Pizza Wars

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Pricing and Promotional Wars Contd...

Domino's supply chain management enabled it to cut costs. In late 2000, it revamped its entire supply chain operations (Refer Exhibit I). This enabled Domino's to slash prices. For instance, the price for a no-frills cheese pizza was down from Rs.75 to Rs.49. A 10" pizza with at least three toppings was available for Rs.119 as against the earlier price of Rs.225.

Brand Building Through Advertising Domino's and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific promotions. In August 2000, Domino's launched the 'Hungry Kya? (Are You Hungry)'9 sequence of advertisements on television. A company official said, "We realized that a Pizza couldn't be slotted – it could be a snack; then again, it could also be a complete meal" The only definitive common link between Domino's Pizzas and eating was the hunger platform. The launch of 'Hungry Kya?' campaign coincided with Domino's tie-up with Mahanagar Telephones Nigam Ltd. (MTNL) for the 'Hunger Helpline'. The helpline enabled the customers to dial a toll-free number (1600-111-123) from any place in India.

The number automatically hunted out the nearest Domino's outlet from the place where the call was made and connected the customer for placing the order. The number also helped Domino's to add the customer's name, address and phone number to its database. This was followed by Pizza Hut's first campaign on television in July 2001, which said, 'Good times start with great pizzas.'¹⁰

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9] A woman suggestively nibbles at her husband's ear as he surfs the Net. Eventually, he asks her in an irate voice:
"Hungry Kya?" She nods expectantly, so he advises her to order a Domino's Pizza. A roadside Romeo whistles
appreciatively at a young girl. She whips around, grabs him by the collar and asks him in a husky voice: "Hungry Kya?" –
and a voice over orders a Domino's Pizza.

10] The ad was woven around the traditional arranged marriage scenario, in which the parents of the girl after finding
a suitable boy for her fix up a meeting for them at Pizza Hut. The commercial begins with a man waiting for somebody
outside Pizza Hut, and is later seen practicing the way he would introduce himself. Meanwhile, the girl for whom the
man was waiting for, arrives and catches him unawares while he was talking to himself. Though both of them seem to
be apprehensive of each other, they eventually decide to order food. While the man orders for a veggie supreme pizza,
the girl opts for a Pepsi and salad. She is not able to resist the temptation when the pizza actually arrives. The pizza
acts as the catalyst and helps them get over their initial awkwardness and shyness. The commercial signed off with a
hint that the two of them are planning to share the rest of their lives, with the sign-off line saying, 'Good times start
with great pizzas.'

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