“Nobody out pizzas the Hut” is Pizza Hut’s currentslogan, but the market research data suggestsotherwise. During the height of the pandemic, people wereordering and devouring pizzas at an astonishing pace—much higherthan average—due to contactless delivery and the novelty of havinga hot meal that didn't need to be made at home. However,while other pizzerias soared during the pandemic, Pizza Hut showeda decline in growth. According to Restaurant Business,Pizza Hut's overall year-over-year sales fell 2.2% in 2020, whileits biggest competitors, Domino’s and Papa John's, had netgains of 17.6% and 15.9%, respectively. As a result, Pizza Hutsurrendered its market leader position to Domino's Pizza in 2020.In short, the pandemic was good for the pizza business, except forPizza Hut who closed 1,745 stores globally in 2020. Marketresearchers have provided the following potential reasons why PizzaHut couldn’t capitalize on the pandemic in the same manner as itscompetitors.

1. Unlike its competitors, Pizza Hut has struggled over the yearsto find a brand identity. For instance, when you hear "PizzaPizza," you instantly think of Little Caesars. Likewise, PapaJohn’s slogan "Better Ingredients, Better Pizza" has been the samefor decades. However, Pizza Hut never had a famous slogan, whichhindered its brand recognition.

2. Pizza Hut was slow to warm up to innovations. In 2018, Pizza Hutstill operated its delivery service despite a new deal that allowedconsumers to order with Grubhub, the third-party delivery app thatmany millennials and gen z-ers use to get food. A year later, PizzaHut insisted on using its delivery drivers to drop off pizzasordered through the Grubhub app.

3. Competitors also offer deeper discounts (i.e., three 2-toppingmedium pizzas for $5.99 each = high discounts for volume), deals,and loyalty programs. At the same time, Pizza Hut has failed toroll out similar promotions on the same scale. Instead, Pizza Hutoffered slight discounts on specialty pizzas (i.e., a stuffed crustone-topping medium pizza for $12.99) that did not convey the samevalue to value-conscience consumers or families on a budget as itscompetitor’s offers. Or, in some cases (like the Pizza Hut BigDinner Box), Pizza Hut offered a deep discount but only for menuitems that were much poorer in quality.

4. Pizza Hut was once known as a fast-casual dine-in pizza placewith white and red checkerboard tablecloths and the occasionalarcade game to play while you waited for your order (very 1980's).Fast-forward to 2021, and consumers don't want dine-in pizza;instead, they want to take it home and eat it in the comfort oftheir recliner while watching TV in a COVID Free environment. Now,dine-in restaurants only account for about 10% of Pizza Hut'ssales. Papa Johns, Little Ceasars, and Dominos mostly operatesmaller and less expensive express locations that focus oncarry-out and delivery orders. But dine-in pizzerias aren't dead;they've just evolved. Dine-in pizzerias have gone upscale withcompetitors like Mellow Mushroom or Brick Oven Pizza offering youngexecutives, upscale dining families, and empty nesters full barsand gourmet pizzas, attentive weight staff, fuller menus, and amuch more high-end atmosphere. Should Pizza Hut move to the moreexpress model, the high-end model, or try to do both? Either wouldrequire a huge investment in new or remodeled restaurants.

You’ve been hired to help turn Pizza Hut’s businessaround. Please provide your recommendations for PizzaHut.

Make sure to address and include the following in yourrecommendation(s):

1. Segmentation and Target Marketing

2. Consumer Behavior

3. The four P’s of marketing (including how to increasetrial and awareness of this new app)

4. The use of market research (i.e what questions you wouldask potential customers), test marketing to launch theproduct