Project Report on

MARKETING STARTEGIES OF PIZZA HUT & DOMINOS

In partial fulfillment of requirement for the

Award of Degree of M.Com

Subject:
Marketing Strategies& Plans

Submitted By:
Miss. CHANDNI DULANI
Roll No. 23
M.Com. Part I, Semester I

Under the Guidance of:

Prof. Mr. Prakash Mulchandani

SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

ULHASNAGAR 421003

UNIVERSITY OF MUMBAI
2015 2016

1
 Department of Commerce

Certificate

Thisistocertifythat,Ms.CHANDNIDULANIofM.Com.I,Sem.I(RollNo.23),has
successfully completed the project titled Marketing Strategies of Domino's v/s Pizza
HutundermyguidancefortheAcademicYear201516.Theinformationsubmittedistrue
andoriginalaspermyknowledge.

Prof.PrakashN.Mulchandani
(ProjectGuide)

Prof.GopiShamnani Dr.PadmaV.Deshmukh
(Coordinator,M.ComCourse) (I/CPrincipal)

ExternalExaminer

2
 DECLARATION

I, Ms.CHANDNIDULANIstudent of SMT. CHANDIBAI HIMATMAL

MANSUKHANI COLLEGE, ULHASNAGAR studying in M.Com Part I,

(Semester I); I hereby declare that I have completed this project on

MarketingStrategiesOfPizzaHut&DominosforthesubjectMarketingStrategies&

Plans in the academic year2015-16.The information submitted is true

and original to the best of my knowledge.

(CHANDNI DULANI)

3
 ACKNOWLEGEMENT

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 forgiving me chance
to do this project.
I would like thank my Principal, Dr. Padma V. Deshmukh for providing the
necessary facilities required for completion of this project.
I would also like to express my sincere gratitude towards my project guide Prof.
Mr. Prakash Mulchandani whose guidance and care made the project
successful.
I would like to thank my college library, for having provided Various reference
books and magazines related to my project.
Lastly I would like to thank each & every person who directly or indirectly
helped me in completion of the project especially my parents & peers who
supported me throughout my project.

4
 EXECUTIVE SUMMARY

During the past four decades Pizza Hut & Dominos has built a reputation for excellence that has earned the respect of

consumers and industry experts alike. Building a leading pizza company has required relentless innovation,

commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and

leadership have characterized Pizza Hut & Dominos business through more than four decades of success. Through the

strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future.

There are different objectives of every organization. In order to achieve these objectives different targets are set.

Targets pass down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives,

management decides on different strategies. These strategies are divided into many sub-parts and are useful for the

running of the business. The employees and the management know what they have to achieve through the targets

which have been set to them and the strategies they have adopted help them know the way they will achieve the

objectives. Similarly, Pizza Hut has different targets set to them and they have adopted different strategies to

successfully achieve the targets set. These targets are set by the RSC i.e. the restaurant support centre in Karachi.

These targets are passed on to the RGM (restaurant general manager) and he passes them to the workforce. These

targets fall within the organizational structure in which there are many people who have different targets to achieve. In

order to successfully achieve the targets they need to co-operate and work in a friendly environment.

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 Objective of the Study

To know the satisfaction level of customer on pizza of pizza hut.

To know the satisfaction level of consumer of pizza in dominos.

To know about the strategies adopted by both the companies.

To know which type of taste customer likes in pizza.

To know whose pizza is like most by the costume.

To know the visit of customer in a week of pizza hut

Scope of the Study

The Study Is Helpful To Company For Knowing That How Many Persons Are Satisfied With Pizza Of

Pizza Hut.

Company Can Make The Product Better As Per Customer Suggestion.

During Study Researcher Get Large Experience And Introduced Himself In Front Of New People.

The study is also helpful in finding out the respondents opinion towards certain

attributes.

This study can be helpful to the company for conducting any further research.

Methodology

Research is a scientific and systematic search for pertinent information on a specific

topic. Research is an art of scientific investigation. According to Clifford Woody,

Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, making deductions

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and reaching conclusions and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis.

Marketing Strategies of Pizza Hut

and Dominos

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 INDEX
SR.No. TITLE Pg.No.
1. INTRODUCTION 10
2. BRIEF HISTORY 12
-DOMINO'S
-PIZZA HUT
3. MARKETING STRATEGY 14
-PIZZA HUT
-DOMINO'S
4. AN ANALYSIS OF THE COMPETITIORS OF PIZZA HUT AND 16
DOMINO'S
5. SWOT ANALYSIS 17
6. SEGMENTATION, TARGETING, PRICING. 19
7. CREATIVE STRATEGY. 25
8. SIMILARITIES. 26
9. DIMENSIONS OF COMPARISION. 27
10. PRODUCT LINE. 30
11. BRAND BUILDING THROUGH ADVERTISEMENT. 32
12. KEY POINTS 33
-PIZZA HUT
-DOMINO'S
13. CONCEPT: 34
-PIZZA HUT
-DOMINO'S
14. MENU: 36
-PIZZA HUT
-DOMINO'S
15. SUCCESS FACTORS. 38
-PIZZA HUT
-DOMINO'S
16. MORE PIZZA FOR YOUR BUCK. 39

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17. CURRENT SCENARIO. 40
18. FUTURE PROSPECTS. 42
19. EXPANSION PLAN. 43
20. MISSION STATEMENT. 45
21. ANEXURE. 46
22. SUGGESTION. 48
23. CONCLUSION. 49
24. BIBLIOGRAPHY. 50

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 INTRODUCTION

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

Major players in fast food are:

McDonalds
KFC
Pizza hut
Dominos pizza
Caf coffee day
Barista
Subway

The main reason behind the success of the multinational chains is their expertise in product development,
sourcing practices, quality standards, service levels and standardized operating procedures in their
restaurants, a strength that they have developed over years of experience around the world.

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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 form the rest 20%

Branded Pizza Market Share

Pizza hut
Dominos
Others

Other players mainly are

Smokin Joe's
Garcias
Papa johns
Us pizza
These players mainly give competition to pizza hut and dominos in tier I cities like Mumbai,
Bangalore, Chennai etc. They do not have much presence in tier ii cities.

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 Brief History of the Company, Dominos

The dominos brand was founded in the United States of America in 1960 by Thomas and James Monaghan.
Since then, that business has grown into a global network of over 8,500 pizza stores in more than 60
countries, involving over 2,000 franchises. Over its 49-year history, dominos has developed a simple
business model focused on delivering quality pizzas in a timely manner. Dominos pizza, Inc., completed its
initial public offering in 2004 and is listed on the New York stock exchange. (Source: dominos 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 franchise rights for Sri
Lanka and Bangladesh through its wholly owned subsidiary.

Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union territories (as on 31st
august 2009). According to the India retail report 2009,dominos are the largest pizza chain in India and the
fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of
stores.

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

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

The brand positioning of 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.

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 Brief History of the Company, 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 silvers under its umbrella. Pizza hut is the worlds largest pizza chain with over 12,500 restaurants
across 91 countries

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

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 Marketing Strategies

Pizza Hut

Adapting To Economic Environment

In 1991 under the guidance of a visionary Narasimha Rao and his comrade Manmohan Singh India marched

towards a new era of Liberalization, Privatization and Globalization. Trade barriers were eased and cultural

barriers started dissolving. It was at this juncture that pizza hut made its infant steps in India, with its first

outlet at Bangalore. Today Bangalore alone has a striking 19 outlets which remain busy till late night.

Pizza hut has 140 restaurants across 34 cities in India including metros. With its focus steadily on quality

and variety, pizza hut has given a new dimension to regular pizza eat-outs. However the trifle higher prices

may remain a concern for middle class Indians with lesser purchasing power and disposable income. The

status is steadily improving as more of us embrace fast foods to suit the pace of our life.

Embracing Technology

Locating stores and placing orders has never been easier for pizza hut locals. 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 worlds.

Dominos

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Adapting To Economic Environment

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.

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 tantalizing menu that attracts foodies around the

globe.

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 An analysis of the competitors of Pizza Hut & Dominos

WEAKNESS STRENGHT

SUBWAY Still adapting to Indian Kings of sandwich

taste markets
Expensive Customized
preparations

PIZZA CORNER Low investment in ad Variety

Delivery not Quality
satisfactory

KFC More of chicken, less scope for Variety masters of chicken

veggies

MCDONALDS Less variety Burger leaders

Fast service
More offers

PAPA JOHNS Expensive Excellent quality

Variety

CCD Concentrate more on Quality

beverages, less options Variety in beverages
for snacks
Expensive

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BARISTA Concentrate more on Variety in beverages
beverages, less option Quality
for snacks Excellent ambience
Expensive

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 SWOT Analysis

Strength

Dominos Pizza Hut

1. More outlets Even in smaller towns 1. Unmatchable quality and variety
2. Less than 30 minutes Home delivery 2. Strong Brand Image
3. Quick service at outlets 3. Customer Satisfaction
4. Customer Satisfaction 4. Hygiene
5. Low Price 5. Excellent Service
6. Excellent offers
7. Good promotion

Weakness

Dominos Pizza Hut

1. Lack of variety 1. Inadequate advertisements
2. Outlets lack safe 2. Inadequacy of outlets
3. Ambience not up to expectations 3. High price
4. No option for birthday parties and corporate 4. Lack of parking facilities at outlets
lunches

Opportunity

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Dominos Pizza Hut
1. Growing fast food market Scope for 1. Growing fast food market Scope for
expansion expansion
2. Introduce more varieties 2. Introduce attractive offers
3. Bigger outlets
4. Take away counters

Threat

Dominos Pizza Hut

1. Emergence of Papa Johns Worlds 1. Emergence of Papa Johns Worlds
#Pizza makers #Pizza makers
2. Better quality and variety of competitors 2. Low price points of competitors
3. No take away counters for Pizzas 3. No take away counters for Pizzas

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 Segmentation

PIZZA HUT DOMINOS

GEOGRAPHIC Region pizza hut outlets in Region dominos outlets in

different countries is a way of different countries is a way of

segmenting their market according segmenting their market according

to region and finding out potential to region and finding out potential

markets markets

City they also segment the cities City they also segment the cities

as class i, class ii, metros, small as class i, class ii, metros, small

towns towns.

DEMOGRAFIC Age under 10years, 10 to 18 Age under 13years, 13 to 21

years, 18 to 25 years, 25 to 40 years, 21 to 35 years, 35 to 50

years, 40+ years. Family income years, 50+ years. family income

middle class, upper middle class, lower middle class, middle class,

high class dual income earners upper middle class, high class

yes/no

PSYCHOGRAPHIC socio-economic class urban socio-economic class urban (a1,

a2, b1, b2, c, d)

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BEHAVIOURAL occasions birthdays, corporate Loyalty status low, medium,

lunches, marriages, parties, high

receptions loyalty status low, user status first time, regular,

medium, high user status first non-user

time, regular, non-user

Targeting
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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.

Push and Pull Strategies in Channel Marketing

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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.

Dominos: Pursuing A Push Strategy

Dominos pursues a medium push strategy in its channel marketing. The advertising layout for dominos is

minimal in India. Dominos concentrates on incentivizing customers instead off advertising and promotion.

As a result, dominos regularly introduces sell-in schemes (promotional schemes for dealers), promotional

coupon, festival offers etc.

Pizza Hut: Masters At Pull Strategy

Pizza hut follows more or less 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.

Pricing

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Pricing Of Dominos

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

used. For instance, Dominos sourced its Peperoni and Jalapeno needs from Australia and Spain respectively.

However, with competition increasing from Pizza Hut, Dominos introduced price cuts, discounts and

freebies to attract the customers. In 1998, Dominos introduced the Pizza Mania scheme where it offered a

large pizza for Rs.129/-. The demand was overwhelming and the company sold close to 5000 pizzas in the

first week of its launch.

During late 1998, both Dominos and Pizza Hut were trying to lure the customers with discount coupons by

issuingsuch coupons through several schemes. However, both Dominos and Pizza Hut were concentrating

more on data base marketing and below-the-line activities and special offers.

In India Dominos is trying to attract the middle class and lower middle class people who are interested to

spend their money on pizza but in low price. Those people are eager to go for an outing in any festival and

as a cheap family restaurant Dominos would be most preferable. They do not need high class ambiences or

amusement in the shop so the establishment cost is low for the dealers and the price of pizza is very

reasonable for the customer. Dominos do not have any fixed customer though they are one of the main

competitors of the Pizza hut.

The Dominos Pizza franchise constantly keeps on inventing ways through which it can make a greater

impact on the fast food market. That is how the fast food franchise came up with 'Fun Meal for Four' offer.

Through this method, the pizza franchise is able to produce more variety in the food delivered to its

customers at their door steps. Through its 'Fun Meal for 4 pack the Dominos Pizza India offers four pizzas

at the rate of Rs 180. This means charge of one pizza will be just Rs 45. This has helped the speciality food

franchise to enhance the strength of its customer base. Mainly offers are more attractive for the Dominos,

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

Pricing of Pizza Hut

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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 paydifferent 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.

First, this pricing strategy will help segment the market. Different groups of customers are willing to pay

different prices for the same product. The high/low pricing strategy will also create excitement.

In India Pizza hut is targeting the rich and higher middle class people with a great ambiences of enjoyment

and amusement. They are offering an organized restaurant system and demanding the higher price for the

pizzas. In the pizza hut different types of foods are available like appetizer, soup & salad, beverages, pasta

etc. So for the varieties kind of food the pricing strategy is different in the pizza hut. Their customers are

more or less fixed and they are price insensitive.

Creative Strategy

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Dominos

Kwality walls ice-creams in Dominos: for the 1st time Dominos started offering ice creams. Selling
ice cream in Dominos is also a new sales promotion strategy to attract more customer in a new
innovative way
Dominos has also come with PIZZA MANIA.

Pizza Hut

Pizza Huts 1st campaign in television in July 2001, which said, GOOD TIMES START WITH

GREAT PIZZAS. The ad was aired during all the important programmes on starplus, sony, star

movies, etc.

The 1st ad campaign on TV defines Pizza Hut as a brand, and what it offers to its existing and

potential customers.

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 Similarities of Dominos and Pizza Hut

Both claimed to have original recipe of pizza making.

Both customize their offerings ( though Pizza hut followed Dominos)

Both concentrated on database marketing.

Both introduced coupons, discounts and special offers.

Both used promotional campaigns involving customer directly.

Both wanted to establish themselves as a brand.

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 Dimension of comparison

Dimension of Dominos Pizza Hut

Comparison
Unique Selling 30-minute Home Dining Experience
Proposition Delivery Frame
(USP)

Market Penetrations a)Customizing the a)Redefining the

strategy recipe as per the recipes suiting the
Redefining their
Different Regions; Indian tastes
recipes No differentiation
then adding taste
factor. region-wise
b) Simplified b) No such provision

ordering system in Pizza Huts case.

c) Pace of growth
SINGLE toll free
was slow.
number. Juts 19 outlets in the
c) Very fast growth in
same period of time
terms of number of
outlets:
from 1(1996) to
101(2001)

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 Product Pizza - High Recipe redefining as
Localization; even per the Indian taste.
Following Dominos
based on different
regions. in localization.
Trendsetter in However; opened

localization. 100% vegetarian

restaurant.
Customization based
on
Religion Jain
City specific
Hyderabad(Halal
meat)
Price Initially high price; as Initially high price; as
key ingredients Pizza Hut offer
sourced from Comeback Value to
Australia and Spain. our customer
Competition with because of its USP
Pizza Hut resulted in Dining Experience.
Price cuts, discounts.

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 Promotion Introduce Pizza Campaign like Pan
mania in your Name
(Large Pizza Innovative Menu
Rs.129/-) Pizza Pooch menu
Discount coupons and Pizza Pooch
Tie-up with
Birthday Package
Discovery Channel One Rupee Pan deal
Co branding Barah nahin toh Tera
Direct Mailing and scheme
Pizza Training
Classes
Place Most robust and Not much focused on
efficient Supply supply chain; rather
Chain resulted in to focused on dining
reduce cost. Experience
Strategic set up of
commissaries for raw
material supply.
Tie up with real estate
consultant.
Targeting on non-
traditional outlets like
Corporate office,
railway stations,
cinema halls etc.

Product Line of Pizza Hut.

Pizza hut
Pastas
Sandwiches
30
 Thin crispy pizza
Stuffed crust pizza
Soups and Salad
Deserts
Beverage
Garlic Breads

31
Product Line of Domino's

Simple veg pizza

Regular pizza
Medium pizza
Large pizza
Cheese burst
Non-veg pizza
Garlic bread
Cheese garlic
bread
Garlic Breadsticks
Chicken wings
Beverages
Deserts

32
 Brand building through advertising

Domino's andPizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. In
August 2000, Domino's launched theHungry Kya?

(Are You Hungry) sequence of advertisements on television. A company official said,

We realized that aPizza couldn't be slotted it could be a snack; then again, it could also be a complete meal the only
definitive common link between Dominos

Pizzas and eating was the hunger platform. The launch of Hungry Kya? Campaign coincided withHunger
Helpline

. The helpline enabled the customers to dial a toll-free number (1800-111-123) from any place in India. The number
automatically hunted out the nearest Domino's outlet from the place where the call was made and connected
the customer for placing the order. The number also helped Domino's toad the customer's name, address and phone
number to its database. Dominos 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.

Promotional and advertisement campaigns

The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by
all pizza delivery chains to woo customers.

Since its inception, Dominos had been known for its unique promotions that included fast delivery and
innovations to cater to a varied palette.

Use of technologyonline 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

33
 Key Points of Pizza Hut
Type
- Wholly owned subsidiary
Founded
- Wichita, Kansas USA,1958
Headquarters
- Addison, Texas, USA.
Founder
- Dan & Frank Carney
Chairman & CEO
- Michael Gian.
Industry
- Restaurants
Slogan
-What are you celebrating today?
Employees
- 145,000
Website
-http://www.dominos.com/
Key Points of Dominos
Type
- Public (NYSE: DPZ)
Founded
- Ypsilanti, Michigan, U.S. (1960)
Headquarters
- Ann Arbor, Michigan, U.S.
Founder
- Tom Monaghan
Chairman & CEO
- David Brandon.
Industry
- Restaurants
Products Pizza
-Sandwiches
Pasta
Chicken wings
Desserts
Employees
- 145,000
Website
-http://www.dominos.com/

Concept of Pizza Hut

34
 Pizza Hut is split into several different restaurant formats; the original family-style dine-in locations;
store front delivery and carry-out locations; and hybrid locations that have carry-out, delivery, and
dine-in options. Some full-size Pizza Hut locations have a lunch buffet, with "all-you-can-eat" pizza,
salad, bread sticks, and a pasta bar. Pizza Hut has a number of other business concepts that are
different from the store type; Pizza Hut "Bistro" locations are "Red Roofs" which have an expanded
menu and slightly more upscale options.

An upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". At 50 US locations, the
Bistro is similar to a traditional Pizza Hut, except that new, Italian-themed dishes are on the menu,
such as penne pasta, chicken pomodoro, toasted sandwiches and other foods.[17] Instead of black,
white, and red, Bistro locations feature a burgundy and tan motif.[18] Pizza Hut Bistros still serve the
chain's traditional pizzas and sides as well. In some cases, Pizza Hut has replaced a "Red Roof"
location with the new concept. "Pizza Hut Express" and "The Hut" locations are fast
food restaurants. They offer a limited menu with many products not found at traditional Pizza Huts.
These type of stores are often paired in a collocated location with a sibling brand such as Wing
Street, KFC or Taco Bell, and are found on college campuses, food courts, theme parks, bowling
alleys, and in stores such as Target.

Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be found in the United
States and Canada; several exist in the UK, Australia, and Mexico. In his book Orange Roofs,
Golden Arches, Phillip Langdon wrote that the Pizza Hut "Red Roof" architecture "is something of a
strange object considered outside the realm of significant architecture, yet swiftly reflecting shifts
in popular taste and unquestionably making an impact on daily life. These buildings rarely show up
in architectural journals, yet they have become some of the most numerous and conspicuous in the
United States today."[19]

Curbed.com reports, "Despite Pizza Hut's decision to discontinue the form when they made the shift
toward delivery, there were still 6,304 'traditional units' standing as of 2004, each with the shingled
roofs and trapezoidal windows signifying equal parts suburban comfort and strip-mall anomie." This
building style was common in the late 1960s and early 1970s. The name "Red Roof" is somewhat
anachronistic now, since many locations have brown roofs. Dozens of "Red Roofs" have closed or
been relocated or rebuilt.[20]

Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and sometimes an
arcade. In the mid-1980s, the company moved into other successful formats including delivery or
carryout and the fast food "Express" model.

35
 Concept of Dominos

Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company, The Company
was incorporated in 1995 and initiated operations in 1996, The Company got listed on the Indian
bourses in February 2010, Mr., Shyam S, Bhartia, Mr., Hari S, Bhartia and Jubilant Enpro Private
Ltd, are the Promoters of the Company. The Company & its subsidiary operates Domino's Pizza
brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka, The Company is India's
largest and fastest growing food service company, with a network of 500+ Domino's Pizza
restaurants
Restaurants (as of 31st March, 2012) The Company is the market leader in the organized pizza
market with a 54% market share (Euro monitor Report 2010) and 70% share in the pizza home
delivery segment in India, The Company has strengthened its portfolio by entering into an agreement
with Dunkin' Donuts Franchising LLC, for developing the Dunkin' Donuts brand and operating
restaurants in India,
Over the period since 1996, Dominos Pizza India has remained focused on delivering great tasting
Pizzas and sides, superior quality, exceptional guest care and value for money offerings. We have
endeavored to establish a reputation for being a home delivery specialist capable of delivering pizzas
within 30 minutes or else FREE to a community of loyal consumers from all our restaurants around
the country.
Dominos vision is focused on Exceptional people on a mission to be the best pizza delivery
company in the world!" We are committed to bringing fun, happiness and convenience to lives of our
consumers by delivering delicious pizzas to their doorstep and our efforts are aimed at fulfilling this
commitment towards a large and ever-growing guest base.
Dominos constantly strives to develop products that suit the tastes of our consumers and hence
delighting them. Dominos believes strongly in the strategy of Think global and act local. Thus,
time and again we have been innovating with delicious new products such as crusts, toppings and
flavours suitable to the taste buds of Indian Consumers. Further providing value for money and
affordable products to our consumers has been an important part of our efforts. Our initiatives such
as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an affordable
and value for money meal option.
Dominos believes that when a box of pizza is opened, family and friends come together to share the
pizza. Hence, our brand positioning:Yeh Hai Rishton Ka Time
Thats why, all our efforts, whether it is a new innovative and delicious product, offering consumers
value for money deals, great service, countrywide presence or the promise to deliver in 30 minutes or
free are all directed towards making relationships stronger, warmer and more fun by giving
consumers an opportunity to get together, catch up, reunite and spend more time together.

36
 Menu of Pizza Hut

Menu of Dominos

Success Factors

Pizza Hut
37


Offering value
food
Moving beyond metros
Developing the local supply chain

38
 Good ambience
Offering more than the international menu
Aggressive marketing and tie-ups with local and popular brands

Dominos
Door step services.
Low pricing
Customer satisfaction
Great offers

39
 Current Scenario

Dominos Pizza Hut

Product Pizza with promise Casual dining

of fast delivery experience as well as
Offers mainly Pizza
40
 along with pasta, fast delivery (PHD
cakes and few other & Restaurants)
Also offers a wide
side dishes
Mainly focused on variety of
pizza pasta,salads, soups,
desserts, beverages
etc.
Less than 50% of
sales is from pizzas
Price Concentrates mostly Starts from lower
on the lower to end and goes up to
middle band an upper end
Caters mainly to Caters to many price
price sensitive and taste segments
Lowest offering is at
segment.
Lowest Offering is at Rs. 44
Rs. 39
Promotion Coupons Coupons
Bundling Bundling
Offers Offers
Encourage online Encourage online
ordering ordering

41
 Place 500 stores across 121 stores across 34
110 cities cities
Conveniently located Located at places
for fast delivery where people visit
Encourages online
more for leisure
ordering
(Casual Dining)
Opened PHD for
catering to home
delivery
Also encourages
online ordering

Future Prospects

PIZZAHUT

Pizza Hut is all set to undergo a change of positioning in the Indian market. The fast food retail chain
plans to shift its focus from pizzas to full meals and 'treat bundles'. In the process, the group is set to
change its punch line from "Good Time, Great Pizzas" to "Treat You Just Can't Beat. Arvind
Mediratta, chief marketing officer of Yum Restaurants International for the Indian subcontinent, told
ET, "Treats play a significant role in our day-to-day life.
Also Pizza Hut, the flagship brand of Yum! Brands Inc., plans to launch 40 more restaurants across
the country

Dominos

Domino's Pizza is looking at opening 150 outlets throughout the Asia-Pacific region, including 15 in
Malaysia by year-end.
42
 The company is looking for master franchise to open up its chain of food businesses in Hong Kong,
Bangladesh and Sri Lanka, in where it has yet to have a presence.

Dominos Pizza is planning to use a remote-controlled helicopter the DomiCopter to deliver food.
Resembling a Call of Duty-style UAV, but with pizzas instead of machine guns, the DomiCopter is
set to take the pizza delivery world by storm.

Expansion Plans

Pizza Hut

Future plans According to Yum! Restaurants International, India is amongst the top five growth markets for
Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident about
expanding its operations in India. Pizza Hut hopes to increase the number of Pizza Hut outlets in India to
130 by the end of 2005 from the present figure of 95. The expansion programme will make Pizza Hut the
fastest growing western restaurant chain in India. In addition, Yum! Plans Pizza Hut to be in 35 cities by end
of 2005, and 55 cities by end of 2006. Pizza Hut India; Yum! Restaurants International:

AT A GLANCE

Pizza Hut: Serving from 95 outlets in 24 cities of India. US$ 25 million investment

A major player in the Indian fast food and beverage sector, holding about 50 per cent of the organized
pizza market

Factors for success: Offering value food. Moving beyond metros. Aggressive marketing and tie-ups with
local and popular brands. Developing the local supply chain. Customizing product offerings

For Pizza Hut, India is: one of the top 5 growth markets worldwide

Future plans, India: presence in 35 cities by 2005, 55 cities by 200

43
Dominos

In May 2001, Pavan Bhatia, CEO, Domino's Pizza India Ltd. (Domino's) stepped down from his
post. Earlier, in March 2001, at a board meeting, Domino's top management concluded that 'Pavan
Bhatia's performance during his 18-month tenure was not up to the mark.' The board felt that
Pavan Bhatia had initiated an expansion strategy that was 'reckless and not properly thought out.'
However, many analysts did not agree with the board's conclusion. They felt that the board was not
considering the possible long-term benefits of Pavan Bhatia's strategy. During March 2000-January
2001, Pavan Bhatia opened Domino's outlets in small towns and cities. Pizza consumption in these
places was very low. Analysts felt that even those willing to opt for the product found the price
unacceptable. The cost per meal was too high. In September 2001, due to low footfalls and lower
volumes, Hari Bhartia planned to shut down Domino's outlets not only in some small cities but
also a delivery outlet in the wealthy Gujranwala Town in North Delhi. One of the two outlets in
Ludhiana was also planned to be shut down. (Refer Exhibit I for post Pavan Bhatia strategy of
Domino's)

Sky is the Limit

In November 1999, Pavan Bhatia took over as the CEO of Domino's. He seemed to be very ambitious and
wanted to make Domino's the largest fast-food chain in India. Pavan Bhatia went about opening Domino's
outlets across the country. The number of outlets multiplied four fold to 100 between March 2000 and
January 2001. It was the fastest growth Domino's had in any of the 63 countries it operated in. From an

44
average of four stores every year in its first four years of operation, Domino's expanded to more than 100
outlets in 10 months across 30 cities.

Domino's entered into an agreement with a real estate consultant CB Richard Ellis to help with locations,
conduct feasibility studies, and manage the construction. Pavan Bhatia said, "We are in the business of
selling pizzas, not hunting for real estate. And one of the biggest impediments in retailing is real estate, so
we decided to hand over the entire real estate operations to estate consultants CB Richard Ellis." Pavan
Bhatia realized that fast track growth could be achieved only by focusing on the core business of selling
pizza.

45
 Annexure

Questionnaire

Name: Gender: M / F

E-mail ID: Mobile No. :

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

d) Above 40

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

Q1. How often do you visit Pizza Hut?

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

Q2 which brand you prefer the most?

(i) Pizza Hut (Ii) Dominos (Iii) Other

Q3. Through which media you are getting information about Pizza Hut?
(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Others

Q4. Would you try a new food item launched Pizza Hut?
(E.g. Conniza,Freshizza)
(i) Yes (ii) No
Q5. Specify your satisfaction with Pizza Hut according to the Quality?

Parameter Excellent Good Average Poor

46
Quality

Q6. Specify your satisfaction with Dominos according to the Quality?

Parameter Excellent Good Average Poor

Price

Q7. Specify your satisfaction with Dominos according to the Service?

Parameter Excellent Good Average Poor

Service

Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.

Name Quality Service Ambianc

e

Pizza
Hut

Domino
s

Pizza
Corner

Papa
Johns

Suggestions

47
Dominos

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

of customers.

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

basic amenities

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

respect to the restaurant environment and ambience

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

good quality restaurants

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

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

Pizza Hut

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

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

increase the elasticity of demand greatly

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

more discounts to tap more customers

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

Conclusion
48
Pizza Hut has many targets which it has achieve in a given period of time. The time-period 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 price-sensitive. The price was attributed to the high quality of ingredients used. For
instance, Dominos sourced its Peperoni and Jalapeno needs from Australia and Spain respectively.
However, with competition increasing from Pizza Hut, Dominos introduced price cuts, discounts
and freebies to attract the customers. In 1998, Dominos introduced the Pizza Mania scheme where it
offered a large pizza for Rs.129/-. The demand was overwhelming and the company sold close to
5000 pizzas in the first week of its launch. 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.

49
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