Discusión y Conclusiones

Future plans According to Yum! Restaurants International, India is amongst the top five growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident about

expanding its operations in India. Pizza Hut hopes to increase the number of Pizza Hut outlets in India to 130 by the end of 2005 from the present figure of 95. The expansion programme will make Pizza Hut the fastest growing western restaurant chain in India. In addition, Yum! Plans Pizza Hut to be in 35 cities by end of 2005, and 55 cities by end of 2006. Pizza Hut India; Yum! Restaurants International:

AT A GLANCE

• Pizza Hut: Serving from 95 outlets in 24 cities of India. US$ 25 million investment

• A major player in the Indian fast food and beverage sector, holding about 50 per cent of the organized pizza market

• Factors for success: Offering value food. Moving beyond metros. Aggressive marketing and tie-ups with local and popular brands. Developing the local supply chain. Customizing product offerings

• For Pizza Hut, India is: one of the top 5 growth markets worldwide • Future plans, India: presence in 35 cities by 2005, 55 cities by 200

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Domino’s

In May 2001, Pavan Bhatia, CEO, Domino's Pizza India Ltd. (Domino's) stepped down from his post. Earlier, in March 2001, at a board meeting, Domino's top management concluded that 'Pavan Bhatia's performance during his 18-month tenure was not up to the mark.' The board felt that Pavan Bhatia had initiated an expansion strategy that was 'reckless and not properly thought out.' However, many analysts did not agree with the board's conclusion. They felt that the board was not considering the possible long-term benefits of Pavan Bhatia's strategy. During March 2000-January 2001, Pavan Bhatia opened Domino's outlets in small towns and cities. Pizza consumption in these places was very low. Analysts felt that even those willing to opt for the product found the price unacceptable. The cost per meal was too high. In September 2001, due to low footfalls and lower volumes, Hari Bhartia planned to shut down Domino's outlets not only in some small cities but also a delivery outlet in the wealthy Gujranwala Town in North Delhi. One of the two outlets in Ludhiana was also planned to be shut down. (Refer Exhibit I for post Pavan Bhatia strategy of Domino's)

Sky is the Limit

In November 1999, Pavan Bhatia took over as the CEO of Domino's. He seemed to be very ambitious and wanted to make Domino's the largest fast-food chain in India. Pavan Bhatia went about opening Domino's outlets across the country. The number of outlets multiplied four fold to 100 between March 2000 and January 2001. It was the fastest growth Domino's had in any of the 63 countries it operated in. From an

average of four stores every year in its first four years of operation, Domino's expanded to more than 100 outlets in 10 months across 30 cities.

Domino's entered into an agreement with a real estate consultant CB Richard Ellis to help with locations, conduct feasibility studies, and manage the construction. Pavan Bhatia said, "We are in the business of selling pizzas, not hunting for real estate. And one of the biggest impediments in retailing is real estate, so we decided to hand over the entire real estate operations to estate consultants CB Richard Ellis." Pavan Bhatia realized that fast track growth could be achieved only by focusing on the core business of selling pizza.

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Annexure

Questionnaire

Name: Gender: M / F E-mail ID: Mobile No. :

Age Group: a) Below 18 b) 18-28 c) 28-40

d) Above 40

Occupation: a) Student b) Business c) Service d) Housewife e) Any other

Q1. How often do you visit Pizza Hut?

(i) Weekly (ii) Monthly (iii) Occasionally Q2 which brand you prefer the most?

(i) Pizza Hut (Ii) Dominos (Iii) Other

Q3. Through which media you are getting information about Pizza Hut?

(i) TV (ii) Newspaper (iii) Pamphlets (iv) Bill Boards (v) Other’s Q4. Would you try a new food item launched Pizza Hut?

(E.g. Conniza,Freshizza)

(i) Yes (ii) No

Q5. Specify your satisfaction with Pizza Hut according to the Quality?

Parameter Excellent Good Average Poor

Quality

Q6. Specify your satisfaction with Dominos according to the Quality?

Parameter Excellent Good Average Poor

Price

Q7. Specify your satisfaction with Dominos according to the Service?

Parameter Excellent Good Average Poor

Service

Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 100.

Name Quality Service Ambianc

e Pizza

Hut Domino’

s Pizza Corner Papa John’s

Suggestions

47

Dominos

• The dining conditions have to be changed drastically if Dominos have to target the premium segment of customers.

• They are way behind Pizza Hut in the dining experience. Some of the Dominos restaurants lack even basic amenities

• Due to this a condition can occur where customers judge the quality and taste of the pizza with respect to the restaurant environment and ambience

• Thus to have a greater market share and tap premium segment of the market, Dominos can provide good quality restaurants

• There should also be provision for music, TV’s, kids zone etc. in the restaurant

• By doing this they can even charge a little bit more on the food items

Pizza Hut

• Reduce the menu costs; it is way too expensive for a middle class Indian.

• Middle class forms the maximum population of India and hence reducing the costs of pizza can increase the elasticity of demand greatly

• Invariably there are no discounts, or discounts if offered are very less. Thus Pizza hut should offer more discounts to tap more customers

Their reach is very less as compared to Dominos (as they have only premium restaurants) which deprives far off customers from having Pizza Huts experience. Hence they should increase their

presence

Conclusion

Pizza Hut has many targets which it has achieve in a given period of time. The time-period is mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets. Indians are value-sensitive, not price-sensitive. The price was attributed to the high quality of ingredients used. For instance, Domino’s sourced its Peperoni and Jalapeno needs from Australia and Spain respectively.

However, with competition increasing from Pizza Hut, Domino’s introduced price cuts, discounts and freebies to attract the customers. In 1998, Domino’s introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. The demand was overwhelming and the company sold close to 5000 pizzas in the first week of its launch. The objectives of promotion are to introduce a new product, stimulate demand, change the short-term behavior of the customers, and encourage repeat or greater usage by current customers. Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This promotion is also distributed mainly by mail, but also by fliers on college campuses around the country in order to reach the target market.

49

Bibliography

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http://www.freebizplan.org/business_strategies/soft_skills/spirituality.htm (Accessed on 4 March 2011)

In document Revista Iberoamericana de Evaluación Educativa (página 75-78)