Marketing Report Marketing Report ’ on Domino s Pizza ’ on Domino s Pizza

NakulSagar (44)Aditya Sharma (05)

Parul Jain (52)IsmeetKaur (32)

AshimaKatyal (17)

INTRODUCTIONDomino’s was incorporated in New Delhi on March 16th

1995 as a private company under the name Dominos India Private Ltd.

Domino's Pizza India has remained focused on delivering great tasting Pizzas and sides, superior quality, exceptional customer service and value for money offerings.

Dominos Pizza India has a network of around 300 outlets, in 65 cities, in 22 states and union territories (as on 31st Jan 2010)

According to the India Retail Report 2009, It is the largest Pizza chain in India and the fastest growing multinational fast food chain

It has grown into a countrywide network of stores, with a team of over 6,000 people.

VISION

"Exceptional people on a mission to be the best pizza delivery company in the world!“

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

Today, Domino’s occupies 65% market share in the home delivery segment.

PEST ANALYSISPolitical Factors:

ü regulatory frame work operating in judicial system which may affect the business in different ways

ü

ü not many political factors in Delhi affecting Domino’s Pizza as is it has the best pizza delivery system in the country

ü Factors such as laws on business employment, pollution and taxation apply on the organization which it has to abide

ü

ü Increasing per capita income is a good sign as the the purchasing power increases

ü Rise in food inflation rate is directly related to the rise in price

ü With a change in socio-economical status of Indian population (expanding middle-class ) there lies a huge potential of the untapped segments

Economic Factors

Social Factors :Domino’s Pizza is a multinational company and has originated

from America so the organization is overwhelmed by western culture.

There are social forms of society which consist of Upper class, middle class, middle upper class, lower class and lower class

Every country has cultural norms, values, beliefs and religion which can affect the organization.

In India, Domino’s has been associated with the NGO’s devoted to the cause of under privileged children’s. Domino’s conducts Store Educational Tour (SET) for the underprivileged children time-to-time

Technological Factors

ü With the new age technology baking and production is more cheaper and easier, hence, efficient

ü

ü Due to new technology there are new ways of marketing like internet; telemarketing and the organization can advertise their products with much more faster pace

ü

ü Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making.

Porter’s FIVE FORCE MODEL

Threat from Competitors – High

Customer Bargaining Power- Moderate

Supplier Bargaining Power-Low

Threat from Substitutes-High

Threat from New Entrants-High

SWOT ANALYSISStrengthsØ Leading pizza delivery company in India with around 300 stores in IndiaØ Global franchise operations - more than 3,500 in over 50 countriesØ Occupies 65% market share in home delivery segmentØ Strong brand equity supported by heavy advertising & marketing

campaignsØ Online ordering & presence Ø

Ø

Weakness It has less number of dining restaurants which Indians prefer more Slow growing and declining same-store sales

SWOT ANALYSIS (Cont..)OpportunityØ It can open more dining outlets to compete with othersØ Growing presence in emerging markets, particularly in India, ChinaØ Leverage supply chain & distribution system to introduce new products

ThreatsØ Changing consumer habits towards healthier food choicesØ Franchise operations affected by currency exchange fluctuationsØ Intensive competition from a fragmented number of small competitors

Ø

Ø

STPDemographic segmentation –

In demographic segmentation, Dominos divide the market into groups on the basis of variables such as age, gender, etc.

Another segmentation process is by breaking the market by the ages as follows:

Ø Age: Below 15 years - 0%Ø 15 - 20 years - 20%Ø 21 - 30 years – 40%Ø 31 - 40 years - 25%Ø Above 40 years - 15%

Ø Income Status

o Upper class %60

o Middle class %35

o Lower class %05

The companies target audience is the bachelors, youth and the professionals who have no time to prepare food and to grab the food as fast as possible. Gender -- they targeted both genders.(mainly male because many males will not like to prepare food when they are single).

Ø Geographic segmentation

ü .Here markets are mainly divided into the rural and urban areas

ü – Area semi urban and urbanü – - - . . City class A and Class B cities i e metro politician citiesü -- Region 56 regions where the pizza demand is more and around 300

.outlets in India

ØØ Psychographic segmentation

ü , , In Psychographic segmentation buyers are divided into occasion . personality or values

üü – , .Personality ambitious open to experienceü – , .Occasions Regular specialü – , , Benefits Quality service delivery in 30 minutes or else free .ü – User status regular userü – Usage rate mediumü – Loyalty status medium loyal

TARGETINGØ , , large corporate offices railway stations cinema halls and university campuses for faster

. growthØ It had already established an outlet at Infosys corporate office in Bangalore and at three

– , . cinema halls PVR in Delhi Rex in Bangalore and New Empire in Kolkata

, . Domino's also classified its outlets into Super stores Express stores and Regular stores Super , stores were those which generated high traffic and therefore had more counters than the regular ( , ). outlets the outlet in Churchgate Mumbai Express stores were those where people were expected

( , to walk in and order rather than ask for home delivery university campuses offices or cinemahalls

, , They executed flawlessly through the use of standard store layouts training programs , .operational evaluations and a focus on our exceptional people

POSITIONING

Good

Good Relatively Bad

Relatively Bad

QUICK HOME DELIVERY SYSTEM

PROMOTIONAL OFFERS

’Domino s

Pizza Hut

Slice of Italy

’ Papa John s

’Nirula s Pizza Corner

BCG MATRIX

Domino’s ? Slice of Italy

Pizza Hut

Nirula’s

HIGH LOW

MARKET SHARE

M

AR

KE

T G

RO

WT

H R

AT

E

LO

WH

IGH

ANSOFF

Market PenetrationØ Domino’s concentrate on market penetration by huge investments on

advertising and promotion. Ø It offers many promotional and discount offers to retain and attract new

customers.Ø It concentrates more and more on franchising so that their product is

available for their customers easily everywhere.Ø It spends a good amount of money in endorsements to attract the

customers. Many big celebrities like Paresh Rawal, Arshad Warsi etc, endorse this brand through various dramatic advertisements.

Product DevelopmentØ Domino’s keeps on introducing new product categories and expanding

its menu. It has recently introduced pastas in its menuØ Also, it has started selling desert called Choco Lava Cake.Ø It keeps on adding new crusts and new varieties in its pizza and garlic

breads category.Ø They keep on introducing news schemes in less prices e.g Fun Meal and

Pizza Mania which have been extremely popular with consumers looking for an affordable and value for money meal option.

Market DevelopmentØ Domino’s has started up with the dining restaurants to target the new

market which prefer to dine outside rather than at home.Ø Also, by introducing pastas and deserts, it has gathered a new segment

of customers.Ø Introduction of pizza’s keeping in mind the region preference like

“Kheema Do Pyazza Pizza” was introduced keeping in mind the customers who like an Indian touch to their pizzas

7 P’s OF MARKETINGProduct Core Product: ØDomino’s provide pizza in different sizes and crusts

offering a wide varieties of toppingsØGarlic Breads, Pasta, Chicken Wings, Calzone,

DesertsØLow Priced pizza called Pizza ManiaØOffers “Kheema Do Pyazza Pizza”, introduced

keeping in mind the customers who like an Indian touch to their pizzas

Facilitating Element:Ø Information: They provide details about their product

through the menu card which is also available onlineØOrder Taking: Orders are taken on phones, online and at

the outlets providing personal attention to customersØBilling: The billing amount is informed to the customers

immediately after taking the orderØ Payment: Coupon Redemption is done, accepts cash

payment

Enhancing Element: Provides home delivery service within 30 minutes

otherwise gives it for freeRegularly provide discount coupons to the customers

Price:ØAs compared to its competitors, Domino’s pricing is low.Ø It offers pizza ranging from Rs 35 – Rs 400.

Place & Distribution:Ø It has around 300 outlets in 65 cities, in 22 states in

India.ØThe sites have been chosen keeping in view that all the

stores are in and out of center location on retail and has good parking accessibility. Secondly the catchment area is of a specified minimum size and within a given drive time to the site.

ØThe type of distribution channel used by Domino’s Pizza is the direct channel which is successful when there is an extremely large market that is geographically dispersed and when there are a large number of buyers, but a small amount purchased by each

ØCustomers can eat at the outlet or can have home delivery by ordering on phone or can order online.

Ø

Promotion:Ø Regular advertisements in in newspapers, magazines,

television and onlineØ Use of famous stars like Paresh Rawal, Arshad Warsi in

advertisementsØ Distributing door to door brochuresØ Providing discount coupons & special customer

membership coupons.Ø Tied-up with Facebook and Twitter to enhance its network

and target audience

People:Ø A team of over 6,000 enthusiastic and dedicated

employees.Ø Appropriately trained for delivering the service. Ø Personality development and grooming sessions.Ø Provide them with various facilities such as medical help,

consultation, traveling facilities, perks and bonusesØ Team members are recognized and rewarded based on

ability and merit for their contributions

Process:ØSelf service system.ØHungry hotline facilityØKeep in mind the health and hygieneØ“30 MINUTES OR FREE” service commitment.ØDomino's believes strongly in the strategy of 'Think local

and act regional'. Ø

Physical Evidence:Ø LogoØGood infrastructureØUse of modern technology equipmentØClean and friendly services

Service Marketing Triangle

Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

“enabling thepromise”

“delivering the promise”

“setting thePromise””

INTERNAL MARKETING

Training is provided for young and enthusiastic team

Incentives are awarded for maximum delivery within 30 minutes

Bonus scheme incorporating profitUniforms are provided to the employees with a

Domino’s logo There is also an ‘Employ of the month’ award

which encourages them

EXTERNAL MARKETINGRegular advertisements on print and electronic

media communicating their messageProvide the opportunity of online booking

systemProvide discount coupons and menu with every

deliveryDomino’s has also tied-up with Facebook &

Twitter for promotionPromise is made of their quality and 30

minutes delivery system through advertisements

INTERACTIVE MARKETINGIncentives encourage the employees deliver

their promise of delivery within 30 minutesEmployees serve the customers well and take

their orders promptlyEmployees also make aware their customers

about the different offers which help in saving their money and build a trust factor

SERVQUALReliability:Ø Customers rely on Domino’s for free home delivery within 30

minutes as promised Ø Customers rely on the Quality and Freshness of the food

being served. 

Assurance:Ø Customers of Domino’s are assured that the employees will

attend them sincerely and take their queries well.Ø The employees always give assurance to their customers that

they would be delivered the food within 30 minutes and that too hot and fresh.

Tangibles:Ø The ambience of Domino’s outlets is such that when a

customer enters he gets a feel of it.Ø The packaging of food items is very good which keeps the

food hot and crisp until it reaches the destination.Ø The ovens used are of the latest technology.Ø For the convenience of customers, Domino’s provide plastic

cutleries with the delivery.Ø It offers discount coupons with every purchase with the menu

cardØ It also offers special customers membership coupons.Ø The pizza delivery boys are always neatly and professionally

dressed.

Empathy:Ø The employees at Domino’s give undivided attention to the

customers while attending them and taking their order.Ø They provide extra information to their customers related to

the discounts and other offers which help in saving their money.

Ø They always handle the complaints with care and positive attitude.

Ø They help consumers looking for an affordable and value for money meal option

Responsiveness:Ø Being a responsible organization, Domino’s keep on informing

the customers about their changed and new menu items through advertisements.

Ø Domino’s understands that it is their responsibility to deliver their customers within 30 minutes which they are expecting.

GAP MODELWe found the following gaps in Domino’s on which they have started working on:

Gap 1: Knowledge GapDomino’s customers expected variety of items in their menu which they did not provide earlier leading to the gap by not knowing what their customers expect.Gap Filling: Introduction of Pastas, Chicken Wings, Calzones, Desert

Gap 2: Service Design & Standards Gap Domino’s did not provide dine-in facilities

earlier which is more preferred by Indian customer these days.

Gap Filling: They have started dine-in facility at all their new outlets with a capacity of 20-25 seats and planning to expand it.

STRATEGIESDirectional Srategy: Stability Stability strategy involves the maintenance of status quo or,

achieves growth in a methodical, but, slow manner. The main reasons for an organization, to adopt this strategy are when it wants to take low risk, choose stability and anticipate the changes, to recover in the business. Domino's is an example for stability strategy. Its commitment on providing quality and quick service delivery has created respect and loyal customer base. The company's management has little or no interest to diversify into other areas.

 Porter’s Generic Strategy: Differentiation Differentiation is aimed at the broad market that involves the

creation of a product or services that is perceived throughout its industry as unique. The company or business unit may then charge a premium for its product. It attempts to develop products that are unique in the industry. Uniqueness can be in the form of service Domino’s strategy to differentiate has been by its 30 minutes or free delivery service which is a competitive specialty and advantage towards its competitors. It was the one who came up with this different strategy after aggressive research. 

STRATEGIES Cont.Competitive Position: Market LeaderThe market leader is dominant in its industry and has

substantial market share. If you want to lead the market, you must be the industry leader in establishing an innovation-friendly organization, developing new business models and new products or services. You must be on the cutting edge of new technologies and innovative business processes. Your customer value proposition must offer a superior solution to a customers' problem, and your product must be well differentiated. Domino’s has clearly positioned and projected itself to be a market leader through its strategy to be fastest pizza delivery chain in industry, with 45% market share.

CONCLUSIONØ Domino’s is known for their best services. We can summarize the

whole that Employees behavior is the major factor, which influences the customer perception most about the pizza outlets while they are followed by environment, parking space, internal, and external factors. Domino’s commitment to home delivery pizzas has kept them up to the mark and at the same time kept a good customer loyalty.

ØØ Domino's is a powerful global brand. Ø Significant, ongoing investments in advertising result in broad

consumer awarenessØ Domino’s are the No.1 pizza delivery company Ø Largest share of pizza delivery channel Ø They have a large and growing international presence. Ø They operate a profitable, value-added supply chain system.Ø Ensures quality and consistency 

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