Which one will you ‘Prefer’????

V/S

GROUP MEMBERS…• GEORGE D’SOUZA. • CHARMI DHAROD.• PRATHAMESH NARKAR.• PRAVEEN SANIL.• AKASH TRIPATHI.• DINESH MUDHALIYAR.• PREETI YADAV.

FAST FOOD INDUSTRY IN INDIA• Fast food is one of the world’s largest fast

growing industry types. India’s fast food industry is growing is growing by 40%.

• Because of the availability of raw material for fast food, global chains are flooding into the country.

• The growth in nuclear families, particularly in urban India, exposure to global media and western cuisine has had quite an impact on eating out trends.

SOME MAJOR CONTENDERS IN FAST FOOD

INDUSTRY

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

Today Domino’s Pizza in India has grown into a countrywide network of more than 300 stores with a team of over 9000 people.

Domino’s believes strongly in the strategy of “think local and act regional.”

It entered India in 1996 through a franchise agreement with VamBhartia Corp. Founded by Tom Monaghan at Ypsilanti, Michigan.. It had quite a speedy growth (1 outlet in 1996 and 101 in 2001).Emphasis on home delivery.

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.

• Brand Tag Line Hungry Kya?

DOMINO’S CURRENT

ONLINE PRESENCE

Logistics @ Domino’s Wheat Proccessed @ Jalandhar

DOUGH COMMISSARY

REFRIGERATED TRUCK

RETAIL OUTLET

SUPPLIERS(Toppings & Seasonings)

Distribution @ Domino’s

Dough balls processed from wheat are sent to retail outlets in refrigerated trucks

HUB AND SPOKE MODEL with commissaries as hubs

Frozen food sent at -18 deg Celsius

Production Process @ DOMINO’S

• Pizza Base prepared

• Cheese blend applied

Dough

Table• Seasoning• Topping

Makeline

• 470 Fahrenheit

• Capacity of 5 pizzas at a time

Oven

C h a r a c t e r i s t i c s O f S e r v i c e s @ D o m i n o ’ s …

• Intangibility: It is impossible for the service users to taste, feel, see, smell or possess a service before they buy it.

• Heterogeneity: People based services are susceptible to heterogeneity, or variation in quality.

• Perish ability: Unused service capacity of one time period cannot be stored for use in future time periods.

• Inseparability: The production of a service cannot be separated from its consumption by customers. Services are produced and consumed simultaneously

FUN FACTS OF DOMINO’S…

• 85% of the items on Domino's menu are new since 2008.• There are more than 34 million ways to create a single Domino's pizza.• 30 slices of pepperoni go on a medium pepperoni pizza (40 slices for a large 

peperoni pizza).• Pepperoni is the most popular U.S. pizza topping, followed by mushrooms, sausage, 

ham and green peppers.• Breadsticks were the first national non pizza menu item offered at Domino's, in 

1992.• Domino's World's Fastest Pizza Maker Pali Grewal can make three large pizzas in 

just 39.17 seconds.• STORE & FRANCHISE OWNER FACTS:• Domino's is 95% franchise-owned.• Domino's has about 1,100 independent franchise owners in the U.S.• More than 90% started their careers as drivers or assistant managers.• Domino's delivery experts cover 10 million miles each week in the U.S. alone.

Customer Service

Making improvement through team

work and employee

empowerment

Continuous improvement at

its base

Belief that all meaningful

ideas are good and must be implemented

Everyone is expected to

give suggestions on regular basis

SUCCESS FACTORS:-Door step services. Low pricing Customer. Satisfaction. Great offers.

• It entered India in June 1996.• It was Founded in Wichita Kansas, A city in America

(U.S.A).• Founders of Pizza Hut Dan Carney & Frank Carney.• By January 2001, Pizza Hut had 19 outlets across

India.• Presently it has 142 outlets in 32 cities in India.• Pizza Hut is one of the world’s largest pizza chains

with over 12,500 restaurants across 91 countries.• It employees more than 30,000 people.

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

Repositioning in 2008

SUCCESS FACTORS:

• Offering value food• Moving beyond metros• Developing the local supply chain• Good ambience• Offering more than the international menu• Aggressive marketing and tie-ups with local

and popular brands.

In 2000 it set up a landmark in the race of galactic commercialization by acquiring a space for its logo on the world’s largest proton rocket. Though the space dream wasn’t halted here and on May 21, 2001 Pizza Hut became the first company to deliver pizza in outer space, to the international space station. Even though it took more than a year for the Russian Food scientist and the R & D team of Pizza Hut to create the world’s first ever space- consumable pizza, no compromises were done on customizing the crust and topping, it included a crispy crust, pizza sauce and cheese, topped with salami.

First Pizza to Get a Space Travel   was made by ‘PIZZA HUT’… 

ANALYSIS: STRENGTH DOMINO’S PIZZA• More outlets even in

smaller towns.• Less than 30 mins

home delivery.• Low price• Excellent offers• Customer satisfaction• Quick service at

outlets

PIZZA HUT• Strong brand image• Unmatchable

quality and variety• Hygiene• Excellent quality• Customer

satisfaction

ANALYSIS:WEAKNESSDOMINO’S PIZZA• Lack of variety• Outlets lack space• Ambience not up to

mark• No special option

for birthday parties and corporate lunches.

PIZZA HUT• Inadequate

advertisements.• Inadequacy of

outlets.• High prices• Lack of parking

facilities at outlets.

ANALYSIS:- OPPORTUNITIES. DOMINO’S PIZZA• With growing fast

food industry- scope for expansion.

• Introduce more variety

• Bigger outlets• Introduce take

away counters.

PIZZA HUT• With growing fast

food market- scope for expansion.

• Introduce more offers.

ANALYSIS:- THREATS DOMINO’S PIZZA• Better quality and

variety of competitors.

• No take away counters for pizzas

PIZZA HUT• No takeaway

counters for pizzas.• Low price points of

competitors.

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

schemePlace 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

DIFFERENCES (Late 1990s – early 2000s)

PIZZA HUT 46%

DOMINO'S22%

OTHERS32%

MARKET SHARE 1999 PIZZA

HUT18%

DOMINO'S70%

OTHERS12%

MARKET SHARE 2000

Through Discounted Coupons & Survey they able to Slashed it down the Prices Significantly.. 

Promotion- Dominos

Promotion- Pizza Hut1 2

SUGGESTIONS FOR DOMINOS

VARIETY

AMBIENCE

MARKETINGQUALITY OF CHEESE

BETTER OFFERS

INCREASE IN SITTING CAPACITY

SUGGESTIONS FOR PIZZA HUT

COST

LOCATIONDELIVERY

ADVERTISEMENT

BETTER OFFERS

FUTURE SCOPE250,000 PIZZAS BEING DELIVERED EVERYDAY

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

INDIANS SPEND 20% ON EATING OUT

CONCLUSION…• Better Costumer Service.• Excellent Ambience.• Awesome Taste.• Proper Locality.• Strong Position in the Market with Proper Stability.• Both Pizza hut and Domino’s keeping a Good Pace and 

Strongly     Competing with Each Other From Last 54 years in our Country.• By Satisfying Consumers Demand at Each and Every Minute.