Estratégia de diversificação da pepsico 2008 análise de casos

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Data da Publicação: 15/10/2014 Setores: HIV / AIDS Idiomas: Inglês País: Malawi Tipo de Avaliação: Avaliação do fim do projeto.

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Os principais métodos utilizados durante o exercício de referência para informar os valores do indicador incluíram: um inquérito aos agregados familiares abrangendo os 11 distritos alvo, grupos focais, um estudo de modelação baseado em agentes, revisão documental e um inquérito eletrónico. Consulte Mais informação.

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O objetivo dos resultados do programa é permitir que 305.000 pessoas (27.774 chefes masculinos e 33.296 agregados familiares chefiados por mulheres) de sete distritos vulneráveis ​​desenvolvam sua capacidade de aumentar sua resiliência ao risco climático até junho de 2016. Isso contribuirá para a redução da pobreza extrema e da fome que Contribuirá, por sua vez, para a obtenção do Quadro de Ação de Hyogo, reduzindo à metade as perdas de desastres e aumentando a resiliência das comunidades às mudanças climáticas no Malaui.

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PCTFI Malawi: Plano de Monitoramento e Avaliação do Desempenho no EF15 a AF17.

Data da Publicação: 15/02/2015 Setores: Educação Básica e de Meninas, Sexual | Saúde Reprodutiva Idiomas: inglês País: Malawi Tipo de Avaliação: Avaliação do fim do projeto.

A estratégia do projecto alavanca seis anos de implementação do PCTFI no Malawi, melhores práticas, lições aprendidas e abordagens e ferramentas comprovadas para o mundo da CARE; e oportunidades de colaboração em todos os níveis para mapear os caminhos para atingir a meta de impacto. As intervenções propostas estão organizadas em três áreas temáticas relacionadas à agência e relações da menina adolescente e às estruturas que influenciam seu empoderamento. Consulte Mais informação.

Relatório do Estudo de Análise da Situação da Iniciativa Patsy Collins Trust Fund (PCTFI).

Data da Publicação: 15/12/2012 Setores: Ensino Básico e de Meninas Idiomas: Inglês País: Malawi Tipo de Avaliação: Avaliação Especial.

Relatório de Pesquisa Intermediária do Projeto Umodzi.

Data de publicação: 15/09/2017 Setores: Sexual | Saúde reprodutiva Idiomas: inglês País: Malawi Tipo de avaliação: Avaliação intercalar.

➢ Adoção de atitudes e comportamentos eqüitativos de gênero entre meninos e meninas adolescentes na escola primária. ➢ Melhores conhecimentos sobre saúde e desenvolvimento, atitudes, autoeficácia e práticas de autocuidado entre adolescentes meninos e meninas na escola primária. ➢ Relações intergeracionais aprimoradas entre homens e meninos e mulheres e meninas que apóiam o gênero adolescente e a SRHR Leia mais.

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Instituto Panmore.

A Starbucks Coffee Company é a maior rede de cafeterias do mundo. A liderança da indústria da empresa é parcialmente atribuída à adequação de sua estrutura organizacional. A estrutura organizacional de uma empresa influencia o gerenciamento e a liderança, a comunicação, a mudança e outras variáveis ​​essenciais para o sucesso do negócio. A Starbucks evoluiu para ter uma estrutura organizacional que atenda às necessidades atuais de negócios. Essa estrutura organizacional é exclusiva da Starbucks, embora possa ser caracterizada com base em uma tipologia convencional de estruturas organizacionais. A Starbucks tem sucesso porque sua estrutura organizacional cresce com os negócios, permitindo que a empresa otimize os processos e a qualidade de seus produtos e serviços.

A estrutura organizacional da Starbucks Coffee evolui para atender às necessidades do negócio. Essa estrutura apóia os objetivos da empresa na expansão e diversificação global.

Recursos da Estrutura Organizacional da Starbucks Coffee.

A Starbucks tem uma estrutura organizacional matricial, que é uma mistura híbrida de diferentes características dos tipos básicos de estrutura organizacional. A seguir estão as principais características da estrutura organizacional da Starbucks Coffee:

Estrutura funcional Divisões geográficas Divisões baseadas em produto Equipes.

Estrutura funcional . O recurso de estrutura funcional da estrutura organizacional da Starbucks Coffee refere-se ao agrupamento com base na função de negócios. Por exemplo, a empresa possui um departamento de RH, um departamento de finanças e um departamento de marketing. Esses departamentos são mais pronunciados nos níveis mais altos da estrutura organizacional da Starbucks Coffee, como na matriz corporativa. Esse recurso está relacionado à hierarquia na estrutura organizacional da Starbucks. Por exemplo, o departamento de RH corporativo implementa políticas aplicáveis ​​a todos os cafés Starbucks. O recurso de estrutura funcional da estrutura organizacional da empresa facilita o monitoramento e o controle top-down, com o CEO no topo.

Divisões Geográficas. A estrutura organizacional da Starbucks Coffee também envolve divisões geográficas. Atualmente, a empresa possui três divisões regionais para o mercado global: (a) China e Ásia-Pacífico, (b) Américas e (c) Europa, Oriente Médio, Rússia e África. Além disso, no mercado dos EUA, a estrutura organizacional da Starbucks Coffee envolve mais divisões geográficas: (a) Ocidental, (b) Noroeste, (c) Sudeste e (d) Nordeste. Cada divisão geográfica tem um vice-presidente sênior. Dessa forma, cada gerente da Starbucks se reporta a dois superiores: o chefe geográfico (por exemplo, presidente de operações nos EUA) e o chefe funcional (por exemplo, gerente de RH corporativo). Esse recurso da estrutura organizacional da Starbucks Coffee oferece suporte administrativo mais próximo para as necessidades geográficas. Cada chefe de divisão recebe um alto grau de flexibilidade no ajuste de estratégias e políticas para atender às condições específicas do mercado.

Divisões baseadas em produto. A Starbucks também utiliza divisões baseadas em produto em sua estrutura organizacional. Essas divisões lidam com linhas de produtos. Por exemplo, a Starbucks tem uma divisão para café e produtos relacionados, outra divisão para produtos de panificação e outra divisão para mercadorias como canecas. Esse recurso da estrutura organizacional da empresa permite o foco em certas linhas de produtos. Desta forma, a Starbucks efetivamente desenvolve e inova seus produtos com o apoio de sua estrutura organizacional.

Equipes As equipes são usadas em diferentes partes da estrutura organizacional da Starbucks Coffee. No entanto, as equipes são mais notáveis ​​nos níveis organizacionais mais baixos, especialmente nos cafés Starbucks. Em cada café, a empresa tem equipes organizadas para fornecer bens e serviços aos clientes. Esse recurso da estrutura organizacional da Starbucks Coffee permite que a empresa ofereça um serviço eficaz e eficiente aos consumidores.

Nota sobre a estrutura organizacional da Starbucks Coffee.

A Starbucks reformou sua estrutura organizacional ao longo do tempo. Em 2007, a empresa estava se expandindo rapidamente, de modo a desviar o foco dos clientes para a expansão global estratégica. No entanto, a Starbucks sofreu um declínio significativo nas vendas em 2007. Esse declínio foi agravado devido à falta de foco na experiência do cliente. Quando Howard Schultz retomou a posição de CEO em 2008, ele mudou a estrutura organizacional da Starbucks Coffee para trazer de volta o foco na experiência do cliente. Novas divisões regionais foram criadas e as equipes dos cafés da Starbucks receberam melhor treinamento. Assim, a atual estrutura organizacional da Starbucks é resultado dessa reforma para melhorar a experiência do cliente e o desempenho financeiro da empresa.

Referências.

Claver-Cortes, E., Pertusa-Ortega, E. M., & amp; Molina-Azorín, J. F. (2012). Características da estrutura organizacional relacionada à estratégia competitiva híbrida. Journal of Business Research, 65 (7), 993-1002. Governança Corporativa & # 8211; Starbucks Coffee Company. Csaszar, F. A. (2013). Uma fronteira eficiente no desenho organizacional: a estrutura organizacional como determinante da exploração e exploração. Organization Science, 24 (4), 1083-1101. Koehn, N. F. (2002). Howard Schultz e Starbucks Coffee Company. Harvard Business School. Lee, J. Y., Kozlenkova, I. V., & amp; Palmatier, R. W. (2015). Marketing estrutural: usando a estrutura organizacional para alcançar objetivos de marketing. Jornal da Academia de Ciência de Marketing, 43 (1), 73-99. Liao, C., Chuang, S. H., & amp; Para, P. L. (2011). Como a gestão do conhecimento medeia a relação entre ambiente e estrutura organizacional. Journal of Business Research, 64 (7), 728-736. Smith, M. D. (1996). O império filtra de volta: consumo, produção e política da Starbucks Coffee. Geografia Urbana, 17 (6), 502-525.

Este artigo não pode ser reproduzido, distribuído ou espelhado sem permissão por escrito do Instituto Panmore e seu (s) autor (es). Copyright by Panmore Institute - Todos os direitos reservados. Pequenas partes deste artigo podem ser citadas ou parafraseadas para propósitos de pesquisa, desde que o artigo seja devidamente citado e referenciado junto com sua URL / link.

Blog de Amru Mohamed.

Há duas maneiras de viver: uma é como se nada fosse um milagre; o outro como se tudo fosse.

Introdução Gerenciamento de Operações com o caso Pizza Hut para o artigo final OM Assunto.

Pizza Hut foi iniciado em 1958, por dois irmãos em Wichita, Kansas. Frank e Dan Carney tiveram a ideia de abrir uma pizzaria. Eles emprestaram US $ 600 de sua mãe e abriram o primeiro Pizza Hut. Em 1959, a primeira unidade de franquias foi aberta em Topeka, Kansas. Quase dez anos depois, a Pizza Hut servia um milhão de clientes por semana em suas 310 lojas. Em 1970, a Pizza Hut foi colocada na Bolsa de Nova York sob o símbolo PIZ.

Em 1986, a Pizza Hut introduziu o serviço de entrega, algo que nenhum outro restaurante estava fazendo. Em 1990, as vendas da Pizza Hut chegaram a US $ 4 bilhões em todo o mundo. Em 1998, a Pizza Hut comemorou seu 40º aniversário e lançou sua famosa campanha "As melhores pizzas sob o mesmo teto". # 8221; Em 1996, as vendas da Pizza Hut nos Estados Unidos foram superiores a US $ 5 milhões. De todas as redes de pizza existentes, a Pizza Hut detinha a maior participação de mercado, 46,4%. No entanto, a fatia de mercado da Pizza Hut foi lentamente corroída por causa da intensa concorrência de seus rivais, o Little Caesar e o novato Papa John's. Entrega em domicílio foi uma força motriz para o sucesso, especialmente para Pizza Hut e Domino's.

No entanto, isso forçou os concorrentes a procurar novos métodos de aumentar suas bases de clientes. Muitas cadeias de pizza decidiram diversificar e oferecer novos itens não-pizza, como as asas de frango e o pão de queijo italiano. A tendência atual nas cadeias de pizza hoje é a mesma. Todos eles tentam criar uma pizza nova, maior e melhor por um preço baixo. Oferecendo promoções especiais e novas variações de pizza são populares hoje também. Por exemplo, o frango é agora um topping comum encontrado em pizzas.

No passado, a Pizza Hut sempre teve a vantagem de ser o primeiro. Sua estratégia de marketing no passado sempre foi a primeira. Uma de suas principais estratégias, que eles ainda seguem hoje, é a diversificação dos produtos que oferecem. A Pizza Hut está sempre adicionando algo novo ao cardápio, tentando alcançar novos mercados. Por exemplo, em 1992, o famoso buffet foi lançado nos restaurantes Pizza Hut em todo o mundo. Eles estavam tentando oferecer muitos alimentos diferentes para clientes que não necessariamente queriam pizza.

Outra estratégia que eles usaram no passado e ainda estão usando é a diversificação de suas pizzas. A Pizza Hut está sempre tentando criar uma maneira inovadora de transformar uma pizza em algo um pouco diferente & # 8211; diferente o suficiente para que os clientes pensem que é um produto totalmente novo. Por exemplo, vamos ver algumas das pizzas que a Pizza Hut comercializou no passado. Em 1983, a Pizza Hut apresentou sua Pan Pizza, que tinha a garantia de estar pronta para comer em 5 minutos quando jantava nos restaurantes Pizza Hut. Em 1993, eles introduziram o & # 8220; BigFoot & # 8221; que foi dois pés quadrados de pizza cortada em 21 fatias. Em 1995, eles introduziram o "Stuffed Crust Pizza", & # 8221; onde a crosta estaria cheia de queijo. Em 1997, eles comercializaram o "The Edge", & # 8221; que tinha queijo e coberturas todo o caminho até a borda da pizza. Atualmente, eles estão fazendo marketing & ndash; O Big NewYorker & # 8221; tentando trazer a famosa pizza estilo Nova York para todo o país.

Por fim, a Pizza Hut sempre valorizou o atendimento e a satisfação do cliente. Em 1995, a Pizza Hut iniciou dois programas de satisfação do cliente: um número 1-800 de linha de atendimento ao cliente e um programa de retorno de chamada ao cliente. Eles foram implementados para garantir que seus clientes ficassem felizes e sempre queriam voltar. Em nosso plano, primeiro forneceremos uma análise da situação das condições ambientais atuais e relevantes que afetam nosso plano. Em seguida, faremos uma breve análise da atual indústria de fast food e de quaisquer tendências ou mudanças que possam ocorrer no futuro.

Além disso, uma análise SWOT da Pizza Hut será incluída. A identificação dos concorrentes atuais e potenciais também será discutida na análise SWOT. A seguir, listaremos nossos objetivos de marketing para esse plano e nossa justificativa para a seleção desses objetivos.

Diversas tendências demográficas e sociais nos Estados Unidos contribuíram para aumentar a demanda por alimentos preparados fora de casa. A taxa de divórcio é quase 50%, e há uma tendência crescente de que as pessoas estão escolhendo se casar mais tarde na vida. Devido a esses fatores e muitos outros, o lar de uma única pessoa representava cerca de 25% de todos os lares americanos em 1998, em comparação com 16% nos anos 70. Também tem havido uma tendência nos anos 90 mostrando que os indivíduos estão optando por comer fora com mais frequência do que comer em casa. Outro fator a considerar é o aumento do número de mulheres que trabalham fora de casa. Em 1998, 59% de todas as mulheres casadas tinham carreiras. Como resultado de mais mulheres na força de trabalho, a renda das famílias agora está combinada e é muito maior do que anteriormente. De acordo com a revista Restaurants and Institutions, mais de um terço de todas as famílias tinham renda superior a US $ 50.000 em 1996. A combinação de renda mais alta e famílias com dupla carreira resulta em menos tempo! em casa, portanto, menos tempo para cozinhar em casa. Também devido aos rendimentos mais elevados, os consumidores têm mais rendimento disponível, permitindo-lhes comer fora com maior frequência. No entanto, no início dos anos 90, o crescimento dos restaurantes tradicionais de fast food desacelerou porque o mercado dos EUA ficou saturado. A desaceleração do crescimento intensificou a competição por participação de mercado e levou à consolidação. Muitas cadeias descobriram que a sua quota de mercado poderia ser aumentada através da compra de uma empresa existente, em vez de construir novas unidades. Fusões e aquisições tiveram um efeito poderoso na indústria de fast food. As dez maiores redes de restaurantes de fast food controlaram mais de 60% das vendas de fast food nos EUA.

De acordo com a National Restaurant Association, as vendas de food service foram de US $ 320 bilhões para os 500.000 restaurantes nos EUA em 1997. A indústria de restaurantes dos EUA cresceu 5,2% em 1997. Seis segmentos principais compõem o segmento de fast food da indústria de food service. Cadeias de sanduíches, como a McDonald's e a Wendy's, são o segmento número um, seguidas por casas de jantar, como Applebee's e Red Lobster. Cadeias de pizza estão em terceiro lugar. De todas as cadeias de pizzas, a Pizza Hut tem a maior participação de mercado, 46%, seguida pela Domino's com 21,7%. As vendas internacionais tornaram-se cada vez mais importantes para a indústria de fast food. Em 1998, a Pizza Hut foi a cadeia global número um com unidades em 88 países diferentes. Em 1990, a Pizza Hut abriu dois restaurantes em Moscou, onde 20.000 clientes foram atendidos por semana, sobre a quantidade servida por 10 American Pizza Huts. Por mais lucrativo que seja o setor de fast food, sempre houve um problema que muitas empresas de fast food não conseguem superar. Por causa da grande população idosa da América, uma maior conscientização e interesse em questões de saúde resultaram. O valor nutricional de fast food é um grande problema. Para muitas pessoas, fast food significa automaticamente baixo valor nutricional. Como resultado disso, muitas cadeias introduziram itens que são de baixa caloria & # 8221; e "baixo teor de gordura". # 8221; Apesar de seus esforços, muitos críticos e consumidores sentem que seus esforços não foram satisfatórios em fornecer uma refeição saudável.

Pizza Hut tem muitos pontos fortes diferentes. O reconhecimento de nomes é uma força óbvia para a Pizza Hut. A Pizza Hut existe há muito tempo e os consumidores conhecem bem o nome. Outra grande vantagem e até mesmo uma vantagem competitiva é o fato de que eles têm um restaurante de serviço completo, bem como serviços de entrega. A maioria dos concorrentes da Pizza Hut não tem restaurantes. Por causa do restaurante, a Pizza Hut pode comercializar para muitos segmentos diferentes que outras cadeias de pizza não podem. Por exemplo, a Pizza Hut pode comercializar para as famílias muito mais fácil do que a Domino's ou Little Caesar's. O Pizza Hut oferece um restaurante tipo conversacional onde as famílias podem levar seus filhos para festas de aniversário, por exemplo. A ampla seleção de produtos da Pizza Hut também facilita a sua comercialização para diferentes segmentos de mercado.

No entanto, o fato de a Pizza Hut ter um restaurante para servir também é uma fraqueza. A Pizza Hut tem custos mais altos, devido ao restaurante com o qual outros concorrentes não têm de lidar. Outro resultado de maiores custos indiretos são os preços mais altos que a Pizza Hut deve cobrar. Obviamente, a Pizza Hut não é o produtor de baixo custo. Eles confiam em sua pizza de qualidade e bom serviço para dar conta de seus preços mais elevados.

Uma fraqueza indireta que a Pizza Hut tem é que eles perderam muitos de seus clientes e participação de mercado devido à intensa concorrência com os concorrentes. As oportunidades da Pizza Hut são quase infinitas. Eles podem aumentar a receita com suas novas pizzas inovadoras e aumentar a fidelidade à marca com um bom atendimento ao cliente.

Outra oportunidade que a Pizza Hut tem é o novo sistema on-line de pedidos. Qualquer um com acesso à Internet pode pedir o que quiser e levá-lo para sua casa sem falar com alguém. Este programa acaba de ser iniciado, por isso não temos números para apoiar se será ou não um sucesso.

As ameaças número um da Pizza Hut são de seus concorrentes. Atualmente, seu concorrente mais próximo é a Pizza Domino. A principal vantagem competitiva da Domino sobre a Pizza Hut é o seu preço. Geralmente é menor do que a Pizza Hut. Além disso, a Domino's foi muito lucrativa quando fez o acordo promocional de entregar uma pizza em 30 minutos. No entanto, muitos processos foram movidos contra a Domino's no passado por condução imprudente por seus motoristas, então a Domino's retirou a promoção. Little Caesar's é outro dos concorrentes da Pizza Hut, logo atrás da Domino's em participação de mercado. Little Caesar é famosa por oferecer grandes quantidades de pizza por menos dinheiro. Outros concorrentes incluem o Papa John's, o Sbarro e o Pizza Inn.

Um problema enfrentado por todas as cadeias de pizzas é que cada uma de suas vantagens competitivas individuais é praticamente toda a vantagem competitiva de todos. A maioria, se não todas as cadeias de pizzas de topo oferecem entrega gratuita, e sempre tem algum tipo de oferta promocional oferecendo grande! pizzas a preços reduzidos. Outros concorrentes a serem levados em consideração são pizzas congeladas e pizzas feitas por você mesmo que são compradas em mercearias. Alguns exemplos são pizzas Tombstone Pizzas, Boboli e Di Gorno.

História e perfil da empresa.

A Pizza Hut Inc. é a maior empresa de pizzarias do mundo, tanto em número de pontos de venda quanto em porcentagem de participação de mercado que detém. Uma subsidiária da PepsiCo, Inc., a empresa supervisiona mais de 11.000 pizzarias e pontos de venda em 90 países em todo o mundo. Em outubro de 1997, a empresa esperava tornar-se uma subsidiária da Tricon Global Restaurants, Inc., formada a partir da cisão das holdings de restaurantes da PepsiCo.

A Pizza Hut foi fundada em 1958 pelos irmãos Dan e Frank Carney em sua cidade natal, Wichita, Kansas. Quando um amigo sugeriu a abertura de uma pizzaria, então uma raridade - eles concordaram que a idéia poderia ser bem sucedida - e pediram US $ 600 emprestados da mãe para começar um negócio com o parceiro John Bender. Alugando um pequeno prédio no 503 South Bluff no centro de Wichita e comprando equipamentos de segunda mão para fazer pizzas, o Carneys and Bender abriu o primeiro restaurante Pizza Hut; na noite de abertura, eles deram pizza para incentivar o interesse da comunidade. Um ano depois, em 1959, a Pizza Hut foi incorporada ao Kansas e Dick Hassur abriu a primeira unidade de franquias em Topeka, Kansas.

No início dos anos 1960, a Pizza Hut cresceu com a força do marketing agressivo da ideia da pizzaria. Em 1962, os irmãos Carney compraram a participação de Bender, e Robert Chisholm ingressou na empresa como tesoureiro. Em 1966, quando o número de unidades franqueadas da Pizza Hut cresceu para 145, foi estabelecido um escritório em casa para coordenar os negócios em Wichita.

Dois anos depois, a primeira franquia Pizza Hut foi aberta no Canadá. Isto foi seguido pelo estabelecimento da International Pizza Hut Franchise Holders Association (IPHFHA). O objetivo era adquirir 40% das operações de franquia da empresa, ou 120 lojas, e adicioná-las às seis lojas de propriedade da Pizza Hut.

As aquisições, no entanto, trouxeram turbulências para a cadeia. Vários sistemas contábeis usados ​​pelos proprietários de franquias anteriores tinham que ser fundidos em um sistema operacional, um processo que levou oito meses para ser concluído. Enquanto isso, as vendas diminuíram e os lucros caíram.

Turbulência traz nova estrutura no início dos anos 70.

No início de 1970, Frank Carney decidiu que a prática da empresa de confiar nas estatísticas de seu relatório anual para informar sua estratégia de negócios era inadequada e que um plano de negócios de longo prazo mais desenvolvido era necessário. O ponto de virada ocorreu quando a Pizza Hut se tornou pública e começou a crescer em um ritmo sem precedentes. Carney disse em 1972: "Nós perdemos o controle das operações". Então descobrimos que tínhamos que aprender a planejar. & # 8221;

A estratégia corporativa da Pizza Hut, que surgiu depois de muita consulta e debate na diretoria, surgiu em 1972. Carney comentou mais tarde que o processo de introdução de uma estrutura gerencial fez muito para convencer a PepsiCo, Inc. de que a cadeia de pizzas era digna compra.

A primeira prioridade da estratégia corporativa foi aumentar as vendas e os lucros para a cadeia. Continuar a construir uma base financeira sólida para a empresa fornecer financiamento adequado para o crescimento era a segunda prioridade. A estratégia também pediu a adição de novos restaurantes para a cadeia em mercados emergentes e em crescimento.

Em 1970, a Pizza Hut abriu unidades em Munique, na Alemanha, e em Sydney, na Austrália. Nesse mesmo ano, o 500º restaurante da cadeia foi inaugurado em Nashville, Tennessee. Outras aquisições naquele ano incluíram uma participação de 80 por cento na Ready Italy, uma fabricante de crosta congelada, e uma joint venture, a Sunflower Food Processors, formada com a Sunflower Beef, Inc. No mesmo ano, os menus de todos os restaurantes adicionaram sanduíches ao & # 8220; Thin & # 8216; n Crispy & # 8221; oferta de pizza.

Em 1971, a Pizza Hut tornou-se a maior cadeia de pizzarias do mundo, de acordo com as vendas e o número de restaurantes, e mais de 1.000 no total. Um ano depois, a rede ganhou uma listagem na Bolsa de Valores de Nova York. A Pizza Hut também alcançou, pela primeira vez, uma semana de vendas de um milhão de dólares no mercado dos EUA.

No final de 1972, a Pizza Hut fez sua oferta há muito esperada de 410.000 ações ordinárias ao público. A empresa expandiu-se comprando três divisões de restaurantes: Taco Kid, Next Door e Flaming Steer. Além disso, a Pizza Hut adquiriu a Franchise Services, Inc., uma empresa de fornecimento de restaurantes, e a J & amp; G Food Company, Inc., um distribuidor de alimentos e suprimentos. A empresa também adicionou um segundo centro de distribuição em Peoria, Illinois.

Em 1973, a Pizza Hut expandiu-se ainda mais abrindo lojas no Japão e na Grã-Bretanha. Três anos depois, a rede tinha mais de 100 restaurantes fora dos Estados Unidos e duas mil unidades em sua rede de franquias. O 2.000º restaurante da empresa foi inaugurado em Independence, Missouri. Também estabeleceu o edifício de restaurante Pizza Hut de 35 por 65 metros de telhado vermelho como o tamanho do regulamento para todos os seus novos estabelecimentos. O novo padrão de construção exigia edifícios independentes construídos em um design de tijolo de um andar. Os sites sentados de 60 a 120 pessoas.

A publicidade desempenhou um papel cada vez mais influente na Pizza Hut neste momento, ampliando o perfil público da cadeia. As campanhas foram executadas em nível nacional e local no mercado dos EUA. Os gastos com publicidade local aumentaram de US $ 942.000 em 1972 para US $ 3,17 milhões em 1974.

A PepsiCo compra a empresa em 1977.

Em 1977, a Pizza Hut fundiu-se com a PepsiCo, tornando-se uma divisão do refrigerante global e do conglomerado de alimentos. As vendas nesse ano chegaram a US $ 436 milhões, e um novo escritório central de US $ 10 milhões foi inaugurado em Wichita. A PepsiCo viu claramente o potencial na Pizza Hut. As pessoas continuaram a comer fora de suas casas, especialmente porque a conveniência e a competitividade de preços na indústria de fast food ganharam importância.

Os anos 80 trouxeram novos competidores para a Pizza Hut, todos desafiando sua posição número um no comércio de pizzarias, e então valendo US $ 15 bilhões em vendas anualmente somente nos Estados Unidos. Enquanto na década de 1970, os principais concorrentes da empresa eram cadeias regionais como a Pizza Inn, sediada em Dallas, a Shakey de Denver e a Village Inn e Straw Hat, com sede em Phoenix, a acirrada concorrência nos anos 80 trouxe novos participantes na categoria de pizza de serviço rápido, incluindo Little Caesar, Pizza International da Domino e Pizza Express.

Para aumentar seu perfil, a Pizza Hut introduziu o & quot; Pan Pizza & # 8221; em 1980 em toda a sua rede. O produto, com uma crosta mais grossa feita em panelas profundas, logo se tornou popular. O sucesso de novas adições ao menu da Pizza Hut foi facilitado pelos recursos de marketing fornecidos pela PepsiCo.

Por exemplo, em 1983, a Pizza Hut introduziu o "Personal Pan Pizza", & # 8221; oferecendo aos clientes uma garantia de cinco minutos para que suas pizzas de serviço único chegassem rapidamente e fumegando. O objetivo era fazer uma pizza rápida e acessível a refeição ideal para o almoço. Outra adição ao menu da cadeia foi "Pizza tradicional à mão", & # 8221; que seria introduzido em 1988.

Forte crescimento no final dos anos 80 e início dos anos 90.

Em 1984, Steven Reinemund foi nomeado presidente e diretor executivo da Pizza Hut. Ele supervisionou um período de crescimento sem precedentes para a cadeia de pizzarias. Em 1986, a Pizza Hut abriu sua 5.000 unidade de franquias, em Dallas, Texas, e iniciou seu bem-sucedido serviço de entrega em domicílio. Na década de 1990, os negócios de entregas e lançamentos haviam crescido para responder por aproximadamente 25% das vendas totais da empresa.

Em 1990, a Pizza Hut abriu seu primeiro restaurante em Moscou. Russos & # 8217; pizza de escolha, & # 8220; Moskva & # 8221; uma torta coberta com sardinhas, atum, cavala, salmão e cebola, tornou-se uma das favoritas no Moscow Pizza Hut. A localização de Moscou rapidamente se estabeleceu como a unidade de maior volume da Pizza Hut no mundo. Os restaurantes logo atrás no volume total servido foram encontrados na França, Hong Kong, Finlândia e Grã-Bretanha. Outras coberturas favoritas para pizzas em outros países além dos Estados Unidos incluem chucrute e cebola, além de espinafre, presunto e cebola. Em Hong Kong, o corned beef e o bacon canadense eram os favoritos, enquanto asiáticos e australianos pareciam apreciar várias pizzas de curry.

A competição nos Estados Unidos foi aumentada em 1991 quando a McDonald's, a maior cadeia de fast food de hambúrguer do mundo, colocou a McPizza. em seu menu em vários mercados de teste e até mesmo oferecia entrega em domicílio aos clientes. Apesar desse esforço e da recessão econômica do início dos anos 90, a Pizza Hut continuou lucrando. As vendas da empresa na cadeia de pizzas aumentaram dez por cento em todo o mundo, para US $ 5,3 bilhões em 1991, à medida que a crescente conscientização sobre a saúde e a popularidade dos estilos de vida vegetarianos levaram muitas pessoas a reconsiderar a pizza como uma alternativa nutritiva à comida gordurosa de fast food. A Pizza Hut Delivery, a operação de entrega em domicílio, forneceu US $ 1,2 bilhão apenas em vendas, e as vendas gerais da Pizza Hut, somadas às subsidiárias da PepsiCo Taco Bell e KFC (anteriormente Kentucky Fried Chicken), proporcionaram à controladora mais de US $ 21 bilhões em vendas. ano em seu restaurante e fast food.

In the early 1990s Pizza Hut was concerned with making itself more accessible. Drive-through units were added for customers’ convenience, and Pizza Hut Express units were being developed. The Express unit originated in shopping malls, where it provided customers with fast food at affordable prices made possible by lower operating overheads. Since that time, Pizza Hut positioned Express units in school cafeterias, sports arenas, office buildings, and major airports. The company saw nontraditional locations as the fastest-growing sector of its operations in the first half of the 1990s.

PepsiCo’s corporate sponsorship of Pizza Hut included funding the Book It! National Reading Incentive Program, which encouraged higher literacy rates among young people. The reward for better reading ability was free pizza at any Pizza Hut. In 1992, the Book It! program involved more than 17 million students in North America alone, and Pizza Hut received letters of endorsement that year from President George Bush and Secretary of Education Lamar Alexander.

PepsiCo took advantage of global change following the end of the Cold War, expanding Pizza Hut into new and emerging markets. In 1991 PepsiCo had restaurant outlets in 80 countries worldwide. Wayne Calloway, chairman of PepsiCo, indicated he wished to see continued growth with the approach of the 21st century. He commented, “The major question for international restaurant growth is, ‘How fast can we get there?’ A steadily growing interest in eating away from home and the continued gravitation to convenience foods are creating an atmosphere of excitement for our restaurants.” Pizza Hut restaurants had spread to 90 countries by 1997.

Declining Profits in Mid-1990s.

In 1994 several changes resulted in the company’s first decline in operating profits in 15 years. The pizza market was no longer growing; fast food rivals cut prices; and investment in new outlets was draining corporate resources. PepsiCo’s restaurant division saw sales in restaurants open at least one year fall six percent in 1994, contributing to a drop in profits of 21 percent (to $295 million).

In an effort to change this disturbing direction, Roger A. Enrico moved from PepsiCo’s beverage and snack food divisions to head the restaurant division in 1994. His first move was to heavily promote a new product: stuffed crust pizza, a pizza with a ring of mozzarella folded into the outer edge of the crust. The company used a massive advertising campaign to promote the new product, including television commercials that paired celebrities eating their pizzas crust first.

Some indicators were promising: market share rose from 25.6 to 27 percent; 1995 sales increased 16 percent to $5.2 billion; and operating income rose to $414 million, up 40 percent from the year before. In 1996 Pizza Hut planned to introduce a major new product each year and two or three line extensions. The following year it followed through on this course, introducing Totally New Pizzas with 67 percent more toppings than previous pizzas and thicker sauce. The company allocated $50 million for the project, part of which was to be used to install new or improved ovens. In 1996 Pizza Hut accounted for 17 percent of PepsiCo’s total sales and 13 percent of its operating profit.

However, these gains could not offset the drain that capital investment placed on PepsiCo’s other divisions. The parent company’s return on assets was significantly greater in its beverage and snack food divisions than in its restaurant division. In the late 1990s, PepsiCo drew together its restaurant businesses, including Pizza Hut, Taco Bell, and KFC. All operations were now overseen by a single senior manager, and most back office operations, including payroll, data processing, and accounts payable, were combined. In January 1997 the company announced plans to spin off this restaurant division, creating an independent publicly traded company called Tricon Global Restaurants, Inc. The formal plan, approved by the PepsiCo board of directors in August 1997, stipulated that each PepsiCo shareholder would receive one share of Tricon stock for every ten shares of PepsiCo stock owned. The plan also required Tricon to pay a one-time distribution of $4.5 billion at the time of the spinoff. If approved by the Securities and Exchange Commission, the spinoff would take place on October 6, 1997.

Enrico, who had risen to the position of PepsiCo CEO, explained the move: “Our goal in taking these steps is to dramatically sharpen PepsiCo’s focus. Our restaurant business has tremendous financial strength and a very bright future. However, given the distinctly different dynamics of restaurants and packaged goods, we believe all our businesses can better flourish with two separate and distinct managements and corporate structures.”

When it comes to tossing around dough, no one does it more often than Pizza Hut. The unit of YUM! Brands operates the world’s #1 pizza chain with more than 13,000 outlets in about 90 countries worldwide. The chain serves a variety of pizza styles, including its flagship Pan Pizza, as well as Thin n’ Crispy, Stuffed Crust, Hand Tossed, and Sicilian. Other menu items include pasta, salads, and sandwiches. Pizza Hut offers dine-in service at its characteristic red-roofed restaurants, as well as carry-out and delivery service. About 15% of the restaurants are company-operated, while the rest are franchised. The world’s largest fast food company, YUM! Brands runs KFC and Taco Bell in addition to Pizza Hut.

Organizational values ​​of Pizza Hut.

Pizza Hut Indonesia made ​​the following four values ​​as the basis in running the organization, also in building relationships with customers, business partners and shareholders.

We are honest in thinking and working, trustworthy, sincere and professional attitude when dealing with colleagues, customers and suppliers.

We will develop themselves and gain an advantage by way of a ‘Casual Dining Restaurant’ ao melhor. We strive to enhance the skills and knowledge, share skills and learn together with our colleagues, so we grow together, both individuals and organizations.

Pizza Hut’s Total Quality Management.

Pizza Hut as companies that provide services of customer satisfaction with the quality of their food, they also puts their customers by placing their stores in strategic places, not only in the international spot market, but also medium-low.

Every year, our staff follows the Champs Challenge, a competition that tested the operational speed and quality of service and operations, both in restaurants and in our kitchen. Champs is the abbreviation of Cleanliness (hygiene), Hospitality (hospitality), Accuracy (accuracy), Maintenance (maintenance), Product (product) and Speed ​​of Service (the speed of service). Champs Challenge was held starting from the restaurant, state, provincial, and national and international (Asia-Pacific).

At the international level Champs Challenge (Asia-Pacific) 2009 in Kuala Lumpur, Indonesia Pizza Hut team won seven of nine gold awards for the Best Manager category, The Best Rider (for Delivery), The Best CSR or Customer Service (for order taker / receiving orders), The best Speed ​​of Service, The best Product Quality, The best Hospitality, and The best Champs Cheers (yel best).

At the international level Champs Challenge (Asia-Pacific) 2008 in Bali, Indonesia Pizza Hut team made ​​an amazing achievement by winning 9 of 9 gold award for The Best Manager category, The Best Rider, The Best CSR or Customer Service, The Best Production (kitchen operations), The best Speed ​​of Service, The best Product Quality, The best Hospitality, The best Customer Mania, and The best Champs Cheers (yel best).

Implications of Quality.

a ny company can expect its reputation for quality to keep up his reputation. Quality will affect the outlook or perspective customers about new products company, labor outlook on employment practices, and view the distributor on supplier relationships. Pizza hut a very good reputable company in the field of fast food pizza is the food type.

matters relating to the companies that typically have a duty design, product, distribution, and services. If one of the obligations of causing harm to customers or the environment and society can lead to lawsuits against companies that will cost huge sums of money for settlements, legal fees and would be bad publicity. Pizza hut has been able to minimize liability. But Pizza Hut is also experiencing some problems in the product the customer complained that the quality of products in each store are not the same. This case shows that the quality of food served at each franchise is different.

in the era of globalization, quality is paramount for international attention. For a company or a nation to compete effectively in the global economy, products must meet global quality, design, and price expectations. Pizza Hut has opened a branch in every country in the world because it has unique abilities and to compete in the world.

Cost Of Quality (COQ).

which means the costs associated with reducing the potential for defective parts or services for training and quality improvement program examples. Pizza Hut has conducted employee training for cashiers and waiters while the chef or cook.

costs associated with evaluation of products, processes, parts, and service for testing samples, laboratory, and inspectors. Pizza Hut has also done a few things about the cost of such assessment to develop a division of RND.

production costs resulting from defective parts or service before delivery to customers, for example, rework, scrap, and downtime. Pizza Hut, about 10-15 minutes of downtime is very good.

costs incurred after delivery o defective parts or services for example, rework, returned goods, liability, loss of goodwill, and costs to society. Pizza Hut, if anything back, if only a few defects, the employees will fix it or if the contaminated food (flies, etc), they will throw it and serve new ones.

Ethics and Quality Management.

One of the most important job is to provide healthy, safe products, and quality and service to customers. Because if a product or service delivered in poor quality, can cause injury, lawsuits, and increased government regulation.

There are many parties involved in the production and marketing of low quality products. As a matter of ethics, management must ask whether any of their stakeholders are being harmed. Every company needs to develop core values ​​that guide the day to day for each person of the owner of Pizza Hut to production line employees are exactly what Pizza Hut has been achieved, because until now, no one has any issues that arise in the news about the Ethical Pizza Hut.

Dane and Frank Carney is the CEO of Pizza Hut company. Though the company itself is segmented hierarchy (such as corporations usually are, or diverted to open a company) a majority of shares are still owned by the family of Dan and Frank Carney. Pizza Hut’s mission has always been and will always serve quality cuisine, authentic Indonesian with just fresh from local ingredients. Pizza Hut operating procedure was as usual fast food restaurant, you make your order at the counter and if the food you need a message to your cooking time will be given a card marked your order (which will then be sent shortly after) if the customer wants to complain about their order they can only meet a store manager for the day or put them in the box complain complain. They train their servers and cashiers at each franchise to ensure efficiency in each operation. To cook them, they are trained in Headquartes Pizza Hut so that food quality standards. Pizza Hut is also a pioneer in customer support program that uses communication channels to ensure the best problem-solving and flexible way to maintain quality by building an information center.

Pizza Hut as the company’s customer service is the focus, they have good customer service. They always make improvements, not only in the recipe but also the efficiency of operations so that they can serve more customers faster and more satisfying. Using the Plan-Do-Check-Act.

A: Act: Implement.

C: Check: Feedback.

Plan-Do-Check-ActCililitan Pizza Hut.

Benchmarking for Pizza Hut meant to standardize the flavor for each product in the menu on the headquarters of the owner sometimes took part in the making. This means that based on the franchise Pizza Hut Pizza Hut headquarters, located in Wichita, Kansas 67 027.

Pareto Chart for Cililitan Pizza Hut.

In Pizza Hut have employees who run the company that involve direct contact with customers, they also have many stations to work, that’s why the company gave employees an empowerment so that they can work on more stations, such as a cashier and waitress at the same time . Employee empowerment is enlarged so that the basic work on additional responsibilities and authority was transferred to the lowest posible within the organization. In the process of training, employees are not only thinking in one specialization but also all other specialties, whether it’s in the kitchen or dealing with customers at the checkout. One way to build employee empowerment is to build a communications network that includes emloyees, where Pizza Hut has been done because the employee already has a working standard. There are also control the quality by using quality circles, quality circle is a group of employees meet regularly with a facilitator to solve problems related work in their district.

Being that Pizza Hut holds the most market share in the pizza industry, the perceived quality and service of the company will help to ensure a better than average chance at a successful introduction of a new product. The pizza industry firms are famous for introducing new products to spark short-term sales. Pizza Hut as stated earlier has been very successful at accomplishing this. The introduction of a product that keeps with today’s trends is also important to reduce the risk of failure. In recent years there has been an increase in the marketing of products with an extreme twist to them. Mountain Dew, which is a brand name owned by Pizza Huts parent company, Pepsico, has been very successful at repositioning itself to this segment of the market, which has sparked new interest in the soft drink. Many other imitators have followed in there footsteps and have been successful as well. Pizza Hut has the resources available to research and implement a new product with great success.

Pizza Hut is the leader in innovative products and this new product that we are proposing will surely be a success, given Pizza Huts track record. With high competition from the other top firms in the industry, the introduction of a new product is necessary to keep one step ahead of the competition. We propose that Pizza Hut introduce the Extreme Pizza. This pizza will be larger than the competitors at twenty-inches and have twice the toppings that the competitors have. Pizza Hut will market this product along side other extreme products such as Mountain Dew, to help Pizza Hut capture part of this new segment of the market. The selection of pizza’s offered by the competition have been significantly less creative than that of Pizza Hut in the past and Pizza Huts reputation of offering high quality, new products will allow this new product to move into the market as other new offerings have in the past. With the introduction of a new product, one of our main objectives is to create recognition for our product. Our goal is to reach 85% recognition of the new product in our target market.

As with all businesses, the most important goal of a company is to increase revenue and profits. With the introduction of this new product we hope to increase the overall sales of the company by 7%. If we can in fact reach our goal of 85% recognition of the product, through a successful promotions mix, then the increase in sales should be easily acquired.

With the introduction of the Extreme Pizza from Pizza Hut, the name itself is an indication of the target market sought. In today’s world of adrenaline junkies and extreme sports, a products affiliation with the world of the extreme has grabbed the attention of the younger generations. These generations range from the age of 12 to 30. These generations are affectionately referred to as the Y and X generations. For many years marketers ignored this segment and simply stereotyped them as slackers or losers. However, this has not been the case in recent years. With extreme sports making an entrance into pop culture in the early 90’s, many companies have realized the potential for high returns by targeting this highly diverse segment of the market. In America today, there are 71 million Americans that fall between the ages of 12 and 30, making generations X and Y the two fastest growing segments of society. The overall spending power of this segment is 300 billion dollars a year, with a large percentage of that money spent on non-essential items. The reason for the high amount of spending in this segment has been associated to the times that they have grown up in. Unlike the baby-boomers, there has been no times of risk or economic depression in their lives. This is a generation with a “spend now, pay later” attitude, which has made for high spending averages on a per person basis. In 1997, The National Longitudinal Survey of Youth, found that the median amount of cash that children receive from their parents for auxiliary spending is $50 dollars a week. This kind of spending money that children are given is what Pizza Hut wants to target with the Extreme Pizza. However, children living at home are not the only o! nes to have extra money to burn.

A study on the spending habits of college freshmen also indicates a high percentage of money being spent on non-essential items. The results showed that an average of $56 is spent monthly on eating out. This information on this segment of the market, gives Pizza Hut a window to offer a product that will attract these customers who not only have the money to spend on such things as pizza, but who have done so in the past. In the past Pizza Hut has not specifically targeted the younger generations with products. They have created a more generic marketing plan, to attract a wide variety of customers. In order for this marketing strategy to work, Pizza Hut needs to target this one segment of the market. The advertising and promotion needs to be very specific to their needs, in order for the money spent on advertising to be worthwhile. Many products have failed in this segment because they have tried to treat the segment as one group. This segment is made up of many groups and many individuals. This is part of the reason for society labeling generation X and Y members as loser’s and slackers. So with this in mind our advertising campaign must follow the same ideas by realizing that even within this segment there are many other segments. One characteristic of these two generations, 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. With the lack of responsibilities that teenagers have, and the lack of home cooked meals while away at college, pizza is a quick alternative for dinner, and a fun way for friends to eat together. 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. With the total number of Generation X and Y members being so high and the money they spend on non-essential items being as much as it is, this segment could make this product a huge success. However, this is a hard market to target since everyone is so different, but they all have one thing in common, there love for pizza. 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.

Hut should offer a new product called “The Extreme” pizza. “The Extreme” is a twenty-inch 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 twenty-inch 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 America’s youth. “The Extreme” pizza will target Generation X and Generation Y or people between the ages of 12 and 30. This market purchases a lot of pizza each year, but very few pizza restaurants actually target them. “The Extreme” will be introduced on Super Bowl Sunday, 2001. 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.

B)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 $9.99, which is higher than Pizza Hut’s competitors. Several sales promotions and coupons 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 $9.99 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.

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 $9.99 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 Super Bowl Sunday, 2001, in a television commercial. Although Super Bowl television ads are expensive, Pizza Hut has enough financial resources for one. This commercial will be similar to the current 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 such as Surfer, Snowboarding, YM, and Maxim. This advertising campaign will create awareness of the new product in our target markets.

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, download any special coupons, and order without having to disclose any credit card numbers. The market coverage for “The Extreme” will be nationwide. Customers all over the country will be able to order “The Extreme” by one of the three distribution methods.

First, we will address who will be responsible for the control measures we plan to take. The Marketing Vice President in the Corporate Headquarters, the local/regional Marketing Vice Presidents and the Pizza Hut restaurant managers will all play a role in being responsible for the control. Our success or failure will be determined in a couple of ways. One main way is to compare results to our objectives. If our objectives are not met, steps to meet them will be taken in the future. We will also look at profits, sales revenue, unit volume of the “Extreme Pizza” promotions used. If our budget allows, perhaps we could give a survey to our customers and get some direct feedback about our new pizza. Ongoing research is essential for our success. Since our plan is for one year, we feel that every 3 months we should do some type of evaluation and control to see how we are doing. Also, during the maturity state of the product life cycle, we will improve the quality and distinguish ourselves well from competitors. Hopefully, this process of control will be monitored on a monthly basis.

Summary and Conclusion.

Pizza Hut has a successful history of introducing new products to increase sales and reach new customers. This introduction of new products to the market on a regular basis is what makes Pizza Hut the leader in their industry. The level of success that the “Extreme Pizza” will bring Pizza Hut depends heavily on the correct promotions mix. As we had stated earlier, the segment of the market that we have targeted is a very diverse group. This means that the promotion of the product must be done in a diverse fashion. This will result in a more expensive advertising campaign than in past campaigns, but the potential for a successful product will cover the costs and bring in substantial profit.

The advertising campaign is going to be budgeted to use 8% of projected sales. We are forecasting that the introduction of the Extreme Pizza will increase sales by 7%. This forecast is based upon other new products that Pizza Hut has introduced and the impact that they have had on Pizza Huts revenues. A 7% increase in sales for Pizza Hut will bring a total of $547 million dollars in revenue, making the advertising budget $43.76 million. This kind of advertising budget will allow for a mass media blitz of promotions featuring our new “Extreme Pizza”. Our target market spends many hours a day in front of the TV and computer, so the constant messages being played will allow our product to generate a high level of awareness.

The advertising of the product is very important but the promotion of this product along side Mountain Dew will help to put our product in a more specific category. Mountain Dew has targeted our target market for several years and is by far one of the leaders in this market. With this in mind promotions with Mountain Dew will be crucial to the success of the “Extreme Pizza”. With competition being so strong in this industry the threat of imitation products will surely be a problem to be dealt with. Pizza Hut will however have the first mover advantage with this product. With the entry of imitation products into the market, Pizza Hut will have to adjust its mixes to accommodate change. The promotions may have to be bigger and better than the competition, or the product may need to be altered to give it that little bit of an edge over the competition. For example stuffing the crust with cheese or giving a free topping with the purchase would help give Pizza Hut an edge over the competition. Basically, Pizza Hut will need to remain flexible in the maturity stages of the product life cycle in an attempt to continue to be the market leader. Overall, this is a product that is not much unlike any of the other new pizza’s that Pizza Hut has introduced. What makes this new product so exciting is the marketing plan that is directing the product at a new segment. We are taking a large pizza with a lot of toppings and marketing it as an “Extreme Pizza” to a generation of younger adults that are consumed by this marketing tool. This is what will make this a success. The mix of promotion and advertising we will be using will target a very profitable, sometimes overlooked market segment known as generations X and Y.

Goutham's Thoughts.

1. Soft Drink Industry Five Forces Analysis:

Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry.

The several factors that make it very difficult for the competition to enter the soft drink market include:

Bottling Network: Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who have rights in a certain geographic area in perpetuity. These agreements prohibit bottler’s from taking on new competing brands for similar products. Also with the recent consolidation among the bottler’s and the backward integration with both Coke and Pepsi buying significant percent of bottling companies, it is very difficult for a firm entering to find bottler’s willing to distribute their product.

The other approach to try and build their bottling plants would be very capital-intensive effort with new efficient plant capital requirements in 1998 being $75 million.

Advertising Spend: The advertising and marketing spend (Case Exhibit 5 & 6) in the industry is in 2000 was around $ 2.6 billion (0.40 per case * 6.6 billion cases) mainly by Coke, Pepsi and their bottler’s. The average advertisement spending per point of market share in 2000 was 8.3 million (Exhibit 2). This makes it extremely difficult for an entrant to compete with the incumbents and gain any visibility.

Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of brand equity and loyal customer’s all over the world. This makes it virtually impossible for a new entrant to match this scale in this market place.

Retailer Shelf Space (Retail Distribution): Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf space they offer. These margins are quite significant for their bottom-line. This makes it tough for the new entrants to convince retailers to carry/substitute their new products for Coke and Pepsi.

Fear of Retaliation: To enter into a market with entrenched rival behemoths like Pepsi and Coke is not easy as it could lead to price wars which affect the new comer.

Commodity Ingredients: Most of the raw materials needed to produce concentrate are basic commodities like Color, flavor, caffeine or additives, sugar, packaging. Essentially these are basic commodities. The producers of these products have no power over the pricing hence the suppliers in this industry are weak.

The major channels for the Soft Drink industry (Exhibit 6) are food stores, Fast food fountain, vending, convenience stores and others in the order of market share. The profitability in each of these segments clearly illustrate the buyer power and how different buyers pay different prices based on their power to negotiate.

Food Stores : These buyers in this segment are some what consolidated with several chain stores and few local supermarkets, since they offer premium shelf space they command lower prices, the net operating profit before tax (NOPBT) for concentrate producer’s in this segment is $0.23/case Convenience Stores: This segment of buyer’s is extremely fragmented and hence have to pay higher prices, NOPBT here is $0.69 /case. Fountain: This segment of buyer’s are the least profitable because of their large amount of purchases hey make, It allows them to have freedom to negotiate. Coke and Pepsi primarily consider this segment “Paid Sampling” with low margins. NOPBT in this segment is $0.09 /case.

Vending: This channel serves the customer’s directly with absolutely no power with the buyer, hence NOPBT of $0.97/case.

Substitutes: Large numbers of substitutes like water, beer, coffee, juices etc are available to the end consumers but this countered by concentrate providers by huge advertising, brand equity, and making their product easily available for consumers, which most substitutes cannot match. Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition. Rivalry:

The Concentrate Producer industry can be classified as a Duopoly with Pepsi and Coke as the firms competing. The market share of the rest of the competition is too small to cause any upheaval of pricing or industry structure. Pepsi and Coke mainly over the years competed on differentiation and advertising rather than on pricing except for a period in the 1990’s. This prevented a huge dent in profits. Pricing wars are however a feature in their international expansion strategies.

2. Economics of Bottling vs Concentrate Business.

(Data from Exhibit 5)

As the above table indicates concentrate business is highly profitable compared to the bottling business. The reasons for this are:

Higher number of bottler’s when compared to the concentrate producer’s which fosters competition and reduces margins in the bottling business Huge capital costs to set up an efficient plant for the bottlers while the capital costs in concentrate business are minimal Costs for distribution and production account for around 65% of sales for bottler’s while in the concentrate business its around 17% Most of the brand equity created in the business remains with concentrate producer’s.

Possible Reasons for Vertical Integration:

With the decrease in the number of bottler’s from 2000 in 1970 to less than 300 in 2000, the concentrate producers were concerned about the bottler’s clout and started acquiring stakes in the bottling business. They could offer attractive packaging to the end consumer. To preempt new competition from entering business if they control the bottling.

3 Effect of competition between Coke and Pepsi on industry profits:

During the 1960’s and 70’s Coke and Pepsi concentrated on a differentiation and advertising strategy. The “Pepsi Challenge” in 1974 was a prime example of this strategy where blind taste tests were hosted by Pepsi in order to differentiate itself as a better tasting product from Coke.

However during the early 1990’s bottler’s of Coke and Pepsi employed low priced strategies in the supermarket channel in order to compete with store brands, This had a negative effect on the profitability of the bottlers. Net profit as a percentage of sales for bottlers during this period was in the low single digits (-2.1-2.9% Exhibit 4) Pepsi and Coke were however able to maintain the profitability through sustained growth in Frito Lay and International sales respectively. The bottling companies however in the late 90’s decided to abandon the price war, which was not doing industry any good by raising the prices.

Coke was more successful internationally compared to Pepsi due to its early lead as Pepsi had failed to concentrate on its international business after the world war and prior to the 70’s. Pepsi however sought to correct this mistake by entering emerging markets where it was not at a competitive disadvantage with respect to Coke as it failed to make any heady way in the European market.

4 Can Coke and Pepsi sustain their profits in the wake of flattening demand and growing popularity of non-carbonated drinks?

Yes Coke can Pepsi can sustain their profits in the industry because of the following reasons:

The industry structure for several decades has been kept intact with no new threats from new competition and no major changes appear on the radar line This industry does not have a great deal of threat from disruptive forces in technology. Coke and Pepsi have been in the business long enough to accumulate great amount of brand equity which can sustain them for a long time and allow them to use the brand equity when they diversify their business more easily by leveraging the brand. Globalization has provided a boost to the people from the emerging economies to move up the economic ladder. This opens up huge opportunity for these firms Per capita consumption in the emerging economies is very small compared to the US market so there is huge potential for growth. Coke and Pepsi can diversify into non–carbonated drinks to counter the flattening demand in the carbonated drinks. This will provide diversification options and provide an opportunity to grow.

5.Impact of globalization on Industry structure:

Globalization provides Coke and Pepsi with both unique challenges as well as opportunities at the same time. To certain extent globalization has changed the industry structure because of the following factors.

Rivalry Intensity: Coke has been more dominant (53% of market share in 1999). in the international market compared to Pepsi (21% of market share in 1999) This can be attributed to the fact that it took advantage of Pepsi entering the markets late and has set up its bottler’s and distribution networks especially in developed markets. This has put Pepsi at a significant disadvantage compared to the US Market.

Pepsi is however trying to counter this by competing more aggressively in the emerging economies where the dominance of Coke is not as pronounced, With the growth in emerging markets significantly expected to exceed the developed markets the rivalry internationally is going to be more pronounced.

Barriers to Entry: Barriers to entry are not as strong in emerging markets and it will be more challenging to Coke and Pepsi, where they would have to deal with regulatory challenges, cultural and any existing competition who have their distribution networks already setup. The will lack the clout that have with the bottler’s in the US. Suppliers: Since the raw material’s are commodities there should be no problems on this front this is not any different.

Customers: Internationally retailers and fountain sales are going to be weaker as they are not consolidated, like in the US Market. This will provide Coke and Pepsi more clout and pricing power with the buyers Substitutes: Since many of the markets are culturally very different and vast numbers of substitutes are available, added to the fact that carbonated products are not the first choices to quench thirst in these cultures present additional significant challenges.

The consumption is very low in the emerging markets is miniscule compared to the US market. A lot more money would have to be spent on advertising to get people used the carbonated drinks.

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