Pizza Hut Vs Dominos
Pizza Hut Vs Dominos
Pizza Hut Vs Dominos
Batch : 2015-2018
Date:
This is to certify that the Project titled “Study on Consumer Satisfaction between Pizza
Hut and Domino’s” is an academic work done by “Mr. Anuj Gupta” submitted in the
partial fulfillment of the requirement for the award of the Degree of BBA from Vivekananda
Institute of Professional Studies. It has been completed under the guidance of Ms. Jyoti
Gupta (Faculty Guide). The authenticity of the project work will be examined by the viva
examiner which includes data verification, checking duplicity of information etc.
Business World is very much competitive and moving fast with lots of changes every
minute in strategies and policies of market.
This work is a synergistic product of many minds. I am grateful for the inspiration and
wisdom of many thinkers and for the trans-generational sources and roots of this
wisdom.
I also want to thank my family members for their guidance and support in the
completion of this project successfully. Last but not least I extend my gratitude to all
the people whose constant guidance and support made the completion of this project a
much more enriching experience. I hope this project would be liked and appreciated
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EXECUTIVE SUMMARY
From the comparative study of these two Fast food chains Pizza hut and Domino’s we
understand that on which front, which company is weaker than others. As we know that Pizza
hut is the largest pizza restaurant company in the world with 12000 outlets in 90 countries
The Domino’s pizza entered in INDIA in 1995 and now it has over 1000 outlets in India. But
after all Domino’s which has First mover advantage and customer base; cannot succeed as
most favorable brand in between the people of those who likes Pizzas, from this study we
know that pizza hut makes its number 1st position in between peoples.
In the preference side people prefer Pizza hut rather than domino’s. In price category the
1. Declaration -
2. Acknowledgement -
3. Executive Summary -
4. Chapter 1 : Introduction
8. References/ Bibliography -
9. Questionnaire -
Chapter-1
INTRODUCTION
Introduction
Pizza wars which happen in India in 1996 when Pizza Hut & Dominos came to India. Before
that there were no M.N.C. company in India. So each company wanted to make more profit
and its right in India. For this each company launch new product and new schemes for took
over the second company. So pizza hut relied on its USP of dining experience, and Domino's
USP was 30 minute delivery frame. For customer satisfaction both company change their
recipes according to Indian culture. And Domino's also made a toll free telephone service.
Both the company started in India with only one outlet but Domino's had 101 outlets in April
2001. And Pizza hut also start with only one outlet but it had 19 outlets in 2001.
Domino's entered in India with a franchise agreement with Vam Bhatia and open its first
outlet in Delhi. Pizza Hut also opened its first outlet in Delhi.
At that time Indian wanted budget friendly products but both of these company make costly
products but very soon they realized it and made their products according to customer’s
choice. By competition they gave many discounts and customers enjoyed it. Then Domino's
become more popular than Pizza Hut so Pizza Hut started following Domino's and made
Spicy Paneer and Chicken Tikka. It opened a pure vegetarian restaurant at Ahmadabad. To
attract people it introduced a 12" Pizza for Rs 265 and Domino's decrease price and offered a
large Pizza for Rs 129/-. After this sales of Domino's pizza was increase.
HISTORY OF DOMINO'S
Arbor, Michigan, United States. Established in 1960, Domino's is the second-largest pizza
chain in the United States. Now it has nearly 8500 corporate and franchised stores in 70
international markets and in all 50 U.S. states. Domino's Pizza was sold to Bain Capital in
1998. Domino's menu features pizza, pasta, oven-baked sandwiches, wings, boneless
In 1960, Tom and his brother, James, purchased a small pizza store in, Michigan. The deal
was secured by a US$75 down payment. In 1965, the first Domino's Pizza franchise store
opened in Ypsilanti. The company logo was originally planned to add a new dot with the
addition of every new store. By 1978, the franchise opened its 200th store. In 1975, Domino's
infringement and unfair competition. On May 2, 1980, a federal appeals court found in favour
of Domino's Pizza.
In a 2009 survey of consumer taste preferences among national chains, Domino's was last -
tied with Chuck E. Cheese's. In December that year, Domino's announced plans to entirely
reinvent its pizza. It began a self-flogging ad campaign in which consumers were filmed
criticizing the pizza's quality and chefs were shown developing the new product. The new
pizza was introduced that same month, and the following year, Domino's 50th anniversary,
the company acquired J. Patrick Doyle as its new CEO experienced a historic 14.3%
quarterly gain. The success was described by Doyle as one of the largest quarterly same-store
.
The '60s
Domino's Pizza began with one store in Ypsilanti,Michigan on December 9, 1960. Its owner,
With his brother s, he bought an existing pizza store called Dominick's Pizza. He soon found
improvements. Although a novice in terms of pizza making skills and knowledge of the
industry, Monaghan had the self-determination to get the job done and to
consistently make great pizzas fast and safely deliver them to the customer's door.
His partnership with his brother was dissolved in 1961, by1965, Monaghan own three stores
and officially changed the company name to Domino's Pizza, Inc. A pioneer and
innovator in the pizza delivery industry, Monaghan continuously looked for better and faster
ways to handle the rush. He developed a fast pizza-making method and an efficient order
taking system. From the moment the phone rang to the time the pizza was delivered to the
customer’s door, Monaghan stressed the need for hustle. “Never get behind" was the
operating motto. Even though delivery drivers were instructed to abide by the traffic laws at
all times, once they got out of their delivery vehicles they were to run to the customer’s
house, ensuring a piping hot pizza. Capitalizing on the success he had found in his three
stores servicing college campuses, Monaghan adapted the same successful system at
Michigan State University in 1967. A massive pizza craving population of 20,000 students
living on one campus, offering one size of pizza with only six toppings to choose from and
introducing the company's 30 minute pledge soon made this store the company's biggest
money maker. This store is also notable because it
solidified in Monaghan's mind the need to expand. Monaghan sold his first franchise to
Charles Gray on April1, 1967, after personally training Gray for the job himself.
belief in his dream drove him to push the company forward once again. By the end of 1969,
Domino's Pizza Inc., consisted of 42 stores reporting an estimated $8.1million in total sales
The '70s
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 10months 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. Monaghan focused on rebuilding the trust of
his creditors and the company's reputation and spent much of his time visiting his stores,
talking with store managers and team members, and observing them in action. He continued
to emphasis the Domino's system of simplicity and speed. Passing on his enthusiasm for the
to return to the starting gate. On September 30, 1975, Amstar filed suit against Domino’s
the case and was forced to operate all new storeopenings under the name Pizza Dispatch. But
1980 brought a positive conclusion to the lawsuit, with the company being permitted once
again to operate under its long-established identity of Domino's Pizza. The company ended
that year with 398 stores recording $98 million in sales .Franchising also continued to grow.
In fact, by this time, most of the company's growth came from its strong franchise base, and
the majority of the franchisees were from the internal ranks. Opportunity kept the Domino’s
Pizza team motivated and highly productive. There was something big waiting for everybody
who was willing to work for it. Monaghan often referred to his franchisees as the very heart
of the company and time and time again they have proven this to be true. With their energy,
dedication and financial investment, they would help bring Domino's Pizza to a level of
The '80s
In 1983 the company celebrated the opening of its first international store in Winnipeg,
much of the company's later movement and growth.1983 also saw the opening of the
of honing its pizza making and delivery systems, Domino’s Pizza knew the pizza delivery
business. In 1985tens 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 open edits 5000th store.
The `90s
continued to grow with the introduction of innovative variations to the original pizza recipe
as well as creative up-sell items. 1993 was shaping up as another major year for Domino's
until December brought one more crisis: a$79 million judgment against the company in a
Monaghan decided to withdraw the guarantee permanently, a move that made headlines
credited with pioneering the multi-billion dollar pizza delivery industry, but also with
pizzas in, the pizza screen, Doug trays and, most important to the success of his own
independent business owners. In 1999 Monaghan, a deeply spiritual man, decided it was time
to give back to the community much of the wealthy had accumulated as a result of his 39
years at the helm of this great company. So he sold Domino's Pizza to Bain Capital, an
organization with a proven track record of identifying companies with significant growth
The Future
Many changes have been made since Domino's was sold to Bain Capital, and a new spirit of
excitement has paved the way for the future. Despite encountering set backs
and obstacles alon-g the way, the story of Tom Monaghan's 39 years at the helm of Domino's
Pizza Hut entered India in 1996, and opened its first restaurant in Delhi. It has maintained an
impressive growth rate of over 40 per cent per annum. Pizza Hut had about 100 restaurants;
and employed nearly 4,000 people by end of 2004. It had invested about US$ 25 million in
India; this is over and above investments made by franchisees. A Fortune 300 company,
Yum! Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John
Silver's restaurants worldwide. Yum! Generated more than US$ 25.9 billion in worldwide
sales in the year 2003-04, and has more than 35,000 restaurants in over 100 countries.
Pizza Hut is believed to have close to 50 per cent market share of the organized pizza-
Financial performance
According to a survey of Financial Express, the market size of the pizza segment is around
US$ 87 million and currently growing at the rate of 15 per cent to17 per cent per annum.
According to Pizza Hut sources, most of their outlets are financially successful encouraging
further expansion. In India, the average investment for each outlet is US$ 275,000-335,000
Offering value food, employing economies of scale, Pizza Hut has made its offerings more
affordable. Its delivery offer for four personal pan pizzas has been very successful. They have
recently introduced a range of vegetarian personal pan pizzas. Most Pizza Hut restaurants are
located in the metros and smaller metros. Pizza Hut is consolidating its position by opening
more restaurants in the metros where it already has a presence as well as opening outlets in
new markets.
Moving beyond metros According to company sources, Pizza Hut is moving beyond the
metros and foraying into 12 to 13 new markets including Trichy, Nagpur, Bhubaneswar,
Pizza Hut has increased its visibility by launching a well-received TV campaign aimed at the
young crowd. It has formed partnerships with recognized brands such as Nestle and Pepsi.
Developing the local supply chain. The local supply chain for Pizza Hut was developed by
Yum! And currently 95 per cent of the ingredients they use are locally produced. They now
import very few specialty items like pepperoni. Leveraging the India Advantage International
brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely
vegetarian dine-ins at Chow patty (Mumbai), Ahmadabad and Surat, which also serve Jain
menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of
Because their members prefer not to eat at places where meat is served. Offering more than
the international menu International food chains typically offer only a few localized products
in other parts of the world. However, Pizza Hut's local menu is as large as the international
one. According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like
local flavors. The Tandoori range of pizzas. Indigenous sourcing of raw materials Pizza Hut
has reduced costs through indigenous sourcing of raw material. It has tied up with a local
company Dynamics Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese.
Early History
Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of
Wichita, Kansas. When a friend suggested opening a pizza parlour--then a rarity--they agreed
that the idea could prove successful, and they borrowed $600 from their mother to start a
business with partner John Bender. Renting a small building at 503 South Bluff in downtown
Wichita and purchasing second-hand equipment to make pizzas, the Carneys and Bender
opened the first Pizza Hut restaurant; on opening night, they gave pizza away to encourage
community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick
The `60s
In the early 1960s Pizza Hut grew on the strength of aggressive marketing of the pizza
restaurant idea. In 1962, the Carney brothers bought out the interest held by Bender, and
Robert Chisholm joined the company as treasurer. In 1966, when the number of Pizza Hut
franchisee units had grown to 145, a home office was established to coordinate the businesses
from Wichita.
Two years later, the first Pizza Hut franchise was opened in Canada. This was followed by
the establishment of the International Pizza Hut Franchise Holders Association (IPHFHA). It
aimed at acquiring 40 percent of the company's franchise operations, or 120 stores, and
the previous franchise owners had to be merged into one operating system, a process that
took eight months to complete. In the meantime, sales flattened and profits tumbled.
The `70s
In early 1970 Frank Carney decided that the company practice of relying on statistics from its
annual report to inform its business strategy was inadequate, and that a more developed, long-
term business plan was necessary. The turning point occurred when Pizza Hut went public
and began growing at an unprecedented pace. Carney said in 1972, "We about lost control of
the operations. Then we figured out that we had to learn how to plan."
Pizza Hut's corporate strategy, arrived at after much consultation and boardroom debate,
emerged in 1972. Carney would later remark that the process of introducing a management
structure did much to convince PepsiCo, Inc., that the pizza chain was worthy of purchase.
The corporate strategy's first priority was increasing sales and profits for the chain.
Continuing to build a strong financial base for the company to provide adequate financing for
growth was the second priority. The strategy also called for adding new restaurants to the
In 1970 Pizza Hut opened units in Munich, Germany, and Sydney, Australia. That same year,
the chain's 500th restaurant opened, in Nashville, Tennessee. Further acquisitions that year
included an 80 percent stake in Ready Italy, a frozen crust maker, and a joint venture,
Sunflower Food Processors, formed with Sunflower Beef, Inc. The same year, the menus for
all restaurants added sandwiches to the staple "Thin 'n Crispy" pizza offering.
In 1971 Pizza Hut became the world's largest pizza chain, according to sales and number of
restaurants--then just more than 1,000 in all. A year later the chain gained a listing on the
New York Stock Exchange. Pizza Hut also achieved, for the first time, a one million dollar
At the end of 1972 Pizza Hut made its long-anticipated offer of 410,000 shares of common
stock to the public. The company expanded by purchasing three restaurant divisions: Taco
Kid, Next Door, and the Flaming Steer. In addition, Pizza Hut acquired Franchise Services,
Inc., a restaurant supply company, and J & G Food Company, Inc., a food and supplies
distributor. The company also added a second distribution centre in Peoria, Illinois.
In 1973 Pizza Hut expanded further by opening outlets in Japan and Great Britain. Three
years later the chain had more than 100 restaurants outside the United States and two
thousand units in its franchise network. The company's 2,000th restaurant was opened in
Independence, Missouri. It also established the 35 by 65 meter red-roof Pizza Hut restaurant
building as the regulation size for all its new establishments. The new construction standard
called for free-standing buildings built in a distinctive one-story brick design. The sites seated
The `80s
In 1984 Steven Refinement was appointed president and chief executive officer of Pizza Hut.
He oversaw a period of unprecedented growth for the pizza chain. In 1986 Pizza Hut opened
its 5,000th franchise unit, in Dallas, Texas, and began its successful home delivery service.
By the 1990s the delivery and carryout business had grown to account for approximately 25
In 1990 Pizza Hut opened its first restaurant in Moscow. Russians' pizza of choice,
"Moskva," a pie topped with sardines, tuna, mackerel, salmon, and onion, became a favourite
at the Moscow Pizza Hut. The Moscow location quickly established itself as Pizza Hut's
highest volume unit in the world. Restaurants just behind in total volume served were found
in France, Hong Kong, Finland, and Britain. Other favourite toppings for pizzas in countries
other than the United States included sauerkraut and onion, and spinach, ham, and onion. In
Hong Kong corned beef and Canadian bacon were favourites, while Asians and Australians
Competition in the United States was heightened in 1991 when McDonald's, the world's
largest hamburger fast food chain, put "McPizza" on its menu in several test markets and
even offered home delivery to customers. Despite this effort and the economic recession of
the early 1990s, Pizza Hut continued to profit. Company sales at the pizza chain were up ten
percent worldwide to $5.3 billion in 1991 as growing health awareness and the popularity of
vegetarian lifestyles had prompted many people to reconsider pizza as a nutritious alternative
to greasy fast food fare. Pizza Hut Delivery, the home delivery operation, provided $1.2
billion in sales alone, and overall Pizza Hut sales, added to those of PepsiCo subsidiaries Bell
and KFC (formerly Kentucky Fried Chicken), gave the parent company more than $21 billion
In the early 1990s Pizza Hut was concerned with making itself more accessible. through units
were added for customers' convenience, and Pizza Hut Express units were being developed.
The Express unit originated in shopping malls, where it provided customers with fast food at
affordable prices made possible by lower operating overheads. Since that time, Pizza Hut
positioned Express units in school cafeterias, sports arenas, office buildings, and major
airports. The company saw non-traditional locations as the fastest-growing sector of its
Pizza Hut into new and emerging markets. In 1991 PepsiCo had restaurant outlets in 80
continued growth with the approach of the 21st century. He commented, "The major question
for international restaurant growth is, 'How fast can we get there?' A steadily growing interest
in eating away from home and the continued gravitation to convenience foods are creating an
atmosphere of excitement for our restaurants." Pizza Hut restaurants had spread to 90
countries by 1997.
The `90s
In 1994 several changes resulted in the company's first decline in operating profits in 15
years. The pizza market was no longer growing; fast food rivals cut prices; and investment in
new outlets was draining corporate resources. PepsiCo's restaurant division saw sales in
restaurants open at least one year fall six percent in 1994, contributing to a drop in profits of
In an effort to change this disturbing direction, Roger A. Enrico moved from PepsiCo's
beverage and snack food divisions to head the restaurant division in 1994. His first move was
to heavily promote a new product: stuffed crust pizza, a pizza with a ring of mozzarella
folded into the outer edge of the crust. The company used a massive advertising campaign to
promote the new product, including commercials that paired celebrities eating their pizzas
crust first.
Some indicators were promising: market share rose from 25.6 to 27 percent; 1995 sales
increased 16 percent to $5.2 billion; and operating income rose to $414 million, up 40 percent
from the year before. In 1996 Pizza Hut planned to introduce a major new product each year
and two or three line extensions. The following year it followed through on this course,
introducing Totally New Pizzas with 67 percent more toppings than previous pizzas and
thicker sauce. The company allocated $50 million for the project, part of which was to be
used to install new or improved ovens. In 1996 Pizza Hut accounted for 17 percent of
However, these gains could not offset the drain that capital investment placed on PepsiCo's
other divisions. The parent company's return on assets was significantly greater in its
beverage and snack food divisions than in its restaurant division. In the late 1990s, PepsiCo
drew together its restaurant businesses, including Pizza Hut, Taco Bell, and KFC. All
operations were now overseen by a single senior manager, and most back office operations,
including payroll, data processing, and accounts payable, were combined. In January 1997
the company announced plans to spin off this restaurant division, creating an independent
publicly traded company called Tricon Global Restaurants, Inc. The formal plan, approved by
the PepsiCo board of directors in August 1997, stipulated that each PepsiCo shareholder
would receive one share of Tricon stock for every ten shares of PepsiCo stock owned. The
plan also required Tricon to pay a one-time distribution of $4.5 billion at the time of the
spinoff. If approved by the Securities and Exchange Commission, the spinoff would take
Industry Pizzerias
James Monaghan
income
employees
*
Pizza hut company profile
Industry Restaurants
Frank Carney
locations
Number of 160,000+
employees
Conceptual Framework
Marketing Strategies
Pizza Hut
In 1991 under the guidance of a visionary Narasimha Rao and his comrade Manmohan Singh
India marched towards a new era of Liberalization, Privatization and Globalization. Trade
barriers were eased and cultural barriers started dissolving. It was at this juncture that pizza
hut made its infant steps in India, with its first outlet at Bangalore. Today Bangalore alone
Pizza hut has 360 restaurants across 100 cities in India including metros. With its focus
steadily on quality and variety, pizza hut has given a new dimension to regular pizza eat-outs.
However the trifle higher prices may remain a concern for middle class Indians with lesser
purchasing power and disposable income. The status is steadily improving as more of us
Embracing Technology
Locating stores and placing orders has never been easier for pizza hut locals. With their
virtual store kind website, pizza hut offers customers a wide range of options to choose from
menu and avail new offers. Now orders can also be placed through mobile phones. High end
Pizza hut
• Pastas
• Sandwiches
• 0Thin crispy pizza
• Deserts
• Beverage
• Garlic breads
Dominos
Dominos focuses on value to customers and offers pizzas and Italian delicacies at affordable
prices to middle class Indian consumers. Dominos has 274 outlets in 55 cities across 20
states.
Embracing Technology
Locating stores and placing orders has never been easier for pizza hut loyal. With their virtual
store kind website, pizza hut offers customers a wide range of options to choose from menu
and avail new offers. Now orders can also be placed through mobile phones. High end
• Regular pizza
• Medium pizza
• Large pizza
• Cheese burst
• Non-veg pizza
• Garlic bread
• Garlic Breadsticks
• Chicken wings
• Beverages
• Deserts
Advertising strategies
To stay competitive, Pizza Hut looked to appeal to a wider base, launching new marketing
vehicles and products that adhere to the sensibilities of both younger and older consumers.
This past year Pizza Hut has experimented with its brand by replacing "Pizza Hut" on take-
out boxes with "The Hut," and by pushing the quality of its product and natural
ingredients and adding more pasta options to the menu as meal-replacement solutions at
home. The marketer has also introduced an extensive series of social media and
Domino's caused a stir late last year by taking jabs at Subway with TV spots touting national
taste tests proving Domino's sandwiches were preferred 2 to 1 over Subway's. The ads
comparison ads but continued to take shots at Subway, featuring Domino's CEO Dave
Brandon "oven baking" the cease and desist in a follow-up spot. Domino's also produced ads
directly addressing the recession through "The Big Taste Bailout" and "Taste Stimulus
Package" promotions. In August, Domino's began a spot called "Chefs vs. Accountants"
starring six team members from the corporation's research and development departments.
An analysis of the competitors of Pizza Hut & Domino’s
WEAKNESS STRENGHT
Expensive Customized
preparations
satisfactory
for veggies
Fast service
More offers
Variety
Expensive
BARISTA Concentrate more on Variety in beverages
Expensive
SWOT Analysis
Strength
6. Excellent offers
7. Good promotion`
Weakness
corporate lunches
Opportunity
1. Growing fast food market – Scope for 1. Growing fast food market – Scope for
expansion expansion
3. Bigger outlets
Threat
Pizza Hut
• They targeted countries where there were no pizza hut outlets. Initially opened in class
• Their main target is the young adults ranging from 25 years to 40 years and also dual
income earners family. They aim basically at the upper middle class and the high class
income families.
• They targeted for occasions such as birthday bashes, corporate lunches. It was also found
that they were targeting the first time users because they felt that their quality and taste would
Dominos
• They targeted countries where there were no dominos outlets. Initially opened in class ii
cities and then have now moved to class i, metros and smaller towns.
• Their main target is the teenagers and college students (13 to 21years), young adults
ranging from 21 years to 35 years. They aim basically at the middle class, upper middle class
income families.
• It was found that they were targeting the first time users and also their regular users.
Pricing
Pricing of Domino’s
Indians are value-sensitive, not price-sensitive. The price was attributed to the high quality of
ingredients used. For instance, Domino’s sourced its Pepperoni and Jalapeno needs from
Australia and Spain respectively. However, with competition increasing from Pizza Hut,
Domino’s introduced price cuts, discounts and freebies to attract the customers. In 1998,
Domino’s introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. The
demand was overwhelming and the company sold close to 5000 pizzas in the first week of its
launch.
During late 1998, both Domino’s and Pizza Hut were trying to lure the customers with
discount coupons by issuing such coupons through several schemes. However, both
Domino’s and Pizza Hut were concentrating more on data base marketing and below-the-line
In India Domino’s is trying to attract the middle class and lower middle class people who are
interested to spend their money on pizza but in low price. Those people are eager to go for an
outing in any festival and as a cheap family restaurant Domino’s would be most preferable.
They do not need high class ambiences or amusement in the shop so the establishment cost is
low for the dealers and the price of pizza is very reasonable for the customer. Domino’s do
not have any fixed customer though they are one of the main competitors of the Pizza hut.
The Domino’s Pizza franchise constantly keeps on inventing ways through which it can make
a greater impact on the fast food market. That is how the fast food franchise came up with
'Fun Meal for Four' offer. Through this method, the pizza franchise is able to produce more
variety in the food delivered to its customers at their door steps. Through its 'Fun Meal for 4’
pack the Domino’s Pizza India offers four pizzas at the rate of Rs 180. This means charge of
one pizza will be just Rs 45. This has helped the speciality food franchise to enhance the
strength of its customer base. Mainly offers are more attractive for the Domino’s, mainly
student and middle class people are the main customer and they targeted that customer.
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 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. The high/low pricing strategy will also creates excitement. Customers will
be able to try something new when they purchase. 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.
As there are no such competitors of Pizza Hut which could compete with the quality of pizza
produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza Hut. Pizza Hut has
adopted this pricing strategy as they want to hold maximum share of the market by maximum
profit.
They are charging higher prices due to the uniqueness of the product. They satisfy the target
market as the food quality is worth the price paid. The pricing strategy is not just to get the
worth of quality but also to gain maximum profits before any competitor enters because then
of enjoyment and amusement. They are offering an organized restaurant system and
demanding the higher price for the pizzas. In the pizza hut different types of foods are
available like appetizer, soup & salad, beverages, pasta etc. So for the varieties kind of food
the pricing strategy is different in the pizza hut. Their customers are more or less fixed and
interpretation
From the total of 50 respondents
• These results as the male are leading the sample and female showed less interest in
• In occupation side: - More students visited the outlets rather than other occupants
(24students)
Q1. How many people like pizza hut and dominos according to age?
Below 10 33 67
10-15 40 60
15-20 41 59
20-25 58 42
25-30 67 33
30-35 72 28
35-40 62 38
40 and above 51 49
80
70
60
50
Dominos
40
Pizza hut
Column1
30
20
10
0
below 10 10-15. 15-20 20-25 25-30 30-35 35-40 40 above
Interpretation:
Above diagram shows different age of peoples who like Domino’s or Pizza hut. This
shows that the people before adolescence age prefer Pizza hut more than the domino’s
. But studies shows that the after adolescence age most of the people prefer Domino’s
Quality 60 20 15 5
Quality
Excellent
Good
Average
Poor
Interpretation:
Above pie chart shows that the 60% of people says that the quality of Pizza hut is excellent,
20% people says good and 15% says average. But there are still some people who says it is
poor.
Q3. Specify your satisfaction with Dominos according to the Quality?
Price 56 23 20 1
Quality
Excellent
Good
Average
Poor
Interpretation:
Above pie chart shows that the 56% of people says that the quality of Domino’s is excellent,
23% people says good and 20% says average. But there are some people who says it is poor.
Q4. Compare the following food chains and rate them on a scale of 10.
Pizza Hut 6 4 7
Domino’s 5 7 5
Pizza 4 5 3
Corner
Slice of 4 6 3
Italy
18
16
14
12
10 Ambiance
Service
8
Quality
6
0
Pizza Hut Domino's Pizza corner Slice of Italy
Interpretation:
According to the respondents, Pizza hut provides best ambience & quality.
Conclusion:
The Pizza hut gain a good market share rather than Domino’s.
The preferences of the people for Pizza are more with Pizza-hut.
Males are more attracted towards Pizza-hut due to good ambiances and freshness’ rather
than women’s.
The male respondents are more attracted towards pizza and females are not responding like as Men’s.
The study also shows that the Indian customers are not price sensitive when they get good product, quality
and services.
Creative Strategy
Dominos
Kwality wall’s ice-creams in Dominos: for the 1st time Dominos started offering ice
creams. Selling ice cream in Domino’s is also a new sales promotion strategy to
Pizza Hut
Pizza Hut’s 1st campaign in television in July 2001, which said,” GOOD TIMES
START WITH GREAT PIZZAS”. The ad was aired during all the important
The 1st ad campaign on TV defines Pizza Hut as a brand, and what it offers to its
Dimension of comparison
Comparison
(USP)
from 1(1996) to
101(2001)
Trendsetter in localization.
vegetarian restaurant.
Customization based on
Religion – Jain
City specific –
Hyderabad(Halal meat)
Price Initially high price; as Initially high price; as
discounts. Experience.
scheme
Place Most robust and efficient Not much focused on
material supply.
consultant.
Targeting on non-
The pizza delivery business had traditionally been promotion driven. Coupons and discounts
Since its inception, Domino’s had been known for its unique promotions that included fast
Use of technology online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to
further exploit the increasing potential of the online medium as one of the promotional and distributional
Both Domino's and Pizza Hut just about tripled their investment in online advertising in 2009
vs. the previous year. Domino's primarily promoted its delivery service with immediate call
to action. It also promoted its American Legends Challenge, encouraging users to vote for
their favorite regional-styled pizza with an opportunity to win free Domino's pizza for a year.
The company promoted across a broad range of sites including Amazon, Ask, Yahoo!,
MySpace, Facebook, College Humor, Yellow Pages and local newspaper sites.
Pizza Hut tied back into its key product calendar pushes online, sending users to its website
to order. It appeared to target a younger and more female-skewed audience on sites including
One clever e-mail marketing execution that grabbed my attention was a coupon e-mail from
Pizza Hut that incorporated a 20% off offer which was only available for ten days. The e-mail
Domino's closed the gap on Pizza Hut in search marketing across 2009, particularly coming
out strong on natural search -- a reflection that its general advertising resonated as well as a
strong website experience. Pizza Hut had a bigger commitment in paid-search clicks against
The irony of being able to order a pizza using your iPhone is, I'm sure, not lost on readers.
Both Pizza Hut and Domino's claimed breakthroughs with the launch of their iPhone
applications. One clever e-mail marketing execution that grabbed my attention was a coupon
e-mail from Pizza Hut that incorporated a 20% off offer which was only available for ten
days. The e-mail included a clock counting down in real time to create a level of urgency.
Domino's closed the gap on Pizza Hut in search marketing across 2009, particularly coming
out strong on natural search -- a reflection that its general advertising resonated as well as a
strong website experience. Pizza Hut had a bigger commitment in paid-search clicks against
Pizza Hut is split into several different restaurant formats; the original family-style
dine-in locations; store front delivery and carry-out locations; and hybrid locations
that have carry-out, delivery, and dine-in options. Some full-size Pizza Hut locations
have a lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a pasta bar.
Pizza Hut has a number of other business concepts that are different from the store
type; Pizza Hut "Bistro" locations are "Red Roofs" which have an expanded menu and
An upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". At 50 US
locations, the Bistro is similar to a traditional Pizza Hut, except that new, Italian-
themed dishes are on the menu, such as penne pasta, chicken pomodoro, toasted
sandwiches and other foods.[17] Instead of black, white, and red, Bistro locations
feature a burgundy and tan motif.[18] Pizza Hut Bistros still serve the chain's
traditional pizzas and sides as well. In some cases, Pizza Hut has replaced a "Red
Roof" location with the new concept. "Pizza Hut Express" and "The Hut" locations
are fast food restaurants. They offer a limited menu with many products not found at
traditional Pizza Huts. These type of stores are often paired in a collocated location
with a sibling brand such as Wing Street, KFC or Taco Bell, and are found on college
campuses, food courts, theme parks, bowling alleys, and in stores such as Target.
Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be found
in the United States and Canada; several exist in the UK, Australia, and Mexico. In
his book Orange Roofs, Golden Arches, Phillip Langdon wrote that the Pizza Hut
"Red Roof" architecture "is something of a strange object – considered outside the
realm of significant architecture, yet swiftly reflecting shifts in popular taste and
architectural journals, yet they have become some of the most numerous and
Curbed.com reports, "Despite Pizza Hut's decision to discontinue the form when they
made the shift toward delivery, there were still 6,304 'traditional units' standing as of
2004, each with the shingled roofs and trapezoidal windows signifying equal parts
suburban comfort and strip-mall anomie." This building style was common in the late
1960s and early 1970s. The name "Red Roof" is somewhat anachronistic now, since
many locations have brown roofs. Dozens of "Red Roofs" have closed or been
relocated or rebuilt.
Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and
sometimes an arcade. In the mid-1980s, the company moved into other successful
formats including delivery or carryout and the fast food "Express" model.
Concept of Domino’s
Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company,
The Company was incorporated in 1995 and initiated operations in 1996, The
Company got listed on the Indian bourses in February 2010, Mr., Shyam S, Bhartia,
Mr., Hari S, Bhartia and Jubilant Enpro Private Ltd, are the Promoters of the
Company. The Company & its subsidiary operates Domino's Pizza brand with the
exclusive rights for India, Nepal, Bangladesh and Sri Lanka, The Company is India's
largest and fastest growing food service company, with a network of 500+ Domino's
Pizza restaurants
Restaurants (as of 31st March, 2012) The Company is the market leader in the
organized pizza market with a 54% market share (Euro monitor Report 2010) and
70% share in the pizza home delivery segment in India, The Company has
Franchising LLC, for developing the Dunkin' Donuts brand and operating restaurants
in India,
Over the period since 1996, Domino’s Pizza India has remained focused on delivering
great tasting Pizzas and sides, superior quality, exceptional guest care and value for
community of loyal consumers from all our restaurants around the country.
delivery company in the world!" We are committed to bringing fun, happiness and
and our efforts are aimed at fulfilling this commitment towards a large and ever-
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
Domino’s believes that when a box of pizza is opened, family and friends come
together to share the pizza. Hence, our brand positioning:‘Yeh Hai Rishton Ka Time’
That’s why, all our efforts, whether it is a new innovative and delicious product,
offering consumers value for money deals, great service, countrywide presence or the
promise to deliver in 30 minutes or free are all directed towards making relationships
stronger, warmer and more fun by giving consumers an opportunity to get together,
Conclusion and
Recommendations
Success Factors
Pizza Hut
• Good ambience
Domino’s
• Low pricing
• Customer satisfaction
• Great offers
Current Scenario
beverages etc.
is from pizzas
band end
Rs. 39 44
• Bundling • Bundling
• Offers • Offers
ordering ordering
Place • 1126 stores across India • 360 restaurants across
catering to home
delivery
ordering
Conclusion
Pizza Hut has many targets which it has achieve in a given period of time. The time-
period is mostly a year. Therefore, in order to fulfill the targets different strategies are
adopted by Pizza Hut. It can be concluded that these strategies have been successful
and there is flexibility in the strategies, as they can be changed with the changes in the
market conditions as well as the targets. Indians are value-sensitive, not price-
sensitive. The price was attributed to the high quality of ingredients used. For instance,
Domino’s sourced its Peperoni and Jalapeno needs from Australia and Spain
introduced price cuts, discounts and freebies to attract the customers. In 1998,
Domino’s introduced the Pizza Mania scheme where it offered a large pizza for
Rs.129/-. The demand was overwhelming and the company sold close to 5000 pizzas
in the first week of its launch. The objectives of promotion are to introduce a new
product, stimulate demand, change the short-term behavior of the customers, and
encourage repeat or greater usage by current customers. Pizza hut uses many
is also distributed mainly by mail, but also by fliers on college campuses around the
Dominos
• The dining conditions have to be changed drastically if Dominos have to target the
• They are way behind Pizza Hut in the dining experience. Some of the Dominos
• Due to this a condition can occur where customers judge the quality and taste of the pizza
• Thus to have a greater market share and tap premium segment of the market, Dominos
• There should also be provision for music, TV’s, kids zone etc. in the restaurant
• By doing this they can even charge a little bit more on the food items
Pizza Hut
• Reduce the menu costs; it is way too expensive for a middle class Indian.
• Middle class forms the maximum population of India and hence reducing the costs of
• Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut
Their reach is very less as compared to Dominos (as they have only premium
restaurants) which deprives far off customers from having Pizza Huts experience.
Websites:
http://en.wikipedia.org/wiki/Pizza_Hut
http://www.recipepizza.com/the_history_of_pizza_hut.htm
http://www.spaceref.com/news/viewpr.html?pid=4921
http://www.globalclassroom.org/pizza.html access on
http://www.oppapers.com/subjects/pizza-hut-pricing-strategy-page1.html
http://www.religiondispatches.org/archive/atheologies/2221/from_%E2%80%98mana
gement_gurus%E2%80%99_to_%E2%80%98corporate_chaplains%E2%80%99:_a_r
eview_of_spirituality_inc. http://www.indiastudychannel.com/resources/2639-Bsc-it-
rd-semester-Syllabus-Punjab-technical-university.aspx
http://www.drpaulwong.com/index.php?option=com_content&view=article&id=83:sp
irituality-and-meaning-at-work&catid=42:cl&Itemid=59
http://www.workplacespirituality.info/SpiritualityCreativityBusiness.html
http://www.freebizplan.org/business_strategies/soft_skills/spirituality.htm
Questionnaire
Name: Gender: M / F
Q3. Through which media you are getting information about Pizza Hut?
(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Other’s
Q4. Would you try a new food item launched Pizza Hut?
(E.g. Conniza,Freshizza)
Quality
Price
Service
Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 10.
Pizza Hut
Domino’s
Pizza
Corner
Slice of
Italy