Pizza Hut Marketing: Environmental Analysis & Recommendations

This report provides an environmental analysis of Pizza Hut, a multinational restaurant chain, focusing on its micro and macro environments. It examines internal factors like skills, staff, systems, suppliers, marketing strategies, and product offerings, as well as external factors using PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis. The report also includes a SWOT analysis, identifying Pizza Hut's strengths, weaknesses, opportunities, and threats. Recommendations for improving market share, addressing health concerns, and navigating regulations are provided. The analysis concludes that while Pizza Hut has a strong market presence, continuous adaptation to environmental factors and strategic planning are crucial for sustained success. Desklib provides access to similar solved assignments and resources for students.

Principles of Marketing
Pizza Hut-Report
Principles of Marketing...................................................................................................................1
Pizza Hut-Report..............................................................................................................................1
INTRODUCTION................................................................................................................................3
TASK.................................................................................................................................................4
Micro environment..........................................................................................................................4
Macro Environment.........................................................................................................................6
PESTLE and other forces..................................................................................................................6
SWOT...............................................................................................................................................7
RECOMMENDATION........................................................................................................................8
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
This report is about Pizza hut which is known as the multinational restaurant and also known as
the international franchise chain which is founded in 2003 and it’s headquartered is located in
Plano, Texas. This report is the analysation of micro and macro environment and this also
involve analysation which strategic tool like SWOT and PESTLE, these factors help in analysing
internal and external factors of the organisation. This report also involves the recommendation
with the same in below analysation.
Mission
The main mission of this organisation is to take a pride to make a perfect pizza and serve proper
customer service as to expand their customer base and also to better their customer
experience(Du, and Li, 2020). As by making perfect pizza they meant choosing fresh and local
ingredient which will create a natural taste. By serving better customer service they meant
proving the better experience with appropriate skill and knowledge of employees and lastly,
they are desired to give better customer experience to there customers so that thy re visit
again.
Vision
The vision statement of Pizza hut describes that they try to improve customer’s well being and
the people who all are connected to this company and organisation. As they are desired to
serve best with the help of skilled employees and they wat the title of best employees as this
meant to brand encouragement and they also encourages each franchise in such a way to
increase the level of profitably with the help of research and new development(Kurian, 2022).
Market share
They had a huge market share in the industry as this is a well-known company with the high
goodwill in the market and this also had a good financial performance in the industry which
helps in developing and expanding the business in many forms as they competitive with the
other competitors by frequently introducing the discount methods which helps in gaining and
competitive advantage(Habich-Sobiegalla, Kostka, and Anzinger, 2019). This always helps in
encouraging the franchise and expanding it further.
Growth trend

As this organisation is one of the best known and had an 125% growth rate in the industry as
this fact helps n interacting with the customers effectively n an efficient way. They use many
strategies in order to attain a certain place in an industry which makes a name and fame of the
organisation.
Expectation for future
This company is desired to earn maximum profitability level in the coming years and to expand
the company all over the world because of the increasing customer base as they are loving the
taste of Pizza hut so this organisation is expecting to expand throughout the world for earning
maximum profit. They are also desired to get the competitive advantage by expanding the
customer base of the organisation in order to enhance the market and growth rate of the
company in industry.
TASK
Micro and macro environmental factors can affect the organisation in many such ways as micro
environment is the environment in which the organisation runs or works. Macro environment is
the external general environment which can affect positively or negatively to the organisation
and due this all the business operation can be affected. The analysation micro and macro
factors of Pizza hut is described below.
Micro environment
Skills
This is known as the primary link in between the different business process which affects in the
growth of the organisation. In a company skill is plays an important role which leaves a positive
and negative impact in a company and this helps in the better and effective customer service
and implementing it in applying with new skills and knowledge (Kristensen, and Mosgaard, 2020).
Staff
This is known as the link in between the customer and the organisation. This link helps in
managing the customers in an effective way as with effective and efficient staff with knowledge
and skills which attracts the customers and solves their query in an effective way. This always
impact positively in Pizza hut.

System
This is known as the proper structure of an organisation which works accordingly as per the
business operations and functions of the business and always performs under an proper
policies and rules which is towards the company and it affects the organisation in an positive
and negative way to Pizza Hut.
Supplier
As supplier is considered as the important element as Pizza Hut and other organisations are also
depend on that as they are the main source of raw material and equipment which helps in
maintaining the production of the organsiation as the supplier of Pizza hut also impacted in the
cost structure of the market)(Wong, 2021).
Marketing
As this is the well known brand with the effective goodwill and with an maintained customer
base of the organisation as they usually follows many digital marketing tactics which has also
helped in enhancing the customer base of the organsiation as by introducing the pizza emoji on
there social media websites and also does paid post by which they can easily reach to the
maximum audience and creating various blogs to make the public aware about there products
and offers(Budiono, and Yuliana, 2021).
Product
The products of Pizza hut involves all the cuisines for example pasta, American Italian pizza and
recently they had developed a natural pizza which contains all the natural ingredients and they
also introduced space food and also the food according to the targeted customers with an
customisation toppings according to the customer preference and Pizza hut used AI technology
for suggesting the best pizza(Rahayuningsih, Syamsul, and Noer, 2021).
Macro Environment
PESTLE and other forces
This is a strategic tool which helps the organisation in order to analyse the external factors and
this helps in making effective strategies and this also helps in analysing the risk. The analysation
of this is described below.

Political and government policies
As Pizza hut is known as the leading brand which has expanded globally As Brexit had affected a
lot due to which companies are unable to trade in EU. Due to covid it had become challenging
to maintain previous customer base and level of profitability in an organisation.
Economic factors
This usually affects on the business chains and affect in inflation rate, unemployment and GDP.
As due to more opening outlets due to covid people had starts using online stores and this is
becoming difficult in order to manage all the expenses.
Social factors
It is important to look around each social factor in order analyse all the risk as the actions which
is framed by the society and is essential to follow in order to achieve success. As each country
has different culture norms and it is important to focus in each targeted market requirement in
order to find success (Oliveira, and Almeida, 2019).
Technological factors
Pizza hut is started using new technologies like order on table which had reduced customers
efforts and make it more innovative and convenient for the customers in the outlets and they
using many new machines learning techniques in the business.
Legal factors
This company has the goodwill in the market due to maintain that they always follow all the
legal term of specific countries which helps the company in expanding more effectively (Özbük,
and Coşkun, 2020).
Environmental factors
This company follow all the eco-friendly serving items I order to maintain the trend and being
sustainable in the company. The also reduces the use of carbon footprints and also follow
various initiative for energy efficiency. As due to taxing the rate of profit is decreased and is
effecting in the market growth of Pizza hut(Permono, and Pasharibu, 2021).
Natural forces
These are also the external environment which can affect the organisation and this basically
affect in the shortage of the raw materials as Pizza hut usually uses cardboard and recycled

paper which helps in reducing the cut down of forestland and also helps in saving the natural
resources(Trott, 2022).
Cultural forces
These are the forces which is composed with many other forces and this can affect the values,
preference, behaviour and perception of the society as now a days everyone is more focussed
on there diets and reducing fast food which is affecting Pizza hut with low sales. As society is
more concerned about the better experience so Pizza hut is also providing some huge discounts
and offers which is increasing there customer experience in an effective manner(Meliawati,
Fadillah, and Gerald, 2021).
SWOT
This is tool which analyses the internal factors and helps in the better development and
planning internally in the organisation in an effective way.
Strength
There for most strength is that Pizza hut is expanded globally and with a good fame. This
company has an innovative product line which helps in attracting the customer base. They
always follow new technologies in order to fulfil the society requirement.
Weakness
As their declining market share is considered as a weakness of Pizza due to which for the
customers it become easy in order to switch with the alternative (Freundschuh, 2018).
Opportunities
As in order to increase market share, they can expand in more countries and this can consider
as an opportunity for Pizza hut. They can also get an opportunity by making a separate app and
start home delivery.
Threats

Due to now a day growing the concern of health people are avoiding pizza and it is becoming
challenging for them to maintain the level of profitability. Due to multiple regulation
compliance also, it is becoming a threat for this company (Dedeoğlu, 2019).
RECOMMENDATION
- For increasing a market share of Pizza Hut, they can expand the business and can
introduce new franchise in order to maintain the level of profit.
- As due to health concern of the customers they can introduce new flavours and with
alternative healthy products which can help in increasing the concern of health.
- As because of multiple rules and regulations company can follow them in an effective
way and can gain an advantage regarding that.
CONCLUSION
This report has concluded that Pizza hut is a well-known company with a high market share and
expanded customer base but it is important to analyse all the micro and macro environmental
factors which helps in analysing the risk and these factors can be analyses by strategic and
marketing tools. This report has also concluded that SWOT and PESTLE is considered as the
important tool in order to analyse all the external and internal environment of the organisation
which can help in further decision-making process and in planning for the better development
of the company.

REFERENCES
Books and Journals
Freundschuh, S., 2018. Micro-and macro-scale environments. In Cognitive mapping (pp. 125-146).
Routledge.
Özbük, R.M.Y. and Coşkun, A., 2020. Factors affecting food waste at the downstream entities of the
supply chain: A critical review. Journal of Cleaner Production, 244, p.118628.
Habich-Sobiegalla, S., Kostka, G. and Anzinger, N., 2019. Citizens’ electric vehicle purchase intentions in
China: An analysis of micro-level and macro-level factors. Transport Policy, 79, pp.223-233.
Kurian, P., 2022. From Micro to Macro: A Relativistic Treatment of the Chiral Energy Shifts Caused by
Static Electromagnetic Effects on Free Electrons. Entropy, 24(3), p.358.
Kristensen, H.S. and Mosgaard, M.A., 2020. A review of micro level indicators for a circular economy–
moving away from the three dimensions of sustainability? Journal of Cleaner Production, 243, p.118531.
Du, W. and Li, M., 2020. Assessing the impact of environmental regulation on pollution abatement and
collaborative emissions reduction: micro-evidence from Chinese industrial enterprises. Environmental
Impact Assessment Review, 82, p.106382.
Oliveira, M. and Almeida, M., 2019. The why and how of micro (nano) plastic research. TrAC Trends in
analytical chemistry, 114, pp.196-201.
Dedeoğlu, B.B., 2019. Shaping tourists' destination quality perception and loyalty through destination
country image: The importance of involvement and perceived value. Tourism Management
Perspectives, 29, pp.105-117.
Meliawati, T., Fadillah, A. and Gerald, S.C., 2021. PENGARUH KEGIATAN CORPORATE SOCIAL
RESPONSIBILITY LOCAL FARMER EMPOWERMENT TERHADAP CITRA PIZZA HUT. Jurnal Ilmiah
MEA (Manajemen, Ekonomi, & Akuntansi), 5(2), pp.1702-1711.
Trott, V., 2022. Learn About Sentiment Analysis Using SentiStrength With Pizza Hut Twitter Data (2020).
Permono, V.R. and Pasharibu, Y., 2021. PENGARUH KUALITAS LAYANAN, HARGA DAN PROMOSI
TERHADAP LOYALITAS PELANGGAN PADA PIZZA HUT. JIMEK: Jurnal Ilmiah Mahasiswa
Ekonomi, 4(1), pp.129-135.
Rahayuningsih, S., Syamsul, M.H. and Noer, R., 2021. Strategi Promosi Dan Komunikasi Pemasaran
Terhadap Keputusan Pembelian Selama Pandemi Covid-19 (Studi Kasus Pada Pizza Hut
Mojokerto) (Doctoral dissertation, Universitas Islam Majapahit).
Wong, J., 2021. Pengaruh Service Quality, Food Quality, dan Price terhadap Customer Satisfaction pada
Restoran Cepat Saji Pizza Hut Surabaya.
Budiono, A. and Yuliana, A., 2021. PENGARUH KUALITAS PRODUK, PERSEPSI HARGA DAN
PROMOSI TERHADAP KEPUTUSAN PEMBELIAN DI PIZZA HUT DELIVERY ARUNDINA
CIBUBUR. STEIN eRepository, 16(2), pp.16-27.