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Example research essay topic: Fast Food Industry Pizza Hut - 1,204 words

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... 0 billion for the 500, 000 restaurants in the U. S. in 1997. The U.

S. restaurant industry grew 5. 2 percent in 1997. Six major segments make up the fast food segment of the food service industry. Sandwich chains, like McDonald's and Wendy's are the number one segment, followed by dinner houses, such as Applebee's and Red Lobster.

Pizza chains are ranked third. Out of all the pizza chains, Pizza Hut has the largest market share, 46 %, followed by Domino's with 21. 7 %. International sales have become more and more important to the fast food industry. In 1998, Pizza Hut was the number one global chain with units in 88 different countries.

In 1990, Pizza Hut opened two restaurants in Moscow where 20, 000 customers were served a week, about the amount serviced by 10 American Pizza Huts. As profitable as the fast food industry is, there has always been one problem that many fast food companies cannot seem to overcome. Because of America's large aging population, greater awareness and interest in health issues have resulted. Nutritional value of fast food is a huge problem.

For many people, fast food automatically means low nutritional value. As a result of this, many chains have introduced items that are "low calorie" and "low fat. " Despite their efforts, many critics and consumers feel that their efforts were not satisfactory in providing a healthy meal. 4) SWOT Analysis Pizza Hut has many different strengths. Name recognition is an obvious strength for Pizza Hut. Pizza Hut has been around for a long time, and consumers know the name well. Another big strength and even a competitive advantage is the fact that they have a full service restaurant as well as delivery services. Most of Pizza Hut's competitors do not have restaurants.

Because of the restaurant, Pizza Hut can market to many different segments that other pizza chains cannot. For example, Pizza Hut can market to families much easier than Domino's or Little Caesar's. Pizza Hut offers a sit-down, conversational type restaurant where families can take their children for birthday parties for example. Pizza Hut's broad selection of products also makes it easier for them to market to different market segments. However, the fact that Pizza Hut does have a restaurant to run is also a weakness. Pizza Hut has higher overhead costs, due to the restaurant that other competitors don't have to deal with.

Another result of higher overhead costs is higher prices Pizza Hut must charge. Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and good service to account for their higher prices. An indirect weakness that Pizza Hut has is that they have lost a lot of their customers and market share due to such intense competition with competitors. Pizza Hut's opportunities are almost endless. They can increase revenue with their new innovative pizzas, and increase brand loyalty with good customer service.

Another opportunity that Pizza Hut has is their new ordering online system. Anyone with Internet access can order whatever they wish and get it delivered to their house without even speaking to someone. This program has just been started, so we do not have any numbers to support whether or not it will be a success. Pizza Hut's number one threats are from their competitors. Currently, their closest competitor is Domino's Pizza. Domino's main competitive advantage over Pizza Hut is their price.

It is generally lower than Pizza Hut. Also, Domino's was very profitable when they ran the promotional deal of delivering a pizza within 30 minutes. However, many lawsuits have been filed against Domino's in the past for reckless driving by their drivers, so Domino's withdrew the promotion. Little Caesar's is another one of Pizza Hut's competitors, right behind Domino's in market share.

Little Caesar's is famous for offering large quantities of pizza for less money. Other competitors include Papa John's, Sbarro, and Pizza Inn. A problem facing all of the pizza chains is that each of their individual competitive advantages are pretty much everyone's competitive advantages. Most if not all the top pizza chains offer free delivery, and always have some sort of promotional deal offering large!

pizzas at reduced prices. Other competitors to take into consideration are frozen pizzas and make-it-yourself pizzas that are purchased in grocery stores. Some examples of these are Tombstone Pizzas, Boboli, and Di " Gornio pizzas. 5) Marketing Objectives 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. 6) Target Markets 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 w...


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