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Hotel Industry

A comparitive study and two food joints

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Hotel Industry

  1. 2. Service Sector Management Project On Hotel Industry Pizza Hut v/s Dominos Guided By: Prof Hasan
  2. 3. Zeenia Dumasia 457 Fathima Habeeb 459 Nikita Kothari 473 Rupali More 479 Padmini Patil 484 Madhuri Rasal 487 Saloni Raul 488 ShleshaRedij 489
  3. 4. Why Pizza Hut? <ul><li>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 </li></ul>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% of this pie Indian fast-food retail segment is worth Rs. 650 crore & is growing at 40% a year
  4. 5. Indian Pizza Market <ul><li>Branded pizza market stands at about Rs. 275 to 325 crore </li></ul>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
  5. 6. Pizza Hut World’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
  6. 7. Market Scenario <ul><li>Number of customers (on an average) </li></ul><ul><ul><li>on weekdays is 300 </li></ul></ul><ul><ul><li>on weekends is 400 </li></ul></ul>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
  7. 8. Service marketing mix
  8. 9. Physical Evidence <ul><li>The Logo of Pizza Hut ranked No. 2 in the most recognized brand </li></ul><ul><li>Personnel wearing Pizza Hut uniforms </li></ul><ul><li>New rider uniforms with the Freshizza logo </li></ul><ul><li>Menu card, ambience, signboards & billboards and delivery scooters </li></ul>
  9. 10. Process <ul><li>Pizza-making process takes about 20 minutes </li></ul><ul><li>Delivers within 45 minutes </li></ul><ul><li>Pizzas delivered in special heated pouches </li></ul><ul><li>Customer rings the bell in the restaurant </li></ul><ul><li>Staff members sing and dance for customers </li></ul>
  10. 11. People <ul><li>Offers training programs </li></ul><ul><li>Defines the skills, knowledge and training required for each position through Job Maps </li></ul><ul><li>Conducts annual performance appraisals </li></ul><ul><li>Has events like ‘Employee of the month’ award </li></ul>
  11. 12. Public Relations <ul><li>Six-month initiative for the deprived children </li></ul><ul><li>An event for housewives </li></ul><ul><li>Pizza Pooch Christmas Blast program </li></ul>
  12. 13. Pace <ul><li>Started focusing on the delivery market </li></ul><ul><li>Introduced ‘Barah Nahin to Tera’ scheme </li></ul><ul><li>Lose out to Domino’s due to poor logistics </li></ul>
  13. 14. Brand Description Pizza Hut is classified as ‘Goods + Service’ Service-Product Continuum Mostly Goods Mostly Services Goods + Services
  14. 15. Core Formal Augmented Total service Concept Pizza Variety In Menu Pizza Hut Outlets Local Specialty Food Personalized Toppings Home Delivery Pizza Hut Locater Pooch Zone Good Ambience Birthday Party Arrangements
  15. 16. Customer Relationship Management <ul><li>Optimizes profitability by building long-lasting relationship through CRM </li></ul><ul><li>Birthday party packages contributes almost 8 to 10 % to their overall sales turnover </li></ul><ul><li>Introduced ‘Pooch Zone’ in their website </li></ul><ul><li>Conducts award programs to recognize outstanding employees </li></ul>
  16. 17. <ul><li>Weaknesses </li></ul><ul><ul><li>No valet parking </li></ul></ul><ul><ul><li>Advertisement are very less </li></ul></ul><ul><ul><li>Fewer Outlets </li></ul></ul><ul><ul><li>Inadequate CSR </li></ul></ul><ul><li>Strengths </li></ul><ul><ul><li>Good Quality Food (Hygiene) </li></ul></ul><ul><ul><li>Brand Name </li></ul></ul><ul><ul><li>Food worth its Price </li></ul></ul><ul><ul><li>Good Service </li></ul></ul>Swot Analysis
  17. 18. <ul><li>Opportunities </li></ul><ul><ul><li>More outlets should be open. </li></ul></ul><ul><ul><li>Sitting Area should be broader. </li></ul></ul><ul><ul><li>Environment should be more attractive. </li></ul></ul><ul><ul><li>Attractive offers should be introduced. </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Competitors like US Pizza, Dominos, etc. </li></ul></ul><ul><ul><li>Local restaurants like Honest, Havmor,Choice </li></ul></ul><ul><ul><li>Instant Fast Food Packets. </li></ul></ul><ul><ul><li>Housewives are interested in making Pizzas </li></ul></ul><ul><ul><li>fast Food at home </li></ul></ul>
  18. 19. Value Proposition <ul><li>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 </li></ul>
  19. 20. <ul><li>Introduction Stage </li></ul><ul><li>Used Public relations over advertising </li></ul><ul><li>Distributed “free pizza passes” to journalists </li></ul><ul><li>Distributed pamphlets which contained images and information about Pizzas </li></ul>Service Life Cycle Thus, initially it followed “Informative Advertising Strategy” to build the primary demand
  20. 21. <ul><li>Growth Stage: </li></ul><ul><li>Seek to establish the superiority of the brand through specific emphasis on one or more attributes </li></ul><ul><li>The attributes targeted are price and freshness. </li></ul>Thus they currently follow ‘Persuasive Advertising Strategy’ to differentiate itself in intense competitive environment. Service Life Cycle
  21. 22. Hungry Kya….
  22. 23. Introduction <ul><li>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. </li></ul><ul><li>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. </li></ul>
  23. 24. SWOT analysis <ul><li>Strength </li></ul><ul><ul><li>Leading pizza Delivery Company in US with more than 5,000 stores in the US. </li></ul></ul><ul><ul><li>Global franchisee operations – more than 3500 in over 50 countries. </li></ul></ul><ul><ul><li>Strong brand equity supported by heavy advertising and marketing campaign. </li></ul></ul><ul><ul><li>Supply chain and distribution network </li></ul></ul>
  24. 25. <ul><li>Weaknesses </li></ul><ul><ul><li>Slow growing and declining same – store sales </li></ul></ul><ul><ul><li>Weakening bottom line </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Growing presence in emerging markets, particularly in India, China </li></ul></ul><ul><ul><li>Leverages supply chain & distribution system to introduce new products </li></ul></ul>
  25. 26. Contd… <ul><li>Threats </li></ul><ul><ul><li>Changing consumer habits towards healthier food choice </li></ul></ul><ul><ul><li>Franchisee operations affected by currency exchange fluctuations </li></ul></ul><ul><ul><li>Intensive competition from a fragmented number of small competitors </li></ul></ul>
  26. 27. Service operations to ensure timely home delivery <ul><li>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. </li></ul><ul><li>Enthusiasm is there injected into the voice of people who are taking orders on phone. </li></ul><ul><li>As the call comes they ask how can I help u </li></ul>
  27. 28. Contd… <ul><li>Speak clearly and carefully listen orders also with care </li></ul><ul><li>Provide information to customers which is relevant </li></ul>
  28. 29. 30 minutes guarantee
  29. 30. 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
  30. 31. Model of Service Quality Gaps <ul><li>Customers’ expectations versus management perceptions </li></ul><ul><li>Management perceptions versus service specifications </li></ul><ul><li>Service specifications versus service delivery </li></ul><ul><li>Service delivery versus external communication </li></ul>
  31. 32. Contd…. <ul><li>The discrepancy between customer expectations and their perceptions </li></ul><ul><li>The discrepancy between customer expectations and employees’ perceptions </li></ul><ul><li>The discrepancy between employee’s perceptions and management perceptions </li></ul>
  32. 33. <ul><li>Wi-Fi </li></ul><ul><li>Variety in menu </li></ul><ul><li>Tie up with Hotel </li></ul><ul><li>Management Institute </li></ul><ul><li>Game Counters </li></ul><ul><li>Location Based Advertising </li></ul><ul><li>Different Pizza </li></ul><ul><li>Shapes </li></ul><ul><li>Mascot </li></ul><ul><li>Pizza Card </li></ul>Recommendations
  33. 34. <ul><li>No Hidden Cost </li></ul><ul><li>Diet Pizza </li></ul><ul><li>Outsource Real </li></ul><ul><li>Estate Services </li></ul><ul><li>Improve Logistics </li></ul>Click to order <ul><li>Nutrition Chart </li></ul><ul><li>Rent outlets </li></ul><ul><li>at fuel stations </li></ul><ul><li>Alliance with </li></ul><ul><li>Airlines </li></ul>Contd…..
  34. 35. Perceptual Map
  35. 37. Thank You