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INTRODUCTION
Until 1996, Pizza in India was synonymous only a bready dough base slathered with some ketchup. Since 1996, there was a proliferation of ?high-priced branded' pizzas in the market, with the entry of international pizza chains. Domino's and Pizza Hut, the two big US fast food chains entered India in 1996. Each claimed it had the original recipe as the Italians first wrote it and was trying desperately to create brand loyalty.
Domino's and Pizza Hut ? tried to grab as large a slice of the pizza pie as possible. (Refer Table II and I for market shares). 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. Domino's went a step ahead by differentiating regions and applying the taste-factor accordingly.
Domino's also made ordering simpler through a single toll-free number through out the country. Domino's and Pizza Hut expanded their market ever since they entered India. Domino's had grown from one outlet in 1996, to 101 outlets in April 2001. Pizza Hut too, which began with just a single outlet in 1996 had 19 outlets in 2001.
TABLE I - MARKET SHARES (1999)
PIZZA CHAIN MARKET SHARE (%)
Pizza Hut 46.42
Domino's 21.67
Others 31.91
Source: Financial Express
TABLE II - MARKET SHARES (2000)
Pizza Chain 2000 Market Share (%)
Pizza Hut 18
Domino's 70*
Others 12
Source: Business Standard, *as claimed by the company
BACKGROUND
Domino's entered India in 1 ...