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Marketing management - I

The brand strategy analysis exercise

In-depth comparative analysis of marketing strategies followed by

&

GROUP ASSIGNMENT SUBMITTED BY-

ANITHA KAVERI – 09009

C.SUBBU – 09029

KARTHIK KRISHNAN – 09049

POOJA NAIR – 09069

SANKAR RAJAN – 09091

SUMAN GHOSH – 09111

AMRITA SCHOOL OF BUSINESS, ETTIMADAI.

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Contents  

INTRODUCTION ....................................................................................................................................... 3 

REASONS FOR EMERGENCE .................................................................................................................... 4 

MARKET SHARE AND MAJOR PLAYERS ................................................................................................... 5 

MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY ............................................................. 6 

CUSTOMERS .......................................................................................................................................... 12 

CORE COMPETENCIES ........................................................................................................................... 13 

ACCESS TO CRUCIAL RESOURCES .......................................................................................................... 15 

SWOT ANALYSIS .................................................................................................................................... 17 

COMPETITORS ....................................................................................................................................... 19 

CONTEXT ............................................................................................................................................... 21 

SEGMENTATION .................................................................................................................................... 23 

TARGETING............................................................................................................................................ 24 

POSITIONING ......................................................................................................................................... 25 

PRODUCT .............................................................................................................................................. 26 

PLACE .................................................................................................................................................... 40 

PRICING OF DOMINO’S ......................................................................................................................... 44 

PRICING OF PIZZA HUT .......................................................................................................................... 46 

PROMOTION ......................................................................................................................................... 48 

MARKET FEEDBACK & CONTROL MECHANISMS ................................................................................... 59 

ANALYSIS AND INTERPRETATION .......................................................................................................... 67 

MARKETING STRATEGIES ...................................................................................................................... 71 

SUGGESTIONS ....................................................................................................................................... 75 

REFERENCES .......................................................................................................................................... 76 

 

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INTRODUCTION

Fast food is one of the world’s largest growing food types. India’s 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

• Café coffee day

• Barista

• Subway

The main reason behind the success of the multinational chains is their expertise in product

development, sourcing practices, quality standards, service levels and standardized operating

procedures in their restaurants, a strength that they have developed over years of experience

around the world. 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.

*Extract taken from a study of Indian retail food sector

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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 these can be prepared

easily.

Customer sophistication and confidence:

Consumers are becoming more sophisticated now. 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 eat and easy to serve’ 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 either people work or want to enjoy with their

family.

Double income group:

Emergence of double income group leads to increase in disposable income. Now people have

more disposable income so they can spend easily in fast food and other activities.

Large population:

India being a second largest country in terms of population possesses large potential market

for all the products/services. This results into entry of large number of fast food players in the

country. Relaxation in rules and regulations, with the economic liberalization of 1991, most

of the tariff and non tariff barriers from the Indian boundaries are either removed or

minimized. This helped significantly the MNC’s to enter in the country.

*Extract taken from economic reforms in India

 

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Industry Competitiors

New Entrants

Buying Power

Substitutes

Supplier Power

MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY

Industry competition

In tier I city like Mumbai, pizza hut and dominos are facing a stiff competition from these

providers (with respect to branded pizzas)

• Pizza corner

• Smokin joe’s

• Us pizza

• Garcia’s

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

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Threat of new entrants

With the economic reforms and liberalization, many new entrants also want the revenue of

the 200 billion Indian fast food industry.

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

• Papa john’s pizza

• Us pizza

They have captured a lot of customers with their new style and discount offers. Much young

crowd flock their restaurants and their taste buds are getting modified. Now the new entrants

are also likely to enter the tier ii cities and make their presence. Thus pizza hut and dominos

have to rethink their strategies so as to retain their customers. They have to constantly

differentiate their services from the newer entrants

Substitutes

There are lots of substitutes which are available to choose with respect to the fast food

industry some of them are

• Any restaurant

• Mcdonald’s

• Barista

• Cafe coffee day

• Chinese restaurants ( mainland china)

Largely it depends upon the customers what they want to have. Generally it is assumed

that when people dine outside, they think of having pizza at least 25% of time*. Thus if

the brand recall of a particular company is good, more people will tend to go there.

Higher the quality of food, service, higher will be product recall and sales

* This information is obtained from the primary data

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Buyer’s bargaining power

Pizza hut and dominos have higher market reach and greater visibility in the market with

respect to the pizza industry and hence they command supplies at lower rate. However their

counterparts, competitors cannot command such lower prices. Thus the muscle power of

pizza hut and dominos is way beyond the others.

Supplier’s growing bargaining power

Supplies till now were not a problem. But with the advent of the rising food costs (raw

material inflation). Suppliers are not ready to supply items at the normal rate. Thus supplier’s

muscle power grew only doe to inflation. Thus the company either has to increase the menu

costs or reduce the operational costs to recover. Failing to do this will make the company into

losses or to lose out in the industry.

Trends in the Indian market

Marketing to children

Fast food outlets in India target children’s as their major customers. They introduce varieties

of things that will attract the children’s attention and by targeting children’s they

automatically target their parents because children’s are always accompanied by their parents.

Low level customer commitment

Because of the large number of food retail outlets and also because of the tendency of

customer to switch from one product to other, this industry faces low level customer

commitment.

Attracting different segments of the market

Fast food outlets are introducing varieties of products in order to cater the demands of each

and every segment of the market. They are introducing all categories of product so that

people of all age, sex, class, income group etc can come and become a customer of their food

line.

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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 domino’s brand was founded in the united states of America in 1960 by Thomas and

James Monaghan. Since then, that business has grown into a global network of over 8,500

pizza stores in more than 60 countries, involving over 2,000 franchises. Over its 49-year

history, domino’s has developed a simple business model focused on delivering quality

pizzas in a timely manner. Domino’s pizza, inc., completed its initial public offering in 2004

and is listed on the New York stock exchange. (source:domino’s pizza, inc.)

Domino's pizza India ltd. was incorporated in March 1995 as the master franchisee for India

and Nepal, of domino's pizza international inc., of U.S.A. Moreover, the company holds the

master 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

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such as crusts, toppings and flavors suitable to the taste buds of Indian consumers. Further,

providing value for money at affordable products to the consumers has been dominos motto.

Initiatives such as fun meal and pizza mania have been extremely popular with consumers.

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

emotional benefit dominos offer to consumers.

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

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 parlour. They borrowed $600 from their mother, and opened the

very first pizza hut. In 1959, the first franchise unit opened in topeka, kansas. Ten years later,

pizza hut was serving one million customers a week in their 310 locations. In 1970, pizza hut

was put on the new york stock exchange under the ticker symbol piz.

Until 1997, pepsi owned pizza hut, the company also controlled a vast network of fast-food

operations that included kfc, pizza hut, and taco bell. With 29,000 locations across the world,

the restaurant group was the largest in the world. However, pepsico decided to spin off its

restaurant business as a separate company.

Pizza hut is one of the flagship brands of yum! Brands, inc., which also has kfc, taco bell,

a&w and long john silver’s under its umbrella. Pizza hut is the world’s largest pizza chain

with over 12,500 restaurants across 91 countries

In India, pizza hut has 137 restaurants across 36 cities, including delhi, mumbai, bangalore,

chennai, kolkata, hyderabad, pune, and chandigarh amongst others. Yum! Is in the process of

opening pizza hut restaurants at many more locations to service a larger customer base across

the country

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.

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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 hut’s success has been its unique dining experience. Crewmembers at pizza

hut strive each day to provide ‘customer mania’ – the kind of service that ensures that every

visit of the customer is a memorable one.

A critical factor in pizza hut’s success has been a menu that has constantly evolved and

expanded to cater to the changing needs and specific preferences of customers in different

parts of the world. In having understood the pulse of the customers in India, pizza hut has

clearly established itself as a brand with an Indian heart. Besides offering an extensive range

of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India

in surat and later in ahmedabad and chowpatty, where it offers a jain menu sans all root-based

ingredients.

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.

 

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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 mumbai’s 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 pizza’s 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.

 

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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 tantalises palates, says marketing head, mr. Harneeth singh.

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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.

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SWOT ANALYSIS

Pizza hut

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Dominos

 

The maj

•

•

•

•

•

•

•

 

The maj

•

•

•

•

•

•

•

ajor competi

Pizza corne

Dominos

Mcdonald’

Barista

Cafe coffee

Subway

Papa john’s

or competito

Pizza hut

Pizza corner

Mcdonald’s

Barista

Cafe coffee

Subway

Papa john’s

itors who lo

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19 

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20  

An analysis 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

for veggies

Variety masters for chicken

Mcdonald’s Less variety Burger leaders

Fast service

More offers

Papa john’s Expensive Excellent quality

Variety

Ccd Concentrate more on

beverages, less options on

snacks

Quality

Expensive Variety in beverages

Barista Concentrate more on

beverages, less options on

snacks

Excellent ambience

Expensive Variety in beverages

Quality

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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 liberalisation, privatisation 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 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 loyals. With their virtual store

kind website, pizza hut offers customers a wide range of options to choose from menu and avail new

offers. Now orders can also be placed through mobile phones. High end technologies are used at the

cash counters.

Across socio-cultural barriers

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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Dominos

Adapting to economic environment

Dominos made their entry in India in 1995 when the country was marching into an era of

liberalisation, privatisation 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 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 loyals. With their virtual store

kind website, pizza hut offers customers a wide range of options to choose from menu and avail new

offers. Now orders can also be placed through mobile phones. High end technologies are used at the

cash counters.

Across socio cultural barriers

dominos outlets are prevalent in every small-big town across the world. Dominos has taken cues from

changing preferences of its customers and put together a tantalising menu that attracts foodies around

the globe

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

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

Behavioral

loyalty status – low, medium, high

user status – first time, regular, non-user

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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.

25  

POSITIONING Points of difference

The major point of difference between pizza hut and dominos is that pizza hut concentrates

on in-restaurant dining. The ambience and decor of all pizza hut outlets are good and the

outlets are spacious. When customers think of party and decide to have pizza, pizza hut only

comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business

meetings in their outlets. Pizza hut has customized birthday party invites with different

themes for the customers to choose and use it as invitations. Dominos aims at fast home

delivery of pizza. Whenever customers want to have pizza at home, they think of calling

dominos and ordering for it because they are experts in home delivery of pizza. “we earn

60% of our revenue from home delivery of pizzas and 40% from the restaurant sales” , says

mr.navamani, manager of dominos, coimbatore v.o.c. Park outlet. In case of pizza hut, the

major revenue is from restaurant sales.

Points of parity

Category points of parity – the main food item that is sold in pizza hut and dominos is pizza.

As we all know, pizza comes under the fast food category of foods, both the companies must

be good in speed of making and service. Irrespective of the cost, both pizza hut and dominos

has to deliver or serve pizza in less time as compared to other main course food items served

in other restaurants.

Competitive points of parity – competitive points of parity in case of pizza hut is that, even

though pizza hut is costlier than dominos, they have their own customers, who do not bother

about spending, but look for quality and personalized service. When we visit pizza hut, they

have restaurant hostess who will assign us tables and introduce the steward who will be

taking care of us. This is generally a procedure that is followed in five star category hotels

and pizza hut is also following it to emphasize on service quality. In case of dominos, they

are not costly as pizza hut and do not offer great ambience to customers, but offer good

pizzas at nominal price. They concentrate on turnover of covers and cater to customers who

don’t have time to spend on food and just stop over for refreshment. Moreover, dominos

mainly looks into home delivery of pizzas and are experts in it.

26  

All offerings inclusive

Value added services

Hot pizza,good to Eat

Pizza

Enjoyment

PRODUCT

Pizza hut

The customer value hierarchy

From the above diagram we can see that pizza hut has enjoyment as a basic product but it

provides food for it. Thus a person having a basic need of enjoyment can go to pizza hut and

have pizza which is the company’s core product. Hot pizza and good taste are his

expectation. Thus the company should ensure this by providing good pizza. The value adds

services refer to the overall dining experience, the service quality, ambience etc.

Potential Product‐Pizza hut Experience as a whole 

 

Value add ‐Augmented Product 

 

Good Taste‐ Expected Product 

 

Food – Basic Product 

 

Basic Requirement – Core Benefit 

27  

Product differentiation

Worldwide and in India, pizza hut has come to become synonymous with the ‘best pizzas

under one roof’. This is because at pizza hut the belief is that every pizza has its own magic,

thus making it a destination product – which everyone seeks. It is this belief that has ignited

the passion to create, innovate and serve the finest product the industry has to offer, while

Setting standards for others to strive to replicate. Pizza hut is committed to providing

uncompromising product quality, offering customers the highest value for money and giving

service that is warm, friendly and personal. A critical factor in pizza hut’s success has been

its unique dining experience. Crewmembers at pizza hut strive each day to provide ‘customer

mania’ – the kind of service that ensures that every visit of the customer is a memorable one.

Pizza features

Pizza hut has many unique features of their product due to which it attracts the customers.

The product is classified into non durable goods as it is a food item pizza hut differentiates

itself with its competitors with respect to their wide range of offerings (menu items) one can

find besides pizzas range of, pastas appetizers, cakes, and desserts etc. There are quite a lot

number of menu items to choose

Some of the items are

• Pizzas ( four different types)

28  

• Pastas and salads

• appetizers

• Desserts

• Beverages

29  

Mass customisation

The main advantage of pizza hut is that one can customise his own pizza by selecting the

bread and loading it with the toppings which one can select. This creates variety in the

customers mind and thus one can enjoy whatever pizza hut can offer.

The most unique feature is that there is ‘pan 4 all’ scheme where one can select 4 different

types of vegetarian /non- vegetarian combinations of pizza! This is a 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.

Conformance quality:

Pizza hut’s products have very high conformance quality i.e. All the products produced are

identical and meet the promised specifications

Style:

pizza is delivered in hot pans and served in style. The toppings in the pizzas are also dressed

in a good fashion. Thus having ‘food in style’ defines pizza hut’s experience.

Service differentiation

Ordering ease:

Once one enters the restaurant immediately the assistants initiates the ordering process by

providing the menu. All associates are well trained in english and can take order from any

customer.

Delivery

Pizza hut’s style of delivering the pizza to the customer is quite an experience. The restaurant

is aesthetically designed; all the staff members are uniquely dressed. Managers dressed in

special uniforms. Also the tables, menu, are all placed in a good manner. This on itself is

quite impressive. All orders placed in restaurant is served within 15-20 minutes and the take

away orders (ordered on phone) is delivered within 30 minutes. Care also has been taken by

the company to pack the pizzas in special covers so that it remains hot till the customer haves

the food. Any pizzas delivered outside 30 minutes are given free. Also discount coupons are

given to the customer in case one doesn’t want a free pizza.

30  

Product mixes

Width: the company’s total width of the product mix includes, pizzas, pastas, appetizers,

beverages and desserts

Length: the total number of items available in the company’s offerings is 28

• These are the pizzas available in the menu

• The pastas and the appetizers available are

Garlic bread

Cheese garlic bread

Garlic bread spicy supreme

Garlic bread exotica

• The desserts available is choco lava

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

beverages

Thus the total length of the product is 28 which does not include the beverages as it’s not

their product

Chicken ‘n’ spicy

Chicken supreme

Exotica

Veggie supreme

Teekha paneer makhani

Country feast

Chicken tikka makhani

Veggie lovers

Paneer el rancho

Kadai paneer

Kadai chicken

Classic

Favourite

Margherita

Simply vegetarian

Fiery chicken

Veggie crunch

Spicy veggie

Chicken hawaiian

Arrabbiata

Spicy tomato

Creamy mushroom

Spicy tomato with chicken

Arrabbiata with smoked chicken

 

Depth:

The dep

(from th

Consist

The con

pizza in

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meet th

pizzas a

extent.

Product

•

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31 

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32  

Co- branding

Pizza hut has joined hands with visa for availing various offers. However this offer is only for

the in dining i.e. One cannot avail the 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.

Packaging& labelling

The packaging of the 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 into the pizza.

Take away orders

They are put in a paper box neatly labelled with pizza hut brand logo. Also there is a plastic

support given (it’s in the shape of a 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 paper boxes described above are packaged into a special delivery

bags for retaining the heat. Thus we can observe that from every labelling, packaging the

company tries to imbibe the brand of pizza hut in the minds of consumers

33  

All offerings inclusive

Value added services

Hot pizza,good to Eat

Enjoyment

Food

dominos

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 company’s core product. Hot pizza and good taste are his

expectation. Thus the company should ensure this by providing good pizza. The value adds

services refer to the overall dining experience, the service quality, ambience etc.

Potential Product-Pizza hut Experience as a whole

Value add -Augmented Product

Good Taste- Expected Product

Food – Basic Product

Basic Requirement – Core

34  

Product differentiation

Domino's pizza India has maintained its position in the market with its constant product

innovation and maintenance of stringent service standards. More importantly, it has

established a reputation for being a home delivery specialist capable of delivering its pizzas

within 30 minutes to its community of loyal customers from its entire chain of stores around

the country. As the name suggests ‘the pizza delivery experts’ customers can order their

pizzas by calling their hotline. Domino's believes strongly in the strategy of 'think local and

act regional'. Thus, time and again domino's has been innovating toppings suitable to the taste

buds of the local populace and these have been very well accepted by the Indian market.

Also they had their promotional campaign ’hungry kya?’which means call up dominos if one

is hungry and have the food in 30 minutes.

Pizza features

Pizza hut has many unique features of their product due to which it attracts the customers.

The product is classified into non durable goods as it is a food item. Dominos differentiates

Itself with its competitors with respect to their wide range of offerings (menu items).one can

find besides pizzas, range of pastas appetizers, cakes, and desserts etc. There are quite a lot

number of menu items to choose. The ‘chicken wings’ item has specially struck a chord with

a lot of consumers as such a kind of item is not available in any other pizza outlets. This item

is also perceived to be the tastiest of the lot. Indecently chicken wings is a side dish.

Some of the menu items are

• pizzas

35  

• pastas and salads

• Appetizers

• Desserts

• beverages

36  

Mass customisation

The main advantage of pizza hut is that one can customise his own pizza by selecting the

bread and loading it with the toppings which one can select. This creates variety in the

customers mind and thus one can enjoy whatever pizza hut can offer.

The most unique feature is that there is ‘single slice pizza’ scheme where one can select any

vegetarian /non- vegetarian pizza at a lower cost. This is a unique way of offering as there are

many consumers who would not afford a regular size pizza and hence they can have a slice of

it.

Conformance quality:

Dominos products have very high conformance quality i.e. All the products 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 a good fashion. Thus having ‘food quickly’ defines pizza hut’s experience.

Service differentiation

Ordering ease:

Once one enters the restaurant immediately the assistants initiates the ordering process by

providing the menu. All associates are well trained in english and can take order from any

customer.

Delivery

Pizza hut’s style of delivering the pizza to the customer is not quite great. The restaurant is

not so aesthetically designed; all the staff members are dressed in a not so attractive manner.

Also the tables, 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 isn’t.

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 customers home. Dining for them comes

as secondary. The company doesn’t give importance to improve the dining standards. All

orders placed in restaurant is served within 15-20 minutes and the take away orders (ordered

37  

on phone) is delivered within 30 minutes. Care also has been taken by the company to pack

the pizzas in special covers so that it remains hot till the customer haves the food. Any pizzas

delivered outside 30 minutes are given free. Also discount coupons are given to the customer

in case one doesn’t want a free pizza.

Product mixes

Width: the company’s total width of the product mix includes, pizzas, pastas, appetizers,

beverages and desserts

Length: the total number of items available in the company’s offerings is 29

• These are the pizzas available in the menu

Marghetita Deluxe veggie

Cheese and tomato pizza Gourmet

Double cheese marghetita Cheese and barbeque chicken

Fresh veggie Barbeque chicken

Country special Spicy chicken

Farm house Chicken mexican red wave

Peppy paneer Kheema do pyaasa

Mexican green wave Chicken golden delight

Vegetarian extravanza Meatzaa

Non-vegetarian extravanza Cheese and pepperoni

Cheesy white

• The pastas and the appetizers available are

Garlic bread

Chicken wings

Cheese dip

Cheesy white pasta

Tangy red pasta

 

Depth:

The dep

(from th

Consist

The con

pizza in

Produc

The com

meet th

pizzas a

extent.

Product

•

•

•

•

Core

Eg

pth refers t

he menu) fo

tency:

nsistency o

ndustry.

ct line analy

mpany has

he ever chan

and pastas.

t line

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marketing

Pastas are

margins for

Specialities

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:Pan,Cheese Pizza

o the no: o

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f the other it

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gin and gen

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as staples a

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nerally tends

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Pastas

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38 

hich are av

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ame as pizz

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ements. Thu

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oco lava wh

ay parties)

nd chicken

se buying

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Desserts

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each variant

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e it forms th

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hich is highl

wings in p

s

o

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articular wh

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39  

Co- branding

Dominos does not have any co branding or any tie ups with banks or credit cards. However

they promote only products of coca-cola.

Packaging& labelling

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

‘serving pizza’.

In house dining

In house dining, the pizzas are packed in paper box. Plates are not provided to the customers.

The extra ingredients like oregano mix, chilli flakes etc. Are given in a 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 reason 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 labelling is done quite

well. All ingredient pouches are also labelled.

Take away orders

They are put in a paper box neatly labelled with dominos brand logo. The extra ingredients

like oregano mix, chilli flakes etc. Are given in a paper pouch which is also branded with the

dominos logos.

Home delivery orders

All the pizzas covered in paper boxes described above are packaged into a special delivery

bags for retaining the heat.

Thus we can observe that from every labelling, packaging the company tries to imbibe the

brand of dominos ‘pizza delivered in 30mins’ in the minds of consumers.

40  

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) Domino’s: pursuing a push strategy

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

advertising layout for domino’s is minimal in India. Domino’s concentrates on

incentivizing customers instead off advertising and promotion. As a result,

domino’s regularly introduces sell-in schemes (promotional schemes for dealers),

promotional coupon, festival offers etc.

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.

41  

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.

Domino’s

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.

42  

company

Raw material from warehouse

Dealer

Consumer

• 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 Domino’s and Pizza hut do not introduce any indirect

channel.

43  

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 customer,

44  

PRICING OF DOMINO’S

Indians are value-sensitive, not price-sensitive. The price was attributed to the high quality of

ingredients used. For instance, Domino’s sourced its Peperoni and Jalapeno needs from

Australia and Spain respectively. However, with competition increasing from Pizza Hut,

Domino’s introduced price cuts, discounts and freebies to attract the customers. In 1998,

Domino’s introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. The

demand was overwhelming and the company sold close to 5000 pizzas in the first week of its

launch.

During late 1998, both Domino’s and Pizza Hut were trying to lure the customers with

discount coupons by issuing such coupons through several schemes. However, both

Domino’s and Pizza Hut were concentrating more on data base marketing and below-the-line

activities and special offers.

In India Domino’s is trying to attract the middle class and lower middle class people who are

interested to spend their money on pizza but in low price. Those people are eager to go for a

outing in any festival and as a cheap family restaurant Domino’s would be most preferable.

They do not need high class ambiences or amusement in the shop so the establishment cost is

45  

low for the dealers and the price of pizza is very reasonable for the customer. Domino’s do

not have any fixed customer though they are one of the main competitors of the Pizza hut.

The Domino’s Pizza franchise constantly keeps on inventing ways through which it can make

a greater impact on the fast food market. That is how the fast food franchise came up with

'Fun Meal for Four' offer. Through this method, the pizza franchise is able to produce

more variety in the food delivered to its customers at their door steps. Through its 'Fun

Meal for 4’ pack the Domino’s Pizza India offers four pizzas at the rate of Rs 180. This

means charge of one pizza will be just Rs 45. This has helped the speciality food franchise to

enhance the strength of its customer base. Mainly offers are more attractive for the Domino’s

, mainly student and middle class people are the main customer and they targeted that

customers.

46  

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

47  

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.

48  

PROMOTION

DOMINO’S

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, Domino’s 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

Category need

Domino’s master franchise model

Industry analysts believed that Domino's master franchise model was one of the reasons for

its success in international markets even in light of the global economic slowdown in 2008.

How domino's international bucked the trend

The strong performance of Domino's international master franchises in the midst of the global

economic slowdown was a widely debated topic among analysts. While some analysts

believed that the recession had helped the growth of these chains due to the 'trading down

49  

factor' of people preferring 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 company buck the trend.

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,

Domino’s 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 domino’s pizza better than its competitors

• Varity of Pizza’s

• Services offered

• Quality of pizza’s

• Location of the Outlet

• Waiting time in the outlet

• Door step services

50  

• Low pricing

Developing effective communication

Target to age group/class

Domino’s 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 don’t 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.

As far as the socio Economic class is concerned, since Domino’s pizzas are priced from

about Rs.80 onwards. However, Domino’s have now come out with pizzas ranging from

Rs.39 onwards to target the ever-increasing middle class consumers.

Domino’s 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 min campaign

This is a campaign in which Domino's 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 major metropolitan cities. Anything which is far

away from 3 kms doesn’t fall in this category.

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.

51  

Design the communication: Message strategy

Offers by dominos

• With every order of pizza and coke/Garlic bread sticks get a domino’s pasta for Rs. 39

instead of Rs 69.

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

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

• Dominos start providing coke/fanta/sprite.

• Dominos started pizzas mania which starts from Rs 35 and we get the toping 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 domino’s

• Kwality wall’s ice-creams in dominos- For the first time dominos started offering ice

creams .Selling ice cream in Domino’s is also a new sales promotion strategy to attract more

customer in a new perceptive /innovative way.

• Domino’s has also come up with pasta mania.

Communication mix

Every company must follow the eight major marketing communication modes.

For Domino’s direct selling and interactive selling is not needed though they are involved in

internet and cable TV promotions. Domino’s always search for ways to gain efficiency by

replacing one communication with others. The sustainability among communication tools

explains why marketing function need to be coordinated.

52  

Advertising

It reaches geographically dispersed buyers. Domino’s vision is focused on “Exceptional

people on a mission to be the best pizza delivery company in the world! ". Domino's is

committed to bringing fun and excitement to the lives of our customers by delivering

delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at

fulfilling this commitment towards its large and ever-growing customer base. It’s 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.

 

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54  

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 businessperson’s 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 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 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 Hut’s success has been its unique dining experience. Crewmembers

at Pizza Hut strive each day to provide ‘customer mania’ - the kind of service that ensures

that every visit of the customer is a memorable one.

55  

Brand awareness

• Pizza Hut was among the first multinational brands to enter the food retail sector in

India. When the first Pizza Hut restaurant opened in Bangalore the quick service

industry was at a nascent stage and the pizza category was dominated by a sole

regional player who had a marginal presence.

• The strength of Pizza Hut’s success globally lies in a marketing strategy that builds

connections with customer’s everyday in different parts of the world. Many customer

service initiatives have been uniquely developed for India and have been greatly

instrumental in building an emotional bond with the customer.

• The crewmembers at Pizza Hut break into a Boogie at

restaurants in Delhi and Mumbai and do the Bhangra

in Chandigarh and Amritsar. While a bell hangs at

each Pizza Hut restaurant, which is rung by customers

who as they leave wish to thank the servers for yet

another memorable visit.

• Pizza hut organized the Jig n Jeeto contest in Delhi for the first time, it received a

phenomenal response with super star Fardeen Khan judging the show. Pizza Hut

hopes to continue this contest as a tradition for the years to follow.

Brand attitude

International brand with an Indian heart

Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at

Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has

even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the

Jain religious community, whose members prefer not to eat at places where meat is served.

Offering more than the international menu

International food chains typically offer only a few localised products in other parts

of the world. However, Pizza Hut’s local menu is as large as the international one.

According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like

local flavors.The Tandoori range of pizzas, which was developed locally, has a menu mix of

over 20 per cent.

56  

Brand purchase intention

Why Pizza-hut is preferred than other

• Varity of Pizza’s

• Good ambience

• Services offered

• Quality of pizza’s

• Location of the Outlet

• Waiting time in the outlet

Communication mix

Advertising

Pizza Hut’s 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

girl’s father consoling her over a pizza as her bridegroom waits outside the restaurant to

escort her after their wedding - the customer’s 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.

57  

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 Hut’s 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 customer’s

enjoyment and food not the price. Thus Pizza hut’s concentrate more on carrying out above-

the-line activities in the area it serves.

58  

Word of mouth

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

59  

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 these two

pizza outlets faces stiff competition with other pizza companies (US Pizza, Smoking Joe’s,

Papa John’s, Garcia’s) which do not exist in Coimbatore.

Questions pertaining to the 4p’s were asked some of the questions are as follows

1) Do you have pizza

2) How frequently do you like to have 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 / any other and for what reason?

7) Who are the principal 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 jotted down and analysis was made. Interestingly there were a

lot of correlation between the customers of 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

wards

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

pattern.

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A few excerpts from the visit to Dominos and Pizza hut (Coimbatore)

Place: VOC Park & PSG Coimbatore

.

• As the name suggests the primary focus is on the pizza delivery

• Their pricing is targeted towards the middle income group who form the bulk of the

Indian population

• Pizzas are less in cost as compared to pizza hut prices which charges a premium

• Thus mostly cost conscious people form the major chunk of the clientele

• From the 1st photo one can see that there are no tissue papers in the wash basin

• From the second photo we can also see that the tissues for use are placed unhygienic-

ally

• Actually the greatest surprise is in the next picture watch out!

61  

• People are dining right beside the place for washing hands! One may have thought

that there are separate washrooms which are not the case.

• Also there are no separate washrooms

• The outside area of the restaurant is also not maintained properly, the place is quite

stingy and there are lot of foul smells

62  

• This is really pathetic for a restaurant of Dominos brand

• People who generally have low disposable income, who doesn’t care about these

things generally visit Dominos

• Thus Dominos doesn’t attract people from the higher income groups as they do not

prefer such dining conditions

• One more which is noticeable is that everything is designed for fast delivery, Pizzas

are not served in plates, its served in paper box ( which is used for deliveries)

• The ingredients like pepper, chilli flakes and oregano mix are served in paper and

plastic pouches even in restaurant which should not be the case as the user finds

difficult to remove the pouches with one hand once he starts eating the food

• At PSG, Dominos have a separate washroom but water was not available at two

separate instances!

• In Mumbai also one can find Dominos restaurants having such conditions

• Even one can find very small Dominos outlets where one cannot even have food

inside the restaurant

63  

Prices are Low , Great Discounts

Pizzas are Tasty and

Good Variety

Product Recall

Relates to Food and Delivery

Ambience for Dining are all found to be satisfactory

Observations and customer reviews for Dominos Pizza

• Mostly 60% of the customers come here for food and the others for enjoyment as

their basic requirement

• Mostly customers come to dominos for take away pizzas

• Most customers are from the middle income group or students whose disposable

income are relatively less

• Generally everyone finds the taste of the pizzas to be good

• Also the location of the restaurant mattered a lot as many people come to Dominos

since its located besides VOC park

• Even we had food in the restaurant and we also found the taste to be great!

• Also people preferred Dominos for their relatively lower price

Most Common Answers (from customers)

• Generally 65% of the orders are either take away orders or placed from outside. In

dining contributes only 35% of the revenue

• The company’s product recall 95% of the times relates to Delivery in 30 minutes or

food (which pertains to their ‘Hungry Kya ?’promotional campaign)

• Enjoyment is perceived to be achieved after having the food quickly

• Dominos Brand thus relates mainly to service & delivery neither they promote their in

dining experience nor they spend revenue for it.

64  

Place: Pizza- Hut R.S Puram, Coimbatore

• As the name and tag line ‘good friends great pizza’ suggests the primary focus is on

the pizza dining experience

• Their pricing is targeted towards the higher income group who prefer ambience/

environment as their core need and food as secondary. The BMW X-5 parked outside

the Pizza hut justifies this fact!

• Pizzas are costly as compared to Dominos

• The major chunk of the clientele are mostly premium customers who are willing to

shell money for good environment and for great food

• One unique feature of Pizza Hut is that one can always find Pizza Hut in the posh

areas of the city

• One can never find a small Pizza Hut outlet. Pizza hut outlets are always big with

plush interiors having great ambience.

65  

• Having food in such good plush interiors is an enjoyment in itself • Menu card, Ingredients (like oregano mix) are placed in porous bottles which is

aimed for ease of use • The outside of the restaurant also is pretty good and the place is maintained very

nicely • Unlike Dominos there are separate washrooms fully equipped with the necessary

items • The most unique feature is the ‘Bell’ which is kept outside every Pizza Hut.

Customers can ring the bell if they had liked their service and the associates scream ‘Thank you’ unanimously

• This actually is a feel good factor for the customers after having great food

Observations and customer reviews for Pizza- Hut

• Mostly 80% of the customers come here for enjoyment, ambience and the rest for

food as the basic requirement

• Mostly customers come to Pizza-Hut for dining experience

• Most customers are from the higher income group

• The customer service in the restaurant is also good

• Generally everyone finds the taste of the pizzas to be good

66  

Prices, No Problem

Amazing Dining

Experience

Product Recall

Relates to ambience and

enjoyment

In dining Service is

good

Most Common Answers (from customers)

• Generally 70% of the orders are in house orders i.e. dining. Orders which are either

take away or placed from outside contributes only 30% of the revenue

• The company’s product recall 90% of the times relates to ambience and enjoyment

• Pizzas are secondary to enjoyment

• Pizza Hut as a brand thus relates mainly to ambience and enjoyment with pizza.

Hence they promote their in dining experience with the tagline ‘good friends great

pizza’

 

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71  

MARKETING STRATEGIES  

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

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

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

Strategic Formulation

Overall Cost Leadership, Differentiation and Focus

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

delivering pizzas at home

• Dominos Brand thus relates mainly to service & delivery neither they promote their in

dining experience nor they spend revenue for it.

• Domino's vision is focused on “Exceptional people on a mission to be the best pizza

delivery company in the world!”

Thus Dominos are able to provide good pizzas at relatively lower rate as they don’t spend

much for the restaurant

Pizza Hut’s Premium price

Pizza Hut is committed for providing uncompromising product quality, offering customers

the highest value for money and giving service that is warm, friendly and personal.

• They stress heavily on the dining experience and the ambience

• Thus at each point company charges a premium

Thus Pizzas from Pizza Hut costs a premium hence their customers also changes to high

income groups.

72  

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 Hut’s success has been a menu that has constantly evolved and

expanded to cater to the changing needs and specific preferences of customers in different

parts of the world. In having understood the pulse of the customers in India, Pizza Hut has

clearly established itself as a brand with an Indian heart. Besides offering an extensive range

of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India

in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root-

73  

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

74  

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 Hut’s marketing strategy has and edge over Dominos.

75  

SUGGESTIONS Dominos

• The dining conditions have to be changed drastically if Dominos have to target the

premium segment of customers.

• They are way behind Pizza Hut in the dining experience. Some of the Dominos

restaurants lack even basic amenities

• Due to this a condition can occur where customers judge the quality and taste of the

pizza with respect to the restaurant environment and ambience

• Thus to have a greater market share and tap premium segment of the market,

Dominos can provide good quality restaurants

• There should also be provision for music, TV’s, kids zone etc in the restaurant

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

Pizza hut

• Reduce the menu costs; it is way too expensive for a middle class Indian.

• Middle class forms the maximum population of India and hence reducing the costs of

pizza can increase the elasticity of demand greatly

• Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut

should offer more discounts to tap more customers

• Their reach is very less as compared to Dominos (as they have only premium

restaurants) which deprives far off customers from having Pizza Huts experience.

Hence they should increase their presence

76  

REFERENCES  

Electronic References: Electronic Media and URLs (2009). Retrieved December 25,2009 from dominos website, www.dominos.co.in

Electronic References: Electronic Media and URLs (2009). Retrieved December 30,2009 from pizza hut website, www.pizzahut.co.in

Electronic References: Electronic Media and URLs (2009). Retrieved December 26,2009 from exchange4 media website, www.exchange4media.com

Journal : Economic Reforms India, 1992

Electronic References: Electronic Media and URLs (2009). Retrieved December 25,2009 from esnips website,www.esnips.com/A Review on Indian retail food industry.pdf

Telephonic conversations: Mr.Harneeth Singh, Marketing Head, Dominos Pizza India Ltd., Noida

Telephonic conversations: Mr. Rahul Varma, Chief Manager, Pizza Hut, Bangalore

Telephonic conversations: Mr.Asok Kumar Sahu, Dominos Pizza India