Compare and critically analyse the UK marketing strategies of Dominos Pizza and Pizza Hut - Essay Example

Comparing and Critically Analysing the UK Marketing Strategies of Domino’s Pizza and Pizza Hut Introduction Marketing is a diversified field that incorporates various elements in creating long-term relationships between producers and final consumers. In general terms, marketing involves product growth, price determination, promotion and placement of the product at consumer’s convenience. The fast food industry has grown very wide in the recent past. Some of the best performing firms in the fast food industry include Domino’s Pizza and Pizza Hurt (Pride & Ferrell, 2010).

Domino’s Pizza is a global pizza delivery franchise whose headquarters are located in the US. Domino’s Pizza Corporation spends millions of dollars annually in marketing its products across the world. The corporation has opened over seven hundred shops in the UK. A recent survey shows that the market share of the Domino Pizza in the UK has rose by 16% in a span of tree months. Pizza Hut Corporation is yet another global fast food franchise growing at a tremendous pace. The market share for the company in the UK has grown by over 10% in the past six months.

The profit margin for the company has escalated to over one billion dollars over the last financial period. Parker (2012) states that the corporation’s headquarters are based in the US and it is a subsidiary of Yum Brands Corporation. The purpose of this paper is to analyse the marketing strategies used by Domino’s Pizza Inc. and Pizza Hut Inc. in the UK. Marketing Strategies Used by Domino’s Pizza Inc. The corporation employs diversified marketing strategies in the UK market. Research has shown that the corporation makes use of the marketing mix techniques in an outstanding manner (Rozenn, Guy & Gérard, 2011).

In addition, the company utilises other marketing tools such as market segmentation and target marketing. In an endeavour to understand the marketing strategies adopted by Domino’s Pizza, it is imperative to start by discussing how the company utilises the 4Ps of marketing. Product The company has developed a variety of flavours for its pizza products. In essence, the company has identified that customers have varied tastes and preferences. The company invests enormously in researching the market in order to identify the changing consumption behaviour of consumers.

Most of the pizza products produced by the company have been developed in accordance with market demand, i.e. with adherence to suggestions made by customers. In addition, the older pizza brands have been improved to match the changing nature of the market. The company works tirelessly in differentiating its products from those of its competitors. The major concern for the company is high quality and consumer satisfaction. Price The company has developed a unique pricing strategy for its products.

For instance, the company uses a discriminatory pricing technique to sell its product in the UK market unlike its competitors such as the Pizza Hut, which pay little attention on price discrimination. Actually, the prices charged by the company in the UK market are different from those charged in other markets. It is imperative to identify that pricing is a critical process as far as marketing is concerned (Kapoor, Paul & Halder, 2011). When setting the price for a product, several factors must be considered.

For instance, the level of competition and production expenses must be considered. According to Levinson and Lautenslager (2005), the purchasing power of potential customers should be put into consideration. Domino’s Pizza factored in various issues affecting the prospective customers before deciding on the prices to change in the UK market. Promotion Domino’s Pizza has established various promotion strategies for its product in the UK market (Solomon, 2014). For instant, the company sponsors various clubs and charity organisations in Britain to popularise its products.

Some of the occasions that the firm has sponsored include Britain Got Talent and The Simpsons. Additionally, the company uses advertising media such as the television and the social media to promote its products. The company has adopted full use of modern technology in advertising its products. Most of the sales for the company are made online. In fact, over 60% of the company sales are made online. Most customers order for pizza online and delivery plans are also made online. Placement The company has ventured into digital marketing, a strategy that is rare with the Pizza Hut Company.

The company ensures that all pizza flavours are availed to customers on request via the various online platforms. In addition, the company has established various delivery outlets across the UK. Essentially, the company has developed efficient product distribution channels to avoid delays and inconveniences to the customers. Target Market and market segmentation Domino’s Pizza has established a unique target marketing strategy that aims at a certain category of consumers (Kennedy, 2011). The company targets university students unlike Pizza Hut which targets working the class people.

The company funds numerous pizza societies at various universities across the UK with an aim of attracting students. On the contrary, Pizza Hut is not concerned about sponsoring university clubs since the student population constitutes an insignificant percentage of its market. The Domino Pizza company targets the young generation since pizza eating is unpopular among adults over the age of fifty-five years. In this regard, most pizza products are tailored to suit the young people. Marketing Strategies Used by Pizza Hut, Inc.

Khobragade (2012) argues that Pizza Hut, Inc. has developed a comprehensive marketing strategy for its products in the UK market. The marketing strategy entails a combination of various marketing elements. Among the most popular marketing techniques used by Pizza Hut are; target marketing, market segmentation, product differentiation and appropriate use of the 4ps of marketing. In order to understand how the company applies marketing mix techniques, it is imperative to elaborate on the 4Ps of marketing.

Product The company has developed a variety of pizza brands to serve the emerging consumer needs. However, pizza hut products are designed to suit young people of high social status unlike Domino pizza products which are meant for students. In addition, the Pizza Hut company offers differentiated products to survive the stiff competition posed by other fast food corporations such as McDonald’s and Domino’s Pizza (Malouf & Colagiuri, 1995). The company places more emphasis on quality and size of the products.

Price The pricing strategy for the company considers consumer’s purchasing power and prices of pizza brands from other companies. The company charges relatively high prices compared to Domino Pizza since it targets people with high social and economic standing. The company charge prices on the basis of pizza size and the ingredients used in producing the pizza. In this case, customers in various income brackets are well served. Generally, Pizza Hut employs a skimming pricing technique. Promotion Pizza Hut employs various methods of product promotion.

In essence, Pizza Hut is known to be a good promoter of its products (He, Zha, & Li, 2013). Its promotional campaigns are aimed at informing and persuading consumers to purchase the various products it offers to the market. The company adopts techniques such as giving trade discounts and giving gifts to loyal customers. In addition, the company uses the television media and the various social media sites to promote its products. It is important to note that the company use of digital media for advertisement is less than that of Domino Pizza.

Placement Pizza Hut products are present in almost all urban centers in the UK. The existing and the potential customers do not need to cover long distance searching for Pizza Hut products. The company has established effective distribution channels to enhance convenience and timely delivery. However, the company needs to develop effective digital distribution channels such as the ones used by Domino Pizza. Target Market and market segmentation The company targets young people of high social and economic status.

Essentially, Pizza hurt focuses on major urban centers in the UK (Wu, Tsai & Peng, 2013). The mutual drive for focusing on the urban population is that, the urban people are more informed than those in the minor towns and rural areas respectively. Essentially, the company targets the youth and women since men and old people have a little preference for pizza. In this regard, most advertisement and products designs are tailored for the young people and women. Conclusion The UK market for fast foods has expanded in the recent past.

Several fast food industries have invested in the UK market. Domino’s Pizza and Pizza Hut are major pizza producing companies serving the UK market. The two companies have established various marketing strategies to survive the stiff competition in the UK fast food market. For the two companies to survive in the UK market, they must enhance continued quality improvement. In addition, they must always design products that meet consumer needs and specifications. In essence, massive advertisement must be maintained in order to retain the existing customers and win new ones.

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