“Study on Consumer Satisfaction between Pizza Hut and Domino’s”

A Major Project Report

Submitted in partial fulfilment of the requirements for BBA

(General) Programme of Guru Gobind Singh Indraprastha

University, Delhi

UNDER THE GUIDANCE OF SUBMITTED BY

Ms. JYOTI GUPTA ANUJ GUPTA

PROFESSOR, VIPS Rollno-41717701715

Batch : 2015-2018

Vivekananda Institute of Professional studies

Guru Gobind Singh Indraprastha University (GGSIPU)

Delhi
 DECLARATION

I ANUJ GUPTA, Enrolment No. (41717701715) from BBA-VIth Semester of

the Vivekananda Institute of Professional Studies, Delhi hereby declare that the
Research project Report entitled “Study on Consumer Satisfaction between
Pizza Hut and Domino’s” is an original work and the same has not been
submitted to any other Institute for the award of any other degree. A
 presentation of the Research project Report was made and the suggestions as
approved by the faculty were duly incorporated.

Date:

Signature of the Student

 CERTIFICATE FROM GUIDE

This is to certify that the Project titled “ Study on Consumer Satisfaction between Pizza

Hut and Domino’s” is an academic work done by “Mr. Anuj Gupta” submitted in the
 partial fulfillment of the requirement for the award of the Degree of BBA from
Vivekananda Institute of Professional Studies. It has been completed under the guidance of
Ms. Jyoti Gupta (Faculty Guide). The authenticity of the project work will be examined by
the viva examiner which includes data verification, checking duplicity of information etc.

Signature of the Faculty Guide Ms. Jyoti Gupta

 ACKNOWLEDGEMENT

Business World is very much competitive and moving fast with lots of changes every
minute in strategies and policies of market.

This work is a synergistic product of many minds. I am grateful for the inspiration and
wisdom of many thinkers and for the trans-generational sources and roots of this
wisdom.

It has been a great opportunity to undertake research on the subject Study on

Consumer Satisfaction between Pizza Hut and Domino’s

 No amount of words can express the benevolence and supportive help given to me by
my guide MS. JYOTI GUPTA (Faculty Management).

I also want to thank my family members for their guidance and support in the
completion of this project successfully. Last but not least I extend my gratitude to all
the people whose constant guidance and support made the completion of this project a
much more enriching experience. I hope this project would be liked and appreciated
 by faculty members and students.

Date:

Signature of the Student

Signature of Guide
EXECUTIVE SUMMARY

From the comparative study of these two Fast food chains Pizza hut and Domino’s we

understand that on which front, which company is weaker than others. As we know that

Pizza hut is the largest pizza restaurant company in the world with 12000 outlets in 90

countries and it entered in INDIA in 1996 .

The Domino’s pizza entered in INDIA in 1995 and now it has over 1000 outlets in India.

But after all Domino’s which has First mover advantage and customer base; cannot succeed as

most favorable brand in between the people of those who likes Pizzas, from this study we

know that pizza hut makes its number 1st position in between peoples.

In the preference side people prefe  r Pizza hut rather than domino’ s. In price category the

 price of the pizza is less in Domino’s rather than pizza -hut.

 TABLE OF CONTENTS

S. NO. TOPIC PAGE NO.

1. Declaration -

2. Acknowledgement -

3. Executive Summary -

4. Chapter 1 : Introduction

5. Chapter 2: Conceptual Framework

6. Chapter 3: Data Analysis and Interpretation

7. Chapter 4: Conclusion and Recommendations

8. References/ Bibliography -

9. Questionnaire -
The `90s

By 1992 the international division had opened its

500thstore outside the United States. The domestic market

continued to grow with the introduction of innovative variations to the original pizza recipe

as well as creative up-sell items. 1993 was shaping up as another major year for Domino's

until December brought one more crisis: a$79 million judgment against the company in a

lawsuit alleging the 30 minute guarantee was at fault in a St

Louis traffic accident. After days of soul-searching,

Monaghan decided to withdraw the guarantee permanently, a move that made headlines

worldwide -such was Domino's renown. Not only is

Monaghan credited with pioneering the multi-billion dollar pizza delivery industry, but

also with numerous inventions. He is responsible for the corrugated pizza box,

conveyor ovens, and Doug mixers, insulated bags to transport

 pizzas in, the pizza screen, Doug trays and, most important to the success of his own

 business, a unique franchising system enabling managers and supervisors to become

independent business owners. In 1999 Monaghan, a deeply spiritual man, decided it was

time to give back to the community much of the wealthy had accumulated as a result of his

39 years at the helm of this great company. So he sold Domino's Pizza to Bain Capital, an

organization with a proven track record of identifying companies with significant growth

 potential, and steering them to achieve that potential.

The Future

Many changes have been made since Domino's was sold to Bain Capital, and a new spirit of

excitement has paved the way for the future. Despite encountering set backs
and obstacles alon-g the way, the story of Tom Monaghan's 39 years at the helm of

Domino's Pizza is one of never giving up on your dreams.

 HISTORY OF PIZZA HUT

Pizza Hut entered India in 1996, and opened its first restaurant in Delhi. It has maintained an

impressive growth rate of over 40 per cent per annum. Pizza Hut had about 100 restaurants;

and employed nearly 4,000 people by end of 2004. It had invested about US$ 25 million in

India; this is over and above investments made by franchisees. A Fortune 300 company,

Yum! Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John

Silver's restaurants worldwide. Yum! Generated more than US$ 25.9 billion in worldwide

sales in the year 2003-04, and has more than 35,000 restaurants in over 100 countries.

Market share in INDIA:

Pizza Hut is believed to have close to 50 per cent market share of the organized pizza-

retailing segment market share in India.

Financial performance

According to a survey of Financial Express, the market size of the pizza segment is around

US$ 87 million and currently growing at the rate of 15 per cent to17 per cent per annum.

According to Pizza Hut sources, most of their outlets are financially successful encouraging

further expansion. In India, the average investment for each outlet is US$ 275,000-335,000

and is borne by the franchisee.

local flavors. The Tandoori range of pizzas. Indigenous sourcing of raw materials Pizza Hut

has reduced costs through indigenous sourcing of raw material. It has tied up with a local

company Dynamics Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese.

Early History

Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of

Wichita, Kansas. When a friend suggested opening a pizza parlour--then a rarity--they

agreed that the idea could prove successful, and they borrowed $600 from their mother to

start a

 business with partner John Bender. Renting a small building at 503 South Bluff in

downtown Wichita and purchasing second-hand equipment to make pizzas, the Carneys and

Bender opened the first Pizza Hut restaurant; on opening night, they gave pizza away to

encourage community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas,

and Dick Hassur opened the first franchise unit in Topeka, Kansas.

The `60s

In the early 1960s Pizza Hut grew on the strength of aggressive marketing of the pizza

restaurant idea. In 1962, the Carney brothers bought out the interest held by Bender, and

Robert Chisholm joined the company as treasurer. In 1966, when the number of Pizza Hut

franchisee units had grown to 145, a home office was established to coordinate the

businesses from Wichita.

Two years later, the first Pizza Hut franchise was opened in Canada. This was followed by

the establishment of the International Pizza Hut Franchise Holders Association (IPHFHA).

It aimed at acquiring 40 percent of the company's franchise operations, or 120 stores, and
adding them to the six outlets wholly owned by Pizza Hut.
The acquisitions, however, brought turmoil to the chain. Varied accounting systems used by

the previous franchise owners had to be merged into one operating system, a process that

took eight months to complete. In the meantime, sales flattened and profits tumbled.

The `70s

In early 1970 Frank Carney decided that the company practice of relying on statistics from

its annual report to inform its business strategy was inadequate, and that a more developed,

long- term business plan was necessary. The turning point occurred when Pizza Hut went

public and began growing at an unprecedented pace. Carney said in 1972, "We about lost

control of the operations. Then we figured out that we had to learn how to plan."

Pizza Hut's corporate strategy, arrived at after much consultation and boardroom debate,

emerged in 1972. Carney would later remark that the process of introducing a management

structure did much to convince PepsiCo, Inc., that the pizza chain was worthy of purchase.

The corporate strategy's first priority was increasing sales and profits for the chain.

Continuing to build a strong financial base for the company to provide adequate financing

for growth was the second priority. The strategy also called for adding new restaurants to

the chain in emerging and growing markets.

In 1970 Pizza Hut opened units in Munich, Germany, and Sydney, Australia. That same

year, the chain's 500th restaurant opened, in Nashville, Tennessee. Further acquisitions that

year included an 80 percent stake in Ready Italy, a frozen crust maker, and a joint venture,

Sunflower Food Processors, formed with Sunflower Beef, Inc. The same year, the menus for

all restaurants added sandwiches to the staple "Thin 'n Crispy" pizza offering.
In 1971 Pizza Hut became the world's largest pizza chain, according to sales and number

of restaurants--then just more than 1,000 in all. A year later the chain gained a listing on

the

 New York Stock Exchange. Pizza Hut also achieved, for the first time, a one million dollar

sales week in the U.S. market.

At the end of 1972 Pizza Hut made its long-anticipated offer of 410,000 shares of common

stock to the public. The company expanded by purchasing three restaurant divisions: Taco

Kid, Next Door, and the Flaming Steer. In addition, Pizza Hut acquired Franchise Services,

Inc., a restaurant supply company, and J & G Food Company, Inc., a food and supplies

distributor. The company also added a second distribution centre in Peoria, Illinois.

In 1973 Pizza Hut expanded further by opening outlets in Japan and Great Britain. Three

years later the chain had more than 100 restaurants outside the United States and two

thousand units in its franchise network. The company's 2,000th restaurant was opened in

Independence, Missouri. It also established the 35 by 65 meter red-roof Pizza Hut restaurant

 building as the regulation size for all its new establishments. The new construction standard

called for free-standing buildings built in a distinctive one-story brick design. The sites

seated from 60 to 120 people.

The `80s

In 1984 Steven Refinement was appointed president and chief executive officer of Pizza

Hut. He oversaw a period of unprecedented growth for the pizza chain. In 1986 Pizza Hut

opened its 5,000th franchise unit, in Dallas, Texas, and began its successful home delivery

service.

By the 1990s the delivery and carryout business had grown to account for approximately 25

 percent of the company's total sales.

In 1990 Pizza Hut opened its first restaurant in Moscow. Russians' pizza of choice,

"Moskva," a pie topped with sardines, tuna, mackerel, salmon, and onion, became a

favourite
From the total of 50 respondents

• 32 are male respondents

• 18 are female respondents.

• These results as the male are leading the sample and female showed less interest in

 participating in the stud y;

• The 18-28 Age-group are more visited Piz a outlets (32person.)

• In occupation side: - More students visited the outlets rather than other occupants

(24students)

Q1. How many people like pizza hut and dominos according to age?

Age Dominos Pizza hut

(in percentage) (in percentage)

Below 10 33 67

10-15 40 60

15-20 41 59

20-25 58 42

25-30 67 33

30-35 72 28

35-40 62 38

40 and above 51 49
80

70

60

50

Dominos
40
Pizza hut
Column1
30

20

10

0
 below 10 10-15. 15-20 20-25 25-30 30-35 35-40 40 above

Interpretation:

Above diagram shows different age of peoples who like Domino’s or Pizza hut. This

shows that the people before adolescence age prefer Pizza hut more than the domino’s

. But studies shows that the after adolescence age most of the people prefer Domino’s

more than the pizza hut.

 Q2. Specify your satisfaction with Pizza Hut according to the Quality?

Parameter Excellent Good Average Poor

Quality 60 20 15 5

Quality

Excellent
Good
Average
Poor 

Interpretation:

Above pie chart shows that the 60% of people says that the quality of Pizza hut is excellent,

20% people says good and 15% says average. But there are still some people who says it is

 poor.
Conclusion:

 From the study of this survey we find that

 The Pizza hut gain a good market share rather thanDomino’s.

 The preferences of the people for Pizza are more with Pizza-hut.

 Males are more attracted towards Pizza-hut due to good ambiances and freshness’ rather

than women’s.

 The male respondents are more attracted towards pizza and females are not responding like as Men’s.

 The quality of Pizza-hut is better than Domino’s.

 The study also shows that the Indian customers are not price sensitive when they get good

product, quality and services.

 Creative Strategy

Dominos

 Kwality wall’s ice-creams in Dominos: for the 1st time Dominos started offering

ice creams. Selling ice cream in Domino’s is also a new sales promotion strategy to

attract more customer in a new innovative way

 Domino’s has also come with PIZZA MANIA.

Pizza Hut

 Pizza Hut’s 1st campaign in television in July 2001, which said,” GOOD TIMES

START WITH GREAT PIZZAS”. The ad was aired during all the important

 programmes on star plus, sony, star movies, etc.

 The 1st ad campaign on TV defines Pizza Hut as a brand, and what it offers to

its existing and potential customers.

 Similarities of Domino’s and Pizza Hut

 Both claimed to have original recipe of pizza making.

 Both customize their offerings (though Pizza hut followed Domino’s)

 Both concentrated on database marketing.

 Both introduced coupons, discounts and special offers.

 Both used promotional campaigns involving customer directly.

 Both wanted to establish themselves as a brand.

Dimension of comparison

 Dimension  Dominos  Pizza Hut

of

Comparison
 Unique  30-minute  Dining Experience

Selling Home Delivery

Proposition Frame

 (USP)

 Market  c) Very fast growth in

 a) Customizing the
Penetrations
recipe as per the
strategy – 
“Different Regions”; then
 Redefining their recipes
adding taste factor.

  b) Simplified ordering

system –  SINGLE

toll free number.

 a)Redefining the

recipes suiting the

Indian tastes

 “No differentiation

region-wise”

  b) No such provision in

Pizza Hut’s case.

 c) Pace of growth

was slow.
 Online advertising

Both Domino's and Pizza Hut just about tripled their investment in online advertising in

2009 vs. the previous year. Domino's primarily promoted its delivery service with

immediate call to action. It also promoted its American Legends Challenge, encouraging

users to vote for their favorite regional-styled pizza with an opportunity to win free

Domino's pizza for a year. The company promoted across a broad range of sites including

Amazon, Ask, Yahoo!, MySpace, Facebook, College Humor, Yellow Pages and local

newspaper sites.

Pizza Hut tied back into its key product calendar pushes online, sending users to its website

to order. It appeared to target a younger and more female-skewed audience on sites

including ETonline, Cosmo Girl, Elle, Fandago and FoxNews.

One clever e-mail marketing execution that grabbed my attention was a coupon e-mail from

Pizza Hut that incorporated a 20% off offer which was only available for ten days. The e-

mail included a clock counting down in real time to create a level of urgency.

Domino's closed the gap on Pizza Hut in search marketing across 2009, particularly

coming out strong on natural search -- a reflection that its general advertising resonated as

well as a strong website experience. Pizza Hut had a bigger commitment in paid-search

clicks against

 both branded and unbranded words.

The irony of being able to order a pizza using your iPhone is, I'm sure, not lost on readers.

Both Pizza Hut and Domino's claimed breakthroughs with the launch of their iPhone
applications. One clever e-mail marketing execution that grabbed my attention was a

coupon
e-mail from Pizza Hut that incorporated a 20% off offer which was only available for ten

days. The e-mail included a clock counting down in real time to create a level of urgency.

Domino's closed the gap on Pizza Hut in search marketing across 2009, particularly coming

out strong on natural search -- a reflection that its general advertising resonated as well as a

strong website experience. Pizza Hut had a bigger commitment in paid-search clicks against

 both branded and unbranded words.

Concept of Pizza Hut

 Pizza Hut is split into several different restaurant formats; the original family-style

dine-in locations; store front delivery and carry-out locations; and hybrid locations

that have carry-out, delivery, and dine-in options. Some full-size Pizza Hut locations

have a lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a pasta bar.

Pizza Hut has a number of other business concepts that are different from the store

type; Pizza Hut "Bistro" locations are "Red Roofs" which have an expanded menu

and slightly more upscale options.

 An upscale concept was unveiled in 2004, called "Pizza Hut Italian Bistro". At 50

US locations, the Bistro is similar to a traditional Pizza Hut, except that new,

Italian- themed dishes are on the menu, such as penne pasta, chicken pomodoro,

toasted sandwiches and other foods.[17] Instead of black, white, and red, Bistro

locations feature a burgundy and tan motif. [18] Pizza Hut Bistros still serve the

chain's traditional pizzas and sides as well. In some cases, Pizza Hut has replaced a

"Red Roof" location with the new concept. "Pizza Hut Express" and "The Hut"

locations are fast food restaurants. They offer a limited menu with many products

not found at traditional Pizza Huts. These type of stores are often paired in

a collocated location
 with a sibling brand such as Wing Street, KFC or Taco Bell, and are found on

college campuses, food courts, theme parks, bowling alleys, and in stores such

as Target.

 Vintage "Red Roof" locations, designed by architect Richard D. Burke, can be

found in the United States and Canada; several exist in the UK, Australia, and

Mexico. In his book Orange Roofs, Golden Arches, Phillip Langdon wrote that the

Pizza Hut "Red Roof" architecture "is something of a strange object –    considered

outside the realm of significant architecture, yet swiftly reflecting shifts in popular

taste and unquestionably making an impact on daily life. These buildings rarely

show up in architectural journals, yet they have become some of the most

numerous and conspicuous in the United States today."

 Curbed.com reports, "Despite Pizza Hut's decision to discontinue the form when

they made the shift toward delivery, there were still 6,304 'traditional units' standing

as of 2004, each with the shingled roofs and trapezoidal windows signifying equal

parts suburban comfort and strip-mall anomie." This building style was common in

the late 1960s and early 1970s. The name "Red Roof" is somewhat anachronistic

now, since many locations have brown roofs. Dozens of "Red Roofs" have closed

or been relocated or rebuilt.

 Many "Red Roof" branches have beer if not a full bar, music from

a jukebox, and sometimes an arcade. In the mid-1980s, the company moved into

other successful formats including delivery or carryout and the fast food

"Express" model.
 Concept of Domino’s

 Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group

Company, The Company was incorporated in 1995 and initiated operations in

1996, The Company got listed on the Indian bourses in February 2010, Mr., Shyam

S, Bhartia, Mr., Hari S, Bhartia and Jubilant Enpro Private Ltd, are the Promoters

of the Company. The Company & its subsidiary operates Domino's Pizza brand

with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka, The

Company is India's largest and fastest growing food service company, with a

network of 500+ Domino's Pizza restaurants

 Restaurants (as of 31st March, 2012) The Company is the market leader in the

organized pizza market with a 54% market share (Euro monitor Report 2010) and

70% share in the pizza home delivery segment in India, The Company has

strengthened its portfolio by entering into an agreement with Dunkin' Donuts

Franchising LLC, for developing the Dunkin' Donuts brand and operating

restaurants in India,

 Over the period since 1996, Domino’s Pizza India has remained focused on delivering

great tasting Pizzas and sides, superior quality, exceptional guest care and value for

money offerings. We have endeavored to establish a reputation for being a home

delivery specialist capable of delivering pizzas within 30 minutes or else FREE to a

community of loyal consumers from all our restaurants around the country.

 Domino’s vision is focused on “Exceptional people on a mission to be the best pizza

delivery company in the world!" We are committed to bringing fun, happiness and

convenience to lives of our consumers by delivering delicious pizzas to their

doorstep and our efforts are aimed at fulfilling this commitment towards a large and

ever-
 Domino’s constantly strives to develop products that suit the tastes of our consumers

and hence delighting them. Domino’s believes strongly in the strategy of ’Think

global and act local’. Thus, time and again we have been innovating with delicious

new products such as crusts, toppings and flavours suitable to the taste buds of

Indian Consumers. Further providing value for money and affordable products to

our consumers has been an important part of our efforts. Our initiatives such as Fun

Meal and Pizza Mania have been extremely popular with consumers looking for an

affordable and value for money meal option.

 Domino’s believes that when a box of pizza is opened, family and friends come

together to share the pizza. Hence, our brand positioning:‘Yeh Hai Rishton Ka Time’

 That’s why, all our efforts, whether it is a new innovative and delicious product,

offering consumers value for money deals, great service, countrywide presence or the

 promise to deliver in 30 minutes or free are all directed towards making relationships

stronger, warmer and more fun by giving consumers an opportunity to get together,

catch up, reunite and spend more time together.

Chapter 4

Conclusion and

Recommendations
 Success Factors

Pizza Hut

• Offering value food

• Moving beyond metros

• Developing the local supply chain

• Good ambience

• Offering more than the international menu

• Aggressive marketing and tie-ups with local and popular brands

Domino’s

• Door step services.

• Low pricing

• Customer satisfaction

• Great offers

Current Scenario

Dominos Pizza Hut

Product • Pizza with promise • Casual dining

of fast delivery experience as well

• Offers mainly Pizza as fast delivery

(PHD &
Q8. Compare Pizza Hut with the following food chains and rate them on a scale of 10.

 Name Quality Service Ambiance

Pizza Hut

Domino’s

Pizza

Corner

Slice of

Italy