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INTERNATIONAL MARKETTING

REPORT ON Product failure due to cultural influences (Dominos Pizza)

SUBMITTED BY BALAJI GOPAL (Roll No: 08) (MMS MARKETING)

SUBMITTED TO Prof Kavitha

SUBMITTED ON 17/ 10 / 11

Dominos Pizza

Dominos Pizza- one of the US Pizza giants decided to make an entry to Indian Market. Initially, Dominos pizza transferred its Western offerings direct to the Indian market. But, the Indian consumers were not readily accepting the western tastes & preferences. The concept of Pizza itself was novel to majority of the Indian population. Moreover the flavors & the toppings were unheard off. Thus Dominos Indian entry failed to kick off. The company eventually realized that it had to bow to local tastes. Initially, its focus was to stay only in

metropolitan areas, but sooner than later it felt the need to spread into mini metros & B-Category towns. Dominos experimented with their taste options especially when they went into smaller towns. It had focused on more regional flavors. As a result of the change in strategy, Dominos came up with localized toppings such as Pepper Paneer & Chicken Chettinad. This move was greeted with a wry smile from Dominos main Indian competitor U.S Pizza, which was the first to offer local topping. The U.S Pizza giant had offered tandoori chicken and paneer toppings. Today companies are offering chole & spicy masala pizzas. Also Indian consumers had the tendency to frequently look for discounts & offers. Dominos obliged by providing unique range of offers across different food products. Also as competitors entered the market, Dominos Pizza differentiated itself by providing quick, effective delivery

within 30 minutes. All this started appealing to the Indian consumers. Dominos made the mistake of thinking that brands are universal. The fact remains that; you cannot change the taste buds that were developed more than a thousand years ago. One of the reasons why the foreign brands passage to India was not smooth was because they were blinded by figures. The middle class in India accounts for only a quarter of the total population. India had 17 official languages & 5 official religions spread across 25 states, hence the buying habits & tastes vary greatly across regions. As a result, only those companies which are in tune with Indias cultural complexities stand a chance. LEARNINGS: Thus, Dominos experience in India clearly shows that culture plays a significant role in International Business. Hence companies who customize their offerings to suit the tastes & preferences of the local population/target segment profitably emerge as winners.