MODE OF MARKET ENTRY
AND POSITIONING OF
PIZZA HUT, NISSAN MOTORS&
VODAFONE
Presented By : Prince Garg
Rachit Gupta
Kumar kunal
Himanshu Malhi
V.Girish Kumar
Sunil Yadav
Pizza Market - India
Market Size - 2300 cr
CAGR- 25% to 30% (compounded annual growth rate)
Number one in India - Dominos- 67% Mkt Share
Pizza Hut - 27% market share
Number two - Pizza Hut
Non-Veg Offering Contribute-30%
PIZZA HUT - OVERVIEW Pizza Hut is a subsidiary of YUM! BRANDS, INC. the world's
largest restaurant company
Founded by DAN and FRANK CARNEY in the year 1958
Pizza Hut enter India in the year 1996 and opened its first restaurant in Bangalore
As of 2014 - 320 outlets of Pizza Hut in 60 cities of India
As of 2014, there were more than 6,000 Pizza Hut restaurants
in the United States, and more than 5,140 store locations in 94 other countries and territories around the world
Market Entry Strategy – Pizza Hut
The company has adopted “Franchising” as the entry strategy
Reason : Best method to establish operations without risk of operations
in an unfamiliar market
Franchising route helps in learning the buyer behaviour consumer behaviour & market realities
In countries where direct foreign investment is not allowed franchising is the easiest route to enter in these markets
cont’d
The franchise model is a great way for a franchiser to expand operations rapidly, with relatively low overheads and expenses, coupled with the local expertise that franchisees provide
Expanding business and revenues is what matters the most
Since he will have to spend less on infrastructure and processes than he would have in an independent business
Segmentation Pizza hut has used certain demographic factors. Such as -
Age – children, teenagers, adultsFamily size – family is having children, college students, young
professionalsIncome – low income, middle income and high income families
And also psychological factors such as lifestyle of the marketFor Ex : whether the customers are having busy life style
or not.
Target markets They are targeting the following market segments
Males and females 18 to 55 Families with young children, college students, and young
professionalsMiddle and high income familiesConsumers with busy lifestyles are more likely to be heavy
users of quick service products
POSITIONING
Pizza Hut has always followed ‘Single Brand Positioning’
Pizza Hut USP is dining experience
4 P’S of Marketing
MARKETING STRATEGY
PLACESTRATEGY
PRICESTRATEGY
PRODUCT STRATEGY
PROMOTION STRATEGY
PRODUCT STRATEGY Product Positioning of Pizza Hut - Pizza Hut has always
followed “Single brand positioning” called “PIZZAS”
Product Scope of Pizza Hut - Pizza Hut follows a “multiple product strategy” as pizza hut not only sell pizzas, but also deals in a variety of other product. Such as appetizers, beverages, desserts, pasta
Product Design of Pizza Hut - Pizza Hut follows the strategy of selling standardized products with modifications. Pizza Hut mainly sells 4 types of pizzas with 3 sizes, namely small, Regular and Large. Those are Pan Pizzas, Stuffed Crust Pizzas, Sausage Crust Pizzas, Thin Crust Pizzas
PRICING STRATEGY
Pizza Hut follows “Price Skimming” strategy
The high/low pricing strategy has several advantages for Pizza Hut –
Used to create excitement Set high price initially to send a signal that its products are best in
quality and service offered in excellent. Helps in segmenting the market as Pizza Hut can sell “the extreme
pizza” to the customers who wish to pay higher price as well as to the bargain hunters too
Sometimes in face of competition either from pizza players or from its substitutes, Pizza Hut has also reduced price by maintaining the same level of customer service and quality
PROMOTION STRATEGY
Advertising
Personal selling
Sales Promotion
PLACE STRATEGY Pizza Hut always follows the strategy of “THINK GLOBAL,
ACT LOCAL”
Pizza Hut conducts a survey to know about the Geographic conditions, Political conditions, Legal framework and Commercial practices
POINT OF DIFFERENCE Pizza Hut concentrates on in-restaurant dining
The ambience and décor of all pizza outlets are good and outlets are spacious
Pizza Hut also arranges Kitty parties, Birthday parties and Business meeting in their outlets
Pizza Hut quality of product is good and has a personalised service
Pizza Hut major revenue is from restaurant sales
FACTORS FOR SUCCESS
Offering value food
Moving Beyond Metros
Aggressive marketing and tie ups with local and popular brands
Developing the local supply chain
NISSAN MOTORS
Automobile Industry in India
Largest automotive markets in the world
Fastest growing markets globally
India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world
Annual production of more than 3.9 million units in 2011
CONTD.
India overtook Brazil to become the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil)
Throughout the course of 2011 and 2012, the industry grew 16-18%, selling around three million units
India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand
INTRODUCTION
• Nissan Motors Co. Ltd. Japan
• Established in 1933
• Started with a paid up capital of 6,05,813 million yen• Ranked 61 in Fortune global 500 companies of 2014
• Among top 6 automobile companies in the world
NISSAN IN INDIA Nissan Motors India Private Ltd.(NMIPL)
Company was incorporated in 2005
Invested INR 45 Billion for a period of 7 years
In February 2008, Nissan, together with its global alliance partner Renault signed a MoU with government of Tamil Nadu
Nissan in India has a portfolio of two brands, Nissan and Datsun
Set up a manufacturing plant at Oragadam, near Chennai
Strengths
Spends 4.5% of its revenue in R&D
Value rose by 30% to nearly 5 billion dollar
Alliance with Renault and Daimler AG
Nissan performance worldwide
Marketing strategy
Targets to reach middle class people
Present market share is 1.6% & to expand it to 10%
95 outlets across India and to open 300 outlets by 2016
Aims 1 lakh consumers by next fiscal year
To reach new towns where there is no presence
Competitors
Maruti Suzuki
Hyundai
Mahindra & Mahindra Motors
Honda
Toyota
Market Share
VODAFONE INDIA
Vodafone
Vodafone Group is a British multinational telecommunications company headquartered in London
Is the world's 2nd-largest mobile telecommunications company
Chairman - John Southam CEO - Vittorio Colao
As of 31 March 2014 - Had 434 million subscribers
Vodafone owns and operates networks in 21 countries
Revenue £43.65 billion (2014)
Competitors in Market
Entered in India
Vodafone in INDIA came with acquiring Hutchison Essar limited
Vodafone was launched officially on 21st September 2007
Than on hutch was rebranded as Vodafone
STP Analysis
Segmentation -• Age• Service usage• Life of service• Geographical condition• Nature of customer • Institutional• Sole
Targeting
Vodafone is adopting multi-segment approach .they are offering a series of differentiated products to their respective markets
Home calling cards for the families of those professional who use to work abroad
Rs. 10 recharge for small user
Cheap SMS facility for youth
Facilities for circle users
Positioning
“Where you go the network follows you”
Hutch , as a brand, always tried to connect with consumers in simple, honest and real manner, while vodafone is more young and fun brand. So consumer will see a shift reflecting a more vibrant brand
The “pug” and actor Irfan Khan will be retained for the brand position
They are talking about the exclusivity of the network and the service they are offering to the customer
MARKETING STRATEGY
Vodafone strategic objective is
- Innovate and deliver on customer’s
total communications needs
Vodafone too, needed to educate consumers about cellular telephony :-
-Can I call std?
-Can I use my phone in a lift?
-What is airtime?
Commercial Strategy Rebranding
- Stores
- Mass media coverage Innovative distribution to reach the customer
- Exclusive shops
- Hub and spoke
- Associate distributions Customer service
- Shops and call centers
- Vans
- Help desks
4 Ps
Product: A product with many different features provides customers
with opportunities to - Chat Play games Send and receive pictures Change ring tones Receive information about travel and sporting events Obtain billing information And soon view video clips and send video messages
Vodafone live! provides on-the-move information services
Place Vodafone UK operates over 300 of its own stores
It also sells through independent retailers e.g. Carphone Warehouse
Customers are able to see and handle products they are considering buying
People are on hand to ensure customers’ needs are matched with the right product
Price Vodafone wants to make its services accessible to as
many people as possible: from the young, through apprentices and high powered business executives, to the more mature users
It offers various pricing structures to suit different customer groups
Monthly price plans are available as well as prepay options. Phone users can top up their phone on line
Vodafone UK gives NECTAR reward points for every £1 spent on calls, text messages, picture messages and ring tones
Promotion
Vodafone works with icons such as Zoozoos & Pug to
communicate its brand values
Above the line
Below the line
Public relations
THANK YOU