PROJECT REPORT

ON

“COMPARITIVE STUDY OF MARKETING STRATEGIES OF

DOMINOS AND PIZZA HUT”
A project submitted to the

University of Mumbai for partial completion of Degree of

Bachelor’s in commerce (Accounting and Finance)

Under the Faculty of commerce

SUBMITTED BY

Mohd Usman Isthiyak Ahmad Shaikh

T.Y.B.A.F SEMESTER VI

ACADEMIC YEAR: 2020-2021

Under the Guidance of

Prof. Roshni Udhwani

Anna Leela College of Commerce and Economics and

Shobha Jayaram Shetty College for BMS

Shashi Manmohan Shetty Higher Education Complex,

Buntara Bhavana Marg, Kurla East, Mumbai – 400070 April 2021

 Bunts Sangha Mumbai
Anna Leela College of Commerce and Economics
Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education Complex,
Buntara Bhavan Marg, Kurla (E), Mumbai 400 070

Certificate

This is to certify that Mr. Mohd Usaman Isthiyak Ahmed has worked and
duly completed her project work for the degree of Bachelor of Commerce
(Accounting and Finance ) under the Faculty of Commerce in the subject of
Accounting and Finance and his project is entitled, “COMPARITIVE STUDY
OF MARKETING STRATEGIES OF DOMINOS AND PIZZA HUT”
under my
supervision.

I further certify that the entire work has been done by the learner under my
guidance and part of it has been submitted previously for any Degree or
Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Prof. Roshni Udhwani

Project Guide

Date of Submission:
 Declaration by learner

I, the undersigned Mr. Mohd Usman Isthiyak Ahmed hereby, declare that the
work embodied in this project work titled “COMPARITIVE STUDY OF
MARKETING STRATEGIES OF DOMINOS AND PIZZA HUT” , forms my
own contribution to the research work carried out under the guidance of Prof.
Roshni Udhwani is a result of my own research work and has not been
submitted previously for any Degree or Diploma of any University.

Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

Sign of Student

Certified by,

(Name and signature of Guide)

 Acknowledgement
To list who all have helped me is difficult because they are so numerous, and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. Padma Deshmukh, for providing the
necessary facilities for completion of this project.

I take this opportunity to thank our Co-ordiantor, Mr. Sachin Pimple, for his moral
support and guidance.

I would like to express my sincere gratitude towards my guide, Prof.Roshni Udhwani

whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazine related to my subject.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
COMPARITIVE STUDY OF MARKETING STRATEGIES OF DOMINOS
AND PIZZA HUT
Serial No. Particulars
1 INTRODUCTION

2 REASONS FOR EMERGENCE

3 MARKET SHARE AND MAJOR PLAYERS

4
MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY

5 CUSTOMERS

6 CORE COMPETENCIES

7 ACESS TO CRUCIAL RESOURCES

8 SWOT ANALYSIS

9 COMPETITORS

10 CONTEXT

11 SEGMENTATION

12 TARGETING

13 POSITIONING

14 PRODUCT

15 PLACE

16 PRICING OF DOMINOS

17 PRICING OF PIZZA HUT

18 PROMOTION

19 MARKET FEEDBACK & CONTROL MECHANISMS

20 ANALYSIS AND INTERPRETATION

21 MARKET STRATEGIES

22 SUGGESTIONS

23 CONCLUSION

24 BIBLIOGRAPHY

6
 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 Rs.3600 million which is about onefourth of the total
investment made in this sector. Because of the availability of the raw material for fast food,
global chains are flooding into the country. The percentage share held by foodservice of total
consumer expenditure on food has increased very low base to stand at 2.6% in 2001. Eating at
home remains very much ingrained in Indian culture and changes in eating habits are very
slow moving with barriers to eating out entrenched in certain sector of Indian society. The
growth is neculear families, particularly in urban India, exposure to global media and western
cuisine and an increasing number of women joining workforce have had an impact on eating
out trends.

Major players in fast food are:

• McDonalds

• KFC

• Pizza Hut

• Domino’s Pizza

• Café coffee day

• Barista

• Subway

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

7
 REASONS FOR EMERGENCE

Gender Roles:

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

Customer sophistication and confidence:

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

Paucity of time:

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

Double income group:

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

Large population:

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

8
 MARKET SHARE AND MAJOR PLAYERS

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

Other players mainly are:

• Smokin Joe‟s

• Gracia‟s

• Papa John‟s

• U S Pizza

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

9
 MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY

NDUSTRY COMPETITION

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

• Pizza Corner

• Smokin Joe‟s

• U S Pizza

• Gracia‟s
In tier II cities, dominos and pizza hut are still the major players.

10
 THREAT OF NEW ENTRANTS

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

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

• Papa John’s Pizza

• U S Pizza

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

11
 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

• Café coffee day

• Chinese restaurant (Mainland China)

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

12
 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 item at the normal rate. Thus supplier‟s muscle power
grew only due to inflation. Thus, the company either has to increase the menucosts or reduce the
operational costs to recover. Failing to do this will make the company into losses or to lose out in the
industry.

13
 TRENDS IN THE INDIAN MARKET

Marketing to Children

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

Low Level Customer Commitment

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

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

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

1. Many women or both parents now work.

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

3. Long distances to school and work are common.

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 only solution.

14
 Brief history of the company, Indian operations (DOMINOS)

The domino’s brand was found in the United States of America in 1960 by Thomas and James
Monaghan. Since then, that business has grown into a global network over 8,500 pizza stores in more
than 60 countries, involving over 2,000 franchises. Over its 49-year history, domino‟s has developed
a simple business model focused on delivery 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.

Domino’s pizza India ltd. Was incorporated in March 1995as 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.Bhatia of the jubilant organises group are the promoters of the company.

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

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

15
 Brief history of the company, Indian operations (PIZZA HUT)

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

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

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

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

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

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

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

· 1971: Pizza Hut becomes the number one pizza restaurant chain in the world on both sales and
Number of restaurants. · 1972: 1000 restaurants are open throughout the USA.
· 1973: Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza
Hut opened in Islington, London. · 1977: PepsiCo bought Pizza Hut.

16
· 1980: Pan Pizza was introduced. · 1982: The UK joint venture started between PepsiCo and Whitbread.

· 1984: Over 50 restaurants so far in the UK.

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

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

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

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

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

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

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

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

· 2002: Tricon Global became YUM! Brands Inc.14

· 2006: Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was
now 100% owned by Yum! · 2008: We bought Godfather's Pizza in Ireland with 28 stores

17
 PIZZA HUT VISION AND MISSION

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

Pizza hut is committed for providing uncompromising product quality, offering customers the highest
value for money and giving service that is warm, friendly and personal. A critical factor in pizza hut‟s
success has been its unique dining experience. Crew members at pizza hut strive each day to provide
„customer mania‟ – the kind of service that ensures that every visit of the customer is a memorable one.

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

Over the years pizza hut has also developed and successfully introduced a range of products especially
suited to the Indian palate. These products like chicken tikka, spicy korma, Spicy Paneer, and the
masala and tandoori pizzas and have been a tremendous success. What has also given pizza hut a
competitive edge is that in15 addition to an extensive range of internationally renowned pizza like the
Italian, the proprietary pan pizza and stuffed crust, in India the menu offers the opinion of a complete
meal. It includes appetizers, a salad bar – where the customers can make their own fresh salads, a
range of soups, pastas and deserts, etc

18
 CUSTOMERS

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

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

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

Influence in buying pattern

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

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

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

19
From the data, we can interpret only 20% of customers have pizza very frequently (i.e weekly
once) at the same time 20%of customers have pizzas very rarely

20
 CORE COMPETENCIES

That which makes them different!

Dominos

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

Tracing footsteps

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

21
 Pizza Hut

Tracing footsteps

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

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 pasta that is truly italian is now at every pizza hut outlet.
With changing tastes of Indians and greater acceptance of international cuisines, pizza hut has
introduced 30 new items on its menu for this festival season. These include beverages, pasta and
desserts. Pizza hut express outlets were launched at malls, airports, department stores and gas stations
which offers a reduced version of the menu for globe trotters and bust bees.

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

Dreaming big

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

22
 ACCESS TO CRUCIAL RESOURCES

The players behind the scene

Dominos

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

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

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

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

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

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

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

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

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

24
SWOT ANALYSIS

DOMINOS

PIZZA HUT

25
 COMPETITORS

Pizza Hut

The main competitors who lock horns with pizza hut are:

• Pizza corner

• Dominos

• McDonald‟s

• Barista

• Café coffee day

• Subway

• Papa John’s

26
 Dominos

The major competitors of dominos are:

• Pizza Hut

• Pizza corner

• McDonald‟s

• Barista

• Café coffee day

• Subway

• Papa John’s

An analysis of the competitors of Dominos and Pizza Hu

27
28
 CONTEXT

Dominos

Adapting to economic environment

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

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

Embracing technology

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

Across socio cultural barriers

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

29
 Pizza Hut

Adapting to economic environment

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

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

Embracing technology

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

Across socio-cultural barriers

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

30
 SEGMENTATION

Dominos

Geographic:

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

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

Demographic:

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

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

Psychographic:

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

Behavioral:

Loyalty status – low, medium, high

Use status – first time, regular, non - user29 P

31
 Pizza Hut

Geographic:

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

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

Demographic:

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

Family Income – middle class, upper middle, high class

Dual income earners – yes/no Psychographic: Socio - economic class – urban (a1, a2, b1, b2, c, d)

Behavioral:

Occasions – birthdays, corporate lunches, marriages, parties, receptions

Loyalty status – low, medium, high

Use status – first time, regular, non - use

32
 TARGETING

Dominos

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

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

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

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

33
 Pizza hut

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

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

• In psychographic segmentation they targeted at a1, a2, b1 socio – economic classes. In behavioural
segmentation they targeted for occasions such as birthday bashes, corporate lunches. It was also found
that they were targeting for the first time users because they felt that their quality and taste would
automatically make them a loyal customer.

34
 POSITIONING

Points of difference

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

Points of parity

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

Competitive points of parity – competitive points of parity in case of pizza hut is that, even through
pizza hut is costlier than dominos, they have their own customers, who do not bother about spending,
but look for quality and personalized service. When we visit pizza hut, they have restaurant hostess
who will assign us tables and introduce the steward who will be taking care of us. This is generally a
produce that32 is followed in five star category hotels and pizza hut is also following is to emphasize
on service quality. In case of dominos, they are not costly as pizza hut and do not offer great ambience
to customers, but offer good pizzas at nominal price. They concentrate on turnover of covers and cater
to customers who 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.

35
 PRODUCT

DOMINOS

The customer value hierarchy

Fromtheabovediagramwecansee thatdominoshas a foodas a basicproducbt utoverall

it provides aenxperience. Thus a person having a basic need of food can go to dominos
and have pizza whichis the company‟score product.Hot pizza and good taste are his
expectation. Thus the company should ensure by providing good pizza. The value adds
servicesrefert theoveraldl iningexperiencet,heservicequalitya, mbience etc.

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Product differentiation:

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

Pizza Features:

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

Some of the menu items are:

• Pizzas

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• Pastas and
salads

• Appetizers

• Desserts

• Beverages

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 Mass customization:

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

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

Conformance quality:

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

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 MARKET FEEDBACK & CONTROL MECHANISMS

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

Questions pertaining to the 4p‟swere asked some of the questions are as follows:

1) Do you have pizza?

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

3) What is the frequency of each?

4) If yearly or rarely what are the reasons?

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

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

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

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

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

10) Suggestions if any

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

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

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

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

ANALYSIS AND INTERPRETATION

(Primary data collected from Mumbai City. This data may vary from cities)

1) How many times one visit to a restaurant?

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

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

3) Frequency of having pizza

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

4) Preferred Brand of Pizza

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

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5) What is the brand recall of Pizza Hut

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

6) What is the brand recall of Dominos

Food quality and affordable price is what comes into the mind of 60% of Dominos customer.

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 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 pizza under one roof‟. They have positioned
themselves for their unique dining experience.

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

Strategic Formulation

Overall Cost Leadership Differentiation and Focus

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

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

Dominos 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 to 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.

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• Thus at each point company charges a premium.

Thus, Pizzas from Pizza Hut casts a premium hence their customers also charges to high income groups.
Creation, Communication and Capturing Value

Dominos

Domino’s Pizza constantly strives to develop products that suit the tastes of its consumer and hence
delighting them. Dominos believe 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 delivery 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 o customers in different parts of the world. In
having understood the pulse of the customers in India, Pizza Hut has82 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 later in Ahmedabad and Chowpatty,

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were it offers a Jain menu and 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 variety of combinations of menu items which a customer can choose so that the 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 pizza slices of different varieties and they are clubbed
together to form a single pizza.

Once the customer dines / orders at home, normally discount coupons are given to the customer so that
so 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 a successfully introduced a range of products especially
suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spick Paneer and
Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a
competitive edge is that in addition to an extensive range of internationally renowned 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, 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.

Mean while Dominos are not behind Pizza Hut in introducing local delicacies, they have different
menus in different cities in India.

dominos 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. Also sizes of pizzas are relatively large as
compared to that of Pizza Hut.

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The discount offers at Dominos are main incentive to build long term relationships. Dominos also
courier discount coupons at consumer 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 are
intend to

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

• Marketing strategy of Pizza Hut is better than the 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 an edge over Dominos.

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 SUGGESTIONS

Dominos

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

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

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

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

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

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

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

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 CONCLUSION

Pizza Hut has many targets which it has achieve in a given period of time. The timeperiod is mostly a
year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be
concluded that these strategies have been successful and there is flexibility in the strategies, as they
can be changed with the changes in the market conditions as well as the targets. Indians are value-
sensitive, not pricesensitive. The price was attributed to the high quality of ingredients used. For
instance, Domino’s sourced its Peperoni and Jalapeno needs from Australia and Spain respectively.
However, with competition increasing from Pizza Hut, Domino’s introduced price cuts, discounts and
freebies to attract the customers. In 1998, Domino’s introduced the Pizza Mania scheme where it
offered a large pizza for Rs.129/-. The demand was overwhelming, and the company sold close to
5000 pizzas in the first week of its launch. The objectives of promotion are to introduce a new
product, stimulate demand, change the short-term behavior of the customers, and encourage repeat or
greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion
is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on
college campuses around the country in order to reach the target market.

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 BIBLIOGRAPHY

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