to the audience as
this should create an interest that may cause possible customers to acquire more information about
the campaign.
Another rationale for using web based advertising is the higher chance of an instantaneous
purchase, as long as there is a option of purchasing the product or service. This impulse purchase
effect will occur especially with food producers such as Pizza Hut, as it satisfies a physiological
need in Maslow's hierarchy of needs. To hopefully ensure a purchase it would be advisable for
Pizza Hut to have an option of "Order Now" and a link to the website.
Public Relations
Harris (1998) indicates the 'purpose of marketing PR is to gain awareness, stimulate sales, facilitate
communication, and build relationships between consumers and companies and brands.' This
opportunity is an interesting prospect for Pizza Hut and alongside advertising may enable the
campaign to reach more of the target audience.

10. 9
Pizza Hut can use its public relations agency to promote its products, services as well as its
corporate identity. This is especially useful as the campaign is aiming for an image change, public
relations will help communicate this change to many different groups of stakeholders.
Corporate public relations is responsible for establishing understanding and trust with individuals
who have a potential or actual interest in the organization, (Kitchen, 1997). According to Gruning
(1992), 'corporate PR is the management of communication between an organization and its
publics.' These may include health organizations, local businesses, local education authorities and
potential customers along with many more groups. Pizza Hut can use and associate 'the high
credibility attached to this form of communication.' (Fill et al, 2005) to create credibility and
maintain the credibility of the brand.
For Pizza Hut to be effective when carrying out its public relations, it will introduce newsletters
informing the previously mentioned groups of what they are trying to do in its new health
campaign. Pizza Hut could also evaluate the effectiveness of its public relations by offering readers
the chance to comment on the company and any articles through the feedback form at the back of
the newsletter.
Pizza Hut has decided to put together an article with a major newspaper publisher about obesity
levels and the new Pizza Hut healthy campaign. Public relations are often important at more of a
corporate level and without this option Pizza Hut would struggle to be seen as a major food outlet.
This be a form of publicity.
Pizza Hut should also conduct a certain amount of public relations to its internal stakeholders such
as staff and external stakeholders. Internally the employee magazine should be used, and these
cues should 'develop images and perceptions' (Fill, 2005) in the mind of the stakeholders, internally
as well as externally.
Therefore, the ability for public relations to reach a medium size audience and also portray a
credible image indicates that Pizza Hut should be using PR as one of its communication tools. It
must not be ignored however that public relations is more effective when integrated with other
communication tools. By combining such tools as advertising with public relations it is possible
to gain full national coverage something that would not necessarily be possible with other
communication tools.

11. 10
6. Marketing Strategy
Pull strategy
The 'healthy eating' campaign is directed at end user customers in order to generate increased level
of awareness, change and/or reinforce attitudes, reduce risk, encourage involvement and ultimately
provoke a motivation within the target group. The campaign hopes to create a motivation for the
consumer to therefore stimulate action within the target audience. The consumer 'expects the offer
to be available to them when they decide to enquire, experiment or make a repeat purchase' (Fill,
2009). The pull strategy requires the brand to allocate a large proportion of funds to advertising,
this is especially so when using mass media and sales promotion.
Pizza Hut aims at attaining the objectives of the pull strategy by using television and internet
advertising. These advertising forms are seen as very credible examples of mass media as they
have the ability for mass penetration which in turn reduces the unit cost of the advertising. This
above-the-line communication is accentuated by the use of sales promotions which is a below-the-
line communication. Sales promotion which is another aspect of the pull strategy, it's aimed at
creating a demand for the product in the consumers psyche, this creation of a want/need increases
the likelihood of a purchase.
7. Conclusion
Pizza Hut has manytargets which it has achieve in a given period of time. The time-period is mostly a year.
Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be
concluded that these strategies have been successful and there is flexibility in the strategies, as they can be
changedwith the changes in the market conditions as well as the targets.