This project is the culmination of a study into the gamut of various Service
carried on by Pizza Hut and Dominos This project would just not have been
complete without the valuable contributions from various people whom we
have interacted within the course of its completion.
We present our heartfelt gratitude towards respected Prof. Hasan for
giving us an opportunity to explore a new aspect of the industry.
We would like to thank the management and non-management staff of
Pizza Hut and Dominos without whose cooperation wouldn’t have taken
We wish to thank all those people who have lent us a helping hand in
finishing this project.
Indian Pizza Market
Pizzas account for 5% of the quick service sector, but the market
is projected to grow to 40% over the next five years.
Branded pizza market stands at about Rs. 275 to 325 crore. The
delivery segment is pegged at Rs. 180 crore which is growing at
1. Direct Competitors
Competitors include Domino’s,
Smokin’ Joes, Pizza
2. Indirect Competitors
Direct Indirect include Mc Donald’s,
Subways, coffee chains,
Pizza Hut is one of the flagship brands of Yum! Brands, Inc. Pizza
Hut is the world’s largest pizza chain with over 12,500 restaurants
across 91 countries.
Yum! Brands Inc., based in Louisville-Kentucky, is the world’s
largest restaurant company in with nearly 34,000 restaurants in more
than 100 countries. Four of the company's restaurant brands – KFC,
Pizza Hut, Taco Bell and Long John Silver’s are the global leaders
of the chicken, pizza, Mexican-style food & quick-service seafood
An International Brand with an Indian Heart, Pizza Hut made its
foray into India with a dine-in restaurant in Bangalore in June 1996.
The company found the going tough initially. However, things eased
out when Pizza Hut, similar to other global fast food restaurants
started Indianising the menu. Tricon provides the marketing support
& supply chain management.
In India, Pizza Hut has 137 outlets across 36 cities in India,
including Delhi, Mumbai, Bangalore, Chennai, Ahmedabad,
Hyderabad, Pune, Chandigarh, Agra, Surat, Baroda, Jaipur, Kolkata,
Mathura, Amritsar, Cochin, Ludhiana, Jalandhar, Coimbatore,
Meerut, Lucknow, Pondicherry, Bhubaneshwar, Vishakapatnam and
1. They have a 45% market share in the total market, i.e.
delivery plus dining plus takeaway.
2. They have been seeing over 40% growth year-on-year.
3. They have 26% of its restaurants & over 30% of the Pan-
India sales in South India.
4. Number of customers on an average on weekdays is 300,
whereas it’s about 400 on weekends.
Description Of The Brand
Pizza Hut is classified as a ‘Goods + Service’ offering to the
consumers. The core product is food, which is tangible. However
there are a lot of services attached to this product, which is why it
falls in this particular category. The consumer looks for
‘Experience Qualities’. The marketing implication for Pizza Hut
therefore is that in addition to taking care of the ‘dinning
qualities’ in the core product, they also need to make the
‘experience’ as good as possible.
Meeting Customer requirement
1. Variety in Menu: Pizza Hut offers more than just pizzas to
its consumers. It offers soups, beverages, appetizers,
salads, pastas & desserts both in the veg. and non-veg.
2. Pizza Hut Outlets: Pizza Hut has three types of outlets to
serve its consumers viz. dine-in, carryout and delivery
outlets spread across the country. Thus it has a number of
pizza restaurant chains in India that offers "The Best Pizzas
under One Roof" to its consumers.
3. Local Specialty Food: Pizza Hut in India integrates pizzas
into local contexts and palates while maintaining its
international standards of quality and innovation. E.g. Masala
Pizza and Tandoori pizza with Indian toppings and special
4. Personalized Toppings: Pizza Hut offers choices to its
consumers to select their own toppings that suit their tastes
from wide range of toppings in veg. & non-veg. category.
6. The third level is the Augmented Product. With further high
expectations of the consumers & intense competition, the
marketer starts offering more & more intangible features to
the consumer. Thus, service will become the final
differentiator with increased competition
7. Pizza Hut adds the following services in the augmented
product for its consumers:
8. Home Delivery: Pizza Hut is just a phone call away. A
consumer has the choice of ordering & enjoying the delicious
pizza cuisine at home.
9. Pooch Zone: Pizza Hut’s website has a link which is called
the ‘Pooch Zone’ that has a variety of games, movies, and
other exciting links especially for kids.
10. Special Birthday Party Arrangements: Pizza Hut arranges
birthday bashes for kids with beautifully decorated venue,
specially trained host/hostess, food packages, games, etc.
11. Good Ambience: Pizza Hut offers more than any fast food
restaurant by providing a lovely ambience to dine with your
near and dear ones.
12. Pizza Hut Locater: A consumer can locate any Pizza Hut
restaurant by visiting their website. The locater provides
information on the various types of cuisine (veg./non-veg.)
available at the particular outlet. It also mentions the address
and the phone number of the particular outlet.
Physical Evidence Process People Public Relations
Pizza Hut & film star
Pizza Hut uses
Service Marketing Mixand
The pizza-making They offer training
various process takes programs Madhavan reached
elements to communicate about 20 minutes emphasize on out to special children
and support the role of its and customers can coaching. One of in Chennai by
service to the consumers. expect home their initiatives announcing a six-
Customers rate the service delivery within 45 include Quality month initiative for
based on the following minutes of placing Control Workshops the deprived
factors: the order. with expert chefs children by inviting
all its customers to
Pizza Hut pizzas are contribute a sum of
The Logo of pizza Hut is Pizza Hut defines
delivered in special Rs. 5, which will be
ranked no.2 in the most the skills,
heated pouches to added to their bills,
recognized brand. The knowledge and
retain temperature for the cause of these
roof of Pizza Hut talks training required for
and freshness. children. Similar
about providing a “Great each position and
Dining Experience”. In cases where the this information is campaigns were
traffic situation is communicated to followed in the
Personnel wearing Pizza bad or each Team Member eastern part of the
Hut uniforms in the unprecedented, through specific and country with the help
restaurant. customers are thorough Job of top film stars and
informed over the Maps. models.
All delivery boys wear phone that the
They provide An event for
exciting new rider delivery could be
annual housewives who had
uniforms with the delayed.
performance to send in their
Freshizza logo to create
appraisals to let recipes for their best
visibility on roads and on In the restaurant, the
Team Members pizzas. Based on this
ground awareness. customer rings the
know exactly what pizza Hut could
bell to signify that
the expectations are introduce new
The menu card, they are satisfied
and what varieties. The winner
ambience, signboards with the pizzas and
opportunities exist received a holiday
& billboards and the service.
for improving. package along with
delivery scooters of
Pizza Hut discount
Pizza Hut also make the The staff members
It has events like the coupons
brand familiar. also sing and dance
for customers. They ‘Employee of the
month’ award to Pizza Hut launched its
dance to disco in
reward its internal Pizza Pooch
customers. Christmas Blast
program, a 16-day
event aimed at
attracting teens and
Pizza hut understands that the Indian consumer is value conscious,
and not just price conscious. Pizza hut’s value proposition talks
about its international heritage, its pizza expertise and world
class standards of quality and taste along with its ambience.
Premium High Value Super Value H
Strategy Strategy Strategy
Over-charging Medium Value Good Value M
Qualit Strategy Strategy Strategy
Rip-off Strategy False Economy Economy L
H M L
• Pizzas were priced at a premium in the introduction stage.
However with competition from Domino’s, Pizza Hut
introduced discounts, price cuts and freebies. Pizza Hut
launched Pan Pizzas for as low as Rs.65 and also introduced
the Rs. 50 menu to benchmark its price against the
• Thus Pizza Hut is gradually shifting from a premium
strategy to a high value strategy offering high product
quality within the medium price range.
Customer Relationship Management
1. It optimizes profitability by building long-lasting relationship
with customers through CRM
2. The birthday party packages offered by maintaining the
database of children visiting the outlet contributes almost
around 8 to 10 % to their overall sales turnover. Thus, it has
3. They have been successful in identifying one of the
influencer segments i.e. kids. Thus, they have made best use
of the technology by introducing ‘Pooch Zone’ in their
website through which they directly reach out to them.
4. It not only cares for its external customers but also looks
after its internal customers- employees by running award
programs to recognize outstanding employees and
celebrating their success. Thus, employees take pride in
making and serving perfect pizzas
• Domino’s is the market leader in the delivery market. To
match similar competition and to tap its potential in this
market, Pizza Hut started focusing on the delivery market.
• Pizza Hut introduced a scheme called ‘barah nahin to tera’
(if not served in 12 minutes, it is yours free). The scheme
offered a speed lunch in 12 minutes for Rs.89. One second
over 12 minutes guaranteed that the customer would get it for
• This offer is available only in the dine-in outlets. However, in
the delivery market, they lose out to Dominos because of
their Poor Logistics.
1. In the introduction stage, Pizza Hut used Public relations
over advertising. In the first week of its launch and to build
credibility, Pizza Hut decided to use the print medium by
issuing “free pizza passes” to journalists. Journalists were
taken to the kitchen and a lot was written about Pizza Hut’s
fresh quality pizzas along with its hygiene.
2. Pizza Hut went about distributing pamphlets, which
contained mouth-watering images of pizzas. The pamphlet
also contained information relating to the making of a pizza,
its ingredients, nutritional value, etc.
3. The promotional campaign focused on creating awareness
about the product. The communication was about a girl
choosing pizza over other snacks in its first TVC. Thus,
initially it followed “Informative Advertising Strategy” to
build the primary demand.
4. However, in the growth stage, they seek to establish the
superiority of the brand through specific emphasis on one or
more attributes in the product class. In this stage, the
attributes targeted were price and freshness. This was
conveyed through their TVCs featuring Zayed Khan (Rs. 50
menu) and Malaika Arora (Freshizza).
5. Thus they currently follow ‘Persuasive Advertising
Strategy’ to differentiate itself in intense competitive
6. But the promotional campaign focusing on the Price
aspect has not been effective as customer still perceive
Pizza Hut as an elite outlet
Service Life Cycle
The introduction stage focused on concept awareness.
• Pizza Hut aimed at providing a great dining experience
targeting the high-end consumer following the strategy of
• Pizza Hut launched its first outlet in Bangalore in 1996. The
success of its Bangalore outlet helped Pizza Hut to focus
long term. After a few months, they opened outlets in Delhi,
Mumbai, Kolkatta & Chennai.
• In the growth stage, it realized the need to include delivery
in addition to providing a great dining experience. So it
decided to extend its reach in SEC A & B cities.
• In 2000, number of outlets increased from 5 to 25 in 13
months. Currently it has 98 outlets in 25 cities.
• Realizing the potential of delivery outlets, it increased the no.
of delivery outlets. However, it has a long way to go to beat
the delivery market leader-Dominos.
• It started localizing menus to cater to the Indian palate.
• To further promote its brand among the Indian consumers
Pizza Hut used celebrities for the first time (Zayed Khan &
Malaika Arora). With their target being the youth of the
country, Zayed & Malaika were the ideal choice.
• As the competition intensified Pizza Hut followed the price
cut strategy to increase its target consumers and thus
included consumers from the medium-end segment.
• As Pizza Hut consolidates their base by expanding rapidly
in new towns, it would provide them with a better
bargaining power with the suppliers. This benefit can be
passed on to the consumers by further reducing the prices &
thus tackle the competition effectively.
• Pizzas are still viewed as snacks in India. However changing
the existing eating habits is not impossible. With pressure of
less time among the people & potential to improve
accessibility to Pizza Hut outlets, consumers will be willing
to adapt to this new lifestyle. Pizza Hut can thus widen the
pie by extending their brand as a meal from being just a
• There has been a shift from joint families to nuclear
households. Population of the working women has risen
(13% of women population in the urban area) and now with
both parents working, the disposable income has also
increased. Also to alleviate the feeling of guilt of not being
able to spend more time with their children, weekends have
become important. Thus, Pizza Hut still has an opportunity
to cash on a huge consumer base.
• The accessibility of Pizza Hut is a question mark. It also
lacks in effective supply chain management. Pizza Hut is not
time-bound in the delivery aspect as compared to its
nearest competitor-Domino’s. Domino’s has penetrated the
market better due to its efficient logistics. So, Pizza Hut faces
the threat of letting off its numero uno status to Domino’s.
• Pizza business is projected to grow at the rate of 40% per
year. Recognizing India as a lucrative market, many other
companies are looking at starting their operations here and all
the existing companies are expanding to get a larger market
share. Thus, threat of new entrants like US Pizza and the
existing competitors can increase the bargaining power of
• The Indian consumer is getting health conscious. There has
been a global outcry against Mc Donald’s linking junk food
served by them to the rise of obesity. Pizza Hut may also
face these phenomena in India.
In the mid 1990’s a spate of global fast food chain entered hoping
to capture a part of Indian fast food segment but they found it
difficult to establish themselves. Dominos Pizza Hut Ltd. was
incorporated in March 1995 as the master franchisee for India and
Nepal, of the dominos Pizza International Inc... Of USA.
Moreover, the company holds the master franchisee right for Sri
Lanka and Bangladesh through its wholly owned subsidiary. MR.
Shyam S. Bhartia and Mr. Hari S. Bhartia of the Jubilant
Organosys Group were the promoters of the company.
Since inception, Dominos Pizza Hut Ltd. had proceeded to became
one of the largest and the fastest growing international food chains
in South Africa. The first Dominos Pizza store in India opened in
January 1996 at New Delhi. Today, Dominos Pizza India has
grown into a country wide network around 220 outlets 42 cities
and is the leader in the fast food delivery segment.
Ever since it was established, Dominos 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 the pizza 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, Dominos was the first to start this facility to its customers
and their slogan is also towards customers loyalty, they respect
time responsibility i.e. Dominos delivery in 30 minutes or else
pizza is free of cost.
Dominos Pizza SWOT analysis
• Leading pizza Delivery Company in US with more than 5,000
stores in the US.
• Global franchisee operations – more than 3500 in over 50
• Strong brand equity supported by heavy advertising and
• Supply chain and distribution network
• Slow growing and declining same – store sales
• Weakening bottom line
• Growing presence in emerging markets, particularly in
• Leverages supply chain & distribution system to introduce
• Changing consumer habits towards healthier food choice
• Franchisee operations affected by currency exchange
• Intensive competition from a fragmented number of small
30 minutes guarantee
At one point, Dominos pizza had a guarantee that a customer
would receive their pizza in within 30 minutes of ordering, or
they would receive their pizza free and Dominos still guarantees
delivery within 30 minutes, failing which the customer is given
his order free of cost.
• They do not take the order if the customers are calling
from distance places where it is impossible to deliver the
pizza in 30 minutes
• If suppose the customer is ordering a pizza cost for Rs.
500/- & if they are unable to deliver the pizza within
time, suppose they are late for another 6 to 10 minutes ,
then they give discount of Rs. 300 and provide pizza for
only Rs. 200
• They believe in the service called TSG (Total Service
• From home delivery of home cooked food in South Delhi.
We offer both non- veg and vegetarian home –cooked
food for small get together.
Our costs are very reasonable and the food is hygienic and low fat
Dominos Pizza also takes bulk orders for its corporate customers
as well as for any big gathering. Any order can be placed 2 days in
advance to avoid inconvenience. Payment can be made in cash or
by Cheques in favour of “Dominos Pizza India ltd”. Dominos
involves itself in various community activities like blood donation
campaign, clean up drive etc. We arrange for different competition
like painting, essay, junior pizza making etc. at our store level for
children. We also cater to different college functions/events
depending upon its location.
Housekeeping operations inside the restaurant
For house keeping dominos use UT service, they provide proper
check on cleanliness of the restaurant, maintain cleanliness for
• They makes sure that all fittings are in good working order
• They check that all supplies such as toiletries & minibar
stock have been replenished
• Ensuring that tables & other areas are cleaned & polished
• Make sure that furnishing & fitting including light fittings are
clean & in good condition.
• Ensure the windows are cleaned regularly
• They also told us that in housekeeping is also responsible for
décor, the selection of furnishings & wall covering is very
• Thousands of rupees are spend on décor & these decisions
are not taken lightly
• In housekeeping operations there is flexibility in there
Maintenance housekeeping in the wet areas
Top to bottom, all corners and edging is done on carpeted and on
non-carpeted floors. Every thing is moved to the counter, cleaned
behind it, items cleaned and move back.
Kitchen cabinets are cleaned for fingerprints and food spills that
have occurred recently and can be recovered with wiping a wet or
damp cloth. On an as need basis, the floor is washed by hand
around the edges.
We can do the whole package pulling out a fridge or oven or
wiping them clean and everything in between.
All of our work is 100% guaranteed. If the customers are not
happy with the Dominos cleaning, simply call them within 24
• During summer session their sales increases,
• Numbers of staff is more as compared to winter seasons,
• Total number of staff is around 35-40
• Income per month s around 35 lakhs.
Comparison of Pizza Hut and Domino’s
PIZZA HUT PARAMETERS DOMINOS
Need Understanding, Customer SERVICE Friendly, Individual
Neatness Congenial environment Open Kitchen, lack
,cleanliness, no valet of space
Less affordability by Pricing Given value for
the common man money pizzas
Inability to explain Augmented Attending phone
the offerings, slow calls with patience,
service taking the order with
Service charge is Equipments, Credit Card,
High Customization Customization,
Model of Service Quality Gaps
There are seven major gaps in the service quality concept, which
are shown in Figure:
Gap1: Customers’ expectations versus management
perceptions: as a result of the lack of a marketing research
orientation, inadequate upward communication and too many
layers of management.
Gap2: Management perceptions versus service specifications:
as a result of inadequate commitment to service quality, a
perception of unfeasibility, inadequate task standardization and an
absence of goal setting.
Gap3: Service specifications versus service delivery: as a result
of role ambiguity and conflict, Poor employee-job fit and poor
technology-job fit, inappropriate supervisory control systems, lack
of perceived control and lack of teamwork.
Gap4: Service delivery versus external communication: as a
result of inadequate horizontal communications and propensity to
Gap5: The discrepancy between customer expectations and
their perceptions of the service
Delivered: as a result of the influences exerted from the customer
side and the shortfalls (gaps) on the part of the service provider. In
this case, customer expectations are influenced by the extent of
personal needs, word of mouth recommendation and past service
Gap6: The discrepancy between customer expectations and
employees’ perceptions: as a result of the differences in the
understanding of customer expectations by front-line service
Gap7: The discrepancy between employee’s perceptions and
management perceptions: as a result of the differences in the
understanding of customer expectations between managers and
We can conclude that both Pizza hut and Domino’s are known for
their best services and according to GAP model we can summarize
the whole that Employees behavior is the major factors which
influence the customer perception most about the pizza outlets
while they are followed by environment, parking space and
1. Tie up with Hotel Management Institute
Retail is a booming sector in India. However, looking at the
management education scenario in India, retail management
has not been given its due. As far as retail professionals are
considered, there is a dearth of talent in India. Pizza Hut can
have a tie-up with leading hotel management institutes to
provide a win-win situation for the company as well as the
community. This would be a training ground for all budding
managers of Pizza Hut and the operational staff.
2. No Hidden Cost
In the Indian context, Pizza Hut is still perceived as an
expensive place to dine. This is because of the various
‘hidden costs’ that prevails. When Pizza Hut advertises
pizzas for Rs.50 and Rs.65, it is exclusive of taxes which
later add on to the actual price which forms a significant part.
Pizza Hut should compute and communicate the prices after
including taxes and other service charges.
3. Outsource Real Estate Services
While choosing the location outlet, a lot of real estate factors
have to be taken into consideration. Some of the factors are
real estate prices, electricity, maintenance, water supply,
parking space, sewage and waste-disposal facilities,
conditions of roads, etc. Therefore, they can outsource real
estate services to specialized consultants to increase
accessibility of their outlets. This will help Pizza Hut focus
on their core competency i.e. to provide a “great dining
The popularity of the Pooch Zone is increasing. Pizza Hut
can cash on this popularity by having one of its Pooch Zone
characters as a mascot. The mascot can act as a brand
personality to increase brand awareness and recognition.
5. Different Pizza Shapes
In order to attract the kids, Pizza Hut can introduce pizzas in
the shape of ‘Pooch Zone’ cartoon characters & other cartoon
characters. This concept can also be promoted through kids
channel like Cartoon Network and Hungama with
communication directed at children – one of their main
6. Game Counters
Kids act as a major influencer in choosing the location of a
family outlet. Pizza Hut can introduce game counters in some
selective outlets. Thus, Pizza Hut can combine dining with
Pizza Hut can introduce Wi-Fi technology in selective
outlets. This can provide convenience to customers thus
increasing customer loyalty and sale. Login/password for a
set time can be given to customers. If the person wants more
time, they can place another order and get additional time.
Paying customers get XX minutes of Wi-Fi access before the
Authentication Server cuts them off.
(E.g. Customer placing an order within a range of Rs. 50-
Rs.100, can get 30 min. of net access.)
8. Click to order
Pizza Hut can focus on selling pizzas via their website.
Customers can then select the pizza base & toppings to make
it customized. Customers will be only a click away to get
their required pizzas.
9. Diet Pizza
Indian consumers are becoming health conscious. So Pizza
Hut can promote its offerings on a health platform by
introducing low fat and low calorie pizzas.
It can have helpful communication informing the consumer
that certain items on the menu fulfill x% of an adult’s daily
requirement of various nutrients. Nutritional information can
also be mentioned in their website. The idea that the food at
Pizza Hut isn’t complete junk would be really quite
11. Improve Logistics
When you are hungry you cannot wait. If Pizza Hut can peg
consumer’s expectations at the right time and beat it, chances
are one would be more than happy. Not because the food is
tasty but because the expectations have been met. Thus, they
should work on the logistics by following the principle of
‘distance orbit from a retail outlet’ i.e. to select the location,
decide on the radius within which the outlet will operate
Pizza Hut does not stick to a time-bound delivery. To tackle
this, the store personnel can be trained to work within a fixed
time-frame to prepare the pizza. Before a shop is set up, the
delivery staff can go through a routine ‘test grind’ to be well
accustomed with the location.
Pizza Hut can introduce loyalty programs for its customers in
the form of ‘Pizza Card’ where they can avail of discounts,
freebies, and prizes etc. Customers will be awarded points
based on the frequency of pizzas they order. Once they reach
a set number of points, they will be given free prizes and
other gift accessories. This can be instrumental in building up
13.Alliance with Airlines
For Pizza Hut, sky can be the limit by delivering hot, fresh
pizzas everywhere, anytime. They can have a tie-up with
major airlines. The deal will help Pizza Hut in its expansion
plans by adding to its market penetration.
14.Rent outlets at fuel stations
Pizza Hut can rent outlets at fuel stations at selective
locations for setting up restaurants across the country in a
phased manner. Such drive-in-drive-out outlets can save on
real estate costs and at the same time give the brand greater
visibility without entailing large investments.
15.Variety in menu
Variety in menu by way of fruit juices would be preferred by
the customers as now most consumers do not prefer cola
drinks. This will also add to the promotion of the brand
through the ‘health’ format.
16.Location Based Advertising
LBA envisages sending electronic marketing messages to
consumers located proximately to an outlet. For example,
Pizza Hut can send SMS to all passer-byes in a specific
radius. This SMS serves as a marketing message informing
the customer about the nearest outlet, its menu, discounts,
schemes etc. for any order within limited time. Those who
are closer to the point of sale will be more likely to make use
of this offer and thus allure new customers to their selling
Keeping its ears close to the ground and reinventing and
adapting itself with consumers’ needs, Pizza Hut can emerge
as a leader in the food retail sector