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INTRODUCTION

Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest restaurant company

in terms of system units with more than 39,000 restaurants in more than 125 countries

and territories and 1.4 million associates. Yum! is ranked #213 on the Fortune 500

List and generated more than $13 billion in revenue in 2012. Our brands - KFC, Pizza

Hut and Taco Bell– are the global leaders of the chicken, pizza and Mexican-style

food categories.

The Yum! System includes four operating segments: U.S., International (Yum!

Restaurants International), China and India Divisions. Outside the United States in

2012, the Yum! system opened approximately five new restaurants each day of the

year, making it a leader in international retail development.

At Yum! we're building a vibrant global business by focusing on four key business

strategies:

Build leading brands across China in every significant category

Drive aggressive international expansion and build strong brands everywhere

Dramatically improve U.S. brand positions, consistency and returns

Drive industry-leading, long-term shareholder and franchisee value

Results for 2012 once again affirmed our consistent record of success with 13%

Earnings Per Share (EPS) growth, which marks the eleventh straight year we

delivered at least 13% growth and exceeded our 10% EPS growth target. For the full

year 2012, we opened 1,976 new restaurants outside the U.S. Importantly, we

achieved Return on Investment Capital (ROIC) of 22%+ and continued to be an

industry leader.

We're proud of the unique culture we've built, one that's filled with energy,

opportunity, and fun. We believe in our people, trust in their positive intentions,

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encourage ideas from everyone, and have actively developed a workforce that is

diverse in style and background. Yum! is a place where anyone can, and does, make a

difference.

BOARD OF DIRECTORS

David C. Novak:

David C. Novak became Chairman of the Board on January 1, 2001, and Chief

Executive Officer of Yum! on January 1, 2000. He was also President of Yum! from

October 1997 to May 2012. David previously served as Group President and Chief

Executive Officer, KFC and Pizza Hut from August 1996 to July 1997, at which time

he became acting Vice Chairman of Yum!. He also held senior management positions

at Pepsi-Cola Company, including Chief Operating Officer, and Executive Vice

President of Marketing and Sales.

Novak shapes the company’s overall strategic direction, including four key growth

strategies: 1) build leading brands across China in every significant category; 2) drive

aggressive international expansion and build strong brands everywhere; 3)

dramatically improve U.S. brand positions, consistency and returns; and 4) drive

industry-leading, long-term shareholder and franchisee value. Additionally, he

devotes much of his time each year to personally teach leadership skills to the

company’s management and franchisees, emphasizing teamwork and a belief in

people that rewards and recognizes customer-focused behavior.

Novak is a director of the Yum! Brands Foundation and World Food Program USA.

Additionally, he is a member of The Business Council and The American Society for

Corporate Executives, while also devoting considerable personal support to the

United Nations World Food Programmed and Dare to Care Food Bank hunger relief.

He is also the recipient of the national 2008 Woodrow Wilson Award for Corporate

Citizenship.

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Sam Su

Director since 2008 | Vice Chairman of the Board, Yum! Brands, Inc.

and Chairman & CEO,

Yum! Restaurants China

Jing-Shih S. Su has been Vice Chairman of the Board since 2008. He is also Chairman and

Chief Executive Officer of YUM’s China Division, a position he has held since May 2010. From

1997 to May 2010, he was President of YUM’s China Division. Prior to this position, he was

the Vice President of North Asia for both KFC and Pizza Hut.

Michael J. Cavanagh

Director since 2012 | Co-CEO of JPMorgan Chase & Co.’s Corporate &

Investment Bank

Michael J. Cavanagh is Co-CEO of JPMorgan Chase & Co.’s Corporate & Investment

Bank. Prior to that, he was the Chief Executive Officer of JPMC’s Treasury &

Securities Services business, one of the world’s largest cash management providers

and a leading global custodian. He is also a member of the firm’s Operating and

Executive Committees. Prior to being named CEO of Treasury & Securities Services

in 2010, Cavanagh was Chief Financial Officer of JPMorgan Chase & Co. for six

years. Before being named CFO, Cavanagh was Head of Middle Market Banking for

JPMorgan Chase. Cavanagh joined Bank One in May 2000 (prior to its acquisition by

JPMorgan) and held a variety of roles there including Head of Strategy and Planning,

Treasurer, and other executive positions in banking. Before joining Bank One,

Cavanagh spent seven years with Citigroup and its predecessors.

David W. Dorman

Director since 2005 | Non-Executive Chairman, CVS Caremark Corporation

David W. Dorman is the Non-Executive Chairman of the Board of CVS Caremark

Corporation, a position he has held since May 2011. Until May 2011, he was the

Non-Executive Chairman of Motorola Solutions, Inc. (formerly known as Motorola

Inc.), a leading provider of business and mission critical communication products and

services for enterprise and government customers. He served as Non-Executive

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Chairman of the Board of Motorola, Inc.from May 2008 until the separation of its

mobile devices and home businesses in January 2011. From October 2006 to May

2008, he was Senior Advisor and Managing Director to Warburg Pincus, a global

private equity firm. From November 2005 until January 2006, he was President of

AT&T Inc., a company that provides Internet and transaction-based voice and data

services (formerly known as SBC Communications). He was Chairman of the Board

and Chief Executive Officer of the company previously known as AT&T Corp. from

November 2002 until November 2005. Prior to this, he was President of AT&T Corp.

from 2000 to 2002 and the Chief Executive Officer of Concert, a former global

venture created by AT&T Corp. and British Telecommunications plc, from 1999 to

2000.

Mr. Dorman serves on the board of Motorola Solutions, Inc. and Georgia Tech

Foundation. He served as a director of AT&T Corp. from 2002 to 2006.

Massimo Ferragamo

Director since 1997 | Chairman of Ferragamo USA, Inc.

Massimo Ferragamo is Chairman of Ferragamo USA, Inc., a subsidiary of Salvatore

Ferragamo Italia, which controls sales and distribution of Ferragamo products in

North America. Mr. Ferragamo has held this position since 1985. Mr. Ferragamo has

served as a director of Birks & Mayors, Inc. from 2005 until 2007.

Mirian M. Graddick-Weir

Director since 2012 | Executive Vice President of Human Resources, Merck &

Co., Inc. Mirian M. Graddick-Weir serves as Executive Vice President of Human Resources

for Merck & Co., Inc., a position she has held since 2008. From 2006 until 2008, she was

Senior Vice President of Human Resources of Merck & Co., Inc. Prior to this position, she

served as Executive Vice President of Human Resources and Employee Communications of

AT&T Corp from 2004 to 2006. Ms. Graddick-Weir served as the Executive Vice President of

Human Resources of AT&T Corp. from 1999 to 2004. Ms. Graddick-Weir has held various

executive positions throughout her career with AT&T, which began in 1981. Ms. Graddick-

Weir is a director of Harleysville Group Inc.

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J. David Grissom

Director since 2003 | Chairman, Mayfair Capital, Inc.| Chairman, The Glenview

Trust Company

J. David Grissom is Chairman of Mayfair Capital, Inc., a private investment firm

formed by Mr. Grissom in 1989. In addition, Mr. Grissom has been Chairman of The

Glenview Trust Company, a private trust and investment management company, since

2001. From 1973 to 1989, he held various senior positions, including Chairman and

CEO of Citizens Fidelity Bank & Trust and Vice Chairman of its successor, PNC

Financial Corp. He served as a director of Churchill Downs Incorporated from 1979

to 2010.

Bonnie Hill

Director since 2003 | President, B. Hill Enterprises LLC

Bonnie G. Hill is President of B. Hill Enterprises LLC, a consulting company. She has

held this position since July 2001. She is also co-founder of Icon Blue, Inc., a brand

marketing company. She served as President and Chief Executive Officer of Times

Mirror Foundation, a charitable foundation affiliated with the Tribune Company from

1997 to 2001 and Senior Vice President, Communications and Public Affairs, of the

Los Angeles Times from 1998 to 2001. From 1992 to 1996, she served as Dean of the

McIntire School of Commerce at the University of Virginia. Ms. Hill currently serves

as a director of AK Steel Holding Corporation, The Home Depot, Inc., California

Water Service Group, and The Rand Corporation. She serves as the Lead Director of

the Board of Directors of The Home Depot, Inc. She also served on the boards of

Hershey Foods Corporation from 1993 to 2007 and Albertson’s, Inc. from 2002 to

2006.

Jonathan S. Linen

Director since 2005 | Advisor to the Chairman of American Express Company

Jonathan S. Linen has been an advisor to the Chairman of American Express

Company, a diversified worldwide travel and financial services company, since

January 2006. From August 1993 until December 2005, he served as Vice Chairman

of American Express Company. From 1992 to 1993, Mr. Linen served as President

and Chief Operating Officer of American Express Travel Related Services Company,

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Inc. From 1989 to 1992, Mr. Linen served as President and Chief Executive Officer of

Shearson Lehman Brothers. Mr. Linen is a director of Modern Bank, N.A. and The

Intercontinental Hotels Group.

Thomas C. Nelson

Director since 2006 | Chairman, President & CEO of National Gypsum

Company

Thomas C. Nelson has served as the President and Chief Executive Officer of

National Gypsum Company, a building products manufacturer, since 1999 and was

elected Chairman of the Board in January 2005. From 1995 to 1999, Mr. Nelson

served as the Vice Chairman and Chief Financial Officer of National Gypsum

Company. He is also a General Partner of Wakefield Group, a North Carolina based

venture capital firm. Mr. Nelson previously worked for Morgan Stanley & Co. and in

the United States Defense Department as Assistant to the Secretary and was a White

House Fellow. He also serves as a director of Belk, Inc. and Carolinas Healthcare

Systems.

Thomas M. Ryan

Director since 2002 | Former Chairman and Chief Executive Officer,

CVS Caremark Corporation

Thomas M. Ryan is the former Chairman and Chief Executive Officer of the Board of

CVS Caremark Corporation ("CVS"), a pharmacy healthcare provider. He served as

Chairman from April 1999 to May 2011. He was Chief Executive Officer of CVS

from May 1998 to February 2011 and also served as President from May 1998 to May

2010. Mr. Ryan serves on the board of Five Below, Inc. and is an Operating Partner of

Advent International. Mr. Ryan was a director of Reebok International Ltd from 1998

to 2005 and Bank of America Corporation from 2004 to 2010.

Robert D. Walter

Director since 2008 | Founder and Retired Chairman/CEO, Cardinal Health,

Inc.

Robert D. Walter is the founder of Cardinal Health, Inc., a company that provides

products and services supporting the health care industry. Mr. Walter retired from

Cardinal Health in June 2008. Prior to his retirement from Cardinal Health, he served

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as Executive Director from November 2007 to June 2008. From April 2006 to

November 2007, he served as Executive Chairman of the Board of Cardinal Health.

From 1979 to April 2006, he served as Chairman and Chief Executive Officer of

Cardinal Health. Mr. Walter also serves as a director of American Express Company

and Nordstrom, Inc. From 2000 to 2007, he was a director of CBS Corporation and its

predecessor, Viacom, Inc.

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BRANDS OF YUM

KFC: KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered

in Louisville, Kentucky, United States, which specializes in fried chicken. An

"American icon", it is the world's second largest restaurant chain overall (as measured

by sales) after McDonald's, with over 18,000 outlets in 120 countries and territories as

of December 2012.[6][4]

KFC restaurants offer consistent branding and similar menus

worldwide. Most outlets are operated on a franchise basis, with a minority operated

directly by the company itself. Franchisees purchase certain items from the parent

company, pay a royalty as a percentage of earnings, and contribute towards local

advertising costs.

KFC was founded by Harland Sanders, who began selling fried chicken from his

roadside restaurant in Corbin, Kentucky during the Great Depression. Sanders was

one of the first people to see the potential of the restaurant franchising concept, with

the first "Kentucky Fried Chicken" franchise opening in Utah in 1952. The franchise

popularized chicken in the fast food industry, thereby diversifying the market and

challenging the dominance of the hamburger.[7]

Marketing himself as "Colonel

Sanders", he became a legendary figure of American cultural history, and his image is

still prominently used in KFC branding.[7]

By 1963, the company was the largest fast

food business in the United States. The company's rapid expansion saw it grow too

large for Sanders to manage, and he eventually sold the company to a group of

investors. KFC was one of the first fast food chains to go international, opening

outlets in England, Mexico and Puerto Rico by the mid-1960s. In the early 1970s,

KFC was sold to the spirits firm Heublein, who were taken over by the R.J. Reynolds

conglomerate, who sold the chain to PepsiCo. Throughout the 1970s and 1980s, KFC

experienced mixed success at home as it went through a series of corporate owners

who had little or no experience in the restaurant business, although it continued to

expand in overseas markets. In 1987 KFC became the first Western restaurant chain

to open in China. KFC has since expanded rapidly in China, and the country is now

the company's most profitable market. PepsiCo spun off its restaurants division (also

including Pizza Hut and Taco Bell), as Tricon Global Restaurants, which later

changed its name to Yum! Brands.

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KFC primarily sells fried chicken pieces and variations such as chicken sandwiches

and wraps, salads and side dishes such as French fries and coleslaw, desserts and soft

drinks, often supplied by PepsiCo. Its most famous product is pressure fried chicken

pieces, seasoned with Sanders' "Original Recipe" of 11 herbs and spices. The exact

nature of these ingredients is unknown, and represents a notable trade secret. Large

portions of fried chicken are served in a cardboard "bucket", which has become a

signature of the chain since being introduced by franchisee Pete Harman. KFC is

famous for the slogan "finger lickin' good", which has since been replaced by

"Nobody does chicken like KFC" and "So good".

KFC has been the target of an ongoing campaign by the animal rights organization

PETA, although company executives have protested that the chain is unfairly singled

out for criticism. The chain has also been accused by Greenpeace of contributing to

the destruction of the world's rainforests with unsustainably sourced cardboard and

paper packaging. In 2012, in China, the company was found to have been buying

poultry that had been raised with illegal levels of growth hormone and antibiotics.

This resulted in a restaurant boycott by a large number of Chinese through December

and January of 2013.

TOCO BELL:

Taco Bell was founded by Glen Bell who first opened a hot dog stand called Bell’s

Drive-In in San Bernardino, California[2]

in 1946 when he was 23 years old. Six years

later, he sold the stand and opened a new one two years later, this time selling tacos

under the name of Taco-Tia. Over the next few years Bell owned and operated a

number of restaurants in southern California including four called El Taco. Bell sold

the El Tacos to his partner and built the first Taco Bell in Downey in 1962. In 1962,

he sold Taco-Tia. Kermit Becky, a former Los Angeles police officer, bought the first

Taco Bell franchise from Glen Bell in 1964,[2]

and located it in Torrance. The

company grew rapidly, and by 1967, the 100th restaurant opened at 400 South

Brookhurst in Anaheim. In 1970, Taco Bell went public with 325 restaurants. In 1978,

PepsiCo purchased Taco Bell from Glen Bell.

PIZZA HUT

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INTRODUCTION

It was the summer of 1958 when DAN and FRANK CARNEY Decided to open a

pizzeria. With mouth-watering Pizzas prepared by the founder themselves, pizza Hut

soon Become a popular Neighbored Restaurant. From then to over 12500 restaurants

across the world today, we have come a long way, to offer an experience you`ll never

forget. Pizza hut Restaurant teams are dedicated to making our guests feel welcome

and accepted and help them to create fun and memorable moments.

In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai,

Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others.

Yum! Is in the process of opening Pizza Hut restaurants at many more locations to

service a larger customer base across the country.

Pizza Hut (corporately known as Pizza Hut, Inc.) is the world’s largest pizza chain an

American restaurant chain and international franchise that offers different styles of

pizza along with side dishes including pasta, Buffalo and chicken wings, breadsticks,

and garlic bread .Pizza Hut is one of the flagship brands of Yum! Brands, Inc., (the

world's largest restaurant company), with approximately 34,000 restaurants,

delivery/carry-out locations, and kiosks in 100 countries. Yum brands runs KFC and

TACO BELL in Addition to PIZZA HUT.

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Pizza Hut is known for its

Good Quality Food (Hygiene)

Brand Name

Food worth its Price

Good Service

New Kind and Styles of Pizzas in its Menu.

VISSION OF THE PIZZAHUT:

Growth with a big heart.

MISSION OF THE PIZZAHUT:

To be the number one restaurant company in every category we operate (as

defined by system sales).

GOAL OF THE PIZZA HUT:

1,000 stores.

One billion dollar business (system sales).

50,000 employees.

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PIZZA HUT STORY

1958: The legacy of Pizza Hut began, when two college-aged brothers.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in

Topeka, Kansas.

1968: International market entered with opening of Pizza Hut restaurant in

Canada.

1969: Red roof adopted for restaurants.

1972: Pizza Hut, Inc. listed on New York Stock Exchange under the symbol

PIZ.

1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with

PepsiCo, Inc. for an undisclosed sum.

1986: Delivery service, as a new concept, is initiated.

1996: Pizza hut comes to India with a dine in restaurant Bangalore that has

special vegetarian pizzas.

1997: Pizza hut opens a dine-in restaurant in Delhi.

2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise

our dine-in restaurants.

2009: Pizza Hut offering baked fillings in the corner of the pizza.

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LOCATION IN INDIA

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since

then it has captured a dominant and significant share of the pizza market and has

maintained an impressive growth rate of over 40 per cent per Annum. Yum! Brands

Inc.is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum!

Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John

Silver’s restaurants worldwide. In India Pizza Hut has not included all kinds of Pizza

which it serves elsewhere. But rather localized its menu as per Indian customers

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.

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OVERVIEW OF THE PIZZA HUT

As the world's largest pizza restaurant company with

almost 6,600 restaurants in the United States and more

than 4,000 restaurants in 100 other countries, Pizza Hut,

Inc., a subsidiary of Yum! Brands, Inc. (NYSE: YUM),

has been the place families have gathered for 49 years.

The company’s legacy of leadership and innovation has

made it the recognized leader in the $37 billion pizza

category.

NATURE OF THE PIZZA HUT

Pizza hut would be in the food (veg. and non-veg.) and

drink sector.

It offers pizzas wide range of the finest pizza’s, including

pizza’s for meat lovers, pepperoni lovers, cheese lovers

and vegetarians, pastas, wings, and drinks, as well as sides

and desserts, such as stuffed pizza rollers, breadsticks,

cheese sticks, baked desserts, and cinnamon sticks.

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The company also offers catering services. In addition,

Pizza Hut franchises its restaurants. Further, it provides

online ordering also.

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COMPANY PROFILE

Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and

international franchise that offers different styles of pizza along with side dishes

including pasta, Buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary

of Yum! Brands, Inc. (the world's largest restaurant company) with approximately

34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries. When it

comes to tossing around dough, no one does itmore often than Pizza Hut. The unit of

YUM! Brands operate the world's #1 pizza chain with more than 13,200 outlets in

about 90 countries worldwide. The chain serves a variety of pizza styles, including its

flagship Pan Pizza, as well as Thin n' Crispy, Stuffed Crust, Hand Tossed, and

Sicilian. Other menu items include pasta, salads, and sandwiches. Pizza Hut offers

dine-in service at its characteristic red-roofed restaurants, as well as carry-out and

delivery service. About 15% of the restaurants are company-operated, while the rest

are franchised. The world's largest fast food company, YUM! Brands runs KFC and

Taco Bell in addition to Pizza Hut. Pizza Hut Inc. is the largest pizza restaurant

company in the world in terms of both the number of outlets and the percentage of

market share that it holds. A subsidiary of PepsiCo, Inc., the company oversees more

than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide. In

October 1997, the company expected to become a subsidiary of Tricon Global

Restaurants, Inc., formed from the spin-off of PepsiCo's restaurant holdings. Pizza

Hut is split into several different restaurant formats; the original family-style dine-in

locations; store front delivery and carry-out locations; and hybrid locations that offer

carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer

lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a special pasta.

Additionally, Pizza Hut also has a number of other business concepts that are different

from the store type; Pizza Hut "Bistro" locations are "Red Roof’s which offer an

expanded menu and slightly more upscale options.

"Pizza Hut Express" and "The Hut" locations are fast food restaurants. They offer a

limited menu with many products not found at traditional Pizza Huts. These type of

stores are often paired in a collocated location with a sibling brand such as Wing

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Street, KFC or Taco Bell, and are also found on college campuses, food courts, theme

parks, and in stores such as Target.

Traditionally, Pizza Hut has been known for its ambiance as much as pizza. Vintage

"Red Roof" locations can be found throughout the United States, and quite a few exist

in the UK and Australia. Even so, many such locations offer delivery/carryout service.

This building style was common in the 1960s and 1970s. The name "Red Roof" is

somewhat anachronistic now, since many locations have brown roofs. Dozens of "Red

Roofs" have closed or been relocated/rebuilt. Many "Red Roof" branches have beer if

not a full bar, music from a jukebox, and sometimes an arcade. In the 1980s, the

company moved into other successful formats including delivery/carryout and the fast

food "Express" model. The oldest continuously operating Pizza Hut in the world is in

Manhattan, Kansas, in ashopping and tavern district known as Aggie Ville near

Kansas State University. In 1994 several changes resulted in the company's first

decline in operating profits in 15 years. The pizza market was no longer growing; fast

food rivals cut prices; and investment in new outlets was draining corporate resources.

PepsiCo's restaurant division saw sales in restaurants open at least one year fall six

percent in 1994, contributing to a drop in profits of 21 percent (to$295million).

In an effort to change this disturbing direction, Roger A. Enrico moved from

PepsiCo's beverage and snack food divisions to head the restaurant division in 1994.

His first move was to heavily promote a new product: stuffed crust pizza, a pizza with

a ring of mozzarella folded into the outer edge of the crust. The company used a

massive advertising campaign to promote the new product, including television

commercials that paired celebrities eating their pizzas crust first.

Some indicators were promising: market share rose from25.6 to 27 percent; 1995

sales increased 16 percent to $5.2 billion; and operating income rose to $414 million,

up 40 percent from the year before. In 1996 Pizza Hut planned to introduce a major

new product each year and two or three line extensions. The following year it

followed through on this course, introducing Totally New Pizzas with 67 percent

more toppings than previous pizzas and thicker sauce. The company allocated $50

million for the project, part of which was to be used to install new or improved ovens.

In 1996 Pizza Hut accounted for 17 percent of PepsiCo's total sales and 13 percent of

its operating profit. However, these gains could not offset the drain that capital

investment placed on PepsiCo's other divisions. The parent company's return on assets

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was significantly greater in its beverage and snack food divisions than in its restaurant

division. In the late 1990s, PepsiCo drew together its restaurant businesses, including

Pizza Hut, Taco Bell, and KFC. All operations were now overseen by a single senior

manager, and most back office operations, including payroll, data processing, and

accounts payable, were combined. In January 1997 the company announced plans to

spin off this restaurant division, creating an independent publicly traded company

called Tricon Global Restaurants, Inc. The formal plan, approved by the PepsiCo

board of directors in August 1997, stipulated that each PepsiCo shareholder would

receive one share of Tricon stock for every ten shares of PepsiCo stock owned. The

plan also required Tricon to pay a one-time distribution of $4.5 billion at the time of

the spinoff. If approved by the Securities and Exchange Commission, the spinoff

would take place on October 6, 1997.Enrico, which had risen to the position of

PepsiCo CEO, explained the move: "Our goal in taking these steps is to dramatically

sharpen PepsiCo's focus. Our restaurant business has tremendous financial strength

and a very bright future. However, given the distinctly different dynamics of

restaurants and packaged goods, we believe all our businesses can better flourish with

two separate and distinct managements and corporate structures."

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ANSOFF MATRIX

EXISTING

CUSTOMERS

NEW

CUSTOMERS

EXISTING

SERVICES

Consolidation/

Market Share

Building

Market

Development

NEW

SERVICES

Service

Development

Diversification

Pizza Hut has always had the first mover advantage. Their marketing strategy in the

past has always been to be first. One of their main strategies that they still follow

today is the different things in their menu. Most recent one is the filling of toppings in

the pizza corner. Therefore they are offering same customer a different kind of

product. Thus they are into Service Development. Pizza Hut is always trying to come

up with some innovative way to make a pizza into something slightly different -

different enough that customers will think it as a whole new product. For this they

take innovative ideas from Institutes like IHM (Institute of Hotel Management) as

well as motivate their workforce to come up with

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QUALITY MANAGEMENT

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.

This is the most important for a food chain like Pizza Hut. All the employees’ backof-

the-house i.e. the kitchen assistants are trained accordingly. They are given extra

classes in order to meet the quality standards set by Pizza Hut around the world. This

strategy is important in order to satisfy the CHAMPS. This strategy is strictly

implemented in Pizza Hut in order to fulfill the quality standards. Different quality

management staff is also there at Pizza Hut. The shift managers have the task to

observe whether the quality standards are met or not, whereas there are a total quality

management department at the main office in Gurgaon. This department has the task

to implement quality standards and know whether they are achieved or not.

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PERCEPTUAL MAPPING

Perceptual mapping helps the Management to see the real picture of their own and

their competitiors. In above map, Services are plotted on X-axis and Pricing is plotted

on Y-axis.

Expensive and high services : 1st quadrant

Expensive and moderate services : 2nd

quadrant

Inexpensive and moderate services : 3rd

quadrant

Inexpensive and high services : 4th

quadrant

The competitors for Pizza Hut are Domino’s, KFC and McDonalds. Pizza Hut is

providing High Services at very high price. That is why it is plotted in 1st quadrant.

Likewise, McDonald provide high services but the food products are not expensive.

But in 2nd

quadrant, the services are moderate and they cost high than McDonald.

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PIZZA HUT IN INDIA

The Dodsal Group was founded in Mumbai, India, in 1948 by the Nandlal Kilachand

family as a trading company in partnership with a British trading company

(DODWEL) and Mr. Karsa Salem. The Group has transformed from a family trading

enterprise into a multi-billion dollar Organization under the leadership of Rajen A.

Kilachand.Today, it is a Dubai based diversified multinational conglomerate which

operates in the areas of Trading and Distribution; Engineering, Procurement and

Construction; Exploration and Production; Casual Dining Restaurants; and

Manufacturing.

Dodsal Group set up Dodsal Enterprises Pvt Ltd. in 1997 with headquarters in

Mumbai to carry forward the Group's vision and endeavors in casual dining

restaurants, in addition to the Group's trading and distribution activities. Dodsal

Enterprises Pvt. Ltd., today, runs 79 Pizza Hut and KFC outlets, with franchise rights

from Yum! Brands Inc., in major metropolitan cities in India.

Dodsal Enterprises Pvt. Ltd. runs several casual dining restaurants, with franchise

rights from Yum International, in major metropolitan cities in India, including

Mumbai and Bangalore. The Dodsal Group diversified into the food services industry

in 1997, after noticing a major gap in the market for casual dining restaurants. The

Group’s foray into a new and exciting industry began with the launch of its franchises

of KFC and Pizza Hut in India andhas since grown from strength to strength, now

running more than 70 outlets in the county. The Dodsal Group is in the process of

establishing its own chain of casual dining restaurants that will take Indian street food

to international masses. The Group is also setting up a chain of affordable fine dining

restaurants in partnership with maestro chef Marco Pierre White.Dodsal Enterprises

Pvt. Ltd.'s casual dining restaurants and franchises have consistently been voted

number one in the customer satisfaction index and their restaurants have won

numerous industry awards.

23

7 P’s OF SERVICES

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.

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

PRICE

In the past, Pizza Hut has successfully used the high/low pricing strategy when setting

the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to

charge a price that is above the competition, but also promote frequent sales to lower

the price below them. Both Pizza Hut and the beverage Mountain Dew are Pepsi

subsidiaries, bundle pricing will be used.. Pizza Hut will be able to sell two products

together at a single price to suggest a good value. Different groups of customers are

willing to pay different prices for the same product. Pizza Hut can sell "The Extreme"

to the customers who will pay the higher price to be the first to buy and also to the

bargain hunters Finally, this strategy will emphasize product and service quality.

24

Pizza Hut sets a high initial price for its products to send a signal to customers that its

products are quality and the service is excellent.

PROMOTION

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 in order to

reach the target market. They are using billboards on main stream places to get there

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's 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 creates awareness of

the products in our target markets.

DISTRIBUTION

The type of distribution channel used by Pizza Hut is the direct channel. The direct

channel is successful when there is an extremely large market that is geographically

dispersed. The direct channel is also useful when there are a large number of buyers,

but a small amount purchased by each.

Pizza Hut uses three different methods of selling its products directly to the market.

The first method of distribution used by Pizza Hut is delivery. Customers can call

Pizza Hut ahead of time, place an order, and the order is delivered to the customer's

home.

Another method of distribution is for customers to dine-in. Customers can go to the

nearest Pizza Hut, place an order, and either leave with the order or eat at the

restaurant. One of Pizza Hut's largest competitive advantages is its restaurant style

facility. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas,

salads, and sandwiches in a fun, family atmosphere.

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The third method of distribution is! online ordering. Customers can now go on the

Internet and place an order. This method is useful because it allows customers to view

the entire menu, download any special coupons, and order without having to disclose

any credit card numbers. The market coverage for "The Extreme" will be nationwide.

Customers all over the country will be able to order "The Extreme" by one of the

three distribution methods.

PEOPLE

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 10th

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

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

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 there

physical evidence. and pizza hut always try to upgrade with changing environment

and modernization is key of success of the pizza hut.

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SWOT ANALYSIS:

Every organization has its strengths, weakness, opportunity and threats. So,

the

SWOT analysis for pizza hut is as under:

Strengths:

Pizza Hut is the market leader in providing different products of pizzas as there are no

competitors in this sector. There good image makes the organization more strong.

Pizza Hut is providing good taste, quality products with qualified staff, good

atmosphere and hygienic environment. They are specialized in pizzas. Motivation

level of staff is very high which make the organization more prosperous. They are

ISO (International Standard Organization) certified. They have enough resources for

operating different activities of the organization. They are providing free home

delivery service. They have created monopoly in this sector. Another big Strength

and even a Competitive Advantage is the fact that they have a full service restaurant

as well as delivery services. Most of Pizza Hut's competitors do not have restaurants.

Because of the restaurant, Pizza Hut can market too many different segments that

other pizza chains cannot. For example, Pizza Hut can market to families much easier

than Domino's or Little Caesar's.

Weaknesses:

However, the fact that Pizza Hut does have a restaurant to run is also a

weakness. Pizza Hut has higher overhead costs, due to the restaurant that

other competitors don't have to deal with. Another result of higher overhead

costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the

low cost producer. They rely on their quality pizza and good service to

account for their higher prices. They are providing less range of products

comparatively with high prices. They are more focused on Western taste

instead of Eastern.

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Opportunities:

New markets can be explored and new opportunities they can gain. Pizza Hut

can come up with the new products considering the Eastern taste of the

people as like McDonalds. Diversification of new products can increase their

market share. They can reduce their prices because of more resources.

Threats:

Pizza Hut's number one threats are from their competitors. Currently,

i. Their closest competitor is Domino's Pizza who is working to open their

Branches at various cities. Domino's main competitive advantage over Pizza

Hut is their Lower price.

ii. Little Caesar's who is establishing their self in India and might move to is

another one of Pizza Hut's competitors, right behind Domino's in market

share. Little Caesar's is famous for offering large quantities of pizza for less

money.

iii. New entrance like Dominos pizza in Indian market can affect their market

Share.

iv. Other local restaurants can affect their market share by providing pizzas

with

lower price.

v. Social factors can affect their image as a Western organization.

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Market segmentation

Market segmentation is a marketing strategy that involves dividing a broad target

market into subsets of consumers who have common needs, and then be designed and

implemented to target these specific customer segments, addressing needs or desires

that are believed to be common in this segment, using media that is used by the

market segment.

While there may be theoretically 'ideal' market segments, in reality every organization

engaged in a market will develop different ways of imagining market segments, and

create product differentiation strategies to exploit these segments. Successful market

segmentation and corresponding product differentiation strategy can give a firm a

commercial advantage, due to the more effective match between target customer and

product.

Criteria for segmenting

An ideal market segment meets all of the following criteria:

It is possible to measure.

It must be large enough to earn profit.

It must be stable enough that it does not vanish after some time.

It is possible to reach potential customers via the organization's promotion and

distribution channel.

It is internally homogeneous (potential customers in the same segment prefer

the same product qualities).

It is externally heterogeneous, that is, potential customers from different

segments have different quality preferences.

It responds consistently to a given market stimulus.

It can be reached by market intervention in a cost-effective manner.

It is useful in deciding on the marketing mix.

Basis for segmenting consumer markets

Geographic segmentation

The market is segmented according to geographic criteria—nations, states, regions,

countries, cities, neighborhoods, or zip codes. Geo-cluster approach combines

demographic data with geographic data to create a more accurate profile of specific [1]

With respect to region, in rainy regions you can sell things like raincoats, umbrellas

29

and gumboots. In hot regions you can sell summer wear. In cold regions you can sell

warm clothes. A small business commodity store may target only customers from the

local neighborhood, while a larger department store can target it's marketing towards

several neighborhoods in a larger city or area.

Psychographic segmentation

Psychographics is the science of using psychology and demographics to better

understand consumers. Psychographic segmentation: consumers are divided according

to their lifestyle, personality, values and social class. Consumers within the same

demographic group can exhibit very different psychographic profiles.

Positive market segmentation

Market segmenting is dividing the market into groups of individual markets with

similar wants or needs that a company divides into distinct groups which have distinct

needs, wants, behavior or which might want different products and services. Broadly,

markets can be divided according to a number of general criteria, such as by industry

or public versus private. Although industrial market segmentation is quite different

from consumer market segmentation, both have similar objectives. All of these

methods of segmentation are merely proxies for true segments, which don't always fit

into convenient demographic boundaries.

This part of the segmentation process consists of drawing up a perceptual map, which

highlights rival goods within one's industry according to perceived quality and price.

After the perceptual map has been devised, a firm would consider the marketing

communications mix best suited to the product in question.

Behavioral segmentation

In behavioral segmentation, consumers are divided into groups according to their

knowledge of, attitude towards, use of or response to a product. It is actually based on

the behavior of the consumer. Called behavioral segmentation.

Occasions

Segmentation according to occasions is based on the arising of special need and

desires in consumers at various occasions. For example, for products that will be used

in relation with a certain holiday. Products such as Christmas decorations or Diwali

lamps are marketed almost exclusively in the time leading up to the related event, and

will not generally be available all year round. Another type of occational market

30

segments are people preparing for their wedding or a funeral, occasions that only

occurs a few times in a persons lifetime but happens so often in a large population that

it can be considered a market segment.

Benefits

Segmentation takes place according to benefits sought by the consumer or which the

product/service can provide.

Using segmentation in customer retention

The basic approach to retention-based segmentation is that a company tags each of its

active customers with three values:

Is this customer at high risk of canceling the company's service?

One of the most common indicators of high-risk customers is a drop off in usage of

the company's service. For example, in the credit card industry this could be signaled

through a customer's decline in spending on his or her card.

Is this customer worth retaining?

This determination boils down to whether the post-retention profit generated from the

customer is predicted to be greater than the cost incurred to retain the customer.

What retention tactics should be used to retain this customer?

For customers who are deemed worthy of saving, it is essential for the company to

know which save tactics are most likely to be successful. Tac`tics commonly used

range from providing special customer discounts to sending customers

communications that reinforce the value proposition of the given service.

Niche marketing

A niche is a more narrowly defined customer group who seek a distinct set of

benefits. Identified by dividing a segment into sub segments, distinct and unique set

of needs, requires specialization, and is not likely to attract too many competitors.

Price discrimination

Where a monopoly exists, the price of a product is likely to be higher than in a

competitive market and the quantity sold less, generating monopoly profits for the

seller. These profits can be increased further if the market can be segmented with

31

different prices charged to different segments charging higher prices to those

segments willing and able to pay more and charging less to those whose demand is

price elastic. The price discriminator might need to create rate fences that will

prevent members of a higher price segment from purchasing at the prices available to

members of a lower price segment. This behavior is rational on the part of the

monopolist, but is often seen by competition authorities as an abuse of a monopoly

position, whether or not the monopoly itself is sanctioned. Areas in which this price

discrimination is seen range from transportation to pharmaceuticals.

SEGMENTATION OF PIZZA HUT:

Main segments which Pizza hut has captured are the combination of higher

incomes and dual career families, due to higher income consumer have more

disposable income, allowing them to eat out more often .Pizza Hut holds the

most market share in the Pizza industry, the perceived quality and service of

the company will help to ensure a better the average chance at a successful

introduction of a new product. The introduction of a product that keeps with

today trends is also important to reduce the risk of failure. Pizza Hut maximum

market segment is younger generations. These generation ranges from 12 to

30, the overall spending of these generations is mostly on non essential

items, the higher amount of spending has been done on eating out.

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POSITIONING

Pizza Hut was among the first multinational brands to enter the food

retail sector in India. When the first Pizza Hut restaurant opened in India

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. 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. Crew members 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. Pizza Hut's constant endeavor 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 147 restaurants

across 38 cities.

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Market Targeting

Pizza hut targeted market defines them as a family product. This is because

they don’t really directly market their customers. They are target everyone

whereas their competitors target a certain gender or age. But pizza hut targets

a wide range of customers. This is because they want to make the most

money and who blames them.

They have many competitors and they are bound to try everything to cope up

tops. Their competitors are everywhere. There are just a few that are main

competitors and pizza hut will always try to be the best and get the most

money by making their products better quality but also cheaper.They try to

offer something different with their product as well. They offer a range of

stuffed crusts to try and attract customers. They also do vegetarian options

with meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer

a salad and a pasta bar. This is another competitive idea to attract customer.

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COMPARATIVE STRATEGY:

This forced competitors to look for new methods of increasing their customer

bases. Many pizza chains decided to diversify and offer new no pizza items

such as Buffalo wings, and Italian cheese bread. The current trend in pizza

chains today is the same. They all try to come up with some newer, bigger,

better, pizza for a low price. Offering special promotions and new pizza

variations are popular today as well. For example, chicken is now a common

topping found on pizzas. In the past, Pizza Hut has always had the first mover

advantage. Their marketing strategy in the past has always been to be first.

One of their main strategies that they still follow today is the diversification of

the products they offer. Pizza Hut is always adding something new to their

menu, trying to reach new markets. For example, in 1992 the famous buffet

was launched in Pizza Hut restaurants worldwide. They were trying to offer

many different food items for customers who didn't necessarily want pizza.

Another strategy they used in the past and are still using is the diversification

of their pizzas. Pizza Hut is always trying to come up with some innovative

way to make a pizza into something slightly different -different enough that

customers will think it’s a whole new product. For example, let's look at some

of the pizzas Pizza Hut has marketed in the past. In 1983, Pizza Hut

introduced their Pan Pizza, which had a guarantee of being ready to eat in 5

minutes when dining at Pizza Hut restaurants. In 1993, they introduced the

"Bigfoot," which was two square feet of pizza cut into 21 slices. In 1995, they

introduced "Stuffed Crust Pizza," where the crust would be filled with cheese.

In 1997, they marketed "The Edge," which had cheese and toppings all the

way to the edge of the pizza. Currently, they are marketing "The Big New

Yorker," trying to bring the famous New York style pizza to the whole country.

Lastly, Pizza Hut has always valued customer service and satisfaction. In

1995, Pizza Hut began two customer satisfaction programs: a UAN (in USA 1-

800) number customer hotline and a customer call-back program. These were

implemented to make sure their customers were happy, and always wanted to

return. In our plan, we will first give a situation analysis of current and relevant

35

environmental conditions that affect our plan. Next, we will give a brief

analysis of the current fast food industry, and any trends or changes that

might occur in the future.

36

PRODUCTS OFFERED BY PIZZA HUT

The Pizza Hut® menu provides a variety of selections, such as:

• 4 for All™ Pizza

• Sicilian Pizza

• Honey BBQ Chicken®

• Pan Pizza

• Hand-Style Tossed Pizza

• Thin n’ Crispy®

• Stuffed Crust Pizza

• The Big New Yorker Pizza

Pizza Hut also offers a Lover’s Line and P’Zone

Pizzas in addition to the following menu items:

• Appetizers/Salads:

• Lunch Buffet:

• Breadsticks

• Spaghetti with marinara or

meat sauce

• Wings (hot & mild)

• Kid’s meal (PPP w/drink)

• Garlic bread

• Dessert Pizzas (apple and

cherry)

• Salad Bar

• Beverages – soft drinks, beer,

tea, coffee, and milk.

37

ENVIRONMENTAL AND INTERNAL ANALYSIS OF

PIZZA HUT

In my visit to Pizza Hut i conducted research on PEST (Political, Economic,

Social

and Technological) Analysis.

In the internal analysis of Pizza Hut we have considered SWOT of the

Company.

PEST (Political, Economic, Social & Technological)

i. POLITICAL ISSUES:

Political issues include regulatory frame work operating in judicial system

which

may affect the business in different ways. There are not many political factors

in

Peshawar affecting Pizza Hut as is lack of competition. Factors such as laws

on

business employment, pollution and taxation apply on the organization which

it

has to follow regarding the rules.

ii. ECNOMIC FACTORS:

If the county’s economy is better so the GDP of the country will be good, this

is a

green signal for the business as the per capita income of the people will be

increased and they will spend more money. In our survey we came to know

that

most of the people in the beginning of the months spend more and they visit

pizza

hut very often. When the inflation rate increases the cost of raw material also

increases and this leads towards high prices of the products and vice versa.

iii. SOCIAL FACTORS:

Pizza hut is a multinational and it is basically originated from America so the

38

organization is overwhelmed by western culture. There are social forms of

society

which consist of Upper class, middle class, middle upper class, lower class

and

lower class. Every country has cultural norms, values, beliefs and religion

which

can affect the organization.

iv. TECHNOLOGICAL FACTORS:

Now a day’s technology is improving so as baking and heating ovens will be

of new

and efficient technology and will provide efficient service. Due to new

technology

there are new ways of marketing like internet; telemarketing and the

organization

can advertise their products with much more faster pace. Computer based

customer data that is MIS (managing information system) helps in collecting

customer data, daily transactions, future forecasting and decision making.

New

vehicles will make their service more efficient.

39

ABOUT THE TOPIC SPECIFY

I have done my project on the title of “role of market segmentation in enhancing the

sales of pizza hut”. Pizza hut is one of the leading restaurants company in India.

Company has won the India’s most Trusted Food Services Brand. In this restaurant I

learned about the pizza industry, full details about the pizza hut’s market segments. i

come to know the products of pizza hut and I worked particularly in marketing

department, so that I learned how pizza hut is working on its market segments & what is

their role in sales, how pizza hut is treating the customers, how to handle the

customer’s queries ,etc. .

DESIGN OF STUDY

A design of study provides the framework to be used as a guide in collecting and

analyzing data. Market survey is one of the best examples of descriptive research.

This is a short research study at a given point of time, and consists of a sample of the

population of interest. Its advantages are that it gives a good overall picture of the

position at a given time. It can cover many variety of interest, and is not affected by

the movements of elements in the sample. Because other elements can be

substituted for them. My research is to discover the possible measures, by detailed

analysis, for the company which would be helpful up to some extent to retain a good

position in the competitive market.

40

OBJECTIVES OF STUDY

The aim of this research is to explore how market is segmented in pizza hut in order

to develop an integrated model appropriate to supporting the introduction of further

market segments so as to increase its sale Therefore, following objectives should be

considered

To highlight the future challenges before the managers.

To explain the steps in market planning.

To explain various types of market segments.

How to improve and maintain image of product and business.

How to increase sales revenue.

How to target a new market.

How to make new market segment.

How to satisfy the customers.

How to generate customer base for business.

How to create good image.

To increase the quality of life of people.

To understand market opportunities

.

To understand strategies to increase market share.

To understand the communication chain to customers.

41

SIGNIFICANCE

Successful companies almost all have a significant market share; it is rare for more

than three or four companies to be truly successful in any segment of the market. It is

not unusual for one company to dominate with every other company trying to catch

up.

There are a number of reasons for this:

A dominant supplier controls the market and sets expectations of price and

quality

He develops a reputation and brand, he is highly visible

There is a “comfort factor” in buying from a market leader

Customers come to him first a

Marketing becomes very much easier if you are a big player in your market

place. It you are not, you will always struggle to be seen.

It is often said that it is better to be a relatively big fish in a small pond than a

small fish in a big pond and the way to achieve this is to shrink your target

market. You should specialize on a particular sort of customer. This is called

segmenting the market. When you do this, it is much easier to become known

and develop a reputation. You can concentrate your marketing activities.

Referrals are both easier and more effective. You learn the special needs or

desires of your customers. So, how do you select your segment? To be useful, a

segment must be:

Different

Relevant

Significant

Accessible

Suitable size

The main aim of market segmentation is to categories the customers according to their

need and to provide them the best product the product should be different as well as

should be according to the budget, it should hold a significance and should provide

satisfaction to customer as well segmentation also provide the information on the

popularity of the product. The market segmentation gives opportunity to the firm to

generate profit based on the desire of the customer; it provides them the information

42

on the sale of the product from particular segment. Hence market segmentation plays

a vital role in building up of a firm.

Review of literature

Art Weinstein said in his book “The most important thing I've learned from working in

market segmentation research and strategy for more than 15 years is that few

companies get the most from their target marketing. Their top executives advocate

the need to be market- or customer-oriented but base their marketing plans on

cursory, incomplete, or emotional analyses. They end up with 'fuzzy' business

missions, unclear objectives, information that isn't decision-oriented, unfocused

promotional strategies, and no real plan to attack niche markets. This happens

because they haven't developed an effective strategy for segmenting high-tech and

industrial markets. They don't have a process that introduces and improves their

business segmentation planning and execution. What they need is a handbook for

improving their organization's performance in new and existing business markets.” It’s an important research in the field of marketing. I have referred many books and

previous research reports on the market segmentation among which few is PHILLIP

KOTLER for marketing and the previous year research report on the marketing

strategy of pizza hut S.I.M.B.S BANGLORE. I have gone through the various

magazines such as Q.S.R magazine which stands for quick service and fast service

restaurant news. This magazine says that pizza hut is dominated in all of its segments

with its competitors this year which is 2013 ,

Further I have gone for the literature in the past I came to know that about my topic

which is market segmentation of pizza hut and its effect on sales of pizza hut I have

reviewed literature present on Google and I have reviewed the student pack offered

by pizza hut for students. I have visited the official sites of pizza hut site which is

www.pizzahut.com to gather information about its products and the type of customers

its deals with.

43

Research gap

I have review many literature so far and no one is providing the emphasis on the

,market segmentation, from earlier research I came to know that there is a research

gap because most of the data I have captured shows the marketing techniques only no

one is providing the detailed information on the segments and their role in sales . To

fulfill this gap I am doing this research.

Research methodology

Research refers to answering to a question or a solution to a problem in a systematic and

scientific manner. Research always starts with a question or a problem .Its purpose is to

question through the application of the scientific method. It is a systematic and intensive

study directed towards a more complete knowledge of the subject studied.

Marketing research specifies the information required to address these issues, designs,

and the method for collecting information, manage and implemented the data collection

process, analyses the results and communicate the findings and their implication.

I have prepared my project as descriptive type, as the objective of the study demands

the answer of the question related to find the opinion of people about PIZZA HUT.

SAMPLING

A new independent study proves for the first time in-store sampling not only has dramatic

sales impact on the day of the sampling event, but also increases sales of established

products and line extensions, as well as new products, for many weeks following. The

study also found in-store sampling lifts sales of the entire brand franchise in addition to

the sampled brand, among other things never thought possible. As a result of the study,

for the first time in-store sampling can now be considered measured media, and its cost

effectiveness, when applied to all of the sampling’s benefits over time, is significantly

greater than previously believed.

The methodology used to sample from a larger population will depend on the type of

analysis being performed, but i will include simple random sampling systematic sampling

and observational sampling. The sample should be a representation of the general

population.

44

SAMPLE SIZE

Sample size refers to the number of items to be selected from the universe to constitute a

sample. The size of sample should neither be excessively large, nor too small, it should be

optimum. We have selected the sample size as 100.

SAMPLE UNIT

Sampling unit refers to who are the people we are target to collect the primary data. My

sampling unit is customers.

I have undergone the random sampling technique to collect the data. Questionnaire,

interaction with customers and inception are the techniques which i used in this

research. Sampling unit for this project is all the outlets of pizza hut in Jaipur. I will

personally visit these outlets and will meet the marketing managers so that to explore

the different market segments and to pursue a thorough study of them.

45

DATA COLLECTION

To know the response, I have used the questionnaire method. If one wishes to find what

prospects think or know, the logical procedure is to ask them. This has led marketing

researches to use the questionnaire technique for collecting data more than any other

method.

In this method questionnaire were distributed to the respondents and they were asked to

answer in the questionnaire. The respondents were aware of the objective. They knew

why they were asked to fill the questionnaire.

Data’s are collected in two ways

Primary data: data observed and collected directly from 1st hand experience.

Secondary data: published data or data collected in past or by other parties.

Primary Data:

1. Questionnaire

2. Personal interactions.

Secondary Data:

1. Various official websites.

2. Through pamphlets and Boucher of the company.

3. Newspaper and Magazines.

46

LIMITATIONS OF RESEARCH

LIMITATION OF TIME:

The time specified for the way the survey was 60 days which is a short time to analyze

each and every aspect related to the unit. If the time allowed would have been more, then

the selection and size could have been improved and thus, degree of accuracy of the

findings would have been higher.

LIMITATION OF SAMPLE SIZE:

The information embodied in the report may not prove to be perfect and reliable

since only a small sample size of 20 was selected for food habits of

Bangaloreand50 customer’s feedback in Pizza Hut.

While designing the questionnaire it was kept in mind to gather more and more

information from each target person. For the neither present nor descriptive

question could have served the purpose. Therefore the questionnaire contained

both open ended and closed ended questions.

The accuracy of indication given by the responsible may not be consider adequate

as whether the language used in the questionnaires understood by the respondent

cannot be taken for granted.

Language barrier, language barrier is the basic thing which we find difficult to

overcome it while we going for study.

There is the possibility of error in data collection.

Possibility of error in analysis of data due to small sample size.

Time is also one of the major limitations of this research.

Some of the people were not ready to cooperate and were not ready to share any

information with us.

The views of respondents are likely to change as human’s nature is very dynamic.

The result figure may be biased since the respondents. Investors may provide

wrong information.

The survey may not give the whole scenario of the Indian market.

47

DATA ANALYSIS AND INTERPRETATION

I have taken statistics of 60 days and selected 50 people for the purpose of analysis.

Each person has its own opinion about pizza hut.

Each person indicates about its own need so in order to overcome bias, in random I

have collected interview of 100 people.

The following processed data are interpreted:

Male -female ratio

Age group

Profession

Financial status

Income group

With whom you are going

Pizza size

Meal

Occasion

Branches of pizza hut

Price range

Timings of visits

Rating of pizza hut

48

For all the above the, that tabular form and graphs are provided as below.

MALE FEMALE RATIO:

Opinion of 100 people.

INTERPRETATION: THIS SURVEY TABLE AND CHART 1 SHOWS

OF 100 PEOPLE, OUT OF THEM 54 IS MALES AND 46 ARE FEMALES.

46%

54%

MALE-FEMALE RATIO

male

female

S.NO PARTICULARS NO. OF RESPONDENTS

(%)

1 MALE 46

2 FEMALE 54

TOTAL 100

49

AGE GROUP:

OPINION OF 100 PEOPLE.

INTERPRETATION: THIS SURVEY TABLE AND CHART 2 SHOWS

100 OF 25 PEOPLE IN EACH GROUP.

25

25 25

25

AGE GROUP

10 TO 18 18 TO 25 25 TO 35 35 & ABOVE

S.NO AGE GROUP NO OF RESPONDENTS (%)

1 10-18 25

2 18-25 25

3 25-35 25

4 35 AND ABOVE 25

TOTAL 100

50

PROFESSION:

OPINION OF 100 PEOPLE.

INTERPRETATION: THIS CHART 3 SHOWS 100 PEOPLE OUT OF

WHICH MAJORITY IS STUDENTS.

38%

20%

10%

5%

20%

5%

2%

PROFESSION

student

govt. service20

private service

industrialist

self employed

professional

others

S.NO PARTICULARS NO OF RESPONDENTS (%)

1 STUDENT 38

2 GOVERNMENT

SERVICE

20

3 PRIVATE SERVICE 10

4 INDUSTRIALIST 5

5 SELF EMPLOYED 20

6 PROFESSIONAL 5

7 OTHERS 2

TOTAL 100

51

FINANCIAL STATUS:

OPINION OF 100 PEOPLE.

INTERPRETATION: CHART 4 SHOWS 100 PEOPLE OUT OF WHICH

56% ARE DEPENDENT AND 44% ARE INDEPENDENT.

44%

56%

FINANCIAL STATUS

DEPENDENT

INDEPENDENT

S.NO PARTICULARS NO OF

RESPORNDENTS (%)

1 INDEPENDENT 44

2 DEPENDENT 56

TOTAL 100

52

INCOME GROUP (AVERAGE MONTH INCOME):

OPINION OF 100 PEOPLE.

INTERPRETATION: ABOVE TABLE AND CHART 5 SHOWS 100

PEOPLE OUT OF WHICH THE PEOPLE HAVING INCOME 30000 AND ABOVE

FORMS THE MAJOR SEGMENT.

15

18

20

47

INCOME GROUP

0 TO 5000 5000 TO 15000 15000 TO 30000 30000 & ABOVE

S.NO PARTICULAR NO OF

RESPONDENTS (%)

1 0-5000 15

2 5000-15000 18

3 15000-30000 20

4 30000 AND ABOVE 47

TOTAL 100

53

WITH WHOME YOU ARE COMING TO PIZZA HUT?

OPINION OF 100 PEOPLE

INTERPRETATION:FROM THE ABOVE TABLE & CHART 6 WE CAN

SAY PEOPLE GENERALLY VISIT PIZZA HUT WITH THEIRE FAMILY

MEMBERS AND FRIENDS.

ALONE 4%

FRIENDS 39%

FAMILY 41%

BELOVED 6%

COLLUIGE 10%

WITH WHOME YOU ARE COMING

TO PIZZA HUT?

S.NO PARTICULAR NO. OF RESPONDENTS

1 ALONE 4

2 FRIENDS 39

3 FAMILY 41

4 BELOVED 6

5 COLLUIGE 10

TOTAL 100

54

SIZES OF PIZZA:

OPINION OF 100 PEOPLE.

S.NO PARICULAR NO. OF

RESPONDENTS

1 SMALL 20

2 MEDIUM 50

3 LARGE 30

TOTAL 100

INTERPRETATION: ABOVE TABLE AND CHART 7 SHOWS THAT

PEOPLE GENERALLY LIKE TO HAVE MEDIUM AND LARGE SIZE PIZZA IN

PIZZA HUT.

20%

50%

30%

SIZES OF PIZZA

SMALL

MEDIUM

LARGE

55

MEAL:

OPINION OF 100 PEOPLE.

S.NO PARTICULAR NO. OF

RESPONDENTS (%)

1 BRUNCH 10

2 LUNCH 25

3 EVENING SNACKS 20

4 DINNER 45

TOTAL 100

INTERPRETATION:ABOVE TABLE AND CHART 8 SHOWS THAT

PEOPLE LIKE TO VISIT PIZZA HUT FOR TO MAJOR MEALS EVENING

SNACKS AND DINNER.

10%

25%

20%

45%

MEAL

BRUNCH LUNCH EVENING SNACKS DINNER

56

SATISFACTION WITH THE PRICE:

OPINION OF 100 PEOPLE

INTERPRITATION: ABOVE TABLE AND CHART 9 SHOWS THAT

FROM 100 PEOPLE 52 PEOPLE ARE NOT SATISFIED AND 48 PEOPLE ARE

SATISFIED.

48%

52%

SATISFACTION

YES NO

S.NO PARTICULAR NO. OF

RESPONDENTS

(%)

1 YES 48

2 NO 52

TOTAL 100

57

OCCASION:

OPINION OF 100 PEOPLE.

INTERPRITATION: ABOVE TABLE AND CHART 10 SHOWS

PEOPLE VISITS PIZZA HUT MOSTLY ON BIRTHDAY PARTIES,

ANYVEERSARY AND ANY OTHER TIME.

30%

25%

30%

5% 10%

OCCASION

BIRTHDAY ANNIVERSARY REGULARLY OCCASSIONALY ANY OTHER TIME

S.NO PARTICULAT NO. OF

RESPONDENTS (%)

1 BIRTHDAY 30

2 ANNIVERSARY 25

3 REGULARLY 30

4 OCCASSIONALY 5

5 ANY OTHER TIME 10

TOTAL 100

58

BRANCHES OF PIZZA HUT:

OPINION OF 100 PEOPLE.

INTERPRETATION: THE ABOVE TABLE AND CHART 11 SHOWS

100 PEOPLE OUT OF WHICH 20 PEOPLE IN EACH QUADRENT LIKE EACH

BRANCH OF PIZZA HUT.THIS IS BEACAUSE OF LOCATION

SEGMENTATION.

20%

20%

20%

20%

20%

BRANCHES OF PIZZA HUT

GAURAV MATHUE CRYSTAL PALM EVERSHINE TOWER

HYPERCITY MALL GOVIND MARG

S.NO PARTICULARS NO. OF RESPONDENTS (%)

1 GAURAV TOWER 20

2 CRYSTAL PALM 20

3 EVERSHINE TOWER 20

4 HYPERCITY MALL 20

5 GOVIND MARG 20

TOTAL 100

59

PRICE RANGE:

OPINION OF 100 PEOPLE.

S.NO PARTICULARS NO. OF RESPONDENTS

(%)

1 125-200 RS 40

2 200-400 RS 30

3 400-600 RS 20

4 600 & ABOVE 10

TOTAL 100

INTR PRETATION: THE ABOVE TABLE AND CHART 12 SHOWS 100

PEOPLE OUT OF WHICH 40 LIKES BUY PIZZA IN RANGE OF 125-200 AND

3O PEOPLE PEOPLE BUY PIZZA IN 200-400 HUNDRED RANGE AND FORMS

THE MAJOR PART OF CHART.

40%

30%

10%

20%

PRICE RANGE

125 TO 200 RS

200 TO 400

400 TO 600

600 & ABOVE

60

TIMINGS OF VISIT:

OPINION OF 100 PEOPLE

INTERPRITATION: THE ABOVE TABLE AND CHART 13 SHOWS

THAT OUT OF 100 PEOPLE 40 PEOPLE VISIT PIZZA HUT IN BETWEEN 9 -11

PM AND 30 PEOPLE VISITS FROM 6-9 PM.

5% 15%

10%

30%

40%

TIMINGS OF VISIT

9 TO 12 PM 12 TO 3 PM 3 TO 6 PM 6 TO 9 PM 9 TO 11 PM

S.NO PARTICULARS NO OF RESPONDENTS

(%)

1 9-12 PM 5

2 12-3 PM 15

3 3-6 PM 10

4 6-9 PM 30

5 9-11 PM 40

TOTAL 100

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RATING OF PIZZA HUT:

OPINION OF 100 PEOPLE.

S.NO PARTICULAR NO OF

RESPONDENT

1 POOR 20

2 GOOD 30

3 VERY GOOD 40

4 EXCELLENT 10

TOTAL 100

INTERPRETATION:THE ABOVE TABLE AND CHART 14 SHOWS

THAT OUT OF 100,40 PEOPLE RATE PIZZA HUT AS VERY GOOD AND 30

PEOPLE RATE IT AS GOOD AND OUT OF 100 ONLY 20 PEOPLE CRITISISED

IT & 10 RATE IT AS EXCELLENT.

20%

30%

40%

10%

RATING OF PIZZA HUT

POOR

GOOD

VERY GOOD

EXCELLEN

62

CONCLUSION

Pizza hut is a big company it has to achieve targets in a given period of

time. The time period is mostly a year. The target has to be full filled in

given period of time in order to maintain the market share of the firm,

therefore to fill the target the pizza hut is segmented its market into

different segments in order to maintain its market share and to increase its

sales. It can be concluded that their market segmentation strategies have

been successful and there is flexibility in the strategies as they can be

change with the change in market conditions.

63

FINDINGS OF THE STUDY

Market segmentation research in general has a very wide scope.

Scope refers to the various avenues which are covered under a given field of

study.

Market segmentation Research covers target market, pricing, sales and

distribution researches and so on.

Every research study starts with a problem and the conclusions derived from

the study becomes an information of paramount importance in making

business decisions.

Decisions taken on the basis of research conclusion yields miraculous results.

Objective of the research study is one is one of the decisions to be taken by the

firm.

However, there are indirect implications of any research study.

Scope of the research study directly depends upon the type and quality of

research.

Research done with general objectives will have wider scope as compared to

research done with specific objective.

As I have done two kinds of survey, Food habits of Jaipur people and

Feedback of customers of Pizza Hut.

.The scope of survey conducted by me can be summarized as

follows:

64

Profile of consumers.

Consumer Behavior.

Brand Awareness &Brand Importance.

Competitive Analysis.

Product Portfolio Management.

Modifications in the pricing strategy.

Level of customer satisfaction for quality, services, taste& infrastructure.

Types of food people prefer.

Opinion about the future of fast food business

Reasons to like Pizza Hut.

Suggestions for better prospectus of Pizza Hut.

65

SUGGESTIONS

Introduce more variety of non vegetarian pizzas in order to attract the non

vegetarian customers.

Special discounts should be given to students.

The prices of pizza should be nominal.

Provide batter services to the consumers with improved service skills

Open more branches of pizza hut in city in order to increase sales.

Introduce female waitresses to the service team.

Provide offers on the purchase from pizza hut.

Introduce new varieties of pizzas in order to form new segment.

Introduce pizza according to Indian culture in order to maintain sale as

sometimes the people hesitate to try other cuisine a little Indian touch will

provide them the pizza they need.

Increase the no. of drinks in the menu as there is less variety of drinks and it

causes problem at the time of taking order.

Develop combos according to different segments of the market.

Hidden charges should not be there the menu should have each and every

information regarding tax.

66

BIBLIOGRAPHY

In order to have practical knowledge of training, the theoretical knowledge is

must i.e. the basic theoretical concerns must be clear.

In preparing this report. Moreover, extra information of Pizza Hut and I have

visited some websites also.

Phillip kotler for marketing management.

Art Weinstein market segmentation.

Sally dib and Lyndon simkin.

Essentials of marketing. Charls w. lamb, joiseph f fair

WEBLIOGRAPHY

www.google.com

www.wikipedia.org

www.pizzahut.com

www.pizzahut.co.in

67

ANNEXURES

QUESTIONNAIRE

A marketing questionnaire can be used for several purposes. Key among them is to

gauge whether the Particular development in the product and services is needed or not.

Questionnaire can also help to know new product other than the target products.

Questionnaire also helps to know about the target market, target season & target client,

peak times so as to know about the customer satisfaction.

Such questionnaire tests the customer knowledge about the product and services offered

by the particular organization.

A marketing questionnaire helps the organization by providing the information about

their competitors.

It provides detailed information on the basis of which further marketing strategies are

developed.

It provides information about the product popular among the customers and products

which are not at all popular.

By providing this information it helps the firm to add and remove the products according

to customer needs.

68

QUESTIONNAIRE

NOTE: This questionnaire is just for the college research work, so all

information in this Questionnaire will not be disclosed to any company

officials or other.

Customer name: ___________

Email id: _________

Phone no.: ________________

Date: ___________

Q1 WHAT IS YOUR AGE GROUP?

A) 10-18

B) 18-25

C) 25-35

D) 35 AND ABOVE

Q2 WHAT IS YOUR PROFESSION?

A) STUDENT.

B) GOVERNMENT SERVICE.

C) PRIVATE SERVICE.

D) INDUSTRIALIST.

E) SELF EMPLOYED.

F) PROFESSIONAL.

G) OTHERS.

69

Q3 WHAT IS YOUR FINANCIAL STATUS?

A) DEPENDENT.

B) INDEPENDENT.

Q4 WHAT IS YOUR INCOME GROUP?

A) 0-5000 RS

B) 5000-15000 RS

C) 15000-30000 RS

D) 30000 & ABOVE

Q5 WITH WHOME YOU ARE COMING TO PIZZA HUT?

A) ALONE.

B) FAMILY.

C) FRIENDS.

D) BELOVED.

E) COLLUGE.

Q6 WHICH SIZE OF PIZZA YOU GENERALLY PREFER TO BUY IN

PIZZA HUT?

A) SMALL.

B) MEDIUM.

C) LARGE.

Q7 WHICH MEAL IN PIZZA HUT YOU GENERALLY OPT FOR?

A) BRUNCH

70

B) LUNCH.

C) EVENING SNACKS.

D) DINNER.

Q8 ARE YOU SATISFIED WITH THE PRICE CHARGED BY PIZZA

HUT?

A) YES.

B) NO.

Q9 HOW OFTEN YOU TAKE MEAL IN PIZZA HUT PER MONTH?

A) LESS THEN 1 TIME.

B) 1-2 TIMES.

C) 3-5 TIMES.

D) MORE THAN 5 TIMES.

Q10 WHICH OCCASION YOU LIKE THE MOST TO VISIT PIZZA HUT?

A) BIRTHDAY PARTY.

B) ANNIVERSERY.

C) OCCASSIONALY.

D) REGULARLY.

E) ANY OTHER TIME.

Q11 WHICH BRANCH OF PIZZA HUT YOU LIKE THE MOST?

A) GAURAV TOWER(MALVIYA NAGER)

B) CRYSTAL PALM(22 GODAM)

71

C) HYPERCITY MALL(JHONTWADA)

D) EVERSHINE TOWER(VAISHALI NAGER)

E) GOVIND MARG(RAJA PARK JAIPUR)

Q12 IN WHICH PRICE RANGE YOU GENERALLY BUY PIZZA FROM

PIZZA HUT?

A) 125-200 RS.

B) 200-400 RS.

C) 400-600 RS.

D) 600 & ABOVE.

Q13 AT WHAT TIME YOU LIKE TO VISIT PIZZA HUT?

A) 9-12 PM

B) 12-3 PM

C) 3-6 PM

D) 6-9PM

E) 9-11PM

Q14 WHAT WILL YOU RATE PIZZA HUT IN COMPARISON TO

DOMINOS

AND PIZZA WORLD?

A) GOOD.

B) VERY GOOD.

C) AVERAGE.

D) POOR.

72

QUESTIONNAIRE

NOTE: This questionnaire is just for the marketing managers & for the

employs of marketing department. The information gathered from this

questionnaire is only for college research work not to be disclosed to any

other person

Manager name: ___________

Employee id: _________

Phone no.: ________________

Date: ___________

Q1 PEOPLE OF WHICH AGE GROUP IS GENERALLY VISITING PIZZA

HUT?

A) 10-15

B) 15-25

C) 25-30

D) 30 AND ABOVE.

Q2 WHAT IS THE RATIO OF MALE AND FEMALE?

_____________________________________________

Q3 WHICH PIZZA SALES IS MAXIMUM?

_____________________________________________

73

Q4 ACCORDING TO YOU WHAT KIND OF SPENDING POWER

CUSTOMERS

HAVE?

A) EXCELLENT.

B) GOOD.

C) AVERAGE.

D) POOR.

Q5 ACCORDING TO YOU WHAT TIME THE SALES IS AT ITS PEAK?

A) 9AM-12PM

B) 12PM-3PM

C) 3PM-6PM

D) 6PM-9PM

E) 9PM-11PM

Q6 WHICH KIND OF TARGET MARKET PIZZA HUT HAS?

A) YOUTH

B) FAMILY

C) OLD PEOPLE.

D) PEOPLE WITH HIGHER INCOME.

E) PEOPLE WITH LOVER INCOME.

F) ALL THE ABOVE.