Dominoes vs. Pizza Hut

Only available on StudyMode
  • Download(s) : 178
  • Published : October 20, 2012
Open Document
Text Preview
INTRODUCTION
The Indian fast food market has been witnessing rapid growth on the back of positive developments and presence of massive investments. Some of the unique properties of fast food like quick served, cost advantage, etc. are making it highly popular among the masses. Thus, India offers enormous opportunities for both domestic as well as international players. According to latest research report, the Indian Fast Food Industry is anticipated to grow at a CAGR of around 34% during 2011-2014. Anticipating the future growth, many big international players are entering into the market by making deals with the domestic players. And those already present in the Indian market are expanding their presence in different provinces of the country. The major Indian players in the fast food market are:

* McDonalds’
* KFC
* Pizza Hut
* Domino’s
* CCD
* Barista
* Subway
The Indian domestic pizza market is growing rapidly with number of foreign brands entering into the sector to seek business opportunities. In the current scenario, Indian consumers are increasingly shifting towards varieties of Pizza offered by the well-known brands. Further, huge untapped potential in rural and semi-urban areas, quick investment recovery, simple equipment and small investment to open a pizza outlet also contributes to the development of domestic pizza industry in India. Thus, the domestic pizza market in India is estimated to grow with a CAGR of around 26% during 2011-2014. The two main contenders in this highly competitive market segment is Domino’s and Pizza Hut.Until 1996, Pizza in India was synonymous only a bready dough base slathered with some ketchup. Since 1996, there was a proliferation of 'high-priced branded' pizzas in the market, with the entry of international pizza chains. Domino's and Pizza Hut, the two big US fast food chains entered India in 1996. Each claimed it had the original recipe as the Italians first wrote it and was trying desperately to create brand loyalty. Domino's and Pizza Hut - tried to grab as large a slice of the pizza pie as possible. Domino's and Pizza Hut expanded their market ever since they entered India. Domino's 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.Domino's entered India in 1996 through a franchise agreement with Vam Bhartia Corp.3 The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino's 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 Domino's 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, Domino's introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Domino's was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain; Nirula's was the first to start free home delivery in 1994. But where Domino's stole the market was its efficient delivery record. GouthamAdvani, Chief of Marketing, Domino's Pizza India, said, "What really worked its way into the Indian mind set was the promised thirty minute delivery." Domino's also offered compensation: Rs.30/- off the price tag, if there was a delay in delivery. For the first 4 years in India, Domino's concentrated on its 'Delivery' act. For its delivery promise to work, Domino's 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,...
tracking img