Dominoes vs. Pizza Hut free essay sample

Dominos 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. Dominos and Pizza Hut tried to grab as large a slice of the pizza pie as possible. Dominos and Pizza Hut expanded their market ever since they entered India. Dominos had grown from one outlet in 1996, to over 500 outlets in April 2012. Pizza Hut too, which began with just a single outlet in 1996 has over 200 outlets in 2012. Dominos entered India in 1996 through a franchise agreement with Vam Bhartia Corp. The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. We will write a custom essay sample on Dominoes vs. Pizza Hut or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page By 2000, Dominos had a presence in all the major cities and towns in India. Pizza Hut entered India in June 1996 with its first outlet in Delhi. Positioning to customer needs When Dominos entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighbourhood fast food outlets. Eating out at branded restaurants was more prevalent. To penetrate the Indian market, Dominos introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Dominos was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain; Nirulas was the first to start free home delivery in 1994. But where Dominos stole the market was its efficient delivery record. GouthamAdvani, Chief of Marketing, Dominos Pizza India, said, What really worked its way into the Indian mind set was the promised thirty minute delivery. Dominos also offered compensation: Rs. 30/- off the price tag, if there was a delay in delivery. For the first 4 years in India, Dominos concentrated on its Delivery act. For its delivery promise to work, Dominos followed an 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its restaurant dining experience. It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound. A company official said, The Pizza making process takes about 20 minutes and since we dont usually deliver to places which are beyond the reachable-in-half-an-hour distance, customers can expect home delivery within 45 minutes. Moreover, analysts felt that Pizza was something that just was not meant to be delivered. Said Vivek Sure, Projects Manager, Pizza Express, If you dont eat pizza fresh, it turns cold and soggy. However, Dominos seemed to have overcome this problem through its delivery pack called Dominos Heatwave. Localizing the Menu Since its entry into India, Dominos introduced nine new toppings for Pizzas to cater to the local tastes. Different flavours were introduced in different parts of India. Advani said, The Indian palate is very definitive people are extremely finicky and choosy, not too willing to experiment. Food tastes vary from region to region. To capture the market, we had to localize flavours. Thus, Deluxe Chicken with Mustard Sauce and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken, MakhaniPaneer and the ChatpataChana Masala were confined to the North. Very soon, Pizza Hut followed Dominos and offered customized Spicy Paneer and Chicken Tikka toppings. Apart from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain menu, which did not have a single root-based ingredient to fit in with the food habits of Jains. Another city-specific adaptation of its menu by Pizza Hut was the restaurant in Hyderabad, (Andhra Pradesh) which offered Halal meat and chicken only with no beef and pork products in the menu. MARKETING MIX 1. PRODUCTS PIZZA HUT a. Product differentiation: Worldwide and in India pizza hut has come to become synonymous with the â€Å"best pizza’s 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 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 hut’s success has been its unique dining experience. Crew members 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. b. 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. Pizza hut differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas, range of pasta’s appetizers, cakes deserts etc. There are a large number of items to choose from. Some of the items are: * Pizza’s * Pasta and salads * Appetizers * Deserts * Beverages c. Mass Customisation: The main advantage of customisation is that one can customize his/her own pizza by selecting the bread and loading it with his/her choice of toppings. This creates variety in the customers mind and thus one can enjoy whatever he/she can imagine 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/no-vegetarian combination of pizza. This is a unique way of offering as there are many customers who come in groups where someone in the group may have different preferences. d. Conformance quality Pizza Hut products have high conformance quality all the products produced are identical and meet the promised specifications. e. Style Pizza is delivered in hot pans and served in style. The toppings are also dressed in a good fashion thus having ‘food in style ‘defines pizza hut experience. f. Service Differentiation * Dining: Once one enters a restaurant immediately the attendants initiates the ordering process by providing the menu. All associates are well trained in English and can take order from any type of customer. Pizza hut’s style of delivering the pizza is quite an experience. The restaurant is aesthetically designed. All the staff members are uniquely dressed, managers dressed specially. Also the tables and menus are all placed in a good manner. All orders placed are served within 15-20 minutes. * Delivery and takeaway:They have the concept of hot-dot in case of delivery, which means that the package is guaranteed to be delivered hot. There is a dot on the cardboard box that serves as a checking point as to whether the hot-dot status has been met or not. Also they place a tripod on top of the pizza at the centre so that the ceiling does not touch the toppings. DOMINOS a. Product Differentiation 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 it’s pizza’s within 30 minutes to its community of loyal customers from its entire chain of stores around the country. Dominoes vs. Pizza Hut free essay sample To penetrate the Indian market, Dominos introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Dominos was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain; Nirulas was the first to start free home delivery in 1994. But where Dominos stole the market was its efficient delivery record. GouthamAdvani, Chief of Marketing, Dominos Pizza India, said, What really worked its way into the Indian mind set was the promised thirty minute delivery. Dominos also offered compensation: Rs. 30/- off the price tag, if there was a delay in delivery. For the first 4 years in India, Dominos concentrated on its Delivery act. For its delivery promise to work, Dominos followed an 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. We will write a custom essay sample on Dominoes vs. Pizza Hut or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Pizza Hut, on the other hand, laid more emphasis on its restaurant dining experience. It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound. A company official said, The Pizza making process takes about 20 minutes and since we dont usually deliver to places which are beyond the reachable-in-half-an-hour distance, customers can expect home delivery within 45 minutes. Moreover, analysts felt that Pizza was something that just was not meant to be delivered. Said Vivek Sure, Projects Manager, Pizza Express, If you dont eat pizza fresh, it turns cold and soggy. However, Dominos seemed to have overcome this problem through its delivery pack called Dominos Heatwave. Localizing the Menu Since its entry into India, Dominos introduced nine new toppings for Pizzas to cater to the local tastes. Different flavours were introduced in different parts of India. Advani said, The Indian palate is very definitive people are extremely finicky and choosy, not too willing to experiment. Food tastes vary from region to region. To capture the market, we had to localize flavours. Thus, Deluxe Chicken with Mustard Sauce and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken, MakhaniPaneer and the ChatpataChana Masala were confined to the North. Very soon, Pizza Hut followed Dominos and offered customized Spicy Paneer and Chicken Tikka toppings. Apart from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain menu, which did not have a single root-based ingredient to fit in with the food habits of Jains. Another city-specific adaptation of its menu by Pizza Hut was the restaurant in Hyderabad, (Andhra Pradesh) which offered Halal meat and chicken only with no beef and pork products in the menu. Worldwide and in India pizza hut has come to become synonymous with the â€Å"best pizza’s 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 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 hut’s success has been its unique dining experience. Crew members 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. b. 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. Pizza hut differentiates itself with its competitors with respect to their wide range of offerings (menu items) one can find besides pizzas, range of pasta’s appetizers, cakes deserts etc. There are a large number of items to choose from. Some of the items are: * Pizza’s * Pasta and salads * Appetizers * Deserts * Beverages c. Mass Customisation: The main advantage of customisation is that one can customize his/her own pizza by selecting the bread and loading it with his/her choice of toppings. This creates variety in the customers mind and thus one can enjoy whatever he/she can imagine 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/no-vegetarian combination of pizza. This is a unique way of offering as there are many customers who come in groups where someone in the group may have different preferences. d. Conformance quality Pizza Hut products have high conformance quality all the products produced are identical and meet the promised specifications. e. Style Pizza is delivered in hot pans and served in style. The toppings are also dressed in a good fashion thus having ‘food in style ‘defines pizza hut experience. f. Service Differentiation * Dining: Once one enters a restaurant immediately the attendants initiates the ordering process by providing the menu. All associates are well trained in English and can take order from any type of customer. Pizza hut’s style of delivering the pizza is quite an experience. The restaurant is aesthetically designed. All the staff members are uniquely dressed, managers dressed specially. Also the tables and menus are all placed in a good manner. All orders placed are served within 15-20 minutes. * Delivery and takeaway:They have the concept of hot-dot in case of delivery, which means that the package is guaranteed to be delivered hot. There is a dot on the cardboard box that serves as a checking point as to whether the hot-dot status has been met or not. Also they place a tripod on top of the pizza at the centre so that the ceiling does not touch the toppings. DOMINOS a. Product Differentiation 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 it’s pizza’s 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 pizza’s 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 population and these have been very well accepted by the Indian market. Also they have their promotional campaign ‘ hungry kya ? ’ which means call up Domino’s at any time of the day 24/7 whenever you are hungry and have the food in 30 minutes. b. Pizza Features