Dominoes and Pizza Hut-Pizza Wars

Until 1996, Pizza in India was synonymous only a bready dough base lathered 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. Each claimed it had the original recipe as the Italians first wrote it and was trying desperately to create brand loyalty. Domino's and Pizza Hut tried to grab as large a slice of the pizza pie as possible. While Pizza Hut relied on its Unique Selling Proposition (USP) of "dining experience", Domino's USP was a 30- minute delivery frame. To penetrate the market, both the players redefined their recipes to suit the Indian tastes. Domino's went a step ahead by differentiating regions and applying the taste- factor accordingly. Domino's also made ordering simpler through a single toll-free number through-out the country. Domino's and Pizza Hut expanded their market ever since they entered India. Domino's had grown from one outlet in 1996, to 101 outlets in April 2001. Pizza Hut too, which began with just a single outlet in 1996 had 19 outlets in 2001. Background Domino's entered India in 1996 through a franchise agreement with Vam Bhartia Corporation. The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino's had a presence in all the major cities and towns in India. Pizza Hut entered India in June 1996 with its first outlet in Delhi. By 2000, Domino's had more than 6000 stores in the US and internationally. Pizza Hut was a unit of Tricon Global Restaurants (Tricon) which included Kentucky Fried Chicken and Taco Bell. Source: https://www.icmrindia.org/free%20resources/casestudies/pizza-wars1.htm

QUESTION 1 (25)

With the above case study in mind, discuss all the significant factors that Pizza Hut and Dominoes would have had to take into consideration, in terms of the characteristics and buying behaviour of the emerging market consumer, before entering the Indian market.

QUESTION 2 (25)

It is important to constantly scan the macro environment for changes that could pose threats to the business. In your view, discuss what Demographic, Economic and Technological changes could affect Dominoes' growth in the Indian market.

QUESTION 3 (25)

To be branded in an emerging market products must be differentiated. Discuss the strategies that Dominoes adopted in India; and suggest other product differentiation factors that they can use to set them apart from their competitors.

QUESTION 4 (25)

Marketing Communications assists companies by contributing to brand equity and establishing the brand in the memory of customers. Marketing Communication also helps drive sales and affects shareholder value. Propose a Marketing Communications Mix for Pizza Hut to increase their sales and market share in India.