INTRODUCTION

 Until 1996 Pizza in India was synonymous

only a bread dough base slathered with some
ketchup.
 Dominos and Pizza Hut, the two US fast food
chains entered India in 1996.
 Dominos entered India in 1996 through a
franchise agreement with Vam Bhartia corp.
They opened their first outlet in Delhi.
 Pizza Hut also entered India in 1996. They
had four company owned franchisees-
Universal Restaurants Pvt.
Ltd(Delhi,UP,Rajasthan), specialty
restaurants Pvt. Ltd. (Punjab), Dolsel
Corporation (Gujrat, Karnataka, and Andhra
 MARKET SHARES
1999
PIZZA CHAIN MARKET SHARE
Pizza Hut 46.42
Domino’s 21.69
Others 31.91

2000
PIZZA CHAIN MARKET SHARE
Pizza Hut 18
Domino’s 70
Others 12
POSITIONING WARS

V
S
 POSITIONING WARS
(Cont..)
 Domino’s had grown from 1 outlet in 1996 to
101 outlets in April 2001.
 Pizza Hut too, which began with just a single
outlet in 1996 had 19 outlets in 2001.
 Domino’s introduced an integrated home
delivery system from a network of company
outlets within 30 minutes of the order being
placed.
 Pizza Hut laid more emphasis on its
“restaurant dining experience.” It positioned
itself as a family restaurant and also
concentrated on wooing kids.
 LOCALIZING THE MENU
 Domino’s introduced nine new toppings for
pizzas. Different flavors were introduced in
different parts of India.
 EAST- Deluxe Chicken with Mustard Sauce and
Sardines.
 SOUTH- Mutton Ghongura and Chicken
Chettinad.
 WEST- Chicken Pudina.
 NORTH- Butter Chicken, Makhani Paneer, and
Chatpata Chana Masala.
 Soon Pizza Hut followed Domino’s and
offered customized Spicy Paneer and Chicken
Tikka topings.
 Pizza Hut also opened a 100% vegetarian
restaurant at Ahmedabad. In Hyderabad a
 PRICING AND
PROMOTIONAL WARS
PIZZA PRICE COMPARISION
COMPANY PRICE RANGE (Rs.)

Domino’s 39-265

Pizza Hut 75-350

 Domino’s was spending 50% of its total
marketing budget on special offers and
discounts along with delivered direct mailers
and pizza training class.
 Domino’s introduced the Pizza Mania Scheme
where it offered a large pizza for Rs.129/-.
Close to 5000 pizzas were sold in the first
week.
 Domino’s had a tie up with Discovery
Channel.
 In march 2000 Domino’s slashed the prices of
pizza by 40%. They also ran new schemes
later. In late 2000, it revamped its entire
supply chain operations.
 Pizza Hut launched promotional campaign in
1998. It had a ‘Pan In Your Name’ contest.
 In April 2000, Pizza Hut launched its
innovative Pooch Menu and a Pizza pooch
Birthday Party package exclusively for the
age group 6-10.
 In October 2000 Pizza Hut launched ‘one
rupee pan deal’ scheme. One month later
they introduced another scheme called ‘barah
nahi to tera’.
 BRAND BUILDING
THROUGH ADVERTISING
 Domino’s and Pizza Hut initially restricted their ad
strategy to banners, hoardings and specific
promotions.
 Domino’s launched the ‘Hungry Kya?’ campaign.
Domino’s had a tie up with MTNL for the ‘hunger
helpline’. The helpline enabled customers to dial a
toll-free number from any place in India.
 Pizza Hut launched a campaign which said ‘Good
times start with great pizzas.’
 Pizza Hut’s advertisement were shown during all
important programs on star Plus, Sony Max, HBO,
MTV, AXN and Star Movies.
 Pizza Hut planned to spend Rs. 70-75 million on
the ad campaign in 2001.
 GOING PLACES
(LITERALLY)
 By March 2000, Domino’s opened 37 outlets all
over India.
 Between April 2000 and February 2001, Domino’s
set up 64 more outlets in India.
 Domino’s has the largest retail network in the fast
food segment in India-with 101 outlets across 40
cities.
 Domino’s had opened an outlet at Infosys in
Bangalore, PVR in Delhi and New Empire in
Kolkata.
 By January 2001, Pizza Hut had 19 outlets across
India. They expanded further by opening 5
restaurants in Mumbai and 30 restaurants across
major cities in India.
 In March 2001, Pizza Hut opened its first 3
storeyed 125-seater dine in restaurant at Juhu,
Mumbai.
 QUESTIONS FOR
DISCUSSION
1. Domino’s entered India at a time when Pizza
Hut and McDonald’s were already in the
market. What was the strategy adopted by
Domino’s to make a dent in the Indian
market?

 Localising the menu

 Pricing strategy
 Delivery System
 Database Marketing
2. ‘Database Marketing was an important part
of the strategy in the pizza industry.’
Comment.

 Database is very helpful

 Customer records
 Loyal customers or repeat customers
information
 Customer Preferrences
3. Though Pizza Hut entered India before
Domino’s, it eventually lost its share to
Domino’s. How can Pizza Hut counter the
competition from Domino’s?

Pizza Hut can counter competetion from

Domino’s by attacking on the strengths of
Domino’s:
Delivery System, Pricing, Local Menu, Database
marketing
And also by roping in extras like:
Extra value for money, Customer
 GROUP MEMBERS
 ANJAN ROY
 PAWAN KHANDELIA
 SHUBHAM DIXIT
 SIMPI BANSAL
 PIYUSH SINGH