The present scenario has been witnessing stiff competition among the firms as every company is seeking to attain their main commercial goal, which is enhancing performance that can be deciphered through attaining of bigger sales and profit. As a result of this, preponderance of the organizations existing in the current society are inclining towards advertising for boosting up their profits.
Advertising has been a key constituent of the integrated marketing communication and it has one of the most perceptible and exclusive activities of marketing. It is also been measured as being the conventional promotional mix that is being recognized by the organizations in the present days. Advertising can be stated as the paid form of the non-personal communication about a company, product or any sort of idea by the acknowledged sponsor. Advertising has always played an imperative role in the communications for marketing which is seen as an efficient way of promoting, be it in services and products as consumers are generally been showered with assortment types of media (Wells, 2014).. Firms are of the notion that advertising is highly beneficial in the form of attentiveness building. A successful advertisement, if implemented by the organization would be augmenting the performance of the company in various aspects; increased share in market, augmented sales that turns into higher profit, forming a reputed brand image.
Advertising takes in the important ways through which organizations communicate with their consumers, both the probable ones and the present ones. Thus, having the apparent objectives for advertising would be aiding the operational decision makings for programs related to advertising in efficient manner conveying the projected message to audiences (Danaher & Dagger, 2013). The companies have been investing huge amount of money in the process of marketing communication that includes advertising per year, therefore it is significant in examining and analyzing the impact it has on the firms. Researchers have long been stating the influence of advertising on the performance of the firm. This report would take into account the significance of advertising in Pizza Hut as they have been trying to use the advertising tool to the best possible use to be competitive.
The use of the advertising is efficient in boosting the performance. This is evidenced from the advertising usage and the expenditure on which it has been augmenting along the years. In Australia, most of the organizations are investing money in advertising their company’s products and services in the expectation of the consumers who will either be seeing or reading the advertisement would be reacting in a positive manner. This would in turn increase the profitability factor and the value of the firm. However, there lacks any sort of certain measurement for evaluating the effectiveness of advertising, whether it has the ability in boosting the sales of its products or in building the brand awareness. In simpler terms, with the amount of resources that is being put in for advertising, does it really has the potential of boosting up the performance of the firm which remains a big question. It needs to be ascertained whether advertising adds value to Pizza Hut, the firm under discussion. Therefore, it is imperative to investigate the efficiency of advertising on the performance of Pizza Hut in terms of profitability and value of the firm from the Australian perspective.
The study would be taking into account the informal relationship existing between the performance of Pizza Hut and the advertising in Australia. As advertising is being applied for raising the awareness among the customers, it could preserve the loyalty of the customers and help boost up the firm’s performance.
The specific objectives of the study would take in:
This current research would be dealing with the effectiveness of the advertising experienced by Pizza Hut in Australia and the organizational performance that is associated with it. This research would help in understanding the fact of the casual relationship that exists between the performance of the firm and advertising. The company along with the marketers would be able to establish the factors of advertising that would be reflecting on the performance of the firm. This study would be offering more perspectives for the firm in planning of the advertising strategies that are effective in nature for promotion of products and services.
This chapter would be taking into account the relationship between the advertising and the performance of the firm on variables such as value of the firm, profitability factor and sales. In the present scenario there has been a mounting awareness of discussing the influence of the activities related to marketing on the performance of the firm. This chapter would be reviewing briefly some of the literature related to the relationship between the advertising and the performance of firm.
The relationship existing between the expenditure of advertising and the market value of the firms in the United Kingdom have been investigated using the data of 5 years, employing the ordinary least square (OLS) model (McDuff, 2017).. It was concluded in this research study that the expenditure related to advertising are importantly associated with the augmentation in the value of the market, suggesting the fact that speculation in advertising should be capitalized and then amortized instead of being indulged as outlay items. These findings are having important insinuation in UK along with other countries like Australia where investments like R&D and advertising for the potential customary setting are generally being expensed as incurred, existing earning and shareholder equity.
According to Abraham et al., (2015), the relationship existing between the expenditure of the advertising, intangible assessment and the risk associated in stock returns of the restaurant firms within the period existing between 2002 to 2007 through employing of the hierarchical regression model to investigate the relation between the expenditure of advertising and Tobin’s Q along with the applied Ordinary Least Square (OLS) and the Weighted Least Square (WLS) regression. The researchers noted that there is a radically positive impact of advertising on the firm’s intangible value related to financial leverage, size of the firm, profitability and franchising. They also distinguished that advertising might effect on the introduction of the product, positioning and differentiation that leads to success of the restaurant firm. Restaurant firms should believe advertising as investment where the advertising campaign should be viewed positively that results in higher insubstantial value of the firms.
A study has been initiated on the connection between the advertising and expenditure on the R&D on inconsistency of the cash flow and the intangible firm worth using the data of 7 years in the United States. Johnson, (2013) engaged in a Conditional Heteroskedasticity Model and modified the panel data in relating the expenditure of the firm’s advertising and R&D to the unpredictability of the flow of the cash and the insubstantial value of firm. Their findings depicted a vital role for the firm’s advertising. They concluded with the fact that advertising influences on the cash flow variability and the value of intangibility which are different. Advertising expenditure of any firm augments the flow of cash but decreases the inconsistency of the intangible value (McDuff, 2017).. Therefore, they found that advertising soothes both the cash flow factor and the intangible value in environments that are competitive in nature.
Further investigation has been carried out by the researchers Leekha Chhabra & Sharma, (2014) for investigating the relationship existing between performance of the firm and he investment’s strength in R&D and advertising over the period extending over more than forty years. The methods that were used by the researchers were general methods of moments (GMM) regression analysis. Their findings that had positive relationship are reliable with the literature that is resource based, indicating towards investment in R&D and advertising for generating value for the firms in the horizon of one and three years. The results have been suggestive towards intensities of positive advertising and R&D for having lagged effect on the returned holdings, especially over the period of three year.
The message to be delivered across the media should be having the same effect on the frequent strategies. The target customers of the Pizza Hut are the teenagers or the younger people and the adults who are in need of the quick meal and family along with the younger children. Based on the elements, Pizza Hut would be implementing the communication strategies.
Pizza Hut’s television ad in Australia has been showing the poignant story engaging its target customers that is being related to the family relationship, inspiring the emotions within a family. Emotional ads have heightened the fact of positive feelings, attracting the thoughts of the customers on the credibility of the ads and influencing the attitude of the brand (Steenkamp, 2014). Pizza Hut also brought in the Wing street guerilla campaign that was highly successful, attracting many customers through its innovative advertising.
It has been stated that billboards, likes the ads depicted on the buses, subway ads can envelop the local numbers in the most effective of manners in broad sense. Pizza Huts can be seen on billboards that engages the targeted customer that are younger needing a quick meal.
The IMC strategy does not only focus on the conventional ads but can also be realized on to the some other channels. For instance, good sales promotion can maintain the loyalty of the customers. A series of campaigns related to its promotional activities have been employed by the Pizza Hut like sending out of the coupons and premiums. Many of the coupon books are being sent out by the promotional campaigns of Pizza Hut. Furthermore, it would be a good example in incorporating the promotion of sales with the printed media in which the consumers can unearth and obtain the coupon books on the magazines, newspaper, and print media where consumers can find and attain the coupon books on the magazines, newspapers, even the recipes at the back (Buil, De Chernatony & Martínez, 2013).. The promotional campaigns of Pizza Hut are no longer imperfect or restricted to restaurants, it is being employed by certai8n other media channels that presents the efficient IMC and expand the communication in marketing.
IMC’s responsibilities include the part of communicating with not only the target markets and the audience at large but also the external publics like the shareholders, community and the government. One of the foremost responsibility of the Public Relation members would be to release on immediate basis that is newsworthy, aiming in enhancing the positive brand image (Kumar,et al., 2016). The IMC strategy of Pizza Hut aims to attain the goals of marketing through integrating of the brand message with the compound media. All the messages along with the media has an overarching theme, having the same concept towards the targeted audience and the market. It develops the attitudes of the consumer along with loyalty, intensifying their preferences.
The following factors or reasons are why a company like Pizza Hut invests in advertising and implements the strategies in the best possible way:
The third chapter would be taking into account the research methods and the part of the data analysis. The approach being taken by the researcher on whether this research would deal with quantitative and qualitative process. Pizza Hut has got major presence across the globe in delivering quality pizzas to the customers along with experiencing high turnover. In this particular research work, the overall respondents would be 55 people among which 35 would be customers, 15 and department employees and 5 managers. Research methodology generally takes in the approach of gathering the data, method of sample and the sample size.
This research would be descriptive in nature as it would be tackling with the fact of interviewing the customers who view these ads on regular basis and the ad department people who deal with these advertisements on regular basis. This research would be dealing with both the qualitative and quantitative factors where the customers and ad department people would be asked 3 questions along with other 8 in the questionnaire.
This segment would be dealing with the dedication associated with the data collection procedure and the evaluation method associated with the same. As per O’guinn et al., (2014), the philosophy of the research can be stated as the development of the reasoning process that is logical in nature. The options associated with the factor of philosophy are generally based on the researcher’s perspective. The choice of the philosophy mainly depends on the choice of the method for a particular research study and whether it should be qualitative and quantitative in nature. This research would be taking into account the positivism approach.
The data gathering process has two procedures for data assortment. For successful completion of the research study, it is compulsory on the part of the researcher for collecting the data in the honest manner. Researcher’s use of the secondary data would be dealing with the data that is being formed previously from assured other sources. Primary research study, if being facilitated by the researcher can pursue any sort of method for conducting of the same through the analysis which might be observative or descriptive in nature. For the purpose of the secondary research, the secondary supply of the relevant information would be availed from various other sources like the newspaper, journals and the website of the company (Brexendorf, Bayus & Keller, 2015). Researcher should be able to gather data from different other sources, though presentation of the same would as per the researcher’s discretion.
The research objectives of this research study would be in attaining the objectives either through the qualitative and quantitative data. For this particular research study, the researcher would be going for qualitative and quantitative analysis in executing the requisite information for achieving the result outcomes. The primary data would be proficient through the exploits of the interview and the questionnaire.
This research study would be taking in the non-probability sampling perspective, where samples are being gathered within a process that do not provide any sort of fair chance within the existing individuals in a scrupulous population of being selected. Certain other things like money, workforce and time limits the research work making it difficult to arbitrarily sample the overall population, thus becoming significant in exploiting the several practices of sampling, the non-probabilistic sampling. In non-probability sampling, subjects are being elected based on expediency or through the judgment of the purposive individual of the researcher.
The researcher needs to safeguard the ethical considerations for performing the research study. Every company like Pizza Hut needs to come up with different but ethical advertising strategies for capturing the imagination of people. The researcher should take into account the responses of the customers and ad department people whose answers should be kept secret. The researcher should be able to keep modesty of the every possible participant that has taken an active part in the process. Secrecy has been well maintained and no relevant information related to the company would be leaked out during this research study.
This chapter is going to analyse the collected data from different data sources. It has already been mentioned in the methodology section that the data collection process for the research is going to be primary and the analysis process is going to be both quantitative and qualitative. The data collection process has been done in a statistical method. Hence there is a little down pertaining to the authenticity of it. While conducting this research different respondents have been chosen for the interview and survey process and a set of questionnaire has been designed in order to get effective response from the interviewees and the respondents. 50 respondents have been chosen who were sent email pertaining to the questionnaires. 15 different employees from Pizza hut stores in Australia have been contacted for the survey process asking them about the strategies of integrated marketing communication and POP for marketing and advertising purpose. In this regard, there is a constant understanding of the entire advertising strategies undertaken by the company. A set of ten questionnaires has been designed to address the respondents. On top of 35 chosen employees of different Pizza Hut stores there are several involvements on the matter of creating positive idea on how integrated marketing communication is planned by both the company and the brand and advertising designers.
How strong do you think the integrated marketing communication strategy of the company is?
|
Options |
Total Respondents |
Response Frequency |
Response % |
|
Very Strong |
35 |
08 |
22.85 % |
|
Strong |
35 |
16 |
45.71 % |
|
Moderate |
35 |
07 |
20 % |
|
Weak |
35 |
04 |
11.42 % |
|
Very Weak |
35 |
00 |
00 |
Table 1: Integrated Marketing Communication Strategy
The above mentioned data clearly shows that more than 50 % of the customers agree to the fact the integrated marketing communication of Pizza hut has created a positive impact upon the customers. 22.85 % and 45% of the customers strongly agreed and agreed to this fact. On the contrary, 11.42 % of the customers responded that they are not impacted upon by the IMC strategies of the company. Having understood the retrieved data it can be said that there was a positive impact of the IMC strategies upon the customers.
|
Option |
Total Respondents |
Response Frequency |
Response % |
|
Strongly Agree |
35 |
24 |
68.57 % |
|
Agree |
35 |
08 |
22.85 % |
|
Moderate |
35 |
03 |
8.57 % |
|
Disagree |
35 |
00 |
00 |
|
Strongly Disagree |
35 |
00 |
00 |
Table 2: Need for Integrated Market Strategies
Source: Created by the Author
The retrieved data clearly shows that there is a positive need of integrated marketing communication of the company. The customers feel that these strategies are really drawing their attention to the company. 68.57 % of the total respondents have strongly agreed to the fact that there is a need of implementing integrated marketing communication by the company. 22.85 % of the total respondents agreed there was a 8.5 % of moderate response to the fact.
Do you think that the company should outsource IMC activities for advancing the process?
|
Option |
Total Respondents |
Response Frequency |
Response % |
|
Strongly Agree |
35 |
15 |
42.85 % |
|
Agree |
35 |
10 |
28.57 % |
|
Moderate |
35 |
00 |
00 |
|
Disagree |
35 |
08 |
22.85 % |
|
Strongly Disagree |
35 |
02 |
5.71 % |
Table 3: Outsourcing of IMC Activities
Source: Created by the Author
With the help of the retrieved data it can be stated that there is a need of outsourcing the IMC activities as the company alone cannot take extra burden of brand and advertisement. 42.85 % of the total respondents strongly agreed to the fact that the company needs to outsource its IMC activities. 28.57 % of the total respondents agreed to the fact that the company might give it a go.
Are you asked to provide ideas pertaining to the advertising strategies for future marketing purpose?
|
Option |
Total Respondents |
Response Frequency |
Response % |
|
Strongly Agree |
35 |
00 |
00 |
|
Agree |
35 |
00 |
00 |
|
Moderate |
35 |
00 |
00 |
|
Disagree |
35 |
32 |
91.4 % |
|
Strongly Disagree |
35 |
03 |
8.57 % |
table 4: Customer Involvement
Source: Created by the Author
From the aforementioned data it can be stated that the customers are not asked for their permission when the company gets into an advertisement strategy. 91% of the respondents stated that they are not made involved during the marketing strategy process. Hence, it can be concluded that the customer involvement is not justified by the company.
Does the company focus on innovative guerrilla marketing?
|
Option |
Total Respondents |
Response Frequency |
Response % |
|
Yes |
15 |
10 |
66.6 % |
|
No |
15 |
03 |
20 % |
|
Neutral |
15 |
02 |
13.3 % |
Table 5 Guerrilla Marketing
Source: Created by the Author
With the collected data it can be stated that the company focuses on the guerrilla technique of advertisement and campaigning. 66.6 % of the advertisement and branding employees as the respondents stated that the company has positive attitudes towards the implementation of the guerrilla technique in branding and advertisement.
The qualitative data has been analysed on the basis of the interview questions pertaining to the advertisement strategy of Pizza Hut Australia. Different store managers have been interviewed in order to get a comprehensive idea pertaining to the core attributes of the company. As a matter of fact, the managers are closely associated with the effective measure about the advertisement strategies.
Response: As per the response of one of the store managers, the basic objective of the company always remains fixed and static and that is to draw maximum attention of the audience from different segments. As per the directors of the company, Pizza Hut has always been one of the most intricate companies that have focused more on the digital advertisement strategies than on the others. The strategies have remained focused on the psychological attraction of the customers and creation of perception through effective and innovative message delivering system. It has also been identified from the respondent’s point of view that Pizza Hut has different product advertisement that creates a perception upon the customers more on the product benefits.
Response: Restaurant business of Pizza Hut, according to the respondent, has approach of dualism towards customer attention. The company occupies the customer mind and perception in both positive and negative way and that is deliberate. The ad department of the company aims at creating effective attention and that could be done in any term. As a matter of fact, the restaurants are also filled with different advertising designs in order to put a positive impact upon the visiting customers thus ensuring long term effectiveness. As there is a clear understanding of the perceived idea of the advertising strategies of the company within the restaurants, there is a clear sense of effort from the company’s ad department pertaining to the implementation of proper strategies.
Response: As per the efforts from the ad designers, a positive and lucrative image is printed upon the mind of the customers through effective guerrilla marketing. Making proper channel with the help of television and radio, the company creates direct contact with the customers present in the market. For instance, with the recent collaboration with The Monkeys, Pizza Hut has tried to reach to a greater number of customers. The company also tries to develop a strong application in order to confirm ease of access on behalf of the customers. With the help of this app, the customers would feel free to track the cheapest food products and the location of the delivery person with the help of GPS tracker. Provision of app is going to help the company promote its products through constant advertising development.
Though the research has been successfully conducted there has been a certain gap in the entire process of the research. The limitations has been on the following issues;
Due to lack of proper funding, the research could not be processed to a higher level. The research needed the access of data base of the company in terms of its advertising and branding of the products. Lack of adequate fund hindered the entire process.
While conducting the research certain issues had to be taken care of. These issues pertained to the accessibility issues on the CEO meeting and appointments. Moreover, the company has certain terms on its confidentiality that was not addressed properly.
Conclusion:
With the retrieved data and its analysis, it can be stated that the restaurants have highly been impacted by strategic advertising efforts. Though the company does not indulge the customers in its advertising campaigns, there is a limitation on the acceptance of the advertisement and marketing communications by the customers. The managers have agreed to the fact that the company has been benefited by the strategic advertising campaign. The research was conducted on the basic was the response of the customers of Pizza Hut who directly experienced the advertisement and branding of the company. On the other hand, there were the employees of the ad department of the company who are responsible for strategising the the advertisement and branding of the product. As a matter of fact, the entire process was under certain change in due time. With the primary quantitative data from the customers it can be stated that the company has been highly benefited from its advertisement strategies. On the other hand, employees from the ad department have agreed to the fact that the company aims at receiving direct response from the customers. As per the discussion with the managers it has been clearly understood that the company has recently been advanced in terms of its marketing development.
References:
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ou, D. (2014). Attracting investor attention through advertising. Review of Financial Studies, hhu019.
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