Pizza Hut and Dominos in India

pizza pie Hut and dominos in IndiaIn case training the topic is pizza wars which happen in India in 1996 when Pizza Hut dominoes come in India. Until that there is no M.N.C. ships lodge in Pizza industry in India. So each play along wants to make more profit and its right in India. For this each comp each launch advanced merchandise and new skims for took over the second company. So pizza hut relied on its USP of dining experience , and dominos USP was 30 minute lecture frame. For customer satisfaction both company change their recipes according to Indian culture. And Dominos equalwise made a toll free telephone service. Both the company started in India with only one effect but Dominos had 101 emergences in April 2001. And Pizza hut as well start with only one outlet but it had 19 outlets in 2001.Dominos entered in India with an certification agreement with Vam Bhatia and open its jump outlet in Delhi. Pizza Hut also opens its first outlet in Delhi.At that time Ind ian wants very low damage products but both of these company make costly products but very soon they relished it and make according to customers choice. By competition they gave galore(postnominal) discounts and customers enjoy it. Then Dominos become more popular than Pizza Hut so Pizza Hut start following Dominos and make Spicy Paneer and Chicken Tikka. It opens a pure vegetarian eating house at Ahmadabad. For attract people it make a 12 Pizza Rs 265 and Dominos decrease price and offered a large Pizza of Rs 129/-. After this sales of Dominos pizza was increase.HISTORY OF DOMINOS-Dominos Pizza, Inc. (NYSE DPZ) is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. estlistid in 1960, Dominos is the second-largest pizza image in the United States. Now it has nearly 8500 corporate and franchised salt aways in 70 international market places and all 45 U.S. states. Dominos Pizza was sold to Bain Capital in 1998. Dominos scorecard fea tures pizza, pasta, oven- bake sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a variety of dessert items.In 1960, Tom and his brother, James, purchased a small pizza store in, Michigan. The deal was secured by a US$75 down payment. In 1965, the first Dominos Pizza franchise store opened in Ypsilanti. The company logo was originally planned to add a new cluster with the addition of every new store. By 1978, the franchise opened its 200th store. In 1975, Dominos go around a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging trademark infringement and unfair competition. On whitethorn 2, 1980, a federal appeals court found in favor of Dominos Pizza.In a 2009 resume of consumer taste preferences among national chains, Dominos was last tied with Chuck E. Cheeses. In December that year, Dominos announce plans to entirely reinvent its pizza. It began a self-flogging ad campaign in which consumers were filmed criticizing the pizzas quality and chefs were shown developing the new product. The new pizza was introduced that same month, and the following year, Dominos 50th anniversary, the company acquired J. Patrick Doyle as its new chief executive officer experienced a historic 14.3% every quarter gain. The success was described by Doyle as one of the largest quarterly same-store sales jumps ever recorded by a major fast-food chain.PRODUCTS-Dominos tapped into a market cut down toward bite-size foods with spicy Buffalo Chicken Kickers, as an alternative to Buffalo wings. The breaded, baked, white-meat fillets, similar to chicken tenders, atomic number 18 package in a custom-designed box with two types of sauce to heat up and cool down the chicken.In August 2003, Dominos announced its first new pizza since January 2004, the Philly Cheese Steak Pizza. The product launch also marked the beginning of a partnership with the National Cattlemens Beef Association. Dominos continued its move toward posture pizzas in 2006, with the introduction of its Brooklyn Style Pizza, featuring a thinner crust, cornmeal baked in to add crispness, and large slices that could be folded in the style of traditional New York-style pizza.In 2008, Dominos once again branched out into non-pizza fare, offering oven-baked sandwiches in four styles. Early merchandise for the sandwiches made varied references to its competition, such as offering free sandwiches to customers named Jared, a reference to Subways spokesman of the same name.The company introduced its American Legends line of specialty pizzas in 2009, featuring 40% more cheese than the companys regular pizzas, along with a greater variety of toppings. That same year, Dominos began selling its Bread Bowl Pasta entree, a lightly seasoned bread bowl baked with pasta inside, and Lava Crunch Cake dessert. Dominos promoted the item by flying in 1,000 cakes to deliver at Hofstadter Bluffs Visitor Center.HISTORY OF PIZZA HUT-Pizza Hut entered India in 1996, and opened its first restaurant in Delhi. It has maintained an impressive growth rate of over40 per cent per annum. Pizza Hut now has about coulomb restaurants and employed nearly 4,000 people by end of 2004. It has invested about US$ 25 trillion in India this is over and above investments made by franchisees. Its Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, AW and Long John Silvers restaurants worldwide. Yum Generated more than US$ 25.9 billion in worldwide sales in the year 2003-04, and has more than35,000 restaurants in over 100 countries.Market share in INDIAPizza Hut is believed to have close to 50 per cent market share of the organized pizza-retailing segment market share in India.Financial performance jibe to an refresh of Financial Express, the market size of the pizza segment is around US$ 87 million and before long growing at the rate of 15 per cent to17 per cent per annum. According to P izza Hut sources, more or less of their outlets are financially successful encouraging further expansion. In India, the average investment for each outlet is US$ 275,000-335,000 and is borne by the franchisee.Factors for SuccessOffering value food, Employing economies of scale, Pizza Hut has made its offerings more affordable. Its delivery offer of US$ 4.4 for four personal pan pizzas has been very successful. They have recently introduced a crop of vegetarian personal pan pizzas for US$ 1.1. Most Pizza Hut restaurants are located in the metros and little metros. Pizza Hut is consolidating its position by opening more restaurants in the metros where it already has a front end as well as opening outlets in new markets.Moving beyond metros According to company sources, Pizza Hut is moving beyond the metros and foraying into 12 to 13 new markets including Trichy, Nagpur, Bhubaneswar, Thiruvananthapuram and Pondicherry to increase penetration. Aggressive marketing and tie-ups with local anaesthetic and popular brands.Pizza Hut has increased its visibility by launching a well-received TV campaign aimed at the young crowd. It has formed partnerships with recognized brands such as Nestle and Pepsi. Developing the local supply chain. The local supply chain for Pizza Hut was developed by Yum And currently 95 per cent of the ingredients they use are locally produced. They now import very few specialty items like pepperoni. Leveraging the India Advantage International brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chow patty (Mumbai), Ahmadabad and Surat, which also serve Jainist menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community.Because their members prefer not to eat at places where meat is served. Offering more than the international menu International food chains typically offer only a few localized produc ts in other parts of the world. However, Pizza Huts local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavors. The Tandoori range of pizzas. natural sourcing of raw materials Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a local company Dynamics Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese.CASE ANALYSISWhat Management Concept(s) or Issues are highlighted in this case?Ans. In this caseWhy did the company face these issues?Could the resolution of these issues be make in a different manner?What do you learn from this case?4. Are you aware of any other company that may have faced similar issues? How did that company resolve those issues?