A SURVEY REPORT

ON

COMPARITIVE ANALYSIS OF PIZZA HUT

AND DOMINOS

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWAED OF

THE DEGREE OF

Bachelor of Business
Administration

Supervised by Submitted by

Mr. ATUL PANDEY RAVI PRAKASH

DEPARTMENT OF MANAGEMENT
INSTITUTE OF COMPUTER SCIENCE & TECHNOLOGY,
VARANASI

(AFFILIATED TO MAHATMA GANDHI KASHI VIDYAPITH, VARANASI)

 Enrolment No: KA2K15117100035 MAY, 2017

Institute Of Computer Science & Technology

SHEPA Campus Nibia,Bachchhaon,VRM Bypass,Varanasi-221011
Registered under section 2(f) & 12 (b) of UGC
------------------------------------------------------------------------------------------------------------

CERTIFICATE

This is to certify that Mr/Ms.student of BBA 6 th

semester (2016-17) of ICST (College code:117) who was assigned a major project
entitle
. has completed his/her project successfully as a
partial fulfillment of requirement for the Award of degree of bachelor of business
administrations (BBA), Mahatma Gandhi kashi vidhyapith,Varanasi.

The report is forwarded with recommendation to the Register, Mahatma Gandhi kashi
vidyapith, Varanasi for kind information.

Dr. Rajiv Ranjan

(Principal)
ICST
Date:

2
 Institute Of Computer Science & Technology
SHEPA Campus Nibia,Bachchhaon,VRM Bypass,Varanasi-221011
Registered under section 2(f) & 12 (b) of UGC

------------------------------------------------------------------------------------------------------------

CERTIFICATE

This is to certify that the report entitled COMPARITIVE ANALYSIS

OF PIZZA HUT AND DOMINOS has been prepared by Ravi Prakash for
the award of the degree of Bachelor of Business Administration, Department of
Management, Institute of Computer Science & Technology, Varanasi. The
candidate has carried on research work under my supervision for the prescribed
period and it is his own work.

(Mr. Atul Pandey)

Supervisor

3
 Institute Of Computer Science & Technology
SHEPA Campus Nibia,Bachchhaon,VRM Bypass,Varanasi-221011
Registered under section 2(f) & 12 (b) of UGC

------------------------------------------------------------------------------------------------------------

DECLARATION

I, Ravi Prakash declare that the project entitled COMPARITIVE

ANALYSIS OF PIZZA HUT AND DOMINOS is a record of
independence project work carried out by me under the
supervision and guidance of "Mr. Atul Pandey".

Place: Varanasi Ravi Prakash

BBA VIth Semester
Date: Roll No.11715100060

4
 ACKNOWLEDGEMENT

One of the most pleasant aspects of writing an acknowledgement is the

opportunity to thank all those who have contributed to it. Unfortunately, the list of
expression of gratitude- no matter how extensive is always incomplete and
inadequate. This acknowledgement is no exception.

First of all, I wish to express my sincere gratitude to Mr. Atul Pandey for
giving me opportunity to do research under her profound guidance. Because of her
inspiring guidance, motivation, positive criticism, continuous encouragement and
untiring supervision this work could be brought to its present shape.

I would like to thank all of them who in one way or the other have helped
me.

Ravi Prakash
BBA-6th Semester

5
 CONTENTS

1. INTRODUCTION

2. OBJECTIVES

3. RESERCH METHODOLOGY

4. MARKET ANALYSIS

5 CONCLUSIONS

6. SUGGESTIONS

7. LIMITATIONS

8. BIBLIOGRAPHY

6
7
 INTRODUCTION

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

Major players in fast food are:

McDonalds

KFC

Pizza Hut

Dominos Pizza

Caf coffee day

8
 Barista

Subway

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

REASONS FOR EMERGENCE

Gender Roles:

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

Customer sophistication and confidence:

Consumers are becoming more sophisticated. They do not want to prepare food and
spend their time and energy in house hold works. They are building their confidence
more on ready to serve and easy to eat kind of foods.

Paucity of time:

People have no time for cooking. Because of emergence of working women and also
number of other entertainment items. Most of the time people either work or want to enjoy
their family.

Double income group:

9
Emergence of double income group leads to increase in disposable income. Now
people hve more disposable income so they can spend easily in fast food and other
activities.

Large population:

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

MARKET SHARE AND MAJOR PLAYERS

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

Other players mainly are:

Smokin Joes

10
 Gracias

Papa Johns

U S Pizza

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

MAJOR FORCES SHAPING THE TRAJECTORY OF THE

INDUSTRY

INDUSTRY COMPETITION

11
In tier I city like Mumbai, pizza hut and dominos are facing a stiff competition from
these providers (with respect to branded pizza)

Pizza Corner

Smokin Joes

U S Pizza

Gracias

In tier II cities, dominos and pizza hut are still the major players.

THREAT OF NEW ENTRANTS

With the economic reforms the liberalization, many new entrants also want the
revenue of the 200 billion India fast food industry.

There are many new entrants in the branded pizza industry some of them are:

Papa Johns Pizza

U S Pizza

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

SUBSTITUTES

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There are lots of substitutes which are available to choose with respect to the fast
food industry some of them are:

Any restaurant

McDonalds

Barista

Caf coffee day

Chinese restaurant (Mainland China)

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

BUYERS BARGAINING POWER

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

Suppliers Growing Bargaining Power

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

13
 TRENDS IN THE INDIAN MARKET

Marketing To Children

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

Low Level Customer Commitment

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

Attracting Different Segments of the Market

Fast food outlets are introducing varieties of product in order to cater the demand of
each and every segment of the market. They are introducing all categories of
product so that people of all ages, sex, class, Income group etc can come and
become a customer of their line.

The success of fast foods arose from the changes in the economic conditions

1. Many women or both parents now work.

2. There are increased numbers of single-parent households.

3. Long distances to school and work are common.

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 4. Theres often not enough time or opportunity to shop carefully for groceries, or
to cook and eat with ones family. Especially on weekdays, fast food outside
the home is only solution.

Brief history of the company, Indian operations (DOMINOS)

The dominos brand was found in the United States of America in 1960 by Thomas
and James Monaghan. Since then, that business has grown into a global network
over 8,500 pizza stores in more than 60 countries, involving over 2,000 franchises.
Over its 49-year history, dominos has developed a simple business model focused
on delivery quality pizzas in a timely manner. Dominos pizza, inc., completed its
initial public offering in 2004 and is listed on the New York stock exchange.

Dominos pizza India ltd. Was incorporated in March 1995as the master franchisee
for India and Nepal, of dominos pizza international inc., of U.S.A. Moreover, the
company holds the master franchisee rights for Sri Lanka and Bangladesh through
its wholly owned subsidiary. Mr.Shyam .S.Bhatia and Mr.Hari.S.Bhatia of the jubilant
organosys group are the promoters of the company.

Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union
territories (as on 31st August 2009). According to India retail report 2009, dominos
are the largest pizza chain between 2006-2007 and2008-2009 in terms of number of
stores.

Dominos vision is focused on exceptional people on a mission to be the best pizza

delivery company in the world!. Dominos committed to bringing fun, happiness and
convenience to the lives of our consumers by delivering delicious pizzas to their door
step in 30 minutes or less, and its effort are aimed to fulfilling the commitment
towards its large and ever-growing customer base.

Dominos pizza constantly strives to develop products that suit the tastes of its
consumer and hence delighting them. Dominos strongly believe in the strategy of
think global and act local. Thus, time and again dominos pizza has been innovating

15
with delicious new products such as crusts, toppings and flavors suitable to the taste
buds of Indian customers. Further, providing value for money at affordable products
to the consumer has been dominos motto. Initiatives such as fun meal and pizza
mania have been extremely popular with consumers.

The brand positioning of khushiyon ki home delivery (happiness home delivered) is

the emotional benefit dominos offer to consumers.

Major products they offer are pizzas, appetizers, pastas, cakes and beverages.

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

Pizza hut was started in 1958, by two brothers Frank and Dan Carney in Wichita,
Kansas. They had the idea to open a pizza parlor. They borrowed $600 from their
mother, and opened the very first pizza hut. In 1959, the first franchise unit opened in
Topeka, Kansas. Ten year later, pizza hut was serving one million customers a week
in their 310 locations. In 1970, pizza hut was put on the New York stock exchange
under the ticker symbol pizza.

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

Pizza hut is one of the flagship brand of Yum! Brands, Inc., which also has KFC,
Taco Bell, A & W and long john silvers under its umbrella. Pizza hut is the largest
pizza chain with over 12,500 restaurants across91 countries.

In India, pizza hut has 137 restaurants across 36 cities, including Delhi, Mumbai,
Bangalore, Chennai, Kolkata, Hyderabad, Pune and Chandigarh amongst others.
Yum! Is in the process of opening pizza hut restaurants at many more locations to
service a larger customer base across the country.

16
In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita
Kansas. The small 25 seat restaurant only had room for 9 letters on the sign the building
looked like a hut so 'Pizza Hut' was born! Fifteen years later, we opened the first UK
restaurant and since then we've become the biggest Pizza Company on the planet, Let see
listen Pizza Hut Story from them!

1958: Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka,
Kansas.

1971: Pizza Hut becomes the number one pizza restaurant chain in the world
on both sales and Number of restaurants.

1972: 1000 restaurants are open throughout the USA.

1973: Pizza Hut went international with restaurants in Japan, Canada & England. The first
UK Pizza Hut opened in Islington, London.

1977: PepsiCo bought Pizza Hut.

1980: Pan Pizza was introduced.

1982: The UK joint venture started between PepsiCo and Whitbread.

1984: Over 50 restaurants so far in the UK.

1986: By now, there were 100 restaurants in the UK and 5000 worldwide.

1987: An average of one restaurant opened each week in the UK.

1988: The UK's First Delivery Unit was opened in Kingsbury, London.

1992: There were 9,000 restaurants in 84 countries.

17
 1993: There were 300 restaurants and delivery stores in the UK.

1994: 10,000 Pizza Huts were open for business.

1997: PepsiCo decided to focus on their drinks business. As a result, Tricon Global
Restaurants Was born, creating the largest restaurant brand in the World. Tricon became the
partner company with whitbread.

1999: Pizza Hut had over 400 restaurants, employing 14000 people.

2002: Tricon Global became YUM! Brands Inc.

2006: Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd
was now 100% owned by Yum!

2008: We bought Godfather's Pizza in Ireland with 28 stores.

PIZZA HUT VISION AND MISSION

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

Pizza hut is committed for providing uncompromising product quality, offering

customers the highest value for money and giving service that is warm, friendly and
personal. A critical factor in pizza huts success has been its unique dining
experience. Crew members at pizza hut strive each day to provide customer mania
the kind of service that ensures that every visit of the customer is a memorable
one.

A critical factor in pizza huts success has been a menu that has constantly evolved
and expanded to cater to the changing needs and specific preferences of customer
in different parts of the world. In having understood the pulse of the customer in
18
India, pizza hut has clearly established itself as a brand with an Indian heart. Besides
offering an extensive range of vegetarian pizza, it was the first pizza chain to open a
100% vegetarian restaurant in India in Surat and later in Ahmadabad and chowpatty,
where it offers a jain menu sans all root-based ingredients.

Over the years pizza hut has also developed and successfully introduced a range of
products especially suited to the Indian palate. These products like chicken tikka,
spicy korma, Spicy Paneer, and the masala and tandoori pizzas and have been a
tremendous success. What has also given pizza hut a competitive edge is that in
addition to an extensive range of internationally renowned pizza like the Italian, the
proprietary pan pizza and stuffed crust, in India the menu offers the opinion of a
complete meal. It includes appetizers, a salad bar where the customers can make
their own fresh salads, a range of soups, pastas and deserts, etc .

CUSTOMERS

Mostly customers come to Dominos for food and the others for the enjoyment as
their basic requirement. Mostly customers come to dominos for take away pizzas
while they come to pizza hut for the dining experience. Their unsatisfied need is
either food or enjoyment.

Most customers in dominos are from the middle income group or students whose
disposable incomes are relatively low. Generally everyone finds the taste of pizzas to
be good.

Also the location of the restaurant makes a lot of difference as many people come to
dine due its strategic location. Even we had food in the restaurant and we also find
the taste to be great! People preferred dominos for their relatively lower price.

Influence in buying pattern

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Buying pattern is also influenced by the preferred their choices due to their wards but
mostly for single adults their choices depends upon them.

Also the brand recall of the restaurants make a lot of difference. A hard core follower
of dominos will have food from dominos only.

General buying pattern (this data is pertaining to Mumbai city)

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

CORE COMPETENCIES

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 That which makes them different!

Dominos

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

Tracing footsteps

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

Pizza Hut
Tracing footsteps

Pizza hut is akin to the Indian heart and taste buds. Pizza hut has been able to
capture the heart and soul of Indians. This, they achieved through rapid Indianization
of pizzas. Chicken tikkas, tandoori range and spicy korma were welcomed by the
pizza lovers. In addition to this, pizza hut takes pride in having the only 100%
vegetarian pizza hut in the world at Ahmadabad, Surat and Mumbais chowpatty. It
also has a special jain friendly menu without root based ingredients and even serves
salad dressings without eggs!!!

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Thinking out of the box was never new at pizza hut. With the palat campaign they
even nudged Indians to eat pizza backwards. The vehicle for this change was the
stuffed crust pizza which has become a huge hit. The pizzas outer crust has a
stuffing of mozzarella cheese and one can run into people eating these pizzas
backwards in many outlets. Talk about bringing changes !!!

Pizza hut is really going global. Tuscani pasta that is truly italian is now at every
pizza hut outlet. With changing tastes of Indians and greater acceptance of
international cuisines, pizza hut has introduced 30 new items on its menu for this
festival season. These include beverages, pasta and desserts.

Pizza hut express outlets were launched at malls, airports, department stores and
gas stations which offers a reduced version of the menu for globe trotters and bust
bees.

Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday
bashes, kitty parties and corporate lunches.

Dreaming big

Pizza hut aims to the number of one restaurant chain in India and expects a turnover
of $1 billion by 2015. The yum restaurant plans to invest $150 million in the next 5
years to expand the number of outlets to 1000 from the existing 2015.

ACCESS TO CRUCIAL RESOURCES

22
 The players behind the scene

Dominos

Dominos has been voted as the best employer by leading news daily, times for India
for the year 2009. The chefs of dominos pizza India are recruited by the noida after
careful evaluation. Employees at dominos are also smiling as they get incentives on
meeting sales target and are also credited for their performance.

Dominos has been always been noted for the new item that spring up often in their
menu. Marketing department does a careful analysis of growing demand and
changing tastes and puts together the new menu that tantalises palates, says
marketing head, Mr. Harneeth Singh.

The menu remains same throughout the country and so do systems and processes.
National level suppliers are a part of the dominos family. Dominos firmly believe that
it is these systems and processes that enable it to get a better edge over its
competitors.

Dominos take pride in its unbeatable delivery suitable. Delivery within 30 minutes
campaign was indeed revolutionary and is the best core competency that makes
dominos pizza a better experience than anyone else in the market.

Pizza hut

Workforce of pizza hut is chosen with the motto together we grow with primary
concern being quality of service, be it in terms of delivery or quality of pizzas. The
employees undergo extensive training to achieve technical finesse and leadership
qualities. The newly chosen chefs are trained by the older and more experienced
ones for a period of about 20 days. Pizza hut takes pride in walking the talk with the
leadership principles of yum restaurants. These value include customer focus, trust
in people, recognition, accountability, excellence, positive energy and team work.

23
The customer focus is so high that they have the separate system in place to satisfy
vegetarian customers. Vegetarian dishes are prepared and served using separate
green spatulas.

Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday
bashes, kitty parties and corporate lunches.

Pizza hut considers its employees to be the greatest strength. From the view point of
a customer it is the variety and taste of pizza which is directly tied to its employees!

The menu remains constant throughout the country and varieties are just added. The
newest entrants into the Indian menu were stuff crust pizza and cheesy bites.

Vegetables, meat and other additives are supplied by one common vendor.

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SWOT ANALYSIS
DOMINOS

PIZZA HUT

25
 COMPETITORS

Pizza Hut

The main competitors who lock horns with pizza hut are:

Pizza corner

Dominos

McDonalds

Barista

Caf coffee day

Subway

Papa Johns

26
 Dominos

The major competitors of dominos are:

Pizza Hut

Pizza corner

McDonalds

Barista

Caf coffee day

Subway

Papa Johns

An analysis of the competitors of Dominos and Pizza Hut

27
28
 CONTEXT

Dominos

Adapting to economic environment

Dominos made their entry in India in 1995 when the country was marching into an
era of liberalization, privatization and globalisation. These years marked the start of
some of the greatest socio economic and cultural changes in our country.

Dominos focuses on value to customers and offers pizzas and italian delicacies at
affordable prices to middle class Indian consumers. Dominos has 274 outlets in 55
cities across 20 states. This is the largest in terms of fast food restaurant. Thus they
have adapted to Indian economy in terms of purchasing power and disposable
income of middle class Indians .

Embracing technology

Locating stores and placing orders has never been easier for pizza loyals. With their
virtual role store kind website, pizza hut offers customer a wide range of option to
choose from menu and avail new offers. New orders can also be ordered through
mobile phones. High end technologies are used at the cash counters.

Across socio cultural barriers

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

29
 Pizza Hut

Adapting to economic environment

In 1991 under the guidance of visionary Narasimha Rao and his comrade
Manmohan Singh India marched towards a new era of liberalization, privatization
and globalisation, Trade barriers were eased and cultural barriers started dissolving.
It was at this juncture that pizza hut made its infant steps in India, with its first outlet
at Bangalore. Today Bangalore alone has a striking 19 outlets which remain busy till
late night.

Pizza hut has 140 restaurants across 34 cities in India including metros. With its
focus steadily on quality and variety, pizza hut has given a new dimension to regular
pizza eat-outs. However the trifle higher prices may remain concern for middle class
Indians with less purchasing power and deposable income. The status is
steadily improving as more of us embrace fast food suit the pace of our life.

Embracing technology

Locating stores and placing orders has never been easier for pizza loyals. With their
virtual role store kind website, pizza hut offers customer a wide range of option to
choose from menu and avail new offers. New orders can also be ordered through
mobile phones. High end technologies are used at the cash counters.

Across socio-cultural barriers

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

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 SEGMENTATION

Dominos

Geographic:

Region Pizza hut outlets in different countries is a way of segmenting their market
according to region and finding out potential markets.

City They also segment the cities as class I, class II, metros, small towns.

Demographic:

Age Under 13 years, 13 to 21 years, 21 to 35 years, 34 to 50 years, 50+ years.

Family Income lower middle class, middle class, upper middle class, higher class.

Psychographic:

Socio - economic class urban (a1, a2, b1, b2, c, d)

Behavioral:

Loyalty status low, medium, high

Use status first time, regular, non - user

31
 Pizza Hut

Geographic:

Region Pizza hut outlets in different countries is a way of segmenting their market
according to region and finding out potential markets.

City They also segment the cities as class I, class II, metros, small towns.

Demographic:

Age Under 10 years, 10 to 18 years,18 to 25 years, 25 to 40 years,40+ years.

Family Income middle class, upper middle, high class

Dual income earners yes/no

Psychographic:

Socio - economic class urban (a1, a2, b1, b2, c, d)

Behavioral:

Occasions birthdays, corporate lunches, marriages, parties, receptions

Loyalty status low, medium, high

Use status first time, regular, non - user

32
 TARGETING

Dominos

In geographic segment they targeted countries where there were no pizza hut
outlets. Initially opened in class II cities and then have now moved to class I, metros
and smaller towns.

In demographic segment their main target is the teenagers and college

students (13 to 21 years), young adults ranging from 21 years to 35 years. They aim
basically at the middle class, upper middle class income families.

In psychographic segment they targeted a2, b1, b2 socio economic classes.

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

Pizza hut

In geographic segment they targeted countries where there were no pizza hut
outlets. Initially opened in class I cities and then have no moved to metros.

In demographic segment their main target is the young adults ranging from 25
years to 40 years and also dual income earners family. The aim basically at the
upper middle class and the high class income families.

In psychographic segmentation they targeted at a1, a2, b1 socio economic

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

33
 POSITIONING

Points of difference

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

from home delivery of pizzas and 40% from the restaurant sales, says Mr.
Navamani, manager of dominos, Coimbatore v.o.c Park
outlet. In case of pizza hut, the major revenue is from
restaurant sales.

Points of parity

Category points of parity the main food item that is sold in pizza hut and dominos is
pizza. As we all know, pizza comes under the fast food category of foods, both the
companies must be in good in speed of making and service. Irrespective of the cost,
both pizza hut and dominos has to deliver or serve pizza in less time as compared to
other main course food items served in other restaurants.

Competitive points of parity competitive points of parity in case of pizza hut is that,
even through pizza hut is costlier than dominos, they have their own customers, who
do not bother about spending, but look for quality and personalized service. When
we visit pizza hut, they have restaurant hostess who will assign us tables and
introduce the steward who will be taking care of us. This is generally a produce that

34
is followed in five star category hotels and pizza hut is also following is to emphasize
on service quality. In case of dominos, they are not costly as pizza hut and do not
offer great ambience to customers, but offer good pizzas at nominal price. They
concentrate on turnover of covers and cater to customers who dont have time to
spend on food and just stop over for refreshment. Moreover, dominos mainly looks
into home delivery of pizzas and are experts in it.

PRODUCT

DOMINOS

35
The customer value hierarchy

From the above diagram we can see that dominos has a food as a basic product but overall
it provides an experience. Thus a person having a basic need of food can go to dominos and
have pizza which is the companys core product. Hot pizza and good taste are his
expectation. Thus the company should ensure by providing good pizza. The value adds
services refer to the overall dining experience, the service quality, ambience etc.

Product differentiation:

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

Pizza Features:

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

Some of the menu items are:

Pizzas

36
 Pastas and salads

Appetizers

Desserts

Beverages

37
Mass customization:

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

The most unique feature is that there is single size pizza scheme where one can select any
vegetarian / non vegetarian pizza at lower cost. This is a unique way of offering as there
are many consumers who would not afford a regular size of pizza and they can have a slice
of it.

Conformance quality:

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

Style:

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

Service differentiation

Ordering ease:

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

38
Delivery:

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

Product mixes:

Width: The companys total width of the product mix includes pizzas, pastas, appetizers,
beverages and deserts.

Length: The total number of items available in the companys offerings is 29.

These are pizzas available in the menu

Margherita Deluxe veggie

Cheese and tomato pizza Gourmet
Double cheese Margherita Cheese and barbeque chicken
Fresh Veggie Barbeque chicken
Country Special Spicy Chicken
Farm house Chicken Mexican red wave
Pepper paneer Kheema do pyaasa
Mexecian green wave Chicken golden delight
Vegetarian extravanza Meatzaa

39
 Non-vegetarian extravanza Cheese and pepperoni
Cheesy white

The pastas and appetizers available are

Cheesy white pasta Garlic bread

Tangy red pasta Cheese dip

Depth:

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

Consistency:

The consistency of the product is the same as pizza hut operatesonly in the brand food pizza
industry.

Product line analysis:

The company has a basic platform of offering pizzas and have added on different modules to
meet the ever changing customer requirements. Thus the major chunk of profits comes from
pizzas and pastas. While beverages and deserts contribution towards profit is to a lesser
extent

40
Product line:

Core Staples Specialties Convenience

Product Item

Pizza Pastas Desserts Beverages

& Appetizers

Eg: Pan, Eg: Tangy

Cheese Eg: Choco Eg: Chicken
Red Pasta
Pizza Lava Cake wings, Garlic
Bread

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

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

Specialties for pizza hut is their dessert, i.e. Choco Lava cake which is highly promoted so
that the sales of the other items increase (birthday parties).

Convenience items are appetizers and chicken wings in which has higher margin and
generally tends for impulse buying.

Co branding:

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

Packaging and labeling:

The packaging of the pizza has been ordinary in the sense that, it serves the basic purpose
of serving pizza.

41
In house dining:

In house dining, the pizzas are packed in a paper box. Plates are not provided to the
customer. The extra ingredients like oregano mix, and chilli flakes etc. Are given in a plastic
pouch which the customers have to open manually. Thus the customer can finds this quite a
task to open the pouches as they are not easily removable. The main resource behind this is
dominos classifies itself as a take home /order from home pizza and hence dining is not
encouraged.

Each paper boxes are designed to deliver the branding of dominos and labeling is quite well.
All ingredients pouch are also labeled.

Take away orders

They are put in a paper boxes described above our packaged into a special delivery bags
are retaining the heat.

Thus we can observe that from every labeling, packaging the companies tries to imbibe the
brand of dominos pizza delivered in 30 mins in the minds of consumers.

Pizza hut

42
The customer value hierarchy
From the above diagram we can see that pizza hut has enjoyment as a basic
product but it provides food for it. Thus a person having a basic need of enjoyment
can go to pizza hut and have pizza which is the companys core product. Hot pizza
and good taste are his expectation. Thus the company ensure this by providing good
pizza. Thus value adds service refer to the overall dining experience, the quality
service, the ambience, etc.

Product differentiation

Worldwide and in India, pizza hut has become synonymous with the best pizzas
under one roof. This is at pizza hut the belief is that every pizza has its own magic,
thus making it a destination product which everyone seeks. It is this belief that has
ignited the passion to create, innovative and serve the finest product the industry has
to offer, while setting standards for other to strive to replicate. Pizza hut is committed
to providing uncompromising product quality, offering customers the highest value for
money and giving service that is warm, friendly and personal. A critical factor in pizza
huts success has been its unique dining experience. Crew members at pizza hut
strive each day to provide customer mania the kind of service that ensures that
every visit of the customer is a memorable one.

Pizza Features

Pizza hut has many unique features of their product due to which it attracts the
customers. The product is classified into non durable goods as it is a food item.
Dominos differentiates itself with its competitors with respect to their wide range of
offerings (menu items) one can find besides pizzas, range of pasta appetizers,
cakes, and desserts, etc. There are quite a lot number of menu items to choose.

43
Some of the items are:
Pizzas (four different types)

Pastas and salads

44
 Appetizers

Deserts

Beverages

Mass Customization

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

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

45
Conformance Quality:

Pizza huts product have a very high conformance quality i.e. All the products
produced are identical and meet the promised specifications.

Style:

Pizza is delivered in hot pans and served in style. The toppings in the pizza are also dressed
in a good fashion. Thus having food in style defines pizza hut experience.

Service differentiation:

Ordering ease:

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

Delivery:

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

46
Product mixes:

Width: The companys total width of the product mix includes pizzas, pastas,
appetizers, beverages and deserts.

Length: The total number of items available in the companys offerings is 28

These are pizzas available in the menu

Chicken n spicy Kadai Chicken
Chicken Supreme Classic

Exotica Favorite

Veggie Supreme Margherita

Teekha Paneer Makhani Simply Vegetarian

Country Feast Fiery Chicken

Chicken Tikka Makhani Veggie Crunch

Veggie Lovers Spicy Veggie

Paneer el rancho Veggie Crunch

Kadai Paneer Spicy Veggie

Chicken Hawaiian

The pastas and appetizers available are

Arrabbiata Garlic bread

Spicy tomato Cheese garlic bread

Creamy Mushroom Garlic bread spicy supreme

Spicy tomato with chicken Garlic bread exotica

Arrabbiata with smoked chicken

47
 The dessert available is choco lava cake.

The beverages available are not of pizza hut, they have coke sprite as their
beverages.

Thus the total length of the product is 28 which does not includes the beverages as
its not their product.

Depth:

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

Consistency:

The consistency of the product is the same as pizza hut operates only in the branded
food pizza industry.

Product line analysis:

The company has a basic platform of offering pizzas and have added on different modules to
meet the ever changing customer requirements. Thus the major chunk of profits comes from
pizzas and pastas. While beverages and deserts contribution towards profit is to a lesser
extent.

48
Product line:

Core Staples Specialties Convenience

Product Item

Pizza Pasta Desserts Beverages

& Appetizers

Eg: Pan, Eg: Eg: Truffle Eg: Pepsi,

Cheese Arrabbiata Cake Garlic
Pizza Bread

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

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

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

Co-branding:

Pizza hut has joint hands with visa for availing various offers. However this offer is only for
the in dining i.e. one cannot avail offers pertaining to visa for take away and home orders.

A visa credit card holder can avail offers like family meal for a lower cost and select other
combinations of items which would have not been possible otherwise.

Thus visa and pizza hut assist each other for branding themselves.

49
Packaging and labeling:

The packaging of pizza has been quite extraordinary in the sense that, it serves the
basic purpose of serving hot tasty pizza

In house dining:

In house dining, the pizzas are not packed, instead they are served in hot pans, and
plates are provided to the customers. The extra ingredients like oregano mix, chilli
flakes etc. Are kept in a bottle having pores. Thus the customer can easily pour the
ingredients in the pizza.

Take away orders:

They are put in a paper box neatly with pizza hut brand logo. Also there is a plastic
support given (its in the shape of tripod) at the bottom of the pizza to prevent it from
sticking at the bottom. A pizza hut logo is also given in the tripod. The extra
ingredients like oregano mix, chilli flakes etc. Are given in a paper pouch which is
also branded with the pizza hut logos.

Home delivery orders:

All the pizzas covered in the paper boxes described above are packaged into a
special delivery bags for retaining the heat. Thus we can observe that from every
labeling, packing the company tries to imbibe the brand of pizza hut in the minds of
consumer.

50
 PLACE

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

GLOBALLY LOCATIONS

The Globally Locations of the Pizza Hut in the world are

following;

51
Push and Pull strategies in channel marketing:

In a push strategy, the manufacturer uses his sales force, trade promotion, money or
other means to induce intermediaries to carry promote and sell its product to end
users.

In a pull strategy, the manufacturer uses advertising, promotion and other forms of
communication to persuade the customer to demand the product from
intermediaries, thus introducing the intermediaries to order it.

Dominos: pursuing a push strategy

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

Pizza hut: masters at pull strategy

Pizza hut follows more or less the opposite strategy. Pizza hut has mastered the art
of pull strategy. I pioneered the practice of advertising and promotion in the fast food
industry. Pizza hut achieved this remarkable feat by adopting a different marketing
strategy that involved increasing ambiences and amusement for the customers.

Direct and Indirect channels:

Direct channels:

The type of distribution channel used by pizza hut is the direct channel. The direct channel is
successful when there is an extremely large market that is geographically dispersed. The
direct channel is also useful when there are a large number of buyers, but a small amount
purchased by each.

52
Dominos

The Company was incorporated in March 1995. The first Dominos pizza store in
India was opened in January 1996, at New Delhi and today after fourteen years
Dominos Pizza India has grown into a countrywide network of over 274 outlets in 55
cities, in 20 states and union territories (as on 31 st August 2009). According to the
Indian Retail Report 2009, we are the largest pizza chain in India and fastest growing
multinational fast food chain between 2006 - 2007 and 2008 2009 in terms of
number of stores, which includes:-

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

Smila, Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie.

South Chennai, Bangalore, Hyderabad, Coimbatore, Mangalore, Cochin,

Secundabad, Manipal.
East Kolkata

West Mumbai, Pune, Ahmadabad, Goa

Pizza hut

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

Pizza hut uses three different methods of selling its products directly to the market.

53
The first method of distribution used by pizza hut is Home. Office delivery, customers
can call pizza hut ahead of time, place an order and the order is delivered to the
customers home.

Another method of distribution is for customers to dine-in. Customers can go to the

nearest pizza hut place an order and either leave with the order or eat at the
restaurant. One of Pizza Huts largest competitive advantages is its restaurant style
facility. Pizza hut offers a clean place to sit down and enjoy the variety of pizzas,
salads and appetizers in a fun, family atmosphere.

The third method of distribution is to order online. Selective County Customers can
now go on the Internet and place an order for Pizza. The method is useful because it
allows customer to view the entire menu, download any special coupons, and order
without having to disclose any credit card numbers.

Indirect channels:

Indirect channels consist of one or more intermediaries between the manufacturer

and the final customer. In india both Dominos and Pizza hut do not introduce any
indirect channel.

Company

Raw material from warehouse

Dealer

Consumer

54
PIZZA HUTS IN INDIA

Single and multiple channels:

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

Channel length:

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

55
 PRICING OF DOMINOS

Indians are value sensitive. The price was attributed to the high quality of
ingredients used. For instance, Dominos sourced its Pepperoni and Jalapeno needs
from Australia and Spain respectively. However with competition increasing from
Pizza Hut, Dominos introduced the Pizza Mania scheme where it offered a large
pizza for Rs 129/-. The demand was overwhelming and the company sold close to
5000 pizzas in the first week of its launch.

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

56
In India Dominos is trying to attract the middle class and lower middle class people
who are interested to spend their money on pizza but in low price. Those people are
eager to go for a outing in any festival and as a cheap family restaurant Dominos
would be most preferable. They do not need high class ambiences or amusement in
the shop so the establish cost is low for the dealers and the price of pizza is very
reasonable for the customer. Dominos do not have any fixed customer though they
are one of the main competitors of the Pizza hut.

The Dominos Pizza franchise constantly keeps on inventing ways through it can
make a greater impact on the fast food market. That is how the fast food franchise
came up with Fun Meal for Four offer. Through this method, the pizza franchise is
able to produce more variety in the food delivered to its customer at their door steps.

57
Through its Fun Meal for 4 pack for Dominos Pizza India offers for pizzas at the
rate of Rs 180/-. This means charge of one pizza will be just Rs 45/-. This has helped
the specialty food franchise to enhance the strength of its customer base. Mainly
offers are more attractive for Dominos, mainly student and middle class people are
the main customer and they targeted that customers.

PRICING OF PIZZA HUT

In the past, Pizza Hut has successfully used the high/low pricing strategy when
setting the retail price of its products. The high/low retail pricing strategy allows Pizza
Hut to charge a price that is above the competition, but also promote frequent sales
to lower the price below them. The high/low pricing strategy has several advantages.
First, the pricing strategy will help segment the market. Different group of customers
are willing to pay different prices for the same product. The high/low pricing strategy
will also creates excitement. Customers will able to try something new when they
purchase.

Finally, this strategy will emphasize product and service quality. Pizza Hut sets a high
initial price for its products to send a signal to customer that its products are quality
and the service is excellent.

58
As there are no such competitors of Pizza Hut which could compete with the quality
of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza Hut
is market skimming. Pizza Hut has adopted this pricing strategy as they want to
hold maximum share of the market by maximum profit. This is a golden era for Pizza
Hut, as there are no competitors and hence, Pizza Hut is free to charge any price
they want.

They are charging higher prices due to uniqueness of the product. They satisfy the
target market as the food quality is worth in price paid. The pricing strategy is not just
to get the worth of quality but also to gain minimum profits before any competitor
enters because then Pizza Hut will have to change its pricing strategy.

Although the prices would be lowered with the new entrants in the market but not to
a greater extent as the quality of food products are not home produced. They are
imported from different countries keeping in view the best quality.

First, the pricing strategy will help segment the market. Different groups of customer
are willing to pay different prices for the same product. The high/low pricing will also
create excitement.

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

59
60
 PROMOTION

DOMINOS

Promotion, which is known as marketing communication, isa amajor attribute for any
product or service. In modern marketing it is more than developing a good
accessible product or exact pricing.

Ever since it was established, Dominos Pizza India has maintained its position of
market leadership with its constant product innovation and maintainance of stringent
service standards. More importantly, it has established a reputation for being a home
delivery specialist capable of delivering its pizzas within 30 minutes to its community
of loyal customers from its entire chain of stores around the country. Customers can
order their pizzas by calling a single countrywide Happiness Hotline 1800-111-123. In
fact, Dominos was the first one to start this facility for its customers.

Dominos is committed for bringing fun and excitement to the lives of our customers
delivering delicious pizzas to their doorstep in 30 minutes or less, and all its
strategies are aimed to fulfilling this commitment towards its large and ever
growing customer base.

Communication Objectives
Category Need
Dominos Master Franchise Model

Industry analysts believe that Dominos master franchise model was one of the
reasons for its success in international market even in light of the global economic
slowdown in 2008.

61
How Dominos international bucked the trend

The strong performance of Dominos international franchises in the midst of the

global economic slowdown was a widely debated topic among analysts. While some
analysts believed that the recession has helped the growth of these chains due to
the trading down factor of people preferred to eat at home rather than dine out at
expensive restaurants, others believed it was a combination of aggressive marketing
and the franchise model that had helped the companybuck the trend.

Brand Awareness

Promotion and advertisement campaigns

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

The 30 minutes promise

In the year 1973, Dominos began a guarantee scheme that its pizza would be
delivered in 30 minutes or less of ordering failing which the customer would receive
the pizza free.

Brand Attitude

Use of technology

Online sales accounted for over 70 percent of its total sales in 2008. Dominos
planned to further exploit the increasing potential of the online medium as one of the
promotional and distributional channels in the downturn.

62
Brand purchase intention

What makes dominos pizza better than its competitors

Variety of Pizzas

Services offered

Quality of pizzas

Location of the Outlet

Waiting time in the outlet

Door step services

Low pricing

Developing effective communication

Target to age group/class

Dominos target audience is a consumer who belongs to age group of 14 to 35 years

from the Economic Class A or B preferably one who has been exposed to the
western culture as well as western style of eating. They are people who are upwardly
mobile and dont mind to pay for convenience. In this category teenagers are the
most affected by western culture and its eating habits. The age group has been
restricted to the range of 14 to 35 years as this age group accounts for about 70% of
the total sales volume of pizzas in India.

63
As far as the socio economic class is concerned, since Dominos pizza are priced
from about Rs.80 onwards. However Dominos have now come now with pizzas
ranging from Rs. 39 onwards to target the ever - increasing middle class consumers.

Dominos has also segmented the market geographically by deciding to initially cater
to only the metropolitan cities and urban areas. They have left out the rural areas
due to the low level of awareness regarding western dishes as well as typical Indian
patter of eating.

30 minutes campaign

This is a campaign in which Dominos offers its customers free Pizzas if they are not
delivered in 30 minutes from the time of order.

They have a store in a radius of 3 kms in metropolitan cities. Anything which is far
away from3 kms doesnt fall in this category.

Dominos latest special offer promises a hot and piping pizza delivered on door
under 30 minutes, or its free. But 30 minutes is a very short time for a typical
Dominos Pizza local delivery, the cities where traffic congestion is a natural way of
life.

Can a Dominos pizza local delivery survive the daily traffic jams? Is the question to
be asked.

Design the communication: Message strategy

Offers by dominos

With every order of pizza and coke/Garlic bread sticks great a dominos pasta for Rs. 39
instead of Rs. 69.

Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/- and non veg Rs 79/-

64
Get garlic bread only for only for Rs 30/- with any of the pizza mania combinations.

Dominos start providing coke/fanta/sprite.

Dominos started pizza mania which starts from Rs 35 and we get the topping according to
our choice.
Web coupons available at web site www.dominos.co.in

Discount coupons are being provided with every item purchased.

New schemes at regular interval of time according to the taste of the Indian customer.

Creative strategy

Latest in dominos

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

Dominos has also come up with pasta mania.

Communication mix

Every company must follow the eight major marketing communication modes.

For Dominos direct selling and interactive selling is not needed though they are
involved in internet and cable TV promotions. Dominos always search for ways to
get efficiency by replacing one communication with others. The sustainability among
communication tools explains why marketing function need to be coordinated.

Advertising

65
It reaches geographically dispersed buyers. Dominos vision is focused on
Exceptional people on a mission to be the best pizza delivery company in the
world!. Dominos is committed to bringing fun and excitement to the lives of our
customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and
all its strategies are aimed at fulfilling this commitment towards it large and ever
growing customer base. Its all advertisement are image of core competencies. Their
taglines The Pizza Delivery Experts and Hungry Kya? are showing their focusing
area in promotion.

Events/Experiences

They are sponsoring some college fest, cultural program and promotion events
throughout the country for promotion.

Public Relation

Dominos constantly strives to develop products that suit the tastes of its customers,
thereby bringing the Wow effect (the feel good factor). Dominos believes strongly in
the strategy of Think local and act regional. Thus, time and again Dominos has

66
been innovating toppings suitable for the taste buds of the local populance and the
Indian market has very well accepted these.

Personal Selling

Dominos constantly strive to make the company an integral part of the lives of the
target audiences by getting involved with the clientele at the emotional level and
building long-term relationship with them. Thus, Dominos concentrate more on
carrying out below-the-line activities in the area it serves.

Sales Promotion

a) In India, Dominos has been associated with the NGOs devoted to the cause
of under privileged childrens. Dominos conduct Store Education Tour (SET) for the
under privileged children time-to-time.

b) Dominos Pizza India also boasts about its commitment to serve its customers
on time by implementing the 30 MINUTES OR FREE service commitment.

c) They are continuously offering new incentives to the customers .

Word of mouth

67
This tool is very powerful for promotion in the fast food industry. Low price and good
behavior gave them the edge in India.

PIZZA HUT

Promotional Strategy:

Promotion is a form of cor porate communication that uses various methodsto reach
a targeted audience with a certain message in order to achieve specific
organizational objactives. Nearly all organizations, whether for profit or not for profit.
In all types of industries, engage in some form of promotion.

Efforts may range from multinational firms spending large sums on securing high
profile celebreties to serve as corporate spokespersons to the owner of a one person
enterprisepassing out business cards at a localbusiness persons meeting.
Consequently, promotion decisions should be made with an appreciation for how it
affects other areas of the company.

Communication Objectives

Category need

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

68
Pizza Hut uses many promotional strategies. The main promotion is a coupon to
purchase. This promotion is also distributed mainly by mail, but also by fliers on
college campuses around the country in order to reach the target market.

A critical factor in Pizza Huts success has been its unique dining experience. Crew
members at Pizza Hut strive each day to provide customer mania the kind of
service that ensures that every visit of the customer is the memorable one.

Brand Awareness

Pizza Hut was among the first multinational brands to enter the food retail
sector in India. When the first Pizza Hut restaurant opened in Bangalore the
quick service industry was at a nascent stage and the pizza category was
dominated by a sole regional player who had a marginal presence.

The strength of Pizza Huts success globally lies in a marketing strategy that
builds connections with customers everyday in different parts of the world.
Many customer service initiatives has been uniquely developed for India and
has been greatly instrumental in building an emotional bond with the
customer.

The crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi

and Mumbai and do the Bhangra in Chandigarh and Amritsar. While a bell
hangs at each Pizza Hut restaurant, which is rung by customers who as they
leave wish to thank the serves for yet another memorable unit.

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

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Brand Attitude

International brand with an Indian heart

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

Offering more than the international menu

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

Brand purchase intention

Why Pizza hut is preferred than other

Variety of Pizza

Good ambience

Services offered

Quality if Pizzas

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 Location of the Outlet

Waiting time in the outlet

Communication mix

Advertising

Pizza Huts communication has also always struck a chord with the Indian customer. Its very
first television commercial in India featured a boy and girl, who meet at a Pizza Hut
restaurant in a traditional arranged marriage concept. They lose their inhibitions when the
pizza arrives. When the sequel went on air featuring the same couple, now married, with the
girls father consoling her over a pizza as her bridegroom waits outside the restaurant to
escort her after their wedding the customers involvement was so complete that several
wrote in to inquire whether the couple has children.

The most recent campaign that was launched with the introduction to the Tandoori pizzas
featured a typical Indian wedding procession abandoning the bridegroom when enticed by
delicious aromas from a Pizza Hut restaurant. While the famous Good times start with great
pizzas slogan has been prominent in the communication, the focus has remained on the
best and most distinct pizzas.

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Sales Promotion

Pizza hut laid more emphasis on its restaurant dining experience. Pizza hut localizes it
menu to capture local Indian Market. In 2000 Pizza Hut launched its innovative Pizza Pooch
menu and Pizza Pooch Birthday Party package exclusively for kids in the 6-10 age groups. It
positioned itself as family restaurant as also concentrated on wooing kids.

Public Relations

In India, eating out is perceived as a form of entertainment. Which is why Pizza Hut serves
not only serve our customers great food, they also sing and dance for them. And many of
Pizza Huts customers would, we are certain, love to participate in this process. Giving them
an opportunity to showcase their talent in the Jig and Jeeto contest.

Events and Experiences

Pizza hut use their events to reach to the customer and often it is used as a brand building
as well as product selling.

Direct and Interactive Promotion

Pizza Hut provides many services online as Birthday reminder service here people can
save the birthday date of their friends, relatives, and pizza hut will remind you the birthday
date and birthday parties discount.

Customers can book online E-coupon and discount offer available to online customers Hot
Line Number pizza hut hot line number also provide at online which is 39883988. Even
customer can do online order of pizzas.

Personal Selling

Pizza hut tries to attract the younger generation as their main market segment but they
mainly target high and higher middle class customer. They actually bother about customers
enjoyment and food not the price. Thus Pizza Hut concentrates more on carrying out above-
the-line activities in the area it serves.

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Word of mouth

It is one of the traditional promotion for any industry. Pizza hut also get benefit from it.

MARKET FEEDBACK & CONTROL MECHANISMS

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

Questions pertaining to the 4pswere asked some of the questions are as follows:

1) Do you have pizza?

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2) How frequently do you like to have a pizza, Where do you like to have your pizza?

3) What is the frequency of each?

4) If yearly or rarely what are the reasons?

5) If you think of pizza which brand of pizza are you thinking of? Why? (Product recall
and Brand recognition)

6) Which pizza do you prefer dominos/ pizza hut/ and any other and for what reasons?

7) Who are the principle decision makers in the buying process?

8) What is the 1st thing that comes into your mind when you hear about Dominos?

9) What are expected benefits apart from food like enjoyment service offers?

10) Suggestions if any

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

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

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

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

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 OBJECTIVES

1. To Study of Market strategy Pizza Hut & Dominos Pizza.

2. To study of Comparative Analysis of Pizza Hut & Dominos.

3. To study the taste and preferences of the consumer.

4. To study the Advertising Strategy of Pizza Hut & Dominos.

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 RESEARCH METHODOLOGY

Research methodology is a way, through which we can find the solution

or solve the research problem. In other words, research methodology is
understood as the science of studying how research is done
scientifically. The trends have been analyzed by using the statistical
techniques as ratio, percentages, averages.
Type of data
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 quantitative data, provides
larger and higher-quality databases that would be unfeasible for any
individual researcher to collect on their own.

Secondary data was collected through close observation, company

manuals, Journals, Magazines, Documents and Websites.

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

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

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

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3) Frequency of having pizza

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

4) Preferred Brand of Pizza

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

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5) What is the brand recall of Pizza Hut

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

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 6) What is the brand recall of Dominos

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

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 CONCLUSIONS
Keeping up the sentiments of Indian customers and
s e r v i c e s offered by Pizza-houses and Keeping our study
focused on some of the key areas of sensitivity of customers
preferences (analysis of factors which affects the preferences).
We come to a conclusion that : -
Pizza hut is preferred( ) over dominos in terms of

Varity of Pizzas

Good ambience

Services offered

Quality of pizzas

Location of the Outlet

Waiting time in the outlet

Dominos is being preferred over pizza-hut interims of:

Door step services

Low pricing

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So we can say that due to these qualities Pizza-hut
d o m i n a t e s Dominos pizza In different areas and capture the market
share and gain rapidly.

RECOMMENDATIONS
For Dominos

Increase varieties in Pizzas.

Focus on location of the outlets.
Increase the quality of Pizzas
Make good ambiance in outlets
Should focus more on market zing itself confidently.

For Pizza-Hut

T r y t o a t t r a c t m o r e n u m b e r o f L a d i e s customers.

Should focus on Low price customers.

Make the door step services better

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 SUGGESTIONS
Dominos
The dining conditions have to be changed drastically if Dominos have to
target the premium segment of customers.

They are way behind Pizza Hut in the dining experience. Some of the
Dominos restaurants lack even basic amenities.

Due to this a condition can occur where customers judge the quality and the
taste of the pizza with respect to the restaurant environment and ambience.

Thus to have a greater market share and tap premium segment of the market,
Dominos provide good quality restaurants.

There should also be provision for music, TVs, kids zone etc in the
restaurant.

By doing this they can even charge a little bit more on the food items.

Pizza Hut
Reduce the menu costs it is way too expensive for a middle class Indian.

Middle class forms the maximum population of India and reducing the costs of
pizza can increase elasticity of demand greatly.
Invariably there are no discounts, or discounts if offered are very less. Thus
Pizza Hut should offer more discounts to tap more customers.

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

BIBLIOGRAPHY
1. www.google.com

2. www.pizzahut.com

3. www.dominos pizza.com

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 Questionnaire

Name: Gender: M / F

E-mail ID: Mobile No. :

Age Group: a) Below 18 b)18-28 c)28-40 d)Above

40

Occupation: a) Student b)Business c)Service d)Housewife e) Any other :

1. How often do you visit Pizza Hut ?

(i) Weekly (ii) Monthly (iii) Occasionally

2. Specify your satisfaction with Pizza Hut according to the following?

Parameter Excellent Good Average Poor

Quality
Price
Store
Ambiance
Service

3. Through which media you are getting information about Pizza Hut?

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 (i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Others (specify)

4. Compare Pizza Hut with the following food chains and rate them on a scale of 10.

Name Quality Store Service Ambiance

Pizza Hut
Dominos
Pizza Corner
Nirulas
Smoking Joes
U.S Pizza

5. Would you try a new food item launched Pizza Hut :

(e.g Conniza , Freshizza )

(i) YES (ii) NO

6. In your view what suggestions you have for Pizza Hut?

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