Marketing Research Pizza Hut & Dominos

Marketing Research Pizza Hut & Dominos

Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about products for high growth

1. MARKET ANALYSIS OF PIZZA HUT & DOMINO’S PIZZA

2. EXECUTIVE SUMMARY During the past four decades, Pizza Hut & Domino’s Pizza have built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building such leading pizza companies has required relentless innovation, commitment to quality & dedication to customer service and value. All this was possible by achieving objectives & targets which were laid down by these companies from time to time. So to achieve these objectives, the process of understanding consumer behaviour comes in. By precisely interpreting consumer behaviour, business organizations can: Improve operational efficiency and performance; elevate the customer satisfaction level. This research project aims to study & analyse the ever-fluctuating consumer behaviour and provide appropriate conclusions & recommendations to these pizza giants so that they may achieve their objectives & targets and may continue to grow further. ‹#›

3. TABLE OF CONTENTS S. No. Topic Slide No. 1 Introduction 4 2 Research objectives 14 3 Research Methodology 15 4 Analysis (Graphical, Cross tabulation, t-test, Factor Analysis, Discriminate Analysis & Perceptual Mapping) 24 5 Findings 45 6 Limitations 49 7 Recommendations for action 50 8 Bibliography 52 ‹#›

4. INTRODUCTION Fast food is one of the world’s largest growing food types. India’s fast food industry is growing by 40% . Global food chains are flooding into the country, due to the availability of relatively cheap raw material for fast food. Although, eating at home remains very much ingrained in Indian culture, there has been significant impact on eating out trends due to many factors including: Growth in number of nuclear families, particularly in urban India; Exposure to global media and western cuisine; Increasing number of women joining the workforce. ‹#›

5. HYPOTHESIS All those who eat pizzas have tasted both Domino’s Pizza and Pizza Hut. Pizza is a widely accepted fast food. People are aware of the various combos and offers of the company from which they eat pizza. There are people of every kind in the sample. There are no switchers in the sample. ‹#›

6. MAJOR PLAYERS IN INDIAN FOOD & BEVERAGE (F&B) INDUSTRY McDonald’s KFC Pizza Hut Domino’s Pizza Café Coffee Day Barista Subway Papa John’s ‹#›

7. MARKET SHARE India’s organized pizza market is worth – 600 Crores . Major players are Pizza Hut ( 35% ) & Domino’s Pizza ( 45% ). Other players ( 20% ): Smokin Joe’s Garcia’s Papa John’s US Pizza They give competition to major players in tier-1 cities like Mumbai, Bangalore, Chennai, etc. No or rare presence in tier-2 cities. ‹#›

8. BRIEF HISTORY & FEATURES OF PIZZA HUT Pizza Hut was started in 1958 , by two brothers Frank & Dan Carney in Wichita, Kansas. Pizza Hut is one of the flagship brands of ‘ yum! Brands Inc. ’, which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. It was the 1 st pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmedabad and Chowpatty, where it offers a Jain Menu. Their menu offers the option of a complete meal which includes appetizers, a salad bar (where the customers can make their own fresh salads), a range of soups, pastas and desserts etc. Vision statement: “To improve the well-being of our customers, community, and people connected to our enterprise.” ‹#›

9. COMPETITORS Domino’s Pizza Pizza Corner McDonald’s Barista Café Coffee Day Subway Papa John’s ‹#›

10. SWOT ANALYSIS OF PIZZA HUT Strengths: Superior quality & variety. Hygiene. Excellent service. Customer satisfaction. Strong brand image. Weaknesses: Inadequate advertisements. Inadequate outlets. High price. Opportunities: Growing fast food market- scope for expansion. Introduce attractive offers. Threats: Emergence of Papa John’s- world’s #1 pizza makers. Low price points of competitors. No take away counters for pizzas. ‹#›

11. BRIEF HISTORY & FEATURES OF DOMINO’S PIZZA The Domino’s Brand was founded in the United States of America in 1960 by Thomas & James Monaghan. ‘Domino's Pizza India Ltd.’ was incorporated in March 1995 as the master franchisee for India and Nepal, of ‘Domino's Pizza International Inc.’, of U.S.A. The brand positioning of ‘Khushiyon Ki Home Delivery’ (happiness home delivered) is the emotional benefit it offers to consumers. Major products they offer are pizzas, appetizers, pastas, cakes and beverages. Popular Initiatives: Fun Meal & Pizza Mania. Vision statement: “Exceptional people on a mission to be the best pizza delivery company in the world!" ‹#›

12. COMPETITORS Pizza Hut Pizza Corner McDonald’s Barista Cafe Coffee Day Subway Papa John’s ‹#›

13. SWOT ANALYSIS OF DOMINO’S PIZZA Strengths: More outlets- even in small towns. Less than 30 minutes home delivery. Quick service at outlets. Customer satisfaction. Low price. Excellent offers. Good promotion. Opportunities: Growing fast food market- scope for expansion. Introduction of more varieties. Bigger outlets. Take away counters. Weaknesses: Lack of variety. Lack of spacious outlets. Ambience not up to expectations. No options for birthday parties & corporate lunches. Threats: Emergence of Papa John’s- world’s #1 pizza makers. Better quality & variety of competitors. No take away counters for pizzas. ‹#›

14. 2. RESEARCH OBJECTIVES To know about the satisfaction level of customers of Pizza Hut and Dominos To identify the relative importance of factors influencing consumer satisfaction towards branded quick service outlet To map the consumer perception towards different brand in this regards (Market Positioning) To analyse marketing strategies for overall qualitative and quantitative improvement in service of an Organisation ‹#›

15. 3. RESEARCH METHODOLOGY EXPLORATORY RESEARCH: DEVELOP A DEEPER UNDERSTANDING OF THE RESEARCH TOPIC AND INDUSTRY FOR OUR RESEARCH TEAM. UNDERSTAND CONSUMERS TATSE, PREFERENCE, CONSIDERATION FACTORS. DEVELOP A HYPOTHESIS. IDENTIFY IMPORTANT VARIABLE. DESCRIPTIVE RESEARCH: TEST VARAIBLE IDENTIFIED. GET QUANTIFIABLE RESPONSE. TEST HYPOTHESIS. ‹#›

16. EXPLORATORY RESEARCH DESIGN THERE ARE TWO TYPES IN THIS, PRIMARY RESEARCH & SECONDARY RESEARCH: PRIMARY RESEARCH: Focus Group Discussion, Surveys Zoom Meetings of 1 hour with 10 Respondents including our group members for Discussion Date- 16-04-20 Information sought is not very personal to individual, can be easily shared. It is cost effective. It is time effective. Enables us to receive various views at the same time. SECONDARY RESEARCH: Literature Review in Internet Serves as a good starting point for our research. Lifestyle and social magazine, newspaper, and online resources. ‹#›

17. What to eat depends on the mood, budget, accessibility. Considering factors for eating with family are formal restaurant, decent crowd. Considering factors for eating with friends are comfort, hip place, lively place. Major variables that affects decision are- Taste of the Product Quality of the Product Service Location – Interior and Accessibility Promotional activities- discounts Price GROUP DISCUSSION OUTLINE ‹#›

18. DESCRIPTIVE RESEARCH SAMPLE Users Age Gender SAMPLE SIZE 40 Respondents sample is considered as representative SAMPLING TECHNIQUES Non probability sampling: Convenience sampling. Snowball sampling. ‹#›

19. QUESTIONNAIRE NAME: Gender: M/F E-MAIL: Mobile No: AGE: a)Below 18 b)18-28 c) 28-40 d) Above 40 How often do you visit pizza hut? Weekly. Monthly. Occasionally. ‹#›

20. 2. Which brand do you prefer the most? Pizza Hut. Domino’s Pizza. Other. Through which media are you getting information about Pizza Hut? TV. Newspaper. Pamphlets. Billboards. Through which media are you getting information about Pizza Hut? TV. Newspaper. Pamphlets. Billboards. ‹#›

21. Specify your satisfaction with Domino’s Pizza according to service and quality. Excellent. Good. Average. Poor. Specify your satisfaction with Pizza Hut in terms of service and quality . Excellent. Good. Average. Poor. Which is your preferred dining joint for the following. Check any one column in the grid. Which outlet gives convenient offers Dominos Pizza Hut Joint Dining Out Home Delivery Both Dominos Pizza Hut ‹#›

22. If deals were eliminated would you still continue to order? Rate Dominos and Pizza Hut on the scale of 1-5 (5 being highest and 1 as Lowest). Joint Yes No Dominos Pizza Hut ‹#›

23. BENEFITS OF QUESTIONNAIRE Information is collected in a standardized way. They are usually straightforward to analyze. They can be used for sensitive topics which users may feel uncomfortable speaking to an interviewer. Respondents casually give the answer. They are not usually required to reply immediately. To get accurate data, you need your participants to be as honest as possible with their answers. The anonymity of questionnaire allows people to feel more candid with their responses. ‹#›

24. 4. METHODOLOGY USED FOR DATA ANALYSIS The methodology used for data analysis consist of pie chart, Tabulation, Graphic Representations, percentage analysis etc are used in the analysis of data. The data collected was rationally ordered and subjected to Statistical Package for Social Sciences ( SPSS , version-17.0). The data was consequently subjected to various statistical tests with the help of SPSS software. The statistical data has been presented in the form of tables and graphs. The statistical techniques used are Cross tabulation, t-test, Factor Analysis and Discriminate Analysis. ‹#›

25. QUESTIONNAIRE- ANALYSIS NAME: Gender: M/F E-MAIL: Mobile No: AGE: a)Below 18 b)18-23 How often do you visit pizza hut? Weekly. Monthly. Occasionally. ‹#›

26. Sample Size: 40 As per the survey it is concluded that approximately 40% people prefer to visit Pizza Hut Once or Twice every Month while around 35% visit Occasionally and around 25% Weekly. ‹#›

27. Which brand do you prefer the most? Pizza Hut. Domino’s Pizza. Other. Out of 40 people, more than 50% of them prefer Domino's Pizza while 27% of them like to go to Pizza Hut and 7% like to visit other Pizza Brands. Sample Size: 40 ‹#›

28. Through which media are you getting information about Pizza Hut? TV. Newspaper. Pamphlets. Billboards. 45% people got information about Pizza Hut through TV, 32% through Billboards, 20% through Pamphlets, 13% through Newspaper and some of them got information through TV as well as Bill Boards. ‹#›

29. 4. Through which media are you getting information about Dominos? TV. Newspaper. Pamphlets. Billboards. For Domino’s, customers get the information more through the Pamphlets and TV compared to the Bill Boards and Newspaper. ‹#›

30. Specify your satisfaction with Domino’s Pizza according to service and quality. Excellent. Good. Average. Poor. Specify your satisfaction with Pizza Hut in terms of service and quality . Excellent. Good. Average. Poor. Sample Size: 40 Pizza Hut has better Quality and Service then Dominos ‹#›

31. 7. Which is your preferred dining joint for the following. Check any one column in the grid. Joint Dining Out Home Delivery Both Dominos Pizza Hut Dominos is preferred for Home Delivery and Pizza Hut is preferred for Dining Out ‹#›

32. 8. Which outlet gives convenient offers Dominos Pizza Hut Dominos gives more better offers then Pizza Hut ‹#›

33. 9. If deals were eliminated would you still continue to order? Joint Yes No Dominos Pizza Hut People will continue to order from Pizza Hut even if deals are eliminated (Brand Loyalty and Less price sensitive) which is not the case with Dominos. ‹#›

34. 10. Rate either Dominos or Pizza Hut on the scale of 1-5 (5 being highest and 1 as Lowest). On the basis of overall survey it was found that people prefer Domino's Pizza over Pizza Hut. 20 Regular Customers of both pizza joints were asked to rate the through Google Forms Surveys held on 17-04-2020 Quality Taste Service Location Promotion Price Pizza Hut Dominos ‹#›

35. CROSS TABULATION SUMMARY IN BAR GRAPH RATINGS ON DIFFERENT VARIABLES- SPSS

36. ‹#›

37. T TEST OF VARIABLES- SPSS A t-test is used to compare the means of two independent groups. Independent groups means that different people are in each group. Null Hypothesis- Rating of variables of Pizza Hut and Dominos same

38. As the p-value < 0.05, Null Hypothesis stands rejected in case of all variables except Taste, hence there is a significant difference between ratings of Dominos and Pizza Hut ‹#›

39. STEPWISE FACTOR ANALYSIS- SPSS Taste is most insignificant variable and Promotion is the most significant

40. DISCRIMINANT ANALYSIS- SPSS Wilks’ Lambda value close to zero implies that group means are different. Hence 1 st Function is more significant as value is near to zero. Large Eigen value correspond to the maximum spread or dispersion of group mean values. Small Eigen value means less spread of dispersion.

41. DISCRIMINANT ANALYSIS

42. DISCRIMINANT ANALYSIS Plot Of brand in discriminate Function 1 & 2: Treating Functions as Dimensions

43. ATTRIBUTE BASED PERCEPTUAL MAPPING- EXCEL ‹#›

44. ATTRIBUTE BASED PERCEPTUAL MAPPING Dimension 1 consist of Quality , Location and Taste. Dimension 2 consist of Service and Price. Dominos is more closer to Price and Promotion. Pizza Hut is closer to Location, Quality and Taste. Pizza corner is more close to Dimension 1. ‹#›

45. 5. FINDINGS Below are some of the observations we made from our analysis on 4Ps in Group Discussion and Surveys- POSITIONING OF BRAND - The major point of difference between pizza hut and dominos is that pizza hut concentrates on in-restaurant dining. The ambience and decor of all pizza hut outlets are good and the outlets are spacious. When customers think of party and decide to have pizza, pizza hut only comes into their mind. Pizza hut also arranges parties and meetings in their outlets. Pizza hut has customized birthday party invites with different themes for the customers to choose and use it as invitations. While, Dominos aims at fast home delivery of pizza. It widely uses “khushiyon ki home delivery in their advertisements” Whenever customers want to have pizza at home, they think of calling dominos and ordering for it because they are experts in home delivery of pizza. “we earn 60% of our revenue from home delivery of pizzas and 40% from the restaurant sales” a dominos outlet manager quoted. In case of pizza hut, the major revenue is from restaurant sales. It has been using many taglines like make it great, gather around the good stuff etc. ‹#›

46. PRODUCT - The product quality of pizza hut is assumed to be superior due to the cost factor, their pizzas are costlier as compared to dominos. while dominos has a varied range of products suitable for all budgets but dominos offers few options for customizations to its customers The main advantage of pizza hut is that one can customise his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customers mind and thus one can enjoy whatever pizza hut can offer. Indians are value-sensitive as well as 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. ‹#›

47. PRICING- In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition, but also promote frequent sales to lower the price below them. The high/low pricing strategy has several advantages. First, this pricing strategy will help segment the market. Different groups of customers are willing to pay different prices for the same product. In India Domino’s is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. Those people are eager to go for a outing in any festival and as a cheap family restaurant Domino’s would be most preferable. They do not need high class ambiences or amusement in the shop so the establishment cost is low for the dealers and the price of pizza is very reasonable for the customer. Domino’s do not have any fixed customer though they are one of the main competitors of the Pizza hut ‹#›

48. PROMOTION- Domino’s concentrates on incentivizing customers instead off advertising and promotion. As a result, domino’s regularly introduces sell-in schemes (promotional schemes for dealers), promotional coupon, festival offers etc, Pizza hut offers a very attractive option that there is ‘pan 4 all’ scheme where one can select 4 different types of vegetarian /non- vegetarian combinations of pizza! This is a unique way of offering as there are many consumers who come in groups where someone in the group may want a non- vegetarian pizza can avail the offer. 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 ‹#›

49. The survey was conducted within the limited time frame; so few shortcoming may be expected. The respondent’s personal bias may be another factor, which is uncontrollable. The finding of the survey is strictly based on the responses of the respondents. it is difficult to find the euthenics be true, so we are assuming them to be true. Chances of some biasness could not be eliminated. A Samples size of forty has been use due to time limitations. The study does not represent classes of managerial professionals not interviewed, such as those from educational institutions, health-related industries, law enforcement, or global businesses. 6. LIMITATIONS ‹#›

50. 7. RECCOMENDATION OF ACTION For 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 ‹#›

51. For 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. ‹#›

52. 8. Bibliography https://shodhganga.inflibnet.ac.in/bitstream/10603/78403/6/06_chapter.pdf https://www.gtu.ac.in/uploads/Daisy%20Kurien,%20thesis%20129990992003_273027.pdf https://www.slideshare.net/KaranVerma79/marketing-report-ppt ‹#›

53. THANK YOU ‹#›