Marketing Report on Domino s PizzaNakulSagar Aditya Sharma Parul Jain IsmeetKaur AshimaKatyal (44) (05) (52) (32) (17)

INTRODUCTION Dominos 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

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, Dominos occupies 65% market share in the home delivery segment.

PEST ANALYSISPolitical Factors:

regulatory frame work operating in judicial system which may affect the business in different ways not many political factors in Delhi affecting Dominos Pizza as is it has the best pizza delivery system in the country

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

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

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

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

Social Factors : Dominos 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, Dominos has been associated with the NGOs

devoted to the cause of under privileged childrens. Dominos conducts Store Educational Tour (SET) for the underprivileged children time-to-time

Technological Factors With the new age technology baking and production is more cheaper and easier, hence, efficient 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 Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making.

Porters 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 ANALYSISStrengthsLeading pizza delivery company in India with around 300 stores in India Global franchise operations - more than 3,500 in over 50 countries Occupies 65% market share in home delivery segment Strong brand equity supported by heavy advertising & marketing campaigns Online ordering & presence

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

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

Threats Changing consumer habits towards healthier food choices Franchise operations affected by currency exchange fluctuations Intensive competition from a fragmented number of small competitors

STP Demographic 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: Age: Below 15 years - 0% 15 - 20 years - 20% 21 - 30 years 40% 31 - 40 years - 25% Above 40 years - 15%

Income StatusoUpper class oMiddle class oLower class 60% 35% 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).

Geographic segmentationHere markets are mainly divided into the rural and urban areas. Area semi urban and urban City class-A and Class-B cities i.e. metro politician cities Region -- 56 regions where the pizza demand is more and around 300 outlets in India.

Psychographic segmentationIn Psychographic segmentation, buyers are divided into occasion, personality or values. Personality ambitious, open to experience. Occasions Regular, special. Benefits Quality, service, delivery in 30 minutes or else free. User status regular user Usage rate medium Loyalty status medium loyal

TARGETINGlarge corporate offices, railway stations, cinema halls and university campuses for faster growth. 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 cinema halls They executed flawlessly through the use of standard store layouts, training programs, operational evaluations, and a focus on our exceptional people.

POSITIONINGPROMOTIONAL OFFERS

GoodDomino sPizza Hut Slice of Italy Papa Johns Pizza Corner Nirulas

GoodQUICK HOME DELIVERY SYSTEM

Relatively Bad

Relatively Bad

BCG MATRIXMARKET GROWTH RATE LOW HIGH

Dominos

?

Slice of Italy

Pizza Hut

Nirulas

HIGH MARKET SHARE

LOW

ANSOFF

Market Penetration Dominos concentrate on market penetration by huge investments on advertising and promotion. It offers many promotional and discount offers to retain and attract new customers. It concentrates more and more on franchising so that their product is available for their customers easily everywhere. 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 Development Dominos keeps on introducing new product categories and expanding its menu. It has recently introduced pastas in its menu Also, it has started selling desert called Choco Lava Cake. It keeps on adding new crusts and new varieties in its pizza and garlic breads category. They keep on introducing news schemes in less prices e.g Fun Meal and Pizza Mania which have been extremely popular with consumers

Market Development Dominos has started up with the dining restaurants to target the new market which prefer to dine outside rather than at home. Also, by introducing pastas and deserts, it has gathered a new segment of customers. Introduction of pizzas 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 Ps OF MARKETINGProduct Core Product: Dominos provide pizza in different sizes and crusts offering a wide varieties of toppings Garlic Breads, Pasta, Chicken Wings, Calzone, Deserts Low Priced pizza called Pizza Mania Offers Kheema Do Pyazza Pizza, introduced keeping in mind the customers who like an Indian touch to their pizzas

Facilitating Element: Information: They provide details about their product through the menu card which is also available online Order Taking: Orders are taken on phones, online and at the outlets providing personal attention to customers Billing: The billing amount is informed to the customers immediately after taking the order Payment: Coupon Redemption is done, accepts cash payment

Enhancing Element:Provides home delivery service within 30 minutes

otherwise gives it for free Regularly provide discount coupons to the customers

Price: As compared to its competitors, Dominos pricing is low. It offers pizza ranging from Rs 35 Rs 400.

Place & Distribution: It has around 300 outlets in 65 cities, in 22 states in India. The 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. The type of distribution channel used by Dominos 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

Promotion: Regular advertisements in in newspapers, magazines, television and online Use of famous stars like Paresh Rawal, Arshad Warsi in advertisements Distributing door to door brochures Providing discount coupons & special customer membership coupons. Tied-up with Facebook and Twitter to enhance its network and target audience

People:A team of over 6,000 enthusiastic and dedicated employees. Appropriately trained for delivering the service. Personality development and grooming sessions. Provide them with various facilities such as medical help, consultation, traveling facilities, perks and bonuses Team members are recognized and rewarded based on

Process: Self service system. Hungry hotline facility Keep in mind the health and hygiene 30 MINUTES OR FREE service commitment. Domino's believes strongly in the strategy of 'Think local and act regional'.

Physical Evidence: Logo Good infrastructure Use of modern technology equipment Clean and friendly services

Service Marketing TriangleCompany (Management)Internal Marketingenabling the promise

External Marketingsetting the Promise

Employees

Interactive Marketingdelivering the promise

Customers

INTERNAL MARKETINGTraining is provided for young and enthusiastic

team Incentives are awarded for maximum delivery within 30 minutes Bonus scheme incorporating profit Uniforms are provided to the employees with a Dominos logo There is also an Employ of the month award which encourages them

EXTERNAL MARKETINGRegular advertisements on print and electronic

media communicating their message Provide the opportunity of online booking system Provide discount coupons and menu with every delivery Dominos has also tied-up with Facebook & Twitter for promotion Promise is made of their quality and 30 minutes delivery system through advertisements

INTERACTIVE MARKETINGIncentives encourage the employees deliver

their promise of delivery within 30 minutes Employees serve the customers well and take their orders promptly Employees also make aware their customers about the different offers which help in saving their money and build a trust factor

SERVQUALReliability: Customers rely on Dominos for free home delivery within 30 minutes as promised Customers rely on the Quality and Freshness of the food being served.

Assurance: Customers of Dominos are assured that the employees will attend them sincerely and take their queries well. 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: The ambience of Dominos outlets is such that when a customer enters he gets a feel of it. The packaging of food items is very good which keeps the food hot and crisp until it reaches the destination. The ovens used are of the latest technology. For the convenience of customers, Dominos provide plastic cutleries with the delivery. It offers discount coupons with every purchase with the menu card It also offers special customers membership coupons. The pizza delivery boys are always neatly and professionally dressed.

Empathy: The employees at Dominos give undivided attention to the customers while attending them and taking their order. They provide extra information to their customers related to the discounts and other offers which help in saving their money. They always handle the complaints with care and positive attitude. They help consumers looking for an affordable and value for money meal option

Responsiveness: Being a responsible organization, Dominos keep on informing the customers about their changed and new menu items through advertisements. Dominos understands that it is their responsibility to deliver their customers within 30 minutes which they are

GAP MODELWe found the following gaps in Dominos on which they have started working on:

Gap 1: Knowledge Gap Dominos 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

Dominos 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. 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 Dominos 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.

Porters Generic Strategy: Differentiation

STRATEGIES Cont.Competitive Position: Market Leader The 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. Dominos 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.

CONCLUSION Dominos 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. Dominos commitment to home delivery pizzas has kept them up to the mark and at the same time kept a good customer loyalty.

Domino's is a powerful global brand. Significant, ongoing investments in advertising result in broad consumer awareness Dominos are the No.1 pizza delivery company Largest share of pizza delivery channel They have a large and growing international presence. They operate a profitable, value-added supply chain system. Ensures quality and consistency

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