Marketers need to know what their customers want. That’s hygiene.
Today, that’s not as simple as deploying a standard make-my-persona template and considering the job done. The customers’ needs and wants are in a state of constant flux.
And if you are a brand that has vacated its space for eight long years you have a lot of catching up to do. As a first step, you would be required to reconnect with your customers, and also subscribers and followers, as personally as possible. It is no longer about making a great pizza or putting it on the table piping hot.
The world’s third-largest pizza delivery company Papa John’s, which is plotting a comeback in less than two months, will meet a vastly different market from the one it exited in 2017 citing underperformance. Apart from the two category leaders – Domino’s Pizza and Pizza Hut that together account for over half of the Rs 15,000 crore organised pizza market — there are local heavyweights such as US Pizza, Uncle Sam’s, Smoking Joe’s and La Pinoz fighting for a share of the pie.
Besides having a head start, the incumbents also benefit from their localised menu and a strong tech-enabled delivery backbone. Their large scale also allows their networks to benefit from centralised spending on technology.
The rise of quick commerce and digital-first food platforms has further intensified competition, says Anand Ramanathan, partner and consumer industry leader, Deloitte India. Over 34 million pizzas were ordered via Swiggy in the past year alone.
So what will it take for Papa John’s to get back into the groove?
Papa John’s will likely benefit from its past learnings in the areas of expansion, localisation and pricing strategy. When it comes to food, the consumer can be lured with an innovative product range at the right price, points out Nisha Sampath, managing partner, Bright Angles Consulting. “While Domino’s Pizza owns speedy delivery (with its 30-minute promise), Pizza Hut specialises in dine-in. With its ‘better ingredients, better pizza’ tagline, Papa John’s can differentiate by offering a more premium range at an accessible price point,” she says. In addition, it can cater to segments that get less attention from mass brands such as Jains, vegans, and health-conscious consumers looking for options like millet bases, she adds.
Recipe for success
Papa John’s first comeback store is slated to open in Bengaluru in October this year, and it plans to expand the footprint to 650 over the next decade. In contrast, Domino’s has over 2,200 stores, Pizza Hut has over 1,000 outlets and La Pinoz has over 600.
Ramanathan adds that the Indian QSR market is highly price-sensitive and regionally diverse, requiring brands to adapt to local tastes and preferences with unfailing regularity. Despite these hurdles, Pulsar Capital, which is bringing the brand back to India, prefers to look at the opportunity. It says the fast-food segment is underpenetrated and there is plenty of scope for growth. Global pizza chain Little Caesars also launched its first store in Delhi this year and plans to add another 100 more in the next few years, underscoring the opportunity.
Ambika Sharma, founder and chief strategist, Pulp Strategy, says on the upside the Indian consumer is more open to experimenting today than ever and that the food delivery ecosystems have matured. “This creates an opportunity for Papa John’s to re-enter with sharper positioning around premium ingredients, authenticity and experience. Growth is possible if they anchor themselves in metro cities with a delivery-first model and then move into tier-II markets where eating-out and ordering-in are both rising,” she says.
Competitive pricing will be key given that market leader Domino’s Pizza offers its cheapest pizza in India at Rs 49. At the back end, Papa John’s could try to replicate the scalability model that has driven success for the two leading pizza chains. But it should be careful to not expand too fast and spread itself too thin.
A key task for Papa John’s would be to balance global identity with local adaptability, states Yasin Hamidani, director, Media Care Brand Solutions. Investing in tech-driven ordering, consistent service, and curated Indian flavours can help it stand apart from value-driven rivals, he says. The brand can tap into both dine-in revival and convenience-driven consumption. Digital-first campaigns and influencer partnerships will be critical to driving brand salience, he adds.