University Of Management and Technology

Marketing Management

Topic

Market Segmentation and Target Market Of

Pizza Hut Pakistan

Name Khawaja Naveed Haider

Serial No 28

ID No 073605-085

Section B

Date Wednesday, April 01, 2009

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University Of Management and Technology, Lahore

About Pizza Hut:
Pizza Hut is the company owned by Yum! Brands in 1997 by
Wichita and Kansas. The headquarter is located at Texas USA.
The company is engaged in restaurant industry producing wide
range of pizzas, pastas etc…
History:
By 1972, with 314 stores nationwide, Pizza Hut went public on
the New York Stock Exchange under the stock ticker symbol PIZ.
In 1977, Pizza Hut was acquired by PepsiCo, who later also
bought KFC and Taco Bell. In 1997, the three restaurant chains
were spun off into Tricon, and in 2002 joined with Long John
Silver's and A&W Restaurants to become YUM! Brands. Pizza Hut
has opened Pizza Hut Express which specializes in small 6"
pizzas. The oldest continuously operating Pizza Hut in the world
is in Manhattan, Kansas, in a shopping and tavern district known
as Aggie Ville.
(Copied from http://en.wikipedia.org/wiki/Pizza_hut)

Executive Summary:
Pizza Hut has built the strong reputation of its brand throw giving
the quality products and earned the respect from its customers.
Its innovation and quality with commitment took higher and
higher during past few years. But still the company is planning to
go and capture more market share. The employees and the
management know what they have to attained through the
targets which have been put to them and the plans they have
assumed help them recognize the way they will accomplish the
objectives. Similarly, Pizza Hut has diverse targets set to them
and they have adopted different strategies to successfully
achieve the targets set.

University Of Management and Technology, Lahore

Market Segmentation:
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…
But we’ll talk about the Pizza Hut Pakistan. Pizza Hut Pakistan’s
geographic segmentation is the developed cities. Pizza Hut is
available in Lahore, Karachi, Islamabad, Faisalabad, Hyderabad,
Multan, Peshawar, Sialkot, and Rawalpindi. We can observe that
pizza hut is available on all provincial capitals of Pakistan.

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”. But in
Pakistan, the slogan is “Share the good times”. Main age group is
12-30 years. Pizza Hut Pakistan offers Halal foods to all its
customers.

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 as
described in Pizza Hut Pakistan slogan. 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. That’s why in Pakistan, Pizza Hut M.M
Alam Road Lahore is the second largest outlet of the pizza hut
outlets generating more than $150,000 a month.

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Target Marketing:

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

• Take Away

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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 its hot and cold deals. Pizza Hut also
arranges tea parties to those customers
according to their agenda and time.

Basis Of Selecting Target Markets:

There are number of basis on which pizza hut selects those
target markets for their business. Number one is that they want
the people with a bit high income and food lovers. Who are ready
to spend and enjoy the best food in best environment.
There are not only Muslims in Pakistan but also some minorities
that are living their lives. They want some vegetarian food and
pizza hut is the only brand that offers some vegetarian stuff to
their customers. Due to the image of brand, vegetarians trust
pizza hut for best food in town. Visitors, who come to Pakistan,
don’t go back without paying visit to Pakistan’s food market.
Pizza hut has also selected it’s target market on the basis of this
thing so that it could provide the more and more to their
customers and more than just food as the pizza hut Pakistan
slogan is “Share the good times”.

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Pizza Hut has also selected its target market because of the X
generation which is more active than the previous generation. X
generation is more aware about the things as the time is going
with new technologies in every sector. X generation wants the
food which can fully satisfy their needs and hunger so that it
could be the most memorable times for them. X generation
especially in Lahore is more active in fast food as the time is so
fast and they want quick meal on their tables. X generation is
spending a lot in their food needs.

Consumer Profiling:
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.

Characteristics
Products Demographic Geographical Economic Social
Middle
Major Cities of Student or young
10-40years, male, and
Pizzas Punjab, Sindh professional,
female Upper
Sarhad 20,000/month
Class
Major Cities of Student or young
Soup and 8-40years, male,
Punjab, Sindh professional, Almost All
Salad female
Sarhad 15,000/month
Middle
Major Cities of Student or young
10-50years, male, and
Pastas Punjab, Sindh professional,
female Upper
Sarhad 20,000/month
Class
Middle
Major Cities of Student or young
Meal 10-40years, male, and
Punjab, Sindh professional,
Deal female Upper
Sarhad 20,000/month
Class
Middle
All but Prefered Major Cities of
Hot n Young professional, and
more than 25 years Punjab, Sindh
Cold Executives. 10,000/month Upper
male, female Sarhad
Class
Major Cities of Student or young
Desserts All Punjab, Sindh professional, Almost All
Sarhad 10,000/month

University Of Management and Technology, Lahore