D O M IN O ’S PIZZA

A MARKETING PERSPECTIVE
Company

Customer

Competition

Current
CO M PAN Y

▪ Domino’s launches new products every quarter and
offers them at a low (introductory) price to generate
interest in Domino’s. e.g: Stuffed Garlic Bread Rs.79
introduced at an offer price of Rs.45
▪ According to Harneet Singh Rajpal, VP Marketing
Domino’s India, about 15-20 per cent of sales come
from new products that Domino’s launches every
quarter.
▪ Dominos’ offering of Rs.35 pizzas in 2008 created
disruption in the market and gave them a first move
advantage. This was an entry category for those who
had never tried pizzas before.
▪ In 2013, Dominos’ “Pehli Kamai” was targeted at new customers by
pricing entry-level “Pizza Mania” pizzas at Rs.44 and this turned out to
be a huge success by increasing the ‘stickiness’ of the customers.
▪ Dominos’ online ordering campaign had a two-fold advantage: On one
hand, it acquainted customers with the ease of ordering online as
compared to telephonic ordering. Secondly, it helped in decreasing the
manpower required to attend telephonic calls.
▪ To increase awareness and to make the customers taste a product,
Domino’s clubs the new product (for free) with an exclusive (premium)
product. This also helped to cushion the expense incurred.
▪ Domino’s offers Buy 1 Get 1 deals on Wednesdays when ordering
online. This helps in increasing the number of orders made online.
▪ Following figures were reported for March 2015 (in Cr.).
– Operating Income = 2074.47 - (615.97 + 438.77+121.01+636.69)
= 262.03

Market Share in India
Expenditure
Raw Material Employee Domino's
Cost 28% Others
615.97;
636.69; 35%34% Fuel Cost Miscellaneous
438.77; 24%
121.01; 7%
72%
CU STO M ER

Average Price of Pizzas
▪ The target group for Domino’s India are students and
young 600
working professionals, mostly in the upper middle
class segment.
500
▪ Value is created by providing high quality products, and
400 them on time
delivering
300 are typically prized at least Rs.100-200
▪ The pizzas
higher 200
that the average pizza at a local bakery. This
price gives the customer a feeling of a higher quality.
100

0
Regular Medium Large
Veg Non-Veg
CO M PETITIO N

 Major Competitors include fast food companies such as
McDonald’s, pizza take-out services like Papa John’s, and pizza
delivery company giant Pizza Hut

 The industry is often affected by changes in consumer tastes,
economic conditions, demographic trends and consumers’
disposable income

 Indian operations are ranked number one for past 3 years,
delivers an average of 1 million pizzas per day

 To face competition from Indian players, Domino’s had to
localize flavors.
CU RREN T SCEN ARIO

Economic
▪India dominantly being a middle class economy, Domino’s have
their pizza range starting from Rs.85, to lure the middle class.
▪They offer a lot of online and dine in deals such as Monday
magic, Yaari Dosti Wednesday, Friday Freak out etc.,
▪Three sizes of pizzas to cater to a wider range of consumers from
the price-conscious to the value-conscious.
▪Sensing the increase in dispensable income, Domino’s have
widened their pizza range to capture the higher income group
also, which is evident from the extra add-ons and toppings
offered.
Social

 Domino’s offers several indigenous pizza varieties catering to
the needs of the traditional food lovers with Paneer, spicy
toppings at affordable pricing.

 Five ranges of pizza varying from simple to exotic toppings, to
appeal to customers from different income groups.

Political

 Swach Bharat cess of 0.5% to be imposed on all services will
increase the service tax rate to 14.5% and will slightly increase
the Domino’s pricing.
D IFFEREN T STRATEG IES

▪ Corporate lunches and birthday parties