PROJECT REPORT

A Project On Service Marketing On the Company Pizza Hut

Prepared for the Mumbai University in the partial fulfilment of the
requirement for the award of the degree in
MASTER OF MANAGEMENT STUDIES

Submitted By:
Name
Sourabh Surve - 93
Stelvin Paul - 105
Steve Lobo - 107

Under the guidance of

Prof. Simmi Prasad
For Service Marketing
SFIMAR

St Francis Institute of Management and Research,

Mt. Poinsur, S.V.P Road, Borivali (W) Mumbai.

Www. Sfimar.org
BATCH 2018-2020

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 TABLE OF CONTENT
SR.NO TOPIC Page No
1 INTRODUCTION 4
2 PROJECT OBJECTIVES 8
3 7 P’S 8
4 PROMOTIONS 15
5 SERVICE FLOWER 20
6 REFERENCES 23

Company
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Introduction

Pizza Hut is an American restaurant chain and international franchise which was

founded in 1958 in Wichita, Kansas by Dan and Frank Carney. The company is
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known for its Italian-American cuisine menu, including pizza and pasta, as well as
side dishes and desserts. Pizza Hut has 18,431 restaurants worldwide as of
December 31, 2018, making it the world's largest pizza chain in terms of locations.
It is a subsidiary of Yum! Brands, Inc., one of the world's largest restaurant
companies. Pizza Hut was founded in June 1958 by two Wichita State
University students, brothers Dan and Frank Carney, as a single location
in Wichita, Kansas.  Six months later they opened a second outlet and within a year
they had six Pizza Hut restaurants. The brothers began franchising in 1959. The
iconic Pizza Hut building style was designed in 1963 by Chicago architect George
Lindstrom and was implemented in 1969. PepsiCo acquired Pizza Hut in
November 1977.

Before closing in 2015, the oldest continuously operating Pizza Hut was
in Manhattan, Kansas, in a shopping and tavern district known as Aggie
Ville near Kansas State University. The first Pizza Hut restaurant east of the
Mississippi River was opened in Athens, Ohio, in 1966 by Lawrence Berberick and
Gary Meyers.

Pizza Hut's international presence includes Canada and Mexico in North America,
and India (not in the Pizza Hut division, but in the Yum! India
division), Bangladesh, Pakistan, Japan, Saudi Arabia, the United Arab Emirates,
Qatar, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Indonesia, Brunei
Darussalam, China (now part of Yum! spinoff Yum China), Hong Kong, Taiwan,
South Korea, Myanmar, and Macau in Asia. Pizza Hut was one of the first
American franchises to open in Iraq. In Europe they are in United Kingdom,
Sweden, Norway, Finland, Germany, Spain, Turkey; in Honduras, Costa Rica, El
Salvador, Guatemala, Colombia, Nicaragua, Venezuela, Chile, Brazil, Peru and

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Ecuador, in South and Central America; in Ethiopia, South Africa and Tanzania in
Africa; and in Australia, New Zealand in Oceania.

The company announced a rebrand that began on November 19, 2014, in an

effort to increase sales, which had dropped in the previous two years. The menu
was expanded to introduce various items such as crust flavors and 11 new
specialty pizzas. Work uniforms for employees were also refreshed. In 2017, Pizza
Hut was listed by UK-based company Richtopia at number 24 in the list of 200
Most Influential Brands in the World.

On June 25 and 27, 2019, it was reported that Pizza Hut is bringing back their logo
with the "Red Roof", that was used from 1967 until 1999.

On August 7, 2019, Pizza Hut announced its intention to close about 500 of its
7,496 dine-in restaurants in the US, by the middle of 2021.

Pizza Hut is split into several different restaurant formats: the original family-style
dine-in locations; storefront delivery and carry-out locations; and hybrid locations
that have carry-out, delivery, and dine-in options. Some full-sized Pizza Hut
locations have a lunch buffet, with "all-you-can-eat" pizza, salad, desserts, and
bread sticks, and a pasta bar. Pizza Hut has other business concepts independent
of the store type.

An upscale concept was unveiled in 2004, called Pizza Hut Italian Bistro. At 50 U.S.
locations, the Bistro is similar to a traditional Pizza Hut, except that the menu
features new, Italian-themed dishes such as penne pasta, chicken pomodoro, and
toasted sandwiches. Instead of black, white, and red, Bistro locations feature a
burgundy and tan motif. Pizza Hut Bistros still serve the chain's traditional pizzas
and sides. In some cases, Pizza Hut has replaced a "Red Roof" location with the

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new concept. "Pizza Hut Express" and "The Hut" locations are fast
food restaurants. They offer a limited menu with many products not seen at a
traditional Pizza Hut. These stores are often paired in
a colocation with WingStreet, in USA and Canada, or other sibling brands such
as KFC or Taco Bell, and found on college campuses, food courts, theme parks,
bowling alleys, and within stores such as Target.

Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be

found in the United States and Canada; several exist in the UK, Australia, and
Mexico. In his book Orange Roofs, Golden Arches, Phillip Langdon wrote that the
Pizza Hut "Red Roof" architecture "is something of a strange object – considered
outside the realm of significant architecture, yet swiftly reflecting shifts in popular
taste and unquestionably making an impact on daily life. These buildings rarely
show up in architectural journals, yet they have become some of the most
numerous and conspicuous in the United States today."

Curbed.com reports, "Despite Pizza Hut's decision to discontinue the form when

they made the shift toward delivery, there were still 6,304 traditional units
standing as of 2004, each with the shingled roofs and trapezoidal windows
signifying equal parts suburban comfort and strip-mall anomie." This building
style was common in the late 1960s and early 1970s. The name "Red Roof" is
somewhat anachronistic now, since many locations have brown roofs. Dozens of
"Red Roofs" have closed or been relocated or rebuilt.

Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and
sometimes an arcade. In the mid-1980s, the company moved into other

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successful formats, including delivery or carryout and the fast food "Express"
model.

Objectives

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  To understand the promotional activities adopted by Pizza Hut.

7 P’s of Service Marketing

Product

Pizza Hut is split into several different restaurant formats: the original family-style
dine-in locations; storefront delivery and carry-out locations; and hybrid locations
that have carry-out, delivery, and dine-in options. Some full-sized Pizza Hut
locations have a lunch buffet, with "all-you-can-eat" pizza, salad, desserts, and
bread sticks, and a pasta bar. Pizza Hut has other business concepts independent
of the store type.

An upscale concept was unveiled in 2004, called Pizza Hut Italian Bistro. At 50 U.S.
locations, the Bistro is like a traditional Pizza Hut, except that the menu features
new, Italian-themed dishes such as penne pasta, chicken pomodoro, and toasted
sandwiches. Instead of black, white, and red, Bistro locations feature a burgundy
and tan motif. Pizza Hut Bistros still serve the chain's traditional pizzas and sides.
In some cases, Pizza Hut has replaced a "Red Roof" location with the new
concept. "Pizza Hut Express" and "The Hut" locations are fast food restaurants.
They offer a limited menu with many products not seen at a traditional Pizza Hut.

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These stores are often paired in a colocation with WingStreet, in USA and Canada,
or other sibling brands such as KFC or Taco Bell, and found on college campuses,
food courts, theme parks, bowling alleys, and within stores such as Target.

Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be

found in the United States and Canada; several exist in the UK, Australia, and
Mexico. In his book Orange Roofs, Golden Arches, Phillip Langdon wrote that the
Pizza Hut "Red Roof" architecture "is something of a strange object – considered
outside the realm of significant architecture, yet swiftly reflecting shifts in popular
taste and unquestionably making an impact on daily life. These buildings rarely
show up in architectural journals, yet they have become some of the most
numerous and conspicuous in the United States today.

Curbed.com reports, "Despite Pizza Hut's decision to discontinue the form when

they made the shift toward delivery, there were still 6,304 traditional units
standing as of 2004, each with the shingled roofs and trapezoidal windows
signifying equal parts suburban comfort and strip-mall anomie." This building
style was common in the late 1960s and early 1970s. The name "Red Roof" is
somewhat anachronistic now, since many locations have brown roofs. Dozens of
"Red Roofs" have closed or been relocated or rebuilt.

Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and
sometimes an arcade. In the mid-1980s, the company moved into other
successful formats, including delivery or carryout and the fast food "Express"
model.

The product in service marketing mix is intangible in nature. Like

physical products such as a soap or a detergent, service products cannot be

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measured. Tourism industry or the education industry can be an excellent
example. At the same time service products are heterogenous, perishable and
cannot be owned.

The service product thus has to be designed with care. Generally service blue
printing is done to define the service product. For example – a restaurant blue
print will be prepared before establishing a restaurant business. This service blue
print defines exactly how the product (in this case the restaurant) is going to be.

Place

Place in case of services determine where is the service product going to be

located. The best place to open a petrol pump is on the highway or in the city. A
place where there is minimum traffic is a wrong location to start a petrol pump.
Similarly, a software company will be better placed in a business hub with a lot of
companies nearby rather than being placed in a town or rural area. Read more
about the role of business locations or Place element.

Price

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The product in service marketing mix is intangible in nature. Like
physical products such as a soap or a detergent, service products cannot be
measured. Tourism industry or the education industry can be an excellent
example. At the same time service products are heterogenous, perishable and
cannot be owned.

The service product thus must be designed with care. Generally service blue
printing is done to define the service product. For example – a restaurant blue
print will be prepared before establishing a restaurant business. This service blue
print defines exactly how the product (in this case the restaurant) is going to be.
Pricing in case of services is rather more difficult than in case of products. If you
were a restaurant owner, you can price people only for the food you are serving.
But then who will pay for the nice ambiance you have built up for your
customers? Who will pay for the band you have for music?

Thus, these elements have to be taken into consideration while costing. Generally
service pricing involves taking into consideration labor, material cost and
overhead costs. By adding a profit markup, you get your final service pricing. You
can also read about pricing strategies.

People
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People is one of the elements of service marketing mix. People define a service. If
you have an IT company, your software engineers define you. If you have a
restaurant, your chef and service staff defines you. If you are into banking,
employees in your branch and their behavior towards customers defines you. In
case of service marketing, people can make or break an organization. Thus many
companies nowadays are involved into specially getting their staff trained in
interpersonal skills and customer service with a focus towards customer
satisfaction. In fact, many companies must undergo accreditation to show that
their staff is better than the rest. Definitely a USP in case of services.

Here the job design is not the most difficult task to do. Also, there is no specific
requirement for recruiting process. After talking one of the employees in Pizza
Hut, we came to know the criteria of selection. The girl was from west India, she
was only 10 th passed out. After this we it was confirmed that there is no proper
requirement of the educational background. The only factor they were
considering on the communication skills, how they communicate with the
customers. Since the communication is the most important factor between the
customer and employee because the whole process is depended on giving the
orders for food. For this the Management conducted the training process for the
new employees. The Training is given for total 5 days. Out of 5 days, they have 3
days for kitchen training and other 2 days in the main dining, that is, how to take
orders and basically how to communicate with customers and make them happy
by their services.

Process

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Service process is the way in which a service is delivered to the end customer.
Let’s take the example of two very good companies – McDonalds and FedEx. Both
the companies thrive on their quick service and the reason they can do that is
their confidence on their processes.

On top of it, the demand of these services is such that they have to deliver
optimally without a loss in quality. Thus, the process of a service company in
delivering its product is of utmost importance. It is also a critical component in
the service blueprint, wherein before establishing the service, the company
defines exactly what should be the process of the service product reaching the
end customer.

The design of the process of the pizza hut is very efficient. Pizza hut do not follow
any kind of hierarchy, all the employee is at the same level ,pizza hut has a very
prescribe and well known process by adopting various technology software which
help them to upgrade their supply management and also manage their crowd of
customer efficiently.

Physical Evidence

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The ambience of the pizza hut is good enough to catch up the people. They
provide a very good dining experience with high quality of atmosphere in terms of
their physical evidence. and pizza hut always try to upgrade with changing
environment and modernization is key of success of the pizza hut. The last
element in the service marketing mix is a very important element. As said before,
services are intangible in nature. However, to create a better customer
experience tangible elements are also delivered with the service. Take an
example of a restaurant which has only chairs and tables and good food, or a
restaurant which has ambient lighting, nice music along with good seating
arrangement and this also serves good food. Which one will you prefer? The one
with the nice ambience. That’s physical evidence. Several times, physical evidence
is used as a differentiator in service marketing. Imagine a private hospital and a
government hospital. A private hospital will have plush offices and well-dressed
staff. Same cannot be said for a government hospital. Thus, physical evidence acts
as a differentiator.

Promotion
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Promotions have become a critical factor in the service marketing mix. Services
are easy to be duplicated and hence it is generally the brand which sets a service
apart from its counterpart. You will find a lot of banks and telecom companies
promoting themselves rigorously.

Why is that? It is because competition in this service sector is generally high and

promotions is necessary to survive. Thus banks, IT companies, and dotcoms place
themselves above the rest by advertising or promotions.

The objectives of promotion are to introduce a new product, stimulate demand,

change the short-term behavior of the customers, and encourage repeat or
greater usage by current customers. Pizza hut uses many promotional strategies.
The main promotion is a coupon to purchase. This promotion is also distributed
mainly by mail (VIP members), but also by fliers on college campuses around the
country to reach the target market. They are using billboards on main stream
places to get their customer. They are also distributing door to door brochures to
capture more and more customers. Pizza huts also using marketing techniques.
These are the strategies Pizza hut is using for its marketing. Pizza huts try to
attract the younger generation as their main market segment. Apart from this
Pizza Hut is using intense marketing strategies they are also giving ads in
magazines. Advertising camping will create awareness of the products in our
target markets.

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Service Marketing Flower

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Flower diagram

Information:
Giving the right information at the right time to the right people is very important

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for any business. Pizza hut tries to advertise itself on online platform and also
offline platforms. They try to reach out the mass crowd through different offers
and promotions. They also circulate pamphlets when they offers. They have a
website where the customer can gain information about the company and its
services and also the outlets.

Consultation:
This is very important as the company should have a point of contact with their
customers/prospects. Consultation leads to a better understanding and sharing
better knowledge between the company and their customers. Pizza hut have their
inquiry numbers put up in their website and pamphlets through which customers
could contact them. Customers can also email the company for any inquiries or
any concerns.

Order taking:
Pizza hut takes order at the customer's table at their outlet. Customers could also
use the Pizza hut app to give their order or they could use the website as it is user
friendly and it is easy to place order. The order could be also given from a third
party app like Zomato , swiggy,etc

Hospitality:
Higher the hospitality, higher the satisfaction level of the customer. Satisfaction
level is a very important factor in service. Pizza hut has a friendly environment in
their outlets. They have a unique way of taking order at their outlets which is like

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a restaurant unlike their direct competitors.

Safekeeping:
When you try to log in into the pizza hut app you need to log in first inorder to
order. The log in details are not shared with any other party or third party. So the
data of the customers are safe. And also proper safety and exits are provided at
the outlets to keep the belongings and customers safe.

Exceptions:
While ordering, customers can make exceptions in their orders and order as per
their preferences.

Billing:

The Billing is done at the counter of every outlet. It is done at the last. If you are
ordering online then you would receive a online invoice.

Payment:

The payment could be done in cash or using cards. Customers could also use UPI
for doing the transactions. Even E-Wallets can be used to do the payments.

REFERENCES

http://www.managementparadise.com/kundanhaha/documents/20996/service-
marketing-project-on-pizza-hut/

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https://www.marketing91.com/marketing-mix-pizza-hut/

https://www.ukessays.com/essays/marketing/the-planning-process-for-pizza-hut-
marketing-essay.php

https://www.assignmentpoint.com/business/marketing-business/assignment-on-
pizza-hut-bangladesh-limited.html

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