Marketing Strategies and Plans

In-depth comparative analysis of marketing strategies followed by

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MARKETING STRATEGIES

DEFINITION:-

Marketing strategy is the goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives.

TYPES OF MARKETING

1. Social Marketing:

It refers to the design, implementation and control of programs to increase the acceptability of a social cause or practice among people e.g. No Smoking campaign in Delhi University, publicity campaign for casting vote.

2. Augmented Marketing:

It refers to providing additional services by way of innovative offerings and benefits to the customers to increase his level of satisfaction e.g. free home delivery service by Supermarkets.

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3. Direct Marketing:

Marketing through various advertising media that interact directly with consumers, generally calling for the consumer to make a direct response e.g. Catalogue Selling, Mail-order, Tele-calling and TV shopping is known as direct marketing.

4. Relationship Marketing:

Marketing through creating, maintaining and enhancing strong long-term relationships with customers in order to win his loyalty e.g. a restaurant can build relationships with customers by sending him wishes and discount offers on his birthdays.

5. Services Marketing:

It is applying the concepts, tools and techniques of marketing to services like banking, insurance, retailing, educational etc.

6. Person Marketing:

It consists of activities undertaken to create, maintain or change attitudes or behavior towards particular people like politicians, sports stars, film stars, professionals to promote their careers and income.

7. Organisation Marketing:

It consists of activities undertaken to create, maintain or change attitudes and behavior of target audiences towards an organisation.

8. Place Marketing:

Place marketing involves activities undertaken to create, maintain, or change attitudes and behaviour towards particular places e.g. tourism marketing.

9. Differential Marketing:

A market-coverage strategy in which a firm decides to target different markets through different strategies or offers e.g. Hindustan Unilever offers different types and qualities soaps for different markets and customers.

10. Synchro marketing:

It refers to balancing the fluctuations in irregular demand for a product due to seasons, timings etc, through flexible pricing, promotion and other incentives e.g. heavy off-season discount on woollens may increase its demand to some extent.

11. Concentrated Marketing:

A market-coverage strategy in which a firm focuses on only one or few markets is called the same.

12. De-marketing:

Marketing strategies to reduce demand temporarily or permanently, not to destroy demand but only to shift it e.g. Super stores may offer no discounts on Saturdays, Sundays and holidays to reduce overcrowd.

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Levels of Marketing strategies

There are three strategy levels that you should be aware of when developing objectives for your business. They are functional-level strategies, business-level strategies and corporate-level strategies. 

1. Functional-level strategies are focused on improving the effectiveness of a business at an operational level. Functional-level strategies are aimed at improving the efficiency and effectiveness of manufacturing, marketing, customer service, resource management and product development. They also aim to increase the level of innovation in the business with a focus on meeting customer needs.  Functional strategies have the narrowest scope of the three strategy levels. They add the details and specific targets to the overall management plan and are used to implement actions and practices in key business activities.

2. The overall way that a business defines itself in a market is set by the business-level strategies. Business-level strategies are used to determine a business' competitive advantage and include specifics about positioning, differentiation and responding to market changes. Business-level strategies are also used to unite and coordinate the strategies of the different functional-level departments of the organisation.

3. The highest level of strategic management involves establishing the corporate-level strategies. Corporate-level strategies are concerned with defining how the business will remain sustainable in the long term. They are focused on maximising long term profitability and business growth. Corporate-level strategies allow you to focus your organisations investment on areas of the business that will help you to achieve your long term goals and objectives.

A clear understanding of the three strategy levels will help you to set realistic objectives, develop plans for achieving them and ensure that your business remains sustainable in the long term. The three strategy levels are not completely independent of each other and must be developed and implemented in a coordinated manner.

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Introduction to Fast Food Industry

Fast food is one of the world’s largest growing food types. India’s fast food industry is growing by 40% .the multinational segment of Indian fast food industry is up to Rs. 20 billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6 years, foreign investment in this sector stood at rs.3600 million which is about one-fourth of total investment made in this sector. Because of the availability of raw material for fast food, global chains are flooding into the country. The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001.

Amid an economic slowdown, it seems India’s consumers will still give themselves a cheap treat. International and domestic fast-food chains are growing rapidly, catering to India's young and increasingly wealthy population. Yet with the market still dominated by small stalls, restaurants are struggling to keep prices low enough to benefit from the mouth-watering opportunities.

Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India, exposure to global media and western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends.

Major players in fast fo o d Industry are :

Mc Donalds Subway Barista KFC Pizza Hut Dominos Burger King

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Reasons for Emergence

The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNC’s, learnt a few things but there is still a lot of scope for improvement.

Gender rol e s :

Gender roles are now changing. Females have started working outside. So, they have no time for their home and cooking food. Fast food is an easy way out because these can be prepared easily.

Custo m er sophistication and confidence :

Consumers are becoming more sophisticated now. They do not want to prepare food and spend their time and energy in house hold works. They are building their confidence more on ‘ready to eat and easy to serve’ kind of foods

Paucity of ti m e :

People have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time either people work or want to enjoy with their family.

Double inco m e grou p :

Emergence of double income group leads to increase in disposable income. Now people have more disposable income so they can spend easily in fast food and other activities.

Large populatio n :

India being a second largest country in terms of population possesses large potential market for all the products/services. This results into entry of large number of fast food players in the country. Relaxation in rules and regulations, with the economic liberalization of 1991, most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This helped significantly the MNC’s to enter in the country.

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MARK E T S H A RE AND M AJOR PLAYE RS

The organized pizza market in India is worth Rs.600 Crore. The major players in the market are pizza hut and dominos whose market share are around 45% and 35% respectively.

Other players form the rest 20% .

Other players mainly are

• Smokin joe’s

• Garcia’s

• Papa john’s

• Us pizza

These players mainly give competition to Pizza Hut and Dominos in tier I cities like

Mumbai, Bangalore, Chennai etc. They do not have much presence in tier II cities.

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DOMINOS BRIEF HISTORY

Founded as a single store in 1960, Domino’s Pizza today stands as the recognized world leader in pizza delivery. From the beginning, they have been dedicated to the best of service, quality products and delivery excellence.

Domino's Pizza Corporate Facts

Each day, more than 1 million customers enjoy hot, delicious Domino’s Pizza products on every inhabited continent on Earth, because they operate over 11,000 stores in more than 70 countries; each and every store dedicated to their focus of providing great-tasting pizza – whether it be delivered directly to your door or available for carryout. They pioneered the pizza delivery business back in 1960, and our total system sells more than 400 million pizzas worldwide.

Great Name Brand Recognition

Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three times – including back to back wins, the first ever company to do so, in 2010 and 2011.

Our Products

Products such as Handmade Pan Pizza, Oven Baked Sandwiches and Domino’s Indian Legends have been added to our product line-up since 2008, along with complementary side items such as our Parmesan Bread Bites, Stuffed Cheesy Bread and Chocolate Lava Crunch Cakes. In late 2009, Domino’s debuted its Inspired New Pizza – a permanent change to its core hand-tossed product, reinvented from the crust up with new sauce, cheese and garlic-seasoned crust.

Innovating the Pizza Delivery Business

Throughout our history, in addition to pioneering the concept of efficient delivery of made-to-order pizzas, they have been part of innovations that have made significant impact on the pizza and delivery industries. Here’s a look at some of our innovative thinking:

Domino's HeatWave   Hot Bag Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during normal delivery. Originally, each hot bag contained a patented heating mechanism charged by plugging into an electric outlet at the store. The outer material of the bag is made with water-repellent nylon, which replaced the less sturdy vinyl material previously used. Domino’s has continued to innovate and evolve the technology, removing the electric cord and heating each bag via an induction heating system. The

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latest edition of Domino’s HeatWave bags relies solely on a patented insulation system that keeps pizzas both hot and crisp – completely eliminating the need for electricity.

A better box Domino's was the innovator behind the sturdy, corrugated pizza box, which keeps moisture from weakening the box, while preventing cheese from sticking to the top during delivery.

Spoodle This saucing tool combines the best features of a spoon and a ladle, cutting down the time spent saucing a pizza. The Spoodle was introduced at the 1985 World's Fastest Pizza Maker competition by the eventual winner, Jeff Goddard.

Domino’s Online Ordering – Pizza Tracker, Pizza Builder and Profiles  Domino’s launched online ordering in 2007, and in 2008 revolutionized the customer experience by launching its innovative Pizza Builder and Domino’s Tracker. Pizza Builder allows customers to see their pizza come to life on the computer screen, as toppings and crust styles are selected in real time. Domino’s Tracker allows customers to follow the progress of the order, from the time it’s placed until customers receive it. The experience has seen various looks, themes and interactive opportunities since its debut. While the Pizza Builder has since been mimicked by other pizza companies, we remain the only company offering the unique, engaging ordering experience of Domino’s Tracker. In 2013, we launched our enhanced online ordering profiles platform, allowing customers the ability to reorder their favorite order in as few as five clicks, or about 30 seconds

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CUSTOMERS

For whom the co mp anies exist!

Mostly customers come at Dominos for food and the others for enjoyment as their basic requirement. Mostly customers come to dominos for take away pizzas while they come to pizza hut for the dining experience. Their unsatisfied need is either food or enjoyment.

Most customers in dominos are from the middle income group or students whose disposable incomes are relatively low. Generally everyone finds the taste of the pizzas to be good.

Also the location of the restaurant makes a lot of difference as many people come to dine due to its strategic location. Even we had food in the restaurant and we also found the taste to be great! People preferred dominos for their relatively lower price.

Influence in Buying Pattern

Buying pattern is also influenced by the preferred their choices due to their wards but mostly for single adults their choices depends upon them.

Also the brand recall off the restaurants makes a lot of difference. A hard core follower of dominos will have food from dominos only.

General buying pattern (this data is pertaining to Coimbatore city)

From this data we can interpret that only 20% of customers have pizza frequently. At the same time 20%of customers have pizza rarely.

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Core Competencies

Pizzas topped with cheese and happiness, dominos is committed to put an extra smile on its customers’ faces, with a mission of “exceptional people on a mission to be the best pizza delivery company in the world! ".

Tracing footsteps

Many pizza lovers would still remember the havoc that occurred in mid April 2009 in which some dull witted dominos employees posted a kitchen video of dominos that clearly showed the lack of sanitation in their kitchen in Youtube.

The video attracted millions of views in a few hours and was indeed viral. Dominos did an excellent job of crisis management and used social media to spread a viral video in which the company president took control of the situation and apologized to the public, announced separation of the company from wrong doers and their prosecution. He also guaranteed that such issues will not happen again. Dominos clearly proved that communication meant engagement, transparency and responsiveness to the interaction with customers.

Throu g h the looking glass

It has never been difficult for dominos to find out novel ways to enthral its customers.

Delicacies that do not rip wallets have always got the crowd coming back to the dominos although its ambience is not up to that of its competitors. ‘Khushion ki home delivery’ was the campaign where the order gets delivered in less than 30 minutes. All other activities, be it new variants, great service, timely deliveries or more for the same price the effort of dominos has always been directed towards making its customers happy.

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SWOT ANALYSIS

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Domino’s is a very recognizable brand name throughout the world and is the leader in the pizza delivery and takeout business. Domino’s continues to operate throughout the United States as well as in over 55 other countries.

Strengths

Since Domino’s is so widely known, it has a worldwide presence. Domino’s has stores Mexico, South Korea, Canada, Japan, France, Taiwan, and many other countries. They are a figurehead in the pizza delivery industry. In addition with its worldwide presence, Domino’s has an extremely strong brand image. This results in very loyal customers and helps the company when they introduce new products. Domino’s also has a very strong network with its franchisees. They are all extremely diversified and with their strong network, they are able to increase their market share and encourage sales.

Weaknesses

A major weakness for Domino’s is that they have experienced a decline in their store sales. Over the past two years the revenues have declined and this can affect their brand image and their profits. Part of these losses was due to the decline in the number of domestic franchises that were open in 2008. Domino’s hopes to turn these numbers back around in the next couple years.

Opportunities

Domino’s has multiple opportunities. One significant advantage Domino’s has over its competitors is their focus to delivery pizza the most efficiently. This helps improve their operating effectiveness with minimized spending. There is a large growth in China and India’s population and Domino’s could take advantage of this growth to help increase their market presence and increase their revenues. Domino’s has also begun to offer their services on mobile devices and now many sales come from their iPhone application. They constantly are working to find new improvements to maintain their growth and continue to gain and lead in competitive advantages.

Threats

The competition of the pizza delivery industry is definitely a threat for Domino’s. There are constantly new businesses being formed in the pizza and fast food industries. Some of their emerging competitors are Pizza Hut, Papa John’s, and McDonalds. Another threat is how

people are becoming much more aware of their health. With this increase in health awareness, it could affect the profits of Domino’s. A final threat is the increase of labor and food prices. Minimum wage has a major impact on their business. All of Domino’s supplies have also increased in price and this has hurt their profits by increasing their operating costs.

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Analysis of the competitors

Domino’s has many competitors both domestically and internationally. According to a

study, Domino’s is the “world's #2 pizza chain. Their competitors include fast food

companies such as McDonald’s, as well as other pizza take-out services like Papa John’s,

and worldwide pizza delivery company giant Pizza Hut.

McDonald’s Corporation Inc.

A massive worldwide franchise that specializes in the fast food industry is McDonald’s. In

2008, McDonald’s revenues exceeded $23 million. McDonald’s brand image is a major

strength for them as people of all ages across the globe recognize the golden arches logo.

With their well recognized logo, McDonald’s has been involved in many legal issues such as

being accused for false advertising and violation of fraud acts.

Papa John’s International, Incorporated

Domino’s competes with Papa John’s on the same level of pizza delivery and pizza takeout.

Chicken wings and chicken strips are also a specialty (along with pizzas) for Papa John’s.

They recorded a $36.8 million net profit in 2008. This was a twelve percent increase from

the previous year. They remain a large competitor of Domino’s with their increasing

popularity.

Pizza Hut

Pizza Hut operates as a subsidiary to the food giant Yum! Brands. They specialize in pizza

making. Pizza Hut is even more focused on health conscious people by incorporating a salad

bar into their sit down restaurant section and by serving nutritional pasta bowls. They also

have an extremely strong brand image and compete with Domino’s for brand recognition.

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Industry analysis

The pizza industry is a highly competitive and mature market. There are over 150 well

known pizza franchises, which account for about 60% of the market. Along with the well

known franchises there are an unknown number of local pizzerias throughout the world.

New franchisees and smaller pizzerias are continually opening, which create more

competition throughout the industry The industry has faced some hardships with the trends

of society and declining economy.

Consumers now are requesting healthier choices for themselves and their families. Many

people are also more interested in where the products are produced and what ingredients go

into making their food. To combat this health awareness among consumers, pizza restaurants

are trying to change their dough by having healthier fats, which is done by incorporating

more whole wheat into their crusts. The pizza toppings are also becoming healthier, and

some pizzerias are introducing salads into their menus.

The rise in minimum wage has also posed obstacles for the industry, requiring more of their

operating income to be dedicated to labour costs. The increase in the price of inputs has also

changed their profitability. The cost of wheat has tripled, cutting the amount of profit per

pizza.

Another impact of the pizza industry is the use of mobile technology. The popularity of the

Internet and the ability to order a pizza on the computer or on a mobile device has changed

the industry significantly. Many companies offer online orders and some are offering orders

through text messages. Over the past few years, there have been many significant changes

throughout the pizza making and delivering industry.

Prices vary greatly from country to country.

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Product Positioning

The customer value hierarch y

We know that dominos has a food as a basic product but overall it provides an experience. Thus a person having a basic need of food can go to dominos and have pizza which is the company’s core product. Hot pizza and good taste are his expectation. Thus the company should ensure this by providing good pizza. The value adds services refer to the overall dining experience, the service quality, ambience etc.

Product differentiatio n

Domino's pizza India has maintained its position in the market with its constant product innovation and maintenance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. As the name suggests ‘the pizza delivery experts’ customers can order their pizzas by calling their hotline. Domino's believes strongly in the strategy of 'think local and act regional'. Thus, time and again domino's has been innovating toppings suitable to the taste buds of the local populace and these have been very well accepted by the Indian market.

Also they had their promotional campaign ‘hungry kya?’ which means call up dominos if one is hungry and have the food in 30 minutes.

Mass custo m isation

The main advantage of pizza hut is that one can customise his own pizza by selecting the bread and loading it with the toppings which one can select. This creates variety in the customers mind and thus one can enjoy whatever pizza hut can offer.

The most unique feature is that there is ‘single slice pizza’ scheme where one can select any vegetarian /non- vegetarian pizza at a lower cost. This is a unique way of offering as there are many consumers who would not afford a regular size pizza and hence they can have a slice of it.

Deliver y

Pizza hut’s style of delivering the pizza to the customer is not quite great. The restaurant is not so aesthetically designed; all the staff members are dressed in a not so attractive manner.

Also the tables, menus are all placed like in a normal Indian udipi restaurant. One can find that dining at dominos outlets is not that good. The food is good but the ambience isn’t.

However they are the universal kings in serving pizzas at home. They brand their pizzas in

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that fashion only. Their motto is to serve the pizza at customers home. Dining for them comes as secondary. The company doesn’t give importance to improve the dining standards. All orders placed in restaurant are served within 15-20 minutes and the take away orders (ordered on phone) is delivered within 30 minutes. Care also has been taken by the company to pack the pizzas in special covers so that it remains hot till the customer haves the food. Any pizzas delivered outside 30 minutes are given free. Also discount coupons are given to the customer in case one doesn’t want a free pizza.

PRODUCT LINE ANALYSIS

The company has a basic platform for offering pizza and have added on different modules to meet the ever changing customer requirements. Thus the major chunk of profit comes from pizzas and pastas. While beverages and desserts contribution towards profits is to a lesser extent.

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PLACE

Once the product has been decided upon and the market segmented, targeted and the product positioned, it is time to decide how and where the marketer can deliver the value (Product) to the customer. This is done through marketing channels that make the product available for consumption to the customer.

Push and pull strategies in channel marketing:

In a push strategy, the manufacturer uses his sales force, trade promotion, money or other means to induce intermediaries to carry promote and sell its products to end users.

In a pull strategy, the manufacturer uses advertising, promotion and other forms of communication to persuade the customer to demand the product from intermediaries, thus inducing the intermediaries to order it.

Pursuing a push strategy

Domino’s pursues a medium push strategy in its channel marketing. The advertising layout for Domino’s is minimal in India. Domino’s concentrates on incentivizing customers instead off advertising and promotion. As a result, Domino’s regularly introduces sell-in schemes (promotional schemes for dealers) Promotional coupon, festival offers etc.

PROMOTION

Promotion, which is known as marketing communication, is a major attribute for any product or service. In modern marketing it is more than developing a good accessible product or exact pricing. Ever since it was established, Domino’s Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. Customers can order their pizzas by calling a single countrywide Happiness Hotline 1800-111-123. In fact, Domino's was the first one to start this facility for its customers.

Domino's is committed for bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base.

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Communication objectives

Category need

Domino’s master franchise model

Industry analysts believed that Domino's master franchise model was one of the reasons forIt’s success in international markets even in light of the global economic slowdown in 2008.

How domino's international bucked the trend

The strong performance of Domino's international master franchises in the midst of the globaleconomic slowdown was a widely debated topic among analysts. While some analysts believed that the recession had helped the growth of these chains due to the 'trading down factor' of people preferring to eat at home rather than dine out at expensive restaurants, others believed it was a combination of aggressive marketing and the franchise model that had helped the company buck the trend.

Brand awareness

Promotional and advertisement campaigns

The pizza delivery business had traditionally been promotion driven. Coupons and discounts were offered by all pizza delivery chains to woo customers. Since its inception Domino’s has been known for its unique promotions that included fast delivery and innovations to cater to a varied palette.

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The '30 minutes' promise

In the year 1973, Domino's began a guarantee scheme that its pizzas would be delivered in 30Minutes or less of ordering failing which the customer would receive the pizza free.

Brand attitude

Use of technology

Online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn.

Brand purchase intention

What makes domino’s pizza better than its competitors?

Dominos have strong service facilities like ’30 min’s NAHI TO FREE’ (otherwise FREE): dominos were the first to start the trend of 30 minutes otherwise free that means they will deliver your order within 30 minutes otherwise they will give you for free and they are very honest with this concept as they do what they say but they never let their employees to drive the bike so fast in order to reach before 30 minutes and all the employees have to follow this rule strictly and they reach any place before 30 minutes. So it has good door step services within half an hour.

Low price menu : In India Domino’s is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. Those people are eager to go for an outing in any festival and want cheap and best family restaurant. Domino’s would be most preferable. They do not need high class ambiences or amusement in the shop so the establishment cost is low for the dealers and the price of pizza is very reasonable for the customers.

Variety of Pizza’s: Dominos Pizza has a lot of varieties like vegetarian and non-vegetarian. In vegetarian lots of pizzas are available as well as non-vegetarian too. (Adam, 2010)

Quality of Pizza’s : The quality of Dominos Pizza is also very good. The taste of all the pizzas is very yummy.

More outlets: Even in smaller towns: dominos have its outlets even in the smaller towns its popularity and pizzas are not limited to big cities but small cities also due to which people know it more whether from a metro city or from small city.

Quick service at outlets: The service at the outlets of dominos is very fast and customers don’t have to wait for long for their order which makes the brand even better because low price along with good service as a very rare combination.

Excellent offers: The Domino’s pizza franchise constantly keeps on inventing ways through which it can make a greater impact on the fast food market. That is how the fast food franchise came up with “Fun meal is four offers”. Through this method, the pizza franchise is able to produce more variety in the food delivered to its customers at their door steps. Through its “Fun meal for four” pack the Domino’s pizza India offers four

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pizzas at the rate of Rs. 180. This means charge of one pizza will be just Rs. 45. Domino’s mainly offers are more attractive for the students and middle class people and they are the main customer which they targeted. Domino’s also regularly introduces sell-in-schemes like promotional schemes for dealers, promotional coupon, festival offers etc. Sometimes they also give great discounts to the customers. (Groupon)

Strong Presence: They have a very strong presence in the market and through its long presence in the market and continuous loyalty toward the customer providing them a great service at a cheaper rate it really have created a very good reputation and brand name. So it makes Domino’s Pizza better than its competitors.

Developing effective communication

Target to age group/class

Domino’s target audience is a consumer who belongs to age group of 14 to 35 years from the Economic Class A or B and preferably one who has been exposed to the western culture as well as the western style of eating. They are people who are upwardly mobile and don’t mind to pay for convenience. In this category teenagers are the most affected by western culture and its eating habits. The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70% of the total sales volume of pizzas in India. As far as the socio Economic class is concerned, since Domino’s pizzas are priced from about Rs.80 onwards. However, Domino’s have now come out with pizzas ranging from Rs.39 onwards to target the ever-increasing middle class consumers.

Domino’s has also segmented the market geographically by deciding to initially cater to only the metropolitan cities and urban areas. They have left out the rural areas due to the low level of awareness regarding western dishes as well as typical Indian patter of eating.

30 min campaign

This is a campaign in which Domino's offers its customers free Pizzas if they are not delivered in 30 minutes from the time of order. They have a store in a radius of 3 kms in major metropolitan cities. Anything which is far away from 3 kms doesn’t fall in this category. Domino's latest special offer promises a hot and piping pizza delivered on door less than 30 minutes, or it's free. But 30 minutes is a very short time for a typical Dominos Pizza local delivery, but it's the latest special offer from Dominos in an effort to outdo the competition. Still, there are some cities where it must be really tough to make a Dominos Pizza local delivery, the cities where traffic congestion is a natural way of life.

‘Can a Dominos pizza local delivery survive the daily traffic jams?’ is the question to be asked.

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Design the communication: Message strategy

Offers by dominos

• With every order of pizza and coke/Garlic bread sticks get a domino’s pasta for Rs. 39 instead of Rs 69.• Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/- & non veg Rs 79/-• Get garlic bread for only Rs 30/- with any of the pizza mania combinations.• Dominos start providing coke/fanta/sprite.• Dominos started pizzas mania which starts from Rs 35 and we get the toping according to our choice.• Web coupons available at web site www.dominos.co.in• Discount coupons are being provided with every item purchased.• New schemes at regular interval of time according to the taste of the Indian customer.

Creative strategy

Latest in domino’s

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• Kwality wall’s ice-creams in dominos- For the first time dominos started offering ice-creams. Selling ice cream in Domino’s is also a new sales promotion strategy to attract more customers in a new perceptive /innovative way.• Domino’s has also come up with pasta mania.

Communication mix

Every company must follow the eight major marketing communication modes.For Domino’s direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Domino’s always search for ways to gain efficiency by replacing one communication with others. The sustainability among communication tools explains why marketing function need to be coordinated.

Advertising

It reaches geographically dispersed buyers. Domino’s vision is focused on “Exceptional people on a mission to be the best pizza delivery company in the world! ". Domino's is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base. It’s all advertisement are image of core competencies. Their taglines “The Pizza Delivery Experts” and “Hungry kya?” are showing their focusing area in promotion.

Events/ Experiences

They are sponsoring some college fest, cultural program and promotional events throughout the country for promotion.

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Public Relation

Domino's constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow effect (the feel good factor). Domino's believes strongly in the strategy of 'Think local and act regional'. Thus, time and again Domino's has been innovating toppings suitable to the taste buds of the local populace and the Indian market has very well accepted these.

PERSONAL SELLING

Domino’s constantly strive to make the company an integral part of the lives of the target audience by getting involved with the clientele at the emotional level and building long term relations with them. Thus dominos concentrates more on carrying out below the line activities in the area it serves.

SALES PROMOTION

In India dominos has been associated with the NGO’s devoted to the cause of underprivileged children. Dominos conducts store education tours for the under privileged children time to time. They are continuously offering new incentives to the customers.

Word of Mouth

This tool is very powerful for promotion in the fast food industry. Low price and good behaviour gave them the edge in India.

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SUG G E S TION S

Dominos

• The dining conditions have to be changed drastically if Dominos has to target the premium segment of customers.

• They are way behind Pizza Hut in the dining experience. Some of the Dominos restaurants lack even basic amenities

• Due to this a condition can occur where customers judge the quality and taste of the pizza with respect to the restaurant environment and ambience

• Thus to have a greater market share and tap premium segment of the market, Dominos can provide good quality restaurants

• There should also be provision for music, TV’s, kid’s zone etc in the restaurant

• By doing this they can even charge a little bit more on the food items

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Short Term Recommendations

With the decline in the economy, Domino’s experienced negative sales in 2007 due to the

decreasing demand of their customers. This directly correlates with their customers’ spending

habits. Because of the harsh conditions of the economy, many people are not able to spend as

freely as they used to in years past. Domino’s advertising campaigns has had little to no appeal

to their consumers during these hardships. To combat the hard economic times, Domino’s

should invest in marketing procedures like offering more coupons or special offers for certain

reasons or times. This not only would help combat competitors, it would also help increase

their revenues during these hard economic times.

Along with coupons and special offers, Domino’s can also enhance their customer base by

improving their online ordering procedures. For example, Domino’s could implement a

strategy that would be helpful for customers who are looking towards Domino’s for parties or

special events. They could allow the user to create an order and specify the date in which the

pizzas would be needed. The user would also need to enter certain criteria, such as the number

of people attending, what type of pizza(s) they wanted, and a contact number so Domino’s

could confirm the order before the pizzas are made. Domino’s could work to implement their

online ordering strategy to all of their international and domestic stores. This would allow for

Domino’s to be more competitive in the market as well as be more flexible with their

customers’ needs.

In association to their better online strategy, Domino’s could also continue to improve their

delivery strategy. Although their delivery time has been reduced, there are always situations

where customers believe their pizza could have been delivered faster. If Domino’s can

implement a better way of taking and delivering a pizza at a faster pace, they can improve their

customers visions of the company, which would increase their market share as well as profits.

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Long Term Recommendations

Domino’s has continued to produce fantastic revenues over the past few years. However, Domino’s can use various strategies in order to increase their customer base as well as international expansion in the long run. For example, they could offer new menu items specific to the store location, open more stores around the world, and develop new products.

All of the strategies would continue to better their brand recognition across the world. By offering new menu items that are specific to the locations that their stores are located, customers can experience domino’s superior products as well as maintain their countries local customs and culture. For example, Domino’s can expand further into India and offer better products that do not contain beef. They can create products that include more poultry items such as chicken, duck, and other items. Also, Domino’s could also offer more white sauce products on their menu rather than the traditional red sauce that the majority of their products contain. By offering more products, it would allow for Domino’s to open more stores in different areas of the world

Conclusion

Since Domino’s conception in 1960, they have proved to be a successful company. The decline

in the economy posed a threat for them along with people becoming more health conscious,

forcing Domino’s to lean towards healthier options. But Domino’s has shown they are

remaining competitive by expanding internationally. Their international sales have been a large

asset to their profitability. Like any business, they have challenges of becoming

internationalized in ways such as different preferences and menu items. With Domino’s

working hard to expand more into India and other countries, it is becoming much harder for

other companies to follow in their footsteps. Domino’s is trying to stay in front of their

competitors, Pizza Hut, McDonalds & Papa John’s. Domino’s continues to look promising in

the future with the pizza industry becoming more popular. And with the strong brand image

that Domino’s has built over the years, the company is pushing to remain strong in the pizza

industry.

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BIBLIOGRAPHY

INTERNET

www.dominos.com www.oligopolywatch.com www.superbrand.com www.google.co.in www.scribd.com

MATERIAL USE

PRESENTOR

COMPANY’S EARLIER DOCUMENT USED.

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