International Marketing Case Study

2569 words - 11 pages

DECEMBER 2014 INTERNATIONAL MARKETING STRATEGY – PRE-ISSUED CASE STUDY & GUIDELINES Important notes for candidates regarding the pre-prepared case study The case study is designed to assess knowledge and understanding of the International Marketing Strategy syllabus in the context of the relevant case study. The examiners will be marking candidates’ scripts on the basis of the questions set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and to plan their time accordingly. Candidates should acquaint themselves thoroughly with the case study and be prepared to follow closely the instructions given to them on the examination day. Candidates ...view middle of the document...

Thus, questions will demand analysis in the examination itself and individually composed answers are required in order to pass. Candidates are only allowed to take up to two pages (four sides) of A4 notes into the examination room. These notes should be securely attached to the script at the end of the examination and returned. Your prepared notes will count for 15% of t he overall mark for this unit and therefore it is important that you ensure that these notes are included with your examination script. A copy of this case study will be available in the examination. Therefore, you will NOT be allowed to bring this case study into the examination room.

DECEMBER 2014 INTERNATIONAL MARKETING STRATEGY CASE STUDY – PIZZA WARS Introduction Until 1996, Pizza in India was synonymous with only a bready dough base slathered with some ketchup. Since 1996, there was a proliferation of ‘high-priced branded’ pizzas on 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. 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 throughout 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. Background Domino’s entered India in 1996 through a franchise agreement with Vam Bhartia Corp. The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino’s had a presence in all the major cities and towns in India. Pizza Hut entered India in June 1996 with its first outlet in Delhi. Initially, the company operated company-owned outlets. However, keeping in line with its worldwide policy where Pizza Hut was gradually making a shift from company-owned restaurants to franchisee-owned restaurants, Pizza Hut made the shift in India too. Pizza Hut had five company-owned franchisees – Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat, Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu) and Wybridge Holdings (Mumbai). Positioning Wars When Domino’s entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to...

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