Domino’s Pizza has chosen a market follower strategy. The product positioning of Domino’s is delivery in 30mins or less pizza to every customers. At such product promise, Domino’s able to implant the top of mind in customer’s mind. The product mix has evolved to include pizza, salads, sandwiches, chicken wings and specialty desserts. Whereas, Pizza Hut has always followed “Single brand positioning” called “Pizzas”. Pizza Hut also goes with multiple product strategy as Pizza Hut not only sells pizzas, they also deals with variety of other product such as appetizers, beverages, chicken wings. Pizza Hut more emphasize on the dining experience and food quality. Pizza Hut mainly sells Pan Pizzas, Stuffed Crust Pizzas, Thin Crust Pizzas, and Twisted Crust Pizza. Papa John’s against current national and local take-and-bake companies or non take-and-bake companies. They also serve pasta and rice, pizza pocket, soups and salads. Papa John’s resources are its commissary and high quality ingredients as it is raw materials.
_PRICING (MALAYSIA PRICING)_
_SMALL/ REGULAR/ LARGE_
_STANDARDIZED ORDINARY PIZZA PRICE_
Rm11.80/Rm 24.80/ Rm 34.80
Rm9.80/ Rm 21.80/ Rm 30.80
Rm12.50/Rm 23.90/ Rm 32.50
_* Current pricing list of Pizza Company in Malaysia._
From the table we can see that Pizza hut offers the best deal of ordinary pizza out of Domino’s and Papa John’s. The price range of pizza is RM10-RM35 excluded tax and service charge. Mostly the high price attributed to the high quality of ingredients used. For example, Domino’s sourced its Pepperoni and Jalapeno needs from Australia and Spain respectively. Meanwhile Pizza Hut implementing “A high/low pricing” strategy as far as its new product are concerned where it fixes the price higher than its competitors and then gradually lowers the price below the competitor’s price. Papa John’s utilizes the point-of-sale technology in all outlets in the mean time; Papa John’s also currently follows a low cost differentiation strategy for its production policy.
_PROMOTIONS (PROMOTIONS APPLICABLE IN MALAYSIA ONLY)_
In the aspect of sales promotions, there are customer’s claimed that Domino’s actually offering the best deal of the price. This is because Domino’s is having an offer which customers who order up to two regular pizzas only cost RM 30. Pizza Hut is using a marketing strategy in order to capture consumer’s philosophy by selling their personal pizza and every day $10 large pizzas offer. Papa John’s do has its promotions where customers buy any medium or large pizza will get same size of another pizza for free on Tuesday only. From the aspect of media advertising, Pizza Hut has always been named for the good advertising. Pizza Hut has widely promoted by all kinds of advertisement through television, radio, newspaper. In Malaysia, we seldom see Domino’s and Papa John’s advertisement on television but frequently heard from radio or print media. Basically all pizza company does direct marketing like they selling pizza through internet and number.
Since Domino’s is not a dine-in restaurant so Domino’s does not offer dine-in as a method to distribute its products. With the advent of mobile apps, Domino’s has now digitalized their system for the ease of ordering. Online ordering is also a method that Domino’s used to distribute its products to the customers. Domino’s utilizes 30minutes or less delivery or it’s free basis. Pizza Hut uses three different methods of places its products directly to the market. The first method of distribution used by Pizza Hut is by delivery. Customers can call Pizza Hut and place order, and then the order will be delivered to the customer’s home. Secondly, customers can choose to dine-in in restaurant over delivery. Lastly, Pizza Hut does receive orders from the internet from customers who would like to order a delivery. Similarly, Papa John’s is using delivery to distribute their products to their customers. Other than that, they also using dine-in as a way to give-out their products unlike Domino’s.
Courtney from Study Moose
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