2. Community Involvement. The restaurant is committed to getting involved with local churches, schools and groups. We believe that involvement with these institutions will enable our company to be the first thought when customers are thinking about their evening meal.
Threats
1. A slowing economy. As fuel prices increase more consumers will tend to cut back on discretionary spending which will effective the restaurant industry as a whole including fast-food restaurants. A cut in discretionary spending will affect our sales, growth and potential profits.
2. Emerging local competitors. Currently, the restaurant is enjoying a first-mover advantage in the local pizza market over other competitors. However, additional privately own competitors are on the horizon, and we need to be prepared for their entry into the market. Many of our programs will be designed to build customer loyalty, and it is our hope that our product quality and exceptional service won't be easily duplicated.
Analysis of marketing activities
There are many ways of promoting a product or a service. Pizza Hut makes use of some of them, as advertising on TV, door-to-door flyer delivery, posters or the newest ways like facebook or twitter.
Often when we open our post mail box we find flyers with a very attractive design inviting to buy a pizza. There are always offers such as buy more, pay less or buy more and receive for free other products like non-alcoholic drinks.
Pizza Hut uses also a strategy that also includes events for raising up the consumption like: “Pizza Festival”, “Happy Hour”, “Un pranz bun”.
Pizza hut also launched the delivery service called Pizza Hut Delivery or shorter PHD. You can find the whole menu on the web site and you can call or place an online order. The food will be brought in less than half an hour directly to home.
To reach their customers they do much more. Using and advanced online technology, they send all the information about their promotions and their new products as notification on face book. In this way customer is always up-to-date. They don’t have to search for the service, but the service is now reaching them.
Marketing objectives
The objectives that we are proposing to achieve during the next year are the following:
- Finishing, remodeling and opening the new Pizza Hut restaurant in AFI Palace Cotroceni mall
- To reach the same level of quality for the PHD service as in the restaurant
- To have 5 cars for the PHD service
- To launch a new TV commercial
- The introduction of the Extreme Pizza
- Advertising properly the new product through a flyer campaign
Marketing strategy
4.1 Market segmentation strategy
Market segmentation of Pizza Hut is quite simple and easy to understand. I’d like to discuss the market segmentation of Pizza Hut in headings of variables of it.
Geographic:
Geographic segmentation of Pizza Hut is worldwide. Now Pizza Hut is serving more than 80 countries including Pakistan, UK, USA, Algeria, India, Russia, Cyprus, China, and Bangladesh etc.
Demographic:
Pizza Hut’s general market segment is younger generation. But they go wide in this thing. They segment high incomes and business class families which can spend money on the best pizzas in the market. Pizza Hut’s global slogan is also describing its market segmentation that is “Now it’s time to eat more”. Main age group is 12-30 years.
Psychographic:
Pizza Hut’s psychographic segmentation includes people with having good attitude about food sense especially pizza group and they want to have a good time with their friends and family. It serves all types of personalities as they don’t have any product for specific personality.
Behavioral:
Pizza Hut’s behavioral segment is the class where people love to spend money on eating.
Targeting strategy
Pizza hut targeted market defines them as a family product. They don’t really straight market their customers. Middle and high class family background people are the target market of Pizza Hut. Like it has been discussed above about the people who are highly paid employees and good businessmen is the target market of Pizza Hut. But Pizza Hut focused a broad variety of customers. We can also say that Pizza Hut is targeting the generation X which is more active in spending money on non essential things like eating. Pizza Hut is also offering products for vegetarians. The company is offering meet free pizzas with salad and pasta so that people who don’t want to eat meat could enjoy the quality and best food of Pizza Hut. Pizza Hut is also very good place for the students of colleges and universities. Many students arrange the treat parties in Pizza Hut that made Pizza Hut to earn more and more. Sometimes, it becomes hard to get a single seat in Pizza Hut due to all its good and attractive offers and marketing mix.
Pizza Hut is targeting their customers by two types.
Dine in is for those who love to have good times with their friends and age fellows and some families. Take away is for those who don’t have reach to any Pizza Hut outlet and they want Pizza Hut products. They can give the order on phone and may have their pizza at their home within 30 minutes as per policy of Pizza Hut. Pizza Hut is also offering different kinds of meals to their customers. If anybody is not interested in Pizza Hut, Pizza Hut has targeted those customers too. It offers pastas, sandwiches and desserts to those kinds of people. People who’re ill or not allowed to have pizzas, pastas can enjoy Pizza Hut’s meal deal with soup and salads.
Pizza Hut also targets to executive class people for meetings and discussion by offering them it’s hot and cold deals. Pizza Hut also arranges tea parties to those customers according to their agenda and time.
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 where as 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 more customers.
Product life cycle
Every product moves through an introduction phase, a growth phase, a maturity phase, and ends with a decline phase. Each of these phases is characterized by changes in demand, competition, marketing tasks, and decisions. These changes during the “product life cycle” can be generalized across markets, and understanding and anticipating those changes is important for planning and for effectively adapting marketing strategies.
Target Markets
With the introduction of the Extreme Pizza from Pizza Hut, the name itself is an indication of the target market sought. The generation range from the age of 12 to 30, and they enjoy to practice the extreme sports. One characteristic of this generation, that makes them a prime target for our new Extreme pizza, is the amount of time that these age groups spend with friends in groups.
Pizza has long been targeted to families, because of the convenience that is present when serving pizza to a group. Teenagers and young adults spend quite a bit of time with friends in groups, whether it be in a dorm room or at parties. This gives Pizza Hut an outlet to sell a pizza that will fulfill the needs of this younger generation with a product that is designed just for them.
The most important factor in making this a success will be to design advertising that is able to attract all of the individual segments of these generations.
- Product
Pizza Hut should offer a new product called “The Extreme” pizza.
“The Extreme” is a 50 cm pizza with twice as much cheese and toppings as Pizza Hut's other pizzas. This new pizza will have many different competitive advantages. The first competitive advantage of “The Extreme” is that it is the largest pizza on the market. No other pizza restaurant offers a 50 cm pizza. The second competitive advantage is that it has more cheese and toppings than any other pizza on the market. Another competitive advantage is the Pizza Hut brand name. Pizza Hut has built a brand name that means quality products and services. Since Pizza Hut will be introducing "The Extreme," customers will automatically think this is a high quality product. The final competitive advantage is that this product will be the first pizza to target youth. “The Extreme” pizza will target people between the ages of 12 and 30.
“The Extreme” will be introduced on the 1st June 2012, in the occasion of the Children’s Day.
During the introduction stage of the product life cycle, Pizza Hut will try to establish a market for the product and persuade early adopters to buy. During the growth stage, Pizza Hut will try to build sales and develop a preference for the product. Pizza Hut will try to seek differentiation during the maturity stage. “The Extreme” is expected to begin to decline after one year on the market.
- 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. The retail price of “The Extreme” pizza should be set at 40 RON, which is higher than Pizza Hut's competitors. Several sales promotions will be used to lower the price below those competitors. Since both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used. Customers can purchase "The Extreme" for 40 RON and receive a two-liter bottle of Mountain Dew for free. Pizza Hut will be able to sell two products together at a single price to suggest a good value. The high/low pricing strategy has several advantages. First, this pricing strategy will help segment the market. 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. The high/low pricing strategy will also create excitement. Customers will be able to try something new when they purchase "The Extreme" and this exciting experience may bring those customers back to purchase other products. Finally, this strategy will emphasize product and service quality. 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 main theme that will be used to promote “The Extreme” is youth. Fun, excitement, danger, and even the term "extreme" all appeal to our target market. Mountain Dew, which has already successfully appealed to this target market, will be included in "The Extreme" promotions. The main promotion will be a coupon to purchase “The Extreme” for 40 RON and receive a free two-liter bottle of Mountain Dew. The objectives of this 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. This promotion will be distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market. “The Extreme” will be introduced on the Children’s Day, in a television commercial. This commercial will be similar to the Mountain Dew advertising campaign. Several young people will be performing exciting, high-risk activities such as snowboarding, rock climbing, and bungee jumping. The young people will then eat “The Extreme” and drink Mountain Dew. There will also be similar ads in magazines that are popular with the target market. This advertising campaign will create awareness of the new product 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. 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 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.
Marketing programs
5.1 Marketing mix
- Product:
Product refers to the actual program you are planning. The goal of pizza hut is to develop the best product with the resources available. PizzaHut sells pizzas in four different sizes: personal (an individual serving), small, medium and large, though most stores have done away from with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Cheese Lovers, Supreme, Super Supreme. The pan pizza has a thicker crust than most other commercially available pizzas. So their products have help them to retain their customersand to increase them. They provide their customers with complete nutrition plan and healthy food is guaranteed. The nutrition plan also clearly tells diabetes patients can use what range of food at pizza hut. Over weight patients are also satisfied and the pizza with less cholesterol can be ordered. This encourages the customers to visit pizza hut rather than going elsewhere. As pizza hut has to boost its sales in the existing markets, so they the new food products are introduced in all branches line-by–line because all branches are operated in co-operation with one another. Different products for different regions are also developed as there are choice differences.
- Price:
The pricing strategy adopted by Pizza Hut is 'market skimming'. Pizza Hut has adopted this pricing strategy, as it wants to hold maximum share of the market by maximum profit.
Pizza Hut is free to charge any price it wants. They are charging higher prices due to the uniqueness of the product. They satisfy the target market as the food quality is worth the price paid. They are imported from different countries keeping in view the best quality.
First, this pricing strategy will help segment the market. Different groups of customers are willing to pay different prices for the same product. The high/low pricing strategy will also create excitement.
As focusing on the pricing strategies, Pizza Hut has made some product mix. According to the sizes of the pizzas, prices are made. They offer pizza sizes such as personal pan, which is of 6 inches, regular of 9 inches, and then come the large of 12 inches. Different pizzas have different prices according to their sizes. 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.
- Place/Distribution:
Pizza hut has 34,000 outlets in 100 Countries. It refers to the best place to offer program. That is the place where it is located and through what channels are we distributing programs and the competitive advantage lies in distribution. Secondly the catchment area is of a specified minimum size and within a given drive time to the site. 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 the PHD System. 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.
- The third method of distribution is to order Online. Selective County Customers can now go on the Internet and place an order for Pizza. 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.
- 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, but also by fliers 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 Hut 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 campaigns will creates awareness of the products in our target markets.
Loyalty programs
For Pizza Hut as of course for other restaurants, it is very important to try to retain and reward its best customers, and by doing this trying to attract new ones as well. The reason for which a loyalty program is needed is because customers are switching between Pizza Hut and the other competitors, so even a small shift in share among better customers generates large incremental profits.
Of course before launching the program a research was needed to identify customer behavior patterns, because the customer behavior is different in different regions and for example a loyalty program that was successful in the USA may not be successful here as well.
The loyalty program of Pizza Hut in Romania is based on the Fidelity Ticket that you can obtain from every restaurant by asking one of the staff members. This ticket offers you at the seventh visit to the restaurant a discount of 5% of the total of the previous six visits.
Customer service and support
If you want to send any feedback, or you need any kind of information about specific programs or you want to report something you have the customer’s phone number (021 20 39 039) or you can visit the website ( ) and complete the form from the “Contact” section.
You can also contact them on their Facebook page, , or visit the PHD Service website, .
Market research
Market research is any organized effort to gather information about or customers. It is a very important component of . The term is commonly interchanged with ; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets.
Market research is a key factor to get advantage over competitors. It provides important information to identify and analyze the market need, market size and competition.
Also, it includes social and opinion research and is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.
Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product.
Trust and credibility
A big brand is a brand that customers trust and believe in. When consumers don’t trust a brand they do not buy or consume it. One of the biggest reasons for people buying a brand repeatedly is the credibility the brand has among the consumers.
In , credibility is vital to the success of any brand. There are many brands which claim to provide various benefits. However, a consumer does not believe these claims easily. He needs credibility. To achieve this trust and credibility it is needed to
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Make sure that you have a good product and a good service which gives benefits to the consumer, and Pizza Hut definitely makes sure that their product is the best starting from their slogan “Best Pizza Under One Roof”.
- Ensure that the product or service experience during usage by the consumer is positive. Pizza Hut services are always excellent and at every restaurant you are asked by the waiters if you like the product that you ordered.
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Ensure regular and consistent and not just a one-off good experience. The quality of the services and the products of Pizza Hut are always at the same high standard no matter which location you choose to dine-in or to order.
- Make sure that your brand meets and delivers the promise it makes to the customers. The PHD service always meets the clients expectations, and one reason for which customers choose PHD is because most of the times the delivery arrives even faster than the promised time so for example if you want to order your lunch and you are very hungry, you can be sure that you won’t have to wait extra-minutes for it.
- Provide evidence in the form of facts or statistics to make the consumer believe in the benefits offered
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Generating good publicity wherein satisfied customers speak well of you informally or formally through testimonials.
Trade promotions
Pizza Hut, as well as many other companies, uses a wide assortment of promotion tools in order to achieve its objectives mentioned before, and also to increase the market share and the sales volume, to increase the repeat purchase and to induce the non buyers to buy the product.
The first place where you can enjoy Pizza Hut promotions is their restaurants. “Pizza festival” is their newest promotion, which is also a unique one that will attract new customers and will increase the sales volume. Alongside the lunch menus that you can order between 11.00 and 14.00 and the evening menus available after 19.00, “Pizza festival” allows you to order one pizza for 19,90 RON and then eat as many as you like included in this price and you can also buy any drink that you would like for only 2 RON.
There is in plan also a promotion for the new product, “The extreme” pizza, in collaboration with Mountain Dew. The main promotion will be a coupon to purchase “The Extreme” for 40 RON and receive a free two-liter bottle of Mountain Dew.
Beside these promotions that you can find in the Pizza Hut restaurants, also through the PHD Service Pizza Hut offers several promotions and discounts. For example in the evenings when there is a European football game you can order the “Player’s menu” which consists of a medium pizza and two beers for just 22 RON. Also if you go to the PHD centre to pick up your order, you receive a 0.5L Coke for each medium pizza ordered and a 2L Coke for every two medium pizzas. Another promotion is available each Monday also if you go and pick up your order- for each medium pizza ordered you get one for free, and also each Wednesday- for each pasta ordered you get also one for free.
Pizza Hut also launched also a facebook page which is very important for advertising their promotions and new products, but it was also used for promotions through a couple of contests. The rules of a contest were very easy: Pizza Hut launched a question on their facebook page, and the first five correct answer received a free pizza, the only thing what customers had to do was to send a mail with their personal data, and to pick up the prize they won by themselves.
Implementation plan
6.1 Product design and development
Pizza Hut follows the strategy of selling Standardized Products with modifications. Pizza Hut mainly sells 4 types of pizzas: Pan Pizza, hand-tossed pizza, stuffed crust pizza and Thin N Crispy pizza. Pizza Hut serves these standard style pizzas everywhere in the world but at the same time, it offers its customers to choose different toppings as extra mushrooms or extra capsicum and onions with extra cheese or chicken toppings like toppings of meat, bacon, fish, ham, beef topping, pork toppings etc.
Secondly it offers what is known as “Lunch menu” wherein it offers a combination of pizzas, appetizers, beverages etc. at lower prices. For instance, Pizza hut introduced a lunch menu which offers bruschettes, a medium pan pizza or pasta, coffee and desert for only 20 RON.
Also Pizza Hut has been constantly involved in innovating new products. It started as Pizza chain in 1958. On one hand, it offers traditional Italian pizzas while on other hand, it innovated several new varieties as pan pizza, thin and crispy, stuffed crust, cheesy bites and the new italian pizzas.
Pizza Hut spends extensively on research and development of its innovative products. At the same time, customer’s feedback also plays an important role in preparing new pizzas, like the new Extreme pizza. The steps in introducing and implementing this new product are presented in detail at 3.3 Product life cycle.
Marketing and sales
The chain of restaurants Pizza Hut administered in Romania by the American Restaurant System company obtained in 2011 a turnover of over є 22 mil. according to the data revealed by the Ministry of Finance.
The revenues obtained from sales were є 22.3 mil., with almost є 2 mil. greater than last year, while the expenditures value was є 21.8 mil. They were also greater than last year, when the maximum value of them was around є 20 mil.. But even if the expenditures increased, the company obtained a net profit of є 454,000, a bigger value than in the previous year (є 240.000).
Distributors
Pizza Hut has its own channel of distribution. The most important is represented by the Pizza Hut restaurants opened in 5 cities all over Romania, only in Bucharest activating in present 8 of them. Here you can enjoy your pizza in a nice atmosphere and benefit from the promotions that are available only in the restaurants, such as the “Pizza Festival”.
Another way through which you can enjoy a Pizza Hut product is by using its delivery service, PHD, launched in 2007. Since then in Bucharest there were opened 8 PHD centers in total. You can go to every PHD centre and also order anything you want and you can get your product directly from there, or you can order from home. PHD ensures their customers that they will receive a fresh and warm product, exactly at the promised delivery time.
Scheduling
The following schedule is for the objectives proposed in the previous section.
By using these dates for the objectives, resulted the following Gantt chart:
Performance, evaluation and monitoring
Monitoring Advertising Campaigns
Advertising has become a very integral part of our lives. We buy our day to day requirements depending on the impressions that the ads of certain products have created in our mind. Like it or not, advertisements do affect us a great deal. The most simple and direct way of catching a prospective customer’s eye is by using a large display ad of the product. If the ad is well designed and attractive enough, the product is sure to be a hit.
Pizza Hut advertising campaign include:
- Print Advertising - Newspapers, Magazines, Brochures, Fliers
- Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events
- Broadcast Advertising - Television, Radio and the Internet
- Covert Advertising - Advertising in Movies
- Celebrity Advertising
All the main ads are being created by the Martin Agency in Richmond, Va., part of the Interpublic Group of Companies. Martin has “a real ability to connect with consumers in the current economic conditions." Andy Azula, a creative director at Martin, was in a video clip shown at the news conference to discuss the brand campaign. The idea is to present pizza as a “part of other favorite things,” Mr. Azula said, adding that the commercials would feature Pizza Hut employees.
Pizza Hut spent $199.2 million to run ads in major media last year, according to the Kantar Media unit of WPP. In the first quarter of this year, the company spent $60.6 million, Kantar Media reported, compared with $59 million in the same period a year ago.
And Pizza Hut will expand in the social media. The brand has more than a million fans on Facebook and is sponsoring a promotion on Foursquare, the social networking service for mobile devices.
Pizza Hut regards sponsorship as an effective component of its integrated marketing communications program. As it combines elements of PR and sales promotion, sponsorship generally ensures that a corporate or brand name will be mentioned numerous times by on-air or public-address commentators. Further are followed list of sponsorship:
In the early 1990s, as part of Co's sponsorship of (and its former moniker, The MacNeil/Lehrer NewsHour), Pizza Hut was included in the acknowledgment alongside and , which PepsiCo owned at the time.
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In 2000, Pizza Hut was a part-time sponsor of ' #75 in the then , driven by
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Pizza Hut was the shirt sponsor of English club for the .
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drove selected events with Pizza Hut as the primary sponsor of his #44 car in 2005.
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Pizza Hut purchased the to club ' stadium, , prior to its opening in 2005. These were allowed to expire in January 2012.
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In March 2007, Pizza Hut partnered with to offer a free with the purchase of a Cheesy Bites Pizza.
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Pizza Hut is a sponsor of the team for the 2007/08 season in the UK.
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Pizza Hut is a sponsor of Children's Joy Foundation In .
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Pizza Hut Japan sponsored the anime , with their mascot, Cheese-kun, making cameos throughout the series.
Customer profiling
Target Consumers
The primary Pizza Hut national target market is adults, both men and women, ages 18-55. These customers are generally divided into two groups: Core customers who use Pizza Hut 70%+ of their pizza occasions and Switchers who are not necessarily brand loyal to Pizza Hut but use us 20-69% of their pizza occasions.
In comparison to the total QSR (quick service restaurant- fast food) category and its various food types (i.e., hamburgers, sandwiches, etc.), the pizza category skews stronger to larger households (5+ members). It has extremely weak usage among eaters and household heads older than 49. There is also a stronger presence of pizza eaters among higher incomes of RON 1500M+. Pizza users have a directional tendency to be better educated and in professional and management jobs.
It is worth noting that when evaluating the consumers of the Pizza Hut category, demographic descriptors do not clearly separate the users of the various kinds of restaurants and food type. Virtually everyone eats pizza at some time. It is the occasion differences that truly help to explain the different choices consumers make.
Pizza Usage
Pizza has a very low frequency of 1.4 times per month as compared to the QSR category of 3.8 times per month. Consumers may use frequency to control their total expenditures across food choices or the relative cost of pizza may simply discourage more frequent use.
The pizza business skews more to occasions with kids especially under the age of 12 than all QSRs. Of course, the majority of occasions come from adults.
Pizza Hut’s customers are offered different kinds of food according to their needs. The whole customer profiling table is given below which shows the complete analysis of Pizza Hut.
Salesforce evaluation
Salesforce evaluation is the comparison of salesforce objectives with results. A model of the evaluation process is shown in Figure 6.3. It begins with the setting of salesforce objectives which may be financial, such as sales revenues, profits and expenses; market-orientated, such as market share; or customer-based such as customer satisfaction and service levels. Then, the sales strategy must be decided to show how the objectives are to be achieved. Next, performance standards should be set for the overall company, regions, products, salespeople and accounts. Results are then measured and compared with performance standards. Reasons for differences are assessed and action taken to improve performance.
The salesforce evaluation process
The purpose of evaluation.
The prime reason for evaluation is to attempt to attain company objectives. By measuring actual performance against objectives, shortfalls can be identified and appropriate action taken to improve performance. However, evaluation has other benefits. Evaluation can help improve an individual’s motivation and skills. Motivation is affected since an evaluation programme will identify what is expected and what is considered good performance. Second, it provides the opportunity for the recognition of above-average standards of work performance, which improves confidence and motivation. Skills are affected since carefully constructed evaluation allows areas of weakness to be identified and effort to be directed to the improvement of skills in
those areas.
Thus, evaluation is an important ingredient in an effective training programme. Further, evaluation may show weaknesses, perhaps in not devoting enough attention to selling certain product lines, which span most or all of the sales team. This information may lead to the development of a compensation plan designed to encourage salespeople to sell those products by means of higher commission rates.
Evaluation provides information that affects key decision areas within the sales management function. Training, compensation, motivation and objective setting are dependent on the information derived from evaluation, as illustrated in the next figure. It is important, then, that sales management develops a system of information collection which allows fair and accurate evaluation to occur.
The level and type of control exercised over international salesforces will depend upon the culture of the company and its host nations. The boxed case discussion highlights some important points.
The central role of evaluation in sales management
There are two broad measures for the salesforce evaluation – quantitative and qualitative indicators. Such measures can be used to evaluate, control and motivate salespeople towards better performance. We propose next questions for our staff.
Ideally, a Salesforce Evaluation should answer about 10-15 compelling questions.
• Why are sales decreasing in a growing market?
• How close are we to having a sales culture?
• Why aren't our sales managers hitting their goals?
• Do we have the right people in the right roles?
• Should I replace myself as sales manager?
• What impact is sales management having on the sales force?
• Why aren't the salespeople responding to the sales manager?
• Why everyone works in a different ways?
• Why aren't they more motivated?
• Do they make effective use of their time?
• Are they satisfied/comfortable or do they want more?
• Are they value sellers or transactional sellers?
• Do they have the ability to develop relationships?
• What are reasonable expectations for this group?
• Why aren’t my current people more successful?
• Do we need to change our hiring criteria?
• How do we drive more revenue?
• Which people have the most potential?
• What are the possibilities?
• Are there any problems we don’t know about?
• How much revenue are the shortcomings and weaknesses costing the company?
• Where should we be investing time, money & resources in order to get the quickest return-on-investment?
• Where is there misalignment of the vision and sales strategies amongst the sales leadership team?
• Who are those that I should replace?
• Can they work the way we want them to?
• Do they require additional development?
• Can the ramp up time be reduced?
• How can we get our customers to spend more?
• What are the obstacles to customers spending more?
• What should our sales plan include?
• What should be addressed at the next national sales meeting?
• Which staff can make the transition from account manager to hunters and closers?
• How are our waiters at qualifying?
• How is our service process?
• How can we gain more business from existing clients?
• How aligned is the sales force with our strategies?
Financial information
Budgets
Annual Budget for the Marketing Objectives
Sales projection for 5 years
References
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“Strategic Marketing”, Todd Mooradiam, Kur Matzler, International Edition, 2011
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“Selling and Sales Management”, David Jobber, Geoff Lancaster, 8th Edition
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“Essential Guide to Marketing Planning”, Marian Burk Wood, 2nd Edition, 2010
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“Strategic Marketing Planning”, ,
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“The Marketing Plan: How to Prepare and Implement It”, William M. Luther, 2001
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by
domdasha (student)
