Communication †Pizza Essay

Introduction pizza pie sea chantey is based in Wichita, Kansas USA 19581. A woman and her twain sons created pizza recipes. From here, a family friend advised the sons to unaffixed their own pizza pie Parlor. 2. pizza pie hovel is one of the flagship brands of Yum Brands, Inc. , which to a fault has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. pizza pie army hut is the worlds largest pizza chain with over 12,500 restaurants across 91 countries 3. In India, pizza pie chantey has 133 restaurants across 34 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others.Yumis in the procedure of o create verballying pizza pie hut restaurants at m all much holes to usefulness a larger customer base across the country 4. Borrowing $600 from their mother, the deuce brothers purchased second-hand equipment and rented a small building on a busy intersection in Wichita, Kansas. The result of their efforts was the fir st pizza Hut and the foundation for what would be fail the largest and the virtually successful pizza restaurant in the world 5. pizza Hut franchisees exemplify the entrepreneurial spirit, which launched their system blanket in 1958.Through interest and initiative, the pizza pie Hut system was able to develop rude(a) territories in the United States and overseas. Today, franchisees and joint-venture partnerships account for more than half of the pizza pie Hut systems be units. Their education on the international front is a easily indication of the growth that has characterized their system. Following the opening of the first international restaurant in Canada in 1968, the pizza Hut restaurants quickly appeargond in Mexico, South America, Australia, Europe, the Far East and Africa. Today, pizza Hut operates in more than 100 countries and territories throughout the world 6.When Pizza Hut opened its handout in Baroda, Gujarat they firstly thought that they should make a ton ic pizza to the recipe of the local style in erect to attract the local population. g They decided to provide the pizza according to the customers taste of choice7.This essay aims to answering the following question Should Pizza Hut open a new consequence in Baroda? 1. http//www. pizzahut. com/OurStory. aspx 2. http//www. pizzahut. com/OurStory. aspx 3. http//220. 226. 195. 78/pizzahut. co. in/ just about_us. php 4. http//220. 226. 195. 78/pizzahut. co. in/about_us.php 5. http//www. pizzahut. com/OurStory. aspx 6. http//www. pizzahut. com/OurStory. aspx 7. (Manager of Pizza Hut). individual(prenominal) interview RESEARCH examination Pizza Hut is an established brand all over India. To outgrowth the growth of the new issuance, Pizza Hut recently set up a new food mart hind end place enquiry on the outskirts of Baroda with the investment of __ Basically, Pizza Hut star signs in India send Managers to spread proper aw atomic design 18ness about their new dismission among the customers through different types of advertising and keep the customers informed about their advancements in actual outlets 10.Commercially, I expect that the opening of the new branch leave steer to an augment in gross revenue in Baroda, Gujarat, and could increase the market sh atomic number 18 of Pizza Hut. For this discernment, they want to be able to successfully market their new firm when it is commercially launched. As previously mentioned, to increase its growth and successfully market their upcoming outlet, Pizza Hut has been reviewing various promotion strategies like price reduction, to increase the price in their marketing bud discombobulate and increase in number of staffs 11.So increasing the production by opening the new outlet and to increase the number of staff to work in both of the outlets is a strategy that Pizza Hut is strongly considering in order to increase their growth in the domestic market 12. 8. (Manager of Pizza Hut). in-person interview 9. (Mana ger of Pizza Hut). Personal interview 10. (Manager of Pizza Hut). Personal interview 11. (Manager of Pizza Hut). Personal interview divinatory FRAME WORK The maturement of a profession flock be measured in many different ways such(prenominal) as assets, sales revenue, operating make headway, market sh atomic number 18, abide by added, and number of employees 13.As information of pizzas is involved, Pizza Hut believes that what they bring new in the market is non contrastd with any of the products of any another firm which is selling pizzas14. I commercially expect that the opening of the new firm will lead to increase in sales in Baroda, Gujarat, and could increase the market sh be of Pizza Hut. Due to this, they want to be able to successfully market their new firm when it is commercially launched. Pizza Hut aims to convince the customers to set down their new blood line, (target market) 15.The other promotional method used by Pizza Hut and to spread the awareness about th eir new outlet is to do market seek. I did the market question for Pizza Hut so that they give the sack locate their new outlet where in that respect are more potential consumers. High income group was also asked about the opening of a new outlet, before it is brought up in the market. Pizza Hut believes that the methods used to research on opening a new outlet take hold of the attention of the customers for long age, so that they faeces visit the outlet frequently16. For reasons mentioned above, growth is widely regarded as the approximately favorable method to increase the profit level.12. http//www. tutor2u.net/business/presentations/strategy/businessgrowth/default. html 13. (Manager of Pizza Hut). Personal interview 14. _________ 15. (Manager of Pizza Hut). Personal interview 16. (Manager of Pizza Hut). Personal interview METHODOLOGY To reach a suitable conclusion, an in-depth qualitative and quantitative analysis s residency be conducted by use different business witha lls to the primary data as well as the secondary data collected. The primary data contains the interview of the Manager of the Pizza Hut outlet which already exists, the opinion of the customers who visit the exiting outlet and a few other people. food market research This will contain the content of the market research and what it entails. This was conducted by me. epitome of market research This will contain the graphical record and an explanation about how many people will visit the new outlet (assumption) from the old outlets daily earning. Swot analysis This will contain the strength, weakness, opportunity, and threats of the business for opening the new outlet. Ansoffs matrix A model which identifies growth strategies for a business and it is based on an analysis of their products and their market.Pest-g This will identify the political, scotchal, social and technological, as well as the environmental problem of the firm. court analysis Cost analysis will be conducted to fi nd out the quantifiable and unquantifiable cost involved in increasing the personal selling. MARKET RESEARCH Market research is the collection, collation and analysis of the data relating to the marketing and consumption of the equitables and the benefits18. Market research helps in opening the new outlet, tells us were we stand in the market and how we can improve. How many times does the customer visit Pizza Hut?Group of people More than once a calendar week Once a week Fortnight Monthly or less Family 04 20 45 25 College students 35 50 36 19 Above 50 00 05 36 30 Teenagers 40 45 26 17 (18) Here the market research data is organized according to age group. Market research make of the location Yes No (%) (%) Sayajigunj 66 34 Karelibaug 68 32 pic Here I boast got conducted the market research for the two different areas and I have come to a conclusion that in Karelibaug there are 90% of people saying yes to open the new outlet 20.This is due to one outlet of Pizza Hu t not providing deli real services to distant areas21. So if it is in that area then many people can visit the outlet and this will give more profit to Pizza Hut. As people from Fathegunj, Sayajigunj, city area and Karelibaug can visit as it will be salutaryer to them 22. 17. market research do by interviewing different people 18. business studies prevail by Dave hall pg 147 19. interviewing different age group of people 20. People gave reason that why in these two areas. 21. Told by the people staying in that area.ANALYSIS OF THE PRIMARY DATA The finding of the market research which I have done for Pizza Hut will be analyzed to identify specific market attributes such as the manner in which the customer will answer more. In addition to this, it will identify important information such as the set upiveness of the market research results given by the customers will be discovered. From this data, it will be possible to judge the weaknesses of Pizza Hut. Recommendations will then be made by me on methods which Pizza Hut can hook up with to overcome these weaknesses.Once Pizza Hut overcomes these weaknesses, it will have a better chance to successfully market their new outlet, and at the same time increase the sales from their current outlet. The graph below compares the frequency of teenagers who visit Pizza Hut as opposed to college students. pic 22 The ratio of college student is more than teenagers23. This means that on an average, college students visit Pizza Hut more compared to the teenagers. This graph tells us how many families and those above 50 wish to go to Pizza Hut. pic24 22. market research done by interviewing different people 23. (Manager of Pizza Hut).Personal interview 24. market research done by interviewing different people organize ANALYSIS Swot analysis swot analysis is an analysis of the internal strength and weaknesses and the external threats and opportunities that Pizza Hut faces. The swot analyses will illustrates how the externa l opportunities and the threats can be matched with the Pizza Huts internal strength and weaknesses to result in a set of possible strategic alternative.This would identify Pizza Huts distinctive competencies and the opportunities that the Pizza Hut is not currently taking a due to lack of appropriate resources swot means S-strength W-weaknesses O- Opportunities T-threats Strength(S) these are the things which I observed, Pizza Hut and their staff do and which is the strength for themThey are well known for their pizzas 26. They provide good quality, taste and quick service 27. Their good service grooming, cleanliness, and good interaction with the customers make customers want to visit them again 28. Due to their good taste and grooming, the other domestic pizza outlets try to compete and take in from Pizza Hut 29. Reputed brand, market excepted very easily, Due to the above, Pizza Hut makes good profit30.Pizza Hut has the ability to provide its customers with deals, offers and s pecials so that they can save money and get more value. This is a strength for the organization as it makes customers purchase more while receiving more value for their money. Customers use these vouchers and specials when monastic order in bulk or for everyday orders. Weaknesses (W) these are the things which I observed and Pizza Hut does poorly and in which they can be affected are During the weekends, Pizza Hut is full of customers, during that time the service is poor 31. thither is little to no place for the people to sit who are waiting to be seated32.Availability of other multinational outlets like Mac Donald and eye masks will be the competitors of Pizza Hut too. 33 Opportunities (O) the directions which the business could take in prospective like By opening a new outlet there will be an opportunity for growth of the business and development for employees34. If a person was previously employed by Pizza Hut and has passed the Pizza Hut course with the appropriate certifica te, then they are able to receive double their salary35. Pizza Hut is a branded and a multi-national chain, therefore it allows staff salaries to be double that which is offered to other staff in other companys36.Threats (T) the threats to a business arise from the activity of the competitors and failing to take opportunities like Pizza Inn is the domestic pizza outlet in Baroda both of them are doing very good profit-wise therefore Pizza Inn is a threat for Pizza Hut37. Pizza Inn is a well-known organization to the Baroda community as it also provides good quality and taste and this is a threat to Pizza Hut as this is one of Pizza Huts strengths. 25. business studies book by Dave hall pg 38 26. http//www. tutor2u. net/business/strategy/SWOT_analysis. htm 27. (Manager of Pizza Hut). Personal interview 28. (Manager of Pizza Hut).Personal interview 29. (Manager of Pizza Hut). Personal interview 30. (Manager of Pizza Hut). Personal interview 31. (Manager of Pizza Hut). Personal intervi ew 32. (Manager of Pizza Hut). Personal interview 33. (Manager of Pizza Hut). Personal interview 34. interview taken while doing market research 35. (Manager of Pizza Hut). Personal interview 36. (Manager of Pizza Hut). Personal interview 37. (Manager of Pizza Hut). Personal interview 38. (Manager of Pizza Hut). Personal interview THE ANSOFFS MATRIX The ansoff matrix The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy38.Ansoffs matrix will allow the firm to consider the alternatives open to it for immersion a new market or entering new product into the market39. Product Existing New Existing Market penetration Product development New Market development diversification Market Market penetration market penetration is used to achieve the growth in the existing market with the existing product40. Market penetration uses the marketing mix to push the product which is gaining as much as market share and as quickly as possible41. Ma rket penetration seeks to achieve four main objectivesIncrease usage by existing customers, maintain or increase the market share of current products42. Pizza Hut is the branded outlet so that people use the substitute outlet less (Pizza Inn, u s pizza, Uncle Sams Pizza, and Dominos). Pizza Hut encourages customers to use their outlet more regularly by providing new taste to the customers43. Product development this is concerned with marketing new or limited products in the market for the customers 44 like Normal pizzas intend to act as a replacement for the new product which will be introduced45.Market development this involves the marketing of the existing product in the new market such as As Pizza Hut has one outlet already in the market, they will open a new outlet in Baroda but in a different area. They will introduce nearly new products when they open their new outlet. However, they will need to continue the marketing of their old and classic products along with the new produ cts46. Diversification this will occur when the product is actual for the new market.Diversification allows a business to move away from the trust upon the present market and product47. 38http//www. tutor2u. net/business/strategy/ansoff_matrix.htm 39oxford study course book by jo defraud pg 32 39. http//www. tutor2u. net/business/strategy/ansoff_matrix. htm 40. business studies book by Dave hall pg 239 41. oxford study course book by jo toy pg 32 42. http//www. tutor2u. net/business/strategy/ansoff_matrix. htm 43. (Manager of Pizza Hut).Personal interview 44. (Manager of Pizza Hut). Personal interview 45. Manager of Pizza Hut). Personal interview 46. business studies book by Dave hall pg 239 PEST G ANALYSIS Pest g this will look at the external environment and the global factors that may or will affect a business. It can provide a quick and visual representation.It is usually divided into five external influences on a business-political, economic, social, and technological and gr een46. Political this is concerned with how political developments, regionally, nationally and internationally index affect a businesss strategy47. Political development is not so relevant in this instance as Pizza Hut has an existing established branch which is not affected by this external factor, the political issues are not so important because they do have the outlet in India and Baroda. For opening the new outlet government factors are not important as it already has opened one outlet48.Economic this might include the analysis of a variety of economic factors and their effect on business they include consumer activity, economic uncertain, government policy, the effect of change in product and labor markets49. Pizza Huts outlet which is Baroda, Gujarat has competitors in Baroda, Gujarat50 however, these are not Pizza Hut branches they are other competitors such as Dominos and Pizza Inn. These have an economic external influence as it affects the consumer activity as custom ers may take to go to Dominos if there is better service, quality and price offered.The new place suggested trough market research, there mainly the people with their families and above 30 will visit. It is not that the youths wont visit but there are less youths in that area compare to the area where the current Pizza Hut is located. Social how is Pizza Hut affected socially? It is not likely that Pizza Hut will be affected socially as each age group visits Pizza Hut51. Due to the location of the old Pizza Hut come out (located near commercial places) it attracts a lot variety of consumers. The new site will be located in a suburb where there are families therefore the market will be families.When a whole family eats a meal at Pizza Hut, they tend to splurge on extras such as drinks and sides. This is positive for the organization in terms of profit. However, in Karelibaug, families wont come daily or once a week to have pizzas so it can be affected socially. Generally in the new outlet older segment people will visite. technological Businesses operate in a world of rapid technological change. The organization needs to regularly review the impact of new technologies upon their activities. The product can become old-fashioned quickly. The production method can become out of date52.Pizza Hut looks that how they are different from other firms such as Pizza Inn, Dominos pizza, us pizza and many other domestic outlets for pizzas. Even Mac Donalds is a competitor. One technological factor which could effect the environment is how Pizza Hut creates its products such as the production line in which a pizza is made. 47. business studies book by Dave hall pg 38 48. business studies book by Dave hall pg 38 49. (Manager of Pizza Hut). Personal interview 50. business studies book by Dave hall pg 38 51. (Manager of Pizza Hut). Personal interview 52. (Manager of Pizza Hut). Personal interview.53. business studies book by Dave hall pg 38 COST ANALYSIS Cost analysis is cur rently a some what controversial set of methods in program of evaluation one reason for the controversy is that these terms cover a wide range of method, but are often used interchangeably. There are two types of cost associated with hiring new place. They are fixed cost and variable cost. Both these cot will be identified to check the financial growth of the undergoing new outlet. Both are classified as below Fixed cost Hiring charges foe the new place Salary of the staff Minimum hiring charges of telephone.Variable cost Production cost Office usage Approximately tot of profit for the new outlet whitethorn by through which you will be able to fine out pbit (profit before interest and tax), pbt (profit before tax), pat (profit after tax). Per month Per annum gross revenue 1350 16200 - variable 60 720 contribution 1290 15480 - fixed cost 45 540 PBIT 1245 14940 - interest 78 940 PBT 1167 14000 - tax 350 4200 PAT 817 9800 55 From the above assumption we can conclu de that profit on pbit is approximately equals to 65. 60% 1260 720 100 ? = 57. 14 This is the variable cost 1260 540 100 ? = 42. 58 And this is the fixed cost. Variable cost of new outlet is high than its fixed cost about 14. 12. Contribution of new outlet is about 96% which can be calculated by following formula Sales contribution 16200 15480 100 ? = 96 56 Variable cost imagines upon number of units of new outlet but the fixed cost is fixed. Cost may also be defined in different class For example production cost office cost selling and distribution cost We can include raw material cost for the pizzas and service cost for the pizzas.In production cost all the administration expense and legal and superior charges in office expense. We can bifurcate the transportation of the delivery man and advertisement expenses as selling and distribution charges. Selling and distribution charges can depend on number of unit sold and cost up till cost of goods sold always depends on goo ds sold57. 55. (Manager of Pizza Hut). Personal interview 56. (Manager of Pizza Hut). Personal interview 57. (Manager of Pizza Hut). Personal interview INVESTMENT APPRAISAL Investment appraisal is the evaluation of an investment project to determine whether or not it is likely to be worthwhile.It is essential to appraise the investment Pizza Hut will undertake and to establish weather it is going to be beneficial. Below are the techniques, which will assist appraising the investment Pay back period and Net present value Pay back period This technique assesses the number of years it will take foe the Pizza Hut to recover all their initial costs. This is a very simple tool as it ignores most of the costs the firm would incur due to opening a new outlet. The cash flow is also an approximate estimate when there are too many variable then Pizza Hut cannot control.They assume that they have more customers and 10% more profit throughout the year than what they had the previous year. Ther e were a few assumptions made for the cash flow. These were that the machine they used to make pizzas worked at 100% capacity and all products were sold. Pay back period for the new outlet Year Net cash flow 0 -10,00,000 1 2,00,000 2 6,00,000 3 3,00,000 3,00,000 12 months 2,00,000 ? = 8 months You can get 2,00,000 in 8 months so our net pay back period for investing RS 10,00,000 in new outlet is 2 years and 8 months. Analysis of pay back period.The pay back technique has shown us that it takes 2 years and 8 months to pay back for the new outlet. However, we learn form the market research and swot analysis that there are mainly people above 35 hence it would be smarter from them to do some thing which might attract the youth from other areas and influence them to visit that outlet too. Net present value Net present value incorporates the principle of time value of money by converting payments at different times to the equivalent values at the common reference time. The disco unt factor used is 4% as the interest they could have got from the bank currently is 4%.I then did NVP. Year Net cash flow Discount factor 4$ pledge value 0 -10,00,000 1 10,00,000 1 2,00,000 0. 9615 1,92,300 2 6,00,000 0. 9246 5,54,760 3 3,00,000 0. 8890 2,66,700 Analysis of net present value The new outlet will generate ____ amount after 5 years. ORGANIZATIONAL CHANGES To effectively deal with the increase in the growth by expansion, it is necessary for there to be some internal changes. It is very necessary that the staffs grooming should be done properly, so that they can serve the customers in a professional manner.When they open their second outlet from a single, Pizza Hut will have to keep some one on whom they can trust and can rely on and they have to push a few staff from the present one to the opening one. As they opening a new outlet, they are turning from one into two outlets. Due to this the position of many of the staffs have been will be changed. This change do es not affect their work, they have an effective communication carry among the employees. This could be in the form of giving the staff a proper atmosphere in which they can settle easily, the changes in the outlet and the goals that the Pizza Hut wants to attain.RECOMMENDATION Starting up the new outlet, initially it will not give them that much profit but it will definitely give some. For this 1. Pizza Hut should shift few of their staff and of course one of the leader to supervise from the existing outlet to the one which will open in the near future. 2. They should appoint few new staff for the existing outlet and also foe the futures outlet so that the one who are new in the new outlet can get t know more from their seniors who are shifted from the existing business. 3. For marketing about their new outlet they should restructure they method in which the do the marketing.4. The market research was done on few people in Baroda, Gujarat, and not in the whole of Baroda. So the elongated market research needs to be conducted across the whole Baroda, Gujarat to get the proper kind of information about the location. CONCULSION The report shows that Pizza Hut should pen the new outlet in Baroda, Gujarat, India. If Pizza Hut increases their staff, then it would be in a better position to serve the customers and if they shift few of their adept staff and give training to the new staff to whom they are going to appoint then they would also be in the better position.They should also shift one of the managers to the new outlet so that in case if any problem occurs then they will be able to handle it. The financial aspects of the labor movement are not the problem for the Pizza Hut as it is in a strong financial stage. But the recruitment of the new staff frore affects the staffs. The environment and the working portfolio of the staffs will be changed as Pizza Hut will reconstruct the marketing set-up. So before employing the new staff Pizza Hut should let the o ld staff settle into their working environment.As previously said, the personal interview were only conducted in Gujarat, and the result of this only equal he view of customers from Gujarat. Hence, the further market research needs to be done to get a broader perspective on this study. The indirect costs associated with the attempt the project will have to ascertain. As previously mentioned, one indirect cost is that a large recruitment could lead to a decrease in the motivation of the existing staffs. Other indirect cost could be in the form of the training program for the new recruits to a specialist company, so that it is done efficiently.If the new recruits do their job well, serve the customers in the proper way, follow the training properly, are groomed very well and give the best service then this would motivate the customers to visit them again. Graph showing the frequency of visits to Pizza Hut by college students and teenagers 0 10 20 30 40 50 60 More than once a week On ce a week Fortnight Monthly or less time period College students Teenagers graph showing the frequency of visit to Pizza Hut by families and people above 50 0 10 20 30 40 50 More than once a week Once a week Fortnight Monthly or less time period Family Above 50.