Marketing Strategies of Pizza Hut & Domino's

MAJOR PROJECT REPORT
ON
MARKETING STRATEGIES OF PIZZA HUT & DOMINO’S
PROJECT REPORT IS SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF
BACHELOR OF BUSINESS ADMINISTRATION (B & I)
SUBMITTED BY:
GURJYOT SINGH
ENROLLMENT NO.- 35190201820
UNDER THE GUIDANCE OF
MS. AMANPREET KAUR
SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT &
INFORMATION TECHNOLOGY
(AFFILIATED TO GGSIP UNIVERSITY DELHI)
(2022-2023)

DECLARATION
I hereby declare that the project work entitled “MARKETING STRATEGIES
OF PIZZA HUT & DOMINO’S” Submitted to the GURU GOBIND SINGH
INDRAPRASTH UNIVERSITY is record of an original work done by me under
the guidance of Ms. Amanpreet Kaur, faculty member, Sri Guru Tegh
Bahadur Institute of Management & Information Technology .
…………………………..
(Signature of the Scholar)
Place : Delhi Name of the Scholar : GURJYOT
Date : Enrollment No.: 35190201820

CERTIFICATE
This is to certify that Gurjyot Singh, 35190201820 BBA (B&I) student
of Sri Guru Tegh Bahadur Institute of Management & Technology has
done project work on under the guidance of Ms. Amanpreet Kaur
………………………….
Signature of Project-in-Charge
Ms. Bipasha Chaudhary
………………………….
Signature of guide
Ms. Amanpreet Kaur
……..…………………..
Signature of the Scholar
Name of scholar: Gurjyot
Enrolment number: 35190201820
Place: Delhi
Date:

ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincere thanks to my
guide and mentor Ms. AMANPREET KAUR for her valuable guidance and the
confidence she instilled in me, that helped in the successful completion of this
project report . Without her help, this project would have been a distant affair, her
thorough understanding of the subject and professional guidance was indeed of
immense help to me.
I am also greatly thankful to the faculty members of our institute who co-operated
with me and gave me their valuable time.
…………………………..
(Signature of the Scholar)
Place : Delhi Name of the Scholar : Gurjyot
Date : Enrollment No.: 35190201820

TABLE OF CONTENT
CONTENT PAGE NO.
CHAPTER .1 1-3
1.INTRODUCTION TO THE INDUSTRY 1-2
1.1 Trends in the fast food industry 2
1.2 The market scenario 3
1.3Market share and major players 3
1.4Major players in fast food 3
CHAPTER 2
4-13
2.Company profile 4
2.1 History of Domino’s 4-5
2.2 Naming 5
2.3Corporate Governance 5-6
2.4 About Domino’s pizza India 6-7
2.5 Swot analysis of Domino’s 8
2.6 History of the company 9-10
2.7 About Pizza hut 11-12
2.8 Swot analysis 13
CHAPTER 3
14-22
3. Marketing strategies 14-22
CHAPTER 4
23-24
4.Comparision pizza hut v/s domino’s 23-24
CHAPTER 5
25-28
5. Research methodology 25
5.1 Objectives of the study 25
5.2 Methodology 25

5.2.1 Sample unit 25
5.2.2 Sample size 26
Sampling methods
Data collection method
26-27
5.3 Limitation 27-28
CHAPTER 6
29-40
6. Data analysis and interpretation 29-40
CHAPTER 7
41
7. Findings 41
CHAPTER 8
42
8. Recommendations 42
CHAPTER 9
43
9. Conclusion 43
10. BIBLIOGRAPHY
44
11.ANNEXURE
45-47

1
CHAPTER-1
INTRODUCTION TO THE INDUSTRY
Fast food is one of the world’s largest growing food types. India’s fast food
industry is growing by 40% .the multinational segment of Indian fast food industry
is up to Rs. 20billion, a figure which is expected to zoom more than Rs.30 billion
by 2010. In last 6years, foreign investment in this sector stood at rs.3600 million
which is about one-fourthof total investment made in this sector. Because of the
availability of raw material for fast food, global chains are flooding into the
country. The percentage share held by food service of total consumer expenditure
on food has increased from a very low base to stand at 3.6% in 2018. Eating at
home remains very much ingrained in Indian culture and changes in eating habits
are very slow moving with barriers to eating out entrenched in certain sectors of
Indian society. The growth in nuclear families, particularly in urban India,
exposure to global media and western cuisine and an increasing number of women
joining the workforce have had an impact on eating out trends.
The various players operating in India are the well established Indian chains like
Nirula’s In addition to these, apparently some of the best known international food
chains are looking at India. Among them are Sbarro, The Burger King, KFC,
Dunkin Donuts, and Subway, etc. are some of them to name. At present all these
players are fighting for a small pie, as fast food is really not a big habit with
Indians, but they see a big potential.
The players are fighting on products, pricing, positioning and trying to convert
their first trials into regular purchase by providing delightful service quality. The
focus is on product quality and standardization on taste. Consistency is the key, as

2
its standardization in fast food as the consumer is short on time and wants to satisfy
his taste buds with a consistent taste experience.
Beyond this each player has its own strategy to expand consumer base.
- Some feel that pricing is not the deciding factor since fast food is not price
sensitive market because it is not a single diet of Indians.
- Some others are competing on positioning which is surprisingly varied, giving the
small size of the market.
- For most, targeting children seems the right strategy.
- Advertising is popular.
However, with competition hooting up most chains are increasing reach as well as
working on establishing a national presence.
Trends in the fast food industry
The industry is estimated to grow at 9-12 per cent, on the basis of an estimated
GDP growth rate of 6-8 per cent, during the Tenth Five year plan period. Value
addition of food is expected to increase from the current 8 per cent to 35 per cent
by the end of 2025. Fruit and vegetable processing, which is currently around 2 per
cent of total production will increase to 10 per cent by 2010 and to 25 per cent by
2025.
The popularity of food and agro products is not surprising when the sector is now
offering a growth of more than 150 per cent in sales. While US brands such as
McDonald’s, Pizza hut and Kentucky Fried Chicken have become household
names, more are on their way.
India among top 10 markets for weekly fast food consumption, an online survey
has found. Most of the countries are from the Asia-pacific region, with the US
being the exemption.

3
The Market Scenario
According to an A C Neilson study of 28 markets across the US, Europe and the
Asia-Pacific, carried out through the internet in interviews with more than 14000
consumers, Asians are the world’s greatest fast food fans.
Market Share And Major Players
The organized pizza market in India is worth Rs.600 Crore. The major players in the market
are pizza hut and DOMINO’S whose market share are around 45% and 35% respectively.
Other players form the rest 20%
Major players in fast food are:
• McDonalds’
• KFC
• Pizza hut
• Domino’s pizza
• Café coffee day
• Barista
• Subway
The main reason behind the success of the multinational chains is their expertise
inproduct development, sourcing practices, quality standards, service levels and
standardized operating procedures in their restaurants, a strength that they have
developed over years of experience around the world.

4
CHAPTER-2
COMPANY PROFILE
DOMINO’S
Domino's Pizza, Inc. branded as Domino's, is an American multinational pizza
restaurant chain founded in 1960. The corporation is headquartered at the
Domino's Farms Office Park in Ann Arbor, Michigan, and incorporated
in Delaware. In February 2018, the chain became the largest pizza seller
worldwide in terms of sales.
History of DOMINO’S
1960s–2010s
In 1960, Tom Monaghan and his brother, James, took over the operation of
DomiNick's , an existing location of a small pizza restaurant chain that had been
owned by Dominick DiVarti, at 507 Cross Street (now 301 West Cross
Street) in Ypsilanti, Michigan, near Eastern Michigan University. The deal was
secured by a $500 down payment, and the brothers borrowed $900 to pay for the
store. The brothers planned to split the work hours evenly, but James did not want
to quit his job as a full-time postman to keep up with the demands of the new
business. Within eight months, James traded his half of the business to Tom for
the Volkswagen Beetle they used for pizza deliveries.
By 1965, Tom Monaghan had purchased two additional pizzerias; he now had a
total of three locations in the same county. Monaghan wanted the stores to share
the same branding, but the original owner forbade him from using the DomiNick's
name. One day, an employee, Jim Kennedy, returned from a pizza delivery and

5
suggested the name "Domino's" Monaghan immediately loved the idea and
officially renamed the business Domino's Pizza, Inc. in 1965.
The company logo originally had three dots, representing the three stores in
1965. Monaghan planned to add a new dot with the addition of every new store,
but this idea quickly faded, as Domino's experienced rapid growth. Domino's Pizza
opened its first franchise location in 1967 and by 1978, the company expanded to
200 stores. In 1975, Domino's faced a lawsuit by Amstar Corporation, the maker
of Domino Sugar, alleging trademark infringement and unfair competition. On
May 2, 1980, the Fifth Circuit Court of Appeals in New Orleans found in favor of
Domino's Pizza.
Naming
In August 2012, Domino's Pizza changed their name to simply Domino's. At the
same time, Domino's introduced a new logo that removed the blue rectangle and
text under the domino in the logo, and changed the formerly all-red domino to be
blue on the side with two dots and red on the side with one dot. This was done
because the company wanted to "expand" menu choices rather than simply rely on
their traditional pizza.
Corporate governance
Domino's management is led by CEO Richard Allison. Previous chief executive
Dave Brandon remains Chairman. Among 11 executive vice presidents are Jeffrey
Lawrence, CFO; Tom Curtis, Team USA; Scott Hinshaw, Franchise Operations
and Development; and Kevin Morris, General Counsel. Domino's operations are
overseen by a board of directors led by Brandon. Other members of the board are
Allison, Andy Ballard, Andrew Balson, Diana Cantor, Richard Federico, James
Goldman, Corie Sue Barry and Patricia Lopez.

6
On July 1, 2018, Allison, the previous president of international business for
Domino's, replaced Doyle as CEO.
ABOUT DOMINO’S PIZZA INDIA
Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company.
The Company was incorporated in 1995 and initiated operations in 1996. The
Company got listed on the Indian bourses in February 2010. Mr. Shyam S. Bhartia,
Mr. Hari S. Bhartia and Jubilant Consumer Pvt. Ltd. (formerly Jubilant Fresh Pvt.
Ltd.) are the Promoters of the Company. The Company & its subsidiary operates
Domino's Pizza brand with the exclusive rights for India, Nepal, Bangladesh and
Sri Lanka. The Company is market leader in the pizza segment with a network of
1,249 Domino’s Pizza restaurants across 276 cities in India (as on June 30, 2019).
The Company is the market leader in the organized pizza market in the pizza home
delivery segment in India, The Company has strengthened its portfolio by entering
into an agreement with Dunkin' Donuts Franchising LLC, for developing the
Dunkin' Donuts brand and operating restaurants in India,
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.

7
Domino's vision is focused on " Exceptional people on a mission to be the best
pizza delivery company in the world!" We are committed to bringing fun,
happiness and convenience to lives of our consumers by delivering delicious pizzas
to their doorstep and our efforts are aimed at fulfilling this commitment towards a
large and ever-growing guest base.
Domino's constantly strives to develop products that suit the tastes of our
consumers and hence delighting them. Domino's believes strongly in the strategy
of 'Think global and act local'. Thus, time and again we have been innovating with
delicious new products such as crusts, toppings and flavours suitable to the taste
buds of Indian Consumers. Further providing value for money and affordable
products to our consumers has been an important part of our efforts. Our initiatives
such as Fun Meal and Pizza Mania have been extremely popular with consumers
looking for an affordable and value for money meal option.
Domino's believes that when a box of pizza is opened, family and friends come
together to share the pizza. Hence, our brand positioning: ‘Yeh Hai RishtonKa
Time'
That's why, all our efforts, whether it is a new innovative and delicious product,
offering consumers value for money deals, great service, countrywide presence or
the promise to deliver in 30 minutes or free are all directed towards making
relationships stronger, warmer and more fun by giving consumers an opportunity
to get together, catch up, reunite and spend more time together.

9
Pizza hut
Pizza Hut is an American restaurant chain and international franchise which was
founded in 1958 in Wichita, Kansas by Dan and Frank Carney. The company is
known for its Italian American cuisine menu, including pizza and pasta, as well as
side dishes and desserts. Pizza Hut has 18,431 restaurants worldwide as of
December 31, 2018, making it the world's largest pizza chain in terms of locations.
It is a subsidiary of Yum! Brands, Inc., one of the world's largest restaurant
companies.
History of the company
Pizza Hut was founded in June 1958 by two Wichita State University students,
brothers Dan and Frank Carney, as a single location in Wichita, Kansas. Six
months later they opened a second outlet and within a year they had six Pizza Hut
restaurants. The brothers began franchising in 1959. The iconic Pizza Hut building
style was designed in 1963 by Chicago architect George Lindstromand was
implemented in 1969.PepsiCo acquired Pizza Hut in November 1977. 20 years
later, Pizza Hut (alongside Taco Bell and Kentucky Fried Chicken) were spun off
by PepsiCo on May 30, 1997, and all three restaurant chains became part of a new
company named Tricon Global Restrauants, Inc. The company assumed the name
of Yum! Brands on May 22, 2002.
Before closing in 2015, the oldest continuously operating Pizza Hut was
in Manhattan, Kansas, in a shopping and tavern district know
as Aggieville near Kansas State University. The first Pizza Hut restaurant east of
the Mississippi River was opened in Athens, Ohio, in 1966 by Lawrence Berberick
and Gary Meyers.

10
Pizza Hut's international presence includes Canada and Mexico in North America,
and India (not in the Pizza Hut division, but in the Yum! India
division), Bangladesh, Pakistan, Japan, Saudi Arabia, the United Arab Emirates,
Qatar, the Philippines, Vietnam, Thailand, Malaysia, Singapore, Indonesia, Brunei
Darussalam, China (now part of Yum! spinoff Yum China), Hong Kong, Taiwan,
South Korea, Myanmar, and Macau in Asia. Pizza Hut was one of the first
American franchises to open in Iraq. In Europe they are in United Kingdom,
Sweden, Norway, Finland, Germany, Spain, Turkey; in Honduras, Costa Rica, El
Salvador, Guatemala, Colombia, Nicaragua, Venezuela, Chile, Brazil, Peru and
Ecuador, in South and Central America; in Ethiopia, South Africa and Tanzania in
Africa; and in Australia, New Zealand in Oceania.
The company announced a rebrand that began on November 19, 2014, in an effort
to increase sales, which had dropped in the previous two years. The menu was
expanded to introduce various items such as crust flavors and 11 new specialty
pizzas. Work uniforms for employees were also refreshed. In 2017, Pizza Hut was
listed by UK-based company Richtopia at number 24 in the list of 200 Most
Influential Brands in the World.
1. On June 25 and 27, 2019, it was reported that Pizza Hut is bringing back their
logo with the "Red Roof", that was used from 1967 until 1999. On August 7, 2019,
Pizza Hut announced its intention to close about 500 of its 7,496 dine-in
restaurants in the US, by the middle of 2021.

11
ABOUT PIZZA HUT
1. WHO WE ARE
There’s nothing cookie-cutter about Pizza Hut. Not our pizzas. Not our people.
And definitely not the way we live life. Around here, we don’t settle for anything
less than food we’re proud to serve. And we don’t just clock in. Not when we can
also become our best, make friends, and have fun while we’re at it. We’re the pizza
company that lives life unboxed.
We’re not for people who want to blend in: pushing boundaries is part of our
heritage. We have more than 16,000 restaurants and 350,000 team members in
more than 100 countries. Whether it’s the original Stuffed Crust or putting a pizza
in outer space, we never stop driving ourselves to deliver hot pizzas, fast every
time – anywhere you want to enjoy it.
2. WHAT WE’RE ABOUT
At Pizza Hut, we don’t just make pizza. We make people happy. Pizza Hut was
built on the belief that pizza night should be special, and we carry that belief into
everything we do. With more than 55 years of experience under our belts, we
understand how to best serve our customers through tried and true service
principles: We create food we’re proud to serve and deliver it fast, with a smile.
3. WHERE WE COME FROM
In 1958, two brothers borrowed $600 from their mom to open a pizza place in
Wichita, Kansas. They named it Pizza Hut, because their sign only had room for

12
eight letters. How profound! Soon, the restaurant grew. Why? The pizza was
awesome. The service felt like home. And the customers were treated like family.
And we’ve been delivering that same food and service ever since.
4. FOR THE LOVE OF PIZZA SINCE 1958
From day one, the Carney brothers could look their customers in the eye and
promise them the finest pizza in town — because they knew the farmers who grew
the ingredients, and they knew those farmers cared about quality. Since then, our
farmers have grown right alongside us, and the ingredients we use are still our
highest priority. No one loves pizza more than Pizza Hut. That’s why pizza is in
our name — and always will be .
5. PIZZA HUT INDIA
In June 1996, Pizza Hut made its foray into India with a restaurant in Bangalore
and was the first international restaurant chain to pioneer this category. The
restaurant brand offers an exciting menu consisting of its signature pizzas,
appetizers, pastas, desserts and beverages. Its trademark dining experience has
been recognized by Brand Equity to make it the ‘Most Trusted Food Service
Brand’ for 11 years in a row. Pizza Hut is the most preferred pizza brand in India,
given its freshest, tastiest and affordable Pizzas.

14
Chapter 3
Marketing Strategies
Pizza Hut
Adapting To Economic Environment
In 1991 under the guidance of a visionary Narasimha Rao and his comrade
Manmohan Singh India marched towards a new era of Liberalization, Privatization
and Globalization. Trade barriers were eased and cultural barriers started
dissolving. It was at this juncture that pizza hut made its infant steps in India, with
its first outlet at Bangalore. Today Bangalore alone has a striking 19 outlets which
remain busy till late night.
Pizza hut has 140 restaurants across 34 cities in India including metros. With its
focus steadily on quality and variety, pizza hut has given a new dimension to
regular pizza eat-outs. However the trifle higher prices may remain a concern for
middle class Indians with lesser purchasing power and disposable income. The
status is steadily improving as more of us embrace fast foods to suit the pace of our
life.
Embracing Technology
Locating stores and placing orders has never been easier for pizza hut locals. With
their virtual store kind website, pizza hut offers customers a wide range of options
to choose from menu and avail new offers. Now orders can also be placed through
mobile phones. High end technologies are used at the cash counters.
Across Socio-Cultural Barriers

15
Food has no language. Good food is appreciated across the globe. Pizza hut has
outlets in a better part of the world. It has taken immense effort to cater to its
customers all over the worlds.
DOMINO’S
Adapting To Economic Environment
DOMINO’S focuses on value to customers and offers pizzas and Italian delicacies
at affordable prices to middle class Indian consumers. DOMINO’S has 274 outlets
in 55 cities across 20 states
Embracing Technology
Locating stores and placing orders has never been easier for pizza hut loyals. With
their virtual store kind website, pizza hut offers customers a wide range of options
to choose from menu and avail new offers. Now orders can also be placed through
mobile phones. High end technologies are used at the cash counters.
Across Socio Cultural Barriers
DOMINO’S outlets are prevalent in every small-big town across the world.
DOMINO’S has taken cues from changing preferences of its customers and put
together a tantalizing menu that attracts foodies around the
globe.

16
Segmentation
PIZZA HUT DOMINO’S
GEOGRAPHIC Region-pizza hut outlets in
different countries is a way of
segmenting their market
according to region and finding
out potential markets
City- they also segment their
cities as class I, class ii, metros
& small towns
Region-pizza hut outlets in different
countries is a way of segmenting their
market according to region and finding
out potential markets
City- they also segment their cities as
class I, class ii, metros & small towns
DEMOGRAPHIC Age-under10years,10to18years
,18to25years,25to40years
& 40+years.
Family income-middle class,
upper middle class & high class
dual income
Age- under 13years , 13to21 years,
21to35years,35to520years,50+years.
family income-lowe middle,
middle class, upper middle class & high
class
PSYCHOGRAPHI
C
Socio-economic class-urban Socio-economic class-
urban(a1,a2,b1,b2,c,d)
BEHAVIOURAL Occasions- birthdays, corporate
lunches, parties
Loyalty status-low, medium
High user status-first
time,regular,non-user
Loyalty status-low,
medium, high
User status-first time,regular,non-user

17
Targeting
Pizza Hut
• In geographic segment they targeted countries where there were no pizza hut
outlets. Initially opened in class i cities and then have now moved to metros.
• In demographic segment 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 middle class and the high class income families.
• In psychographic segmentation they targeted a1, a2, b1 socio-economic
classes.
• In behavioral segmentation 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.
DOMINO’S
• In geographic segment they targeted countries where there were no
DOMINO’S outlets. Initially opened in class ii cities and then have now
moved to class i, metros and smaller towns.
• In demographic segment their main target is the teenagers and college
students (13 to 21years), young adults ranging from 21 years to 35 years.
They aim basically at the middle class, upper middle class income families.
• In psychographic segmentation they targeted a2, b1, b2 socio-economic
classes.
• In behavioral segmentation it was found that they were targeting the first
time users and also their regular users.

18
Push and Pull Strategies in Channel Marketing
In a push strategy, the manufacturer uses his sales force, trade promotion, money
or other means to induce intermediaries to carry promote and sell its products to
end users.
In a pull strategy, the manufacturer uses advertising, promotion and other forms of
communication to persuade the customer to demand the product from
intermediaries, thus inducing the intermediaries to order it.
□ Domino’s: Pursuing A Push Strategy
Domino’s pursues a medium push strategy in its channel marketing. The
advertising layout for domino’s is minimal in India. Domino’s concentrates on
incentivizing customers instead off advertising and promotion. As a result,
domino’s regularly introduces sell-in schemes (promotional schemes for dealers),
promotional coupon, festival offers etc.
□ Pizza Hut: Masters At Pull Strategy
Pizza hut follows more or less the opposite strategy. Pizza hut has mastered the art
of pull strategy. It pioneered the practice of advertising and promotion in the fast
food industry. Pizza hut achieved this remarkable feat by adopting a different
marketing strategy that involved increasing ambiences and amusement for the
customers.

19
Pricing
Pricing Of Domino’s
Indians are value-sensitive, not price-sensitive. The price was attributed to the high
quality of ingredients used. For instance, Domino’s sourced its Peperoni and
Jalapeno needs from Australia and Spain respectively. However, with competition
increasing from Pizza Hut, Domino’s introduced price cuts, discounts and freebies
to attract the customers. In 1998, Domino’s introduced the Pizza Mania scheme
where it offered a large pizza for Rs.129/-. The demand was overwhelming and the
company sold close to 5000 pizzas in the first week of its launch.
During late 1998, both Domino’s and Pizza Hut were trying to lure the customers
with discount coupons by issuingsuch coupons through several schemes. However,
both Domino’s and Pizza Hut were concentrating more on data base marketing and
below-the-line activities and special offers.
In India Domino’s is trying to attract the middle class and lower middle class
people who are interested to spend their money on pizza but in low price. Those
people are eager to go for an outing in any festival and as a cheap family restaurant
Domino’s would be most preferable. They do not need high class ambiences or
amusement in the shop so the establishment cost is low for the dealers and the
price of pizza is very reasonable for the customer. Domino’s do not have any fixed
customer though they are one of the main competitors of the Pizza hut.
The Domino’s Pizza franchise constantly keeps on inventing ways through which
it can make a greater impact on the fast food market. That is how the fast food
franchise came up with 'Fun Meal for Four' offer. Through this method, the pizza
franchise is able to produce more variety in the food delivered to its customers at

20
their door steps. Through its 'Fun Meal for 4’ pack the Domino’s Pizza India offers
four pizzas at the rate of Rs 180. This means charge of one pizza will be just Rs 45.
This has helped the speciality food franchise to enhance the strength of its
customer base. Mainly offers are more attractive for the Domino’s, mainly student
and middle class people are the main customer and they targeted that customers.
Pizza Hut
In the past, Pizza Hut has successfully used the high/low pricing strategy when
setting the retail price of its products. The high/low retail pricing strategy allows
Pizza Hut to charge a price that is above the competition, but also promote frequent
sales to lower the price below them. The high/low pricing strategy has several
advantages. First, this pricing strategy will help segment the market. Different
groups of customers are willing to pay different prices for the same product. The
high/low pricing strategy will also creates excitement. Customers will be able to
try something new when they purchase. Finally, this strategy will emphasize
product and service quality. Pizza Hut sets a high initial price for its products to
send a signal to customers that its products are quality and the service is excellent.
As there are no such competitors of Pizza Hut which could compete with the
quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by
Pizza Hut is 'market skimming'. Pizza Hut has adopted this pricing strategy as they
want to hold maximum share of the market by maximum profit. This is a golden
era for Pizza Hut, as there are no competitors and hence, Pizza Hut is free to
charge any price they want.

21
They are charging higher prices due to the uniqueness of the product. They satisfy
the target market as the food quality is worth the price paid. The pricing strategy is
not just to get the worth of quality but also to gain maximum profits before any
competitor enters because then Pizza Hut will have to change its pricing strategy.
First, this pricing strategy will help segment the market. Different groups of
customers are willing to pay different prices for the same product. The high/low
pricing strategy will also create excitement.
In India Pizza hut is targeting the rich and higher middle class people with a great
ambiences of enjoyment and amusement. They are offering an organized restaurant
system and demanding the higher price for the pizzas. In the pizza hut different
types of foods are available like appetizer, soup & salad, beverages, pasta etc. So
for the varieties kind of food the pricing strategy is different in the pizza hut. Their
customers are more or less fixed and they are price insensitive.
Brand building through advertising
Domino's and Pizza Hut initially restricted their ad strategy to banners, hoardings
and specific promotions. In August 2000, Domino's launched the Hungry Kya? ´
(Are You Hungry) sequence of advertisements on television. A company official
said,
We realized that a Pizza couldn't be slotted ± it could be a snack; then again, it
could also be a complete meal´ the only definitive common link between
DOMINO’S’
Pizzas and eating was the hunger platform. The launch of Hungry Kya? ´Campaign
coincided with Hunger Helpline´ . The helpline enabled the customers to dial a
toll-free number (1800-111-123) from any place in India. The number

22
automatically hunted out the nearest Domino's outlet from the place where the call
was made and connected the customer for placing the order. The number also
helped Domino's toad the customer's name, address and phone number to its
database. Domino’s is committed for bringing fun and excitement to the lives of
our customers by delivering delicious pizzas to their doorstep in 30 minutes or less,
and all its strategies are aimed at fulfilling this commitment towards its large and
ever-growing customer base.
Promotional and advertisement campaigns
The pizza delivery business had traditionally been promotion driven. Coupons and
discounts were offered by all pizza delivery chains to woo customers.
Since its inception, Domino’s had been known for its unique promotions that
included fast delivery and innovations to cater to a varied palette.
Use of technology online sales accounted for over 70 percent of its total sales in
2008. DOMINO’S planned to further exploit the increasing potential of the online
medium as one of the promotional and distributional channels in the downturn.

23
Chapter-4 Comparison Pizza Hut vs. Domino’s
BASIS DOMINO’S PIZZA HUT
Unique Selling
Proposition (USP)
30-minute Home Delivery
Frame
Dining Experience
Market Pentrations
strategy –
Redefining their
recipes
a)Customizing the recipe as
per the “Different Regions”;
then adding taste factor.
a)Redefining the recipes
suiting the Indian tastes
“No differentiation
region-wise”
b) Simplified ordering system
– SINGLE toll free number. b) No such provision in
Pizza Hut’s case.
c) Very fast growth in terms
of number of outlets: from
1(1996) to 101(2001)
c) Pace of growth was
slow. Juts 19 outlets in
the same period of time
PRODUCT Pizza - High Localization; Recipe redefining as per
even based on different the Indian taste.
regions. Trendsetter in Following Domino’s in
localization. localization. However;
opened 100% vegetarian
restaurant.
Customization based on
Religion – Jain City
specific –

24
Hyderabad(Halal meat)
PRICE Initially high price; as key
ingredients sourced from
Australia and Spain Competitio
with Pizza Hut resulted in Price
cuts, discounts.
Initially high price; as
Pizza Hut offer “Comebac
Value to our customer”
because of its USP – Dinin
Experience
PLACE Most robust and efficient Suppl
Chain – resulted in to reduce
cost.
Strategic set up of commissarie
for raw material supply.
Tie up with real estate
consultant. Targeting on
nontraditional outlets
like Corporate office, railway
stations, cinema halls etc.
Not much focused on
supply chain; rather
focused on “dining
Experience”
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 toh Tera
scheme

25
CHAPTER-5
RESEARCH METHODLOGY
Objectives of the Study
❖ To know the consumer perception and preference about DOMINO’S and
Pizza Hut products.
❖ To know the customer satisfaction in pricing factors of DOMINO’S and
Pizza Hut.
❖ To know about the markting strategies adopted by both the companies.
❖ To know the customers satisfaction about the company’s services and offers
of DOMINO’S and Pizza Hut.
❖ To know the respective company’s hygiene and cleanliness.
❖ To know the visit of customer in a week of pizza hut
Methodology
5.2.1Sample Unit:
The sampling Unit is the entity to which we have to follow during the whole
research study. In the context of the project study, the sampling unit primarily
consists of Individuals who may be Businessmen, Professional,, Employees,
Students and the neighbors’ in my locality.

26
Sample Size:
It plays an important role in the research. Samples are representative of the whole
population. This refers to the no. of items to be selected from the universe to
constitute a sample.
In the context of the project study, 100 respondents are chosen keeping in view the
above constrains. Attempts have being made to see that samples are chosen from
different strata.
Sampling Methods:
There are various methods of sampling like simple random sampling,stratified
sampling,cluster sampling and multistage sampling in the context of my project
study I have selected Simple random sampling.
Data Collection Method
Data collection usually takes place early on in an improvement project, and is often
formalized through a data collection plan which often contains the following data
collection methods.
The source of data collection method is as follows.
Primary Data
Secondary Data
✔
✔

27
Primary Data:
Primary data means data collected directly from first-hand experience. Means data
collected for the first time by any researcher for any research use. There are many
methods of collecting primary data and the main methods include:
Methods of collecting the primary data are:
● Questionnaire method
● Interviews method
● Focus group interviews
● Observation method
● Case-studies method
● Diaries method
I have used Questionnaire method for the Primary data collection for the study.
Secondary Data:
The secondary data are those which have already been collected by someone else
and which have to decide which have already been passed through the statistical
process. Externally, these sources may include books or periodicals reports, data
services and computer data banks.
I have also used the secondary data for the study like some company resources like
broachers, websites etc.
Limitations
1. Sample selected may not represent whole population, as sample size selected
is very small in proportion to population due to time and cost constraints
2. Limited area for survey.
3. Small sample size.

28
4. Customers feedback was biased
5. Time constraint hindrance is major play.
6. Scope of project is limited in the sense that only DOMINO’S and Pizza hut
has been taken for consumer research

29
vists of pizza joints
0% pizza hut
16%
dominoz
9%
both
75%
pizza hut dominoz both
CHAPTER-6
Data Analysis and Interpretation
SAMPLE SIZE-100
1-Have you visited the following pizza joints?
INTERPRETATION
This graph shows that which pizza joint people have visited.
This result shows that 81% of people have visited both the joints whereas 17.2% of
people have only been to pizza hut and 10.3% of people have been to
DOMINO’S only.

30
% of visits
0% weekly
14%
not often
29%
monthly
57%
weekly monthly not often
2-How often do you visit these joints?
INTERPRETATION
This graph shows that how often people visit pizza joints that is Pizza Hut and
DOMINO’S.
The result indicates that only 14% of people(customers) visits pizza joints weekly
, 57% of people visits pizza joints monthly and 29 % of people doesn’t visits pizza
joint often.

31
Accessibility
pizza hut
0% 6%
dominoz
31%
both
63%
pizza hut dominoz both
3-Which joint is more accessible from your home or work place?
INTERPRETATION
This graph shows that which pizza joint is more accessible from home and work
place.
The result indicates that 6% (pizza hut) of people have pizza hut accessible from
their place,
31% of people have DOMINO’S accessible from their place whereas 63% of
people have both joints accessible from their places.

32
customer friendly
0%
pizza hut
38%
dominos
62%
pizza hut dominos
4-Where do you think staff is more friendly and co-operative?
INTERPRETATION
This graph shows that which pizza joint has more friendly and co-operative staff.
The result indicates that only 38% of people voted for pizza hut whereas 62of
people have voted for DOMINO’S.

33
Sales
0%
pizza hut
38% pizza hut
dominos
dominos
62%
5-Where do you find wide range of varieties?
INTERPRETATION
This graph shows that at which joint people(cutstomers) find wide range of
varieties.
The result indicates 38% of people finds wide range of varieties in Pizza Hut
where as 62.5% of people finds wide range of varieties in DOMINO’S

34
Sales
pizza hut
12%
dominos
88%
pizza hut dominos
6-Whose home delivery services are better?
INTERPRETATION
This graph shows whose home delivery services are better.
The result indicates that 12.% of people like Pizza Hut’s home delivery service
whereas 88% of people like DOMINO’S’s home delivery service.

35
ambience (%)
both
33%
pizza hut
52%
dominos
16%
pizza hut dominos both
7-Whose ambience is more comfortable and lively?
INTERPRETATION
This graph shows that whose ambience is more comfortable and lively according
to the customers.
The result indicates that 52% enjoys Pizza Hut’s ambience and is more
comfortable and lively whereas 15.% enjoys DOMINO’S’s ambience.
33% of people enjoys both pizza joint’s ambience and are comfortable there

36
key factor
location anyother
1% 1%
food quality
26%
taste
47%
food variety
8%
price
17%
taste price food variety food quality location anyother
8-What is the key factor for you to choose the pizza joint?
INTERPRETATION
This graph shows the key factor for customers to choose pizza joint.
The result indicates 47%of people prefers taste as a key factor to choose the pizza
joint whereas 26% of people chooses food quality,17% of people chooses price,8%
of people chooses food variety and 1% of the people chooses location and any
other reasons respectively.

37
offer's
pizza hut
25%
dominos
75%
pizza hut dominos
9-Who do you think provides better offer?
INTERPRETATION
This graph shows that which pizza joint provides better offer to the customers.
The result indicates 25% of people thinks Pizza Hut provides better offers to the
customers whereas 75% of people thinks DOMINO’S provides better offers to them.

38
Economical(%)
pizza hut
19%
dominos
81%
pizza hut dominos
10 according to customers which is more economical?
INTERPRETATION
This graph shows that which joint is more economical according to the customer’s
taste.
The result indicates that only 19% of people finds Pizza Hut economical whereas
81% of people finds DOMINO’S more economical.

39
cheese max ( pizza
hut)
29%
cheese burst
(dominos)
71%
cheese max ( pizza hut) cheese burst (dominos)
11-Whose pizza crust do you think is better?
INTERPRETATION
This graph shows that which pizza crust do customers think is better.
The result indicates that 29% of people like cheese max crust of Pizza Hut whereas
71% of people like cheese burst crust of DOMINO’S more.

40
prefered
pizza hut
30%
dominos
70%
pizza hut dominos
12-According to you , which joint is better?
INTERPRETATION
This graph shows that which pizza joint customer prefers.
The result indicates that 30% of people prefers Pizza Hut whereas 70% of people
prefers DOMINO’S.

41
CHAPTER-7
FINDINGS
 As per the analysis customers had visited the both of the major pizza giants
and on an average of 57% tend to visit them monthly.
 Accessibility of DOMINO’S ismore as compared to Pizza hut.
 The ambience & the service, customer friendly atmosphere has been
rendered by both of them but DOMINO’S served it better.
 Home delivery services of both of them differs , People preferred ordering
food from DOMINO’S with its unique 30 min delivery time .
 Consistency should be maintained by Pizza hut on the grounds of delivery ,
location , offer’s.
 Convenience and time saving are two important factors that customer
looking for while purchasing through fast food giants .

42
CHAPTER-8
Recommendations
DOMINO’S
1. DOMINO’S can provide good quality restaurants
2. There should also be provision for music, TV’s, kids zone etc in the
restaurant
3. By doing this they can even charge a little bit more on the food items.
4. Maintain consistency in the taste and quality of products.
5. Include more items in its product line like fried cheese onion rings etc..
Pizza Hut
1. Reduce the menu costs; it is way too expensive for a middle class Indian.
Middle class forms the maximum population of India and hence reducing the costs
of pizza can increase the elasticity of demand greatly
2. Invariably there are less discounts,. Thus Pizza hutshould offer more
discounts to tap more customers on larger segment.
3. Their reach is very less as compared to DOMINO’S thusthey should
increase their presence.

43
CHAPTER-9
CONCLUSIONS
Pizza Hut has many targets which it has achieve in a given period of time. The
time-period is mostly a year. Therefore, in order to fulfill the targets different
strategies are adopted by Pizza Hut. It can be concluded that these strategies have
been successful and there is flexibility in the strategies, as they can be changed
with the changes in the market conditions as well as the targets. Indians are value-
sensitive, not price-sensitive. The price was attributed to the high quality of
ingredients used. For instance, Domino’s sourced its Peperoni and Jalapeno needs
from Australia and Spain respectively. However, with competition increasing from
Pizza Hut, Domino’s introduced price cuts, discounts and freebies to attract the
customers. In 1998, Domino’s introduced the Pizza Mania scheme where it offered
a large pizza for Rs.129/-. The demand was overwhelming and the company sold
close to 5000 pizzas in the first week of its launch. The objectives of promotion are
to introduce a new product, stimulate demand, change the short-term behavior of
the customers, and encourage repeat or greater usage by current customers. Pizza
hut uses many promotional strategies. The main promotion is a coupon to
purchase. This promotion is also distributed mainly by mail, but also by fliers on
college campuses around the country in order to reach the target market.
In the research we can see that 70% of customers prefers DOMINO’S and only
30% of customers prefers pizza hut. Customers are attracted to DOMINO’S as it is
more economical, provides better offers and services as well as taste.
From the above the study we can conclude DOMINO’S is more affordable,
provides better offer, services and is easily accessible.

44
Bibliography
1. https://docs.google.com/forms/u/0/
2. https://scholar.google.co.in/schhp?hl=en&as_sdt=0,5
3. https://en.wikipedia.org/wiki/Pizza_Hut
4. https://en.wikipedia.org/wiki/Domino%27s_Pizza
5. https://scribd.google.com

45
ANNEXURE
QUESTIONNAIRE
1. Have you visited the following places?
a) Pizza Hut
b) DOMINO’S
c) Both
2. How often do you visit these places?
a) Weekly
b) Monthly
c) Not very often
3. Which joint is more accessible from your home or work place?
a) Pizza Hut
b) DOMINO’S
c) Both
4. Whose ambience is more comfortable and lively?
a) Pizza Hut
b) DOMINO’S
5. Where do you think staff is more friendly and co-operative?
a) Pizza Hut
b) DOMINO’S
6. Where do you find wide range of varieties?
a) Pizza Hut
b) DOMINO’S
7. Whose home delivery services are better?

46
b) DOMINO’S
8. What is the key factor for you to choose the pizza joint?
a) Taste
b) Price
c) Food Quality
d) Food variety
e)Location
f) Any other
9 .Who do you think provides better offers?
a) Pizza Hut
b) DOMINO’S
10. According to your taste which is more economical?
a) Pizza Hut
b) DOMINO’S
11-Whose pizza crust do you think is better?
a) CheeseMax(Pizza Hut)
b) CheeseBurst( DOMINO’S)

Marketing Strategies of Pizza Hut & Domino's

Recommended

Recommended

More Related Content

Similar to Marketing Strategies of Pizza Hut & Domino's

Similar to Marketing Strategies of Pizza Hut & Domino's (20)

Recently uploaded

Recently uploaded (20)

Marketing Strategies of Pizza Hut & Domino's