Marketing Report

on Domino ’ s Pizza
NakulSagar (44)
Aditya Sharma (05)
Parul Jain (52)
IsmeetKaur (32)
AshimaKatyal (17)
 INTRODUCTION
 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
 VISION


 "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
  Social Factors :
 Domino’s Pizza is a multinational company and has originated
from America so the organization is overwhelmed by
western culture.

 There are social forms of society which consist of Upper class,
middle class, middle upper class, lower class and lower
class

 Every country has cultural norms, values, beliefs and religion
which can affect the organization.

 In India, Domino’s has been associated with the NGO’s
devoted to the cause of under privileged children’s.
Domino’s conducts Store Educational Tour (SET) for the
underprivileged children time-to-time
  Technological Factors
ü With the new age technology baking and production is more
cheaper and easier, hence, efficient
ü
ü Due to new technology there are new ways of marketing like
internet; 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, daily
transactions, future forecasting and decision making.
 Porter’s FIVE FORCE
MODEL

Threat from Competitors – High

Customer Bargaining Power- Moderate

Supplier Bargaining Power-Low

Threat from Substitutes-High

Threat from New Entrants-High

 SWOT ANALYSIS
Strengths
Ø Leading pizza delivery company in India with around 300 stores in India
Ø Global franchise operations - more than 3,500 in over 50 countries
Ø Occupies 65% market share in home delivery segment
Ø Strong brand equity supported by heavy advertising & marketing
campaigns
Ø Online ordering & presence
Ø
Ø

Weakness
 It has less number of dining restaurants which Indians prefer more
 Slow growing and declining same-store sales
 SWOT ANALYSIS (Cont..)
Opportunity
Ø It can open more dining outlets to compete with others
Ø Growing presence in emerging markets, 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



 STP
 Demographic segmentation –


 In demographic segmentation, Dominos divide the market into groups on

the basis of variables such as age, gender, etc.

 Another segmentation process is by breaking the market by the ages as
follows:
Ø Age: Below 15 years - 0%
Ø 15 - 20 years - 20%
Ø 21 - 30 years – 40%
Ø 31 - 40 years - 25%
Ø Above 40 years - 15%

ØIncome Status

oUpper class 60%

oMiddle class 35%

oLower class 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 -- they
targeted both genders.(mainly male because many males will not like to prepare food
when they are single).
 ØGeographic segmentation

üHere markets are mainly divided into the rural and urban areas.

üArea – semi urban and urban

üCity – class-A and Class-B cities i.e. metro politician cities
üRegion -- 56 regions where the pizza demand is more and around 300
outlets in India.

Ø
ØPsychographic segmentation
üIn Psychographic segmentation, buyers are divided into occasion,
personality or values.
ü
üPersonality – ambitious, open to experience.
üOccasions – Regular, special.
üBenefits – Quality, service, delivery in 30 minutes or else free.
üUser status – regular user
üUsage rate – medium
üLoyalty status – medium loyal
TARGETING
Ølarge corporate offices, railway stations, cinema halls and university campuses for faster
growth.
ØIt had already established an outlet at Infosys corporate office in Bangalore and at three
cinema halls – PVR in Delhi, Rex in Bangalore and New Empire in Kolkata.

Domino's also classified its outlets into Super stores, Express stores and Regular stores. Super
stores were those, which generated high traffic and therefore had more counters than the regular
outlets (the outlet in Churchgate, Mumbai). Express stores were those where people were expected
to walk in and order rather than ask for home delivery (university campuses, offices or cinema
halls

They executed flawlessly through the use of standard store layouts, training programs,
operational evaluations, and a focus on our exceptional people.
POSITIONING
PROMOTIONAL OFFERS

Good

Domino ’ s

Pizza Hut

Slice of Italy

Papa John’s

Pizza Corner
Good Nirula’s Relatively Bad
QUICK HOME
DELIVERY SYSTEM

Relatively Bad
 BCG MATRIX

?
MARKET GROWTH RATE

Domino’s Slice of Italy

HIGH

Pizza Hut Nirula’s

LOW

HIGH LOW
MARKET SHARE
ANSOFF
Market Penetration
Ø Domino’s concentrate on market penetration by huge investments on
advertising and promotion.
Ø It offers many promotional and discount offers to retain and attract new
customers.
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. Many big celebrities like Paresh Rawal, Arshad Warsi etc,
endorse this brand through various dramatic advertisements.


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, it has started selling desert called Choco Lava Cake.
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.g Fun Meal and
Pizza Mania which have been extremely popular with consumers
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.
Ø Also, by introducing pastas and deserts, 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



 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, Pasta, Chicken Wings, Calzone,
Deserts
Ø Low Priced pizza called Pizza Mania
Ø Offers “Kheema Do Pyazza Pizza”, introduced
keeping in mind the customers who like an Indian
touch to their pizzas
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, 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, accepts cash
payment


Enhancing Element:
Provides home delivery service within 30 minutes
otherwise gives it for free
Regularly provide discount coupons to the customers
Price:
Ø As compared to its competitors, Domino’s pricing is low.
Ø It offers pizza ranging from Rs 35 – Rs 400.


Place & Distribution:

Ø It has around 300 outlets in 65 cities, in 22 states in
India.
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. Secondly the
catchment area is of a specified minimum size and
within a given drive time to the site.
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, but a small amount purchased by each
Ø
Promotion:
Ø Regular advertisements in in newspapers, magazines,
television and online
Ø Use of famous stars like Paresh Rawal, Arshad Warsi in
advertisements
Ø Distributing door to door brochures
Ø Providing discount coupons & special customer
membership coupons.
Ø Tied-up with Facebook and Twitter to enhance its network
and target audience

People:
ØA team of over 6,000 enthusiastic and dedicated
employees.
Ø Appropriately trained for delivering the service.
Ø Personality development and grooming sessions.
Ø Provide them with various facilities such as medical help,
consultation, traveling facilities, perks and bonuses
Ø Team members are recognized and rewarded based on
Process:
Ø Self service system.
Ø Hungry hotline facility
Ø Keep in mind the health and hygiene
Ø “30 MINUTES OR FREE” service commitment.
Ø Domino's believes strongly in the strategy of 'Think local
and act regional'.
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 External
Marketing Marketing

“enabling the “setting the

promise” Promise””

Customers
Employees Interactive Marketing
“delivering the promise”
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
 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.
 

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.


Tangibles:
Ø The ambience of Domino’s outlets is such that when a
customer enters he gets a feel of it.
Ø The packaging of food items is very good which keeps the
food hot and crisp until it reaches the destination.
Ø The ovens used are of the latest technology.
Ø For the convenience of customers, Domino’s provide plastic
cutleries with the delivery.
Ø It offers discount coupons with every purchase with the menu
card
Ø It also offers special customers membership coupons.
Ø The pizza delivery boys are always neatly and professionally
dressed.

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 always handle the complaints with care and positive
attitude.
Ø They help consumers looking for an affordable and value for
money meal option

Responsiveness:
Ø Being a responsible organization, Domino’s keep on informing
the customers about their changed and new menu items
through advertisements.
Ø Domino’s understands that it is their responsibility to deliver
their customers within 30 minutes which they are
 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.
Gap Filling: Introduction of Pastas, Chicken

Wings, Calzones, Desert

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


 STRATEGIES
Directional Srategy: Stability
 Stability strategy involves the maintenance of status quo or,
achieves growth in a methodical, but, slow manner. The main
reasons for an organization, to adopt this strategy are when it wants
to take low risk, choose stability and anticipate the changes, to
recover in the business. Domino's is an example for stability
strategy. Its commitment on providing quality and quick service
delivery has created respect and loyal customer base. The
company's management has little or no interest to diversify into
other areas.
  
Porter’s Generic Strategy: Differentiation
 Differentiation is aimed at the broad market that involves the
creation of a product or services that is perceived throughout its
industry as unique. The company or business unit may then charge a
premium for its product. It attempts to develop products that are
unique in the industry. 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. It was the one who came up with this
different strategy after aggressive research. 
 STRATEGIES Cont.
Competitive Position: Market Leader
The market leader is dominant in its industry and has
substantial market share. If you want to lead the
market, you must be the industry leader in
establishing an innovation-friendly organization,
developing new business models and new products or
services. You must be on the
cutting edge of new technologies and
innovative business processes. Your
customer value proposition must offer a superior
solution to a customers' problem, and your product
must be well differentiated. Domino’s has clearly
positioned and projected itself to be a market leader
through its strategy to be fastest pizza delivery chain
in industry, with 45% market share.
 CONCLUSION
Ø Domino’s is known for their best services. 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. Domino’s commitment to home delivery
pizzas has kept them up to the mark and at the same time kept a
good customer loyalty.
Ø
Ø Domino's is a powerful global brand.
Ø Significant, ongoing investments in advertising result in broad
consumer awareness
Ø Domino’s are the No.1 pizza delivery company
Ø Largest share of pizza delivery channel
Ø They have a large and growing international presence.
Ø They operate a profitable, value-added supply chain system.
Ø Ensures quality and consistency
 



 

 THANK YOU
