Pizza Wars

Details

Themes: Marketing Mix
Period : 1996-2001
Organization : Domino's Pizza Hut
Pub Date : 2002
Countries : India
Industry : Food, Beverages & Tobacco

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Case Code : MKTG012
Case Length : 8 Pages
Price: Rs. 200;

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"We are not really competing with Domino's - we're not in the same category. Domino's is more delivery and take-aways, while we offer a complete dining experience in addition to delivery and take-away options."

- Pankaj Batra, Marketing Director, Tricon Restaurants, India.

"One has to take risks to reach economies of scale. Domino's also shook up competition when it reached a target of 100 outlets."

- Hari Bhartia, Co-Chairman, Domino's Pizza India.

Pizza Wars: Introduction

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's¹ and Pizza Hut², 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. (Refer Table I and II for market shares).

While Pizza Hut relied on its USP of "dining experience", Domino's USP was a 30-minute delivery frame. To penetrate the market, both the players redefined their recipes to suit the Indian 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 through out the country.

Domino's and Pizza Hut expanded their market ever since they entered India. Domino's had grown from one outlet in 1996, to 101 outlets in April 2001. Pizza Hut too, which began with just a single outlet in 1996 had 19 outlets in 2001.

Background

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.

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1] By 2000, Domino's had more than 6000 stores in the US and internationally.
2] Pizza Hut was a unit of Tricon Global Restaurants (Tricon) which included Kentucky Fried Chicken and Taco Bell.
3] Promoted by Bhartia brothers - Shyam and Hari - better known for chemicals and fertilizers.