Communication †Pizza Essay

Introduction pizza pie pie pie chantey is based in Wichita, Kansas USA 19581. A woman and her two sons created pizza recipes. From here, a family peer advised the sons to open their own pizza Parlor. 2. pizza pie hovel is 1 of the flagship brands of Yum Brands, Inc. , which as well has KFC, Taco Bell, A&W and Long behind Silvers under its umbrella. pizza hutch is the worlds largest pizza chain with over 12,500 restaurants across 91 countries 3. In India, pizza pie chantey has 133 restaurants across 34 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others.Yumis in the process of opening pizza pie hut restaurants at many more(prenominal) reparations to expediency a big client base across the country 4. Borrowing $600 from their mother, the two brothers acquired second-hand equipment and rented a small building on a busy intersection in Wichita, Kansas. The yield of their efforts was the first pizza shack a nd the foundation for what would experience the largest and the to the highest degree successful pizza restaurant in the world 5. pizza shanty franchisees exemplify the entrepreneurial spirit, which launched their brass back in 1958.Through interestingness and initiative, the pizza shack system was adapted to develop modernistic territories in the United States and overseas. Today, franchisees and joint-venture partnerships account for more than half of the pizza hut systems total units. Their development on the international front is a unplayful indication of the ripening that has characterized their system. Following the opening of the first international restaurant in Canada in 1968, the pizza Hut restaurants profligately appeargond in Mexico, S byh America, Australia, Europe, the Far East and Africa. Today, pizza Hut wreaks in more than century countries and territories throughout the world 6.When pizza pie Hut opened its topic in Baroda, Gujarat they firstly tho ught that they should make a bran- brisk pizza to the recipe of the topical anesthetic style in order to attract the local population. g They decided to provide the pizza according to the customers taste of choice7.This essay aims to answering the following question Should pizza pie Hut open a natural vent in Baroda? 1. http//www. pizzahut. com/OurStory. aspx 2. http//www. pizzahut. com/OurStory. aspx 3. http//220. 226. 195. 78/pizzahut. co. in/ almost_us. php 4. http//220. 226. 195. 78/pizzahut. co. in/ round_us.php 5. http//www. pizzahut. com/OurStory. aspx 6. http//www. pizzahut. com/OurStory. aspx 7. ( theater director of pizza pie Hut). ad hominem oppugn RESEARCH capitulum pizza Hut is an established brand all over India. To amplification the growth of the radical yield, pizza Hut recently narrow up a impudently commercialise investigate on the outskirts of Baroda with the investment of __ Basically, pizza Hut firms in India send Managers to spread proper awargo nness about their impertinently dismissal among the customers through divergent types of advertising and keep the customers sensible about their advancements in current outcomes 10.Commercially, I expect that the opening of the hot branch provide lead to an increase in sales in Baroda, Gujarat, and could increase the mart sh atomic be 18 of pizza Hut. For this reason, they necessitate to be adequate to(p) to successfully grocery store their juvenile firm when it is commercially launched. As antecedently menti hotshotd, to increase its growth and successfully securities industry their upcoming button, pizza Hut has been reviewing various promotion strategies like price reduction, to increase the price in their securities industrying budget and increase in piece of modules 11.So increase the mathematical merchandiseion by opening the modernistic(a) vent-hole and to increase the number of provide to work in both of the outlets is a schema that Pizza Hut is stro ngly considering in order to increase their growth in the interior(prenominal) trade 12. 8. (Manager of Pizza Hut). in the flesh(predicate) question 9. (Manager of Pizza Hut). individualized interview 10. (Manager of Pizza Hut). own(prenominal) interview 11. (Manager of Pizza Hut). personalized interview THEORETICAL FRAME WORK The Growth of a agate line squirt be measured in many different ways such(prenominal)(prenominal) as assets, sales revenue, operating wage, commercialise sh be, encourage added, and number of employees 13.As information of pizzas is involved, Pizza Hut believes that what they bring spic-and-span in the commercialize is non likend with any of the products of any another firm which is selling pizzas14. I commercially expect that the opening of the late firm give lead to increase in sales in Baroda, Gujarat, and could increase the foodstuff sh atomic number 18 of Pizza Hut. Due to this, they want to be able to successfully market their new fi rm when it is commercially launched. Pizza Hut aims to bewitch the customers to set down their new commercial enterprise, (target market) 15.The other promotional method apply by Pizza Hut and to spread the awareness about their new outlet is to do market research. I did the market research for Pizza Hut so that they kitty locate their new outlet where on that point are more potential consumers. High income sort was besides asked about the opening of a new outlet, before it is brought up in the market. Pizza Hut believes that the methods used to research on opening a new outlet proceeds h just about clock(a) of the attention of the customers for long time, so that they tolerate date the outlet frequently16. For reasons menti aced higher up, growth is widely regarded as the most accessible method to increase the profit level.12. http//www. tutor2u.net/ personal line of credit/presentations/strategy/businessgrowth/default. html 13. (Manager of Pizza Hut). Personal interv iew 14. _________ 15. (Manager of Pizza Hut). Personal interview 16. (Manager of Pizza Hut). Personal interview METHODOLOGY To reach a suitable conclusion, an in-depth qualitative and vicenary analysis s manor mansion house be conducted by using different business gibes to the uncreated info as well as the secondary data collected. The aboriginal data contains the interview of the Manager of the Pizza Hut outlet which already exists, the opinion of the customers who visit the exiting outlet and a few other tidy sum. market research This pass on contain the content of the market research and what it entails. This was conducted by me. Analysis of market research This ordain contain the chart and an account statement about how many people testament visit the new outlet (assumption) from the old outlets point in timeic earning. Swot analysis This give contain the vividness, weakness, opportunity, and threats of the business for opening the new outlet. Ansoffs matrix A mo del which identifies growth strategies for a business and it is based on an analysis of their products and their market.Pest-g This lead lay the governmental, economical, social and technical, as well as the environmental problem of the firm. monetary value analysis Cost analysis entrust be conducted to find out the quantifiable and unquantifiable exist involved in increasing the personal selling. merchandise RESEARCH Market research is the collection, collation and analysis of the data relating to the marketing and consumption of the goods and the services18. Market research helps in opening the new outlet, tells us were we stand in the market and how we kindle improve. How many time does the customer visit Pizza Hut?Group of people More than in one case a week erstwhile a week Fortnight periodical or less Family 04 20 45 25 College students 35 50 36 19 Above 50 00 05 36 30 Teenagers 40 45 26 17 (18) Here the market research data is organized according to age group. Market research through with(p) of the location Yes No (%) (%) Sayajigunj 66 34 Karelibaug 68 32 pic Here I do conducted the market research for the two different areas and I assimilate come to a conclusion that in Karelibaug at that place are 90% of people saying yes to open the new outlet 20.This is due to one outlet of Pizza Hut not providing delivery services to irrelevant areas21. So if it is in that area accordingly many people earth-closet visit the outlet and this will give more profit to Pizza Hut. As people from Fathegunj, Sayajigunj, city area and Karelibaug layabout visit as it will be nearer to them 22. 17. market research do by interviewing different people 18. business studies apply by Dave hall pg 147 19. interviewing different age group of people 20. People gave reason that why in these two areas. 21. Told by the people staying in that area. analysis OF THE PRIMARY data The finding of the market research which I have done for Pizza Hut will be analy zed to identify specific market attri providedes such as the manner in which the customer will act more. In addition to this, it will identify important information such as the effectiveness of the market research end points given by the customers will be discovered. From this data, it will be possible to judge the weaknesses of Pizza Hut. Recommendations will then(prenominal) be made by me on methods which Pizza Hut rotter adopt to overcome these weaknesses.Once Pizza Hut overcomes these weaknesses, it will have a better chance to successfully market their new outlet, and at the same time increase the sales from their current outlet. The graph below compares the frequency of teenagers who visit Pizza Hut as oppose to college students. pic 22 The ratio of college student is more than teenagers23. This nub that on an average, college students visit Pizza Hut more compared to the teenagers. This graph tells us how many families and those higher up 50 wish to go to Pizza Hut. pi c24 22. market research done by interviewing different people 23. (Manager of Pizza Hut).Personal interview 24. market research done by interviewing different people SWOT analytic thinking Swot analysis swot analysis is an analysis of the internal aptitude and weaknesses and the external threats and opportunities that Pizza Hut faces. The swot analyses will illustrates how the external opportunities and the threats can be matched with the Pizza Huts internal strength and weaknesses to result in a set of possible strategic alternative.This would identify Pizza Huts distinctive competencies and the opportunities that the Pizza Hut is not soon taking a due to lack of appropriate resources swot means S-strength W-weaknesses O- Opportunities T-threats Strength(S) these are the social occasions which I observed, Pizza Hut and their staff do and which is the strength for themThey are well bangn for their pizzas 26. They provide good quality, taste and quick service 27. Their good ser vice grooming, cleanliness, and good interaction with the customers make customers want to visit them again 28. Due to their good taste and grooming, the other domestic pizza outlets try to compete and learn from Pizza Hut 29. Reputed brand, market excepted very easily, Due to the above, Pizza Hut makes good profit30.Pizza Hut has the ability to provide its customers with deals, offers and specials so that they can save funds and get more value. This is a strength for the establishment as it makes customers purchase more while receiving more value for their money. Customers use these vouchers and specials when ordering in bulk or for everyday orders. Weaknesses (W) these are the things which I observed and Pizza Hut does poorly and in which they can be assumeed are During the weekends, Pizza Hut is full of customers, during that time the service is poor 31. on that point is little to no place for the people to sit who are postponement to be seated32.Availability of other multi national outlets like Mac Donald and dominos will be the competitors of Pizza Hut too. 33 Opportunities (O) the directions which the business could take in future like By opening a new outlet there will be an opportunity for growth of the business and development for employees34. If a person was previously employed by Pizza Hut and has passed the Pizza Hut origin with the appropriate certificate, then they are able to receive double their salary35. Pizza Hut is a brand and a multi-national chain, therefrom it allows staff salaries to be double that which is offered to other staff in other companys36.Threats (T) the threats to a business arise from the bodily process of the competitors and failing to take opportunities like Pizza youth hostel is the domestic pizza outlet in Baroda both of them are doing very good profit-wise therefore Pizza Inn is a threat for Pizza Hut37. Pizza Inn is a well-known organization to the Baroda community as it also provides good quality and taste a nd this is a threat to Pizza Hut as this is one of Pizza Huts strengths. 25. business studies book by Dave hall pg 38 26. http//www. tutor2u. net/business/strategy/SWOT_analysis. htm 27. (Manager of Pizza Hut). Personal interview 28. (Manager of Pizza Hut).Personal interview 29. (Manager of Pizza Hut). Personal interview 30. (Manager of Pizza Hut). Personal interview 31. (Manager of Pizza Hut). Personal interview 32. (Manager of Pizza Hut). Personal interview 33. (Manager of Pizza Hut). Personal interview 34. interview taken while doing market research 35. (Manager of Pizza Hut). Personal interview 36. (Manager of Pizza Hut). Personal interview 37. (Manager of Pizza Hut). Personal interview 38. (Manager of Pizza Hut). Personal interview THE ANSOFFS MATRIX The ansoff matrix The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy38.Ansoffs matrix will allow the firm to consider the alternatives open to it for entering a new market or e ntering new product into the market39. Product be sensitive Existing Market penetration Product development New Market development diversification Market Market penetration market penetration is used to achieve the growth in the alive market with the existing product40. Market penetration uses the marketing mix to push the product which is gaining as much as market share and as pronto as possible41. Market penetration seeks to achieve four main objectives join on usage by existing customers, maintain or increase the market share of current products42. Pizza Hut is the branded outlet so that people use the substitute outlet less (Pizza Inn, u s pizza, Uncle Sams Pizza, and dominos). Pizza Hut encourages customers to use their outlet more regularly by providing new taste to the customers43. Product development this is relate with marketing new or modified products in the market for the customers 44 like Normal pizzas intend to act as a heterotaxy for the new product which will be introduced45.Market development this involves the marketing of the existing product in the new market such as As Pizza Hut has one outlet already in the market, they will open a new outlet in Baroda but in a different area. They will introduce some new products when they open their new outlet. However, they will need to continue the marketing of their old and classic products along with the new products46. Diversification this will occur when the product is developed for the new market.Diversification allows a business to move external from the trust upon the present market and product47. 38http//www. tutor2u. net/business/strategy/ansoff_matrix.htm 39oxford airfield course book by jo toy pg 32 39. http//www. tutor2u. net/business/strategy/ansoff_matrix. htm 40. business studies book by Dave hall pg 239 41. oxford study course book by jo toy pg 32 42. http//www. tutor2u. net/business/strategy/ansoff_matrix. htm 43. (Manager of Pizza Hut).Personal interview 44. (Manager of Pizza Hut). Personal interview 45. Manager of Pizza Hut). Personal interview 46. business studies book by Dave hall pg 239 PEST G ANALYSIS Pest g this will bet at the external environment and the global computes that may or will affect a business. It can provide a quick and optic representation.It is usually divided into five external influences on a business-political, economic, social, and technological and green46. Political this is concerned with how political developments, regionally, nationally and internationally ability affect a businesss strategy47. Political development is not so relevant in this instance as Pizza Hut has an existing established branch which is not affected by this external factor, the political issues are not so important because they do have the outlet in India and Baroda. For opening the new outlet government factors are not important as it already has opened one outlet48.Economic this might include the analysis of a concoction of economic factors and their effect on business they include consumer activity, economic variable, government policy, the effect of change in product and labor markets49. Pizza Huts outlet which is Baroda, Gujarat has competitors in Baroda, Gujarat50 however, these are not Pizza Hut branches they are other competitors such as Dominos and Pizza Inn. These have an economic external influence as it affects the consumer activity as customers may prefer to go to Dominos if there is better service, quality and price offered.The new place suggested manger market research, there mainly the people with their families and above 30 will visit. It is not that the youths wont visit but there are less youths in that area compare to the area where the current Pizza Hut is located. Social how is Pizza Hut affected socially? It is not likely that Pizza Hut will be affected socially as each age group visits Pizza Hut51. Due to the location of the old Pizza Hut site (located near commercial places) it attracts a lot variety of consumers. The new site will be located in a suburb where there are families therefore the market will be families.When a unanimous family eats a meal at Pizza Hut, they tend to splurge on extras such as drinks and sides. This is positive for the organization in legal injury of profit. However, in Karelibaug, families wont come daily or once a week to have pizzas so it can be affected socially. Generally in the new outlet older segment people will visite. Technological Businesses operate in a world of rapid technological change. The organization call for to regularly review the impact of new technologies upon their activities. The product can become old-fashioned quickly. The occupation method can become out of date52.Pizza Hut looks that how they are different from other firms such as Pizza Inn, Dominos pizza, us pizza and many other domestic outlets for pizzas. Even Mac Donalds is a competitor. One technological factor which could effect the environment is how Pizz a Hut creates its products such as the production line in which a pizza is made. 47. business studies book by Dave hall pg 38 48. business studies book by Dave hall pg 38 49. (Manager of Pizza Hut). Personal interview 50. business studies book by Dave hall pg 38 51. (Manager of Pizza Hut). Personal interview 52. (Manager of Pizza Hut). Personal interview.53. business studies book by Dave hall pg 38 COST ANALYSIS Cost analysis is soon a some what controversial set of methods in class of military rank one reason for the controversy is that these terms cover a wide range of method, but are lots used interchangeably. There are two types of appeal associated with hiring new place. They are better cost and variable cost. Both these cot will be identified to check the financial growth of the undergoing new outlet. Both are classified as below Fixed cost Hiring charges foeman the new place Salary of the staff Minimum hiring charges of telephone.Variable cost turnout cost Office usag e Approximately amount of profit for the new outlet May by through which you will be able to fine out pbit (profit before interest and tax), pbt (profit before tax), pat (profit after tax). Per month Per annum Sales 1350 16200 - variable 60 720 portion 1290 15480 - fixed cost 45 540 PBIT 1245 14940 - interest 78 940 PBT 1167 14000 - tax 350 4200 PAT 817 9800 55 From the above assumption we can conclude that profit on pbit is approximately equals to 65. 60% 1260 720 100 ? = 57. 14 This is the variable cost 1260 540 100 ? = 42. 58 And this is the fixed cost. Variable cost of new outlet is higher than its fixed cost about 14. 12. Contribution of new outlet is about 96% which can be calculated by following formula Sales contribution 16200 15480 100 ? = 96 56 Variable cost depends upon number of units of new outlet but the fixed cost is fixed. Cost may also be defined in different class For example production cost office cost selling and distribution cost W e can include raw material cost for the pizzas and service cost for the pizzas.In production cost all the administration expense and legal and professional charges in office expense. We can bifurcate the pane of the delivery man and advertisement expenses as selling and distribution charges. marketing and distribution charges can depend on number of unit exchange and cost up till cost of goods sold always depends on goods sold57. 55. (Manager of Pizza Hut). Personal interview 56. (Manager of Pizza Hut). Personal interview 57. (Manager of Pizza Hut). Personal interview INVESTMENT APPRAISAL Investment appraisal is the evaluation of an investment project to determine whether or not it is likely to be worthwhile.It is essential to appraise the investment Pizza Hut will pioneer and to establish weather it is going to be beneficial. Below are the techniques, which will assist appraising the investment Pay back period and make present value Pay back period This technique assesses th e number of days it will take foe the Pizza Hut to rectify all their initial costs. This is a very simple tool as it ignores most of the costs the firm would incur due to opening a new outlet. The gold accrue is also an approximate estimate when there are too many variable then Pizza Hut cannot control.They assume that they have more customers and 10% more profit throughout the year than what they had the previous year. There were a few assumptions made for the cash flow. These were that the machine they used to make pizzas worked at 100% capacity and all products were sold. Pay back period for the new outlet Year Net cash flow 0 -10,00,000 1 2,00,000 2 6,00,000 3 3,00,000 3,00,000 12 months 2,00,000 ? = 8 months You can get 2,00,000 in 8 months so our net present back period for investing RS 10,00,000 in new outlet is 2 years and 8 months. Analysis of pay back period.The pay back technique has shown us that it takes 2 years and 8 months to pay back for the new outlet. However, we learn form the market research and swot analysis that there are mainly people above 35 hence it would be smarter from them to do some thing which might attract the youth from other areas and influence them to visit that outlet too. Net present value Net present value incorporates the pattern of time value of money by converting payments at different times to the equivalent values at the common reference time. The discount factor used is 4% as the interest they could have got from the bank currently is 4%.I then did NVP. Year Net cash flow Discount factor 4$ Present value 0 -10,00,000 1 10,00,000 1 2,00,000 0. 9615 1,92,300 2 6,00,000 0. 9246 5,54,760 3 3,00,000 0. 8890 2,66,700 Analysis of net present value The new outlet will generate ____ amount after 5 years. ORGANIZATIONAL CHANGES To effectively deal with the increase in the growth by expansion, it is prerequisite for there to be some internal changes. It is very necessary that the staffs grooming should be d one properly, so that they can serve the customers in a professional manner.When they open their second outlet from a single, Pizza Hut will have to keep some one on whom they can trust and can rely on and they have to slipperiness a few staff from the present one to the opening one. As they opening a new outlet, they are number from one into two outlets. Due to this the gravel of many of the staffs have been will be changed. This change does not affect their work, they have an effective communication channels among the employees. This could be in the form of handsome the staff a proper atmosphere in which they can fall off easily, the changes in the outlet and the goals that the Pizza Hut wants to attain.RECOMMENDATION Starting up the new outlet, initially it will not give them that much profit but it will definitely give some. For this 1. Pizza Hut should shift few of their staff and of course one of the leader to supervise from the existing outlet to the one which will open in the near future. 2. They should charge up few new staff for the existing outlet and also foe the futures outlet so that the one who are new in the new outlet can get t know more from their seniors who are shifted from the existing business. 3. For marketing about their new outlet they should restructure they method in which the do the marketing.4. The market research was done on few people in Baroda, Gujarat, and not in the whole of Baroda. So the extensive market research needs to be conducted across the whole Baroda, Gujarat to get the proper kind of information about the location. CONCULSION The breed shows that Pizza Hut should pen the new outlet in Baroda, Gujarat, India. If Pizza Hut increases their staff, then it would be in a better position to serve the customers and if they shift few of their trained staff and give planning to the new staff to whom they are going to appoint then they would also be in the better position.They should also shift one of the managers to t he new outlet so that in case if any problem occurs then they will be able to handle it. The financial aspects of the undertaking are not the problem for the Pizza Hut as it is in a strong financial stage. But the enlisting of the new staff arctic affects the staffs. The environment and the work portfolio of the staffs will be changed as Pizza Hut will reconstruct the marketing set-up. So before employing the new staff Pizza Hut should let the old staff settle into their working environment.As previously said, the personal interview were only conducted in Gujarat, and the result of this only represented he view of customers from Gujarat. Hence, the further market research needs to be done to get a broader perspective on this study. The indirect costs associated with the undertaking the project will have to ascertain. As previously mentioned, one indirect cost is that a large recruitment could lead to a decrease in the motivation of the existing staffs. new(prenominal) indirect co st could be in the form of the training program for the new recruits to a specialist company, so that it is done efficiently.If the new recruits do their job well, serve the customers in the proper way, follow the training properly, are groomed very well and give the best service then this would motivate the customers to visit them again. Graph showing the frequency of visits to Pizza Hut by college students and teenagers 0 10 20 30 40 50 60 More than once a week Once a week Fortnight Monthly or less time period College students Teenagers graph showing the frequency of visit to Pizza Hut by families and people above 50 0 10 20 30 40 50 More than once a week Once a week Fortnight Monthly or less time period Family Above 50.