Академический Документы
Профессиональный Документы
Культура Документы
ON
Submitted
By:
Mrs. OROOJ SIDDIQUI
SHAHRUKH BILAL
B.B.A.
III Year
Roll No. :-0900129042
ACKNOWLEDGEMENT
We of BBA IIIrd year would like to convey my humble and kind
regards to our mentor Mrs. Orooj Siddiqui who guided us in making our
project. Without her constant guidance this onerous work would not have
been possible.
The industry which we have taken for research is hospitality. The hospitality
industry covers a wide range of organizations offering food service and
accommodation. The hospitality industry is divided into sectors according to
the skill-sets required for the work involved. Sectors include accommodation,
food and beverage, meeting and events, gaming, entertainment and
recreation, tourism services, and visitor information.
I am extremely grateful to the entire team of Dominos & Pizza Hut who
have shared their expertise and knowledge with me and without whom the
completion of this project would have been virtually impossible.
This project report on Comparitive Analysis between two brandsDominos & Pizza Hut focuses on the environmental establishment of fast
food industry in India I am also indebted to the executive manager of both
Pizza Hut, Dominos & my friends for their unfailing cooperation during the
course of this project.
Thank You
TABLE OF CONTENT
S.N
Topic
Page No.
o
1
EXECUTIVE SUMMARY
INTRODUCTION
A) Company Profile
B) History
C) Mission.Core Values
D) Organization Chart
MARKETING ANALYSIS
QUESTIONAIRE
FINDINGS
CONCLUSION
SWOT ANALYSIS
COMPARITIVE ANALYSIS
10
SUGGESTIONS
11
ANNEXURE
12
APPENDIX
Signature
EXECUTIVE SUMMARY
During the past four decades Dominos and Pizza Hut has built a reputation for
excellence that has earned the respect of consumers and industry experts alike.
Building a leading company like Dominos and 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 Dominos and pizza hut business through more than four decades of
success. Through the strength of its heritage, its culture and its people and
franchisees, Dominos and Pizza Hut looks forward to more success in future.
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 and Dominos has different targets set to them and they have
adopted different strategies to successfully achieve the targets set.
This report presents an in-depth business, strategic and marketing analysis of
Dominos Corporation and pizza hut. The report provides a comprehensive insight
into the companies, including business structure and operations, major strategies
and key competitors. The hallmark of the report is the detailed marketing research
and analysis on the company. The research is done with predefined objectives and
aims, with a proper designed procedure in order to carry out the research work
efficiently and effectively. The report also enlightens the SWOT (Strength,
Weakness, Opportunities and Threats) Analysis of the companies so as to examine
the companies key business structure and operations, history and products, and
provides summary analysis of their key revenue lines and strategy.
INTRODUCTION
The industry which we have taken for research is hospitality. The hospitality
industry consists of broad category of fields within the service industry that
includes lodging, restaurants, event planning, theme, transportation, cruise line,
and additional fields within the tourism industry. The hospitality industry is a
several billion dollar industry that mostly depends on the availability of leisure
time and disposable income. A hospitality unit such as a restaurant, hotel, or even
an amusement park consists of multiple groups such as facility maintenance, direct
operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.),
management, marketing, and human resources.
The hospitality industry covers a wide range of organizations offering food service
and accommodation. The hospitality industry is divided into sectors according to
the skill-sets required for the work involved. Sectors include accommodation, food
and beverage, meeting and events, gaming, entertainment and recreation, tourism
services, and visitor information.
6
Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs of Mumbai are
the areas attracting international investment and as expected, are the cities with the
largest development pipelines. Combined, these cities account for 89 of the 161
projects in the pipeline and 16,734 guestrooms, which is 68% of the rooms in
India's total pipeline.
restaurants also offer take-out and food delivery services. Fast food chain vary
greatly in appearance and offerings, including a wide variety of the main
chef's cuisines and service models.
The topic of our research is Comparative analysis between two brands- Dominos Vs
Pizza Hut.
It all started in the year 1960, when two brothers named Tom and James Monaghan
bought a small pizzeria in Michigan by the name of Dominicks Pizza. They
bought it for $500 and gave a down payment of $75. After 8 months, James quit
and traded his shares with his brother for a second hand Volkswagen car. This led
Tom to revitalize the image of the eating joint and name it Dominos Pizza.
In the year 1968, a fire destroyed the companys headquarters. In the year 1975,
another hindrance came in the form of a trademark-infringement lawsuit by
Amstar, the maker of Domino sugar. Despite these obstacles, Dominos Pizza
expanded as a brand and in 1978, the 200th Dominos Pizza franchise was opened.
Before the end of the seventies, there were over 200 franchises of Dominos Pizza
in US and it started to prepare to launch itself on an international scale.
In the year 1983, Dominos Pizza opened its first international franchise at
Winnipeg, Manitoba, Canada. This was a major step in decentralizing its
operations. By the end of 1983, it also opened another franchise at Brisbane,
Australia. Yet another milestone in that year was the opening of the 1000 th
Dominos Pizza outlet. From here on, the number of Dominos Pizza franchises
increased quickly all over the world.
Despite international recognition, Dominos Pizza primarily remained as a
traditional fast food joint. It had a very simple menu and only sold one type of
pizza crust that was named the regular pizza. The pizza dough was shaped by
tossing it in air and pulling it into shape. Only two sizes of the pizza dough existed
before they added medium and extra large owing to growing competition. There
9
was absolutely no concept of side dish and side others and the only beverage that
was available with it was Coca Cola Classic.
This traditional outlook of Dominos was changed in 1989, when the Deep Pan
Pizza was introduced. The company was being forced to change according to the
market demand. This in fact consolidated the financial base of the brand and also
ensured further growth of Dominos Pizza as a brand. The move to change the
menu and add items that was preferred by general public made it popular among
many and that year, Dominos Pizza opened its 5000 th store. Till this time, Dominos
rigorously marketed their brand and made it popular all over the world.
Company History
Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the
history of Dominos Pizza is similar to its rival Pizza hut; two brothers started it
with borrowed equity in the sixties. Tom and James Monaghan bought a small
Michigan Pizzeria called Dominick's, which was jointly run by them until James
traded his share for a second hand car. Tom revitalized the image by changing the
name to Dominos Pizza .
10
By the late seventies there were over 200 franchise pizza businesses in the States
and Dominos Pizza was ready to go International. In 1983 Dominos Pizza opened
its doors in Winnipeg, and in the same year opened its one thousandth store. Later
that same year Domino's corporate history was to begin in Australia with its first
franchise in Brisbane, on the East coast.
The locations for Dominos Pizza grew quickly from here as they sprung up in all
sorts of diverse places including Bogot. Despite Domino's Pizza springing up
diverse locations, they were still a very traditional company. Domino's Pizza
menu had been kept very simple and streamlined; they only sold one type of pizza
crust which they named the regular pizza. Domino's Pizza dough was shaped by
tossing the dough and pulling it into shape. The pizza menu included just two sizes
of dough, it was not until much later that competition forced them to add a medium
and extra large sized pizza. There were no such things as side orders you could
have Pizza, pizza or Pizza and you could only drink a Coke with it.
MILESTONE
Like most corporate success stories, Domino's started out small - with just one
store in 1960. Now, Domino's Pizza is celebrating over forty years of delivering
food, fun and innovation.
1961 -James trades his half of the business to Tom for a Volkswagen Beetle.
1965-Tom Monaghan is sole owner of company, and renames the business
"Domino's Pizza, Inc."
1967-The first Domino's Pizza franchise store opens in Ypsilanti, Michigan.
1968-Company headquarters and commissary are destroyed by fire. First Domino's
store outside of Michigan opens in Burlington, Vermont.
1975-Amstar Corp., maker of Domino Sugar, institutes a trademark infringement
lawsuit against Domino's Pizza.
1980- Federal court rules Domino's Pizza did not infringe on the Domino Sugar
trademark.
1983-Domino's first international store opens in Winnipeg, Canada. The 1000th
Domino's store opens. The first Domino's store opens on the Australian continent,
in Queens land, Australia.
1990-Domino's Pizza signs its 1,000th franchise.
199 -Domino's rolls out Breadsticks, the company's first national non-pizza menu
item.
1998-Domino's launches another industry innovation, Domino's Heat Wave, a hot
bag using patented technology that keeps pizza oven-hot to the customer's door.
12
2000-Domino's Pizza International opens its 2,000th store outside the United
States.Domino's Pizza celebrates 40 years of innovation and delivering pizza to
homes around the world.
2006-Dominos Pizza introduces Brownie Squares warm, delicious, bite-sized
brownies delivered with a fudge dipping sauce.
2007- Dominos rolls out online and mobile ordering
2010- Redefines it menu
13
Dominos in India
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 USA.
Moreover, the company holds the master franchisee rights for Sri Lanka and
Bangladesh through its wholly owned subsidiary. Mr. Shyam S. Bhartia and Mr.
Hari S. Bhartia of the Jubilant Organosys Group were the promoters of the
company.
Since inception, Domino's Pizza India Ltd. has proceeded to become one of the
largest and fastest growing international food chains in South Asia. The first
Domino's Pizza store in India opened in January 1996, at New Delhi. Today,
Domino's Pizza India has grown into a countrywide network of over 165 outlets in
33 cities and is the leader in the fast food delivery segment.
14
Organization Structure
15
rTFlSeiRCwmanoMcdstAubgq
PIZZA HUT ORGANIZATION PROFILE
16
Pizza Hut Inc. is the largest pizza restaurant company in the world in terms of both
the number of outlets and the percentage of market share that it holds. A subsidiary
of PepsiCo, Inc., the company oveRsees more than 11,000 pizza restaurants and
delivery outlets in 90 countries worldwide. In October 1997, the company expected
to become a subsidiary of Tricon Global Restaurants, Inc., formed from the spinoff of PepsiCo's restaurant holding.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
collocated location with a sibling brand such as Wing Street, KFC or Taco Bell,
and are also found on college campuses, food courts, theme parks, and in stores
such as Target.
Company History :
The history of Pizza Hut began in 1958 when Frank and Dan Carney opened the
first store in Wichita Kansas. Frank and Dan were brothers and best friends. In
1958, they asked their mother to borrow 600.00 and they successfully started the
now world renowned restaurant called Pizza Hut. The brothers decided that they
wanted the word pizza in the name of the restaurant and since the place itself
reminded them of a hut, they came up with Pizza Hut. They based their business on
quality and customer service and proved to succeed with both.
In 1964, the brothers decided to change the look of Pizza Hut and they erected the
buildings that are universally recognized and related to the Pizza Hut name. In
1970, the history of Pizza Hut made a huge move. Pizza Hut was now publicly
17
traded on the New York Stock Exchange. In 1973, Pizza Hut opened its first doors
off of American soil. Japan, England, and Canada all housed the first of the
international Pizza Hut businesses. In 1977 a huge company named PepsiCo
merged with Pizza Hut and Frank Carney still remained the leader even with the
merged companies. He decided in 1980 it was his time to leave and pursue other
personal goals and opportunities. By 1986, there were one hundred restaurants in
the United Kingdom and five thousand establishments worldwide. The business
was really starting to flourish after pan pizza got introduced six years earlier.
The early 90's consisted of many delivery and restaurant stores opening throughout
the United Kingdom and Russia. In 1994 there were over ten thousand Pizza hut
open for business worldwide. In 1997, PepsiCo decided to focus solely on their
drinks business (Pepsi) which resulted in the foundation of Tricon Global
Restaurants. Tricon Global Restaurants is known today as the largest restaurant
brand in the World. Sicilian pizza was also launched in the United Kingdom in
1997 and proved to be a huge success. In the year 2000, Pizza Hut introduced a
new type of pizza called The Edge. This pizza was very unique and unlike any
other pizza available. It was a thin pizza with toppings all the way around the edge.
The history of Pizza Hut made a big step forward in 2003 when it was made public
that 500 restaurants were now open in the United Kingdom employing a total of
over 20,000 people. In 2004 the Big New Yorker Pizza was introduced to the
public which proved to be yet another successful and desirable pizza. 2005 brought
18
the launch of the bigger and larger 4 for All pizza. Just this year Pizza Hut came
out with their garlic crusted pizza and a larker 4 for all.
Pizza Hut can now be found in 17 different countries and all of the United States.
The company has became a world recognized symbol of good pizza.
1958- Frank and Dan Carney open the first Pizza Hut in Wichita,
Kansas.
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-PepsiC o bought Pizza Hut.
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.
19
The Pizza Hut franchisee stepped into the Indian fast food market by opening a
dine-in restaurant at Bangalore in 1996. The pizza franchise soon expanded itself
in India and now has the KFC brand beneath its umbrella. The fast food franchise
was the first international fast food firm to make an entry into the Indian scene and
has thus pioneered the Indian pizza market. there are 146 restaurants across 36
cities in India.
The menu provided at the Pizza Hut franchise is that of a complete meal.
Customers are considered as honored guests at the fast food franchise and are
treated accordingly .The fast food franchise also ensures that it adds an Indian
touch to all the varieties of pizzas that it makes available to Indian customers.
Various delicious combinations are tested at the Indian Pizza Hut franchisee outlets
by blending the original menu with Indian favorites to make fresh salads, garlic
based breads, soups, yummy pastas and delicious desserts.
The employees of the restaurant support centre of the Pizza Hut fast food
franchise which functions in New Delhi works hard to place Pizza Hut at the top of
21
Indian market. The support centre takes care of finance, legal and marketing sides
of the Indian operations of Pizza Hut franchisees .
Pizza Hut In Luck now:
SAHARAGANJ MALL
M.G.Road Luck now
WAVE MALL
standards. The role is also to assist the manager in ensuring that all the team is
recruited and trained to meet all quality and product standards
.
Restaurant General Manager
The Restaurant General Manager has a responsibility for the running of the
restaurant, managing the business as if it were their own: managing the financial
side, product ordering, production, quality monitoring, customer service and
training and development of staff.
Restaurant General Managers can progress on to become Area Managers who
manage ten restaurants or more.
RESEARCH OBJECTIVE
(i) To find out the market strategies of both the brands.
Pricing Strategy
Placing Strategy
Promotional Strategy
Product Strategy
(ii)To find out the how food chain are increasing & dominating the restaurant
market in India.
(iii)
Dominos.
(iv)
(v) To find out the items they both offer to attract the customers.
23
RESEARCH METHODOLOGY
The activities of market research include defining marketing opportunities and
problems, generating and evaluating marketing ideas, monitoring performance, and
understanding the marketing process. The methodology of the study included
selection of sample, study/survey of library references, collation and compilation
of the primary and secondary data and information obtained through structured
questionnaires, open ended interview. The method of research was deductive as
conclusion would be drawn after the analysis and interpretation of data collected.
.Data Collection
We have collected two types of Data
a. Primary Data through Questionnaire and interaction
b. Secondary Data through internet, articles, magazines etc.
24
Research Methodology :
Research Design:
The techniques used for research is Exploratory Research.
Research Tool :
Questionnaire and interaction( I have also met Mr. Vinod , the manager at
Dominos)
Through internet, articles, magazines etc.
Sampling Plan :
Area Covered : LUCKNOW
Aliganj
Size : 50 Questionnaires From Customers
25
DATA ANALYSIS
Marketing Practices
Dominos in India
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 USA.
Moreover, the company holds the master franchisee rights for Sri Lanka and
26
Bangladesh through its wholly owned subsidiary. Mr. Shyam S.Bhartia and
Mr.Hari of the Jubilant Organosys Group were the promoters of the company.
Since inception, Domino's Pizza India Ltd. has proceeded to become one of the
largest and fastest growing international food chains in South Asia. The first
Domino's Pizza store in India opened in January 1996, at New Delhi. Today,
Domino's Pizza India has grown into a countrywide network of over 165 outlets in
33 cities and is the leader in the fast food delivery segment. Their home delivery is
free with a guarantee of Thirty Minutes Nahi to Free. Although they are expert in
delivering Pizzas on time, their eating joints and outlets are also good. We plan to
have a total of 500 stores in 75-80 cities by 2010 to 2011. It would entail an
investment of Rs 200 million during the period
MARKET STRATEGIES
27
28
After segmenting the market, finding the target segment and positioning itself,
each company needs to come up with an offer. The 7 Ps used by Dominos are:
1.Product
2.Place
3.Price
4.Promotion
5.People
6.Process
7.Physical Environment
PRODUCT MIX :
29
S
C
K
S
C
C
B
C
C
F
G
D
P
M
F
D
C
M
o
o
p
a
a
i
u
V
e
h
n
o
e
s
c
e
i
h
h
a
h
c
i
e
r
i
y
c
P
c
k
e
B
h
&
o
i
M
D
h
C
k
e
x
n
i
a
i
c
d
P
z a a
C
h
C a
h n
bP
ea
k M e
en
e
G n
a
i c
e a
qs
x
D r
I
k
e
t u
s
a
i
l ei
c
c
tC
I
l
t
n
e
e
a
i
n
gB
hr
l
W
a
l
W
e t
l
i i ac
D
c
R
s
n
n
i
eo
t
o
o
g
p
nk
d
f
h
n
n
i
a
r
i
L
k
a
s
v
i
i
p
e
p
S
t
C
a
e
H
S
e
e
P
x
e
y
e
l
y
h
e
e
r
V
p
g
r
m
r
e
t
h
r
b
u
u
e
p
s
r
e
g
n
G
e
e
a
s
e
A
e
e
i
T
d
r
e
o
m
n
a
H
t
o
o
u
P
s
Co- Branding
Dominos has major tie-ups with various companies as their co- branding Strategy
Coca-Cola
Fanta
Sprite
PRICING STRATEGY:
30
Dominos follows a pricing policy that is determined based on the economy of the
country. The pricing policy of Dominos gives a competitive advantage to the
company over its competitors.
The price discounts available to the customers are used as a tool to
attract customers into the store.
Dominos also follows seasonal pricing in order to attract customers
and to keep an edge over its competitors.
The company also has special discounts on bulk purchases.
Value Ladder strategy:
Value Pricing.
Pizza mania Rs 39
Veg pizza( regular) starts from Rs 75 to Rs.150
Veg pizza( medium) starts from Rs 150 to Rs270
Veg pizza( large) starts from Rs 285 to Rs 430
Non-Veg pizza( small) starts from Rs 105 to Rs 190
Non-Veg pizza( medium) starts from Rs 215 to Rs315
Non-Veg pizza( large) starts from Rs 375 to Rs 485
Beverages Rs 25-50(600 ml) ( a little costly)
Side orders start from RS 17 to 99
Desserts Rs 55
They offer coke at just Rs 15 with any pizza mania combo/large/medium
pizza plus garlic bread sticks
31
PROMOTION
Believe that the strength of Dominos Pizza brand makes one of the first choices of
consumers seeking a convenient, quality and affordable meal. They intend to
continue
to
promote brand name and enhance reputation as the leader in pizza delivery
Dominos use advertising, sales promotion, including promotional
education, publicity, and personal selling for promoting his
services.
Domino's is also undertaking a brand positioning with launch of a Rs 6 crore
advertising and marketing campaign over next three months.
1) Pizza Order Discount: Dominos offers its customers a number of discount and
other promotions on purchasing Dominos pizza.
2) Advertising : It is done in following ways
Online Advertising
Greater integration across all media channels for the new menu launch in February
2009
helped increase Dominos presence in online advertising which resulted in great
proling
opportunities for online ordering capabilities. All Dominos banner advertising,
including
the
32
successful Choc Lava Cake banner, includes a click through function enabling
customers
to
their
store,
without
having
to
remember
individual
store
numbers
are
connected to their nearest store. If their number is not registered, Dominos Pizza
technology
will triangulate the customers co-ordinates and ask whether they would like to
order
from
their nearest store or request the post code for the store they would like the delivery
made to.
33
Packaging
Pizza and side order boxes account for most of the packaging used by Dominos
Pizza, although some small items such as dips and desserts are packaged in other
materials. This fact sheet focuses on Dominos Pizza box packaging
Design
Nearly 38 million pizza boxes are used by Dominos Pizza in a year, each
one bearing the
unique Dominos red, blue and white logo.
The most important design elements are those that help keep the pizza ovenhot and fresh. A layer of corrugated paper encapsulated by
board forms the main body of the box packaging and provides insulation.
Each box is also punctuated with small ventilation holes to allow steam to
escape, preventing the pizza from becoming soggy .
Campaigns
In 2007 it launched the campaign, You Got 30 Minute, which built on the
Companys 30-minute delivery heritage.
In 2007 and 2008, each domestic stores contributed 4% of their retail sales
to advertising
PLACE :
34
Dominos Pizza stores are established in almost 50 countries and they have
got
more
Dominos
stores
are
centrally
located
and
in
manner
convenient for the people to walk in and also convenient for the deliverers to
do their job.
The distribution channel followed by the company is mostly through
takeaways, telephone ordering, SMS and online ordering.
The
pizzas
are
delivered
by
way
of
scooters
at
their
door
step. In order to maintain the quality of the pizzas, they are carried in a heat
wave bag so that they can deliver hot and tasty pizzas to their customers
By 2010-11, the company sees an addition of a total of 500 stores in 75-80
cities.
Segment overview
It operates in three business segments:
Domestic stores - Domestic stores segment consists of domestic franchise
operations, which
35
PEOPLE :
Self serve
Provide home delivery facility
36
PHYSICAL ENVIRONMENT
Targetting
Pizza hut targeted market defines them as a family product. This is because they
dont really directly market their customers. They target everyone whereas their
competitors target a certain gender or age. But pizza hut targets a wide range of
37
customers. This is because they want to make the most money and who blames
them.
They have many competitors and they are bound to try everything to cope up tops.
Their competitors are everywhere. There are just a few that are main competitors
and pizza hut will always try to be the best and get the most money by making
their products better quality but also cheaper.
They try to offer something different with their product as well. They offer a range
of stuffed crusts to try and attract customers. They also do vegetarian options with
meet free pizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and
a pasta bar. This is another competitive idea to attract or customers.
Positioning
Pizza Hut was among the first multinational brands to enter in the pizza retail
sector in India. Worldwide and in India , Pizza Hut has come to become
synonymous with the 'best pizzas under one roof'. This is because at Pizza Hut the
belief is that every pizza has its own magic, thus making it a destination product
which everyone seeks. It is this belief that has ignited the passion to create,
innovate and serve the finest product the industry has to offer, while setting
standards for others to strive to replicate. Pizza Hut is committed to providing
uncompromising product quality, offering customers the highest value for money
and giving service that is warm, friendly and persona
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.
38
Pizza Hut's constant endeavor to provide extra value whether it is pizzas which
are available to suit every price range, new promotions or the introduction of
innovative product ranges - that puts a 'Yum' on every customer's face - has
allowed it to increase its presence in INDIA to the current 146 restaurants across
36 cities.
Marketing Strategy:
Pizza Huts marketing strategy is very simple: we want to satisfy our customer by
offering them the best. Pizza Hut has always valued customer service and
satisfaction. In 1995, Pizza Hut began two customer satisfaction programs:
a 1-800 number customer hotline, and
a customer call-back program.
These were implemented to make sure their customers were happy, and always
wanted to return.
Another big strength and even a competitive advantage is the fact that they have a
full service restaurant as well as delivery services. Pizza Hut offers a sit- down,
conversational type restaurant where families can take their children for birthday
parties for example. Pizza Hut's broad selection of products also makes it easier for
them to market to different market segments.
The other two strategies followed by Pizza Hut is
C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product
quality and Speed) and
3Fs (Fun, Friendly and Familiar). These two strategies have really helped
Pizza hut to evolve out as a market leader with a competitive advantage.
39
40
Product differentiation
Worldwide and in India, pizza hut has come to become synonymous with the best
pizzas under one roof. This is because at pizza hut the belief is that every pizza
has its own magic, thus making it a destination product which everyone seeks. It
is this belief that has ignited the passion to create, innovate and serve the finest
product the industry has to offer, while Setting standards for others to strive to
replicate. Pizza hut is committed to providing uncompromising product quality,
offering customers the highest value for money and giving service that is warm,
friendly and personal. A critical factor in pizza huts success has been its unique
dining experience. Crewmembers at pizza hut strive each day to provide customer
mania the kind of service that ensures that every visit of the customer is a
memorable one.
Pizza features
Pizza hut has many unique features of their product due to which it attracts the
customers. The product is classified into non durable goods as it is a food item
pizza hut differentiates itself with its competitors with respect to their wide range
of offerings (menu items) one can find besides pizzas range of, pastas appetizers,
cakes, and desserts etc. There are quite a lot number of menu items to choose
Some of the items are
Pizzas ( four different types)
American Pan Pizza
Stuffed crust Pizza
Cheesy bites
Masala cheesy bites
41
Style
Pizza is delivered in hot pans and served in style. The toppings in the pizzas are
also dressed in a good fashion. Thus having food in style defines pizza huts
experience.
Service differentiation
Ordering ease
42
Once one enters the restaurant immediately the assistants initiates the ordering
process by providing the menu. All associates are well trained in English and can
take order from any customer.
Delivery
Pizza huts style of delivering the pizza to the customer is quite an experience. The
restaurant is aesthetically designed; all the staff members are uniquely dressed.
Managers dressed in special uniforms. Also the tables, menu, are all placed in a
good manner. This on itself is quite impressive. All orders placed in restaurant is
served within 15-20 minutes and the take away orders (ordered on phone) is
delivered within 30 minutes. Care also has been taken by the company to pack the
pizzas in special covers so that it remains hot till the customer haves the food. Any
pizzas delivered outside 30 minutes are given free. Also discount coupons are
given to the customer in case one doesnt want a free pizza
PRICING STRATEGY: The level of competition a business faces determines its pricing strategy.
Sometimes a business has the scope to set its price and sometimes a business
cannot. When a business has the scope to set its price there is a number of pricing
strategies or policies it might choose. 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
43
competitors and hence, Pizza Hut is free to charge any price they want. They are
charging higher prices due to the uniqueness of the product. They satisfy the target
market as the food quality is worth the price paid. The pricing strategy is not just to
get the worth of quality but also to gain maximum profits before any competitor
enters because then Pizza Hut will have to change its pricing strategy. Although the
prices would be lowered with the new entrants in the market but not to a greater
extent as the quality food products are not home-produced. They are imported from
different countries keeping in view the best quality.
In the past, Pizza Hut has successfully used the high/low pricing strategy when
setting the retail price of its products. Several sales promotions and coupons will
be used to lower the price below those competitors.
Since both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries,
bundle pricing will be used. Pizza Hut will be able to sell two products together at
a single price to suggest a good value.
The high/low pricing strategy has several advantages.
First, this pricing strategy will help segment the market. Different groups of
customers are willing to pay different prices for the same product. Pizza Hut
can sell "The Extreme" to the customers who will pay the higher price to be
the first to buy and also to the bargain hunters.
The high/low pricing strategy will also create excitement. Customers will be
able to try something new when they purchase "The Extreme" and this
exciting experience may bring those customers back to purchase other
products.
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 best.
44
PLACE/DISTRIBUTION:
The type of distribution channel used by Pizza Hut is the direct channel. The direct
channel is successful when there is an extremely large market that is
geographically dispersed. The direct channel is also useful when there are a large
number of buyers, but a small amount purchased by each. Pizza Hut uses three
different methods of selling its products directly to the market.
Services Offered
Quality Of Pizza
Location Of The Outlet
Waiting Time In The Outle
47
Questionnaire analysis
PERSONAL DATA:
AGE :
23%
UNDER 16
16-25
15%
26-35
35 AND ABOVE
62%
Comment: In this chart 30% people of age group 26 -35,20% people of age under
16,and 50% people come of age group 16 25 , like to come in Pizza hut and
Dominos.
SEX:
48
MALE
FEMALE
46%
54%
Comment : On the basis of these chart 40% males and 60% females like Pizza.
15%
UP TO 3 TIMES A WEEK
ONCE A WEEK
54%
HARDLY EVER
Comment : On the basis of this chart 60% people come once a week, 30% people
come hardly ever ,10% people come up to 3 times in week they eat Pizza.
49
Magazine
Brand Leaflets
NewsPapers
WRAP
Hoardings
Word Of Mouth
15%
15%
20%
5%
45%
50
38%
62%
Pizza Hut
Domino's
51
Comment: According to chart, 40% people prefer dominos and 60% prefer Pizza
Hut
Frequently
Occassionaly
Rarely
Hardly Anytime
7%
7%
29%
57%
52
Comment: If we analysis this chart we find 50% people visit occasionally, 30%
visit Rarely ,10% Visit frequently And rest 10% hardly anytime
Embience
Taste
Satisfaction OF SERVICE
Price
23%
54%
23%
53
Comment: On the basis of this chart 50% people come Pizza hut because of
embience, 20% for taste, 20% people for good service and only 10% are prce
conscious..
Very Good
Good
Satisfactory
Bad
7%
21%
43%
29%
54
Comment : On the basis of this chart 43% people come for enjoyment , 21% for
affordable price and 29% people for food quality ,7% are satisfied for service , in
PIZZA HUT .
Domino's
Pizza hut
46%
54%
55
Comment: On the basis of this chart 60 % pizza hut gives satisfaction and 40%
Dom
8) Queue for a long time
NEVER
14% 7%
79%
Comment : On the basis of this chart 15% people are not concerned, 5% are most
concerned, 80% are some time concerned about to queue for a long time.
56
Never
7%
29%
64%
Comment :On the basis of this chart 5%people never concerned, 70% are most
concerned, 25% are some time concerned about restaurant cleanness.
57
10) The staff are helpful of both both Pizza Hut And Dominos
never
38%
62%
Comment: On the basis of this chart 40% are most concerned, 60% are some time
concerned, about staff helpfulness
58
FINDINGS
Customer is most concern about the quality, variety, taste and cost of the
product.
Womens likes pizza more than a mens.
Embience of Pizza Hut is more cozy and calm than Dominos.
pizza hut attracts high class people and dominos attract middle class and
college or school students
Restaurant of both Pizza Hut And dominos are neat and clean.
Pizza Hut gives more satisfaction than Dominos.
4o% are most concerned, 60% are some time concerned, about general
service .
Dominos main targets are youngsters, kids.
Pizza Hut main targets are family
Pizza Hut has a very good feedback system
Now days, Dominos is also trying to take feedback of people through
59
CONCLUSION
From the comparative study of both pizza hut and dominos we have came to know
that pizza market in India is dominated by pizza hut instead of Dominos. As we
know that pizza hut is largest pizza restaurant company in the world with 12000
outlets in 90 countries and entered in India in1996 whereas the dominos enters in
India in 1995 and now it has 220 outlets in India
But dominos which has first mover advantage cannot succeed to become most
favorable brand between the people who like pizza.
From this study we know that pizza hut makes its position between the people and
is the preference side of the people . In price category ,price of dominos pizza are
lesser than pizza hut pizzas but still pizza hut pizzas are preferred because of its
quality ant condition and service they provide to the customer.
Keeping in view the sentiments in of Indian customers and our study we have
come to know that pizza hut dominates dominos because of following reasons:
Variety Of Pizza
60
Good Ambience
Services Offered
Quality Of Pizza
Location Of The Outlet
Waiting Time In The Outlet
Whereas dominos is famous just because of its door step service and low pricing.
Thus in pizza market pizza hut dominates Dominos
Swot Analysis
SWOT Analysis Of Dominos
Strengths
Newly revamped pizza recipe brought in high growth levels for the first
three quarters of 2010.
Strong brand name, #1 pizza delivery company in the U.S. with market share
of 18.4%.
Focused menu enables quality consistency and operational efficiency. Total
operational process is completed within 12-15 minutes
Global franchise operations - more than 3,500 in over 50 countries
Supply chain & distribution network
61
Weaknesses
Less variety
Despite aggressive marketing efforts to rebrand Dominos as a quality, great
tasting pizza, survey respondents still said that does not taste good and
low quality were the primary reasons they did not order Domino
The low price may actually be working against Dominos efforts to rebrand
as a high quality, great tasting pizza company.
Minimal incentive for customer loyalty
Opportunities
Growing presence in emerging markets, particularly in India, China
Leverage supply chain & distribution system to introduce new products
Growing dining out market (Especially young generation and middle age
group
Threats
62
Strength
Unmatchable quality and variety
Strong brand image
Customer satisfaction
Hygiene
Excellent service
63
Weakness
Inadequate advertisements
Inadequacy of outlets
High prices
Lack of parking facilities at outlets
Opportunity
Growing fast food market scope for expansion
Introduce attractive offers
Threats
Emergence of Papa Johns- Worlds pizza makers
Low price points of competitors
64
B
B
C
D
U
E
O
E
i t me
ER R s
R A s G
B
OR
s
S
E R R s T
E
M
S
mc
D s
o s n u
1 & 2
- RP
. 2E 0 R
4
9
-R
2 S 5
-R
a b
l wd
Ks a
Fy
i z
2 I s 5Z 2 Z 0 A R - 5 s 0 . 1
5R
-s 1 1 6 2
Rs
. s 4 . 5 R7 - os 1 5 7 5 5 p - e1
t5
0b
1 s 1 6 9 5
R - R s s 2 . 5 1 R - 3 Rs 5 4 S 0 1
5 s 0 3
5
R- 4 s 5 3
0 R - 5s
55
5
d h
ou
mt
R
R
R
s
s
s
1
3
2
0
3
- 2
5
e
v
.
-7 6 5 0
- R
s
1
SUGGESTIONS
65
i n
(
-
2
6
1
3
0
4
0
0
0
l )
DOMINOS
The Dominos follows formal relationship but doesnt involve its customers
for further association. McDonalds should use membership clubs or card
concept.
The television sets are placed at the outlet in an inappropriate manner. The
television sets are not placed in a manner in which all consumers can have a
good look at it from different places.
The price displayed should be reviewed accordingly and the revised prices
should be stated at the display.
Increase verities in pizzas
Focus on location of outlets
Increase the quality of pizza
Make good ambience in outlet
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
66
67
BIBLIOGRAPHY
68
QUESTIONNAIRE
NAME AND ADDERESS
NAME :
ADDERESS:
SEX:
AGE:
CITY:
MOBILE NO.
PINCODE:
NO
T.V. ADDS
BRANDS LEAFLETS
MAGZINES
NEWS PAPER
DOMINOS
69
FREQUENTLY
HARDLY ANYTIME
RARELY
OCASSIONLLY
PRICE
TASTE
QUANTITY
EMBIENCE
DOMONOS
VERY GOOD
GOOD
SATISFACTORY
UNSATISFACTORY
VERY GOOD
GOOD
SATISFACTORY
UNSATISFACTORY
GOOD
SATISFACTORY
UNSATISFACTORY
Q.11 HOW WOULD YOU RATE OFFERS GIVEN BY DOMINOS?
VERY GOOD
GOOD
SATISFACTORY
UNSATISFACTORY
PRICE
TASTE
QUANTITY
EMBIENCE
PRICE
TASTE
QUANTITY
EMBIENCE
71