GOING PLACES (LITERALLY):
By March 2000, Domino's opened 37 outlets all over India. Between April 2000 and February 2001, Domino's set up 64 more outlets in India. Delhi had the highest number of outlets – 17, followed by Mumbai with 13. Domino's had the biggest retail network in the fast food segment in India- with 101 outlets across 40 cities.
Domino's had a tie-up with a real estate consultant Richard Ellis to help with locations, conduct feasibility studies and manage the construction. It was too looking at non-traditional outlets like big corporate offices, railway stations, cinema halls and university campuses. In early 2000, Domino's had opened an outlet at Infosys, Bangalore, which was much successful. It as well had outlets at cinema halls – PVR in Delhi, Rex in Bangalore and New Empire in Kolkata.
By January 2001, Pizza Hut had 19 outlets across India. In a move to expand further, Pizza Hut planned to open an extra five restaurants in Mumbai and 30 restaurants across main cities in India, by 2001 end. Tricon announced that the company would invest Rs.30 million on each of the restaurants. In March 2001, Pizza Hut opened its first three-storeyed 125-seater dine-in restaurant at Juhu in Mumbai. Stated a company official, ‘We are expanding the number of restaurants across the main cities to cater to nowadays youth that has taken to pizzas as a cuisine’.
problemS FOR DISCUSSION:
problem 1: Domino's entered India at a time when Pizza Hut and McDonald's were already in the market. What was the strategy adopted by Domino's to make a dent in Indian market?
problem 2: Database Marketing was a significant part of the strategy in the Pizza Industry. Comment on it.
problem 3: Though Pizza Hut entered India before Domino's, it ultimately lost its share to Domino's. How can Pizza Hut answer the competition from Domino's?