When the first Pizza Hut opened its doors back in 1958, it offered consumers one

Question

When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as the leader of the $25 billion pizza industry. Today, Pizza Hut offers five styles of pizza, including the Original Thin Crust Pizza, Pan Pizza, and its Hand-Tossed Style. Explain why Pizza Hut has expanded its offerings of pizza over the past five decades, and discuss the long-run profitability of such a strategy

Explanation / Answer

In marketing targeting a proper segment is very important. Pizza hut initially came up with thin crust which people liked and which made Pizza Hut the market leader. For any market leader it is very important to have a sustainable market strategy in order to keep their position. Pizza Hut realised this and came up with different varieties for different segments of people. They properly divided their segments and targeted correctly. This combined with the Brand Image of Pizza hut led to its success.

Also after a while people get bored of a particular taste no matter how good it is or atleast the producers think so. This is the same reason even Nestle decided to have different varieties of Maggi even though the origional one was a huge success. In both the cases Pizza Hut and Maggie expanding their offerings has worked out in their favours and this is a strategy which is likely to be followed by almost every big brand.

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