Background: Pizza Hut is an American restaurant chain and international franchise founded in 1958.
Revenue in Australia is lower than any other countries
The company is known for its Italian-American cuisine menu, including pizza and pasta, as well as side dishes and desserts. Furthermore, Pizza Hut also developed Pizza Hut Delivery in 1985 for competing in this market. Today, Pizza Hut is the largest pizza chain in the world with more than 18,000 restaurants and delivery units operating worldwide. Approximately 270 stores are located in Australia, however, the revenue in Australia was lower than other countries’ revenue because of the overlapping of service area and other key factors.
Main Solution Methods we used in this case:
Trade Zone Analytics
For eliminating overlapping and enhancing revenue, the main consult of getchee decided to redefine the delivery areas and applied network optimization and trade zone analytics to solve this problem. First, we located market potential by grid in the study market, evaluated current network coverage against store performance, and mapped current market competition status for matching network coverage with demand. We used this result to redefine the delivery areas and shorten the delivery time. On the other hand, we asked Pizza Hut to give us phone calling order list. We can use this data to know each area’s delivery times, address, and also can estimate how many people live in that house by the size of pizza that consumers ordered. After complying all data, we estimated population of each area and created a customized a market potential heat map for Pizza Hut based on their target consumers, key competitors, synergistic point of interest, and other market related factors. According to this analyzing report, Pizza Hut can know their target locations for expanding their business and also can create appropriate marketing strategy to each consumer segment for boosting their revenue. Furthermore, we not only avoid the overlapping of delivery areas but also help Pizza Hut more realize their customer behavior and hobby. They can promote their marketing strategy more precisely than before.