SWOT ANALYSIS: INTERNATIONAL BRAND

2012

SWOT Pizza Hut International brand: Pizza Hut Market: Full-service restaurant (FRS) market & Non-frozen Pizza Market Headquarters: America restaurant chain, International franchise

STRENGTHS y Strong universal image that customers easily recognise the red roof brand of pizza hut. y Successful customization Pizza Hut has been successful in customizing its products and services to suit local tastes, such as in Southeast Asia Pasta sold with similarly Asian taste in Indonesia and baked rice in Singapore, Halal offerings in Muslim countries, and all-vegetarian restaurants in India. Ability to fine-tune with local tastes. y Low competition in Eastern parts of the world - pizza markets. y Perceived as an occasional, yet affordable luxury in emerging markets (BRIC) (Euromonitor, 2009). In Asia Pacific where no tradition in pizzamaking, making pizza a niche foreign (yet familiar) novelty. y High penetration of the Western Europe and North America market. y Strong franchisee network

WEAKNESSES y Lack innovation Competitors have effectively used the iPhone app technology along with social media networking to entice younger customers, who are the major users of pizza delivery services (Mintel, 2011). y High competition in the highly saturated pizza markets in the Western part of the world (Mintel, 2011). y Lack on diversification Direct competitor Pizza Express11%MS diversified into chilled pizza market, having saw the shift in consumer demand towards chilled pizza (Mintel, 2011) and claimed the top in the market from Pizza Hut10MS in 2010 (Euromonitor, 2011).

Atiqah Ismail

2012

SWOT ANALYSIS: INTERNATIONAL BRAND

2012

y Limited consumption occasion Pizza Huts international consumers only eat at its FRS for special occasions. y Fixed overhead cost is very high y Internal conflicts among franchisees

OPPORTUNITIES y Pizza is a niche market in Asia Pacific and Latin America Fastgrowing niche (Euromonitor, 2009) y Emerging markets Pizza FSR formats are key in emerging (BRIC) markets. y Pizza as a family dining option in high context culture such as, China and India (Euromonitor, 2009) where communal eating remains very much as the norm consistent with Pizza Huts brand association. y Extremely high demand from Brazil and China Reported to boast strong internal market for pizza and strong culture for FSRs (Euromonitor, 2009). y Opportunity for Mobile Marketing in Asia Pacific and Latin America (Euromonitor, 2011)

THREATS y Socio-demographic changes in the UK, USA and Europe Over 65years old are disengaged (lack of engagement in the market) from pizza consumption. According to Mintel (2011), in the long-term over-65s will be a major driving force in the UK economy, the segment is predicted to increase by 16% between 2011 and 2016. Conversely, a drop in sociodemographic size of pizza markets consumer base. y Consumers are price sensitive UK may experience recession in early 2012 (Guardian, 2011) may impact the pizza market. Western markets for pizza are more price sensitive, as pizza is staple food. y Competition from Dominos Pizzas, Pizza Express and McDonalds (Mintel, 2011). y Decline in pizza FRS format in North America (Euromonitor, 2009) -with pizza HDTA increasing.

Atiqah Ismail

2012

SWOT ANALYSIS: INTERNATIONAL BRAND

2012

y Products are highly imitable moreover pizzas are highly versatile, competitors creativity and imaginative ingredients and service offering can take Pizza Huts customer base Consumers are not loyal; no emotional attachment to the brand.

Marketing Strategies 1. Product development Introducing new products in existing markets Adding value to current product offering by augmenting its service or product offering, especially in the Western Europe and North America where market for pizza has reached its saturation point. Facilitated by the increased use of social media networking

2. Market development Same products in new markets Pizza Hut operation has been focused in mature markets such as in the Western Europe and North America (Euromonitor, 2009). Pizza Hut can try to tap into new underdeveloped pizza markets such as in Brazil and China. Pizza Hut could maintain its casual dining experience from FRS format and family-oriented setting in these markets due to the culture of communal eating in Asia Pacific region Dine-in restaurants.

Note: This is an exclusive analysis. This analysis was intended for the identification of marketing and managerial implications and strategies. However, they are not included in this document.

By: Atiqah Ismail

Atiqah Ismail

2012