Managing The Marketing Strategy Process With The Advent ✓ Solved

Managing the Marketing Strategy Process With the advent

With the advent of mobile technology, new avenues have been opened to marketers to reach their target markets in new ways. Companies now operate in two market environments; the marketplace (the traditional face to face engagement) and marketspace (a face to screen environment). However, marketers are still challenged to design and execute strategies that capitalize on the unique customer value-creation capabilities utilizing technology in the pursuit of a meaningful marketspace presence.

Pizza Hut is the world’s largest pizza chain with more than 10,000 restaurants in 100 countries. It was also one of the top 35 U.S. Internet retailers. This case describes Pizza Hut’s online business initiative that produces hundreds of millions of dollars in annual revenue. Specific emphasis is placed on Pizza Hut’s multichannel marketing approach to creating a unique customer experience and customer engagement platform. The video case provides a behind-the-scene look at how a market leader in the quick serve restaurant industry revolutionized interactive marketing.

As a marketing consultant analyzing Pizza Hut's interactive website, I will formulate a set of well-developed and supported recommendations to address the challenges facing the company in today's competitive landscape.

Understanding the Current Market Position

Pizza Hut has been facing significant challenges in the competitive fast food industry. Reports from recent years have indicated a decline in customer engagement and market share, with competitors like Papa John’s gaining traction. According to Taylor (2017), Pizza Hut is "hemorrhaging customers," necessitating a strategic overhaul. Understanding the dual market environments (marketplace and marketspace) is crucial for any modern marketing strategy. This necessitates a strong online presence coupled with traditional customer engagement strategies.

Current Assessment of Pizza Hut’s Online Presence

Upon reviewing the company’s website, PizzaHut.com, it is evident that the site incorporates elements of both transactional and promotional websites. However, the user experience (UX) could benefit from enhancements that ensure a seamless customer journey. The inclusion of advanced interactive features, personalized content, and easier navigation can significantly enhance customer engagement. A transactional website must be efficient, fast, and user-friendly, allowing customers to place orders without friction.

Recommendations for Enhancing Online Strategy

1. Optimize the Digital Interface

The website should undergo a comprehensive redesign focusing on user experience. This includes optimizing load times, enhancing mobile usability, and minimizing the click-through process to place an order. An intuitive design will lead to better conversion rates. According to a report by the 'Pizza Power Report' (2014), customer experience in fast food is directly correlated with sales; thus, enhancing digital interactions is critical.

2. Leverage Mobile Technology

Developing a robust mobile app is imperative, especially as consumers increasingly rely on mobile devices. Features such as geolocation for targeted promotions, user-friendly ordering systems, and loyalty programs integrated within the app can drive engagement. As noted by Krashinsky (2013), geofencing technology allows for the sending of promotional messages when consumers are near target locations, which can boost foot traffic and online orders.

3. Foster Customer Engagement through Personalization

Implementing analytics for personalized marketing strategies can heighten customer loyalty. Tailored recommendations, special offers based on past purchases, and interactive promotions can create an engaging experience. Moreover, utilizing CRM (Customer Relationship Management) systems can help Pizza Hut to better understand and segment their customer base, thus enhancing marketing effectiveness.

4. Emphasize Social Media Interaction

Social media platforms are vital for modern marketing strategies. Pizza Hut should actively engage with customers through social media campaigns, influencer partnerships, and interactive content. According to research by the 'Pizza Power Report' (2014), brands that engage customers on social media see increased customer loyalty and brand affinity.

5. Revamp the Promotional Strategy

Incorporating promotions that not only attract new customers but also retain existing ones is crucial. The company should explore bundled deals, flash sales, and loyalty rewards programs that can be advertised through email and social media channels. These promotional strategies should be dynamic, adjusting based on market trends and consumer feedback as they emerge.

Conclusion

In conclusion, Pizza Hut's marketing strategies must evolve to meet the demands of the digital age. By optimizing their online presence, leveraging mobile technology, fostering personalized customer engagement, emphasizing social media interaction, and revamping their promotional strategies, Pizza Hut can enhance its competitive edge in the fast food industry. It is critical to continuously adapt to changing consumer behaviors and preferences to ensure sustained growth and customer loyalty.

References

• Kerin, R. A. & Hartley, S. W. (2017). Marketing (13th ed.). New York, New York: McGraw-Hill Education.
• Taylor, K. (2017, Feb. 10). Pizza Hut is Hemorrhaging Customers. Business Insider.
• Whitten, S. (2018, Aug. 10). Papa John’s Sales Are Up For Grabs. CNBC.
• Scugliuzzo, D. (2019, August 20). Top Pizza Hut Operator Falls Further Into Distress. Bloomberg.
• Lucas, A. (2020, Feb. 7). Pizza Hut's slumping US business eyes turnaround with new management. MSN.
• “Pizza Power Report: 2014 State of the Industry.” Pizza TV, November 26, 2013.
• “Order’s Up for Pizza Hut’s Mobile Platform.” com, November 5, 2013.
• Krashinsky, S. (2013, October 2). Rogers Opens New Door for Advertisers: ‘Geofences’ Technology Will Allow Retailers to Send Promotional Text Messages to Subscribers Who Pass by Their Stores. The Globe and Mail.
• “The Fast Food Industry in 2021: A Look Ahead.” Fast Food Insider, 2021.
• “Consumer Engagement and Loyalty in Fast Food.” Journal of Marketing Digital Trends, 2021.