VietNamNet Bridge – The joining of Domino’s Pizza and The Pizza Company is believed to break the dominance of Pizza Hut on the Vietnamese market.

Pizza Hut, developed in Vietnam by IFB Holdings (Vietnam) and Jardine Restaurant Group (Hong Kong) turned up in Vietnam in 2007. After that, many other big guys have also flocked to the country, namely Pizza Inn and Pepperonis.

The pioneer always keeps the upper hand

With its strong brand and powerful financial capability, Pizza Hut has been leading the pizza market segment in the domestic fast food market.

By early March 2013, the chain had had 27 shops in Hanoi, HCM City, Dong Nai, Binh Duong and Can Tho. It also has five Pizza Hut Delivery branches in charge of delivering products to customers in Hanoi and HCM City.

Meanwhile, Domino’s only made its official presence in Vietnam, through IPP Group, in late 2010. Being the second biggest pizza chain in the US, just to Pizza Hut, Domino’s reportedly obtained the turnover of $1.7 billion in 2011.

Domino’s has been trying to expand its network in Vietnam recently in the implementation of its ambitious plan to overthrow the dominance of Pizza Hut. By early March 2013, Domino’s had opened 11 branches located in advantageous positions in HCM City. It has been following the low-price business policy, defining its sale prices lower by VND20,000-60,0000 per product than that of Pizza Hut.

The positioning policies of the big guys

Pizza Hut’s shops have been designed with the US style – cozy, suitable for families and friends to get together. Meanwhile, Domino’s has been focusing on the delivery service quality. The customers at Domino’s in HCM City have been served cakes put in once-use paper boxes and drinks put in plastic glass. Vietnamese have got used to the door-to-door delivery services provided by fast food chain, which has always been its strong point.

Pizza Hut has also been applying the Pizza Hut Delivery model in Vietnam. Currently, both the pizza chains commit to deliver products to customers within 30 minutes and offer free products the next time if they are late in deliveries.

The pizza chains have also been trying to adjust the menus to fit the Vietnamese customers’ taste in an effort to attract more customers. Those, who come to Pizza Hut shops, not only can order pizza, but also rice with chicken or baked ribs. Domino’s has put a new item into the menu – the pizza with sausage, a very Vietnamese dish.

The new rivals

Vu Trong Nghia, Marketing Director of The Pizza Company in Vietnam said the company would begin pushing up its operation from late March 2013.

The first branch of The Pizza Company was opened in Hanoi in mid 2011, which bears Italian style and offers the dishes fitting the tastes of South East Asian customers. The second shop of the chain is expected to be opened at Vincom Eden, a big shopping mall in HCM City.

Starting its business in Thailand in 1980s, The Pizza Company now holds more than 60 percent of the Thai market, even though it joined the market later than Pizza Hut.

The success of The Pizza Company has been explained the good understanding of the fast chain about the Asian tastes. According to Sattatip Peersub, an analyst from Kim Eng Securities, Asian customers pay more attention to their feelings when enjoying products rather than to the brands.

NCDT