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Pizza Wars

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TABLE I - MARKET SHARES: 1999

PIZZA CHAIN  MARKET SHARE (%)

Pizza Hut

 46.42

Domino's

 21.67

Others

 31.91

Source: Financial Express

TABLE II - MARKET SHARES: 2000

Pizza Chain  2000 Market Share (%)

Pizza Hut

 18

Domino's

 70*

Others

 12

Source: Business Standard, *As claimed by the company

BACKGROUND

Domino's entered India in 1996 through a franchise agreement with Vam Bhartia Corp. 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. Initially, the company operated company-owned outlets.

However, keeping in line with its worldwide policy where Pizza Hut was gradually making a shift from company-owned restaurants to franchisee owned restaurants, Pizza Hut made the shift in India too. Pizza Hut had four company-owned franchisees – Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat, Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu) and Wybridge Holdings (Mumbai).

Continued....


Vam Bhartia Corp : Promoted by Bhartia brothers – Shyam and Hari – better known for chemicals and fertilizers.

2001, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means - electronic or mechanical, without permission.

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PIZZA WARS
TABLE I - MARKET SHARE: 1999
TABLE II - MARKET SHARES: 2000
BACKGROUND
POSITIONING WARS
LOCALIZING THE MENU
PRICING AND PROMOTIONAL WARS
TABLE III - PIZZA PRICE COMPARISON
BRAND BUILDING THROUGH ADVERTISING
GOING PLACES (LITERALLY)
QUESTIONS FOR DISCUSSION
EXHIBIT I - SLICING OFF COST
ADDITIONAL READINGS & REFERENCES

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