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A PROJECT REPORT

ON

A STUDY OF CUSTOMER LOYALTY TOWARDS PIZZA


HUT AND DOMINOS

Submitted in partial fulfillment of requirement of Bachelor of


Business Administration (B.B.A) General

BBA VITH SEMESTER (M)


BATCH 2014-2017

Submitted to: Submitted by:


Dr. Garima Sachdeva Paras Pahuja
(Associate Professor) 01619201714

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CERTIFICATE OF COMPLETION

This is to certify that Paras Pahuja, pursuing BBA- VIth Semester from

LINGAYAS LALITA DEVI INSTITUTE OF MANAGEMENT AND

SCIENCES, has completed her project on the topic A Study Of

Customer Loyalty Towards Pizza Hut And Dominos under my guidance.

Her work is appreciable.

Dr. Garima Sachdeva


(Associate Professor)

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ACKNOWLEDGEMENT

A lot of effort has gone into this training report. My thanks are due to many
people with whom I have been closely associated.

I would like all those who have contributed in completing this project. First of
all, I would like to send my sincere thanks to Dr. Garima Sachdeva for her
helpful hand in the completion of my project.

I would like to thank my entire beloved family & friends for providing me
monetary as well as non monetary support, as and when required, without
which this project would not have completed on time. Their trust and patience
is now coming out in form of this project.

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STUDENT DECLARATION

I PARAS PAHUJA student of LINGAYAS LALITA DEVI INSTITUTE OF

MANAGEMENT AND SCIENCES declare that every part of the Project Report

titled A Study Of Customer Loyalty Towards Pizza Hut And

Dominos submitted by me is original.

I was in regular contact with my faculty guide and contacted 8-12 times for discussing

the project.

PARAS PAHUJA
01619201714
BBA 6th Sem.

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CONTENTS

Description Page No.


Acknowledgement (i) (i)
Contents with page no. (ii)
Executive Summary 5
Certificate of completion 7
Introduction to topic 8
Objectives 13
Literature review 14
Pizza Hut & Dominos 32
Research Methodology 60
Analysis & Interpretation 62
Findings & Inferences 73
Limitations 74
Recommendations and Conclusion 75
Appendices 76
Bibliography 79

EXECUTIVE SUMMARY
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This project will help the researcher and the marketing professional to
evaluate the customer loyalty towards the two major fast food companies i.e.
Pizza Hut and Dominos. Both the company has own advantage and
disadvantage however what influence the customer are consider to major
point for the study.
The research studies are of a great help in enhancing the knowledge of a
person. Practical knowledge is a suffix to theoretical knowledge. Classroom
lecturers clarify the fundamental. But classroom lectures must be correlated
with the practical research situation. It is in this sense that the research
project is made compulsory for the curriculum and has a significant role to
play in the field of business management. Through this type of project one
can understand the application of theory into practical. But it is only
difficulties, which makes the success dears. In this project I have put a lot of
effort to make it a success.
If any findings & recommendations go in any way to prove some new ground
in helping the commodity future sector, I shall deem my efforts have duly
served the purpose. In the forthcoming pages an attempt has been made to
present report covering different aspects of my project.
The launch of Hungry Kya? campaign coincided with Dominos tie-up with
Mahanagar Telephones Nigam Ltd. (MTNL) for the Hunger Helpline. The
helpline enabled the customers to dial a toll-free number (1600-111-123) from
any place in India. The number automatically hunted out the nearest Dominos
outlet from the place where the call was made and connected the customer
for placing the order. The number also helped Dominos to add the customers
name, address and phone number to its database.
This was followed by Pizza Huts 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. Once the awareness of this message is high, we will focus on
other facets of the brand and its offerings.

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CHAPTER I
INTRODUCTION TO THE TOPIC

Customer loyalty programs have long been a staple of enterprise marketing


activities. The thinking has always been that rewarding repeat transactions
the behaviour most desired by the brand running the program will drive
revenue and long term brand interactions. In other words, brand loyalty can
be incentivised and measured. But there is a problem, one has to assume that
repeated transactions are a proxy for the more emotional concepts of brand
affinity and loyalty.
According to a recent study by Edgell Knowledge Network, retail respondents
expect that, by 2015, loyalty program members will make up 58% of total
revenues. At the same time those retailers also reported that customers who
are members of their loyalty programs dont seem to be any more brand-loyal
than those who arent. Additionally, 81% of those retail loyalty members dont
even know what their program benefits are, or how and when they will receive
them.
So clearly there is a problem with the way that the majority of customer loyalty
programs are designed. While they are effective at measuring the
transactional patterns of a customer they miss the mark when it comes to the
other key moments that really define a loyal customer. Simply put, they only
value transactions not the entirety of the brand-customer relationship.
In todays environment, a customer-centric strategy that rethinks the way that
brands approach customer loyalty programs is becoming essential. This is
especially true for those brands who are focused on retaining current
customers and developing new revenue streams. One must first understand
the customer relationship before new revenue streams can be identified.
So how does a business expand its loyalty program to measure and
incentivise other forms of positive brand behaviours? To start with it is
important to map the customers pre- and post-purchase behaviours. This will
help identify the moments of truth for your brand. They may be how the
product is used, how often the customer engages with brand promotions or if
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they are a brand promoter online. Each brand will have different moments of
truth that define the customer relationship.
Fortunately many, if not all, of these activities happen online today. This
means they can be identified and measured. The trick is to do it without
stalking your customers. For many brands this may be the space where they
can extract real value out of social media as it can be the glue that ties an
expanded loyalty program together.
Of course getting a loyalty program up and running that focuses on the real
brand-customer relationship takes thinking, planning and a lot of work. But
consumers are now looking for much more from the brand they interact with.
My team and I hear this every day from both our clients and the feedback
from their customers.
The market is speaking, and the old style loyalty programs arent doing the job
anymore. There is a significant competitive advantage to be gained by
developing a program that looks beyond the plastic card and treats every
customer as the person they are.Attract customers and satisfy them has
become a hot issue and expresses present of organizations and the reason of
its existing. Customer loyalty has become more important as rapid technology
changes in telecommunications. Your customers know what is available
elsewhere. They may know other locations, and they may be willing to travel
far for a bargain.

A critical issue for the continued success of organizations is its capability to


retain its current customers and make them loyal to its brands. Loyal
customers build businesses by buying more, paying premium prices, and
providing new referrals through positive word of mouth over time. Loyalty
research in services is an important area to study . In fact, companies in
telecommunications are losing 2-4 percent of their customers monthly;
disloyal customers can amount to millions of lost revenue and profit. For
example 20% of customers of the mobile phone operator orange defect each
year and, on average it cost orange 256 in 1996 to recruit each new
customer, reflecting the cost of introductory offers, subsidized phones and
advertising. With almost a million customers, therefore, reducing the churn
rate from 20% to 10% would bring about annual savings of over 25 million

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(Palmer, 1998). In the same way, studies conducted in the financial services
industry show that increasing customer retention (or customer loyalty) by 5
percent could lead to 25-75 percent profit growth

Especially in telecommunications services, it is frequently pointed out that


once customers have been acquired and connected to the
telecommunications network of a particular operator; their long-term relations
with the focal operator are of greater importance to the success of the
company in competitive markets than they are in other industry sectors . In
case of Malaysia many studies have done about customer loyalty in several
services. According to Nilson (2007) reported that in study applied on a
sample 220 bank customers in Malaysia. Multiple regression analysis
assessed the impact on customer loyalty of four key constructs of relationship
marketing (trust, commitment, communication and conflict handling).The
findings of this study The four variables have a significant effect and predict
a good proportion of the variance in customer loyalty. Moreover, they are
significantly related to one another.

Also Chang Ee Ling and Ernest (2009) in study -Satisfaction and Loyalty:
Customer Perceptions of Malaysian Telecommunication Service Providers- by
utilizing a two-part research method. The first part utilized an in-depth
interview method to obtain variables used in the second part of the study. The
second part consisted of a questionnaire distributed to 125 respondents. A
factor analysis is also carried out. Findings indicate that important variables
for satisfaction included, supporting services, product (handy, reliable
coverage, friends and family lines) and promotional efforts of the firm; while
for loyalty, they refer to convenience, services, satisfaction and cost. The
findings indicate that telecommunication service providers should look beyond
price wars to keep their customers satisfied and loyal. As market growth slows
or as markets become more competitive, firms are more likely to attempt to
maintain their market share by focusing on retaining current customers. . In
this context the main objective of this research is to examine the relationships
between customer loyalty and service quality, switching barriers and brand

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image at University Utara Malaysia sector, and there are three specific
objectives of this research-
1- To determine the relationship between service quality and customer loyalty.
2- To determine the relationship between switching barriers and customer
loyalty,

3- To determine the relationship between brand image and customer


loyalty. This research tries to answer following questions:
What is the relationship between service quality and customer
loyalty?
What is the relationship between switching barriers and customer
loyalty?
What is the relationship between brand image and customer loyalty?

ss

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OBJECTIVES

To study the marketing strategies adopted by Pizza Hut and Dominos Pizza.
To understand fast food industry and trends in fast food industry.
To understand the environmental factors affecting these two brands.
To understand the service delivery gaps that can occur and how does Pizza
Hut and Dominos Pizza avoid or fill these gaps.

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CHAPTER-II

LITRATURE REVIEW

Ali Nasir,Mirza Ashfaq Ahmed, Iram Nazir, Huma Zafar, Zahra Zahid (2014)
revealed that consumers who go to restaurant for family celebration will often look
for quality, environment, exceptional employee service and security services. There is
a possibility that consumers who go to restaurants for family celebration will often
ignore the high price of the restaurants, because they want high quality and
pleasurable environment for their celebration. Consumers who go to restaurants just
because there is no one to cook at home or they are far from their homes will often
look for low price and they will sacrifice the exceptional security and service and
quality of food. The business people like family celebration consumers will also focus
more on quality and environment instead of low price because they are business
people and high quality is mostly in their budget. They can afford high price for high
quality. In the study of Angelova.B, Zekiri.J (2011), Customer satisfaction does have a
positive effect on an organizations profitability. Satisfied customers form the
foundation of any successful business because customer satisfaction leads to repeat
purchases, brand loyalty, and positive word of mouth. In the food services context,
results of many previous studies have revealed that service quality has a strong
relationship with customer satisfaction (e.g. Stevens et al., 1995; Andaleeb and
Conway; 2006; Kim et al., 2009; Min and Min, 2011). Khan (2012) has mentioned
that customers are the most important part of any business and they are the people
who have significant influence and impact on the business, including fast-food
business. Customer satisfaction is the personal feelings about foods and services in
the fast-food business that has been considering as one the most important aspects
within the business. Ha and Jang (2010) investigated the effect of service quality and
food quality in Korean ethnic restaurant concluded that providing quality food is
particularly critical for creating customer satisfaction. Similarly, Min and Min (2011)
examined service quality and customer satisfaction in fast food restaurant franchises
in the USA. Mckinney (2012) has noted that according to American Consumer
Satisfaction Index, McDonalds has the worst level of customer satisfaction and also
noted that all McDonalds customers are not agreed with the business vision, i.e. Im

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lovin it of McDonalds. Mckinney (2012) has mentioned that it is worth noting that
the company has made significant improvements since 2004. On the other hand,
McDonalds issued a statement in response: At McDonalds, customer satisfaction
has, and continues to be, a top priority. We take all customer feedback seriously.
Through restaurant evaluations and customer and employee feedback, we are
continually evaluating our performance. Our internal and third-party research shows
that we continue to make progress in satisfying our customers (McDonalds, 2012).
The company has been carrying out customer satisfaction survey for the purpose of
hearing from customer because customer satisfaction is important to the business. Ali
et al. (2010) found that improving customer relationship could provide an edge for
fast food retailers in India provided they are able to manage and formulate new
marketing tools and practice to facilitate greater customer satisfaction and better
overall experience. Burger King is second leading fast food business in the world.
Burger King is depending on repeat purchases from satisfied customers. The company
has been focusing on high-quality food, good value and dependable service (Pride and
Ferrell, 2012). They have mentioned that the company has been providing different
services with quality foods to increase number of customers through satisfying their
needs and demands in accordance with current trends and demand within the fast-food
industry. Important objective of corporate marketing strategies is satisfaction of
customers so high level of satisfaction can lead to high level of customer loyalty (Ryu
et al., 2012; Suh and Yi, 2006). It can also lead to trust and positive word of mouth
(Jani and Han, 2011; Pantelidis, 2010). Huang (2011) promotions is different form of
activities for attracting and getting attention of customer to purchase the product or
service through personal selling, public relations, sales promotions and advertising.
According to Kurniawan (2010) promotion of product or service helps in the best way
to builds relationship with customers, because everyone is looking for the best
suitable deal for them. Nadia Farhana and Shohana Islam (2011) this study reveals
that the customers are interested to travel distances for their favorite restaurants. In
order to increase the customers satisfaction with regards to customer service, the fast
food restaurants must focus their strategies to increase the attributes related to the
quality. Additionally, the study suggests that the people are International Journal of
Advanced Scientific Research and Management, Vol. 1 Issue 10, Oct 2016.
www.ijasrm.com ISSN 2455-6378 26 loyal to their favourite fast food restaurants
without having any effect of price variance. Sandeep Singh Chib (2012) revealed that

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the demand for food is on rise so is the spending of the customers. Food is the biggest
consumption category in India with spending amounting to about 21 percent of Indias
GDP. Along with the strong fundamental growth of the economy which provided a
push to consumption, there was an increased market penetration by domestic and
international food players which resulted in availability of products and provided the
required impetus for consumption. Recent researchers reveal that out of the total
Indian consumer spending on food 26 percent is on tertiary value added processed
products. Jooyeon Ha and Soo Cheong Jang (2010) highlights the significance of the
customer perception of atmosphere on the success of the ethnic restaurants. The study
points out that the service and food quality has positive and significant effect on
customer satisfaction and loyalty. The study suggests that employee service and food
quality are of immense importance for ethnic restaurants. Additionally, this study
found that employee service together with ideal restaurant atmosphere effectively
increases the satisfaction and loyalty of customers. The study makes important
contribution towards understanding the formation of satisfaction and loyalty. Form a
practical prospective the quality of physical environment is a critical tool for overall
organization success.

PROMOTIONAL OF PIZZA HUT


The strength of Pizza Huts success globally lies in a marketing
strategy that builds connections with customers every day 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. For instance the
crewmembers at Pizza Hut break into a Boogie at restaurants in
SAKET 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.
In India, eating out is perceived as a form of entertainment. Which is
why Pizza Hut servers not only serve our customers great food, they
also sing and dance for them. And many of Pizza Huts customers
would, we are certain, love to participate in this process. Giving them

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an opportunity to showcase their talent they conceived the Jig n
Jeeto contest. Organized in SAKET 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.
Pizza Huts communication has also always struck a chord with the
Indian customer. Its very first television commercial in India
featured a boy and girl, who meet at a Pizza Hut restaurant in a
traditional arranged marriage setting. They lose their inhibitions
when the pizza arrives. When the sequel went on air featuring the
same couple, now married, with the girls father consoling her over a
pizza as her bridegroom waits outside the restaurant to escort her after
their wedding - the customers involvement was so complete that
several wrote in to inquire whether the couple had children
The more recent campaign that was launched with the introduction of
the Tandoori pizzas featured a typical Indian wedding procession
abandoning the bridegroom when enticed by delicious aromas from a
Pizza Hut restaurant. While the famous Good times start with great
pizzas slogan has been prominent in the communication the focus has
remained on the best and most distinct pizzas.
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

Online promotional strategies

Pizza hut provide many services online such as


Birthday reminder service- here people can save the birthday date of
their friends, relatives , and pizza hut will remind you the birthday date
and birthday parties discount and u can book online
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E-coupon and discount offer available to online customers
Hot line number pizza hut hot line number also provide at online
which is 39883988
Even customer can do online order of pizzas
VIP CLUB -
a VIP (very into pizza) club made where people can register their
email,mobile number where pizza hut provide them latest pizza news,
discounts and offers at email ,mobile phones.

PROMOTIONAL STRATEGIES ACHIEVEMENT OF PIZZA HUT

Pizza Hut is the worlds largest pizza chain with over 12, 500
restaurants in more than 91 countries, serving over 1.7 million pizzas to
nearly 4 million customers across the world every day. The
acknowledged worldwide leader of the pizza industry since 1971, Pizza
Hut has established itself as the market leader of the category in India
with a 48% share (internal survey).
Pizza Huts constant Endeavour 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 customers face - has allowed it to increase its presence in India
to the current 70 restaurants across 18 cities
Pizza Hut has built a reputation of excellence that has earned it the
loyalty of its customers and respect of industry experts. Not only have
the offerings from Pizza Hut been voted number one in countless
customer surveys, Pizza Huts accomplishments as an innovative
business leader have been cited by publications such as Restaurant
Business, Fortune and The Wall Street Journal

BRAND VALUES

Pizza Hut is all about giving a unique and unforgettable dining


experience by offering the best and most distinct pizzas and
impeccable service, in a relaxed and friendly ambience. Pizza Hut is
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fun, friendly and familiar it gives a sense of belonging, of comfort and
an experience that allows friends and families to share a good time
over great pizzas wherever and whenever. The truth about Pizza Hut
pizzas is that they act like a catalyst, a bonfire that brings people
together
Pizza here made by the dough for the crust, is made out of whole meal
flour and not of plain flour (maida), as is largely believed and is
kneaded several times a day at each Pizza Hut restaurant. For the
delicious toppings only freshly cut vegetables and whole unprocessed
meat is used.
Pizza Hut holds the record for the worlds largest pizza (six feet in
diameter), which was baked and served at the grand opening of a Fort
Worth, Texas Pizza Hut restaurant.
Pizza Hut uses more than 700 million pounds of whole wheat each
year, representing the annual yield from nearly 500,000 acres of wheat
and it uses more than the equivalent of 525 million pounds of tomatoes
annually. If the slices of the more than 700 million pounds of pepperoni
used per year by Pizza Hut were to be laid side by side, they would
create a path that would stretch around the world twice and go to the
moon!

Recent Developments
As a part of its continuing efforts to provide its customers with maximum value
in India, Pizza Hut launched the Tandoori range of pizzas, which have a
distinct Indian flavour and offer an innovative and exciting combination of
toppings. These pizzas are served with a sliver of lemon to enhance the
overall experience of relishing each scrumptious mouthful. Pizza Huts
leadership in innovation was further reinforced with the introduction of the
Chicken Stuffed Crust pizza last year, which has a ring of succulent chicken
baked right into the crust making it the most delightful experience. The latest
offering from the Pizza Hut stable was the delicious Chettinad pizza, a
mouthwatering combination of the worlds best pizzas with strong flavours of
the Chettinad region. An initiative from Pizza Hut that met with tremendous
success was the Kids Eat Free promotion, which was introduced last year to

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coincide with the summer vacations. This was the first time in India that a
quick restaurant chain offered a free pizza to all children, 12 years and below

PRICE AND PROMOTIONAL WARS BETWEEN DOMINIOS AND PIZZA


HUT

Company Price Range (Rs)


Dominos 39-265
PizzaHut 75-350

Dominos was spending 50% of its total marketing budget on special


offers and discounts along with delivered direct mailers and pizza
training classes. Dominos also had a tie-up with Discovery Channel
under which the channel advertised its pizzas while Dominos put the
channels name on its mailers. Dominos conducted Pizza making
classes for school students. In 1998, it offered a clock to all its
customers who had bought Rs.15,000 worth of pizzas throughout the
year. Said a company official, Database marketing is an important
part of our strategy. in 1998, Pizza Hut also launched a promotional
campaign to attract the customers. It had a Pan In Your Name
contest where it offered a free pizza to anybody with the word Pan
in his/her name for example, Pankaj or Panandikar. In April 2000,
Pizza Hut launched its innovative Pizza Pooch Menu and a Pizza
Pooch Birthday Party package exclusively for kids in the 6-10 age
group.
In March 2000, Dominos slashed prices of Pizza by 40%. The price of
a regular Pizza with three toppings was cut from Rs.225 to Rs.130. In
October 2000, Dominos ran a scheme, where it gave away two pizzas
for the price of one, within five days of placing an order. During the
same time, Pizza Hut launched a one rupee pan deal scheme.
Under the scheme, for every pan Pizza purchased, another was given
away for Re.1. In November 2000, Pizza Hut introduced a scheme
called barah nahin to tera (if not served in 12 minutes, it is yours free).
The scheme offered a speed lunch in 12 minutes for Rs.89. One

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second over 12 minutes guaranteed that the customer would get it
free

Brand building through advertising


Dominos and Pizza Hut initially restricted their ad strategy to banners,
hoardings and specific promotions. In August 2000, Dominos
launched the Hungry Kya? (Are You Hungry) sequence of
advertisements on television. A company official said, We realized that
a Pizza couldnt be slotted it could be a snack; then again, it could
also be a complete meal The only definitive common link between
Dominos Pizzas and eating was the hunger platform
The launch of Hungry Kya? campaign coincided with Dominos tie-up
with Mahanagar Telephones Nigam Ltd. (MTNL) for the Hunger
Helpline. The helpline enabled the customers to dial a toll-free
number (1600-111-123) from any place in India. The number
automatically hunted out the nearest Dominos outlet from the place
where the call was made and connected the customer for placing the
order. The number also helped Dominos to add the customers name,
address and phone number to its database.This was followed by Pizza
Huts 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. Once the awareness of this message is
high, we will focus on other facets of the brand and its offerings.
Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has
KFC, Taco Bell, A&W and Long John Silvers under its umbrella. It is the
worlds largest pizza chain with over 12,500 restaurants across 91 countries.
Pizza Hut was started in 1958, by two brothers Frank and Dan Carney in
Wichita, Kansas. They had the idea to open a pizza parlor. They borrowed
$600 from their mother, and opened the very first Pizza Hut. In 1959, the first
franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut

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was serving one million customers a week in their 310 locations. In 1970,
Pizza Hut was put on the New York Stock Exchange under the ticker symbol
PIZ.
In 1986, Pizza Hut introduced delivery service, something no other restaurant
was doing. By the 1990's Pizza Hut sales had reached $4 billion worldwide. In
1998, Pizza Hut celebrated their 40th anniversary, and launched their famous
campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the
United States were over $5 million.
The first Indian outlet was opened in June 1996 in Bangalore. In India, Pizza
Hut has 139 restaurants across 36 cities. Pizza Hut has been voted the best
family restaurant for the second year running at the 2007 Tommys Parent
Friendly Awards. "Pizza Hut is known for quality, innovation and category
leadership.

RETAIL ENVIRONMENT
Out of all the existing pizza chains such as Domino's, Smokin Joes, Papa
Johns, Pizza Corner, U.S Pizza, Pizza Hut has a dominating market share of
48% of the total market share. However, this forced competitors to look for
new methods of increasing their customer bases. They all try to come up with
some newer, bigger, better pizza for a low price. But Pizza Hut has always
had the first mover advantage. Their marketing strategy in the past has
always been to be the first. One of their main strategies, that they still follow
today is the diversification of the products they offer.
The market has become greatly competitive and the customer has become
more discerning and adventurous. This however has not affected Pizza Hut's
comfortable reign over the Indian pizza industry and the ever increasing
number of loyal customers who have made it possible for Pizza Hut to
aggressively extend its presence.
Pizza Hut is always adding something new to their menu, trying to reach new
markets. For example, in 1992 the famous buffet was launched in Pizza Hut
restaurants worldwide. They were trying to offer many different food items for
customers who didn't necessarily want pizza. Another strategy they used in
the past and are still using is the diversification of their pizzas. Pizza Hut is

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always trying to make a pizza into something slightly different so that
customers will think its a whole new product. E.g., in 1983, Pizza Hut
introduced Pan Pizza, which had a guarantee of being ready to eat in 5
minutes when dining at Pizza Hut restaurants. In 1993, they introduced the
"BigFoot," which was two square feet of pizza cut into 21 slices. In 1995, they
introduced "Stuffed Crust Pizza," where the crust would be filled with cheese.
Currently, they are marketing "The Big New Yorker," trying to bring the famous
New York style pizza to the whole country.

POSITIONING
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. Pizza Hut
went on to play a significant role in pioneering and developing this category 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 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.
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
139 restaurants across 36 cities

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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. Most of Pizza Hut's
competitors do not have restaurants. Because of the restaurant, Pizza Hut
can market to different segments that other pizza chains cannot. For example,
Pizza Hut can market to families much easier than Domino's or Little
Caesar's. 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.

PRODUCT ASSORTMENT
Pizza Hut will offer a new product called "The Extreme" pizza. "The Extreme"
is a twenty-inch pizza with twice as much cheese and toppings as Pizza Hut's
other pizzas. This new pizza will have many different competitive advantages.
The first competitive advantage of "The Extreme" is that it is the largest pizza
on the market. No other pizza restaurant offers a twenty-inch pizza.
~ 22 ~
The second competitive advantage is that it has more cheese and toppings
than any other pizza on the market.
Another competitive advantage is the Pizza Hut brand name. Pizza Hut has
built a brand name that means quality products and services. Since Pizza Hut
will be introducing "The Extreme," customers will automatically think this is a
high quality product.
The final competitive advantage is that this product will be the first pizza to
target America's youth. "The Extreme" pizza will target Generation X and
Generation Y or people between the ages of 12 and 30. This market
purchases a lot of pizza each year, but very few pizza restaurants actually
target them. "The Extreme" will be introduced on Super Bowl Sunday, 2001.
During the introduction stage of the product life cycle, Pizza Hut will try to
establish a market for the product and persuade early adopters to buy. During
the growth stage, Pizza Hut will try to build sales and develop a preference for
the product. Pizza Hut will try to seek differentiation during the maturity stage.
"The Extreme" is expected to begin to decline after one year on the market.

PRICE POSITIONING
In the past, Pizza Hut has successfully used the high/low pricing strategy
when setting the retail price of its products. The high/low retail pricing strategy
allows Pizza Hut to charge a price that is above the competition, but also
promote frequent sales to lower the price below them. The retail price of "The
Extreme" pizza should be set at $9.99, which is higher than Pizza Hut's
competitors. 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. Customers
can purchase "The Extreme" for $9.99 and receive a two-liter bottle of
Mountain Dew for free. 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

~ 23 ~
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 excellent.

CUSTOMER PROFILE
This target profile provides a comparison of Pizza Huts customers
compared to:
a) Total Population 14+
b) Total Purchased from Fast Food Places/Restaurants in the Last 4
Weeks.
This target profile provides you with instant access to some of the world's
most insightful, robust consumer research, with unmatched accuracy, integrity
and sheer power.
Armed with a complete picture of your customers or your competitors
customers, you are in the best position to fine tune you product strategy, focus
your communication, and thereby optimize your marketing budget.

Dont rely on unconfirmed reports; buy this target profile to get all that data,
over 400 variables, everything from attitudes and activities to media
consumption.

CONSUMER PULL FACTORS


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.

~ 24 ~
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.
Pizza Hut has a unique tradition. 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.

~ 25 ~
CHAPTER III
PIZZA HUT AND DOMINOS

2.1 HISTORY

As per Answers.com Pizza is defined as, A baked pie of Italian origin consisting
of a shallow breadlike crust covered with toppings such as seasoned tomato
sauce, cheese, sausage, or olives.
In the land of tandoori rotis and masala dosas, does Italian food have any place?
Yes, says the statistics. The pizza industry is really sizzling with hectic activity.
The Pizza segment is growing in India by 40 per cent with Indians consuming
3.5 million pizzas per month in 2008. The organised pizza market comprised of
the large MNC brands is worth $147 million (700 crore) according to Food
Franchising Report 2011 published by Franchise India Holdings Ltd and FICCI-
CIFTI. Organized food service is characterized by a chain of outlets using a
uniform brand identity across all outlets, centralized procurement of supplies,
focus on quality, standardization and safety from suppliers uniformity in product
menus across outlets, uniform taste, existence of strong controls and the use of
technology. Indian taste buds are demanding more and pizza industry one of
the most intensive industry is all gearing on.

Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has
KFC, Taco Bell, A&W and Long John Silvers under its umbrella. Pizza Hut is the
worlds largest pizza chain with over 12,500 restaurants across 91 countries
In India, Pizza Hut has 137 restaurants across 36 cities, including SAKET,
Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh
amongst others. Yum! is in the process of opening Pizza Hut restaurants at
many more locations to service a larger customer base across the country.

~ 26 ~
2.2 ORGANIZATION STRUCTURE

The best way to accomplish this task is to have a visible and easy to follow flow
chart in between sections, departments and terminals that are paid to fulfill their
responsibilities. It is important that the name and post of each staff member is
clearly and appropriately indicated on this chart.

Terminals are not to cross over one another in a nonsensical manner! Another
words the communication between each terminal has to be conducted in an
orderly manner, usually from top to bottom or bottom to top without crossing over
to different departments or posts if those departments or posts are not within the
command channel. The best way for different departments to communicate to
each other is by department heads or if communication has to take place
between departments on a lower level in the chain of command it has to be with
the consent of the managers or department heads so there is no unintentional
miscommunication and disruption in the flow of the operation. This is not to
create a dictatorship, but to create a sane environment where particles and
communications can flow flawlessly without any confusion.

To further accomplish this ideal scene, it would be best to divide the business
into two major divisions, the division of communication and the division of
organization. The division of communication would consist of executives,
communications and dissemination and the division of organization would
consist of income and disbursement, production and quality control and
department of image and public information.

2.4 CURRENT SALES, PRODUCT MIX

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
~ 27 ~
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. In fact, to ensure stringent international bench-
marks in the quality of products and services at all its restaurants across the
world, Pizza Hut has a mystery shopper program in which an unknown official
visits a restaurant and evaluates it on certain defined parameters called
C.H.A.M.P.S. that standfor Cleanliness, Hospitality, Accuracy, Maintenance,
Product quality andSpeed. Based on the report submitted by the official, the
restaurants are rated and in the rare case of finding under performers, they are
kept under strict vigil.

Pizza Features:
A critical factor in Pizza Huts 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 havingunderstood the pulse of the
customers in India, Pizza Hut has clearlyestablished itself as a brand with an
Indian heart. Besides offering an extensive range of vegetarian pizzas, it was the
first pizza chain to opena 100% vegetarian restaurant in India in Surat and later
in Ahmedabadand Chowpatty, where it offers a Jain menu sans all root-
basedingredients.

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 acompetitive
edge is that in addition to an extensive range ofinternationally renowned pizzas
like The Italian, the proprietary PanPizza and Stuffed Crust, in India the menu
offers the option of acomplete meal.It includes appetizers, a Salad Bar - where
the customers can make their own fresh salads, pastas and desserts.

~ 28 ~
Mass customisation:
The main advantage of pizza hut is that one can customise his own pizza by
selecting the base and loading it with the toppings of his choice. Pizza Hut has
introduced various toppings and crust for its customers to choose from. The
most unique feature is that there is Pan 4 All scheme where one can select 4
different types of vegetarian /non- vegetarian combinations of pizza! This is a
unique way of offering as there are many consumers who come in groups where
someone in the group may want a non- vegetarian pizza can avail the offer.

Conformance quality:
Pizza huts products have very high conformance quality i.e. All the products
produced are identical and meet the promised specifications.

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:
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 are served within 15-20 minutes and the take away orders (ordered
on phone) are delivered within 30-45 minutes. Care also has been taken by the
company to pack the pizzas in special covers so that it remains hot till the

~ 29 ~
customer haves the food. Also discount coupons are given to the customer in
case one doesnt want a free pizza.

Product Mixes

Width: The Companys total width of the product mix includes pizzas, pastas,
appetizers, salads, beverages and desserts.

Length: The total number of items available in the companys offerings is 52.
This can be seen from their menu card.

Depth: Depth refers to the number of pizzas available in each variant. From the
menu we can see that for each pizza a veg. and non-veg. pizza is available.

Consistency: The consistency is maintained by Pizza Hut as it operates in only


branded food industry.

Product Line Analysis


The company has a basic platform for offering pizza and have added on different
modules to meet the ever changing customer requirements. Thus, the major
chunk of profits comes from pizzas and pastas. While beverages and desserts
contribution towards profits is to a lesser extent.

Product Line:

CORE PRODUCT STAPLES SPECIALITIES CONVINIENCE


ITEMS

BEVERAGES &
PIZZA PASTAS DESERTS APPETISERS

Eg. Veggie Eg. Eg. Eg.


crunch, Spicy Tomato Chocolate Pepsi,
Margherita Truffle Cake Garlic Bread

~ 30 ~
Figure 2, Product line of Pizza Hut

Core product
Pizza forms the core product for marketing of pizza hut as it is promoted
extensively, produces maximum sales volume but lower margin for Pizza Hut.

Staples
Pastas can be classified as staples for pizza hut as it is not heavily promoted,
produces lower sales volume but higher margins for pizza hut.

Specialities
Deserts like truffle cake can be classified as specialities as they are highly
promoted so that sales of other services like birthday parties can go up.

Convenience items
Appetisers like garlic bread can be classified as convenience items as they are
not much promoted but generate high sales volumes and tends for impulse
buying.

Co- Branding
Pizza hut has joined hands with visa for availing various offers. However this
offer is only for the in dining i.e. one cannot avail the offers pertaining to visa for
take away and home orders. A visa credit card holder can avail offers like family
meal for a lower cost and select other combinations of items which would have
not been possible otherwise. Thus, visa and pizza hut assist each other for
branding themselves.

Figure1: Pizza hut offer with ICICI Bank

The restaurant has a tie-up with PepsiCos range of products, under which it
serves all Pepsi Foods carbonated beverages, Tropicana fruit juices, and

~ 31 ~
Aquafina bottled water. The chain has recently begun serving beer at some of its
outlets after obtaining the necessary licenses.

Packaging &
Labelling

The packaging of
the pizza has
been quite
extraordinary
in the sense
that, it serves the
basic
purpose of
serving hot tasty pizza.

In house dining
In house dining, the pizzas are not packed, instead they are served in hot pans,
and plates are provided to the customers. The extra ingredients like oregano
mix, chilli flakes etc. are kept in a bottle having pores. Thus, the customer can
easily pour the ingredients into the pizza.

Take away orders


In case of take away orders pizzas are put in a paper box and neatly labelled
with pizza hut brand logo. Also, there is a plastic support given (its in the shape
of a tripod) at the bottom of the pizza to prevent it from sticking at the bottom. A
pizza hut logo is also given in the tripod. The extra ingredients like oregano mix,
chilli flakes etc. are given in a paper pouch which is also branded with the pizza
hut logos.

Home delivery orders

~ 32 ~
All the pizzas covered in paper boxes described above are packaged into a
special delivery bag for retaining the heat. Thus we can observe that the
company tries to imbibe the brand of pizza hut in the minds of consumers
through its labelling and packing.

2.5 MARKET POSITION

Promotion is a form of corporate communication that uses various methods to


reach a targeted audience with a certain message in order to achieve specific
organizational objectives. Nearly all organizations, whether for-profit or not-for-
profit, in all types of industries, must engage in some form of promotion. Such
efforts may range from multinational firms spending large sums on securing
high-profile celebrities to serve as corporate spokespersons to the owner of a
one-person enterprise passing out business cards at a local businesspersons
meeting. Like most marketing decisions, an effective promotional strategy
requires the marketer understand how promotion fits with other pieces of the
marketing puzzle (e.g., product, distribution, pricing, target markets).
Consequently, promotion decisions should be made with an appreciation for how
it affects other areas of the company. For instance, running a major advertising
campaign for a new product without first assuring there will be enough inventory
to meet potential demand generated by the advertising would certainly not go
over well with the companys production department (not to mention other key
company executives). Thus, marketers should not work in a vacuum when
making promotion decisions. Rather, the overall success of a promotional
strategy requires input from others in impacted functional areas.
Types of Promotion
Advertising
Sales Promotion
Events/ Experiences
Public Relations
Personal Selling

~ 33 ~
PIZZA HUT PROMOTIONAL STRATEGIES
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 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.
In fact, to ensure stringent international bench-marks in the quality of
products and services at all its restaurants across the world, Pizza Hut
has a mystery shopper program in which an unknown official visits a
restaurant and evaluates it on certain defined parameters called
C.H.A.M.P.S. that stand for Cleanliness, Hospitality, Accuracy,
Maintenance, Product quality and Speed. Based on the report
submitted by the official, the restaurants are rated and in the rare case
of finding under performers, they are kept under strict vigil
A critical factor in Pizza Huts 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.
Over the years Pizza Hut has also developed and successfully
introduced a range of products especially suited to the Indian palate.

~ 34 ~
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

~ 35 ~
DOMINOS PIZZA

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 .
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.
In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza
was introduced, for the first time in twenty five years the company was being
forced to react to market demand. This move consolidated the financial base and
ensured the growth of Domino's Pizza , as the same year they opened their five
thousandth store.
For many years the company had advertised that if the delivery of their pizzas
took longer than thirty minutes then the pizza would be delivered free. This was
parodied by the Teenage Mutant Ninja Turtles movie which specified the "pizza
dude has 30 seconds" to complete the delivery. The turtles pizza was late and

~ 36 ~
they received a refund of $3 for "being two minutes late, dude!" However the
benefits to Domino Pizza was enormous as millions of kids were to hear the
name of Domino Pizza endorsed on celluloid.
By 1994 Dominos Pizza marketing policy widened as chicken wings were
introduced to the menu. At the same time the company hit the African continent
as they opened a store in Egypt . By 1996 Dominos Pizza website was launched
and the company declared global sales of nearly $3 billion.
Despite their reluctance to add a wider range menu they have as a company
given the pizza industry many innovations that have now become standard. The
belt driven pizza oven was the invention of Domino Pizza and they began
using corrugated cardboard delivery boxes which were very effective at holding
the heat within the pizza during the delivery time. Ever mindful of the fact that a
cold pizza must be about the worst dining experience on earth Dominos pizza
introduced the "Heat Wave," a portable electrical bag system that keeps the
pizza hot during delivery.
By 1997 they had also had an internal modern facelift as their stores were all
brightened up and the company introduced a new logo. Domino Pizza
continued to grow exponentially and in 1997 they opened seven stores in one
day but on 5 different continents.

The Domino's Pizza Logo

Figure 3 : logo of Dominos Pizza

~ 37 ~
In 2004, Super Bowl Sunday was the most hectic pizza delivery day of the year
when Dominos Pizza sold over a million pizzas, which was an increase of 42
percent on their normal Sunday trading volume. As the company continues to
grow so rapidly it is just as well the practice of adding a dot onto the logo was
discontinued after three outlets as Dominos Pizza now has over seven thousand
outlets globally.

DOMINOS PIZZA TIMELINE

1960s
Tom Monaghan and his brother James purchase "DomiNick's," a pizza store in
Ypsilanti, Michigan. Monaghan borrowed $500 to buy the store. James trades his
half of the business to Tom for a Volkswagen Beetle. Tom Monaghan is sole
owner of company, and renames the business "Domino's Pizza, Inc." The first
Domino's Pizza franchise store opens in Ypsilanti, Michigan.
1970s
Despite its high turnover, Domino's was $1.5 million in debt. By 1970, its
creditors took action and 200 lawsuits were filed against it. Monaghan lost
control of the company to the banks, only to have it returned to him 10 months
later in worse condition than when they had taken it over. Monaghan and his wife
managed to salvage what was left of the company and once again took off in
pursuit of their dreams.

1980s
In 1983 the company celebrated the opening of its first international store in
Winnipeg, Canada. Domino's Pizza International, which Monaghan called the
company's "hope for the future," became in part responsible for much of the
company's later movement and growth. 1983 also saw the opening of the
company's 1000th store in Colorado Springs, Colorado. After a quarter of a
century of honing its pizza making and delivery systems, Domino's Pizza knew
the pizza delivery business. In 1985 tens of thousands of customers around the
world showed their confidence in the company by ordering 135 million pizzas
during that year, an astonishing 69% increase over the previous year's sales. By
1989 Domino's had opened its 5000th store.

~ 38 ~
1990s
Domino's Pizza signs its 1,000th franchise. Domino's rolls out Breadsticks, the
company's first national non-pizza menu item. Crunchy Thin Crust pizza is rolled
out nationwide. The company discontinues the 30-minute guarantee and re-
emphasizes the Total Satisfaction Guarantee.Domino's Pizza International
division opens its 1,000th store. First store opens on African continent, in Cairo,
Egypt. Domino's launches its web site on the Internet (www.dominos.com). The
company reaches record sales of $2.8 billion system-wide. Domino's Pizza
opens its 1,500th store outside the United States, opening seven stores in 1 day
on 5 continents consecutively. Domino's Pizza launches a campaign to update
the company logo and store interior with brighter colors and a newer look.

2000s
Domino's Pizza International opens its 2,000th store outside the United States.
Domino's Pizza celebrates 40 years of delivering pizza and innovation to homes
around the world. Domino's 7,000th store opens in Brooklyn, New York.
Domino's launches long-term national partnership with the Make-A-Wish
Foundation. In February 2002, Domino's Pizza acquired 82 franchised stores in
the Phoenix, Ariz., market, making it the largest store acquisition in the
company's history. In August 2002, Domino's kicked delivery up a notch with the
introduction of Domino's Pizza Buffalo Chicken Kickers and marked the creation
of a whole new surprising category - premium chicken delivered right to the door!
Domino's launches Domino's Cheesy Dots, delicious round balls of dough
covered in a blend of zesty melted cheeses. Domino's becomes an associate
sponsor for the Drive for Diversity program, a minority driver development
program designed to provide a steady pipeline of well trained and supported
minority drivers for the NASCAR circuit.Domino's Pizza, Inc., the recognized
world leader in pizza delivery, begins trading common stock on the New York
Stock Exchange (NYSE) in July 2004, under the new ticker symbol "DPZ."
Domino's announces a three-year partnership with St. Jude Children's Research
Hospital. St. Jude was selected as Domino's "charity of choice" by franchisees
and team members.

~ 39 ~
2010
After years of languishing near the bottom of consumer taste perception
studies,Domino's proudly boasts its research-backed wins over Papa john,s and
pizza Hut in a national taste test of hand-tossed pepperoni pizza,sausage pizza
and extra-cheese pizza chairman and CEO David A.Brandon steps down as
CEO effective March 7 and the Board of Director's Sucessor . elect j.Patrick
Doyle as Brandon's sucessor . Brandon will be retained by the Compan as a
Special adivisor for the remainder of 2010 and continue as a non-executive
Chairman of the Board.Concurrently,the University of Michigan announces
Brandon will serve as its next Director of intercollegiate Athletics. Dominos
opened its 9,00th store on March 11.

Dominos Pizza India Limited


Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the
Master Franchisee Rights for Domino's Pizza for India, Nepal, Sri Lanka and
Bangladesh. The company has been listed on the Indian bourses recently. Prior
to Sep 24, 2009, the company was known as Domino's Pizza India Limited and
underwent a name change, rest of the terms remaining the same. The promoters
of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant Enpro
Private Ltd. Domino's Pizza opened its first store in India in January 1996, at
New Delhi. 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, we 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.
Over the period since 1996, Domino's Pizza India has remained focused on
delivering great tasting Pizzas and sides, superior quality, exceptional customer
service and value for money offerings. We have endeavored to establish a
reputation for being a home delivery specialist capable of delivering pizzas within
30 minutes or else FREE to a community of loyal consumers from all our stores
around the country.
Domino's vision is focused on " Exceptional people on a mission to be the best
pizza delivery company in the world! ". We are committed to bringing fun,
happiness and convenience to lives of our consumers by delivering delicious

~ 40 ~
pizzas to their doorstep and our efforts are aimed at fulfilling this commitment
towards a large and ever-growing customer base.
Domino's constantly strives to develop products that suit the tastes of our
consumers and hence delighting them. Domino's believes strongly in the
strategy of 'Think global and act local'. Thus, time and again we have been
innovating with delicious new products such as crusts, toppings and flavours
suitable to the taste buds of Indian Consumers. Further providing value for
money and affordable products to our consumers has been an important part of
our efforts. Our initiatives such as Fun Meal and Pizza Mania have been
extremely popular with consumers looking for an affordable and value for money
meal option.
Over a period since 1996, Domino's Pizza India has established a reputation for
being a home delivery specialist capable of delivering its pizzas within 30
minutes to its community of loyal customers from its entire stores around the
country. Customers can order their pizzas by calling the single countrywide
"Hunger Helpline" - 1600-111-123 and Dominos was the first one to start this
facility for its customers.
Dominos vision is Exceptional people on a mission, to be the best pizza
delivery company in the world!. Dominos is committed to bringing fun and
excitement to the lives of our customers by delivering delicious pizzas to their
doorstep in 30 minutes or less, and all our strategies work for fulfilling this
commitment towards our large and ever-growing customer base.
Domino's constantly strives to develop the product that suits the taste of its
customers to bring out the 'WOW' effect (i.e. the feel good factor). Dominos
believes in the strategy of Think local and act regional that is blended with a
playful image personified by our "Hungry Kya?" positioning. Thus, time and
again Dominos has been innovating toppings, suitable to the tastebuds of the
locals and these have been very well accepted by the Indian market, are doing
extensively well in the market. We are constantly in the process of innovating
further; we introduce new topping every 3 4 months

~ 41 ~
Dominos understands customers demand and is constantly developing local
flavors understanding the local sentiments. Also, the ingredients, sauces etc. are
made keeping in mind the taste buds of Indian consumers while retaining the
international flavor.
Dominos constantly strive to make the company an integral part of the lives of
the target audiences by getting involved with the clientele at the emotional level
and building long-term relationship with them. Thus, Dominos concentrate more
on carrying out below-the-line activities in the area it serves.
Dominos believe in bringing fun and excitement into the lives of our clientele.
We take our delivery proposition very seriously and our entire corporate ethic is
based on it. Domino's is the recognized world leader in Pizza delivery. But it isn't
just about delivering; it's also about giving back to the community. Dominos
believes that an essential component of corporate responsibility is to provide
support to charitable organizations that benefit the communities where its
employees and customers work and live. Dominos worldwide is known for its
commitment toward social causes and believes in adding fun to the lives of our
customers and communities it serves.
In India, Dominos has been associated with the NGOs devoted to the cause of
underprivileged Childrens. Dominos conducts Store Educational Tour (SET) for
the underprivileged children time-to-time. Recently this was done in the one of
the Dominos outlet in Delhi and Mumbai with the underprivileged children from
CRY (Child Relief and You) where Dominos took the pledge to provide part-time
employment to the eligible wards from CRY who are above 18 years, reiterating
its commitment towards social causes. Also, fifty- percent of that days first 20
deliveries of the store were given to CRY toward the cause of the
underprivileged children. The children had a gala time while they learned to

~ 42 ~
make and bake pizzas at the store and finally tasted the sumptuous offerings
made by them during the Store Educational Tour.
Dominos Pizza India also boasts about its commitment to serve its customers
on time by implementing the 30 MINUTES OR FREE service commitment,
they have been able to achieve this as a result of continuous efforts and
dedication of the entire team in improving operating efficiencies.
Dominos Pizza India has been consistently rated amongst the top 2 pizza
chains worldwide in the Dominos family by Dominos International, in terms of
quality of operations. Our pizza delivery times have also been judged as the best
delivery times in the world across all Dominos.
Dominos pizza Gwalior menu card

Figure5 : Menu of Dominos Pizza

~ 43 ~
KEY INFORMATION

Chairman of board of directorsCEO, Dominos Pizza India Ltd

David Brandon Ajay Kaul


(Non Executive) (CEO)

CEO

J. Patrick Doyle

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
Pizza Pooch Christmas Blast program, a 16-day event aimed at attracting teens
and kids. Pooch doggy bags were handed out at each store to young customers.
The bags contained coupons, candy, stickers and temporary tattoos. For this,
pizza hut tied up with leading companies like Adidas, Nestle, Encyclopedia
Britannica, and VIP who offered bundle of gifts and prizes to all its young
customers who make up 60 percent of Pizza Hut's customer base.

Also, along with its menu are attached coupons giving various offers which
further induce the customers to come to the store. Shown below is an exclusive
offer for its VIP Members.

~ 44 ~
Public Relations
In India, eating out is perceived as a form of entertainment. Pizza Hut has
realised this and hence it serves its customers not only great food, but also sing
and dance for them. Also various contests like Jig n Jeeto giving customers an
opportunity to showcase their talent were introduced to attract more customers
and engage them.

Events and Experiences


Pizza hut use their events to reach to the customer and often it is used as brand
building as well as product selling.

Direct and Interactive Promotion


Pizza hut provide many services online such as Birthday reminder service
wherein, people can save the birthday date of their friends, relatives and loved
ones and pizza hut reminds them the birthday date and also offers birthday
parties discount. Customer can book online E-coupon and discount offer
available to online customers on its Hot line number - 39883988. Customers can
use this number to order pizzas.

~ 45 ~
Personal Selling
Pizza huts try to attract the younger generation as their main market segment
but they mainly target high and higher middle class customers. They actually
bother about customers enjoyment and food and not the price. Thus Pizza hut
concentrates more on carrying out above the line activities in the area it serves.

Word Of Mouth
It is one of the traditional promotions for any industry. Pizza hut also get benefit
from it as Pizza Hut makes all the efforts to make its customers time the most
enjoyable amd memorable once.

PEOPLE

At Pizza Hut, we believe that training and development, both personal and
professional, are crucial to our long-term success

Pizza Hut aims to Run Great Restaurants and to that end, they need great
people. They strive to create a nurturing environment that gives their employees
a place to contribute and succeed. They have the power of 100,000 Team
Members who take pride in making and serving perfect pizzas.

Pizza Hut offers exceptional training programs, a wide variety of career path
options, and a work environment that emphasizes coaching as a basis for
learning and growth. They hire talented individuals who take pride and
ownership in the business by striving to be the best. They hire Team Members
who believe the Companys success is in their hands. To encourage
development, Pizza Hut has defined the skills, knowledge and training required
for each position and this information is communicated to each Team Member
through specific and thorough Job Maps. Every Team Member has the
opportunity to advance based upon his or her performance and potential. Their
program includes annual performance appraisals designed to let Team Members
know exactly what the expectations are and what opportunities exist for
improving.

~ 46 ~
Pizza Hut has created a progressive restaurant operations career path with
career opportunities designed to enable each team member to achieve his or her
personal best. This also allows Pizza Hut to maximize the available talent by
promoting internally. Many of the Senior Managers there began their careers as
restaurant Team Members. These opportunities also include unique
developmental assignments in field training, staffing, marketing, facilities
management, and in operations positions at their Restaurant Support Centres.

PIZZA HUT The Only Thing That Tops Our Pizza is Our People!

Be the Leader, Act like the Leader!


Every member of the Pizza Hut family believes in and exemplifies Tricon's
Leadership Principles. Pizza Hut enables them to make success happen by
pervading all levels of their organization, that is, from the restaurant
crewmember to upper management.

"Walking the Talk" with YUM! Leadership Principles

Customer Focus
We listen and respond to the voice of the customer.

Belief in People
We believe in people, trust in positive intentions, encourage ideas from everyone
and actively develop a workforce that is diverse in style and background.

Recognition
We find reasons to celebrate the achievements of others and have fun doing it.

Coaching and Support


We coach and support each other.

Accountability
We do what we say, we are accountable, and we act like owners.

~ 47 ~
Excellence
We take pride in our work and have a passion for excellence.

Positive Energy
We execute with positive energy and intensity. We hate bureaucracy and all the
nonsense that comes with it.

Teamwork
We practice team together, team apart.

PEOCESS

When a customer visits Pizza Hut there are crew members for his assistance.
They assist the customers to their seats based on the number of people. Also
they provide menu card and
explains the customer about the
new items in their menu.
Customers order is
communicated to their chef.
Once the order is prepared its
served to the customer in plates.
The pizza is bought in pan and
then served to the customer. In
case of take away orders the
order is parcelled in special package.

For home delivery orders received on telephone or online


the order is prepared, packaged and delivered to the
customer. Pizza Hut tries to deliver orders within 30-45
minutes of order being placed. Though there are certain
terms and conditions like orders are delivered to places
which fall within a particular distance from the outlet.

~ 48 ~
PHYSICAL EVIDENCE

Pizza Hut is into service industry and there are various tangibles that show and
prove the proposition Pizza Hut stands for and the way it has positioned itself. As
Pizza Hut aims to provide customers with enhanced dining experience they have
given their outlets a very comfortable and distinguished feel. In 2008, as per their
new strategy, all the outlets in the Pizza Hut chain were sporting an upgraded
look, which fits in with the brand evolution and redefines its image in the casual
dining space. Also, they are able to distinctly position themselves in the casual
dining segment and differentiate themselves from fast food and fine-dining
segments. The dining experience has been revamped at all the touch points i.e.
menu, store design and service. The sights and sound in a premium Persian
cafe such as warm lighting, earthy tones, destination seating for groups of
different sizes and mood graphics on the walls have inspired the store design
elements of Pizza Huts new dine-in concept.

The pizza too was been Indianised, the crust is Italian, but the toppings are
essentially Indian. The whole idea was to give familiar tastes and toppings.
Indians relate more to kebabs, chicken or paneer tikka toppings than pepperoni.

Critical
accounting
policies and estimates

Revenue recognition. They earn revenues through their network of domestic


Company- owned and franchise stores, dough manufacturing and supply chain
centers and international operations. Allowance for uncollectible receivables.
They closely monitor their accounts and notes receivable balances and provide
allowances for uncollectible amounts as a result of reviews.
These estimates are based on, among other factors, historical collection
experience and a review of receivables by aging category. Long-lived and

~ 49 ~
intangible assets. They record long-lived assets, including property, plant and
equipment and capitalized software, at cost. For acquisitions of franchise
operations,They estimate the fair values of the assets and liabilities acquired
based on physical inspection of assets, historical experience and other.
Insurance and legal matters. If estimation relating to legal matters proved
inaccurate for any reason, they may be required to increase or decrease the
related expense in future periods. At December 30, 2007 and December 28,
2008, They had approximately $8.2 million and $2.9 million, respectively,
accrued for legal matters. For certain periods prior to December 1998 and for
periods after December 2001,they maintain insurance coverage for workers
compensation, general liability and owned and non-owned auto liability under
insurance policies requiring payment of a deductible for each occurrence up to
between $500,000 and $3.0 million, depending on the policy year and line of
coverage. Income taxes. Their net deferred tax assets assume that they will
generate sufficient taxable income in specific tax jurisdictions, based on
estimates and assumptions. The amounts relating to taxes recorded on the
balance sheet, including tax reserves, also consider the ultimate resolution of
revenue agent reviews based on estimates and assumptions. If these estimates
and assumptions change in the future, They may be required to adjust their
valuation allowance or other tax reserves resulting in additional income tax
expense or benefit in future periods.

Over the next few months Dominos will launch a dedicated iPhone
application foronline ordering.As our customers and the broader Australian
market adopt new
technologies,Dominos is
committed to ensuring we
remain at the forefront with
new innovations. TheiPhone
application will provide
customers with greater
freedom to order their
favouriteDominos meal

~ 50 ~
wherever they are. This Australian-rst for the pizza industry will help drive
online business and cement the position as the leading innovator.

E-Commerce

In 1999, Dominos Pizza became the first pizza delivery company in the world
to offernation-wide internet and interactive television ordering. Delivered pizza
can be ordered viawebsite (www.dominos.co.uk) or via any of the UKs major
interactive TV services.

Future plans
According to Yum! Restaurants International, India is amongst the top five
growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit
growth in India and hence is confident about expanding its operations in India.
Pizza Hut hopes to increase the number of Pizza Hut outlets in India to 180 by
the end of 2008 from the present figure of 130. The expansion programmed
will make Pizza Hut the fastest growing western restaurant chain in India. In
addition, Yum! plans Pizza Hut to be in 42 cities by end of 2007, and 55 cities
by end of 2008.

MARKETING OPERATIONS

Domestic stores contribute between 4% to 5% of their retail sales to fund


national marketingand advertising campaigns advertising programs. It also
contribute to market-level mediacampaigns. These national and market-level
funds are administered by Dominos National
Advertising Fund Inc., or DNAF, not-for-profit advertising subsidiary.The funds
remitted to DNAF are used primarily to purchase television advertising.DNAF
also provides cost-effective print materials to domestic stores for use in local
marketing that reinforce national branding strategy. In addition to the national

~ 51 ~
and market-level advertising contributions, domestic stores spend additional
amounts on local storemarketing, including targeted database mailings,
saturation print mailings and communityinvolvement through school and civic
organizations. Additionally, we may from time-to-timepartner with other
organizations in an effort to promote the Dominos Pizzabrand.By
communicating a common brand message at the national, local market and
store levels, we
create and reinforce appowerful, consistent marketing message toconsumers.
This isevidenced by successful previous marketing campaign with the slogan
Get the Door. ItsDominos. and current marketing campaign with the slogan
You Got 30 Minutes. Over the past five years, it estimates that domestic
stores have invested approximately $1.4 billion on national, local and co-
operative advertising.

CHAPTER-IV
RESEARCH METHODOLOGY

~ 52 ~
SAMPLE SIZE

50 to 100 customer

PRIMARY DATA

It will involve the online survey by questionnaire method.


Deeply cross questioning from staff members of Dominos and Pizza Hut.
Company Records.
Customer itself by Questionnaire method and Focus group interviews.

SECONDARY DATA

A secondary data is that data that is required to conduct the study and can be
obtained from books, journals, magazines, records etc. Secondary data is
data taken by the researcher from secondary sources, internal or external.
Secondary data is collected from following sources: -
1) Magazines and journals
2) Company websites.
3) Internet
4) Books

CHAPTER-V

~ 53 ~
ANALYSIS AND FINDINGS

Question 1: Do you like to eat pizzas?


Yes [ ], No [ ]
Response:
Table-5.1
YES NO
86 14
86% 14%

Figure-5.1

Interpretation: By analysing the response for above question, it is concluded


that out of 100 respondents 86 were Pizza lovers, while rest 14 doesnt liked
to eat pizza.

Question 2: How many times you visit Pizza restaurants in a month?


One [ ], Two [ ], Three [ ], More [ ]
Response:

~ 54 ~
Table-5.2
ONE TWO THREE MORE
25 50 11 0
29.06% 58.13% 12.79%

Figure-5.2

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 25 use to visit Pizza Restaurants once in a month,
50 use to visit Pizza Restaurants twice in a month, while 11 use to visit Pizza
Restaurants thrice in a month and no one from all use to visit more than thrice
to these same restaurants.

Question 3: How did you come to know about these Pizza restaurants?
Print media [ ], Advertisements [ ],
Friends or Family Recommendations [ ], any other [ ]

~ 55 ~
Response:
Table-5.3
Print media Advertisements Friends or Family Any other
Recommendation
s
8 45 33 0
9.30% 52.32% 38.37% %

Figure-5.3

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 8 have come to know with reference to Print
Media, 45 have come to know with reference to Advertisements, while 33
have come to know with reference to Friends or Family recommendations.

Question 4: Which restaurant Customers would prefer to go on the basis Of


Prices?
Response:
Table-5.4

~ 56 ~
Pizza Hut Dominos
12 74
13.95% 86.05%

Figure-5.4

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 74 respondents would prefer Dominos & only 12
would prefer Pizza hut. So it means that, Dominos have taken edge over
Pizza Hut on the basis of Prices. It means Prices of Dominos Pizza are less
as compare to the Prices of pizza hut.

Question 5: Which restaurant Customers would prefer to go on the basis Of


Food Quality?
Response:
Table-5.5
Pizza Hut Dominos
77 9

~ 57 ~
89.5% 10.5%

Figure-5.5

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 77 respondents would prefer Pizza Hut & only 9
would prefer Dominos. So it means that, Pizza Hut have taken edge over
Dominos on the basis of Food quality. It means food quality of Dominos
Pizza is less as compare to the same of pizza hut.

Question 6: Which restaurant Customers would prefer to go on the basis Of


Pizza variety?
Response:
Table-5.6
Pizza Hut Dominos
76 10
88.37% 11.63%

~ 58 ~
Figure-5.6

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 76 respondents would prefer Pizza Hut & only 10
would prefer Dominos. So it means that, Pizza Hut has taken edge over
Dominos on the basis of Pizza variety. It means Pizza variety of Dominos
Pizza are less as compare to the same of pizza hut.

Question 7: Which restaurant Customers would prefer to go on the basis Of


Beverages?
Response:
Table-5.7
Pizza Hut Dominos
78 8
90.69% 9.31%

~ 59 ~
Figure-5.7

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 78 respondents would prefer Pizza Hut & only 18
would prefer Dominos. So it means that, Pizza Hut have taken edge over
Dominos on the basis of Beverages. It means Beverages of Dominos Pizza
are less as compare to the same of pizza hut.

Question 8: Which restaurant Customers would prefer to go on the basis Of


Cooperation of Staff?
Response:
Table-5.8
Pizza Hut Dominos
53 33
61.62% 38.38%

~ 60 ~
Figure-5.8

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 53 respondents would prefer Pizza Hut & 33
would prefer Dominos. So it means that, Pizza Hut have taken edge over
Dominos on the basis of Cooperation of staff. It means Cooperation of staff of
Dominos Pizza is less as compare to the same of pizza hut.

Question 9: Which restaurant Customers would prefer to go on the basis Of


waiting time in Outlet?
Response:
Table-5.9
Pizza Hut Dominos
40 46
46.51% 53.49%

~ 61 ~
Figure-5.9

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 46 respondents would prefer Dominos & 40 would
prefer Pizza hut. So it means that, Dominos have taken edge over Pizza Hut
on the basis of waiting time in Outlet. It means waiting time in Outlet of
Dominos Pizza are less as compare to the Waiting time in Outlet of pizza hut.

Question 10: According to you which restaurant has high visibility (location
wise)?
PIZZA HUT [ ], DOMINOS [ ]
Response:
Table-5.10
Pizza Hut Dominos
47 39
54.65% 45.35%

~ 62 ~
Figure-5.10

Interpretation: By analysing the response for above question, it is concluded


that out of 86 respondents, 47 respondents would prefer Pizza Hut & 39
would prefer Dominos. So it means that, Pizza Hut have taken edge over
Dominos on the basis of Visibility. It means Visibility of Dominos Pizza is less
as compare to the same of pizza hut.

CHAPTER-VI

FINDINGS AND INFERENCES

Pizza Hut gains a good market share than Dominos.


Mostly consumers came to know about these Pizza joints by
commercial advertisements & friends or family recommendations.

~ 63 ~
Prices of Dominos Pizza are less as compare to the Prices of pizza
hut.
Food quality of Dominos Pizza is less as compare to the same of pizza
hut.
Waiting time in Outlet of Dominos Pizza is less as compare to the
Waiting time in Outlet of pizza hut.
Home delivery services of Dominos Pizza are better as compare to the
same of pizza hut.
Pizza Hut is having better Ambience than Dominos.
Pizza Hut chain is having high visibility in market than dominos.
Pizza Hut is having more Cooperative staff between these pizza joints.
Pizza Hut has taken edge over Dominos on the basis of Pizza variety.
Pizza Hut is providing a big range of beverages than Dominos.
Pizza Hut is having better Ambience than Dominos.
Preferences of consumers are more for Pizza Hut than Dominos.

LIMITATIONS

Many constraints were involved in doing this study. Some of them are as follows.
The most significant limitation has been the individuals involved in this study
were very busy and did not spare much time in discussion.

~ 64 ~
The sample size selected for the survey was too small as compared to large
population.
The project was carried out only in the Delhi, so findings on data gathered can
be best true for Delhi only and not applicable to other parts of state and
country.

RECOMMENDATIONS

Its longstanding status as the undisputed world leader had lulled the Swiss
watchmaking industry into a full sense of security, with over-confident
manufacturers failing not only to foresee the impact of new but also to stop

~ 65 ~
cheap, accurate watches from the Far East flooding the market. It did not
capitalise on the new technology, leaving it instead to others, in particular
Japan and the US, to improve on the discovery. This would prove to be a
near-fatal mistake: sales plummeted and many companies found themselves
on the verge of bankruptcy. It would take the business consultant, Nicolas
Hayek, to breathe new life into the dying industry thanks to his clever
marketing of watches as a must-have fashion accessory that are a reflection
of the wearers personality.
When Dominos entered the Indian market, the concept of home delivery was
still in its nascent stages. It existed only in some major cities and was
restricted to delivery by the friendly neighborhood fast food outlets. Eating out
at branded restaurants was more prevalent. To penetrate the Indian market,
Dominos introduced an integrated home delivery system from a network of
company outlets within 30 minutes of the order being placed.
However, Dominos was not the trendsetter so far 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. Goutham Advani (Advani), Chief of Marketing, Dominos
Pizza India, said, What really worked its way into the Indian mind set was the
promised thirty minute delivery. Dominos also offered compensation: Rs.30/-
off the price tag, if there was a delay in delivery. For the first 4 years in India,
Dominos concentrated on its Delivery act. For its delivery promise to work,
Dominos followed a 11-minute schedule: one minute for taking down the
order, one minute for Pizza-making, six minutes oven-time, and three minutes
for packing, sealing and exit. Dominos and Pizza Hut tried to grab as large
a slice of the pizza pie as possible. (Refer Table I and II for market shares).
While Pizza Hut relied on its USP of dining experience, Dominos USP was a
30-minute delivery frame. To penetrate the market, both the players redefined
their recipes to suit the Indian tastes. Dominos went a step ahead by
differentiating regions and applying the taste-factor accordingly.

~ 66 ~
CONCLUSION

As we know that trust is very important in Food and Agribusiness industry


since the risk attached with the industry is very high as compared to other
industries like garments, electronic appliances etc. The other key learning
from the above cases are.

~ 67 ~
. It is very important as every region has different taste requirements and one
food item may be popular in one region and completely rejected by some
other region, for example spicy food of India may not be liked by Chinese
people.
Pizza Hut and Dominos Pizza both modified their menu to take into account
the religious beliefs of Hindus and Muslims in India by not serving beef and
pork.
The end product should be appropriately modified so that it is according to
the regions specific demands. This makes the product offering to be accepted
by customers readily as they associate themselves with the brand and the
product like The Great Indian treat of Dominos Pizza was adopted
successfully by the Indian public.
Not only the food item has to be modified in terms of its ingredient or the
cooking process to suit the taste buds of the local population but it also needs
to be appropriately named so as to appeal the locals. For example, within
India many south Indian dishes are now having hybrid names in north India:
American Dosa, Chinese Dosa, Fried Dhokla, Fried Idlis etc.
Using actors and celebrities of the region in the advertisements. Pizza Hut
and Dominos Pizza both have used this tool effectively as their
advertisements and campaigns have Bollywood actors and themes.
Connecting with the consumers of that region on an emotional level and also
leverage its global position. This is the most important aspect that leads to the
success of the company. The global position of the company makes the
customers to try the product for the first time and later the localization aspect
and strategies make the customer to come again.

APPENDICES

Questionnaires

1. What is your age?


(a) 0-15 (b) 15-30 (c) 30-40 (d) 40-60
~ 68 ~
2. What is your gender?
(a) Male (b) Female
3. What is your occupation?
(a) Serviceman (b) Businessman (c) Student
(d) Housewife (e) Farmer (f) Others
4. What is your monthly Income?
(a) 0-5000 (b) 5000-10000 (c) 10000-15000
(d) 20000-25000 (e) 25000-30000 (f) >30000
5. Now respondents were asked for their preference for low cost Pizza to the
high class restaurant like (PIZZA HUT ).
(a) Dominos (b) Pizza Hut
6. Frequency of the going pizza hut, or placing order in pizza hut
(a) >1 month (b) 1-3 months
(c) 30-6 months (d) More than a year
7. The different parameters to choosing purchasing pizza from pizza HUT
(a) Price (b) Quality (c) Advise by friend
(d) Service (e) Brand Name
8. What is the best medium for the advertisement according to the
respondents point of view?
(a) Newspapers (b) Television (c) Radio
(d) Hoardings (e) Campaigns
9. When the respondents were asked that are they very brand loyal?
(a) Yes (b) No
10. Are Respondent trying Domino's Vs Pizza Hut for the first time?
(a) Yes (b) No

BIBLIOGRAPHY

www.google.com
www.wikipedia.com
www.pizzahut.com
~ 69 ~
Global Entertainment and Media Outlook: 20062010, a report issued by
global accounting firm PricewaterhouseCoopers

Bhatia (2000). Advertising in Rural India: Language, Marketing


Communication, and Consumerism, 62+68

Eskilson, Stephen J. (2007). Graphic Design: A New History. New Haven,


Connecticut: YaleUniversity Press. pp. 58. ISBN 978-0-300-12011-0.

Advertising Slogans, Woodbury Soap Company, "The skin you love to


touch", J. Walter Thompson Co., 1911

McChesney, Robert, Educators and the Battle for Control of U.S.


Broadcasting, 1928-35, Rich Media, Poor Democracy, ISBN 0-252-02448-
6 (1999)

http://www.canwestmediaworks.com/television/nontraditional/opportunities/
virtual_advertising/

Advertising's Twilight Zone: That Signpost Up Ahead May Be a Virtual


Product - New York Times

Lasch, Christopher. The Culture of Narcissism: American Life in an Age of


Diminishing Expectations. pp. 302. ISBN 978-0393307382.

~ 70 ~

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