New Pizza Hut
New Pizza Hut
New Pizza Hut
Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has KFC, Taco Bell, A & W and Long John Silvers under its umbrella. It is the worlds largest pizza chain with over 12,500 restaurants across 91 countries. Pizza Hut was started in 1958, by two brothers Frank and Dan Carney in Wichita, Kanas. They had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka, Kanas. Almost ten years later, Pizza Hut was serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990s Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign The Best Pizza under one roof. In 1996, Pizza hut sales in the United States were over $5 million. The first Indian outlet was opened in June 1996 in Bangalore. In India, Pizza Hut has 139 restaurants across 36 cities. Pizza Hut has been voted the best family restaurant for the second year running at the 2007 Tommys Parent Friendly awards. Pizza hut is known for quality, innovation and category leadership. Major products they offer are pizzas, appetizers, pastas, cakes and beverages.
The big three are: Pizza Hut Dominos Little Caesars Pizza hut is very predominant in the Midwest. They have no major competitors because the majority of the Pizza restaurants are small chains.
vegetarian dine-i8ns at Chowpatty (Mumbai), Ahmedabad and Surat, which also serves 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 localized 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 flavors. The Tandoori range of pizzas, which was developed locally, has a menu mix of over 20 per cent. Brand Purchase Intention Why Pizza Hut is preferred than other Variety of Pizzas Good ambience Services offered Quality of pizzas Locationof the Outlet Waiting time in the outlet.
Communication Mix Advertising Pizza Huts communication has also always struck a chord with th4e Indian customers. It is very first television commercial in India featured a boy and girl, who meet at a Pizza Hut restaurant in a traditional arranged marriage concept. They lose their inhibitions when the pizza arrives. When the sequel went on air featuring the same couple, now married, with the girls father consoling her over a pizza as her bridegroom waits outside the restaurant to escort her after their wedding the customers involvement was so complete that several wrote in to inquire whether the couple had children. The more recent campaign that was launched with the introduction of the Tandoori pizzas featured a typical Indian wedding procession abandoning the bridegroom when enticed by delicious aromas from a Pizza Hut restaurant. While the famous Good times start with great pizzas slogan has been prominent in the communication, the focus has remained on the best and most distinct pizzas. 3
Sales Promotion Pizzas Hut laid more emphasis on the restaurant dining experience. Pizza Hut localizes it menu to capture local Indian market. In 2000 Pizza Hut launched its innovative Pizza Pouch menu and Pizza Pouch Birthday Party package exclusively for kids in the 6-10 age groups It positioned itself as family restaurant and also concentrated on wooing kids. Public Relations In India, eating out is perceived as a form of entertainment which is why Pizza Hut servers not only serve our customers great food, they also sing and dance for them. And many of Pizza Huts customers would, we are certain, love to participate in this process. Giving them an opportunity to showcase their talent in the Jig n Jeeto contest. Events and Experiences Pizza Hut use their events to reach to the customer and often it is used as brand building as well as product selling. Direct and Interactive Promotion. Pizza hut provides many services online such as Birthday reminder service here people can save the birthday date of their friends relatives, and pizza hut will remind you the birthday date and birthday parties discount. Personal Selling Pizza huts try to attract the younger generation as their main market segment but they mainly target high and higher middle class customer. They actually bother about customers enjoyment and food not the price. Thus Pizza Huts concentrate more on carrying out above the line activities in the area it serves. Word of Mouth It is one of the traditional promotion for any industry. Pizza hut also get benefit from it.
Drescher, Spike Lee and Donald Trump in The Big New Yorker Pizza advertising campaign.
increasing their customer base. They all try to come up with some newer, bigger, better pizza for a low price. But Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be the first. One of their main
strategies, that they still follow today is the diversification of the products they offer. The market has become greatly competitive and the customer has become more discerning and adventurous. This however has not affected Pizza Huts comfortable reign over the Indian pizza industry and the ever increasing number of loyal customers who have made it possible for Pizza Hut to aggressively extend its presence. Pizza Hut is always adding something new to their menu, trying to reach new markets. For example, in 1992 the famous buffet was launched in Pizza Hut They were trying to offer many different food items for
restaurants worldwide.
customers who did not necessarily want pizza. Another strategy they used in the past and are still using is the diversification of their pizzas. Pizza Hut is always trying to make a pizza into something slightly different so that customers will think it is a whole new product, e.g. in 1983 Pizza Hut introduced Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Pizza Hut restaurants. In 1993, they introduced the Big Foot which was two square feet of pizza cut into 21 slices. In 1995, they introduced Stuffed Crust Pizza, where the crust would be filled with cheese. Currently, they are marketing The Big New Yorker, trying to bring the famous New York style pizza to the whole country using is the diversification of their pizzas. Pizza Hut is always trying to make a pizza into something slightly different so that customers will think it is a whole new product, e.g. in 1983 Pizza Hut introduced Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Pizza Hut restaurants. In 1993, they introduced the Big Foot which was two square feet of pizza cut into 21 slices. In 1995, they introduced Stuffed Crust Pizza, where the crust would be filled with cheese. Currently, they are marketing The Big New Yorker, trying to bring the famous New York style pizza to the whole country. 6
Mission & Vision Statement of Pizza Hut:Mission of Pizza Hut:Pizza Huts mission statement tells about purpose of existence of the brand in international as well as national market. They take pride in making perfect Pizza and providing customer and helpful service on timer all the time. To be the best pizza for every pizza occasion. Alone we are delicious together we are YUM!
Vision of Pizza Hut:To make the people know that for all the eating items they desire to eat can be made available in minimum time without much efforts and excluding money. To improve the well being of our customers, community and people connected to our enterprise. RUN GREAT RESTAURANTS.
SWOT Analysis
Pizza Hut
Strength 1. Unmatchable quality and variety 2. Strong Brand Image 3. Customer Satisfaction 4. Hygiene 5. Excellent Service Opportunity 1. Growing fast food market scope for expansion. 2. Introduce attractive offers 2. 3. 1.
Weakness 1. Inadequate advertisements 2. Inadequacy of outlets 3. High price 4. Lack of parking facilities at outlets.
Threat Emergence of Papa Johns Worlds Pizza Makers. Low Price points of competitors. No take away counters for pizzas.
Products
Pizza Hut
Pizza
Enjoyment
The Customer Value Hierarchy From the above diagram we can see that a person having a basic need of enjoyment can go to pizza hut and have pizza which is the companys core product. Hot pizza and good taste are his expectation. Thus the company should ensure this by providing good pizza. The value adds services refer to the overall dining experience, the service quality, ambience etc. Product Differentiation Worldwide and in India, pizza hut has come to become synonymous with the best pizzas under one roof. This is because at pizza hut the belief is that every pizza has its own magic, thus making it a destination product which everyone seeks. It is this belief that has ignited the passion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. Pizza hut is 9
committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. A critical factor in pizza huts success has been its unique dining experience. Crewmembers at pizza hut strive each day to provide customer mania the kind of service that ensures that every visit of the customer is a memorable one. 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 good item pizza hut 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. Some of the items are Pizzas (four different types) Pastas and salads Appetizers Desserts Beverages
Mass Customization The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customers mind and thus one can enjoy whatever pizza hut can offer. The most unique feature is that there is pan 4 all scheme where one can select 4 different types of vegetarian/non-vegetarian combinations of pizza. This is a unique way of offering as there are many customers who come in groups where someone in the group may want a non-vegetarian pizza can avail the offer. Conformance Quality: Pizza huts products have very high conformance quality i.e. All the products produced are identical and me3et the promised specifications. Style: Pizza is delivered in hot pans and served in style. The toppings in the pizzas are also dressed in a good fashion. Thus having food in style defines pizza huts 10
experience. Service Differentiation Ordering Case: 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 wihin15 20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Product Mixes Width: The companys total width of the product mix includes, pizzas, pastas,
appetizers, beverages and deserts. Length: The total number of items available in the companys offerings is 28. Chicken n spicy Chicken supreme Exotica Veggie Supreme Teekha Paneer Makhani Country feast Chicken Tikka Makhani Veggie Lovers Paneer el rancho Kadai Paneer These are the pizzas available in the menu. Kadai chicken Classic Favourite Margherita Simply Vegetarian. Fiery chicken Veggie crunch Spicy Veggie Chicken hawalian
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Arrabbiata Spicy tomato Creamy mushroom Spicy tomato with chicken Arrabiata with smoked chicken
Garlic bread Cheese garlic bread Garlic bread spicy supreme Garlic bread exotica
The desserts available in choco lava. The beverages available are not of pizza hut, they have coke and sprite as their beverages. Thus the total length of the product is 28 which does not include the
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Developing effective communication Target to age group/class Dominos target audience is a consumer who belongs to age group of 14 to 35 years from the Economic Class a or B and preferably one who has been exposed to the western culture as well as the western style of eating. They are people who are upwardly mobile and dont mind to pay for convenience. In this categor y teenagers are 13
the most affected by western culture and its eating habits. The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70% of the total class volume of pizzas in India. As far as the socio Economic class is concerned, since Dominos pizzas are priced from about Rs.80 onwards. However, Dominos have now come out with pizzas ranging from Rs.39 onwards to target the ever-increasing middle class consumers. Dominos has also segmented the market geographically by deciding to initially cater to only metropolitan cities and urban areas. They have left out the rural areas due to the low level of awareness regarding western dishes as well as typical Indian patter of eating. 30 min campaign This is a campaign in which Dominos offers its customers free Pizzas if they are not delivered in 30 minutes from the time of order. They have a store in a radius of 3 kms in major metropolitan cities. Anything which is far away from 3 kms doesnt fall in this category. Dominos latest special offer promises a hot and piping pizza delivered on door under 30 minutes, or its free. But minutes is a very short time for a typical Dominos Pizza local delivery, but its the latest special offer from Dominos in an effort to outdo the competition. Still, there are some cities where it must be really tough to make a Dominos Pizza local delivery, the cities where traffic congestion is a natural way of life.
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Design the communication: Message strategy Offers by dominos With every order of pizza and coke/garlic bread sticks get a dominos pasta for Rs.39 instead of Rs.69. Pasta is available in 2 variants: cheesy white and tangy red veg Rs.69/- & non veg Rs.79/Get garlic bread for only Rs.30/- with any of the pizza mania combinations. Dominos start providing coke/fanta/sprite. Dominos started pizzas mania which starts from Rs.35 and we get the toping according to our choice. Web coupons available at web site www.dominos.co.in Discount coupons are being provided with every item purchased. New schemes at regular interval of time according to the taste of the Indian customer. 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 also a new sales promotion strategy to attract more customers in a new perceptive/innovative way. Dominos has also come up with pasta mania.
Communication mix Every company must follows the eight major marketing communication modes. For Dominos direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Dominos always search for ways to gain efficiency by replacing one communication with others. The sustainability among communication tools explains why marketing function need to be coordinated. Advertising It reaches geographically dispersed buyers. Dominos vision is focused on Exceptional people on a mission to the best pizza delivery company in the world!. Dominos is committed to bringing fun and excitement to the lives of our customers by 16
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. Its all advertisement are image of core competencies. Their taglines The Pizza Delivery Experts and Hungry Kya? are showing their focusing area in promotion. Events/Experiences They are sponsoring some college fest, cultural program and promotional events throughout the country for promotion. Public Relation Dominos constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow effect (the feel good factor). Dominos believes strongly in the strategy of Think local and act regional. Thus, time and again Dominos has been innovating toppings suitable to the taste buds of the local populace and the Indian market has very well accepted these. Personal Selling Dominos constantly strive to make the company an integral part of the lives of the target audiences by getting involved with the clientele at the emotional level and building long term relationship with them. Thus, Dominos concentrate more on carrying out below the line activities in the area it serves. Sales Promotion a) In India, Dominos has been associated with the NGOs devoted to the cause of underprivileged ?Childrens. Dominos conducts Store Educational Tour (SET) for the underprivileged children time to time. b) Dominos Pizza India also boasts about its commitment to serve its customers on time by implementing the 30 Minutes OR FREE service commitment. c) They are continuously offering new incentives to the customers. Word of Mouth This tool is very powerful for promotion in the fast food industry. Low price and good behavior gave them the edge in India.
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Dominos
Strength 1. More outlets even in smaller towns. 2. Less than 30 minutes home Weakness 1. Lack of variety. 2. Outlets lack space 3. Ambience not up to expectations 4. No option for birthday parties and corporate lunches.
delivery. 3. 4. 5. 6. 7. Quick service at outlets. Customer Satisfaction Low Price. Excellent offers Good promotion. Opportunity 2. Growing fast food market Scope for expansion. 3. Introduce more varieties. 4. Bigger outlets 5. Take away counters
Threat 1. Emergence of Papa Johns Worlds # Pizza makers. 2. Better quality and variety of competitors. 3. No take away counters for Pizzas.
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Targeting
Pizza Hut In geographic segment they targeted countries where there were no pizza hut outlets. Initially opened in class 1 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 socioeconomic 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.
Dominos In geographic segment they targeted countries where there were no dominos 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 21 years), 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.
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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 dcor of all pizza hut outlets are good and the outlets are spacious. When customers think of party and decide to have pizza, pizza hut only comes into their mind. Pizza hut also customized birthday party invites with different themes for the customers to choose and use it as invitations. Dominos aim at fast home delivery of pizza. Whenever customers want to have pizza at home, they think of calling deminos 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 domino, 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. 23
Products
Dominos Pizza
Enjoyment
Food
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Product differentiation Dominos 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. Dominos believes strongly in the strategy of think local and act regional. Thus, time and again dominos 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.
Domino's Pizza Features 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 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 is a side dish. Some of the menu items are Pizzas Pasta & Salads Appetizers Desserts Beverages
Mass Customisation The main advantage of pizza hut is that one can customize his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customers mind and thus one can enjoy whatever pizza hut can offer. 25
The most unique feature is that there is single slice pizza scheme where one can select any vegetarian/non-vegetarian pizza at a lower cost. This is a unique way of offering as there are many consumers who would not afford a regular size pizza and hence they can have a slice of it. Conformance quality: Dominos products have very high conformance quality i.e. All the products produced are identical and meet the promised specifications. Style: Pizza is delivered in paper boxes and served in style. The toppings in the pizzas are also dressed in a good fashion. Thus having food quickly defines pizza huts experience. Service Differentiation Ordering Case: Once one enters the restaurant immediately the assistants initiates the ordering process by providing the menu. All associates as well trained in English and can take order from any customer. Delivery Dominos are the universal kings in serving pizzas at home. They brand their pizzas in that fashion only. Their motto is to serve the pizza at customers home. Dining for them comes as secondary. The company does not give importance to improve the dining standards. 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 have the food. Any pizzas delivered outside 30 minutes are given free. Also discount coupons are given to the customers in case one does not want a free pizza.
Product Mixes Width: The companys total width of the product mix includes, pizzas, pastas,
appetizers, beverages and deserts. Length: the total number of items available in the companys offerings is 29.
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Marghetita
These are the pizzas available in the menu Deluxe veggie Gourmet Cheese and barbeque chicken Barbeque chicken Spicy chicken Chicken Mexican red wave Kheema do pyaasa Chicken golden delight Meatzaa Cheese and pepperoni
Cheese and tomato pizza Double Cheese Marghetita Fresh Veggie Country special Farm house Peppy paneer Mexican green wave Vegetarian extravanza Non-vegetarian extravanza Cheesy white
The pastas and the appetizers available are Garlic bread Chicken wings Cheese dip
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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 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 and delivery neither they promote their in dining experience nor they spend revenue for it. Dominos 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. Creation, Communication and Capturing Value Dominos Pizza Dominos Pizza constantly strives to develop products that suit the tastes of its consumers and hence delighting them. Dominos believes strongly in the strategy of 28
Think Global and act local. Thus, time and again Dominos Pizza has 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 at affordable products to the consumers has been 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) 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 of 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.
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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.
Sustaining, building relationships and Exploiting Changing Conditions Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited to the Indian Palate. These products like Chicken Tikka, Spicy Korma, picy Paneer and the Masala and tandoori Pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and stuff crust in India, the menu offers the option of a complete meal. It includes appetizers, a Salad Bar where the customers can make their own fresh salads, a range of soups, pastas and desserts etc. Pizza Hut also has a community called as VIP Members joining this club is at no extra cost one can avail greater offers. Meanwhile Dominos are not behind Pizza Hut in introducing local delicacies they have different menu in different cities in India. Dominos believes strongly in the strategy of Think global and act local. Thus, time and again Dominos Pizzaa has been innovating with delicious new products such as crusts, toppings and flavours suitable to the taste buds of India consumers. Further, providing value for money at affordable products to the consumers has been Dominos motto. Also size of the pizzas are relatively large as compared to that of Pizza Hut. 30
The discount offers at Dominos are the main incentive to build long term relationship. Dominos also courier discount coupons at consumers home. This serve as an incentive for the customers to visit Dominos time and again. Rating of the Marketing Strategy Both the companies are good in achieving their goal and are equally good in achieving what they intend to. Tastes of pizzas of both the companies are good equally in their own sense. Marketing strategy of Pizza Hut is better that Dominos because they offer customers a holistic approach. Pizza Hut markets their product not only as a food but as an experience which is worth enjoying. People tend to remember experiences more than the food. Thus, overall Pizza Huts marketing strategy has and edge over Dominos.
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SCOPE
The scope of study covers consumption pattern & consumer satisfaction towards Pizza Hut & Dominos Pizza. This study restricted the Ludhiana city only.
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RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project without a proper well organized research plan it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not on talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods. Research Design: Research design specify the methods and procedures for conducting a particular study: According to Kerlinger, "Research design is a plan, conceptual structure and strategy of investigation conceived as to obtain answers to research questions and to control variance." Research Method: Exploratory Research The type of research adopted for study is exploratory. It includes questionnaires. In this deep study is done through questionnaires respondents give their response by filling up the questionnaires. Data Collection Method: After the research problem, we have to indentify and select which type of data is to research. At this stage, we have to recognize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary & useful data. There are two types of data collection methods: 1. Primary Data - Primary data is that which is originally collected from people. 2. Questionnaire - A questionnaire contains questions that the researcher whishes to ask from his respondents. 35
3. Survey - Surveys shows the preferences of respondents towards different products. 4. Secondary Data - Secondary data is also known as second hand data. It includes, journals, magazine and newspapers, book and web search. Sampling Techniques Target Market Upper Class Middle Class Upper Middle Class Lower Class Age This study includes all age groups. Sample Size 50 Respondents Data analysis and interpretation tool: Data Chart, Table, Graph, MS-Excel are used for analysis of data. Pie Chart Bar Chart
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ANALYSIS
1 How many times do you eat out. Time of Period Once in a month Twice in a month Once in week Twice in week Other Total Total No. of Respondents 18 12 13 7 50 %o of respondent 36% 24% 26% 14% 100%
14% 36% 26% 24% Once in a month 36% Twice in a month 24% Once in week 26% Twice in week 14%
Interpretation: 1. 36% of customers go to eat out once in a month. 2. 24% of customers go to eat out twice in a month. 3. 26% of customers go to eat out once in a week. 4. 14% of customers go to eat out twice in a week
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Place Hotels & Restaurant Fast Food Junctions Local Dhabas & Food Vendors Others Total
16%
Hotels & Restaurant 58% 58% Fast Food Junctions 26% Local Dhabas & Food Vendors 16%
26%
Interpretations 1. 58% of customers regularly visit to eat fast food in Hotels & Restaurants. 2. 24% of customers visit to eat fast food in food junctions. 3. 18% of customers visit to local dhabas and food venders to eat food.
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Interpretations 1. 66% of respondents prefer pizza's of Pizza Hut. 2. 34% of respondents prefer pizza's of Dominos 3. No one prefers another outlet.
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4. Which advertising media influences your buying behavior. Media TV Newspaper Pamphlets Word of Mouth Other Total Total No. of Respondents 29 6 4 11 50 %o of respondent 58% 12% 8% 22% 100%
22% TV 58% 8% 58% 12% Newspaper 12% Pamphlets 8% Word of Mouth 22%
Interpretation: 1. 58% of respondents get influenced by TV advertisement. 2. 12% of respondents get influenced by Newspapers. 3. 8% of respondents are influenced through pamphlets. 4. 22% of respondents are influenced by other customers of Pizza Hut & Dominos. 5. No one is influenced by any other media
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Prices
%o of respondent
38% 62% -
Total
50
100%
50
100%
Pizza Hut
70% 60%
62%
% of respondents
50% 40% 30% 20% 10% 0% Expensive average Resonable 0% 38% Expensive 38% average 62% Reasonable 0%
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Dominos
70% 60%
62%
% of respondents
50% 40% 30% 20% 10% 0% Expensive average Resonable 28% Expensive 28% average 62% 10% Reasonable 10%
Interpretation: 1. 38% of customers find the prices of Pizza Hut expensive .28% of customers find the prices of Dominos expensive. 2. 62% of customers find the prices of Pizza H ut average.62% of customers find the prices of Dominos average. 3. 10% of customers find the prices of Dominos reasonable.No customer responded in this category for Pizza Hut.
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12% 16% Veg Pizza 72% 72% Non-Veg Pizza 16% Both 12%
Interpretation: 1. 72% of customers prefer veg pizza. 2. 16% of customers prefer to eat non-veg pizza. 3. 12% of customers prefer to eat both veg and non-veg pizza.
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Services
%o of respondent
Pizza Hut
44
Dominos
Interpretation: 1. 50% of customers find the services of Pizza Hut excellent whereas 32% of customers find the services of Dominos excellent. 2. 32% of customers find the services of Pizza Hut very good and 48% of customers find the services of Dominos very good. 3. 18% of customers find services of Pizza Hut good whereas 20% of customers find services of Dominos good. 4. No one find services in Pizza Hut & Dominos poor. 5. Some people have nothing to say about their services.
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8. Are you satisfied with the home delivery & take away services of Pizza Hut & Dominos.
Customers
%o of respondent
74% 6% 20%
Total
50
100%
50
100%
Pizza Hut
46
Dominos
Interpretation: 1. 74% of customers are satisfied with the home delivery of Pizza Hut and 64% of customers are satisfied with the home delivery services of Dominos. 2. 6% of customers are not satisfied with the home delivery of Pizza Hut whereas 20% are not satisfied with Dominos. 3. 20 % & 16% of customer have nothing to say about Pizza hut & Dominos home delivery and take away services.
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9. Are you satisfied with the seating arrangement provided by Pizza Hut and Domins. Customers Total No. of Respondents (Pizza Hut) 42 6 2 %o of respondent Total No. of Respondents (Dominos) 29 18 3 %o of respondent 58% 36% 6%
84% 12% 4%
Total
50
100%
50
100%
Pizza Hut
48
Dominos
Interpretation: 1. 84% of respondents are satisfied with seating arrangement of Pizza Hut & satisfaction level of Dominos on other hand is 58%. 2. 12% of respondents are not satisfied with seating arrangement of Pizza Hut and dissatisfaction level of Dominos is 36%. 3. 4% of Pizza Hut & 6% of Dominos customers say nothing about their seating facilities.
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10. Are you satisfied with the pricing of strategy of Pizza Hut & Dominos.
Customers
%o of respondent
68% 26% 6%
Total
50
100%
50
100%
Pizza Hut
50
Dominos
Interpretation: 1. 68% of respondents says Yes & are satisfied with pricing strategy of Pizza Hut & 54% of repondentss are satisfied in the case of Dominos. 2. 26% of respondents are not satisfied with the pricing strategy of Pizza Hut 34% are not satisfied in the case of Dominos. 3. 6% of customers of Pizza Hut &12% of customers of Dominos have nothing to say about its pricing strategy.
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11. What do you think about the discount schemes offered by Pizza Hut & Dominos.
Discount schemes
%o of respondent
Pizza Hut
52
Dominos
Interpretation: 1. 40% respondents of Pizza Hut and 22% of Dominos think the discount schemes are very good. 2. 40% respondents of Pizza Hut and 42% respondents of Dominos think the schemes are good. 3. 20% of respondents of Pizza Hut & 36% of respondents of Dominos found the discount schemes normal. 4. No respondent thought that the discount schemes in Pizza Hut & Dominos was bad. 5. No respondent thought that the discount schemes in Pizza Hut & Dominos was very bad.
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12
Items
Simply veg Pizza Double Cheese Pizza Fiery Chicken Pizza Kadai Chicken Pizza
Total
Pizza Hut
50
25 21
Number of Respondents
20 15 10 10 5 0 Simply Veg Pizza Double Cheese Pizza Fiery Chicken Pizza Kadai Chicken Pizza 11 8
Simply Veg Pizza 21 Double Cheese Pizza 10 Fiery Chicken Pizza 11 Kadai Chicken Pizza 8
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Items
Cheese and Tomato Pizza Fresh Veg Pizza Spicy chicken Pizza Chicken Mexicana Pizza
Total
50
Dominos
20
17 15
Number of Respondents
15 11 10 5 0 Cheese & Fresh Veg Tomato Pizza Pizza Spicy Chicken Pizza Chicken Maxicana Pizza 7
Cheese & Tomato Pizza 15 Fresh Veg Pizza 17 Spicy Chicken Pizza 11 Chicken Maxicana Pizza 7
Interpretation: 1. In this survey, the highest rank is given to Pizza Hut's simply veg pizza. 2. In this survey, the highest rank is given to Dominos pizza's fresh veg pizza.
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13. Would you like to come again at Pizza Hut and Dominos.
Customers
%o of respondent
80% 12% 8%
Total
50
100%
50
100%
Pizza Hut
56
Dominos
Interpretation: 1. 80% of respondents would like to come back to Pizza Hut .46% are interested in coming back to Dominos. 2. 12% of respondents would not like to come back to Pizza Hut .40% are not interested to come back to Dominos. 3. 8% of respondents of Pizza Hut and 14% respondents of Dominos cannot say anything.
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1. Fast food consumption is more in Ludhiana and 36% people to go outside monthly for eating fresh food. 2. Preference of customers towards Pizza Hut is more than Domino's Pizza. 3. The pizza of Pizza Hut is on top of mind of customers. 4. Customers of Pizza Hut and Domino's pizza give more preference to services than any other key factor. 5. Customers are also move very choosy in buying the eatables and it is important for them to make loyal customer of their brand. 6. Pizza Hut and Dominos should focus on customers to create the awareness among different products. 7. Pizza Hut provide more discount schemes and offers than Domino's Pizza. 8. Most people give importance to quality of Pizza's
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LIMITATIONS
1. The research was conducted in very small area. 2. Time consuming process. 3. The customer filled the questionnaire mostly in careless manner so it was difficult to make there hold for time. 4. The sample size is also very small. 5. Difficulty in collection of secondary data.
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SUGGESTIONS
1. Domino's should improve their sitting arrangements. 2. Domino's should expand their restaurants because of consumption of fast food in Ludhiana City is more. 3. Domino's should improve their services. 4. Pizza Hut & Dominos need to set its prices according to customers. 5. Customers want improvement in varieties of Pizza's 6. Pizza Hut & Dominos need to spend more on advertisement. 7. Customer considers quality as their first preference, so the Pizza Hut Domino's pizza should give more stress on this. 8. Customers want improvement in varieties of veg pizza in Pizza Hut and Domino's pizza.
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BIBLIOGRAPHY
Research Methodology
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ANNEXURE
Dear Respondent, I am a student of BBA from Khalsa Institute of Management & Technology for Women conducting a survey and doing a research for a study for which I intend to pose a questionnaire aimed at analyzing "Comparative Study of Pizza Hut and Domino's Pizza" Your co-operation deeply solicited to provide the relevant information. I assure that information will be kept confidential. Name - _____________________ Q.1 How many times do you eat out? Once in a month Twice in a month Once in week Twice in week Other [ [ [ [ [ ] ] ] ] ] Contact No. __________________
Q.2
Which place do you regularly visit for eating food? Hotels & Restaurant Fast Food Junctions Local Dhabas & Food Venders Others [ [ [ [ ] ] ] ]
Q.3
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Q.4
Q.5
Which advertising media influences your buying behavior? TV [ ] Newspaper Pamphlets Word of Mouth Other [ [ [ [ ] ] ] ]
Q.6
How do you find the prices of Pizza Hut & Dominos? Pizza Hut Expensive [ ] Low Others Average [ [ [ [ ] ] ] ]
Dominos [ ] [ [ [ [ ] ] ] ]
Q7
Which type of pizza you prefer? Veg Pizza Non-Veg Pizza Both [ [ [ ] ] ]
Q8
How do you find the services of Pizza Hut and Dominos? Pizza Hut [ ] [ [ [ [ ] ] ] ] Dominos [ ] [ [ [ [ ] ] ] ]
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Q.9
Are you satisfied with the home delivery & take away services of Pizza Hut & Dominos? Pizza Hut [ ] [ [ ] ] Dominos [ ] [ [ ] ]
Q10
Are you satisfied with the seating arrangement provided by Pizza Hut and Dominos? Pizza Hut [ ] [ [ ] ] Dominos [ ] [ [ ] ]
Q.11
Are you satisfied with the pricing of strategy of Pizza Hut & Dominos? Pizza Hut [ ] [ [ ] ] Dominos [ ] [ [ ] ]
Q.12
What do you think about the discount schemes offered by Pizza Hut & Dominos? Pizza Hut [ ] [ [ [ [ ] ] ] ] Dominos [ ] [ [ [ [ ] ] ] ]
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Q.13
Rank the most preferred variety? Dominos Cheese & tomato Pizza Fresh Veg Pizza Spicy Chicken Pizza Chicken Mexicana Pizza
Pizza Hut Simply Veg Pizza Double Cheese Pizza Fiery Chicken Pizza Kadai Chicken Pizza
[ [ [ [
] ] ] ]
[ [ [ [
] ] ] ]
Q.14
Would you like to come again at Pizza Hut and Dominos? Pizza Hut [ ] [ [ ] ] Dominos [ ] [ [ ] ]
Q.15
Which type of Pizza would you like to suggest to your friends and family? ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________
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