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Pizza Wars: Domino's vs. Pizza Hut Strategy

Domino's and Pizza Hut initially restricted their advertising to banners and promotions. In 2000, Domino's launched its "Hungry Kya?" campaign coinciding with a toll-free helpline to order pizza. This helped Domino's build its customer database. Pizza Hut launched its first TV ad campaign in 2001. By 2001, Domino's had over 100 outlets across India, using various partnerships and non-traditional locations. Pizza Hut had 19 outlets but planned to expand to 50 by year's end. Both companies saw potential in India's youth adopting pizza as a cuisine.

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Sandeep Grewal
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24 views4 pages

Pizza Wars: Domino's vs. Pizza Hut Strategy

Domino's and Pizza Hut initially restricted their advertising to banners and promotions. In 2000, Domino's launched its "Hungry Kya?" campaign coinciding with a toll-free helpline to order pizza. This helped Domino's build its customer database. Pizza Hut launched its first TV ad campaign in 2001. By 2001, Domino's had over 100 outlets across India, using various partnerships and non-traditional locations. Pizza Hut had 19 outlets but planned to expand to 50 by year's end. Both companies saw potential in India's youth adopting pizza as a cuisine.

Uploaded by

Sandeep Grewal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

ASSIGNMENT

OF

MOS
ON

ADVERTISING CASE STUDY

SUBMITTED TO: SUBMITTED BY:

Mr. Satinder Kumar Sandeep Singh-5803-A


(Lecturer) Harpreet Singh-5807-A

SCHOOL OF MANAGEMENT STUDIES


PUNJABI UNIVERSITY, PATIALA
PIZZA WARS

Domino's and Pizza Hut initially restricted their ad strategy to banners,


hoardings and specific promotions. In August 2000, Domino's launched
the ‘Hungry Kya? (Are You Hungry)'sequence of advertisements on
television. A company official said, “We realized that a Pizza couldn't
be slotted – it could be a snack; then again, it could also be a complete
meal” The only definitive common link between Domino's Pizzas and
eating was the hunger platform.

The launch of ‘Hungry Kya?’ campaign coincided with Domino's tie-up


with Mahanagar Telephones Nigam Ltd. (MTNL) for the ‘Hunger
Helpline'. The helpline enabled the customers to dial a toll-free number
(1600-111-123) from any place in India. The number automatically
hunted out the nearest Domino's outlet from the place where the call was
made and connected the customer for placing the order. The number also
helped Domino's to add the customer's name, address and phone number
to its database.

This was followed by Pizza Hut's first campaign on television in July


2001, which said, ‘Good times start with great pizzas.' The ad was aired
during all the important programs on Star Plus, Sony, Sony Max, Star
Movies, HBO, AXN, and MTV. Pizza Hut planned to spend between
Rs.70-75 million on the ad campaign in 2001. Said Pankaj Batra, “The
first ad campaign on TV defines Pizza Hut as a brand, and what it offers
to its existing and potential customers. Once the awareness of
this message is high, we will focus on other facets of the brand and its
offerings.”

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?

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