dominos vs pizza hut
TRANSCRIPT
FAST FOOD INDUSTRY IN INDIA
• Fast food is one of the world’s largest fast growing industry types. India’s fast food industry is growing by 40%.
• Because of the availability of raw material for fast food, global chains are flooding into the country.
• The growth in nuclear families, particularly in urban India, exposure to global media and western cuisine has had quite an impact on eating out trends.
SOME MAJOR CONTENDERS IN FAST FOOD
INDUSTRY
DOMINOSVS.PIZZA HUT
• It entered India in June 1996.• By January 2001, Pizza Hut had 19 outlets
across India.• Presently it has 142 outlets in 32 cities in
India.• Pizza Hut is one of the world’s largest pizza
chains with over 12,500 restaurants across 91 countries.
• It employees more than 300,00 people.
Pizza hut is an American National chain and international franchise that offers pizza along with salad,pasta,chicken wings, garlic bread etc.
• Pizza hut was founded in 1958 by brother Dan and Frank Carney in Wichita,
Kansas.• Cooperatively known as Pizza Hut,Inc. it is a subsidiary of Yum! Brands,Inc.
• Till 2007 its slogan was “Gather, round the good stuff” which was changed to “Now You’re Eating !” in 2008-2009
• From 2009-2013 its logo has been “Your favourite,your Pizza Hut.”
History
.
Pizza Hut 1st Outlet in 1958
Vision :To improve the well being of our customers, community and people connected to our enterprise. “RUN GREAT RESTURANTS”
Logo : Its first logo was its former mascot, Pete, holding the words Pizza and Hut.The logo which is there today was introduced in 1999
Home delivery :Never eat cold pizza again—that’s the promise behind Pizza Hut's HOT on the Dot campaign which started in August, 2011. Pizza Hut’s Hate Late policy also guarantees you don’t have to wait more than 30 minutes for your order—or it’s free.
Vision and Mission
Mode of payment: Cash on delivery Radius: 3km from the centre Delivery time: 11 am in the morning to 10:30 pm.Contact number: 0361-2467000, 2450073
Delivery is given even during festivals but during natural calamities ,the delivery service is withdrawn temporarily because of the difficulties faced.Hot promise is not applicable on New Year’s Eve, public holidays and religious festivals Maximum Pizza Hut Delivery liability is Rs 500.
Pizza Hut reserves right to withdraw the home delivery service promise without prior information
Indian Aspects( Home delivery)
Bollywood Actors KUNAL KAPOOR and LARA DUTTA are the Brand Ambassador for Pizza Hut in India
SUCCESS FACTORS:• Offering value food• Moving beyond metros• Developing the local supply chain• Good ambience• Offering more than the international menu• Aggressive marketing and tie-ups with local
and popular brands.
PRODUCTSSauteed PastasBeveragesAppetizersSoups and SaladsPizzasDesserts
SUPPLY CHAIN SUPPLIERS
Direct SuppliersPepsiCremica Group (Buns)
Indirect SuppliersMeat market : Chicken from BrazilVegetable market : Potatoes from AustraliaSauce companies
• Today Domino’s Pizza in India has grown into a countrywide network of more than 300 stores with a team of over 9000 people.
• Domino’s believes strongly in the strategy of “think local and act regional.”
It entered India in 1996 through a franchise agreement with VamBhartia Corp.It had quite a speedy growth (1 outlet in 1996 and 101 in 2001).Emphasis on home delivery.
Founded in 1960 by Tom Monaghan Second largest Pizza chain in US 9000 corporate and franchised stores across 60 nations. And 306
stores in INDIA. Domino’s outlet in India opened in 1996 Jubilant Food Works Limited, a Jubilant Bhartia Group company
holds the Master Franchise rights for India, Nepal, Sri Lanka and Bangladesh
Revenue 70 % from home deliveries 30 % from OTC sales
History
Vision : exceptional people on a mission, to be the best pizza delivery company in the world
Branding :Yeh hai rishton ka timeLogo: the three dots represents the stores that were opened in 1969
Home delivery : Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order "30 minute or Free" guarantee for orders placed in its stores
Vision and Mission
Mode of payment: cash on deliveryRadius: 2 km from the centreDelivery time: 11 am to 11 pm. During special occasions the time gets extended.Single Happiness Hotline number: 68886888For online order : www.dominos.co.inIf any wrong order is made by the customer, the money is reverted back to the respective account after using credit card. The home delivery service is not applicable on special occasions i.e. when operating condition is difficult.
Indian Aspect (Home delivery)
Maximum liability is Rs 300 if the delivery doesn’t reaches the customer within 30 minutes.
Delivery guarantee is applicable at the first barrier point. The driver is not penalized for late delivery
Dominos reserves the right to withdraw the service guarantee without information.
Product Offerings at DOMINOS
OPERATIONS Indian operations are ranked number one for the past 3 years. Delivers an average of 1 million pizzas per day. Over the last 2 years, they opened stores in 15 new cities. The company operates in three segments:
1. Domestic stores2. Domestic supply chain3. International
1. Domestic Storesuses its company-owned stores as a testing ground for new products and technologies which may then be passed onto franchisees.generates income from company-owned stores in the form of store profits.
2. Domestic Supply ChainVertically integrated supply systemautomatic delivery of raw materials cuts out a lot of the "back of-store" activities.Helps in keeping down food costs.
3. International
consists of 3,469 franchised stores outside the United States.
operates six supply chain centers which manufacture dough and distribute food and supplies.
International segment accounts for about 41% of Domino's store
sales worldwide.
DOMINOS SUPPLY CHAIN1. Procurement of raw materials
Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in from jalandhar and then sent to the commissaries in refrigerated trucks.
4 commissaries (Regional Centralized Facilities)
1.Delhi 2.Bangalore3.Kolkata 4.Mumbai
2. Distribution Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks.
Logistics requirement for sending frozen foods, at a temperature of ₋18⁰C and of refrigerated trucks in which food is sent at a temperature range of between 1 to 4⁰C.
3. Retail Outlets
1. Regular stores2. Super stores : High
traffic, More counters
3. Express stores : those where people were expected to walk in and order rather than ask for home delivery.
SUPPLY CHAIN DIAGRAM
WHEAT
REFRIGERATED TRUCK
WAREHOUSE
DOUGH
RETAIL OUTLET
Outsourcing the Ingredients
ITEM PLACE
Wheat Jalandhar (Punjab)
Cheese Karnal, Haryana
Tomatoes Bhubaneshwar, Orissa
Spice South India
Baby Corn Nepal
Exotic Vegetables Sri Lanka
Pepperoni Australia
Jalapeno Spain
SUCCESS FACTORSDoor step services. Low pricing Customer satisfaction
Great offers
Marketing mix in Dominos and Pizza Hut
Product: Various options are available They try to come up with new varieties of pizza These decisions are taken by the parent company For quality and hygiene in pizza hut audit is done by parent
company in every 3 months and in dominos monthly inspection is done by parent company.
Various chemicals and insect killing machines are installed in both these restaurants.
The manager in both dominos and pizza hut are well trained and they themselves check the quality of food 3 times a day.
PRICE The reputation of both the restaurants commands high prices because of the quality of food provided but they take care of all income level people
In pizza hut here is a Rs 99 plan with a 3 course menu and also some other side dishes by adding certain amount to Rs. 99. In dominos too, price ranges from low to high for different varieties of pizza which is calculated to be the correct value of food that is served and satisfies the kind of clients that is willing to pay for it
initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an affordable and value for money meal option.
PROMOTIONIndian toppings and vegetarian pizza.Provides special mid and week offers and coupons (leads to increase in word of mouth referral)Leaflets with special coupons come along with newspaperSpecial offers during festive seasondecided by the parent companyNew menus during festivalsLoyal customers are called upon texted to inform about various offers
Place
Not many people can enjoy the home delivery service of pizza hut
Dominos is reachable to many people.
PeopleConsists of the staffs , waiters, cleaners, etcIn dominos, there is a training squad for the staffsPeople are recruited by the managerIn pizza hut, high quality training given by YumManager between time 8-11 advices the staff himself
Process
In dominos & pizza hut every single person knows the job of each other
Belief : equal opportunity and employment in both
Customer needs are identified by the parent company
Dimension of Comparison Dominos Pizza Hut
Unique Selling Proposition(USP)
30-minute Home Delivery Frame
Dining Experience
Market Penetrations strategy –
Redefining their recipes
a)Customizing the recipe as per the “Different
Regions”; then adding taste factor.
b) Simplified ordering system – SINGLE toll free
number.c) Very fast growth in terms of number of
outlets:from 1(1996) to 101(2001)
a)Redefining the recipes suiting the Indian tastes
“No differentiation region-wise”
b) Recently introduce as PHD
c) Pace of growth was slow.
Juts 19 outlets in the same period of time
4P
Dimension of Comparison
Dominos Pizza Hut
Product Pizza - High Localization; even based on different regions.Trendsetter in localization.
Recipe redefining as per the Indian taste.Following Dominos in localization.However; opened 100% vegetarian restaurant.Customization based on Religion – JainCity specific – Hyderabad(Halal meat)
Price Initially high price; as key ingredients sourced from Australia and Spain.Competition with Pizza Hut resulted in Price cuts, discounts.
Initially high price; as Pizza Hut offer “Comeback Value to our customer” because of its USP – Dining Experience.
Current ScenarioDominos Pizza Hut
Product •Pizza with promise of fast delivery•Offers mainly Pizza along with pasta, cakes and few other side dishes•Mainly focused on pizza
•Casual dining experience as well as fast delivery (PHD & Restaurants)•Also offers a wide variety of pasta,salads, soups, desserts, beverages etc.•Less than 50% of sales is from pizzas
Price •Concentrates mostly on the lower to middle band•Caters mainly to price sensitive segment.•Lowest Offering is at Rs. 45
•Starts from lower end and goes up to an upper end•Caters to many price and taste segments•Lowest offering is at Rs. 44
Dominos Pizza Hut
Promotion •Coupons•Bundling•Offers•Encourage online ordering
•Coupons•Bundling•Offers•Encourage online ordering
Place •500 stores across 110 cities•Conveniently located for fast delivery•Encourages online ordering
•121 stores across 34 cities•Located at places where people visit more for leisure (Casual Dining)•Opened PHD for catering to home delivery•Also encourages online ordering
Menu
Production Process of DOMINO’S
Distinguishing featuresIn Dominos, order is taken at the counter and the payment is to be made then and there but in Pizza hut , a single waiter is allotted for a single table who takes our order.
in pizza hut, along with the bill comes a sweet little note saying "thanks“ but in pizza hut, a questionnaire is provided along with the bill
Pizza hut can be booked for special occasions like birthdays, kitty parties(minimum people = 20)
In pizza hut, while leaving there is a BELL, the pizza hut tradition which when ringed indicates customer satisfaction
For older people and children waiting outside the pizza hut, special seats are reserved.
ANALYSIS: STRENGTH
PIZZA HUT• Strong brand image• Unmatchable quality
and variety• Hygiene• Excellent quality• Customer satisfaction
DOMINO’S PIZZA• More outlets even in
smaller towns.• Less than 30 mins home
delivery.• Low price• Excellent offers• Customer satisfaction• Quick service at outlets
ANALYSIS:WEAKNESS
PIZZA HUT• Inadequate
advertisements.• Inadequacy of outlets.• High prices• Lack of parking facilities
at outlets.
DOMINO’S PIZZA• Lack of variety• Outlets lack space• Ambience not up to
mark• No special option for
birthday parties and corporate lunches.
WEEKLY
OCASSIONALY
MONTHLY
HOW OFTEN DO YOU VISIT PIZZA HUT OR DOMINOS?
35%40%25%
WHICH ONE DO YOU PREFER MORE ACCESIBLE FROM YOUR HOME OR WORK
PLACE?
WHICH AMBIENCE IS MORE COMFORTABLE AND LIVELY?
WHERE DO YOU THINK IS THE STAFF MORE FRIENDLY AND CO-OPERATIVE?
WHICH PLACE DO YOU FIND MORE CROWDS DURING THE WEEKENDS?
WHERE DO YOU FIND A WIDE RANGE OF VARITIES IN THE MENU?
WHOSE CUSTOMER SERVICE ARE BETTER?
WHOSE RATES DO YOU FIND MORE AFFORDABLE?
WHO DO YOU THINK PROVIDES BETTER OFFERS?
WHERE DO YOU FIND BETTER QUALITY OF FOOD?
WHOSE HOME DELIVERY SERVICES
ARE BETTER?
WHICH JOINT IS MORE HYGENIC?
THROUGH WHICH MEDIA ARE YOU GETTING INFORMATION ABOUT
PIZZA HUT?
TV
PHAMPHLETS
BILL BOARDS
NEWSPAPERS
28%20%15%33%
ANALYSIS: OPPORTUNITIES
PIZZA HUT• With growing fast food market- scope for
expansion.• Introduce more offers.
ANALYSIS: OPPORTUNITIESDOMINO’S PIZZA• With growing fast food industry- scope for expansion.• Introduce more variety• Bigger outlets• Introduce take away counters.
ANALYSIS:THREATS
PIZZA HUT• No takeaway counters for pizzas.• Low price competitors.
ANALYSIS:THREATS
DOMINO’S PIZZA• Other fast food competitors.• No take away counters for pizzas
SUGGESTIONS FOR DOMINOS
VARIETY
AMBIENCE
MARKETING
INCREASE IN SITTING CAPACITY
QUALITY OF CHEESE
BETTER OFFERS
WASHROOMS
SUGGESTIONS FOR PIZZA HUT
COST
No. OF OUTLETSWASHROO
MSDELIVERY
ADVERTISEMENT
BETTER OFFERS
SUBMITTED BY:-
AKSHAY VIRMANI 3317HEMANT GUPTA 3388MRITUNJAY NARANG 3355HAPPY RANI 3368KARAN NATHANI 3396