Tweets by @CAREERGYAAN MBA PROJECTS FREE DOWNLOAD CAREER COUNSELLING IT JOBS GOVERNMENT JOBS SARKARI NAUKARI

Wednesday, 25 May 2016

MARKETING STRATEGIES OF PIZZA HUT & DOMINOS

Project Report on


MARKETING STRATEGIES OF PIZZA HUT & DOMINOS



Marketing Strategies Of Pizza Hut
And Dominos










EXECUTIVE SUMMARY

During the past four decades Pizza Hut & Dominos has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized Pizza Hut & Dominos business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future.
There are different objectives of every organization. In order to achieve these objectives different targets are set. Targets pass down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives, management decides on different strategies. These strategies are divided into many sub-parts and are useful for the running of the business. The employees and the management know what they have to achieve through the targets which have been set to them and the strategies they have adopted help them know the way they will achieve the objectives. Similarly, Pizza Hut has different targets set to them and they have adopted different strategies to successfully achieve the targets set. These targets are set by the RSC i.e. the restaurant support centre in Karachi. These targets are passed on to the RGM (restaurant general manager) and he passes them to the workforce. These targets fall within the organizational structure in which there are many people who have different targets to achieve. In order to successfully achieve the targets they need to co-operate and work in a friendly environment.

Objective of the Study

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



Marketing Strategies of Pizza Hut and Dominos


CONTENTS

S.No.
Topic
Page No

1
Chapter-1: Introduction
09
2
Chapter-2: Data Reduction & Presentation
49
3
Chapter-3: Data Analysis
59
4
Chapter-4: Summary and Conclusions
54
5
References/Biblography
65
6
Appendices
69


CHAPTER 1
INTRODUCTION

Introduction
Fast food is one of the world’s largest growing food types. India’s 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’
      KFC
      Pizza hut
      Dominos pizza
      CafĂ© coffee day
      Barista
      Subway
The 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 Players
The 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
·         Pizza hut
·         Dominos
·         Others
Other players mainly are
      Smokin joe’s
      Garcia’s
      Papa john’s
      Us pizza
      These players mainly give competition to pizza hut and dominos in tier I cities like Mumbai, Bangalore, Chennai etc. They do not have much presence in tier ii cities.
Brief History Of The Company, Dominos
The domino’s 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, domino’s has developed a simple business model focused on delivering quality pizzas in a timely manner. Domino’s pizza, inc., completed its initial public offering in 2004 and is listed on the New York stock exchange. (source: domino’s 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 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, happiness and convenience to the lives of our consumers by delivering delicious pizzas to their doorstep in 30 minutes or less, and its efforts are aimed at fulfilling this commitment towards its large and ever­growing customer base.
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.
The brand positioning of khushiyon ki home delivery (happiness home delivered) is the emotional benefit dominos offer to consumers.
Major products they offer are pizzas, appetizers, pastas, cakes and beverages.
                               Brief History Of The Company, Pizza Hut
Pizza 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 silver’s under its umbrella. Pizza hut is the world’s 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 Vision And Mission
Worldwide 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 hut’s 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.
A critical factor in pizza hut’s success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customers in different parts of the world. 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 Competencies

Pizza 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 mumbai’s 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 pizza’s 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 Big
Pizza 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.
Dominos
Pizzas topped with cheese and happiness, dominos is committed to put an extra smile on its customers’ faces, with a mission of “exceptional people on a mission to be the best pizza delivery company in the world! ".
Tracing Footsteps
Many 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 Glass
It 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.
Access To Crucial Resources
Pizza Hut
Workforce 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.
Dominos
Dominos has been voted as the best employer by leading news daily, times of India for the year 2009. The chefs of dominos pizza India are recruited by the hr department located in noida after careful evaluation. Employees at dominos are also smiling as they get incentives on meeting sales target and are also credited for their performance.
Dominos has always been noted for the new items that spring up often in their menu. Marketing department does a careful analysis of growing demands and changing tastes and puts together the new menu that tantalises palates, says marketing head, mr. Harneeth singh.
The menu remains same throughout the country and so do systems and processes. National level suppliers are a part of the dominos family. Dominos firmly believe that it is these systems and processes that enable it to get a better edge over its competitors.
Dominos takes pride in its unbeatable delivery system. Delivery within 30 minutes campaign was indeed revolutionary and is the best core competency that makes dominos pizza a better experience than anyone else in the market.

                                      SWOT Analysis
                                           Pizza Hut


Competitors

Pizza Hut

The major competitors who lock horns with pizza hut are
•   Pizza corner
•   Dominos
•   Mcdonald’s
•   Barista
•   Cafe coffee day
•   Subway
•   Papa john’s

Dominos

The major competitors of dominos are
•    Pizza hut
•    Pizza corner
•    Mcdonald’s
•    Barista
•    Cafe coffee day
•    Subway
•    Papa john’s

An analysis of the competitors of pizza hut and dominos


Weakness
Strength
Subway
Still adapting to Indian taste
Kings of sandwich markets

Expensive
Customized preparations
Pizza corner
Low investments in ad
Variety

Delivery not satisfactory
Quality
Kfc
More of chicken, less scope for veggies
Variety masters for chicken
Mcdonald’s
Less variety
Burger leaders


Fast service


More offers
Papa john’s
Expensive
Excellent quality


Variety
Ccd
Concentrate more on beverages, less options on snacks
Quality

Expensive
Variety in beverages
Barista
Concentrate more on beverages, less options on snacks
Excellent ambience

Expensive
Variety in beverages


Quality
Marketing Strategies
Pizza Hut
Adapting To Economic Environment
In 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.

Dominos
Adapting To Economic Environment
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 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

Pizza Hut
Geographic
Region – 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 – urban
Behavioral
occasions – birthdays, corporate lunches, marriages, parties, receptions loyalty status – low, medium, high user status – first time, regular, non-user
Dominos
Geographic
Region – 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)
Behavioral
Loyalty status – low, medium, high
user status – first time, regular, non-user


Targeting
Pizza 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. Pizza hut has customized birthday party invites with different themes for the customers to choose and use it as invitations. 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, coimbatore v.o.c. Park outlet. 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. They concentrate on turnover of covers and cater to customers who don’t have time to spend on food and just stop over for refreshment. Moreover, dominos mainly looks into home delivery of pizzas and are experts in it.

Product

Pizza Hut
The Customer Value Hierarchy
From 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 company’s 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 Differentiation
Worldwide 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 hut’s 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 Features
Pizza 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 Customisation
The main advantage of pizza hut is that one can customise 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 hut’s products have very high conformance quality i.e. All the products produced are identical and meet the promised specifications
·         Style
Pizza 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 hut’s 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.
·         Delivery
Pizza hut’s 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 doesn’t 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.
Thus visa and pizza hut assist each other for branding themselves.
Packaging & Labelling
The 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 (it’s 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.


Place
Once 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.
·         Domino’s: Pursuing A Push Strategy
Domino’s pursues a medium push strategy in its channel marketing. The advertising layout for domino’s is minimal in India. Domino’s concentrates on incentivizing customers instead off advertising and promotion. As a result, domino’s regularly introduces sell-in schemes (promotional schemes for dealers), promotional coupon, festival offers etc.
·         Pizza Hut: Masters At Pull Strategy
Pizza 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 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 Peperoni 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 activities and special offers.
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 a 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 customers.

Pricing Of Pizza Hut
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 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.
In India Pizza hut is targeting the rich and higher middle class people with a great ambiences 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 they are price insensitive.
Promotion
Domino’s
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, Domino’s 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 Objectives
Category Need
Domino’s 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 Awareness
Promotional 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, Domino’s 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 Attitude
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 channels in the downturn.

Brand Purchase Intention
What makes domino’s pizza better than its competitors
  Varity of Pizza’s
  Services offered
  Quality of pizza’s
  Location of the Outlet
  Waiting time in the outlet
  Door step services
• Low pricing
Developing Effective Communication
Target To Age Group/Class
Domino’s 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 don’t 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 Domino’s pizzas are priced from about Rs.80 onwards. However, Domino’s 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 Strategy
Latest in domino’s
Kwality wall’s ice-creams in dominos- For the first time dominos started offering ice creams .Selling ice cream in Domino’s is also a new sales Domino’s 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 doesn’t 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 Strategy
Offers By Dominos
  With every order of pizza and coke/Garlic bread sticks get a domino’s 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.
  Domino’s has also come up with pasta mania.

Communication Mix
Every company must follow the eight major marketing communication modes. For Domino’s direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Domino’s 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. Domino’s 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. It’s all advertisement are image of core competencies. Their taglines “The Pizza Delivery Experts” and “Hungry kya?” are showing their focusing area in promotion.

Events/ Experiences
They are sponsoring some college fest, cultural program and promotional events throughout the country for promotion.
Public Relation
Domino'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 Selling
Domino’s 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, Domino’s concentrate more on carrying out below-the-line activities in the area it serves.
Sales Promotion
·         In India, Domino’s has been associated with the NGO’s devoted to the cause of underprivileged Children’s. Domino’s conducts Store Educational Tour (SET) for the underprivileged children time-to-time.
·         Domino’s 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.


                                     
                                      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 respondent’s opinion towards certain attributes.
·         This study can be helpful to the company for conducting any further 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”.

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

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 50. 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.


Methodology Used For Data Analysis
The methodology used for data analysis consist of pie chart, Tabulation, Graphic Representations, percentage analysis etc are used in the analysis of data.
















CHAPTER 2
DATA PRESENTATION












Q1. How often do you visit Pizza Hut?

(i) Weekly                         (ii) Monthly                (iii) Occasionally
                 
Weekly 
Monthly         
Occasionally
40%
30%
30%



Q2 which brand you prefer the most?
            (i) Pizza Hut   (Ii) Dominos    (Iii) Other
Pizza hut
Dominos
Other
40%
40%
20%


Q3. Through which media you are getting information about Pizza Hut?
    (i) TV   (ii) Newspaper   (iii) Pamphlets   (iv) Bill Boards   (v) Other’s

Tv
Newspaper
Pamphlets
Bill boards
Others
25%
15%
20%
15%
25%

 Q4. Would you try a new food item launched Pizza Hut :
      (e.g Conniza , Freshizza )
(i)  Yes                        (Ii)  No

Yes
No
65%
35%
  
Q5. Specify your satisfaction with Pizza Hut according to the Quality?

Parameter
Excellent
Good
Average
Poor
Quality
25%
35%
25%
15%
   
Q6. Specify your satisfaction with Dominos according to the Quality?

Parameter
Excellent
Good
Average
Poor
Price
20%
35%
35%
10%

Q7. Specify your satisfaction with Dominos according to the Service?
Parameter
Excellent
Good
Average
Poor
Service
20%
45%
30%
5%

Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.
Name
Quality
Store
Service
Ambiance
Pizza Hut
25%
20%
25%
15%
Domino’s
35%
45%
25%
40%
Pizza Corner
20%
15%
20%
25%
Nirula’s
20%
20%
30%
20%


QUALITY 
STORE
SERVICE


AMBIANCE



CHAPTER 3
DATA ANALYSIS
 visiting Dominos and Pizza Hut we had the opportunity to interact with lot of customers.All the analysis is based upon the customers of Coimbatore (Tier II city) perceptions may change in different cities where the competition is more. For example, in Mumbai these two pizza outlets faces stiff competition with other pizza companies (US Pizza, Smoking Joe’s, Papa John’s, Garcia’s) which do not exist in Coimbatore.

Q.1 How often do you visit Pizza Hut?
According to the study

  • 40% customers visit to pizza hut  weekly.
  • 30% customers visit to pizza hut  monthly.
  • 30% customers visit to pizza hut  occasionally.


Q2 which brand you prefer the most?
According to the study

  • 40% customers  prefer pizza hut the most
  • 40% customers prefer dominos the most.
  • 30% customers prefer other



Q3. Through which media you are getting information about Pizza Hut?
According to the study

  • 25% of customer get information about pizza hut from tv
  • 15% of customer get information about pizza hut from newspaper
  • 20% of customer get information about pizza hut from pamphlets
  • 15% of customer get information about pizza hut from bill boards
  • 25% of customer get information about pizza hut from other media

Q4. Would you try a new food item launched Pizza Hut?
According to the study

  • 65% of customer would like to prefer the new items launched by pizza hut
  • 35% of customer would not like to prefer the new items launched by pizza hut


Q5. Specify your satisfaction with Pizza Hut according to the Quality?
According to the study

  • 25% of customer think the quality of pizza hut is excellent
  • 35% of customer think the quality of pizza hut is good
  • 25% of customer think the quality of pizza hut is average
  • 15% of customer think the quality of pizza hut is poor

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

  • 20% of customer think the quality of dominos is excellent
  • 35% of customer think the quality of dominos is good
  • 35% of customer think the quality of dominos is average
  • 10% of customer think the quality of dominos is poor

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

  • 20% of customer think the service of dominos is excellent
  • 45% of customer think the service of dominos is good
  • 30% of customer think the service of dominos is average
  • 5% of customer think the service of dominos is poor

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

  • Dominos is being highly prefered by customer in respect of quality in comparison with pizza hut, pizza corner and nirulas.
  • Dominos is being highly prefered by customer in respect of store in comparison with pizza hut, pizza corner and nirulas.
  • Nirulas is being highly prefered by customer in respect of quality in comparison with pizza hut, pizza corner and dominos
  • Dominos is being highly prefered by customer in respect of ambiance in comparison with pizza hut, pizza corner and nirulas.
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 price

Most 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 company’s 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 good
Most 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 company’s 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. Hence they promote their in dining experience with the tagline ‘good friends great pizza’




Chapter 4
Summary & Conclusions

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 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. 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, 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 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 respondent’s 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.

                                    
                                        Biblography
Websites:

·         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.
Appendix

Questionnaire

Name:                                                                             Gender: M / F
                
E-mail ID:                                                                        Mobile No. :

Age Group:     a) Below 18                 b)18-28                        c)28-40                                                              d)Above 40

Occupation:   a) Student         b)Business       c)Service      d)Housewife    e)  Any other



Q1. How often do you visit Pizza Hut?

(i) Weekly                         (ii) Monthly                (iii) Occasionally

Q2 which brand you prefer the most?
            (i) Pizza Hut               (Ii) Dominos                (Iii) Other

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

Parameter
Excellent
Good
Average
Poor
Quality






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

Parameter
Excellent
Good
Average
Poor
Price






Q7. Specify your satisfaction with Dominos according to the Service?
Parameter
Excellent
Good
Average
Poor
Service






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

Pizza Hut




Domino’s




Pizza Corner




Nirula’s