Pizza Hut and imc: Becoming a Multichannel Marketer

Managing the Marketing Strategy Process

With the advent of mobile technology, new avenues have been opened to marketers to reach their target markets in new ways.  Companies now operate in two market environments; the marketplace (the traditional face to face engagement) and marketspace (a face to screen environment).  However, marketers are still challenged to design and execute strategies that capitalize on the unique customer value-creation capabilities utilizing technology in the pursuit of a meaningful marketspace presence.

Pizza Hut and imc: Becoming a Multichannel Marketer

Pizza Hut is the world’s largest pizza chain with more than 10,000 restaurants in 100 countries.  It was also one of the top 35 U.S. Internet retailers.

This case describes Pizza Hut’s online business initiative that produces hundreds of millions of dollars in annual revenue.  Specific emphasis is placed on Pizza Hut’s multichannel marketing approach to creating a unique customer experience and customer engagement platform.

The video case provides a behind-the-scene look at how a market leader in the quick serve restaurant industry revolutionized interactive marketing. 

Sources

Kerin, R. A. & Hartley, S. W. (2017). Marketing. (13th ed.). New York, New York: McGraw-Hill Education.

Directions

Initial Post

Review the following information to see how Pizza Hut creates a customer experience in the highly competitive fast food industry:

Background on Pizza Hut:

Visit the company’s website to understand what a hybrid website looks like.  That is, it includes elements of a transactional website and a promotional website (PizzaHut.com (Links to an external site.)).

· Read the video case in the textbook on pp. 615-619.

· Watch the Pizza Hut case video (Links to an external site.)

Sources

· Read the following online websites and articles

o “Pizza Power Report: 2014 State of the Industry,” Pizza TV, November 26, 2013,http://www.youtube.com/watch?v=A7-e_W0Hj0I (Links to an external site.)

o “Order’s Up for Pizza Hut’s Mobile Platform,” com (Links to an external site.), November 5, 2013

o Susan Krashinsky, “Rogers Opens New Door for Advertisers: ‘Geofences’ Technology Will Allow Retailers to Send Promotional Text Messages to Subscribers Who Pass by Their Stores,” The Globe and Mail, October 2, 2013

Based on the information provided, put yourself in the position of a marketing consultant brought in to the company to critically examine the company’s interactive website, and then formulate a set of well-developed and supported recommendations to the company’s senior leadership team. The recommendation should be logically presented, well-supported, and thoroughly vetted.

Teacher Notes:

Here’s what was happening at Pizza Hut and why it needs your help!

Taylor, Kate (2017, Feb. 10). Pizza Hut is Hemorrhaging Customers. Business Insider.

http://www.businessinsider.com/pizza-hut-is-hemorrhaging-customers-2017-2 (Links to an external site.)  (Links to an external site.)

And it didn’t get any better in 2018:

Whitten, Sara (2018, Aug. 10). Papa John’s Sales Are Up For Grabs. CNBC.
https://www.cnbc.com/2018/08/10/papa-johns-sales-are-up-for-grabs-dominos-emerges-as-the-early-winn.html (Links to an external site.)

To add to the complexity of this market, please review below:

Scugliuzzo, Davide (2019, August 20). Top Pizza Hut Operator Falls Further Into Distress. Bloomberg.

https://www.bloomberg.com/news/articles/2019-08-20/top-pizza-hut-operator-falls-further-into-distress-as-loans-sour (Links to an external site.)

And here we are in 2020:

Lucas, Amelia (2020, Feb. 7). Pizza Hut’s slumping US business eyes turnaround with new management. MSN.

https://www.msn.com/en-us/money/companies/pizza-huts-slumping-us-business-eyes-turnaround-with-new-management/ar-BBZJ7yy?li=BBnbfcN
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