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Pricing Strategy Of Pizza Hut

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Proposed Strategies Pricing - Competitive pricing is necessary for the success of the venture, but we must take our costs into consideration. Because of the costs involved in start-up, transportation, and imported goods, the price will be set at about USD $10 per pack of pizza. Using the concept of zone pricing to make the pizza affordable to the target audience. Exchanges will be done in naira so that would be about 1,800 naira. With the use of this pricing policy, Pizza Hut prices will be lower than those of the local Company. Pizza Hut could slide into the marketplace through this penetration pricing policy. Logistics and its costs – Pizza Hut can source its baking recipes from one of the best local baking recipes sellers, the Dangote …show more content…

Promotion - Types of available media for marketing purposes in Nigeria are very similar to those in the United States, which include everything from newspaper advertising to television ads. Since this is a test venture, and there is only a few location(s) being opened, the promotion for the store has to be focused on the target markets. A Billboard advertising on nearby highways could be introduced, making a good awareness medium of the store locations. Also, the social media is an effective medium for ads in the region, could easily capture the younger and even few older market. Inventory Management - The inventory can be controlled using a centralized inventory system. The stores, warehouses, factory and distribution units can be controlled by management. It could also be contracted to a third party company for a proper integration of distribution systems with a pre-ordering system set to avoid inventory crisis and to enable product forecasting plans. Planned Financing Projected Income Statement for First Years of Operation Peter Pizza Projected Income Statement For the year ending December 2017 All values in United States Dollars Sales Revenue $500,000 Cost of goods sold 200,000 Gross income 300,000 Selling and Administrative Expense 35,000 Other operating expense 95,000 Unusual expense - Interest expense - Income

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