...Gayathri – PGP/17/228 S Akshaya - PGP/17/233 Shraddha S - PGP/17/240 Sonakshi J - PGP/17/358 Determining Willingness to Pay at Pizza Chains Determining Willingness to Pay at Pizza Chains ACKNOWLEDGEMENT We would like to extend our thanks to Prof. Kausik Gangopadhyay, Prof. Rajesh Srinivas Upadhyayula and Prof. Sumit Mitra, coordinators of the “Pricing” course at Indian Institute of Management Kozhikode, for giving us the opportunity to work on this project. We also express our gratitude to the students of PGP-17 and PGP-18 who volunteered to participate in our survey. This helped us to get a good sample size to analyze the data. TABLE OF CONTENTS ACKNOWLEDGEMENT 1 ABSTRACT 3 INTRODUCTION 4 OBJECTIVE 5 METHODOLOGY 5 ANALYSIS AND RESULTS 6 RECOMMENDATIONS 8 LIMITATIONS 9 APPENDIX 10 ABSTRACT Our study identifies the most important and influencing factors for consumer preferences to eat at a pizza outlet like pizza hut, dominoes and pizza corner. With the help of factor analysis and regression we are trying to find out the willingness of a customer to pay at a particular outlet and hence what should be the pricing strategy of the pizza chain. The main elements in our study which affect the spending capacity and willingness are combo offers, services and variety offered by the outlets. Hence using this analysis we have also tried to find the premium which these outlets can charge over to its customers for the same products. INTRODUCTION ...
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...YUM! BRANDS, PIZZA HUT, AND KFC Teaching Note Overview This case describes the evolution of the global fast-food industry and Yum! Brands, Inc.’s development of the Pizza Hut and KFC franchises worldwide. It focuses on international business risk assessment and develops a model of country evaluation that students can use to analyze international business and market entry decisions in a variety of industries, regions, and countries. Teaching Objectives 1. Develop skills in industry analysis 2. Develop skills in global industry analysis. 3. Develop knowledge of franchising and the costs and benefits of expanding globally using franchises versus company-owned stores. 4. Develop skills in international business risk analysis. 5. Develop skills in country portfolio evaluation and assessment. Suggestions for Using the Case This case has been used successfully in undergraduate, MBA, and Executive MBA classes in strategic management, marketing management, and international business. It can be used in undergraduate courses to develop student skills in industry structure analysis, strategy analysis, and international business risk assessment. The teaching note is designed to give students practice in each of these three areas. Instructors may choose to use the case to discuss only one of these three areas during a single class period or to cover all three areas over two class periods. The case can be also...
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...PRE-ISSUED CASE STUDY & GUIDELINES Important notes for candidates regarding the pre-prepared case study The case study is designed to assess knowledge and understanding of the International Marketing Strategy syllabus in the context of the relevant case study. The examiners will be marking candidates’ scripts on the basis of the questions set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and to plan their time accordingly. Candidates should acquaint themselves thoroughly with the case study and be prepared to follow closely the instructions given to them on the examination day. Candidates are advised not to waste valuable time collecting unnecessary data. The cases are based upon real-life situations and all the information about the chosen organisation is contained within the case study. As the case represents a real-life situation, anomalies may be found in the information you have before you. Therefore, please state any assumptions you make that are reasonable when answering the questions. Remember, you are going to be tested on your overall understanding of the case issues and your ability to answer the questions that are set in the examination. In order to prepare for the examination, candidates will need to carry out a detailed analysis of the case material ahead of the examination. Candidates will have sufficient time during the examination to answer all the questions, but this means that detailed analysis should have...
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...variation (for arrival time and service time data only). 9 2.4 The following task should be accomplished: 14 References 16 Appendices 17 Business Decision Making Task 1: 1.1 Collection of data 1 | Develop Plan | C.M ,T.H, B.D | June 23-27 | 2 | Conduct Observation | | June29 | | a. Develop Conclusion | C.M | | 3 | Research on sources | C.M , T.H, B.D | June 30-July 2 | 4 | Conduct Survey (Shakey’s & Pizza Hut) | C.M , T.H, B.D | July 3 - 9 | | a. Calculate Data | C.M , T.H, B.D | July 4-5 | | b. Interpret Data | C.M , T.H, B.D | July 5-6 | | c. Conclude Data | C.M , T.H, B.D | July 7-9 | 5 | Interview | C.M, B.D | July 10-13 | | a. Develop questionare | C.M, B.D | July 10 | | b. conduct Interview | C.M , B.D | July 11-12 | | c. transcribe interview | C.M, B.D | July12-13 | 6 | Derive Conclusion ofSurvey, observation, interview | B.D | July 14 | This study was conducted by way of a multi-question survey, which asked the survey responders about personal preference for two fast food establishments–Shakey’s and Pizza Hut. 1.2 Survey Methodology Survey This study was conducted by Second-Year students of Southville International School, who handed out and administered the surveys. The survey was a physical one, given to individuals who agreed to participate. This method of survey was used because it was flexible for the participants and the researchers, in that it was able to be completed relatively...
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... Mission statement: “To be the best pizza for every occasion.” We are P.E.A.R.L.S: Passion for excellence Execute with positive energy and need Accountable for growth in customer and satisfaction Recognize the achievement for others and have fun doing it Listen and more importantly respond to the voice of the customer Marketing strategy: The marketing strategy for pizza hut is very simple: “We want to satisfy our customers by offering them the best”. They have used the word CHAMPS to describe their marketing strategy, which means cleanliness, hospitality, accuracy, maintenance, product quality and speed. They have gone further by using two F’s which stand for friendly and familiar. For pizza hut customer service means providing customers with uncompromising product quality, offering them with the highest value for money and giving them service that is warm friendly and personal. Pizza hut aspires to give its customers “customer mania”- the kind of service that ensures that every visit of the customer is a memorable one. Marketing mix: Since an international fast food chain like pizza hut demands both quality product and a high quality service and environment, its marketing mix comprises of all the seven P’s namely the product, price, promotion, place, people physical evidence and process. Product: Pizza hut offers a large variety of pizzas to its customers in many flavors. These would include cheesy...
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...Pizza Hut Case Analysis For years now Pizza Hut, Inc. has been the leader of the pizza industry. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. Based upon our Economic Analysis we have decided to not launch the BIGFOOT pizza. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion. Economic Analysis: First off, we appreciate the opportunity to have had an important role in Pizza Hut's latest product development, BIGFOOT. As you know, over the past five years market shares for the industry have changed much more drastically than in recent years. Our market share has been stagnant, and sales are down 10% this year in relation to last year's numbers. During the same period, Little Caesars made a strong push and they have continued to grow. Little Caesars' "two for one" marketing approach was effective in infiltrating the "mom's night off" segment, and is seen by customers as a great value. This is adding direct competition into our niche market share. Little Caesars is surely not making headway with the pizza connoisseurs, but it has effectively targeted a market in which Pizza Hut does not currently have a strong presence. 50% to55% of this market is made up of family dining situations. Our marketing team has conducted multiple data analyses on ways in which we can gain market share from Little...
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...International Logistics | Case Analysis Pizza Hut Moscow Globalization of Operations Strategies Submitted By- GROUP 3 | Sec A Aditya Batabyal 003 Ameya Bhadkamkar 007 Amitash Laxminarayana 008 Arun Kumar 017 Ashish Kulshreshtha 020 Bhavya Desai 028 Chetana Rane 030 Harsh Bakhai 039 Mohit Niranjane 054 Pratamesh Tawde 060 Analysis Culture is very important to the practice of international business. It impacts the way strategic moves are presented, influences decisions and is the lens through which motivation occurs. Management, decision making, and negotiations are all influenced through culture. Culture is what makes international business practice difficult or easy, depending on how similar or different cultures are. Culture is both divisive and unifying. Culture is not a constant; it evolves over time. Globalization has made it necessary for companies to establish themselves in new markets. The Pizza Hut case let is an example of one such new market exploration venture by the American company PepsiCo in the Russian markets. In September 1990, American company PepsiCo and its Russian partner Morsrestoranservise opened two Pizza hut restaurants in Moscow. The joint venture plan was based on a 3 billion agreement between PepsiCo and the Soviet Union. It laid down three fundamental requirements for the future Pizza Hut joint venture. Owning 49% partnership, Pizza hut will need to use local food source and provide training for...
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...CVP Analysis of 2012 A critical aspect that managers must be aware of in order to make sound decisions and precise projections is the understanding of the relationships among costs, volume and the company’s profit; otherwise known as CVP analysis. CVP analysis stands for Cost-volume-profit analysis which a form of cost accounting in managerial economics. The five essential concepts underlying CVP analysis include: 1. The behavior of both costs and revenues as being linear throughout the relevant range of activity 2. Costs categorized as either fixed or variable costs 3. The only factors that change affecting costs are fluctuation in activity 4. Inventory levels will not change 5. The sales mix of products will not change Furthermore, there are standard components that determine CVP analysis such as volume of sales, the unit selling prices, the variable cost, and fixed costs. Sales price per unit The sales price unit indicates the price at which each unit of inventory is sold for. Here are the following sales prices for each of the items sold at a Pizza Hut venue in 2012. Pizza $16.50 Chicken Meals $9.00 Side Dishes $3.00 Desserts $2.50 Beverages $2.00 Volume sold The volume sold is the number of individual inventory or total sales of a company within a particular timeframe. In the case of Pizza Hut, the volume sold for the 7556 U.S locations was recorded in 2012 as: Specific Inventory | Amount sold in individual stores | Amount sold...
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...CASE STUDIES PIZZA HUT INDIA Overview Launch of a New Pizza Crust - Freshizza Create awareness for the introduction of the new pizza crust ‘Freshizza’, highlighting FRESHNESS of the dough as a key ingredient for a perfect pizza. Situation Analysis Each Pizza Hut restaurant prepares fresh dough several times a day on premise, unlike competing brands whose stores receive crusts from a few central commissaries making the dough older by 1- 2 days. This fact had not been leveraged by Pizza Hut in the past. In the course of product development, Pizza Hut had commissioned research to evaluate the proposition of ‘Fresh’ among consumer focus groups. The key findings here revealed that ‘Freshness’ in the context of Indian bread (chappati’s) implied kneading fresh dough daily. Consumers preferred chappati’s made from freshly kneaded dough as they were softer and tastier than those made from two day old dough. This was unlike the perception on pizza’s where ‘Freshness’ was only understood as a piping hot pizza. Strategy The PR programme decided to use both the insights gained from the commissioned research, to present an all new pizza crust and focus on leveraging editorial opportunities to create awareness for freshness and differentiate the product on taste. In order to add credibility to product claims and influence media on the freshness of the product, PR Pundit considered it vital to get a leading food critique to endorse the product. Through dialogue and product sampling...
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...PIZZA HUT - MOSCOW: CASE ANALYSIS () Executive Summary: Pizza hut is faced with challenges as they try to get their “toe in the water” and enter the market in Moscow. The challenges are: * Lack of standard supply chain process * Cultural clashes * Language barriers * Service differentiation for Ruble and hard currency customers * High exchange rates and complication in pricing (government versus black market rates) * Communication (disconnect between the local employees and the management team) * Employees had to work long hours and cover for absentees * Turnover and ongoing training for the new staff jeopardized the service and quality of Pizza Hut. Proposed solutions include a complete analysis of the political, economic, social, technological, environmental and legal aspects. The key to Pizza Hut’s success in Moscow is effective supply chain management. Efficient Management of materials, manpower, money and production will create a positive outcome. Focus areas for improvement include training, sourcing, understanding culture, adapting to the local environment, and creating a new lifestyle for the Russians. In other words, we recommend inducing change in employment conditions, payment methods, quality adherence, and customer service culture by partnering with local suppliers, customers, employees, companies and government agencies. Background: The joint venture between PepsiCo and its partner, Mosrestoranserise was based on a $3...
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...Introduction Pizza Hut was started in 1958, by two brothers in Wichita, Kansas. Frank and Dan Carney had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut would be serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990's Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the United States were over $5 million. Out of all the existing pizza chains, Pizza Hut had the largest market share, 46.4%. However, Pizza Hut's market share has slowly eroded because of intense competition from their rivals Domino's, Little Caesar's and newcomer Papa John's. Home delivery was a driving force for success, especially for Pizza Hut and Domino's. However, this forced competitors to look for new methods of increasing their customer bases. Many pizza chains decided to diversify and offer new non-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...
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...Table of Contents 1. INTRODUCTION 2 2. SEGMENTATION AND TARGETING 2 2.1. GEOGRAPHIC SEGMENTATION 2 2.2. DEMOGRAPHIC SEGMENTATION 3 2.3. PSYCHOGRAPHIC SEGMENTATION 4 2.4. BEHAVIORAL SEGMENTATION 6 3. POSITIONING 7 3.1. VALUE PROPOSITION OF PHD OUTLETS 8 3.4. COMMUNICATING ON POPS AND PODS 8 4. DIFFERENTIATION 9 5. BRANDING AND BRAND EQUITY 10 5.1. BRAND AWARENESS 10 5.2. BRAND ASSOCIATION 10 5.3. BRAND LOYALTY 11 5.4. BRAND ASSET VALUATOR 12 6. MARKETING MIX 13 6.1. PRODUCT AND SERVICE 13 6.2. PRICING 16 6.3. PROMOTIONS 21 6.4. PLACE 24 6.5. PEOPLE 25 6.6. PROCESS 26 6.7. PHYSICAL EVIDENCE 26 7. CUSTOMER ACQUISITION AND RETENTION 27 7.1. CUSTOMER ACQUISITION 27 7.2. CUSTOMER RETENTION 29 8. REFERENCES 31 1. Introduction 2. Segmentation and Targeting To begin with, we segmented the market place into different categories broadly based on three consumer characteristics. The classification becomes more specific as we go deeper into the categories. 2.1. Geographic Segmentation The first step of classification is based on geography. We have broadly classified our target customers as belonging to 2 groups on the basis of population as recommend by the Sixth Central Pay Commission of India in 2008. • Tier I cities: Population more than 4 million Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai • Tier II cities: Population between 1 million to 4 million Pune, Jaipur, Chandigarh, Calicut etc. The reason behind focusing on these two segments is...
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...is based on comparison of Quality service offered by pizza hut and dominos. This research is based on to test the quality of service and comparison between two Pizza Houses. The fast food industries of India is experiencing phenomenal growth and is one of the fastest growing sectors in the country, with the compounded annual growth rates of the market crossing 25%. Further, on the back of changing and busy lifestyle, fast emerging middle class population and surging disposable income, the industry will continue to grow at a pace in coming years. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years. But some of most rapid growth is occurring in the developing world; where it's radically changing the way people eat. People buy fast food because it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about fast food industry, its trend, reason for its emergence and several other factors that are responsible for its growth. This report provides extensive research and rational analysis on the Indian fast food industry and tracks the changing dynamics of the market. It features market performance, key related sectors and competitive landscape of the market. The research study looks into the market condition and future forecasts, and outlines current trends and analysis. It has been made to help clients in analysing the opportunities...
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...Domino’s Pizza Goes Natural Nicole Phillips MKG310 – Introduction to Marketing Colorado State University – Global Campus Professor Michael Aubry October 25, 2015 Executive Summary The pizza industry is a mature and highly competitive market, while the organic/natural and vegetarian market is one that is seldom addressed, yet consumers are increasingly showing their interests in such foods. Domino’s Pizza has the opportunity to be an innovator in this groundbreaking field, and by only seeing a slight increase in costs of sales and advertisement, creating and releasing menu items that are organic/natural based or vegetarian will help Domino’s dominate the competition, while gaining three new market segments and positive PR. The following market plan will show in detail the opportunities Domino’s has on the horizon that they can utilize their competitively low prices for, and the steps and tactics they will need to implement in order to achieve success in this new field. Company Overview In 1960, brothers Tom and James Monaghan borrowed nine hundred dollars to purchase “DomiNick’s”, a pizzeria in Ypsilanti, Michigan (History, n.d). After growing bored of the pizza business, James traded Tom his half of the company for a Volkswagen Beetle, making Tom the sole owner of the company (History, n.d). Monaghan changed the company name to the one we know and love today, Domino’s, in 1965 with a mission to sell more pizza, and have more fun (Domino's Vision, Mission and Value...
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...Iowa Tax Case Could Cost Nation’s Franchises September 2010 Franchising World Franchisors should also expect the impact of the decision in KFC Corp. to extend beyond Iowa. The Iowa Supreme Court in late May heard oral arguments in KFC Corp. vs. Iowa Department of Revenue, a case that could have a substantial financial impact on franchisors across the nation. Iowa asserted that KFC is subject to the state’s corporate income tax based solely on the fact that it received royalties from franchisees in Iowa. The state cited Geoffrey v. South Carolina Tax Commission and related cases in support of its position. However, a victory by the state would represent an extension of those cases because KFC involves licensing agreements between unrelated parties. The KFC case could result in a landmark decision for states attempting to impose income tax on out-of-state franchisors and other similarly situated taxpayers. Background on State Tax Nexus Historically, many franchisors have reported and paid income taxes only in states in which they have a physical presence. This practice is based on a 1992 U.S. Supreme Court case, Quill Corp. v. North Dakota, which held that the Commerce Clause of the United States Constitution barred states from imposing a use-tax collection obligation on out-of-state corporations that had no physical presence in the taxing state. The court held that such corporations did not have the “substantial nexus” with the state that was required under the Commerce...
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