marketing of domino's(service) in india | Domino's Pizza | Market Segmentation



In the mid 1990’s a spate of global fast food chains entered hoping to capture a part of Indian fast food segment but they found it difficult to establish themselves. Domino's Pizza India Ltd. was incorporated in March 1995 as the master franchisee for India and Nepal, of Domino's Pizza International Inc., of USA. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary. Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia of the Jubilant Organosys Group were the promoters of the company. Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. The first Domino's Pizza store in India opened in January 1996, at New Delhi. Today, Domino's Pizza India has grown into a countrywide network around 220 outlets in 42 cities and is the leader in the fast food delivery segment. Ever since it was established, Domino's Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. Customers can order their pizzas by calling a single countrywide Happiness Hotline - 1800-111-123. In fact, Domino's was the first one to start this facility for its customers. and their slogan is also towards consumer loyalty, they respect time responsibility i.e. Domino’s delivery in 30 minutes else pizza is free of cost.

Demographic segmentation – In demographic segmentation, we divide the market into groups on the basis of variables such as age, gender, etc; these demographic variables are so popular with marketers so that they are often associated with the consumer’s needs and wants. And they are easily measurable. Here are the demographic variables have been used to segment markets. 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%

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 preapare food when they are single).

Income – further segment the market based on economic groupings:

Income status Upper Class Middle Class Lower class 60% 35% 5%

They targeted the middle class, upper class, upper middle and high level peoples. The international fast food pizza delivery franchise has also introduced a new range of pizzas with a price point of Rs 35. To attract the lower class customers. Occupation -- self employed (superior level peoples), officers executives, junior officers, Executives. Education -- professionals.

Ethnicity – For this reason they come modified their menu and they added new dishes like peppy paneer and pizzas are available in 3 sizes small, medium, and large

Geographic segmentation Geographic segmentation is basically using the spatial location to segment the market. In Geographic segmentation calls for the diff geographical units such as states, regions, cities and the south Asia is a one of the major geographic segmentation variables relevant for marketers. Here markets are mainly divided into the rural and urban areas. Domino’s intends to penetrate completely within these markets by opening up 20-25 outlets per year in these cities. Domino’s has a young and enthusiastic team of more than 2,100 employees. Today, Domino’s has emerged as the leader in the fast food segment with about 65% of market share of pizza delivery in India and have outlets more than any other corporation in the business of food, not just the pizza business. All the Company outlets are corporate outlets invested by the company and also managed by the company. The Geographical variables have been used to segment markets. 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 250 outlets in india. By 2010-11, the company sees an addition of a total of 500 stores in 75-80 cities. "This is part of our Rs 80 crore investment plan on store expansion in the current year," Domino's Pizza India Senior Vice-President (Marketing) Dev Amritesh said. Domino's is also undertaking a brand positioning with launch of a Rs 6 crore advertising and marketing campaign over next three months.

Socioeconomic classification

The people belongs to the high job profile with efficient communication knowledge can use it The purchase potential of this product is limited up to the B1, B2 , A1,A2. Socioeconomic graph is attached on page no. Psychographic segmentation -It is the science using psychology to better understand the consumers, and they are trying to suit with local food, and they all ready created the brand name in consumers mind by advertisement and service i.e. 30 min delivery. Dominos in 2005 takes the harzad warsi (circuit) as their brand ambassador. Dominos tried to change add new toppings for children but they are failed to continue it. In Psychographic segmentation, buyers are divided into lifestyle, personality or values. Lifestyle – Business class, outdoor oriented. 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 Readiness stage – intending to buy Attitude toward product – enthusiastic Life cycle stage – In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. Domino's Pizza SWOT Analysis: Strength

• • • • • • • • • • •

Leading pizza delivery company in the US with more than 5,000 stores in the US Global franchise operations - more than 3,500 in over 50 countries Strong brand equity supported by heavy advertising & marketing campaigns Supply chain & distribution network

Weaknesses Slow growing and declining same-store sales Weakening bottom line

Opportunities 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

Idea screening: 1) Recover from the negative perception, 2) Build credibility by following up a promise with concrete action, 3) Get a hot, cheesy promotional slice of earned media for being the first major fast food chain to adopt this safety measure.

Conclusion We can conclude that Domino’s are known for their best services and according to the factor analysis. 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.


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