CHAPTER 1

INTRODUCTION
Introduction
Fast food is one of the world’s largest fast growing industry types. India’s fast
food industry is growing by 40%. The 6000 cr fast food retail industry is
mainly dominated by the multinational players and the key players which are
active in the research of the food retailing. 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 joining the workforce have had an impact on eating out trends.

Major players in fast food are:

 McDonald’s
 KFC
 Pizza hut
 Dominos pizza
 Café coffee day
 Subway

Domino's and Pizza Hut, the two big US fast food chains entered India in
1996. Each claimed it had the original recipe as the Italians first wrote it and
was trying desperately to create brand loyalty. Domino's and Pizza Hut - tried
to grab as large a slice of the pizza pie as possible.

While Pizza Hut relied on its USP of "dining experience", Domino's USP was
a 30-minute delivery frame. To penetrate the market, both the players
redefined their recipes to suit the Indian tastes. Domino's went a step ahead by
differentiating regions and applying the taste-factor accordingly. Domino's
also made ordering simpler through a single toll-free number throughout the
country.
Domino's and Pizza Hut expanded their market ever since they entered India.
Pizza Hut is the world's largest casual dining restaurant chain with over
13,000 restaurants across 97 countries and 143 stores across 34 cities in India.,
including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune,
and Chandigarh and Yum! is in the process of opening Pizza Hut restaurants
at many more locations to service a larger customer base across the country.

Today Domino's Pizza India has grown into a countrywide network of more
than 300 stores with a team of over 9,000 people. According to the India
Retail Report 2009, Domino’s were the largest Pizza chain in India and the
fastest growing multinational fast food chain between 2006-2007 and 2008-
2009 in terms of number of stores.

This research is based on service comparison of pizza hut and dominos.

Delivering quality service is of utmost important. This research is based to test
the quality of service and comparison between two pizza Houses. The fast
food industry of India is experiencing phenomenal growth and is one of the
fastest growing sectors in the country, with the compounded annual growth
rates of the market crossing 25%. Further, on the back of changing and busy
lifestyle, fast emerging middle class population and surging disposable
income, the industry will continue to grow at a pace in coming years. It now
accounts for roughly half of all restaurant revenues in the developed countries
and continues to expand there and in many other industrial countries in the
coming years. But some of the most rapid growth is occurring in the
developing world; where it's radically changing the way people eat. People
buy fast food because it's cheap, easy to prepare, and heavily promoted. This
paper aims at providing information about fast food industry, its trend, reason
for its emergence and several other factors that are responsible for its growth.

This report provides extensive research and rational analysis on the Indian fast
food industry and tracks the changing dynamics of the market. It features
market performance, key related sectors and competitive landscape of the
market. The research study looks into the market condition and future
forecasts, and outlines current trends and analyses. It has been made to help
clients in analyzing the opportunities, challenges and drivers vital to the
growth of fast food industry in India.

For the purpose of this report, Fast Food Industry includes fast food
restaurants, teahouses, coffee shops and juice bars in India.
Consumers will be feeling the impact of the crisis far more over the coming
months and will have to adjust their daily habits and attitudes accordingly.
There are already clear signs pointing in this direction, which are not
necessarily detrimental to food retail. In times of economic crisis, the
cocooning effect tends to emerge and this involves consumers focusing
increasingly on activities within their own homes. For example, they will go
out less in favor of enjoying evenings in. These behaviors will impact
primarily on the restaurant industry, with the lack of consumption outside the
home made up for by the purchase of food products to be eaten at home, the
research group noted - something which has already been seen in a number of
countries. Although only around half of consumers will actually be affected by
the crisis, the situation will have a major impact on food retail. The various
sectors, industries and retail will all be affected by the economic crisis to
varying degrees. There will be losers, but also winners in this downturn.
Objective

(i) To find out the comparative analysis between Pizza-hut and

dominos-pizza.

(ii) To check out the preferences of the people or the consumers.

(iii) To find out which factors are more preferred by the

customers.

(iv) To know the customer satisfaction towards Pizza Hut and

Dominos.

Literature review
The fundamental factors that contribute to customer satisfaction in
restaurants include food quality (hygiene, balance, and healthiness),
service quality, physical provision (layout, furnishing, and
cleanliness), atmosphere (feeling and comfort), and service received
(speed, friendliness, and care) during the dining experience (Jones,
1983; Johns & Pine, 2002), which in turn determines customers
behavioral intentions toward the restaurants. Therefore it is important
to identify the factors that affect dining experiences.
Service Quality

The service literature has demonstrated that customers are becoming

increasingly sensitive to service elements and the overall quality of service
offered by an organization ( Parasuraman, Zeithaml &Berry, 1988). Various
researchers have developed alternative concepts for service quality, like the
Nordics (Grönroos, 1984, 1988; Lehtinen & Lehtinen, 1991) and the
American schools of thought (Parasuraman et al., 1988). The work of
Parasuraman et al. (1988) has led to the identification of a service quality
measurement tool, SERVQUAL. It is one of the most widely used instruments
as it aims to help service managers diagnose and improve the quality of
services under their control. The model on which SERVQUAL is based
proposes that customers evaluate the quality of a service across five distinct
dimensions as follows:

Reliability
– ability to perform the promised service dependably and accurately;
Responsiveness
– willingness to help customers and provide prompt service;
Assurance

– knowledge and courtesy of employees and their ability to inspire trust and
confidence; Empathy

– caring, individualized attention the firm provides to its customers;

Tangibles

– appearance of physical facilities, equipment, appearance of personnel, and

communication materials.
Pizza Hut

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 with over 12,500 restaurants across 91
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.

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore.
Since then it has captured a dominant and significant share of the pizza market
and has maintained an impressive growth rate of over 40 per cent per annum.
Pizza Hut now has 95 outlets across 24 cities in India; and employed nearly
4,000 people by end of 2004. Yum! has invested about US$ 25 million in
India so far; this is over and above investments made by franchisees.

Pizza Hut is believed to have close to 50 per cent market share of the
organized pizza-retailing segment in India. According to an article in
Financial Express, the market size of the pizza segment is around US$ 87
million and currently growing at the rate of 15 per cent to 17 per cent per
annum. According to Pizza Hut sources, most of their outlets are financially
successful, encouraging further expansion. In India, the average investment
for each outlet is US$ 275,000-335,000 and is borne by the franchisee.

Following are the factors of success for Pizza-Hut over the years:

Offering value food

Employing economies of scale, Pizza Hut has made its offerings more
affordable. Its delivery offer of US$ 4.4 for four personal pan pizzas has been
very successful; helping it grows the business by 25 per cent. They have
recently introduced a range of vegetarian personal pan pizzas for US$ 1.1.
Most Pizza Hut restaurants are located in the metros and smaller metros. In
taking long strides across the country, Pizza Hut is consolidating its position
by opening more restaurants in the metros where it already has a presence as
well as opening outlets in new markets.
According to company sources, Pizza Hut is moving beyond the metros and
foraying into 12 to 13 new markets including Trichy, Nagpur, Bhubhaneswar,
Thiruvananthapuram and Pondicherry to increase penetration.

Aggressive marketing and tie-ups with local and popular brand

Pizza Hut has increased its visibility by launching a well-received TV

campaign aimed at the young crowd. It has formed partnerships with
recognized brands such as Nestle and Pepsi. It also holds regular promotional
campaigns targeted at children and uses these alliances to offer packages
during these campaigns.

Developing the local supply chain

The local supply chain for Pizza Hut was developed by Yum! and currently 95
per cent of the ingredients they use are locally produced. They now import
very few specialty items like pepperoni.

Leveraging the India advantage: 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 also serve Jain
menus. Pizza Hut has even opened two all-vegetarian restaurants in the
western state of Gujarat to cater to the Jain religious community, whose
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 localised products in other
parts of the world. However, Pizza Hut's local menu is as large as the
international one. According to Pizza Hut, the Indian food heritage is very
rich, and hence Indians like local flavours. The Tandoori range of pizzas,
which was developed locally, has a menu mix of over 20 per cent.

Indigenous materials sourcing of raw materials

Pizza Hut has reduced costs through indigenous sourcing of raw material. It
has tied up with a local company Dynamix Dairy Industries Ltd (DDIL) for
sourcing mozzarella cheese. The landed cost of imported mozzarella comes to
US$ 3.3 - 3.5 per kilogram. The domestic price, however, works out to US$
2.99 - 3.1 per kilogram. Pizza Hut is adding to the bottom line by localising
equipment as well as by paying attention to inventory replenishment, which
has been reduced from 60 to 30 days.
Dominos

Domino's vision is focused on "Exceptional people on a mission to be the best

pizza delivery company in the world! ". Domino's is committed to bringing
fun and excitement to the lives of our customers by delivering delicious pizzas
to their doorstep in 30 minutes or less, and all its strategies are aimed at
fulfilling this commitment towards its large and ever-growing customer base.

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 has very well accepted
these.

Domino's Pizza India Limited (DPIL) is the master franchisee for India,
Srilanka, Bangladesh and Nepal from Domino's Pizza International Inc., USA.
The company had been promoted by Mr. Shyam S. Bhartia and Mr. Hari
S.Bhartia of the Jubilant Organosys Group (Formally Vam Organic Group).

The Company was incorporated in March 1995. The First Domino's Pizza
store in India was opened in January 1996, at New Delhi and today after nine
years Domino's Pizza India has grown into a countrywide network of over 100
outlets in 27 cities, which includes:-

North - Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar,

Dehradun, Shimla, Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie

South - Chennai, Bangalore, Hyderabad, Coimbotore, Mangalore, Cochin,

Secundrabad, Manipal

East - Kolkatta

West - Mumbai, Pune, Ahmedabad, Goa

Domino's intends to penetrate completely within these markets by opening up

20-25 outlets per year in these cities. Domino's has a young and enthusiastic
team of over 2,100 employees. Today, Domino's has emerged as the leader in
the fast food segment with about 65% of market share of pizza delivery in
India and have outlets more than any other corporation in the business of food,
not just the pizza business. All the Company outlets are corporate outlets
invested by the company and also managed by the company.

Over a period since 1996, Domino's Pizza India 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 stores around the
country. Customers can order their pizzas by calling the single countrywide
"Hunger Helpline" - 1600-111-123 and Domino's was the first one to start this
facility for its customers.

Domino's vision is "Exceptional people on a mission, to be the best pizza

delivery company in the world!". Domino's is committed to bringing fun and
excitement to the lives of our customers by delivering delicious pizzas to their
doorstep in 30 minutes or less, and all our strategies work for fulfilling this
commitment towards our large and ever-growing customer base.

Domino's constantly strives to develop the product that suits the taste of its
customers to bring out the 'WOW' effect (i.e. the feel good factor). Domino's
believes in the strategy of "Think local and act regional" that is blended with a
playful image personified by our "Hungry Kya?" positioning. Thus, time and
again Domino's has been innovating toppings, suitable to the taste buds of the
locals and these have been very well accepted by the Indian market, are doing
extensively well in the market. We are constantly in the process of innovating
further; we introduce new topping every 3 -4 months

Domino's understands customers demand and is constantly developing local

flavors understanding the local sentiments. Also, the ingredients, sauces etc.
are made keeping in mind the taste buds of Indian consumers while retaining
the international flavor.

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-the-line activities in the area it serves.

Domino's believe in bringing fun and excitement into the lives of our clientele.
We take our delivery proposition very seriously and our entire corporate ethic
is based on it. Domino's is the recognized world leader in Pizza delivery. But
it isn't just about delivering; it's also about giving back to the community.
Domino's believes that an essential component of corporate responsibility is to
provide support to charitable organizations that benefit the communities where
its employees and customers work and live. Domino's worldwide is known for
its commitment toward social causes and believes in adding fun to the lives of
our customers and communities it serves.

In India, Domino's has been associated with the NGO's devoted to the cause of
underprivileged Children's. Domino's conducts Store Educational Tour (SET)
for the underprivileged children time-to-time. Recently this was done in the
one of the Domino's outlet in Delhi and Mumbai with the underprivileged
children from CRY (Child Relief and You) where Domino's took the pledge to
provide part-time employment to the eligible wards from CRY who are above
18 years, reiterating its commitment towards social causes. Also, fifty- percent
of that day's first 20 deliveries of the store were given to CRY toward the
cause of the underprivileged children. The children had a gala time while they
learned to make and bake pizzas at the store and finally tasted the sumptuous
offerings made by them during the Store Educational Tour.

Domino's Pizza India also boasts about its commitment to serve its customers
on time by implementing the "30 MINUTES OR FREE" service commitment,
they have been able to achieve this as a result of continuous efforts and
dedication of the entire team in improving operating efficiencies.

Domino's Pizza India has been consistently rated amongst the top 2 pizza
chains worldwide in the Domino's family by Domino's International, in terms
of quality of operations. Our pizza delivery times have also been judged as the
best delivery times in the world across all Domino's.
CHAPTER 2

COMPANY PROFLIE
History of Pizza Hut

Pizza Hut was founded on June 15, 1958, by two brothers, Dan and
Frank Carney, both Wichita State students, as a single location
in Wichita, Kansas. Six months later they opened a second outlet and
within a year they had six Pizza Hut restaurants. The brothers began
franchising in 1959. The iconic Pizza Hut building style was designed in
1963 by Chicago architect George Lindstrom  and was implemented in
1969. Pizza Hut Inc. is the largest pizza restaurant company in the
world in terms of both the number of outlets and the percentage of
market share that it holds. A subsidiary of PepsiCo, Inc., the company
oversees more than 11,000 pizza restaurants and delivery outlets in 90
countries worldwide. In October 1997, the company expected to become
a subsidiary of Tricon Global Restaurants, Inc., formed from the spin-off
of PepsiCo's restaurant holdings.

PepsiCo acquired Pizza Hut in November 1977. Twenty years later,

Pizza Hut (alongside Taco Bell and Kentucky Fried Chicken) were spun
off by PepsiCo on May 30, 1997, and all three restaurant chains became
part of a new company named Tricon Global Restaurants, Inc. The
company assumed the name of Yum! Brands on May 22, 2002.
Before closing in 2015, the oldest continuously operating Pizza Hut was
in Manhattan, Kansas, in a shopping and tavern district known
as Aggieville near Kansas State University. The first Pizza Hut
restaurant east of the Mississippi River was opened in Athens, Ohio, in
1966 by Lawrence Berberick and Gary Meyers.
The company announced a rebrand that began on November 19, 2014, in
an effort to increase sales, which had dropped in the previous two years.
The menu was expanded to introduce various items such as crust flavors
and 11 new specialty pizzas. Work uniforms for employees were also
refreshed.[14] In 2017, Pizza Hut was listed by UK-based company
Richtopia at number 24 in the list of 200 Most Influential Brands in the
World.
On June 25 and 27, 2019, it was reported that Pizza Hut was bringing
back their logo and the red roof design that was used from 1976 until
1999.
On August 7, 2019, Pizza Hut announced its intention to close about 500
of its 7,496 dine-in restaurants in the US, by the middle of 2021.
On August 18, 2020, it was announced that Pizza Hut will be closing
300 restaurants after the bankruptcy of NPC International, one of its
franchise providers. A company representative stated, "We have
continued to work with NPC and its lenders to optimize NPC's Pizza Hut
restaurant footprint and strengthen the portfolio for the future, and
today's joint agreement to close up to 300 NPC Pizza Hut restaurants is
an important step toward a healthier business
Earlier History

Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in
their hometown of Wichita, Kansas. When a friend suggested opening a
pizza parlor--then a rarity--they agreed that the idea could prove
successful, and they borrowed $600 from their mother to start a business
with partner John Bender. Renting a small building at 503 South
Bluff in downtown Wichita
 purchasing secondhand equipment to make pizzas, the Carneys and
Bender opened the first Pizza Hut restaurant; on opening night, they
gave pizza away to encourage community interest. A year later, in 1959,
Pizza Hut was incorporated in Kansas, and Dick Hassur opened the first
franchise unit in Topeka, Kansas.

In the early 1960s Pizza Hut grew on the strength of aggressive

marketing of the pizza restaurant idea. In 1962, the Carney brothers
bought out the interest held by Bender, and Robert Chisholm joined the
company as treasurer. In 1966, when the number of Pizza Hut franchisee
units had grown to 145, a home office was established to coordinate the
businesses from Wichita.

Two years later, the first Pizza Hut franchise was opened in Canada.
This was followed by the establishment of the International Pizza Hut
Franchise Holders Association (IPHFHA). It aimed at acquiring 40
percent of the company's franchise operations, or 120 stores, and adding
them to the six outlets wholly owned by Pizza Hut.

The acquisitions, however, brought turmoil to the chain. Varied

accounting systems used by the previous franchise owners had to be
merged into one operating system, a process that took eight months
to complete. In the meantime, sales flattened and profits tumbled.
President and CEO
Virag Joshi is President & Group CEO of Devyani International
Limited, an F&B major which owns and runs Pizza Hut, KFC, Vaango
and Costa Coffee chain across India, Nepal and Nigeria with presence
of 300+ outlets. Devyani International Limited is part of RJ Corp,
which has interest in Pepsi (India, Nepal, Srilanka, Mozambique and
Morocco) Beer(India, Nepal, Mauritius), Milk (Uganda) Cream bell Ice
cream.
Mr. Joshi is a passionate leader with proven credentials for building
process driven, people centric and customer focused organizations in
different continents. No wonder, Pizza Hut has been rated as Most
Trusted Brand six years in a row by Indian customers in surveys
conducted by AC Nielsen Group.

Mr. Joshi has been a key strategist in expansion of Pizza Hut, KFC and
Costa Coffee outlets from a small base of 5 restaurants in 2002 to 250
plus outlets in last eight years in three counties by leveraging human
talent and exemplary customer service. He is a coach and mentor to his
team of COOs and CEOs and believes in empowering them to achieve
breakthrough results
CONCEPT
Pizza Hut is split into several different restaurant formats: the original
family-style dine-in locations; storefront delivery and carry-out
locations; and hybrid locations that have carry-out, delivery, and dine-in
options. Some full-size Pizza Hut locations have a lunch buffet, with
"all-you-can-eat" pizza, salad, desserts, and breadsticks, and a pasta bar.
Pizza Hut has other business concepts independent of the store type.
In 1975, Pizza Hut began testing concepts with Applegate's Landing. [22]
[23]
 These restaurants had exteriors that looked like Colonial Style houses
and had eclectic interiors featuring a truck with a salad bar in the bed.
The chain offered much of the same Italian-American fare, such as pizza
and pasta dishes with some additions like hamburgers and bread
pudding. Applegate's Landing went defunct in the mid-1980s except for
one location in McPherson, Kansas that closed in fall, 1995.
An upscale concept was unveiled in 2004, called "Pizza Hut Italian
Bistro". At 50 U.S. locations, the Bistro is similar to a traditional Pizza
Hut, except that the menu features new, Italian-themed dishes such
as penne pasta, chicken pomodoro, and toasted sandwiches. Instead of
black, white, and red, Bistro locations feature a burgundy and tan
motif.]In some cases, Pizza Hut has replaced a red roof location with the
new concept. Pizza Hut Express locations are fast food restaurants; They
offer a limited menu with many products not seen at a traditional Pizza
Hut. These stores are often paired in a colocation with WingStreet in the
US and Canada, or other sibling brands such as KFC or Taco Bell and
found on college campuses, food courts, theme parks, bowling alleys,
and within stores such as Target.
Vintage locations featuring the red roof, designed by architect Richard
D. Burke, can be found in the United States and Canada; several exist in
the UK, Australia, and Mexico. In his book Orange Roofs, Golden
Arches, Phillip Langdon wrote that the Pizza Hut red roof architecture
"is something of a strange object – considered outside the realm of
significant architecture, yet swiftly reflecting shifts in popular taste and
unquestionably making an impact on daily life. These buildings rarely
show up in architectural journals, yet they have become some of the
most numerous and conspicuous in the United States today.
Curbed.com reports, "Despite Pizza Hut's decision to discontinue the
form when they made the shift toward delivery, there were still 6,304
traditional units standing as of 2004, each with the shingled roofs
and trapezoidal windows signifying equal parts suburban comfort and
strip-mall anomie." This building style was common in the late 1960s
and early 1970s. The name "red roof" is somewhat anachronistic now
since many locations have brown roofs. Dozens of these restaurants have
closed or been relocated or rebuilt.
DOMINO’S
Domino's Pizza, Inc., incorporated on July 30, 2002 is a pizza retail
chain. The Company operates pizza stores at 11,900 locations in over 80
markets. The Company operates in three business segments: domestic
stores, international franchise and supply chain. The Company’s
Domestic Stores segment consists primarily of its franchise operations,
through which the Company operates network of 4,722 franchised stores
located in the United States. The Company’s International Franchise
segment is comprised of a network of franchised stores in more than 80
international markets. The Company supply chain segment operates 16
regional dough manufacturing and food supply chain centers in the
contiguous United States. Its basic menu features pizza products in
various sizes and crust types. Its store also offers oven-baked
sandwiches, pasta, boneless chicken and wings, bread side items,
desserts and Coca-Cola soft drink products.
Domestic Stores
The Company’s Domestic Stores segment consists primarily of its franchise
operations, through which the Company operates network of 4,690
franchised stores located in the United States. The Company also operates a
network of 377 domestic Company-owned stores located in the United
States. As of December 28, 2014, the Company’s 4,690 domestic franchise
stores were owned and operated by 899 domestic franchisees. During 2014,
the domestic stores segment accounted for 29% of the Company’s
consolidated revenues.

International Franchise

The Company’s International Franchise segment is comprised of a network

of franchised stores in more than 75 international markets. At December 28,
2014, the Company had 6,562 international franchise stores. The Company
operates in India, United Kingdom, Mexico, Australia, Turkey, South
Korea, Canada, Japan, France and Netherlands. In a few select markets, the
Company franchise directly to individual store operators. As of 2014, this
segment accounted for 8% of its consolidated revenues.
On May 12, 1983, Domino's opened its first international store,
in Winnipeg, Manitoba, Canada. That same year, Domino's opened its
1000th store, its first in Vancouver, Washington. In 1985, the chain opened
their first store in the United Kingdom in Luton. Also, in 1985, Domino's
opened their first store in Tokyo, Japan. In 1993, they became the second
American franchise to open in the Dominican Republic and the first one to
open in Haiti, under the direction of entrepreneur Luis de Jesús
Rodríguez. By 1995, Domino's had expanded to 1,000 international
locations. In 1997, Domino's opened its 1,500th international location,
opening seven stores in one day across five continents. By 2014, the
company had grown to 6,000 international locations and was planning to
expand to pizza's birthplace, Italy; this was achieved on October 5, 2015,
in Milan, with their first Italian location. CEO Patrick Doyle, in May 2014,
said the company would concentrate on its delivery model there. In
February 2016, Domino's opened its 1,000th store in India. Outside the
United States, India has the largest number of Domino's outlets in the world.
In 1995, Domino's Pizza entered China through the Pizza Vest Fast Food
Group, which also owned the rights to operate Domino's Pizza in 11
Southeast Asian countries.
In 2004, after 44 years as a privately held company, Domino's began trading
common stock on the New York Stock Exchange under the ticker symbol
"DPZ". Industry trade publication Pizza Today magazine named Domino's
Pizza "Chain of the Year" in 2003, 2010, and 2011. In a simultaneous
celebration in January 2006, Domino's opened its 5,000th U.S. store
in Huntley, Illinois, and its 3,000th international store in Panama
City, Panama, making 8,000 total stores for the system. In August 2006, the
Domino's location in Tallaght, Dublin, Ireland, became the first store in
Domino's history to hit a turnover of $3 million (€2.35 million) per year.
[34]
 As of September 2006, Domino's has 8,200+ stores worldwide, which
totaled $1.4 billion in gross income.
In August 2012, Domino's Pizza changed their name to simply Domino's. At
the same time, Domino's introduced a new logo that removed the blue
rectangle and text under the domino in the logo, and changed the formerly
all-red domino to be blue on the side with two dots and red on the side with
one dot.[36][37] This was done because the company wanted to "expand" menu
choices rather than simply rely on their traditional pizza.

Supply chain
The Company supply chain segment operates 16 regional dough
manufacturing and food supply chain centers in the contiguous United
States, one thin crust manufacturing center, one vegetable processing
center and one center providing equipment and supplies to certain of its
domestic and international stores. The Company also operates seven
dough manufacturing and food supply chain centers in Canada, Alaska
and Hawaii. The Company’s supply chain segment leases a fleet of
more than 500 tractors and trailers. The Company’s centers
manufacture fresh dough and purchase, receive, store and deliver food
and other complementary items to over 99% of the United States and
Canadian franchised stores and all of the Company-owned stores. The
Company supplies nearly 5,500 stores with various food and supplies.
During 2014, supply chain segment accounted for 63% of the
Company’s consolidated revenues.

Domino’s Pizza India

Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group

Company, The Company was incorporated in 1995 and initiated
operations in 1996, The Company got listed on the Indian bourses in
February 2010, Mr., Shyam S, Bhartia, Mr., Hari S, Bhartia and Jubilant
Enpro Private Ltd, are the Promoters of the Company. The Company &
its subsidiary operates Domino's Pizza brand with the exclusive rights
for India, Nepal, Bangladesh and Sri Lanka, The Company is India's
largest and fastest growing food service company, with a network of
500+ Domino's Pizza restaurants
Restaurants (as of 31st March, 2012)The Company is the market leader
in the organized pizza market with a 54% market share (Euro monitor
Report 2010) and 70% share in the pizza home delivery segment in
India, The Company has strengthened its portfolio by entering into an
agreement with Dunkin' Donuts Franchising LLC, for developing the
Dunkin' Donuts brand and operating restaurants in India,

Over the period since 1996, Domino’s Pizza India has remained focused
on delivering great tasting Pizzas and sides, superior quality,
exceptional guest care and value for money offerings.

We have endeavored to establish a reputation for being a home delivery

specialist capable of delivering pizzas within 30 minutes or else FREE to
a community of loyal consumers from all our restaurants around the
country.

Domino’s vision is focused on “Exceptional people on a mission to be

the best pizza delivery company in the world!" We are committed to
bringing fun, happiness and convenience to lives of our consumers by
delivering delicious pizzas to their doorstep and our efforts are aimed at
fulfilling this commitment towards a large and ever-growing guest base.

Domino’s constantly strives to develop products that suit the tastes of

our consumers and hence delighting them. Domino’s believes strongly
in the strategy of ’Think global and act local’. Thus, time and again we
have 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 and affordable products to our
consumers has been an important part of our efforts. Our initiatives such
as Fun Meal and Pizza Mania have been extremely popular with
consumers looking for an affordable and value for money meal option.

Domino’s believes that when a box of pizza is opened, family and

friends come together to share the pizza. Hence, our brand positioning:
‘Yeh Hai Rishton Ka Time’. That’s why, all our efforts, whether it is a
new innovative and delicious product, offering consumers value for
money deals, great service, countrywide presence or the promise to
deliver in 30 minutes or free are all directed towards making
relationships stronger, warmer and more fun by giving consumers an
opportunity to get together, catch up, reunite and spend more time
together Consumers can order their pizzas by calling the single
Happiness Hotline number 68886888 OR order online at Pizza Online.
CEO, Domino’s Pizza India Ltd

Mr.Ajay Kaul

In a career spanning 16 years, Ajay Kaul, CEO, Domino s Pizza India

Ltd has worked in industries ranging from credit cards, airline, express
distribution and logistics, all within the umbrella of service. Kaul joined
Domino s from TNT Indonesia, where he was Country Head of TNT
Express for three years. Kaul, who has done his BTech from IIT Delhi
and MBA from XLRI Jamshedpur, began his career with American
Express travel related services. In the six years that he spent their based
in Kolkata, Chennai and Delhi, he gained a sound grounding in the
credit card sales and marketing.
CHAPTER 3

RESEARCH
METHODOLOGY
Research methodology
“Methodology” implies more than simply the methods you intend to use to
collect data. It is often necessary to include a consideration of the concepts
and theories which underlie the methods. For instance, if you intend to
highlight a specific feature of a sociological theory or test an algorithm for
some aspect of information retrieval, or test the validity of a particular system,
you have to show that you understand the underlying concepts of the
methodology.

Researchers organize their research by formulating and defining a research

problem. This helps them focus the research process so that they can draw
conclusions reflecting the real world in the best possible way.
Steps in conducting research
Research is often conducted using the hourglass model structure of
research.

The hourglass model starts with a broad spectrum for research, focusing
in on the required information through the method of the project (like
the neck of the hourglass), then expands the research in the form of
discussion and results. The major steps in conducting research are:

➢ Identification of research problem

➢ Literature review

➢ Specifying the purpose of research

➢ Determine specific research questions or hypotheses

➢ Data collection

➢ Analyzing and interpreting the data

➢ Reporting and evaluating research

Objective of research
 The purpose of research is to discover answers to questions through
application of scientific procedures. The main of research is to find
out the truth which is hidden and which has not been discovered as
yet.
 To gain familiarly with a phenomenon or to achieve new insight into it,
 To portray accurately the characteristics of a particular individual
situation or a group.
 To determine the frequency with which something occurs or wit it is
associated with something else.
 To test hypothesis of a causal relationship between variables.

Type of research
The research is of following types:

o Quantitative Research
o Applied Research
o Longitudinal Research
o Qualitative Research
o Descriptive Research
o Comparative Research
o Explorative Research
o Action Research
Comparative research
Comparative research, simply put, is the act of comparing two or more
things with a view to discovering something about one or all of the
things being compared. This technique often utilizes multiple disciplines
in one study. When it comes to method, the majority agreement is that
there is no methodology peculiar to comparative research. The
multidisciplinary approach is good for the flexibility it offers, yet
comparative programs do have a case to answer against the call that their
research lacks a "seamless whole."

There are certainly methods that are far more common than others in
comparative studies, however. Quantitative analysis is much more
frequently pursued than qualitative, and this is seen by the majority of
comparative studies which use quantitative data. The general method of
comparing things is the same for comparative research as it is in our
everyday practice of comparison. Like cases are treated alike, and
different cases are treated differently; the extent of difference determines
how differently cases are to be treated. If one is able to sufficiently
distinguish two carry the research conclusions will not be very helpful
that there is no methodology peculiar to comparative research.
multidisciplinary approach is good for the flexibility it offers, yet
comparative programs do have a case to answer against the call that their
research lacks a "seamless whole."

There are certainly methods that are far more common than others in
comparative studies, however. Quantitative analysis is much more
frequently pursued than qualitative, and this is seen by the majority of
comparative studies which use quantitative data. The general method of
comparing things is the same for comparative research as it is in our
everyday practice of comparison. Like cases are treated alike, and
different cases are treated differently; the extent of difference determines
how differently cases are to be treated. If one is able to sufficiently
distinguish two carry the research conclusions will not be very helpful.

Research design

A research design is the "blue print" of the study. The design of a study
defines the study type (descriptive, correlation, semi-experimental,
experimental, review, meta-analytic) and sub-type (e.g., descriptive-
longitudinal case study), research question, hypotheses, independent
and dependent variables, experimental design, and, if applicable, data
collection methods and a statistical analysis plan. Research design is the
framework that has been created to seek answers to research questions.
sampling method
The sampling method in this research is random sampling.
sample design
A sample design is a definite plan for obtaining a sample from the sampling
frame. It refers to the technique or the procedure that is adopted in selecting
the sampling units from which inferences about the population is drawn.
Sample design is determined before the collection of the data.

Sampling Unit: Pitampura, Delhi.

Sampling Method Selected: Probability Sampling.

Sample Size: 100 Respondents.

Instrument: Questionnaire.

Questionnaire.

Consists of no.of questions printed or typed in definite order on a form

or a set of forms. Respondents have to answer the question on their own.

It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret.

Close Ended: - Pre-specify all the possible answers & are easy to
Interpret.

Scope for the Study

For the purpose of the study descriptive research is used, where the data
is collected by using both primary and secondary sources. The sample
size of consists of 100 respondents and the sampling method is
probability sampling. The primary information is collected with the help
of questionnaire in order to make appropriate analysis.

Data

Data is a set of values of qualitative or quantitative variables, restated,

pieces of data are individual pieces of information. Data is measured,
collected and reported, and analyzed, whereupon it can be visualized
using graphs or images. Data as a general concept refers to the fact that
some existing information or knowledge is represented or coded in some
form suitable for better usage or processing.

Raw data, i.e. unprocessed data, is a collection of numbers, characters;

data processing commonly occurs by stages, and the "processed data"
from one stage may be considered the "raw data" of the next. Field
data is raw data that is collected in an uncontrolled in situ
environment. Experimental data is data that is generated within the
context of a scientific investigation by observation and recording.
 The data is of following 2 types:

1.Primary data:-
Primary research consists of a collection of original primary data. It is often
undertaken after the researcher has gained some insight into the issue by
reviewing secondary research or by analyzing previously collected primary
data. It can be accomplished through various methods, including
questionnaires and telephone interviews in market research, or experiments
and direct observations in the physical sciences, amongst others.

Method of colleting data

Primary data are always collected from the source. It is collected either by
the investigator himself or through his agents. There are different methods
of collecting primary data. Each method has its relative merits and demerits.
The investigator has to choose a particular method to collect the
information. The choice to a large extent depends on the preliminaries to
data collection some of the commonly used methods are discussed below:
 Direct Personal observation
 Indirect Oral Interviews
 Mailed Questionnaire method
 Schedule Method
 From Local Agents

Secondary Data
Secondary data is data collected by someone other than the user. Common
sources of secondary data for Social science include censuses
organizational records and data collected through qualitative
methodologies or qualitative research. Primary data, by contrast, are
collected by the investigator conducting the research. Secondary data
analysis saves time that would otherwise be spent collecting data and,
particularly in the case of qualitative research, provides larger and higher-
quality databases that would be unfeasible for any individual researcher to
collect on their own. In addition, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new
survey that can adequately capture past change and/or developments .

Sources of collection of the data

Secondary data are second hand information. They are not collected from
the source as the primary data. In other words, those which have already
been collected. Secondary data are generally used when the time of enquiry
is short and the accuracy of the enquiry can be compromised to some extent.
Secondary data can be collected from a number of sources which can
broadly be classified into two categories:
 Published Sources

 Unpublished Sources

CHAPTER 4
MARKET SHARE AND
MAJOR PLAYERS
Market shares and major players
Indian taste buds are demanding more and pizza industry – one of the most
intensive industry is all gearing on. People across the country are consuming
over three million pizzas a month currently, and the monthly sales figures are
projected to double in the next four years. According to industry data, of the
total branded quick service restaurant market make a sale of over Rs 1,200
Crore, the pizza chains contribute around 50 per cent of the sales i.e. worth Rs.
600 Crore.
The major players of the Pizza industry are:-
• Pizza Hut
• Domino’s
• Garcia’s
• Papa john’s
• Us pizza

Market share as on 1999

PIZZA  MARKET SHARE
CHAIN (%)
Pizza Hut  46.42
Domino's  21.67
Others  31.91
Source: Financial Express
Market share as on 2000
Pizza
 2000 Market Share (%)
Chain
Pizza Hut  18
Domino's  70*
Others  12
Source: Business Standard, As claimed by the company

Current Market Shares

 Branded Pizza Market Share

Pizza Hut
Domino's
Others

The major market players are Pizza Hut and Domino’s with market share of
45% and 35% respectively and other shares 20% of the market.

Major forces affecting the Industry

In major cities of India like Delhi, Mumbai, Bangalore Pizza Hut and
Domino’s have a competition with Pizza corner, Smokin joe’s, Us pizza,
Garcia’s but in small cities Pizza Hut and Domino’s are the major players.

Threat of new entrants

With the economic reforms and liberalization, many new entrants also want
the revenue of the 200 billion Indian fast food industries.
There are many new entrants in the branded pizza industry some of them
are
• Papa john’s pizza
• Us pizza
Some Indian brands are:-
• Pizza Express
• Pizza Corner
• Slice of Italy
They have captured a lot of customers with their new style and discount
offers. Much young crowd flock their restaurants and their taste buds are
getting modified. Now the new entrants are also likely to enter the small cities
and make their presence. Thus pizza hut and dominos have to rethink their
strategies so as to retain their customers. They have to constantly differentiate
their services from the newer entrants
Substitutes
There are lots of substitutes which are available to choose with respect to the
fast food industry some of them are
• McDonald’s
• Barista
• Cafe coffee day
• Chinese restaurants (mainland china)
• Other restaurants
Largely it depends upon the customers 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 of a particular company is good, more
people will tend to go there. Higher the quality of food, service, higher will be
product recall and sales
Buyer’s bargaining power
Pizza hut and dominos have higher market reach and greater visibility in the
market with respect to the pizza industry and hence they command supplies at
lower rate. However their counterparts, competitors cannot command such
lower prices. Thus the muscle power of pizza hut and dominos is way beyond
the others.
Supplier’s growing bargaining power
Supplies till now were not a problem but with the advent of the rising food
costs (raw material inflation). Suppliers are not ready to supply items at the
normal rate. Thus supplier’s muscle power grew only doe to inflation. Thus
the company either has to increase the menu costs or reduce the operational
costs to recover. Failing to do this will make the company into losses or to
lose out in the industry.
Trends in the Indian market
Marketing to children
Fast food outlets in India target children’s as their major customers. They
introduce varieties of things that will attract the children’s attention and by
targeting children’s they automatically target their parents because children’s
are always accompanied by their parents.
Low level customer commitment
Because of the large number of food retail outlets and also because of the
tendency of customer to switch from one product to other, this industry faces
low level customer commitment.
Attracting different segments of the market
Fast food outlets are introducing varieties of products in order to cater the
demands of each and every segment of the market. They are introducing all
categories of product so that people of all age, sex, class, income group etc
can come and become a customer of their food line.

Core Competencies
Domino’s
  “30 MINUTES OR FREE” service commitment

 Responsibility towards society

 Association with NGO’s.
 Store Educational Trust (SET)
 CRY (Child Relief and You)
Pizza Hut
 Offering value food

 Wide variety of food (International and National)

Competitors of the Pizza Hut and Dominos

• Pizza corner
• McDonald’s
• Barista
• Cafe coffee Day
• Subway
• Papa john’s
• KFC
 Pizza Hut and Domino’s competitor analysis

STP Analysis
Segmentation
Pizza hut
Geographic
Region – pizza hut outlets in different countries is a way of segmenting
their market according to region and finding out potential markets.
City – they also segment the cities as class i, class ii, metros, small
towns.
Demographic
Age – below 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years, 40+
years.
Family income – middle class, upper middle class, high class
Dual income earners – yes/no
Psychographic
 Socio-economic class – urban (a1, a2, b1, b2, c, d)
Behavioural
Occasions – birthdays, corporate lunches, marriages, parties, receptions
Loyalty status – low, medium, high
User status – first time, regular, non-user

Dominos
Geographic
Region – dominos 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 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50+
years.
family income – lower middle class, middle class, upper middle class,
high class
Psychographic
socio-economic class – urban (a1, a2, b1, b2, c, d)
Behavioral
loyalty status – low, medium, high
user status – first time, regular, non-user

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 class and the high class income families.
 In psychographic segmentation they targeted a1, a2, b1 socio-economic
classes.
 In behavioural segmentation they targeted for occasions such as birthday
bashes, 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 middle class, upper middle class income
families.
 In psychographic segmentation they targeted a2, b1, b2 socio-economic
classes.
 In behavioural segmentation it was found that they were targeting the
first time users and also their regular 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 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 main course food items served in other
restaurants.

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.

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 pizzas under one
roof’. They have positioned themselves for their unique dining experience.

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

Strategic Formulation

Overall Cost Leadership, Differentiation and Focus

This is achieved very effectively by Dominos as they do not intend to lose
their focus from delivering pizzas at home
 Dominos Brand thus relates mainly to service & delivery neither they
promote their in dining experience nor they spend revenue for it.
 Domino's vision is focused on “Exceptional people on a mission to be
the best pizza delivery company in the world!”
Thus Dominos are able to provide good pizzas at relatively lower rate as they
don’t spend much for the restaurant

Pizza Hut’s Premium price

Pizza Hut is committed for providing uncompromising 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 costs a premium hence their customers also
changes to high income groups.

Creation, Communication and Capturing Value

Domino’s
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
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 delivering 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 Hut’s success has been a menu that has constantly
evolved and expanded to cater to the changing needs and specific preferences
of customers in different parts of the world. In having understood the pulse of
the customers in India, Pizza Hut has clearly established itself as a brand 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 offers a Jain menu sans 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 a variety of combinations of menu items which a customer can
choose so that 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 pizzas slices of different varieties and they are clubbed together to
form a single pizza.

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

SWOT Analysis of Dominos

4P’s of Pizza Hut and Domino’s

PRODUCT
Pizza hut

The customer value hierarchy

From the above diagram we can see that pizza hut has enjoyment as a basic
product but it provides food for it. Thus a person having a basic need of
enjoyment can go to pizza hut and have pizza which is the company’s core
product. Hot pizza and good taste are his expectation. Thus the company
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 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
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. There are quite a lot number of menu items
to choose
Some of the items are
 Pizzas ( four different types)
 American Pan Pizza
 Stuffed crust Pizza
 Cheesy bites
 Masala cheesy bites
 Pastas and salads
 Spicy Tomatoes
 Arrabbiata
 Creamy mushroom
 Spicy tomatoes with smoked chiken
 Arrabbiata with smoked chicken
 Appetizers
 Garlic bread
 Cheese garlic bread
 Garlic bread exotica
 Garlic bread spicy supreme
 Desserts
 Chocolate truffle cake
 Beverages
 Pepsi, Diet Pepsi, 7up, Mirinda

Conformance quality:
Pizza hut’s products have 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 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
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

Domino’s
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 persxon having a basic
need of food can go to dominos and have pizza which is the company’s core
product. Hot pizza and good taste are his expectation. Thus the company
should ensure this by providing good pizza. The value adds services refer to
the overall dining experience, the service quality, ambience etc.

Product differentiation
Domino's pizza India has maintained its position in the market with 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. As the
name suggests ‘the pizza delivery experts’ customers can order their pizzas
by calling their hotline. Domino's believes strongly in the strategy of 'think
local and act regional'. Thus, time and again domino's has been innovating
toppings suitable to the taste buds of the local populace and these have 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 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 pastas
appetizers, cakes, and desserts etc. There are quite a lot number of menu items
to choose. The ‘chicken wings’ item has 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 are a side dish.
Some of the menu items are
 Pizzas
 Deep Dish
 Classic hand tossed Pizza
 Pastas and salads
 Appetizers
 Desserts
 Choco lava cake
 Beverages
 Coke

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 (product) to the customer. This is done through
marketing channels that make the product available for consumption to the
customer.

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
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 inducing the intermediaries to
order it.
Domino’s: pursuing a push strategy

Domino’s pursues a medium push strategy in its channel marketing. The

advertising layout for Domino’s is minimal in India. Domino’s concentrates
on incentivizing customers instead off advertising and promotion. As a result,
domino’s regularly introduces sell-in schemes (promotional schemes 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. It 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.

PRICE

Tricon International said, “Indians are value-sensitive, not price-sensitive. We

need to offer comeback value to our customer.” The high 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.

Company Price Range (Rs)

Domino's  39-265
Pizza Hut  75-350
Pizza Price Comparison

Domino's was spending 50% of its total marketing budget on special offers
and discounts along with delivered direct mailers and pizza training classes.
Domino's also had a tie-up with Discovery Channel under which the channel
advertised its pizzas while Domino's put the channel's name on its mailers.
Domino's conducted Pizza making classes for school students. In 1998, it
offered a clock to all its customers who had bought Rs.15,000 worth of pizzas
throughout the year. Said a company official, “Database marketing is an
important part of our strategy. We have a special cell analyzing our database
to look for repeat and loyal customers.”

Brand building through advertising

Domino's and Pizza Hut initially restricted their ad strategy to banners,
hoardings and specific promotions. In August 2000, Domino's launched the
“Hungry Kya?” (Are You Hungry) sequence of advertisements on television.
A company official said, “We realized that a Pizza couldn't be slotted – it
could be a snack; then again, it could also be a complete meal” The only
definitive common link between Domino's Pizzas and eating was the hunger
platform.
The launch of ‘“Hungry Kya?” campaign coincided with “Hunger
Helpline”. The helpline enabled the customers to dial a toll-free number
(1800-111-123) from any place in India. The number automatically hunted out
the nearest Domino's outlet from the place where the call was made and
connected the customer for placing the order. The number also helped
Domino's to add the customer's name, address and phone number to its
database.
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.

Promotional and advertisement campaigns

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

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.
Creative strategy
Latest in domino’s
 Kwality wall’s ice-creams in dominos- For the first time dominos
started offering ice creams .Selling ice cream in Domino’s is also a
new sales promotion strategy to attract more customer in a new
perceptive /innovative way.
 Domino’s has also come up with pasta mania.

This was followed by Pizza Hut's first campaign on television in July 2001,
which said, “Good times start with great pizzas”. The ad was aired during
all the important programs on Star Plus, Sony, Sony Max, Star Movies, HBO,
AXN, and MTV. Pizza Hut planned to spend between Rs.70-75 million on the
ad campaign in 2001, said Pankaj Batra, The first ad campaign on TV defines
Pizza Hut as a brand, and what it offers to its existing and potential customers.
Brand awareness
 Pizza Hut was among the first multinational brands to enter the food
retail sector in India. When the first Pizza Hut restaurant opened in
Bangalore the quick service industry was at a nascent stage and the pizza
category was dominated by a sole regional player who had a marginal
presence.
 The strength of Pizza Hut’s success globally lies in a marketing strategy
that builds connections with customer’s everyday in different parts of the
world. Many customer service initiatives have been uniquely developed
for India and have 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 servers for yet another
memorable visit.
 Pizza hut organized the Jig n 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 also serve Jain
menus. Pizza Hut has even opened two all-vegetarian restaurants in the
western state of Gujarat to cater to the Jain religious community, whose
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 localised products in other
parts of the world. However, Pizza Hut’s local menu is as large as the
international one. According to Pizza Hut, the Indian food heritage is very
rich, and hence Indians like local flavours. The Tandoori range of pizzas,
which was developed locally, has a menu mix of over 20 per cent.

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 and also concentrated on wooing
kids.

Word of mouth
It is one of the traditional promotions for any industry. Pizza hut and
Domino’s both get benefit from it.

Success Factors

Pizza Hut

 Offering value food

 Aggressive marketing and tie-ups with local and popular brands
 Moving beyond metros
 Developing the local supply chain
 International brand with an Indian heart
 Offering more than the international menu
 Good ambiance

Domino’s

 Door step services

 Low pricing

CHAPTER 5

MARKETING
MARKETING
Marketing is the science of meeting the needs of a customer by
providing valuable products to customers by utilizing the expertise of
the organization, at same time, to achieve organizational goals.
According to the American Marketing Association:

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.

With this definition, it is important to realize that the customer can be an

individual user, a company, or several people who contribute to the
purchasing decision. The product can be a hard good, a service, or even
an idea – anything that would provide some value to the person who
provides an exchange. An exchange is most often thought of as money,
but could also be a donation of time or effort, or even a specific action.
A producer is often a company, but could be an individual or non-profit
organization.

Classical marketing is often described in terms of the four “P’s, which are:

 Product – what goods or services are offered to customers

 Promotion – how the producer communicates the value of its

products

 Price – the value of the exchange between the customer and producer

 Placement – how the product is delivered to the customer.

Customer satisfaction
Customer satisfaction is a marketing term that measures how products or
services supplied by a company meet or surpass a customer's
expectation. Customer satisfaction is important because it provides
marketers and business owners with a metric that they can use to
manage and improve their businesses.

It is seen as a key performance indicator within business and is often

part of a Balanced Scorecard. In a competitive marketplace where
businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business
strategy.
"Within organizations, customer satisfaction ratings can have powerful
effects. They focus employees on the importance of fulfilling customers'
expectations. Furthermore, when these ratings dip, they warn of
problems that can affect sales and profitability These metrics quantify
an important dynamic. When a brand has loyal customers, it gains
positive word-of-mouth marketing, which is both free and highly
effective."
Therefore, it is essential for businesses to effectively manage customer
satisfaction. To be able do this, firms need reliable and representative
measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their

product or service has met or exceeded expectations. Thus, expectations
are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and
will likely rate their experience as less than satisfying. For this reason, a
luxury resort, for example, might receive a lower satisfaction rating than
a budget motel—even though its facilities and service would be deemed
superior in 'absolute' terms."

Consumer behavior
Consumer behavior is the study of how individual customers, groups or
organizations select, buy, use, and dispose ideas, goods, and services to
satisfy their needs and wants. It refers to the actions of the consumers in
 the marketplace and the underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to

buy particular goods and services, they will be able to determine—which
products are needed in the marketplace, which are obsolete, and how
best to present the goods to the consumers.

The study of consumer behavior assumes that the consumers are actors
in the marketplace. The perspective of role theory assumes that
consumers play various roles in the marketplace. Starting from the
information provider, from the user to the payer and to the disposer,
consumers play these roles in the decision process.

The roles also vary in different consumption situations; for example, a

mother plays the role of an influence in a child’s purchase process,
whereas she plays the role of a disposer for the products consumed by
the family.

Consumerism
In the domain of economics, "consumerism" refers to economic policies
placing emphasis on consumption. In an abstract sense, it is the
consideration that the free choice of consumers should strongly orient
the choice by manufacturers of what is produced and how, and therefore
orient the economic organization of a society (compare producerism,
especially in the British sense of the term). In this sense, consumerism
expresses the idea not of "one man, one voice", but of "one dollar, one
voice", which may or may not reflect the contribution of people to
society.

In economics, consumerism may refer to economic policies that

emphasise  Consumption. In an abstract sense, it is the consideration that
the free choice of  consumers should strongly orient the choice by
manufacturers of what is produced and how, and therefore orient the
economic organization of a society (compare  producerism, especially in
the British sense of the term).
Consumerism has been widely criticized by both individuals who choose
other ways of participating in the economy (i.e. choosing simple
living or slow living) but also by experts evaluating the effects of
modern capitalism on the world. Experts often highlight the connection
of consumerism with issues like the growth
imperative and overconsumption which have larger impacts on the
environment, including direct effects like overexploitation of natural
resources or large amounts of waste from disposable goods, and larger
effects like climate change. Similarly, some research and criticism
focuses on the sociological effects of consumerism, such as
reinforcement of class barriers and creation of inequalities.

STRATEGY TO ATTRACT CUSTOMER

In order to attract customers more effectively here are six strategies to

help you attract customers and keep them coming back.
1. Host an open house and make yourself accessible. In doing so, you
have an opportunity to not only bring in new customers, but also to
connect with your community. Consider inviting local business
owners and residents to your open house, where they can become
acquainted with what you have to offer. Provide merchandise samples,
product or service demonstrations, giveaways, and brochures. Supply
refreshments for your guests and use the time to introduce yourself to
them so they can put a face to your business name. You can begin
building professional relationships by immersing yourself in the
community.
2. Cross-promote your business. Another benefit of being active in your
community is the ability to join forces with other businesses in order to
reach a wider customer base. There are many ways to use cross-
promotion such as: offering incentives to customers who use both your
services, providing each other’s fliers to your customers, and sharing ad
space in newspapers that you could not afford by yourself. Cross-
promotion, when used effectively, can become an inexpensive way to
expand your clientele.

3. Generate conversation and maintain an online presence. Let’s face

it: ever since the word “Google” became a regularly used verb, most
people have begun to research nearly everything online before making
an actual purchase. Your website should not only be informational,
but useful as well. If possible, provide specific product information
 and the ability to purchase online. Furthermore, many business owners
are adding blogs to their sites where they can answer questions and
provide tips that their customers would find useful. Beyond your
business’s website, use social media to promote your business and
generate conversation with your target market. Facebook and Twitter
are obvious choices, but also consider Foursquare and Pinterest.

4. Explore and tap into unique communities. Explore your interests.

Look for hobbyists, clubs/organizations, and causes that you can get
involve with. This is a natural and low stress way to network. The
more interest you explore the more people you network with and the
more exposure for your business.

5. Provide a little something special. Many consumers perceive

indifference from the businesses they frequent, which is why it’s
extremely important that you provide the special extras. Here are some
examples, when customers make a purchase, provide an inexpensive
sample product and ask for their input about it. Remember to send
them a birthday card, sponsor free kid workshops to give your
customers who are parents a break, offer free gift wrapping, and local
delivery service. This will help retain your customers, but also
remember that word of mouth is very effective. By making a
memorable and positive impression, your customers will want to share
their experiences with their families and friends.
6. Make customer service the focus of your business. Create a system
that rewards customers for their patronage and loyalty. Develop a
clear, simple process on how to engage prospects, first time customers,
repeat customers, loyal customers and doing follow ups. Your goal is
to make prospects and customers feel that they are special and
 highly valued with their first experience with
you.

What is Consumer Market?

Each time you buy a product or service, you are participating in

the consumer market. Whether you're picking up groceries for
the week or paying to get your car washed, you're a part of this
larger system.
A consumer market is the very system that allows us to
purchase products, goods and services. These items can be used
for personal use or shared with others. In a consumer market,
you make your own decisions about how you will spend money
and use the products you purchase. The more people who go out
and actively purchase products, the more active is the consumer
market.

THE LARGEST MARKET

The consumer market in the United States is made up of

approximately 300 million consumers. The United States has
the largest consumer market in the world. Consumers spend
more money in the U.S. than in any other country.

Because this market is so large, it is helpful to break it down

into more manageable segments. Within the consumer market,
there are subsets that can be identified based on demographics
and other groupings. Some of these subsets include age, gender,
interests, income level, and geographic location. The consumer
market is the umbrella that covers all of the segments that can
be created within that huge market.

In a consumer market, marketing provides a critical role in

educating people on what buying options are available. Because
consumers are empowered and can make their own purchasing
decisions, they also have more choices to make. As a result, it
becomes more vital that companies educate potential customers
about their products and encourage them to buy their products.
This encourages a more diverse and vibrant free market system
that provides the opportunity for more variety and options.

Factors affecting consumer behavior:

4 Major Factors are:-

1.Cultural Factors

Consumer behavior is deeply influenced by cultural factors such

as: buyer culture, subculture, and social class.

CULTURE

Basically, culture is the part of every society and is the

important cause of person wants and behavior. The influence of
culture on buying behavior varies from country to country
therefore marketers have to be very careful in analyzing the
culture of different groups, regions or even countries.

SUBCULTURE

Each culture contains different subcultures such as religions,

nationalities, geographic regions, racial groups etc. Marketers
can use these groups by segmenting the market into various
small portions. For example marketers can design products
according to the needs of a particular geographic group.

SOCIAL CLASS

Every society possesses some form of social class which is

important to the marketers because the buying behavior of
people in a given social class is similar. In this way marketing
activities could be tailored according to different social classes.
Here we should note that social class is not only determined by
income but there are various other factors as well such as:
wealth, education, occupation etc.

2.SOCIAL FACTORS
Social factors also impact the buying behavior of consumers.
The important social factors are: reference groups, family, role
and status.

FAMILY

Buyer behavior is strongly influenced by the member of a

family. Therefore marketers are trying to find the roles and
influence of the husband, wife and children. If the buying
decision of a particular product is influenced by wife then the
marketers will try to target the women in their advertisement.
Here we should note that buying roles change with change in
consumer lifestyles.

ROLES AND STATUS

Each person possesses different roles and status in the society depending upon the
groups, clubs, family, organization etc. to which he belongs. For example a woman is
working in an organization as finance manager. Now she is playing two roles, one of
finance manager and other of mother. Therefore her buying decisions will be
influenced by her role and status .

PERSONAL REFERENCE GROUP

Reference groups have potential in forming a person attitude or behavior. The impact
of reference groups varies across products and brands. For example if the product is
visible such as dress, shoes, car etc then the influence of reference groups will be
high. Reference groups also include opinion leader (a person who influences other
because of his special skill, knowledge or other characteristics).

3. FACTORS
Personal factors can also affect the consumer behavior. Some of
the important personal factors that influence the buying
behavior are: lifestyle, economic situation, occupation, age,
personality and self-concept.

AGE

Age and life-cycle have potential impact on the consumer

buying behavior. It is obvious that the consumers change the
purchase of goods and services with the passage of time. Family
life-cycle consists of different stages such young singles,
married couples, unmarried couples etc which help marketers to
develop appropriate products for each stage.
OCCUPATION

The occupation of a person has significant impact on his buying

behavior. For example a marketing manager of an organization
will try to purchase business suits, whereas a low level worker
in the same organization will purchase rugged work clothes.

ECONOMICAL SITUATION

Consumer economic situation has great influence on his buying

behavior. If the income and savings of a customer is high then
he will purchase more expensive products. On the other hand, a
person with low income and savings will purchase inexpensive
products.

LIFESTYLE

Lifestyle of customers is another import factor affecting the

consumer buying behavior. Lifestyle refers to the way a person
lives in a society and is expressed by the things in his/her
surroundings. It is determined by customer interests, opinions,
activities etc and shapes his whole pattern of acting and
interacting in the world.

PERSONALITY

Personality changes from person to person, time to time and

place to place. Therefore it can greatly influence the buying
behavior of customers. Actually, Personality is not what one
wears; rather it is the totality of behavior of a man in different
circumstances. It has different characteristics such as:
dominance, aggressiveness, self-confidence etc which can be
useful to determine the consumer behavior for particular product
or service.

4.PSYCHOLOGICAL FACTORS

There are four important psychological factors affecting the

consumer buying behavior. These are: perception, motivation,
learning, beliefs and attitudes.

MOTIVATION

The level of motivation also affects the buying behavior of

customers. Every person has different needs such as
physiological needs, biological needs, social needs etc. The
nature of the needs is that, some of them are most pressing
while others are least pressing. Therefore a need becomes a
motive when it is more pressing to direct the person to seek
satisfaction

PERCEPTION

Selecting, organizing and interpreting information in a way to

produce a meaningful experience of the world is called
perception. There are three different perceptual processes which
are selective attention, selective distortion and selective
retention. In case of selective attention, marketers try to attract
the customer attention. Whereas, in case of selective distortion,
customers try to interpret the information in a way that will
support what the customers already believe. Similarly, in case of
selective retention, marketers try to retain information that
supports their beliefs.

BELIEFS AND ATTITUDES

Customer possesses specific belief and attitude towards various

products. Since such beliefs and attitudes make up brand image
and affect consumer buying behavior therefore marketers are
interested in them. Marketers can change the beliefs and
attitudes of customers by launching special campaigns in this
regard.

OBJECTIVES
1. To know the customer satisfaction towards Pizza Hut and
Dominos.
2. To understand which brand among the two is preferred by
customers.