Saturday, May 28, 2011

Pizza Hut Strategy

Once captain Gopinath mocked at airlines strategy to inflate air prices and earn 800 crore rupees @ 80% occupancy rate. He alternatively suggested to decrease the prices and earn 900 crore rupees @ 100 % occupancy rate. Obviously this strategy has its pros and cons.

To cater to 100 % occupancy, there would be direct impact on operations and there by increases the cost. But we can on the other hand apply economics of scale and achieve operational efficiency.

Similar strategy is used by pizza hut, now a days. 3 course meal @ Rs 99 during weekdays. This is awesome way of using unutilized space during the weekdays.

Pizza hut, being positioned as a place for any event normally remains vacant during weekdays. Through ATL(above the line) promotion, company has tried to push its brand and its usage when the company wants them to use.



Most of these strategies are normally used by airlines, hotels and theme parks.
Hope, pizza hut achieve 100 % occupancy soon,

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