Shrusti

MP Guru
Customer Relationship Management of Pizza Hut : Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread.

Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company[1]) with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries.

Currently based in Addison, Texas[2][3] (a northern suburb of Dallas), Pizza Hut is planning to relocate its headquarters to Legacy Office Park in nearby Plano in mid-January, 2011.

Pizza Hut is split into several different restaurant formats; the original family-style dine-in locations; store front delivery and carry-out locations; and hybrid locations that offer carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a special pasta. Additionally, Pizza Hut also has a number of other business concepts that are different from the store type; Pizza Hut "Bistro" locations are "Red Roof"s which offer an expanded menu and slightly more upscale options.
Pizza Hut store (with distinctive roof) in Athens, Ohio typical of U.S. Pizza Hut restaurants

"Pizza Hut Express" and "The Hut" locations are fast food restaurants. They offer a limited menu with many products not found at traditional Pizza Huts. These type of stores are often paired in a colocated location with a sibling brand such as Wing Street, KFC or Taco Bell, and are also found on college campuses, food courts, theme parks, and in stores such as Target.

CRM stands for Customer Relationship Management. The goal of implementing such management system is as follows:


Source: Marketing Management, 12th edition, Kotler & Keller.

According to Peppers and Rogers, one-to-one marketing that can be adapted to CRM marketing are as follows(This is the complete list of the above diagram):

 Identify your prospects and customers.
 Differentiate customers in terms of their needs and their value to your company.
 Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships.
 Customize products, services, and messages to each customer.
 Reducing the rate of customer defection.
 Increasing the longevity of the customer relationship.
 Enhancing the growth potential of each customer through “share-of-wallet,” cross-selling, and up-selling.
 Making low-profit customers more profitable or


1. Address value.

Nothing illustrates this more than the restaurant’s launch of the “Big Eat, Tiny Price” campaign. With the special, customers can dine for only $5 on dishes such as the new Pizza Stuffed Rolls and the P’Zone Pizza. “We needed to have a low price-point entry into the marketplace,” Kraut said. Pizza Hut’s online customers spend, on average, $2.50 more than the offline customer. Add-ons and side dishes are very popular with people ordering online.

2. Improving and increasing menu variety.

Pizza Hut’s marketing organization seeks to stimulate the market every four to six weeks. A lot of times that means introducing new menu items. It has been rolling out new locations of its WingStreet store and has seen favorable results. Kraut said Pizza Hut expects its wing business to double in the next two years.

In addition to wings, Pizza Hut has made a play for pasta, as well. “We like to stand for America’s favorite foods,” Kraut said. Pizza Hut found a strong correlation with those that eat pizza and those who eat pasta. People who eat pizza four times a month, tend to eat pasta on a regular basis, as well, he said.

3. Lead in access.

“Pizza Hut has been early and often to embrace emerging media,” Kraut said. In June, the chain launched an iPhone App, “The killer app for your appetite.” The interactive application allows customers to order pizza there — or by text message. It’s been wildly popular. They are at about 600,000 downloads and currently hold the #2 spot (behind Starbucks) in lifestyle applications on the AppStore.

How does this translate into more business? Pizza Hut sees 30 percent of e-commerce sales coming through the iPhone. Kraut said as the company explores other mobile platforms, he anticipates that mobile will continue on the path of being a strong channel for customers.

4. Get in the new media conversation.

Pizza Hut is increasingly embracing emerging media through areas such as viral video. Although it’s difficult to measure, he said customers can expect more videos like the one below — A spoof of a commercial actor flipping out.

The company made news early this summer with its search for a Twintern – an intern whose main responsibility would be to create a Twitter presence and alert the pizza chain on what’s happening on the social Web. Pizza Hut was so pleased with the Twintern’s performance that it offered her a full-time position. Now the search is back on — this time trying to create a title for the Twintern’s full-time position.

Kraut said that Pizza Hut’s Web sales continue to grow. In a few weeks it will launch a new Web site. It’s e-commerce platform is unique in that it offers customers recommendations for products they might like. It also, Kraut said, is the only pizza site to remember customers upon repeat visits. What’s the impact of new media on the in-store Pizza Hut experience? Kraut said he reckons it positively affects it, although he doesn’t have the stats to back it up.
 
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In this fast growing and highly competitive market, it become very difficult to maintain the loyal and long term relations with the customer.Customer is like cream and has the characteristics of getting slipped from you hand if you loosen up.Consumer is in the state f flummoxed with myriads of products available in the market. Each and every company needs to set up their customer but, to maintain customer relationship would be easy if you treat your customer with dignity and transparent. What you have promised and if delivered that then you will truly wins the heart of the consumer and even their loyalty.
 
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