TITEL OF THE PROJECT PROJECT AT A GLANCE COMPANIES COMPANIES NAME PROJECT TITEL Pizza
: - Pizza Hut and Domino’s Pizza : - Comparative study between Hut and Domino’s
PROJECT GUIDE
:-Dr. :-Dr. MANISHA SHARMA
NAME OF THE STUDENTS: - Dhananjay (PGFB0815) Varsha agarwal(PGFB08) Priya (PGFB08) Aamit (PGFB0804)
PROJECT DURATION DURATION
:-APPROX :-APPROX 30 Days
SUBMITTION DATE DATE
: - 02.04.2009
JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA
Acknowledgement
This report bears the imprint of many people and without their support it would not have existed. First of all we woul would d lik like to expr xpress ess our our si sinc ncer ere e in inde debt bted edne ness ss and and profound gratitude to our parents whose support in all manners had made us capable to complete this project. We acknowledge our deepest thanks to
Dr. Dr.
Manisha Manisha Sharma Sharma for for all all thei theirr car care and and enco encour urag agin ing g words and giving suggestion at different point of times. At the outset we would like to put on record our sincere gratitude to all of our friends for giving us valuable ideas throughout of our project.
Team members:- Dhananjay Kumar Kumar Priya Goel
Varsha agarwal
Aamit kumar
EXECUTIVE
SUMMARY
From the comparative study of these two Fast food chains Pizza hut and Domino’s we understand that on which front, which company is weaker than others. As we know that Pizza hut is the largest pizza restaurant company in the world with 12000 outlets in 90 countries and it enters in INDIA in 1996where as The Domino’s pizza enters in INDIA in 1995 and now it has 220 outlets in India. But after all Domino’s which has First mover advantage and customer base; cannot succeed as most favorable brand in between the people of those who likes Pizzas.
From this study we know that pizza hut makes its number 1 position in between peoples. And in the preference side people also prefer Pizza hut rather than dominoes. In price category the price of the pizza is less in Domino’s rather than pizza-hut but once again the quality of pizza and the conditions which is imposed by the dominoes for door-steps door-steps services makes domino’s less attractive.
From this survey some finding are abstracted which is shown below: -
FINDINGS
• • •
•
•
From the total of 50 respondents
32 are male respondents 18 are female respondents. These results as the male are leading the sample and female showed less interest in participating in the study; The 18-28 Age-group are more visited Pizza outlets (32person.) In occupation side: - More students visited the outlets rather than other occupants(24 students)
Conclusion: From the study of this survey we find that The Pizza hut gain a good market share rather than Domino’s. The preferences of the people for Pizza are more with Pizza-hut. Males are more attracted towards Pizza-hut due to good ambiances and freshness’ freshness’ rather than women’s. The male respondents are more attracted towards pizza and females are not responding like as Men’s. The quality of Pizza-hut is better than Domino’s. The study also shows that the Indian customers are not price sensitive when they get good product, quality and services.
Recommendations: There are some recommendations regarding both of the Pizza-outlets: -
For Pizza-hut: - Improve the quality of the service of the door-steps and Reduce the price of the Pizza’s. For Domino’s: - improve the quality of the Pizza’s; Increase Increase the visibility In the market, Should try to regain trust of the Customer regarding its Door steps services.
INTRODUCTION This research is based on service comparison of pizza hut and dominos. Delivering quality service is of utmost important. This research r esearch is based to test the quality of service and comparison between two pizza Houses. The fast food industry of India is experiencing phenomenal growth and is one of the fastest growing sectors in the country, country, with the compounded annual growth rates of the market crossing 25%. Further, on the back of changing and busy lifestyle, fast emerging middle class population and surging disposable income, the industry will continue to grow at a pace in coming years. years. It now accounts accounts for roughly half of all restaurant revenues in the developed countries and continues to expand there and in many other industrial countries in the coming years. But some of the
most rapid growth is occurring in the developing world; where it's radically changing the way people eat. People buy fast food because it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about fast food industry, industry, its trend, reason for its emergence and several other factors that are responsible for its growth .
This report provides extensive research and rational analysis on the Indian fast food industry and tracks the changing dynamics of the market . It features market performance, key related sectors and competitive landscape of the market. The research study looks into the market condition and future forecasts, and outlines current current trends and analyses. It has been made to to help clients in analyzing the opportunities, challenges and drivers vital to the growth of fast food industry in India.
For the purpose of this report, Fast Food Industry includes fast food restaurants, teahouses, coffee shops and juice bars in India.
Consumers will be feeling the impact of the crisis far more over the coming months and will have to adjust their daily habits and attitudes accordingly. There are already clear signs pointing in this direction, which are not necessarily detrimental to food retail. In times of economic crisis, the cocooning effect tends to emerge and this involves consumers focusing increasingly on activities within their own homes. For For example, they will go out less in favor of enjoying evenings in. These
behaviors will impact primarily on the restaura restaurant nt industry, with the lack of consumption outside the home made up for by the purchase of food products to be eaten at home, the research group noted - something which has already been seen in a number of countries. Although only around half of consumers will actually be affected by the crisis, the situation will have a major impact on food retail. The various sectors, industries and retail retail will all be affected by the economic crisis to varying degrees. There will be losers, but also winners in this downturn.
The 6000 corer fast food retail industry is mainly domi domina nate ted d by the the mult multin inat atio iona nall pla players yers and and the the key players which are active in the research of the food retailing include:
•
Pizza hut
Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries. In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune , and Chandigarh amongst others. Yum!
Is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country. •
Dominos
Domino's vision is focused on “Exceptional people on a mission to be the best pizza delivery company in the world! ". Domino's is committed to bringing fun and excitement 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. Domino's constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow effect (the feel good factor). Domino's believes strongly in the strategy of 'Think local and act regional'. regional'. Thus, time and again Domino's has been innovating toppings suitable to the taste buds of the local populace and the Indian market market has very well accepted these.
Problem statement
Why do people prefer p refer Pizza-Hut Pizza-Hut over Dominos pizza (In respect respect of service, quality, price, location)?
Research Objective (i) To
find out the comparative analysis between Pizzahut and dominos-pizza. dominos-pizza.
(ii) To
check out the preferences of the people / or the customers.
(iii) To To
find out which factors are more preferred by the customers.
BACKGROUND
HOUSES
OF THE PIZZA-
Domino’s Story
The Domino's Pizza story is one of passion, dete deterrmina minati tion on,, the the abil abilit ity y to over overco come me adve advers rsit ity y and and most most impor importan tantly tly,, a single single-mi -minde nded d drea dream m of becom becoming ing number one in the pizza home-dining industry.
Four Decades Of Experience
The '60s Domino's Pizza began with one stor tore in Ypsilanti, Mich Michig igan an on Dece Decemb mber er 9, 19 1960 60.. Its Its owne owner, r, Thom Thomas as S. Monaghan, was a 23-year 23-year-old -old student at the University Of Michigan School Of Architecture who was looking for a business venture to sponsor his studies. With his brother James, he bought an existing pizza store called Dominick's Pizza. He soon found himself absorbed in the pizza business and immediately began to make impro provem vements ents.. Al Alth tho ough ugh a novi vice ce in ter terms of pizz izza making skills and knowledge of the industry, Monaghan had the self-determination to get the job done and to do it bett better er than than anyo anyone ne else else.. What What was was need needed ed was was to consis consisten tently tly mak make grea greatt pizzas pizzas fast fast and safel safely y delive deliverr them to the customer's door.
His partnership with his brother was dissolved in 1961, by 1965, Monaghan own three stores and officially changed the company name to Domino's Pizza, Inc. A pioneer and inno nnovato vatorr in the the pi pizz zza a deli elivery very indu ndust stry ry,, Mon Monagha aghan n continuously looked for better and faster ways to handle the rush. He developed a fast pizza-making method and an efficient order taking system. From the moment the phone rang to the time the pizza was delivered to the customer's door, Monaghan stressed the need for hustle. "Never get behind" was the t he operating motto.
Even though delivery drivers were instructed to abide by the traffic laws at all times, once they got out of their deli delive very ry vehi vehicl cles es they they wer were to run run to the the cust custom omer er's 's house, ensuring a piping hot pizza. Capitalizing on the success he had found in his three stores servicing college camp campus uses es,, Mona Monagh ghan an adap adapte ted d the the same ame su succ cces essf sful ul system at Michigan State University in 1967. A massive pizza craving population of 20,000 students living on one campus, offering one size of pizza with only six toppings to choose from and introducing the company's 30 minute pled pl edge ge soon soon made ade this this st stor ore e the the comp compan any' y's s bi bigg gges estt money maker. Thi his s stor tore is als lso o nota notab ble beca becaus use e it soli olidi diffied ied in Mon Monagh aghan's an's min ind d the the need eed to expand pand.. Monaghan sold his first franchise to Charles Gray on April 1, 1967, after personally training Gray for the job himself.
The company suffered its first serious setback when on Febru bruary ary 8, 1968 the the com company' ny's centr ntral offic ffice e and commi commissa ssary ry were were destr destroy oyed ed by fire fire.. The The compa company ny was was inad in adeq equa uate tely ly in insu surred and and Mona Monagh ghan an was was only only able able to recou ecoup p $1 $13, 3,60 600 0 in loss losses es.. Neve Nevert rthe hele less ss,, Mona Monagh ghan an's 's beli belief ef in his dre dream dro drove hi him m to pus ush h the com compan pany forward once again. By the end of 1969, Domino's Pizza, Inc., consisted of 42 stores reporting an estimated $8.1 million in total sales .
The '70s
Despite its high turnover, Domino's was $1.5 million in debt. By 1970, its creditors took action and 200 lawsuits were filed against it. Monaghan lost contro trol of the company to the banks, only to have it returned to him 10 mont months hs late laterr in wors worse e cond condit itio ion n than than when when they they had had taken it over. Monaghan and his wife managed to salvage what was left of the company and once again took off in pursuit of their t heir dreams.
Monaghan focused on rebuilding the trust of his creditors and the company's reputation reputation and spent much of his time visiting his stores, talking with store managers and team members, and observing them in action. He continued to emphasis the Domino's system of simplicity and speed. Passing on his enthusiasm for the nature of the business and creatin ating g a friend iendly ly,, competi petiti tive ve env enviro ironment, ent,
Monaghan also implemented the "Manager of the Year" award, a national honor presented to the company's best store crew chief ch ief..
Know Knowin ing g what what made made Domi Domino no's 's di diff ffer eren ent; t; prim primar aril ily y its its unparalleled successful system of promoting from within, pizza makers, delivery drivers and order takers all knew they had the opportunity to advance through the ranks to become a store manager or even a franchisee. This not only only encou encourag raged ed a spi spirit rit of entr entrepr eprene eneurs urship hip,, but also also ensur ensured ed a dedica dedicated ted,, indust industrio rious us workf workfor orce. ce. Ten years years later Monaghan's vision of promoting from within to build the best company with the best people paid off as 92% of Domino's Pizza franchisees had started their careers in the company at entry level jobs.
Main Mainta tain inin ing g hi his s pers persis iste tenc nce e on maki making ng trai traini ning ng a top top priority, a week-long new employee orientation program was developed as Monaghan toured the country visiting stores. After a decade and a half of sixteen hour shifts and endl endle ess obs bsta tacl cle es to over vercom come, Mona Monag ghan han and Domino's Pizza were finally running smoothly. By the end of 1974, there were nearly 100 stores amassing $20.4 million in sales. Late in 1974, Monaghan received a letter from Ams Amstar tar Corp Corpo orati ratio on whi hic ch had been een usi sing ng the the trad tradem emar ark k "Dom "Domin ino" o" sinc since e 19 1900 00.. It dema demand nded ed that that he chan change ge hi his s comp compan any' y's s name name.. With ith near nearly ly 100 st stor ores es
nationwide and growing public recognition and acceptance, Domino's Pizza was being told to return to the starting gate.
On September 30, 1975, Amstar tar filed suit against Domino's Pizza for trademark infringement. Domino's lost the case and was forced to operate all new store openi enings ngs unde nder the name Pizza izza Dis Dispatc patch. h. Bu Butt 1980 brou brough ghtt a posi positi tive ve conc conclu lusi sion on to the the laws lawsui uit, t, with with the the company being permitted once again to operate under its long-established identity of Domino's Pizza. The company ended that year with 398 stores recording $98 million in sales.
Franchising also continued to grow. In fact, by this time, most most of the the comp compan any' y's s grow growth th came came from from its its st strrong ong franchise base, and the majority of the franchisees were from the internal ranks. Opportunity kept the Domino's Pizza team motivated and highly productive. There was something big waiting for everybody who was willing to work for it. Monaghan often referred to his franchisees as the very heart of the company and time and time again they they have have prov proven en this this to be true true.. With ith thei theirr ener energy gy,, dedi dedica cati tion on and and fina financ ncia iall in inve vest stme ment nt,, they they woul would d help help bring Domino's Pizza to a level of success beyond what Monaghan had ever imagined possible.
The '80s
In 1983 the company celebrated the opening of its first international store in Winnipeg, Canada. Domino's Pizza Inte Intern rnat atio iona nal, l, whic which h Mona Monagh ghan an call called ed the the comp compan any' y's s "hop "hope e for for the the futu future re," ," beca became me in part part resp respon onsi sibl ble e for for much much of the the comp compan any' y's s later ater move moveme ment nt and and grow growth th.. 1983 also saw the opening of the company's 1000th store in Colorado Springs, Colorado. After a quarter of a century of honing its pizza making and delivery systems, Domino's Pizza knew the pizza delivery business. In 1985 tens of thousands of customers around the world showed their confidence in the company by ordering 135 million pizzas during that year, an astonishing 69% increase over the previous year's sales. By 1989 Domino's had opened its 5000th store.
The 90s By 1992 the international division had opened its 500th stor st ore e outs outsid ide e the the Unit United ed Stat States es.. The The dome domest stic ic mark market et cont contin inue ued d to grow grow with with the the in intr trod oduc ucti tion on of in inno nova vati tive ve variations to the original pizza recipe as well as creative up-sell items. 1993 was shaping up as another major year for Domino's until December brought one more crisis: a $79 million judgment against the company in a lawsuit alleging the 30 minute guarantee was at fault in a St Louis ouis traf traffi fic c acci accide dent nt.. After ter days days of soul soul-s -sea earrchin ching, g,
Monaghan decided to withdraw the guarantee permanently, a move that made headlines worldwide such was Domino's renown. Not only is Monaghan cred credit ited ed with with pi pion onee eeri ring ng the the mult multii-bi bill llio ion n doll dollar ar pi pizz zza a delivery industry, but also with numerous inventions. He is respo espons nsib ible le for for the the corr corrug ugat ated ed pi pizz zza a box, box, conv convey eyor or oven ovens, s, and and Doug Doug mix mixers, ers, in insu sula lated ted bags bags to tran transp spor ortt pizzas in, the pizza screen, Doug trays and, most important to the success of his own business, a unique franchising system enabling managers and supervisors to become independent business owners.
In 1999 Monaghan, a deeply spiritual man, decided it was time to give back to the community much of the wealth he had accumulated as a result of his 39 years at the helm of this great company. So he sold Domino's Pizza to Bain Capital, an organization with a proven track record of identifying companies with significant growth potential, and steering them to achieve that potential.
The Future Many changes have been made since Domino's was sold to Bain Capital, and a new spirit of excitement has paved the way way for for the futur future. e. Despit Despite e encoun encounter tering ing setbac setbacks ks and obstacles along the way, the story of Tom Monaghan's 39 years at the helm of Domino's Pizza Pizza is one
of never giving up on your dreams. What began as one man's vision evolved into a thriving worldwide industry?
Domino’s Pizza India Limited Domin ino o's Pizz izza Ind India Li Lim mited ted (DP (DPIL) IL) is the master franchisee for India, Srilanka , Bangladesh and Nepal from Domino’s Pizza International Inc., USA. The company had been been prom promot oted ed by Mr. Mr. Shya Shyam m S. Bh Bhar arti tia a and and Mr. Mr. Hari Hari S.Bhartia of the Jubilant Organosys Group (Formally Vam Organic Group).
The Company was incorporated in March 1995. The First Domino's Pizza store in India was opened in January 1996, at New Delhi and today after nine years Domino's Pizza India has grown into a countrywide network of over 100 outlets in 27 cities, which includes:-
North - Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar, Dehradun, Shimla, Agra, Kanpur, Lucknow, Noida, Faridabad, Mussoorie
South - Chenna Chennai, i, Bangal Bangalor ore, e, Hydera Hyderabad bad,, Coim Coimbot botor ore, e, Mangalore, Cochin, Secundrabad, Manipal,
East - Kolkatta
West - Mumbai, Pune, Ahmedabad, Goa
Domino’s intends to penetrate completely within these markets by opening up 20-25 outlets per year in these cities. Domino’s has a young and enthusiastic team of over 2,100 employees. Today, Domino’s has emerged as the leader in the fast food segment with about 65% of market share of pizza delivery in India and have outlets more than any other corporation in the business of food, not just the pizza business. All the Company outlets are corp corpor orat ate e outl outlet ets s in inve vest sted ed by the the comp compan any y and and also also managed by the company. company.
Ove Over a perio riod si sinc nce e 1996, Domin ino' o's s Pizz izza India ndia has est sta abl blis ishe hed d a reput eputat atiion for bein being g a hom home deliv livery ery speci pecia alist list capab pable of deli eliver verin ing g its pi pizz zza as withi ithin n 30 minu minute tes s to its its comm commun unit ity y of loya loyall cust custom omer ers s from from its entir entire e store stores s arou around nd the countr country y. Custom Customers ers can can order order their their pizza pizzas s by callin calling g the single single countr countrywi ywide de "Hunger Helpline" - 1600-111-123 and Domino’s was the first one to start this facility for its customers.
Domino’s vision is “Exceptional “ Exceptional people on a mission, to be the best pizza deliv livery company in the world!”. Domino’s is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas to thei theirr doorste rstep p in 30 min inut utes es or less less,, and all our strategies work for fulfilling this commitment towards our large and ever-growing customer base.
Domino's constantly strives to develop the product that suits the taste of its customers to bring out the 'WOW' effect (i.e. effect (i.e. the feel good factor). Domino’s believes in the strategy of “Think local and act regional” that is blended with a playful image personified by our "Hungry Kya?" posi positi tion onin ing. g. Thus Thus,, time time and and agai again n Domi Domino no’s ’s has has been been inno in nova vati ting ng topp toppin ings gs,, su suit itab able le to the the tast tasteb ebud uds s of the the locals and these have been very well accepted by the Indian market, are doing extensively well in the market. We are constantly in the process of innovating further; we introduce new topping every 3 –4 months
Domino’s understands customers demand and is cons consta tantl ntly y deve develo lopi ping ng loca locall flav flavor ors s unde unders rsta tand ndin ing g the the local local senti sentimen ments. ts. Als Also, o, the ingre ingredie dients nts,, sauce sauces s etc. etc. are are made keeping in mind the taste buds of Indian consumers while retaining the international flavor.
Dom Domin ino’ o’s s cons consta tant ntly ly st stri rive ve to mak make the the com company pany an integ ntegra rall part art of the the liv lives of the tar target audi udience ences s by getting involved with the clientele at the emotional level and and buil buildi ding ng long long-t -ter erm m relat elatio ions nshi hip p with with them them.. Thus Thus,, Domino Domino’s ’s conce concentr ntrate ate more more on carryi carrying ng out below below-th -theeline activities in the area it serves.
Domino’s believe in bringing fun and excitement into the lives lives of our our client clientele ele.. We take take our delive delivery ry propo proposit sition ion very seriously and our entire corporate ethic is based on
it. Dom Domino's no's is the the recog cogni nize zed d worl world d lea leader der in Pizz izza delivery. But it isn't just about delivering; it's also about giving back to the community. Domino’s believes that an esse essent ntia iall comp compon onen entt of corp corpor orat ate e respo espons nsib ibili ility ty is to provide support to charitable organizations that benefit the the comm commun unit itie ies s wher where e its its empl employ oyee ees s and and cust custom omer ers s work and and liv live. Dom Domin ino’ o’s s world ldw wid ide e is kno known for its its commitment toward social causes and believes in adding fun fun to the the live lives s of our our cust custom omer ers s and and comm commun unit itie ies s it serves.
In India, Domino’s has been associated with the NGO’s devo devote ted d to the the caus cause e of unde underp rpri rivi vile lege ged d Chil Childr dren en’s ’s.. Domino’s conducts Store Educational Tour (SET) for the underprivileged children time-to-time. Recently this was done done in the the one of the the Dom Domino’s no’s outle utlett in Delh Delhii and and Mumbai with the underprivileged children from CRY CRY (Child Reli elief and You) where ere Dom Domino’s no’s too took the the pledg ledge e to provide part-time employment to the eligible wards from CRY who are above 18 years, reiterating its commitment towards social causes. Also, fifty- percent of that day’s first 20 deliveries of the store were given to CRY toward the cause of the underprivileged children. The children had a gala time while they learned to make and bake pizz pi zzas as at the the st sto ore and and fina finall lly y tast tasted ed the the su sum mptuo ptuous us offe offeri ring ngs s made made by them them duri during ng the the Stor Store e Educ Educat atio iona nall Tour. Domino’s Pizza India also boasts about its commitment to serve its customers on time by implementing the “30
MINUT MINUTES ES OR FR FREE” EE” service service commitm commitment ent, they they have have been able to achieve this as a result of continuous efforts and dedication of the entire team in improving operating efficiencies.
Domino’s Pizza India has been consistentl ntly rated amongst the top 2 pizza chains worldwide in the Domino’s family by Domino’s International, in terms of quality of operations. Our pizza delivery times have also been been ju jud dged ged as the the bes best deliv elive ery tim times in the the worl world d across all Domino’s.
PIZZA HUT INDIA
Background
Pizza izza Hut Hut ente enterred Indi India a in 19 1996 96,, and and open opened ed its its firs firstt resta estaur uran antt in Bang Bangal alor ore. e. Si Sinc nce e then then it has has capt captur ured ed a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India; and employed nearly 4,000 people by end of 2004. Yum! has invested about US$ 25 million in India so far; ar; this this is over ver and abov bove inve nvestmen tments ts made ade by franchisees.
Yum Yum!! Bran Brands ds Inc Inc is the the owne ownerr of the the Pizza izza Hut Hut chai chain n world worldwid wide. e. A Fortune ortune 30 300 0 compan company, y, Yum! um! Brands Brands own own Kentucky entucky Fried Chicken, Chicken, Pi Pizza zza Hut, Taco Bell, A&W and Long John Silver’s restaurants worldwide. Yum! Generated more than US$ 25.9 billion in worldwide sales in the year 2003, and has more than 33,000 restaurants in over 100 countries.
A major player in the Indian fast food and beverage sector
Market share
Pizza Hut is believed to have close to 50 per cent market share of the organized organized pizza-retailing segment in India.
Financial performance
According to an article in Financial Express, the market size of the pizza segment is around US$ 87 million and currently currently growing at the rate of 15 per cent to 17 per cent per annum. According to Pizza Hut sources, most of their
outle outlets ts are are financ financial ially ly succes successf sful, ul, encou encourag raging ing furthe furtherr expa expans nsio ion. n. In Indi India, a, the the aver averag age e in inve vest stme ment nt for for each each outlet tlet is US$ 275,0 ,00 00-3 -33 35,000 and is bor borne by the the franchisee.
Factors for Success
Offering value food
Employing economies of scale, Pizza Hut has made its offerings more affordable. Its delivery offer of US$ 4.4 for four per person sonal pan pi pizz zzas as has has been een very su succ cces essf sful ul;; helping it grows the business by 25 per cent. They have recently introduced a range of vegetarian personal pan pizzas for US$ 1.1. Most Pizza Hut restaurants are located in the metros and smaller metros. In taking long strides across the country, Pizza Hut is consolidating its position by open openin ing g mor more resta estaur uran ants ts in the the metr metros os wher where e it already has a presence as well as opening outlets in new markets.
Moving beyond metros Accor ccordi ding ng to comp compan any y sour source ces, s, Pizza izza Hut Hut is movi moving ng beyond the metros and foraying into 12 to 13 new marke rkets in inc clu lud din ing g Tric ich hy, Nagpu agpur, r, Bh Bhub ubha hane nesw swa ar,
Thiruva uvananthapuram penetration.
and
Pondicherry
to
increase
Aggre Aggress ssive ive mark marketing eting and and tie-up tie-ups s with with local local and and popular brands Pizza Hut has increased its visibility by launching a wellreceived TV campaign aimed at the young crowd. It has for formed med part partne ners rshi hips ps with with recog ecogni nize zed d bran brands ds such uch as Nestl estle e and Pepsi epsi.. It als lso o hol holds regul gular pro promoti motion ona al campaigns targeted at children and uses these alliances to offer packages during these campaigns.
Developing the local supply chain
The local supply chain for Pizza Hut was developed by Yum! and currently 95 per cent of the ingredients they use us e are are loca locall lly y prod produc uced ed.. They They now now impo import rt very very few few specialty items like pepperoni.
Leve Levera ragi ging ng the the Indi India a Adva Advant ntag age e : Inte Intern rnat atio iona nall brand with an Indian heart
Pizza Hut is one of the first international pizza chains with pur purely ely veg vegetar etaria ian n di dine ne-i -ins ns at Chow howpatt patty y (Mu (Mumbai bai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community, whose members prefer not to eat at places where meat is served.
Offering more than the international menu
Inter ntern natio tional nal food chain ins s typi typica call lly y offer ffer onl nly y a few localised products in other parts of the world. However, Pizza Hut’s local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very very rich rich,, and and henc hence e Indi Indian ans s lik like loca locall flav flavou ours rs.. The The Tando Tandoori ori range range of pizzas, pizzas, which which was develope developed d locally, locally, has a menu mix of over 20 per cent.
Indigenous sourcing of raw materials
Pizza Hut has reduced costs through indigenous sourcing of raw raw mater terial. ial. It has has tied tied up with with a loc local compa mpany Dynamix Dairy Industries Ltd (DDIL) for sourcing
mozzarella cheese. The landed cost of imported mozz mozzar arel ella la come comes s to US$ US$ 3. 3.3 3 - 3. 3.5 5 per per kilo kilogr gram am.. The The domestic price, however, works out to US$ 2.99 - 3.1 per kilo ilogra gram. Pizz izza Hut Hut is addi dding to the the botto ttom lin line by localising equipment as well as by paying attention to inventory replenishment, which has been reduced from 60 to 30 days.
Future plans
Accor ccordi ding ng to Yum! um! Resta estaur uran ants ts Inte Intern rnat atio iona nal, l, Indi India a is amongst the top five growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and henc hence e is conf confid iden entt abou aboutt expa expand ndin ing g its its oper operat atio ions ns in India. Pizza izza Hut Hut hope hopes s to in incr crea ease se the the numb number er of Pizza izza Hut Hut outlet tlets s in Indi ndia to 180 by the the end of 2008 fro from the the pres present ent figur figure e of 13 130. 0. The expa expansi nsion on prog program rammed med will will make Pizza Hut the fastest growing western restaurant chain in India. In addition, Yum! plans Pizza Hut to be in 42 cities by end of 2007, and 55 cities by end of 2008. Conclusions:
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Keepin eeping g up the the senti sentime ment nts s of Indi Indian an cust custom omers ers and and servi service ces s offered by Pizza-houses and Keeping our study focused on some of the key –areas of sensitivity of customers preferences (analysis of factors which affects the preferences).
We come to a conclusion that t hat : Pizza –hut is preferred() over dominos in terms of
Varity of Pizza’s
Good ambience
Services offered
Quality of pizza’s
Location of the Outlet
Waiting time in the outlet
Domino’s is being preferred over pizza-hut in terms of:
Door step services
Low pricing
So we can say that due to these qualities Pizza-hut dominates Dominos –pizza In different areas and capture the market share and gain rapidly. rapidly.
Recommendations For
Dominos
•
Increase varieties in Pizza’s.
•
Focus Focus on location of the outlets.
•
Increase the quality of Pizza’s
•
Make good ambiance in outlets
•
Should focus confidently. For •
more
on
market
zing
itself
Pizza-Hut
Try to attract more number of Ladies customers.
•
Should focus on Low price customers.
•
Make Make the door step services better
