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Ppcl Thailand Case Study

Decent Essays

Problem Identification
As negotiations proceed with Tricon, PPCL must determine whether or not to renew its contract and keep the Pizza Hut Brand Name. If PPCL signs the agreement, they will have no choice but to sign a non-compete clause which could be potentially damaging to its success moving forward.
Pizza Hut currently occupies the majority of the pizza market in Thailand. Whether or not the deal goes through with Tricon, PPCL must also determine how to expand the pizza category. The question they face is whether they can survive not only without the Pizza Hut brand name, but also whether they can achieve growth by expanding the pizza category in Thailand. Should PPCL cut ties with Tricon and build a new brand?
PPCL must also …show more content…

PPCL could rebrand completely or they could partner with a competitor such as Domino’s in order to maintain the cachet of a known Western brand name. With that said, it is unclear whether Domino’s failed as a result of the brand or as a result of the franchisees. PPCL may be better off using the customer information it has gathered over the past twenty years to build its own brand.
Surviving without Pizza Hut
While Pizza Hut is dominating in the Pizza segment, they only make up a small portion of the overall fast food market in Thailand. The loss of the Pizza Hut brand name could present PPCL an opportunity to reposition its offering and build a new brand from the bottom up.
PPCL has spent the last twenty years gathering information about the tastes and preferences of the customer base in Thailand. As a result, it is aware that its customers desire more flavourful food, a selection of pre-determined topping combinations and a shared dining experience. In order to appeal to a greater portion of the fast food segment in Thailand, PPCL must cater its menu to Thai tastes and preferences. It is unclear of whether the terms of the franchise agreement prevent PPCL from augmenting the menu. If they were free of the Pizza Hut brand name, they would have the freedom they would need to implement the changes necessary to expand the pizza category in Thailand.
Although losing the Pizza Hut brand name would mean losing the backing of a huge corporation, PPCL is a

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