Pizza Wars

GOING PLACES (LITERALLY)

By March 2000, Domino's opened 37 outlets all over India. Between April 2000 and February 2001, Domino's set up 64 more outlets in India. Delhi had the maximum number of outlets – 17, followed by Mumbai with 13. Domino's had the largest retail network in the fast food segment in India- with 101 outlets across 40 cities.

Domino's had a tie-up with a real estate consultant Richard Ellis to help with locations, conduct feasibility studies, and manage the construction. It was also looking at non-traditional outlets like large corporate offices, railway stations, cinema halls and university campuses. In early 2000, Domino's had opened an outlet at Infosys, Bangalore, which was very successful. It also had outlets at cinema halls – PVR in Delhi, Rex in Bangalore, and New Empire in Kolkata.

By January 2001, Pizza Hut had 19 outlets across India. In a move to expand further, Pizza Hut planned to open an additional five restaurants in Mumbai and 30 restaurants across major cities in India, by 2001 end. Tricon announced that the company would invest Rs.30 million on each of the restaurants. In March 2001, Pizza Hut opened its first three-storeyed 125-seater dine-in restaurant at Juhu in Mumbai. Said a company official, “We are expanding the number of restaurants across the major cities to cater to today's youth which has taken to pizzas as a cuisine.”

QUESTIONS FOR DISCUSSION

1. Domino's entered India at a time when Pizza Hut and McDonald's were already in the market. What was the strategy adopted by Domino's to make a dent in the Indian market?

2. ‘Database Marketing was an important part of the strategy in the Pizza Industry.'Comment.

3. Though Pizza Hut entered India before Domino's, it eventually lost its share to Domino's. How can Pizza Hut counter the competition from Domino's?

	Continued....


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