MBA Aspirants are expected to know markets of established Brands. This helps them to understand industry for which they are dreaming to join in future. Today, you will read on Pizza market in India
Western culture has seeped into the Indian society, and this is evident in the clothes that people wear, the food they consume and the lifestyles they lead. And one of the foods that Indians have become a fan of is the pizza.
According to the Pizza Power 2013 State of Industry Report, the U.S., Brazil, Russia, India, and China are seen as emerging pizza markets in the world. The pizza market in India is worth over Rs 1,500 crores and has been growing at a consumer annual growth rate of 26% for the last 5 years.
In the pizza market, Domino’s has captured over 55% of the share in the organized pizza market and 70% in the home delivery category. This year, Domino’s opened its 600th store in India and is planning to open its 800th store by 2016.
This is the story of just one of the pizza vendors in India. There are many other pizza outlets such as Pizza Hut, Sbarro, Pizza Corner, and Slice of Italy that have expanded their reach in India.
Although their market shares are not as huge as Domino’s, they are still thriving despite an economic slowdown in India. There are many restaurants and fast food chains that sell pizzas because of the huge demand in the Indian market.
Everyone, especially those in the urban cities in India, lead a hectic lifestyle and prefer fast food to fine dining on a regular basis because of the quick service. As such, Domino’s, which guarantees home delivery within 30 minutes, has gained popularity among the citizens.
There are a number of promotional activities being carried out by pizza vendors such as ‘buy 1 pizza and get 1 free’ to entice people to consume more pizzas at affordable prices.
India’s middle class and the young population are growing rapidly, and this has led to the success and boom in the fast food industry. With more disposable income among the working population, people do not feel the pinch while indulging in outside food.
Apart from purchasing oven-hot pizzas from pizza outlets, Indians are fervently purchasing pizza bases from supermarkets so that they can create pizzas in the comfort of their homes.
Today, pizza bases, mozzarella cheese, pizza sauce, and other toppings are sold in almost every huge supermarket in India and those who prefer to make pizzas at home to suit their individual tastes can do so quickly.
Today, we see two segments of consumers – those who prefer fast food to survive the fast paced life and those who are health conscious. So, restaurants have customized their services to meet the needs of the consumers.
Instead of having pizzas with standard toppings, pizza vendors have allowed consumers to pick and choose the base of the pizza, toppings and other fillings. Those who are health conscious can add more vegetables and choose thin crust pizzas whereas those who prefer cheese can go for pizzas with cheese fillings, such as the cheese burst pizzas of Domino’s.
By allowing customization, pizza outlets in India have reached out to a wider consumer base and have increased their revenue as a result. Based on the data collected by research companies, it is evident that the pizza industry in India will grow at a rapid pace in the coming years.
In fact, based on the estimation of RNCOS, a leading industry research and consultancy firm, the pizza market will surpass the consumer annual growth rate of 27% by 2015.