Marketing Report on Domino ’ s Pizza

NakulSagar Aditya Sharma Parul Jain IsmeetKaur AshimaKatyal (44) (05) (52) (32) (17)

 Domino’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


"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 ANALYSIS Political 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  .

Economic Factors 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 .

  There are social forms of society which consist of Upper class. Domino’s has been associated with the NGO’s devoted to the cause of under privileged children’s.   In India. Social Factors :  Domino’s Pizza is a multinational company and has originated from America so the organization is overwhelmed by western culture. middle upper class. middle class. Domino’s conducts Store Educational Tour (SET) for the underprivileged children time-to-time . lower class and lower class   Every country has cultural norms. beliefs and religion which can affect the organization. values.

daily transactions. Technological Factors ü With the new age technology baking and production is more cheaper and easier. . future forecasting and decision making. efficient ü ü Due to new technology there are new ways of marketing like internet. hence. 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.

Moderate  Supplier Bargaining Power-Low  Threat from Substitutes-High  Threat from New Entrants-High  .Porter’s FIVE FORCE MODEL  Threat from Competitors – High  Customer Bargaining Power.

more than 3.SWOT ANALYSIS Strengths Leading pizza delivery company in India with around 300 stores in India Global franchise operations .500 in over 50 countries Occupies 65% market share in home delivery segment Strong brand equity supported by heavy advertising & marketing campaigns Ø Online ordering & presence Ø Ø Ø Ø Ø Ø Weakness  It has less number of dining restaurants which Indians prefer more  Slow growing and declining same-store sales .

particularly in India. China Ø Leverage supply chain & distribution system to introduce new products  Threats Ø Changing consumer habits towards healthier food choices Ø Franchise operations affected by currency exchange fluctuations Ø Intensive competition from a fragmented number of small competitors    .SWOT ANALYSIS (Cont.) Opportunity Ø It can open more dining outlets to compete with others Ø Growing presence in emerging markets..

20% 21 .30 years – 40% 31 .25% Above 40 years . etc.15%  . Dominos divide the market into groups on the basis of variables such as age. gender.STP  Demographic segmentation –   In demographic segmentation.0% 15 .   Another segmentation process is by breaking the market by the ages as follows: Ø Ø Ø Ø Ø Age: Below 15 years .20 years .40 years .


ØIncome Status oUpper 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 -.(mainly male because many males will not like to prepare food when they are single).they targeted both genders. .

üArea – semi urban and urban üCity – class-A and Class-B cities i. delivery in 30 minutes or else free. buyers are divided into occasion.56 regions where the pizza demand is more and around 300 outlets in India. service. metro politician cities üRegion -.ØGeographic segmentation üHere markets are mainly divided into the rural and urban areas. open to experience. personality or values. ü üPersonality – ambitious. Ø ØPsychographic segmentation üIn Psychographic segmentation.e. üOccasions – Regular. üUser status – regular user üUsage rate – medium üLoyalty status – medium loyal . special. üBenefits – Quality.

Express stores and Regular stores. training programs. Domino's also classified its outlets into Super stores. Mumbai). railway stations. Rex in Bangalore and New Empire in Kolkata. Super stores were those.TARGETING Ølarge corporate offices. and a focus on our exceptional people. ØIt had already established an outlet at Infosys corporate office in Bangalore and at three cinema halls – PVR in Delhi. . which generated high traffic and therefore had more counters than the regular outlets (the outlet in Churchgate. cinema halls and university campuses for faster growth. offices or cinema halls They executed flawlessly through the use of standard store layouts. Express stores were those where people were expected to walk in and order rather than ask for home delivery (university campuses. operational evaluations.

POSITIONING PROMOTIONAL OFFERS Good Domino ’ s Pizza Hut Slice of Italy Papa John’s Pizza Corner Nirula’s Good QUICK HOME DELIVERY SYSTEM Relatively Bad Relatively Bad .



Many big celebrities like Paresh Rawal. endorse this brand through various dramatic advertisements. 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. Arshad Warsi etc. it has started selling desert called Choco Lava Cake.  Product Development Ø Domino’s keeps on introducing new product categories and expanding its menu.  It has recently introduced pastas in its menu Ø Also.g Fun Meal and Pizza Mania which have been extremely popular with consumers . Ø It offers many promotional and discount offers to retain and attract new customers.Market Penetration Ø Domino’s concentrate on market penetration by huge investments on advertising and promotion. 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.

Market Development Ø Domino’s has started up with the dining restaurants to target the new market which prefer to dine outside rather than at home. 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   . Ø Also. by introducing pastas and deserts.

Deserts Ø Low Priced pizza called Pizza Mania Ø Offers “Kheema Do Pyazza Pizza”. Chicken Wings.7 P’s OF MARKETING Product  Core Product: Ø Domino’s provide pizza in different sizes and crusts offering a wide varieties of toppings Ø Garlic Breads. Calzone. Pasta. introduced keeping in mind the customers who like an Indian touch to their pizzas .

online and at the outlets providing personal attention to customers Ø Billing: The billing amount is informed to the customers immediately after taking the order Ø Payment: Coupon Redemption is done.Facilitating Element: Ø Information: They provide details about their product through the menu card which is also available online Ø Order Taking: Orders are taken on phones. accepts cash payment  Enhancing Element: Provides home delivery service within 30 minutes otherwise gives it for free Regularly provide discount coupons to the customers .

 Place & Distribution: Ø It has around 300 outlets in 65 cities. Secondly the catchment area is of a specified minimum size and within a given drive time to the site. Domino’s pricing is low. Ø It offers pizza ranging from Rs 35 – Rs 400. in 22 states in India. but a small amount purchased by each Ø . Ø 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. Ø The 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.Price: Ø As compared to its competitors.

Arshad Warsi in advertisements Ø Distributing door to door brochures Ø Providing discount coupons & special customer membership coupons. Ø Provide them with various facilities such as medical help.000 enthusiastic and dedicated employees. consultation.Promotion: Ø Regular advertisements in in newspapers. Ø Personality development and grooming sessions. traveling facilities. perks and bonuses Ø Team members are recognized and rewarded based on . magazines. television and online Ø Use of famous stars like Paresh Rawal. Ø Tied-up with Facebook and Twitter to enhance its network and target audience  People: ØA team of over 6. Ø Appropriately trained for delivering the service.

Ø Domino's believes strongly in the strategy of 'Think local and act regional'. Ø Hungry hotline facility Ø Keep in mind the health and hygiene Ø “30 MINUTES OR FREE” service commitment.Process: Ø Self service system. Ø Physical Evidence: Ø Logo Ø Good infrastructure Ø Use of modern technology equipment Ø Clean and friendly services  .

Service Marketing Triangle Company (Management) Internal Marketing “enabling the promise” External Marketing “setting the Promise”” Employees Interactive Marketing “delivering the promise” Customers .

INTERNAL MARKETING Training 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 Domino’s logo There is also an ‘Employ of the month’ award which encourages them  .

EXTERNAL MARKETING Regular advertisements on print and electronic media communicating their message Provide the opportunity of online booking system Provide discount coupons and menu with every delivery Domino’s has also tied-up with Facebook & Twitter for promotion Promise is made of their quality and 30 minutes delivery system through advertisements  .

INTERACTIVE MARKETING Incentives 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 .

  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.SERVQUAL Reliability: 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.   .

 . Ø The pizza delivery boys are always neatly and professionally dressed. Ø The ovens used are of the latest technology.Tangibles: Ø The ambience of Domino’s outlets is such that when a customer enters he gets a feel of it. Ø It offers discount coupons with every purchase with the menu card Ø It also offers special customers membership coupons. Ø For the convenience of customers. Domino’s provide plastic cutleries with the delivery. Ø The packaging of food items is very good which keeps the food hot and crisp until it reaches the destination.

Domino’s keep on informing the customers about their changed and new menu items through advertisements. Ø They always handle the complaints with care and positive attitude. Ø Domino’s understands that it is their responsibility to deliver their customers within 30 minutes which they are .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 help consumers looking for an affordable and value for money meal option  Responsiveness: Ø Being a responsible organization.

Desert   . Gap Filling: Introduction of Pastas. Chicken Wings.GAP MODEL We found the following gaps in Domino’s on which they have started working on:   Gap 1: Knowledge Gap Domino’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. Calzones.

  . 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.Gap 2: Service Design & Standards Gap   Domino’s did not provide dine-in facilities earlier which is more preferred by Indian customer these days.

achieves growth in a methodical. It attempts to develop products that are unique in the industry. The company's management has little or no interest to diversify into other areas. Domino's is an example for stability strategy.   Porter’s Generic Strategy: Differentiation  . 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. to recover in the business. The main reasons for an organization. The company or business unit may then charge a premium for its product. but. Its commitment on providing quality and quick service delivery has created respect and loyal customer base.   Differentiation is aimed at the broad market that involves the creation of a product or services that is perceived throughout its industry as unique. slow manner. choose stability and anticipate the changes.STRATEGIES Directional Srategy: Stability  Stability strategy involves the maintenance of status quo or. It was the one who came up with this different strategy after aggressive research. to adopt this strategy are when it wants to take low risk.

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

Ø Ø Domino's is a powerful global brand. and external factors. value-added supply chain system.CONCLUSION Ø Domino’s is known for their best services.1 pizza delivery company Ø Largest share of pizza delivery channel Ø They have a large and growing international presence. internal. Ø Ensures quality and consistency     . Ø They operate a profitable. ongoing investments in advertising result in broad consumer awareness Ø Domino’s are the No. 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. Domino’s commitment to home delivery pizzas has kept them up to the mark and at the same time kept a good customer loyalty. parking space. Ø Significant.

    THANK YOU    .

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