Pizza Wars*

            


Details

Case Code : CLBS018
Publication date : 2004
Subject : Business Strategy
Industry : Fast Food
Length : 04 Pages
Price : Rs. 50

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Key words:

Supply chain management, discounts, freebies, promotional campaign, ad campaign, franchisee, brand loyalty


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet gives an overview of the competition in the Pizza market. It focuses on the two big US Pizza chains, Domino’s and Pizza Hut. The caselet discusses the various positioning, pricing, promotion, advertising, and expansion strategies adopted by both the chains to garner a bigger share of the Pizza market in India.

Issues:

 » The various strategies of the major Pizza players in India.

 » How smaller companies in a highly competitive software industry can grow by focusing on the niche segments of the industry.

Introduction

Until 1996, Pizza in India was synonymous only a bready dough base slathered with some ketchup. Since 1996, there was a proliferation of ‘high-priced branded’ pizzas in the market, with the entry of international pizza chains.


Domino’s and Pizza Hut, the two big US fast food chains entered India in 1996. Domino’s entered India in 1996 through a franchise agreement with Vam Bhartia Corp. Pizza Hut entered India in June 1996 with its first outlet in Delhi.

Initially, the company operated company-owned outlets. However, keeping in line with its worldwide policy where Pizza Hut was gradually making a shift from company-owned restaurants to franchisee owned restaurants, Pizza Hut made the shift in India too...

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