Tuesday, 5 June 2012

Pizza Hot!!!!!!!!!!!!!! (Akash Agamya: FT13402)


Pizza Hot!!



Doesn't it grab your attention when you know that there is no Pizza Hut in Mahabalipuram? No wait; tell yourself that it is not Pizza Hut, its Pizza Hot. The name caught my eyes when I was out for my marketing research and observations. With curious mind I entered the shop. An aquarium with blinking lights at the entrance was quite receptive. The Left part of the shop included a counter which was more like a Pizza shop counter but the right part of the shop was quite a contrast. There were just few tables and chairs and the rest of the seating arrangement consisted of just cushions on the ground with low height tables giving out an Indian touch to the décor!
  These observations pushed me more to know about the owner's mind in selecting such a name, creating such an ambience and his business management acumen. I got the man, introduced myself to him and spoke all my good feelings about the shop so that he becomes comfortable talking to me. And it worked for me and our conversation began.

Here is the summary:





His name is Deepak Kumar and has done Hotel Management and Catering from SISI College, Kodambakkam (2002-2007) in Chennai. After completing his course, he did a 6 month training in Hotel Shringar (3 star) in Kanyakumari. He then got an opportunity to work in US Pizza as a steward. He worked there for the next 2 years and then switched over to Pizza Hut in Chennai. After 1 and a half year of work in Pizza Hut as a steward he was promoted to be a Service Manager with a salary of Rs.7000 per month. He was quite happy with his work and responsibilities till the idea to open his own Pizza centre crept in his mind. He then started assembling parts and pieces to start his own Pizza centre.
He initially approached banks for loan to start his business but was rejected for some or the other reason. He then somehow managed to get the money from his parents and friends. And then he explained me his business strategies which he put this way.

The Name
Pizza hut is in the heart of every pizza lover so he wanted a name which is similar to Pizza Hut and that’s why he chose the name PIZZA HOT.

The Location
He knew about Mahabalipuram and its existence on the global map so he wanted to find a place near the beach targeting foreigners and tourists as his potential customers and that’s why he chose this place.

The Ambience

He wanted the ambience to be comfortable but with an Indian touch to attract the tourist, hence he chose to put low height cushion rather than using normal chairs.



The Marketing
Tourist market is seasonal and at its boom from the period July to January of the year. So he had to plan his strategy to attract local customers and market for the off peak season. So he planned for the following,

  • Advertisement on local TV
  • Circulated Posters and Pamphlets
  • Free Home Delivery.

      
     Quality and Offers
The most important point which he emphasized is that the quality of the pizzas in his joint had to be on  par with the pizzas served by Pizza Hut and also all the offers that pizza hut offers like combo offer, family offer etc. will be offered in Pizza Hot too.


With all these preparations Deepak started Pizza Hot on January 1'2012 with a total investment of 4.05 lakhs. January being the favourable tourism season for Mahabalipuram gave him a pleasant and motivating sale for around Rs 10,000 per day. 
         
In normal days he generally receives 10 to 12 orders which mostly include home delivery orders as well as visiting customers.

He maintains sufficient stock and shops weekly for the required raw materials and beverages which costs him around 4000-5000 in normal days and 10000-12000 in peak seasons.
Doing a simple calculation with the data he gave, he must be earning 2, 29,000 Rs/month during Peak season and 33,000 Rs/ month during off peak season which is way more than his 7000 per month job.



Having discussed all these points, it was time to check Pizza Hot’s quality and claim for having the quality not less than Pizza Hut. I placed an order for a medium sized veg. pizza with cold drinks.


20 minutes over and I had my order on my table with the same Pizza hut effect. White plate, napkins and cold drinks served nicely in an aesthetic glass.


And to be honest the taste was quite good and did live up to Deepak’s claims.
In sum, after my amateur marketing observations and conversation with Deepak, I can say that without going to any marketing class, he could run his business successfully by using some basic ideas and theories of marketing like finding out target customers, clever advertising, quality maintenance and customer convenience.


PS: He charged me only Rs.100 for my bill of Rs.220. You can now well imagine the margin Deepak must be getting..JJ









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