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Project Report On: Marketing Startegies of Pizza Hut & Dominos
Project Report On: Marketing Startegies of Pizza Hut & Dominos
Subject:
Marketing Stratergies & Plans
Submitted By:
Mr. Hitesh Rohra
Roll No. 25
M.Com. Part – I, Semester – I
UNIVERSITY OF MUMBAI
2014 – 2015
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Marketing Strategies Of Pizza Hut
And Dominos
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This is to certify that, Mr. Hitesh Rohra of M.Com Part – I, has successfully
Stratergies Of Pizza Hut & Dominos” under my guidance for the academic
knowledge.
________________
External Examiner
DECLARATION
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I, Mr. Hitesh Rohra student of SMT. CHANDIBAI HIMATMAL
_______________
Mr. Hitesh Rohra
ACKNOWLEGEMENT
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To list who all have helped me is difficult because they are so
numerous and the depth is so enormous.
I would like to acknowledge the following as being idealistic
channels and fresh dimensions in the completion of this project
I take this opportunity to thank the University of Mumbai
forgiving me chance to do this project.
I would like thank my Principal, Dr. Padma V. Deshmukh for
providing the necessary facilities required for completion of this
project.
I would also like to express my sincere gratitude towards my
project guide Prof. Mr. Prakash Mulchandani whose guidance
and care made the project successful.
I would like to thank my college library, for having provided
Various reference books and magazines related to my project.
Lastly I would like to thank each & every person who directly or
indirectly helped me in completion of the project especially my
parents & peers who supported me throughout my project.
EXECUTIVE SUMMARY
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During the past four decades Pizza Hut & Dominos has built a reputation
for excellence that has earned the respect of consumers and industry
experts alike. Building a leading pizza company has required relentless
innovation, commitment to quality and dedication to customer service
and value. The qualities of entrepreneurship, growth and leadership have
characterized Pizza Hut & Dominos business through more than four
decades of success. Through the strength of its heritage, its culture and its
people and franchisees, Pizza Hut looks forward to more success in future.
There are different objectives of every organization. In order to achieve
these objectives different targets are set. Targets pass down the hierarchy
depending on the nature of the business. Therefore, in order to achieve
the objectives, management decides on different strategies. These
strategies are divided into many sub-parts and are useful for the running
of the business. The employees and the management know what they
have to achieve through the targets which have been set to them and the
strategies they have adopted help them know the way they will achieve
the objectives. Similarly, Pizza Hut has different targets set to them and
they have adopted different strategies to successfully achieve the targets
set. These targets are set by the RSC i.e. the restaurant support centre in
Karachi. These targets are passed on to the RGM (restaurant general
manager) and he passes them to the workforce. These targets fall within
the organizational structure in which there are many people who have
different targets to achieve. In order to successfully achieve the targets
they need to co-operate and work in a friendly environment.
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• To know the satisfaction level of customer on pizza of pizza hut.
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CONTENTS
1 Chapter-1: Introduction
09
5 References/Biblography
65
6 Appendices
69
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CHAPTER 1
INTRODUCTION
Introduction
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Fast food is one of the world’s largest growing food types. India’s fast food industry is
growing by 40% .the multinational segment of Indian fast food industry is up to Rs. 20
billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6
years, foreign investment in this sector stood at rs.3600 million which is about one-fourth
of total investment made in this sector. Because of the availability of 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 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 eating habits are very slow moving with barriers to eating out entrenched in
certain sectors of Indian society. The growth in nuclear families, particularly in urban
India, exposure to global media and western cuisine and an increasing number of women
• McDonalds’
• KFC
• Pizza hut
• Dominos pizza
• Barista
• Subway
The main reason behind the success of the multinational chains is their expertise in
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standardized operating procedures in their restaurants, a strength that they have
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.
• Pizza hut
• Dominos
• Others
• Smokin joe’s
• Garcia’s
• Papa john’s
~ 11 ~
• Us pizza
• These players mainly give competition to pizza hut and dominos in tier I cities like
Mumbai, Bangalore, Chennai etc. They do not have much presence in tier ii cities.
The domino’s brand was founded in the United States of America in 1960 by Thomas
and James Monaghan. Since then, that business has grown into a global network of over
8,500 pizza stores in more than 60 countries, involving over 2,000 franchises. Over its
49-year history, domino’s has developed a simple business model focused on delivering
quality pizzas in a timely manner. Domino’s pizza, inc., completed its initial public
offering in 2004 and is listed on the New York stock exchange. (source: domino’s pizza,
inc.)
Domino's pizza India ltd. was incorporated in March 1995 as the master franchisee for
India and Nepal, of domino's pizza international inc., of U.S.A. Moreover, the company
holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly
owned subsidiary..
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 the India retail report 2009,dominos are
the largest pizza chain in India and the fastest growing multinational fast food chain
Domino's vision is focused on " exceptional people on a mission to be the best pizza
delivery company in the world! ". Domino's is committed to bringing fun, happiness and
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convenience to the lives of our consumers by delivering delicious pizzas to their doorstep
in 30 minutes or less, and its efforts are aimed at fulfilling this commitment towards its
Domino's pizza constantly strives to develop products that suit the tastes of its consumers
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 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
The brand positioning of khushiyon ki home delivery (happiness home delivered) is the
Major products they offer are pizzas, appetizers, pastas, cakes and beverages.
Pizza hut was started 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
opened 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.
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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
Pizza hut is one of the flagship brands of yum! Brands, 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
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
Worldwide and in India, pizza hut has come 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 destination product – which everyone seeks. It is this belief that
has ignited the passion to create, innovate and serve the finest product the industry has to
Pizza hut is committed for providing uncompromising product quality, offering customers
the highest value for money and giving service that is warm, friendly and personal. A
critical factor in pizza hut’s success has been its unique dining experience. Crewmembers
~ 14 ~
at pizza hut strive each day to provide ‘customer mania’ – the kind of service that ensures
A critical factor in pizza hut’s success has been a menu that has constantly evolved and
different parts of the world. In having understood the pulse of the customers in India,
pizza hut has clearly established itself as a brand with an Indian heart. Besides offering an
extensive range of vegetarian pizzas, it was the first pizza chain to open a 100%
vegetarian restaurant in India in surat and later in ahmedabad and chowpatty, where it
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, 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 proprietary pan pizza and stuffed
crust, in India the 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
Core Competencies
Pizza Hut
Tracing Footsteps
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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 pizza lovers. In
addition to this, pizza hut takes pride in having the only 100% vegetarian pizza hut in the
world at ahmadabad, surat and mumbai’s chowpatty . It also has a special jain friendly
menu without root based ingredients and even serves salad dressings without eggs!!!
Thinking out of the box was never new at pizza hut. With the “palat” campaign, they
even nudged Indians to eat pizza backwards. The vehicle for this change was the stuffed
crust pizza which has become a huge hit. The pizza’s outer crust has a stuffing of
mozzarella cheese and one can run into people eating these pizzas backwards in many
Pizza hut is really going global. Tuscani pastas 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.
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 busy bees.
Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday
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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 busy bees.
Dreaming Big
Pizza hut aims to be the number one restaurant chain in India and expects a turnover of
$1 billion by 2015. The yum restaurants plans to invest $150 million in the next 5 years
Dominos
Pizzas topped with cheese and happiness, dominos is committed to put an extra smile on
its customers’ faces, with a mission of “exceptional people on a mission to be the best
Tracing Footsteps
Many pizza lovers would still remember the havoc that occurred in mid april 2009 in
which some dull witted dominos employees posted a kitchen video of dominos that
clearly showed the lack of sanitation in their kitchen in youtube. The video attracted
millions of views in a few hours and was indeed viral. Dominos did an excellent job of
crisis management and used social media to spread a viral video in which the company
president took control of the situation and apologized to the public, announced separation
of the company from wrong doers and their prosecution. He also guaranteed that such
issues will not happen again. Dominos clearly proved that communication meant
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Through The Looking Glass
It has never been difficult for dominos to find out novel ways to enthrall its customers.
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. Khushion ki home delivery,
where the order gets delivered in less than 30 minutes. All other activities, be it new
variants, great service, timely deliveries or more for the same price the effort of dominos
Pizza Hut
Workforce of pizza hut is chosen with the motto “together we grow” with primary
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 values include customer focus, trust in people,
recognition, accountability, excellence, positive energy and team work. The customer
focus is so high that they have separate systems in place to satisfy vegetarian customers.
Vegetarian dishes are prepared and served using separate green spatulas.
Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday
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Pizza hut considers its employees to be the greatest strength. From the viewpoint of a
customer it is the variety 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 entrants 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 been 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
located in noida after careful evaluation. Employees at dominos are also smiling as they
get incentives on meeting sales target and are also credited for their performance.
Dominos has always been noted for the new items that spring up often in their menu.
Marketing department does a careful analysis of growing demands 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 takes pride in its unbeatable delivery system. Delivery within 30 minutes
campaign was indeed revolutionary and is the best core competency that makes dominos
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SWOT Analysis
Pizza Hut
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Dominos
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Competitors
Pizza Hut
The major competitors who lock horns with pizza hut are
• Pizza corner
• Dominos
• Mcdonald’s
• Barista
• Subway
• Papa john’s
Dominos
• Pizza hut
• Pizza corner
• Mcdonald’s
• Barista
• Subway
• Papa john’s
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An analysis of the competitors of pizza hut and dominos
Weakness Strength
Subway Still adapting to Indian taste Kings of sandwich markets
Expensive Customized preparations
Pizza corner Low investments in ad Variety
Delivery not satisfactory Quality
Kfc More of chicken, less scope for Variety masters for chicken
veggies
Mcdonald’s Less variety Burger leaders
Fast service
More offers
Papa john’s Expensive Excellent quality
Variety
Ccd Concentrate more on beverages, less Quality
options on snacks
options on snacks
Marketing Strategies
Pizza Hut
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In 1991 under the guidance of a visionary narasimha rao and his comrade manmohan
singh India marched towards a new era of liberalisation, privatisation 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 a concern for middle class Indians with
lesser purchasing power and disposable income. The status is steadily improving as more
Embracing Technology
Locating stores and placing orders has never been easier for pizza 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.
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.
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Dominos
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.
Embracing Technology
Locating stores and placing orders has never been easier for pizza 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.
Dominos outlets are prevalent in every small-big town across the world. Dominos has
taken cues from changing preferences of its customers and put together a tantalising
Segmentation
Pizza Hut
Geographic
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City – they also segment the cities as class i, class ii, metros, small towns.
Demographic
amily income – middle class, upper middle class, high class dual income earners –
yes/no
Psychographic
Behavioral
status – low, medium, high user status – first time, regular, non-user
Dominos
Geographic
City – they also segment the cities as class i, class ii, metros, small towns.
Demographic
family income – lower middle class, middle class, upper middle class, high class
Psychographic
Behavioral
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 from 25 years
to 40 years and also dual income earners family. They aim basically at the upper middle
corporate lunches. 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 customer.
Dominos
• In geographic segment they targeted countries where there were no dominos 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
21years), young adults ranging from 21 years to 35 years. They aim basically at the
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middle class, upper middle class income families.
• In behavioral segmentation it was found that they were targeting the first time users
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 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 party
invites with different themes 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 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
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companies must be 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
Competitive points of parity – competitive points of parity in case of pizza hut is that,
even though 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 procedure that is followed in
five star category hotels and pizza hut is also following it to emphasize on service quality.
In case of dominos, they are not costly as pizza hut and do not offer great ambience to
customers, but offer good pizzas at nominal price. They concentrate on turnover of
covers and cater to customers who don’t have time to spend on food and just stop over
for refreshment. Moreover, dominos mainly looks into home delivery of pizzas and are
experts in it.
Product
Pizza Hut
From the above diagram we can see that pizza hut has enjoyment as a basic product but
it provides food for it. Thus a person having a basic need of enjoyment can go to pizza
hut and have pizza which is the company’s core product. Hot pizza and good taste are
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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.
Product Differentiation
Worldwide and in India, pizza hut has come 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 destination product – which everyone seeks. It is this belief that
has ignited the passion to create, innovate and serve the finest product the industry has to
offer, while Setting standards for others to strive to replicate. Pizza hut is committed to
providing uncompromising product quality, offering customers the highest value for
money and giving service that is warm, friendly and personal. A critical factor in pizza
hut’s success has been its unique dining experience. Crewmembers at pizza hut strive
each day to provide ‘customer mania’ – the kind of service that ensures that every visit of
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 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 appetizers, cakes, and desserts
etc.
• Mass Customisation
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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 whatever pizza hut can offer.
The most unique feature is that there is ‘pan 4 all’ scheme where one can select 4
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 hut’s products have very high conformance quality i.e. All the products produced
• 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
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
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Pizza hut’s style of delivering the pizza to the customer is quite an experience. The
restaurant is aesthetically designed; all the staff members are uniquely dressed. Managers
dressed in special uniforms. Also the tables, menu, are all placed in a good manner. This
on itself is quite impressive. All orders placed in 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 customer haves the food. Any pizzas delivered outside 30 minutes are
given free. Also discount coupons are given to the customer in case one doesn’t want a
free pizza.
• Co- Branding
Pizza hut has joined hands with visa for availing various offers. However this offer is only
for the in dining i.e. One cannot avail the 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.
The packaging of the pizza has been quite extraordinary in the sense that, it serves the
• 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 into
the pizza.
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 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
All the pizzas covered in paper boxes described above are packaged into a special
delivery bags for retaining the heat. Thus we can observe that from every labelling,
packaging the company tries to imbibe the brand of pizza hut in the minds of consumers.
Place
Once the product has been decided upon and the market segmented, targeted and the
product positioned, it is time to decide how and where the marketer can deliver the value
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(product) to the customer. This is done through marketing channels that make the product
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 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 intermediaries, thus
Domino’s pursues a medium push strategy in its channel marketing. The advertising
Pizza hut follows more or lesss the opposite strategy. Pizza hut has mastered the art of
pull strategy. It pioneered the practice of advertising and promotion in the fast food
industry. Pizza hut achieved this remarkable feat by adopting a different marketing
~ 35 ~
strategy that involved increasing ambiences and amusement for the customers.
Pricing Of Domino’s
Indians are value-sensitive, not price-sensitive. The price was attributed to the high quality
of ingredients used. For instance, Domino’s sourced its Peperoni and Jalapeno needs
from Australia and Spain respectively. However, with competition increasing from Pizza
Hut, Domino’s introduced price cuts, discounts and freebies to attract the customers. In
1998, Domino’s 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
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 below-the-
In India Domino’s is trying to attract the middle class and lower middle class people who
are interested to spend their money on pizza but in low price. Those people are eager to
go for a outing in any festival and as a cheap family restaurant Domino’s would be most
preferable. They do not need high class ambiences or amusement in the shop so the
establishment cost is low for the dealers and the price of pizza is very reasonable for the
customer. Domino’s do not have any fixed customer though they are one of the main
The Domino’s Pizza franchise constantly keeps on inventing ways through which it can
make a greater impact on the fast food market. That is how the fast food franchise came
~ 36 ~
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 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 charge 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
In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the
retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge
a price that is above the competition, but also promote frequent sales to lower the price
below them. The high/low pricing strategy has several advantages. First, 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 creates
excitement. Customers will be 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 customers 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
~ 37 ~
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 the uniqueness of the product. They satisfy the
target market as the food quality is worth the price paid. The pricing strategy is not just to
get the worth of quality but also to gain maximum 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 food products are not home-produced. They are imported
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
In India Pizza hut is targeting the rich and higher middle class people with a great
system and demanding the higher price for the pizzas. In the pizza hut different types of
foods are available like appetizer, soup & salad, beverages, pasta etc. So for the varieties
kind of food the pricing strategy is different in the pizza hut. Their customers are more or
Promotion
Domino’s
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Promotion, which is known as marketing communication, is a major attribute for any
Ever since it was established, Domino’s Pizza India has maintained its position of market
leadership with its constant product innovation and maintenance 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
Domino's was the first one to start this facility for its customers.
Domino's is committed for bringing fun and excitement to the lives of our customers 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.
Communication Objectives
Category Need
Industry analysts believed that Domino's master franchise model was one of the reasons
for its success in international markets even in light of the global economic slowdown in
2008.
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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 believed that the recession had helped the growth of these chains due to the
'trading down factor' of people preferring to eat at home rather than dine out at expensive
franchise model that had helped the company buck the trend.
Brand Awareness
The pizza delivery business had traditionally been promotion driven. Coupons and
discounts were offered by all pizza delivery chains to woo customers. Since its inception,
Domino’s had been known for its unique promotions that included fast delivery and
In the year 1973, 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 free.
Brand Attitude
Use of technology
Online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to
further exploit the increasing potential of the online medium as one of the promotional
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Brand Purchase Intention
• Varity of Pizza’s
• Services offered
• Quality of pizza’s
• Low pricing
Domino’s target audience 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 affected
by western culture and its eating habits. The age group has been restricted to the range of
14 to 35 years as this age group accounts for about 70% of the total sales volume of
pizzas in India.
As far as the socio Economic class is concerned, since Domino’s pizzas are priced from
about Rs.80 onwards. However, Domino’s have now come out with pizzas ranging from
~ 41 ~
• 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 started offering ice
creams .Selling ice cream in Domino’s is also a new sales Domino’s has also segmented
the market geographically by deciding to initially cater to only the metropolitan cities and
urban areas. They have left out the rural areas due to the low level of awareness regarding
30 min campaign
This is a campaign in which Domino's offers its customers free Pizzas if they are not
They have a store in a radius of 3 kms in major metropolitan cities. Anything which is far
Domino's latest special offer promises a hot and piping pizza delivered on door under 30
minutes, or it's free. But 30 minutes is a very short time for a typical Dominos Pizza local
delivery, 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 natural way of life.
~ 42 ~
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 mania combinations.
• Dominos started pizzas mania which starts from Rs 35 and we get the toping according
to our choice.
Communication Mix
Every company must follow the eight major marketing communication modes. For
Domino’s direct selling and interactive selling is not needed though they are involved in
internet and cable TV promotions. Domino’s always search for ways to gain efficiency
Advertising
people on a mission to be the best pizza delivery company in the world! ". Domino's is
~ 43 ~
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 core competencies. Their taglines “The Pizza Delivery
Experts” and “Hungry kya?” are showing their focusing area in promotion.
Events/ Experiences
They are sponsoring some college fest, cultural program and promotional events
Public Relation
Domino's constantly strives to develop products that suit the tastes 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 taste buds of the local populace and the Indian market
Personal Selling
Domino’s constantly strive to make the company an integral part of the lives of the target
audiences by getting involved with the clientele at the emotional level and building long-
term relationship with them. Thus, Domino’s concentrate more on carrying out below-
Sales Promotion
• In India, Domino’s has been associated with the NGO’s devoted to the cause of
~ 44 ~
underprivileged Children’s. Domino’s conducts Store Educational Tour (SET) for the
• Domino’s Pizza India also boasts about its commitment to serve its customers on time
Word of mouth
This tool is very powerful for promotion in the fast food industry. Low price and good
• The Study Is Helpful To Company For Knowing That How Many Persons Are
• During Study Researcher Get Large Experience And Introduced Himself In Front Of
New People.
• This study can be helpful to the company for conducting any further
research.
~ 45 ~
Methodology
suggested solutions, collecting, organizing and evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether
Research Design
Research design aids the researcher in the allocation of limited resources by posing
crucial choices in methodology. Research design is the plan and structure of investigation
so conceived as to obtain answers to research questions. The plan is the over all scheme
or program of the research. It includes an outline of what the investigator will do from
writing hypothesis and their operational implications to the final analysis of data.
The design for this study is descriptive research design. This design was
as well as the views held by individuals about the system. The views and
opinions of employees about the system help to study the suitability of the
~ 46 ~
Sampling Techniques
Sample Size
representative.
Data Collection
Primary Source
The primary source of data is through Questionnaire. The main reason for
Secondary Source:
retrieved from Journals, Websites and Magazines. Secondary data will consist
of different literatures like books which are published, articles, internet , the company
manuals and websites of company Data from existing records created for other purposes
(secondary sources)
~ 47 ~
Such as data from report cards, membership list or social service agency records.
publications and so forth.The information for project report has been collected from
websites, books, unstructured interviews etc. therefore, the sources of information in this
The data for this study has been collected through primary sources. Primary data for this
study was collected with the help of Questionnaires and evaluation feedback forms. The
extra information was collected through interviews with the employees at various
companies.
The methodology used for data analysis consist of pie chart, Tabulation,
of data.
~ 48 ~
CHAPTER 2
DATA PRESENTATION
~ 49 ~
Q1. How often do you visit Pizza Hut?
MONTHLY
WEEKLY
OCCASIONALLY
~ 50 ~
Pizza hut Dominos Other
40% 40% 20%
PIZZA HUT
DOMINOS
OTHER
Q3. Through which media you are getting information about Pizza Hut?
(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Other’s
~ 51 ~
TV
NEWSPAPER
PAMPHLETS
BILL BOARDS
OTHERS
Q4. Would you try a new food item launched Pizza Hut :
Yes No
65% 35%
~ 52 ~
YES
NO
Q5. Specify your satisfaction with Pizza Hut according to the Quality?
~ 53 ~
EXCELLENT
GOOD
AVERAGE
POOR
~ 54 ~
EXCELLENT
GOOD
AVERAGE
POOR
~ 55 ~
EXCELLENT
GOOD
AVERAGE
POOR
Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.
QUALITY
~ 56 ~
Pizza Hut
Domino’s
Pizza Corner
Nirula’s
STORE
Pizza Hut
Domino’s
Pizza Corner
Nirula’s
SERVICE
Pizza Hut
Domino’s
Pizza Corner
Nirula’s
~ 57 ~
AMBIANCE
Pizza Hut
Domino’s
Pizza Corner
Nirula’s
~ 58 ~
CHAPTER 3
DATA ANALYSIS
~ 59 ~
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 other pizza companies (US
Pizza, Smoking Joe’s, Papa John’s, Garcia’s) which do not exist in Coimbatore.
Q3. Through which media you are getting information about Pizza Hut?
~ 60 ~
According to the study
• 15% of customer get information about pizza hut from bill boards
• 25% of customer get information about pizza hut from other media
Q4. Would you try a new food item launched Pizza Hut?
• 65% of customer would like to prefer the new items launched by pizza hut
• 35% of customer would not like to prefer the new items launched by pizza hut
Q5. Specify your satisfaction with Pizza Hut according to the Quality?
~ 61 ~
According to the study
Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.
~ 62 ~
with pizza hut, pizza corner and dominos
• Mostly 60% of the customers come here for food and the others for enjoyment as
• Most customers are from the middle income group or students whose disposable
• Also the location of the restaurant mattered a lot as many people come to Dominos
• Even we had food in the restaurant and we also found the taste to be great!
• Generally 65% of the orders are either take away orders or placed from outside. In
• The company’s product recall 95% of the times relates to Delivery in 30 minutes or
• Dominos Brand thus relates mainly to service & delivery neither they promote their in
~ 63 ~
dining experience nor they spend revenue for it.
• Mostly 80% of the customers come here for enjoyment, ambience and the rest
• Generally 70% of the orders are in house orders i.e. dining. Orders which are either
take away or placed from outside contributes only 30% of the revenue
• The company’s product recall 90% of the times relates to ambience and enjoyment
• Pizza Hut as a brand thus relates mainly to ambience and enjoyment with pizza.
Hence they promote their in dining experience with the tagline ‘good friends great pizza’
~ 64 ~
Chapter 4
~ 65 ~
Conclusion
Pizza Hut has many targets which it has achieve in a given period of time. The time-
period is mostly a year. Therefore, in order to fulfill the targets different strategies are
adopted by Pizza Hut. It can be concluded that these strategies have been successful and
there is flexibility in the strategies, as they can be changed with the changes in the market
conditions as well as the targets. Indians are value-sensitive, not price-sensitive. The price
was attributed to the high quality of ingredients used. For instance, Domino’s sourced its
Peperoni and Jalapeno needs from Australia and Spain respectively. However, with
competition increasing from Pizza Hut, Domino’s introduced price cuts, discounts and
freebies to attract the customers. In 1998, Domino’s 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. The objectives of
promotion are to introduce a new product, stimulate demand, change the short-term
behavior of the customers, and encourage repeat or greater usage by current customers.
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
Suggestions
~ 66 ~
Dominos
• The dining conditions have to be changed drastically if Dominos have to target the
• They are way behind Pizza Hut in the dining experience. Some of the Dominos
• Due to this a condition can occur where customers judge the quality and taste of the
• Thus to have a greater market share and tap premium segment of the market,
• There should also be provision for music, TV’s, kids zone etc in the restaurant
• By doing this they can even charge a little bit more on the food items
Pizza Hut
• Reduce the menu costs; it is way too expensive for a middle class Indian.
• Middle class forms the maximum population of India and hence reducing the costs of
• Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut
• Their reach is very less as compared to Dominos (as they have only premium
restaurants) which deprives far off customers from having Pizza Huts experience. Hence
Limitation
~ 67 ~
• The survey was conducted within the limited time frame; so few shortcoming may be
expected.
• The finding of the survey is strictly based on the responses of the respondents. it is
• The study does not represent classes of managerial professionals not interviewed,
Biblography
Websites:
• http://www.oppapers.com/subjects/pizza-hut-pricing-strategy-page1.html access on
~ 68 ~
• http://www.religiondispatches.org/archive/atheologies/2221/from_
%E2%80%98management_gurus%E2%80%99_to_%E2%80%98corporate_chaplains
• http://www.indiastudychannel.com/resources/2639-Bsc-it-rd-semester-Syllabus-
• http://www.drpaulwong.com/index.php?
option=com_content&view=article&id=83:spirituality-and-meaning-at-
• http://www.workplacespirituality.info/SpiritualityCreativityBusiness.html (Accessed
on 4 March 2011)
• http://www.freebizplan.org/business_strategies/soft_skills/spirituality.htm (Accessed
on 4 March 2011)
Appendix
Questionnaire
Name: Gender: M / F
~ 69 ~
(i) Weekly (ii) Monthly (iii) Occasionally
Q3. Through which media you are getting information about Pizza Hut?
(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Other’s
Q4. Would you try a new food item launched Pizza Hut?
Q5. Specify your satisfaction with Pizza Hut according to the Quality?
~ 70 ~
Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.
~ 71 ~