Fast food is one of the worlds largest fast growing industry types. Indias fast food industry is growing by 40. The 6000crore 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 industry are:
Café coffee day
Comparing The Marketing Strategies of Pizza Hut and Domino’s
Good time start with great Pizza It entered India (Delhi) in June 1996
By Jan 2001 pizza hut had 19 outlet across India
Presently it has 142 outlets in 32 cities in India
Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries.
Employing more than 300,000 people. Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella.
It entered India (Delhi) in 1996 through a franchise agreement with Vam Bhartia Corp.
Speedy growth (1 outlet in 1996 & 101 outlets in Feb 2001)
Emphasis on home delivery
Today Domino’s Pizza India has grown into a countrywide network of more than 300 stores with a team of over 9,000 people. According to the India Retail Report 2009, Domino’s were the largest Pizza chain in India & the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores.
Dominos believes strongly in the strategy of Think local and act regional.
4P’s of PIZZA HUT AND DOMINO’S
Pizza hut has enjoyment as a basic product but it provides food for it. Thus a person having a basic need of enjoyment can go to pizza hut and have pizza which is the company’s 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.
Dominos has a food as a basic product but overall it provides an experience. Thus a person having a basic need of food can go to dominos and have pizza which is the company’s 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.
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, Dominos sourced its Pepperoni and Jalapeno needs from Australia and Spain respectively. However, with competition increasing from Pizza Hut, Dominos introduced price cuts, discounts and freebies to attract the customers.
PIZZA PRICE COMPARISON
Price Range (Rs)
Dominos was spending 50% of its total marketing budget on special offers and discounts along with delivered direct mailers and pizza training classes.
Dominos also had a tie-up with Discovery Channel under which the channel advertised its pizzas while Dominos put the channels name on its mailers.
Dominos conducted Pizza making classes for school students.
In1998, it offered a clock to all its customers who had bought Rs.15,000 worth of pizzas.
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.
Push and pull strategies in channel marketing:
In a push strategy, the manufacturer uses his sales force, trade promotion, money or other means to induce intermediaries to carry promote and sell its products to end users.
In a pull strategy, the manufacturer uses advertising, promotion and other forms of communication to persuade the customer to demand the product from intermediaries, thus inducing the intermediaries to order it.
Pizza hut: masters at pull strategy
Pizza hut follows more or less the opposite strategy. Pizza hut has mastered the art of pull strategy.
It pioneered the practice of advertising and promotion in the fast food industry.
Pizza hut achieved this remarkable feat by adopting a different marketing strategy that involved increasing ambiences and amusement for the customers.
Domino’s: pursuing a push strategy
Domino’s pursues a medium push strategy in its channel marketing.
The advertising layout for Domino’s is minimal in India.
Domino’s concentrates on incentivizing customers instead off advertising and promotion.
As a result, domino’s regularly introduces sell-in schemes(promotional schemes for dealers), promotional coupon, festival offers etc.
Promotional and advertisement campaigns
The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception, Domino’s had been known for its unique promotions that included fast delivery and innovations to cater to a varied palette.
Use of technology
Online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn.
Latest in domino’s
Kwality wall’s ice-creams in dominos- For the first time dominos started offering ice creams. Selling ice cream in Domino’s is also a new sales promotion strategy to attract more customer in a new perceptive/innovative way.
Domino’s has also come up with pasta mania.
Latest in pizza hut
Pizza Huts 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.
The first ad campaign on TV defines Pizza Hut as a brand, and what it offers to its existing and potential customers.
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.
Offering value food
Aggressive marketing and tie-ups with local and popular brands
Moving beyond metros
Developing the local supply chain
International brand with an Indian heart
Offering more than the international menu
Door step services
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. Comparing between the two, Pizza Hut remains favorite in due to its product quality and pricing.
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