Pizza Wars

Localizing The Menu Contd...

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.

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7] One of the religious communities in India.

8] An animal killed for meat according to Muslim law.

Case Details

Case Code : MKTG012
Themes: Marketing Mix
Case Length : 8 Pages
Period : 1996-2001
Organization : Domino's Pizza Hut
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Food, Beverages & Tobacco

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