COMPARITIVE STUDY OF MARKETING STRATEGIES OF DOMINOS AND PIZZA HUTA PROJECT REPORT ON “COMPARITIVE STUDY OF MARKETING STRATEGIES OF DOMINOS AND PIZZA HUT” PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT STUDIES, MUMBAI UNIVERSITY Submitted by: MANTHAN.S.DESAI T.Y.B.M.S [SEMESTER V] ROLL NO: 3003 UNDER GUIDANCE: (Prof. Rajesh. K) MSG 2 Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 INTRODUCTION Particulars Page No. REASONS FOR EMERGENCE MARKET SHARE AND MAJOR PLAYERS MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY CUSTOMERS CORE COMPETENCIES ACESS TO CRUCIAL RESOURCES SWOT ANALYSIS COMPETITORS CONTEXT SEGMENTATION TARGETING POSITIONING PRODUCT PLACE PRICING OF DOMINOS PRICING OF PIZZA HUT PROMOTION MARKET FEEDBACK & CONTROL MECHANISMS 3 20 21 22 ANALYSIS AND INTERPRETATION MARKET STRATEGIES SUGGESTIONS INTRODUCTION Fast food is one of the world’s largest growing food types. India’s fast food industry is growing by 40%. The multinational segment of Indian fast food industry is up to Rs 20.billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6 years, foreign investment in this sector stood Rs.3600 million which is about onefourth of the total investment made in this sector. Because of the availability of the raw material for fast food, global chains are flooding into the country. The percentage share held by foodservice of total consumer expenditure on food has increased very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sector of Indian society. The growth is neculear families, particularly in urban India, exposure to global media and western cuisine and an increasing number of women joining workforce have had an impact on eating out trends. Major players in fast food are: • • • McDonalds’’ KFC Pizza Hut 4 quality standard. service level and standardized operating procedures in their restaurant. a strength that they have develop over years of experience around the world. 5 . They are building their confidence more on ‘ready to serve and easy to eat’ kind of foods.• • • • Dominos Pizza Café coffee day Barista Subway The main reason behind the success of multinational chains is expertise in product development. REASONS FOR EMERGENCE Gender Roles: Gender roles are now changing. learnt a few things but there is still a lot of scope for improvement. They do not want to prepare food and spend their time and energy in house hold works. The home grown chains have in the past few years of competition with the MNC’ s. Females have started working outside. sourcing practices. Fast food is an easy way out because can be prepared easily. Customer sophistication and confidence: Consumers are becoming more sophisticated. So they have no time for their home and cooking food. This results into large number of fast food players in the country. The major players in the market are pizza hut and dominos whose market share are around 45% and 35% respectively. This help significantly the MNC’S to enter in the country. most of tariff and non tariff barriers from the Indian boundaries are either removed or minimized. Large population: India being the second largest country in terms of population possesses large potential market for all the products/services. with the economic liberalization in 1991. Relaxation in rules and regulations. 6 . MARKET SHARE AND MAJOR PLAYERS The organized pizza market in India is worth Rs.600 crore.Paucity of time: People have no time for cooking. Double income group: Emergence of double income group leads to increase in disposable income. Most of the time people either work or want to enjoy their family. Because of emergence of working women and also number of other entertainment items. Other players from the rest 20%. Now people hve more disposable income so they can spend easily in fast food and other activities. Chennai. etc. Bangalore.Other players mainly are: • • • • Smokin Joe’s Gracia’s Papa John’s U S Pizza These players mainly give competition to pizza hut and dominos in tier I cities like Mumbai. do not have much presence in tier II cities. MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY 7 . INDUSTRY COMPETITION In tier I city like Mumbai. pizza hut and dominos are facing a stiff competition from these providers (with respect to branded pizza) • • • • Pizza Corner Smokin Joe’s U S Pizza Gracia’s 8 . Thus pizza hut and dominos have a rethink their strategies so as to retain their customers. SUBSTITUTES There are lots of substitutes which are available to choose with respect to the fast food industry some of them are: • • Any restaurant McDonald’s 9 . They have to constantly differentiate their services from the new entrants. THREAT OF NEW ENTRANTS With the economic reforms the liberalization. dominos and pizza hut are still the major players. There are many new entrants in the branded pizza industry some of them are: • • Papa John’s Pizza U S Pizza They have captured a lot of customers with their new style and discount offer. Now the new entrants are also likely to enter the tier ii cities and make their presence. many new entrants also want the revenue of the 200 billion India fast food industry. Much young crowd flock their restaurants and their taste buds are getting modified.In tier II cities. Thus if the brand recall a particular company is good.• • • Barista Café coffee day Chinese restaurant (Mainland China) Largely it depends upon the customer what they want to have. But with the advent of the rising food costs (raw material inflation). TRENDS IN THE INDIAN MARKET 10 . they think of having pizza at least 25% of time. Higher the quality of food. Thus supplier’s muscle power grew only due to inflation. higher will be product recall and sales. competitors cannot command such lower prices. Thus the muscle power of pizza hut and dominos is way beyond the others. more people will tend to go there. Suppliers are not ready to supply item at the normal rate. Generally it is assumed that when people dine outside. Supplier’s Growing Bargaining Power Supplies till now were not a problem. service. BUYER’S BARGAINING POWER Pizza hut and dominos have higher market reach and greater visibility in the market with respect to the pizza industry and hence they command supplies at lower rate. Failing to do this will make the company into losses or to lose out in the industry. However their counterparts. Thus the company either has to increase the menucosts or reduce the operational costs to recover. They introduce varieties of things that they will attract the children attention and targeting children they automatically target their parents because children are always accompanied by their parents. Attracting Different Segments of the Market Fast food outlets are introducing varieties of product in order to cater the demand of each and every segment of the market.Marketing To Children Fast food outlets in India target children as their major customers. class. Income group etc can come and become a customer of their line. Long distances to school and work are common. They are introducing all categories of product so that people of all ages. There are increased numbers of single-parent households. this industry faces low level customer commitment. 3. Low Level Customer Commitment Because of the large number of food retail outlets and also because of the tendency of the customer to switch from one product to another. 2. Many women or both parents now work. sex. The success of fast foods arose from the changes in the economic conditions 1. 11 . happiness and convenience to the lives of our consumers by delivering delicious pizzas to their door step in 30 minutes or less.S.A. that business has grown into a global network over 8. Domino’s pizza India ltd. domino’s has developed a simple business model focused on delivery quality pizzas in a timely manner. Especially on weekdays. of U.500 pizza stores in more than 60 countries.Hari.. Over its 49-year history. According to India retail report 2009. inc. Mr.. There’s often not enough time or opportunity to shop carefully for groceries.S.Bhatia and Mr. Indian operations (DOMINOS) The domino‘s brand was found in the United States of America in 1960 by Thomas and James Monaghan. dominos are the largest pizza chain between 2006-2007 and2008-2009 in terms of number of stores. fast food outside the home is only solution. Brief history of the company.Shyam . involving over 2. Dominos pizza India has a network of 274 stores. the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary. completed its initial public offering in 2004 and is listed on the New York stock exchange. 12 . and its effort are aimed to fulfilling the commitment towards its large and ever-growing customer base. Domino’s vision is focused on “exceptional people on a mission to be the best pizza delivery company in the world!”. Moreover. Dominos committed to bringing fun. in 20 states and union territories (as on 31st August 2009).000 franchises.Bhatia of the jubilant organosys group are the promoters of the company.4. in 55 cities. of domino’s pizza international inc. Since then. Domino’s pizza. Was incorporated in March 1995as the master franchisee for India and Nepal. or to cook and eat with one’s family.S. In 1970. pizza hut was put on the New York stock exchange under the ticker symbol pizza. With 29. PepsiCo decided to spin off its restaurant business as a separate company. cakes and beverages. However.Dominos pizza constantly strives to develop products that suit the tastes of its consumer and hence delighting them. and opened the very first pizza hut. providing value for money at affordable products to the consumer has been dominos motto. They had the idea to open a pizza parlor. Indian operations (PIZZA HUT) Pizza hut was started in 1958. the company also controlled a vast network of fast-food operations that included KFC. pizza hut was serving one million customers a week in their 310 locations. Kansas.000 locations across the world. They borrowed $600 from their mother. the restaurant group was the largest in the world. Domino’s strongly believe in the strategy of ‘think global and act local’. Kansas. time and again domino’s pizza has been innovating with delicious new products such as crusts. toppings and flavors suitable to the taste buds of Indian customers. Brief history of the company. Until 1997. pastas. Ten year later. The brand positioning of khushiyon ki home delivery (happiness home delivered) is the emotional benefit dominos offer to consumers. Initiatives such as fun meal and pizza mania have been extremely popular with consumers. appetizers. pizza hut owned pizza hut. and Taco Bell. the first franchise unit opened in Topeka. Thus. 13 . by two brothers Frank and Dan Carney in Wichita. Further. In 1959. Major products they offer are pizzas. Pizza Hut. 14 . Let see listen Pizza Hut Story from them! · 1958: Frank and Dan Carney open the first Pizza Hut in Wichita. Chennai. Inc. we opened the first UK restaurant and since then we've become the biggest Pizza Company on the planet. Pune and Chandigarh amongst others. Kansas. Hyderabad. A & W and long john silver’s under its umbrella. Canada & England. In 1958. · 1973: Pizza Hut went international with restaurants in Japan. In India. including Delhi. Kolkata.500 restaurants across91 countries. which also has KFC. Taco Bell. The small 25 seat restaurant only had room for 9 letters on the sign… the building looked like a hut… so 'Pizza Hut' was born! Fifteen years later. Pizza hut is the largest pizza chain with over 12.. · 1972: 1000 restaurants are open throughout the USA. Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. London. pizza hut has 137 restaurants across 36 cities. · 1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka. · 1977: PepsiCo bought Pizza Hut. The first UK Pizza Hut opened in Islington. · 1971: Pizza Hut becomes the number one pizza restaurant chain in the world on both sales and Number of restaurants. Bangalore. Mumbai. Yum! Is in the process of opening pizza hut restaurants at many more locations to service a larger customer base across the country.Pizza hut is one of the flagship brand of Yum! Brands. · 1980: Pan Pizza was introduced. Kansas. PIZZA HUT VISION AND MISSION 15 . · 1986: By now. · 1993: There were 300 restaurants and delivery stores in the UK. As a result. · 2002: Tricon Global became YUM! Brands Inc. · 1994: 10. Pizza Hut UK Ltd was now 100% owned by Yum! · 2008: We bought Godfather's Pizza in Ireland with 28 stores. · 1987: An average of one restaurant opened each week in the UK.000 Pizza Huts were open for business. London. · 2006: Whitbread sold their share of the joint venture to Yum! Brands Inc. · 1997: PepsiCo decided to focus on their drinks business. · 1999: Pizza Hut had over 400 restaurants. · 1992: There were 9.· 1982: The UK joint venture started between PepsiCo and Whitbread. Tricon Global Restaurants Was born. · 1984: Over 50 restaurants so far in the UK.000 restaurants in 84 countries. Tricon became the partner company with whitbread. there were 100 restaurants in the UK and 5000 worldwide. · 1988: The UK's First Delivery Unit was opened in Kingsbury. employing 14000 people. creating the largest restaurant brand in the World. Over the years pizza hut has also developed and successfully introduced a range of products especially suited to the Indian palate. These products like chicken tikka. spicy korma. 16 . where it offers a jain menu sans all root-based ingredients. It includes appetizers. a range of soups. offering customers the highest value for money and giving service that is warm. In having understood the pulse of the customer in India. a salad bar – where the customers can make their own fresh salads. This is because at pizza hut the belief is that every pizza has its own magic. friendly and personal. thus making it a destination product – which everyone seeks. and the masala and tandoori pizzas and have been a tremendous success. etc. It is the belief that has ignited the passion to create. Crew members at pizza hut strive each day to provide ‘customer mania’ – the kind of service that ensures that every visit of the customer is a memorable one. the proprietary pan pizza and stuffed crust. pizza hut has come to become synonymous with the ‘best pizza under one roof’. Spicy Paneer. What has also given pizza hut a competitive edge is that in addition to an extensive range of internationally renowned pizza like the Italian. while setting standards for others to strive to replicate. A critical factor in pizza hut’s success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customer in different parts of the world. innovative and serve the finest product the industry has to offer. Pizza hut is committed for providing uncompromising product quality. it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmadabad and chowpatty. A critical factor in pizza hut’s success has been its unique dining experience.Worldwide and in India. in India the menu offers the opinion of a complete meal. Besides offering an extensive range of vegetarian pizza. pastas and deserts. pizza hut has clearly established itself as a brand with an Indian heart. Generally everyone finds the taste of pizzas to be good. Most customers in dominos are from the middle income group or students whose disposable incomes are relatively low. A hard core follower of dominos will have food from dominos only. Also the brand recall of the restaurants make a lot of difference. Their unsatisfied need is either food or enjoyment. Mostly customers come to dominos for take away pizzas while they come to pizza hut for the dining experience.CUSTOMERS Mostly customers come to Dominos for food and the others for the enjoyment as their basic requirement. General buying pattern (this data is pertaining to Mumbai city) 17 . Influence in buying pattern Buying pattern is also influenced by the preferred their choices due to their wards but mostly for single adults their choices depends upon them. Even we had food in the restaurant and we also find the taste to be great! People preferred dominos for their relatively lower price. Also the location of the restaurant makes a lot of difference as many people come to dine due its strategic location. 18 . CORE COMPETENCIES That which makes them different! Dominos Pizzas topped with cheese and happiness.e weekly once) at the same time 20%of customers have pizzas very rarely. we can interpret only 20% of customers have pizza very frequently (i.From the data. with a mission of “exceptional people on a mission to be the best pizza delivery company in the world!”. dominos is committed to put an extra smile on its customer s faces. Pizza Hut Tracing footsteps Pizza hut is akin to the Indian heart and taste buds. This. With the “palat” campaign they even nudged Indians to eat pizza backwards. The pizza’s outer crust has a stuffing of mozzarella cheese and one can run into people eating these pizzas backwards in many outlets. In addition to this. It also has a special jain friendly menu without root based ingredients and even serves salad dressings without eggs!!! Thinking out of the box was never new at pizza hut. Chicken tikkas. Surat and Mumbai’s chowpatty. they achieved through rapid Indianization of pizzas.Tracing footsteps Many pizza lovers would still remember the have that occurred in mid april 2009 in which some dull witted dominos employees. Talk about bringing changes !!! 19 . Pizza hut has been able to capture the heart and soul of Indians. pizza hut takes pride in having the only 100% vegetarian pizza hut in the world at Ahmadabad. tandoori range and spicy korma were welcomed by the pizza lovers. The vehicle for this change was the stuffed crust pizza which has become a huge hit. Pizza hut is really going global. pizza hut has introduced 30 new items on its menu for this festival season. pasta and desserts. Dreaming big Pizza hut aims to the number of one restaurant chain in India and expects a turnover of $1 billion by 2015. It organizes birthday bashes. Pizza hut express outlets were launched at malls. ACCESS TO CRUCIAL RESOURCES The players behind the scene Dominos Dominos has been voted as the best employer by leading news daily. Moreover pizza hut is not just a hangout zone for youngsters. These include beverages. The yum restaurant plans to invest $150 million in the next 5 years to expand the number of outlets to 1000 from the existing 2015. The chefs of dominos pizza India are recruited by the noida after 20 . With changing tastes of Indians and greater acceptance of international cuisines. Tuscani pasta that is truly italian is now at every pizza hut outlet. airports. kitty parties and corporate lunches. times for India for the year 2009. department stores and gas stations which offers a reduced version of the menu for globe trotters and bust bees. Dominos has been always been noted for the new item that spring up often in their menu. National level suppliers are a part of the dominos family. accountability. The customer focus is so high that they have the separate system in place to satisfy vegetarian customers. Dominos take pride in its unbeatable delivery suitable. The employees undergo extensive training to achieve technical finesse and leadership qualities. Marketing department does a careful analysis of growing demand and changing tastes and puts together the new menu that tantalises palates. Delivery within 30 minutes campaign was indeed revolutionary and is the best core competency that makes dominos pizza a better experience than anyone else in the market. The menu remains same throughout the country and so do systems and processes. Pizza hut Workforce of pizza hut is chosen with the motto “together we grow” with primary concern being quality of service. 21 . Mr. Vegetarian dishes are prepared and served using separate green spatulas. trust in people. be it in terms of delivery or quality of pizzas. says marketing head.careful evaluation. excellence. Pizza hut takes pride in walking the talk with the leadership principles of yum restaurants. These value include customer focus. Harneeth Singh. positive energy and team work. The newly chosen chefs are trained by the older and more experienced ones for a period of about 20 days. Dominos firmly believe that it is these systems and processes that enable it to get a better edge over its competitors. Employees at dominos are also smiling as they get incentives on meeting sales target and are also credited for their performance. recognition. The newest entrants into the Indian menu were stuff crust pizza and cheesy bites. It organizes birthday bashes. From the view point of a customer it is the variety and taste of pizza which is directly tied to its employees! The menu remains constant throughout the country and varieties are just added. SWOT ANALYSIS DOMINOS 22 . kitty parties and corporate lunches.Moreover pizza hut is not just a hangout zone for youngsters. Vegetables. Pizza hut considers its employees to be the greatest strength. meat and other additives are supplied by one common vendor. PIZZA HUT 23 . COMPETITORS Pizza Hut 24 The main competitors who lock horns with pizza hut are: • • • • • • • Pizza corner Dominos McDonald’s Barista Café coffee day Subway Papa John’s Dominos The major competitors of dominos are: • • • Pizza Hut Pizza corner McDonald’s 25 • • • • Barista Café coffee day Subway Papa John’s An analysis of the competitors of Dominos and Pizza Hut 26 27 Across socio cultural barriers . Thus they have adapted to Indian economy in terms of purchasing power and disposable income of middle class Indians Embracing technology Locating stores and placing orders has never been easier for pizza loyals. With their virtual role store kind website.CONTEXT Dominos Adapting to economic environment Dominos made their entry in India in 1995 when the country was marching into an era of liberalization. pizza hut offers customer a wide range of option to choose from menu and avail new offers. Dominos has 274 outlets in 55 cities across 20 states. New orders can also be ordered through mobile phones. This is the largest in terms of fast food restaurant. Dominos focuses on value to customers and offers pizzas and italian delicacies at affordable prices to middle class Indian consumers. These years marked the start of some of the greatest socio economic and cultural changes in our country. 28 . High end technologies are used at the cash counters. privatization and globalisation. Embracing technology Locating stores and placing orders has never been easier for pizza loyals. New orders can also be ordered through mobile phones. Today Bangalore alone has a striking 19 outlets which remain busy till late night. Pizza hut has 140 restaurants across 34 cities in India including metros.Dominos outlets are prevalent in every small . privatization and globalisation. pizza hut has given a new dimension to regular pizza eat-outs. pizza hut offers customer a wide range of option to choose from menu and avail new offers. The status is steadily improving as more of us embrace fast food suit the pace of our life. It was at this juncture that pizza hut made its infant steps in India.big town across the world. with its first outlet at Bangalore. Pizza Hut Adapting to economic environment In 1991 under the guidance of visionary Narasimha Rao and his comrade Manmohan Singh India marched towards a new era of liberalization. Trade barriers were eased and cultural barriers started dissolving. With its focus steadily on quality and variety. Dominos has taken cues from changing preferences tot its customers and put together a tantalizing menu that attracts foodies across the globe. High end technologies are used at the cash counters. With their virtual role store kind website. However the trifle higher prices may remain concern for middle class Indians with less purchasing power and deposable income. 29 . metros. middle class. 50+ years. Pizza hut has outlets in a better part of the world. higher class.Across socio-cultural barriers Food has no language. It has taken immense effort to cater to its customers all over the world. City – They also segment the cities as class I. Good food is appreciated across the globe. 13 to 21 years. small towns. 21 to 35 years. Psychographic: 30 . class II. 34 to 50 years. upper middle class. SEGMENTATION Dominos Geographic: Region – Pizza hut outlets in different countries is a way of segmenting their market according to region and finding out potential markets. Family Income – lower middle class. Demographic: Age – Under 13 years. medium. b2. 25 to 40 years. high class Dual income earners – yes/no 31 .economic class – urban (a1.40+ years. 10 to 18 years. b1. metros. non . high Use status – first time. c. upper middle. class II. City – They also segment the cities as class I.user Pizza Hut Geographic: Region – Pizza hut outlets in different countries is a way of segmenting their market according to region and finding out potential markets. Family Income – middle class. d) Behavioral: Loyalty status – low.18 to 25 years. Demographic: Age – Under 10 years. small towns. a2.Socio . regular. b1.Psychographic: Socio . • In psychographic segment they targeted a2. regular. non . marriages. a2.economic class – urban (a1.user TARGETING Dominos • In geographic segment they targeted countries where there were no pizza hut outlets. corporate lunches. They aim basically at the middle class. upper middle class income families. receptions Loyalty status – low. d) Behavioral: Occasions – birthdays. young adults ranging from 21 years to 35 years. 32 . b1. high Use status – first time. b2 socio – economic classes. metros and smaller towns. b2. medium. parties. • In demographic segment their main target is the teenagers and college students (13 to 21 years). Initially opened in class II cities and then have now moved to class I. c. birthday parties and business meetings in their outlets. In behavioral segmentation they targeted for occasions such as birthday bashes. The aim basically at the upper middle class and the high class income families. It was also found that they were targeting for the first time users because they felt that their quality and taste would automatically make them a loyal customer. Pizza hut also arranges kitty parties. • In psychographic segmentation they targeted at a1. When customers think of party and decide to have pizza. Pizza hut has customized birthday invites with different themes for the customers for choose and 33 . Initially opened in class I cities and then have no moved to metros. b1 socio – economic classes. POSITIONING Points of difference The major point of difference between pizza hut and dominos is that pizza hut concentrates on in – restaurant dining.• In behavioral segmentation there it was found that they were targeting the first time users and also their regular users. a2. The ambience and the décor of all pizza hut outlets are good and the outlets are spacious. pizza hut only comes into their mind. • In demographic segment their main target is the young adults ranging from 25 years to 40 years and also dual income earners family. Pizza hut • In geographic segment they targeted countries where there were no pizza hut outlets. corporate lunches. who do not bother about spending. they think of calling dominos and ordering for it because they are experts in home delivery of pizza. Irrespective of the cost. “We earn 60%of our revenue from home delivery of pizzas and 40% from the restaurant sales”. they have restaurant hostess who will assign us tables and introduce the steward who will be taking care of us. both pizza hut and dominos has to deliver or serve pizza in less time as compared to other main course food items served in other restaurants. They concentrate on turnover of covers and cater to customers who don’t have time to spend on food and just stop over for refreshment. they are not costly as pizza hut and do not offer great ambience to customers. Whenever customer wants to have pizza at home. When we visit pizza hut. coimbatore v. says Mr. Points of parity Category points of parity – the main food item that is sold in pizza hut and dominos is pizza. pizza comes under the fast food category of foods. dominos mainly looks into home delivery of pizzas and are experts in it. they have their own customers. 34 . but look for quality and personalized service.c Park outlet. the major revenue is from restaurant sales. Moreover. In case of dominos.use it as invitations. even through pizza hut is costlier than dominos.o. both the companies must be in good in speed of making and service. As we all know. Navamani. Dominos aims at fast home delivery of pizza. but offer good pizzas at nominal price. Competitive points of parity – competitive points of parity in case of pizza hut is that. In case of pizza hut. This is generally a produce that is followed in five star category hotels and pizza hut is also following is to emphasize on service quality. manager of dominos. PRODUCT DOMINOS The customer value hierarchy From the above diagram we can see that dominos has a food as a basic product but overall it provides an experience. Thus a person having a basic need of food can go to dominos 35 . This item is also perceived to be the tastiest of the lot. Product differentiation: Domino’s pizza India has maintained its position in the market with the constant product innovation and maintainance of stringent service standards. The ‘chicken wings’ items have specially struck a chord with a lot of consumers as such a kind of item is not available in any other pizza outlets. Some of the menu items are: • Pizzas 36 . range of pasta appetizers. As the name suggests ‘the pizza delivery experts’ customer can order their pizzas by calling their hotline. etc. More importantly. Also they had their promotional campaign ‘hungry kya?’ which means call up dominos if one is hungry and have the food in 30 minutes. Dominos believes strongly in the strategy of ‘think local and act regional’. Dominos differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas.and have pizza which is the company’s core product. Indecently chicken wings is a side dish. Hot pizza and good taste are his expectation. and desserts. There are quite a lot number of menu items to choose. Thus the company should ensure by providing good pizza. time and again domino’s has been innovating toppings suitable to the taste buds of local populace and this has been very well accepted by the Indian market. The value adds services refer to the overall dining experience. Pizza Features: Pizza hut many unique of their product due to which it attracts the customers. the service quality. Thus. it has established a reputation for being a home delivery specialist capable of delivering its pizza within 30 minutes to its community of loyal customers from its entire chain of stores around the country. ambience etc. cakes. the product is classified into non durable goods as it is a food item. • Pastas and salads • Appetizers • Desserts 37 . This is a unique way of offering as there are many consumers who would not afford a regular size of pizza and they can have a slice of it. All the products are produced are identical and meet the promised specifications. The most unique feature is that there is ‘single size pizza’ scheme where one can select any vegetarian / non – vegetarian pizza at lower cost. Conformance quality: Dominos product have very high conformance quality i.• Beverages Mass customization: The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. 38 . This creates variety in the customer mind and thus one can enjoy whatever pizza hut can offer.e. Service differentiation Ordering ease: Once one enters the restaurant immediately the assistants initiates the ordering process by providing the menu. The restaurant is not so aesthetically designed. The toppings in the pizzas are also dressed in good fashion. The food is good but the ambience isn’t. However they are the universal kings in serving pizzas at home. One can find that dining at dominos outlets is not that good. Delivery: Pizza hut’s style of delivering the pizza to the customer is not quite great. menus are all placed like in an normal Indian udupi restaurant. All associates are well trained in English and can take order from any customer. Dining for them comes secondary. All orders in placed in restaurant is served in 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Also discount coupons are given to the customer in case one doesn’t want a free pizza. Any pizza delivered outside 30 minutes pizza is given free. Also the tablets. Their motto is to serve the pizza at customer home. Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customer haves the food. all the staff members are dressed in a not so attractive manner. The company doesn’t give importance to improve the dining standards. Thus having ‘food quickly’ defines dominos experience.Style: Pizza is delivered in paper boxes and served in style. Product mixes: 39 . They brand their pizzas in that fashion only. These are pizzas available in the menu Margherita Cheese and tomato pizza Double cheese Margherita Fresh Veggie Country Special Farm house Pepper paneer Mexecian green wave Vegetarian extravanza Non-vegetarian extravanza Cheesy white Deluxe veggie Gourmet Cheese and barbeque chicken Barbeque chicken Spicy Chicken Chicken Mexican red wave Kheema do pyaasa Chicken golden delight Meatzaa Cheese and pepperoni The pastas and appetizers available are Cheesy white pasta Tangy red pasta Depth: Garlic bread Cheese dip The depth refers to the no. We can see that (from the menu) for each variant a vegetarian and non – vegetarian pizza are available. appetizers. 40 . beverages and deserts.Width: The company’s total width of the product mix includes pizzas. Length: The total number of items available in the company’s offerings is 29. pastas. of pizzas which are available in the variants. Cheese Pizza Eg: Tangy Red Pasta Eg: Choco Lava Cake Eg: Chicken wings. Garlic Bread Thus dominos promotes its pizza extensively and hence it forms the core product for marketing Pastas are classified as staples as they do not get promotion but they yield higher margins for the company. Thus the major chunk of profits comes from pizzas and pastas. 41 . Product line analysis: The company has a basic platform of offering pizzas and have added on different modules to meet the ever changing customer requirements. While beverages and deserts contribution towards profit is to a lesser extent Product line: Core Product Staples Specialties Convenience Item Pizza Pastas Desserts Beverages & Appetizers Eg: Pan.Consistency: The consistency of the product is the same as pizza hut operatesonly in the brand food pizza industry. Co – branding: Dominos does not have any co branding or any tie ups with banks or credit cards. Are given in a plastic pouch which the customers have to open manually. Each paper boxes are designed to deliver the branding of dominos and labeling is quite well. and chilli flakes etc. Choco Lava cake which is highly promoted so that the sales of the other items increase (birthday parties). Take away orders 42 . All ingredients pouch are also labeled.e. Plates are not provided to the customer. In house dining: In house dining. The extra ingredients like oregano mix. Convenience items are appetizers and chicken wings in which has higher margin and generally tends for impulse buying. Thus the customer can finds this quite a task to open the pouches as they are not easily removable.Specialties for pizza hut is their dessert. it serves the basic purpose of ‘serving pizza’. The main resource behind this is dominos classifies itself as a take home /order from home pizza and hence dining is not encouraged. However they promote only products of coco-cola. i. the pizzas are packed in a paper box. Packaging and labeling: The packaging of the pizza has been ordinary in the sense that. packaging the companies tries to imbibe the brand of dominos ‘pizza delivered in 30 mins’ in the minds of consumers. Pizza hut The customer value hierarchy From the above diagram we can see that pizza hut has enjoyment as a basic product but it provides food for it. Thus a person having a basic need of enjoyment can go to pizza hut and have pizza which is the company’s core product. Thus we can observe that from every labeling.They are put in a paper boxes described above our packaged into a special delivery bags are retaining the heat. Hot pizza and good taste are his expectation. Thus the company ensure this by providing good 43 . friendly and personal. range of pasta appetizers. while setting standards for other to strive to replicate. and desserts. Pizza hut is committed to providing uncompromising product quality. Product differentiation Worldwide and in India. Crew members at pizza hut strive each day to provide ‘customer mania’ – the kind of service that ensures that every visit of the customer is a memorable one. thus making it a destination product – which everyone seeks. Dominos differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas. innovative and serve the finest product the industry has to offer. etc. There are quite a lot number of menu items to choose. cakes. Pizza Features Pizza hut has many unique features of their product due to which it attracts the customers. etc. Some of the items are: • Pizzas (four different types) 44 . pizza hut has become synonymous with the ‘best pizzas under one roof’. Thus value adds service refer to the overall dining experience. The product is classified into non durable goods as it is a food item. the ambience. offering customers the highest value for money and giving service that is warm. This is at pizza hut the belief is that every pizza has its own magic. A critical factor in pizza hut’s success has been its unique dining experience. the quality service.pizza. It is this belief that has ignited the passion to create. • Pastas and salads 45 . This creates variety in the customer mind and thus one can enjoy whatever pizza hut can offer. 46 .• Appetizers • Deserts • Beverages Mass Customization The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. Delivery: Pizza hut’s style of delivering the pizza to the customer is quite an experience. All associates are well trained in English and can take order from any customer. The restaurant is aesthetically designed. Service differentiation: Ordering ease: Once one enters the restaurant immediately the assistants initiates the ordering process by providing the menu. 47 .e. Style: Pizza is delivered in hot pans and served in style.The most unique feature is that there is ‘pan 4 all’ scheme were one can select 4 different types of vegetarian / non – vegetarian combinations of pizza! This is the unique way of offering as there are many consumers who come in groups where someone in the group may want a non – vegetarian pizza can avail the offer. The toppings in the pizza are also dressed in a good fashion. all the staff members are uniquely dressed. All the products produced are identical and meet the promised specifications. Conformance Quality: Pizza hut’s product have a very high conformance quality i. Thus having ‘food in style’ defines pizza hut experience. Any pizzas delivered outside 30 minutes are given free. All orders placed in a restaurant is served within 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. This on itself is quite impressive. Product mixes: Width: The company’s total width of the product mix includes pizzas. are all placed in a good manner. Length: The total number of items available in the company’s offerings is 28 These are pizzas available in the menu Chicken ‘n’ spicy Chicken Supreme Exotica Veggie Supreme Teekha Paneer Makhani Country Feast Chicken Tikka Makhani Veggie Lovers Kadai Chicken Classic Favorite Margherita Simply Vegetarian Fiery Chicken Veggie Crunch Spicy Veggie 48 . Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customers have the food. appetizers. Also the tables.Managers dressed in special uniforms. menu. beverages and deserts. pastas. Also discount coupons are given to the customer in case of one doesn’t want a free pizza. Depth: The depth refers to the no of pizzas which are available in each variants. Thus the total length of the product is 28 which does not includes the beverages as it’s not their product. The beverages available are not of pizza hut.Paneer el rancho Kadai Paneer Chicken Hawaiian Veggie Crunch Spicy Veggie The pastas and appetizers available are Arrabbiata Spicy tomato Creamy Mushroom Spicy tomato with chicken Arrabbiata with smoked chicken Garlic bread Cheese garlic bread Garlic bread spicy supreme Garlic bread exotica • • The dessert available is choco lava cake. 49 . they have coke sprite as their beverages. We can see that (from the menu) for each variant a vegetarian and a non – vegetarian pizza are available. Cheese Pizza Eg: Arrabbiata Eg: Truffle Cake Eg: Pepsi. Product line analysis: The company has a basic platform of offering pizzas and have added on different modules to meet the ever changing customer requirements. Garlic Bread 50 .Consistency: The consistency of the product is the same as pizza hut operates only in the branded food pizza industry. Product line: Core Product Staples Specialties Convenience Item Pizza Pasta Desserts Beverages & Appetizers Eg: Pan. Thus the major chunk of profits comes from pizzas and pastas. While beverages and deserts contribution towards profit is to a lesser extent. However this offer is only for the in dining i. Truffle cake which is highly promoted so that the sales of the other items increase (birthday parties). • Specialties for pizza hut is their dessert. Convenience items are appetizers which have a higher margin and generally tends for impulse buying. Co-branding: Pizza hut has joint hands with visa for availing various offers. Thus visa and pizza hut assist each other for branding themselves. A visa credit card holder can avail offers like family meal for a lower cost and select other combinations of items which would have not been possible otherwise. one cannot avail offers pertaining to visa for take away and home orders. Packaging and labeling: The packaging of pizza has been quite extraordinary in the sense that.• Thus pizza hut promotes its pizza extensively and hence it forms the core product for marketing. it serves the basic purpose of ‘serving hot tasty pizza’ In house dining: 51 . i.e.e. • Pastas are classified as staples as they do not get promotion but they yield higher margins for the company. chilli flakes etc. PLACE Once the product has been decided upon and the market segmented. The extra ingredients like oregano mix. The extra ingredients like oregano mix. This is done through marketing channels that makes the product availablefor consumption to the customer. packing the company tries to imbibe the brand of pizza hut in the minds of consumer. instead they are served in hot pans.In house dining. chilli flakes etc. it is time to decide how and where the marketer can deliver (product) to the customer. Thus the customer can easily pour the ingredients in the pizza. Also there is a plastic support given (it’s in the shape of tripod) at the bottom of the pizza to prevent it from sticking at the bottom. and plates are provided to the customers. A pizza hut logo is also given in the tripod. GLOBALLY LOCATIONS The Globally Locations of the Pizza Hut in the world are 52 . the pizzas are not packed. Home delivery orders: All the pizzas covered in the paper boxes described above are packaged into a special delivery bags for retaining the heat. Thus we can observe that from every labeling. Are given in a paper pouch which is also branded with the pizza hut logos. Take away orders: They are put in a paper box neatly with pizza hut brand logo. Are kept in a bottle having pores. target and the product positioned. the manufacturer uses advertising. In a pull strategy. money or other means to induce intermediaries to carry promote and sell its product to end users. trade promotion. thus introducing the intermediaries to order it. promotion and other forms of communication to persuade the customer to demand the product from intermediaries. 53 . the manufacturer uses his sales force.following. Push and Pull strategies in channel marketing: In a push strategy. Domino’s: pursuing a push strategy Dominos pursues a medium push strategy in its channel marketing. festival offers. I pioneered the practice of advertising and promotion in the fast food industry. The direct channel is also useful when there are a large number of buyers. etc. Pizza hut has mastered the art of pull strategy. Direct and Indirect channels: Direct channels: The type of distribution channel used by pizza hut is the direct channel. Pizza hut: masters at pull strategy Pizza hut follows more or less the opposite strategy. As a result. The direct channel is successful when there is an extremely large market that is geographically dispersed. but a small amount purchased by each. Pizza hut achieved this remarkable feat by adopting a different marketing strategy that involved increasing ambiences and amusement for the customers. dominos regularly introduces sell-in schemes (promotional scheme for dealers) promotional coupon. The advertising layout for domino’s is minimal in India. Dominos concentrates on incentivizing customer instead off advertising and promotion. Domino’s 54 . East – Kolkata West – Mumbai. Ahmadabad. The first Domino’s pizza store in India was opened in January 1996. Goa Pizza hut It refers to the best place to offer program. Gurgaon. Cochin. Secundabad. Faridabad.The Company was incorporated in March 1995. Pune. This site has been chosen keeping in view the following factors. Hyderabad. Amritsar. Smila. Mangalore. Dehradun. Ludhiana. in 20 states and union territories (as on 31 st August 2009).2007 and 2008 – 2009 in terms of number of stores. Agra. Secondly the catchment area is of a specified minimum size and within a given drive time to the site. Kanpur. which includes:North – Delhi. South – Chennai. Bangalore. The pizza hut Peshawar is situated out of the market area near Army Stadium and Shami road. Coimbatore. Lucknow. at New Delhi and today after fourteen years Domino’s Pizza India has grown into a countrywide network of over 274 outlets in 55 cities. Pizza hut uses three different methods of selling its products directly to the market. That is the place where it is located and through what channels are we distributing programs and the competitive advantage lies in distribution. According to the Indian Retail Report 2009. Manipal. Mussoorie. Jallandhar. Chandigarh. we are the largest pizza chain in India and fastest growing multinational fast food chain between 2006 . It is in an out of centre location on retail or Leisure Park with good parking accessibility. Noida. 55 . The third method of distribution is to order online. Selective County Customers can now go on the Internet and place an order for Pizza. salads and appetizers in a fun. place an order and the order is delivered to the customer’s home. Another method of distribution is for customers to dine-in. Office delivery. Pizza hut offers a clean place to sit down and enjoy the variety of pizzas. Indirect channels: Indirect channels consist of one or more intermediaries between the manufacturer and the final customer. Customers can go to the nearest pizza hut place an order and either leave with the order or eat at the restaurant. customers can call pizza hut ahead of time. The method is useful because it allows customer to view the entire menu. In india both Domino’s and Pizza hut do not introduce any indirect channel. family atmosphere. download any special coupons.The first method of distribution used by pizza hut is Home. Company Raw material from warehouse Dealer 56 . and order without having to disclose any credit card numbers. One of Pizza Hut’s largest competitive advantages is its restaurant style facility. The fast food industry too follows this method. selling to different consumer segments through different channels.Consumer PIZZA HUT’S IN INDIA Single and multiple channels: Most organizations today employ multichannel marketing i.e. Channel length: 57 . For instance. Domino’s sourced its Pepperoni and Jalapeno needs from Australia and Spain respectively. PRICING OF DOMINOS Indians are value – sensitive. However Domino’s and Pizza Hut were concentrating on data base marketing and below-theline activities and special offers. The price was attributed to the high quality of ingredients used. The demand was overwhelming and the company sold close to 5000 pizzas in the first week of its launch. During late 1998. based on the target consumer. both Domino’s and Pizza Hut were trying to lure the customers with discount coupons by issuing such coupons through several schemes. 58 . Dominos introduced the Pizza Mania scheme where it offered a large pizza for Rs 129/-.Channel length refers to the number of channel intermediaries between the manufacturer and the end user in the fast food industry. However with competition increasing from Pizza Hut. In India Domino’s is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. 59 . Those people are eager to go for a outing in any festival and as a cheap family restaurant Dominos would be most preferable. Domino’s do not have any fixed customer though they are one of the main competitors of the Pizza hut. They do not need high class ambiences or amusement in the shop so the establish cost is low for the dealers and the price of pizza is very reasonable for the customer. PRICING OF PIZZA HUT In the past. Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. the pizza franchise is able to produce more variety in the food delivered to its customer at their door steps. but also promote frequent 60 . Mainly offers are more attractive for Domino’s. This means charge of one pizza will be just Rs 45/-. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition. Through this method. This has helped the specialty food franchise to enhance the strength of its customer base. mainly student and middle class people are the main customer and they targeted that customers. Through its ‘Fun Meal for 4’ pack for Domino’s Pizza India offers for pizzas at the rate of Rs 180/-.The Dominos Pizza franchise constantly keeps on inventing ways through it can make a greater impact on the fast food market. That is how the fast food franchise came up with ‘Fun Meal for Four’ offer. the pricing strategy adopted by Pizza Hut is ‘market skimming’. The high/low pricing strategy will also creates excitement. First. They are charging higher prices due to uniqueness of the product. Pizza Hut is free to charge any price they want. The high/low pricing will also create excitement. They satisfy the target market as the food quality is worth in price paid. Customers will able to try something new when they purchase. First. The pricing strategy is not just to get the worth of quality but also to gain minimum profits before any competitor enters because then Pizza Hut will have to change its pricing strategy. This is a golden era for Pizza Hut. As there are no such competitors of Pizza Hut which could compete with the quality of pizza produced at Pizza Hut. therefore. 61 . Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. The high/low pricing strategy has several advantages. Different groups of customer are willing to pay different prices for the same product. They are imported from different countries keeping in view the best quality. the pricing strategy will help segment the market. this strategy will emphasize product and service quality. Different group of customers are willing to pay different prices for the same product. Finally. Although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality of food products are not home – produced. Pizza Hut sets a high initial price for its products to send a signal to customer that its products are quality and the service is excellent. as there are no competitors and hence.sales to lower the price below them. the pricing strategy will help segment the market. etc. pastas. beverages. IN pizza hut different types of foods are available like appetizer. Their customers are more or less fixed and they are price insensitive. They are offering an organized restaurant and demanding the higher price for the pizzas. So for the varieties kind of food the pricing strategy is different in the pizza hut. 62 . soup and salad. Pizza Hut is targeting rich and higher middle class people with a great ambiences of enjoyment and amusement.In India. Domino’s was the first one to start this facility for its customers. Ever since it was established. More importantly. which is known as marketing communication. Communication Objectives Category Need Domino’s Master Franchise Model 63 . it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. In modern marketing it is more than developing a good accessible product or exact pricing. and all its strategies are aimed to fulfilling this commitment towards its large and ever – growing customer base. Domino’s is committed for bringing fun and excitement to the lives of our customers delivering delicious pizzas to their doorstep in 30 minutes or less. In fact.PROMOTION DOMINO’S Promotion. Domino’s Pizza India has maintained its position of market leadership with its constant product innovation and maintainance of stringent service standards. isa amajor attribute for any product or service. Customers can order their pizzas by calling a single countrywide Happiness Hotline 1800-111-123. How Domino’s international bucked the trend The strong performance of Domino’s international franchises in the midst of the global economic slowdown was a widely debated topic among analysts. Brand Awareness Promotion and advertisement campaigns The pizza delivery business had traditionally been promotion driven. others believed it was a combination of aggressive marketing and the franchise model that had helped the companybuck the trend. Coupons and discounts were offered by all pizza delivery chains to woo customers.Industry analysts believe that Domino’s master franchise model was one of the reasons for its success in international market even in light of the global economic slowdown in 2008. 64 . Since its inception. The ’30 minutes promise’ In the year 1973. Domino’s has been known for its unique promotions that included fast delivery and innovations to cater to a varied palette. Domino’s began a guarantee scheme that its pizza would be delivered in 30 minutes or less of ordering failing which the customer would receive the pizza free. While some analysts believed that the recession has helped the growth of these chains due to the ‘trading down factor’ of people preferred to eat at home rather than dine out at expensive restaurants. Brand purchase intention What makes domino’s pizza better than its competitors • • • • • • • Variety of Pizza’s Services offered Quality of pizza’s Location of the Outlet Waiting time in the outlet Door step services Low pricing Developing effective communication Target to age group/class 65 . Dominos planned to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn.Brand Attitude Use of technology Online sales accounted for over 70 percent of its total sales in 2008. As far as the socio economic class is concerned.increasing middle class consumers. since Domino’s pizza are priced from about Rs. Anything which is far away from3 kms doesn’t fall in this category. They have left out the rural areas due to the low level of awareness regarding western dishes as well as typical Indian patter of eating. But 30 minutes is a very short time for a typical Dominos Pizza local delivery. 30 minutes campaign This is a campaign in which Domino’s offers its customers free Pizzas if they are not delivered in 30 minutes from the time of order.80 onwards. or it’s free. 66 . They have a store in a radius of 3 kms in metropolitan cities. 39 onwards to target the ever . Domino’s latest special offer promises a hot and piping pizza delivered on door under 30 minutes. In this category teenagers are the most affected by western culture and its eating habits. the cities where traffic congestion is a natural way of life. Domino’s has also segmented the market geographically by deciding to initially cater to only the metropolitan cities and urban areas.Domino’s target audience is a consumer who belongs to age group of 14 to 35 years from the Economic Class A or B preferably one who has been exposed to the western culture as well as western style of eating. The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70% of the total sales volume of pizzas in India. However Domino’s have now come now with pizzas ranging from Rs. They are people who are upwardly mobile and don’t mind to pay for convenience. Selling ice cream in Domino’s is also a new sales 67 . Creative strategy Latest in domino’s • Kwality wall’s ice-creams in dominos – For the first time dominos started offering ice-creams.co. Dominos start providing coke/fanta/sprite. Web coupons available at web site www. Dominos started pizza mania which starts from Rs 35 and we get the topping according to our choice. Design the communication: Message strategy Offers by dominos With every order of pizza and coke/Garlic bread sticks great a domino’s pasta for Rs. 69.with any of the pizza mania combinations.in Discount coupons are being provided with every item purchased. New schemes at regular interval of time according to the taste of the Indian customer. 39 instead of Rs. Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/.and non veg Rs 79/Get garlic bread only for only for Rs 30/.Can a Dominos pizza local delivery survive the daily traffic jams? Is the question to be asked.dominos. For Domino’s direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Communication mix Every company must follow the eight major marketing communication modes. Their taglines “The Pizza Delivery Experts” and “Hungry Kya?” are showing their focusing area in promotion. It’s all advertisement are image of core competencies. The sustainability among communication tools explains why marketing function need to be coordinated. Domino’s is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less. • Domino’s has also come up with pasta mania.promotion strategy to attract more customers in a new perceptive/innovative way. and all its strategies are aimed at fulfilling this commitment towards it large and ever – growing customer base. 68 . Advertising It reaches geographically dispersed buyers. Domino’s always search for ways to get efficiency by replacing one communication with others. Domino’s vision is focused on “Exceptional people on a mission to be the best pizza delivery company in the world!”. Events/Experiences They are sponsoring some college fest. Public Relation Domino’s constantly strives to develop products that suit the tastes of its customers. Personal Selling 69 . time and again Domino’s has been innovating toppings suitable for the taste buds of the local populance and the Indian market has very well accepted these. Thus. thereby bringing the Wow effect (the feel good factor). cultural program and promotion events throughout the country for promotion. Domino’s believes strongly in the strategy of ‘Think local and act regional’. Domino’s conduct Store Education Tour (SET) for the under privileged children time-to-time. c) They are continuously offering new incentives to the customers. Sales Promotion a) In India. b) Domino’s Pizza India also boasts about its commitment to serve its customers on time by implementing the “30 MINUTES OR FREE” service commitment. Word of mouth 70 . Thus. Domino’s has been associated with the NGO’s devoted to the cause of under privileged children’s.Domino’s constantly strive to make the company an integral part of the lives of the target audiences by getting involved with the clientele at the emotional level and building long-term relationship with them. Domino’s concentrate more on carrying out below-the-line activities in the area it serves. PIZZA HUT Promotional Strategy: Promotion is a form of cor porate communication that uses various methodsto reach a targeted audience with a certain message in order to achieve specific organizational objactives. Communication Objectives Category need Worldwide and in India. Nearly all organizations. engage in some form of promotion. promotion decisions should be made with an appreciation for how it affects other areas of the company. Low price and good behavior gave them the edge in India. In all types of industries. Consequently. Pizza Hut has come to synonymous with ‘best pizza under one roof’. Efforts may range from multinational firms spending large sums on securing high profile celebreties to serve as corporate spokespersons to the owner of a one person enterprisepassing out business cards at a localbusiness person’s meeting. whether for profit or not for profit. It is this belief 71 .This tool is very powerful for promotion in the fast food industry. This is because at Pizza Hut the belief is that every pizza has its own magic. thus making it a destination product – which everyone seeks. while setting standards for others to strive to replicate. Crew members at Pizza Hut strive each day to provide ‘customer mania’ – the kind of service that ensures that every visit of the customer is the memorable one. but also by fliers on college campuses around the country in order to reach the target market. When the first Pizza Hut restaurant opened in Bangalore the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. which is rung by customers who as they leave wish to thank the serves for yet another memorable unit. innovate and serve the finest product the industry has to offer. The main promotion is a coupon to purchase. Many customer service initiatives has been uniquely developed for India and has been greatly instrumental in building an emotional bond with the customer. While a bell hangs at each Pizza Hut restaurant. A critical factor in Pizza Hut’s success has been its unique dining experience. Pizza Hut uses many promotional strategies. • The crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. This promotion is also distributed mainly by mail. Brand Awareness • Pizza Hut was among the first multinational brands to enter the food retail sector in India.that has ignited the passion to create. • The strength of Pizza Hut’s success globally lies in a marketing strategy that builds connections with customer’s everyday in different parts of the world. 72 . those members prefer not to eat at places where meat is served. it received a phenomenal response with super star Fardeen Khan judging the show. Pizza Hut’ local menu is large as the international one. According to Pizza Hut. Offering more than the international menu International food chains typically offer only a few localized products in other parts of the world. which serve Jain menus. Pizza Hut hopes to continue this contest as a tradition for the years to follow. Brand purchase intention 73 . However. Ahmedabad and Surat. and hence Indians like local flavors.• Pizza Hut organized the Jig and Jeeto contest in Delhi for the first time. The Tandoori range of pizzas. which has developed locally. Pizza Hut has even opened two all – vegetarian restaurants in the western state of Gujarat to cater the Jain religious community. Brand Attitude International brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai). has a menu mix of over 20 percent. the Indian food heritage is very rich. who meet at a Pizza Hut restaurant in a traditional arranged marriage concept. now married. While the famous ‘Good times start with great pizzas’ slogan has been prominent in the communication. They lose their inhibitions when the pizza arrives. When the sequel went on air featuring the same couple. The most recent campaign that was launched with the introduction to the Tandoori pizzas featured a typical Indian wedding procession abandoning the bridegroom when enticed by delicious aromas from a Pizza Hut restaurant. the focus has remained on the best and most distinct pizzas. 74 .Why Pizza hut is preferred than other • • • • • • Variety of Pizza Good ambience Services offered Quality if Pizza’s Location of the Outlet Waiting time in the outlet Communication mix Advertising Pizza Hut’s communication has also always struck a chord with the Indian customer. with the girls’ father consoling her over a pizza as her bridegroom waits outside the restaurant to escort her after their wedding – the customer’s involvement was so complete that several wrote in to inquire whether the couple has children. Its very first television commercial in India featured a boy and girl. Events and Experiences Pizza hut use their events to reach to the customer and often it is used as a brand building as well as product selling. In 2000 Pizza Hut launched its innovative Pizza Pooch menu and Pizza Pooch Birthday Party package exclusively for kids in the 6-10 age groups. Which is why Pizza Hut serves not only serve our customers great food. Giving them an opportunity to showcase their talent in the Jig and Jeeto contest.Sales Promotion Pizza hut laid more emphasis on its “restaurant dining experience”. we are certain. Pizza hut localizes it menu to capture local Indian Market. It positioned itself as family restaurant as also concentrated on wooing kids. And many of Pizza Hut’s customers would. they also sing and dance for them. 75 . Public Relations In India. eating out is perceived as a form of entertainment. love to participate in this process. Direct and Interactive Promotion Pizza Hut provides many services online as Birthday reminder service – here people can save the birthday date of their friends. relatives. Personal Selling Pizza hut tries to attract the younger generation as their main market segment but they mainly target high and higher middle class customer. and pizza hut will remind you the birthday date and birthday parties discount. Thus Pizza Hut concentrates more on carrying out abovethe-line activities in the area it serves. Even customer can do online order of pizzas. Pizza hut also get benefit from it. Word of mouth It is one of the traditional promotion for any industry. They actually bother about customer’s enjoyment and food not the price. 76 . Customers can book online E-coupon and discount offer available to online customers Hot Line Number – pizza hut hot line number also provide at online which is 39883988. Papa John’s. Garcia’s) which do not exist in Coimbatore. For example. Smokin Joe’s. 77 . All the analysis is based upon the customers of Coimbatore (Tier II city) perceptions may change in different cities where the competition is more. in Mumbai this two pizza outlet faces stiff competition with other pizza companies (U S Pizza.MARKET FEEDBACK & CONTROL MECHANISMS On visiting Dominos and Pizza Hut we had the opportunity to interact with lot of customers. 78 . Dominos attract people who have a little less disposable income than the customers at Pizza Hut. These are all explained in this section. • Also a common section of customers are observed at each place.Questions pertaining to the 4p’swere asked some of the questions are as follows: 1) Do you have pizza? 2) How frequently do you like to have a pizza. Where do you like to have your pizza? 3) What is the frequency of each? 4) If yearly or rarely what are the reasons? 5) If you think of pizza which brand of pizza are you thinking of? Why? (Product recall and Brand recognition) 6) Which pizza do you prefer dominos/ pizza hut/ and any other and for what reasons? 7) Who are the principle decision makers in the buying process? 8) What is the 1st thing that comes into your mind when you hear about Dominos? 9) What are expected benefits apart from food like enjoyment service offers? 10) Suggestions if any • All the answers were noted down and analysis was made. Interestingly there were a lot of correlation between the customers o Pizza Hut and Dominos. 10% of the customers visit restaurant daily. • Coimbatore being a Tier II city also made a huge difference in the customer buying pattern. 2) Preference of crusines 79 . At the same time. ANALYSIS AND INTERPRETATION (Primary data collected from Mumbai City. This data may vary from cities) 1) How many times one visit to a restaurant? • Half of the customers visit restaurants only once in a month.• There were many such instances where people preferred their choices due to their awards. 30%of customers prefer having pizzas.Out of all the customers who dine out. 3) Frequency of having pizza 80 . Pizza sales have now grown in food market and has crossed Chinese cuisine food also which stands with 20% customer preference. weekly once). At the same time 20%of customers have pizzas very rarely.e. 4) Location Preference for having pizza MISSING PHOTO 5) Preferred Brand of Pizza 81 . we can interpret that only 20 % of customers have pizza very frequently.• From the data. (i. • 40% of pizza consumers prefer dominos where as 60%prefer Pizza Hut 6) What is the brand recall of Pizza Hut 82 . One interesting fact about pizza hut is that 10% of customers like the concept of ringing the bell kept in all pizza hut outlets as a mark of satisfied service and the stewards all together thanking them. 83 . They have positioned themselves for their unique dining experience. MARKETING STRATEGIES Overall both the companies achieve what they want to as for Dominos they have achieved in positioning themselves as the fastest serving pizza outlet and quenching the hunger. Pizza Hut has come to become synonymous with the ‘best pizza under one roof’. 7) What is the brand recall of Dominos Food quality and affordable price is what comes into the mind of 60% of Dominos customer. The enjoyment and experience factor is lesser here when compared to Pizza Hut.• Enjoyment and dining experience is the greatest factor that comes into customers mind when they think about pizza hut. Thus Pizzas from Pizza Hut casts a premium hence their customers also charges to high income groups. offering customers the highest value for money and giving service that is warm. Domino’s vision is focused on “Exceptional people on a mission to be the best pizza delivery company in the world!” Thus Dominos are able to provide good pizzas to relatively lower rate as they don’t spend much for the restaurant. • • They stress heavily on the dining experience and the ambience. Pizza Hut’s Premium price Pizza Hut is committed for providing uncompromising product quality. Dominos Brand this mainly relates to service and delivery neither they promote their in dining experience nor they spend revenue for it. Strategic Formulation Overall Cost Leadership Differentiation and Focus Thus is achieved very effectively by Dominos as they do not intend to lose their focus from delivering pizzas from home. 84 . Thus at each point company charges a premium.Thus from the market feedback. it can be seen that customers feel the same as what the company wants them to. friendly and personal. ‘Hungry Kya?’. time and again Domino’s Pizza has been innovating with delicious new products such as crusts. creating. All other activities. Dominos believe strongly in the strategy of ‘Think global and act local’. Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers. timely deliveries or more for the same price the effort of Dominos has always been directed towards making its customers happy. Pizza Hut Workforce of Pizza Hut is chosen with the motto “Together we grow” with primary concern being quality of service. be it in terms of delivery or quality of pizzas. providing value for money at affordable products to the consumers has been Dominos motto. The Brand positioning of Khushiyon ki Home Delivery (Happiness Home Delivered) is the emotional benefit Dominos offer to consumers. toppings and flavors suitable to the taste buds of Indian consumers.Creation. be it new variants. They have the maximum offers with respect to the discounts they offer throughout the year. promotion where hunger gets quelled in less than 30 minutes was a great value proposition. Delicacies that do not rip wallets have always got the crowd coming back to the Dominos although its ambience is not up to that of its competitors. Thus the customer has the maximum incentive to come back to Dominos. communicating and delivery value. great service. Further. Communication and Capturing Value Dominos Domino’s Pizza constantly strives to develop products that suit the tastes of its consumer and hence delighting them. A critical factor in Pizza Hut’s success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences o customers in different 85 . Thus. Sustaining. kitty parties and corporate lunches. Moreover Pizza Hut is not just a hangout zone for youngsters. It includes appetizers. These products like Chicken Tikka. the proprietary Pan Pizza and Stuffed Crust. so they give the selection of pizza slices of different varieties and they are clubbed together to form a single pizza. In having understood the pulse of the customers in India. Spicy Korma. It organizes birthday bashes. in India the menu offers the option of a complete meal. Thus customers are forced to maintain loyalty towards pizza hut. Spick Paneer and Masala and Tandoori pizzas have been a tremendous success. Salad Bar – where the customers can make their own fresh salads. Besides offering an extensive range of vegetarian pizzas. The company can have the maximum of the consumer surplus at the same time the consumer might feel that this was the best offer. From the menu card one can see the family size variants and the different pizza combinations in the same one pizza are all the different ways of pricing. The company attains the maximum profit in the meat items. They also have variety of combinations of menu items which a customer can choose so that the both the customer and the company can have a win-win situation. it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat later in Ahmedabad and Chowpatty. Pizza Hut has clearly established itself as a brand with an Indian Heart. pastas and desserts etc.parts of the world. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian. a range of soups. Once the customer dines / orders at home. were it offers a Jain menu and all root based ingredients. 86 . normally discount coupons are given to the customer so that so there is an incentive for the customer to order from pizza hut. building relationships and Exploiting Changing Conditions Over the years Pizza Hut has also developed a successfully introduced a range of products especially suited to the Indian palate. Pizza Hut also has a community called as ‘VIP . toppings and flavors suitable to the taste buds of Indian consumers. 87 . Rating of the Marketing Strategy • Both the companies are good in achieving their goal and are equally good in achieving what they are intend to • Tastes of pizzas of both the companies are good equally in their own sense. Also sizes of pizzas are relatively large as compared to that of Pizza Hut. Further. People tend to remember experiences more than the food. • Marketing strategy of Pizza Hut is better than the Dominos because they offer customers a holistic approach. Thus. Thus. overall Pizza Hut’s marketing strategy has an edge over Dominos. Mean while Dominos are not behind Pizza Hut in introducing local delicacies they have different menus in different cities in India. providing value for money at affordable products to the consumers has been Dominos motto. time and again Domino’s Pizza has been innovating with delicious new products such as crusts.Members’ joining this club is at no extra cost one can avail greater offers. Dominos also courier discount coupons at consumer home. The discount offers at Dominos are main incentive to build long term relationships. Domino’s believes strongly in the strategy of ‘Think global and act local’. • Pizza Hut markets their product not only as a food but as an experience which is worth enjoying. This serve as an incentive for the customers to visit Dominos time and again. kids zone etc in the restaurant. • They are way behind Pizza Hut in the dining experience. • Thus to have a greater market share and tap premium segment of the market. • Due to this a condition can occur where customers judge the quality and the taste of the pizza with respect to the restaurant environment and ambience. TV’s. • Invariably there are no discounts. Dominos provide good quality restaurants. Middle class forms the maximum population of India and reducing the costs of pizza can increase elasticity of demand greatly. or discounts if offered are very less. Some of the Dominos restaurants lack even basic amenities. Pizza Hut • • Reduce the menu costs it is way too expensive for a middle class Indian.SUGGESTIONS Dominos • The dining conditions have to be changed drastically if Dominos have to target the premium segment of customers. Thus Pizza Hut should offer more discounts to tap more customers. By doing this they can even charge a little bit more on the food items. 88 . • • There should also be provision for music. 89 . Hence they should increase their presence.• Their reach is very less as compared to Dominos (as they have only premium restaurants) which deprives are off customers from having Pizza Huts experience.
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