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 at rs.3600 million which is about one-fourth of total
investment made in this sector. Because of the availability of raw material for fast food,
global chains are flooding into the country. The percentage share held by foodservice of total
consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001.
Eating at home remains very much ingrained in Indian culture and changes in eating habits
are very slow moving with barriers to eating out entrenched in certain sectors of Indian
society. The growth in nuclear families, particularly in urban India, exposure to global media
and western cuisine and an increasing number of women joining the workforce have had an
impact on eating out trends.

Major players in fast food are:

McDonalds

KFC

Pizza hut

Dominos pizza

Caf coffee day

Barista

Subway

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

*Extract taken from a study of Indian retail food sector





MARKET SHAR E AND M AJOR PLAYERS



The organized pizza market in India is worth Rs.600 Crore. T he major players in t e market are
pizza hut and dominos whose market share are around 45% and 35% respectively.

Other players from the rest 20 %


Branded Pizza Market Share



Others
Pizza Hut
Pizza hut
Dominos
Dominos
Others






Other players mainly are

Smokinjoe s

Garcias

Papa john s

Us pizza

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






















Trends in the Indian market

Marketing to children

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

Low level customer commitment

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

Attracting different segments of the market

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

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

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










Brief history of the company, Indian operations (dominos)

The dominos brand was founded in the united states of America in 1960 by Thomas and
James Monaghan. Since then, that business has grown into a global network of over 8,500
pizza stores in more than 60 countries, involving over 2,000 franchises. Over its 49-year
history, dominos has developed a simple business model focused on delivering 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.

Domino's pizza India ltd. was incorporated in March 1995 as the master franchisee for India
and Nepal, of domino's pizza international inc., of U.S.A. Moreover, the company holds the
master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary.
Mr.Shyam.S.Bhatia and Mr.Hari.S.Bhartia 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 the India retail report 2009,dominos are the
largest pizza chain in India and the fastest growing multinational fast food chain between
2006-2007 and 2008-2009 in terms of number of stores.

Domino's vision is focused on " exceptional people on a mission to be the best pizza delivery
company in the world! ". Domino's is committed to bringing fun, happiness and convenience
to the lives of our consumers by delivering delicious pizzas to their doorstep in 30 minutes or
less, and its efforts are aimed at fulfilling this commitment towards its large and ever-
growing customer base.

Domino's pizza constantly strives to develop products that suit the tastes of its consumers and
hence delighting them. Domino's believes strongly in the strategy of 'think global and act
local. Thus, time and again domino's pizza has been innovating with delicious new products

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

The brand positioning of khushiy on 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 dancarney 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 years later,
pizza hut was serving one million customers a week in their 310 locations. In 1970, pizza hut
was put on the New York stock exchange under the ticker symbol pizza.

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

Pizza hut is one of the flagship brands of yum! Brands, inc., which also has kfc, taco bell,
a&w and long john silvers under its umbrella. Pizza hut is the worlds largest pizza chain
with over 12,500 restaurants across 91 countries

In India, pizza hut has 137 restaurants across 36 cities, including delhi, mumbai, bangalore,
chennai, kolkata, hyderabad, pune, and chandigarh amongst others. Yum! Is in the process of
opening pizza hut restaurants at many more locations to service a larger customer base across
the country

Pizza hut vision and mission

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


Pizza hut is committed 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. Crewmembers at pizza
hut strive each day to provide customer mania the kind of service that ensures that every
visit of the customer is a memorable one.

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 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.

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





























CORE COMPETENCIES
That which makes them different!

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 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!!!

Through the looking glass

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 pastas that is truly italian is now at every pizza hut
outlet. With changing tastes of Indians and greater acceptance of international cuisines, pizza
hut has introduced 30 new items on its menu for this festival season. 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 busy bees.

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

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







Dominos


Pizzas topped with cheese and happiness, dominos is committed to put a n extra smile on its
customers faces, with a mission of exceptional people on a mission t o be the be st pizza
deliver y company in the world!




Tracing footsteps many pizza lovers would still remember the havoc that occurred in mid
April 2009 in which some dull witted dominos employees posted a kitchen video of dominos
that clearly showed the lack of sanitation in their kitchen in YouTube. The video attracted
millions of views in a few hours and was indeed viral. Dominos did an excellent job of crisis
management and used social media to spread a viral video in which the company president
took control of the situation and apologized to the public, announced separation of the
company from wrong doers and their prosecution. He also guaranteed that such issues will
not happen again. Dominos clearly proved that communication meant engagement,
transparency and responsiveness to the interaction with customers.

Through the looking glass


It has never been difficult for dominos to find out novel ways to enthrall its customers.
Delicacies that do not rip wallets have always got the crowd coming back to the dominos
although its ambience is not up to that of its competitors. Home delivery, where the order
gets delivered in les s than 30 minutes. Al l other activities, be it new variants, great service ,
timely deliveries or more for the same price the effort of dominos has always been directed
towards making its customers happy.

ACCESS TO CRUCIAL RESOURCES
The players behind the scene

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 values include customer focus, trust in people, recognition, accountability,
excellence, positive energy and team work. The customer focus is so high that they have
separate systems in place to satisfy vegetarian customers. Vegetarian dishes are prepared and
served using separate green spatulas.

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

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

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

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


Dominos


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

Dominos has always been noted for the new items that spring up often in their menu.
Marketing department does a careful analysis of growing demands and changing tastes and
puts together the new menu that tantalizes palates, says marketing head, mr. Harneeth singh.




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

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























































SWOT ANALYSIS



Pizza hut

































































Dominos
































































ananalysis of the competitors of pizza hut and dominos


















Weakness Strength

Subway Still adapting to Indian taste Kings of sandwich markets

Expensive Customized preparations

Pizza corner Low investments in ad Variety

Delivery not satisfactory Quality

Kfc More of chicken, less scope Variety masters for chicken
for veggies

Mcdonalds Less variety Burger leaders

Fast service

More offers

Papa johns Expensive Excellent quality

Variety

Ccd Concentrate more on Quality
beverages, less options on
snacks

Expensive Variety in beverages

Barista Concentrate more on Excellent ambience
beverages, less options on
snacks

Expensive Variety in beverages


Quality

CONTEXT
Pizza hut

Adapting to economic environment

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

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

Embracing technology

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

Across socio-cultural barriers

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






















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 globalization. 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 restaurants. 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 hut loyal. With their virtual store
kind website, pizza hut offers customers a wide range of options to choose from menu and avail new
offers. Now orders can also be placed through mobile phones. High end technologies are used at the
cash counters.

Across socio cultural barriers

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




























SEGMENTATION
Pizza hut

Geographic

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

City they also segment the cities as class i, class ii, metros, small towns.
Demographic

age under 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years, 40+ years.
family income middle class, upper middle class, high class

dual income earners yes/no
Psychographic

socio-economic class urban
Behavioral

occasions birthdays, corporate lunches, marriages, parties, receptions
loyalty status low, medium, high

user status first time, regular, non-user



Dominos

Geographic

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

City they also segment the cities as class i, class ii, metros, small towns.
Demographic

age under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50+ years.
family income lower middle class, middle class, upper middle class, high class

Psychographic

socio-economic class urban
Behavioral

loyalty status low, medium, high

user status first time, regular, non-user



TARGETING



Pizza hut

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

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

In psychographic segmentation they targeted a1, a2, b1 socio-economic classes.

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



Dominos


In geographic segment they targeted countries where there were no dominos outlets.
Initially opened in class ii cities and then have now moved to class i, metros and smaller
towns.

In demographic segment their main target is the teenagers and college students (13 to
21years), young adults ranging from 21 years to 35 years. They aim basically at the
middle class, upper middle class income families.

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

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














POSITIONING
Points of difference

The major point of difference between pizza hut and dominos is that pizza hut concentrates
on in-restaurant dining. The ambience and decor of all pizza hut outlets are good and the
outlets are spacious. When customers think of party and decide to have pizza, pizza hut only
comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business
meetings in their outlets. Pizza hut has customized birthday party invites with different
themes for the customers to choose and use it as invitations. Dominos aims at fast home
delivery of pizza. Whenever customers want to have pizza at home, they think of calling
dominos and ordering for it because they are experts in home delivery of pizza. we earn
60% of our revenue from home delivery of pizzas and 40% from the restaurant sales , says
mr.navamani, manager of dominos, coimbatore v.o.c. Park outlet. In case of pizza hut, the
major revenue is from restaurant sales.

Points of parity

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

Competitive points of parity competitive points of parity in case of pizza hut is that, even
though pizza hut is costlier than dominos, they have their own customers, who do not bother
about spending, but look for quality and personalized service. When we visit pizza hut, they
have restaurant hostess who will assign us tables and introduce the steward who will be
taking care of us. This is generally a procedure that is followed in five star category hotels
and pizza hut is also following it to emphasize on service quality. In case of dominos, they
are not costly as pizza hut and do not offer great ambience to customers, but offer good
pizzas at nominal price. They concentrate on turnover of covers and cater to customers who
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.





PLACE



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

Push and pull strategies in channel marketing:


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



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

1) 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
customers instead off advertising and promotion. As a result, dominos regularly
introduces sell-in schemes (promotional schemes for dealers), promotional coupon,
festival offers etc.

2) Pizza hut: masters at pull strategy


Pizza hut follows more or lesss the opposite strategy. Pizza hut has mastered the art of
pull strategy. It pioneered the practice of advertising and promotion in the fast food
industry. Pizza hut achieved this remarkable feat by adopting a different marketing
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.

Dominos

The Company was incorporated in March 1995. The First Domino's Pizza store in India
was opened in January 1996,at New Delhi and today after fourteen years Domino's Pizza
India has grown into a countrywide network of over 274 outlets in 55 cities, in 20 states and
union territories (as on 31st August 2009) . According to the India Retail Report 2009, we
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, which includes:-

North - Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar, Dehradun, Shimla,
Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie.

South - Chennai, Bangalore, Hyderabad, Coimbatore, Mangalore, Cochin, Secundrabad,
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.
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 customer's 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 Hut's 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 sandwiches 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. This method is useful because it
allows customers 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















PRODUCT
DIFFERENTIATION

Worldwide and in India, pizza hut has come to become synonymous with the
best pizzas under one roof. This is because at pizza hut the belief is that every
pizza has its own magic, thus making it a destination product which everyone
seeks. It is this belief that has ignited the passion to create, innovate and serve
the finest product the industry has to offer, while Setting standards for others to
strive to replicate. Pizza hut is committed to providing uncompromising product
quality, offering customers the highest value for money and giving service that
is warm, friendly and personal. A critical factor in pizza huts success has
beenits unique dining experience. Crewmembers at pizza hut strive each day to
provide customer mania the kind of service that ensures that every visit of
the customer is a memorable one
.
Pizza features
Pizza hut has many unique features of their product due to which it attracts the
customers.
The product is classified into non durable goods as it is a food item pizza hut
differentiates
itself with its competitors with respect to their wide range of offerings (menu
items) one can
find besides pizzas range of, pastas appetizers, cakes, and desserts etc. There are
quite a lot
number of menu items to choose

Conformance quality:
Pizza huts products have very high conformance quality i.e. All the products
produced are
identical and meet the promised specifications
Style:
pizza is delivered in hot pans and served in style. The toppings in the pizzas are
also dressed
in a good fashion. Thus having food in style defines pizza huts 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.


PROMOTION







DOMINOS

Promotion, which is known as marketing communication, is a major 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 maintenance of stringent service
standards. More importantly, it has established a reputation for being a home delivery
specialist capable of delivering its pizzas within 30 minutes to its community of loyal
customers from its entire chain of stores around the country. Customers can order their pizzas
by calling a single countrywide Happiness Hotline 1800-111-123. In fact, Domino's was the
first one to start this facility for its customers.

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



Communication objectives

Brand awareness

Promotional and advertisement campaigns

The pizza delivery business had traditionally been promotion driven. Coupons and discounts
were offered by all pizza delivery chains to woo customers. Since its inception, Dominos
had 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, Domino's began a guarantee scheme that its pizzas would be delivered in 30
minutes or less of ordering failing which the customer would receive the pizza free.

Brand attitude

Use of technology

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

Brand purchase intention

What makes dominos pizza better than its competitors

Varity 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 and preferably one who has been exposed to the western culture as
well as the western style of eating. They are people who are upwardly mobile and 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.

Domino's latest special offer promises a hot and piping pizza delivered on door under 30
minutes, or it's free. But 30 minutes is a very short time for a typical Dominos Pizza local
delivery, but it's the latest special offer from Dominos in an effort to outdo the competition.
Still, there are some cities where it must be really tough to make a Dominos Pizza local
delivery, the cities where traffic congestion is a natural way of life.

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





Advertising

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

Public Relation

Domino's constantly strives to develop products that suit the tastes of its customers, thereby
bringing out the Wow effect (the feel good factor). Domino's believes strongly in the
strategy of 'Think local and act regional'. Thus, time
and again Domino's has been innovating toppings suitable to the taste buds of the local
populace and the Indian market has very well accepted these.



PIZZA HUT

Promotional Strategy:

Promotion is a form of corporate communication that uses
various methods to reach a targeted audience with a certain
Message in order to achieve specific organizational objectives.
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
celebrities to serve as corporate spokespersons to the owner of a one-person enterprise
passing out business cards at a local businesspersons meeting. Consequently, promotion
decisions should be made with an appreciation for how it affects other areas of the company.



Communication objectives

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 have been uniquely developed for India and have been greatly
instrumental in building an emotional bond with the customer.

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

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

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

Brand purchase intention

Why Pizza-hut is preferred than other

Varity of Pizzas

Good ambience

Services offered

Quality of pizzas

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 had children.
The more recent campaign that was launched with the introduction of 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.


Sales promotion

Pizza Hut laid more emphasis on its restaurant dining experience.
Pizza Hut localizes it menu to capture local Indian Market.

In 2000 Pizza Hut launched its innovative Pizza Pooch menu and Pizza Pooch Birthday Party
package exclusively for kids in the 6-10 age groups.
It positioned itself as family restaurant and also concentrated on wooing kids.


Public relations

In India, eating out is perceived as a form of entertainment. Which is why Pizza Hut servers
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 n Jeeto contest.

Events and experiences

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

Direct and interactive promotion

Pizza hut provide many services online such 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.
Customer 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 huts try 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 huts concentrate more on carrying out above-
the-line activities in the area it serves.







PRICING OF DOMINOS

Indians are value-sensitive, not price-sensitive. The price was attributed to the high quality
of ingredients used. For instance, Dominos sourced its Peperoni and Jalapeno needs from
Australia and Spain respectively. However, with competition increasing from Pizza Hut,
Dominos introduced price cuts, discounts and freebies to attract the customers. In 1998,
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, both
Dominos and Pizza Hut were concentrating more on data base marketing and below-the-line
activities and special offers


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 establishment 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 which it can make
a greater impact on the fast food market. That is how the fast food franchise came up with
'Fun Meal for Four' offer. Through this method, the pizza franchise is able to produce
more variety in the food delivered to its customers at their door steps. Through its 'Fun
Meal for 4 pack the Dominos Pizza India offers four pizzas at the rate of Rs 180. This
means charge of one pizza will be just Rs 45. This has helped the speciality food franchise to
enhance the strength of its customer base. Mainly offers are more attractive for the 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, this pricing strategy will
help segment the market. Different groups of customers are willing to pay different prices for
the same product. The high/low pricing strategy will also creates excitement. Customers will
be able to try something new when they purchase

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

As there are no such competitors of Pizza Hut which could compete with the quality of pizza

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

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

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

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







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






MARKETING STRATEGIES


Overall both the companies achieve what they want to as for Dominos they have achieved in
positioning themselves as the fastest serving pizza outlet and quenching the hunger.

Pizza Hut has come to become synonymous with the best pizzas under one roof. They have
positioned themselves for their unique dining experience

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



Strategic Formulation

Overall Cost Leadership, Differentiation and Focus

This is achieved very effectively by Dominos as they do not intend to lose their focus from
delivering pizzas at home

Dominos Brand thus relates mainly to service & delivery neither they promote their in
dining experience nor they spend revenue for it.

Domino's vision is focused on Exceptional people on a mission to be the best pizza
delivery company in the world!

Thus Dominos are able to provide good pizzas at relatively lower rate as they 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.







Creation, Communication and Capturing Value

Dominos

Domino's Pizza constantly strives to develop products that suit the tastes of its consumers and
hence delighting them. Domino's believes strongly in the strategy of 'Think global and act
local. Thus, time and again Domino's Pizza has been innovating with delicious new products
such as crusts, toppings and flavors suitable to the taste buds of Indian Consumers. Further,
providing value for money at affordable products to the consumers has been Dominos motto.
Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers.

The Brand Positioning of Khushiyon ki Home Delivery (Happiness Home delivered) is the
emotional benefit Dominos offer to consumers.

Delicacies that do not rip wallets have always got the crowd coming back to the Dominos
although its ambience is not up to that of its competitors. They have the maximum offers with
respect to the discounts they offer throughout the year. Thus the customer has the maximum
incentive to come back to Dominos.

Hungry Kya?, promotion where hunger gets quelled in less than 30 minutes was a great
value proposition . All other activities, be it new variants, great service, timely deliveries or
more for the same price the effort of Dominos has always been directed towards making its
customers happy, creating, communicating and delivering value.



Pizza Hut

Workforce of Pizza Hut is chosen with the motto Together we grow with primary concern
being quality of service, be it in terms of delivery or quality of pizzas.

A critical factor in Pizza 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. The company attains the maximum
profit in the meat items, so they give the selection of pizzas slices of different varieties and
they are clubbed together to form a single pizza.

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



Sustaining, building relationships and Exploiting Changing Conditions

Over the years Pizza Hut has also developed and successfully introduced a range of products
especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, picy
Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also
given Pizza Hut acompetitive edge is that in addition to an extensive range of internationally
renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the
menu offers the option of a complete meal. It includes appetizers, a Salad Bar - where the
customers can make their own fresh salads, a range of soups, pastas and desserts etc.

Pizza Hut also has a community called as VIP- Members joining this club is at no extra cost
one can avail greater offers.

Meanwhile Dominos are not behind Pizza Hut in introducing local delicacies they have
different menu in different cities in India.

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 flavours suitable to the taste buds of Indian Consumers. Further, providing
value for money at affordable products to the consumers has been Dominos motto. Also sizes
of the pizzas are relatively large as compared to that of Pizza Hut.

The discount offers at Dominos are the main incentive to build long term relationship.
Dominos also courier discount coupons at consumers home. This serve as an incentive for the
customers to visit Dominos time and again



Rating of the Marketing Strategy

Both the companies are good in achieving their goal and are equally good in
achieving what they intend to

Tastes of pizzas of both the companies are good equally in their own sense

Marketing strategy of Pizza Hut is better than Dominos because they offer customers
a holistic approach.

Pizza hut markets their product not only as a food but as an experience which is worth
enjoying. People tend to remember experiences more than the food.



Thus, overall Pizza Huts marketing strategy has and edge over Dominos.






























SUGGESTIONS
Dominos

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

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

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

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

There should also be provision for music, 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 hence reducing the costs of
pizza can increase the elasticity of demand greatly

Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut
should offer more discounts to tap more customers

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
























BIBILIOGRPHY


, www.dominos.co.in

, www.pizzahut.co.in

, www.exchange4media.com

Journal : Economic Reforms India, 1992

WWW, WIKIPEDIA.COM
www.differencebetween.com

franchises.about.com