Family Life Cycle and SEC

Family Life Cycle

Family Life Cycle concept is something a marketer uses to know the family’s needs outlooks product purchases and financial resources vary over time and how he can pitch his products according to their need. India most of the families are in newly married and the bachelor stages. According to the census , India has large number age group is of the youth .With the increase of disposable income , two income families , there is now more spending tendency in the families . The food habits have also changed to a large extent.  So, this is playing a major influencing factor in pizza hut targeting the youth.

Social Economic Classification

Pizza hut targets the two income families. The age group that it targets is from 13 years -40 years. They target especially the teenagers and youth , as they are the highest population and also are ready to spend . As , pizza hut is in the early maturity stage , it has been doing lot of advertising campaigning in order to sustain in the market . It wants to attract the other segments , which are not a part of its customer base. It is essential that it has as many as loyal customers , as it would help them in later stages to stand in the market .

Services and Services Marketing

  

The 7 P’s of Pizza hut

Product

The first p is the product which includes the variety of products that pizza hut offers to its customers. Along with pizzas it has appetizers, soups , desserts , beverages , pastas , salads , starters etc .  Each product variety has different offerings. In India basically there are two main categories of products , the vegetarian and the non-vegetarian .they emphasize more on the vegetarian as there is a lot of demand for them and they suit the eating habits of Indians .In non- vegetarian , more of chicken products are available compared to the others as it is highly consumed compared to the other meat .

Price

Pizza hut adopts the skimming pricing. They have at first priced their products at high rates and have slowly lowered their rates in order to reach more customers .By pricing them high, they could win the belief of the customers that they offer high quality food and great service. They have lowered the prices so much that , a pizza is available at 65 rupees . Pizza hut is using low price for meal and expensive for high end.

Promotion

They have promoted it by bringing in Indianised vegetarian varieties of pizzas . They have introduced special Jain menu sans root- based ingredients .they had the first pizza delivered outer space. They have done rigorous advertising through television , print and internet. They have started social responsibility project by  “Feed one “ campaign , by feeding the kids and providing them with education .

Place

Since , they are franchise , all the same look is maintained throughout the country in all their outlets . They have their outlets in shopping malls , airports etc. They are entering into the two- tier and three  tier cities .

 People

The people in pizza hut are known for their excellent customer service. They are well trained  and friendly to the customers .

Physical Evidence

The ambience is vibrant and casual to appeal to youth .  The music played is also very appealing to the youth .And Bell in the pizza hut outlet , which says good times in pizza hut , where the customer who is happy rings the bell . This has been its unique significant feature in all its outlets.

Process

The process in the pizza hut is systematic. The sales people would immediately attended to the customers taking their orders delivering them and billing them etc . The process of the door delivery is also quick , just a phone call and the pizza is delivered before 30 minutes to the customers .

Distribution Decision

Distribution Decision

Franchising in India has been consistently growing at more than 30 percent for the past five years, according to the Franchising Association of India.  Several international brands have entered the country through franchising in the last few years. The pizza franchise expanded itself in India and now has the KFC brand beneath its umbrella. The fast food franchise was the first international fast food firm to make an entry into the Indian scene and has thus pioneered the Indian pizza market. Liberalization and economic reforms have had an immense positive impact. The young people in India are reaping the dividends of its economic reforms. It is the customer satisfaction provided by the specialty food franchise that enabled it to position itself at the top of the Indian fast food market. The fast food franchise also ensures that it adds an Indian touch to all the varieties of pizzas that it makes available to Indian customers. Various delicious combinations are tested at the Indian Pizza Hut franchisee outlets by blending the original menu with Indian favorites to make fresh salads, garlic based breads, soups, yummy pastas and delicious desserts.

Pizza Hut will open 300 exclusive outlets under its sub-brand, Pizza Hut Delivery (PHD), by 2015 to tap the demand in fast food home delivery segment. The company is keen on taking the franchise route to expand its retail network. Pizza Hut launched its first PHD in 2008, in Bangaluru on a trial basis. After its success the company now plans aggressive expansion via the format. PHD concept has been in the international markets for a long time but has been introduced in India in the last couple of years.
Currently, Pizza Hut operates 35 standalone PHD outlets and about 145 Pizza Hut casual dine restaurants.

Branding

Brand and Branding

A brand is the idea or image of a specific product or service that consumers connect with, by identifying the name, logo, slogan, or design of the company who owns the idea or image. Branding is when that idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product. Pizza hut as a brand with its logo and slogan have been apt for what it stands offerr. As, they have repositioned themselves lately, as the best pizzas under one roof and the logo also represents it in an apt way . And the brand pizza hut is marketed to the people, especially the youth in its own vibrant way .Pizza hut as a brand stands for its unique variety of food offered and also its customer service .

Pizza hut has been continuously re-positioning itself every two years .They believe that with the constant re positing of the brand they can establish themselves well in the market and also have the new appealing look to their customers who are also quick changing and desire new . They want to cement themselves as the market leaders in their space. They are also promoting the dine-in experience through its latest branding. They want to prove that they are not just a fast food chain , they are a perfect dine in food chain .

Product Life Cycle

Product life cycle 

Product Life Cycle

A product life cycle has four stages .Introduction, Growth, Maturity and Decline are the four stages in the product life cycle . Right now pizza hut is in the maturity stage .

Introduction –Initially when pizza hut was first started in India in 1996, it was an introductory stage . There were no players, essentially it was the only major player in the market. And it had the basic products were sold, that is the same products that were sold in US.

Growth –  In the later stages , there were new entrants in the market like dominos , papa johns and local city based entrants .There was product innovation done by pizza hut .They started more Indianised products .There was also increase in the amount spent for advertising .

Maturity – Right now it is in the early maturity stage , where there is lot of competition , rigorous advertising and product innovation is being done. The competitors are trying to enter new unexplored markets, especially the two tier and three tier cities .

Decline – This would be in the later stages when the weak competitors would leave the markets as it has become highly competitive and very less profit is earned.

Competition

Competitors

Pizza hut faces a stiff competition in India .Its major competitor has been Dominos. The other competitors are U.S Pizza, Smokin Joe’s, Papa John’s and the local city pizza shops. It faces both direct and indirect competition .In direct competition all the above mentioned pizza centric competitors can be taken into count. Since pizza hut belongs to the fast food sector, it competes’ with the other fast food chains like KFC, MC Donalds etc. So, they become the indirect competition.

Porters Five Forces

According to the five forces model , there are five major elements that effect the company .They are the Industry competitors , substitutes , suppliers , buyers and new entrants . For pizza hut, the industry rivalry the existing rivalry between dominos, pizza hut, U.S pizza, and the others is high. It has to sustain the competition .Coming to the next force, the new entrants. Since there are new international companies investing in India, there are chances of the other international companies to enter the Indian market. There are mat be substitutes like easy to make home pizzas etc , which might affect the pizzas business . Customers might prefer them instead of pizza hut. And if the buyers have ore bargaining power , that would be a threat to pizza hut. For example, if there are is more choice for the customer in pizza , the customer would be very picky and lot of effort has to put in to pull the customers to  pizza hut .

Product Mix

Product Mix

Product mix denotes product development; packaging, branding and research .Pizza hut packing was standardized in a pizza box so that the pizza is delivered without losing its shape and look of a pizza. Pizza hut is known to be an innovator .It had been innovating its products by bringing in new varieties in the product offerings. Pizza hut not only offers pizzas , it has appetizers , pastas , desserts , beverages etc .

There are different types in each pizza variety. That is the are many varieties under the Indian pizza varieties, Mexican and Italian etc .The following the detail breakdown of the country’s products .

Set	Meaning	Pizza hut products
Product Line	Group of products in the product class	Pizzas , deserts , appetizers , beverages
Product Width	Different  product lines in the company	There are 12 in case of pizza hut
Product Depth	Number of variants available in product line	Depth of it is about 120
Product Length	Total number of items in the mix	220 number of varities

Beverages

• ·         Very Berry Daiquiri
• ·         Orange Strawberry Spritzer
• ·         Mango Delight
• ·         Mango Banana Smoothie
• ·         Mocha Cold Coffee
• ·         Caribbean Choco Shake

Appetizers

• ·         Garlic Breads Range Classic
• ·         Platter Two each of Plain, Cheese and  Spicy Supreme
• ·         Potato Wedges
• ·         Fish ‘n’ Wedges
• ·         Chicken Skewers Jamaican Jerk Spiced Chicken
• ·         Chicken Skewers Thai Chicken 
• ·         Chicken Wings

Soups

·         Tomato Soup

·         Non Vegetarian Cream of Chicken

·         Vegetarian Tomato ‘n’ Basil

Pasta

·         Spicy Tomato Vegetarian

·         Arrabbiata Vegetarian

·         Creamy Mushroom

·         Arrabbiata Non Vegetarian

·         Arrabbiata Vegetarian

Pizzas

• ·         Margherita Personal, Classic
• ·         Zesty Chicken Personal, Classic
• ·         Fiery Chicken Personal, Classic
• ·         Vegetarian Tuscani Margherita
• ·         Vegetarian Verde
• ·         Vegetarian Gardiner
• ·         Non Vegetarian Florence Chicken
• ·         Non Vegetarian Pesto Pepperoni
• ·         Vegetarian Margherita Personal, Medium, Family
• ·         Exotica Personal, Medium, Family
• ·         Vegetarian Kadai Paneer

Deserts

·         Ice-Creams

·         Chocoholic Symphony

·         Fruit Duet

·         Choco Chip Cookie Sundae