Pizza hut v/s Dominos Retailing concept

Meaning of Retailing ?Abusinessorpersonthatsellsgoodsto theconsumer, as opposed to awholesalerorsupplier, who normallyselltheir goods to another business

PIZZA HUT Good time start with great Pizza

It entered India(Delhi) in June 1996.

By Jan 2001 Pizza hut had 19 outlet across India

Presently it has 142 outlets in 32 cities in India.

Pizza Hut is the worlds largest pizza chain with over 12,500 restaurants across 91 countries.

Employing more than 300,000 people.

Pizza Hut is one of The Flag Ship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A &Wand Long John Silvers.

MARKETING STRATEGIESPizza Huts marketing strategy is very simple: we want to satisfy our customer by offering them the best.

C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed)

2Fs (Friendly and Familiar)

DOMINOSPIZZA HungryKya?

It entered India (Delhi) in 1996 through a franchise agreement with Vam Bhartia Corp.

Speedy growth (1 outlet in 1996 & 101 outlets in Feb 2001) Emphasis on home delivery

Today Domino's Pizza India has grown into a country wide network of more than 300 stores with a team of over 9,000 people.

According to the India Retail Report 2009, Dominos were the largest Pizza chain in India & the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores.

Domino's believes strongly in the strategy of 'Think local and act regional.

MARKET STRATEGISVision Dominos Pizza vision is to be exceptional people on a mission to be the best pizza delivery company in the world. Objectives Introduce value add meal concept Have a toll free number to call on deliveries GOAL Customer for life Increase no. of customers

MAJOR PLAYERS

STRATEGIC ANALYSIS (STPD)

SEGMENTATION

TARGETING

POSITIONING

DIFFRENTIATION

Pizza hut - segmentation Geographic : they targeted countries where there were no pizza hut outlets. Initially opened in class i cities and then have now moved to metros

Demographic: 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 middleclass and the high class income families.Psychographic: they targeted a1, a2,b1 socio-economic classes.

Behavioural: 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.

Geographic Region dominos outlets in different countries is a way of segmenting their marketaccording to region and finding out potential markets.City they also segment the cities as class i, class ii, metros, small towns.Demographicage under 13years, 13 to 21 years21 to 35 years, 35 to 50 years, 50+ years.family income lower middle class, middle class, upper middle class, high class

DOMINOS SEGMENTATION

PIZZA HUT & DOMIONS - TARGETINGPIZZA HUTYounger generation, middle and high income groupTarget customers by:Dine in.Take away.DOMINOSGeographicDemographicPsychographicBehavioral

POSITIONINGDominos Uniqueness & Taste.Varieties

Pizza hut pizza hut has done their positioning in the target market by keeping in view two basic factors: Quality Frequency

Pizza hut & dominos differentiationPIZZA HUTConcentrates on in-house dinningMass customizationStyleService differentiations: order ease, delivery.DOMINOSProduct innovationStringent service standards.Home delivery

Similar pizzas but different toppings !!!Franchisee rightsJubilant has exclusive rights for the whole country.

Marketing strategy Jubilant decides and gets it approved by Dominos International

Operates through at least eight franchisees in India including Devyani and Dodsal.

Yum! provides significant support and Devyani executes it.

Similar pizzas but different toppings!!Interactions with Franchisor Dominos International team visits once every 3-6 months to evaluate business performance and strategy. Vendor selection Jubilant decides and gets it approved by Dominos InternationalYum! Brands has a separate office in India to manage marketing, real estate and other operational parts of the business in India.

Yum! decides and Devyani executes it.

Franchise Chain

Similar pizzas but different toppings!!Dough preparations Prepared dough distributed from commissaries to stores under controlled temperatures third party network of cold storage vehicles are used

Beverages Dominos International has signed renewable agreements with Coca Cola for most countries around the world

Pizza Hut Dough is prepared fresh in the store kitchens

Yum! Brands business was owned by Pepsi Co until 1997 and now has . a lifetime contract with Pepsi Co.

Similar pizzas but different toppings!!Real estate support for store openings

Jubilants in-house team manages and executes the entire process.

Yum! Brands real estate team carries out the process on behalf of their franchisees

Serving the nationDominos by far has the highest penetration in the Indian market.

Pizza Hut is currently limited to Metro & Tier I cities, but slowly targeting the Tier II cities.

GOALCUSTOMER FOR LIFE

L.ListenE.EmpathizeAApologizeDDo what the customer needSStand by your promise

P. Passion E. ExecutionA.AccountableR. RecognizeL Listen

Dominos-Delivering pizza, Encashing HappinessWe believe the JFW to command pricing strength (i.e. is a price leader) due to:

Association with well-known international brand: Dominos Pizza Inc has been operational from last 60 years with total 9400 operational stores (as of 31st Sept 11) worldwide and has a presence in more than 70 international market.

Thus, Dominos is a well-recognised international brand and this helps JFW to command premium and thereby pricing strength over other players in this segment.

Dominos-Delivering pizza, Encashing HappinessDelivered in 30 minutes:

JFW is the market leader in organized pizza home delivery segment in India with over 70% market share.

The service proposition created by Dominos is very difficult to replicate by the small, unorganised players as well as the organised players.

We believe the market leadership along with the quick service proposition enables the company to be a price leader.

Dominos-Delivering pizza, Encashing Happiness!!Deep pockets for advertising and promotion:

The well-established brand Dominos will always have a high recall factor as compared to other small players due to ability of the company to spend heavily on advertising and promotion expense.

Having invested into the brand over the last few years, and delivered on the product quality and the timelines, it has build the right perception of khusyion ki home delivery;

Dominos-Delivering pizza, Encashing HappinessBusiness model similar to FMCG player

Introduced products in all the price range starting from Rs 39 to Rs 455 on the upper side, so as to cater to all strata

Has introduced add-ons like to Pastas, Nutty Choco- lava cake and Butterscotch Mousse so as to increase the product range, to counter competition

Has recently introduced 3-Cheese Pizza and Cheese Burst Pizza to cater to high end taste conscious consumers

Pizza hut Warming up the ovenThe most recent offering by Pizza Hut is an extended menu of 15 localized pizzas derived from regional tastes like Sev puri, Chettinadu paneer, Chicken achari, Nimbu mirchi, to name a few

The new offerings, marketed heavily through a 360 degree campaign celebrates the Kansas based chains 15 year anniversary in India.

It also reflects the brands aggression in a market where several new brands have entered the fray.

Pizza hut Warming up the ovenPizza Hut wants to focus on more than just pizzas.

It has offerings like pasta, appetizers and a larger collection of beverages. This is part of its strategy to make the transition from a quick service restaurant (QSR) to a casual dining.

In terms of reach, Pizza Hut is targeting a store count of 250 (existing 171) by 2015

As Pizza Hut expands, a key part of its strategy will be to maintain the in-store dining experience

Fine dining V/S Couch ComfortDominos is the market leader in Home Delivery

Dominos stores have very limited/cramped seating

No possibility of parties/events at outletPizza Hut is playing catch up in the Home of Pizzas Delivery game through its Pizza Hut Delivery Stores (PHD)

Pizza Hut specializes in fine dinning restaurants , with good ambience, waiter services

Fine dining V/S Couch Comfort

Fine dining V/S Couch Comfort

Looking aheadSignificant scope of expansion in new cities and within the existing cities JFW may consider cities with population of at least 3 lakhs and above, so that the city has immediate capacity for 1 store and will have further potential of 1-2 stores over the next 2-4 yrs. This logic is keeping in mind the economic viability, scale and cost of logistic infrastructure to service the store from the nearest commissary.Number of cities with population of 3 lakhs and above is 147, indicating that in short to medium term the company can target additional 47 (potential 147 existing 100) new cities for opening of Dominos stores.

Looking aheadPizza Hut plans to open 25 more outlets that serve wine and beer along with pizzas.

The company currently operates 10 such stores in Delhi and Bengaluru.

Pizza Hut has seen a growth of nearly 20 to 25 per cent in this format.

The expansion will also help the brand in diversifying their offering and adding more value-added services.

Looking aheadThe company, also plans to take its casual dining restaurant presence to 250 stores by 2015. Currently, the pizza chain has 131 stores spread in 34 cities.

The expansion plans is part of the global expansion strategy of Yum! Brands

ConclusionPizza Hut is preferred over dominos in terms of

Variety of Pizzas Good ambience Services offered Quality of pizzas Location of the Outlet Waiting time in the outlet .Dominos is being preferred over pizza-hut in terms of

Door step services .Low pricing.

***Three Pillars of the Plan to WinBrand direction Freedom within a framework Measurable milestones More customers More often More brand loyalty More profitable best ingredients, strict standards, and proven preparation procedures

value is defined as the total experience you receive for what you pay, and at McDonalds, the total experience includes great food, friendly folks, a clean environment, as well as quick and accurate service. *