Until 1996, Pizza in India was synonymous with only a bready dough base slathered with some ketchup. However, 1996 saw a considerable change in the pizza experience; all of which started with the entry of international pizza chains.
Domino's and Pizza Hut, the two big US fast-food chains, entered India in 1996. Each was trying desperately to create brand loyalty on unchartered grounds. Domino's and Pizza Hut - tried to grab as large a slice of the pizza as possible.
About Domino's
Domino's started out with just one store in 1960. However, by 1978, the 200th Domino's store opening was being celebrated. By 1983 there were 1,000 Domino's stores and 5,000 in 1989. Today, there are over 17,600 stores – including more than 11,000 outside the United States. Its mission is to establish itself as the best pizza delivery company in the world.
About Pizza Hut
Pizza Hut, founded in 1958 by brothers Dan and Frank Carney in Wichita, Kansas. Its brand has enjoyed a long history of firsts – the first national chain to offer online delivery ordering, the first pizza delivery to outer space, and even the first world-record-setting delivery to the summit of Mt. Kilimanjaro. Pizza Hut is always looking for ways to innovate processes and deliver an even more exceptional service and product.
While Pizza Hut relied on its 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.
It would be more accurate to explain the Pizza Wars as the positioning wars.
Thirty-minute Delivery
Domino's had several hoops to jump through to turn up as the winner in these long brand wargames. The first being the popular sentiment of "Easting Pizza Fresh", there was no point in eating a cold pizza, so there was no reason to have a pizza delivered home. In fact, Dominos was not even the trendsetter to pizza delivery when it came to India- it was Nirulas in Delhi, 1994 to have begun this process. However, all of this was history when Domino's captured the pizza delivery market swiftly and ruthlessly. For its thirty-minute delivery promise to work, Domino's had to follow an eleven-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 never entered this race, as it followed a very different positioning of providing a family dining experience, which did not confer with speedy deliveries.
2. Localizing the Menu
The vast Indian sub-continent had preferences that could not be generalized; Domino's, in an attempt to capture the market - decided to localize its flavors. Thus, Deluxe Chicken with Mustard Sauce' and Sardines was confined to the East, Mutton Ghongura and Chicken Chettinad to the South, and Chicken Pudina to Mumbai. Whereas, Butter chicken, Makhani Paneer, and the Chatpata Chana Masala were confined to the North.
Pizza Hut was not one to be left behind. It introduced an entirely vegetarian menu in its outlet in Ahmedabad, a one-of-its-kind worldwide. It also offered customized Spicy Paneer and Chicken Tikka toppings, Jain pizzas, Halal meat, and so on.
At last, it cannot be clearly determined whose strategy is successful, as both have been able to carve out a niche for themselves with a dedicated fanbase, but yes the fact has to be acknowledged that Domino's currently has more outlets and revenue than Pizza hut and is clearly dominating the industry.
About the Writer
Avani Phatak PGDM, IMT Hyderabad A keen researcher and creative enthusiast!
