Marketing management - I

The brand strategy analysis exercise

In-depth comparative analysis of marketing strategies followed by
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GROUP ASSIGNMNT SU!MITT" !#-
ANITHA KAVEI ! "#""#
$%&'((' ! "#")#
KATHIK KI&HNAN ! "#"*#
+,,-A NAI ! "#".#
&ANKA A-AN ! "#"#/
&'0AN 1H,&H ! "#///
A0ITA &$H,,2 ,3 ('&INE&&4 ETTI0A5AI%
1
Contents
INTRODUCTION%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%3
REASONS FOR EMERGENCE%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%4
MARKET SHARE AND MAJOR PLAYERS%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%5
MAJOR FORCES SHAPING THE TRAJECTORY OF THE INDUSTRY%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%6
CUSTOMERS
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12
CORE COMPETENCIES
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13
ACCESS TO CRUCIAL RESOURCES
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15
SWOT ANALYSIS
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17
COMPETITORS
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19
CONTEXT
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21
SEGMENTATION
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23
TARGETING
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24
POSITIONING
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25
PRODUCT
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26
PLACE
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4
PRICING OF DOMINO!S
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44
PRICING OF PI""A HUT
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46
PROMOTION
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4#
MARKET FEED$ACK % CONTROL MECHANISMS
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59
ANALYSIS AND INTERPRETATION
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67
MARKETING STRATEGIES
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71
SUGGESTIONS
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75
REFERENCES
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76
2
INTRO"U$TION
3ast food is one of the world6s largest growing food types% India6s fast food ind7stry is
growing by *"8 %the m7ltinational segment of Indian fast food ind7stry is 7p to s% )"
billion4 a fig7re which is e9pected to :oom more than s%;" billion by )"/"% In last . years4
foreign investment in this sector stood at rs%;."" million which is abo7t one-fo7rth of total
investment made in this sector% (eca7se of the availability of raw material for fast food4
global chains are flooding into the co7ntry% The percentage share held by foodservice of total
cons7mer e9pendit7re on food has increased from a very low base to stand at )%.8 in )""/%
Eating at home remains very m7ch ingrained in Indian c7lt7re and changes in eating habits
are very slow moving with barriers to eating o7t entrenched in certain sectors of Indian
society% The growth in n7clear families4 partic7larly in 7rban India4 e9pos7re to global media
and western c7isine and an increasing n7mber of women <oining the workforce have had an
impact on eating o7t trends%
0a<or players in fast food are=
0c5onalds6
K3$
+i::a h7t
5ominos pi::a
$af> coffee day
(arista
&7bway
The main reason behind the s7ccess of the m7ltinational chains is their e9pertise in prod7ct
development4 so7rcing practices4 ?7ality standards4 service levels and standardi:ed operating
proced7res in their resta7rants4 a strength that they have developed over years of e9perience
aro7nd the world% The home grown chains have in the past few years of competition with the
mnc6s4 learnt a few things b7t there is still a lot of scope for improvement%
@E9tract taken from a st7dy of Indian retail food sector
3
RASONS %OR MRGN$
1ender roles=
gender roles are now changing% 3emales have started working o7tside% &o4 they have no time
for their home and cooking food% 3ast food is an easy way o7t beca7se these can be prepared
easily%
$7stomer sophistication and confidence=
$ons7mers are becoming more sophisticated now% They do not want to prepare food and
spend their time and energy in ho7se hold works% They are b7ilding their confidence more on
Aready to eat and easy to serve6 kind of foods
+a7city of time=
+eople have no time for cooking% (eca7se of emergence of working women and also n7mber
of other entertainment items% 0ost of the time either people work or want to en<oy with their
family%
5o7ble income gro7p=
Emergence of do7ble income gro7p leads to increase in disposable income% Now people have
more disposable income so they can spend easily in fast food and other activities%
2arge pop7lation=
India being a second largest co7ntry in terms of pop7lation possesses large potential market
for all the prod7ctsBservices% This res7lts into entry of large n7mber of fast food players in the
co7ntry% ela9ation in r7les and reg7lations4 with the economic liberali:ation of /##/4 most
of the tariff and non tariff barriers from the Indian bo7ndaries are either removed or
minimi:ed% This helped significantly the 0N$6s to enter in the co7ntry%
@E9tract taken from economic reforms in India
4
!&yer's bargaining ()*er
+i::a h7t and dominos have higher market reach and greater visibility in the market with
respect to the pi::a ind7stry and hence they command s7pplies at lower rate% However their
co7nterparts4 competitors cannot command s7ch lower prices% Th7s the m7scle power of
pi::a h7t and dominos is way beyond the others%
&7pplier6s growing bargaining power
&7pplies till now were not a problem% (7t with the advent of the rising food costs Craw
material inflationD% &7ppliers are not ready to s7pply items at the normal rate% Th7s s7pplier6s
m7scle power grew only doe to inflation% Th7s the company either has to increase the men7
costs or red7ce the operational costs to recover% 3ailing to do this will make the company into
losses or to lose o7t in the ind7stry%
Trends in the Indian market
0arketing to children
3ast food o7tlets in India target children6s as their ma<or c7stomers% They introd7ce varieties of
things that will attract the children6s attention and by targeting children6s they a7tomatically
target their parents beca7se children6s are always accompanied by their parents%
2ow level c7stomer commitment
(eca7se of the large n7mber of food retail o7tlets and also beca7se of the tendency of
c7stomer to switch from one prod7ct to other4 this ind7stry faces low level c7stomer
commitment%
Attracting different segments of the market
3ast food o7tlets are introd7cing varieties of prod7cts in order to cater the demands of each
and every segment of the market% They are introd7cing all categories of prod7ct so that
people of all age4 se94 class4 income gro7p etc can come and become a c7stomer of their food
line%
#
The s7ccess of fast foods arose from the changes in the economic conditions
/% 0any women or both parents now work
)% There are increased n7mbers of single-parent ho7seholds
;% 2ong distances to school and work are common
*% ThereEs often not eno7gh time or opport7nity to shop caref7lly for groceries4 or to cook and
eat with oneEs family% Especially on weekdays4 fast food o7tside the home is the only sol7tion
!rie+ hist)ry )+ the c)m(any, Indian )(erati)ns -d)min)s.
The domino6s brand was fo7nded in the 7nited states of America in /#." by Thomas and
-ames 0onaghan% &ince then4 that b7siness has grown into a global network of over F4G""
pi::a stores in more than ." co7ntries4 involving over )4""" franchises% ,ver its *#-year
history4 domino6s has developed a simple b7siness model foc7sed on delivering ?7ality pi::as
in a timely manner% 5omino6s pi::a4 inc%4 completed its initial p7blic offering in )""* and is
listed on the New Hork stock e9change% (source:dominos pizza, inc.)
5ominoEs pi::a India ltd% was incorporated in 0arch /##G as the master franchisee for India
and Nepal4 of dominoEs pi::a international inc%4 of '%&%A% 0oreover4 the company holds the
master franchisee rights for &ri 2anka and (angladesh thro7gh its wholly owned s7bsidiary%
0r%&hyam%&%(hatia and 0r%Hari%&%(hartia of the <7bilant organosys gro7p are the promoters
of the company%
5ominos pi::a India has a network of )I* stores4 in GG cities4 in )" states and 7nion
territories Cas on ;/st a7g7st )""#D% According to the India retail report )""#4dominos are the
largest pi::a chain in India and the fastest growing m7ltinational fast food chain between
)"".-)""I and )""F-)""# in terms of n7mber of stores%
5ominoEs vision is foc7sed on " exceptional people on a mission to be the best pizza delivery
company in the world! ". 5ominoEs is committed to bringing f7n4 happiness and convenience
to the lives of o7r cons7mers by delivering delicio7s pi::as to their doorstep in ;" min7tes or
less4 and its efforts are aimed at f7lfilling this commitment towards its large and ever-growing
c7stomer base%
5ominoEs pi::a constantly strives to develop prod7cts that s7it the tastes of its cons7mers and
hence delighting them% 5ominoEs believes strongly in the strategy of Ethink global and act
local6% Th7s4 time and again dominoEs pi::a has been innovating with delicio7s new prod7cts
9
s7ch as cr7sts4 toppings and flavors s7itable to the taste b7ds of Indian cons7mers% 37rther4
providing val7e for money at affordable prod7cts to the cons7mers has been dominos motto%
Initiatives s7ch as f7n meal and pi::a mania have been e9tremely pop7lar with cons7mers%
The brand positioning of kh7shiyon ki home delivery Chappiness home deliveredD is the
emotional benefit dominos offer to cons7mers%
0a<or prod7cts they offer are pi::as4 appeti:ers4 pastas4 cakes and beverages%
!rie+ hist)ry )+ the c)m(any, Indian )(erati)ns -(i//a h&t.
+i::a h7t was started in /#GF4 by two brothers frank and dan carney in wichita4 kansas% They
had the idea to open a pi::a parlo7r% They borrowed J."" from their mother4 and opened the
very first pi::a h7t% In /#G#4 the first franchise 7nit opened in topeka4 kansas% Ten years later4
pi::a h7t was serving one million c7stomers a week in their ;/" locations% In /#I"4 pi::a h7t
was p7t on the new york stock e9change 7nder the ticker symbol pi:%
'ntil /##I4 pepsi owned pi::a h7t4 the company also controlled a vast network of fast-food
operations that incl7ded kfc4 pi::a h7t4 and taco bell% Kith )#4""" locations across the world4
the resta7rant gro7p was the largest in the world% However4 pepsico decided to spin off its
resta7rant b7siness as a separate company%
+i::a h7t is one of the flagship brands of y7mL (rands4 inc%4 which also has kfc4 taco bell4
aMw and long <ohn silver6s 7nder its 7mbrella% +i::a h7t is the world6s largest pi::a chain
with over /)4G"" resta7rants across #/ co7ntries
In India4 pi::a h7t has /;I resta7rants across ;. cities4 incl7ding delhi4 m7mbai4 bangalore4
chennai4 kolkata4 hyderabad4 p7ne4 and chandigarh amongst others% H7mL Is in the process of
opening pi::a h7t resta7rants at many more locations to service a larger c7stomer base across
the co7ntry
Pi//a h&t 0isi)n and missi)n
Korldwide and in India4 pi::a h7t has come to become synonymo7s with the Abest pi::as
7nder one roof6% This is beca7se at pi::a h7t the belief is that every pi::a has its own magic4
th7s making it a destination prod7ct ! which everyone seeks% It is this belief that has ignited
the passion to create4 innovate and serve the finest prod7ct the ind7stry has to offer4 while
setting standards for others to strive to replicate%
1
+i::a h7t is committed for providing 7ncompromising prod7ct ?7ality4 offering c7stomers the
highest val7e for money and giving service that is warm4 friendly and personal% A critical
factor in pi::a h7t6s s7ccess has been its 7ni?7e dining e9perience% $rewmembers at pi::a
h7t strive each day to provide Ac7stomer mania6 ! the kind of service that ens7res that every
visit of the c7stomer is a memorable one%
A critical factor in pi::a h7t6s s7ccess has been a men7 that has constantly evolved and
e9panded to cater to the changing needs and specific preferences of c7stomers in different
parts of the world% In having 7nderstood the p7lse of the c7stomers in India4 pi::a h7t has
clearly established itself as a brand with an Indian heart% (esides offering an e9tensive range
of vegetarian pi::as4 it was the first pi::a chain to open a /""8 vegetarian resta7rant in India
in s7rat and later in ahmedabad and chowpatty4 where it offers a <ain men7 sans all root-based
ingredients%
,ver the years pi::a h7t has also developed and s7ccessf7lly introd7ced a range of prod7cts
especially s7ited to the Indian palate% These prod7cts like chicken tikka4 spicy korma4 picy
paneer and the masala and tandoori pi::as have been a tremendo7s s7ccess% Khat has also
given pi::a h7t acompetitive edge is that in addition to an e9tensive range of internationally
renowned pi::as like the Italian4 the proprietary pan pi::a and st7ffed cr7st4 in India the men7
offers the option of a complete meal% It incl7des appeti:ers4 a salad bar - where the c7stomers
can make their own fresh salads4 a range of so7ps4 pastas and desserts etc%
11
A$$SS TO $RU$IA1 RSOUR$S
The players behind the scene
Pi//a h&t
Korkforce of pi::a h7t is chosen with the motto Ntogether we growO with primary concern
being ?7ality of service4 be it in terms of delivery or ?7ality of pi::as% The employees
7ndergo e9tensive training to achieve technical finesse and leadership ?7alities% The newly
chosen chefs are trained by the older and more e9perienced ones for a period of abo7t )"
days% +i::a h7t takes pride in walking the talk with the leadership principles of y7m
resta7rants% These val7es incl7de c7stomer foc7s4 tr7st in people4 recognition4 acco7ntability4
e9cellence4 positive energy and team work% The c7stomer foc7s is so high that they have
separate systems in place to satisfy vegetarian c7stomers% Vegetarian dishes are prepared and
served 7sing separate green spat7las%
0oreover pi::a h7t is not <7st a hango7t :one for yo7ngsters% It organi:es birthday bashes4
kitty parties and corporate l7nches%
+i::a h7t considers its employees to be the greatest strength% 3rom the viewpoint of a
c7stomer it is the variety and taste of pi::as which is directly tied to its employeesL
The men7 remains constant thro7gho7t the co7ntry and varieties are <7st added% The newest
entrants into the Indian men7 were st7ff cr7st pi::as and cheesy bites
Vegetables4 meat4 and other additives are s7pplied by one common vendor%
")min)s
5ominos has been voted as the best employer by leading news daily4 times of India for the
year )""#% The chefs of dominos pi::a India are recr7ited by the hr department located in
noida after caref7l eval7ation% Employees at dominos are also smiling as they get incentives
on meeting sales target and are also credited for their performance%
5ominos has always been noted for the new items that spring 7p often in their men7%
0arketing department does a caref7l analysis of growing demands and changing tastes and
p7ts together the new men7 that tantalises palates4 says marketing head4 mr% Harneeth singh%
15
The men7 remains same thro7gho7t the co7ntry and so do systems and processes% National
level s7ppliers are a part of the dominos family% 5ominos firmly believe that it is these
systems and processes that enable it to get a better edge over its competitors%
5ominos takes pride in its 7nbeatable delivery system% 5elivery within ;" min7tes campaign
was indeed revol7tionary and is the best core competency that makes dominos pi::a a better
e9perience than anyone else in the market%
16
S2OT ANA1#SIS
Pi//a h&t
17
")min)s
1#
An analysis of the competitors of pi::a h7t and dominos
Keakness &trength
&7bway &till adapting to Indian taste Kings of sandwich markets
E9pensive $7stomi:ed preparations
+i::a corner 2ow investments in ad Variety
5elivery not satisfactory P7ality
Kfc 0ore of chicken4 less scope Variety masters for chicken
for veggies
0cdonald6s 2ess variety (7rger leaders
3ast service
0ore offers
+apa <ohn6s E9pensive E9cellent ?7ality
Variety
$cd $oncentrate more on P7ality
beverages4 less options on
snacks
E9pensive Variety in beverages
(arista $oncentrate more on E9cellent ambience
beverages4 less options on
snacks
E9pensive Variety in beverages
P7ality
2
SGMNTATION
Pi//a h&t
1eographic
egion ! pi::a h7t o7tlets in different co7ntries is a way of segmenting their market
according to region and finding o7t potential markets%
$ity ! they also segment the cities as class i4 class ii4 metros4 small towns%
5emographic
age ! 7nder /"years4 /" to /F years4 /F to )G years4 )G to *" years4 *"Q
years% family income ! middle class4 7pper middle class4 high class
d7al income earners ! yesBno
+sychographic
socio-economic class ! 7rban Ca/4 a)4 b/4 b)4 c4 dD
(ehavioral
occasions ! birthdays4 corporate l7nches4 marriages4 parties4 receptions
loyalty stat7s ! low4 medi7m4 high
7ser stat7s ! first time4 reg7lar4 non-7ser
")min)s
1eographic
egion ! dominos o7tlets in different co7ntries is a way of segmenting their
market according to region and finding o7t potential markets%
$ity ! they also segment the cities as class i4 class ii4 metros4 small towns%
5emographic
age ! 7nder /;years4 /; to )/ years4 )/ to ;G years4 ;G to G" years4 G"Q years%
family income ! lower middle class4 middle class4 7pper middle class4 high class
+sychographic
socio-economic class ! 7rban Ca/4 a)4 b/4 b)4 c4 dD
(ehavioral
loyalty stat7s ! low4 medi7m4 high
7ser stat7s ! first time4 reg7lar4 non-7ser
23
TARGTING
Pi//a h&t
In geographic segment they targeted co7ntries where there were no pi::a h7t o7tlets%
Initially opened in class i cities and then have now moved to metros%
In demographic segment their main target is the yo7ng ad7lts ranging from )G years
to *" years and also d7al income earners family% They aim basically at the 7pper
middle class and the high class income families%
In psychographic segmentation they targeted a/4 a)4 b/ socio-economic classes%
In behavioral segmentation they targeted for occasions s7ch as birthday bashes4
corporate l7nches% It was also fo7nd that they were targeting the first time 7sers
beca7se they felt that their ?7ality and taste wo7ld a7tomatically make them a loyal
c7stomer%
")min)s
In geographic segment they targeted co7ntries where there were no dominos o7tlets%
Initially opened in class ii cities and then have now moved to class i4 metros and
smaller towns%
In demographic segment their main target is the teenagers and college st7dents C/; to
)/yearsD4 yo7ng ad7lts ranging from )/ years to ;G years% They aim basically at the
middle class4 7pper middle class income families%
In psychographic segmentation they targeted a)4 b/4 b) socio-economic classes%
In behavioral segmentation it was fo7nd that they were targeting the first time 7sers
and also their reg7lar 7sers%
24
POSITIONING
+oints of difference
The ma<or point of difference between pi::a h7t and dominos is that pi::a h7t concentrates
on in-resta7rant dining% The ambience and decor of all pi::a h7t o7tlets are good and the
o7tlets are spacio7s% Khen c7stomers think of party and decide to have pi::a4 pi::a h7t only
comes into their mind% +i::a h7t also arranges kitty parties4 birthday parties and b7siness
meetings in their o7tlets% +i::a h7t has c7stomi:ed birthday party invites with different
themes for the c7stomers to choose and 7se it as invitations% 5ominos aims at fast home
delivery of pi::a% Khenever c7stomers want to have pi::a at home4 they think of calling
dominos and ordering for it beca7se they are e9perts in home delivery of pi::a% Nwe earn
."8 of o7r reven7e from home delivery of pi::as and *"8 from the resta7rant salesO 4 says
mr%navamani4 manager of dominos4 coimbatore v%o%c% +ark o7tlet% In case of pi::a h7t4 the
ma<or reven7e is from resta7rant sales%
+oints of parity
$ategory points of parity ! the main food item that is sold in pi::a h7t and dominos is pi::a%
As we all know4 pi::a comes 7nder the fast food category of foods4 both the companies m7st
be good in speed of making and service% Irrespective of the cost4 both pi::a h7t and dominos
has to deliver or serve pi::a in less time as compared to other main co7rse food items served
in other resta7rants%
$ompetitive points of parity ! competitive points of parity in case of pi::a h7t is that4 even
tho7gh pi::a h7t is costlier than dominos4 they have their own c7stomers4 who do not bother
abo7t spending4 b7t look for ?7ality and personali:ed service% Khen we visit pi::a h7t4 they
have resta7rant hostess who will assign 7s tables and introd7ce the steward who will be
taking care of 7s% This is generally a proced7re that is followed in five star category hotels
and pi::a h7t is also following it to emphasi:e on service ?7ality% In case of dominos4 they
are not costly as pi::a h7t and do not offer great ambience to c7stomers4 b7t offer good
pi::as at nominal price% They concentrate on t7rnover of covers and cater to c7stomers who
don6t have time to spend on food and <7st stop over for refreshment% 0oreover4 dominos
mainly looks into home delivery of pi::as and are e9perts in it%
25
PRO"U$T
P
A&&
'()*+,-.
+,/&0.+1)
23&0)
344)4
.)*1+/).
H
P+553
E,6'78),9
T
P
2
G
F
$
3rom the
above
diagram we
can see that
pi::a h7t has
en<oyment as
a basic
prod7ct b7t it
provides food
for it% Th7s a
person having
a basic need
of en<oyment
can go to
pi::a h7t and
have pi::a
which is the
company6s
core prod7ct%
Hot pi::a and
good taste are
his
e9pectation%
Th7s the
company
sho7ld ens7re
this by
providing
good pi::a%
The val7e
adds services
refer to the
overall dining
e9perience4
the service
?7ality4
ambience etc%
26
Pr)d&ct di++erentiati)n
Korldwide and in India4 pi::a h7t has come to become synonymo7s with the Abest pi::as
7nder one roof6% This is beca7se at pi::a h7t the belief is that every pi::a has its own magic4
th7s making it a destination prod7ct ! which everyone seeks% It is this belief that has ignited
the passion to create4 innovate and serve the finest prod7ct the ind7stry has to offer4 while
&etting standards for others to strive to replicate% +i::a h7t is committed to providing
7ncompromising prod7ct ?7ality4 offering c7stomers the highest val7e for money and giving
service that is warm4 friendly and personal% A critical factor in pi::a h7t6s s7ccess has been its
7ni?7e dining e9perience% $rewmembers at pi::a h7t strive each day to provide Ac7stomer
mania6 ! the kind of service that ens7res that every visit of the c7stomer is a memorable one%
+i::a feat7res
+i::a h7t has many 7ni?7e feat7res of their prod7ct d7e to which it attracts the c7stomers%
The prod7ct is classified into non d7rable goods as it is a food item pi::a h7t differentiates
itself with its competitors with respect to their wide range of offerings Cmen7 itemsD one can
find besides pi::as range of4 pastas appeti:ers4 cakes4 and desserts etc% There are ?7ite a lot
n7mber of men7 items to choose
&ome of the items are
+i::as C fo7r different typesD
+astas and salads
appeti:ers
5esserts
(everages
2#
0ass c7stomisation
The main advantage of pi::a h7t is that one can c7stomise his own pi::a by selecting the
bread and loading it with the toppings which one can select% This creates variety in the
c7stomers mind and th7s one can en<oy whatever pi::a h7t can offer%
The most 7ni?7e feat7re is that there is Apan * all6 scheme where one can select * different
types of vegetarian Bnon- vegetarian combinations of pi::aL This is a 7ni?7e way of offering
as there are many cons7mers who come in gro7ps where someone in the gro7p may want a
non- vegetarian pi::a can avail the offer%
$onformance ?7ality=
+i::a h7t6s prod7cts have very high conformance ?7ality i%e% All the prod7cts prod7ced are
identical and meet the promised specifications
&tyle=
pi::a is delivered in hot pans and served in style% The toppings in the pi::as are also dressed
in a good fashion% Th7s having A+))d in style' defines pi::a h7t6s e9perience%
Ser0ice di++erentiati)n
,rdering ease=
,nce one enters the resta7rant immediately the assistants initiates the ordering process by
providing the men7% All associates are well trained in english and can take order from any
c7stomer%
5elivery
+i::a h7t6s style of delivering the pi::a to the c7stomer is ?7ite an e9perience% The resta7rant
is aesthetically designedR all the staff members are 7ni?7ely dressed% 0anagers dressed in
special 7niforms% Also the tables4 men74 are all placed in a good manner% This on itself is
?7ite impressive% All orders placed in resta7rant is served within /G-)" min7tes and the take
away orders Cordered on phoneD is delivered within ;" min7tes% $are also has been taken by
the company to pack the pi::as in special covers so that it remains hot till the c7stomer haves
the food% Any pi::as delivered o7tside ;" min7tes are given free% Also disco7nt co7pons are
given to the c7stomer in case one doesn6t want a free pi::a%
29
Pr)d&ct mixes
Kidth= the company6s total width of the prod7ct mi9 incl7des4 pi::as4 pastas4 appeti:ers4
beverages and desserts
2ength= the total n7mber of items available in the company6s offerings is )F
These are the pi::as available in the men7
$hicken An6 spicy Kadai chicken
$hicken s7preme $lassic
E9otica 3avo7rite
Veggie s7preme 0argherita
Teekha paneer makhani &imply vegetarian
$o7ntry feast 3iery chicken
$hicken tikka makhani Veggie cr7nch
Veggie lovers &picy veggie
+aneer el rancho $hicken hawaiian
Kadai paneer
The pastas and the appeti:ers available are
Arrabbiata
&picy tomato
$reamy m7shroom
&picy tomato with chicken
Arrabbiata with smoked chicken
1arlic bread
$heese garlic bread
1arlic bread spicy s7preme
1arlic bread e9otica
The desserts available is choco lava
The beverages available are not of pi::a h7t4 they have coke and sprite as their
beverages
Th7s the total length of the prod7ct is )F which does not incl7de the beverages as it6s not their
prod7ct
3
5epth=
The depth refers to the no= of pi::as w hich are available in each variants% Ke can see that
Cfrom t he men7D fo r each variant a veget arian and a non vegetar ian pi::a are available %
$onsistency=
The consistency of the prod7 ct is the s ame as pi: :a h7t operates only i n the brand ed food
pi::a in d7stry%
Pr)d&c t line analysis
The co mpany has a basic platform for offering pi::a and have added on different mo d7les to
meet the ever cha nging c7stomer re?7ire ments% Th 7s the ma<or ch7nk of profits com es
from pi::as and pastas% Khile bev erages and desserts contrib7tion towards profits is to a
lesser e9tent%
+rod7c t line
C'*)
S 93:&).
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Th7s pi::a h7t promotes its pi:: a e9tensively and hence it forms the core pro d7ct for
marketing
+astas are classified as staples a s they do not get pro motion b7t they yiel d higher
margins fo r the compa ny
&pecialities for pi::a h7t is their dessert4 i%e% Tr7ffle cak e which is highly pro moted so
that the sales of the other items increases C birthday p artiesD% $on venience it ems are
mainly appeti:ers which have higher margin and generally tends for imp7lse b7ying
31
$)- branding
+i::a h7t has <oined hands with visa for availing vario7s offers% However this offer is only for
the in dining i%e% ,ne cannot avail the offers pertaining to visa for take away and home
orders%
A visa credit card holder can avail offers like family meal for a lower cost and select other
combinations of items which wo7ld have not been possible otherwise%
Th7s visa and pi::a h7t assist each other for branding themselves%
Packaging& labelling
The packaging of the pi::a has been ?7ite e9traordinary in the sense that4 it serves the basic
p7rpose of 3ser0ing h)t tasty (i//a'%
In ho7se dining
In ho7se dining4 the pi::as are not packed4 instead they are served in hot pans4 and plates are
provided to the c7stomers% The e9tra ingredients like oregano mi94 chilli flakes etc% Are kept
in a bottle having pores% Th7s the c7stomer can easily po7r the ingredients into the pi::a%
Take away orders
They are p7t in a paper bo9 neatly labelled with pi::a h7t brand logo% Also there is a plastic
s7pport given Cit6s in the shape of a tripodD at the bottom of the pi::a to prevent it from
sticking at the bottom% A pi::a h7t logo is also given in the tripod% The e9tra ingredients like
oregano mi94 chilli flakes etc% Are given in a paper po7ch which is also branded with the
pi::a h7t logos%
Home delivery orders
All the pi::as covered in paper bo9es described above are packaged into a special delivery
bags for retaining the heat% Th7s we can observe that from every labelling4 packaging the
company tries to imbibe the brand of pi::a h7t in the minds of cons7mers
32
d)min)s
All
offerings
incl7sive
23&0)
344)4
services
Hot pi::a4good to Eat
En<oyment
3ood
The c&st)mer 0al&e hierarchy
+otential +rod7ct-+i::a
h7t E9perience as a whole
Val7e add -A7gmented +rod7ct
1ood Taste- E9pected +rod7ct
3ood ! (asic +rod7ct
(asic e?7irement ! $ore
3rom the above diagram we can see that dominos has a food as a basic prod7ct b7t overall it
provides an e9perience% Th7s a person having a basic need of food can go to dominos and
have pi::a which is the company6s core prod7ct% Hot pi::a and good taste are his e9pectation%
Th7s the company sho7ld ens7re this by providing good pi::a% The val7e adds services refer
to the overall dining e9perience4 the service ?7ality4 ambience etc%
33
Pr)d&ct di++erentiati)n
5ominoEs pi::a India has maintained its position in the market with its constant prod7ct
innovation and maintenance of stringent service standards% 0ore importantly4 it has
established a rep7tation for being a home delivery specialist capable of delivering its pi::as
within ;" min7tes to its comm7nity of loyal c7stomers from its entire chain of stores aro7nd
the co7ntry% As the name s7ggests Athe pi::a delivery e9perts6 c7stomers can order their
pi::as by calling their hotline% 5ominoEs believes strongly in the strategy of Ethink local and
act regionalE% Th7s4 time and again dominoEs has been innovating toppings s7itable to the taste
b7ds of the local pop7lace and these have been very well accepted by the Indian market%
Also they had their promotional campaign 6h7ngry kyaS6which means call 7p dominos if one
is h7ngry and have the food in ;" min7tes%
+i::a feat7res
+i::a h7t has many 7ni?7e feat7res of their prod7ct d7e to which it attracts the c7stomers%
The prod7ct is classified into non d7rable goods as it is a food item% 5ominos differentiates
Itself with its competitors with respect to their wide range of offerings Cmen7 itemsD%one can
find besides pi::as4 range of pastas appeti:ers4 cakes4 and desserts etc% There are ?7ite a lot
n7mber of men7 items to choose% The 3chicken *ings' item has specially str7ck a chord with
a lot of cons7mers as s7ch a kind of item is not available in any other pi::a o7tlets% This item
is also perceived to be the tastiest of the lot% Indecently chicken wings is a side dish%
&ome of the men7 items are
pi::as
34
pastas and salads
Appeti:ers
5esserts
beverages
35
0ass c7stomisation
The main advantage of pi::a h7t is that one can c7stomise his own pi::a by selecting the
bread and loading it with the toppings which one can select% This creates variety in the
c7stomers mind and th7s one can en<oy whatever pi::a h7t can offer%
The most 7ni?7e feat7re is that there is Asingle slice pi::a6 scheme where one can select any
vegetarian Bnon- vegetarian pi::a at a lower cost% This is a 7ni?7e way of offering as there are
many cons7mers who wo7ld not afford a reg7lar si:e pi::a and hence they can have a slice of
it%
$onformance ?7ality=
5ominos prod7cts have very high conformance ?7ality i%e% All the prod7cts prod7ced are
identical and meet the promised specifications
&tyle=
pi::a is delivered in paper bo9es and served in style% The toppings in the pi::as are also
dressed in a good fashion% Th7s having A+))d 4&ickly' defines pi::a h7t6s e9perience%
Ser0ice di++erentiati)n
,rdering ease=
,nce one enters the resta7rant immediately the assistants initiates the ordering process by
providing the men7% All associates are well trained in english and can take order from any
c7stomer%
5elivery
+i::a h7t6s style of delivering the pi::a to the c7stomer is not ?7ite great% The resta7rant is
not so aesthetically designedR all the staff members are dressed in a not so attractive manner%
Also the tables4 men7s are all placed like in an normal Indian 7d7pi resta7rant% ,ne can find
that dining at dominos o7tlets is not that good% The food is good b7t the ambience isn6t%
However they are the &ni0ersal kings in serving pi::as at home% They brand their pi::as in that
fashion only% Their motto is to serve the pi::a at c7stomers home% 5ining for them comes as
secondary% The company doesn6t give importance to improve the dining standards% All orders
placed in resta7rant is served within /G-)" min7tes and the take away orders Cordered
36
on phoneD is delivered within ;" min7tes% $are also has been taken by the company to pack
the pi::as in special covers so that it remains hot till the c7stomer haves the food% Any pi::as
delivered o7tside ;" min7tes are given free% Also disco7nt co7pons are given to the c7stomer
in case one doesn6t want a free pi::a%
Pr)d&ct mixes
Kidth= the company6s total width of the prod7ct mi9 incl7des4 pi::as4 pastas4 appeti:ers4
beverages and desserts
2ength= the total n7mber of items available in the company6s offerings is )#
These are the pi::as available in the men7
0arghetita 5el79e veggie
$heese and tomato pi::a 1o7rmet
5o7ble cheese marghetita $heese and barbe?7e chicken
3resh veggie (arbe?7e chicken
$o7ntry special &picy chicken
3arm ho7se $hicken me9ican red wave
+eppy paneer Kheema do pyaasa
0e9ican green wave $hicken golden delight
Vegetarian e9travan:a 0eat:aa
Non-vegetarian e9travan:a $heese and pepperoni
$heesy white
The pastas and the appeti:ers available are
$heesy white pasta
Tangy red pasta
1arlic bread
$hicken wings
$heese dip
37
5epth=
The depth refers to the no= of pi::as w hich are available in each variants% Ke can see that
Cfrom t he men7D fo r each variant a veget arian and a non vegetar ian pi::a are available %
$onsistency=
The consistency of the prod7 ct is the s ame as pi: :a h7t operates only i n the brand ed food
pi::a in d7stry%
Pr)d&c t line analysis
The co mpany has a basic platform for offering pi::a and have added on different mo d7les to
meet the ever cha nging c7stomer re?7ire ments% Th 7s the ma<or ch7nk of profits com es
from pi::as and pastas% Khile bev erages and desserts contrib7tion towards profits is to a
lesser e9tent%
+rod7c t line
$ore +rod7ct &taples & pecialities
$onvenien ce
Items
+i::a +astas 5esserts
(everages and
Appteti: ers
Eg=+an4$heese E g=Tangy ed Eg=$hoco
Eg=$hicken
wings4 1arlic
+i::a +asta 2ava
(read
Th7s dominos promotes its pi::a e9tensively and hence it forms the core prod7ct for
marketing
+astas are classified as staples a s they do not get pro motion b7t they yiel d higher
margins fo r the compa ny
&pecialities for them is their dessert4 i%e% $h oco lava wh ich is highly promote d so that
the sales of the other i tems increases C birthday partiesD
$onvenience items are mainly ap peti:ers an d chicken *ings in partic7lar which has
higher margin and gen erally tend s for imp7ls e b7ying
3#
$)- branding
5ominos does not have any co branding or any tie 7ps with banks or credit cards% However
they promote only prod7cts of coca-cola%
Packaging& labelling
The packaging of the pi::a has been ordinary in the sense that4 it serves the basic p7rpose of
3ser0ing (i//a'%
In ho7se dining
In ho7se dining4 the pi::as are packed in paper bo9% +lates are not provided to the c7stomers%
The e9tra ingredients like oregano mi94 chilli flakes etc% Are given in a po7ch which the
c7stomers have to open man7ally% Th7s the c7stomer can finds this ?7ite a task to open the
po7ches as they are not easily removable% The main reason behind this is dominos classifies
itself as a take home B order from home pi::a and hence dining is not enco7raged%
Each paper bo9es are designed to deliver the branding of dominos and labelling is done ?7ite
well% All ingredient po7ches are also labelled%
Take away orders
They are p7t in a paper bo9 neatly labelled with dominos brand logo% The e9tra ingredients
like oregano mi94 chilli flakes etc% Are given in a paper po7ch which is also branded with the
dominos logos%
Home delivery orders
All the pi::as covered in paper bo9es described above are packaged into a special delivery
bags for retaining the heat%
Th7s we can observe that from every labelling4 packaging the company tries to imbibe the
brand of dominos Api::a delivered in ;"mins6 in the minds of cons7mers%
39
P1A$
,nce the prod7ct has been decided 7pon and the market segmented4 targeted and the prod7ct
positioned4 it is time to decide how and where the marketer can deliver the val7e Cprod7ctD to
the c7stomer% This is done thro7gh marketing channels that make the prod7ct available for
cons7mption to the c7stomer%
P&sh and (&ll strategies in channel marketing5
In a p7sh strategy4 the man7fact7rer 7ses his sales force4 trade promotion4 money or other
means to ind7ce intermediaries to carry promote and sell its prod7cts to end 7sers%
In a p7ll strategy, the man7fact7rer 7ses advertising4 promotion and other forms of
comm7nication to pers7ade the c7stomer to demand the prod7ct from intermediaries4 th7s
ind7cing the intermediaries to order it%
6. ")min)'s5 (&rs&ing a (&sh strategy
5omino6s p7rs7es a medi7m p7sh strategy in its channel marketing% The advertising
layo7t for domino6s is minimal in India% 5omino6s concentrates on incentivi:ing
c7stomers instead off advertising and promotion% As a res7lt4 domino6s reg7larly
introd7ces sell-in schemes Cpromotional schemes for dealersD4 promotional co7pon4
festival offers etc%
7. Pi//a h&t5 masters at (&ll strategy
+i::a h7t follows more or lesss the opposite strategy% +i::a h7t has mastered the art of
p7ll strategy% It pioneered the practice of advertising and promotion in the fast food
ind7stry% +i::a h7t achieved this remarkable feat by adopting a different marketing
strategy that involved increasing ambiences and am7sement for the c7stomers%
4
"irect and Indirect channels5
"irect channels5
The type of distrib7tion channel 7sed by +i::a H7t is the direct channel% The direct channel is
s7ccessf7l when there is an e9tremely large market that is geographically dispersed% The
direct channel is also 7sef7l when there are a large n7mber of b7yers4 b7t a small amo7nt
p7rchased by each%
")min)'s
The $ompany was incorporated in 0arch /##G% The 3irst 5ominoEs +i::a store in India was
opened in -an7ary /##.4at New 5elhi and today after fo7rteen years 5ominoEs +i::a India
has grown into a co7ntrywide network of over )I* o7tlets in GG cities4 in )" states and
7nion territories Cas on ;/st A7g7st )""#D % According to the India etail eport )""#4 we
were the largest +i::a chain in India and the fastest growing m7ltinational fast food chain
between )"".-)""I and )""F-)""# in terms of n7mber of stores4 which incl7des=-
North - 5elhi4 17rgaon4 $handigarh4 27dhiana4 Amritsar4 -allandhar4 5ehrad7n4 &himla4
Agra4 Kanp7r4 27cknow4 Noida4 3aridabad4 07ssoorie%
&o7th - $hennai4 (angalore4 Hyderabad4 $oimbatore4 0angalore4 $ochin4 &ec7ndrabad4
0anipal4
East - Kolkata
Kest - 07mbai4 +7ne4 Ahmadabad4 1oa
Pi//a h&t
It refers to the best place to offer program% That is the place where it is located and thro7gh
what channels are we distrib7ting programs and the competitive advantage lies in
distrib7tion% The pi::a h7t +eshawar is sit7ated o7t of the market area near Army &tadi7m
and &hami road% This site has been chosen keeping in view the following factors% It is in an
o7t of centre location on retail or 2eis7re +ark with good parking accessibility% &econdly the
catchment area is of a specified minim7m si:e and within a given drive time to the site%
+i::a H7t 7ses three different methods of selling its prod7cts directly to the market%
41
The first method of distrib7tion 7sed by +i::a H7t is Home% ,ffice delivery%
$7stomers can call +i::a H7t ahead of time4 place an order4 and the order is delivered
to the c7stomerEs home%
Another method of distrib7tion is for c7stomers to dine-in% $7stomers can go to the
nearest +i::a H7t4 place an order and either leave with the order or eat at the
resta7rant% ,ne of +i::a H7tEs largest competitive advantages is its resta7rant style
facility% +i::a H7t offers a clean place to sit down and en<oy the variety of pi::as4
salads4 and sandwiches in a f7n4 family atmosphere%
The third method of distrib7tion is to order ,nline% &elective $o7nty $7stomers can
now go on the Internet and place an order for +i::a% This method is 7sef7l beca7se it
allows c7stomers to view the entire men74 download any special co7pons4 and order
witho7t having to disclose any credit card n7mbers%
Indirect channels5
Indirect channels consist of one or more intermediaries between the man7fact7rer and the
final c7stomer% In India both 5omino6s and +i::a h7t do not introd7ce any indirect channel%
company
Raw material from
warehouse
Dealer
Consumer
42
Pi//a h&ts in India
Single and m&lti(le channels5
0ost organi:ations today employ m7ltichannel marketing i%e% selling to different cons7mer
segments thro7gh different channels% the fast food ind7stry too follows this method%
$hannel length5
$hannel length refers to the n7mber of channel intermediaries between the man7fact7rer and
the end 7ser in the fast food ind7stry4 based on the target c7stomer4
43
PRI$ING O% "OMINO'S
Indians are val7e-sensitive4 not price-sensitive% The price was attrib7ted to the high ?7ality of
ingredients 7sed% 3or instance4 5omino6s so7rced its +eperoni and -alapeno needs from
A7stralia and &pain respectively% However4 with competition increasing from +i::a H7t4
5omino6s introd7ced price c7ts4 disco7nts and freebies to attract the c7stomers% In /##F4
5omino6s introd7ced the +i::a 0ania scheme where it offered a large pi::a for s%/)#B-% The
demand was overwhelming and the company sold close to G""" pi::as in the first week of its
la7nch%
57ring late /##F4 both 5omino6s and +i::a H7t were trying to l7re the c7stomers with
disco7nt co7pons by iss7ing s7ch co7pons thro7gh several schemes% However4 both
5omino6s and +i::a H7t were concentrating more on data base marketing and below-the-line
activities and special offers%
In India 5omino6s is trying to attract the middle class and lower middle class people who are
interested to spend their money on pi::a b7t in low price% Those people are eager to go for a
o7ting in any festival and as a cheap family resta7rant 5omino6s wo7ld be most preferable%
They do not need high class ambiences or am7sement in the shop so the establishment cost is
low for the dealers and the price of pi::a is very reasonable for the c7stomer% 5omino6s do
not have any fi9ed c7stomer tho7gh they are one of the main competitors of the +i::a h7t%
PRI$ING O% PI88A 9UT
In the past4 +i::a H7t has s7ccessf7lly 7sed the highBlow pricing strategy when setting the
retail price of its prod7cts% The highBlow retail pricing strategy allows +i::a H7t to charge a
price that is above the competition4 b7t also promote fre?7ent sales to lower the price below
them% The highBlow pricing strategy has several advantages% 3irst4 this pricing strategy will
help segment the market% 5ifferent gro7ps of c7stomers are willing to pay different prices for
the same prod7ct% The highBlow pricing strategy will also creates e9citement% $7stomers will
be able to try something new when they p7rchase
3inally4 this strategy will emphasi:e prod7ct and service ?7ality% +i::a H7t sets a high initial
price for its prod7cts to send a signal to c7stomers that its prod7cts are ?7ality and the service
is e9cellent%
As there are no s7ch competitors of +i::a H7t which co7ld compete with the ?7ality of pi::a
prod7ced at +i::a H7t4 therefore4 the pricing strategy adopted by +i::a H7t is Emarket
skimmingE% +i::a H7t has adopted this pricing strategy as they want to hold ma9im7m
share of the market by ma9im7m profit% This is a golden era for +i::a H7t4 as
there are no competitors and hence4 +i::a H7t is free to charge any price they want%
They are charging higher prices d7e to the 7ni?7eness of the prod7ct% They satisfy the target
market as the food ?7ality is worth the price paid% The pricing strategy is not <7st to get the
worth of ?7ality b7t also to gain ma9im7m profits before any competitor enters beca7se then
+i::a H7t will have to change its pricing strategy%
Altho7gh the prices wo7ld be lowered with the new entrants in the market b7t not to a greater
e9tent as the ?7ality food prod7cts are not home-prod7ced% They are imported from different
co7ntries keeping in view the best ?7ality%
3irst4 this pricing strategy will help segment the market% 5ifferent gro7ps of c7stomers are
willing to pay different prices for the same prod7ct% The highBlow pricing strategy will also
create e9citement
46
PROMOTION
"OMINO'S
+romotion4 which is known as marketing comm7nication4 is a ma<or attrib7te for any prod7ct
or service% In modern marketing it is more than developing a good accessible prod7ct or
e9act pricing%
Ever since it was established4 5omino6s +i::a India has maintained its position of market
leadership with its constant prod7ct innovation and maintenance of stringent service
standards% 0ore importantly4 it has established a rep7tation for being a home delivery
specialist capable of delivering its pi::as within ;" min7tes to its comm7nity of loyal
c7stomers from its entire chain of stores aro7nd the co7ntry% $7stomers can order their pi::as
by calling a single co7ntrywide Happiness Hotline /F""-///-/);% In fact4 5ominoEs was the
first one to start this facility for its c7stomers%
5ominoEs is committed for bringing f7n and e9citement to the lives of o7r c7stomers by
delivering delicio7s pi::as to their doorstep in ;" min7tes or less4 and all its strategies are
aimed at f7lfilling this commitment towards its large and ever-growing c7stomer base%
!rand a*areness
+romotional and advertisement campaigns
The pi::a delivery b7siness had traditionally been promotion driven% $o7pons and disco7nts
were offered by all pi::a delivery chains to woo c7stomers% &ince its inception4 5omino6s
had been known for its 7ni?7e promotions that incl7ded fast delivery and innovations to cater
to a varied palette%
The E;" min7tesE promise
In the year /#I;4 5ominoEs began a g7arantee scheme that its pi::as wo7ld be delivered in ;"
min7tes or less of ordering failing which the c7stomer wo7ld receive the pi::a free%
!rand attit&de
'se of technology
,nline sales acco7nted for over I" percent of its total sales in )""F% 5ominos planned to
f7rther e9ploit the increasing potential of the online medi7m as one of the
promotional and distrib7tional channels in the downt7rn%
!rand (&rchase intenti)n
Khat makes domino6s pi::a better than its competitors
T Varity of +i::a6s
T &ervices offered
T P7ality of pi::a6s
T 2ocation of the ,7tlet
T Kaiting time in the o7tlet
T 5oor step services
T 2ow pricing
PI88A 9UT
+romotional &trategy=
+romotion is a form of corporate comm7nication that 7ses
vario7s methods to reach a targeted a7dience with a certain
message in order to achieve specific organi:ational ob<ectives%
Nearly all organi:ations4 whether for-profit or not-for-profit4 in all
types of ind7stries4 engage in some form of promotion%
Efforts may range from m7ltinational firms spending large s7ms on sec7ring high-profile
celebrities to serve as corporate spokespersons to the owner of a one-person enterprise
passing o7t b7siness cards at a local b7sinessperson6s meeting% $onse?7ently4 promotion
decisions sho7ld be made with an appreciation for how it affects other areas of the company%
!rand a*areness
+i::a H7t was among the first m7ltinational brands to enter the food retail sector in
India% Khen the first +i::a H7t resta7rant opened in (angalore the ?7ick service
ind7stry was at a nascent stage and the pi::a category was dominated by a sole
regional player who had a marginal presence%
The strength of +i::a H7t6s s7ccess globally lies in a marketing strategy that b7ilds
connections with c7stomer6s everyday in different parts of the world% 0any c7stomer
service initiatives have been 7ni?7ely developed for India and have been greatly
instr7mental in b7ilding an emotional bond with the c7stomer%
The crewmembers at +i::a H7t break into a (oogie at
resta7rants in 5elhi and 07mbai and do the (hangra
in $handigarh and Amritsar% Khile a bell hangs at each
+i::a H7t resta7rant4 which is r7ng by c7stomers who
as they leave wish to thank the servers for yet another
memorable visit%
+i::a h7t organi:ed the -ig n -eeto contest in 5elhi for the first time4 it received a
phenomenal response with s7per star 3ardeen Khan <7dging the show% +i::a H7t
hopes to contin7e this contest as a tradition for the years to follow%
!rand attit&de
International brand with an Indian heart
+i::a H7t is one of the first international pi::a chains with p7rely vegetarian dine-ins at
$howpatty C07mbaiD4 Ahmedabad and &7rat4 which also serve -ain men7s% +i::a H7t has
even opened two all-vegetarian resta7rants in the western state of 17<arat to cater to the
-ain religio7s comm7nity4 whose members prefer not to eat at places where meat is served%
,ffering more than the international men7
International food chains typically offer only a few localised prod7cts in other parts
of the world% However4 +i::a H7t6s local men7 is as large as the international one%
According to +i::a H7t4 the Indian food heritage is very rich4 and hence Indians like
local flavors%The Tandoori range of pi::as4 which was developed locally4 has a men7 mi9 of
over )" per cent%
55
!rand (&rchase intenti)n
Khy +i::a-h7t is preferred than other
Varity of +i::a6s
1ood ambience
&ervices offered
P7ality of pi::a6s
2ocation of the ,7tlet
Kaiting time in the o7tlet
MAR:T %"!A$: & $ONTRO1 M$9ANISMS
,n visiting 5ominos and +i::a H7t we had the opport7nity to interact with lot of c7stomers%
All the analysis is based 7pon the c7stomers of $oimbatore CTier II cityD perceptions may
change in different cities where the competition is more% 3or e9ample4 in 07mbai these two
pi::a o7tlets faces stiff competition with other pi::a companies C'& +i::a4 &moking -oe6s4
+apa -ohn6s4 1arcia6sD which do not e9ist in $oimbatore%
P7estions pertaining to the *p6s were asked some of the ?7estions are as follows
/D 5o yo7 have pi::a
)D How fre?7ently do yo7 like to have pi::a %Khere do yo7 like to have yo7r pi::aS
;D Khat is the fre?7ency of each
*D If yearly or rarely what are the reasons
GD If yo7 think of pi::a which brand of pi::a are yo7 thinking ofS Khy SC +rod7ct recall
and (rand recognitionD
.D Khich pi::a do yo7 prefer dominosB pi::a h7t B any other and for what reasonS
ID Kho are the principal decision makers in the b7ying process
FD Khat is the /st thing that comes into yo7r mind when yo7 hear abo7t 5ominosS
#D Khat are e9pected benefits apart from food like en<oyment service offersS
/"D &7ggestions if any
All the answers were <otted down and analysis was made% Interestingly there were a
lot of correlation between the c7stomers of +i::a H7t and 5ominos% These are all
e9plained in this section%
Also a common section of c7stomers are observed at each place% 5ominos attract
people who have a little less disposable income than the c7stomers at +i::a h7t
There were many s7ch instances where people preferred their choices d7e to their
wards
$oimbatore being a Tier II city also made a h7ge difference in the c7stomer b7ying
pattern%
59
ANA1 #SIS A N" INTRPRTA TION
MAR:TING STRATGIS
,verall both the companies achieve what they want to as for 5ominos they have achieved in
positioning themselves as the fastest serving pi::a o7tlet and ?7enching the h7nger%
+i::a H7t has come to become synonymo7s with the Abest pi::as 7nder one roof6% They have
positioned themselves for their 7ni?7e dining e9perience
Th7s from the market feedback4 it can be seen that even c7stomers feel the same as what the
company wants them to%
Strategic %)rm&lati)n
,verall $ost 2eadership4 5ifferentiation and 3oc7s
This is achieved very effectively by 5ominos as they do not intend to lose their foc7s from
delivering pi::as at home
5ominos (rand th7s relates mainly to service M delivery neither they promote their in
dining e9perience nor they spend reven7e for it%
5ominoEs vision is foc7sed on xceptional people on a mission to be the best pizza
delivery company in the world!!
Th7s 5ominos are able to provide good pi::as at relatively lower rate as they don6t spend
m7ch for the resta7rant
+i::a H7t6s +remi7m price
+i::a H7t is committed for providing 7ncompromising prod7ct ?7ality4 offering c7stomers
the highest val7e for money and giving service that is warm4 friendly and personal%
They stress heavily on the dining e9perience and the ambience
Th7s at each point company charges a premi7m
Th7s +i::as from +i::a H7t costs a premi7m hence their c7stomers also changes to high
income gro7ps%
71
$reation4 $omm7nication and $apt7ring Val7e
5ominos
5ominoEs +i::a constantly strives to develop prod7cts that s7it the tastes of its cons7mers and
hence delighting them% 5ominoEs believes strongly in the strategy of EThink global and act
local6% Th7s4 time and again 5ominoEs +i::a has been innovating with delicio7s new prod7cts
s7ch as cr7sts4 toppings and flavors s7itable to the taste b7ds of Indian $ons7mers% 37rther4
providing val7e for money at affordable prod7cts to the cons7mers has been 5ominos motto%
Initiatives s7ch as 37n 0eal and +i::a 0ania have been e9tremely pop7lar with cons7mers%
The (rand +ositioning of Kh7shiyon ki Home 5elivery CHappiness Home deliveredD is the
emotional benefit 5ominos offer to cons7mers%
5elicacies that do not rip wallets have always got the crowd coming back to the 5ominos
altho7gh its ambience is not 7p to that of its competitors% They have the ma9im7m offers with
respect to the disco7nts they offer thro7gho7t the year% Th7s the c7stomer has the ma9im7m
incentive to come back to 5ominos%
AH7ngry KyaS64 promotion where h7nger gets ?7elled in less than ;" min7tes was a great
val7e proposition % All other activities4 be it new variants4 great service4 timely deliveries or
more for the same price the effort of 5ominos has always been directed towards making its
c7stomers happy4 creating4 comm7nicating and delivering val7e%
+i::a H7t
Korkforce of +i::a H7t is chosen with the motto NTogether we growO with primary concern
being ?7ality of service4 be it in terms of delivery or ?7ality of pi::as%
A critical factor in +i::a H7t6s s7ccess has been a men7 that has constantly evolved and
e9panded to cater to the changing needs and specific preferences of c7stomers in different
parts of the world% In having 7nderstood the p7lse of the c7stomers in India4 +i::a H7t has
clearly established itself as a brand with an Indian heart% (esides offering an e9tensive range
of vegetarian pi::as4 it was the first pi::a chain to open a /""8 vegetarian resta7rant in India
in &7rat and later in Ahmedabad and $howpatty4 where it offers a -ain men7 sans all root-
72
based ingredients% 0oreover +i::a H7t is not <7st a hango7t :one for yo7ngsters% It organi:es
birthday bashes4 kitty parties and corporate l7nches
They also have a variety of combinations of men7 items which a c7stomer can choose so that
both the c7stomer and the company can have a win-win sit7ation% The company can have the
ma9im7m of the cons7mer s7rpl7s at the same time the cons7mer might feel that this was the
best offer%
3rom the men7 card one can see the family si:e variants and the different pi::a combinations
in the same one pi::a are all the different ways of pricing% The company attains the ma9im7m
profit in the meat items4 so they give the selection of pi::as slices of different varieties and
they are cl7bbed together to form a single pi::a%
,nce the c7stomer dines B orders U home4 normally disco7nt co7pons are given to the
c7stomer so that there is an incentive for the c7stomer to order from pi::a h7t% Th7s
c7stomers are forced to maintain loyalty towards pi::a h7t%
&7staining4 b7ilding relationships and E9ploiting $hanging $onditions
,ver the years +i::a H7t has also developed and s7ccessf7lly introd7ced a range of prod7cts
especially s7ited to the Indian palate% These prod7cts like $hicken Tikka4 &picy Korma4 picy
+aneer and the 0asala and Tandoori pi::as have been a tremendo7s s7ccess% Khat has also
given +i::a H7t acompetitive edge is that in addition to an e9tensive range of internationally
renowned pi::as like The Italian4 the proprietary +an +i::a and &t7ffed $r7st4 in India the
men7 offers the option of a complete meal% It incl7des appeti:ers4 a &alad (ar - where the
c7stomers can make their own fresh salads4 a range of so7ps4 pastas and desserts etc%
+i::a H7t also has a comm7nity called as AVI+- 0embers6 <oining this cl7b is at no e9tra cost
one can avail greater offers%
0eanwhile 5ominos are not behind +i::a H7t in introd7cing local delicacies they have
different men7 in different cities in India%
5ominoEs believes strongly in the strategy of EThink global and act local6% Th7s4 time and
again 5ominoEs +i::a has been innovating with delicio7s new prod7cts s7ch as cr7sts4
toppings and flavo7rs s7itable to the taste b7ds of Indian $ons7mers% 37rther4 providing
73
val7e for money at affordable prod7cts to the cons7mers has been 5ominos motto% Also si:es
of the pi::as are relatively large as compared to that of +i::a H7t%
The disco7nt offers at 5ominos are the main incentive to b7ild long term relationship%
5ominos also co7rier disco7nt co7pons at cons7mers home% This serve as an incentive for the
c7stomers to visit 5ominos time and again
ating of the 0arketing &trategy
(oth the companies are good in achieving their goal and are e?7ally good in
achieving what they intend to
Tastes of pi::as of both the companies are good e?7ally in their own sense
0arketing strategy of +i::a H7t is better than 5ominos beca7se they offer c7stomers
a holistic approach%
+i::a h7t markets their prod7ct not only as a food b7t as an e9perience which is worth
en<oying% +eople tend to remember e9periences more than the food%
Th7s4 overall +i::a H7t6s marketing strategy has and edge over 5ominos%
74
SUGGSTIONS
")min)s
The dining conditions have to be changed drastically if 5ominos have to target the
premi7m segment of c7stomers%
They are way behind +i::a H7t in the dining e9perience% &ome of the 5ominos
resta7rants lack even basic amenities
57e to this a condition can occ7r where c7stomers <7dge the ?7ality and taste of the
pi::a with respect to the resta7rant environment and ambience
Th7s to have a greater market share and tap premi7m segment of the market4
5ominos can provide good ?7ality resta7rants
There sho7ld also be provision for m7sic4 TV6s4 kids :one etc in the resta7rant
(y doing this they can even charge a little bit more on the food items
Pi//a h&t
ed7ce the men7 costsR it is way too e9pensive for a middle class Indian%
0iddle class forms the ma9im7m pop7lation of India and hence red7cing the costs of
pi::a can increase the elasticity of demand greatly
Invariably there are no disco7nts4 or disco7nts if offered are very less% Th7s +i::a h7t
sho7ld offer more disco7nts to tap more c7stomers
Their reach is very less as compared to 5ominos Cas they have only premi7m
resta7rantsD which deprives far off c7stomers from having +i::a H7ts e9perience%
Hence they sho7ld increase their presence
75
R%RN$S
lectronic "e#erences: lectronic $edia and %"&s ('(()). "etrieved
*ecember '+,'(() #rom dominos website, www%dominos%co%in
lectronic "e#erences: lectronic $edia and %"&s ('(()). "etrieved
*ecember ,(,'(() #rom pizza hut website, www.pizzahut.co.in
lectronic "e#erences: lectronic $edia and %"&s ('(()). "etrieved
*ecember '-,'(() #rom exchan.e/ media website,
www%e9change*media%com
0ournal : conomic "e#orms 1ndia, 2))'
lectronic "e#erences: lectronic $edia and %"&s ('(()). "etrieved
*ecember '+,'(() #rom esnips website,www.esnips.com34 "eview on
1ndian retail #ood industry.pd#
5elephonic conversations: $r.6arneeth 7in.h, $ar8etin. 6ead,
*ominos 9izza 1ndia &td., :oida
5elephonic conversations: $r. "ahul ;arma, <hie# $ana.er, 9izza
6ut, =an.alore
5elephonic conversations: $r.4so8 >umar 7ahu, *ominos 9izza 1ndia
76