managerial economics
TRANSCRIPT
Managerial
Economics
Presentation # II- Dhruva Sareen
THE OPTION BETWEEN CHOOSING
DOMINOS’ PIZZA
& MCDONALDS’ BURGER
Variety• McDonalds has 2 vegetarian burgers.
McAloo Tikki
McVeggie
• Other vegetarian things would include the fries, McPuff
and the Veggie Wrap amongst the different kinds of
Icecream and shakes.
• Dominos on the other hand has 11 kinds of pizzas for
the exclusively vegetarians.
• It boasts of a vegetarian substitute of almost all its non
vegetarian products too.
Why go to Dominos!
What does McD have to put on the table?
• Dominos has more than 25 primary products to offer
whereas McDonalds has only 10 to 15 products up for
purchase.
• Therefore, even the non-vegetarians would prefer going
to Dominos if Variety is the parameter in consideration.
The Battle fought every Day!
Diversity• Other than the burgers, McDonalds doesn’t offer much.
The odd wrap and the McPuff just do not cut it
anymore. There is a lack of innovation in its products.
• Dominos keep on adding more products to its food-
range. From breadsticks and wings to rolls, it keeps on
adding new items to its inventory. The most recent
addition to its range is that of the Lebanese Roll and
the Calzone.
• Thus, Dominos wins this round too.
Convenience• Dominos offer pizzas. We are enthralled by the images of
corporate hotshots grabbing a slice of pizza for lunch, but
looking at it pragmatically, it is not feasible for carrying
around.
• Dominos pizza come in a cardboard packing. The burger
comes in a paper wrap. It is easier to put in a bag for
carrying.
• Ketchup sachets can be emptied directly on the burger while
eating. Eating pizza involves comparatively more cluttering.
• McD has launched its drive-thru facility.
• Dominos provides 30 home delivery service. So does McD.
• Even if professionals would like to sit and eat, McD
comparatively has more seating space. Dominos
portrays itself as the pack & take and the Delivery
serviced restaurant.
Taste Preference• McDonalds have tried to adapt to the Indian
sensibilities. Masala McGrill, McAloo tikki, Maharaja Mac are a few examples of such. But it does not allow a change in the preparation. They have to maintain a standard hence no modifications (except a few) are considered.
• Dominos has also tried to adapt to the Indian flavours but not as much as Pizza hut. They have only introduced the Indian tacos that are essentially Indian in taste. Also, a pizza can be modified by putting add-ons.
• A customer may go either way depending upon his mood and nature.
Family Choice• Even though the USP of Dominos is in link to spreading
joy and love with family and friends, the presence of a
mascot for McD which is adored by kids work in its
favour.
• Dominos’ pizza is considered the food-to-be for family
parties.
• But Ronald McDonald and Happy Meals act as a means
of alluring young kids and thus their parents too.
Speed• Both of them are On-the-go foods.
• McD has denoted an ideal service time to be of three
and a half minutes. (McD policy manual)
• Dominos takes ideally ten to fifteen minutes to get the
food ready. Food for delivery is given priority as
delivering it any later than thirty minutes costs it Rs.
300/ order.
• Thus, the professionals who have a jam-packed
schedule will go for McDonalds.
Price• While the McD products range from Rs. 20 to Rs. 140,
the cheapest Dominos pizza which would serve one
would cost Rs. 70-Rs. 100.
• The cheapest vegetarian burger would cost Rs. 29
whereas the cheapest pizza would cost Rs. 70.
• Essentially, the cost benefit analysis would suggest that
McD would provide a better meal satisfaction in a
similar amount of money.
Standard• Recently, it has become an issue that since Pizza hut
was established earlier and people have acquired the
taste for their personal pan pizzas, the presence of raw
flour under the base of the Dominos pizza to keep it
from burning in their gas ovens has become a turn-off
for some people. (This happened due to change in
cooking techniques in 2011)
• It is mandatory on the other hand as a policy for every
McD franchise to maintain the same standard of quality
care.
Promotion• Ronald McDonald is widely known due to its increased
publicity in the market. Noid is hardly known by any of
the generations as the mascot for Dominos.
• Apart from the Happy Meal, the other special offers for
McD are worthless.
• Dominos emphasizes a great deal on combos and offers
which gives a better cost benefit to its potential
customers (families, large groups).
The Moment of Truth!• The analysis of choice has been based on the following
parameters. Let’s see which is the most sought after -
• Variety – Dominos
• Diversity –Dominos
• Convenience – McDonalds
• Taste Preference – McDonalds/ Dominos
• Speed – McDonalds
• Price - McDonalds
• Standard – McDonalds
• Promotion –Dominos