Download - Marketing of Services - Pizza Hut vs Dominos
COMPARATIVE ANALYSIS OF THE SERVICE PROCESS OF
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Submitted to: Submitted by:
Ms. Anurupa B Singh Usha Mishra (D-06)
Megha Jhawar (D-07)
Nupur Narula (D-08)
Srishti Khera (D-09)
Niharika Jaiswal(D-10)
INTRODUCTION
Fast food is one of the world’s largest fast growing industry types. India’s fast food industry
is growing by 40%. The 6000 corer fast food retail industry is mainly dominated by the
multinational players and the key players which are active in the research of the food
retailing. 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:
McDonald’s
KFC
Pizza hut
Dominos pizza
Café coffee day
Barista
Subway
Papa John’s
Smokin joe’s
Domino's and Pizza Hut, the two big US fast food chains entered India in 1996. Each claimed
it had the original recipe as the Italians first wrote it and was trying desperately to create
brand loyalty. Domino's and Pizza Hut - tried to grab as large a slice of the pizza pie as
possible.
While Pizza Hut relied on its USP of "dining experience", Domino's USP was a 30-minute
delivery frame. To penetrate the market, both the players redefined their recipes to suit the
Indian tastes. Domino's went a step ahead by differentiating regions and applying the taste-
factor accordingly. Domino's also made ordering simpler through a single toll-free number
throughout the country.
Domino's and Pizza Hut expanded their market ever since they entered India. Pizza Hut is the
world's largest casual dining restaurant chain with over 13,000 restaurants across 97 countries
and 143 stores across 34 cities in India., including Delhi, Mumbai, Bangalore, Chennai,
Kolkata, Hyderabad, Pune, and Chandigarh and Yum! is in the process of opening Pizza Hut
restaurants at many more locations to service a larger customer base across the country.
Today Domino's Pizza India has grown into a countrywide network of more than 300 stores
with a team of over 9,000 people. According to the India Retail Report 2009, Domino’s were
the largest Pizza chain in India and the fastest growing multinational fast food chain between
2006-2007 and 2008-2009 in terms of number of stores.
Market shares and major players
Indian taste buds are demanding more and pizza industry – one of the most intensive industry
is all gearing on. People across the country are consuming over three million pizzas a month
currently, and the monthly sales figures are projected to double in the next four years.
According to industry data, of the total branded quick service restaurant market make a sale
of over Rs 1,200 Crore, the pizza chains contribute around 50 per cent of the sales i.e. worth
Rs. 600 Crore.
The major players of the Pizza industry are:-
• Pizza Hut
• Domino’s
• Smokin joe’s
• Garcia’s
• Papa john’s
• Us pizza
Market share as on 1999
PIZZA CHAIN MARKET SHARE (%)
Pizza Hut 46.42
Domino's 21.67
Others 31.91
Source: Financial Express
Market share as on 2000
Pizza Chain 2000 Market Share (%)
Pizza Hut 18
Domino's 70*
Others 12
Source: Business Standard, As claimed by the company
Current Market Shares
Branded Pizza Market Share
Pizza HutDomino'sOthers
The major market players are Pizza Hut and Domino’s with market share of 45% and 35%
respectively and other shares 20% of the market.
Major forces affecting the Industry
In major cities of India like Delhi, Mumbai, Bangalore Pizza Hut and Domino’s have a
competition with Pizza corner, Smokin joe’s, Us pizza, Garcia’s but in small cities Pizza Hut
and Domino’s are the major players.
Threat of new entrants
With the economic reforms and liberalization, many new entrants also want the revenue of
the 200 billion Indian fast food industries.
There are many new entrants in the branded pizza industry some of them are
• Papa john’s pizza
• Us pizza
Some Indian brands are:-
• Pizza Express
• Pizza Corner
• Slice of Italy
They have captured a lot of customers with their new style and discount offers. Much young
crowd flock their restaurants and their taste buds are getting modified. Now the new entrants
are also likely to enter the small cities and make their presence. Thus pizza hut and dominos
have to rethink their strategies so as to retain their customers. They have to constantly
differentiate their services from the newer entrants
Substitutes
There are lots of substitutes which are available to choose with respect to the fast food
industry some of them are
• McDonald’s
• Barista
• Cafe coffee day
• Chinese restaurants (mainland china)
• Other restaurants
Largely it depends upon the customers what they want to have. Generally it is assumed that
when people dine outside, they think of having pizza at least 25% of time. Thus if the brand
recall of a particular company is good, more people will tend to go there. Higher the quality
of food, service, higher will be product recall and sales
Buyer’s bargaining power
Pizza hut and dominos have higher market reach and greater visibility in the market with
respect to the pizza industry and hence they command supplies at lower rate. However their
counterparts, competitors cannot command such lower prices. Thus the muscle power of
pizza hut and dominos is way beyond the others.
Supplier’s growing bargaining power
Supplies till now were not a problem but with the advent of the rising food costs (raw
material inflation). Suppliers are not ready to supply items at the normal rate. Thus supplier’s
muscle power grew only doe to inflation. Thus the company either has to increase the menu
costs or reduce the operational costs to recover. Failing to do this will make the company into
losses or to lose out in the industry.
Trends in the Indian market
Marketing to children
Fast food outlets in India target children’s as their major customers. They introduce varieties
of things that will attract the children’s attention and by targeting children’s they
automatically target their parents because children’s are always accompanied by their parents.
Low level customer commitment
Because of the large number of food retail outlets and also because of the tendency of
customer to switch from one product to other, this industry faces low level customer
commitment.
Attracting different segments of the market
Fast food outlets are introducing varieties of products in order to cater the demands of each
and every segment of the market. They are introducing all categories of product so that
people of all age, sex, class, income group etc can come and become a customer of their food
line.
Core Competencies
Dominos
“30 MINUTES OR FREE” service commitment
Responsibility towards society
Association with NGO’s.
Store Educational Trust (SET)
CRY (Child Relief and You)
Pizza Hut
Offering value food
Wide variety of food (International and National)
Competitors of the Pizza Hut and Dominos
• Pizza corner
• McDonald’s
• Barista
• Cafe coffee Day
• Subway
• Papa john’s
• KFC
Pizza Hut and Domino’s competitor analysis
STP Analysis
Segmentation
Pizza hut
Geographic
Region – pizza hut outlets in different countries is a way of segmenting their market
according to region and finding out potential markets.
City – they also segment the cities as class i, class ii, metros, small towns.
Demographic
Age – below 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years, 40+ years.
Family income – middle class, upper middle class, high class
Dual income earners – yes/no
Psychographic
Socio-economic class – urban (a1, a2, b1, b2, c, d)
Behavioural
Occasions – birthdays, corporate lunches, marriages, parties, receptions
Loyalty status – low, medium, high
User status – first time, regular, non-user
Dominos
Geographic
Region – dominos outlets in different countries is a way of segmenting their market
according to region and finding out potential markets.
City – they also segment the cities as class i, class ii, metros, small towns.
Demographic
age – under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50+ years.
family income – lower middle class, middle class, upper middle class, high class
Psychographic
socio-economic class – urban (a1, a2, b1, b2, c, d)
Behavioral
loyalty status – low, medium, high
user status – first time, regular, non-user
Targeting
Pizza hut
In geographic segment they targeted countries where there were no pizza hut outlets.
Initially opened in class i cities and then have now moved to metros.
In demographic segment their main target is the young adults ranging from 25 years
to 40 years and also dual income earners family. They aim basically at the upper
middle class and the high class income families.
In psychographic segmentation they targeted a1, a2, b1 socio-economic classes.
In behavioural 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 behavioural segmentation it was found that they were targeting the first time users
and also their regular users.
Positioning
Points of difference
The major point of difference between pizza hut and dominos is that pizza hut concentrates
on in-restaurant dining. The ambience and decor of all pizza hut outlets are good and the
outlets are spacious. When customers think of party and decide to have pizza, pizza hut only
comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business
meetings in their outlets. Pizza hut has customized birthday party invites with different
themes for the customers to choose and use it as invitations. Dominos aims at fast home
delivery of pizza. Whenever customers want to have pizza at home, they think of calling
dominos and ordering for it because they are experts in home delivery of pizza. “We earn
60% of our revenue from home delivery of pizzas and 40% from the restaurant sales” , says
Mr.navamani, manager of dominos, coimbatore v.o.c. Park outlet. In case of pizza hut, the
major revenue is from restaurant sales.
Points of parity
Category points of parity – the main food item that is sold in pizza hut and dominos is pizza.
As we all know, pizza comes under the fast food category of foods, both the companies must
be good in speed of making and service. Irrespective of the cost, both pizza hut and dominos
has to deliver or serve pizza in less time as compared to other main course food items served
in other restaurants.
Competitive points of parity – competitive points of parity in case of pizza hut is that, even
though pizza hut is costlier than dominos, they have their own customers, who do not bother
about spending, but look for quality and personalized service. When we visit pizza hut, they
have restaurant hostess who will assign us tables and introduce the steward who will be
taking care of us. This is generally a procedure that is followed in five star category hotels
and pizza hut is also following it to emphasize on service quality. In case of dominos, they
are not costly as pizza hut and do not offer great ambience to customers, but offer good
pizzas at nominal price. They concentrate on turnover of covers and cater to customers who
don’t have time to spend on food and just stop over for refreshment. Moreover, dominos
mainly looks into home delivery of pizzas and are experts in it.
MARKETING STRATEGIES
Overall both the companies achieve what they want to as for Dominos they have achieved in
positioning themselves as the fastest serving pizza outlet and quenching the hunger with the
vision “To be exceptional people on a mission to be the best pizza delivery company in the
world”.
Pizza Hut has come to become synonymous with the ‘best pizzas under one roof’. They have
positioned themselves for their unique dining experience with a vision “To be the best
hospitality business anywhere in the world”.
Thus from the market feedback, it can be seen that even customers feel the same as what the
company wants them to.
Strategic Formulation
Overall Cost Leadership, Differentiation and Focus
This is achieved very effectively by Dominos as they do not intend to lose their focus from
delivering pizzas at home
Dominos Brand thus relates mainly to service & delivery neither they promote their in
dining experience nor they spend revenue for it.
Domino's vision is focused on “Exceptional people on a mission to be the best pizza
delivery company in the world!”
Thus Dominos are able to provide good pizzas at relatively lower rate as they don’t spend
much for the restaurant
Pizza Hut’s Premium price
Pizza Hut is committed for providing uncompromising product quality, offering customers
the highest value for money and giving service that is warm, friendly and personal.
They stress heavily on the dining experience and the ambience
Thus at each point company charges a premium
Thus Pizzas from Pizza Hut costs a premium hence their customers also changes to high
income groups.
Creation, Communication and Capturing Value
Dominos
Domino's Pizza constantly strives to develop products that suit the tastes of its consumers and
hence delighting them. Domino's believes strongly in the strategy of “Think global and act
local”. Thus, time and again Domino's Pizza has been innovating with delicious new products
such as crusts, toppings and flavors suitable to the taste buds of Indian Consumers. Further,
providing value for money at affordable products to the consumers has been Dominos motto.
Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers.
The Brand Positioning of “Khushiyon ki Home Delivery” (Happiness Home delivered) is
the emotional benefit Dominos offer to consumers.
Delicacies that do not rip wallets have always got the crowd coming back to the Dominos
although its ambience is not up to that of its competitors. They have the maximum offers with
respect to the discounts they offer throughout the year. Thus the customer has the maximum
incentive to come back to Dominos. “Hungry Kya?”, promotion where hunger gets quelled
in less than 30 minutes was a great value proposition . All other activities, be it new variants,
great service, timely deliveries or more for the same price the effort of Dominos has always
been directed towards making its customers happy, creating, communicating and delivering
value.
Pizza Hut
Workforce of Pizza Hut is chosen with the motto “Together we grow” with primary concern
being quality of service, be it in terms of delivery or quality of pizzas.
A critical factor in Pizza Hut’s success has been a menu that has constantly evolved and
expanded to cater to the changing needs and specific preferences of customers in different
parts of the world. In having understood the pulse of the customers in India, Pizza Hut has
clearly established itself as a brand with an Indian heart. Besides offering an extensive range
of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India
in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root
based ingredients. Moreover Pizza Hut is not just a hangout zone for youngsters. It organizes
birthday bashes, kitty parties and corporate lunches They also have a variety of combinations
of menu items which a customer can choose so that both the customer and the company can
have a win-win situation. The company can have the maximum of the consumer surplus at
the same time the consumer might feel that this was the best offer.
From the menu card one can see the family size variants and the different pizza combinations
in the same one pizza are all the different ways of pricing. The company attains the maximum
profit in the meat items, so they give the selection of pizzas slices of different varieties and
they are clubbed together to form a single pizza.
Once the customer dines / orders @ home, normally discount coupons are given to the
customer so that there is an incentive for the customer to order from pizza hut. Thus
customers are forced to maintain loyalty towards pizza hut.
SWOT Analysis of Pizza Hut
SWOT Analysis of Dominos
PERCEPTUAL MAPPING
Perceptual mapping helps the Management to see the real picture of their own and their
competitiors. In above map, Services are plotted on X-axis and Pricing is plotted on Y-axis.
Expensive and high services : 1st quadrant
Expensive and moderate services : 2nd quadrant
Inexpensive and moderate services : 3rd quadrant
Inexpensive and high services : 4th quadrant
The competitors for Pizza Hut are Domino’s, KFC and McDonalds. Pizza Hut is providing
High Services at very high price. That is why it is plotted in 1st quadrant. Likewise,
McDonald provide high services but the food products are not expensive. But in 2nd quadrant,
the services are moderate and they cost high than McDonald.
7 P’s OF SERVICES or SERVICE MIX
Pizza Hut
PRODUCT
Worldwide and in India, Pizza Hut has come to become synonymous with the ‘best pizzas
under one roof’. This is because at Pizza Hut the belief is that every pizza has its own magic,
thus making it a destination product – which everyone seeks. It is this belief that has ignited
the passion to create, innovate and serve the finest product the industry has to offer, while
setting standards for others to strive to replicate. Pizza Hut is committed to providing
uncompromising product quality, offering customers the highest value for money and giving
service that is warm, friendly and personal. A critical factor in Pizza Hut’s success has been
its unique dining experience. Crewmembers at Pizza Hut strive each day to provide ‘customer
mania’ - the kind of service that ensures that every visit of the customer is a memorable one.
Over the years Pizza Hut has also developed and successfully introduced a range of products
especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma,
Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. What
has also given Pizza Hut a competitive edge is that in addition to an extensive range of
internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed
Crust, in India the menu offers the option of a complete meal. It includes appetizers, a
Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas
and desserts
PRICE
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. 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. 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 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.
PROMOTION
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 (VIP members), but also by fliers
on college campuses around the country in order to reach the target market. They are using
billboards on main stream places to get there customer. They are also distributing door to
door brochures to capture more and more customers. Pizza huts also using marketing
techniques. These are the strategies Pizza hut is using for its marketing. Pizza huts try's to
attract the younger generation as their main market segment. Apart from this Pizza Hut is
using intense marketing strategies they are also giving ads in magazines. Advertising
camping will creates awareness of the products in our target markets.
DISTRIBUTION or PLACE
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. The
first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead
of time, place an order, and the order is delivered to the customer's home.
Another method of distribution is for customers to dine-in. Customers can go to the nearest
Pizza Hut, place an order, and either leave with the order or eat at the restaurant. One of Pizza
Hut's largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean
place to sit down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family
atmosphere.
The third method of distribution is! online ordering. Customers can now go on the Internet
and place an order. This method is useful because it allows customers to view the entire
menu, download any special coupons, and order without having to disclose any credit card
numbers. The market coverage for "The Extreme" will be nationwide. Customers all over the
country will be able to order "The Extreme" by one of the three distribution methods.
PEOPLE
Here the job design is not the most difficult task to do. Also there is no specific requirement
for recruiting process.
After talking one of the employees in Pizza Hut, we came to know the criteria of selection.
The girl was from west India, she was only 10th passed out. After this we it was confirmed
that there is no proper requirement of the educational background. The only factor they were
considering on the communication skills, how they communicate with the customers.
Since the communication is the most important factor between the customer and employee
because the whole process is depended on giving the orders for food. For this the
Management conducted the training process for the new employees. The Training is given for
total 5 days. Out of 5 days, they have 3 days for kitchen training and other 2 days in the main
dining, that is, how to take orders and basically how to communicate with customers and
make them happy by their services.
PROCESS
The design of the process of the pizza hut is very efficient .pizza hut do not follow any kind
of hierarchy , all the employee is at the same level ,pizza hut has a very prescribe and well
known process by adopting various technology software which help them to upgrade their
supply management and also manage their crowd of customer efficiently.
PHYSICAL EVIDENCE
The ambience of the pizza hut is good enough to catch up the people .they provide a very
good dining experience with high quality of atmosphere in terms of there physical evidence.
and pizza hut always try to upgrade with changing envierment and modernization is key of
success of the pizza hut.
Dominos
PRODUCT & PRICE
The very brand name ―Domino’s‖ adds value to the products available in the store. The
quality and the hygiene of the pizzas and the other add-ons are taken care of by the company
or the franchisees by way of training to the employees. Domino’s also takes pride on the
innovation of many new products and ideas. Some of these are as follows :
Double Decadence:
Domino’s launched the first Double Decker pizza in the UK. Domino’s Double Decadence is
created when two thin and crispy dough bases are sandwiched together with a layer of
creamy cheese and herb sauce. The pizza is then topped with vine ripened tomato sauce,
mozzarella cheese and the customers; choice of toppings.
Virtual Store:
To make take home pizza ordering more convenient for the customers, Domino’s has
designed an online service which features the customers’ favorites and also the customers can
order for pizzas by text message via mobile phones and orders can be placed online. When
the order online option is selected, the customer is taken to the order form. And the customers
has to enter the postcode of the delivery address and then other delivery details like the phone
number and e-mail address has to be entered. Then the customer is taken to another page –
the best part of the process – pizza. The customer can select the pizza and the size of it and
also the customer has the option to create his/her own pizza and then pay for the food either
online using a debit or a credit card or to opt for paying the amount to the person who
delivers the pizza.
Domino’s Heat wave Bag:
Domino’s Heat wave hot bag was introduced in the year 1998. The Hot bags contain a
heating mechanism that is warmed by using electromagnetic energy. This technology keeps
the pizza oven-hot during the delivery.
General perception prevails that pizza prices are expensive and cannot be afforded by many,
but Domino’s pizza prices will make you think twice about that statement. Domino’s also
provide lots of offers and deals that give your much discounted pizza prices.
First off, customers can get Pizza mania pizzas for prices as low as Rs. 39/- which no other
pizza chain offers in the country. The regular size Simply Veg pizzas start from Rs. 60/-
onwards and they have pizzas up to around Rs. 400/- Domino’s caters to all price ranges so
that customers can always find a pizza price that fits their pocket.
PROMOTION
Pizza order discount: Domino’s offers its customers a number of discount and other
promotions on purchasing Domino’s pizza.
A customer walked out of a Florida Domino’s store with a $10,000 cheque for having
bought the Gotham City Pizza and the promotion was called The Dark Knight Deal.
The Dark Knight Deal also allows the customers to win Xbox 360 and other gaming
consoles.
Domino’s pizza has introduced a new value meal called the 444 deal. This 444 value deal
contains three ten-inch pizzas with one topping for $4 each with a minimum number of three
orders.
Dominos also allows its customers to play games by the time their food arrives. There are
actually two games – asteroids and slide puzzle to play
Dominos start providing coke/fanta/sprite.
Dominos started pizzas mania which start from Rs 35 and we get the toping according to
our choice.
Web coupons available at web site www.dominos.co.in
Discounting coupons are being provided with every item purchased.
Suggesting selling at a discounted price
New schemes at regular interval of time according to the taste of the INDIAN customer
DISTRIBUTION or PLACE
Domino’s Pizza stores are established in almost 50 countries and they have got more than
8,000 stores worldwide. The Domino’s stores are centrally located and in a 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
PEOPLE
Recruiting young, enthusiastic and dedicated employees.
Appropriately trained for delivering the service.
Personality development and grooming sessions.
Provide them with various facilities such as medical help, consultation, traveling facilities,
perks and bonuses
Team members are recognized and rewarded based on ability and merit for their
contributions
PROCESS
Self service system.
Hungry hotline facility.
Keep in mind the health and hygiene.
Domino’s Pizza India also boasts about its commitment to serve its customers on time by
implementing the “30 MINUTES OR FREE” service commitment.
Domino's constantly strives to develop products that suit the tastes of its customers,
Domino's believes strongly in the strategy of 'Think local and act regional'.
PHYSICAL EVIDENCE
Logo
Sample parking space.
Good infrastructure.
Use of modern technology equipments.
Clean and friendly services.
Brand building through advertising
Domino's and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. In August 2000, Domino's launched the “Hungry Kya?” (Are You
Hungry) sequence of advertisements on television. A company official said, “We realized that a Pizza couldn't be slotted – it could be a snack; then again, it could also be a complete meal” The only definitive common link between Domino's Pizzas and eating was the hunger platform.
The launch of ‘“Hungry Kya?” campaign coincided with “Hunger 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 to add the customer's name, address and phone number to its database.
Domino's is committed for bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base.
Promotional and advertisement campaignsThe pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception, Domino’s had been known for its unique promotions that included fast delivery and innovations to cater to a varied palette.
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.
Creative strategyLatest in domino’s
Kwality wall’s ice-creams in dominos- For the first time dominos started offering ice creams .Selling ice cream in Domino’s is also a new sales promotion strategy to attract more customer in a new perceptive /innovative way.
Domino’s has also come up with pasta mania.
This was followed by Pizza Hut's first campaign on television in July 2001, which said, “Good times start with great pizzas”. The ad was aired during all the important programs on Star Plus, Sony, Sony Max, Star Movies, HBO, AXN, and MTV. Pizza Hut planned to spend between Rs.70-75 million on the ad campaign in 2001, said Pankaj Batra, The first ad campaign on TV defines Pizza Hut as a brand, and what it offers to its existing and potential customers.
Brand awareness Pizza Hut was among the first multinational brands to enter the food retail sector in
India. When the first Pizza Hut restaurant opened in Bangalore the quick service industry was at a nascent stage and the pizza category was dominated by a sole regional player who had a marginal presence.
The strength of Pizza Hut’s success globally lies in a marketing strategy that builds connections with customer’s everyday in different parts of the world. Many customer service initiatives have been uniquely developed for India and have been greatly instrumental in building an emotional bond with the customer.
The crewmembers at Pizza Hut break into a Boogie at restaurants in Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar. While a bell hangs at each Pizza Hut restaurant, which is rung by customers who as they leave wish to thank the servers for yet another memorable visit.
Pizza hut organized the Jig n Jeeto contest in Delhi for the first time, it received a phenomenal response with super star Fardeen Khan judging the show. Pizza Hut hopes to continue this contest as a tradition for the years to follow.
Brand attitudeInternational brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community, whose members prefer not to eat at places where meat is served.
Offering more than the international menuInternational food chains typically offer only a few localised products in other parts of the world. However, Pizza Hut’s local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavours. The Tandoori range of pizzas, which was developed locally, has a menu mix of over 20 per cent.
Sales promotion Pizza Hut laid more emphasis on its “restaurant dining experience”. Pizza Hut localizes it menu to capture local Indian Market. In 2000 Pizza Hut launched its innovative Pizza Pooch menu and Pizza Pooch
Birthday Party package exclusively for kids in the 6-10 age groups. It positioned itself as family restaurant and also concentrated on wooing kids.
Word of mouthIt is one of the traditional promotions for any industry. Pizza hut and Domino’s both get benefit from it.
BLUEPRINT OF Pizza Hut
BLUEPRINT OF Dominos
Success Factors
Pizza Hut
Offering value food
Aggressive marketing and tie-ups with local and popular brands
Moving beyond metros
Developing the local supply chain
International brand with an Indian heart
Offering more than the international menu
Good ambiance
Domino’s
Door step services
Low pricing
Discount schemes, coupons and offers