Pizza Hut Case AnalysisFor years now, Pizza Hut, Inc. has been a leader in the pizza industry. We have been privileged to have the opportunity to research the progress we can make to maintain this reputation. Based on our economic analysis we have decided not to launch the BIGFOOT pizza. The following provides a detailed analysis, offers alternatives to improve the Pizza Hut experience, and explains why we came to this conclusion. Economic Analysis: First, we appreciate the opportunity to have played an important role in the development of Pizza Hut's latest product, BIGFOOT. As you know, the industry's market shares have changed much more dramatically over the last five years than in recent years. Our market share has remained stagnant and sales are down 10% this year compared to last year's numbers. During the same period, Little Caesars made a strong push and continued to grow. Little Caesars' two-for-one marketing approach has been effective in infiltrating the "mom's night off" segment and is seen by customers as providing great value. This is adding direct competition to our niche market share. Little Caesars certainly isn't making strides among pizza connoisseurs, but it has effectively targeted a market where Pizza Hut doesn't currently have a strong presence. 50% to 55% of this market consists of family restaurant situations. Our marketing team has conducted multiple data analyzes on ways we can gain market share from Little Caesars within this market. After much thought and many hours of research, we have come up with a marketing plan that will potentially improve our market share. As previously presented, the new pizza presented to the public is the BIGFOOT. This product was conceived as Pizza Hut's main rebuttal to Little Caesars' two-for-one and from our regional market testing appears to have a good chance of success. BIGFOOT is priced at $7.99 because we have determined from our research that Little Caesars' target market appreciates being able to feed the entire family for less than $10. BIGFOOT is priced at $7.99 It targets lower-middle class families and will potentially win over many of Little Caesars' swing crowd customers. This is the primary economic factor because the key to reaching the target market is price.