You are on page 1of 47

A DISSERTATION REPORT ON

MARKETING STRATEGIES OF DOMINOS & PIZZA HUT

A Project report submitted in partial fulfilment of the requirements of

Bachelor of Business Administration

SUBMITTED BY: -

Abhipsa Sahoo
Roll No:-19DBA123

BBA (2019-2022)

Department of Business administration

Ravenshaw University

UNDER THE GUIDANCE OF: -

Dr.Biswaranjan Mishra

Department of Business Administration

Ravenshaw University

1
DECLARATION

I here by declare this project that this project titled “MARKETING STRATEGIES OF DOMINOS &
PIZZA HUT” has been prepared under the guidance and supervision of Dr.Biswaranjan
Mishra,RavenshawUniversity,Cuttack in partial fulfilment of the requirements fo r the award of
the UnderGraduate Degree in
“BACHELOR OF BUSINESS ADMINISTRATION”

I also declare that this project is the result of my own effort and that it has not been submitted
to any other university for the award of any other UnderGraduate Degree.

Date:-16/05/2022

Name:- Abhipsa Sahoo


Place:- Cuttack

RU REG NO:- 19DBA123

2
CERTIFICATE FROM THE GUIDE

This is certify that the dissertation entitled “MARKETING STRATEGIES OF DOMINOS & PIZZA
HUT” is a record of independent research work done under my guidance by Abhipsa
Sahoo,Ravenshaw University Register Number 19DBA123 the student of VI semester
BBA,Department of Business Administration.

The dissertation has not been submitted for the award of any UnderGraduate Degree,
associateship or other simple title.

Date:-16/05/2022 Name:- Abhipsa Sahoo

Place:-Cuttack RU REG NO:- 19DBA123

3
ACKNOWLEDGEMENT
It is my immense pleasure to acknowledge and thank every individual,who directly or indirectly
contributed to this project titled “MARKETING STRATEGIES OF DOMINO’S & PIZZA HUT” which
was done during the final year of BBA Degree course.

I am highly indebted to our faculty Dr.Biswaranjan Mishra,of our University for providing an
oppurtunity to complete this project.

I express my deep sense of gratitude and thank my guide Dr.Biswaranjan Mishra for her
timely help andencouragement given to me.

Date:-16/05/2022 Name: Abhipsa Sahoo

Place:-Cuttack RU REG NO:- 19DBA123

4
CONTENT

Chapter No PARTICULARS Page No

1. INTRODUCTION 06

2. LITERATURE REVIEW 10

3. RESEARCH METHODOLOGY 17

4. DATA ANALYSIS 25

5. FINDINGS & CONCLUSIONS 36

6. ANNEXURE 45

7. BIBLIOGRAPHY 46

5
CHAPTER-1

INTRODUCTION

6
INTRODUCTION:
India is a country of diversity. Here food is not just considered as a form of
nutrition but is also collaborated with customs and traditions. In India the taste
and flavors of food preparation keep changing from one state to another. In the
early age, people would mostly prefer home cooked food in India. But as
urbanization is taking place this scenario seems to be changing completely.

The concept of fast-food is prevailing since quite a few years now. In this fast
moving world where the expenses are day by day inclining, it is a must for all the
members of the family to work for living. Also many times lot of people shift to
other region away from the family in order to earn a living. This kind of a rush
lifestyle gives a scope for consumption of quick meals which are easily prepared
and quickly served which we term as fast-food. This fast-food at the time of being
prepared in no time it is also a pleasure to the tongue.

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 trend.

Major players in fast food are:

• McDonalds’

• KFC

• Pizza hut

• Domino’s pizza

• Café coffee day

• Barista

• Subway

The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world.

7
Market Share And Major Players

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

Branded Pizza Market Share:

 Pizza Hut

 Dominos

 Other

Other players mainly are

• Smokin Joe's

• Garcia’s

• Papa john’s

• 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.

8
Objective of the Study:-
 To know the satisfaction level of customer on pizza of pizza hut.

 To know the satisfaction level of consumer of pizza in dominos.

 To know about the strategies adopted by both the companies.

 To know which type of taste customer likes in pizza.

 To know whose pizza is like most by the costume.

 To know the visit of customer in a week of pizza hut

Scope of the Study:-


 The Study Is Helpful To Company For Knowing That How Many Persons Are Satisfied With Pizza Of
Pizza Hut.

 Company Can Make The Product Better As Per Customer Suggestion.

 During Study Researcher Get Large Experience And Introduced Himself In Front Of New People.

 The study is also helpful in finding out the respondent’s opinion towards certain attributes.

 This study can be helpful to the company for conducting any further research.

9
CHAPTER-2

LITERATURE REVIEW

10
LITERATURE REVIEW
DOMINO’S:-

Domino’s Pizza Since 1960 when Domino’s was associated with only one store, the company
has grown to provide a variety of quickly-delivered hot food items to customers on every
continent . The company prides itself for its innovation of items in pizza and speediness of
delivery . The company now uses franchise in all over the world.

II. Customer Needs


The most basic element of Domino’s marketing mix relies on the understanding of the needs
and wants of the customer. They recognize that the customer wants the right pizza delivered to
their door within a short period of time and while still hot. Families are now defined by much
more than a father, mother, and two children; more members of the family work full-time. For
these reasons and other cultural shifts, there has been a move toward consumer demand for
fast, easy, and prepared foods. The core benefit sought from this combination of pizza product
and delivery service is convenience, which Domino’s has recognized and strives to provide for
customers. In another journal done by Jagwinder singh ,B.B Goyal (2008 ,by journalof strategic
marketing ) (cited on 20-march-2010 ) Tittle : comparative analysis of rural & urban Indian
consumer’s attitude towards foreign products , he founded out that rural consumers were
found more impressed by the foreign products as compare to the urban peoples because rural
people thinks that foreign products are of good quality ,sign of prestige and a wide choice of
models they found and a wide choice of models they found there and urban people are very
price conscious and always take decision after analyzing the product.
So, according to the article ; Indian producers in the coming times are going to face a very
strong threat from foreign brands ,particularly in consumer durable category because india is
one of the most promising & fastest growing economy of the world and in india there is a huge
potential of rural peoples.

III. Services : Domino’s and other fast-food providers are increasingly recognizing the need to
provide outstanding customer service in addition to the food products in order to build a loyal
and satisfied customer base . This means that Domino’s employees must provide a pleasant
experience for customers and demonstrate their willingness to exceed expectations if Domino’s
is to be the distinguished pizza delivery company. This guideline, in addition to the expectation
that employees are patient, polite, and treat customers with respect refers to the service
quality This is the actual service delivery and the company must recognize and close the gap
between the delivery and service quality specifications so that the perceived service provision
meets expected service . By observed journal done by Raffio,R (2007, by Restaurant Business )
(cited on 12-march 2010 )
Tittle : Domino’s pizza ,he found that domino’s is now the second largest chain in the country
valued at over $ 200 million & with sales of $ 400 million . Its growth rate has been
phenomenal and 1000 units were added to the now 1200 unit chain in the past 5 years.
Therefore , according to the article ; Domino’s has succeeded in recovering from such disaster
and in building up such a profitable business . It also looks at how the pizza chain is run today ,

11
its policies and strategy for growth and the fast food chain may become public company in
near future.
In another article I had observed that the journal done by (Pratscher.M) (cited on 19 – march
-2010 ) Tittle : can domino’s dominate the pizza market ? He found that although there was
widespread diversification throughout the fast food business . Domino’s pizza is the most
popular and fastest growing food service segment ,but also takeout and delivery sales in
general are predicted to triple over the next decade .Domino’s success can be attributed to a
variety of factors such as an extensive training programme , incentive awards and that’s why
there is huge scope in fast food industry.

IV. People in Services : to provide excellent service, organizations must understand that they
must focus on their front-line employees and management first. This involves hiring the right
people who fit the company culture and are service-oriented; training them and providing them
with the right tools to serve the customer; and retaining those people as satisfied and engaged
employees .

By analysis of the journal done by Minni Jaitly(technical director,Midas food international)(cited


on 14th March 2010) Title:current trends in the food service sector in the Indian subcontinent.
According to the article india has diversified culture and its own unique food
preferences. Although Indian culture is largely associated with the pronounced use of
some key ingredients and spices, differences in region, culture, climate. India is rapidly
becoming a key market for consumer goods and processed foods. Indian have very busy
lifestyle, heightened awareness, and a desire to imitate the West makes India a very suitable
market for prepared foods. Most the fast food chains like Pizza Hut, McDonald's, Domino's
Pizza, kfc etc. Even the government has recognized the potential of the processed food
industry and has declared food processing a major thrust area. This means that there will be
subsidies from the Government as well as important tax benefits. But before developing food
for the Indian market, it is important to understand the traditional influences and key flavors of
Indian food to successfully merge Western trends with Indian flavors.

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.

12
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.

Moving beyond metros

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 brands

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
13
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 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.

14
BRIEF HISTORY OF THE COMPANY,DOMINOS

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
franchise rights for Sri Lanka and Bangladesh through its wholly owned subsidiary.
Domino’s 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 between 2006-2007 and
2008-2009 in terms of number of stores.
Domino's vision is focused on " exceptional people on a mission to be the best pizza delivery
company in the world! ". Domino's is committed to bringing fun, happiness and 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 large and ever growing
customer base.
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. Major products they offer are pizzas,
appetizers, pastas, cakes and beverages.

15
BRIEF HISTORY OF THE COMPANY, PIZZA HUT
Pizza hut was started in 1958, by two brothers frank and Dan carney in Wichita, Kansas. They
had the idea to open a pizza 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.

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

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.

16
CHAPTER-3

RESEARCH
METHODOLOGY

17
Research methodology is considered as the nerve of the projec t. Without a proper well
organized research plan, i t is impossible to complete the project and reach to any conclusion.
The project was based on the survey plan. The main objective of survey was to collect
appropriate data, which work as a base for drawing conclusion and getting result. Therefore,
research methodology is the way to systematically solve the research problem. Research
methodology not only talks of the methods but also logic behind the methods used in the
context of a research study and it explains why a particular method has been used in the
preference of the other methods .
Research design
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers . In fact, it is the key to the evolu
tion of successful marketings trategies and programmers . It is an important tool to study
buyer’s behavior, consumption pattern, brand loyalty, and focus market changes . A research
design specifies the methods and procedures for conducting a particular study. According to K
erlinger, “Research Design is a plan, conceptua l structure, and strategy of investigation
conceived as to obtain answers to research questions and to control variance.
Types of research are :
• Descriptive Research
The type of research adopted for study is descriptive. D escriptive studies are undertaken in
many c ircumstances when the researches is interested to know the characteristic of certain
group such as age, sex, education level, occupation or income. A descriptive study may be
necessary in cases when a res earcher is interested in knowing the proportion of people in a
given population who have in particular manner, making projections of a certain thing, or
determining the relationship between two or more variables . The objective of such study is to
answer the “who, what, when, where and how ” of the s ubject under inves tigation. There is a
general feeling that descriptive studies are factual and very s imple. This is not necessarily true.
Descriptive study can be complex, demanding a high degree of s cientifics kill on part of the
researcher. Descriptive studies are well structured. An exploratory study needs to be flexible in
its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then. It is therefore necessary; the researcher give sufficient thought to
framing research. Questions and deciding the types of data to be collected and the procedur e
to be used in this purpose. Descriptive studies can be divided into two broadcategories :

Cross Sectional and Longitudinal Sectional :

A cross sectional study is concerned with as ample of elements from a given population. Thus ,
it may deal with house hold, dealers , retail stores , or other entities . Data on a number of
characteristics from s ample elements are collected and analyzed. Cross sectional studies are of
two types : Field study and S urvey. Although the distinction between them is not clear - cut,
there are some practical differences , w hich need different techniques and skills . Field studies
are ex - post-factor scientific inquiries that aim at finding the relations and interrelations among
variables in a real setting. Such studies are done in live situations like communities , schools ,

18
factories , and organizations . Another type of cross sectionals tudy is survey result, which has
been taken by me. A major strength of survey research is its wide scope. Detail information can
be obtained from a sample of large population .Besides ; it is economical as more information
can be collected per unit of cost. In 12 addition, i t is obvious that a sample survey needs les s
time than a census inquiry. Descriptive research includes survey and fact finding enquiries of
different kinds of the major purpose. Descriptive research is description of the state of affairs ,
as it exists at pres ent. The main characteristic of this method is that the researcher has no
control over the variables ; he can only report what has happened or what is happening. The
methods of research utilized in descriptive research are survey methods of all kinds including
comparative and corelational methods . The reason for using such needs to be flexible in its
approach, but a descriptive study in contrast tends to be rigid and its approach cannot be
changed every now and then.

Data collection methods:

Data can be obtained from primary or secondary sources . Primary data refer to information
obtained by the researcher on the variables of interest for specific purpose of the study.
Secondary data refer to information gathered from sources already existing, while discussing
literature survey. Some of the exa mples of secondary data are company records or archives ,
government publications , industry analysis offered by the media, websites , the Internet, and
so on. In some cases , the environment or particular settings and events may themselves be
sources of data, as for example, studying the layout of a plant. Considering the research
problem and research methods defined, primary and secondary data was coll ected in this
research.

Primary data :
It is the data that is collected by a researcher from first - hand sources, using methods like
surveys , interviews , or experiments . It is collected with the research project in mind, directly
from primary sources .

Secondary Data:
Secondary data are indispensible for most organizational research. Secondary data refer to
information gathered by someone other than the researcher conducting the current study.
Such data can be internal or external to the organization and accessed through the internet or
perusal of recorded or published information. Secondary data can be used, among other things
, for forecasting sales by constructing models based on past sales figures , and through
extrapolation. There are several sources of secondary data, including books and priodicals ,
Govt. publications of economic indicators , census data, statistical abstracts , and databases the
media, annual reports of companies , etc. Case studies and other archival records sources of
secondary data provide a lot of information for research and problem solving. Such data are, as
we have seen, mostly qualitative in nature. Also included in secondary sources are schedules
maintained for or by key personnel inorganizations , the desk calendar or executive, and
speeches delivered by them. Much of such internal data, though, could be proprietary and not
accessible to all. The advantage of seeking secondary data sources is savings in time and costs
of acquiring information. However secondary data as the sole source of information as the
drawback of becoming obsolete, and not meeting the specific needs of a particular situation or
19
setting. Hence, it is impor tant to refer to sources that offer current and up to date information.
Secondary data in this research was collected through various forms,company’s profile,
websites and various literature studies.

MARKETING STRATEGIES

Pizza Hut

Adapting To Economic Environment

In 1991 under the guidance of a visionary Narasimha Rao and his comrade Manmohan Singh
India marched towards a new era of Liberalization, Privatization and Globalization. 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 of us embrace fast
foods to suit the pace of our life.

Embracing Technology

Locating stores and placing orders has never been easier for pizza hut locals. With their virtual
store kind website, pizza hut offers customers a wide range of options to choose from menu
and avail new offers. Now orders can also be placed through mobile phones. High end
technologies are used at the cash counters. Across Socio-Cultural Barriers Food has no
language. Good food is appreciated across the globe. Pizza hut has outlets in a better part of
the world. It has taken immense effort to cater to its customers all over the worlds. income.
The status is steadily improving as more of us embrace fast foods to suit the pace of our life.

Across Socio-Cultural Barriers

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

20
Dominos

Adapting To Economic Environment

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. High end
technologies are used at the cash counters.

Across Socio Cultural Barriers

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

21
AN ANALYSIS OF THE COMPETITORS OF PIZZA HUT & DOMINO’S

WEAKNESS STRENGTH

SUBWAY  Still adapting to Indian taste  Kings of sandwich markets

 Expensive  Customized preparations

PIZZA CORNER  Low investment in ad  Variety

 Delivery not satisfactory  Quality

KFC More of chicken, less scope Variety masters of chicken


for veggies

MCDONALD’S Less variety  Burger leaders

 Fast service

 More offers

PAPA JOHN’S Expensive  Excellent quality

 Variety

CCD  Concentrate more on  Quality


beverages, less options for
 Variety in beverages
snacks

 Expensive

BARISTA  Concentrate more on  Variety in beverages


beverages, less option for
 Quality
snacks
 Excellent ambience
 Expensive

22
CONCEPT OF PIZZA HUT

 Pizza Hut is split into several different restaurant formats; the original family-style dine-in
locations; store front 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, bread sticks, and a pasta bar. Pizza Hut has a number of other
business concepts that are different from the store type; Pizza Hut "Bistro" locations are "Red
Roofs" which have an expanded menu and slightly more upscale options.

 An upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". At 50 US locations,
the Bistro is similar to a traditional Pizza Hut, except that new, Italian-themed dishes are on the
menu, such as penne pasta, chicken pomodoro, toasted sandwiches and other foods.[17]
Instead of black, white, and red, Bistro locations feature a burgundy and tan motif.[18] Pizza
Hut Bistros still serve the chain's traditional pizzas and sides as well. In some cases, Pizza Hut
has replaced a "Red Roof" location with the new concept. "Pizza Hut Express" and "The Hut"
locations are fast food restaurants. They offer a limited menu with many products not found at
traditional Pizza Huts. These type of stores are often paired in a collocated location with a
sibling brand such as Wing Street, KFC or Taco Bell, and are found on college campuses, food
courts, theme parks, bowling alleys, and in stores such as Target.

 Vintage "Red Roof" locations, 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."[19]

 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
"Red Roofs" have closed or been relocated or rebuilt.[20]

 Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and
sometimes an arcade. In the mid-1980s, the company moved into other successful formats
including delivery or carryout and the fast food "Express" model.

23
CONCEPT OF DOMINO’S

 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 flavours 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.

24
CHAPTER-4

DATA ANALYSIS

25
SWOT ANALYSIS

Strength

Dominos Pizza Hut

1. More outlets – Even in smaller towns 1. Unmatchable quality and variety


2. Less than 30 minutes Home delivery 2. Strong Brand Image
3. Quick service at outlets 3. Customer Satisfaction
4. Customer Satisfaction 4. Hygiene
5. Low Price 5. Excellent Service
6. Excellent offers
7. Good promotion

Weakness

Dominos Pizza Hut

1. Lack of variety 1. Inadequate advertisements


2. Outlets lack safe 2. Inadequacy of outlets
3. Ambience not up to expectations 3. High price
4. No option for birthday parties and 4. Lack of parking facilities at outlets
corporate lunches

Oppurtunity
Dominos Pizza Hut

1. Growing fast food market – Scope for 1. Growing fast food market – Scope for
expansion expansion
2. Introduce more varieties 2. Introduce attractive offers
3. Bigger outlets
4. Take away counters

Threat

Dominos Pizza Hut

1. Emergence of Papa John’s – World’s #Pizza 1. Emergence of Papa John’s – World’s #Pizza
makers makers
2. Better quality and variety of competitors 2. Low price points of competitors
3. No take away counters for Pizzas 3. No take away counters for Pizzas

26
SEGMENTATION

PIZZA HUT DOMINO’S

GEOGRAPHICAL Region – pizza hut outlets in Region – dominos outlets in


different countries is a way of different countries is a way
segmenting their market of segmenting their market
according to region and finding according to region and
out potential markets. finding out potential
markets.
City – they also segment the
cities as class i, class ii, metros, City – they also segment the
small towns cities as class i, class ii,
metros, small towns.

DEMOGRAPHIC Age – under 10years, 10 to 18 Age – under 13years, 13 to


years, 18 to 25 years, 25 to 40 21 years, 21 to 35 years, 35
years, 40+ years. Family income to 50 years, 50+ years. family
– middle class, upper income – lower middle class,
middle class, high class dual middle class, upper middle
income earners – yes/no class, high class

PSYCHOGRAPHIC socio-economic class – urban socio-economic class – urban


(a1, a2, b1, b2, c, d)

BEHAVIOURAL occasions – birthdays, corporate Loyalty status – low,


lunches, marriages, parties, medium, high user status –
receptions loyalty status – low, first time, regular, non-user
medium, high user status – first
time, regular, non-user

27
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 behavioral 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 behavioral segmentation it was found that they were targeting the first time users and also
their regular users.

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

28
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.

PRICING
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 the first week of its
launch.

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

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 an
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 competitors of the Pizza hut.

The Domino’s Pizza franchise constantly keeps on inventing ways through which it can make a
greater impact on the fast food market. That is how the fast food franchise came up with 'Fun
Meal for Four' offer. Through this method, the pizza franchise is able to produce more variety in
the food delivered to its 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 customer and they targeted that customers.
29
Pricing of Pizza Hut

In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail
price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that
is above the competition, but also promote frequent sales to lower the price below them. The
high/low pricing strategy has several advantages. First, this pricing strategy will help segment
the market. Different groups of customers are willing to paydifferent 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 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.

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
create excitement.

In India Pizza hut is targeting the rich and higher middle class people with a great ambiences of
enjoyment and amusement. They are offering an organized restaurant 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 less fixed and they are price
insensitive.

30
CREATIVE STRATEGIES
Dominos

 Kwality wall’s ice-creams in Dominos: for the 1st 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 innovative way .

 Domino’s has also come with PIZZA MANIA.

Pizza Hut

 Pizza Hut’s 1st campaign in television in July 2001, which said,” GOOD TIMES START WITH
GREAT PIZZAS”. The ad was aired during all the important programmes on starplus, sony, star
movies, etc.

 The 1st ad campaign on TV defines Pizza Hut as a brand, and what it offers to its existing and
potential customers.

SIMILARITIES OF DOMINO’S AND PIZZA HUT

 Both claimed to have original recipe of pizza making.

 Both customize their offerings ( though Pizza hut followed Domino’s)

 Both concentrated on database marketing.

 Both introduced coupons, discounts and special offers.

 Both used promotional campaigns involving customer directly.

 Both wanted to establish themselves as a brand.

31
DIMENSION OF COMPARISION

The 4P’s

DOMINOS PIZZA HUT

 Product  Pizza - High Localization;  Recipe redefining as per the


even based on different Indian taste.
regions.
 Following Dominos
 Trendsetter in localization. in localization.

 However; opened 100%


vegetarian restaurant.

 Customization based
on Religion – Jain

 City specific –
Hyderabad(Halal meat)

 Price  Initially high price; as key  Initially high price; as Pizza


ingredients sourced from Hut offer
Australia and Spain.
“Comeback Value to our
 Competition with Pizza customer” because of its USP
Hut resulted in Price cuts, – Dining Experience.
discounts.

 Promotion  Introduce Pizza  Campaign like – Pan in your


Name
mania (Large Pizza –
 Innovative Menu – Pizza
Rs.129/-)
Pooch menu and Pizza
 Discount coupons Pooch Birthday Package

 Tie-up with  One Rupee Pan deal


Discovery Channel – Co
 Barah nahin toh
branding
Tera scheme
 Direct Mailing and
32
Pizza Training Classes

33
 Place  Most robust and efficient  Not much focused on
Supply Chain – resulted in to supply chain; rather
reduce cost. focused on “dining
Experience”
 Strategic set up of
commissaries for raw
material supply.

 Tie up with real estate


consultant.

Targeting on nontraditional
outlets like Corporate office,
railway stations, cinema halls
etc.

34
PRODUCT LINE OF PIZZA HUT

• Pastas
• Sandwiches
• Thin crispy pizza
• Stuffed crust pizza
• Soups and Salad
• Deserts
• Beverage
• Garlic Breads

35
PRODUCT LINE OF DOMINO’S

• Simple veg pizza


• Regular pizza
• Medium pizza
• Large pizza
• Cheese burst
• Non-veg pizza
• Garlic bread
• Cheese garlic bread
• Garlic Breadsticks
• Chicken wings
• Beverages
• Desserts

36
CHAPTER-5

FINDINGS &
CONCLUSIONS

37
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 the³Hungry Kya? ´

(Are You Hungry) sequence of advertisements on television. A company official said, ‘We
realized that aPizza couldn't be slotted ± it could be a snack; then again, it could also be a
complete meal´ the only definitive common link between Dominos’ Pizzas and eating was the
hunger platform. The launch of Hungry Kya? ´Campaign coincided with³Hunger 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 toad 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.

38
Key Points of Pizza Hut
 Type
-Wholly owned subsidiary
 Founded
-Wichita, Kansas USA,1958
 Headquarters
-Addison, Texas, USA.
 Founder
-Dan & Frank Carney
 Chairman & CEO
-Michael Gian
 Industry
-Restaurants
 Slogan
-What are you celebrating today?
 Employees
-145,000

Key Points of Domino’s

 Type
- Public (NYSE: DPZ)
 Founded
- Ypsilanti, Michigan, U.S. (1960)
 Headquarters
- Ann Arbor, Michigan, U.S.
 Founder
- Tom Monaghan
 Chairman & CEO
- David Brandon.
 Industry
- Restaurants
 Products Pizza
-Sandwiches
-Pasta
-Chicken wings
-Desserts
 Employees
- 145,000

39
Menu of Pizza Hut:-

Menu of Domino’s

40
SUCCESS FACTORS

Pizza Hut

• Moving beyond metros


• Developing the local supply chain
•Good ambience
•Offering more than the international menu
•Aggressive marketing and tie-ups with local and popular brands

Domino’s

•Door step services.


•Low pricing
•Customer satisfaction
•Great offers
MORE PIZZA FOR YOUR BUCK

41
CURRENT SCENARIO

DOMINOS PIZZA HUT

PRODUCT • Pizza with promise of fast •Casual dining experience as


delivery well asfast delivery (PHD &
• Offers mainly Pizza along Restaurants)
with pasta, cakes and few •Also offers a wide variety of
other side dishes pasta,salads, soups, desserts,
• Mainly focused on pizza beverages etc.
•Less than 50% of sales is
from pizzas
PRICE •Concentrates mostly on the •Starts from lower end and
lower to middle band goes up to an upper end
•Caters mainly to price •Caters to many price and
sensitive segment. taste segments
•Lowest Offering is at Rs. 39 • Lowest offering is at Rs. 44
PROMOTION • Coupons • Coupons
• Bundling • Bundling
• Offers • Offers
• Encourage online ordering • Encourage online ordering
PLACE • 500 stores across 110 cities •121 stores across 34 cities
• Conveniently located for • Located at places where
fast delivery people visit more for leisure
• Encourages online ordering (Casual Dining)
• Opened PHD for catering to
home delivery
• Also encourages online
ordering

42
FUTURE PROSPECTS

PIZZA HUT

• Pizza Hut is all set to undergo a change of positioning in the Indian market. The fast food retail
chain plans to shift its focus from pizzas to full meals and 'treat bundles'. In the process, the
group is set to change its punch line from "Good Time, Great Pizzas" to "Treat You Just Can't
Beat“. Arvind Mediratta, chief marketing officer of Yum Restaurants International for the Indian
subcontinent, told ET, "Treats play a significant role in our day-to-day life.

• Also Pizza Hut, the flagship brand of Yum! Brands Inc., plans to launch 40 more restaurants
across the country

DOMINO’S
• Domino's Pizza is looking at opening 150 outlets throughout the Asia-Pacific region, including
15 in Malaysia by year-end. 42

• The company is looking for master franchise to open up its chain of food businesses in
Hong Kong, Bangladesh and Sri Lanka, in where it has yet to have a presence.

• Domino’s Pizza is planning to use a remote-controlled helicopter – the DomiCopter – to


deliver food. Resembling a Call of Duty-style UAV, but with pizzas instead of machine guns,
the DomiCopter is set to take the pizza delivery world by storm.

EXPANSION PLANS
PIZZA HUT

Future plans According to Yum! Restaurants International, India is amongst the top five growth
markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is
confident about expanding its operations in India. Pizza Hut hopes to increase the number of
Pizza Hut outlets in India to 130 by the end of 2005 from the present figure of 95. The
expansion programme will make Pizza Hut the fastest growing western restaurant chain in
India. In addition, Yum! Plans Pizza Hut to be in 35 cities by end of 2005, and 55 cities by end of
2006. Pizza Hut India; Yum! Restaurants International:

AT A GLANCE

43
• Pizza Hut: Serving from 95 outlets in 24 cities of India. US$ 25 million investment

• A major player in the Indian fast food and beverage sector, holding about 50 per cent of the
organized pizza market

• Factors for success: Offering value food. Moving beyond metros. Aggressive marketing and
tie-ups with local and popular brands. Developing the local supply chain. Customizing
product offerings

• For Pizza Hut, India is: one of the top 5 growth markets worldwide

• Future plans, India: presence in 35 cities by 2005, 55 cities by 200

DOMINO’S

In May 2001, Pavan Bhatia, CEO, Domino's Pizza India Ltd. (Domino's) stepped down from his
post. Earlier, in March 2001, at a board meeting, Domino's top management concluded that
'Pavan Bhatia's performance during his 18-month tenure was not up to the mark.' The board
felt that Pavan Bhatia had initiated an expansion strategy that was 'reckless and not properly
thought out.' However, many analysts did not agree with the board's conclusion. They felt that
the board was not considering the possible long-term benefits of Pavan Bhatia's strategy.
During March 2000-January 2001, Pavan Bhatia opened Domino's outlets in small towns and
cities. Pizza consumption in these places was very low. Analysts felt that even those willing to
opt for the product found the price unacceptable. The cost per meal was too high. In
September 2001, due to low footfalls and lower volumes, Hari Bhartia planned to shut down
Domino's outlets not only in some small cities but also a delivery outlet in the wealthy
Gujranwala Town in North Delhi. One of the two outlets in Ludhiana was also planned to be
shut down. (Refer Exhibit I for post Pavan Bhatia strategy of Domino's)

Sky is the Limit

In November 1999, Pavan Bhatia took over as the CEO of Domino's. He seemed to be very
ambitious and wanted to make Domino's the largest fast-food chain in India. Pavan Bhatia went
about opening Domino's outlets across the country. The number of outlets multiplied four fold
to 100 between March 2000 and January 2001. It was the fastest growth Domino's had in any
of the 63 countries it operated in. From an 44average of four stores every year in its first four
years of operation, Domino's expanded to more than 100 outlets in 10 months across 30 cities.
Domino's entered into an agreement with a real estate consultant CB Richard Ellis to help with
locations, conduct feasibility studies, and manage the construction. Pavan Bhatia said, "We are
in the business of selling pizzas, not hunting for real estate. And one of the biggest impediments
in retailing is real estate, so we decided to hand over the entire real estate operations to estate
consultants CB Richard Ellis." Pavan Bhatia realized that fast track growth could be achieved
only by focusing on the core business of selling pizza.

44
SUGGESTIONS
Dominos

• The dining conditions have to be changed drastically if Dominos have to target the premium
segment of customers.
• They are way behind Pizza Hut in the dining experience. Some of the Dominos restaurants
lack even basic amenities
• Due to this a condition can occur where customers judge the quality and taste of the pizza
with respect to the restaurant environment and ambience
• Thus to have a greater market share and tap premium segment of the market, Dominos can
provide good quality restaurants
• There should also be provision for music, TV’s, kids zone etc. in the restaurant
• By doing this they can even charge a little 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 pizza
can increase the elasticity of demand greatly
• Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut should
offer more discounts to tap more customers Their reach is very less as compared to Dominos
(as they have only premium restaurants) which deprives far off customers from having Pizza
Huts experience. Hence they should increase their presence.

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 valuesensitive, 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 around the country in order to reach the target market.

45
CHAPTER-6

ANNEXTURE

Questionnaire:-
Name:- Gender:-Male/Female
E-mail ID: Mobile No:-

Q1. Age Group:

a)Below 18 b)18-28 c)28-40 d)Above 40

Q2. How often do you visit Dominos?

a) Weekly b)Monthly c)Occasionaly

Q3. Which brand do you prefer the most?

a)Pizza Hut b)Dominos c)Others

Q4. Would you try a new food item launched by Domino’s?(e.g Red velvet lava cake,Pasta
Pizza)

a)Yes b)No

Q5. Specify your satisfaction with Domino’s wrt to quality?

a)Excellent b)Good c)Average d)Poor

Q6. Specify your satisfaction with Pizza Hut wrt to quality?

a)Excellent b)Good c)Average d)Poor

Q7. Specify your satisfaction with Dominos according to the Service?

a)Excellent b)Good c)Average d)Poor

Q8. Specify your satisfaction with Pizza Hut according to the Service?

a)Excellent b)Good c)Average d)Poor

46
CHAPTER-7
BIBLIOGRAPHY

Websites:

 http://en.wikipedia.org/wiki/Pizza_Hut

 http://www.recipepizza.com/the_history_of_pizza_hut.htm

 http://www.spaceref.com/news/viewpr.html?pid=4921

 http://www.globalclassroom.org/pizza.html

 http://www.oppapers.com/subjects/pizza-hut-pricing-strategy-page1.html

 http://www.workspacespirituality.info/SpiritualityCreativityBusiness.html

 http://www.freebizplan.org/business_strategies/soft_skills/spirituality.html

47

You might also like