New Delhi Institute of Management

A

Research Project

ON

A COMPARATIVE STUDY OF PIZZA BRANDS WITH SPECIAL REFERENCE TO PIZZA HUT AND DOMINOSIn the partial fulfillment of the requirement for the

Degree of

MASTERS OF BUSINESS ADMINISTRATION (MBA)

Submitted To:

SubmittedBy:

Dr. SUSHIL SHARMA

SHIVIMITTAL(Senior Professor)

MBA (General)Roll No. - 05Session: 2012-2014 UNIVERSITY SCHOOL OF MANAGEMENT

KURUKSHETRA UNIVERSITY, KURUKSHETRA

(Established by the State legislature Act XII of 1956)(A Grade NAAC Accredited)

DECLARATION

I hereby declare that the dissertation entitled A COMPARATIVE STUDY OF PIZZA BRANDS WITH SPECIAL REFERENCE TO PIZZA HUT AND DOMINOS submitted for the Degree of Master of Business Administration is my original work and the dissertation has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles. It has not been submitted to any other University or Institution for the award of any degree or diploma.Signature of Student

(SHIVI MITTAL)

PREFACE

Research is to see what everybody else has seen & thinking what nobody has thought. Pursuing M.B.A. spanning for a period of two years provides ample opportunities to learn theory, which forms the foundation of a successful professional carrier in business management. Greater practical insights are acquired through project, which forms an essential component for the completion of M.B.A. curriculum.

The Final year project involves research designing in finance, which gives yet another opportunity to sharpen the business acumen & its acts as an acid test by relating theory with the practicality. My entire project report is compiled into several contents that include all significant aspects of the project. In accordance with the requirement of MBA course, I have done study on A COMPARATIVE STUDY OF PIZZA BRANDS WITH SPECIAL REFERENCE TO PIZZA HUT AND DOMINOS. I have done justice & have been honest in collecting & analyzing data to give value added information in the report.

ACKNOWLEDGEMENT

Dissertation plays an important role in the overall grooming by providing opportunity to apply the knowledge gained in the classroom. I have tried to apply the learning I have received from the experienced professionals, who helped and guided me throughout the tenure of dissertation. I wish to express my true regards to individuals who have been a great support and motivated me to perform better.

I would like to take this opportunity to extend my gratitude to Prof. SUSHIL SHARMA for extending his full support throughout the project. My heartiest thank to him for giving me the guidance and support to make this project possible.

I would also like to thank our Chairman, Prof. B.S BODHLA for giving me this opportunity. This has been a tremendous learning experience for me.

Shivi MittalRoll no.5University School of Management Kurukshetra

Marketing Strategies of Pizza Hut and DominosCONTENTS

S.No.TopicPage No

11) Chapter-1: Introductiona) Dominos

b) Pizza Hut

c) Market strategies of Dominos And Pizza Hut

d) Segmentation, Targeting And Positioning

e) Marketing Mix( Product, Price, Place & Promotion)

6-48

2Chapter-2: Objective of the Study49

3Chapter-3: Scope of the Study50

4Chapter-4: Research Methodology51-54

5Chapter-5: Data Analysis56-64

6Chapter-6: Recommendation and Conclusions66-71

7Bibliography73-75

8Annexure76-77

CHAPTER 1

INTRODUCTION

IntroductionFast food is one of the worlds largest growing food types. Indias fast food industry is growing by 40% .the multinational segment of Indian fast food industry is up to Rs. 20 billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6 years, foreign investment in this sector stood at rs.3600 million which is about one-fourth of total investment made in this sector. Because of the availability of raw material for fast food, global chains are flooding into the country. The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India, exposure to global media and western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends.

Major players in fast food are:

McDonalds Pizza hut

Dominos pizza

Caf coffee dayThe main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world.Market Share And Major PlayersThe organized pizza market in India is worth Rs.600 Crore. The major players in the market are pizza hut and dominos whose market share are around 45% and 35% respectively.Other players form the rest 20%Branded Pizza Market Share: Interpretation: Dominos market share is 45% Pizza Hut market share is 35% Others market share is 20%1. Hot Millions2. Garcias

3. Papa johns4. YO china

Dominos

Brief History Of The Company, DominosThe dominos brand was founded in the United States of America in 1960 by Thomas and James Monaghan. Since then, that business has grown into a global network of over 8,500 pizza stores in more than 60 countries, involving over 2,000 franchises. Over its 49-year history, dominos has developed a simple business model focused on delivering quality pizzas in a timely manner. Dominos pizza, inc., completed its initial public offering in 2004 and is listed on the New York stock exchange. (source: dominos pizza, inc.)Domino's pizza India ltd. was incorporated in March 1995 as the master franchisee for India and Nepal, of domino's pizza international inc., of U.S.A. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary..

Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union territories (as on 31st august 2009). According to the India retail report 2009,dominos are 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.Domino's pizza constantly strives to develop products that suit the tastes of its consumers and hence delighting them. Domino's believes strongly in the strategy of 'think global and act local. Thus, time and again domino's pizza has been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian consumers. Further, providing value for money at affordable products to the consumers has been dominos motto. Initiatives such as fun meal and pizza mania have been extremely popular with consumers.

Tracing FootstepsMany pizza lovers would still remember the havoc that occurred in mid april 2009 in which some dull witted dominos employees posted a kitchen video of dominos that clearly showed the lack of sanitation in their kitchen in youtube. The video attracted millions of views in a few hours and was indeed viral. Dominos did an excellent job of crisis management and used social media to spread a viral video in which the company president took control of the situation and apologized to the public, announced separation of the company from wrong doers and their prosecution. He also guaranteed that such issues will not happen again. Dominos clearly proved that communication meant engagement, transparency and responsiveness to the interaction with customers.Through The Looking GlassIt has never been difficult for dominos to find out novel ways to enthrall its customers. Delicacies that do not rip wallets have always got the crowd coming back to the dominos although its ambience is not up to that of its competitors. Khushion ki home delivery, where the order gets delivered in less than 30 minutes. All other activities, be it new variants, great service, timely deliveries or more for the same price the effort of dominos has always been directed towards making its customers happy.Dominos Pizza Menu Card:

Dominos SWOT Analysis:

Pizza Hut

Brief History Of The Company, Pizza HutPizza hut was started in 1958, by two brothers frank and dan carney in wichita, kansas. They had the idea to open a pizza parlour. They borrowed $600 from their mother, and opened the very first pizza hut. In 1959, the first franchise unit opened in topeka, kansas. Ten years later, pizza hut 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.

Until 1997, pepsi owned pizza hut, the company also controlled a vast network of fast-food operations that included kfc, pizza hut, and taco bell. With 29,000 locations across the world, the restaurant group was the largest in the world. However, pepsico decided to spin off its restaurant business as a separate company.

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 delhi, 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.Pizza Hut Menu Card:

Pizza Hut Vision And MissionWorldwide 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 for 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 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. These products like chicken tikka, spicy korma, picy 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 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 etc.

Core CompetenciesPizza Hut

Tracing Footsteps

Pizza hut is akin to the Indian heart and taste buds. Pizza hut has been able to capture the heart and soul of Indians. This, they achieved through rapid Indianization of pizzas. Chicken tikkas, tandoori range and spicy korma were welcomed by pizza lovers. In addition to this, pizza hut takes pride in having the only 100% vegetarian pizza hut in the world at ahmadabad, surat and mumbais chowpatty . It also has a special jain friendly menu without root based ingredients and even serves salad dressings without eggs!!!

Through The Looking Glass

Thinking out of the box was never new at pizza hut. With the palat campaign, they even nudged Indians to eat pizza backwards. The vehicle for this change was the stuffed crust pizza which has become a huge hit. The pizzas outer crust has a stuffing of mozzarella cheese and one can run into people eating these pizzas backwards in many outlets. Talk about bringing changes!!!

Pizza hut is really going global. Tuscani pastas that is truly italian is now at every pizza hut outlet. With changing tastes of Indians and greater acceptance of international cuisines, pizza hut has introduced 30 new items on its menu for this festival season. These include beverages, pasta and desserts.

Pizza hut express outlets were launched at malls, airports, department stores and gas stations which offers a reduced version of the menu for globe trotters and busy bees.Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches.

Pizza hut express outlets were launched at malls, airports, department stores and gas stations which offers a reduced version of the menu for globe trotters and busy bees.

Dreaming BigPizza hut aims to be the number one restaurant chain in India and expects a turnover of $1 billion by 2015. The yum restaurants plans to invest $150 million in the next 5 years to expand the number of outlets to 1000 from the existing 215.

Access to Crucial ResourcesPizza HutWorkforce of pizza hut is chosen with the motto together we grow with primary concern being quality of service, be it in terms of delivery or quality of pizzas. The employees undergo extensive training to achieve technical finesse and leadership qualities. The newly chosen chefs are trained by the older and more experienced ones for a period of about 20 days. Pizza hut takes pride in walking the talk with the leadership principles of yum restaurants. These values include customer focus, trust in people, recognition, accountability, excellence, positive energy and team work. The customer focus is so high that they have separate systems in place to satisfy vegetarian customers. Vegetarian dishes are prepared and served using separate green spatulas.

Moreover pizza hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches.

Pizza hut considers its employees to be the greatest strength. From the viewpoint of a customer it is the variety and taste of pizzas which is directly tied to its employees!

The menu remains constant throughout the country and varieties are just added. The newest entrants into the Indian menu were stuff crust pizzas and cheesy bites

Vegetables, meat, and other additives are supplied by one common vendor.

SWOT Analysis Pizza Hut

LITERATURE REVIEW.

(Ali etal. 2010):-

The Indian fast food habits and the customer perception towards fast food has noticed gradual shift in the recent years as the significant portion of the population spent more money on eating fast food from the domestic and international retailers in the market. The sector was once unnoticed and merely had any existence in the food and hospitality industry but recent findings suggested that there is huge potential in the sector as the growth rate was recorded above 30% in the recent years.

Kumar and Basu (2008) stated that during evolution in the presence of overseas companies in the market, the domestic players too changed their business strategies in terms of offering new menus at revised prices and many other service including entertainment, change in store formats, opening of stores at a number of locations and moreover providing food and services with the influence of western culture. Kumar and Basu (2008) said that domestic players such as Wimpy, Nirulas, Pizza Corner, Bikanerwala and Haldiram were some of the domestic retailers that expanded their market operations by opening various stores around the cities.

Goyal and Singh (2007) emphasised that consumers around the world adopted information seeking behaviour in terms of gaining in depth knowledge on nutrition values, availability of hygienic foods and the value for money and therefore fast food retailers in India had to make several changes in their business models as the new companies entered the markets.Kath (2003) stated that availability of healthy food, take away options, hygiene and cleanliness at stores were some of the major yet critical factors that influenced the perception of the customers towards fast food growth in the country.

An analysis of the competitors of Pizza Hut and DominosWeaknessStrength

SubwayStill adapting to Indian tasteKings of sandwich markets

ExpensiveCustomized preparations

Pizza cornerLow investments in adVariety

Delivery not satisfactoryQuality

KfcMore of chicken, less scope for veggiesVariety masters for chicken

McdonaldsLess varietyBurger leaders

Fast service

More offers

Papa johnsExpensiveExcellent quality

Variety

CcdConcentrate more on beverages, less options on snacksQuality

ExpensiveVariety in beverages

BaristaConcentrate more on beverages, less options on snacksExcellent ambience

Marketing Strategies

Of Dominos And Pizza Hut

Marketing Strategies Pizza HutAdapting To Economic EnvironmentIn 1991 under the guidance of a visionary narasimha rao and his comrade manmohan singh India marched towards a new era of liberalisation, privatisation and globalisation. 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 has a striking 19 outlets which remain busy till late night.

pizza hut has 140 restaurants across 34 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 embrace fast foods to suit the pace of our life.

Embracing Technology

Locating stores and placing orders has never been easier for pizza hut loyals. 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 technologies are used at the cash counters.Across Socio-Cultural Barriers

Food has no language. Good food is appreciated across the globe. Pizza hut has outlets in a better part of the world. It has taken immense effort to cater to its customers all over the world.

Marketing Strategies DominosAdapting To Economic EnvironmentDominos 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 TechnologyLocating stores and placing orders has never been easier for pizza hut loyals. 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 technologies are used at the cash counters.Across Socio Cultural Barriers

Dominos outlets are prevalent in every small-big town across the world. Dominos has taken cues from changing preferences of its customers and put together a tantalising menu that attracts foodies around the globe.

Segmentation,Tageting And PositioningOfDominos And Pizza Hut

Segmentation Pizza HutGeographicRegion pizza hut outlets in different countries is a way of segmenting their market according to region and finding out potential markets.

City they also segment the cities as class i, class ii, metros, small towns.

Demographic

age under 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years, 40+ years. amily income middle class, upper middle class, high class dual income earners yes/no

Psychographic

socio-economic class urbanBehavioral

occasions birthdays, corporate lunches, marriages, parties, receptions loyalty status low, medium, high user status first time, regular, non-userSegmentation OF DominosGeographicRegion dominos outlets in different countries is a way of segmenting their market according to region and finding out potential markets.

City they also segment the cities as class i, class ii, metros, small towns.

Demographic

Age under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years, 50+ years. Family income lower middle class, middle class, upper middle class, high class

Psychographic

Socio-economic class urban (a1, a2, b1, b2, c, d) BehavioralLoyalty status low, medium, high

user status first time, regular, non-userTargetingPizza Hut In geographic segment they targeted countries where there were no pizza hut outlets. Initially opened in class i cities and then have now moved to metros.

In demographic segment 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.

In psychographic segmentation they targeted a1, a2, b1 socio-economic classes.

In behavioral segmentation 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 automatically make them a loyal customer

Dominos In geographic segment 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.

In demographic segment 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.

In psychographic segmentation they targeted a2, b1, b2 socio-economic classes.

In behavioral segmentation it was found that they were targeting the first time users and also their regular users.

Positioning

Points Of Difference

The major point of difference between pizza hut and dominos is that pizza hut concentrates on in-restaurant dining. The ambience and decor of all pizza hut outlets are good and the outlets are spacious. When customers think of party and decide to have pizza, pizza hut only comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business meetings in their outlets.. Dominos aims at fast home delivery of pizza. Whenever customers want to have pizza at home, they think of calling dominos and ordering for it because they are experts in home delivery of pizza. we earn 60% of our revenue from home delivery of pizzas and 40% from the restaurant sales , says Mr.Navamani, manager of Dominos.In case of pizza hut, the major revenue is from restaurant sales.Points Of Parity

Category points of parity the main food item that is sold in pizza hut and Dominos is pizza. As we all know, pizza comes under the fast food category of foods, both the companies must be good in speed of making and service. Irrespective of the cost, both pizza hut and Dominos has to deliver or serve pizza in less time as compared to other main course food items served in other restaurants.

Competitive points of parity competitive points of parity in case of pizza hut is that, even though pizza hut is costlier than Dominos, they have their own customers, who do not bother about spending, but look for quality and personalized service. When we visit pizza hut, they have restaurant hostess who will assign us tables and introduce the steward who will be taking care of us. This is generally a procedure that is followed in five star category hotels and pizza hut is also following it to emphasize on service quality. In case of dominos, they are not costly as pizza hut and do not offer great ambience to customers, but offer good pizzas at nominal price.

MARKETING STRATEGIES OF DOMINOS AND PIZZA HUTPizza Hut AS AProduct

Pizza Hut

The Customer Value HierarchyFrom the above diagram we can see that pizza hut has enjoyment as a basic product but it provides food for it. Thus a person having a basic need of enjoyment can go to pizza hut and have pizza which is the companys core product. Hot pizza and good taste are his expectation. Thus the company should ensure this by providing good pizza. The value adds services refer to the overall dining experience, the service quality, ambience etc.

Product DifferentiationWorldwide 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.

Pizza FeaturesPizza hut has many unique features of their product due to which it attracts the customers. The product is classified into non durable goods as it is a food item pizza hut differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas range of, pastas appetizers, cakes, and desserts etc.

Mass CustomizationThe main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customers mind and thus one can enjoy whatever pizza hut can offer.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

StylePizza 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.

DeliveryPizza 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 is served within 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customer haves the food. Any pizzas delivered outside 30 minutes are given free. Also discount coupons are given to the customer in case one doesnt want a free pizza.

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.Packaging & LabellingThe 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

They are put in a paper box 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

All the pizzas covered in paper boxes described above are packaged into a special delivery bags for retaining the heat. Thus we can observe that from every labelling, packaging the company tries to imbibe the brand of pizza hut in the minds of consumers.PlaceOnce the product has been decided upon and the market segmented, targeted and the product positioned, it is time to decide how and where the marketer can deliver the value (product) to the customer. This is done through marketing channels that make the product available for consumption to the customer.

Push And Pull Strategies In Channel Marketing:In a push strategy, the manufacturer uses his sales force, trade promotion, money or other means to induce intermediaries to carry promote and sell its products to end users.

In a pull strategy, the manufacturer uses advertising, promotion and other forms of communication to persuade the customer to demand the product from intermediaries, thus inducing the intermediaries to order it.

Dominos: Pursuing A Push StrategyDominos pursues a medium push strategy in its channel marketing. The advertising layout for dominos is minimal in India. Dominos concentrates on incentivizing customers instead off advertising and promotion. As a result, dominos regularly introduces sell-in schemes (promotional schemes for dealers), promotional coupon, festival offers etc. Pizza Hut: Masters At Pull StrategyPizza hut follows more or lesss the opposite strategy. Pizza hut has mastered the art of pull strategy. It pioneered the practice of advertising and promotion in the fast food industry. Pizza hut achieved this remarkable feat by adopting a different marketing strategy that involved increasing ambiences and amusement for the customers.Pricing Of DominosIndians are value-sensitive, not price-sensitive. The price was attributed to the high quality of ingredients used. For instance, Dominos sourced its Peperoni and Jalapeno needs from Australia and Spain respectively. However, with competition increasing from Pizza Hut, Dominos introduced price cuts, discounts and freebies to attract the customers. In 1998, Dominos 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.

In India Dominos 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 a outing in any festival and as a cheap family restaurant Dominos would be most preferable.

The Dominos 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 Dominos Pizza India offers four pizzas at the rate of Rs 180. This means charge of one pizza will be just Rs 45. Pricing Of Pizza HutIn 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. 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 is 'market skimming'. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Pizza Hut, as there are no competitors and hence, Pizza Hut is free to charge any price they want.

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 Pizza Hut will have to change its pricing strategy.Although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality food products are not home-produced. They are imported from different countries keeping in view the best quality.

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 create excitement.PromotionDominos

Promotion, which is known as marketing communication, is a major attribute for any product or service. In modern marketing it is more than developing a good accessible product or exact pricing.

Ever since it was established, Dominos Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards. More importantly, it 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 chain of stores around the country. Customers can order their pizzas by calling a single countrywide Happiness Hotline 1800-111-123. In fact, Domino's was the first one to start this facility for its customers.

Domino's is committed for bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base.Communication ObjectivesCategory NeedDominos master franchise model

Industry analysts believed that Domino's master franchise model was one of the reasons for its success in international markets even in light of the global economic slowdown in 2008.

How domino's international bucked the trend

The strong performance of Domino's international master franchises in the midst of the global economic slowdown was a widely debated topic among analysts. While some analysts believed that the recession had helped the growth of these chains due to the 'trading down factor' of people preferring to eat at home rather than dine out at expensive restaurants, others believed it was a combination of aggressive marketing and the franchise model that had helped the company buck the trend.Brand AwarenessPromotional and advertisement campaigns

The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception, Dominos had been known for its unique promotions that included fast delivery and innovations to cater to a varied palette.

The '30 minutes' promise

In the year 1973, Domino's began a guarantee scheme that its pizzas would be delivered in 30 minutes or less of ordering failing which the customer would receive the pizza free.Brand AttitudeUse of technologyOnline 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 channels in the downturn.Brand Purchase IntentionWhat makes dominos pizza better than its competitors

Varity of Pizzas

Services offered

Quality of pizzas

Location of the Outlet

Waiting time in the outlet

Door step services

Low pricingDeveloping Effective CommunicationTarget To Age Group/Class

Dominos target audience is a consumer who belongs to age group of 14 to 35 years from the Economic Class A or B and preferably one who has been exposed to the western culture as well as the western style of eating. They are people who are upwardly mobile and dont mind to pay for convenience. In this category teenagers are the most affected by western culture and its eating habits. The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70% of the total sales volume of pizzas in India.

As far as the socio Economic class is concerned, since Dominos pizzas are priced from about Rs.80 onwards. However, Dominos have now come out with pizzas ranging from Rs.39 onwards to target the ever-increasing middle class consumers.

Discount coupons are being provided with every item purchased.

New schemes at regular interval of time according to the taste of the Indian customer.

Creative StrategyLatest in dominos

Kwality walls ice-creams in dominos- For the first time dominos started offering ice creams .Selling ice cream in Dominos is also a new sales Dominos has also segmented the market geographically by deciding to initially cater to only the metropolitan cities and urban areas. They have left out the rural areas due to the low level of awareness regarding western dishes as well as typical Indian patter of eating.

30 min campaign:This is a campaign in which Domino's offers its customers free Pizzas if they are not delivered in 30 minutes from the time of order.

They have a store in a radius of 3 kms in major metropolitan cities. Anything which is far away from 3 kms doesnt fall in this category.

Domino's latest special offer promises a hot and piping pizza delivered on door under 30 minutes, or it's free. But 30 minutes is a very short time for a typical Dominos Pizza local delivery, but it's the latest special offer from Dominos in an effort to outdo the competition. Still, there are some cities where it must be really tough to make a Dominos Pizza local delivery, the cities where traffic congestion is a natural way of life.Design The Communication: Message StrategyOffers By Dominos

With every order of pizza and coke/Garlic bread sticks get a dominos pasta for Rs. 39 instead of Rs 69.

Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/- & non veg Rs 79/- Get garlic bread for only Rs 30/- with any of the pizza mania combinations.

Dominos start providing coke/fanta/sprite.

Dominos started pizzas mania which starts from Rs 35 and we get the toping according to our choice.

Web coupons available at web site www.dominos.co.in promotion strategy to attract more customer in a new perceptive /innovative way.

Dominos has also come up with pasta mania.

Communication MixEvery company must follow the eight major marketing communication modes. For Dominos direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Dominos always search for ways to gain efficiency by replacing one communication with others. The sustainability among communication tools explains why marketing function need to be coordinated.

Advertising

It reaches geographically dispersed buyers. Dominos vision is focused on Exceptional people on a mission to be the best pizza delivery company in the world! ". Domino's 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 its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base. Its all advertisement are image of core competencies. Their taglines The Pizza Delivery Experts and Hungry kya? are showing their focusing area in promotion.

Events/ ExperiencesThey are sponsoring some college fest, cultural program and promotional events throughout the country for promotion.

Public RelationsDomino's constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow effect (the feel good factor). Domino's believes strongly in the strategy of 'Think local and act regional'. Thus, time and again Domino's has been innovating toppings suitable to the taste buds of the local populace and the Indian market has very well accepted these.

Personal SellingDominos 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.

Sales Promotion Marketing Strategies of Pizza Hut and Dominos 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. Dominos Pizza India also boasts about its commitment to serve its customers on time by implementing the 30 MINUTES OR FREE service commitment. They are continuously offering new incentives to the customers.Word of mouth

This tool is very powerful for promotion in the fast food industry. Low price and good behavior gave them the edge in India.

Research Methodology

Research is a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford Woody, Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.Objective of the Study

.To study the consumption pattern towards fast foods particularly with respect to

The frequency of visits and choice of fast food outlets.

To know the satisfaction level of customer on pizza of pizza hut.

To know the satisfaction level of consumer of pizza in dominos.

To know about the strategies adopted by both the companies.

To know which type of taste customer likes in pizza.

To know whose pizza is like most by the coustmers.

To know the visit of customer in a week of pizza hut.

. To identify the factors affecting the choice of (Indian youth) consumers for fast food.

Scope of the Study

The Study Is Helpful To Company For Knowing That How Many Persons Are Satisfied With Pizza Of Pizza Hut.

Company Can Make The Product Better As Per Customer Suggestion.

During Study Researcher Get Large Experience And Introduced Himself In Front Of New People.

The study is also helpful in finding out the respondents opinion towards certain attributes. This study can be helpful to the company for conducting any further research.Research Design

Research design aids the researcher in the allocation of limited resources by posing crucial choices in methodology. Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the over all scheme or program of the research. It includes an outline of what the investigator will do from writing hypothesis and their operational implications to the final analysis of data.

Descriptive Research design The design for this study is descriptive research design. This design was chosen as it describes accurately the characteristics of a particular system as well as the views held by individuals about the system. The views and opinions of employees about the system help to study the suitability of the system as well as the constraints that might restrict its effectiveness.Exploratory Research Design:

It isresearchconducted for a problem that has not been clearly defined. It often occurs before we know enough to make conceptual distinctions or posit an explanatory relationship.[1]Exploratory research helps determine the bestresearchdesign,data collectionmethod and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.Sampling Techniques

The sampling technique adopted for the purpose of the study is convenience sampling. As the name implies a convenience sample means selecting particular units of the universe to constitute a sample.

Sample Size

The sample size of the study is 100. This sample is considered as representative.

Data Collection

Primary Source

The primary source of data is through Questionnaire. The main reason for selecting the questionnaire method for the study is:

Respondents have adequate time to give well thought out answers.

The time of the study was also a limiting factor.

Secondary Source:

The secondary source of information is based on the various details retrieved from Journals, Websites and Magazines. Secondary data will consist of different literatures like books which are published, articles, internet , the company manuals and websites of company Data from existing records created for other purposes (secondary sources)Such as data from report cards, membership list or social service agency records.Sources may include industrial figures, databases, library sources, government publications and so forth.The information for project report has been collected from websites, books, unstructured interviews etc. therefore, the sources of information in this project report are both primary and secondary data.

The data for this study has been collected through primary sources. Primary data for this study was collected with the help of Questionnaires and evaluation feedback forms. The extra information was collected through interviews with the employees at various companies.CHAPTER 2

DATA ANALYSIS AND INTERPRETATIONQ1) Age of respondents:

AgeNo. of respondentsPercentage

Below 201521

21- 302029

31-401521

41-501217

Above 50812

Total70100

Interpretation:The result shows that majority of respondents i.e. 29% falls under the category of 21-30 years and 21% falls under below 20years it shows that pizzahut is mainly famous among youngsters as they are the major users of pizza hut and least comes under above .

Q2) Occupation of respondent:

OccupationNo. of respondents

Professional13

Self Employed32

Student15

Others10

Interpretation:

The result shows that majority of respondents that are using pizza are selfemployed i.e. 46% they are using dominos services because it results in time saving. 21% are include students because they have complete knowledge of internet and 14% other including housewives they are using dominos because it saves time .

Q3. Income level of customers:

INCOME Total no

Below 10,000 11

10,000-25,000 20

25,000-50,000 24

More than 50,000 15

Interpretation:

The result of this study shows that 29% of the respondents who are using dominoss fall under the income category of 10,000-25,000 and 34% falls under the income category of 25,000 to 50,000 and 21% % falls under the income category of more than 50,000 and 16% % falls under the income category of below 10,000.

Q4. How often do you visit Pizza Hut?

(i) Weekly

(ii) Monthly

(iii) OccasionallyWeekly Monthly

Occasionally

40%30%30%

Interpretation:From the analysis, we can see that most of the customers i.e. 40% visit pizza hut weekly.

Q 5 Which brand you prefer the most?

(i) Pizza Hut(Ii) Dominos(Iii) Other

Pizza hutDominosOther

40%40%20%

Interpretation:Here from the analysis we found that pizza hut and dominos are the biggest competitor of the market. Customers give equal preference to both brand.Q6. Through which media you are getting information about Pizza Hut?

(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Others

TVNewspaperPamphletsBill boardsOthers

25%15%20%15%25%

Interpretation:The above analysis shows that most of the customers get information about pizza hut products through TV and also from their pamphlets.Q7. Would you try a new food item launched Pizza Hut:

(e.g Conniza , Freshizza )

(i) Yes

(Ii) No

YesNo

65%35%

Interpretation:Most of the customers are ready to try the new products launched by pizza hut. It gets positive response from the customers towards new offerings.

Q8. Specify your satisfaction with Pizza Hut according to the Quality?

ParameterExcellentGood AveragePoor

Quality25%35%25%15%

Interpretation:The above analysis shows that it offers excellent quality products to 25% customers and good quality products to 35% customers. So it get positive response from the customers.

Q9. Specify your satisfaction with Dominos according to the Quality?

ParameterExcellentGood AveragePoor

Price20%35%35%10%

Interpretation:According to 20% customers, dominos offers excellent quality products and 35% customers says that it offers good quality products.Q10. Specify your satisfaction with Dominos according to the Service?

ParameterExcellentGood AveragePoor

Service20%45%30%5%

Interpretation:The above analysis shows that according to 45% customers the service is good, 20% customers rated it as excellent and it is just average according to 30% customers.Q11. Compare Pizza Hut with the following food chains and rate them on a scale of 100.

NameQualityStoreServiceAmbiance

Pizza Hut25%20%25%15%

Dominos35%45%25%40%

Pizza Corner20%15%20%25%

Nirulas20%20%30%20%

QUALITY

STORE

SERVICE

AMBIANCE

Interpretation:From the above analysis we find that dominos leads in terms of all the quality, store and ambience but Nirula is good in terms of sevice.

Customer Reviews for Dominos Pizza

Mostly 60% of the customers come here for food and the others for enjoyment as their basic requirement

Mostly customers come to dominos for take away pizzas

Most customers are from the middle income group or students whose disposable income are relatively less

Generally everyone finds the taste of the pizzas to be good

Also the location of the restaurant mattered a lot as many people come to Dominos since its located besides VOC park

Even we had food in the restaurant and we also found the taste to be great!

Also people preferred Dominos for their relatively lower priceMost Common Answers (From Customers) Generally 65% of the orders are either take away orders or placed from outside. In dining contributes only 35% of the revenue

The companys product recall 95% of the times relates to Delivery in 30 minutes or food (which pertains to their Hungry Kya? (promotional campaign)

Enjoyment is perceived to be achieved after having the food quickly

Dominos Brand thus relates mainly to service & delivery neither they promote their in dining experience nor they spend revenue for it.Customer reviews for Pizza- Hut

Mostly 80% of the customers come here for enjoyment, ambience and the rest for food as the basic requirement

Mostly customers come to Pizza-Hut for dining experience

Most customers are from the higher income group

The customer service in the restaurant is also good

Generally everyone finds the taste of the pizzas to be goodMost Common Answers (from customers)

Generally 70% of the orders are in house orders i.e. dining. Orders which are either take away or placed from outside contributes only 30% of the revenue

The companys product recall 90% of the times relates to ambience and enjoyment

Pizzas are secondary to enjoyment

Pizza Hut as a brand thus relates mainly to ambience and enjoyment with pizza.

Chapter 4

Findings & ConclusionsFindings

Findings Results indicate that the young Indian consumer has passion for visiting fast food outlets for fun and change but home food is their rst choice. They feel homemade food is much better than food served at fast food outlets. They have the highest value for taste and quality (nutritional values)

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, Dominos sourced its Peperoni and Jalapeno needs from Australia and Spain respectively. However, with competition increasing from Pizza Hut, Dominos introduced price cuts, discounts and freebies to attract the customers. In 1998, Dominos 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 promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market.Suggestions

Dominos The dining conditions have to be changed drastically if Dominos have to target the premium segment of customers.

They are way behind Pizza Hut in the dining experience. Some of the Dominos restaurants lack even basic amenities

Due to this a condition can occur where customers judge the quality and taste of the pizza with respect to the restaurant environment and ambience

Thus to have a greater market share and tap premium segment of the market, Dominos can provide good quality restaurants

There should also be provision for music, TVs, 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 pizza can increase the elasticity of demand greatly

Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut should offer more discounts to tap more customers

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. Hence they should increase their presence.Limitation

The survey was conducted within the limited time frame; so few shortcoming may be expected.

The respondents personal bias may be another factor, which is uncontrollable.

The finding of the survey is strictly based on the responses of the respondents. it is difficult to find the euthenics be true, so we are assuming them to be true. Chances of some biasness could not be eliminated.

A Samples size of fifty has been use due to time limitations. The study does not represent classes of managerial professionals not interviewed, such as those from educational institutions, health-related industries, law enforcement, or global businesses.

BibliographyWebsites: http://en.wikipedia.org/wiki/Pizza_Hut access on 2nd march 2010.

http://www.recipepizza.com/the_history_of_pizza_hut.htm access on 5th march 2010.

http://www.spaceref.com/news/viewpr.html?pid=4921 access on 10th march 2010.

http://www.globalclassroom.org/pizza.html access on 15th march 2010.

http://www.oppapers.com/subjects/pizza-hut-pricing-strategy-page1.html access on 20th march 2010.

http://www.religiondispatches.org/archive/atheologies/2221/from_%E2%80%98management_gurus%E2%80%99_to_%E2%80%98corporate_chaplains%E2%80%99:_a_review_of_spirituality_inc. (Accessed on 3 March 2011)

http://www.indiastudychannel.com/resources/2639-Bsc-it-rd-semester-Syllabus-Punjab-technical-university.aspx (Accessed on 4 March 2011)

http://www.drpaulwong.com/index.php?option=com_content&view=article&id=83:spirituality-and-meaning-at-work&catid=42:cl&Itemid=59 (Accessed on 4 March 2011)

http://www.workplacespirituality.info/SpiritualityCreativityBusiness.html (Accessed on 4 March 2011)

Appendix

Questionnaire

Name: Gender: M / F

E-mail ID: Mobile No. :

Age Group: a) Below 18

b)18-28

c)28-40

d)Above 40Occupation: a) Studentb)Business c)Service d)Housewife e) Any other

Q1. How often do you visit Pizza Hut?

(i) Weekly

(ii) Monthly

(iii) OccasionallyQ2 which brand you prefer the most?

(i) Pizza Hut

(Ii) Dominos

(Iii) OtherQ3. Through which media you are getting information about Pizza Hut?

(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Others Q4. Would you try a new food item launched Pizza Hut? (e.g Conniza , Freshizza )

(i) Yes

(ii) No Q5. Specify your satisfaction with Pizza Hut according to the Quality?

ParameterExcellentGood AveragePoor

Quality

Q6. Specify your satisfaction with Dominos according to the Quality?

ParameterExcellentGood AveragePoor

Price

Q7. Specify your satisfaction with Dominos according to the Service?

ParameterExcellentGood AveragePoor

Service

Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.

NameQualityServiceAmbiance

Pizza Hut

Dominos

Pizza Corner

Nirulas

_1460368142.xlsChart1

13

32

15

10

Occupation

Sheet1

Occupation

Professional13

Self Employed32

Student15

others10

To resize chart data range, drag lower right corner of range.

_1460368193.xlsChart1

11

20

24

15

. income level

Income level

Sheet1

. income level

Below 10,00011

10,000-25,00020

25,000-50,00024

More than 50,00015

To resize chart data range, drag lower right corner of range.