Shubham
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- Pages: 16
INTRODUCTION
Until 1996 Pizza in India was synonymous only a bread dough base slathered with some ketchup. Dominos and Pizza Hut, the two US fast food chains entered India in 1996. Dominos entered India in 1996 through a franchise agreement with Vam Bhartia corp. They opened their first outlet in Delhi. Pizza Hut also entered India in 1996. They had four company owned franchiseesUniversal Restaurants Pvt. Ltd(Delhi,UP,Rajasthan), specialty restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujrat, Karnataka, and Andhra
MARKET SHARES 1999 PIZZA CHAIN Pizza Hut Domino’s Others
MARKET SHARE 46.42 21.69 31.91
2000 PIZZA CHAIN Pizza Hut Domino’s Others
MARKET SHARE 18 70 12
POSITIONING WARS
V S
POSITIONING WARS (Cont..)
Domino’s had grown from 1 outlet in 1996 to 101 outlets in April 2001. Pizza Hut too, which began with just a single outlet in 1996 had 19 outlets in 2001. Domino’s introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. Pizza Hut laid more emphasis on its “restaurant dining experience.” It positioned itself as a family restaurant and also concentrated on wooing kids.
LOCALIZING THE MENU
Domino’s introduced nine new toppings for pizzas. Different flavors were introduced in different parts of India. EAST- Deluxe Chicken with Mustard Sauce and Sardines. SOUTH- Mutton Ghongura and Chicken Chettinad. WEST- Chicken Pudina. NORTH- Butter Chicken, Makhani Paneer, and Chatpata Chana Masala. Soon Pizza Hut followed Domino’s and offered customized Spicy Paneer and Chicken Tikka topings. Pizza Hut also opened a 100% vegetarian restaurant at Ahmedabad. In Hyderabad a
PRICING AND PROMOTIONAL WARS PIZZA PRICE COMPARISION COMPANY
PRICE RANGE (Rs.)
Domino’s
39-265
Pizza Hut
75-350
Domino’s was spending 50% of its total marketing budget on special offers and discounts along with delivered direct mailers and pizza training class. Domino’s introduced the Pizza Mania Scheme where it offered a large pizza for Rs.129/-. Close to 5000 pizzas were sold in the first week. Domino’s had a tie up with Discovery Channel. In march 2000 Domino’s slashed the prices of pizza by 40%. They also ran new schemes later. In late 2000, it revamped its entire supply chain operations.
Pizza Hut launched promotional campaign in 1998. It had a ‘Pan In Your Name’ contest. In April 2000, Pizza Hut launched its innovative Pooch Menu and a Pizza pooch Birthday Party package exclusively for the age group 6-10. In October 2000 Pizza Hut launched ‘one rupee pan deal’ scheme. One month later they introduced another scheme called ‘barah nahi to tera’.
BRAND BUILDING THROUGH ADVERTISING
Domino’s and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. Domino’s launched the ‘Hungry Kya?’ campaign. Domino’s had a tie up with MTNL for the ‘hunger helpline’. The helpline enabled customers to dial a toll-free number from any place in India. Pizza Hut launched a campaign which said ‘Good times start with great pizzas.’ Pizza Hut’s advertisement were shown during all important programs on star Plus, Sony Max, HBO, MTV, AXN and Star Movies. Pizza Hut planned to spend Rs. 70-75 million on the ad campaign in 2001.
GOING PLACES (LITERALLY)
By March 2000, Domino’s opened 37 outlets all over India. Between April 2000 and February 2001, Domino’s set up 64 more outlets in India. Domino’s has the largest retail network in the fast food segment in India-with 101 outlets across 40 cities. Domino’s had opened an outlet at Infosys in Bangalore, PVR in Delhi and New Empire in Kolkata. By January 2001, Pizza Hut had 19 outlets across India. They expanded further by opening 5 restaurants in Mumbai and 30 restaurants across major cities in India. In March 2001, Pizza Hut opened its first 3 storeyed 125-seater dine in restaurant at Juhu, Mumbai.
QUESTIONS FOR DISCUSSION 1. Domino’s entered India at a time when Pizza Hut and McDonald’s were already in the market. What was the strategy adopted by Domino’s to make a dent in the Indian market?
Localising the menu Pricing strategy Delivery System Database Marketing
2. ‘Database Marketing was an important part of the strategy in the pizza industry.’ Comment.
Database is very helpful Customer records Loyal customers or repeat customers information Customer Preferrences
3. Though Pizza Hut entered India before Domino’s, it eventually lost its share to Domino’s. How can Pizza Hut counter the competition from Domino’s? Pizza Hut can counter competetion from Domino’s by attacking on the strengths of Domino’s: Delivery System, Pricing, Local Menu, Database marketing And also by roping in extras like: Extra value for money, Customer
GROUP MEMBERS
ANJAN ROY PAWAN KHANDELIA SHUBHAM DIXIT SIMPI BANSAL PIYUSH SINGH
Until 1996 Pizza in India was synonymous only a bread dough base slathered with some ketchup. Dominos and Pizza Hut, the two US fast food chains entered India in 1996. Dominos entered India in 1996 through a franchise agreement with Vam Bhartia corp. They opened their first outlet in Delhi. Pizza Hut also entered India in 1996. They had four company owned franchiseesUniversal Restaurants Pvt. Ltd(Delhi,UP,Rajasthan), specialty restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujrat, Karnataka, and Andhra
MARKET SHARES 1999 PIZZA CHAIN Pizza Hut Domino’s Others
MARKET SHARE 46.42 21.69 31.91
2000 PIZZA CHAIN Pizza Hut Domino’s Others
MARKET SHARE 18 70 12
POSITIONING WARS
V S
POSITIONING WARS (Cont..)
Domino’s had grown from 1 outlet in 1996 to 101 outlets in April 2001. Pizza Hut too, which began with just a single outlet in 1996 had 19 outlets in 2001. Domino’s introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. Pizza Hut laid more emphasis on its “restaurant dining experience.” It positioned itself as a family restaurant and also concentrated on wooing kids.
LOCALIZING THE MENU
Domino’s introduced nine new toppings for pizzas. Different flavors were introduced in different parts of India. EAST- Deluxe Chicken with Mustard Sauce and Sardines. SOUTH- Mutton Ghongura and Chicken Chettinad. WEST- Chicken Pudina. NORTH- Butter Chicken, Makhani Paneer, and Chatpata Chana Masala. Soon Pizza Hut followed Domino’s and offered customized Spicy Paneer and Chicken Tikka topings. Pizza Hut also opened a 100% vegetarian restaurant at Ahmedabad. In Hyderabad a
PRICING AND PROMOTIONAL WARS PIZZA PRICE COMPARISION COMPANY
PRICE RANGE (Rs.)
Domino’s
39-265
Pizza Hut
75-350
Domino’s was spending 50% of its total marketing budget on special offers and discounts along with delivered direct mailers and pizza training class. Domino’s introduced the Pizza Mania Scheme where it offered a large pizza for Rs.129/-. Close to 5000 pizzas were sold in the first week. Domino’s had a tie up with Discovery Channel. In march 2000 Domino’s slashed the prices of pizza by 40%. They also ran new schemes later. In late 2000, it revamped its entire supply chain operations.
Pizza Hut launched promotional campaign in 1998. It had a ‘Pan In Your Name’ contest. In April 2000, Pizza Hut launched its innovative Pooch Menu and a Pizza pooch Birthday Party package exclusively for the age group 6-10. In October 2000 Pizza Hut launched ‘one rupee pan deal’ scheme. One month later they introduced another scheme called ‘barah nahi to tera’.
BRAND BUILDING THROUGH ADVERTISING
Domino’s and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. Domino’s launched the ‘Hungry Kya?’ campaign. Domino’s had a tie up with MTNL for the ‘hunger helpline’. The helpline enabled customers to dial a toll-free number from any place in India. Pizza Hut launched a campaign which said ‘Good times start with great pizzas.’ Pizza Hut’s advertisement were shown during all important programs on star Plus, Sony Max, HBO, MTV, AXN and Star Movies. Pizza Hut planned to spend Rs. 70-75 million on the ad campaign in 2001.
GOING PLACES (LITERALLY)
By March 2000, Domino’s opened 37 outlets all over India. Between April 2000 and February 2001, Domino’s set up 64 more outlets in India. Domino’s has the largest retail network in the fast food segment in India-with 101 outlets across 40 cities. Domino’s had opened an outlet at Infosys in Bangalore, PVR in Delhi and New Empire in Kolkata. By January 2001, Pizza Hut had 19 outlets across India. They expanded further by opening 5 restaurants in Mumbai and 30 restaurants across major cities in India. In March 2001, Pizza Hut opened its first 3 storeyed 125-seater dine in restaurant at Juhu, Mumbai.
QUESTIONS FOR DISCUSSION 1. Domino’s entered India at a time when Pizza Hut and McDonald’s were already in the market. What was the strategy adopted by Domino’s to make a dent in the Indian market?
Localising the menu Pricing strategy Delivery System Database Marketing
2. ‘Database Marketing was an important part of the strategy in the pizza industry.’ Comment.
Database is very helpful Customer records Loyal customers or repeat customers information Customer Preferrences
3. Though Pizza Hut entered India before Domino’s, it eventually lost its share to Domino’s. How can Pizza Hut counter the competition from Domino’s? Pizza Hut can counter competetion from Domino’s by attacking on the strengths of Domino’s: Delivery System, Pricing, Local Menu, Database marketing And also by roping in extras like: Extra value for money, Customer
GROUP MEMBERS
ANJAN ROY PAWAN KHANDELIA SHUBHAM DIXIT SIMPI BANSAL PIYUSH SINGH
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