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. 2

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
3

4. 1. 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.
4

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.
5

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 6

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.
Pizza
Hut,45
%
Domino
's
Pizza,3
5%
Others,
20%
Pizza Hut Domino's Pizza Others
Market Share
7

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 1st 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.”
8

9. ✔ COMPETITORS
▶ Domino’s Pizza
▶ Pizza Corner
▶ McDonald’s
▶ Barista
▶ Café Coffee Day
▶ Subway
▶ Papa John’s
9

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

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!" 11

12. ✔ COMPETITORS
▶ Pizza Hut
▶ Pizza Corner
▶ McDonald’s
▶ Barista
▶ Cafe Coffee Day
▶ Subway
▶ Papa John’s
12

13. ✔ SWOT ANALYSIS OF DOMINO’S PIZZA
o 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.
o Opportunities:
• Growing fast food market-
scope for expansion.
• Introduction of more varieties.
• Bigger outlets.
• Take away counters.
o Weaknesses:
• Lack of variety.
• Lack of spacious outlets.
• Ambience not up to
expectations.
• No options for birthday parties
& corporate lunches.
o Threats:
• Emergence of Papa John’s-
world’s #1 pizza makers.
• Better quality & variety of
competitors.
• No take away counters for
pizzas. 13

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
14

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.
15

16. ✔ EXPLORATORY RESEARCH DESIGN
▶ THERE ARE TWO TYPES IN THIS, PRIMARY RESEARCH & SECONDARY RESEARCH:
A. 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.
A. SECONDARY RESEARCH: Literature Review in Internet
▶ Serves as a good starting point for our research.
▶ Lifestyle and social magazine, newspaper, and online resources. 16

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-
1. Taste of the Product
2. Quality of the Product
3. Service
4. Location – Interior and Accessibility
5. Promotional activities- discounts
6. Price
✔ GROUP DISCUSSION OUTLINE
17

18. ✔ DESCRIPTIVE RESEARCH
SAMPLE
Users
Age
Gender
SAMPLE SIZE
40
Respondents
sample is considered
as
representative
SAMPLING
TECHNIQUES
Non
probability
sampling:
•Convenienc
e sampling.
• Snowball
sampling. 18

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

20. 2. Which brand do you prefer the most?
i. Pizza Hut.
ii. Domino’s Pizza.
iii. Other.
3. Through which media are you getting information about Pizza Hut?
i. TV.
ii. Newspaper.
iii. Pamphlets.
iv. Billboards.
4. Through which media are you getting information about Pizza Hut?
i. TV.
ii. Newspaper.
iii. Pamphlets.
iv. Billboards.
20

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

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

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. 23

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.
24

25. ✔ QUESTIONNAIRE- ANALYSIS
▶ NAME:
▶ Gender: M/F
▶ E-MAIL:
▶ Mobile No:
▶ AGE: a)Below 18 b)18-23
1. How often do you visit pizza hut?
i. Weekly.
ii. Monthly.
iii. Occasionally. 25

26. Monthly
17
Weekly
9
Occasionally
14
Statistics on what frequency do people visit Pizza Hut
Monthly
Weekly
Occasionally
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. 26

27. 2. Which brand do you prefer the most?
i. Pizza Hut.
ii. Domino’s Pizza.
iii. Other.
11
23
6
0
5
10
15
20
25
Pizza Hut Domino's Pizza Others
Statistics on Brand Preference
⮚ 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
27

28. 3. Through which media are you getting information about Pizza Hut?
i. TV.
ii. Newspaper.
iii. Pamphlets.
iv. Billboards.
0
2
4
6
8
10
12
14
16
18
20
TV Newspaper Pamphlets Bill Boards
Statistics on Information Medium Sample Size: 40
⮚ 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. 28

29. 4. Through which media are you getting information about Dominos?
i. TV.
ii. Newspaper.
iii. Pamphlets.
iv. Billboards.
0
2
4
6
8
10
12
14
16
18
TV Newspaper Pamphlets Bill Boards
Statistics on Information Medium Sample Size: 40
For Domino’s, customers get the information more through the Pamphlets and TV compared to the
Bill Boards and Newspaper.
29

30. 5. Specify your satisfaction with Domino’s Pizza according to service and quality.
i. Excellent.
ii. Good.
iii. Average.
iv. Poor.
6. Specify your satisfaction with Pizza Hut in terms of service and quality .
i. Excellent.
ii. Good.
iii. Average.
iv. Poor.
22
5
3
4
19
6
8
3
Excellent Good Average Poor
Comparison on basis of SERVICE provided by Domino’s Pizza and Pizza Hut Domino's
Pizza Hut
Sample Size: 40
Pizza Hut has better Quality and Service then Dominos
30

31. 16
20
4
22
13
5
0
5
10
15
20
25
Dinning Out Delivery Both
Chart Title
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
31

32. 65%
35%
Domino's Pizza Hut
8. Which outlet gives convenient offers
i. Dominos
ii. Pizza Hut
⮚ Dominos gives more better offers then Pizza Hut
32

33. 13
24
-27
-16
-30
-20
-10
0
10
20
30
Domino's Pizza Hut
Yes
No
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.
33

34. 10. Rate either Dominos or Pizza Hut on the scale of 1-5 (5 being highest and 1 as Lowest).
0
2
4
6
8
10
12
14
16
18
1 2 3 4 5
Overall Rating Domino's Pizza Hut
Sample Size: 40
⮚ 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
34

35. CROSS TABULATION SUMMARY IN BAR GRAPH
RATINGS ON DIFFERENT VARIABLES- SPSS
1
3
1
10
7
2 2
5
9
0
2
4
6
8
10
12
Dominos Pizza Hut
Count
Brand
Bar Chart- TASTE
Taste 1 2 3 4 5
1
6
7
3
2
5
4
12
0
2
4
6
8
10
12
14
Dominos Pizza Hut
Count
Brand
Bar Chart- SERVICE
Service 1 2 3 4 5

36. 2
7
1
7
3 3
4
13
0
2
4
6
8
10
12
14
Dominos Pizza Hut
Count
Brand
Bar Chart- QUALITY
Quality 1 2 3 4 5
4
3
1
9
4
3
5
1
10
0
2
4
6
8
10
12
Dominos Pizza Hut
Count
Brand
Bar Chart- LOCATION
Location 1 2 3 4 5
4
1
4
3
9
4
2
12
1
0
2
4
6
8
10
12
14
Dominos Pizza Hut
Count
Brand
Bar Chart- PROMOTION
Promotion 1 2 3 4 5
3
1
6
5
7
4
3
10
1
0
2
4
6
8
10
12
Dominos Pizza Hut
Count
Brand
Bar Chart- PRICE
Price 1 2 3 4 5
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
38

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 1st 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
Taste Quality
Service
Location
Promotion
Price
Dominos
Pizza Hut
Pizza Corner
-0.800
-0.600
-0.400
-0.200
0.000
0.200
0.400
0.600
0.800
1.000
1.200
-2.500 -2.000 -1.500 -1.000 -0.500 0.000 0.500 1.000 1.500 2.000 2.500
Dimension
2
Dimension 1
Taste Quality Service Location Promotion Price Dominos Pizza Hut Pizza Corner
43

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.
44

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.
45

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.
46

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
47

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
48

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
49

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
50

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.
51

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
52

53. THANK YOU
53