5

A PROJECT REPORT ON

Prepared By CHIRAG B. MIYATRA T. Y. B. B. A. (SEM. 5) Roll No. 008 Academic Year :- 2012-2013
Shree Matru Mandir BBA College

College

Saurashtra University Guided By Ass. Prof. Vishal Parmar

Submitted To

DECLARATION

I,

the

undersigned

Mr.Chirag

B.

Miyatra

student of T.Y.B.B.A. Semester-5 hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Prof. Vishal Parmar of Shree Matru Mandir College, Rajkot. This work has not been submitted previously to any other university for examination or any other purpose.

Acknowledgement
At the out-set, I am very much thankful to Pizza Hut, Kalavad Road, Rajkot to give me an opportunity to visit the unit, for the preparation of this report. I also sincerely thankful to: Mr. Mukesh, Restaurant General Manager, Pizza Hut, Rajkot. The other managers & members of Pizza Hut, Rajkot. Mr. R.B. Dhanani, Principal Shree Matru Mandir BBA College. Mr. Vishal Parmar, Ass. Professor, Shree Matru Mandir BBA College. My Parents & Friends Who all have extended their valuable cooperation, guidance, inspiration, assistance & different kind of positive help & support during tenure of my project work, carried out in the month of August 2012. DATE: PLACE: Rajkot (Chirag B. Miyatra)

preface
5

Change is occurring at an accelerating rate. Today is not like yesterday and tomorrow will be different from today. Todays market place is enormously more complex and companies need market vision and know how to succeed in the dynamic environment that surrounds the corporate world today. B.B.A. is one of those professional course which help the student to keep pace with the changing trends in business and its surrounding environment. The practical studies particularly helps the students to know the actual corporate world, the anxieties and stress associated with the job which cannot be understood by sitting in the classroom. As students of B.B.A. we require to do a survey in any unit of national or international repute so as to gain practical knowledge about the prevailing market conditions. For this purpose I have chosen Pizza Hut as Pizza business today is rapidly increasing and is one of the most competitive business. I was fortunate to get an opportunity to work with such a professional unit and study the level of satisfaction provided to pizza lovers by Pizza Hut.

Fast food Business

Fast food has become an icon in American culture, so powerful that the average American consumes 4 servings of fast food every week. Without even thinking of fast food we happily drive up to McDonalds and Pizza Hut and other restaurants and order a Big Mac and fries. It's as easy as brushing your teeth at night. The restaurant business in the United States is one whose importance has grown substantially in the last two decades of the twentieth century. Americans spend a greater and greater share of their money on prepared food eaten outside of the home; by the end of the century, nearly half of Americans consumed at least one meal a day in a restaurant.

LIMITATIONS OF FAST FOOD

Fast food is bad because it is usually high in fat. Many fast foods are fried in fat - even if they are heated up in an oven. Fast food is also high in calories. Indeed, the growth of fast-food outlets is believed to be a prime cause of obesity in the USA. However, no matter how concerned we are about weight and calories, it's difficult to give up fast food entirely. So if you enjoy fast food, have it occasionally

but choose carefully. Choose salads and grilled foods instead of fried foods, and avoid the high-fat, high-calorie toppings, like mayo, ranch dressing and others.

HISTORY & development

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the brothers quickly saw the potential of this new enterprise. After borrowing $600 from their mother, they

purchased some second-hand equipment and rented a small building on a busy intersection in their home- town. The result of their entrepreneurial efforts was the first Pizza

Hut restaurant, and the foundation for what would become the largest and most successful pizza restaurant company in the world. Products of pizza have been voted Number One in countless consumer surveys nationwide. And our accomplishments as an innovative business leader have been cited by such respected publications as Restaurant Business, Fortune and The Wall Street Journal.

Pizza

Hut,

Inc.,

division

of

Tricon

Global

Restaurants, Inc., has more than 7,200 units in the U.S. and 3,000 units in more than 86 other countries. Tricon is the parent company to two other segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make up the world's largest restaurant group, with almost twice as many units as McDonald's. Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made continuing efforts to refine their products, and to develop new products suited to every consumer taste. They are working together to run great restaurants in order to be the best at making and serving the best pizza in America. That means they are willing and able to go to any lengths to make their customer's experience with

Pizza Hut an enjoyable one. And it means they strive to present the finest products the industry has to offer, and to provide those products wherever and whenever people want them. 1958: The first Pizza Hut restaurant opens in Wichita, Kansas, started by two college-aged brothers who borrowed $600 from their mother.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.

1965: "Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial. 1969:

First Pizza Hut restaurant opens in Mexico. Construction begins in Munich, Germany and Australia.

PIZZA HUT IN WORLD

Pizza Hut is the worlds largest pizza restaurant chain operates in more than 86 countries and territories throughout the world under the name Pizza Hut and features a variety of Pizzas with different toppings as well as Pasta, Salads, Sandwiches, and other food items and beverages. There are more than 13,200 outlets or Kiosks of Pizza Hut. It employs more than 2,60,000 people world

wide. It serves more than 1.7 million Pizzas everyday to approximately 4 million customers world wide. Pizza Hut is known with different names throughout the world. For ten of the last twelve years, Pizza Hut was named Best Pizza Chain in America in the "Choice in Chains" national consumer survey published annually by Restaurants & Institutions Magazine. In 1997 Consumer Reports named Pizza Hut the best pizza chain in America and in 2000 and 2003, The Dallas Business Journal named Pizza Hut "The Best Company to Work For" in Dallas/Fort Worth. Restaurants & Institutions' "2001 Choice in Chains" survey called Pizza Hut the number one national pizza chain in America.

PIZZA HUT IN INDIA

Pizza Hut entered into India in 1996. The 1st branch of Pizza Hut was opened in Bangalore. There are 72 outlets of Pizza Hut in India in cities like Delhi, Mumbai, Calcutta, Chennai, Ahmedabad, Surat, Baroda, Bangalore, Agra, Jaipur, Dehradun, Hyderabad, Cochin, and Pune. The higher sales of pizza and other food items of Pizza Hut is in Bangalore, Mumbai and Delhi. (1) (2) (3) (4) North Devyani Pvt. Ltd. West Dodsal Corporation Pvt. Ltd. South Pizzeria East Favourite Foods Pvt. Ltd.

MOST PREFERABLE PIZZA IN INDIA

In all over India, The sales of non-vegetarian food are more than the vegetarian food except in Gujarat. The most

preferred pizzas of Pizza Hut in all over India are as under: -

(1) (2) (3) (4) (5) (6)

Super Supreme Pizza Chicken Tika Pizza Pepperoni Pizza Chatani Pizza Tam Tama Pizzas Tandori Paneer Pizza

PIZZA HUT IN GUJARAT

As Gujarati People are vegetarian & they dont prefer non-vegetarian food & sometimes avoid to go at those restaurants also where both the types of food are available together, Pizza Hut has focused on this point & opened pure vegetarian restaurant in Gujarat.

There are 4 outlets of Pizza Hut in Gujarat, i.e. 2 outlets in Ahmedabad, 1 outlet in Baroda and 1 outlet in Surat. out of this 4 outlets, 2 outlets are pure vegetarian. In Gujarat, 1st Pizza Hut was opened on July 14, 1999 in Ahmedabad. History was created that day, as it was the first pure vegetarian Pizza Hut in the World. After that two more pure vegetarian Pizza Hut were opened, one in Surat & second in Mumbai (Chowapati).

MOST PREFERABLE PIZZA IN GUJARAT

In Gujarat, majority of the people prefer only

vegetarian food and as a result 1st pure vegetarian Pizza

Hut was opened in Ahmedabad. So, in all over Gujarat, Pizzas mostly preferred by customers are as under:

(1) (2) (3) (4)

Tandoori Pizza Super Veggie Pizza Spicy Indian Pizza Simply Veg. Pizza

INTRODUCTION OF Dodsal CORPORATION PVT. LTD.

The management of all the Pizza Huts in West Zone is done by Dodsal Corporation Pvt. Ltd. The Dodsal group is a 52 year old reputed engineering and construction enterprise employing more than 1000 engineers / managers and 10,000 contractual employees. The group has to its credit several onshore and offshore cross-country pipelines; hotels, power plants, refinery and fertilizer related businesses. The group has offices in Mumbai, New Delhi,

Bangalore, Kolkata and Chennai. A significant portion of the groups business is spread overseas and it has offices in the Middle East. For the period ended March 2001, the turnover of Dodsal Ltd. including its overseas operation

was over Rs. 700 crores. The Group is professionally managed and owned by the Kilachand family of Mumbai. Dodsal Group believes in the highest level of

professional excellence and employs people with diverse backgrounds so as to create a professional work culture, which thrives on corporate excellence and maximizes returns for all its stakeholders. It enjoys very high confidence of all its customers and takes pride in maintaining its high level of integrity & business ethics. DCPL was established on 1 January, 1999. They began our foray in the field of restaurant business by securing the franchise of Pizza Hut and KFC in Bangalore on 1 March, 1999.

Few months later on 14 July, 1999 they started another restaurant in Ahmedabad. (History was created that day, as it was the first pure vegetarian Pizza Hut in the world.) Their new store restaurant in Banjara Hills, Hyderabad, which started on 22 October, 2000 is already getting rave reviews.

COMPANY PROFILE
5

 Name Location
Corporation Pvt. Ltd. Pizza Hut,

Pizza Hut

Dodsal

Abhijay 8, Adarsh Society, Kalavad Road, Navrangpura, Ahmedabad 380 009.

Telephone No.
656 9734

(079) 656 6730,

Fax
9726

(079) 656

E-mail
dodindphabad@satyam.net.in

Website
www.pizzahut.com www.pizzahut .co.in www.triconres taurants.com

 Head office
Mumbai

Goregaoun,

No. of outlets in India

& Carry Out)

3 Delcos (Delivery 9 RBD

(Restaurant based delivery)

Products
Cold drinks, Salad

Pizza, Garlic Bread,

Unit Manager

Mr. Deepto Ray

Assistant Manager Two Shift Managers

Mr. Ajay Saigal

Mr. Rajesh Singh

Mr. Vishwanath,

HR Manager Finance Manager

Pakle

Mr. Mukesh

Ms. Vandana

Marketing Manager
Swaroop

Mr. Raghuvesh

 Bankers
Muscat (Loans)

Bank of Global Trust Bank

(Salaries)

Auditors Account Contractors

Pamani

R.H.S. & Co.

Patel, Bhatt &

Form of Organization Accounting Year

March

Private Company

1st April 31st

Investment

4.5 crores

Installed Production Capacity 10,000 pizza/day

No. of customers accomodable at a time 148 carry out customers

No. of Employees
20

Part timers Full timers 16

 Holidays
Once a week Restaurant holidays

Employees

No

Peak & Off Season

August February

Peak

Off Season

March July

Timing
11:00 AM

12:00 noon to

Delivery charges
Basis for recruiting employees

Free

Smallest questions Team

test

of

70

known as Readiness

Members

Inventory (TMRI)

RAW MATERIAL MANAGEMENT

In Pizza Hut, for preparing food, raw-material such as flour, cheese, dobines, vegetables & other materials are required in Pizza Hut, Cheese used:

Cheese: - In Pizza Hut, before 2 years, cheese was

coming from another country but now the company has set-up its own plant in India in Pune for making special cheese i.e. required for Pizza.

Flour: - In Pizza Hut, flour required for making loaf

of pizza comes from Cyprus.

Dobines: - Dobines is the another important rawmaterial of pizza & other food which comes from spare.

Other materials like vegetables & other materials i.e.

required for pizza, sandwich, salads, and pasta are purchased from the domestic market. All the raw-materials required for making food in Pizza Hut will be 1st of all gathered at Yum Brands head office which is situated in Delhi & from there all the raw material will be distributed to different franchises of different zone & from these franchise, all the raw-materials will be distributed in all the outlets of Pizza Hut in

different cities. In Pizza Hut, SCM chain, i.e. supply chain management if followed.

FOOD AVAILABLE FOR PIZZA HUT

WORLD FAMOUS PIZZA OF PIZZA HURT

AWARDS & ACHIEVEMENTS

Recognition of efforts always acts as a source of motivation and the best way of recognition of efforts is through awards & prizes of both national and international repute.

In 1988, President Ronald Reagon awarded the Private Citation to Pizza Hut President Art Gunter for the creation of BOOK IT! Program.

Pizza Hut won the 1995 Choice of Chains award for Best Pizza Chain sponsored annually by Restaurants & Institutions magazine, making Pizza Hut the Best Pizza Chain ten of the last eleven years.

ASSETS OF PIZZA HUT

Only EMPLOYEES OF PIZZA can translate their vision into reality. Pizza Huts employees are the most important ingredient in their all recipes. Our restaurants have people working as:

Full timers:
It is the Full Timers who help them in what they want to be the Market Leader. They are trained personnel who are very precious to us. They help as buddy trainers to train the new people. Needless to say, their lifeline.

Part timers:
The Part Timers help them to keep alive their young image. Most of them are college students who take up this to self-finance their studies or for pocket money. They are a young enthusiastic lot. It is a win situation for the company as well as the students.

Management crew
Position: Shift Manager
Position Summary Shift Managers help to manage the daily operations of the restaurants including customer service, employee development and food production.

Position: Restaurant General

Manager/Asst.

Position Summary: Restaurant General Managers

are responsible for all functions of the restaurants. Among other things, they recruit, screen, hire, train, and develop employees; do sales forecasting and manpower planning; conduct risk/safety inspections; manage inventory and facility; order products; conduct P&L analysis; schedule crew members; and manage revenue periods.

Core Responsibilities

Manage the restaurant team. Control Profit & loss by following cash control/security procedures, maintaining inventory, managing labor, reviewing financial reports and taking appropriate action.

Recruit, interview and hire team members; conduct performance appraisals, motivate and train. Ensure maintenance of equipment, facility and grounds. Ensure food quality and 100% customer satisfaction.

Position: Area Manager

Position Summary: Area Managers are responsible for 5-7 units within a specified region. Among other things, they coach the restaurant management team, ensure unit annual operating plans are established and met or exceeded, build sales, achieve margin targets, ensure customer satisfaction.

Core Responsibilities

work with restaurant general manager to develop unit specific annual operating plane. Analyze market place P&L, inventory & controllable to meet/achieve margin and sales growth targets. Coach and mentor subordinates. Drive customer focused culture. Develop and update market HR plans.

5 service principles of pizza hut

There are 5 Service Principles of Pizza Hut 1. Employees are our secret ingredients 2. Show you C.A.R.E. 3. Say Yes to customers 4. Satisfy, capable teams create satisfied

customers 5. Satisfied customers create profit & growth.

Company Rules & regulation

Any violation of following rules by employees will be considered by the company as act of misconduct and will be dealt with accordingly. Reporting to work in a state of intoxication or under influence of narcotics. Violating any safety rules or practices. Gambling or betting within company premises at any time. Sleeping while on duty. Quarreling or use of vulgar or abusive language. Willingful, disobedience of any instruction from superior. Posing, altering, removing or defacing any matter from the notice board or Company premises. Bending, soliciting or collecting contributions for any purpose whatsoever at any time in the Company

premises,

except

when

authorized

by

the

Management. Deliberately working slowly, suspending work and / or restricting output whilst on duty without justified cause. Provoking, insulting instigating or getting involved in a fight inside the company premises. Utilizing any working equipment for the purposes other than they intended for. Engaging in any political activities.

Employee behaviour norms

OBJECTIVE Guidelines for employee behavior in order for organization and its employee to grow while being customer focused & profit driven. O.L.I.P. Openness Loyalty Integrity

Pro-activity

OPENNESS

First Name to be used as a form of address Accessibility The highest levels of the organization to be accessible to every employee Diversity of opinions to be valued Diversity in cultures to be respected Information to be shared actively with all employees to promote sense of belonging

LOYALITY

Commitment o To the organization o Critique of organization to be objective & restricted to appropriate internal forums

Confidentiality o Respect your access to information Colleagues o Speak of colleagues in their absence as you would as if they were present

INTEGRITY

Commitment o To meet ones commitment o Under promise & over delivery PROACTIVITY

Mindset o Plan & think ahead o Be a part of the solution

o Strive to achieve inspite of our environment

Marketing Yesterday & today

 Relationship marketing from focusing on transactions to building long-term profitable customer relationships. Customer lifetime value from making a profit on each sale to making profits by managing customer lifetime value. Target marketing from selling to everyone to trying to be the best firm serving well designed target markets.

Marketing mix

Product

Price Positioning

Pace

Marketing Mix

Place

Packaging

Promotion

Product Portfolio Mngt.

. (1) Product: Product is a key element in the market offering. A product is anything that can be offered to a market to satisfy a want or need. Pizza Hut provide a variety of pizzas to its customers. The Pizza Hut outlets in Ahmedabad and Surat are the only 100% pure vegetarian outlets in the whole world. The pizzas are flexible to the taste and preferences of the customers. They can be divided into three categories: i. ii. iii. Personal Pan Pizza which serves one person. Medium Pizza which serves two person. Family Pizza which serves four people.

Customers can choose from two types of crust Pan Pizza or the Italian.

No root based ingredients are used the sauce and other garnishing do not contain onion and garlic in case of Jain specialties. Besides the wide variety of choices in pizzas, the customers also get a very good choice in soups, appetizers, pastas, salad, beverages and desserts. (2) Prices: Price is that marketing mix element which produces revenue. It is one of the most flexible elements as it can be changed quickly.

The prices of Pizza Hut are comparatively high. They attribute the high prices of their products to maintenance of quality food. They have tried to draw in more crowds by reducing the minimum price of their product from Rs. 95 to Rs. 65.

(3) Promotion: Promotion includes all the activities that the company undertakes to communicate and promote its products to the target market. It is persuasive communication to inform potential customers of the existence of products, to persuade and convince them that those products have want satisfying capabilities. Promotional efforts of a

company act as powerful tools of competition providing the cutting edge of its entire marketing program. It includes advertising, publicity, personal selling and sales promotion.

(4) Place: Place includes the various activities that the company undertakes to make the product accessible and available to target customers. Pizza Hut is franchised globally. It is a milestone in itself that it has been recognized and accepted round the world. There are Pizza Hut outlets in all the prominent cities in India.

(6) Packaging: Packaging includes the activities of designing and producing the container for a product. Packaging has become a potent marketing tool. Well designed packages create convenience and promotional value. In Pizza Hut, mostly the pizzas are served instantly. Hence, they dont need to be packed. But incase of home deliveries, they are packed in boxes with aluminum foils which are then placed in special bags that maintain the temperature inside, prevents the food from getting cold and eliminates generation of bacteria in them. Then they are carried in specially modified scooters which have a

container that can accommodate 20 pizza boxes ready to be delivered at the time.

Competitors
INTERNATIONAL COMPETITORS OF PIZZA HUT Burger King Smoking Joes KFC Dominos U.S. Pizza Mc. Donalds

 HUT

NATIONAL

COMPETITORS

OF

PIZZA

Dominos U.S. Pizza Smoking Joes Mc. Donalds

ADVERTISEMENT
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertisements are a cost effective way to disseminate messages, whether to build brand preference or to educate people or trigger quick sales. Advertising can efficiently reach geographically dispersed buyers. The advertising objectives must flow from prior decisions on target market, market positioning, and

marketing mix. The main objectives of all promotional efforts of Pizza Hut, inclusive of advertising are to create a strong brand image in the minds of consumers that cannot be claimed by competitors. Most companies use an outside agency to help create advertising campaigns and to select and purchase media. Yum Brands International takes care of all the marketing activities of Pizza Hut franchisees in India. It means that from the designing of advertisement to presentation of advertisement in front of people. Everything is managed by Yum Brands International. Television Hoardings Selected newspapers Leaflets Kiosks

MARKETING RESEARCH PROCESS

Effective marketing research involves the following steps: Problem / opportunity identification

Creation of the Research design Choice of Method of Research Selection of the Sampling procedure Collection of the data Analysis of the data Writing & Presenting the report Follow-up

(1) PROBLEM IDENTIFICATION In this stage the problem is first identified for which research is to be carried out. In order to avoid waste in time and money, it is necessary to define the marketing problem in specific terms. An early step in the process is a situation analysis or a survey of available data regarding the company. Through this we can arrive at a hypothesis or presumption and a refinement of the problem definition. A problem should

neither be defined too broadly nor too narrowly. A plan may be prepared for each problem and a master plan can combine all the plans. The 2surveys had been undertaken in order to answer some questions like: 1. 2. To know food habits of Rajkot people. It means that which kind of food people prefer. Which Pizza and Dominos in term of quality, price, services, infrastructure, etc. What is the level of satisfaction provided by Pizza Hut to its customers in comparison to their expectations?

3.

4.

How often do customers visit Pizza Hut and what is the best thing about Pizza Hut according to them.

5.

How much people can afford per head food bill & what are the important factors for them to visit any restaurant.

(2) RESEARCH DESIGN The second stage of marketing research calls for developing the most efficient plan for gathering the needed information. Designing a research plan calls for decision on the data sources, research approaches, research instruments, sampling plan and contact methods.

 DATA SOURCES: Information can be collected through secondary data, primary data or both. Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data gathered for a specific purpose or for a specific research project. (3) CHOICE OF METHOD OF RESEARCH Marketing researchers have a choice of two main research instruments in collection primary data. They are

Questionnaires

Mechanical Devise

A Questionnaire consist of a set of questions

presented to respondents for their answers,

Mechanical Devices like galvanometers tachistoscope,

audiometer, etc. are occasionally used in marketing research.

(4) SELECTION OF THE PROCEDURE After deciding on the research approach and instruments. Marketing researcher must design a sampling plan this plan calls for three decisions. They are

Sampling units

Sample Size

Sample Procedure

(5) COLLECTION OF INFORMATION The data collection phase of marketing research is generally the most expensive and the most prone to error. In the case of surveys four major problems arise. Some respondents will not be at home and must be re-contacted to replace. Other respondents will refuse to co-operate. Still others will give biased on dishonest answers. Finally some interviewers will be biased and dishonest. (6) ANALYZE THE INFORMATION The next to last step in the marketing research process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distribution. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings. (7) PRESENTING THE REPORT As the last step, the researcher presents the findings to the relevant parties. The researcher should present major findings that are relevant to the major marketing decisions facing management.

ANALYSIS OF DATA
5

The

data

now

collected

requires

analysis

and

interpretation. In order to facilitate interpretation, the tabulated data has to be framed in the best form of statistical summarization whether in percentage or average and so on. The statistical conclusion must then be converted into recommendations on marketing polices which tends to prove very useful for the company.

The

relationship

between

the

facts

and

the

recommendations must be real. A purely theoretical interpretation may be modified by practical considerations, such as the condition of the company and the market and the probable opposition of executives. If possible, recommendations can and should be interpreted into concrete gains which would follow the proposed course of action.

The method used by me is conversion of tabulated data into percentage form to facilitate easy interpretation.

SURVEY BETWEEN MALE AND FEMALE

Sr. 1. 2. Particula rs Male Female Total No. of Respondents 46 54 100

Opinion of People
54

55 50 45 40 Male 46

Male Female Female

Interpretation
I have conducted survey of 100 persons, out of them 54 are females and 46 are males.

ANALYSIS OF DIFFERENCE AGE GROUPS

Sr. 1. 2. 3. 4. Age Group 10-18 18-25 25-35 35 & above Total No. of Respondents 25 25 25 25 100

Age Group

25%

25%

Oct-18 18-25 25-35

25%

25%

35 & above

Interpretation
I have conducted survey of 25 people in each age group.

SURVEY PEOPLE

ON

DIFFERENT

PROFESSIONAL

Sr. 1. 2. 3. 4. 5. 6. 7. 8.

Profession Student House Wife Self Employed Government Service Private Service Industrialist Professionals Others Total

No. of Respondents 38 13 14 17 6 5 5 2 100

Profession
5% 6% 17% 14% 13% 5% 2% 38%

Student House Wife Self Employed Government Service Private Service Industrialist Professionals Others

Interpretation
In my survey of 100 people, there is majority of students.

Food Preference
4%

Gujarati Fast Food Punjabi

14% 9% 11%

13% 18%

Chinese Continental Thai Food South Indian Others

14%

17%

Interpretation From the above chart, I can conclude that Rajkot people like Punjabi food and fast food the most and after that South Indian, Chinese, Gujarati, Continental, Thai Food and other food like Mexican and Italian food, etc.

PROPORTION VEGETARIAN

OF

VEGETARIAN

&

NON

Sr. 1. 2. 3.

Restaurant Vegetarian Non Vegetarian Combined Total

No. of Respondents 79 6 15 100

Restaurant Type
80 60 40 20 0 Vegetarian 6 15 Combined Vegetarian Non Vegetarian Combined 79

Interpretation
As people of Rajkot are pure vegetarian, they definitely prefer only vegetarian restaurant.

TEST ANALYSISS
Sr. 1. 2. 3. 4. Taste Spicy Sweet Sweet n Sour Others Total No. of Respondents 59 14 21 6 100

Taste

21%

6%

Spicy Sweet Sweet n Sour Others

14%

59%

Interpretation
From the above chart, we can see that most of the people of all the age group prefer more spicy taste.

Q.12

The average food bill, you can afford

per head.

Sr. 1. 2. 3. 4.

Average Bill 25 50 50 100 100 200 200 & More Total

No. of Respondents 10 53 32 5 100

Average Bill per head

5% 32%

10%

25 50 50 100 100 200 53% 200 & More

Interpretation From the above chart, we can see that as most of the people are from middle class, they can afford Rs. 50 to Rs. 100 per head food bill. There are very less people who can afford per head food bill more than Rs. 100.

MOST PREFERABLE BRANDS

Brand Names

16%

27%

Pizza Hut Mc Donalds Dominos

23% 34%

US Pizza

Interpretation
From the above chart, we can say that in the mind of Rajkot people, both Mc Donalds and Pizza Hut are having equal position as a international branded restaurant. Still on the first rank they prefer Mc Donalds and on the second rank comes Pizza Hut . For them local branded restaurants, such as Big Bite, Shiva, Lords Banquette, Temptation, etc. are also important, but on the last rank, when the point is of international branded restaurant.

RESPOND OF PEOPLE
Sr. 1. 2. Particula rs Male Female Total No. of Respondents 24 26 50

No. of Respondents 26

26 25 24 23 24

Male Female

Male

Female

Interpretation
I have conducted the survey of 50 customers of Ahmedabad City who have visited Pizza Hut there.

SUGGETION FROM MY SIDE

Arrange live music band in your outlet. Open game zone or Parlor. MP3 with Ear Phone. Provide different zone for children. Introduce Pop Corn varieties. They should advertise their other products through media, other than Pizza, which people get there at Pizza Hut . There is need to improve the taste to suit the customers choice. Provide different schemes like o Membership periodically. o Discount Coupon for week days. o Festival Offers They should do event management. They should sponsor shows, serials, etc. to make their brand more popular. Coupon for life time and

SWOT ANALYSIS
S W O T Strengths Weakness Opportunities Threat

The SWOT analysis of Pizza Hut is as follows:

STRENGTH
Best Quality of Food Quality of Services Varieties of Pizzas Varieties in Toppings Different Promotional Schemes Consistency Strong Brand Name Good Support from Restaurant Support Center

WEEKNESS
High Price : Most of the people think that the rate of Pizza and other food

 Advertising : All the advertisements of Pizza Hut are related to pizza. They never show the advertisement of other foods like Salad, Sandwich etc. Which people can get at Pizza Hut except pizza. Moreover they should advertise that celebrate your birthday and other functions at Pizza Hut with your Friends and Family members as Pizza Hut is doing the arrangement of Birthday and other functions at Pizza Hut.

OPPORTUNITY
Open more outlets : At presently only 72 Branches of Pizza Hut existed in India. So there are number of cities in India for Opening new and new outlets in different cities. Health Conscious People : Nowadays people are becoming more and more health conscious and calorie conscious and they dont want Fatty food. So Pizza Hut should make them target market and offer them Diet food and Low Calorie food as up till now nobody or no restaurants have taken steps to attracts this health conscious people.

THREATS
Competition

 Continuous changes in taste and Preferences of Customers

Working capital
1) Raw Materials: No. 1. 2. 3. 4. 5. 6. 7. Name Quantit y 1700 lts. (Per month) Rate Amt. (Rs.) 70/lts. 1,19,000 1,20,000 1,05,000 22,000 400 17,100 30,000 4,13,500

Oil Soluble Pure D.C.O. stand Oil Mineral Turpentine oil Butyl Alcohol Silicone Resin Driers Packaging Material Total

3000 40/lts. lts. 7000 15/lts. lts. 550 40/kgs. kgs. 80 kgs. 5/kgs. 190 90/kgs. kgs. -

2) Salary and Wages:

(Per month)

No. Typeworkers of Staff No. 5. Skilled 2of Persons (100% Variable) 6. Unskilled workers 4 1. (100% Manager 2 Variable) 2. Watch Manager-cum1 7. man 1 chemist . Sales Executives 5 3. Clerk 1 Total 4. Peon 3

5,000 Rate 4,000 7,000 8,000 1,000 3,000 3,000 1,000

10,000 Amt.(Rs.) 16,000 14,000 8,000 1,000 15,000 3,000 67,000 3,000

3) Utilities: (Per month) No. 1. 2. 3. Total Fixed 40% Variable 60% Particulars Amt. (Rs.) 12,000 7,000 1,000 20,000 8,000 12,000

Power/Electricity Fuel (coal/wood) Water

4) Other Expenses: No. 1. 2. 3. 4. 5. Particulars Postage and Telegram Telephone Rent Advertisement Repairs and Maintenance 5 (Per month) Amt. (Rs.) 1,000 2,000 5,000 12,000 10,500

6. 7. 8. 9. 10.

Transport charges Insurance Miscellaneous exp. Contingency exp. Stationery exp. Total Total Working Capital Per Month

8,000 8,000 3,000 7,000 6,000 62,500

No. 1. 2. 3. 4.

Particulars Raw Materials Salary and Wages Utilities Other expenses

Amt. (Rs.) 4,13,500 67,000 12,000 37,500 5,30,000

Total Working Capital

Total Working Capital for 3 Months and 1 Year 1 Month 5,30,000 3 Months 15,90,000

1 Year 63,60,000

Total projected fund

No. 1. 2. Total

Particulars Fixed Capital Working Capital (3 months)

Amt. (Rs.) 54,00,000 15,90,000 69,90,000

SOURCES OF CAPITAL
5

Capital Required

69,90,000 = =

60% Owned Capital 41,94,000 40% Borrowed Capital 27,96,000 1) Owned Capital: Partners Name Punit Patel Ashok Patel Total Investment 13,98,000 13,98,000 41,94,000 Rate 8% 8% -

Interest 1,11,840 1,11,840 3,35,520

2) Borrowed Capital: Banks

BANK OF MUSCAT

Capital Borrowed 22,60,000 5,36,000 27,96,000

Rate 13% 15% -

Interest Amt. 2,93,800 80,400 3,74,200

ICICI Total

3) Loan Repayment Schedule: 5

a) Loan of GSFC to be repaid within 5 years: Opening Installme Closing Interest Balance nt Balance 22,60,0 00 18,08,0 00 13,56,0 00 9,04,00 0 4,52,00 0 4,52,000 2,93,80 0 4,52,000 2,35,04 0 4,52,000 1,76,28 0 4,52,000 1,17,52 0 4,52,000 58,760 8,81,40 0 18,08,0 00 13,56,0 00 9,04,00 0 4,52,00 0 -

Years 1st Year 2nd Year 3rd Year 4th Year 5th Year Total

b) Loan of ICICI to be paid within 2 years: Openin g Balanc e 5,36,00 0 2,68,00 0 Installme nt 2,68,000 2,68,000 Interes t Closing Balanc e

Years

1st Year 2nd Year Total

80,400 2,68,00 0 40,200 1,20,6 00

FIXED COST
A) Interest of Capital: No. 1) 2) Total Type of Capital Ownership Capital Borrowed Capital (Per Year) Interest Amt. (Rs.) 3,35,520 3,74,200 7,09,720

B) Depreciation: No. 1. 2. 3. 4. Particulars Amt. (Rs.)

(Per Year) Depreciatio Rate n 3,00,000 3,75,000 60,000 30,000

Land & Building Machinery Computer Furniture

30,00,0 10% 00 15,00,0 25% 00 1,00,00 60% 0 2,00,00 15% 0

5.

Delivery Van

5,00,00 40% 0

2,00,000 9,65,000

Total

C) Maintenance and Repairs: No. 1. 2. 3. Total D) Other Fixed Cost: No. 1. 2. 3. Total Particulars Utilities Salary Other expenses (40%) (Per Year) Amt. 96,000 4,92,000 3,00,000 8,88,000 Particulars Building Machinery Other Fixed Assets Value 10,00,0 00 15,00,0 00 8,00,00 0 (Per Year) Rate Amt. 5% 5% 5% 50,000 75,000 40,000 1,65,00 0

Total Fixed Cost No. Particulars 5 Amt.

1. 2. 3. 4.

Interest on Capital Depreciation Repairs and Maintenance Other Fixed Cost

Total Fixed Cost per year

7,09,72 0 9,65,00 0 1,65,00 0 8,88,00 0 27,27,7 20

COST OF PRODUCTION

No. 1) 2) Total

Type of Capital Total Fixed Cost Working Capital (1 year)

Interest Amt. (Rs.) 27,27,72 0 63,60,00 0 90,87,72 0

Cost per unit

Total Cost Per Unit: = = = Annual Cost of Production Annual Production 2994210 37800 79.21

Fixed Cost Per Unit: = = Total Fixed Cost Total Annual Production 1033250 37800

27.33

Variable Cost Per Unit: = = = Total Variable Cost Annual Production 1654000 37800 43.76

Break even analysis

(a)
Selling Price Contribution 85.00 (per unit) (per unit) - Variable Cost 43.76

41.24 (per unit)

(b) BEP in Units: BEP = = = Fixed Cost Contribution Per Unit

1033250 41.24
25054.56

(c) BEP in Rs.: BEP = = = Fixed Cost P/V Ratio 100 1033250 48.25 100 2141450.78 Rs.

(d) P/V Ratio: P/V Ratio = = Contribution Sales 100 1559000 3213000 100 = 48.25%

(e)

BEP in Percentage: (At Utilized Capacity)

BEP = = =

Fixed Cost Utilized Capacity Contribution 1033250 60 1559000 39.77%

Return on investment
EBIT Cost of Project 100 525750 3837000 100 13.70%

ROI

= = =

1 st year
5

Trading a/c
Particulars To Opening Stock To Purchase Particulars - By Sales 1734000 By Closing Stock 24000 Rs. Rs. 3213000 80000

To Repair & Maintenance

To Water Charges To Electricity To Wages to Unskilled Worker To Gross Profit (Transfer to P & L A/c.)

24000 180000 120000 1211000

3293000

3293000

PROFIT & LOSS A/C

Particulars To Salary to : Clerk Supervisor Accountant Salesman Peon Watchman To Pre. Exp. W/F To Ele. & Ins. Exp. W/F
To Depreciation

Rs. Particulars 60000 By Gross Profit 1211000 72000 48000 (Trans. From Trading A/c.) 108000 24000 24000 12000 18000

Rs.

Building P&M

24000

46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Selling Exp. To Postage & Stationary To Tax paid To Legal Fees To Audit Fees To Mis. Exp. To Insurance To Net Profit

145250 60000 18000 76577 36000 18000 18000 24000 449173 1211000 121100 0

PROFIT & LOSS APPROPRIATION A/C

5

Particulars To interest on Capital

Rs.

Rs. Particulars By Net Profit 449173 (Trans. From P & L A/c.)

Punit Patel 153480

Ashok Patel 153480 To Net Divisible Profit 306960

Punit Patel 71106.5

Ashok Patel 71106.5 449173 449173 142213

BALANCE SHEET
Capital Liability To Capital A/C Rs. Property Asset Land Building 240000 - Dep. 24000 3979213 P & M 185000 - Dep. 46250 Computer 30000 - Dep. 12000 Furniture 150000 - Dep. 22500 Delivery van 200000 - Dep. 30000 Other 70000 -Dep. 10500 By Pre. Exp. 80000 - Dep. 12000 By Ele. 90000 & Ins. 68000 Equip. 59500 170000 127500 18000 138750 Rs. 420000

Punit Patel 1989606.5

Ashok Patel 1989606.5

216000

- Dep. 18000 By Closing Stock By Debtors By Bank balance By Cash balance 397921 3

72000 80000 963900 1151894 493669 3979213

2 ND YEAR TRADING A/C

Particulars To Opening Stock To Purchase

To Repair & Maintenanc e

To Wages to Unskilled Labour

Particulars 80000 By Sales 2122648 By Closing Stock 26400

Rs.

Rs. 3969000 88000

132000 26400

To Water Charges To Electricity

To Gross Profit (Trans. to P & L A/c.)

198000 1471552

4057000

4057000

PROFIT & LOSS A/C

Particulars
To Salary to Supervisor Watchman Accountant Salesman Clerk Peon DEPRICIATION Building 24000 P&M 46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Pre. Exp. W/F To Ele. & Ins. Charges W/F To Taxes paid To Selling Expenses To Postage & Stationary To Audit Fees To Mis. Exp. To Insurance To Legal Fees To Net Profit

Rs.

Particulars

Rs.

79200 By Gross Profit 1471552 26400 (Trans. From Trading A/c.) 52800 118800 66000 26400

145250 12000 18000 150760 66000 19800 19800 19800 24000 39600 586942 147155 2

1471552

PROFIT & LOSS APPROPRIATION A/C

Particulars
To interest on Capital

Rs.

Particulars

Rs.

By Net Profit 586942 (Trans. From P & L A/c.)

Punit Patel 153480

Ashok Patel 153480 To Net Divisible Profit Punit Patel 139991 Ashok Patel 139991 279982 306960

58694 2

586942

Balance sheet
Capital Liability To Capital A/C Rs. Property Asset Land Building 216000 - Dep. 24000 4259195 P & M 138750 - Dep. 46250 Computer 18000 - Dep. 12000 Furniture 127500 - Dep. 22500 Delivery van 170000 - Dep. 30000 Other Eqip. 59500 - Dep. 10500 By Pre. Exp. 68000 - Dep. 12000 By Ele. 72000 - Dep. & Ins. 54000 56000 49000 140000 105000 6000 92500 Rs. 420000

Punit Patel 2129597.5

Ashok Patel 2129597.5

192000

18000 By Closing Stock By Debtors By Bank balance By Cash balance 425919 5

88000 1190700 1306196 559799 4259195

3 rd year Trading a/c

Particulars
To Opening Stock To Purchase

Rs.

Particulars

Rs.
5040000 96000

To Repair & Maintenanc e

To Wages to Unskilled Labour

88000 By Sales 2646384 By Closing Stock 29040

145200 29040 217800 1980536

To water charges To Electricity

To Gross Profit (Trans. to P & L A/c.)

5136000

5136000

Profit & loss a/c

Particulars
To Salary to Supervisor Watchman Accountant Salesman Clerk Peon
To Depreciation

Rs.

Particulars

Rs.

87120 By Gross Profit 1980536 29040 (Trans. From Trading A/c.) 58080 130680 72600 29040

Building P&M

24000

46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Pre. Exp. W/F To Ele. & Ins. Charges W/F To Selling Expenses To Tax paid To Postage & Stationary To Audit Fees To Mis. Exp. To Insurance To Legal Fees To Net Profit

145250 12000 18000 72600 310193 21780 21780 21780 24000 43560 883033 1980536 1980536

Profit & loss appropriation a/c

Particulars
To interest on Capital

Rs.

Particulars

Rs.

By Net Profit 883033 (Trans. From P & L A/c.)

Punit Patel 153480

Ashok Patel 153480 To Net Divisible Profit 306960

Punit Patel 288036.5

Ashok 288036.5 883033 883033 Patel 576073

Balance sheet
Capital Liability
To Capital A/C

Rs.

Property Asset
Land Building 192000 - Dep. 24000

Rs.
420000

Punit Patel 2417634

Ashok Patel 2417634

168000

4835268 P & M 92500 - Dep. 46250 Computer 6000 - Dep. 6000 Furniture 105000 - Dep. 22500 Delivery van 140000 - Dep. 30000 Other 49000 - Dep. 10500 By Pre. Exp. 56000 - Dep. 12000 44000 Equip. 38500 110000 82500 46250

By

Ele.

&

Ins. 36000 96000 1512000 1597413 684605 4835268

54000 - Dep. 18000 By Closing Stock By Debtors By Bank balance By Cash balance 483526 8

FUTURE PLANS

Opening more and more branches or outlets of Pizza

Hut in more and more cities of different states as at presently in India there is 72 outlets of Pizza Hut in existence and they want to open around 100 Pizza Hut in the beginning of this year.

Most probably in March April 2005 1 branch of Pizza

Hut will be opened in Rajkot.

CONCLUSION

Pizza Hut in Ahmedabad is one of the four outlets situated in Gujarat. Through my training program and survey I came to the conclusion that Pizza Hut is a professionally managed group and it employs peoples with diverse background so as to create a professional work culture which thieves on corporate excellence and take try in maintaining its high level of integrity and business ethics. It enjoys very high confidence of its customers and gives them a reason to return. It stood out as the second most preferred pizza parlor in Ahmedabad in the survey conducted and they already have an existing market to explore in Ahmedabad.

The only thing to recommend to them is that may be they can reduce their prizes to bring in more crowds. Rest of the things is efficiently managed by the unit and their staff.

BIBLIOGRAPHY

In order to have practical knowledge of training, the theoretical knowledge is must, i.e. the basic theoretical concerns must be clear. In preparing this report, I have referred the following reference books. Moreover, for getting extra information of Pizza Hut, I have visited some websites also. (1) RESEARCH BOOKS: -

Marketing Management (7

th

edition)

Philip Kotler

 Modern Marketing Management

Rustom Davar

WEB SITES: (A) www.pizzahut.com (B) www.pizzahut.co.in (C) www.dpcl.com