This document provides a comparative analysis of Pizza Hut and Domino's Pizza in India. It summarizes the history, key facts and figures, franchise requirements, training programs, financing options, and obligations of both companies. It also analyzes their marketing strategies over time, positioning, similarities and differences. A SWOT analysis is given for each brand. The document concludes with proposals for new healthy restaurant concepts focusing on fresh, organic ingredients with customized healthy options and promotions to target health-conscious customers.

1. A Comparative
Study on Pizza Hut
and Domino’s
A Project on
Consumer
Behavior
ByRajalaxmi Prakash
Roll-011
PGDM 2012-14
IIBM Patna

2. History
 Brothers Dan and Frank Carney founded Pizza
Hut in 1958 after a friend suggested a pizza
parlor would make a successful business.
 The siblings borrowed a mere $600 from
their mother, joined with partner John
Bender, and purchased used pizza making
equipment to open their first restaurant.
 One year after its founding, Pizza Hut’s first
franchise opened in Topeka, Kansas.

3. History
 Ironically, another set of siblings, Tom
and James Monaghan, founded
Domino’s. They purchased a pizza shop,
DomiNick’s, with a $75 down payment
and a $500 loan.
 Not long after, James exchanged his
half of the business to Tom for a
Volkswagen Beetle.
 In 1965, the business was renamed
Domino’s and the first franchise
opened in 1967.

4. Facts and Figures
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Founded: Wichita, KS
Year Founded: 1958
CEO: David C. Novak
HQ: Plano, TX
Number of U.S. Locations: 5,510
Annual Sales: $11.2B
Facebook Likes: 10,355,666

5. Facts and Figures
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Founded: Ypsilanti, MI
Year Founded: 1960
CEO: J. Patrick Doyle
HQ: Ann Arbor Township, MI
Number of U.S. Locations: 4,513
Annual Sales: $6.9B
Facebook Likes: 8,229,670

6. Important Figures
 The minimum financial requirement to open
a
 Pizza Hut is $700,000 in net worth and a
minimum of $350,000 in liquid assets.
 The franchise fee is $25,000 for all
franchisees. It does not offer a minority or
veteran discount on the franchise fee, but
it does offer a minority lending assistance
program which guarantees 25 percent of
the principal of the franchise business loan
up to $3,000,000.
 The royalty fee is 6 percent and its

7. Important Figures
 Domino’s does not have a minimal financial
requirement.
 Its franchise fee is $25,000 for “external”
franchisees (those who have not worked as
a General Manager with Domino’s) and up to
a $25,000 for “internal” franchisees (those
who have worked as a General Manager).
 It offers franchise fee discounts to
qualifying internal minorities and veterans.
 The royalty fee is 5.5 percent and its
advertising fee is 4 percent of the store’s
weekly royalty sales.

8. Training
 Pizza Hut franchisees must complete an 810
 week training program.
 The training takes place at a certified
training restaurant located in Dallas, TX.
 Pizza Hut covers the cost of the training,
but the franchisee is responsible for travel
and lodging expenses.

9. Training
 External Domino’s Pizza franchisees must
complete a comprehensive five day
franchise development program that covers
store operations, finance, marketing, and
human resource issues.
 They are also required to complete a four
day Pizza Prep School.

10. Financing Options
 Although Pizza Hut does not provide
financing, it offers franchisees a list of
financial institutions that may be
interested in lending to Pizza Hut
franchisees.
 Pizza Hut is listed on the Small Business
Administration’s Finance Registry should
the franchisee want to apply for a SBA
loan.

11. Financing Options
 Just like Pizza Hut, Domino’s stays away
from offering direct or indirect financing to
franchisees and it is listed on the Small
Business Administration’s Finance Registry.
 Domino’s also participates in the
International Franchise Association VetFran
program, which helps veterans obtain special
finance rates and options.

12. Obligations/Restrictions
 Pizza Hut recommends, but does not
require,
the franchisee be involved in daily
operations.
 However each restaurant must be directly
supervised by a manager that has
successfully completed the Pizza Hut
training program.

13. Obligations/Restrictions
 Unlike Pizza Hut, Domino’s does require
that the restaurant be under the
management of the franchisee or a
controlling person who owns 51 percent or
more of the franchise.
 The franchisee (or controlling person) must
be dedicated to management of the store
on a full time basis.

14. Introduction
 It entered India in June 1996.
 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 300,00 people.

15. Introduction
 It entered India in 1996 through a
franchise agreement with VamBhartia Corp.
 It had quite a speedy growth (1 outlet in
1996 and 101 in 2001).
 Emphasis on home delivery
 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.”

16. Success Factors
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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.

17. Success Factors
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Door step services.
Low pricing
Customer satisfaction
Great offers

18. Similarities
 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

19. Differences (Late 1990s –
early 2000s)
OTHERS
32%
DOMINO'
S
22%
MARKET SHARE 1999
OTHERS
12%
PIZZA
HUT
46%
DOMINO
'S
70%
MARKET SHARE 2000
PIZZA
HUT
18%

20. SWOT Analysis
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Strength
Strong brand image
Unmatchable quality and variety
Hygiene
Excellent quality
Customer satisfaction

21. SWOT Analysis
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Strength
More outlets even in smaller towns.
Less than 30 minutes home delivery.
Low price
Excellent offers
Customer satisfaction
Quick service at outlets

22. SWOT Analysis
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Weakness
Inadequate advertisements.
Inadequacy of outlets.
High prices
Lack of parking facilities at outlets.

23. SWOT Analysis
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Weakness
Lack of variety
Outlets lack space
Ambience not up to mark
No special option for birthday parties and
corporate lunches.

24. SWOT Analysis
 Opportunity
• With growing fast food market- scope for
expansion.
• Introduce more offers.

25. SWOT Analysis
 Opportunity
• With growing fast food industry- scope for
expansion.
• Introduce more variety
• Bigger outlets
• Introduce take away counters.

26. SWOT Analysis
 Threat
• No takeaway counters for pizzas.
• Low price points of competitors.

27. SWOT Analysis
 Threat
• Better quality and variety of competitors.
• No take away counters for pizzas

28. USP
 Dining Experience

29. USP
 30-minute Home Delivery Frame

30. Marketing Mix
 Product
• Recipe redefining as per the Indian taste.
• Following Dominos in localization.
• Opened 100% vegetarian restaurant.
• Customization based on: Religion – Jain
 City specific – Hyderabad (Halal meat)

31. Marketing Mix
 Product
• High Localization; even based on different
regions.
• Trendsetter in localization.

32. Marketing Mix
 Price
• Initially high price; as Pizza Hut offer
“Comeback Value to our customer” because
of its USP – Dining Experience.

33. Marketing Mix
 Price
• Initially high price; as key ingredients
sourced from Australia and Spain.
• Competition with Pizza Hut resulted in
Price cuts, discounts.

34. Marketing Mix
 Place
• Not much focused on supply chain; rather
focused on “dining Experience”

35. Marketing Mix
 Place
• Most robust and efficient Supply Chain –
resulted into reduce costs.
• 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.

36. Marketing Mix
 Promotion
• Campaigns like Pan in your Name
• Innovative Menu – Pizza Pooch menu and
Pizza Pooch Birthday Package
• One Rupee Pan deal
• Barah nahin to Tera scheme

37. Marketing Mix
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Promotion
Introduced Pizza mania
(Large Pizza – Rs.129/-)
Discount coupons
Tie-up with Discovery Channel – Co branding
Direct Mailing and Pizza Training Classes

38. Marketing Mix (Current
Scenario)
 Product
• Casual dining experience as well as fast
delivery (PHD & Restaurants)
• Also offers a wide variety of
pasta, salads, soups, desserts, beverages, e
tc.
• Less than 50% of sales is from pizzas

39. Marketing Mix (Current
Scenario)
 Product
• Pizza with promise of fast delivery
• Offers mainly Pizza along with pasta, cakes
and few other side dishes
• Mainly focused on pizza

40. Marketing Mix (Current
Scenario)
 Price
• Starts from lower end and goes up to an
upper end
• Caters to many price and taste segments
• Lowest offering is at Rs. 44

41. Marketing Mix (Current
Scenario)
 Price
• Concentrates mostly on the lower to middle
band
• Caters mainly to price sensitive segment.
• Lowest Offering is at Rs. 39

42. Marketing Mix (Current
Scenario)
 Place
• 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

43. Marketing Mix (Current
Scenario)
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Place
500 stores across 110 cities
Conveniently located for fast delivery
Encourages online ordering

44. Marketing Mix (Current
Scenario)
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Promotion
Coupons
Bundling
Offers
Encourages online ordering

45. Marketing Mix (Current
Scenario)
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Promotion
Coupons
Bundling
Offers
Encourages online ordering

46. Positioning
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Conversation
Memories
Laughter
Togetherness
Enhanced dine-in concept

47. Positioning
Great tasting Pizzas and sides
Superior quality
Exceptional guest care
Value for money offerings
A home delivery specialist capable of delivering
pizzas within 30 minutes or else FREE
 Brand Tag Line Hungry Kya?
 2008 - “Khushiyon Ki Home Delivery” – A reflection
of the role Domino’s plays in the lives of the
consumers
 2012 - “Ye Hai Rishton Ka Time” – To take the
engagement with the consumers to the next level
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48. My Innovation
A Healthy Restaurant

49. Santé Goyt
Health + Taste

50. Segmentation
GeographicDemographicAgeGenderPsychographic
AIO
Activities – working professionals
Interests – Eating out with family, grabbing a quick
meal before work hours or in the lunch time
 Opinions – Broad-minded people
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51. Targeting
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People more conscious for their health
Mothers of young children
Vegetarian people
Also for infants and toddlers
Special emphasis on babies, adolescent
girls, pregnant women, senior people, people
suffering from certain chronic diseases like
diabetes, heart problems, etc.

52. Positioning
 Healthy but tasty food
 Fresh ingredients
 Organic ingredients

53. Marketing Mix
Product
Fresh ingredients
Organic ingredients
Hormone- and antibiotic-free
chicken, mutton, fish, shrimp, and organic
tofu
• Whole-grain bread, fresh sandwiches and
hearty, healthy soups and salads
• Baby food such as
milk, porridge, cereal, etc.
• Own greenhouse space for growing
vegetables and orchards for fruits
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54. Marketing Mix
 Product
• Nutritional information right on the back of
its tray liners
• Customized recipes
• Ultra-healthy sandwiches
• Low-cal soups
• Low-fat milk or fruit juice instead of soda
• Ambience - Funky but serene, Artful
• Separate kitchens for vegetarian and nonvegetarian cuisine
• Play shop for kids

55. Marketing Mix
 Price
• Ranging from Rs 50 to Rs 1500
• Regular sandwiches and eatables are lowpriced
• High prices for exotic cuisine, and recipes
for the extra-health conscious lot
• High prices are justified because of the
usage of organic and fresh ingredients and
on account of the genuine care, concern and
that extra mile covered for individual
customers.

56. Marketing Mix
 Place
• Introductory outlets in the metro cities
• Gradually, move on to the tier I and tier II
cities
• 2-3 outlets in metros and tier I cities
• 1-2 outlets in tier II cities
• Take home facility
• Home delivery facility
• Online order and delivery

57. Marketing Mix
Promotion
Reduced prices on combos
Discount coupons
Ads on TV, radio, social networking sites
Hoardings, billboards
Newspapers, pamphlets
Schemes like Happy Hours for mock tails
Discounts for the price-conscious lot on
Wed
• Free snackers, mock tails, juices, etc. in the
campaigns
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58. A Glimpse into the Menu
Card
 Sambar dal
• A solid stew made with chickpeas, legumes, and
a variety of spices.
• One serving includes approximately 50
calories, 2.6gms carbohydrates, 15.0gms
protein, and 1.8gms fat.
 Tandoori chicken
• Marinated in yogurt and seasoned in tandoori
masala, and a combination of various spices.
• One entire leg piece includes approximately
260 calories, 13.0gms fat, 5.0gms
carbohydrates and 30.5gms protein.

59. A Glimpse into the Menu
Card
 Rajma
• A North Indian dish made of red kidney beans in
thick gravy with lots of spices and usually served
with rice and roti.
• One serving of 114gms cup consists of
approximately 120 calories and 5gms proteins.
 Hara bhara kebab
• A vegetarian crispy kebab, a recipe full of aromatic
spices, healthy ingredients and an marvelous taste.
• Per serving includes approximately 73 calories and
2gms protein.

60. A Glimpse into the Menu
Card
 Arhar dal
• A dish made with beans. The nutritional
content of one serving is approximately 53
calories, 1.2gms fat, 8.0gms carbs, and
2.8gms protein.
 Bhindi ki sabji
• Tastes great with hot chapattis or parathas
and there you've got a terrific vegetarian
meal.
• Servings of 50gms consists of
approximately 80 calories and 5gms protein.

61. A Glimpse into the Menu
Card
 Sol kadhi
• A pink-colored appetizer drink from made
from the Kokum fruit and Coconut Milk.
• Also good for your stomach after a Hot and
Spicy meal. One glass consists of 138
calories.
 Chickpea and spinach curry
• Lots of fresh spinach brings the green color
to this chickpea dish, and curry livens up
the flavor.
• Full of fiber. Per serving consist of

62. A Glimpse into the Menu
Card
 Lobhia
• A popular north-Indian dish, where the soaked
and cooked black-eyed beans are boiled in
tangy tomato
gravy, with the right blend of spices.
• One serving of medium bowl consists of
approximately 198 calories.
 Palak-da-Saag
• A very famous and healthy Punjabi recipe
usually served with roti or naan.
• Per servings includes approximately126.2
calories and 6.3gms proteins.

63. A Glimpse into the Menu
Card
 Daliya
• A very light and healthy option for
breakfast.
• An excellent source of fiber that helps to
maintain healthy digestive system.
• Whole wheat daliya consist of
approximately 85 calories per 170gms
servings.
 Aloo palak
• Stuffed with mashed potatoes, mixed with
finely chopped spinach or any leafy green
vegetables

64. A Glimpse into the Menu
Card
 Moong bhaji
• Sprouted moong bhaji is a quick, easy and
healthy dish. The protein rich sprout is very
health-friendly.
• Per serving of moong bhaji includes
approximately 125 calories and 4gms fats
 Baigan bharta
• A North Indian specialty of roasted
brinjals, skinned and made into a simple and
exotic preparation.
• Serving size of 100gms consists of
approximately 102 calories and 5gms fat

65. A Glimpse into the Menu
Card
 Red pumpkin bhaji
• Tastes so good & is excellent with soft
chapattis, phulkas or with any Indian bread.
It goes well with rice too.
• One serving includes approximately 151
calories
 Kobi chi bhaji
• A very famous dish in Maharashtrian
meals, and can be cooked in a variety of
ways by adding tomato or green peas.
• One serving consists of approximately 65
calories and 2.2gms protein

66. A Glimpse into the Menu
Card
 Patrani machhi
• Masala coated fish steamed in banana
leaves.
• One serving consists of approximately
290.3 calories and 13.6gms total fat
 Chicken dhansak
• This delicious and popular Parsi dish is made
with chicken. Dhansak is traditionally
served with brown rice and kachumbar
salad.
• Per serving includes approximately 505

67. A Glimpse into the Menu
Card
 Raita
• A simple preparation made by adding
fruits, vegetables or any other thing to
beaten curd.
• One serving includes approximately 60
calories
 Buttermilk
• 100 calories and 2grams per cup

68. SWOT Analysis
 Strength
• Healthy food

69. SWOT Analysis
 Weakness
• High-priced menu
• Narrow target

70. SWOT Analysis
 Opportunity
• Untapped market
• Growing percentage of health-conscious
people

71. SWOT Analysis
 Threat
• Low-priced restaurants
• Other established fast-food chains

72. Learning
 Through the tagline “Health + Taste” and
the brand logo

73. Personality
 The people with following personalities will
be the focus:• People with busy lives
• Outgoing people
• Health-conscious people
• People willing to try new things

74. Attitude Formation
 A positive attitude formation towards the
restaurant can be done by: Consistently showing the ill effects of junk
food, high calorie diet, etc. in the long run
through media and personalized hand-outs
 Justifying the high priced menu in
accordance with the fresh and expensive
ingredients and special treatment to
customers especially people with certain
health issues or people with babies

75. Motivation
 A campaign to spread
awareness, contests, etc.
 Celebrity endorsements
 Play shop for kids along with staff to look
after

76. Perception
 There is a negative perception towards the
food from restaurants and eateries. It’s
believed that they cannot be healthy as
improper and unhealthy cooking
oil, meat, vegetables and other ingredients are
used (which is true more often than not).
 This perception need to be changed.
 It can be done by effective promotional
campaigns, accurate nutritional and hygienic
information about the food and by giving
customers a visit to the kitchen and storage
areas.