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COMPARITIVE STUDY OF MARKETING STRATEGIES OF DOMINOS AND PIZZA HUT

A PROJECT REPORT ON

COMPARITIVE STUDY OF MARKETING STRATEGIES OF DOMINOS AND PIZZA HUT


PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT STUDIES, MUMBAI UNIVERSITY Submitted by: MANTHAN.S.DESAI T.Y.B.M.S [SEMESTER V] ROLL NO: 3003 UNDER GUIDANCE: (Prof. Rajesh. K)

MSG

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INTRODUCTION

Particulars

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REASONS FOR EMERGENCE MARKET SHARE AND MAJOR PLAYERS MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY CUSTOMERS CORE COMPETENCIES ACESS TO CRUCIAL RESOURCES SWOT ANALYSIS COMPETITORS CONTEXT SEGMENTATION TARGETING POSITIONING PRODUCT PLACE PRICING OF DOMINOS PRICING OF PIZZA HUT PROMOTION MARKET FEEDBACK & CONTROL MECHANISMS 3

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ANALYSIS AND INTERPRETATION MARKET STRATEGIES SUGGESTIONS

INTRODUCTION
Fast food is one of the worlds largest growing food types. Indias fast food industry is growing by 40%. The multinational segment of Indian fast food industry is up to Rs 20.billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6 years, foreign investment in this sector stood Rs.3600 million which is about onefourth of the total investment made in this sector. Because of the availability of the raw material for fast food, global chains are flooding into the country. The percentage share held by foodservice of total consumer expenditure on food has increased very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sector of Indian society. The growth is neculear families, particularly in urban India, exposure to global media and western cuisine and an increasing number of women joining workforce have had an impact on eating out trends. Major players in fast food are: McDonalds KFC Pizza Hut

Dominos Pizza Caf coffee day Barista Subway

The main reason behind the success of multinational chains is expertise in product development, sourcing practices, quality standard, service level and standardized operating procedures in their restaurant, a strength that they have develop over years of experience around the world. The home grown chains have in the past few years of competition with the MNC s, learnt a few things but there is still a lot of scope for improvement.

REASONS FOR EMERGENCE


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

Customer sophistication and confidence:


Consumers are becoming more sophisticated. They do not want to prepare food and spend their time and energy in house hold works. They are building their confidence more on ready to serve and easy to eat kind of foods.
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Paucity of time:
People have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time people either work or want to enjoy their family.

Double income group:


Emergence of double income group leads to increase in disposable income. Now people hve more disposable income so they can spend easily in fast food and other activities.

Large population:
India being the second largest country in terms of population possesses large potential market for all the products/services. This results into large number of fast food players in the country. Relaxation in rules and regulations, with the economic liberalization in 1991, most of tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This help significantly the MNCS to enter in the country.

MARKET SHARE AND MAJOR PLAYERS


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

Other players mainly are: Smokin Joes Gracias Papa Johns U S Pizza

These players mainly give competition to pizza hut and dominos in tier I cities like Mumbai, Bangalore, Chennai, etc. do not have much presence in tier II cities.

MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY

INDUSTRY COMPETITION
In tier I city like Mumbai, pizza hut and dominos are facing a stiff competition from these providers (with respect to branded pizza) Pizza Corner Smokin Joes U S Pizza Gracias
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In tier II cities, dominos and pizza hut are still the major players.

THREAT OF NEW ENTRANTS


With the economic reforms the liberalization, many new entrants also want the revenue of the 200 billion India fast food industry. There are many new entrants in the branded pizza industry some of them are: Papa Johns Pizza U S Pizza

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

SUBSTITUTES
There are lots of substitutes which are available to choose with respect to the fast food industry some of them are: Any restaurant McDonalds
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Barista Caf coffee day Chinese restaurant (Mainland China)

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

BUYERS BARGAINING POWER


Pizza hut and dominos have higher market reach and greater visibility in the market with respect to the pizza industry and hence they command supplies at lower rate. However their counterparts, competitors cannot command such lower prices. Thus the muscle power of pizza hut and dominos is way beyond the others.

Suppliers Growing Bargaining Power


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

TRENDS IN THE INDIAN MARKET


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Marketing To Children
Fast food outlets in India target children as their major customers. They introduce varieties of things that they will attract the children attention and targeting children they automatically target their parents because children are always accompanied by their parents.

Low Level Customer Commitment


Because of the large number of food retail outlets and also because of the tendency of the customer to switch from one product to another, this industry faces low level customer commitment.

Attracting Different Segments of the Market


Fast food outlets are introducing varieties of product in order to cater the demand of each and every segment of the market. They are introducing all categories of product so that people of all ages, sex, class, Income group etc can come and become a customer of their line. The success of fast foods arose from the changes in the economic conditions 1. Many women or both parents now work. 2. There are increased numbers of single-parent households. 3. Long distances to school and work are common.

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4. Theres often not enough time or opportunity to shop carefully for groceries,

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

Brief history of the company, Indian operations (DOMINOS)


The dominos brand was found in the United States of America in 1960 by Thomas and James Monaghan. Since then, that business has grown into a global network over 8,500 pizza stores in more than 60 countries, involving over 2,000 franchises. Over its 49-year history, dominos has developed a simple business model focused on delivery quality pizzas in a timely manner. Dominos pizza, inc., completed its initial public offering in 2004 and is listed on the New York stock exchange. Dominos pizza India ltd. Was incorporated in March 1995as the master franchisee for India and Nepal, of dominos pizza international inc., of U.S.A. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary. Mr.Shyam .S.Bhatia and Mr.Hari.S.Bhatia of the jubilant organosys group are the promoters of the company. Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union territories (as on 31st August 2009). According to India retail report 2009, dominos are the largest pizza chain between 2006-2007 and2008-2009 in terms of number of stores. Dominos vision is focused on exceptional people on a mission to be the best pizza delivery company in the world!. Dominos committed to bringing fun, happiness and convenience to the lives of our consumers by delivering delicious pizzas to their door step in 30 minutes or less, and its effort are aimed to fulfilling the commitment towards its large and ever-growing customer base.

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Dominos pizza constantly strives to develop products that suit the tastes of its consumer and hence delighting them. Dominos strongly believe in the strategy of think global and act local. Thus, time and again dominos pizza has been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian customers. Further, providing value for money at affordable products to the consumer has been dominos motto. Initiatives such as fun meal and pizza mania have been extremely popular with consumers. The brand positioning of khushiyon ki home delivery (happiness home delivered) is the emotional benefit dominos offer to consumers. Major products they offer are pizzas, appetizers, pastas, cakes and beverages.

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


Pizza hut was started in 1958, by two brothers Frank and Dan Carney in Wichita, Kansas. They had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first pizza hut. In 1959, the first franchise unit opened in Topeka, Kansas. Ten year later, pizza hut was serving one million customers a week in their 310 locations. In 1970, pizza hut was put on the New York stock exchange under the ticker symbol pizza. Until 1997, pizza hut owned pizza hut, the company also controlled a vast network of fast-food operations that included KFC, Pizza Hut, and Taco Bell. With 29,000 locations across the world, the restaurant group was the largest in the world. However, PepsiCo decided to spin off its restaurant business as a separate company.

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Pizza hut is one of the flagship brand of Yum! Brands, Inc., which also has KFC, Taco Bell, A & W and long john silvers under its umbrella. Pizza hut is the largest pizza chain with over 12,500 restaurants across91 countries. In India, pizza hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune and Chandigarh amongst others. Yum! Is in the process of opening pizza hut restaurants at many more locations to service a larger customer base across the country.
In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the sign the building looked like a hut so 'Pizza Hut' was born! Fifteen years later, we opened the first UK restaurant and since then we've become the biggest Pizza Company on the planet, Let see listen Pizza Hut Story from them! 1958: Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas. 1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas. 1971: Pizza Hut becomes the number one pizza restaurant chain in the world on both sales and Number of restaurants. 1972: 1000 restaurants are open throughout the USA. 1973: Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London. 1977: PepsiCo bought Pizza Hut. 1980: Pan Pizza was introduced.

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1982: The UK joint venture started between PepsiCo and Whitbread. 1984: Over 50 restaurants so far in the UK. 1986: By now, there were 100 restaurants in the UK and 5000 worldwide. 1987: An average of one restaurant opened each week in the UK. 1988: The UK's First Delivery Unit was opened in Kingsbury, London. 1992: There were 9,000 restaurants in 84 countries. 1993: There were 300 restaurants and delivery stores in the UK. 1994: 10,000 Pizza Huts were open for business. 1997: PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants Was born, creating the largest restaurant brand in the World. Tricon became the partner company with whitbread. 1999: Pizza Hut had over 400 restaurants, employing 14000 people. 2002: Tricon Global became YUM! Brands Inc. 2006: Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum! 2008: We bought Godfather's Pizza in Ireland with 28 stores.

PIZZA HUT VISION AND MISSION

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Worldwide and in India, pizza hut has come to become synonymous with the best pizza under one roof, This is because at pizza hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is the belief that has ignited the passion to create, innovative and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza hut is committed for providing uncompromising product quality, offering

customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in pizza huts success has been its unique dining experience. Crew members at pizza hut strive each day to provide customer mania the kind of service that ensures that every visit of the customer is a memorable one. A critical factor in pizza huts success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customer in different parts of the world. In having understood the pulse of the customer in India, pizza hut has clearly established itself as a brand with an Indian heart. Besides offering an extensive range of vegetarian pizza, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmadabad and chowpatty, where it offers a jain menu sans all root-based ingredients. Over the years pizza hut has also developed and successfully introduced a range of products especially suited to the Indian palate. These products like chicken tikka, spicy korma, Spicy Paneer, and the masala and tandoori pizzas and have been a tremendous success. What has also given pizza hut a competitive edge is that in addition to an extensive range of internationally renowned pizza like the Italian, the proprietary pan pizza and stuffed crust, in India the menu offers the opinion of a complete meal. It includes appetizers, a salad bar where the customers can make their own fresh salads, a range of soups, pastas and deserts, etc.

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CUSTOMERS
Mostly customers come to Dominos for food and the others for the enjoyment as their basic requirement. Mostly customers come to dominos for take away pizzas while they come to pizza hut for the dining experience. Their unsatisfied need is either food or enjoyment. Most customers in dominos are from the middle income group or students whose disposable incomes are relatively low. Generally everyone finds the taste of pizzas to be good. Also the location of the restaurant makes a lot of difference as many people come to dine due its strategic location. Even we had food in the restaurant and we also find the taste to be great! People preferred dominos for their relatively lower price.

Influence in buying pattern


Buying pattern is also influenced by the preferred their choices due to their wards but mostly for single adults their choices depends upon them. Also the brand recall of the restaurants make a lot of difference. A hard core follower of dominos will have food from dominos only. General buying pattern (this data is pertaining to Mumbai city)

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

CORE COMPETENCIES
That which makes them different!

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

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

Pizza Hut
Tracing footsteps Pizza hut is akin to the Indian heart and taste buds. Pizza hut has been able to capture the heart and soul of Indians. This, they achieved through rapid Indianization of pizzas. Chicken tikkas, tandoori range and spicy korma were welcomed by the pizza lovers. In addition to this, pizza hut takes pride in having the only 100% vegetarian pizza hut in the world at Ahmadabad, Surat and Mumbais chowpatty. It also has a special jain friendly menu without root based ingredients and even serves salad dressings without eggs!!! Thinking out of the box was never new at pizza hut. 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 pizzas outer crust has a stuffing of mozzarella cheese and one can run into people eating these pizzas backwards in many outlets. Talk about bringing changes !!!
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Pizza hut is really going global. Tuscani pasta that is truly italian is now at every pizza hut outlet. With changing tastes of Indians and greater acceptance of international cuisines, pizza hut has introduced 30 new items on its menu for this festival season. These include beverages, pasta and desserts. Pizza hut express outlets were launched at malls, airports, department stores and gas stations which offers a reduced version of the menu for globe trotters and bust bees. Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches. Dreaming big Pizza hut aims to the number of one restaurant chain in India and expects a turnover of $1 billion by 2015. The yum restaurant plans to invest $150 million in the next 5 years to expand the number of outlets to 1000 from the existing 2015.

ACCESS TO CRUCIAL RESOURCES


The players behind the scene

Dominos
Dominos has been voted as the best employer by leading news daily, times for India for the year 2009. The chefs of dominos pizza India are recruited by the noida after
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careful evaluation. Employees at dominos are also smiling as they get incentives on meeting sales target and are also credited for their performance. Dominos has been always been noted for the new item that spring up often in their menu. Marketing department does a careful analysis of growing demand and changing tastes and puts together the new menu that tantalises palates, says marketing head, Mr. Harneeth Singh. The menu remains same throughout the country and so do systems and processes. National level suppliers are a part of the dominos family. Dominos firmly believe that it is these systems and processes that enable it to get a better edge over its competitors. Dominos take pride in its unbeatable delivery suitable. Delivery within 30 minutes campaign was indeed revolutionary and is the best core competency that makes dominos pizza a better experience than anyone else in the market.

Pizza hut
Workforce of pizza hut is chosen with the motto together we grow with primary concern being quality of service, be it in terms of delivery or quality of pizzas. The employees undergo extensive training to achieve technical finesse and leadership qualities. The newly chosen chefs are trained by the older and more experienced ones for a period of about 20 days. Pizza hut takes pride in walking the talk with the leadership principles of yum restaurants. These value include customer focus, trust in people, recognition, accountability, excellence, positive energy and team work. The customer focus is so high that they have the separate system in place to satisfy vegetarian customers. Vegetarian dishes are prepared and served using separate green spatulas.
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Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches. Pizza hut considers its employees to be the greatest strength. From the view point of a customer it is the variety and taste of pizza which is directly tied to its employees! The menu remains constant throughout the country and varieties are just added. The newest entrants into the Indian menu were stuff crust pizza and cheesy bites. Vegetables, meat and other additives are supplied by one common vendor.

SWOT ANALYSIS
DOMINOS

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PIZZA HUT

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COMPETITORS

Pizza Hut
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The main competitors who lock horns with pizza hut are: Pizza corner Dominos McDonalds Barista Caf coffee day Subway Papa Johns

Dominos
The major competitors of dominos are: Pizza Hut Pizza corner McDonalds

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Barista Caf coffee day Subway Papa Johns

An analysis of the competitors of Dominos and Pizza Hut

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CONTEXT
Dominos
Adapting to economic environment Dominos made their entry in India in 1995 when the country was marching into an era of liberalization, privatization and globalisation. These years marked the start of some of the greatest socio economic and cultural changes in our country. Dominos focuses on value to customers and offers pizzas and italian delicacies at affordable prices to middle class Indian consumers. Dominos has 274 outlets in 55 cities across 20 states. This is the largest in terms of fast food restaurant. Thus they have adapted to Indian economy in terms of purchasing power and disposable income of middle class Indians Embracing technology Locating stores and placing orders has never been easier for pizza loyals. With their virtual role store kind website, pizza hut offers customer a wide range of option to choose from menu and avail new offers. New orders can also be ordered through mobile phones. High end technologies are used at the cash counters. Across socio cultural barriers .

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

Pizza Hut
Adapting to economic environment In 1991 under the guidance of visionary Narasimha Rao and his comrade Manmohan Singh India marched towards a new era of liberalization, privatization and globalisation, Trade barriers were eased and cultural barriers started dissolving. It was at this juncture that pizza hut made its infant steps in India, with its first outlet at Bangalore. Today Bangalore alone has a striking 19 outlets which remain busy till late night. Pizza hut has 140 restaurants across 34 cities in India including metros. With its focus steadily on quality and variety, pizza hut has given a new dimension to regular pizza eat-outs. However the trifle higher prices may remain concern for middle class Indians with less purchasing power and deposable income. The status is steadily improving as more of us embrace fast food suit the pace of our life. Embracing technology Locating stores and placing orders has never been easier for pizza loyals. With their virtual role store kind website, pizza hut offers customer a wide range of option to choose from menu and avail new offers. New orders can also be ordered through mobile phones. High end technologies are used at the cash counters.
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Across socio-cultural barriers Food has no language. Good food is appreciated across the globe. Pizza hut has outlets in a better part of the world. It has taken immense effort to cater to its customers all over the world.

SEGMENTATION
Dominos
Geographic: Region Pizza hut outlets in different countries is a way of segmenting their market according to region and finding out potential markets. City They also segment the cities as class I, class II, metros, small towns. Demographic: Age Under 13 years, 13 to 21 years, 21 to 35 years, 34 to 50 years, 50+ years. Family Income lower middle class, middle class, upper middle class, higher class. Psychographic:

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Socio - economic class urban (a1, a2, b1, b2, c, d) Behavioral: Loyalty status low, medium, high Use status first time, regular, non - user

Pizza Hut
Geographic: Region Pizza hut outlets in different countries is a way of segmenting their market according to region and finding out potential markets. City They also segment the cities as class I, class II, metros, small towns. Demographic: Age Under 10 years, 10 to 18 years,18 to 25 years, 25 to 40 years,40+ years. Family Income middle class, upper middle, high class Dual income earners yes/no

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Psychographic: Socio - economic class urban (a1, a2, b1, b2, c, d) Behavioral: Occasions birthdays, corporate lunches, marriages, parties, receptions Loyalty status low, medium, high Use status first time, regular, non - user

TARGETING
Dominos
In geographic segment they targeted countries where there were no pizza hut outlets. Initially opened in class II cities and then have now moved to class I, metros and smaller towns. In demographic segment their main target is the teenagers and college students (13 to 21 years), young adults ranging from 21 years to 35 years. They aim basically at the middle class, upper middle class income families. In psychographic segment they targeted a2, b1, b2 socio economic classes.

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

Pizza hut
In geographic segment they targeted countries where there were no pizza hut outlets. Initially opened in class I cities and then have no moved to metros. In demographic segment their main target is the young adults ranging from 25 years to 40 years and also dual income earners family. The aim basically at the upper middle class and the high class income families.

In psychographic segmentation they targeted at a1, a2, b1 socio economic classes. In behavioral segmentation they targeted for occasions such as birthday bashes, corporate lunches. It was also found that they were targeting for the first time users because they felt that their quality and taste would automatically make them a loyal customer.

POSITIONING
Points of difference The major point of difference between pizza hut and dominos is that pizza hut concentrates on in restaurant dining. The ambience and the dcor of all pizza hut outlets are good and the outlets are spacious. When customers think of party and decide to have pizza, pizza hut only comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business meetings in their outlets. Pizza hut has customized birthday invites with different themes for the customers for choose and
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use it as invitations. Dominos aims at fast home delivery of pizza. Whenever customer wants to have pizza at home, they think of calling dominos and ordering for it because they are experts in home delivery of pizza. We earn 60%of our revenue from home delivery of pizzas and 40% from the restaurant sales, says

Mr. Navamani, manager of dominos, coimbatore v.o.c Park outlet. In case of pizza hut, the major revenue is from restaurant sales.
Points of parity Category points of parity the main food item that is sold in pizza hut and dominos is pizza. As we all know, pizza comes under the fast food category of foods, both the companies must be in good in speed of making and service. Irrespective of the cost, both pizza hut and dominos has to deliver or serve pizza in less time as compared to other main course food items served in other restaurants. Competitive points of parity competitive points of parity in case of pizza hut is that, even through pizza hut is costlier than dominos, they have their own customers, who do not bother about spending, but look for quality and personalized service. When we visit pizza hut, they have restaurant hostess who will assign us tables and introduce the steward who will be taking care of us. This is generally a produce that is followed in five star category hotels and pizza hut is also following is to emphasize on service quality. In case of dominos, they are not costly as pizza hut and do not offer great ambience to customers, but offer good pizzas at nominal price. They concentrate on turnover of covers and cater to customers who dont have time to spend on food and just stop over for refreshment. Moreover, dominos mainly looks into home delivery of pizzas and are experts in it.

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PRODUCT

DOMINOS

The customer value hierarchy


From the above diagram we can see that dominos has a food as a basic product but overall it provides an experience. Thus a person having a basic need of food can go to dominos 35

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

Product differentiation:
Dominos pizza India has maintained its position in the market with the constant product innovation and maintainance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizza within 30 minutes to its community of loyal customers from its entire chain of stores around the country. As the name suggests the pizza delivery experts customer can order their pizzas by calling their hotline. Dominos believes strongly in the strategy of think local and act regional. Thus, time and again dominos has been innovating toppings suitable to the taste buds of local populace and this has been very well accepted by the Indian market. Also they had their promotional campaign hungry kya? which means call up dominos if one is hungry and have the food in 30 minutes.

Pizza Features:
Pizza hut many unique of their product due to which it attracts the customers, the product is classified into non durable goods as it is a food item. Dominos differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas, range of pasta appetizers, cakes, and desserts, etc. There are quite a lot number of menu items to choose. The chicken wings items have specially struck a chord with a lot of consumers as such a kind of item is not available in any other pizza outlets. This item is also perceived to be the tastiest of the lot. Indecently chicken wings is a side dish.

Some of the menu items are: Pizzas

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Pastas and salads

Appetizers

Desserts

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Beverages

Mass customization:
The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customer mind and thus one can enjoy whatever pizza hut can offer. The most unique feature is that there is single size pizza scheme where one can select any vegetarian / non vegetarian pizza at lower cost. This is a unique way of offering as there are many consumers who would not afford a regular size of pizza and they can have a slice of it.

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

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

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

Delivery:
Pizza huts style of delivering the pizza to the customer is not quite great. The restaurant is not so aesthetically designed; all the staff members are dressed in a not so attractive manner. Also the tablets, menus are all placed like in an normal Indian udupi restaurant. One can find that dining at dominos outlets is not that good. The food is good but the ambience isnt. However they are the universal kings in serving pizzas at home. They brand their pizzas in that fashion only. Their motto is to serve the pizza at customer home. Dining for them comes secondary. The company doesnt give importance to improve the dining standards. All orders in placed in restaurant is served in 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customer haves the food. Any pizza delivered outside 30 minutes pizza is given free. Also discount coupons are given to the customer in case one doesnt want a free pizza.

Product mixes:
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Width: The companys total width of the product mix includes pizzas, pastas, appetizers, beverages and deserts. Length: The total number of items available in the companys offerings is 29. These are pizzas available in the menu

Margherita Cheese and tomato pizza Double cheese Margherita Fresh Veggie Country Special Farm house Pepper paneer Mexecian green wave Vegetarian extravanza Non-vegetarian extravanza Cheesy white

Deluxe veggie Gourmet Cheese and barbeque chicken Barbeque chicken Spicy Chicken Chicken Mexican red wave Kheema do pyaasa Chicken golden delight Meatzaa Cheese and pepperoni

The pastas and appetizers available are

Cheesy white pasta Tangy red pasta


Depth:

Garlic bread Cheese dip

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

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Consistency: The consistency of the product is the same as pizza hut operatesonly in the brand food pizza industry. Product line analysis: The company has a basic platform of offering pizzas and have added on different modules to meet the ever changing customer requirements. Thus the major chunk of profits comes from pizzas and pastas. While beverages and deserts contribution towards profit is to a lesser extent Product line:

Core Product

Staples

Specialties

Convenience Item

Pizza

Pastas

Desserts

Beverages & Appetizers

Eg: Pan, Cheese Pizza

Eg: Tangy Red Pasta

Eg: Choco Lava Cake

Eg: Chicken wings, Garlic Bread

Thus dominos promotes its pizza extensively and hence it forms the core product for marketing Pastas are classified as staples as they do not get promotion but they yield higher margins for the company. 41

Specialties for pizza hut is their dessert, i.e. Choco Lava cake which is highly promoted so that the sales of the other items increase (birthday parties). Convenience items are appetizers and chicken wings in which has higher margin and generally tends for impulse buying.

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

Packaging and labeling: The packaging of the pizza has been ordinary in the sense that, it serves the basic purpose of serving pizza. In house dining: In house dining, the pizzas are packed in a paper box. Plates are not provided to the customer. The extra ingredients like oregano mix, and chilli flakes etc. Are given in a plastic pouch which the customers have to open manually. Thus the customer can finds this quite a task to open the pouches as they are not easily removable. The main resource behind this is dominos classifies itself as a take home /order from home pizza and hence dining is not encouraged. Each paper boxes are designed to deliver the branding of dominos and labeling is quite well. All ingredients pouch are also labeled. Take away orders 42

They are put in a paper boxes described above our packaged into a special delivery bags are retaining the heat. Thus we can observe that from every labeling, packaging the companies tries to imbibe the brand of dominos pizza delivered in 30 mins in the minds of consumers.

Pizza hut

The customer value hierarchy From the above diagram we can see that pizza hut has enjoyment as a basic product but it provides food for it. Thus a person having a basic need of enjoyment can go to pizza hut and have pizza which is the companys core product. Hot pizza and good taste are his expectation. Thus the company ensure this by providing good

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pizza. Thus value adds service refer to the overall dining experience, the quality service, the ambience, etc.

Product differentiation
Worldwide and in India, pizza hut has become synonymous with the best pizzas under one roof. This is at pizza hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovative and serve the finest product the industry has to offer, while setting standards for other to strive to replicate. Pizza hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in pizza huts success has been its unique dining experience. Crew members at pizza hut strive each day to provide customer mania the kind of service that ensures that every visit of the customer is a memorable one. Pizza Features Pizza hut has many unique features of their product due to which it attracts the customers. The product is classified into non durable goods as it is a food item. Dominos differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas, range of pasta appetizers, cakes, and desserts, etc. There are quite a lot number of menu items to choose. Some of the items are: Pizzas (four different types)

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Pastas and salads

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Appetizers

Deserts

Beverages

Mass Customization
The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customer mind and thus one can enjoy whatever pizza hut can offer.

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The most unique feature is that there is pan 4 all scheme were one can select 4 different types of vegetarian / non vegetarian combinations of pizza! This is the unique way of offering as there are many consumers who come in groups where someone in the group may want a non vegetarian pizza can avail the offer.

Conformance Quality: Pizza huts product have a very high conformance quality i.e. All the products produced are identical and meet the promised specifications. Style:
Pizza is delivered in hot pans and served in style. The toppings in the pizza are also dressed in a good fashion. Thus having food in style defines pizza hut experience.

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

Delivery: Pizza huts style of delivering the pizza to the customer is quite an experience. The restaurant is aesthetically designed; all the staff members are uniquely dressed.
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Managers dressed in special uniforms. Also the tables, menu, are all placed in a good manner. This on itself is quite impressive. All orders placed in a restaurant is served within 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customers have the food. Any pizzas delivered outside 30 minutes are given free. Also discount coupons are given to the customer in case of one doesnt want a free pizza.

Product mixes:
Width: The companys total width of the product mix includes pizzas, pastas, appetizers, beverages and deserts. Length: The total number of items available in the companys offerings is 28 These are pizzas available in the menu

Chicken n spicy Chicken Supreme Exotica Veggie Supreme Teekha Paneer Makhani Country Feast Chicken Tikka Makhani Veggie Lovers

Kadai Chicken Classic Favorite Margherita Simply Vegetarian Fiery Chicken Veggie Crunch Spicy Veggie

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Paneer el rancho Kadai Paneer Chicken Hawaiian

Veggie Crunch Spicy Veggie

The pastas and appetizers available are Arrabbiata Spicy tomato Creamy Mushroom Spicy tomato with chicken Arrabbiata with smoked chicken Garlic bread Cheese garlic bread Garlic bread spicy supreme Garlic bread exotica

The dessert available is choco lava cake. The beverages available are not of pizza hut, they have coke sprite as their beverages.

Thus the total length of the product is 28 which does not includes the beverages as its not their product. Depth: The depth refers to the no of pizzas which are available in each variants. We can see that (from the menu) for each variant a vegetarian and a non vegetarian pizza are available.

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Consistency: The consistency of the product is the same as pizza hut operates only in the branded food pizza industry. Product line analysis:
The company has a basic platform of offering pizzas and have added on different modules to meet the ever changing customer requirements. Thus the major chunk of profits comes from pizzas and pastas. While beverages and deserts contribution towards profit is to a lesser extent.

Product line:

Core Product

Staples

Specialties

Convenience Item

Pizza

Pasta

Desserts

Beverages & Appetizers

Eg: Pan, Cheese Pizza

Eg: Arrabbiata

Eg: Truffle Cake

Eg: Pepsi, Garlic Bread

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Thus pizza hut promotes its pizza extensively and hence it forms the core product for marketing.

Pastas are classified as staples as they do not get promotion but they yield higher margins for the company.

Specialties for pizza hut is their dessert, i.e. Truffle cake which is highly promoted so that the sales of the other items increase (birthday parties). Convenience items are appetizers which have a higher margin and generally tends for impulse buying.

Co-branding:
Pizza hut has joint hands with visa for availing various offers. However this offer is only for the in dining i.e. one cannot avail offers pertaining to visa for take away and home orders. A visa credit card holder can avail offers like family meal for a lower cost and select other combinations of items which would have not been possible otherwise. Thus visa and pizza hut assist each other for branding themselves.

Packaging and labeling: The packaging of pizza has been quite extraordinary in the sense that, it serves the basic purpose of serving hot tasty pizza In house dining:

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In house dining, the pizzas are not packed, instead they are served in hot pans, and plates are provided to the customers. The extra ingredients like oregano mix, chilli flakes etc. Are kept in a bottle having pores. Thus the customer can easily pour the ingredients in the pizza. Take away orders: They are put in a paper box neatly with pizza hut brand logo. Also there is a plastic support given (its in the shape of tripod) at the bottom of the pizza to prevent it from sticking at the bottom. A pizza hut logo is also given in the tripod. The extra ingredients like oregano mix, chilli flakes etc. Are given in a paper pouch which is also branded with the pizza hut logos. Home delivery orders: All the pizzas covered in the paper boxes described above are packaged into a special delivery bags for retaining the heat. Thus we can observe that from every labeling, packing the company tries to imbibe the brand of pizza hut in the minds of consumer.

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

GLOBALLY LOCATIONS The Globally Locations of the Pizza Hut in the world are
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following;

Push and Pull strategies in channel marketing:

In a push strategy, the manufacturer uses his sales force, trade promotion, money or other means to induce intermediaries to carry promote and sell its product to end users. In a pull strategy, the manufacturer uses advertising, promotion and other forms of communication to persuade the customer to demand the product from intermediaries, thus introducing the intermediaries to order it.
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Dominos: pursuing a push strategy

Dominos pursues a medium push strategy in its channel marketing. The advertising layout for dominos is minimal in India. Dominos concentrates on incentivizing customer instead off advertising and promotion. As a result, dominos regularly introduces sell-in schemes (promotional scheme for dealers) promotional coupon, festival offers, etc.
Pizza hut: masters at pull strategy

Pizza hut follows more or less the opposite strategy. Pizza hut has mastered the art of pull strategy. I pioneered the practice of advertising and promotion in the fast food industry. Pizza hut achieved this remarkable feat by adopting a different marketing strategy that involved increasing ambiences and amusement for the customers.
Direct and Indirect channels: Direct channels: The type of distribution channel used by pizza hut is the direct channel. The direct channel is successful when there is an extremely large market that is geographically dispersed. The direct channel is also useful when there are a large number of buyers, but a small amount purchased by each.

Dominos
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The Company was incorporated in March 1995. The first Dominos pizza store in India was opened in January 1996, at New Delhi and today after fourteen years Dominos Pizza India has grown into a countrywide network of over 274 outlets in 55 cities, in 20 states and union territories (as on 31 st August 2009). According to the Indian Retail Report 2009, we are the largest pizza chain in India and fastest growing multinational fast food chain between 2006 - 2007 and 2008 2009 in terms of number of stores, which includes:North Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar, Dehradun, Smila, Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie. South Chennai, Bangalore, Hyderabad, Coimbatore, Mangalore, Cochin, Secundabad, Manipal. East Kolkata West Mumbai, Pune, Ahmadabad, Goa

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

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The first method of distribution used by pizza hut is Home. Office delivery, customers can call pizza hut ahead of time, place an order and the order is delivered to the customers 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 Huts largest competitive advantages is its restaurant style facility. Pizza hut offers a clean place to sit down and enjoy the variety of pizzas, salads and appetizers in a fun, family atmosphere. The third method of distribution is to order online. Selective County Customers can now go on the Internet and place an order for Pizza. The method is useful because it allows customer to view the entire menu, download any special coupons, and order without having to disclose any credit card numbers. Indirect channels: Indirect channels consist of one or more intermediaries between the manufacturer and the final customer. In india both Dominos and Pizza hut do not introduce any indirect channel.
Company

Raw material from warehouse

Dealer

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Consumer

PIZZA HUTS IN INDIA

Single and multiple channels:


Most organizations today employ multichannel marketing i.e. selling to different consumer segments through different channels. The fast food industry too follows this method.

Channel length:
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Channel length refers to the number of channel intermediaries between the manufacturer and the end user in the fast food industry, based on the target consumer.

PRICING OF DOMINOS
Indians are value sensitive. The price was attributed to the high quality of ingredients used. For instance, Dominos sourced its Pepperoni and Jalapeno needs from Australia and Spain respectively. However with competition increasing from Pizza Hut, Dominos introduced the Pizza Mania scheme where it offered a large pizza for Rs 129/-. The demand was overwhelming and the company sold close to 5000 pizzas in the first week of its launch. During late 1998, both Dominos and Pizza Hut were trying to lure the customers with discount coupons by issuing such coupons through several schemes. However Dominos and Pizza Hut were concentrating on data base marketing and below-theline activities and special offers.

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In India Dominos is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. Those people are eager to go for a outing in any festival and as a cheap family restaurant Dominos would be most preferable. They do not need high class ambiences or amusement in the shop so the establish cost is low for the dealers and the price of pizza is very reasonable for the customer. Dominos do not have any fixed customer though they are one of the main competitors of the Pizza hut.

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The Dominos Pizza franchise constantly keeps on inventing ways through it can make a greater impact on the fast food market. That is how the fast food franchise came up with Fun Meal for Four offer. Through this method, the pizza franchise is able to produce more variety in the food delivered to its customer at their door steps. Through its Fun Meal for 4 pack for Dominos Pizza India offers for pizzas at the rate of Rs 180/-. This means charge of one pizza will be just Rs 45/-. This has helped the specialty food franchise to enhance the strength of its customer base. Mainly offers are more attractive for Dominos, mainly student and middle class people are the main customer and they targeted that customers.

PRICING OF PIZZA HUT


In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent
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sales to lower the price below them. The high/low pricing strategy has several advantages. First, the pricing strategy will help segment the market. Different group of customers are willing to pay different prices for the same product. The high/low pricing strategy will also creates excitement. Customers will able to try something new when they purchase. Finally, this strategy will emphasize product and service quality. Pizza Hut sets a high initial price for its products to send a signal to customer that its products are quality and the service is excellent. As there are no such competitors of Pizza Hut which could compete with the quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza Hut is market skimming. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Pizza Hut, as there are no competitors and hence, Pizza Hut is free to charge any price they want. They are charging higher prices due to uniqueness of the product. They satisfy the target market as the food quality is worth in price paid. The pricing strategy is not just to get the worth of quality but also to gain minimum profits before any competitor enters because then Pizza Hut will have to change its pricing strategy. Although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality of food products are not home produced. They are imported from different countries keeping in view the best quality. First, the pricing strategy will help segment the market. Different groups of customer are willing to pay different prices for the same product. The high/low pricing will also create excitement.

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

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PROMOTION

DOMINOS
Promotion, which is known as marketing communication, isa amajor attribute for any product or service. In modern marketing it is more than developing a good accessible product or exact pricing. Ever since it was established, Dominos Pizza India has maintained its position of market leadership with its constant product innovation and maintainance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. Customers can order their pizzas by calling a single countrywide Happiness Hotline 1800-111-123. In fact, Dominos was the first one to start this facility for its customers. Dominos is committed for bringing fun and excitement to the lives of our customers delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed to fulfilling this commitment towards its large and ever growing customer base.

Communication Objectives
Category Need Dominos Master Franchise Model
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Industry analysts believe that Dominos master franchise model was one of the reasons for its success in international market even in light of the global economic slowdown in 2008.

How Dominos international bucked the trend The strong performance of Dominos international franchises in the midst of the global economic slowdown was a widely debated topic among analysts. While some analysts believed that the recession has helped the growth of these chains due to the trading down factor of people preferred to eat at home rather than dine out at expensive restaurants, others believed it was a combination of aggressive marketing and the franchise model that had helped the companybuck the trend. Brand Awareness Promotion and advertisement campaigns The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception, Dominos has been known for its unique promotions that included fast delivery and innovations to cater to a varied palette. The 30 minutes promise In the year 1973, Dominos began a guarantee scheme that its pizza would be delivered in 30 minutes or less of ordering failing which the customer would receive the pizza free.

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Brand Attitude Use of technology Online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn. Brand purchase intention What makes dominos pizza better than its competitors Variety of Pizzas Services offered Quality of pizzas Location of the Outlet Waiting time in the outlet Door step services Low pricing

Developing effective communication Target to age group/class


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Dominos target audience is a consumer who belongs to age group of 14 to 35 years from the Economic Class A or B preferably one who has been exposed to the western culture as well as western style of eating. They are people who are upwardly mobile and dont mind to pay for convenience. In this category teenagers are the most affected by western culture and its eating habits. The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70% of the total sales volume of pizzas in India. As far as the socio economic class is concerned, since Dominos pizza are priced from about Rs.80 onwards. However Dominos have now come now with pizzas ranging from Rs. 39 onwards to target the ever - increasing middle class consumers. Dominos has also segmented the market geographically by deciding to initially cater to only the metropolitan cities and urban areas. They have left out the rural areas due to the low level of awareness regarding western dishes as well as typical Indian patter of eating. 30 minutes campaign This is a campaign in which Dominos offers its customers free Pizzas if they are not delivered in 30 minutes from the time of order. They have a store in a radius of 3 kms in metropolitan cities. Anything which is far away from3 kms doesnt fall in this category. Dominos latest special offer promises a hot and piping pizza delivered on door under 30 minutes, or its free. But 30 minutes is a very short time for a typical Dominos Pizza local delivery, the cities where traffic congestion is a natural way of life.
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Can a Dominos pizza local delivery survive the daily traffic jams? Is the question to be asked. Design the communication: Message strategy Offers by dominos
With every order of pizza and coke/Garlic bread sticks great a dominos pasta for Rs. 39 instead of Rs. 69. Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/- and non veg Rs 79/Get garlic bread only for only for Rs 30/- with any of the pizza mania combinations. Dominos start providing coke/fanta/sprite. Dominos started pizza mania which starts from Rs 35 and we get the topping according to our choice. Web coupons available at web site www.dominos.co.in Discount coupons are being provided with every item purchased. New schemes at regular interval of time according to the taste of the Indian customer.

Creative strategy Latest in dominos

Kwality walls ice-creams in dominos For the first time dominos started offering ice-creams. Selling ice cream in Dominos is also a new sales
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promotion strategy to attract more customers in a new perceptive/innovative way. Dominos has also come up with pasta mania.

Communication mix Every company must follow the eight major marketing communication modes. For Dominos direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Dominos always search for ways to get efficiency by replacing one communication with others. The sustainability among communication tools explains why marketing function need to be coordinated. Advertising It reaches geographically dispersed buyers. Dominos vision is focused on Exceptional people on a mission to be the best pizza delivery company in the world!. Dominos is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this commitment towards it large and ever growing customer base. Its all advertisement are image of core competencies. Their taglines The Pizza Delivery Experts and Hungry Kya? are showing their focusing area in promotion.

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Events/Experiences They are sponsoring some college fest, cultural program and promotion events throughout the country for promotion. Public Relation Dominos constantly strives to develop products that suit the tastes of its customers, thereby bringing the Wow effect (the feel good factor). Dominos believes strongly in the strategy of Think local and act regional. Thus, time and again Dominos has been innovating toppings suitable for the taste buds of the local populance and the Indian market has very well accepted these. Personal Selling
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Dominos constantly strive to make the company an integral part of the lives of the target audiences by getting involved with the clientele at the emotional level and building long-term relationship with them. Thus, Dominos concentrate more on carrying out below-the-line activities in the area it serves. Sales Promotion a) In India, Dominos has been associated with the NGOs devoted to the cause of under privileged childrens. Dominos conduct Store Education Tour (SET) for the under privileged children time-to-time. b) Dominos Pizza India also boasts about its commitment to serve its customers on time by implementing the 30 MINUTES OR FREE service commitment.
c) They are continuously offering new incentives to the customers.

Word of mouth

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

PIZZA HUT
Promotional Strategy: Promotion is a form of cor porate communication that uses various methodsto reach a targeted audience with a certain message in order to achieve specific organizational objactives. Nearly all organizations, whether for profit or not for profit. In all types of industries, engage in some form of promotion. Efforts may range from multinational firms spending large sums on securing high profile celebreties to serve as corporate spokespersons to the owner of a one person enterprisepassing out business cards at a localbusiness persons meeting. Consequently, promotion decisions should be made with an appreciation for how it affects other areas of the company.

Communication Objectives
Category need Worldwide and in India, Pizza Hut has come to synonymous with best pizza under one roof. This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief

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that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza Hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market. A critical factor in Pizza Huts success has been its unique dining experience. Crew members at Pizza Hut strive each day to provide customer mania the kind of service that ensures that every visit of the customer is the memorable one.

Brand Awareness Pizza Hut was among the first multinational brands to enter the food retail sector in India. When the first Pizza Hut restaurant opened in Bangalore the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence. The strength of Pizza Huts success globally lies in a marketing strategy that builds connections with customers everyday in different parts of the world. Many customer service initiatives has been uniquely developed for India and has been greatly instrumental in building an emotional bond with the customer. The crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. While a bell hangs at each Pizza Hut restaurant, which is rung by customers who as they leave wish to thank the serves for yet another memorable unit.

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

Brand Attitude
International brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which serve Jain menus. Pizza Hut has even opened two all vegetarian restaurants in the western state of Gujarat to cater the Jain religious community, those members prefer not to eat at places where meat is served.

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

Brand purchase intention


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Why Pizza hut is preferred than other Variety of Pizza Good ambience Services offered Quality if Pizzas Location of the Outlet Waiting time in the outlet

Communication mix
Advertising Pizza Huts communication has also always struck a chord with the Indian customer. Its very first television commercial in India featured a boy and girl, who meet at a Pizza Hut restaurant in a traditional arranged marriage concept. They lose their inhibitions when the pizza arrives. When the sequel went on air featuring the same couple, now married, with the girls father consoling her over a pizza as her bridegroom waits outside the restaurant to escort her after their wedding the customers involvement was so complete that several wrote in to inquire whether the couple has children. The most recent campaign that was launched with the introduction to the Tandoori pizzas featured a typical Indian wedding procession abandoning the bridegroom when enticed by delicious aromas from a Pizza Hut restaurant. While the famous Good times start with great pizzas slogan has been prominent in the communication, the focus has remained on the best and most distinct pizzas. 74

Sales Promotion Pizza hut laid more emphasis on its restaurant dining experience. Pizza hut localizes it menu to capture local Indian Market. In 2000 Pizza Hut launched its innovative Pizza Pooch menu and Pizza Pooch Birthday Party package exclusively for kids in the 6-10 age groups. It positioned itself as family restaurant as also concentrated on wooing kids. Public Relations In India, eating out is perceived as a form of entertainment. Which is why Pizza Hut serves not only serve our customers great food, they also sing and dance for them. And many of Pizza Huts customers would, we are certain, love to participate in this process. Giving them an opportunity to showcase their talent in the Jig and Jeeto contest. Events and Experiences Pizza hut use their events to reach to the customer and often it is used as a brand building as well as product selling.

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Direct and Interactive Promotion Pizza Hut provides many services online as Birthday reminder service here people can save the birthday date of their friends, relatives, and pizza hut will remind you the birthday date and birthday parties discount. Customers can book online E-coupon and discount offer available to online customers Hot Line Number pizza hut hot line number also provide at online which is 39883988. Even customer can do online order of pizzas. Personal Selling Pizza hut tries to attract the younger generation as their main market segment but they mainly target high and higher middle class customer. They actually bother about customers enjoyment and food not the price. Thus Pizza Hut concentrates more on carrying out abovethe-line activities in the area it serves. Word of mouth It is one of the traditional promotion for any industry. Pizza hut also get benefit from it.

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MARKET FEEDBACK & CONTROL MECHANISMS


On visiting Dominos and Pizza Hut we had the opportunity to interact with lot of customers. All the analysis is based upon the customers of Coimbatore (Tier II city) perceptions may change in different cities where the competition is more. For example, in Mumbai this two pizza outlet faces stiff competition with other pizza companies (U S Pizza, Smokin Joes, Papa Johns, Garcias) which do not exist in Coimbatore. 77

Questions pertaining to the 4pswere asked some of the questions are as follows: 1) Do you have pizza? 2) How frequently do you like to have a pizza, Where do you like to have your pizza? 3) What is the frequency of each? 4) If yearly or rarely what are the reasons? 5) If you think of pizza which brand of pizza are you thinking of? Why? (Product recall and Brand recognition) 6) Which pizza do you prefer dominos/ pizza hut/ and any other and for what reasons? 7) Who are the principle decision makers in the buying process? 8) What is the 1st thing that comes into your mind when you hear about Dominos? 9) What are expected benefits apart from food like enjoyment service offers? 10) Suggestions if any

All the answers were noted down and analysis was made. Interestingly there were a lot of correlation between the customers o Pizza Hut and Dominos. These are all explained in this section.

Also a common section of customers are observed at each place. Dominos attract people who have a little less disposable income than the customers at Pizza Hut.

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

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

ANALYSIS AND INTERPRETATION


(Primary data collected from Mumbai City. This data may vary from cities) 1) How many times one visit to a restaurant?

Half of the customers visit restaurants only once in a month. At the same time, 10% of the customers visit restaurant daily.

2) Preference of crusines

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Out of all the customers who dine out, 30%of customers prefer having pizzas. Pizza sales have now grown in food market and has crossed Chinese cuisine food also which stands with 20% customer preference. 3) Frequency of having pizza

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

4) Location Preference for having pizza

MISSING PHOTO

5)

Preferred Brand of Pizza

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

6) What is the brand recall of Pizza Hut

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Enjoyment and dining experience is the greatest factor that comes into customers mind when they think about pizza hut. One interesting fact about pizza hut is that 10% of customers like the concept of ringing the bell kept in all pizza hut outlets as a mark of satisfied service and the stewards all together thanking them.

7) What is the brand recall of Dominos

Food quality and affordable price is what comes into the mind of 60% of Dominos customer. The enjoyment and experience factor is lesser here when compared to Pizza Hut.

MARKETING STRATEGIES
Overall both the companies achieve what they want to as for Dominos they have achieved in positioning themselves as the fastest serving pizza outlet and quenching the hunger. Pizza Hut has come to become synonymous with the best pizza under one roof. They have positioned themselves for their unique dining experience.

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

Strategic Formulation
Overall Cost Leadership Differentiation and Focus Thus is achieved very effectively by Dominos as they do not intend to lose their focus from delivering pizzas from home. Dominos Brand this mainly relates to service and delivery neither they promote their in dining experience nor they spend revenue for it. Dominos vision is focused on Exceptional people on a mission to be the best pizza delivery company in the world! Thus Dominos are able to provide good pizzas to relatively lower rate as they dont spend much for the restaurant.

Pizza Huts Premium price Pizza Hut is committed for providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. They stress heavily on the dining experience and the ambience. Thus at each point company charges a premium.

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

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Creation, Communication and Capturing Value Dominos Dominos Pizza constantly strives to develop products that suit the tastes of its consumer and hence delighting them. Dominos believe strongly in the strategy of Think global and act local. Thus, time and again Dominos Pizza has been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian consumers. Further, providing value for money at affordable products to the consumers has been Dominos motto. Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers. The Brand positioning of Khushiyon ki Home Delivery (Happiness Home Delivered) is the emotional benefit Dominos offer to consumers. Delicacies that do not rip wallets have always got the crowd coming back to the Dominos although its ambience is not up to that of its competitors. They have the maximum offers with respect to the discounts they offer throughout the year. Thus the customer has the maximum incentive to come back to Dominos. Hungry Kya?, promotion where hunger gets quelled in less than 30 minutes was a great value proposition. All other activities, be it new variants, great service, timely deliveries or more for the same price the effort of Dominos has always been directed towards making its customers happy, creating, communicating and delivery value. Pizza Hut Workforce of Pizza Hut is chosen with the motto Together we grow with primary concern being quality of service, be it in terms of delivery or quality of pizzas. A critical factor in Pizza Huts success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences o customers in different 85

parts of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly established itself as a brand with an Indian Heart. Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat later in Ahmedabad and Chowpatty, were it offers a Jain menu and all root based ingredients. Moreover Pizza Hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches. They also have variety of combinations of menu items which a customer can choose so that the both the customer and the company can have a win-win situation. The company can have the maximum of the consumer surplus at the same time the consumer might feel that this was the best offer. From the menu card one can see the family size variants and the different pizza combinations in the same one pizza are all the different ways of pricing. The company attains the maximum profit in the meat items, so they give the selection of pizza slices of different varieties and they are clubbed together to form a single pizza. Once the customer dines / orders at home, normally discount coupons are given to the customer so that so there is an incentive for the customer to order from pizza hut. Thus customers are forced to maintain loyalty towards pizza hut. Sustaining, building relationships and Exploiting Changing Conditions Over the years Pizza Hut has also developed a successfully introduced a range of products especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spick Paneer and Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the menu offers the option of a complete meal. It includes appetizers, Salad Bar where the customers can make their own fresh salads, a range of soups, pastas and desserts etc.

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Pizza Hut also has a community called as VIP - Members joining this club is at no extra cost one can avail greater offers. Mean while Dominos are not behind Pizza Hut in introducing local delicacies they have different menus in different cities in India. Dominos believes strongly in the strategy of Think global and act local. Thus, time and again Dominos Pizza has been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian consumers. Further, providing value for money at affordable products to the consumers has been Dominos motto. Also sizes of pizzas are relatively large as compared to that of Pizza Hut. The discount offers at Dominos are main incentive to build long term relationships. Dominos also courier discount coupons at consumer home. This serve as an incentive for the customers to visit Dominos time and again.

Rating of the Marketing Strategy Both the companies are good in achieving their goal and are equally good in achieving what they are intend to Tastes of pizzas of both the companies are good equally in their own sense. Marketing strategy of Pizza Hut is better than the Dominos because they offer customers a holistic approach. Pizza Hut markets their product not only as a food but as an experience which is worth enjoying. People tend to remember experiences more than the food. Thus, overall Pizza Huts marketing strategy has an edge over Dominos.

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SUGGESTIONS
Dominos
The dining conditions have to be changed drastically if Dominos have to target the premium segment of customers. They are way behind Pizza Hut in the dining experience. Some of the Dominos restaurants lack even basic amenities. Due to this a condition can occur where customers judge the quality and the taste of the pizza with respect to the restaurant environment and ambience. Thus to have a greater market share and tap premium segment of the market, Dominos provide good quality restaurants. There should also be provision for music, TVs, kids zone etc in the restaurant. By doing this they can even charge a little bit more on the food items.

Pizza Hut
Reduce the menu costs it is way too expensive for a middle class Indian. Middle class forms the maximum population of India and reducing the costs of pizza can increase elasticity of demand greatly. Invariably there are no discounts, or discounts if offered are very less. Thus Pizza Hut should offer more discounts to tap more customers.

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Their reach is very less as compared to Dominos (as they have only premium restaurants) which deprives are off customers from having Pizza Huts experience. Hence they should increase their presence.

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