Assignment on Pizza Hut Bangladesh Limited

Assignment on Pizza Hut Bangladesh Limited

1.0 Introduction 

          On June 13, 1958 the first Pizza Hut Restaurants opened. By September it was grossing $700 to $800 a week, by December, over $1,000 a week Pizza Hut restaurants number two and three soon followed.

       Franchising began in 1959 when Dick Hassur, Manager of Pizza Hut Unit No. 3 signed the first Franchise Agreement. For a fee, he would have the right to use the Pizza Hut name and ‘secret’ recipes. He also would receive management assistance from the Carneys.

Pizza Hut Restaurants were patterned for growth. In 14 years (1958-1972) franchise and company Restaurants numbered 1,000. In the next three years (1972-1977) they numbered 3,000.

Home delivery is a fast growing segment of the pizza market worldwide, and Pizza Hut Delivery was developed in 1985 to compete aggressively in this highly competitive market.

Today, Pizza Hut is the largest pizza chain in the world with more than 12,000 Pizza Hut Restaurants and Delivery Units operating worldwide.

1.1 Marketing objective

                It has emerged by keeping some marketing objectives in mind. The marketing objectives are as follows:

  • To make an effective marketing plan so that it can draw attention of the customer and grab a substantial portion of customers in Bangladesh.
  • Grow and retain current customers by taking various promotion activities.
  • Diversify the service offering to insulate the business against fluctuations in any one component of the revenue stream.
  • Build customer loyalty by providing quality foods, excellent environment and quick service programs.
  • Maintain a staff of enthusiastic employees excited to serve the customers.
  • Build the new product to the point where it becomes a household name in Bangladesh.
  • Increase market share in local market segment by 15% in 3rd year.
  • Reduce marketing costs by 20%over next year.

1.2 Methodology

The study requires a systematic procedure from selection of marketing planning topic to final report preparation. To perform the study information sources are to be identified and collected, they are to be classified, analyzed, interpreted, and presented in a systematic manner and key points are to be found out. This overall process of methodology is given below in the form of flow chart we have followed in the planning.

2.0 Over View Situation

           Pizza Hut opened its doors to the Bangladeshi market on the 6th of December, 2003 and ever since then it has been one of the most popular fast food outlets in Bangladesh.Currently there are three outlets, two in Dhaka and one in Chittagong.

         The outlets in Dhaka are in the posh areas of Dhanmondi and Gulshan. While the one in Chittagong is situated at GEC Mor.

        Another 2/3 outlets are set to start operations soon. All foods served in the outlets in Bangladesh are halal.

        Pizza Hut Bangladesh has an annual all you can eat offer during the Islamic holy month of Ramadan.

        The outlet in Gulshan has 220 seats and at 6000 sq ft. is one of the largest Pizza Huts on the Indian subcontinent.Pizza hut in bangladesh now offer pizza in 300 to 1200 range.

        Pizza hut now launch new item  o f  pizza  that is the  vegetable pizza which is the totally new concept  in fast food with the perspective of  bangladesh. It is clear that  any fast food maker organization  does not  produce this kind of pizza. It will be given in a moderate price in TK 175.

3.0 Current Market situation

Here data presented on the target market.  The size and growth of the market are shown for several past years and by market and geographical segments. Data on customer needs, perceptions, and buying behavior, trends are also presented.

 Pizza hut the primary buyers are middle class consumers as like as couple, ages 20 to 35 who want to reasonable price with better pizza but do not want not invest in expensively. They want to buy a better pizza produced by a name they can trust.

In Bangladesh   Pizza hut and dominos pizza both are the market leader.

Pizza hut approximately cover 36% market share, dominus is same and other organization covers the rest of the share.

3.1 Market share

 Below this graph  we have found that pizza hut covering 36% market share, dominus 30%,shawrma 16% and others 18%. So, we can say pizza hut capture large portion of market share.

 4.0 Marketing Strategy

 Here is the new product development that means Vegetable Pizza’s plan:

Target Market:

 Middle class generation most probably age 20 to 35


The best quality and the most reliable  food

Product line:

Add one most qualityful but lower prices food


 Price somewhat above competitive quality

Distribution outless:

 Its fastast delivery within 30 minutes from order

Sales forces:

Expand by 10 percent and introduce a new product in our country


 Quickly and widely available food

Sales promotion:

 Develop a new product that support the positioning strategy

5.0 SWOT Analysis

5.1 Strength

Despite of competition pizza hut has numerous strength.

      1. This type of pizza is first for Bangladeshi middle class people.

  1. At first we ca say that we find this product with reasonable price.
  2. Middle class generation easily take this product.
  3. It is also very attractable for vegetarian.
  4. Quick home delivery

5.2 Weakness

In this product have many weakness.

1. May people doesn’t like only vegetable pizza.

2. Taste will be not high quality able.

3. Though it has less price people will think it is high price.

 5.3 Opportunities

 The main opportunities facing pizza hut line are as follows:

1. Consumers are showing interest more in pizza hut

2. Pizza hut will get more popularity and many people will go here.

 5.4 Threats

The main threats of pizza hut are as follows:

            The main threats of pizza hut is their competitor,

                       Dominus pizza,

                       Shawarma restaurant and

                       Others restaurant.

6.0 Pro-forma financial statements and budgets

6.1 Marketing budgets

The marketing management budget consists of selling expenses, advertising and other promotion expenses, product cost and other costs. The overall marketing budget of new product on the 1st year of operation is 3600000 taka. The various parts of marketing budgets are described below:

6.2 Selling expense:

The selling expenses of new product include the direct production costs, transportation costs, and other variable costs. It has estimated selling cost of 3600000 taka in the 1st year of business.

6.3 Advertising/promotion expense:

New product will take massive promotion activities in the 1st year of operation. The total estimated promotion budget for the 1st year is 3600000 taka. Among this money 100000 will be used to give discounts to customers on various occasions. The management will also spend 100,000 taka to present customers with some gifts. The rest of the money will be used for advertising on television, newspapers, flyers, banners, etc. to attract more customers.

6.4 Budgets for promotion in 1st year:

Promotion Items

1st year





Other Promotions


Total Budgets


 6.5 Product cost:

The product cost consists of production costs and storage costs. The organization will store various vegetables on the store room. It has estimated a storage cost of 1, 20,000 taka in the 1st year.

6.6 Others cost:

Management has some miscellaneous costs. The total anticipated amount is 120000 taka.

6.7 Pro forma annual profit and loss statement (1st year)

The pro-forma annual profit and loss statement of new product for 1st year is given below:

Pro Forma Income Statement for 1st  year:





Gross profit


Operating expenses

    Rent        100000
    Salaries and wages


    Depreciation and other cost


Total operating expenses


Profit before taxes


Taxes (15%)


Net profit


 7.0 Action Programs

Before and after lunching our vegetable pizza we will make an excellent marketing campaign and monitor our competitor’s activities.

Here is how we will carry out its marketing strategy according to month by month, so that everything would be under our control.

In March, We will lunch our vegetable pizza firstly in Dhaka, Chittagong, all    out let.  Promotion director has the responsibility over the position. He will handle this project at a planned cost of tk.3600000

 8.0 Conclusion

                    It is known to all pizza hut always provides high quality type pizza and it is the largest pizza producer company from the beginning of the company.

                   Pizza hut main goal is to achieve a better and reasonable market share and profitability in the cosmetics market. We create a new product plan for increasing market share. Our competitor is Dominus, Shawrma and others every competitor offers various products in different segment for increasing market share but they do not produce this kind of product.

                Middle class younger, coupe or vegetarian is our target surely we will ahead from our competitors by this unique product.