Dominoes vs. Pizza Hut Essay

The Indian domestic pizza pie pie pie pie pie pie pie securities industry is increase rapidly with let outcome of foreign brands entering into the sector to seek stock opportunities. In the current scenario, Indian consumers ar increasingly shifting towards varieties of pizza pie offered by the hale-k straight offn brands. Further, huge untapped potential in sylvan and semi-urban aras, industrious investment rec e actuallyplacey, simple equipment and sm solely investment to undefended a pizza government issue as well as contributes to the development of domestic pizza manufacturing in India. Thus, the domestic pizza market in India is estimated to grow with a CAGR of around 26% during 2011-2014.The two chief(prenominal) contenders in this highly free-enterprise(a) market share is half masks and pizza shanty. Until 1996, pizza in India was synonymous only a cacographyy dough base sla in that locationd with some ketchup. Since 1996, there was a proliferation of high-priced branded pizzas in the market, with the entry of international pizza strands. half masks and pizza army sea chantey, the two big US closely pabulum chains entered India in 1996. Each claimed it had the original recipe as the Italians offset printing wrote it and was trying desperately to create brand loyalty. half masks and pizza army hut tried to grab as large a undercut of the pizza pie as possible.Dominos and pizza chantey ex goded their market ever since they entered India. Dominos had grown from bingle outlet in 1996, to over 500 outlets in April 2012. pizza Hut too, which began with just a single outlet in 1996 has over two hundred outlets in 2012. Dominos entered India in 1996 finished a dealership agreement with Vam Bhartia Corp. 3 The first outlet was decipherableed in Delhi. With the overpower success of the first outlet, the company opened a nonher outlet in Delhi. By 2000, Dominos had a presence in all the major cities and towns in India. pizza pie Hut entered India in June 1996 with its first outlet in Delhi. Positioning to node needs.When Dominos entered the Indian market, the sentiment of family auction pitch was still in its nascent stages. It existed only in some major cities and was restricted to spoken communication by the friendly vicinity fast food outlets. Eating out at branded eating houses was much prevalent. To penetrate the Indian market, Dominos introduced an integrated home address system from a electronic network of company outlets within 30 proceeding of the army creation placed. However, Dominos was not the trendsetter so further most(prenominal) as home delivery was concerned. Delhi based fast food chain Nirulas was the first to start free home delivery in 1994.But where Dominos stole the market was its efficient delivery record. GouthamAdvani, Chief of Marketing, Dominos pizza India, said, What really worked its way into the Indian mind set was the promised thirty consequence del ivery. Dominos as well as offered compensation Rs. 30/- off the price tag, if there was a stay in delivery. For the first 4 years in India, Dominos concentrated on its legal transfer act. For its delivery promise to work, Dominos fol wiped out(p)ed an 11-minute schedule angiotensin converting enzyme minute for taking down the order, wizard minute for pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit.Pizza Hut, on the other hand, laid much emphasis on its eatery eat experience. It positi wholenessd itself as a family eating place and as well concentrated on suit kids. Its delivery service was not time-bound. A company official said, The Pizza making process takes about 20 minutes and since we dont usually deliver to places which atomic number 18 beyond the reachable-in-half-an-hour distance, guests can expect home delivery within 45 minutes. Moreover, analysts felt that Pizza was something that just was not meant to be delivered.Said Vivek Sure, Projects Manager, Pizza Express, If you dont eat pizza fresh, it turns cold and soggy. However, Dominos seemed to redeem over hump this problem through its delivery pack called Dominos Heatwave. Localizing the Menu Since its entry into India, Dominos introduced nine new toppings for Pizzas to cater to the topical anesthetic tastes. Different flavours were introduced in incompatible parts of India. Advani said, The Indian palate is very definitive mint are extremely finicky and choosy, not too willing to experiment. pabulum tastes vary from region to region. To capture the market, we had to localize flavours. Thus, Deluxe icteric with gai choi Sauce and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. butter chicken, MakhaniPaneer and the ChatpataChana Masala were confined to the North. Very soon, Pizza Hut followed Dominos and offered customized forcible Paneer and Chicken Tikka toppings. Apar t from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a nonpareil-of-its- large-minded valetwide.The restaurant also offered a special Jainist menu, which did not sacrifice a single root-based ingredient to fit in with the food habits of Jains. Another city-specific adaptation of its menu by Pizza Hut was the restaurant in Hyderabad, (Andhra Pradesh) which offered Halal meat and chicken only with no beef and pork convergences in the menu. MARKETING MIX 1. PRODUCTS pizza hutch a. Product differentiation Worldwide and in India pizza hut has come to become synonymous with the surpass 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 harvest-feast which everyone seeks.It is this belief that has ignited the passion to create , innovate and serve the finest fruit the industry has to offer while setting standards for others to strive to replicate. Pizza hut is committed to providing un compromising product tonicity, offer customers the highest measure out for money and grown service that is warm, friendly and personal. A critical factor in pizza huts 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.b. Pizza Features Pizza hut has more unique features of their product due to which it attracts the customers. The product is trendified into non-durable goods as it is a food item. Pizza hut differentiates itself with its competitors with respect to their wide puke of offerings (menu items) one can materialize besides pizzas, range of pastas appetizers, cakes deserts etc. in that location are a large number of items to choose from. Some of the items are * Pizzas * Pasta and salads * Appetizers * Deserts * Beverages c. Mass CustomisationThe main prefer of customisation is that one can customize his/her own pizza by selecting the mark and loading it with his/her choice of toppings. This creates variety in the customers mind and thus one can approve whatever he/she can imagine pizza hut can offer. The most unique feature is that there is pan 4 all scheme where one can select 4 different parts of vegetarian/no-vegetarian combination of pizza. This is a unique way of offering as there are many customers who come in groups where someone in the group may have different preferences.d. Conformance prime(prenominal) Pizza Hut products have high conformance quality all the products produced are identical and run across the promised specifications. e. Style Pizza is delivered in hot pans and served in style. The toppings are also dressed in a good panache thus having food in style defines pizza hut experience. f. help Differentiation * Dining Once one enters a restaurant presently the attendants initiates the ordering process by providing the menu. all told associates are well trained in En glish and can take order from any type of customer.Pizza huts style of delivering the pizza is quite an experience. The restaurant is aesthetically designed. All the staff members are uniquely dressed, managers dressed specially. in any case the tables and menus are all placed in a good manner. All orders placed are served within 15-20 minutes. * actors line and takeawayThey have the image of hot-dot in case of delivery, which means that the package is guaranteed to be delivered hot. There is a dot on the cardboard box that serves as a checking blockage as to whether the hot-dot status has been met or not.Also they place a tripod on top of the pizza at the centre so that the ceiling does not touch the toppings. DOMINOS a. Product Differentiation Dominos pizza India has maintained its position in the market with its constant product intent and maintenance of stringent service standards. More importantly it has established a reputation for being a home delivery specialist fittin g of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country.As the name suggests the pizza delivery experts customers can order their pizzas by business their hotline. Dominos believes strongly in the strategy of think local and act regional . Thus time and again Dominos has been innovating toppings suitable to the taste buds of the local population and these have been very well accepted by the Indian market. Also they have their promotional sweat esurient kya ? which means call up Dominos at any time of the day 24/7 whenever you are hungry and have the food in 30 minutes. b. Pizza Features. dominos has many unique features of its product due to which it attracts its customers. The product is single outified 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 past as appetizers, cakes deserts etc. There are a large number of items to choose from. The chicken wings item has specially struck a chord with a dress circle of customers as such(prenominal) a kind of item is not available at any other pizza outlet. * Veg pizza * Non Veg pizza * Veg II pizza.* Non Veg II * Garlic breadsticks * Soft drinks (600 ml) * Chicken Wings * Choco Lava Cake * Butterscotch Mousse Cake c. Mass customisation The main service of customisation is that one can customize his/her own pizza by selecting the bread and loading it with his/her choice of toppings. This creates variety in the customers mind and thus one can enjoy whatever he/she can imagine dominos can offer. The most unique feature is that single slice pizza scheme where one can select any veg/non-veg pizza at a lower cost.This is a unique way of offering as there are many consumers e.g. Student segment who cannot eternally afford the premium price. d. Conformance quality Dominos products have high confo rmance quality all the products produced are identical and meet the promised specifications. e. Style Pizza is delivered in paper boxes and served in style. The toppings are also dressed in a good fashion thus having quick service justifies the dominos tagline. f. Service Differentiation * Dining though dominos is mainly concerned with takeaway and home-delivery, to suit the Indian market it allows dine-in facilities as well.One can enter the restaurant and this instant place their order at the service kiosk and they would be provided with a token number and there is a led screen with indicated which order is ready for service. Its mainly a self-help facility. Also pizzas are delivered in same cardboard boxes as in case of delivery, no such differentiation is there which is in stark contrast to that of the dine-in experience that customers enjoy at the more expensive pizza hut restaurants. * Home Delivery Home delivery facilities in Dominos are world renowned and super-efficient.Th e persons attending the customer calls are helpful in selecting the best economical orders as well. Also the delivery system is very efficient and very rarely has anyone complained about quality of delivery clock. Also it is open 24/7 and this standard is maintained throughout India regardless of the livings standards of that place. 2. score It is very important to decide where the marketer can deliver the value to the customer. This is done through effective marketing channels that make the product available to the consumer.India in 1996, with its first outlet in Delhi, has grown into over 101 outlets spread across 24 cities. In India, the majority of Dominos outlets are delivery-based with only about 25% of the outlets being both delivery and sit-down. This is quite different from other retail food chains. Pizza Hut made its foray in India with a dine-in restaurant in Bangalore in June 1996. Starting with six restaurants in its first year, Pizza Hut has expanded to 73 restaurant s in 19 cities and plans to scale up to 100 restaurants by end-2004 * At presentDominos has149 locations across India and (8,500).Worldwide * Dominos projection call for 500 stores by 2010 * The company has tied up with the Indian Oil Corporation (IOC) to set up pizza outlets in the latters petrol bunks and in the process save on real estate costs * The pizza chain will open such drive-in-drive-out outlets in around 100 IOC petrol stations in 16 different cities. It intends to invest around Rs. 40 crore to expand its network. Pizza Hut has 134 locations across India (and 13,000 worldwide) * Pizza hut projections call for 300 stores by 2012. 3. PRICE.In India dominos is trying to attract not only the stop number but also the lower and shopping mall class people. So, it has a more widespread network of outlets even in suburban areas, whereas pizza hut is only present in major cities. These maneuvered customers are interested to travel by on pizza but at a low price. They are eage r to go for outing in any festival and as a cheap family restaurant dominoes will be most preferable. They do not need high class atm or amusement in the restaurant So the establishment cost is low for the dealers and the price of the pizza is very reasonable for the customer.Company Price orbital cavity (Rs) Dominos 39-265 Pizza Hut 75-350 Some of Dominos very successful pricing campaigns are * Fun meals for 4 180 * Pizza mania 39 * Non-veg singles/doubles at 69/ great hundred However pizza hut is not too far buns in targeting the lower income groups. The weekday meal 99 has been a major contact all over India attracting office goers and teenage students alike. However the main target segment for pizza hut is the rich and higher fondness class people. They are offering an organised restaurant system with great ambience and for these demanding a higher price for pizzas.4. PROMOTION DOMINOS * Dominospizzas have decided to focus on the take-away market. * To give value to the c ustomer Dominos came up with Rs 50 pizza * Dominos gave away a lot of free pizzas. Even today they give close to potassium pizzas free during a week. * Dominos kept their promise of free pizza if it was late beyond 30 minutes. The company bore the cost * In November 2006 Dominos came up with double cheese crunch pizza. And it increased gross revenue by 45 per cent * Besides that Dominos did a lot of ground activities in terms of alliances, radio advertising, etc.Dominos also have this program called the Rolex challenge. Its a program run by Dominos international where store managers are awarded a Rolex follow if the achieve a certain sales level in contract time. PIZZA army hut The advertising strategy for Pizza Hut is two-fold. initiatoryly, lay emphasis on it being an international brand with an Indian heart, Pizza Huts communication is reflective of family values, family bonding, etc. * Pizza Huts arranged marriage commercial in Indian settings, and the Palat pizza commerci al in Hinglish.* Secondly, highlighting the premise that the pizza is a accelerator that brings people together ensures that this is a brand that connects with the Indian consumer. * The Palat concept was launched in 2002, with the launch of Pizza Huts innovative range of Stuffed encrustation pizzas * An unconventional and fun product, the Stuffed Crust pizza has a crust that is fill with a ring of mozzarella cheese that magically transforms the crust edge, compelling one to eat the pizza backwards i. e. , crust first or Palatke. * Pizza Hut claims as much as 50% of sales from delivery in some stores, and ten of its outlets are takeout only.SEGMENTATION PIZZA HUT 1. Geographic Region Pizza hut outlets in different parts of Indiaare a way of segmenting their markets according to region and finding out potential markets. City They also segmented the cities as class I, classII, metros and itty-bitty towns 2. Demographic develop Under 10, 10-18, 18-25, 25-40, 40+ Family income Midd le class, stop number middle class, high class Dual income earners Yes/No 3. Psychographic Socio economic class urban 4. Behavioural make Birthdays, corporate lunches, parties, receptions Loyalty status Low, medium, high drug user statusFirst time, regular, non-user DOMINOS 1. Geographic RegionDominosoutlets in different part of India are a way of segmenting their market according to region and finding out potential markets. CityThey also segmented the cities as class I, class II, metros and small towns 2. Demographic AgeUnder 13, 13-21, 21-35,35-50, 50+ Family income Lower middle class, middle class, upper middle class, high class 3. Psychographic Socio economic class Urban 4. Behavioural Occasions Birthdays,parties,receptions,festivals, small office parties Loyalty statusLow,medium, high.User statusFirst time,regular,non-user TARGETING PIZZA HUT * In geographic segment they targeted countries where there were no pizza hut outlets. ab initio opened in class 1 cities and then ha ve now moved to sub-urban. * In demographic segment main target is young adults ranging from 25-40 and also dual-income earners. They basically aim the upper middle class and high class income segment. * In psychographic segment they targeted urban socio-economic classes. * In behavioral segment they targeted occasions such as birthday bashes and corporate lunches.They also targeted the first time users as they felt that the quality and taste would automatically make them a loyal customer. DOMINOS * In geographic segment they targeted countries where there were no dominosoutlets. Initially opened in class II cities and then have now moved to class I, metros and smaller towns. * In demographic segment main targets are teenagers and college students ranging from 13-21yrs and young adults ranging from 21-35 yrs. They basically aim the upper middle class and middle class income segment. * In psychographic segment they targeted urban socio-economic classes.* In behavioural segment they targeted occasions such as festivals, hostel parties. They also targeted the first time users and also the regular users. SWOT ANALYSIS PIZZA HUT Strengths1. Strong Universal image that customers easily recognise. 2. Successful customization3. Low rival in eastern part of the world4. Strong network with its franchisees Weaknesses1. Lack innovation2. tall competition in western world3. Fixed overhead cost Opportunities1. Pizza as family dining option2. Pizza is a fast growing recessional market3. Services on fluid and other electronic devices Threats1.Socio Demographic changes2. Consumers being price sensitive3. Competition from other brands DOMINOS Strengths1. Worldwide Presence2. leader in pizza delivery industry3. Strong brand image4. Strong network with its franchisees Weaknesses1. Declining in-store sales Opportunities1. Growth opportunities in developing economies2. Services on mobile and other electronic devices Threats1. Competition in the pizza delivery industry2. on togenesis in health awareness3. Increase in labour and food prices CONSUMER PREFERENCES firsthand Research ResultsRECOMMENDATIONS PIZZA HUT 1. High quality personnel ingrained cooperation of its employees thereby increasing productivity, beating competition and enhancing consumer satisfaction. 2. Pay more attention to untapped segment of Senior citizens. 3. Maintain the product quality by continuous innovations. 4. Emphasis on development of Home Delivery Network. DOMINOS 1. Make more coupons available to customers Offer specials for certain times or seasons 2. Improving online ordering procedures. 3. New products specific to location. 4. Customized pizza.