• 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.
• 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.
• 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.
• 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?
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
• Pizza Base
prepared
• Cheese
blend
applied
Dough
Table
• Seasoning
• Topping
Makeline
• 470
Fahrenheit
• Capacity of
5 pizzas at
a time
Oven
• 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
• 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.
• 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.
• 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’…
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
DOMINO’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.
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.
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 – Jain
City 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 coupons
Tie-up with Discovery Channel –
Co branding
Direct Mailing and Pizza Training
Classes
Campaign like – Pan in
your Name
Innovative Menu – Pizza
Pooch menu and Pizza
Pooch Birthday Package
One Rupee Pan deal
Barah 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”
Dominos 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
250,000 PIZZAS BEING DELIVERED EVERYDAY
THIS NUMBER IS EXPECTED TO DOUBLE IN NEXT
3-4 YEARS
INDIANS SPEND 20% ON EATING OUT
• 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.