Pizza Wars

<< Previous

Localizing the Menu Contd...

Very soon, Pizza Hut followed Domino's and offered customized Spicy Paneer and Chicken Tikka toppings. Apart from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain⁷ menu, which did not have a single root-based ingredient to fit in with the food habits of Jains. Another city-specific adaptation of its menu by Pizza Hut was the restaurant in Hyderabad, (Andhra Pradesh) which offered Halal⁸ meat and chicken only with no beef and pork products in the menu.

Pricing and Promotional Wars Domino's sold a 12" Pizza for Rs 265. (Refer Table III for price range). Commented Pankaj Batra (Batra), Manager (Marketing), Tricon International said, "Indians are value-, 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, Domino's sourced its Peperoni and Jalapeno needs from Australia and Spain respectively. However, with competition increasing from Pizza Hut, Domino's introduced price cuts, discounts and freebies to attract the customers. In 1998, Domino's introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. The demand was overwhelming and the company sold close to 5000 pizzas in the first week of its launch. During late 1998, both Domino's and Pizza Hut were trying to lure the customers with discount coupons by issuing such coupons through several schemes. Said an analyst, "Even then, the prices are too high.

Globally, fast food chains only succeed when they bring their prices down to the same level as the street food." However, both Domino's and Pizza Hut were concentrating more on data base marketing and below-the-line activities and special offers. Domino's was spending 50% of its total marketing budget on special offers and discounts along with delivered direct mailers and pizza training classes.

Domino's also had a tie-up with Discovery Channel under which the channel advertised its pizzas while Domino's put the channel's name on its mailers. Domino's conducted Pizza making classes for school students. In 1998, it offered a clock to all its customers who had bought Rs.15,000 worth of pizzas throughout the year. Said a company official, "Database marketing is an important part of our strategy. We have a special cell analyzing our database to look for repeat and loyal customers."

In 1998, Pizza Hut also launched a promotional campaign to attract the customers. It had a 'Pan In Your Name' contest where it offered a free pizza to anybody with the word Pan in his/her name - for example, Pankaj or Panandikar. In April 2000, Pizza Hut launched its innovative Pizza Pooch Menu and a Pizza Pooch Birthday Party package exclusively for kids in the 6-10 age group. Batra said, "There is a specific reason to cater to this segment.

Though, at this age, children are under their parents' guidance, they perceive themselves to be teenagers - and have the ability to choose or demand a particular brand of their own choice." The Pizza Pooch menu included a wholesome delicious meal and a gift for the child. The menu was intricately designed with pictorial games. A free set of crayons was also provided to keep the children occupied while their parents dined.

Next >>

---

7] One of the religious communities in India.
8] An animal killed for meat according to Muslim law.

---