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INDEX

Chp No. TOPIC PAGE NO.


Chapter 1 INTRODUCTION 1- 11
1.1 Introduction to fast food industry
1.2 Overview of the Food Industry
1.3 Industrial Background
1.4 Theoretical Literature

Chapter 2 Introduction to the problem 12-13


2.1 Statement of the problem
2.2 Objective of the study
2.3 Scope of the study
2.4 Need/Purpose of the study

Chapter 3 Research Methodology 14-18


3.1 Research design
3.2 Research Methodology / Data Sources
3.3 Sampling
3.4 Field Work
3.2 Limitation of the study
3.3 Plan of analysis
3.4 Chapter scheme

Chapter 4 Company Profile 19-22

4.1 Domino’s Pizza India Limited

Chapter 5 Date analysis and interpretation 23-32


5.1 Definition of analysis

Chapter 6 Findings of the study 33-35

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Chapter 7 Recommendations & Conclusion 36-37

Annexure 38-40
Bibliography 42

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CHAPTER- 1
FAST FOOD INDUSTRY
INDUSTRY OVERVIEW

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INDUSTRIAL BACKGROUND
The fast food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a
perfect ingredient for any industry - large disposable incomes- the food sector has been witnessing a
marked change in consumption patterns, especially in terms of food. An increasing number of
international fast food chains rushing to India is because all of them see tremendous potential in for this
type of business. The large upwardly mobile population in the urban areas tend to eat out more often or
business or for leisure. The various players operating in India are the well established Indian chains like
Nirula‘s. In addition to these, apparently some of the best known international food chains are looking at
India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts, Sub-way, etc. are some of them
to name. At present all these players are fighting for a small pie, as fast food is really not a big habit with
Indians, but they see a big potential.

The players are fighting on products, pricing, positioning and trying to convert their first trials into
regular purchase by providing delightful service quality. The focus is on product quality and
standardization on taste. Consistency is the key, as its standardization in fast food as the consumer is short
on time and wants to satisfy his taste buds with a consistent taste experience. Beyond this each player has
its own strategy to expand consumer base.

• Some feel that pricing is not the deciding factor since fast food is not price sensitive market because it is
not a single diet of Indians.
• Some others are competing on positioning which is surprisingly varied, giving the small size of the
market.
• For most, targeting children seems the right strategy.
• Advertising is popular.

However, with competition hooting up most chains are increasing reach as well as working on
establishing a national presence.

Trends in the fast food industry

The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8
per cent, during the Tenth Five year plan period. Value addition of food is expected to increase from the
current 8 per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is currently
around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by2025.
The popularity of food and agro products is not surprising when the sector is now offering a growth of
more than 150 per cent in sales. While US brands such as McDonald‘s, Pizza hut and Kentucky Fried
Chicken have become household names, more are on their way.

The Market Scenario


India among top 10 markets for weekly fast food consumption, an online survey has found. Most of the
countries are from the Asia-pacific region, with the US being the exemption. According to an A C Neilson
study of 28 markets across the US, Europe and the Asia -Pacific, carried out through the internet in
interviews with more than 14000 consumers, Asians are the world‘s greatest fast food fans.
Percentage of adult population eating at takeaway restaurants at least once every week:
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Hong Kong 61%
Malaysia 59%
Philippines 54%
Singapore 50%
Thailand 44%
China 41%
India 37%
Europe 11%

Among the international fast food chains and local operators, Domino‘s emerges as the most popular of
all takeaway options with 54% of Americans, 75% of Europeans and 64% of Asians. Dominos is most
visited in Australia (84%) KFC is most visited in China (42%), Pizza hut is most visited in India (22%) A
typical fast food meal in the India & other Multinational companies consists of fries and a burger (or
other main item).

History

The concept of ready-cooked food for sale is closely connected with urban development. In Ancient
Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop.
Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include
vada pav, panipuri and dahi vada. Some trace the modern history of fast food in America to July 7, 1912
with the opening of a fast food restaurant called the Automat in New York. The Automat was a cafeteria
with its prepared foods behind small glass windows and coin-operated slots. Joseph Horn and Frank
Hardart had already opened the first Horn & Hardart Automat in Philadelphia in 1902, but their
̳ Automat‘ at Broadway and 13th Street, in New York City, created a sensation.

Numerous Automat restaurants were built around the country to deal with the demand. Automats
remained extremely popular throughout the 1920s and 1930s. The company also popularized the notion of
̳ take-out‘ food, with their slogan ̳ Less work for Mother‘. The American company White Castle is
generally credited with opening the second fast-food outlet in Wichita, Kansas in 1921, selling
hamburgers for five cents from its inception and spawned numerous competitors.

It is arguable because most historians and Secondary School textbooks state that A&W was the first fast
food restaurant, which opened in 1919.After discovering that most of their profits came from hamburgers,
the brothers closed their restaurant for three months and reopened it in 1948 as a walk - up stand offering
a simple menu of hamburgers, French fries, shakes, coffee, and Coca-Cola, served in disposable paper
wrapping. As a result, they were able to produce hamburgers and fries constantly, without waiting for
customer orders, and could serve them immediately; hamburgers cost 15 cents, about half the price at a
typical dinner. Their streamlined production method, which they named the ―Speedee Service System ,
was influenced by the production line innovations of Henry Ford.

In the cities of Roman antiquity, much of the urban population living in insulate, multi-storey apartment
blocks, depended on food vendors for much of their meals. On New Year's Day 2008 a study was

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conducted worldwide counting the number of fast food restaurants per person. The UK has claimed this
title with Australia second and the United States third. England alone accounted for 25% of all fast food.

PROBLEMS IN THE ORGANISATION

Trans fats caused problems for Dominos. Trans fats are formed when liquid vegetable oils go through a
chemical process called hydrogenation. Common in a range of food products biscuits, chips, doughnuts,
crackers the hydrogenated vegetable fat is used by food processors because it is solid at room temperature
and has a longer shelf life. In September 2002, Dominos issued a statement announcing a significant
reduction of trans fats in its fried menu items French fries, chicken Mc Nuggets, Filet-O-Fish, Hash
Browns and crispy chicken sandwiches with the introduction of improved cooking oil in all of its 13,000
restaurants.

The change was supposed to be completed by February 2003. However, dominos encountered operational
issues and the oil was not changed. An anti-trans fat group claims that dominos deliberately allowed the
public to be misled. Legal action has forced Dominos to give effective notice to the public that the oil was
not changed. In Europe and the US, food makers are under growing pressure from consumer groups to cut
the trans fat content in food products.

THEORETICAL LITERATURE

Consumer Satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. . Customer satisfaction is defined as "the
number of customers, or percentage of total customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified satisfaction goals."

It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a
key differentiator and increasingly has become a key element of business strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on
the importance of fulfilling customers‘ expectations. Furthermore, when these ratings dip, they warn of
problems that can affect sales and profitability. These metrics quantify an important dynamic. When a
brand has loyal customers, it gains positive word-of- mouth marketing, which is both free and highly
effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able
do this, firms need reliable and reprehensive measures of satisfaction.

In researching satisfaction, firms generally ask customers whether their product or service has met or
exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and will likely rate their experience as
less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating
than a budget motel— even though its facilities and service would be deemed superior in ―absolute
terms.

The importance of customer satisfaction diminishes when a firm has increased bargaining power. For
example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an
oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan
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contracts have a lot of fine print with provisions that they would never get away if there were, say, a
hundred cell phone plan providers, because customer satisfaction would be way too low, and customers
would easily have the option of leaving for a better contract offer. There is a substantial body of empirical
literature that establishes the benefits of customer satisfaction for firms.

Consumer Satisfaction through Four P’s of Marketing Mix

Marketing Mix:
Marketing Mix refers to the ingredients or the tools or the variable which the marketer mixes in order to
interact with a particular market. According to Philip Kotler, -Marketing Mix is a set of marketing tools
that the firm uses to pursue its marketing objectives in the target market.

Marketing mix is a term used to describe the combination of the four inputs which constitute the core of a
company‘s marketing system: the product; the price structure; the promotional activities, and the
distribution system.

Marketing mix represents the total marketing program of a firm. It involves decisions with regard to
product, price, place and promotion. Marketing mix is a b lending of decisions in the 4 P‘s. Four major
ingredients of marketing mix are:

1. Product-

A product is any good or service that consumers want. It is a bundle of utilities or a cluster of tangible and
intangible attributes. Product component of the marketing mix involves planning, developing and
producing the right type of products and services. It deals with the dimensions of product line, durability
and other qualities. The total product should be such that it really satisfies the needs of the target market.
In short, product mix requires decisions with regard to:

a) Size and weight of the product


b) Quality of the product
c) Design of the product
d) Volume of output
e) Brand name
f) Packaging
g) Product range
h) Product testing

2. Price-

Price is an important factor affecting the success of a firm. Pricing decisions and policies have a direct
influence on sales volume and profits of business. Price is, therefore, an important element in the
marketing mix. In practice, it is very difficult to fix the right price. Right price can be determined through
pricing research and test marketing. A lot of exercise and innovation is required to determine the price
that will enable the firm to sell its products successfully. Demand, cost, competition, government
regulation, etc. are the vital factors that must be taken into consideration in the determination of the price.
Price mix involves decisions regarding base price, discounts, allowances, fright payment, credit, etc.

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3. Promotion-

Promotion component of the marketing mix is concerned with bringing products to the knowledge of
customers and persuading them to buy. It is the function of informing and influencing the customer.
Promotion mix involves decisions with respect to advertising, personal selling and sales promotion. All
these techniques help to promote the sale of products and to fight the competition in the market.
No single method of promotion is effective alone and, therefore, a promotional campaign usually involves
a combination of two or more promotional methods. Growing competition and widening market have
made simultaneous use of more than one promotional method all the more necessary. Combination of two
or more methods in a single promotional campaign requires an effective blending of promotional inputs
so as to optimize the expenditure on each. There is no one ideal product, type of customers, the promotion
budget, stage of demand, etc. should be taken into consideration.

4. Place (Distribution)-

This element of marketing mix involves a choice of the place where the products are to be displayed and
made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets
or channels of distribution. The objective of selecting and managing trade channels is to provide the
products to the right customer at the right time and place on a continuing basis. In deciding where and
through whom to sell, management should consider where the customer wants the goods to be available.
A manufacturer may distribute his goods through his own outlets or he may employ wholesalers and
retailers for this purpose. Irrespective of the channel used management must continuously evaluate
channel performance and make changes whenever performance falls short of expected targets. In
addition, management must develop a physical distribution system for handling and transporting the
products through the selected channels. In the determination of distribution mix or marketing logistics, a
firm has to make decision with regard to the mode of transporting of goods to middle -men, use of
company vehicles or both.

Four P’s in Domino’s Pizza India Limited

1. Product Mix-
As explained earlier Product mix deals with the dimensions of product line, quality and design of the
product, its packaging, brand name, product range, etc.

In this section we will study the product mix of Dominos Product line of Dominos includes the products
offered for sale, i.e. the range of food products offered to the customers.

The product breadth or number of products offered by Dominos can be classified as:

A) Vegetarian products
B) Non vegetarian products
C) Beverages
D) Deserts

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Vegetarian Products: Non-Vegetarian Products:
o Veg. Cheese Pizza o Simply Chicken Pizza
o Veg. Onion Pizza o Non-Veg. I
o Feast Pizza o Non-Veg. II
Beverages: Desserts:
o Cold Coffee o Soft serve cone
o Hot serves o Choco lava cake
o Soft drinks
o Shakes

All this shows the wide product range of Dominos. Besides that the quality of Dominos according to the
survey and general findings, is consistent throughout the life of the product.

That's how Domino‘s plan their product range. Food quality is key at Dominos. That‘s why they take
pride in the foods they serve and your family. We seek out fresh lettuce and tomatoes, quality buns and
potatoes, select poultry and fish and wholesome dairy products. Despite extensive and meticulous quality
tests at the supplier end, all products are once again carefully scrutinized at the restaurant. Our
immaculate standards of quality allow for nothing but the best to reach your tray.

Cold Chain: The term Cold Chain describes the network for the procurement, warehousing,
transportation and retailing of food products under controlled temperatures.

Trikaya Agriculture - Supplier of Iceberg Lettuce:

Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty
crops like iceberg lettuce, special herbs and many oriental vegetables. A specialized nursery with a team
of agricultural experts.

Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products:

A joint venture with OSI Industries Inc., USA, and Dominos India Pvt. Ltd. Vista Processed Foods Pvt.
Ltd. produces a range of frozen chicken and vegetable foods- separate processing line for chicken and
vegetable foods.

Dynamix Diary - Supplier of Cheese:

Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of
milk collection centers equipped with bulk coolers. Easy accessibility has enabled farmers augment their
income by finding a new market for surplus milk

Product strategies:

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In order to achieve the desired rate of profits and growth, a firm has to continuously adjust its products
and product mix to the changing needs and targets of the market. This matching of products to the
requirements of competition and buyers is known as product strategy.
Some of the important product strategies, which firms adopt, are as follows:

1) Limited Line Strategy: This refers to the offering of one product or a small number of products to
cater specific market. The main benefit of this strategy is low cost of operations. However, it cannot meet
the requirements of different types of customers in different markets.

2) Full Line Strategy: This Ids also known as broad line strategy, it implies the offering of a large
number of products to meet the requirements of different customers in different markets.

3) Trading up and trading down: These are alternate or opposite strategies for expanding the product
mix. Trading up implies addition of some higher priced products to the existing product line of lowered
priced products for improving the sales of old products. Trading down refers to the addition of lower-
priced products to the existing higher priced product to boost total sales.

2. Price Mix-

Price is the key element of marketing mix because it relates directly to the generation of total revenue.
The term pricing policy refers to a systematic approach to pricing of different products in different
markets to evolve an appropriate pattern of prices in the long run. It is the plan defining the initial pr ice
range and the planned price movements through time that the firm will use to achieve its marketing
objectives. Pricing policy includes not only the determination of base prices but also the terms and
conditions of sale.

Company pricing policies:The price must be consistent with company pricing policies. Many companies
set up a pricing department to develop policies and establish or approve decisions. The aim is to ensure
that the salespeople quote prices that are reasonable to customers and profitable to the company.

Now-a-days, most companies follow buyer based pricing. They are basing their prices on the Product‘s
perceived value. They see buyers perception of value, not the seller‘s cost, as the key to pricing. The
company using perceived-value pricing must establish the value in the buyers‘ mind concerning different
competitive offers.

Dominos began with skimming prices, i.e. setting a very high price for a new product initially and to
reduce the price gradually as competitors enter the market. The initial high price serves to skim the cream
of the market, that is, relatively insensitive to price. This approach to pricing is, in effect, an experimental
search for the right price and it may result in a market- determined price. This method starts with a high
price and moves the price downward by steps until the right price is reached. Initially Dominos charged
high price than what is being charged now. But now it introduces new schemes for value of money.

3. Place Mix (Distribution)-


This element of marketing mix involves a choice of the place where the products are to be displayed and
made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets
or channels of distribution. The objective of selecting and managing trade channels is to provide the
products to the right customer at the right time and place on a continuing basis.

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Dominos distribution centers are wide, located in every area of India. Dominos has Dine-in restaurant,
Drive-Thru. Dominos has 122 restaurants in India of which 72 are in north & east India and 50 in west &
south India:-

o 72 restaurants in North & East India:


• 32 in Delhi
• 20 in Uttar Pradesh - Noida (4), Ghaziabad (4), Mathura (1) (Highway and Drive Thru)
• Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)
• 10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (4)
• Karnal (1) (Highway and Drive - Thru), Panipat (1)
• 5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and Drive - Thru)
• Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)
• 2 in Rajasthan - Jaipur (2)
- 1 in Uttaranchal - Dehradun (1)

o 50 in west and south India:

▪ 30 in Maharashtra - Mumbai (22), Pune (7), Nasik (1)


▪ 7 in Gujarat - Ahmedabad (4), Vadodara (2), Surat (1)
▪ 6 in Karnataka - Bangalore(6)
▪ 4 in Andhra Pradesh - Hyderabad (4)
▪ 3 in Madhya Pradesh - Indore (3)

For the Big Mac, the current calendar year will be the biggest in terms of restaurant openings, and by
year-end, 16 new restaurants would be in place, informs Vikram Bakshi, Managing Director, domino‘s
India.

The new outlets will be a combination of highway restaurants, outlets at railway stations, at shopping
malls and Cineplex, besides at residential areas with significant footfalls. India recently won the tender
for setting up an outlet each at railway stations in Mumbai and Jaipur. In Delhi, the chain will mark its
presence through an outlet at the ambitious Delhi Metro Rail Corporation project, expected to be
operational by year-end. And if all goes according to plan, another dominos outlet could come up at
Delhi's Nizammuddin railway station.

The fourth Dominos highway outlet on the Delhi-Jaipur highway is expected to begin operating shortly.
The chain‘s other three highway restaurants are located on the Delhi-Agra highway, the Delhi- Ludhiana
highway and the Mumbai-Pune highway.

4. Promotion Mix-
Promotion is a process of communication with the potential buyers involving information, persuasion and
influence. It includes all types of personal or impersonal communication with customers and
intermediaries. Promotion mix refers to the combination of various promotional tools used by a business
firm to create, maintain and increase demand. It involves an appropriate integration of advertising,
personal selling, sales promotion and publicity.

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CHAPTER- 2
INTRODUCTION TO THE PROBLEM

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STATEMENT OF THE PROBLEM

This topic is about analyzing the satisfaction of the consumers towards the services provided by
Domino‘s Pizza India Ltd. It has come through to give a clear cut idea to the market strategy, the ways of
how the marketing pattern of Domino‘s Pizza India Ltd is. Its main aim is to find out the marketing
strategy and pattern of Domino‘s Pizza India Ltd. in Bangalore and also how it properly acts to attract
customers to its enterprise.

The comprehensive statement of the problem can be state as - A Study on Consumer satisfaction of
Domino‘s Pizza India Limited in Bangalore city .

OBJECTIVES OF THE STUDY

• To do customer value analysis which includes identifying the major attributes that customers value in
a fast food chain restaurant, assessing the quality of the different attributes.
• To shed light on different aspects that a service based food chain must follow in order to increase its
market share and for being on a continuous growth stream.
• To identify different activities that an aggressive company like Dominos follow in order to establish
itself in a local market and increasing sales by being in customer‘s mind and heart.
• To know the consumer perception and Preference about Dominos products.

SCOPE OF THE STUDY

The study is exclusively conducted for consumers of Domino‘s Pizza India Ltd. which are dispersed in
different areas of Bangalore city. As both organizational and personal consumers use the product, their
needs, preference, usage habit, post purchases actions vary- Widely which in turn gave the study a wide
and large scope for analysis. The time frame of this study lasted for about 2 months i.e., February-March
2011.

NEED / PURPOSE OF THE STUDY

➢ The study helps Domino‘s Pizza India Ltd. to appreciate the factors leading to consumer satisfaction.

➢ The study helps to understand consumer‘s attitude towards Domino‘s Pizza India Limited services and
products.

➢ The study also helps Domino‘s Pizza India Ltd. to obtain suggestions regarding improvement in the
services provided.

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CHAPTER- 3
RESEARCH METHODOLOGY

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Research Design

The controlling plan for a marketing research study in which the methods and procedures for collecting
and analyzing the information is to be collected is known as Research Design or a framework or plan for
a study that guides the collection and analysis of the data.

RESEARCH METHOD/ DATA SOURCES

Descriptive Research-

A research design in which the major emphasis is on determining the frequency with which something
occurs. For example, how often users access internet in a given month. The focus of descriptive research
is to provide an accurate description for something that is occurring.

Data Source:

In this project both primary data as well as secondary data are used.

PRIMARY DATA

Primary data used in this project is collected through three sources:

- Questionnaire Method
- Direct Personal Interview Method
- Observation Method

SECONDARY DATA

It is not possible to collect first hand information for each & everything so, secondary data from various
sources like Internet, A. C Neilson‘s report on Jan, 2007, Information from television channels like
CNBC, Z Business, NDTV Profit etc. and Indian Infoline Website.

Sampling

A fine subset of the population, selected from it with the objectives of investigating its properties is called
a sample and the number of unit in the sample is known as sample size. Sampling is a tool which enables
us to draw conclusion about the characteristics of the population after studying only those subjects or
items that are included in the sample. In sampling method only few units of the population is considered.
The choice of an appropriate sampling design is of keeping in view the objectives and scope of the
enquiry and the type of the universe to be sampled.

Sampling techniques:

1) Random sampling

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2) Non random sampling

Random sampling:

A random sampling is done in such a way that each member of the universe has a change of being
selected, which enables statistics procedures to be used under the result to estimate sampling.

Non random sampling:

In the non-random sampling the chance of any particular unit in the population being selected is
unknown. The judgments sampling method under non-random sampling method was adopted for the
study with a sample size of 100 respondents, which are chosen in a judgment manner from the customer.
In this method a designed number of sample unit is selected deliberately or purposely depending upon the
objectives of the enquirer so that only the important items representing the true characteristics of the
population are included in the sample.

Area of sampling-
In this study primary data plays a vital role. The process of choosing the correct number of respondents is
nothing but sampling procedure.

Sampling area: Bangalore city

Sampling Size-

100 is the number of items to be selected from the universe to constitute the sample. The method used
here is random sampling and on- the spot sampling, where the samples are selected without considering
any particular quality.

Sample Method-

Random Sampling

Field work

The study has been analyzed in different region in the city. Such regions are as under-

Region Number of respondents


Jayanagar Yet to approach
Kumaraswamy Layout - Do -
Banashankari - Do -

LIMITATIONS OF THE STUDY

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Since the road to improvement is never ending, so this study also suffers from certain limitations. Some
of them are as follows:

• Scope of project is limited in the sense that only Dominos has been taken for consumer research.

• The extent of the survey was Bangalore only. So the suggestions or arguments given in the report may
not hold true for other locations in India.

• Questionnaire method involves some uncertainty of response. Co- operation on the part of informants,
in some cases, was difficult to presume.

• Because of time constraints and reserve constraints, a mix of convenient sampling and judgment
(Probability & Random) sampling was used.

• Also because of above mentioned constraints, the sample size chosen for the survey was 100 people.

• It is possible that the information supplied by the informants may be incorrect.

3. PLAN OF ANALYSIS

The primary data that is collected using the questionnaire is analyzed step by step:

- The questionnaire is prepared keeping in mind the objectives of the study.


- The data are tabulated and the respondents are classified according to age, sex, occupation and monthly
income.
- The data relating to the objectives has tabulated and their percentages will be calculated.
- The finding of the study is based on assumption that the information collected from the respondents is
accurate.

• Conclusions are based on the findings and implications

3. Chapter scheme

1. General Introduction

This chapter explains the different Marketing Strategies adopted by Domino‘s in Bangalore for consumer
satisfaction. It also gives a theoretical background of the various aspects of the selected problems.

2. Introduction to the problem

This chapter deals about analyzing the problem area of the Domino‘s to get a clear cut idea about the
marketing strategies and the ways of how the marketing pattern of Domino‘s is.

3. Research Design

This chapter deals with the methodology in the approach of the study. It includes all the framing of
objectives to fieldwork and analysis, and gives a detailed description of the research design.

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4. Company Profile

This chapter reveals the detailed information about the company along with the important people,
employees, products and services.

5. Data Analysis and Interpretation

This chapter deals with the analysis of the questionnaires used for survey as a primary source of data.

6. Findings

This chapter is all about what is being analysis from the previous chapter along with the derivations from
the questionnaires.

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CHAPTER- 4
COMPANY PROFILE

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4.1 DOMINO’S PIZZAINDIA

Type Public (NYSE: DPZ)


Industry Restaurants
Founded Ypsilanti, Michigan, U.S. (1960)
Headquarters Ann Arbor, Michigan, U.S.
Key people LIMITED Tom Monaghan, Founder; J. Patrick Doyle, CEO
Product Pizza, Sandwiches, Pasta, Chicken Wings,
Desserts
Revenue Increase $1.425 billion USD (2008)
Employees 1,45,000

Website www.dominos.com

Domino's Pizza, Inc. (NYSE: DPZ) is an international pizza delivery corporation headquartered in Ann
Arbor, Michigan, United States. Founded in 1960, Domino's is the second-largest pizza chain in the
United States and has nearly 9,000 corporate and franchised stores in 60 international markets and all 50
U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The menu features
pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, and a
variety of dessert items.

Company Background-

In 1960, Tom Monaghan and his brother, James, purchased Domi Nick's, a small pizza store in Ypsilanti,
Michigan. The deal was secured by a US$75 down payment and the brothers borrowed $500 to pay for
the store. Eight months later, James traded his half of the business to Tom for a used Volkswagen Beetle.
As sole owner of the company, Tom Monaghan renamed the business Domino's Pizza, Inc. in 1965. In
1967, the first Domino's Pizza franchise store opened in Ypsilanti. The company logo was originally
planned to add a new dot with the addition of every new store, but this idea quickly faded as Domino's
experienced rapid growth. By 1978, the franchise opened its 200th store.

In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging trademark
infringement and unfair competition. On May 2, 1980, a federal appeals court found in favor of Domino's
Pizza.

International Expansion:

On May 12, 1983, Domino's opened it s first international store, in Winnipeg, Manitoba, Canada. The
same year, Domino's opened its 1,000th store overall, and by 1995, Domino's had 1,000 international
locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day
across five continents.

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Sale of Company:

The current Domino's menu features a variety of Italian-American entrees and sides. Pizza is the primary
focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings.

Additional entrees include pasta bread bowls and oven- baked sandwiches. The menu offers chicken side
dishes, breadsticks and salads, as well as beverages and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to other fast
food restaurants, to ensure efficiency of deliver y. Historically, Domino's menu consisted solely of one
pizza in two sizes (12-inch and 16- inch), 11 toppings, and Coke as the only soft drink opt ion.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or pan pizza. Its
introduction followed market research showing that 40% of American pizza customers preferred thick
crusts. The new product launch cost approximately $25 million, of which $15 million was spent on new
sheet metal pans with perforated bottoms. Domino's started testing extra-large size pizzas in early 1993,
starting with the 30-slice, yard-long "The Dominator".

Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers, as an
alternative to Buffalo wings, in August 2002. The breaded, baked, white-meat fillets, similar to chicken
tenders, are packaged in a custom-designed box with two types of sauce to "heat up" and "cool down" the
chicken.

In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese Steak
Pizza. The product launch also marked the beginning of a partnership with the National Cattlemen's Beef
Association, whose beef Check-Off logo appeared in related advertising. Domino's continued its move
toward specialty pizzas in 2006, with the introduction of its "Brooklyn Style Pizza", featuring a thinner
crust, cornmeal baked in to add crispness, and larger slices that could be folded in the style of traditional
New York - style pizza.

In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked sandwiches in four
styles, intended to compete with Subway's toasted submarine sandwiches.

Early marketing for the sandwiches made varied references to its competition, such as offering free
sandwiches to customers named "Jared," a reference to Subway's spokesman of the same name.

The company introduced its American Legends line of specialty pizzas in 2009, featuring 40% more
cheese than the company's regular pizzas, along with a greater variety of toppings. That same year,
Domino's began selling its Bread Bowl Pasta entree, a lightly seasoned bread bowl baked with pasta
inside, and Lava Crunch Cake dessert, composed of a crunchy chocolate shell filled with war m fudge.
Domino's promoted the item by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Centre near
Mount St Helens. In 2010, the company changed its pizza recipe "from the crust up", making significant
changes in the dough, sauce and cheese.

Page 21 of 41
Charitable activities

In 2001, Domino's launched a two-year national partnership with the Make- A-Wish Foundation of
America. That same year, the company stores in New York City and Washington D.C. provided more than
12,000 pizzas to relief workers following the September 11 attacks on the World Trade Centre and The
Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red
Cross' disaster relief effort. In 2004, Domino's began its current partnership with St. Jude Children's
Research Hospital, participating in the hospital's "Thanks and giving" campaign since it began in 2004,
raising more than $1.3 million in 2006.

Advertising and sponsorship

In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That concept
was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials
that they created. The catch phrase associated with the commercials was "A the Noid." Due to a glitch on
the Domino's website, the company gave away nearly 11,000 free medium pizzas in March 2009. The
company had planned the campaign for December 2008 but dropped the idea and never promoted it. The
code was never deactivated though and resulted in the free giveaway of the pizzas across the United
States after someone discovered the promotion on the website by typing in the word "bailout" as the
promotion code and then shared it with others on the Internet. Domino's deactivated the code on the
morning of Tuesday, March 31, 2009 and promised to reimburse store owners for the pizzas.

Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk, and the team
won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-year partnership
to become the "Official Pizza of NASCAR."Domino's also sponsored Michael Waltrip Racing and driver
David Reutimann during the 2007 season in the NASCAR Sprint Cup Series.

30-minute guarantee Service

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30
minutes of placing an order, or they would receive the pizzas free. The guarantee was reduced to $3 off in
the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indian woman who had
been killed by a Domino's delivery driver, paying the family $2.8 million. In 1993, Domino's settled
another lawsuit, this one brought by a woman who was injured when a Domino's delivery driver ran a red
light and collided with her vehicle. The woman was paid nearly $80 million. The guarantee was dropped
that same year because of the “public perception of reckless driving and irresponsibility", according to
Monaghan.

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes", alluding to the earlier
pledge but stopping short of promising delivery in a half hour. 30 minutes guarantee for hot and delicious
pizza or free.

Page 22 of 41
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION

Page 23 of 41
DEFINITION OF ANALYSIS

Analysis is the process of breaking a complex topic or substance into smaller parts to gain a better
understanding of it. The technique has been applied in formal concept is a relatively recent development.
It is the process of placing data in order form, combining them with existing information‘s and extracting
meaning from them. Interpretation is the process of drawing; conclusions from the gathered data in a
study.

Analysis methods should be selected on the basis of whether or not they will be able to effectively answer
the evaluation questions within each evaluation project. There are a number of considerations when
selecting evaluation methods. The first is to make sure that the methods which are selected are
appropriate and ethical for the groups involved in them. Appropriate ethical approval processes need to be
followed where required and evaluators need to confirm to appropriate ethical standards.

Methods selection in evaluation also needs to be very focused on value for money in terms of the
selection of methods. There are usually limited evaluation resources and they need to be used wisely.
Evaluation methods should be ̳ fit for purpose‘ in the sense that they provide the amount of information
required at a level of certainty which is sufficient for the purpose of the evaluation.

1) Analysis of Table 1:

Love for outdoor eating

PARTICULAR NO.OF RESPONDENTS PERCENTAGE


Yes 80 80%
No 20 20%
TOTAL 100 100%

As per the data analysis, 80 respondents love outdoor eating and 20 respondents like to dine at their
homes.

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INTERPRETATION:

In the first question, we have the assessed the outdoor eating preferences of our respondents and we
interpreted that a majority of 80% respondents replied that they like eating outdoors.

2) Analysis of Table 2:

Frequency of visit

INTERPRETATION:

In this question, we have assessed the frequency of visits to Domino‘s Outlets, and we interpreted that a
majority of 50% respondents visit fort night and 20% respondents visit once a week.

3) Analysis of Table 3:

Customer preference

Page 25 of 41
INTERPRETATION:

In the third question, we have analyzed the customer preference in terms of fast food outlets. From the
above graph, we have interpreted that most of the people that is 34% respondents prefer Domino‘s
followed by Pizza Hut being 30%, Mc Donald‘s 20% and KFC 16%.

4) Analysis of Table 4:

Consistency of taste and quality

As per the data analysis, 86 respondents said there is a consistency of taste and quality in the food at
Domino‘s Pizza, while 14 respondents did not agree upon this.

Page 26 of 41
INTERPRETATION:

In this question, we have assessed about the taste and quality consistency at Domino‘s Pizza India
Limited, and we interpreted from the above data that 86% respondents feels the same taste and quality
every time they visit, while the rest 14% said that there is bit changes in taste and quality time to time.

5) Analysis of Table 5:

Pricing Satisfaction

As per the data analysis, 55 respondents are satisfied with its price, 30% are very satisfied, and 15 are not
that much satisfied with the pricing.

6) Analysis of Table 6:

Promotional Measures

INTERPRETATION:

In the seventh question, we have assessed the effectiveness of Domino‘s promotional measures. From the
above chart, we interpreted that 50% respondents think it was effective while 40% do not think so.

Page 27 of 41
7) Analysis of Table 7:

Recommendation to Dominos

INTERPRETATION:

In this question, we have assessed the suggestions and feed back of the respondents about Domino‘s and
we interpreted that a majority of 52% wants more varieties to be added to the menu, 12% suggests a low
price, 10% better promotion and 26% recommend to improve the quality of food.

8) Analysis of Table 8:

Eating experience

We have analyzed that 50% respondents has a good eating experience and 15% respondents did not feel a
nice experience there.

9) Analysis of Table 9:

Varieties satisfaction

Page 28 of 41
As per data analysis, 70 respondents are very satisfied with the varieties in menu, 15 are only satisfied,
and 15 are not satisfied.

INTERPRETATION:

In this question, we have assessed that 70% respondents are very satisfied with the varieties in food menu,
while 15% are not satisfied with those varieties.

10) Analysis of Table 10:

Awareness of Charity Services

As per data analysis, 60 are aware of the charity schemes while 40 do not know about the charity
schemes of Domino‘s.

Page 29 of 41
11) Analysis of Table 11:

Charity Services

INTERPRETATION:

In this question we have assessed the awareness of charity scheme of Domino‘s among the respondents
and 60% result was positive.

12) Analysis of Table 12:

Dining Preference

As per data analysis, 39 respondents prefer to dine in the domino‘s Outlets and the rest 61 prefer take
away.

Page 30 of 41
INTERPRETATION:

In this question, we have assessed the preference to dine in Domino‘s Outlets and we interpreted that a
majority of 61% prefer take away.

13) Analysis of Table 13:

Home Delivery

As per data analysis, 100 respondents have ordered for home delivery from Domino‘s Pizza.

Page 31 of 41
INTERPRETATION:

In this question, we have assessed whether the respondents have ever ordered for home delivery and the
result was 100% yes.

14) Analysis of Table 14:

Delivery within 30 minutes

As per data analysis, 96 respondents said that they got the home delivery within 30 minutes but 4 did not
get within that time limit.

15) Analysis of Table 15:

Food Preference

As per data analysis, 28 respondents said they prefer vegetarian food and 72 prefer Non- vegetarian.

Page 32 of 41
CHAPTER- 6
FINDINGS OF THE STUDY

Page 33 of 41
- 80% of the customers loved to dine outside their home.

- 50% of the respondents visit Domino‘s once a fort night ,followed by once a week, once a month and
then more than once a week.

- 34% of the respondents prefers Domino‘s, then followed by pizza hut, Mc. Donald‘s and KFC
respectively.

- 86% of the customers felt that the taste and quality of the food at Domino‘s Pizza remains same,
whenever they visit.

- 55% of the customers are followed by the pricing and less than 20% are not satisfied.

- 50% of the respondents feel that the promotional measures are effective only 40% felt that it is not.

- 52% recommended that Domino‘s should include more varieties, then some of them suggested that there
should be reduction in prices, then 26% and 10% suggested that improve in quality and better promotion
should be there.

- 50% consumers are satisfied with the eating experience in Domino‘s only 15% felt bad about it.

70% of the customers are happy with the varieties which are offered in the menu only 15% was not
satisfied.

- The 60% respondents are aware about the charity services which are taken under by the co. rest of them
are in dark.

- 98% customers are satisfied with the hygiene factor at Domino‘s.

- 39% of the respondents feel like to dine in the outlet and the rest of 61% want to take away and enjoy
their meal at outside of the outlet.

- 100% respondents ordered for home delivery also in their past.

- 96% of the respondents got their home delivery package within 30 minutes.

- 52% of the respondents feel the ambience of the outlet is good and rest of them doesn‘t seem to be very
happy.

- 72% respondents liked to have non- vegetarian food and only 28% turned up for vegetarian food in the
outlet.

- As per the data analysis, 80% respondents love outdoor eating and 20% respondents like to dine at their
homes.

- As per the data analysis, 20% respondents visit once a week, 14% visit more than once a week, 16%
visit once in a month and 50% respondents visits Domino‘s once a fort night.

Page 34 of 41
- As per the data analysis of question 3, 34% prefer Domino‘s, 30% respondents prefer Pizza Hut, 20%
like Mc Donald‘s and the rest 16% go for KFC.

- As per the data analysis, 86% respondents said there is a consistency of taste and quality in the food at
Domino‘s Pizza, while 14% respondents did not agree upon this.

- As per the data analysis, 55% respondents are satisfied with its price, 30% are very satisfied, and 15%
are not that much satisfied with the pricing.

- As per the data analysis, 10% respondents think that the promotional measures of Domino‘s is very
effective, 50% think it‘s effective to a certain extent, while 40% do not the promotional measures
effective.

- As per the data analysis recommendation to Domino‘s goes like this : respondents who need more
varieties are 52%, who want reduction at the price are 12% , those who feel that the promotional strategy
is not having the impact are 10% and who desires for quality are 26%.

- As per data analysis, the eating experience of 15% respondents was excellent, 20% was very good, 50%
good, and 15% poor.

- As per data analysis, 70% respondents are very satisfied with the varieties in menu, 15% are only
satisfied, and 15% are not satisfied.

- As per data analysis, 60% are aware of the charity schemes while 40% do not know about the charity
schemes of Domino‘s.

- As per data analysis, 98% respondents said that the Domino‘s Outlets are hygienic while 2% replied
negatively.

- As per data analysis, 39% respondents prefer to dine in the domino‘s Outlets and the rest 61% prefer
take away.

- As per data analysis, 100% respondents have ordered for home delivery from Domino‘s Pizza.

- As per data analysis, 96% respondents said that they got the home delivery within 30 minutes but 4%
did not get within that time limit.

- As per the data analysis, 52% respondents liked the ambience and 48% did not.

- As per data analysis, 28% respondents said they prefer vegetarian food and 72% prefer Non- vegetarian.

Page 35 of 41
CHAPTER- 7
RECOMMENDATIONS & CONCLUSIONS

Page 36 of 41
➢ Domino‘s should use more aggressive marketing strategy to attract the customers.

➢ Domino‘s should introduce some new dishes to pull the customers.

➢ Domino‘s should work out on the ambience more for satisfaction of the customers.

➢ Domino‘s should charge a little less to capture more market.

➢ Domino‘s should improve his quality of the pizzas to the new heights.

➢ Domino‘s should increase the veg. pizza portfolio also for the veggies.
- They should open more outlets in the overcrowded areas.

➢ Domino‘s should use glass tumblers instead of disposable one to serve the customers.
- Washrooms should be maintained properly.
- The personnel should be more polite and well informative

➢ Domino‘s floors should be frequently cleaned.


- Better air-conditioning can be arranged in the outlet.
- Frequent feedbacks should be taken from the customers for regular improvement.
- And last but not the least it should introduce more proper Indian style pizza to attract more
INDIANS.

Page 37 of 41
CHAPTER- 8
ANNEXURE

Page 38 of 41
Questionnaire

Dear respondent,
I, Ritesh Yadav student of LN College, doing my project on“ Consumer Satisfaction in
Domino’s Pizza India Ltd”. I would be grateful to you if you could kindly cooperate with my work for
better of my knowledge.

Name:________________________________
Phone no:________________________________

1. Do you love eating outdoors?


A) Yes
B) No

2. How frequently you visit Domino’s?


A) Once a week
B) More than once a week
C) Once a month
D) Once a fortnight

3. Which fast food outlets do you prefer the most?


A) Domino’s
B) PizzaHut
C) Mc.Donalds
D) KFC

4. Is the quality and taste always the same in Domino’s?


A) Yes
B) No

5. Is the prices are satisfactory or not?


A) Satisfied
B) Very Satisfied
C) Not
D) No

6. Are the promotional efforts are good enough to pull the customers?
A) Effective
B) VeryEffective
C) Not Effective

7. Is the prices are satisfactory or not?


A) Satisfied
B) Very Satisfied
C) Not

Page 39 of 41
D) No

8. Experience at Domino’s?
A) Excellent
B) Very Good
C) Good
D) Poor

9. Is the enough varieties of food to satisfy you?


A) Very Satisfied
B) Satisfied
C) Not

10. Do you aware about the charity services done by Domino’s?


A) Yes
B) No

Page 40 of 41
BIBLIOGRAPHY

➢ Observation

➢ Individual pre and post program feedback forms through questionnaires.

➢ Interviewing and mailing

Text book

• Consumer behavior- Appah nahiah, Reddy & Ramnath

Websites

• www.google.com
• www.dominos.co.in
• www.wikipedia.in
• www.answers.com

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