Food Industry

Comparative analysis between Dominos pizza and Pizza Hut

2012-13

Acknowledgement
This report bears the imprint of many people and without their support it would not have existed. First of all we would like to express our sincere indebtedness and profound gratitude to our parents whose support in all manners had made us capable to complete this project. We would like to express our gratitude to Ms. Shabana Khan for providing us the guidelines and allowing us to undertake a project of this nature. We would also like to thank MITHIBAI COLLEGE for timely availability of books which have been an important input into completion of this Report. We are equally thankful to our friends for their valuable and timely inputs in the progress of the Report.

Contents
No Topic
1 2 Abstract Introduction

Page No.
4 5

3 5 6

Scope of study Objective of study Design of study Methodology used Source of data Sample plan Sampling method Data collection Instrument Limitations faced

6 6

7 8

Findings Strategies Strategic formulation Creation, communication and Capturing Value Brand Awareness through television Ad

7 13

9 10 11

Conclusion Recommendations References

15 15 16

List of Graphs and Pies

No.
1

Graph and pie

Age Bifurcation

Page No.
7

Frequency of visit in pizza outlets

Pizza Parlor generally visited or ordered from

Brand preferred in terms of quality of food offered

Brand that provides more variety/options in pizza

Brand that provides more variety/option in menu other than pizza i.e. appetizers, 10 beverages, dessert, etc. Preference between Dominos Pizza and Pizza Hut in terms of ambience/ a place for 10

Preference between Dominos Pizza and Pizza Hut in terms of customer service.

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Brand that is pocket friendly.

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10

Brand which has less waiting time in outlet.

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Preference between Dominos Pizza and Pizza Hut in terms of home delivery service.

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Abstract
With increasing disposable income and changing attitude, the exposure to various global cuisines or local delicacies, the Indian food lovers are always ready to taste both. The demand for various fast food items is rising in India. The most popular of them all is Pizza, which is now one of the most favorite fast food items of the Indians. The major in Indian Pizza industry are Pizza Hut and Dominos Pizza India. From the comparative study of these two Fast food chains Pizza hut and Dominos we understand that on which front which company is weaker than other and on which front which company is better than other. Pizza hut is the largest pizza restaurant company in the world with12000 outlets in 90 countries and it enters in INDIA in1996 whereas The Dominos pizza enters in INDIA in 1995and now it has 220 outlets in India. But after all Dominos which has First mover advantage and customer base; cannot succeed as most favorable brand in between the people of those who likes Pizzas according to survey. From this study we know that Pizza Hut is preferred by customers over Dominos Pizza in factors such as quality of pizza, dining experience, ambience, and customer service. In price category the price of the pizza is less in Dominos rather than pizza-hut. Dominos Pizza has an edge over the Pizza Hut in factors such as price and home delivery services.

Introduction
With increasing disposable income and changing attitude, the exposure to various global cuisines or local delicacies, the Indian food lovers are always ready to taste both. The demand for various fast food items is rising in India. The most popular of them all is Pizza, which is now one of the most favorite fast food items of the Indians. Major companies in this field are as follows: 1. Pizza Hut 2. Dominos 3. Papa Johns 4. Smokin Joes Fast food is one of the worlds largest fast growing industry types. Indias fast food industry is growing by 40%. The 6000 crore 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 food service 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. Domino's Pizza 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, Dominos Pizza 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.

Scope of the Study

Scope of the study is to find which brand among Dominos Pizza and pizza hut is more preferred by the consumer and also preferred on which factors.

Objectives
To find out the market strategies of both the brands. To find out the comparative analysis between Pizza Hut and Dominos Pizza. To check out the preferences of the people or the consumers. To find out which brand i.e. Dominos Pizza or Pizza hut is more preferred by people.

Design of Study

Methodology used: The methodology used in our study is Exploratory Research. As the study is
conducted to explore the mind sets of the regular customers regarding preference between Dominos Pizza and Pizza hut and also preference factors.

Source of Data:
Primary Data: It includes questionnaires, survey and word of mouth. Secondary Data: The Secondary data used includes Company records, past data records, internet
sources.

Sampling Plan: The Sample size used for this study is 50 respondents who have experienced the
service of Pizza hut and Dominos Pizza.

Sampling Method: The method used for collecting the data is Convenient sampling which is a
form of non- probability sampling. Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.

Data collection instrument: Data was collected using the Questionnaire method.
A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents.

Limitations Faced:
Reluctant Respondents Also the sample size is too small and it is based on convenient sampling so the conclusion cannot be generalized to the entire population.

Finding and Discussions

Research study has been conducted by our group for comparative analysis of Pizza Hut and Dominos Pizza India to find out which is the most preferred brand. The total numbers of respondents were 50 and the age bifurcation is as follows:

Age Bifurcation
Age Group 0-15 16-30 31 - 45 46 & above Total No of people 2 30 9 4 50

40 35 30 25 20 15 10 5 0 0 to 15

Age Bifurcation
35

9 4 2

16 to 30

31 to 45

46 and above

Form the survey conducted of 50 respondents our group discovered the following facts:

1) Frequency of visit in pizza outlets

From the pie chart, we can see that around 3/5 th of the people prefer to go to pizza outlets once a month, the second highest being 24% which is the number of people going once in 2 weeks. This is followed by 10% and 4% which is people going weekly and once in 3 months respectively.
2)

Pizza Outlet generally visited or ordered from

The maximum being Dominos Pizza with a customer liking of 44% followed by Pizza Hut with 40% and others being 16%.

3) Brand preferred in terms of quality of food offered

The customers preference of pizzas in terms of quality favors in terms of Pizza Hut with 56% and Dominos Pizza with 44%.

4) Brand that provides more variety/options in pizza

According to our survey, the customers we got had an equal preference to Dominos Pizza as well as Pizza Hut in terms of variety of pizzas offered.

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5)

Brand that provides more variety/option in menu other than pizza i.e. appetizers, beverages, dessert, etc.

Pizza Hut leads with 60% with customers opinion of food other than pizzas and Dominos Pizza then has 40% remaining share.
6)

Preference between Dominos Pizza and Pizza Hut in terms of ambience/ a place for dining.

Dominos Pizza has set its image as home delivering pizza hence it has a low customer preference of 30% in terms of ambience whereas Pizza Hut has 70%. 11

7) Preference between Dominos Pizza and Pizza Hut in terms of customer service.

Customer service of Pizza Hut is rated better with 60% of customer preference followed by Dominos Pizza with 40%.

8) Brand that is pocket friendly.

Dominos Pizza is considered more pocket friendly with a share of 64% by our sample and Pizza Hut is 36%.

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9) Brand which has less waiting time in outlet

The waiting time at outlets of both Pizza Hut and Dominos Pizza are almost the same, Dominos Pizza being 52% and Pizza Hut being 48%.

10) Preference between Dominos Pizza and Pizza Hut in terms of home delivery service.

Dominos Pizza, who has set its image as home delivering pizzas, leads the consumer preference with 80% followed by Pizza Hut with 20%.

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Strategies of Pizza Hut and Dominos Pizza

Overall both the companies achieved what they wanted to as for Dominos Pizza 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.

1) Strategic Formulation
Dominos Pizza: Overall Cost Leadership, Differentiation and Focus This is achieved very effectively by Dominos Pizza as they do not intend to lose their focus from delivering pizzas at home. 70% of their Dominos Pizza 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 Pizza is able to provide good pizzas at relatively lower rate as they dont spend much for the restaurant. Pizza Huts: Premium price Pizza Hut is committed for providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. They stress heavily on the dining experience and the ambience. Thus at each point company charges a premium. Thus Pizzas from Pizza Hut costs a premium hence their customers also changes to high income groups.

2) Creation, Communication and Capturing Value

Dominos Pizza Dominos Pizza India has always maintained its position in market with its constant product innovation and maintenance of stringent service standards. More importantly, it has established a reputation for being home delivery specialist capable of delivering pizza within 30 minutes. 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 Pizza 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 Pizza offer to consumers. Delicacies that do not rip wallets have always got the crowd coming back to the Dominos Pizza 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 Pizza. "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 Pizza has always been directed towards making its customers happy, creating, communicating and delivering value.

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Pizza Hut
Worldwide and in India, pizza hut has become synonymous with the best pizza under one roof Pizza hut is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in pizza huts success has been its unique dining experience. One of the strategies they adapted was that 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. 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. Another factor in Pizza Huts success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of 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. 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.

3) Brand Building Through Advertisement

Dominos Pizza and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. In August 2000, Dominos Pizza launched the Hungry Kya? sequence of advertisement on television. A company official said, We realized that a pizza couldnt be slotted- it could be a snack, then again it could also be a complete meal. The only definite common link between Dominos Pizza and eating was hunger platform. This was followed by Pizza huts first campaign in July 2001 which said Good time starts with great pizzas. The ad was aired during all important programs on star plus, Sony, max, star movies, Hbo, AXN and MTV

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Conclusion:
We come to a conclusion that: Both the companies are good in achieving their goal and are equally good in achieving what they intend to. Pizza Hut is preferred over Dominos Pizza in terms of Varity of Pizzas Good ambience Services offered Quality of pizzas Waiting time in the outlet

Dominos is being preferred over pizza-hut in terms of: Door step services Low pricing So, According to our survey, we can say that due to these qualities Pizzah u t d o m i n a t e s Dominos Pizza

Recommendations
For Dominos Pizza
Increase varieties in Pizzas. Make good ambience in outlets: the dining conditions have to be changed drastically if Dominos Pizza to target premium segment of customer. They are way behind in dining experience compared to pizza hut

For Pizza-Hut
.
Should focus on Low price customers: reduce the menu cats, it is expensive for middle class Indian. Make Door Step services better.

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References
http://www.scribd.com/doc/16314990/Comparative-Analysis-Between-Pizza-Hut-andDomminos http://www.scribd.com/doc/25371457/Pizza-Hut-and-Dominos-marketing-strategy http://www.scribd.com/doc/42978212/Pizza-Hut-and-Dominos-A-comparative-analysis http://www.pizzahut.co.in/ http://www.dominos.co.in/

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Questionnaire
The objective of this questionnaire is to understand which brand among Dominos Pizza and Pizza Hut is more preferred and why is it preferred

1. Name: 2. Age: a. b. c. d. 0-15 16-30 31-45 46 & above

3. Occupation: a. Student b. c. Service Business

4. Gender: a. Male b. Female

5. How often do you visit pizza outlets? a. Weekly b. Once in two weeks 18

c. Once in a month d. once in 3 months

6. Which Pizza Outlet you generally visit or order from? a. Pizza Hut b. Dominos Pizza c. Others

7. Which brand you prefer in terms of quality of food offered? a. Pizza Hut b. Dominos Pizza

8. Which brand provides more variety/options in pizza? a. Pizza Hut b. Dominos Pizza

9. Which brand provides more variety/option in menu other than pizza i.e. appetizers, beverages, dessert, etc.? a. Pizza Hut b. Dominos Pizza

10. What do you prefer in terms of ambience/ a place for dining? a. Pizza Hut b. Dominos Pizza 19

11. What do you prefer in terms of customer service? a. Pizza Hut b. Dominos Pizza

12. Which brand is more pocket friendly? a. Pizza Hut b. Dominos Pizza

13. Which among the two brands has less waiting time in outlet? a. Pizza Hut b. Dominos Pizza

14. What do you prefer for home delivery service? a. Pizza Hut b. Dominos Pizza

Thank You

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