INTRODUCTION

What is fast food?Fast food is a type of mass-

produced food that is prepared and served very
quickly it was first popularized in the 1950s in the
United States, and is typically less nutritionally
valuable compared to other foods and dishes.
Typically fast food refers to food sold in a
restaurant or store with preheated or precooked
ingredients, and served to the customer.

But in todays world it has some different meaning,

fast food are being taken as meals, the traditional
family dinner is increasingly being replaced by the
consumption of fast food. When it comes to take
fast food as meal than pizza is considered as the
best option.

One of the world's largest growing food type is Fast

Food. There is a increase of 40% in Indian fast food
industry. There is a vast increase of food industry in
India, the multinational segment of Indian food
industry was up to Rs. 20 billion which later in
2013 went up to Rs. 40 billion. Total foreign
investment in this sector in past 6 years stood at
Rs. 3600 million. Due to the great availability of
raw material for fast food, global chains are
flooding in the country.

Major players of Fast food are:

McDonalds

KFC

Pizza Hut

Dominos Pizza

Cafe Coffee Day

Barista

Subway

Papa Johns

Smoking Joes

Dominos and Pizza Hut both US fast food chain

restaurants entered India in 1996. they both
claimed that they had the original recipe as the
Italians first wrote it and was trying desperately to
create brandloyalty. Domino's and
Pizza Hut - tried to grab as large a market as possible.

WhilePizza Hut relied on its USPof "dining

experience",Domino's USPwas a 30-minutedelivery
frame. To penetrate the market, both the players
redefined their recipes to suit theIndian tastes.
Domino's went a step ahead by differentiating
regions and applying the taste-factor accordingly.
Domino's also made ordering simpler through a
single toll-free number throughoutthe country.

Domino's andPizza Hut expanded their market ever

since they entered India.Pizza Hut is theworld's
largest casual dining restaurant chain with over
13,000 restaurants across 97 countriesand 143
stores across 34 cities in India., including
Delhi,Mumbai, Bangalore,
Chennai,Kolkata,Hyderabad,Pune, and Chandigarh
and Yum! is in the process of openingPizza Hut
restaurantsat many more locations to service a
larger customer base across the country.

Today Domino'sPizza India has grown intoa

countrywide network of more than 300 stores with
a team of over 9,000 people. According tothe India
Retail Report 2009, Dominos were the largestPizza
chain in India and the fastestgrowing multinational
fast food chain between 2006-2007 and 2008-2009 in
terms of number ofstores.

PIZZA HUT

The Pizza Hut, an American restaurant and

multinational fast food a chain which was founded
by Dan Carney and Frank Carney in 1958 has
13,728 outlets all over the world expect locations
in China and India. It has 160,000+ number of
employees working under it. Pizza Hut is a
subsidiary of Yum! Brands, Inc. one of the world's
largest restaurant companies.
Pizza Hut current logo:

HISTORY
Pizza Hut was founded in June 1958 by two Wichita
State Universitystudents, brothers Dan and Frank
Carney. The oldest continuously operating Pizza
Hut was in Manhattan that came to an end in 2015.
The first Pizza Hut restaurant east of the Mississippi
was opened in Athens, Ohio in 1966 by Lawrence
Berberick and Gary Meyers.

There are number of international presence of

Pizza Hut that includes Canada and Mexico in North
America, India (not in the Pizza Hut division, but in
the Yum! India division), Bangladesh Pakistan,
Australia, United Kingdom, Sweden, Spain, Turkey,
Honduras, Costa Rica, El Salvador, Guatemala,
Colombia, Venezuela, Chile, Brazil, Peru,
Ecuador, and Nicaragua, and its Asian presence
includes Japan, Qatar, the Philippines, Vietnam,
Thailand, Malaysia, Indonesia, China (not in Pizza
Hut division, but in the Yum! China Division), Hong
Kong, South Korea, Myanmar, and Macau. Pizza Hut
was one of the first American franchises to open in
Iraq.
The company announced a rebrand that began on
November 19, 2014. The rebrand was an effort to
increase sales, which dropped in the previous two
years. The menu was expanded to introduce
various items such as crust flavors and eleven new
specialty pies. Work uniforms for employees were
also refreshed.

Concept
Pizza Hut is split into several different restaurant
formats; the original family-style dine-in locations;
store front delivery and carry-out locations; and
hybrid locations that have carry-out, delivery, and
dine-in options. Some full-size Pizza Hut locations
have a lunch buffet, with "all-you-can-eat" pizza,
salad, bread sticks, and a pasta bar. Pizza Hut has
other business concepts different from the store
type; Pizza Hut "Bistro" locations are "Red Roofs"
which have an expanded menu and slightly more
upscale options.

An upscale concept was unveiled in 2004, called

"Pizza Hut Italian Bistro". At 50 U.S. locations, the
Bistro is similar to a traditional Pizza Hut, except
the menu features new, Italian-themed dishes such
as penne pasta, chicken pomodoro, and toasted
sandwiches. Instead of black, white, and red, Bistro
locations feature a burgundy and tan motif.Pizza
Hut Bistros still serve the chain's traditional pizzas
and sides. In some cases, Pizza Hut has replaced a
"Red Roof" location with the new concept. "Pizza
Hut Express" and "The Hut" locations are fast food
restaurants. They offer a limited menu with many
products not seen at a traditional Pizza Hut. These
type of stores are often paired in location with a
sibling brand such as Wing street, KFC or Taco Bell,
and found on college campuses, food courts,
theme parks, bowling alleys, and in stores such
as target.

Vintage "Red Roof" locations, designed by architect

Richard D. Burke, can be found in the United States
and Canada; several exist in the UK, Australia, and
Mexico. In his book Orange Roofs, Golden Arches,
Phillip Langdon wrote that the Pizza Hut "Red Roof"
architecture "is something of a strange object
considered outside the realm of significant
architecture, yet swiftly reflecting shifts in popular
taste and unquestionably making an impact on
daily life. These buildings rarely show up in
architectural journals, yet they have become some
of the most numerous and conspicuous in the
United States today."

Curbed.com reports, "Despite Pizza Hut's decision

to discontinue the form when they made the shift
toward delivery, there were still 6,304 'traditional
units' standing as of 2004, each with the shingled
roofs and traoezoidal windows signifying equal
parts suburban comfort and strip-mall anomie."
This building style was common in the late 1960s
and early 1970s. The name "Red Roof" is
somewhat anachronistic now, since many locations
have brown roofs. Dozens of "Red Roofs" have
closed or been relocated or rebuilt.

Many "Red Roof" branches have beer if not a full

bar, music from a jukebox, and sometimes an
arcade. In the mid 1980s, the company moved into
other successful formats including delivery or
carryout and the fast food "Express" model.

DOMINOS
Domino's Pizza is an American pizza restaurant
chain and international franchise pizza delivery
corporation. Founded in the United States in 1960
by Tom Monaghan
James Monagha. Domino's is in 81 countries,
making it the second-largest franchised pizza chain
after Pizza Hut. Its headquarter is at the Domino
Farms Office Park (the campus being owned by
Domino's Pizza co-founder Tom Monaghan) in Ann
Arbor Charter Township, Michigan, United State.
There are 260,000 employees working in Dominos
all over the world as per 2015. It opened its first
international store in Winnipeg, Canada. The very
same year domino's opened its 1000th store all
over.
The operating income of dominos is $405.5million
USD as per 2015 and the net income is $306.2
million USD as per 2016.
The revenue generated by dominos is $2.2165
million USD.
Well thats a lot of money to make dominos
second largest franchised pizza chain
Dominos current logo:

HISTORY
In 1960, Tom Monaghan and his brother, James,
purchased DomiNick's, a small pizza store
in Ypsilanti, Michigan, near Eastern Michigan
University. The deal was secured by a $500 down
payment, and the brothers borrowed $900 to pay
for the store.The brothers planned to split the work
hours evenly, but James didn't want to quit his job
as a full-time postman to keep up with the
demands of the new business. Within eight
months, James traded his half of the business to
Tom for the Volkswagen Beetle they used for pizza
deliveries.By 1965, Tom Monaghan had purchased
two additional pizzerias; he now had a total of
three locations in the same county. Monaghan
wanted the stores to share the same branding, but
the original owner forbade him from using the
DomiNick's name. One day an employee returned
from a pizza delivery and suggested the name
Domino's. Monaghan immediately loved the idea
and in 1965 the DomiNicks Pizza was officially
renamed as Domino's Pizza, Inc.

The company logo originally had three dots,

representing the three stores in 1965. Monaghan
planned to add a new dot with the addition of
every new store, but this idea quickly faded, as
Domino's experienced rapid growth. Domino's
Pizza opened its first franchise location in 1967and
by 1978 the company expanded to 200 stores.In
1975, Domino's faced a lawsuit by Amstar
Corporation, the maker of Domino Sugar, alleging
trademark infringement and unfair competition. On
May 2, 1980, the Fifth Circuit Court Of
Appeals in New Oeleans found in favor of Domino's
Pizza.

INTERNATIONAL EXPANSION
On May 12, 1983, Domino's opened its first
international store, in Winnipeg, Manitoba,
Canada.That same year, Domino's opened its
1,000th store overall. In 1985, they opened their
first store in the United Kingdom in Luton.Also in
1985, Domino's opened their first store
in Tokyo,Japan. In 1993, they became the second
American franchise to open in the Dominican
Republic and the first one to open in Haiti, under
the direction of entrepreneur Luis de Jess
Rodrguez.By 1995, Domino's had expanded to
1,000 international locations. In 1997, Domino's
opened its 1,500th international location, opening
seven stores in one day across five continents.As
of February 11, 2016, Domino's operates 1004
stores across 230 cities in India.By 2014 the
company had grown to 6,000 international
locations and was planning to expand to pizza's
birthplace, Italy; this was achieved on October 5,
2015 in Milan with the first restaurant.

OBJECTIVE

i. To find out comparative analysis between

Dominos and Pizza Hut.

ii. To find out various forces and their results on the

industry.
iii. To find out market strategies of both the
brand.

iv.To find out which factors are more preferred by

the customers.

v. To find out preference of the people or the

consumers.

Market Shares and major players

Indian taste buds are demanding more and the
pizza industry is all set to give all what they have.
Over three million pizzas are being consumed in a
month, and it is estimated that this figure will get
doubled in next four years. According to industry
data branded quick service restaurant market
make a total sale of over Rs. 1,200 Crore, and the
pizza chains contribute around 50% of the sale that
is around Rs. 600 Crore.

The major player in the market are Pizza Hut and

Dominos whose shares are around 45% and 35%
respectively and other shares 20% of the market.

The major players of Pizza Industry are:

Pizza Hut

Dominos pizza
 Smoking joes

Gracias

Papa johns

US pizza

Major forces effecting the

industry
New Entrants

Supplier power

Buying power

Substitutes

Threat of new entrants

With the economic reforms and liberalization, many new
entrants also want the revenue of the200 billion Indian
fast food industries.
There are many new entrants in the branded pizza
industry some of them are
Papa johns pizza

Us pizza

Some Indian brands are:

Pizza Express
 Pizza Corner

Slice of Italy

These Indian brands have captured lot of

customers with there new style and discount
offer. The taste bud of young crowed are getting
modified, now the new entrants are more likely
to make there presence in small cities making
pizza hut and dominos to rethink about there
stratergies to retain there customers. Pizza Hut
and Dominos have to consistently acquire new
changes in there services so as to retain there
customers and to differentiate themselves from
the new entrants.

Substitutes

Presently in the market there are lots of

substitutes which are available in the market to
choose with respect to the fast food industry.

Some of them are:

McDonalds

Barista

Caf Coffee Day

Chinese Restaurants
 Other Restaurants

Largely it depends upon the customers what

they want to have. Generally it is assumed
that when people dine outside, they think of having
pizza at least 25% of time. Thus if the brand recall of
a particular company is good, more people will tend
to go there. Higher the quality of food, service,
higher will be product recall and sales.

Buyers Bargaining Power

Pizza hut and dominos have higher market reach

and greater visibility in the market with respect to
the pizza industry and hence they command
supplies at lower rate. However their counterparts,
competitors cannot command such lower prices.
Thus the muscle power of pizza hut and dominos is
way beyond the others

Supplies Growing Bargaining Power

Supplies till now were not a problem but with the

advent of the rising food costs (raw material
inflation).
Suppliers are not ready to supply items at the normal
rate. Thus suppliers muscle power grew only doe to
inflation. Thus the company either has to increase the
menu costs or reduce the operational costs to
recover. Failing to do this will make the company
into losses or to lose out in the industry.

Trends In The Indian Markets

Fast food outlets in India target childrens as their
major customers. They introduce varieties of things
that will attract the childrens attention and by
targeting childrens they automatically target their
parents because childrens are always
accompanied by their parents.

Low Level Customer Commitment

This industry faces low level of customer

commitment because of the large number of food
retail outlets and also because of the tendency of
customers to switch from one product to other.

Core Competencies

Dominos

30 MINUTES OR FREE service commitment.

Responsibility towards society

Association with NGO.

 Store Educational Trust.

CRY (Child Relief and You)

Pizza Hut
Offering Value Food

Wide Variety of Food

Competitors of Pizza Hut and

Dominos
Pizza Corner

McDonalds

Barista

Caf Coffee Day

Subway

Papa johns

KFC
Targeting

Pizza hut

In geographic segment they targeted countries

where there were no pizza hut outlets. Initially
opened in class i cities and then have now moved to
metros.
 In demographic segment their main target is
the young adults ranging from 25 years to40
years and also dual income earners family. They aim
basically at the upper middleclass and the high class
income families.
In psychographic segmentation they targeted
a1, a2, b1 socio-economic 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 2, metros and smaller towns.

In demographic segment their main target is

the teenagers and college students (13
to21years), 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.
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 decor 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 arranges kitty parties, birthday
parties and business meetings in their outlets.
Pizza hut has customized birthday party invites
with different themes for the customers to choose
and use it as invitations. Dominos aims at fast home
delivery of pizza. Whenever customers want to have
pizza at home, they think of calling dominos and
ordering for it because they are experts in home
delivery of pizza.
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.

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 as 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

& delivery neither they promote their in dining
experience nor they spend revenue for it.
Domino's 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
Domino's Pizza constantly strives to develop
products that suit the tastes of its consumers and
hence delighting them. Domino's believes strongly
in the strategy of Think global and act local. Thus,
time and again Domino's Pizza has been innovating
with delicious new products such as crusts, toppings
and flavors 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 or 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.
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.
 SWOT Analysis of
Pizza Hut

STRENGTH WEAKNESS

Unmatchable quality and Inadequate

variety advertisements

Strong Brand Image Inadequacy of outlets

Hygiene High Price

Excellent service Lack of parking facilities

 OPPORUNITY THREAT

Growing fast food market- Emergence of Papa johns

scope for expansion
Low price of competitors
Introduce attractive offer
No take away counters
for pizza

SWOT Analysis of
Dominos
 STRENGTH WEAKNESS

More outlets- even in small

Lack of variety
town

Less than 30 minutes home Outlets lack space

delivery
Ambience not up to
Quick service at outlets expectation

Customer Satisfaction No option for Birthday

parties or Corporate
Low Price lunches

Excellent Offers

OPPOTUNITES THREAT

Growing fast food market- Emergence of Papa johns

scoop for expansion
Better quality and variety
Introduce more varieties of competitors

Bigger Outlets No take away counters

for pizza
Take away counters
4Ps of Pizza Hut and
Dominos
PRODUCT
PIZZA HUT
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.

DOMINO'S
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.

PRICE
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

Company

Price Range (Rs)

Dominos

39-265

Pizza Hut

75-350

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.

PLACE
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.

PROMOTION
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.

Creative strategy
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.

Sales promotion
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.

SUCCESS FACTORS:
Pizza Hut
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
Good ambiance

Domino's
Door step services
Low pricing