Directorate of Distance Education

Swami Vivekananda Subharti University Meerut

Project Report
On
“COMPARITIVE STUDY OF MARKETING STRATEGIES
OF DOMINOS AND PIZZA HUT”

Masters Of Business Administration

Under Guidance: Submitted By:

Vandana Singh Rahul
Singh
M.B.A. Marketing Final Year
Enroll No-A1620157608273
 Directorate of Distance Education
Swami Vivekananda Subharti University Meerut
CERTIFICATE

Department of Management

This is to certify that the project report entitled of

“COMPARITIVE STUDY OF MARKETING STRATEGIES

OF DOMINOS AND PIZZA HUT”

Submitted by

RAHUL SINGH

In partial fulfillment of requirement for the award of the degree Of

Masters Of Business Administration

2
 ACKNOWLEDGEMENT

It is a matter of great pleasure and privilege to be able to present this dissertation

oth topic “COMPARITIVE STUDY OF MARKETING STRATEGIES OF

DOMINOS AND PIZZA HUT”

I wish to record a deep sense of respect and gratitude to my dissertation

supervisor Vandana Singh for her encouragement in course of my work. It is due to

the enduring efforts and guidance of my supervisor that ultimately made it success.

I cannot just forget the valuable opportunity given to me by Directorate of

Distance Education Swami Vivekananda Subharti University
Meerut for being able to compile and submit the dissertation report.

I acknowledge my indebtness to various authors for making their valuable work

open to be used liberally.

It is my proud privilege to express my deep sense of gratitude towards my

parents, seniors, friends, and especially to my roommates and classmates for their

support in the course of completion of the report either directly or indirectly.

I am Making this Project not only for marks but to also increase my knowledge.

Thank you

3
Serial No. Particulars Page No.
1 INTRODUCTION

4
2 REASONS FOR EMERGENCE

3 MARKET SHARE AND MAJOR PLAYERS

4 MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY

5 CUSTOMERS

6 CORE COMPETENCIES

7 ACESS TO CRUCIAL RESOURCES

8 SWOT ANALYSIS

9 COMPETITORS

10 CONTEXT

11 SEGMENTATION

12 TARGETING

13 POSITIONING

14 PRODUCT

15 PLACE

16 PRICING OF DOMINOS

17 PRICING OF PIZZA HUT

18 PROMOTION

19 MARKET FEEDBACK & CONTROL MECHANISMS

20 ANALYSIS AND INTERPRETATION

21 MARKET STRATEGIES
22 SUGGESTIONS

5
INTRODUCTION

INTRODUCTION

6
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 one-fourth 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

 Dominos Pizza

 Café coffee day

 Barista

 Subway

The main reason behind the success of multinational chains is expertise in

product development, sourcing practices, quality standard, service level and

7
standardized operating procedures in their restaurant, a strength that they have
develop over years of experience around the world. The home grown chains
have in the past few years of competition with the MNC’ s, learnt a few things but
there is still a lot of scope for improvement.

REASONS FOR EMERGENCE

8
 REASONS FOR EMERGENCE
Gender Roles:

Gender roles are now changing. Females have started working outside. So they
have no time for their home and cooking food. Fast food is an easy way out
because can be prepared easily.

Customer sophistication and confidence:

Consumers are becoming more sophisticated. They do not want to prepare food
and spend their time and energy in house hold works. They are building their
confidence more on ‘ready to serve and easy to eat’ kind of foods.

Paucity of time:

People have no time for cooking. Because of emergence of working women and also
number of other entertainment items. Most of the time people either work or want to
enjoy their family.

Double income group:

Emergence of double income group leads to increase in disposable income.

Now people hve more disposable income so they can spend easily in fast food
and other activities.
Large population:
India being the second largest country in terms of population possesses large
potential market for all the products/services. This results into large number of

9
fast food players in the country. Relaxation in rules and regulations, with the
economic liberalization in 1991, most of tariff and non tariff barriers from the
Indian boundaries are either removed or minimized. This help significantly the
MNC’S to enter in the country.

MARKET SHARE AND MAJOR PLAYERS

MARKET SHARE AND MAJOR PLAYERS

The organized pizza market in India is worth Rs.600 crore. The major players in
the market are pizza hut and dominos whose market share are around 45% and
35% respectively. Other players from the rest 20%.

10
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, Bangalore, Chennai, etc. do not have much presence in tier II
cities.

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 MAJOR FORCES SHAPING THE
TRAJECTORY
OF THE INDUSTRY

MAJOR FORCES SHAPING THE TRAJECTORY OF THE

INDUSTRY

12
 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

In tier II cities, dominos and pizza hut are still the major players.

13
 THREAT OF NEW ENTRANTS

With the economic reforms the liberalization, many new entrants also want the
revenue of the 200 billion India fast food industry.

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.
Much young crowd flock their restaurants and their taste buds are getting
modified. Now the new entrants are also likely to enter the tier ii cities and make
their presence. Thus pizza hut and dominos have a rethink their strategies so as
to retain their customers. They have to constantly differentiate their services from
the new entrants.

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

 Barista

 Café coffee day

14
 Chinese restaurant (Mainland China)

Largely it depends upon the customer what they want to have. Generally it is
assumed that when people dine outside, they think of having pizza at least 25%
of time. Thus if the brand recall a particular company is good, more people will
tend to go there. Higher the quality of food, service, higher will be product recall
and sales.

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. However their counterparts, competitors cannot command such lower
prices. Thus the muscle power of pizza hut and dominos is way beyond the
others.

Supplier’s Growing Bargaining Power

Supplies till now were not a problem. But with the advent of the rising food costs
(raw material inflation). Suppliers are not ready to supply item at the normal rate.
Thus supplier’s muscle power grew only due to inflation. Thus the company
either has to increase the menucosts or reduce the operational costs to recover.
Failing to do this will make the company into losses or to lose out in the industry.

TRENDS IN THE INDIAN MARKET

15
Marketing To Children

Fast food outlets in India target children as their major customers. 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.

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, this industry
faces low level customer commitment.

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. They are introducing all
categories of product so that people of all ages, sex, class, Income group etc
can come and become a customer of their line.

The success of fast foods arose from the changes in the economic conditions

1. Many women or both parents now work.

2. There are increased numbers of single-parent households.

3. Long distances to school and work are common.

4. There’s often not enough time or opportunity to shop carefully for

groceries, or to cook and eat with one’s family. Especially on weekdays,
fast food outside the home is only solution.

16
 Brief history of the company, Indian operations (DOMINOS)

The domino‘s brand was found in the United States of America in 1960 by
Thomas and James Monaghan. Since then, that business has grown into a
global network over 8,500 pizza stores in more than 60 countries, involving over
2,000 franchises. Over its 49-year history, domino’s has developed a simple
business model focused on delivery quality pizzas in a timely manner. Domino’s
pizza, inc., completed its initial public offering in 2004 and is listed on the New
York stock exchange.

Domino’s pizza India ltd. Was incorporated in March 1995as the master
franchisee for India and Nepal, of domino’s pizza international inc., of U.S.A.
Moreover, the company holds the master franchisee rights for Sri Lanka and
Bangladesh through its wholly owned subsidiary. Mr.Shyam .S.Bhatia and
Mr.Hari.S.Bhatia of the jubilant organosys group are the promoters of the
company.

Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and
union territories (as on 31 st August 2009). According to India retail report 2009,
dominos are the largest pizza chain between 2006-2007 and2008-2009 in terms
of number of stores.

Domino’s vision is focused on “exceptional people on a mission to be the best

pizza delivery company in the world!”. Dominos committed to bringing fun,
happiness and convenience to the lives of our consumers by delivering delicious
pizzas to their door step in 30 minutes or less, and its effort are aimed to fulfilling
the commitment towards its large and ever-growing customer base.

Dominos pizza constantly strives to develop products that suit the tastes of its
consumer and hence delighting them. Domino’s strongly believe in the strategy
of ‘think global and act local’. Thus, 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. Further, providing value for
17
money at affordable products to the consumer has been dominos motto.
Initiatives such as fun meal and pizza mania have been extremely popular with
consumers.

The brand positioning of khushiyon ki home delivery (happiness home delivered)

is the emotional benefit dominos offer to consumers.

Major products they offer are pizzas, appetizers, pastas, cakes and beverages.

Brief history of the company, Indian operations (PIZZA HUT)

Pizza hut was started in 1958, by two brothers Frank and Dan Carney in Wichita,
Kansas. They had the idea to open a pizza parlor. They borrowed $600 from
their mother, and opened the very first pizza hut. In 1959, the first franchise unit
opened in Topeka, Kansas. Ten year later, pizza hut was serving one million
customers a week in their 310 locations. In 1970, pizza hut was put on the New
York stock exchange under the ticker symbol pizza.

Until 1997, pizza hut owned pizza hut, the company also controlled a vast
network of fast-food operations that included KFC, Pizza Hut, and Taco Bell.
With 29,000 locations across the world, the restaurant group was the largest in
the world. However, PepsiCo decided to spin off its restaurant business as a
separate company.

Pizza hut is one of the flagship brand of Yum! Brands, Inc., which also has KFC,
Taco Bell, A & W and long john silver’s under its umbrella. Pizza hut is the
largest pizza chain with over 12,500 restaurants across91 countries.

In India, pizza hut has 137 restaurants across 36 cities, including Delhi, Mumbai,
Bangalore, Chennai, Kolkata, Hyderabad, Pune and Chandigarh amongst
others. Yum! Is in the process of opening pizza hut restaurants at many more
locations to service a larger customer base across the country.

18
In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita
Kansas. 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, we opened the
first UK restaurant and since then we've become the biggest Pizza Company on the
planet, Let see listen Pizza Hut Story from them!

· 1958: Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.

· 1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka,
Kansas.

· 1971: Pizza Hut becomes the number one pizza restaurant chain in the world
on both sales and Number of restaurants.

· 1972: 1000 restaurants are open throughout the USA.

· 1973: Pizza Hut went international with restaurants in Japan, Canada & England. The
first UK Pizza Hut opened in Islington, London.

· 1977: PepsiCo bought Pizza Hut.

· 1980: Pan Pizza was introduced.

· 1982: The UK joint venture started between PepsiCo and Whitbread.

· 1984: Over 50 restaurants so far in the UK.

· 1986: By now, there were 100 restaurants in the UK and 5000 worldwide.

· 1987: An average of one restaurant opened each week in the UK.

· 1988: The UK's First Delivery Unit was opened in Kingsbury, London.

· 1992: There were 9,000 restaurants in 84 countries.

· 1993: There were 300 restaurants and delivery stores in the UK.

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· 1994: 10,000 Pizza Huts were open for business.

· 1997: PepsiCo decided to focus on their drinks business. As a result, Tricon Global
Restaurants Was born, creating the largest restaurant brand in the World. Tricon
became the partner company with whitbread.

· 1999: Pizza Hut had over 400 restaurants, employing 14000 people.

· 2002: Tricon Global became YUM! Brands Inc.

· 2006: Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK
Ltd was now 100% owned by Yum!

· 2008: We bought Godfather's Pizza in Ireland with 28 stores.

PIZZA HUT VISION AND MISSION

Worldwide and in India, pizza hut has come to become synonymous with the
‘best pizza under one roof’, 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. It is the belief that has ignited the passion to create, innovative and serve
the finest product the industry has to offer, while setting standards for others to
strive to replicate.

Pizza hut is committed for providing uncompromising product quality,

offering customers the highest value for money and giving service that is warm,
friendly and personal. A critical factor in pizza hut’s success has been its unique
dining experience. 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.

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

20
of customer in different parts of the world. In having understood the pulse of the
customer in India, pizza hut has clearly established itself as a brand with an
Indian heart. Besides offering an extensive range of vegetarian pizza, it was the
first pizza chain to open a 100% vegetarian restaurant in India in Surat and later
in Ahmadabad and chowpatty, where it offers a jain menu sans all root-based
ingredients.

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, Spicy Paneer, and the masala and tandoori pizzas
and have been a tremendous success. What has also given pizza hut a
competitive edge is that in addition to an extensive range of internationally
renowned pizza like the Italian, the proprietary pan pizza and stuffed crust, in
India the menu offers the opinion of a complete meal. It includes appetizers, a
salad bar – where the customers can make their own fresh salads, a range of
soups, pastas and deserts, etc.

21
CUSTOMERS

CUSTOMERS

22
Mostly customers come to Dominos for food and the others for the enjoyment as
their basic requirement. Mostly customers come to dominos for take away pizzas
while they come to pizza hut for the dining experience. Their unsatisfied need is
either food or enjoyment.

Most customers in dominos are from the middle income group or students whose
disposable incomes are relatively low. Generally everyone finds the taste of
pizzas to be good.

Also the location of the restaurant makes a lot of difference as many people
come to dine due its strategic location. Even we had food in the restaurant and
we also find the taste to be great! People preferred dominos for their relatively
lower price.

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.

Also the brand recall of the restaurants make a lot of difference. A hard core
follower of dominos will have food from dominos only.

General buying pattern (this data is pertaining to Mumbai city)

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From the data, we can interpret only 20% of customers have pizza very
frequently (i.e weekly once) at the same time 20%of customers have pizzas very
rarely.

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CORE COMPETENCIES

25
 CORE COMPETENCIES
That which makes them different!

Dominos

Pizzas topped with cheese and happiness, dominos is committed to put an extra
smile on its customer s faces, with a mission of “exceptional people on a mission
to be the best pizza delivery company in the world!”.

Tracing footsteps

Many pizza lovers would still remember the have that occurred in mid april 2009 in
which some dull witted dominos employees.

Pizza Hut
Tracing footsteps

Pizza hut is akin to the Indian heart and taste buds. Pizza hut has been able to
capture the heart and soul of Indians. This, they achieved through rapid
Indianization of pizzas. Chicken tikkas, tandoori range and spicy korma were
welcomed by the pizza lovers. In addition to this, pizza hut takes pride in having
the only 100% vegetarian pizza hut in the world at Ahmadabad, Surat and
Mumbai’s chowpatty. It also has a special jain friendly menu without root based
ingredients and even serves salad dressings without eggs!!!
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Thinking out of the box was never new at pizza hut. With the “palat” campaign
they even nudged Indians to eat pizza backwards. The vehicle for this change
was the stuffed crust pizza which has become a huge hit. The pizza’s outer crust
has a stuffing of mozzarella cheese and one can run into people eating these
pizzas backwards in many outlets. Talk about bringing changes !!!

Pizza hut is really going global. Tuscani pasta that is truly italian is now at every
pizza hut outlet. With changing tastes of Indians and greater acceptance of
international cuisines, pizza hut has introduced 30 new items on its menu for this
festival season. These include beverages, pasta and desserts.

Pizza hut express outlets were launched at malls, airports, department stores
and gas stations which offers a reduced version of the menu for globe trotters
and bust bees.

Moreover pizza hut is not just a hangout zone for youngsters. It organizes
birthday bashes, kitty parties and corporate lunches.

Dreaming big

Pizza hut aims to the number of one restaurant chain in India and expects a
turnover of $1 billion by 2015. 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.

27
ACCESS TO CRUCIAL RESOURCES

28
 ACCESS TO CRUCIAL RESOURCES
The players behind the scene

Dominos

Dominos has been voted as the best employer by leading news daily, times for
India for the year 2009. The chefs of dominos pizza India are recruited by the
noida after careful evaluation. Employees at dominos are also smiling as they
get incentives on meeting sales target and are also credited for their
performance.

Dominos has been always been noted for the new item that spring up often in
their menu. Marketing department does a careful analysis of growing demand
and changing tastes and puts together the new menu that tantalises palates,
says marketing head, Mr. Harneeth Singh.

The menu remains same throughout the country and so do systems and
processes. National level suppliers are a part of the dominos family. Dominos
firmly believe that it is these systems and processes that enable it to get a better
edge over its competitors.

Dominos take pride in its unbeatable delivery suitable. 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.

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.
The employees undergo extensive training to achieve technical finesse and
leadership qualities. The newly chosen chefs are trained by the older and more
experienced ones for a period of about 20 days. Pizza hut takes pride in walking

29
the talk with the leadership principles of yum restaurants. These value include
customer focus, trust in people, recognition, accountability, excellence, positive
energy and team work. The customer focus is so high that they have the
separate system in place to satisfy vegetarian customers. Vegetarian dishes are
prepared and served using separate green spatulas.

Moreover pizza hut is not just a hangout zone for youngsters. It organizes
birthday bashes, kitty parties and corporate lunches.

Pizza hut considers its employees to be the greatest strength. 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.
The newest entrants into the Indian menu were stuff crust pizza and cheesy
bites.

Vegetables, meat and other additives are supplied by one common vendor.

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SWOT ANALYSIS

31
SWOT ANALYSIS

DOMINOS

32
PIZZA HUT

33
COMPETITORS

34
 COMPETITORS

Pizza Hut

The main competitors who lock horns with pizza hut are:

 Pizza corner

 Dominos

 McDonald’s

 Barista

 Café coffee day

 Subway

 Papa John’s

35
 Dominos

The major competitors of dominos are:

 Pizza Hut

 Pizza corner

 McDonald’s

 Barista

 Café coffee day

 Subway

 Papa John’s

An analysis of the competitors of Dominos and Pizza Hut

36
37
CONTEXT

38
 CONTEXT
Dominos

Adapting to economic environment

Dominos made their entry in India in 1995 when the country was marching into
an era of liberalization, privatization and globalisation. These years marked the
start of some of the greatest socio economic and cultural changes in our country.

Dominos focuses on value to customers and offers pizzas and italian delicacies
at affordable prices to middle class Indian consumers. Dominos has 274 outlets
in 55 cities across 20 states. This is the largest in terms of fast food restaurant.
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, pizza hut offers customer a wide range of
option to choose from menu and avail new offers. New orders can also be
ordered through mobile phones. High end technologies are used at the cash
counters.

Across socio cultural barriers

Dominos outlets are prevalent in every small - big town across the world.
Dominos has taken cues from changing preferences tot its customers and put
together a tantalizing menu that attracts foodies across the globe.

39
 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, privatization
and globalisation, Trade barriers were eased and cultural barriers started
dissolving. It was at this juncture that pizza hut made its infant steps in India,
with its first outlet at Bangalore. 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. With its
focus steadily on quality and variety, pizza hut has given a new dimension to
regular pizza eat-outs. However the trifle higher prices may remain concern for
middle class Indians with less purchasing power and deposable income.
The status is steadily improving as more of us embrace fast food suit the pace of
our life.

Embracing technology

Locating stores and placing orders has never been easier for pizza loyals. With
their virtual role store kind website, pizza hut offers customer a wide range of
option to choose from menu and avail new offers. New orders can also be
ordered through mobile phones. High end technologies are used at the cash
counters.

Across socio-cultural barriers

Food has no language. Good food is appreciated across the globe. Pizza hut
has outlets in a better part of the world. It has taken immense effort to cater to its
customers all over the world.

40
SEGMENTATION

41
 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.

City – They also segment the cities as class I, class II, metros, small towns.

Demographic:

Age – Under 13 years, 13 to 21 years, 21 to 35 years, 34 to 50 years, 50+ years.

Family Income – lower middle class, middle class, upper middle class, higher
class.

Psychographic:

Socio - economic class – urban (a1, a2, b1, b2, c, d)

Behavioral:

Loyalty status – low, medium, high

Use status – first time, regular, non - user

42
 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.

City – They also segment the cities as class I, class II, metros, small towns.

Demographic:

Age – Under 10 years, 10 to 18 years,18 to 25 years, 25 to 40 years,40+ years.

Family Income – middle class, upper middle, high class

Dual income earners – yes/no

Psychographic:

Socio - economic class – urban (a1, a2, b1, b2, c, d)

Behavioral:

Occasions – birthdays, corporate lunches, marriages, parties, receptions

Loyalty status – low, medium, high

Use status – first time, regular, non - user

43
TARGETING

44
 TARGETING

Dominos

 In geographic segment they targeted countries where there were no pizza

hut outlets. Initially opened in class II cities and then have now moved to class I,
metros and smaller towns.

 In demographic segment their main target is the teenagers and college

students (13 to 21 years), young adults ranging from 21 years to 35 years. They
aim basically at the middle class, upper middle class income families.

 In psychographic segment they targeted a2, b1, b2 socio – economic

classes.

 In behavioral segmentation there it was found that they were targeting the
first time users and also their regular users.

Pizza hut

 In geographic segment they targeted countries where there were no pizza

hut outlets. Initially opened in class I cities and then have no moved to metros.

 In demographic segment their main target is the young adults ranging

from 25 years to 40 years and also dual income earners family. The aim
basically at the upper middle class and the high class income families.

 In psychographic segmentation they targeted at a1, a2, b1 socio –

economic classes. In behavioral segmentation they targeted for occasions such
as birthday bashes, corporate lunches. 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.

45
 POSITIONING

POSITIONING

Points of difference

The major point of difference between pizza hut and dominos is that pizza hut
concentrates on in – restaurant dining. The ambience and the décor of all pizza
hut outlets are good and the outlets are spacious. When customers think of party
and decide to have pizza, pizza hut only comes into their mind. Pizza hut also

46
arranges kitty parties, birthday parties and business meetings in their outlets.
Pizza hut has customized birthday invites with different themes for the customers
for choose and use it as invitations. Dominos aims at fast home delivery of pizza.
Whenever customer wants to have pizza at home, they think of calling dominos
and ordering for it because they are experts in home delivery of pizza. “We earn
60%of our revenue from home delivery of pizzas and 40% from the restaurant

sales”, says Mr. Navamani, manager of dominos,

coimbatore v.o.c Park outlet. In case of pizza hut, the
major revenue is from restaurant sales.

Points of parity

Category points of parity – the main food item that is sold in pizza hut and
dominos is pizza. As we all know, pizza comes under the fast food category of
foods, both the companies must be in good in speed of making and service.
Irrespective of the cost, 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.

Competitive points of parity – competitive points of parity in case of pizza hut is

that, even through pizza hut is costlier than dominos, they have their own
customers, who do not bother about spending, but look for quality and
personalized service. When we visit pizza hut, they have restaurant hostess who
will assign us tables and introduce the steward who will be taking care of us.
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. In case of dominos, they
are not costly as pizza hut and do not offer great ambience to customers, but
offer good pizzas at nominal price. 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. Moreover, dominos mainly looks into home delivery of pizzas and
are experts in it.

47
48
PRODUCT

PRODUCT

49
DOMINOS

50
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 and have pizza which is the company’s core product. Hot pizza and good taste
are his expectation. Thus the company should ensure by providing good pizza. The
value adds services refer to the overall dining experience, the service quality, ambience
etc.

Product differentiation:

Domino’s pizza India has maintained its position in the market with the constant product
innovation and maintainance of stringent service standards. More importantly, 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. As the name suggests ‘the pizza delivery experts’ customer
can order their pizzas by calling their hotline. Dominos believes strongly in the strategy
of ‘think local and act regional’. Thus, 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. Also they had their promotional campaign ‘hungry kya?’
which means call up dominos if one is hungry and have the food in 30 minutes.

Pizza Features:

Pizza hut many unique of their product due to which it attracts the customers, the
product is classified into non durable goods as it is a food item. Dominos differentiates
itself with its competitors with respect to their wide range of offerings (menu items) one
can find besides pizzas, range of pasta appetizers, cakes, and desserts, etc. There are
quite a lot number of menu items to choose. 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. This item is also perceived to be the tastiest of the lot. Indecently
chicken wings is a side dish.

51
Some of the menu items are:

 Pizzas

 Pastas and salads

 Appetizers

 Desserts

52
 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. This creates variety in
the customer mind and thus one can enjoy whatever pizza hut can offer.

The most unique feature is that there is ‘single size pizza’ scheme where one can select
any vegetarian / non – vegetarian pizza at lower cost. 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.

Conformance quality:

Dominos product have very high conformance quality i.e. All the products are produced
are identical and meet the promised specifications.

53
Style:

Pizza is delivered in paper boxes and served in style. The toppings in the pizzas are
also dressed in good fashion. Thus having ‘food quickly’ defines dominos experience.

Service differentiation

Ordering ease:

Once one enters the restaurant immediately the assistants initiates the ordering process
by providing the menu. All associates are well trained in English and can take order from
any customer.

Delivery:

Pizza hut’s style of delivering the pizza to the customer is not quite great. The restaurant
is not so aesthetically designed; all the staff members are dressed in a not so attractive
manner. Also the tablets, menus are all placed like in an normal Indian udupi restaurant.
One can find that dining at dominos outlets is not that good. The food is good but the
ambience isn’t.
However they are the universal kings in serving pizzas at home. They brand their
pizzas in that fashion only. Their motto is to serve the pizza at customer home. Dining
for them comes secondary. The company doesn’t give importance to improve the dining
standards. 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. 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. Any pizza delivered outside 30 minutes pizza is given free.
Also discount coupons are given to the customer in case one doesn’t want a free pizza.

54
Product mixes:

Width: The company’s total width of the product mix includes pizzas, pastas,
appetizers, beverages and deserts.

Length: The total number of items available in the company’s offerings is 29.

These are pizzas available in the menu

Margherita Deluxe veggie

Cheese and tomato pizza Gourmet
Double cheese Margherita Cheese and barbeque chicken
Fresh Veggie Barbeque chicken
Country Special Spicy Chicken
Farm house Chicken Mexican red wave
Pepper paneer Kheema do pyaasa
Mexecian green wave Chicken golden delight
Vegetarian extravanza Meatzaa
Non-vegetarian extravanza Cheese and pepperoni
Cheesy white

The pastas and appetizers available are

Cheesy white pasta Garlic bread

Tangy red pasta Cheese dip

Depth:

The depth refers to the no. of pizzas which are available in the variants. We can see that
(from the menu) for each variant a vegetarian and non – vegetarian pizza are available.

55
Consistency:

The consistency of the product is the same as pizza hut operatesonly in the brand food
pizza industry.

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. Thus the major chunk of
profits comes from pizzas and pastas. While beverages and deserts contribution
towards profit is to a lesser extent

Product line:

Core Staples Specialties Convenience

Product Item

Pizza Pastas Desserts Beverages

& Appetizers

Eg: Pan, Eg: Tangy

Cheese Eg: Choco Eg: Chicken
Red Pasta
Pizza Lava Cake 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.

Specialties for pizza hut is their dessert, i.e. Choco Lava cake which is highly promoted
so that the sales of the other items increase (birthday parties).

56
Convenience items are appetizers and chicken wings in which has higher margin and
generally tends for impulse buying.

Co – branding:

Dominos does not have any co branding or any tie ups with banks or credit cards.
However they promote only products of coco-cola.

Packaging and labeling:

The packaging of the pizza has been ordinary in the sense that, it serves the basic
purpose of ‘serving pizza’.

In house dining:

In house dining, the pizzas are packed in a paper box. Plates are not provided to the
customer. The extra ingredients like oregano mix, and chilli flakes etc. Are given in a
plastic pouch which the customers have to open manually. Thus the customer can finds
this quite a task to open the pouches as they are not easily removable. The main
resource behind this is dominos classifies itself as a take home /order from home pizza
and hence dining is not encouraged.

Each paper boxes are designed to deliver the branding of dominos and labeling is quite
well. All ingredients pouch are also labeled.

Take away orders

They are put in a paper boxes described above our packaged into a special delivery
bags are retaining the heat.

Thus we can observe that from every labeling, packaging the companies tries to imbibe
the brand of dominos ‘pizza delivered in 30 mins’ in the minds of consumers.

57
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. Hot pizza and good taste are his expectation. Thus the company ensure
this by providing good pizza. Thus value adds service refer to the overall dining
experience, the quality service, the ambience, etc.

Product differentiation

Worldwide and in India, pizza hut has become synonymous with the ‘best pizzas
under one roof’. This is at pizza hut the belief is that every pizza has its own
magic, thus making it a destination product – which everyone seeks. It is this
belief that has ignited the passion to create, innovative and serve the finest
product the industry has to offer, while setting standards for other to strive to
58
replicate. Pizza hut is committed to providing uncompromising product quality,
offering customers the highest value for money and giving service that is warm,
friendly and personal. A critical factor in pizza hut’s success has been its unique
dining experience. 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.

Pizza Features

Pizza hut has many unique features of their product due to which it attracts the
customers. The product is classified into non durable goods as it is a food item.
Dominos differentiates itself with its competitors with respect to their wide range
of offerings (menu items) one can find besides pizzas, range of pasta appetizers,
cakes, and desserts, etc. There are quite a lot number of menu items to choose.

Some of the items are:

 Pizzas (four different types)

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 Pastas and salads

60
 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. This
creates variety in the customer mind and thus one can enjoy whatever pizza hut
can offer.

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.

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Conformance Quality:

Pizza hut’s product have a very high conformance quality i.e. All the products
produced are identical and meet the promised specifications.

Style:

Pizza is delivered in hot pans and served in style. The toppings in the pizza are also
dressed in a good fashion. Thus having ‘food in style’ defines pizza hut experience.

Service differentiation:

Ordering ease:

Once one enters the restaurant immediately the assistants initiates the ordering
process by providing the menu. All associates are well trained in English and can
take order from any customer.

Delivery:

Pizza hut’s style of delivering the pizza to the customer is quite an experience.
The restaurant is aesthetically designed; all the staff members are uniquely
dressed. Managers dressed in special uniforms. Also the tables, menu, are all
placed in a good manner. This on itself is quite impressive. 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. 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. Any pizzas delivered outside 30 minutes are given free. Also discount
coupons are given to the customer in case of one doesn’t want a free pizza.

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Product mixes:

Width: The company’s total width of the product mix includes pizzas, pastas,
appetizers, beverages and deserts.

Length: The total number of items available in the company’s offerings is 28

These are pizzas available in the menu

Chicken ‘n’ spicy Kadai Chicken

Chicken Supreme Classic

Exotica Favorite

Veggie Supreme Margherita

Teekha Paneer Makhani Simply Vegetarian

Country Feast Fiery Chicken

Chicken Tikka Makhani Veggie Crunch

Veggie Lovers Spicy Veggie

Paneer el rancho Veggie Crunch

Kadai Paneer Spicy Veggie

Chicken Hawaiian

The pastas and appetizers available are

Arrabbiata Garlic bread

Spicy tomato Cheese garlic bread

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 Creamy Mushroom Garlic bread spicy supreme

Spicy tomato with chicken Garlic bread exotica

Arrabbiata with smoked chicken

 The dessert available is choco lava cake.

 The beverages available are not of pizza hut, they have coke sprite as
their beverages.

Thus the total length of the product is 28 which does not includes the beverages
as it’s not their product.

Depth:

The depth refers to the no of pizzas which are available in each variants. We can
see that (from the menu) for each variant a vegetarian and a non – vegetarian
pizza are available.

Consistency:

The consistency of the product is the same as pizza hut operates only in the
branded food pizza industry.

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. Thus the major chunk of
profits comes from pizzas and pastas. While beverages and deserts contribution
towards profit is to a lesser extent.

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Product line:

Core Staples Specialties Convenience

Product Item

Pizza Pasta Desserts Beverages

& Appetizers

Eg: Pan, Eg: Eg: Truffle Eg: Pepsi,

Cheese Arrabbiata Cake Garlic
Pizza Bread

 Thus pizza hut 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.

 Specialties for pizza hut is their dessert, i.e. Truffle cake which is highly
promoted so that the sales of the other items increase (birthday parties).
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. However this offer is only
for the in dining i.e. one cannot avail offers pertaining to visa for take away and home
orders.

65
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.

Thus visa and pizza hut assist each other for branding themselves.

Packaging and labeling:

The packaging of pizza has been quite extraordinary in the sense that, it serves
the basic purpose of ‘serving hot tasty pizza’

In house dining:

In house dining, the pizzas are not packed, instead they are served in hot pans,
and plates are provided to the customers. The extra ingredients like oregano
mix, chilli flakes etc. Are kept in a bottle having pores. Thus the customer can
easily pour the ingredients in the pizza.

Take away orders:

They are put in a paper box neatly with pizza hut brand logo. 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. A pizza hut logo is also given in the tripod.
The extra ingredients like oregano mix, chilli flakes etc. Are given in a paper
pouch which is also branded with the pizza hut logos.

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, packing the company tries to imbibe the brand of pizza hut in the minds
of consumer.

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PLACE

67
 PLACE

Once the product has been decided upon and the market segmented, target and the
product positioned, it is time to decide how and where the marketer can deliver
(product) to the customer. This is done through marketing channels that makes the
product availablefor consumption to the customer.

GLOBALLY LOCATIONS

The Globally Locations of the Pizza Hut in the world are

following;

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Push and Pull strategies in channel marketing:

In a push strategy, the manufacturer uses his sales force, trade promotion,
money or other means to induce intermediaries to carry promote and sell its
product to end users.

In a pull strategy, the manufacturer uses advertising, promotion and other forms
of communication to persuade the customer to demand the product from
intermediaries, thus introducing the intermediaries to order it.

Domino’s: pursuing a push strategy

Dominos pursues a medium push strategy in its channel marketing. The

advertising layout for domino’s is minimal in India. Dominos concentrates on
incentivizing customer instead off advertising and promotion. As a result,

69
dominos regularly introduces sell-in schemes (promotional scheme for dealers)
promotional coupon, festival offers, etc.

Pizza hut: masters at pull strategy

Pizza hut follows more or less the opposite strategy. Pizza hut has mastered the
art of pull strategy. I pioneered the practice of advertising and promotion in the
fast food industry. Pizza hut achieved this remarkable feat by adopting a different
marketing strategy that involved increasing ambiences and amusement for the
customers.

Direct and Indirect channels:

Direct channels:

The type of distribution channel used by pizza hut is the direct channel. The direct
channel is successful when there is an extremely large market that is geographically
dispersed. The direct channel is also useful when there are a large number of buyers,
but a small amount purchased by each.

Domino’s

The Company was incorporated in March 1995. The first Domino’s pizza store in
India was opened in January 1996, 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, in 20 states and union territories (as on 31 st August 2009). According
to the Indian Retail Report 2009, we are the largest pizza chain in India and
fastest growing multinational fast food chain between 2006 - 2007 and 2008 –
2009 in terms of number of stores, which includes:-

North – Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar, Dehradun,

Smila, Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie.

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South – Chennai, Bangalore, Hyderabad, Coimbatore, Mangalore, Cochin,
Secundabad, Manipal.
East – Kolkata

West – Mumbai, Pune, Ahmadabad, Goa

Pizza hut

It refers to the best place to offer program. That is the place where it is located
and through what channels are we distributing programs and the competitive
advantage lies in distribution. The pizza hut Peshawar is situated out of the
market area near Army Stadium and Shami road. This site has been chosen
keeping in view the following factors. It is in an out of centre location on retail or
Leisure Park with good parking accessibility. Secondly the catchment area is of a
specified minimum size and within a given drive time to the site.

Pizza hut uses three different methods of selling its products directly to the
market.

The first method of distribution used by pizza hut is Home. Office delivery,
customers can call pizza hut ahead of time, place an order and the order is
delivered to the customer’s home.

Another method of distribution is for customers to dine-in. Customers can go to

the nearest pizza hut place an order and either leave with the order or eat at the
restaurant. One of Pizza Hut’s largest competitive advantages is its restaurant
style facility. Pizza hut offers a clean place to sit down and enjoy the variety of
pizzas, salads and appetizers in a fun, family atmosphere.

The third method of distribution is to order online. Selective County Customers

can now go on the Internet and place an order for Pizza. The method is useful
because it allows customer to view the entire menu, download any special
coupons, and order without having to disclose any credit card numbers.

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Indirect channels:

Indirect channels consist of one or more intermediaries between the

manufacturer and the final customer. In india both Domino’s and Pizza hut do not
introduce any indirect channel.

Company

Raw material from warehouse

Dealer

Consumer

PIZZA HUT’S IN INDIA

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Single and multiple channels:

Most organizations today employ multichannel marketing i.e. selling to different

consumer segments through different channels. The fast food industry too follows this
method.

Channel length:

Channel length refers to the number of channel intermediaries between the

manufacturer and the end user in the fast food industry, based on the target consumer.

73
PRICING OF DOMINOS

PRICING OF DOMINOS

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Indians are value – sensitive. The price was attributed to the high quality of
ingredients used. For instance, Domino’s sourced its Pepperoni and Jalapeno
needs from Australia and Spain respectively. However with competition
increasing from Pizza Hut, Dominos introduced the Pizza Mania scheme where it
offered a large pizza for Rs 129/-. The demand was overwhelming and the
company sold close to 5000 pizzas in the first week of its launch.

During late 1998, both Domino’s and Pizza Hut were trying to lure the customers
with discount coupons by issuing such coupons through several schemes.
However Domino’s and Pizza Hut were concentrating on data base marketing
and below-the-line activities and special offers.

75
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. Those
people are eager to go for a outing in any festival and as a cheap family
restaurant Dominos would be most preferable. 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. Domino’s do not have
any fixed customer though they are one of the main competitors of the Pizza hut.

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. Through this method, the pizza
franchise is able to produce more variety in the food delivered to its customer at
their door steps. Through its ‘Fun Meal for 4’ pack for Domino’s Pizza India offers
for pizzas at the rate of Rs 180/-. This means charge of one pizza will be just Rs
45/-. This has helped the specialty food franchise to enhance the strength of its
customer base. Mainly offers are more attractive for Domino’s, mainly student
and middle class people are the main customer and they targeted that
customers.

76
PRICING OF PIZZA HUT

77
 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 high/low retail pricing strategy allows
Pizza Hut to charge a price that is above the competition, but also promote
frequent sales to lower the price below them. The high/low pricing strategy has
several advantages. First, the pricing strategy will help segment the market.
Different group of customers are willing to pay different prices for the same
product. The high/low pricing strategy will also creates excitement. Customers
will able to try something new when they purchase.

Finally, this strategy will emphasize product and service quality. 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 such competitors of Pizza Hut which could compete with the
quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by
Pizza Hut is ‘market skimming’. Pizza Hut has adopted this pricing strategy as
they want to hold maximum share of the market by maximum profit. This is a
golden era for Pizza Hut, as there are no competitors and hence, Pizza Hut is
free to charge any price they want.

78
They are charging higher prices due to uniqueness of the product. They satisfy
the target market as the food quality is worth in price paid. 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.

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.
They are imported from different countries keeping in view the best quality.

First, the pricing strategy will help segment the market. Different groups of
customer are willing to pay different prices for the same product. The high/low
pricing will also create excitement.

In India, Pizza Hut is targeting rich and higher middle class people with a great
ambiences of enjoyment and amusement. They are offering an organized
restaurant and demanding the higher price for the pizzas. IN pizza hut different
types of foods are available like appetizer, soup and salad, beverages, pastas,
etc. So for the varieties kind of food the pricing strategy is different in the pizza
hut. Their customers are more or less fixed and they are price insensitive.

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80
 PROMOTION

PROMOTION

DOMINO’S

Promotion, which is known as marketing communication, isa amajor attribute for

any product or service. In modern marketing it is more than developing a good
accessible product or exact pricing.

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Ever since it was established, Domino’s Pizza India has maintained its position
of market leadership with its constant product innovation and maintainance of
stringent service standards. More importantly, 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. Customers can order their pizzas by calling a single
countrywide Happiness Hotline 1800-111-123. In fact, Domino’s was the first one
to start this facility for its customers.

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, and
all its strategies are aimed to fulfilling this commitment towards its large and ever
– growing customer base.

Communication Objectives

Category Need

Domino’s Master Franchise Model

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.
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. 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, others believed it was a combination of
aggressive marketing and the franchise model that had helped the companybuck
the trend.

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Brand Awareness

Promotion and advertisement campaigns

The pizza delivery business had traditionally been promotion driven. Coupons
and discounts were offered by all pizza delivery chains to woo customers. Since
its inception, Domino’s has been known for its unique promotions that included
fast delivery and innovations to cater to a varied palette.

The ’30 minutes promise’

In the year 1973, 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.

Brand Attitude

Use of technology

Online sales accounted for over 70 percent of its total sales in 2008. Dominos
planned to further exploit the increasing potential of the online medium as one of
the promotional and distributional channels in the downturn.

Brand purchase intention

What makes domino’s pizza better than its competitors

 Variety of Pizza’s

 Services offered

 Quality of pizza’s

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 Location of the Outlet

 Waiting time in the outlet

 Door step services

 Low pricing

Developing effective communication

Target to age group/class

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. They are people who are
upwardly mobile and don’t mind to pay for convenience. In this category
teenagers are the most affected by western culture and its eating habits. 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.

As far as the socio economic class is concerned, since Domino’s pizza are
priced from about Rs.80 onwards. However Domino’s have now come now with
pizzas ranging from Rs. 39 onwards to target the ever - increasing middle class
consumers.

Domino’s has also segmented the market geographically by deciding to initially

cater to only the metropolitan cities and urban areas. 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.

30 minutes campaign

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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.

They have a store in a radius of 3 kms in metropolitan cities. Anything which is

far away from3 kms doesn’t fall in this category.

Domino’s latest special offer promises a hot and piping pizza delivered on door
under 30 minutes, or it’s free. But 30 minutes is a very short time for a typical
Dominos Pizza local delivery, the cities where traffic congestion is a natural way
of life.

Can a Dominos pizza local delivery survive the daily traffic jams? Is the question
to be asked.

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. 39
instead of Rs. 69.

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/- with any of the pizza mania combinations.

Dominos start providing coke/fanta/sprite.

Dominos started pizza mania which starts from Rs 35 and we get the topping according
to our choice.
Web coupons available at web site www.dominos.co.in

Discount coupons are being provided with every item purchased.

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New schemes at regular interval of time according to the taste of the Indian customer.

Creative strategy

Latest in domino’s

 Kwality wall’s ice-creams in dominos – For the first time dominos started
offering ice-creams. Selling ice cream in Domino’s is also a new sales promotion
strategy to attract more customers in a new perceptive/innovative way.

 Domino’s has also come up with pasta mania.

Communication mix

Every company must follow the eight major marketing communication modes.

For Domino’s direct selling and interactive selling is not needed though they are
involved in internet and cable TV promotions. Domino’s always search for ways
to get efficiency by replacing one communication with others. The sustainability
among communication tools explains why marketing function need to be
coordinated.

Advertising

It reaches geographically dispersed buyers. Domino’s vision is focused on

“Exceptional people on a mission to be the best pizza delivery company in the
world!”. 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,
and all its strategies are aimed at fulfilling this commitment towards it large and
ever – growing customer base. It’s all advertisement are image of core
competencies. Their taglines “The Pizza Delivery Experts” and “Hungry Kya?”
are showing their focusing area in promotion .

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Events/Experiences

They are sponsoring some college fest, cultural program and promotion events
throughout the country for promotion.

Public Relation

Domino’s constantly strives to develop products that suit the tastes of its
customers, thereby bringing the Wow effect (the feel good factor). Domino’s
believes strongly in the strategy of ‘Think local and act regional’. Thus, 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.

Personal Selling

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

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and building long-term relationship with them. Thus, Domino’s concentrate more
on carrying out below-the-line activities in the area it serves.

Sales Promotion

a) In India, Domino’s has been associated with the NGO’s devoted to the
cause of under privileged children’s. Domino’s conduct Store Education Tour
(SET) for the under privileged children time-to-time.

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.

c) They are continuously offering new incentives to the customers .

Word of mouth

This tool is very powerful for promotion in the fast food industry. Low price and
good behavior gave them the edge in India.

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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. Nearly all organizations, whether for profit or not for
profit. In all types of industries, engage in some form of promotion.

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. Consequently, promotion decisions should be made with an
appreciation for how it affects other areas of the company.

Communication Objectives

Category need

Worldwide and in India, Pizza Hut has come to synonymous with ‘best pizza
under one roof’. 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. It is
this belief that has ignited the passion to create, innovate and serve the finest
product the industry has to offer, while setting standards for others to strive to
replicate.

Pizza Hut uses many promotional strategies. The main promotion is a coupon to
purchase. This promotion is also distributed mainly by mail, but also by fliers on
college campuses around the country in order to reach the target market.

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A critical factor in Pizza Hut’s success has been its unique dining experience.
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.

Brand Awareness

 Pizza Hut was among the first multinational brands to enter the food retail
sector in India. 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.

 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. Many customer service initiatives has been uniquely developed for
India and has been greatly instrumental in building an emotional bond
with the customer.

 The crewmembers at Pizza Hut break into a Boogie at restaurants in

Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. While
a bell hangs at each Pizza Hut restaurant, which is rung by customers
who as they leave wish to thank the serves for yet another memorable
unit.

 Pizza Hut organized the Jig and Jeeto contest in Delhi for the first time, it
received a phenomenal response with super star Fardeen Khan judging
the show. Pizza Hut hopes to continue this contest as a tradition for the
years to follow.

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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), Ahmedabad and Surat, which serve Jain menus. Pizza Hut has
even opened two all – vegetarian restaurants in the western state of Gujarat to cater the
Jain religious community, those members prefer not to eat at places where meat is
served.

Offering more than the international menu

International food chains typically offer only a few localized products in other parts of the
world. However, Pizza Hut’ local menu is large as the international one. According to
Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavors. The
Tandoori range of pizzas, which has developed locally, has a menu mix of over 20
percent.

Brand purchase intention

Why Pizza hut is preferred than other

 Variety of Pizza

 Good ambience

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 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. Its
very first television commercial in India featured a boy and girl, who meet at a Pizza Hut
restaurant in a traditional arranged marriage concept. They lose their inhibitions when
the pizza arrives. When the sequel went on air featuring the same couple, now married,
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.

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. While the famous ‘Good times
start with great pizzas’ slogan has been prominent in the communication, the focus has
remained on the best and most distinct pizzas.

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Sales Promotion

Pizza hut laid more emphasis on its “restaurant dining experience”. Pizza hut localizes it
menu to capture local Indian Market. 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. It positioned itself as family restaurant as also concentrated on wooing kids.

Public Relations

In India, eating out is perceived as a form of entertainment. Which is why Pizza Hut
serves not only serve our customers great food, they also sing and dance for them. And
many of Pizza Hut’s customers would, we are certain, love to participate in this process.
Giving them an opportunity to showcase their talent in the Jig and Jeeto contest.

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.

Direct and Interactive Promotion

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Pizza Hut provides many services online as Birthday reminder service – here people
can save the birthday date of their friends, relatives, and pizza hut will remind you the
birthday date and birthday parties discount.

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.
Even customer can do online order of pizzas.

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. They actually bother about
customer’s enjoyment and food not the price. Thus Pizza Hut concentrates more on
carrying out above-the-line activities in the area it serves.

Word of mouth

It is one of the traditional promotion for any industry. Pizza hut also get benefit from it.

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MARKET FEEDBACK & CONTROL MECHANISMS

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 MARKET FEEDBACK & CONTROL MECHANISMS

On visiting Dominos and Pizza Hut we had the opportunity to interact with lot of
customers. All the analysis is based upon the customers of Coimbatore (Tier II city)
perceptions may change in different cities where the competition is more. For example,
in Mumbai this two pizza outlet faces stiff competition with other pizza companies (U S
Pizza, Smokin Joe’s, Papa John’s, Garcia’s) which do not exist in Coimbatore.

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

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 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. These are all
explained in this section.

 Also a common section of customers are observed at each place. Dominos

attract people who have a little less disposable income than the customers at Pizza Hut.

 There were many such instances where people preferred their choices due to
their awards.

 Coimbatore being a Tier II city also made a huge difference in the customer
buying pattern.

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ANALYSIS AND INTERPRETATION

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 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. At the same time,
10% of the customers visit restaurant daily.

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 2) Preference of crusines

Out of all the customers who dine out, 30%of customers prefer having pizzas. Pizza
sales have now grown in food market and has crossed Chinese cuisine food also which
stands with 20% customer preference.

3) Frequency of having pizza

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  From the data, we can interpret that only 20 % of customers have pizza very
frequently. (i.e. weekly once). At the same time 20%of customers have pizzas
very rarely.

4) Location Preference for having pizza

Missing Photo
5) Preferred Brand of Pizza

 40% of pizza consumers prefer dominos where as 60%prefer Pizza Hut

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6) What is the brand recall of Pizza Hut

 Enjoyment and dining experience is the greatest factor that comes into
customers mind when they think about pizza hut. 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.

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 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.

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MARKETING STRATEGIES

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 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’. They
have positioned themselves for their unique dining experience.

Thus from the market feedback, it can be seen that customers feel the same as what
the company wants them to.

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.

Dominos Brand this mainly relates to service and delivery neither they promote their in
dining experience nor they spend revenue for it.

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.

Pizza Hut’s Premium price

Pizza Hut is committed for providing uncompromising product quality, offering customers
the highest value for money and giving service that is warm, friendly and personal.

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  They stress heavily on the dining experience and the ambience.

 Thus at each point company charges a premium.

Thus Pizzas from Pizza Hut casts a premium hence their customers also charges to
high income groups.

Creation, Communication and Capturing Value

Dominos

Domino’s Pizza constantly strives to develop products that suit the tastes of its
consumer and hence delighting them. Dominos believe strongly in the strategy of ‘Think
global and act local’. Thus, 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 consumers. Further, providing value for money at affordable products to the
consumers has been Dominos motto. Initiatives such as Fun Meal and Pizza Mania
have been extremely popular with consumers.

The Brand positioning of Khushiyon ki Home Delivery (Happiness Home Delivered) is

the emotional benefit Dominos offer to consumers.

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. They have the
maximum offers with respect to the discounts they offer throughout the year. Thus the
customer has the maximum incentive to come back to Dominos.

‘Hungry Kya?’, promotion where hunger gets quelled in less than 30 minutes was a
great value proposition. All other activities, be it new variants, great service, timely
deliveries or more for the same price the effort of Dominos has always been directed
towards making its customers happy, creating, communicating and delivery value.

Pizza Hut

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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.

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 parts of the world. In having understood the pulse of the customers in India,
Pizza Hut has clearly established itself as a brand with an Indian Heart. Besides offering
an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100%
vegetarian restaurant in India in Surat later in Ahmedabad and Chowpatty, were it offers
a Jain menu and all root based ingredients. Moreover Pizza Hut is not just a hangout
zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches.

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. 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, so they give the selection of pizza slices of
different varieties and they are clubbed together to form a single pizza.

Once the customer dines / orders at home, normally discount coupons are given to the
customer so that so there is an incentive for the customer to order from pizza hut. Thus
customers are forced to maintain loyalty towards pizza hut.

Sustaining, 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. These products like Chicken Tikka, Spicy
Korma, Spick Paneer and Masala and Tandoori pizzas have been a tremendous
success. What has also given Pizza Hut a competitive edge is that in addition to an
extensive range of internationally renowned pizzas like The Italian, the proprietary Pan
Pizza and Stuffed Crust, in India the menu offers the option of a complete meal. It
includes appetizers, Salad Bar – where the customers can make their own fresh salads,
a range of soups, pastas and desserts etc.

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Pizza Hut also has a community called as ‘VIP - Members’ joining this club is at no extra
cost one can avail greater offers.

Mean while Dominos are not behind Pizza Hut in introducing local delicacies they have
different menus in different cities in India.

Domino’s believes strongly in the strategy of ‘Think global and act local’. Thus, 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 consumers. Further, providing
value for money at affordable products to the consumers has been Dominos motto. Also
sizes of pizzas are relatively large as compared to that of Pizza Hut.

The discount offers at Dominos are main incentive to build long term relationships.
Dominos also courier discount coupons at consumer home. This serve as an incentive
for the customers to visit Dominos time and again.

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.
 Marketing strategy of Pizza Hut is better than the Dominos because they offer
customers a holistic approach.

 Pizza Hut markets their product not only as a food but as an experience which is
worth enjoying. People tend to remember experiences more than the food.

Thus, overall Pizza Hut’s marketing strategy has an edge over Dominos.

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SUGGESTIONS

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 SUGGESTIONS

Dominos

 The dining conditions have to be changed drastically if Dominos have to target

the premium segment of customers.

 They are way behind Pizza Hut in the dining experience. Some of the Dominos
restaurants lack even basic amenities.

 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.

 Thus to have a greater market share and tap premium segment of the market,
Dominos provide good quality restaurants.

 There should also be provision for music, TV’s, kids zone etc in the restaurant.

 By doing this they can even charge a little bit more on the food items.

Pizza Hut

 Reduce the menu costs it is way too expensive for a middle class Indian.

 Middle class forms the maximum population of India and reducing the costs of
pizza can increase elasticity of demand greatly.

 Invariably there are no discounts, or discounts if offered are very less. Thus
Pizza Hut should offer more discounts to tap more customers.

 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. Hence they should increase their presence.

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