Beruflich Dokumente
Kultur Dokumente
Project on
A Comparative Study Between Pizza Hut
And Dominos
Submitted By : External Guide : Adarsh Desai
Mr. Nishad Nanavaty
PGDMM
PROJECT REPORT
ON
A COMPARITIVE STUDY BETWEEN PIZZA HUT AND
DOMINOS PIZZA
By
ADARSH DESAI (ROLL NO-6)
POST GRADUATE DIPLOMA IN MARKETING MANAGEMENT
FIRST SEMESTER (2013-2014)
Contents
Declaration
Certificate
Acknowledgement
Summary
Introduction
Core Competencies
Competitors
STP Analysis
Marketing Strategies
SWOT Analysis
4Ps
Social Media Pizza War
Success Factors
Conclusion
Recommendations
References
Declaration
Adarsh Desai
Student PGDMM
CERTIFICATE
Acknowledgement
- Adarsh Desai
Summary
Fast food is one of the worlds largest fast growing industry types. Indias fast
food industry is growing by 40%. The 6000 crore fast food retail industry is
mainly dominated by the multinational players and the key players which are
active in the research of the food retailing. Because of the availability of raw
material for fast food, global chains are flooding into the country. The
percentage share held by foodservice of total consumer expenditure on food
has increased from a very low base to stand at 2.6% in 2001. 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.
Major players in fast food are:
McDonalds
KFC
Pizza hut
Dominos pizza
Caf coffee day
Barista
Subway
Papa Johns
Smokin Joes
Dominos and Pizza Hut are both fierce competitors in the contemporary
cultured pizza market. Both have been competing on the same niche market
that has same market demographic characteristics and hence comparison
between the two is based on a leveled ground. Today, many people take their
pizzas more seriously to an extent that they would rather die queuing for
their favorite fast food. For lovers of Pizza, it is either Dominos or Pizza Hut,
and if not, none. This is an expression on the way in which both companies
have been able to craft a market niche for their products.
Domino's and Pizza Hut, the two big US fast food chains entered India in
1996. Each claimed it had the original recipe as the Italians first wrote it and
was trying desperately to create brand loyalty. Domino's and Pizza Hut - tried
to grab as large a slice of the pizza pie as possible.
While Pizza Hut relied on its USP of "dining experience", Domino's USP was a
30-minute delivery frame. To penetrate the market, both the players
redefined their recipes to suit the Indian tastes. Domino's went a step ahead
by differentiating regions and applying the taste-factor accordingly. Domino's
also made ordering simpler through a single toll-free number throughout the
country.
Introduction
Pizza Hut
Pizza Hut is an American restaurant chain and international franchise that
offers different styles of pizza along with side dishes including pasta, buffalo,
and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's
largest restaurant company[) with approximately 34,000 restaurants,
delivery/carry-out locations, and kiosks in 100 countries. Currently based in
Addison, Texas (a northern suburb of Dallas), Pizza Hut is relocating its
headquarters to Legacy Office Park in nearby Plano when the lease on its
current building, which it has occupied since 1995, expires on December 31,
2010. The first Pizza Hut is located in Kansas at the Wichita State University
Campus. It was opened in 1958 by Frank and Dan Carney, 2 brothers who
studied at the university.
The history of Pizza hut began in 1958, when what is now the world's
largest pizza franchise was born. Today the Pizza hut company is part of the
Pepsi Empire, but back then two brothers borrowed $600 from their mother
and started to forge the history of Pizza hut.
Pizza Hut has subsequently branched out and developed franchises all over
the world. In fact it is diversity that has made the history of pizza hut so
successful. Their menus and recipes are not the same, different locations use
different suppliers and different toppings, according to the demand of their
clients. The building block of the history of pizza hut has been this diversity,
not often present in such a large concern.
The whole history of pizza hut has been achieved through innovation, but the
history of pizza hut really took off with union into the Pepsi Company and
more aggressive marketing techniques especially in the take out market
Pizza Hut was founded in 1958 by brothers Dan and Frank Carneyin their
hometown of Wichita, Kansas When a friend suggested opening a pizza
parlor, they agreed that the idea could prove successful, and they borrowed
$600 from their mother to start a business with partner John Bender. Renting
a small building at 503 South Bluff in downtown Wichita and purchasing
secondhand equipment to make pizzas, the Carneys and Bender opened the
first "Pizza Hut" restaurant; on opening night, they gave pizza away to
encourage community interest. They chose the name "Pizza Hut" since the
sign they purchased only had enough space for nine characters and spaces.
Additional restaurants were opened, with the first franchise unit opening in
1959 in Topeka, Kansas. The original Pizza Hut building was later relocated to
the Wichita State University campus. Pizza Hut's prototype version of a
restaurant (19501961) at Wichita State University. This was only used at
four prototype Pizza Hut locations. There are only a few menu items on this
version.
Dan and Frank Carney soon decided that they needed to have a good
standard image. The Carney brothers contacted Wichita architect Richard D.
Burke, who designed the distinctive mansard roof shape and standardized
layout, hoping to counter competition from Shakey's Pizza, a chain that was
expanding on the west coast. The franchise network continued to grow
through friends and business associates, and by 1964 a unique standardized
building appearance and layout was established for franchised and companyowned stores, creating a universal look that customers easily recognized.
By 1972, with 314 stores nationwide, Pizza Hut went public on the New York
StockExchange under the stock ticker symbol NYSE: PIZ. In 1978, Pizza Hut
was acquired by Pepsico, who later also bought KFC and Taco Bell. In 1997,
the three restaurant chains were spun off into Tricon, and in 2001 joined
with Long John Silver's and A&W Restaurants to become Yum! Brands. The
oldest continuously operating Pizza Hut in the world is in Manhattan,
Kansas, in a shopping and tavern district known as Aggieville near Kansas
State University.
In 2011, Yum! Brands created a separate autonomous subsidiary called Yum!
Restaurants India for its India operations. The groups top management team
views its current stage of development in India as being similar to that in
China 15 years ago. Pizza Hut currently has 40%(+) market share in Chinas
pizza market.
Pizza Hut Delivery (PHD) was introduced as a separate brand in the MiddleEastern markets in 2006 and introduced in India in 2008. In 2011, the group
has also started the process of segregating operations/resources at both the
franchisee level as well as at the store level forPH Pizza Hut as its dine-in
restaurants and PHD as the home delivery chain.
Store Expansion in India:
Pizza Hut plans to increase the store count of PHD to 300 by 2015 from 35 in
June 2011 and Pizza Huts dine-in restaurants are targeted to increase from
131 currently to 250 by 2015 taking the combined store count of PH and PHD
to 550 in India by 2015. Competitor Dominos is not too far behind and has
already said that they will expand in the same manner and have set a target
of 750 stores by 2015.
Financials of Yum! in India
Pizza Hut in India currently generates around Rs 4bn of revenues annually.
They aim to generate over US$100mn (`5bn) in annual sales only from the
home delivery format by 2015. Yum! Brands Pizza Hut and Pizza Hut
Delivery expansion plans in India form a part of a US$100m capex plan. This
includes the expansion of its KFC and Taco Bell outlets as well. Yum! Brands
decision to fund the capex for expanding their brands in India through their
own resources, rather than using franchisees balance sheets, suggests that
Yum!s management team is serious about India.
Yum has 471 stores in India comprising 208 KFC stores, 166 Pizza Hut casual
dining, 94 Pizza Hut Home Service and three Taco Bells. Pizza Hut Home
Service has been growing at the fastest pace (annualized growth of 74%)
followed by KFC (annualized growth 41%). More than 80% of these stores are
on franchise basis. The company plans to open 100 stores in India in CY12
across these three brands. Focus on Pizza Hut Home Service implies
increased competition for Dominos, which specializes in home delivery.
Yums increased focus on India is reflected in its decision to carve out a
separate India division (other divisions US, China, International) despite the
country contributing only 1% to its global business. This clearly indicates that
competition will intensify hereon, especially in the home service segment.
The following Chart shows how India is a Miniscule for Yum! on Global
Revenue Basis despite large presence. Thus the company has decided to
deepen its focus in Indian Market.
Dominos Pizza
Founded in 1960, Dominos Pizza is the recognized world leader in pizza
delivery segment operating a network of company-owned and franchiseowned stores in the United States and international markets. Dominos
Pizzas Vision illustrates a company of exceptional people on a mission to be
the best Pizza Delivery Company in the world. Dominos started out small
with the legendary Tom Monaghan who bought his first pizza store and called
it Dominicks.It was re-christened Dominos Pizza in 1965. However, in 1978,
the 200th Dominos store opened, and things really began to cook. By 1983
there were 1000 Dominos stores, rising to 5000 in 1989. Today, there are
more than 9000 franchised and company owned stores in the United States
and 60 international markets Dominos is listed on the NYSE under the
symbol "DPZ." The Dominos Pizza brand was named a Megabrand by
Advertising Age magazine. It was also named as "Chain of the Year" by Pizza
Today magazine, the leading publication of the pizza industry. In 2009,
Dominos ranked number one in customer satisfaction in a survey of
Dominos believes that when a box of pizza is opened, family and friends
come together to share the pizza. Hence, our brand positioning: Yeh Hai
Rishton Ka Time
Thats 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.
More rapid overseas growth than its rivals: Dominos has grown more
rapidly overseas than its pizza quick-service restaurant rivals in the recent
past. Going forward, continued expansion is likely to boost high-margin
royalty revenue for the company. In the past six years, DPZ has outpaced its
major rivals, Pizza Hut and Papa Johns, in new unit expansion overseas. It
can more than double its current unit count of nearly 4,835 units in the
coming ten years. In India, the company has established itself as the largest
international brand and makes up 67% of the delivery market. In fact, the
company expects the number of its international stores to surpass the
number of its domestic stores this year, something that Papa Johns and
Pizza Hut havent been able to do; overseas stores now constitute about
49.6% of total Dominos stores. The following pie chart provides a detailed
unit break up of Dominos in different markets.
Company management aims to open 350-450 stores every year, with most
of them being in overseas markets. These international stores can help the
company reach an EPS growth of 5% and international revenue growth of
10%.
dominos-pizza.
(iv)
(v) To find out which factors are more preferred by the customers.
Pizza Hut
Dominos
Smokin joes
Garcias
Papa johns
Us pizza
As per march12
The major market players are Pizza Hut and Dominos with market share of
36% and 54% respectively and other shares 10% of the market.
In major cities of India like Delhi, Mumbai, Bangalore Pizza Hut and Dominos
have a competition with Pizza corner, Smokin joes, Us pizza, Garcias but in
small cities Pizza Hut and Dominos are the major players.
Pizza Express
Pizza Corner
Slice of Italy
They have captured a lot of customers with their new style and discount
offers. Much young crowd flock their restaurants and their taste buds are
getting modified. Now the new entrants are also likely to enter the small
cities and make their presence. Thus pizza hut and dominos have to rethink
their strategies so as to retain their customers. They have to constantly
differentiate their services from the newer entrants
Substitutes
There are lots of substitutes which are available to choose with respect to the
fast food industry some of them are
McDonalds
Barista
Cafe coffee day
Chinese restaurants (mainland china)
Other restaurants
Largely it depends upon the customers what they want to have. Generally it
is assumed that when people dine outside, they think of having pizza at least
25% of time. Thus if the brand recall of a particular company is good, more
people will tend to go there. Higher the quality of food, service, higher will be
product recall and sales
Core Competencies
Dominos
Quality foods
Dedicated Workforce
Price
Pizza Hut
Pizza corner
McDonalds
Barista
Cafe coffee Day
Subway
Papa johns
KFC
STP Analysis
Segmentation:
Pizza hut
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 the cities as class i, class ii, metros, small
towns.
Demographic
Age below 10years, 10 to 18 years, 18 to 25 years, 25 to 40 years,
40+ years.
Family income middle class, upper middle class, high class
Dual income earners yes/no
Psychographic
Socio-economic class urban (a1, a2, b1, b2, c, d)
Behavioral
Occasions birthdays, corporate lunches, parties, receptions
Loyalty status low, medium, high
User status first time, regular, non-user
Dominos
Geographic
Region dominos outlets in different countries is a way of segmenting
their market according to region and finding out potential markets.
City they also segment the cities as class i, class ii, metros, small
towns.
Demographic
Age under 13years, 13 to 21 years, 21 to 35 years, 35 to 50 years,
50+ years.
Family income lower middle class, middle class, upper middle class,
high class
Psychographic
Socio-Economic class urban (a1, a2, b1, b2, c, d)
Behavioral
Loyalty Status low, medium, high
User status first time, regular, non-user
Targeting:
Pizza hut
Dominos
Positioning
Points of difference
The major point of difference between pizza hut and dominos is that pizza
hut concentrates on in-restaurant dining. The ambience and decor of all
pizza hut outlets are good and the outlets are spacious. When customers
think of party and decide to have pizza, pizza hut comes into their mind.
Pizza hut also arranges kitty parties, birthday parties and business meetings
in their outlets. Pizza hut has customized birthday party invites with different
themes for the customers to choose and use it as invitations. Dominos aims
at fast home delivery of pizza. Whenever customers want to have pizza at
home, they think of calling dominos and ordering for it because they are
experts in home delivery of pizza. We earn 60% of our revenue from home
delivery of pizzas and 40% from the restaurant sales , says Mr.navamani,
manager of dominos, Coimbatore v.o.c. Park outlet. In case of pizza hut, the
major revenue is from restaurant sales.
Points of parity
Category points of parity the main food item that is sold in pizza hut and
dominos is pizza. As we all know, pizza comes under the fast food category
of foods, both the companies must be good in speed of making and service.
Irrespective of the cost, both pizza hut and dominos has to deliver or serve
pizza in less time as compared to other main course food items served in
other restaurants.
Competitive points of parity competitive points of parity in case of pizza
hut is that, even though pizza hut is costlier than dominos, they have their
own customers, who do not bother about spending, but look for quality and
personalized service. When we visit pizza hut, they have restaurant hostess
who will assign us tables and introduce the steward who will be taking care
of us. This is generally a procedure that is followed in five star category
hotels and pizza hut is also following it to emphasize on service quality. In
case of dominos, they are not costly as pizza hut and do not offer great
ambience to customers, but offer good pizzas at nominal price. They
concentrate on turnover of covers and cater to customers who dont have
time to spend on food and just stop over for refreshment. Moreover, dominos
mainly looks into home delivery of pizzas and are experts in it.
MARKETING STRATEGIES
Overall both the companies achieve what they want to as for Dominos they
have achieved in positioning themselves as the fastest serving pizza outlet
and quenching the hunger.
Pizza Hut has come to become synonymous with the best pizzas under one
roof. They have positioned themselves for their unique dining experience.
Thus from the market feedback, it can be seen that even customers feel the
same as what the company wants them to.
Strategic Formulation
Overall Cost Leadership, Differentiation and Focus
This is achieved very effectively by Dominos as they do not intend to lose
their focus from delivering pizzas at home
Dominos Brand thus relates mainly to service & delivery neither they
promote their in dining experience nor they spend revenue for it.
Domino's vision is focused on Exceptional people on a mission to
be the best pizza delivery company in the world!
Thus Dominos are able to provide good pizzas at relatively lower rate as they
dont spend much for the restaurant
Pizza Huts Premium price
Pizza Hut is committed for providing uncompromising product quality,
offering customers the highest value for money and giving service that is
warm, friendly and personal.
They stress heavily on the dining experience and the ambience
Thus at each point company charges a premium
Thus Pizzas from Pizza Hut costs a premium hence their customers also
changes to high income groups.
Dominos motto. Initiatives such as Fun Meal and Pizza Mania have been
extremely popular with consumers.
The Brand Positioning of Khushiyon ki Home Delivery (Happiness Home
delivered) and now followed by Yeh Hai Rishton Ka Time (its Time For
Relationships) is the emotional benefit Dominos offer to consumers.
Delicacies that do not rip wallets have always got the crowd coming back to
the Dominos although its ambience is not up to that of its competitors. They
have the maximum offers with respect to the discounts they offer throughout
the year. Thus the customer has the maximum incentive to come back to
Dominos. Hungry Kya?, promotion where hunger gets quelled in less
than 30 minutes was a great value proposition . All other activities, be it new
variants, great service, timely deliveries or more for the same price the effort
of Dominos has always been directed towards making its customers happy,
creating, communicating and delivering value.
Pizza Hut:
Workforce of Pizza Hut is chosen with the motto Together we grow with
primary concern being quality of service, be it in terms of delivery or quality
of pizzas.
A critical factor in Pizza Huts success has been a menu that has constantly
evolved and expanded to cater to the changing needs and specific
preferences of customers in different parts of the world. In having
understood the pulse of the customers in India, Pizza Hut has clearly
established itself as a brand with an Indian heart. Besides offering an
extensive range of vegetarian pizzas, it was the first pizza chain to open a
100% vegetarian restaurant in India in Surat and later in Ahmedabad and
Chowpatty, where it offers a Jain menu sans all root based ingredients.
Moreover Pizza Hut is not just a hangout zone for youngsters. It organizes
birthday bashes, kitty parties and corporate lunches They also have a variety
of combinations of menu items which a customer can choose so that both
the customer and the company can have a win-win situation. The company
can have the maximum of the consumer surplus at the same time the
consumer might feel that this was the best offer.
From the menu card one can see the family size variants and the different
pizza combinations in the same one pizza are all the different ways of
pricing. The company attains the maximum profit in the meat items, so they
give the selection of pizzas slices of different varieties and they are clubbed
together to form a single pizza.
Once the customer dines / orders @ home, normally discount coupons are
given to the customer so that there is an incentive for the customer to order
from pizza hut. Thus customers are forced to maintain loyalty towards pizza
hut.
Service differentiation
Ordering ease
Once one enters the restaurant immediately the assistants initiates the
ordering process by providing the menu. All associates are well trained in
english and can take order from any customer.
Delivery
Pizza huts style of delivering the pizza to the customer is quite an
experience. The restaurant is aesthetically designed; all the staff members
are uniquely dressed. Managers dressed in special uniforms. Also the tables,
menu, are all placed in a good manner. This on itself is quite impressive. All
orders placed in restaurant is served within 15-20 minutes and the take away
orders (ordered on phone) is delivered within 30 minutes. Care also has been
taken by the company to pack the pizzas in special covers so that it remains
hot till the customer haves the food. Any pizzas delivered outside 30 minutes
are given free. Also discount coupons are given to the customer in case one
doesnt want a free pizza
Dominos
Domino's pizza India has maintained its position in the market with its
constant product innovation and maintenance of stringent service standards.
More importantly, it has established a reputation for being a home delivery
specialist capable of delivering its pizzas within 30 minutes to its community
of loyal customers from its entire chain of stores around the country. As the
name suggests the pizza delivery experts customers can order their
pizzas by calling their hotline. Domino's believes strongly in the strategy of
'think local and act regional'. Thus, time and again domino's has been
innovating toppings suitable to the taste buds of the local populace and
these have been very well accepted by the Indian market. Also they had
their promotional campaign Hungry kya? which means call up dominos if
one is hungry and have the food in 30 minutes.
Pizza features
Pizza hut has many unique features of their product due to which it attracts
the customers.The product is classified into non durable goods as it is a food
item. Dominos differentiates Itself with its competitors with respect to their
wide range of offerings (menu items).one can find besides pizzas, range of
pastas appetizers, cakes, and desserts etc. There are quite a lot number of
menu items to choose. The chicken wings item has specially struck a chord
with a lot of consumers as such a kind of item is not available in any other
pizza outlets. This item is also perceived to be the tastiest of the lot.
Indecently chicken wings are a side dish.
Some of the menu items are
Pizzas
Deep Dish
Classic hand tossed Pizza
Pastas and salads
Appetizers
Desserts
Choco lava cake
Beverages
Coke
PLACE
Once the product has been decided upon and the market segmented,
targeted and the product positioned, it is time to decide how and where the
marketer can deliver the value (product) to the customer. This is done
through marketing channels that make the product available for
consumption to the customer.
Dominos is India's largest and fastest growing food service company, with a
network of 500+ Domino's Pizza stores
Yum has 471 stores in India comprising 208 KFC stores, 166 Pizza Hut casual
dining, 94 Pizza Hut Home Service and three Taco Bells. The company plans
to open 100 stores in India in CY12 across these three brands. Focus on Pizza
Hut Home Service implies increased competition for Dominos, which
specializes in home delivery.
But The main Strength of Dominos Pizza India. Is, Its chain of stores while
pizza hut has very few and limited outlets when compared to dominos. Here,
Dominos move ahead as it has its outlets in so many locations that it is very
easy for people to spot one and is very convenient for pizza lovers to have a
bite there too, as dominos specializes in Delivering their food on your
doorsteps, it is very convenient for them to deliver the pizza to delivery
location which is nearest to an outlet which helps them delivering within 30
minutes and much convenient for people to visit than Pizza Hut.
PRICE
Tricon International said, Indians are value-sensitive, not price-sensitive. We
need to offer comeback value to our customer. The high 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.
Company
Domino's
Pizza Hut
Creative strategy
Latest in dominos
Kwality walls ice-creams in dominos- For the first time dominos
started offering ice creams .Selling ice cream in Dominos is also
a new sales promotion strategy to attract more customer in a
new perceptive /innovative way.
Dominos has also come up with New recipes campaign like
pasta mania, choco lava cake, Taco Indiana, etc....
This was followed by Pizza Hut's first campaign on television in July 2001,
which said, Good times start with great pizzas. The ad was aired
during all the important programs on Star Plus, Sony, Sony Max, Star Movies,
HBO, AXN, and MTV. Pizza Hut planned to spend between Rs.70-75 million on
the ad campaign in 2001, said Pankaj Batra, The first ad campaign on TV
defines Pizza Hut as a brand, and what it offers to its existing and potential
customers.
Brand awareness
Pizza Hut was among the first multinational brands to enter the food
retail sector in India. When the first Pizza Hut restaurant opened in
Bangalore the quick service industry was at a nascent stage and the
pizza category was dominated by a sole regional player who had a
marginal presence.
The strength of Pizza Huts success globally lies in a marketing strategy
that builds connections with customers everyday in different parts of
the world. Many customer service initiatives have been uniquely
developed for India and have been greatly instrumental in building an
emotional bond with the customer.
The crewmembers at Pizza Hut break into a Boogie at restaurants in
Delhi and Mumbai and do the Bhangra in Chandigarh and Amritsar.
While a bell hangs at each Pizza Hut restaurant, which is rung by
customers who as they leave wish to thank the servers for yet another
memorable visit.
Pizza hut organized the Jig n Jeeto contest in Delhi for the first time, it
received a phenomenal response with super star Fardeen Khan judging
the show. Pizza Hut hopes to continue this contest as a tradition for the
years to follow.
Brand attitude
International brand with an Indian heart
Pizza Hut is one of the first international pizza chains with purely vegetarian
dine-ins at Chowpatty (Mumbai), 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
International food chains typically offer only a few localised products in other
parts of the world. However, Pizza Huts local menu is as large as the
international one. According to Pizza Hut, the Indian food heritage is very
rich, and hence Indians like local flavours. The Tandoori range of pizzas,
which was developed locally, has a menu mix of over 20 per cent.
Sales promotion
Pizza Hut laid more emphasis on its restaurant dining experience.
Pizza Hut localizes it menu to capture local Indian Market.
In 2000 Pizza Hut launched its innovative Pizza Pooch menu and Pizza
Pooch Birthday Party package exclusively for kids in the 6-10 age
groups.
It positioned itself as family restaurant and also concentrated on
wooing kids.
Word of mouth
It is one of the traditional promotions for any industry. Pizza hut and
Dominos both get benefit from it.
Round 1: Audience
Audience measures the total number of relationships a brand has formed with
consumers through LIKES.
Total Audience
Dominos
4.4 million
3108
Pizza Hut
1.2 million
3314
Winner: Dominos
With an overall greater number of total relationships across Facebook, this first
round goes to Dominos. While these are impressive numbers, even for a brand,
Dominos spot might not hold for long given Pizza Huts ability to generate more
new Likes per day. Results as on 26th june 2013.
Round 2: Presence
Presence measures a brands visibility online, how well established, complete, and
active it is on social media platforms.
Facebook Posts
Per Day
Facebook Tabs
Dominos
20-23
Pizza Hut
4-5
7-10
Winner: Dominos
Dominos claims the prize for Presence by establishing a dynamic and multi-faceted
online footprint. For example, Dominos makes good use of Facebook Tabs, creating
special apps designed to engage consumers in different ways. And More tweets per
day as compared to pizza hut.
Round 3: Engagement
Engagement is about how successful a brands social media interactions are with
consumers. When a brand posts or Tweets, do fans respond with comments, likes?
Post
Dominos
293
3108
Pizza Hut
168
3314
User Comments
Per Day on
Facebook
Dominos
293
NA
18,605
Pizza Hut
168
NA
2,274
Winner: Dominos
When it comes to Buzz, Dominos takes the lead, exceeding Pizza Hut in both
Facebook User Comments Per Day and Twitter Follows. In many ways, a brands
Buzz score reflects the cumulative result of a brands success (or failure) in the
other three categories. How much other people are talking about your brand is a
measure of your online relevance and a verdict on how well your overall strategy is
working.
And the winner isDominos!
Although it was a close call, Dominos got the higher Overall Performance ranking
on our Track Social Leaderboard because of a better performance across the board
in individualmetrics. Both brands deserve recognition for their success in
harnessing social media to build and engage active online audiences. Were sure
this rivalry will see many more twists and turns.
Company
Domino's
Pizza Hut
stating its original price as Rs1007. Which includes, two medium pizzas, two
desserts and one portion of garlic bread..In which you can add two 500ml
pepsi bottles by paying Rs50 extra.
And 4 Pan Pizzas at Rs295 for veg, Rs345 for veg category two and Rs455 for
Non-vegetarian pizzas, And 2 veg and 2 non-veg pizzas for Rs455. Another
challenge which pizza hut offers that when a pizza gets delivers you can
check a dot on its box for whether its hot or not. If you find the dot to be not
hot then you get the pizza for free.
Success Factors
Pizza Hut
Dominos
First of all, Dominos is a Junk food plaza and pizza hut is more
stressing over a restaurant.
Dominos is cheaper than Pizza Hut.
But the real difference came here, real difference in taste is there.
Dominos is more towards crispier but pizza hut creates the ultimate
softness with soft n hot cheese in there pizza.
One can go to dominos every weekend either with their friends or
family.
But one can only go to Pizza hut once in a month (if for an outing or a
family meal).
Pizza hut is really cheerful place for fun with family.
Dominos is always open for a couple or for friends.
Pizza hut is somehow royal, they think customer should come to them
at their own.
Conclusion:
Comparing both pizzas lies on certain criterias. It is quite evident that
Pizza Hut is more superior to Dominos Pizza when it comes to taste,
while Dominos Pizza boasts at its affordability and average but
satisfying product. But other things still matter in winning over a
customer or an avid pizza-eater. One is convenience. Since Dominos
has a lot of branches worldwide, one can easily spot a Dominos outlet
compared to Pizza Hut, thus people tend to go for what is closest.
Another is value and obviously Pizza Hut gives more value thus more
costly. Menu selection also matters to people who want variations and
Dominos basically fail in this category if compared to Pizza Hut.
But to remember one of the main factors which sell a product/service
especially in India is Price, Convenience, and affordability. On
which Dominos scores ahead, they ticked all the right boxes which
makes their products and services sell. And not to forget their effective
promotions via different channels which makes the biggest difference.
So, Dominos might not have some of the Strengths of pizza hut but
they are the winner in this argument as chosen by most of the
consumers in its segment, Thanks to their marketers.
Justification:
Pricing strength due to strong brand franchise.
More and more listings in this space likely to lead to compression of
the scarcity premium
JFW is the only listed company in the Indian Food Service Industry. Hence, stock
has been trading at premium to other listed FMCG companies. with listing of
businesses like Caf Coffee Day (CCD), Devyani International Ltd (DIL) (franchise
partner of Pizza Hut, KFC, Costa Coffee in India) and Starbucks (JV with Tata
Global Beverage Ltd) and other specialty restaurant chains over the next two
years, the investors would have alternate opportunities to invest within Indian
Food Service space. This is likely to lead to a squeeze the valuation premium for
JFW
Delivered in 30 minutes:
JFW is the market leader in organized pizza home delivery segment in India with
maximum market share. The service proposition created by Dominos is very
difficult to replicate by the small, unorganised players as well as the organised
players. the market leadership along with the quick service proposition enables
the company to be a price leader.
Deep pockets for advertising and promotion:
The well-established brand Dominos will always have a high recall factor as
compared to other players due to ability of the company to spend heavily on
advertising and promotion expense. Having invested into the brand over
the last few years, and delivered on the product quality and the
timelines, it has build the right perception of khusyion ki home
delivery; JFW is well positioned to take reasonable price hikes. As
strong brand with high recall factors dont deter consumers to pay
premium, as its give him complete satisfaction in terms of quality,
service and mental satisfaction of being associated with big
international brand.
Create a good ambiance in outlets for those who want to eat there.
For Pizza-Hut
References:
http://www.retailmantra.com/yum-brands-pizza-hut-focus-in-india/
http://www.indiatribune.com/index.php?
option=com_content&view=article&id=9544:fastest-growing-market-fordominos&catid=123:business&Itemid=489
http://www.pizzanews.co.uk/dominos-pizza-plans-to-double-its-number-of-branchesin-india-122800/
Clifford, S. (2009). Video prank at Dominos taints brand. Retrieved January 25,
2010, from http://www.nytimes.com/2009/04/16/business/media/16dominos.html
Kotler, P. & Armstrong, G. (2008). Principals of marketing. Pearson Prentice
Hall. Upper Saddle River, New Jersey.
Laukens, D. (2010). The history of Dominos Pizza. Retrieved January 23, 2010,
from http://www.recipepizza.com/the_history_of_dominos_pizza.htm
Miranda, E. (2009). Internet marketing Franchises: Dominos Pizza. Retrieved
January 23, 2010,
fromhttp://www.wsicorporate.com/article/Franchises_dominos_pizza
http://www.sanjeevinsan.com/2010/11/pizza-hut-vs-dominos.html
http://tracksocial.com/blog/2012/05/social-media-pizza-war-dominos-vs-pizza-hut/
http://www.labnol.org/india/corporate/dominos-pizza-expanding-to-concentrate-ondine-in/1252/
http://www.pizzahut.co.in/dinein/aboutpizzahut.php
http://en.wikipedia.org/wiki/Domino's_Pizza
http://www.dominos.co.in/about_dominos.jsp
http://marketography.com/2010/03/09/dominos-pizza-beyond-the-dough/