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Price war dominos vs pizza hut

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Price war between dominoes and pizza hut for the Indian fast food market share

Price war between dominoes and pizza hut for the Indian fast food market share


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  • 1. Raj Kumar Singh
  • 2. • 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.
  • 3. • 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
  • 4. PIZZA HUT 46% DOMIN O'S 22% OTHER S 32% MARKET SHARE 1999 PIZZA HUT 18% DOMIN O'S 70% OTHER S 12% MARKET SHARE 2000
  • 5. • 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. (Source- Dominos Site) • Brand Tag Line Hungry Kya?
  • 6. Source: Corporate Communication Dominos and Jubilant Food Works-Sylvia Dutta (Corporate Relation)
  • 7. • Restaurant Dinning Experience Conversation, Memories, Laughter, Togetherness
  • 8. Repositioning in 2008
  • 9. 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
  • 10. 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.
  • 11. 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”
  • 12. 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
  • 13. 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
  • 14. Menu
  • 15. Promotion- Dominos
  • 16. Promotion- Pizza Hut 1 2
  • 17. Schemes for High value customer from their Life time value study
  • 18. Consumer Evolution Self Actualization - Happiness Basic Need - Hunger “Khushiyon ki home delivery” “Hungry Kya”
  • 19. Experimental phase with brands Not demanding in terms of taste & flavours Switched on - offers OLD CONSUMER Experimental phase with taste Extremely demanding in terms of taste & flavours Different brands for different occasions Switch on – occasion vs deal tradeoff NEW CONSUMER MULTIPLE TARGET POINTS  General eating out – friends / casual  General eating out - family  Personal occasions - birthdays etc celebrations  Corporate occasions
  • 20. DIRECT COMPETITION • Nirulas‟ • Papa Jones INDIRECT COMPETITION • Local food stands / shops • McDs • KFC • Food sections in malls • Coffee shops • Other Restaurants (Big Chills etc) Brands moving from „Single segment target‟ towards „Multi segment target‟ US based Papa John's, which entered the country in 2006, has decided on a major shift in strategy - to convert its dine-in outlets to a delivery format, called 'Delcos' since the former was simply not that profitable.
  • 21. 250,000 PIZZAS BEING DELIVERED EVERYDAY THIS NUMBER IS EXPECTED TO DOUBLE IN NEXT 3-4 YEARS INDIANS SPEND 20% ON EATING OUT

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