Service Sector Management

Project On Hotel Industry

Pizza Hut v/s

Dominos

Guided By: Prof Hasan

Zeenia Dumasia 457

Fathima Habeeb 459

Nikita Kothari 473

Rupali More 479

Padmini Patil 484

Madhuri Rasal 487

Saloni Raul 488

ShleshaRedij 489

Why Pizza Hut?

India has been ranked in the seventh place for weekly fast food consumption. India has moved up to the 39th most preferred food retail destination in the world in 2009, up from 44 last year

Organized food retailing market is estimated at Rs. 40,000 crore & is expected to grow at 20-25% Quick Service restaurants account for 10-12% ofthis pie Indian fast-food retail segment is worth Rs. 650 crore & is growing at 40% a year

Indian Pizza Market

Branded pizza market stands at about Rs. 275 to 325 crore

Pizzas account for 5% of the quick service sector

The delivery segment is pegged at Rs. 180 crore which is growing at 15 – 20% annually

Pizza HutWorld’s largest pizza chain with over 34000 restaurants across 100 countries

Made its foray into India with a dine-in restaurant in Bangalore in June 1996

Currently has 137 outlets across 36 cities in India

Market Scenario

Number of customers (on an average)

on weekdays is 300 on weekends is 400

45% market share in the total market, i.e. delivery plus dining plus takeaway 40% growth year-on-year

Attracts 2,50,000 customers to its restaurants in India, each week

Service marketing

mix

Physical Evidence•The Logo of Pizza Hut ranked No. 2 in the most recognized brand

•Personnel wearing Pizza Hut uniforms

•New rider uniforms with the Freshizza logo

•Menu card, ambience, signboards & billboards and delivery scooters

Process• Pizza-making process takes about 20 minutes

• Delivers within 45 minutes

• Pizzas delivered in special heated pouches

• Customer rings the bell in the restaurant

• Staff members sing and dance for customers

People•Offers training programs

•Defines the skills, knowledge and training

required for each position through Job Maps

•Conducts annual performance appraisals

•Has events like ‘Employee of the month’ award

Public Relations

•Six-month initiative for the deprived

children

•An event for housewives

•Pizza Pooch Christmas Blast program

Pace

•Started focusing on the delivery market

•Introduced ‘Barah Nahin to Tera’ scheme

•Lose out to Domino’s due to poor logistics

Brand Description

Pizza Hut is classified as ‘Goods + Service’

Mostly Goods

Mostly Servic

esGoods

+Servic

es

Service-Product Continuum

Pizza

Variety In

Menu

Pizza Hut

Outlets

Local Specialty

Food

Personalized

Toppings

Home Deliver

y

Pizza Hut

Locater

Pooch

Zone

GoodAmbien

ce

Birthday Party

Arrangements

Core

Formal

Augmented

Total service Concept

Customer Relationship Management

Optimizes profitability by building long-lasting relationship through CRM

Birthday party packages contributes almost 8 to 10 % to their overall sales turnover

Introduced ‘Pooch Zone’ in their website

Conducts award programs to recognize outstanding employees

• Weaknesses• No valet parking• Advertisement are very

less• Fewer Outlets• Inadequate CSR

Strengths•Good Quality Food (Hygiene)•Brand Name•Food worth its Price•Good Service

Swot Analysis

• Opportunities More outlets should be open. Sitting Area should be broader. Environment should be more attractive. Attractive offers should be introduced.

• Threats Competitors like US Pizza, Dominos, etc. Local restaurants like Honest, Havmor,Choice Instant Fast Food Packets. Housewives are interested in making Pizzas fast Food at home

Value Proposition

Pizza Hut’s value proposition talks

about its international heritage, its

pizza expertise and world class

standards of quality and taste along

with its ambience

Introduction StageUsed Public relations over advertising

Distributed “free pizza passes” to journalists

Distributed pamphlets which contained images and information about Pizzas

Service Life Cycle

Thus, initially it followed “Informative Advertising Strategy” to build the primary demand

Growth Stage:Seek to establish the superiority of the brand through specific emphasis on one or more attributes

The attributes targeted are price and freshness. Thus they currently follow ‘Persuasive Advertising Strategy’

to differentiate itself in intense competitive environment.

Service Life Cycle

Hungry Kya….

Introduction

• Dominos Pizza Hut Ltd. was incorporated in March 1995 as the master franchisee for India and Nepal, of the dominos Pizza International Inc... Of USA.

• Ever since it was established, Dominos Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards.

SWOT analysis• Strength• Leading pizza Delivery Company in US

with more than 5,000 stores in the US. • Global franchisee operations – more

than 3500 in over 50 countries.• Strong brand equity supported by

heavy advertising and marketing campaign.

• Supply chain and distribution network

• Weaknesses• Slow growing and declining same –

store sales• Weakening bottom line

• Opportunities• Growing presence in emerging

markets, particularly in India, China• Leverages supply chain &

distribution system to introduce new products

Contd…• Threats• Changing consumer habits towards

healthier food choice • Franchisee operations affected by

currency exchange fluctuations• Intensive competition from a

fragmented number of small competitors

Service operations to ensure timely home

delivery• Home delivery first thing is that how to

they deal with the customer on phone as telephone communication is a real challenge and voice qualities are the only form of non verbal communication.

• Enthusiasm is there injected into the voice of people who are taking orders on phone.

• As the call comes they ask how can I help u

Contd… • Speak clearly and carefully listen

orders also with care• Provide information to customers

which is relevant

30 minutes guarantee

PIZZA HUT PARAMETERS DOMINOS

Need Understanding, Customer SERVICE Friendly, Individual attention

Neatness ,cleanliness, no valet parking

Congenial environment

Open Kitchen, lack of space

Less affordability by the common man

Pricing Given value for money pizzas

Inability to explain the offerings, slow service

Augmented Attending phone calls with patience, taking the order with a smile

Service charge is High Equipments, Customization

Credit Card, Customization, Services

Model of Service Quality Gaps

• Customers’ expectations versus management perceptions

• Management perceptions versus service specifications

• Service specifications versus service delivery

• Service delivery versus external communication

Contd….

• The discrepancy between customer expectations and their perceptions

• The discrepancy between customer expectations and employees’ perceptions

• The discrepancy between employee’s perceptions and management perceptions

•Wi-Fi•Variety in menu

•Tie up with Hotel Management Institute

•Game Counters

•Location Based Advertising •Different Pizza

Shapes

•Mascot

•Pizza Card

Recommendations

•No Hidden Cost•Diet Pizza•Outsource Real Estate Services

•Improve Logistics

Click to order•Nutrition Chart

•Rent outlets at fuel stations•Alliance with Airlines

Contd…..

Perceptual Map

Thank You