Pizza Hut and Dominos Marketing Strategy

Marketing management - I
The brand strategy analysis exercise

In-depth comparative analysis of marketing strategies followed by
&
GROUP ASSIGNMENT SUBMITTED BYANITHA KAVERI – 09009 C.SUBBU – 09029 KARTHIK KRISH
NAN – 09049 POOJA NAIR – 09069 SANKAR RAJAN – 09091 SUMAN GHOSH – 09111
AMRITA SCHOOL OF BUSINESS, ETTIMADAI.
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Contents
INTRODUCTION.................................................................
......................................................................3 REASON
SFOREMERGENCE................................................................
....................................................4 MARKETSHAREANDMAJORP
LAYERS.........................................................................
..........................5 MAJORFORCESSHAPINGTHETRAJECTORYOFTHEINDUSTR
Y.............................................................6 CUSTOMERS...
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.......................................................12 CORECOMPETENCIES..
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.........................................13 ACCESSTOCRUCIALRESOURCES......
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....................15 SWOTANALYSIS.........................................
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...........17 COMPETITORS....................................................
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...19 CONTEXT................................................................
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21 SEGMENTATION...............................................................
.....................................................................23 TARGET
ING.............................................................................
...............................................................24 POSITIONING
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.........................................................25 PRODUCT..........
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....................................................26 PLACE.................
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...................................................40 PRICINGOFDOMINO’S....
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.....................................44 PRICINGOFPIZZAHUT.................
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.........................46 PROMOTION........................................
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.................48 MARKETFEEDBACK&CONTROLMECHANISMS.....................
..............................................................59 ANALYSISAND
INTERPRETATION.................................................................
.........................................67 MARKETINGSTRATEGIES.............
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.........................71 SUGGESTIONS......................................
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.................75 REFERENCES...............................................
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...........76
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INTRODUCTION
Fast food is one of the world’s largest growing food types. India’s fast food in
dustry 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 bil
lion by 2010. In last 6 years, foreign investment in this sector stood at rs.360
0 million which is about one-fourth of total investment made in this sector. Bec
ause of the availability of raw material for fast food, global chains are floodi
ng into the country. The percentage share held by foodservice of total consumer
expenditure on food has increased from a very low base to stand at 2.6% in 2001.
Eating at home remains very much ingrained in Indian culture and changes in eat
ing habits are very slow moving with barriers to eating out entrenched in certai
n sectors of Indian society. The growth in nuclear families, particularly in urb
an India, exposure to global media and western cuisine and an increasing number
of women joining the workforce have had an impact on eating out trends.
Major players in fast food are: • • • • • • • McDonalds’ KFC Pizza hut Dominos p
izza Café coffee day Barista Subway
The main reason behind the success of the multinational chains is their expertis
e in product development, sourcing practices, quality standards, service levels
and standardized operating procedures in their restaurants, a strength that they
have developed 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 b
ut there is still a lot of scope for improvement. *Extract taken from a study of
Indian retail food sector
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REASONS FOR EMERGENCE
Gender roles: gender roles are now changing. Females have started working outsid
e. So, they have no time for their home and cooking food. Fast food is an easy w
ay out because these can be prepared easily. Customer sophistication and confide
nce: Consumers are becoming more sophisticated now. They do not want to prepare
food and spend their time and energy in house hold works. They are building thei
r confidence more on ‘ready to eat and easy to serve’ kind of foods Paucity of t
ime: People have no time for cooking. Because of emergence of working women and
also number of other entertainment items. Most of the time either people work or
want to enjoy with their family. Double income group: Emergence of double incom
e group leads to increase in disposable income. Now people have more disposable
income so they can spend easily in fast food and other activities. Large populat
ion: India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of larg
e number of fast food players in the country. Relaxation in rules and regulation
s, with the economic liberalization of 1991, most of the tariff and non tariff b
arriers from the Indian boundaries are either removed or minimized. This helped
significantly the MNC’s to enter in the country.
*Extract taken from economic reforms in India
4
MARKET SHARE AND MAJOR P E M PLAYERS S
ganized pizz market in India is w za n worth Rs.60 Crore. Th major players in th
e market 00 he e The org are pizz hut and d za dominos wh hose market share are
ar round 45% and 35% re espectively. Other p players form the rest 20 m 0%
Brande edPizza aMarke etShare
Others s PizzaHut Pizzahut Dominos Do ominos Ot thers
Other p players main are nly • • • • Smokin joe e’s Garcia’s Papa john’s s Us pi
zza
ese ve tion to pizz hut and dominos i tier I cit za in ties like The players mai
nly giv competit Mum mbai, Bang galore, Chen etc. They do not ha much p nnai ave
presence in t ii cities tier
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MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY
New Entrants
Supplier Power
Industry Competitiors
Buying Power
Substitutes
Industry competition In tier I city like Mumbai, pizza hut and dominos are facin
g a stiff competition from these providers (with respect to branded pizzas) • •
• • Pizza corner Smokin joe’s Us pizza Garcia’s
In tier II cities, dominos and pizza hut are still the major players.
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Threat of new entrants With the economic reforms and liberalization, many new en
trants also want the revenue of the 200 billion Indian fast food industry. There
are many new entrants in the branded pizza industry some of them are • • Papa j
ohn’s pizza Us pizza
They have captured a lot of customers with their new style and discount offers.
Much young crowd flock their restaurants and their taste buds are getting modifi
ed. Now the new entrants are also likely to enter the tier ii cities and make th
eir presence. Thus pizza hut and dominos have to rethink their strategies so as
to retain their customers. They have to constantly differentiate their services
from the newer entrants
Substitutes There are lots of substitutes which are available to choose with res
pect to the fast food industry some of them are • • • • • Any restaurant Mcdonal
d’s Barista Cafe coffee day Chinese restaurants ( mainland china)
Largely it depends upon the customers what they want to have. Generally it is as
sumed that when people dine outside, they think of having pizza at least 25% of
time*. Thus if the brand recall of a particular company is good, more people wil
l tend to go there. Higher the quality of food, service, higher will be product
recall and sales
* This information is obtained from the primary data
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Buyer’s bargaining power Pizza hut and dominos have higher market reach and grea
ter visibility in the market with respect to the pizza industry and hence they c
ommand supplies at lower rate. However their counterparts, competitors cannot co
mmand such lower prices. Thus the muscle power of pizza hut and dominos is way b
eyond 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 items at the normal rate. Thus supplier’s m
uscle power grew only doe to inflation. Thus the company either has to increase
the menu costs or reduce the operational costs to recover. Failing to do this wi
ll make the company into losses or to lose out in the industry. Trends in the In
dian market Marketing to children Fast food outlets in India target children’s a
s their major customers. They introduce varieties of things that will attract th
e children’s attention and by targeting children’s they automatically target the
ir parents because children’s 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 customer to switch from one product to other, this i
ndustry faces low level customer commitment. Attracting different segments of th
e market Fast food outlets are introducing varieties of products in order to cat
er the demands of each and every segment of the market. They are introducing all
categories of product so that people of all age, sex, class, income group etc c
an come and become a customer of their food line.
8
The success of fast foods arose from the changes in the economic conditions 1. M
any women or both parents now work 2. There are increased numbers of single-pare
nt households 3. Long distances to school and work are common 4. There s often n
ot enough time or opportunity to shop carefully for groceries, or to cook and ea
t with one s family. Especially on weekdays, fast food outside the home is the o
nly solution
Brief history of the company, Indian operations (dominos) The domino’s brand was
founded in the united states of America in 1960 by Thomas and James Monaghan. S
ince then, that business has grown into a global network of over 8,500 pizza sto
res 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 delivering q
uality pizzas in a timely manner. Domino’s pizza, inc., completed its initial pu
blic offering in 2004 and is listed on the New York stock exchange. (source:domi
no’s pizza, inc.) Domino s pizza India ltd. was incorporated in March 1995 as th
e master franchisee for India and Nepal, of domino s pizza international inc., o
f 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.Har
i.S.Bhartia of the jubilant organosys group are the promoters of the company. Do
minos pizza India has a network of 274 stores, in 55 cities, in 20 states and un
ion territories (as on 31st august 2009). According to the India retail report 2
009,dominos are the largest pizza chain in India and the fastest growing multina
tional fast food chain between 2006-2007 and 2008-2009 in terms of number of sto
res. Domino s vision is focused on " exceptional people on a mission to be the b
est pizza delivery company in the world! ". Domino s is committed to bringing fu
n, happiness and convenience to the lives of our consumers by delivering delicio
us pizzas to their doorstep in 30 minutes or less, and its efforts are aimed at
fulfilling this commitment towards its large and evergrowing customer base. Domi
no s pizza constantly strives to develop products that suit the tastes of its co
nsumers and hence delighting them. Domino s believes strongly in the strategy of
think global and act local’. Thus, time and again domino s pizza has been inno
vating with delicious new products
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such as crusts, toppings and flavors suitable to the taste buds of Indian consum
ers. 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 e
xtremely popular with consumers. The brand positioning of khushiyon ki home deli
very (happiness home delivered) is the emotional benefit dominos offer to consum
ers. Major products they offer are pizzas, appetizers, pastas, cakes and beverag
es. Brief history of the company, Indian operations (pizza hut) Pizza hut was st
arted in 1958, by two brothers frank and dan carney in wichita, kansas. They had
the idea to open a pizza parlour. They borrowed $600 from their mother, and ope
ned the very first pizza hut. In 1959, the first franchise unit opened in topeka
, kansas. Ten years 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 piz. Until 1997, pepsi 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 b
usiness as a separate company. Pizza hut is one of the flagship brands of yum! B
rands, inc., which also has kfc, taco bell, a&w and long john silver’s under its
umbrella. Pizza hut is the world’s largest pizza chain with over 12,500 restaur
ants across 91 countries In India, pizza hut has 137 restaurants across 36 citie
s, including delhi, mumbai, bangalore, chennai, kolkata, hyderabad, pune, and ch
andigarh 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 Piz
za hut vision and mission Worldwide and in India, pizza hut has come to become s
ynonymous with the ‘best pizzas under one roof’. This is because at pizza hut th
e belief is that every pizza has its own magic, thus making it a destination pro
duct – which everyone seeks. It is this belief that has ignited the passion to c
reate, innovate and serve the finest product the industry has to offer, while se
tting standards for others to strive to replicate.
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Pizza hut is committed for providing uncompromising product quality, offering cu
stomers the highest value for money and giving service that is warm, friendly an
d personal. A critical factor in pizza hut’s success has been its unique dining
experience. Crewmembers at pizza hut strive each day to provide ‘customer mania’
– the kind of service that ensures that every visit of the customer is a memora
ble one. A critical factor in pizza hut’s success has been a menu that has const
antly evolved and expanded to cater to the changing needs and specific preferenc
es of 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 w
ith an Indian heart. Besides offering an extensive range of vegetarian pizzas, i
t was the first pizza chain to open a 100% vegetarian restaurant in India in sur
at and later in ahmedabad and chowpatty, where it offers a jain menu sans all ro
ot-based ingredients. Over the years pizza hut has also developed and successful
ly introduced a range of products especially suited to the Indian palate. These
products like chicken tikka, spicy korma, picy paneer and the masala and tandoor
i pizzas have been a tremendous success. What has also given pizza hut acompetit
ive edge is that in addition to an extensive range of internationally renowned p
izzas like the Italian, the proprietary pan pizza and stuffed crust, in India th
e menu offers the option 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 desserts etc.
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CU USTOME ERS
For whom the compa m anies exist! Mos custom come a Dominos for food an the othe
r for enjoy stly mers at nd rs yment as the basic eir requ uirement. M Mostly cu
sto omers come to dominos for take aw pizzas while they come to s way pizz hut f
or th dining ex za he xperience. T Their unsatis sfied need is either food or en
joym ment Mos customers in domi st inos are fr rom the middle incom group or stu
dents whose m me s disp posable inco omes are relatively low Generally everyone
finds the ta of the pizzas to w. y aste p be g good. Also the locatio of the re
o on estaurant ma akes a lot of difference as many p e people come to dine e due
to its strat tegic locatio Even w had food in the rest on. we d taurant and we
also fo ound the e at! referred dom minos for th relative lower pr heir ely rice
taste to be grea People pr Influ uence in bu uying pattern n Buy ying pattern i
s also inf n fluenced by the prefer y rred their choices due to their wa ards bu
t mos for sing adults th choices depends up them. stly gle heir pon Also the bra
nd recall off th restauran makes a lot of diffe o he nts erence. A ha core foll
ard lower of dom minos will h have food from domino only. os Gen neral buying pa
ttern (th data is pe g his ertaining to coimbatore city) e
From th data, we can interpr that only 20% of cu he ret y ustomers ha pizza ve f
requent (i.e., ave ery tly. weekly once).at the same time 20% of cu e e ustomers
hav pizzas ve rarely ve ery
12
CORE COMPETENCIES
That which makes them different! Pizza hut Tracing footsteps Pizza hut is akin t
o 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 pizza lovers. In
addition to this, pizza hut takes pride in having the only 100% vegetarian pizz
a hut in the world at ahmadabad, surat and mumbai’s chowpatty . It also has a sp
ecial jain friendly menu without root based ingredients and even serves salad dr
essings without eggs!!! Through the looking glass Thinking out of the box was ne
ver 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 chee
se and one can run into people eating these pizzas backwards in many outlets. Ta
lk about bringing changes!!! Pizza hut is really going global. Tuscani pastas th
at is truly italian is now at every pizza hut outlet. With changing tastes of In
dians and greater acceptance of international cuisines, pizza hut has introduced
30 new items on its menu for this festival season. These include beverages, pas
ta and desserts. Pizza hut express outlets were launched at malls, airports, dep
artment stores and gas stations which offers a reduced version of the menu for g
lobe trotters and busy bees. Moreover pizza hut is not just a hangout zone for y
oungsters. It organizes birthday bashes, kitty parties and corporate lunches. Pi
zza 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 b
usy bees.
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Dreami big ing Pizza h aims to be the num hut mber one res staurant cha in India
and expec a turnover of $1 ain a cts billion by 2015. T yum re The estaurants p
plans to inv vest $150 m million in t next 5 years to the y r m ing expand the
number of outlets to 1000 from the existi 215. Dominos Pizzas t topped with chee
se an happiness dominos is committed to put an extra smile on its h nd s, n cust
ome faces, with a mission of “ex ers’ xceptional people on a mission to be the b
e pizza p o est delivery company in the world ". y d!
Tracing fo ootsteps Many pizz lovers wo za ould still remember the havoc that oc
cu c urred in mid april m 2009 in which s some dull witted dominos employees pos
ted a kitchen video of do v ominos that clearly sho owed the lack of sanitation
in their k o kitchen in youtube. y The vid attracted millions o views in a few h
ou and was indeed vira Dominos did an deo d of n urs al. excellen job of cri man
age nt isis ement and u used social media to spr m read a viral video in which t
he l w compan presiden took cont ny nt trol of the situation and apologi a ized
to the public, ann nounced separati of the c ion company fro wrong d om doers an
d th prosecu heir ution. He a also guarant teed that such is ssues will n happen
again. Do not n ominos cle early proved that com mmunication meant n engagem me
nt, transp parency and responsive d eness to the interaction with custom n mers.
Through the lookin glass h ng It has n never been difficult fo dominos to find
ou novel w for s ut ways to enth hrall its cus stomers. Delicac that do not rip
wa cies allets have always got the crowd coming ba to the dominos t d ack d alth
oug its ambie gh ence is not u to that of its compe up etitors. Khus shion ki ho
m delivery where me y, the orde gets deliv er vered in les than 30 m ss minutes.
All other activ l vities, be it new varian great nts, service, timely del , liv
eries or more for th same pric the effor of domino has alwa been he ce rt os ays
directed towards m d making its cu ustomers ha appy.
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ACCESS TO CRUCIAL RESOURCES
The players behind the scene Pizza hut Workforce of pizza hut is chosen with the
motto “together we grow” with primary concern being quality of service, be it i
n terms of delivery or quality of pizzas. The employees undergo extensive traini
ng 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 day
s. Pizza hut takes pride in walking the talk with the leadership principles of y
um restaurants. These values include customer focus, trust in people, recognitio
n, accountability, excellence, positive energy and team work. The customer focus
is so high that they have separate systems in place to satisfy vegetarian custo
mers. Vegetarian dishes are prepared and served using separate green spatulas. M
oreover pizza hut is not just a hangout zone for youngsters. It organizes birthd
ay bashes, kitty parties and corporate lunches. Pizza hut considers its employee
s to be the greatest strength. From the viewpoint of a customer it is the variet
y and taste of pizzas which is directly tied to its employees! The menu remains
constant throughout the country and varieties are just added. The newest entrant
s into the Indian menu were stuff crust pizzas and cheesy bites Vegetables, meat
, and other additives are supplied by one common vendor. Dominos Dominos has bee
n voted as the best employer by leading news daily, times of India for the year
2009. The chefs of dominos pizza India are recruited by the hr department locate
d in noida after careful evaluation. Employees at dominos are also smiling as th
ey get incentives on meeting sales target and are also credited for their perfor
mance. Dominos has always been noted for the new items that spring up often in t
heir menu. Marketing department does a careful analysis of growing demands and c
hanging tastes and puts together the new menu that tantalises palates, says mark
eting head, mr. Harneeth singh.
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The menu remains same throughout the country and so do systems and processes. Na
tional 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 takes pride in its unbeatable delivery system. Delivery
within 30 minutes campaign was indeed revolutionary and is the best core compet
ency that makes dominos pizza a better experience than anyone else in the market
.
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SWOT ANALYSIS
Pizza hut
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Dominos
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COM MPETITO ORS
Cla of the tit ash tans
Pizza hut The maj competi ajor itors who lo horns w pizza hu are ock with ut • •
• • • • • Pizza corne er Dominos Mcdonald’s Barista Cafe coffee day e Subway Pa
pa john’s s minos Dom
The major competito of dominos are ors • • • • • • • Pizza hut Pizza corner r
Mcdonald’s Barista Cafe coffee day Subway Papa john’s
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An analysis of the competitors of pizza hut and dominos Weakness Subway Still ad
apting to Indian taste Expensive Pizza corner Low investments in ad Delivery not
satisfactory Kfc More of chicken, less scope for veggies Mcdonald’s Less variet
y Burger leaders Fast service More offers Papa john’s Expensive Excellent qualit
y Variety Ccd Concentrate more on beverages, less options on snacks Expensive Ba
rista Concentrate more on beverages, less options on snacks Expensive Variety in
beverages Quality Variety in beverages Excellent ambience Quality Strength King
s of sandwich markets Customized preparations Variety Quality Variety masters fo
r chicken
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CONTEXT
Pizza hut
Adapting to economic environment In 1991 under the guidance of a visionary naras
imha rao and his comrade manmohan singh India marched towards a new era of liber
alisation, privatisation and globalisation. Trade barriers were eased and cultur
al 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 a concern for middle class In
dians with lesser purchasing power and disposable income. The status is steadily
improving as more of us embrace fast foods to suit the pace of our life. Embrac
ing technology Locating stores and placing orders has never been easier for pizz
a hut loyals. With their virtual store kind website, pizza hut offers customers
a wide range of options to choose from menu and avail new offers. Now orders can
also be placed through mobile phones. High end technologies are used at the cas
h counters. Across socio-cultural barriers Food has no language. Good food is ap
preciated 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.
21
Dominos
Adapting to economic environment Dominos made their entry in India in 1995 when
the country was marching into an era of liberalisation, privatisation and global
isation. 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 offe
rs pizzas and italian delicacies at affordable prices to middle class Indian con
sumers. Dominos has 274 outlets in 55 cities across 20 states. This is the large
st in terms of fast food restaurants. Thus they have adapted to Indian economy i
n terms of purchasing power and disposable income of middle class Indians. Embra
cing technology Locating stores and placing orders has never been easier for piz
za hut loyals. With their virtual store kind website, pizza hut offers customers
a wide range of options to choose from menu and avail new offers. Now orders ca
n also be placed through mobile phones. High end technologies are used at the ca
sh counters. Across socio cultural barriers dominos outlets are prevalent in eve
ry small-big town across the world. Dominos has taken cues from changing prefere
nces of its customers and put together a tantalising menu that attracts foodies
around the globe
22
SEGMENTATION
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 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years
, 40+ years. family income – middle class, upper middle class, high class dual i
ncome earners – yes/no Psychographic socio-economic class – urban (a1, a2, b1, b
2, c, d) Behavioral occasions – birthdays, corporate lunches, marriages, parties
, receptions loyalty status – low, medium, high user status – first time, regula
r, non-user
Dominos Geographic Region – dominos outlets in different countries is a way of s
egmenting their market according to region and finding out potential markets. Ci
ty – they also segment the cities as class i, class ii, metros, small towns. Dem
ographic age – under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50
+ years. family income – lower middle class, middle class, upper middle class, h
igh class Psychographic socio-economic class – urban (a1, a2, b1, b2, c, d) Beha
vioral loyalty status – low, medium, high user status – first time, regular, non
-user
23
TARGETING
Pizza hut • • In geographic segment they targeted countries where there were no
pizza hut outlets. Initially opened in class i cities and then have now moved to
metros. In demographic segment their main target is the young adults ranging fr
om 25 years to 40 years and also dual income earners family. They aim basically
at the upper middle class and the high class income families. • • In psychograph
ic segmentation they targeted a1, a2, b1 socio-economic classes. In behavioral s
egmentation they targeted for occasions such as birthday bashes, corporate lunch
es. It was also found that they were targeting the first time users because they
felt that their quality and taste would automatically make them a loyal custome
r.
Dominos •
In geographic segment they targeted countries where there were no dominos outlet
s. Initially opened in class ii cities and then have now moved to class i, metro
s and smaller towns.
•
In demographic segment their main target is the teenagers and college students (
13 to 21years), young adults ranging from 21 years to 35 years. They aim basical
ly at the middle class, upper middle class income families.
• •
In psychographic segmentation they targeted a2, b1, b2 socio-economic classes. I
n behavioral segmentation it was found that they were targeting the first time u
sers and also their regular users.
24
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 decor
of all pizza hut outlets are good and the outlets are spacious. When customers t
hink of party and decide to have pizza, pizza hut only comes into their mind. Pi
zza hut also arranges kitty parties, birthday parties and business meetings in t
heir outlets. Pizza hut has customized birthday party invites with different the
mes for the customers to choose and use it as invitations. Dominos aims at fast
home delivery of pizza. Whenever customers want to have pizza at home, they thin
k of calling dominos and ordering for it because they are experts in home delive
ry of pizza. “we earn 60% of our revenue from home delivery of pizzas and 40% fr
om 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 i
n pizza hut and dominos is pizza. As we all know, pizza comes under the fast foo
d category of foods, both the companies must be good in speed of making and serv
ice. Irrespective of the cost, both pizza hut and dominos has to deliver or serv
e 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 cas
e of pizza hut is that, even though pizza hut is costlier than dominos, they hav
e their own customers, who do not bother about spending, but look for quality an
d personalized service. When we visit pizza hut, they have restaurant hostess wh
o will assign us tables and introduce the steward who will be taking care of us.
This is generally a procedure that is followed in five star category hotels and
pizza hut is also following it to emphasize on service quality. In case of domi
nos, they are not costly as pizza hut and do not offer great ambience to custome
rs, but offer good pizzas at nominal price. They concentrate on turnover of cove
rs and cater to customers who don’t have time to spend on food and just stop ove
r for refreshment. Moreover, dominos mainly looks into home delivery of pizzas a
nd are experts in it.
25
PRODUCT
Pizza hut
Allofferings inclusive Valueadded services Hotpizza,goodtoEat Pizza Enjoy
ment
PotentialProduct‐Pizzahut Experienceasawhole Valueadd‐AugmentedProdu
ct GoodTaste‐ExpectedProduct Food–BasicProduct BasicRequirement
–CoreBenefit
The customer value hierarchy From the above diagram we can see that pizza hut ha
s 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 compa
ny’s core product. Hot pizza and good taste are his expectation. Thus the compan
y should ensure this by providing good pizza. The value adds services refer to t
he overall dining experience, the service quality, ambience etc.
26
Product differentiation Worldwide and in India, pizza hut has come to become syn
onymous with the ‘best pizzas under one roof’. This is because at pizza hut the
belief is that every pizza has its own magic, thus making it a destination produ
ct – which everyone seeks. It is this belief that has ignited the passion to cre
ate, innovate and serve the finest product the industry has to offer, while Sett
ing standards for others to strive to replicate. Pizza hut is committed to provi
ding uncompromising product quality, offering customers the highest value for mo
ney and giving service that is warm, friendly and personal. A critical factor in
pizza hut’s success has been its unique dining experience. Crewmembers at pizza
hut strive each day to provide ‘customer mania’ – the kind of service that ensu
res that every visit of the customer is a memorable one. Pizza features Pizza hu
t has many unique features of their product due to which it attracts the custome
rs. The product is classified into non durable goods as it is a food item pizza
hut differentiates itself with its competitors with respect to their wide range
of offerings (menu items) one can find besides pizzas range of, pastas appetizer
s, cakes, and desserts etc. There are quite a lot number of menu items to choose
Some of the items are • Pizzas ( four different types)
27
•
Pastas and salads
•
appetizers
•
Desserts
•
Beverages
28
Mass customisation The main advantage of pizza hut is that one can customise his
own pizza by selecting the bread and loading it with the toppings which one can
select. This creates variety in the customers mind and thus one can enjoy whate
ver pizza hut can offer. The most unique feature is that there is ‘pan 4 all’ sc
heme where one can select 4 different types of vegetarian /non- vegetarian combi
nations of pizza! This is a unique way of offering as there are many consumers w
ho come in groups where someone in the group may want a non- vegetarian pizza ca
n avail the offer. Conformance quality: Pizza hut’s products have very high conf
ormance quality i.e. All the products produced are identical and meet the promis
ed specifications Style: pizza is delivered in hot pans and served in style. The
toppings in the pizzas are also dressed in a good fashion. Thus having ‘food in
style’ defines pizza hut’s experience. Service differentiation Ordering ease: O
nce one enters the restaurant immediately the assistants initiates the ordering
process by providing the menu. All associates are well trained in english and ca
n take order from any customer. Delivery Pizza hut’s style of delivering the piz
za to the customer is quite an experience. The restaurant is aesthetically desig
ned; all the staff members are uniquely dressed. Managers dressed in special uni
forms. Also the tables, menu, are all placed in a good manner. This on itself is
quite impressive. All orders placed in restaurant is served within 15-20 minute
s and the take away orders (ordered on phone) is delivered within 30 minutes. Ca
re also has been taken by the company to pack the pizzas in special covers so th
at it remains hot till the customer haves the food. Any pizzas delivered outside
30 minutes are given free. Also discount coupons are given to the customer in c
ase one doesn’t want a free pizza.
29
Product mixes Width: the company’s total width of the product mix includes, pizz
as, pastas, appetizers, beverages and desserts Length: the total number of items
available in the company’s offerings is 28 •
These are the pizzas available in the menu Kadai chicken Classic Favourite Margh
erita Simply vegetarian Fiery chicken Veggie crunch Spicy veggie Chicken hawaiia
n
Chicken ‘n’ spicy Chicken supreme Exotica Veggie supreme Teekha paneer makhani C
ountry feast Chicken tikka makhani Veggie lovers Paneer el rancho Kadai paneer
•
The pastas and the appetizers available are Garlic bread Cheese garlic bread Gar
lic bread spicy supreme Garlic bread exotica
Arrabbiata Spicy tomato Creamy mushroom Spicy tomato with chicken Arrabbiata wit
h smoked chicken
• •
The desserts available is choco lava The beverages available are not of pizza hu
t, they have coke and sprite as their beverages
Thus the total length of the product is 28 which does not include the beverages
as it’s not their product
30
Depth: pth of hich are available in e each variant We can see that ts. The dep r
efers to the no: o pizzas wh (from th menu) fo each varia a vegeta he or ant ari
an and a non vegetar pizza ar available n rian re e. Consist tency: The con nsis
tency of the produ is the sa uct ame as pizz hut oper za rates only in the brand
food n ded pizza in ndustry. Produc line analy ct ysis The com mpany has a basi
c plat tform for of ffering pizza and have added on d a different mo odules to m
eet th ever chan he nging custom require mer ements. Thu the major chunk of prof
its com from us mes pizzas a pastas. While bev and verages and desserts contribu
tion towards pr d rofits is to a lesser extent. t Product line
Core C Product
Pizza
Staples S
Sp pecialities
Co onvenien nce Items
Beveragesand Apptetize ers
Pastas
Desserts
Eg: :Pan,Cheese Pizza
Eg:Arrabbiata E a
Eg:Truffle e Cake
Eg: Pepsi,Gar rlic Bread
• • •
tes a ly the oduct for Thus pizza hut promot its pizza extensivel and hence it f
orms t core pro marketing Pastas are classified a staples a they do not get pro
as as omotion but they yield higher t d margins for the compa r any Specialities
for pizza h is their d s hut dessert, i.e. Truffle cak which is h ke highly pro
m moted so that the sal of the other items i les increases ( birthday pa arties)
. Con nvenience it tems are mainly app petizers whic have hig ch gher margin and
genera tends fo impulse buying ally or b
31

Co- branding Pizza hut has joined hands with visa for availing various offers. H
owever this offer is only for the in dining i.e. One cannot avail the offers per
taining to visa for take away and home orders. A visa credit card holder can ava
il offers like family meal for a lower cost and select other combinations of ite
ms which would have not been possible otherwise. Thus visa and pizza hut assist
each other for branding themselves. Packaging& labelling The packaging of the pi
zza 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 no
t packed, instead they are served in hot pans, and plates are provided to the cu
stomers. The extra ingredients like oregano mix, chilli flakes etc. Are kept in
a bottle having pores. Thus the customer can easily pour the ingredients into th
e pizza. Take away orders They are put in a paper box neatly labelled with pizza
hut brand logo. Also there is a plastic support given (it’s in the shape of a t
ripod) at the bottom of the pizza to prevent it from sticking at the bottom. A p
izza hut logo is also given in the tripod. The extra ingredients like oregano mi
x, 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 paper boxes desc
ribed above are packaged into a special delivery bags for retaining the heat. Th
us we can observe that from every labelling, packaging the company tries to imbi
be the brand of pizza hut in the minds of consumers
32
dominos
All offerings inclusive Valueadded services Hot pizza,good to Eat Enjoyment Fo
od
Potential Product-Pizza hut Experience as a whole
Value add -Augmented Product
Good Taste- Expected Product
Food – Basic Product
Basic Requirement – Core
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 h
aving 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 this by providing good pizza. The value adds services refer to the
overall dining experience, the service quality, ambience etc.
33
Product differentiation Domino s pizza India has maintained its position in the
market with its constant product innovation and maintenance of stringent service
standards. More importantly, it has established a reputation for being a home d
elivery specialist capable of delivering its pizzas within 30 minutes to its com
munity of loyal customers from its entire chain of stores around the country. As
the name suggests ‘the pizza delivery experts’ customers can order their pizzas
by calling their hotline. Domino s believes strongly in the strategy of think
local and act regional . Thus, time and again domino s has been innovating toppi
ngs suitable to the taste buds of the local populace and these have been very we
ll accepted by the Indian market. Also they had their promotional campaign ’hung
ry kya?’which means call up dominos if one is hungry and have the food in 30 min
utes.
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 i
t is a food item. Dominos differentiates Itself with its competitors with respec
t to their wide range of offerings (menu items).one can find besides pizzas, ran
ge of pastas appetizers, cakes, and desserts etc. There are quite a lot number o
f menu items to choose. The ‘chicken wings’ item has specially struck a chord wi
th 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. Some of the menu items are • pizzas
34
•
pastas and salads
•
Appetizers
•
Desserts
•
beverages
35
Mass customisation The main advantage of pizza hut is that one can customise his
own pizza by selecting the bread and loading it with the toppings which one can
select. This creates variety in the customers mind and thus one can enjoy whate
ver pizza hut can offer. The most unique feature is that there is ‘single slice
pizza’ scheme where one can select any vegetarian /non- vegetarian pizza at a lo
wer cost. This is a unique way of offering as there are many consumers who would
not afford a regular size pizza and hence they can have a slice of it. Conforma
nce quality: Dominos products have very high conformance quality i.e. All the pr
oducts produced are identical and meet the promised specifications Style: pizza
is delivered in paper boxes and served in style. The toppings in the pizzas are
also dressed in a good fashion. Thus having ‘food quickly’ defines pizza hut’s e
xperience. 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 custome
r. Delivery Pizza hut’s style of delivering the pizza to the customer is not qui
te great. The restaurant is not so aesthetically designed; all the staff members
are dressed in a not so attractive manner. Also the tables, menus are all place
d 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 t
hat fashion only. Their motto is to serve the pizza at customers home. Dining fo
r them comes as secondary. The company doesn’t give importance to improve the di
ning standards. All orders placed in restaurant is served within 15-20 minutes a
nd the take away orders (ordered
36
on phone) is delivered within 30 minutes. Care also has been taken by the compan
y to pack the pizzas in special covers so that it remains hot till the customer
haves the food. Any pizzas delivered outside 30 minutes are given free. Also dis
count coupons are given to the customer in case one doesn’t want a free pizza. P
roduct mixes Width: the company’s total width of the product mix includes, pizza
s, pastas, appetizers, beverages and desserts Length: the total number of items
available in the company’s offerings is 29 •
These are the pizzas available in the menu
Marghetita Cheese and tomato pizza Double cheese marghetita Fresh veggie Country
special Farm house Peppy paneer Mexican green wave Vegetarian extravanza Non-ve
getarian 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 the appetizers available are Garlic bread Chicken wings Cheese di
p
Cheesy white pasta Tangy red pasta
37
Depth: pth of hich are available in e each variant We can see that ts. The dep r
efers to the no: o pizzas wh (from th menu) fo each varia a vegeta he or ant ari
an and a non vegetar pizza ar available n rian re e. Consist tency: The con nsis
tency of the produ is the sa uct ame as pizz hut oper za rates only in the brand
food n ded pizza in ndustry. Produc line analy ct ysis The com mpany has a basi
c plat tform for of ffering pizza and have added on d a different mo odules to m
eet th ever chan he nging custom require mer ements. Thu the major chunk of prof
its com from us mes pizzas a pastas. While bev and verages and desserts contribu
tion towards pr d rofits is to a lesser extent. t Product line
Core Product e
Staples S
Sp pecialities s
Convenien C nce Items
Beverages and Apptetize ers
Pizza
Pastas
Desserts
Eg:Pan,Cheese Pizza
Eg:Tangy Red E d Pasta
Eg:Choco o Lava
Eg:Chick ken wings, Ga arlic Bread
• • • •
Thus domin promot its pizza extensively and hence it forms th core pro nos tes a
y e he oduct for marketing Pastas are classified a staples a they do not get pr
o as as omotion but they yield higher t d r any margins for the compa Specialiti
es for them is their dessert, i.e. Cho lava wh s oco hich is highl promoted so t
hat ly d the sales of the other it f tems increases ( birthda parties) ay Conven
ienc items are mainly ap ce e ppetizers an chicken wings in particular wh nd hic
h has higher marg and gen gin nerally tends for impuls buying s se
38

Co- branding Dominos does not have any co branding or any tie ups with banks or
credit cards. However they promote only products of coca-cola. Packaging& labell
ing The packaging of the pizza has been ordinary in the sense that, it serves th
e basic purpose of ‘serving pizza’. In house dining In house dining, the pizzas
are packed in paper box. Plates are not provided to the customers. The extra ing
redients like oregano mix, chilli flakes etc. Are given in a pouch which the cus
tomers have to open manually. Thus the customer can finds this quite a task to o
pen the pouches as they are not easily removable. The main reason behind this is
dominos classifies itself as a take home / order from home pizza and hence dini
ng is not encouraged. Each paper boxes are designed to deliver the branding of d
ominos and labelling is done quite well. All ingredient pouches are also labelle
d. Take away orders They are put in a paper box neatly labelled with dominos bra
nd logo. The extra ingredients like oregano mix, chilli flakes etc. Are given in
a paper pouch which is also branded with the dominos logos. Home delivery order
s All the pizzas covered in paper boxes described above are packaged into a spec
ial delivery bags for retaining the heat. Thus we can observe that from every la
belling, packaging the company tries to imbibe the brand of dominos ‘pizza deliv
ered in 30mins’ in the minds of consumers.
39
PLACE
Once the product has been decided upon and the market segmented, targeted and th
e product positioned, it is time to decide how and where the marketer can delive
r the value (product) to the customer. This is done through marketing channels t
hat make the product available for consumption to the customer. Push and pull st
rategies in channel marketing:
In a push strategy, the manufacturer uses his sales force, trade promotion, mone
y or other means to induce intermediaries to carry promote and sell its products
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 intermedia
ries, thus inducing the intermediaries to order it.
1) Domino’s: pursuing a push strategy
Domino’s pursues a medium push strategy in its channel marketing. The advertisin
g layout for domino’s is minimal in India. Domino’s concentrates on incentivizin
g customers instead off advertising and promotion. As a result, domino’s regular
ly introduces sell-in schemes (promotional schemes for dealers), promotional cou
pon, festival offers etc.
2) Pizza hut: masters at pull strategy
Pizza hut follows more or lesss the opposite strategy. Pizza hut has mastered th
e art of pull strategy. It pioneered the practice of advertising and promotion i
n the fast food industry. Pizza hut achieved this remarkable feat by adopting a
different marketing strategy that involved increasing ambiences and amusement fo
r the customers.
40
Direct and Indirect channels:
Direct channels: The type of distribution channel used by Pizza Hut is the direc
t channel. The direct channel is successful when there is an extremely large mar
ket that is geographically dispersed. The direct channel is also useful when the
re 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 st
ore in India was opened in January 1996,at New Delhi and today after fourteen ye
ars Domino s Pizza India has grown into a countrywide network of over 274 outlet
s in 55 cities, in 20 states and union territories (as on 31st August 2009) . Ac
cording to the India Retail Report 2009, we were the largest Pizza chain in Indi
a and the fastest growing multinational fast food chain between 2006-2007 and 20
08-2009 in terms of number of stores, which includes:North - Delhi, Gurgaon, Cha
ndigarh, Ludhiana, Amritsar, Jallandhar, Dehradun, Shimla, Agra, Kanpur, Lucknow
, Noida, Faridabad, Mussoorie. South Chennai, Bangalore, Hyderabad, Coimbatore,
Mangalore, Cochin,
Secundrabad, 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 com
petitive 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 k
eeping in view the following factors. It is in an out of centre location on reta
il 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.
41
•
The first method of distribution used by Pizza Hut is Home. Office delivery. Cus
tomers can call Pizza Hut ahead of time, place an order, and the order is delive
red 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 restaur
ant style facility. Pizza Hut offers a clean place to sit down and enjoy the var
iety of pizzas, salads, and sandwiches 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. This method is useful b
ecause it allows customers to view the entire menu, download any special coupons
, and order without having to disclose any credit card numbers.
Indirect channels: Indirect channels consist of one or more intermediaries betwe
en 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
42
Pizza huts in India
Single and multiple channels: Most organizations today employ multichannel marke
ting 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 be
tween the manufacturer and the end user in the fast food industry, based on the
target customer,
43
PRICING OF DOMINO’S
Indians are value-sensitive, not price-sensitive. The price was attributed to th
e high quality of ingredients used. For instance, Domino’s sourced its Peperoni
and Jalapeno needs from Australia and Spain respectively. However, with competit
ion increasing from Pizza Hut, Domino’s introduced price cuts, discounts and fre
ebies to attract the customers. In 1998, Domino’s introduced the Pizza Mania sch
eme 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,
both Domino’s and Pizza Hut were concentrating more on data base marketing and b
elow-the-line activities and special offers.
In India Domino’s is trying to attract the middle class and lower middle class p
eople who are interested to spend their money on pizza but in low price. Those p
eople are eager to go for a outing in any festival and as a cheap family restaur
ant Domino’s would be most preferable. They do not need high class ambiences or
amusement in the shop so the establishment cost is
44
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 competit
ors of the Pizza hut. The Domino’s Pizza franchise constantly keeps on inventing
ways through which it can make a greater impact on the fast food market. That i
s how the fast food franchise came up with Fun Meal for Four offer. Through th
is method, the pizza franchise is able to produce more variety in the food deliv
ered to its customers at their door steps. Through its Fun Meal for 4’ pack the
Domino’s Pizza India offers four pizzas at the rate of Rs 180. This means charg
e of one pizza will be just Rs 45. This has helped the speciality food franchise
to enhance the strength of its customer base. Mainly offers are more attractive
for the Domino’s , mainly student and middle class people are the main customer
and they targeted that customers.
45
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 a
llows Pizza Hut to charge a price that is above the competition, but also promot
e frequent sales to lower the price below them. The high/low pricing strategy ha
s several advantages. First, this pricing strategy will help segment the market.
Different groups of customers are willing to pay
different prices for the same product. The high/low pricing strategy will also c
reates excitement. Customers will be able to try something new when they purchas
e Finally, this strategy will emphasize product and service quality. Pizza Hut s
ets a high initial price for its products to send a signal to customers that its
products are quality and the service is excellent. As there are no such competi
tors of Pizza Hut which could compete with the quality of pizza produced at Pizz
a 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 a
re no competitors and hence, Pizza Hut is free to charge any price they want. Th
ey are charging higher prices due to the uniqueness of the product. They satisfy
the target market as the food quality is worth the price paid. The pricing stra
tegy is not just to get the worth of quality but also to gain maximum profits be
fore any competitor enters because then Pizza Hut will have to change its pricin
g strategy. Although the prices would be lowered with the new entrants in the ma
rket but not to a greater extent as the quality food products are not home-produ
ced. They are imported from different countries keeping in view the best quality
. First, this pricing strategy will help segment the market. Different groups of
customers are willing to pay different prices for the same product. The high/lo
w pricing strategy will also create excitement
46
In India Pizza hut is targeting the rich and higher middle class people with a g
reat ambiences of enjoyment and amusement. They are offering an organized restau
rant system and demanding the higher price for the pizzas. In the pizza hut diff
erent types of foods are available like appetizer, soup & salad, beverages, past
a etc. So for the varieties kind of food the pricing strategy is different in th
e pizza hut. Their customers are more or less fixed and they are price insensiti
ve.
47
PROMOTION
DOMINO’S Promotion, which is known as marketing communication, is a major attrib
ute for any product or service. In modern marketing it is more than developing a
good accessible product or exact pricing. Ever since it was established, Domino
’s Pizza India has maintained its position of market leadership with its constan
t product innovation and maintenance of stringent service
standards. More importantly, it has established a reputation for being a home de
livery specialist capable of delivering its pizzas within 30 minutes to its comm
unity of loyal customers from its entire chain of stores around the country. Cus
tomers 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 o
f our customers by delivering delicious pizzas to their doorstep in 30 minutes o
r less, and all its strategies are aimed at fulfilling this commitment towards i
ts large and ever-growing customer base.
Communication objectives Category need Domino’s master franchise model Industry
analysts believed that Domino s master franchise model was one of the reasons fo
r its success in international markets even in light of the global economic slow
down in 2008. How domino s international bucked the trend The strong performance
of Domino s international master franchises in the midst of the global economic
slowdown was a widely debated topic among analysts. While some analysts believe
d that the recession had helped the growth of these chains due to the trading d
own
48
factor of people preferring to eat at home rather than dine out at expensive re
staurants, others believed it was a combination of aggressive marketing and the
franchise model that had helped the company buck the trend. Brand awareness Prom
otional and advertisement campaigns The pizza delivery business had traditionall
y been promotion driven. Coupons and discounts were offered by all pizza deliver
y chains to woo customers. Since its inception, Domino’s had 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 1
973, Domino s began a guarantee scheme that its pizzas would be delivered in 30
minutes or less of ordering failing which the customer would receive the pizza f
ree. Brand attitude Use of technology Online sales accounted for over 70 percent
of its total sales in 2008. Dominos planned further exploit the increasing pote
ntial of the online medium as one of to the
promotional and distributional channels in the downturn. Brand purchase intentio
n What makes domino’s pizza better than its competitors • Varity of Pizza’s • Se
rvices offered • Quality of pizza’s • Location of the Outlet • Waiting time in t
he outlet • Door step services
49
• Low pricing
Developing effective communication Target to age group/class Domino’s target aud
ience is a consumer who belongs to age group of 14 to 35 years from the Economic
Class A or B and preferably one who has been exposed to the western culture as
well as the 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 affe
cted 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 con
cerned, since Domino’s pizzas are priced from
about Rs.80 onwards. However, Domino’s have now come out with pizzas ranging fro
m Rs.39 onwards to target the ever-increasing middle class consumers. Domino’s h
as also segmented the market geographically by deciding to initially cater to th
e rural areas due to the
only the metropolitan cities and urban areas. They have left out
low level of awareness regarding western dishes as well as typical Indian patter
of eating. 30 min campaign This is a campaign in which Domino s offers its cust
omers 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 major metropolitan cities. Anything
which is far away from 3 kms doesn’t fall in this category. Domino s latest spec
ial 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 loca
l delivery, but it s the latest special offer from Dominos in an effort to outdo
the competition. Still, there are some cities where it must be really tough to
make a Dominos Pizza local delivery, the cities where traffic congestion is a na
tural way of life. Can a Dominos pizza local delivery survive the daily traffic
jams? Is the question to be asked.
50
Design the communication: Message strategy Offers by dominos • With every order
of pizza and coke/Garlic bread sticks get 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
/- & non veg Rs 79/• Get garlic bread for only Rs 30/- with any of the pizza man
ia combinations. • Dominos start providing coke/fanta/sprite. • Dominos started
pizzas mania which starts from Rs 35 and we get the toping according to our choi
ce. • Web coupons available at web site www.dominos.co.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. Creative strategy Latest in
domino’s • Kwality wall’s ice-creams in dominos- For the first time dominos star
ted offering ice creams .Selling ice cream in Domino’s is also a new sales promo
tion strategy to attract more customer in a new perceptive /innovative way. • Do
mino’s has also come up with pasta mania. Communication mix Every company must f
ollow 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 gain efficiency by repla
cing one communication with others. The sustainability among communication tools
explains why marketing function need to be coordinated.
51
Advertising It reaches geographically dispersed buyers. Domino’s vision is focus
ed 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
its large and ever-growing customer base. It’s all advertisement are image of co
re competencies. Their taglines “The Pizza Delivery Experts” and “Hungry kya?” a
re showing their focusing area in promotion.
Events/ Experiences They are sponsoring some college fest, cultural program and
promotional events throughout the country for promotion.
Public Relation Domino s constantly strives to develop products that suit the ta
stes of its customers, thereby bringing out 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 to the tast
e buds of the local populace and the Indian market has very well accepted these.
52
Persona Selling al Domino constan o’s ntly strive to make the comp pany an int t
egral part of the lives of the tar rget audien nces by get tting involv with the
clientele at the emotio level an ved e t onal nd building long-term relations g
m ship with them. Thus, Domino concen o’s ntrate more on carrying out belowg -t
he-line ac ctivities in th area it se he erves.
romotion Sales Pr a) In India, Do omino’s has been assoc s ciated with the NGO’s
devoted to the cau o use of
underpr rivileged Ch hildren’s. D Domino’s co onducts Stor Education Tour (SET)
for the re nal t underpr rivileged ch hildren time-to-time. b) Domino’s P Pizza
India also boasts about its co ommitment to serve its customers on time s
by impl lementing th “30 MIN he NUTES OR FREE” serv vice comm mitment. c) They a
re co ontinuously offering ne incentive to the customers. y ew es

Word o mouth of This too is very po ol owerful for promotion in the fast food in
dustr Low pric and good f ry. ce d behavio gave them the edge i India. or m in
53
PIZZA HUT Promotional Strategy: Promotion is a form of corporate communication t
hat uses
various methods
to reach a targeted audience with a certain
message in order to achieve specific organizational objectives. Nearly all organ
izations, whether for-profit or not-for-profit, in all types of industries, enga
ge in some form of promotion. Efforts may range from multinational firms spendin
g large sums on securing high-profile celebrities to serve as corporate spokespe
rsons to the owner of a one-person enterprise passing out business cards at a lo
cal businessperson’s meeting. Consequently, promotion decisions should be made w
ith an appreciation for how it affects other areas of the company.
Communication objectives Category need Worldwide and in India, Pizza Hut has com
e to become synonymous with the ‘best pizzas under one roof’. This is because at
Pizza Hut the belief is that every pizza has its own magic, thus making it a de
stination 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 of
fer, while setting standards for others to strive to replicate. Pizza hut uses m
any promotional strategies. The main promotion is a coupon to purchase. This pro
motion is also distributed mainly by mail, but also by fliers on college campuse
s around the country in order to reach the target market A critical factor in Pi
zza Hut’s success has been its unique dining experience. Crewmembers at Pizza Hu
t strive each day to provide ‘customer mania’ - the kind of service that ensures
that every visit of the customer is a memorable one.
54
Brand awareness • Pizza Hut was among the first multinational brands to enter th
e food retail sector in India. When the first Pizza Hut restaurant opened in Ban
galore 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 stren
gth of Pizza Hut’s success globally lies in a marketing strategy that builds con
nections with customer’s everyday in different parts of the world. Many customer
service initiatives have been uniquely developed for India and have been greatl
y instrumental in building an emotional bond with the customer. • The crewmember
s 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 restau
rant, which is rung by customers who as they leave wish to thank the servers for
yet another memorable visit. • Pizza hut organized the Jig n Jeeto contest in D
elhi for the first time, it received a phenomenal response with super star Farde
en Khan judging the show. Pizza Hut hopes to continue this contest as a traditio
n for the years to follow.
Brand attitude
International brand with an Indian heart Pizza Hut is one of the first internati
onal pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedab
ad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-veg
etarian restaurants in the western state of Gujarat to cater to the
Jain religious community, whose members prefer not to eat at places where meat i
s served. Offering more than the international menu International food chains ty
pically offer only a few localised products in other parts of the world. However
, Pizza Hut’s local menu is as large as the international one. According to Pizz
a Hut, the Indian food heritage is very rich, and hence Indians like local flavo
rs.The Tandoori range of pizzas, which was developed locally, has a menu mix of
over 20 per cent.
55
Brand purchase intention Why Pizza-hut is preferred than other • • • • • • Varit
y of Pizza’s Good ambience Services offered Quality of pizza’s Location of the O
utlet 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 f
eatured a boy and girl, who meet at a Pizza Hut restaurant in a traditional arra
nged marriage concept. They lose their inhibitions when the pizza arrives. When
the sequel went on air featuring the same couple, now married, with the girl’s f
ather 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 t
hat several wrote in to inquire whether the couple had children. The more recent
campaign that was launched with the introduction of the Tandoori pizzas feature
d 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 ha
s remained on the best and most distinct pizzas.
56
Sales promotion Pizza Hut laid more emphasis on its “restaurant dining experienc
e”. Pizza Hut localizes it menu to capture local Indian Market. In 2000 Pizza Hu
t launched its innovative Pizza Pooch menu and Pizza Pooch Birthday Party packag
e exclusively for kids in the 6-10 age groups. It positioned itself as family re
staurant and also concentrated on wooing kids.
Public relations In India, eating out is perceived as a form of entertainment. W
hich is why Pizza Hut servers not only serve our customers great food, they also
sing and dance for them. And many of Pizza Hut’s customers would, we are certai
n, love to participate in this process. Giving them an opportunity to showcase t
heir talent in the Jig n Jeeto contest.
Events and experiences Pizza hut use their events to reach to the customer and o
ften it is used as brand building as well as product selling.
Direct and interactive promotion Pizza hut provide many services online such as
Birthday reminder service- here people can save the birthday date of their frien
ds, relatives , and pizza hut will remind you the birthday date and birthday par
ties discount. Customer can book online E-coupon and discount offer available to
online customers line number – pizza hut hot line number also provide at online
which is 39883988. Even customer can do online order of pizzas. Hot
Personal selling Pizza huts try to attract the younger generation as their main
market segment but they mainly target high and higher middle class customer. The
y actually bother about customer’s enjoyment and food not the price. Thus Pizza
hut’s concentrate more on carrying out abovethe-line activities in the area it s
erves.
57
Word of mouth It is one of the traditional promotion for any industry. Pizza hut
also get benefit from it.
58
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 these two pizza outlets faces stiff competition with othe
r pizza companies (US Pizza, Smoking Joe’s, Papa John’s, Garcia’s) which do not
exist in Coimbatore. Questions pertaining to the 4p’s were asked some of the que
stions are as follows 1) Do you have pizza 2) How frequently do you like to have
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) Wh
ich pizza do you prefer dominos/ pizza hut / any other and for what reason? 7) W
ho are the principal decision makers in the buying process 8) What is the 1st th
ing 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 jotted down and analysis was made. Interestingly there were
a lot of correlation between the customers of Pizza Hut and Dominos. These are
all explained in this section.
• • •
Also a common section of customers are observed at each place. Dominos attract p
eople who have a little less disposable income than the customers at Pizza hut T
here were many such instances where people preferred their choices due to their
wards Coimbatore being a Tier II city also made a huge difference in the custome
r buying pattern.
59
A few excerpts from the visit to Dominos and Pizza hut (Coimbatore) Place: VOC P
ark & PSG Coimbatore .
• • • •
As the name suggests the primary focus is on the pizza delivery Their pricing is
targeted towards the middle income group who form the bulk of the Indian popula
tion Pizzas are less in cost as compared to pizza hut prices which charges a pre
mium Thus mostly cost conscious people form the major chunk of the clientele
• • •
From the 1st photo one can see that there are no tissue papers in the wash basin
From the second photo we can also see that the tissues for use are placed unhyg
ienically Actually the greatest surprise is in the next picture watch out!
60
• • •
People are dining right beside the place for washing hands! One may have thought
that there are separate washrooms which are not the case. Also there are no sep
arate washrooms The outside area of the restaurant is also not maintained proper
ly, the place is quite stingy and there are lot of foul smells
61
• • • • •
This is really pathetic for a restaurant of Dominos brand People who generally h
ave low disposable income, who doesn’t care about these things generally visit D
ominos Thus Dominos doesn’t attract people from the higher income groups as they
do not prefer such dining conditions One more which is noticeable is that every
thing is designed for fast delivery, Pizzas are not served in plates, its served
in paper box ( which is used for deliveries) The ingredients like pepper, chill
i flakes and oregano mix are served in paper and plastic pouches even in restaur
ant which should not be the case as the user finds difficult to remove the pouch
es with one hand once he starts eating the food
• • •
At PSG, Dominos have a separate washroom but water was not available at two sepa
rate instances! In Mumbai also one can find Dominos restaurants having such cond
itions Even one can find very small Dominos outlets where one cannot even have f
ood inside the restaurant
62
Observations and customer reviews for Dominos Pizza • • • • • • • Mostly 60% of
the customers come here for food and the others for enjoyment as their basic req
uirement Mostly customers come to dominos for take away pizzas Most customers ar
e from the middle income group or students whose disposable income are relativel
y less Generally everyone finds the taste of the pizzas to be good Also the loca
tion of the restaurant mattered a lot as many people come to Dominos since its l
ocated besides VOC park Even we had food in the restaurant and we also found the
taste to be great! Also people preferred Dominos for their relatively lower pri
ce
Most Common Answers (from customers)
Prices are Low , Great Discounts
Pizzas are Tasty and Good Variety
Product Recall Relates to Food and Delivery
Ambience for Dining are all found to be satisfactory
• • • •
Generally 65% of the orders are either take away orders or placed from outside.
In dining contributes only 35% of the revenue The company’s product recall 95% o
f the times relates to Delivery in 30 minutes or food (which pertains to their ‘
Hungry Kya ?’promotional campaign) Enjoyment is perceived to be achieved after h
aving the food quickly Dominos Brand thus relates mainly to service & delivery n
either they promote their in dining experience nor they spend revenue for it.
63
Place: Pizza- Hut R.S Puram, Coimbatore
• •
As the name and tag line ‘good friends great pizza’ suggests the primary focus i
s on the pizza dining experience Their pricing is targeted towards the higher in
come group who prefer ambience/ environment as their core need and food as secon
dary. The BMW X-5 parked outside the Pizza hut justifies this fact!
• • • •
Pizzas are costly as compared to Dominos The major chunk of the clientele are mo
stly premium customers who are willing to shell money for good environment and f
or great food One unique feature of Pizza Hut is that one can always find Pizza
Hut in the posh areas of the city One can never find a small Pizza Hut outlet. P
izza hut outlets are always big with plush interiors having great ambience.
64
• • • • •
•
Having food in such good plush interiors is an enjoyment in itself Menu card, In
gredients (like oregano mix) are placed in porous bottles which is aimed for eas
e of use The outside of the restaurant also is pretty good and the place is main
tained very nicely Unlike Dominos there are separate washrooms fully equipped wi
th the necessary items The most unique feature is the ‘Bell’ which is kept outsi
de every Pizza Hut. Customers can ring the bell if they had liked their service
and the associates scream ‘Thank you’ unanimously This actually is a feel good f
actor for the customers after having great food
Observations and customer reviews for Pizza- Hut • • • • • Mostly 80% of the cus
tomers come here for enjoyment, ambience and the rest for food as the basic requ
irement Mostly customers come to Pizza-Hut for dining experience Most customers
are from the higher income group The customer service in the restaurant is also
good Generally everyone finds the taste of the pizzas to be good
65
Most Common Answers (from customers)
Prices, No Problem
Amazing Dining Experience
Product Recall Relates to ambience and enjoyment
In dining Service is good
• • • •
Generally 70% of the orders are in house orders i.e. dining. Orders which are ei
ther take away or placed from outside contributes only 30% of the revenue The co
mpany’s product recall 90% of the times relates to ambience and enjoyment Pizzas
are secondary to enjoyment Pizza Hut as a brand thus relates mainly to ambience
and enjoyment with pizza. Hence they promote their in dining experience with th
e tagline ‘good friends great pizza’
66
ANAL LYSIS AN INTER ND RPRETA ATION
(Primar data colle ry ected from C Coimbatore city. These data may v e e vary wi
th ci ities)
visit staurant 1) How many times one v to a res
•
Half of the customers visit restau urants only once in a m o month. At t same ti
m 10% the me, of the custo omers visit r restaurants daily.
2) Preference of cuisines
•
the ers ne ers having pizza Pizza as. Out of all t custome who din out, 30% of c
ustome prefer h sales have now grown in the food market an has cros n nd ssed Ch
ines cuisine fo also se ood which stand with 20% customer preference. ds %
67

3) Frequency of having p pizza
•
From the data, we c can interpr that onl 20% of customers have piz very ret ly f
s zza frequently. (i.e., week once).At the same time 20% o customer have pizz v
ery kly t of rs zas rarely
4) Location Pr reference fo having Pi or izza
•
80% of the customers like to hav dominos pizza at ou e ve utlets wherea 20% of d
ominos as d customers l like to have it at home 85% of th customer like to ha Pi
zza Hut pizza e e. he rs ave H at outlets w whereas 15% of Pizza H custome like
to have it at hom % Hut ers me.
68
5) Preferred B Brand of Piz zza
•
40% of pizz consume prefer Dominos whe za ers ereas 60% p prefer Pizza Hut a
e all Hut 6) What is the brand reca of Pizza H
•
Enjoyment and dining experienc is the gr g ce reatest factor that com into cu me
s ustomers mind when they think about pizza hut. One in n a nteresting f about p
i fact izza hut is that 10% customers l the con like ncept of ring ging the bel
kept in all pizza hut o ll l outlets as a mark of satisfied ser rvice and th ste
wards all together thanking t he r them
69
7) What is the brand reca of Domin e all nos
quality and affordable price is w e what come in to th mind of 60% of dominos es
he f d Food q custome The enj ers. joyment and experience factor is lesser here
w d when compa ared to Pizz Hut. za
70
MARKETING STRATEGIES

Overall both the companies achieve what they want to as for Dominos they have ac
hieved in positioning themselves as the fastest serving pizza outlet and quenchi
ng the hunger. Pizza Hut has come to become synonymous with the ‘best pizzas und
er one roof’. They have positioned themselves for their unique dining experience
Thus from the market feedback, it can be seen that even customers feel the same
as what the company wants them to.
Strategic Formulation Overall Cost Leadership, Differentiation and Focus This is
achieved very effectively by Dominos as they do not intend to lose their focus
from delivering pizzas at home • • Dominos Brand thus relates mainly to service
& delivery neither they promote their in dining experience nor they spend revenu
e for it. Domino s vision is focused on “Exceptional people on a mission to be t
he best pizza delivery company in the world!” Thus Dominos are able to provide g
ood pizzas at relatively lower rate as they don’t spend much for the restaurant
Pizza Hut’s Premium price Pizza Hut is committed for providing uncompromising pr
oduct quality, offering customers the highest value for money and giving service
that is warm, friendly and personal. • • They stress heavily on the dining expe
rience and the ambience Thus at each point company charges a premium
Thus Pizzas from Pizza Hut costs a premium hence their customers also changes to
high income groups.
71
Creation, Communication and Capturing Value Dominos Domino s Pizza constantly st
rives to develop products that suit the tastes of its consumers and hence deligh
ting them. Domino s believes strongly in the strategy of Think global and act l
ocal’. Thus, time and again Domino s Pizza has been innovating with delicious ne
w products such as crusts, toppings and flavors suitable to the taste buds of In
dian 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 k
i Home Delivery (Happiness Home delivered) is the emotional benefit Dominos offe
r to consumers. Delicacies that do not rip wallets have always got the crowd com
ing back to the Dominos although its ambience is not up to that of its competito
rs. They have the maximum offers with respect to the discounts they offer throug
hout the year. Thus the customer has the maximum incentive to come back to Domin
os. ‘Hungry Kya?’, promotion where hunger gets quelled in less than 30 minutes w
as a great value proposition . All other activities, be it new variants, great s
ervice, timely deliveries or more for the same price the effort of Dominos has a
lways been directed towards making its customers happy, creating, communicating
and delivering value.
Pizza Hut Workforce of Pizza Hut is chosen with the motto “Together we grow” wit
h primary concern being quality of service, be it in terms of delivery or qualit
y of pizzas. A critical factor in Pizza Hut’s success has been a menu that has c
onstantly evolved and expanded to cater to the changing needs and specific prefe
rences of customers in different parts of the world. In having understood the pu
lse of the customers in India, Pizza Hut has clearly established itself as a bra
nd with an Indian heart. Besides offering an extensive range of vegetarian pizza
s, it was the first pizza chain to open a 100% vegetarian restaurant in India in
Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans al
l root-
72
based ingredients. Moreover Pizza Hut is not just a hangout zone for youngsters.
It organizes birthday bashes, kitty parties and corporate lunches They also hav
e a variety of combinations of menu items which a customer can choose so that bo
th the customer and the company can have a win-win situation. The company can ha
ve 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 var
iants and the different pizza combinations in the same one pizza are all the dif
ferent ways of pricing. The company attains the maximum profit in the meat items
, so they give the selection of pizzas slices of different varieties and they ar
e clubbed together to form a single pizza. Once the customer dines / orders @ ho
me, normally discount coupons are given to the customer so that there is an ince
ntive for the customer to order from pizza hut. Thus customers are forced to mai
ntain loyalty towards pizza hut.
Sustaining, building relationships and Exploiting Changing Conditions Over the y
ears Pizza Hut has also developed and successfully introduced a range of product
s especially suited to the Indian palate. These products like Chicken Tikka, Spi
cy Korma, picy Paneer and the Masala and Tandoori pizzas have been a tremendous
success. What has also given Pizza Hut acompetitive edge is that in addition to
an extensive range of internationally renowned pizzas like The Italian, the prop
rietary Pan Pizza and Stuffed Crust, in India the menu offers the option of a co
mplete meal. It includes appetizers, a Salad Bar - where the customers can make
their own fresh salads, a range of soups, pastas and desserts etc. Pizza Hut als
o has a community called as ‘VIP- Members’ joining this club is at no extra cost
one can avail greater offers. Meanwhile Dominos are not behind Pizza Hut in int
roducing local delicacies they have different menu in different cities in India.
Domino s believes strongly in the strategy of Think global and act local’. Thu
s, time and again Domino s Pizza has been innovating with delicious new products
such as crusts, toppings and flavours suitable to the taste buds of Indian Cons
umers. Further, providing
73
value for money at affordable products to the consumers has been Dominos motto.
Also sizes of the pizzas are relatively large as compared to that of Pizza Hut.
The discount offers at Dominos are the main incentive to build long term relatio
nship. Dominos also courier discount coupons at consumers 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 achievin
g their goal and are equally good in achieving what they intend to Tastes of piz
zas of both the companies are good equally in their own sense Marketing strategy
of Pizza Hut is better than Dominos because they offer customers a holistic app
roach. Pizza hut markets their product not only as a food but as an experience w
hich is worth enjoying. People tend to remember experiences more than the food.
Thus, overall Pizza Hut’s marketing strategy has and edge over Dominos.
74
SUGGESTIONS
Dominos • • • • • • The dining conditions have to be changed drastically if Domi
nos have to target the premium segment of customers. They are way behind Pizza H
ut in the dining experience. Some of the Dominos restaurants lack even basic ame
nities Due to this a condition can occur where customers judge the quality and t
aste of the pizza with respect to the restaurant environment and ambience Thus t
o have a greater market share and tap premium segment of the market, Dominos can
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 bi
t more on the food items
Pizza hut • • • • Reduce the menu costs; it is way too expensive for a middle cl
ass Indian. Middle class forms the maximum population of India and hence reducin
g the costs of pizza can increase the elasticity of demand greatly Invariably th
ere are no discounts, or discounts if offered are very less. Thus Pizza hut shou
ld offer more discounts to tap more customers Their reach is very less as compar
ed to Dominos (as they have only premium restaurants) which deprives far off cus
tomers from having Pizza Huts experience. Hence they should increase their prese
nce
75
REFERENCES

Electronic References: Electronic Media and URLs (2009). Retrieved December 25,2
009 from dominos website, www.dominos.co.in Electronic References: Electronic Me
dia and URLs (2009). Retrieved December 30,2009 from pizza hut website, www.pizz
ahut.co.in Electronic References: Electronic Media and URLs (2009). Retrieved De
cember 26,2009 from exchange4 media website, www.exchange4media.com Journal : Ec
onomic Reforms India, 1992 Electronic References: Electronic Media and URLs (200
9). Retrieved December 25,2009 from esnips website,www.esnips.com/A Review on In
dian retail food industry.pdf Telephonic conversations: Mr.Harneeth Singh, Marke
ting Head, Dominos Pizza India Ltd., Noida Telephonic conversations: Mr. Rahul V
arma, Chief Manager, Pizza Hut, Bangalore Telephonic conversations: Mr.Asok Kuma
r Sahu, Dominos Pizza India
76

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Marketing management - I

The brand strategy analysis exercise

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