Themes: Marketing Mix
Period : 1996-2001
Organization : Domino's Pizza Hut
Pub Date : 2002
Countries : India
Industry : Food, Beverages & Tobacco
Background Contd...
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. Pizza Hut had four company-owned franchisees - Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat, Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu) and Wybridge Holdings (Mumbai).
Positioning WarsWhen Domino's entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at 'branded' restaurants was more prevalent. To penetrate the Indian market, Domino's introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. |
For its delivery promise to work, Domino's followed a 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its "restaurant dining experience." It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound.
A company official said, "The Pizza making process takes about 20 minutes and since we don't usually deliver to places which are beyond the reachable-in-half-an-hour distance, customers can expect home delivery within 45 minutes." Moreover, analysts felt that Pizza was something that just was not meant to be delivered. Said Vivek Sure, Projects Manager, Pizza PizzaExpress, "If you don't eat pizza fresh, it turns cold and soggy." However, Domino's seemed to have overcome this problem through its delivery pack called 'Domino's Heatwave.'5
Since its entry into India, Domino's introduced nine new toppings for Pizzas to cater to the local tastes.6 Different flavors were introduced in different parts of India. Advani said, "The Indian palate is very definitive - people are extremely finicky and choosy, not too willing to experiment. Food tastes vary from region to region.
To capture the market, we had to localize flavors." Thus, Deluxe Chicken with Mustard Sauce' and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken, Makhani Paneer and the Chatpata Chana Masala were confined to the North.
4] In the US, where time management is clearly not the issue and the 30-minute delivery is taken for granted, the Total Satisfaction Guarantee is emphasized more. If one is not satisfied with its Pizza, Domino's either remakes it or gives a refund.
5] It was a hot bag introduced in 1998 that kept pizzas oven-hot till customer's doorstep.
6] Chatpata Chana Masala, Makhni Paneer, Butter Chicken, Chicken Chettinad, Chicken Pudina, and Mutton Ghongura, Deluxe Chicken with Mustard Sauce and Sardines.