ADVERTISING AND PUBLIC RELATIONS

YEAR 2001-2002 DIVISION '8'

DOMINO'S PIZZA

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NAMES

COMPILED BY

JENNIFER KARANJIA SACHINNAIR

ROSHAN LEWIS ASHWINI PATIL

AARA THI PRABHU BIJAL SANGHANI HARSHAL SA VLE HIMANSHU AGRAWAL

ROLL NO.

62 85

"10 91

98 107 109 117

CONTENTS
• Hungry Kya?
• A Winning Tradition
• Indian Pizza Market Scenario
• Entry Into the Indian Market
• Positioning
• Target Audience and Target Profile
• • Marketing Strategy
• Competitive strategy
• Survey Analysis HungryKya!

The first thing that comes to your mind after hearing 'HUNGRY KYA!' is of course Domino's. We are here to brief you about the total existence of Domino's in India and it's consumers.

We will provide you some food for thought as to how Domino's managed to become the "Pizza King" of South Asia.

As we go further you will be surprised to know that today, pizzas are just not an alternative snack dish, but they have got much more on them than we can see.

A Winning Tradition

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Tom Monaghan and his brother James purchased the local pizza store "Domnicks" in Ypsilanti, Michigan in 1960. When they had traded a Volkswagon for it, there was little indication that the tiny enterprise would one day be a multi-billion dollar company.

By 1965 Tom became the sole owner of the outlet and he renamed the store as 'Domino's Pizza Inc'. When Domino's Pizza Inc was formed Tom owned 3 stores, which is today reflected in the company logo using three white spots.

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• Domino's first franchise opened in Michigan in the year 1967 whereas its first international store was opened in Canada in the year 1983.

• Over the years the company stressed on its efficient service through the' 30 minutes guarantee', which promised the customers their pizza within 30 minutes.

• In the year 1998 Tom Monaghan retired and sold 93% of the stake to Bain Capital Inc - a private investment firm.

• In 1999, David Brandon was named as the chairman and CEO of the company.

• At present Domino's has 6,997 owned and franchised stores and 64 international markets with Mr.Arvind Nair as its CEO for India. It has about 1,20,000 associates of which about 15,000 are corporate employees.

• The sales for the year 2000 have been recorded to be $3.54 billion showing about 5.3% increase over 1999.

As far as its products are concerned, Domino's is definitely a cut above its competitors. It not only has a range of pizzas and other products but their method of making pizzas is also unique to the company.

The bottom line is that technically and quality wise Domino's is far superior to others in the market.

Indian Pizza Market Scenario

During the '90s there was a trend of globalization and liberalization wherein the Indian consumer was exposed to the western world and he was ready to experiment with the it's cuisme.

At this point of time the pizza market of the country was in its infancy. Though the market potential for this category was very high, only a few regional fast food restaurants supplied pizza's to the consumers at local level.

But at present the pizza market is in its growth period with a lot of brands competing at the national level to grab a sizeable chunk of this big cake. Who wins the contest is yet to be seen .

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Domino's Entry Into India.

Domino's managed to hit the iron when it was RED HOT.

During the liberalisation phase there was no International chain of pizza outlets in the country and Domino's was an instant hit.

After tasting success in the American and European continents, Domino's had cast it's eyes on the Indian sub-continent and landed in January 1996 in New Delhi.

However, it soon realized that Mumbai was the commercial capital as well as the image builder of the country. Hence in February 1997 it opened its first Mumbai outlet at Lokhandwala, Andheri.

Soon it spread to the other cities of the country before opening its first express store inside Infosys, Bangalore in 1999.

In 2001, Domino's Pizza India Ltd. also acquired the franchising rights for Srilanka, Bangladesh and Nepal. Today Domino's has atleast 18 outlets in and around Mumbai and 107 all over India.

Positioning

Advertising being an important tool for building brand image as well as positioning of a product, Domino's has made use of it pretty effectively.

Domino's has positioned its product mainly as a quick, tasty and convenient alternative to home cooking. It has basically placed its product as a tempting substitute to any dish, be it a snack or meal.

This can very well be seen in its commercials as it is made sure that a delicious looking pizza is paraded in front of the screen to activate the consumers' taste buds. Because one thing which strongly applies here is that "Seeing is believing" and believing will lead to action. Domino's has two commercials that are aired on most of the popular channels at regular intervals.

The humour content in both the commercials has ensured a better recall value of the advertisements and also increases its popularity. Infact the "Hungry K ya" campaign won the Best Marketing Campaign for the year 2000.

Besides this its emphasis on efficient service is an ancillary benefit that it offers its customers as part of its duty as a premium brand of this product category.

Here, the print media is judiciously used by publishing on an average atleast two ads per month in most of the leading newspapers like Times oflndia, Mid-Day etc.

The print ads prominently reflect its 30 minute guarantee but are usually used to publicize about the price-offs or discount coupon promotions especially during the festive seasons. Most of Domini's print ads are in colour rather than in Black & White to show pictures of delicious pizzas to tempt the consumers.

The company's ultimate aim is that if the consumer even comes across the word "Hunger" he should immediately think of "Domino's."

Target Audience

Domino's target audience is a consumer who belongs to the age group of 14 to 35 years from the Socio 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 the western culture and it's eating habits.

The age group has been restricted to the range of 14 to 35 years as this age group accounts for about 70010 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 [most of them falling in the range of Rs. 125 - 200] only consumers from the SEC category A or B would be able to afford the pizza regularly. However, Domino's have now come out with pizzas ranging from Rs. 59 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 pattern of eating.

Such a group of people has certain similar traits.

• They have a positive outlook towards life. They are adventurous, fun-loving and daring.

• They are independent and active in their social and their professional life.

• They are open to try new things and challenges and have the urge to learn. However, they do not like to be told.

• They want to be individuals but want a social standing in the society.

• They can be very crtical, yet are very sensitive to criticism.

Target Profile

Let us introduce you to Mr. Nitish Kapoor and his wife Mrs. Divya Kapoor. Theirs was a love marriage. A common friend's party was where they met first and sharing the same interests brought them closer.

Nitish is a

• 29 years old Punjabi.

• He lives in the subarbs ofMumbai at Hill Road, Bandra.

• Has done MBA (Marketing) from a reputed college.

• He is presently working in a MNC as an Assistant Marketing Manager.

• Has an income ofRs. 20,000/- per month.

• He commutes in his own car and possesses a cellular phone.

• Has memberships of renowed clubs which he frequently takes advantage of

• He is a very social person, has lot of friends and likes to party with them.

• As he is very outgoing he likes adventureous sports and loves sports like hiking and

trekking.

• He is very quality conscious and usually goes for branded items.

• He believes in himself and does exactly what he feels like.

• He usually goes for a couple of Hollywood movies in a month.

• He watches channels like MTV, Channel [V], HBO, Star Movies, Star World, Star News, ESPN, Sony and Star Plus.

Divya is a

• 27 years old north Indian.

• She has done a Mass Media course and works in an ad agency as a Media Planner.

• She has a monthly income ofRs.12, 000/-.

• She has a cellular phone basically for professional use.

• She likes the economic and social aspects of the big city and takes advantage of it in

terms of career and liesure time activities.

• She is very much urbane and genteel.

• She is a woman of style and believes in making her own fashion statement.

• She is a self-confident, on-the-go woman, not a homebody.

• She is a doer and is interested in outdoors, politics and current affairs.

• She is an ideal working wife balancing her career and home efficiently.

• She likes to watch BBC, Star News, ESPN, HBO, Star Movies, Star World, Star Plus, Sony and Zee.

A Usual Day in the Life of Nitish & Divya

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• Their day starts at 7:00 - 7:30 in the morning. Nitish wants to be updated with the latest developments and happenings around, hence has the habit of reading The Times of India. They discuss the current market happenings over the morning breakfast. He then leaves for his workplace by around 8:30 AM.

• His work mornings usually start with meetings. Divya, on the other hand, leaves for her office at 10:30 - 11 :00 in the morning.

• Nitish is on the top panel in his company therefore his job involves coping up with a lot of pressure. Divya's work demands a lot of time and attention. She usually has a very hectic schedule.

• Being fun loving people they make the work enviomment very lively and motivate their juniors.

• Sometimes they also have to attend lunch and dinner meetings with their clients.

• Nitish comes back home around 9:00 - 9:30 at night. Divya's job has variable timings therefore her homecoming is not fixed. Thus, there are often times that they order dinner from out.

• Once home they prefer to sit back and relax. They like to watch the television together so that they can spend time with each.

Marketing Strategy

Domino's pizza is a premium brand of this product category. It has a very well thought marketing strategy. They have very efficiently tapped the Indian market using the various Ps of marketing mix.

Their strategy emphasises more on informing the people about the Domino's 30-minute guarantee, their help-lines, their delivery outlets and price-offs or discount coupons during the festive seasons.

Recent addition to this is a Joint Venture with a Petrol pump in New Delhi and at Bandra, Mumbai wherein your pizza is gauranteed in 6-8 minutes of your call and you can very

• conveniently pick it on your way home.

As a part of their strategy, they have introduced a birthday package especially for kids wherin they can celebrate their birthday with their friends and each kid gets a return gift alongwith the usual fair.

Also being a customer-friendly corporation, Domino's believes in sharing its due benefits with the consumer and looking at the consistent increase in sales it has introduced pizzas starting from Rs. 59.

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Its products are priced at the higher end. In India too Domino's pizzas range from Rs. 80 onwards inspite of the fact that in India, pizzas are available at local restaurants at a reasonable price ofRs. 30 -40.

They believe that their price can be easily justified on grounds of consistent quality and excellent service they provide. Infact Domino's imports olives from Spain, oregano from United States of America and pepperoni from Italy to maintain that delicious taste of Domino's.

Hence Domino's is confident that their pizzas are so good that consumers do not mind paying a premium for it.

But in order to decrease the burden of the premium, Domino's regularly has sales promotions offering price discount schemes etc.

Also, keeping in mind that in India usually the franchisees do not usually maintain the standards of the parent company consistently, it has not franchised its outlets. Instead it has a master franchise that owns all the franchises in India, Bangladesh and Sri Lanka.

Competitive strategy

Leaving aside the local restaurants and a few local brands like Smokin' Joe's etc, Domino's mainly faces competition from two players viz. Pizza Hut and Amul. Both these brands though positioned differently, have gained quite some amount of popularity lately.

Domino's vis Amul

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Using its existing strong corporate image, Amul entered the Indian pizza market basically to enhance the sales of its cheese. It chose pizza over other products like burgers, hot dogs etc because this product is the closest to the Indian palette and its taste can be altered to suit the Indian consumers' needs.

Amul is basically targeting all the socio-economic classes of the society especially the lower strata of the society to ensure that pizzas become a mass consumption product. They are actually positioning their product as a western dish offered to Indians at affordable prices.

Though Amul scores over Domino's with regards to price yet the latter's superiority in the pizza making technique and their effective distribution network would ensure their leadership in this category.

However, a drawback with Amul so far has been its low publicity.

• Domino's vis Pizza Hut

Pizza Hut is also an internationally known chain of Pizza outlet that entered the Indian market towards the end of the zo" century. Its target audience is basically the youth and the families who like socialising.

They are initially targeting only the metropolitan CIties as they have positioned themselves as an outlet for rejuvenating lost relationships and socializing as they have an excellent ambience to boost it.

Thus Pizza Hut emphasizes more on the ambience it provides rather than the product it offers.

In comparison Domino's just has delivery outlets but does not have an eating outlet where the consumers could enjoy themselves. This has provided Pizza Hut with a competitive edge over Domino's.

As far as the price is concerned, Pizza Hut products start at around Rs. 160. It is priced much higher than Domino's pizzas but they justify it on the basis of the service and the ambience they provide their customers at the outlet.

Pizza Hut's marketing strategy is basically aimed to make the consumer feel very important. It actually wants the consumer to believe that Pizza Hut is the ultimate outlet for celebrating anything and everything. It has created an ambience to ensure that customers start finding excuses to come to the outlet.

Domino's has a major threat from Pizza Hut in this aspect. With increasing number of professionals and increased exposure to western style of eating outdoors frequently, Pizza Hut may quickly score over Domino's.

In addition the great interiors, the music and the overall service at the Pizza Hut outlets creates an atmosphere which tempts you to visit the place again.

• So Domino's have to do something to overcome this problem.

Survey Analysis

The survey done by our research team clearly indicates that Domino's is the current market leader in India, but may soon face very stiff competition from both Amul and Pizza Hut. So to improve their brand image and consolidate their position in the market they need to take up some precautionary measures very soon.

• The first thing is that Domino's needs to increase their trials. Since their quality is good enough to retain the consumers Domino's needs to only ensure higher trials.

This can be done by through effective advertisement and sales promotions. Catchy and visually effective commercials would entice consumers to eat pizzas.

• • Secondly Amul' s policy of making pizzas a mass consumption product will also help

increase the number of potential customers for the entire pizza industry.

• To compete against Pizza Hut which too has started with the home delivery service Domino's needs to have atIeast one eating outlet in every city to cater to the socializing crowd. Beautifully furnished outlets and good ambience will also help improve the brand image.

• Domino's has a company policy of not asking customers for suggestions which is not a very positive sign. In India it is very important to make the consumers feel special. Hence the company can definitely ask the customers to give in their suggestions and implement changes whenever possible. This might also give them an insight into new avenues that could be explored.

• Domino's is known for offering discount coupons and price offs pretty regularly due to which consumers wait to order only when offered discounts. This is not a good sign for the brand. Instead the company could offer some pizzas at a lower price which would help increase the frequency of pizza consumption.

• Use of good Public relation exercises like delivering free pizzas to regular customers on their birthdays and also offering them price offs on purchasing certain number of pizzas in a month or a quarter would help increase brand loyalty and add a personal touch to their entire effort.

• Another thing, which Domino's could do, is to extend its product line. This would encourage consumers to try the new products as well as buy pizzas thus boosting the sales. This step will ensure that the consumer constantly keeps in touch with Domino's thus helping build brand loyalty.

Thus Domino's actually needs a face-lift to improve their market position and make the brand more popular. Since there are still many people in the country who might not have ever tasted a pizza, the pizza industry has a lot of scope to grow.

Hence Domino's has a lot of opportunity and space to extend its arms and conquer more consumers and new markets.

Acknowledgements

Our team has taken efforts in this project and we would like to thank each and allofthem. However, it would have not been possible without the kind support and help of many individuals and organizations. We would like to extend our sincere thanks to all of them.

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Mrs. Priti Saxena, our Professor, who has always been there to guide us in our endeavor.

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Mr. Vishal Kapoor, the Western Region head of Domino's India Ltd., for giving his kind attention and time.

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Mr. Jayanta Rao, assistant to Mr. Vishal Kapoor for giving valuable information regarding Domino's.

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Mr. Rahul Takalkar, the Domino's outlet at Churchgate for providing us with Brochures and pizza boxes.

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Last but not the least, the Domino's India Inc. for coming out with such a n excellent product without which this project would never have taken shape.

K.C. College of Management Studies

QUESTIONNARE

Q1. Name the pizza parlours that you have been to?

(a) (b) (c) _

(d) (d) (e) _

Q2. Have you ever had a Domino's pizza?

Yes No

Q3. Do you think Domino's should have more outlets?

Yes No

Q4. What do you like / dislike about Domino's pizza?

Q5. Do you usually order a Domino's pizza or go to a Domino's outlet to have one?

(a )Order from home (b )Go to an outlet

Q6. Do you think a Domino's pizza gives you value for money?

(a) Yes (b) No

Q7. Which is your favourite pizza topping?

Q8. Are you satisfied with the variety of toppings offered by Domino's?

(a) Yes (b) No

I

Q9. Have you used a Domino's coupon to buy a pizza?

(a) Yes (b) No

QIO.How often do you use a Domino's coupon?

(a) Always (b) Once or twice a month _

(c) Sometimes (d) Never

QII.How often do you order a pizza from outside?

(a) Daily (b) Once a week

(c) Once a month (d) Once in three months __

(d) Rarely

QI2.How often do you consume a Domino's pizza?

( a) Daily (b) Once a week

(c) Once a month (d) Once in three months __

(d) Rarely

Q13 Are you satisfied with the service provided by Domino's Pizza? Why?

(a) Yes (b) No

Q14.Do you remember any Domino's Ad's? If yes which one?

(a) Yes (b) No

Q14.Rate the following on a scale of 1-5 1 - Excellent

2-Good

3 - Fair

4 - Satisfactory 5 - Poor

(a) Domino's

(b) Pizza Hut

( c ) Pizzeria

(d) Smokin' Joe's

(e) Pizza Comer

(f) Amul pizza's

(g) Restaurent Pizza's

Name:

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Age: _

Gender:

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Address:

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Educational qualification: _

Occupation: ___