Pizza WarDominos & Pizza HutRaj Kumar Singh

Introduction• Both Dominos and Pizza Hut entered in 1996.

• Both are US based fast food chains.

• Faced competition from street food corners, fast food chains and restaurants.

SIMILARITIES• DOMINO’S & PIZZA HUT• Both claimed to have original recipe of pizza

making • Both customized their offerings (though pizza hut

followed domino’s )• Both concentrated on database marketing• Both introduced coupons, discounts and special

offers• Both used promotional campaigns involving

customers directly• Both wanted to establish themselves as a Brand

DIFFERENCES (Late 1990s – early 2000s)

PIZZA HUT 46%

DOMINO'S22%

OTHERS32%

MARKET SHARE 1999 PIZZA

HUT18%

DOMINO'S70%

OTHERS12%

MARKET SHARE 2000

Positioning- Dominos• 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 money offerings. We have endeavored to establish a reputation for being a home delivery specialist capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers from all our restaurants around the country. (Source- Dominos Site)

• Brand Tag Line Hungry Kya?

Source: Corporate Communication Dominos and Jubilant Food Works-Sylvia Dutta (Corporate Relation)

Positioning- Pizza Hut• Restaurant Dinning Experience Conversation, Memories, Laughter, Togetherness

Repositioning in 2008

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) No such provision in Pizza Hut’s case.

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.

Dimension of Comparison

Dominos Pizza Hut

Promotion Introduce Pizza mania(Large Pizza – Rs.129/-)

Discount couponsTie-up with Discovery Channel – Co brandingDirect Mailing and Pizza

Training Classes

Campaign like – Pan in your Name

Innovative Menu – Pizza Pooch menu and Pizza Pooch Birthday

PackageOne Rupee Pan dealBarah nahin to Tera

scheme

Place Most robust and efficient Supply Chain – resulted in to

reduce cost.Strategic set up of

commissaries for raw material supply.

Tie up with real estate consultant.

Targeting on non traditional outlets like Corporate office,

railway stations, cinema halls etc.

Not much focused on supply chain; rather focused on “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. 39

•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

Promotion- Dominos

Promotion- Pizza Hut1 2

Schemes for High value customer from their Life time

value study

Consumer Evolution

Self Actualization - Happiness

Basic Need - Hunger

“Khushiyon ki home delivery”

“Hungry Kya”

Experimental phase with brands

Not demanding in terms of taste &

flavoursSwitched on - offers

OLD CONSUMER

Experimental phase with taste

Extremely demanding in terms of taste &

flavoursDifferent brands for different occasions

Switch on – occasion vs deal tradeoff

NEW CONSUMER

MULTIPLE TARGET POINTS General eating out –

friends / casual General eating out - family Personal occasions - birthdays etc celebrations Corporate occasions

Competition

DIRECT COMPETITION• Nirulas’• Papa Jones

INDIRECT COMPETITION• Local food stands / shops• McDs• KFC• Food sections in malls• Coffee shops • Other Restaurants (Big

Chills etc)

Brands moving from ‘Single segment target’ towards ‘Multi segment target’

US based Papa John's, which entered the country in 2006, has decided on a major shift in strategy - to convert its dine-in

outlets to a delivery format, called 'Delcos' since the former was simply not that profitable.

FUTURE SCOPE

250,000 PIZZAS BEING DELIVERED EVERYDAY

THIS NUMBER IS EXPECTED TO DOUBLE IN NEXT 3-4 YEARS

INDIANS SPEND 20% ON EATING OUT