A PROJECT REPORT

ON
MARKETING
OF
DOMINOS PIZZA

Submitted in partial fulfillment for the degree of

PGDM
POST GRADUATE DIPLOMA IN MANAGEMENT
(2009-2011)
Submitted To:
Mrs. Mukta Keskar

Submitted By:
Jyoti Mishra
PGDM (HR)

SINHGAD INSTITUTE OF MANAGEMENT

VADGAON PUNE -411041

CERTIFICATE

This is certifying that the project entitled MARKETING is a bonafide work done
under the guidance of MRS. MUKTA KESKAR by JYOTI MISHRA in the partial
fulfillment of requirement for the award of PGDM of SINHGAD INSTITUTE OF
MANAGEMENT (SIOM).

She has worked under our guidance and direction. Her work is found to be satisfactory
and complete in all respect.

GUIDED BY:

DIRECTOR

(Mrs. Mukta Keskar)

(Daniel Penkar)

DATE:

DATE:

PLACE: PUNE

ACKNOWLEDGEMENT

It is a great pleasure and privilege for me to present report entitled MARKETING

ASPECT .
I would like to express my sincere gratitude to Mrs. Mukta keskar who has very kindly
guided me for this project report.
I

extend

my

gratitude

towards

my

institute

SINHGAD

INSTITUTE

MANAGEMENT for helping me to successfully complete the project work.

OF

INTRODUCTION

INTRODUCTION
Fast food is one of the worlds largest growing food types. Indias fast food industry
is growing by 40%. The multinational segment of Indian fast food industry is up to Rs
20.billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last
6 years, foreign investment in this sector stood Rs.3600 million which is about onefourth of the total investment made in this sector. Because of the availability of the
raw material for fast food, global chains are flooding into the country. The percentage
share held by foodservice of total consumer expenditure on food has increased very
low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in
Indian culture and changes in eating habits are very slow moving with barriers to
eating out entrenched in certain sector of Indian society. The growth is neculear
families, particularly in urban India, exposure to global media and western cuisine
and an increasing number of women joining workforce have had an impact on eating
out trends.
Major players in fast food are:

McDonalds

KFC

Pizza Hut

Dominos Pizza

Caf coffee day

Barista

Subway

The main reason behind the success of multinational chains is expertise in product
development, sourcing practices, quality standard, service level and standardized
operating procedures in their restaurant, a strength that they have develop over
years of experience around the world. The home grown chains have in the past few
years of competition with the MNC s, learnt a few things but there is still a lot of
scope for improvement.

REASONS FOR EMERGENCE

Gender Roles:
Gender roles are now changing. Females have started working outside. So they
have no time for their home and cooking food. Fast food is an easy way out because
can be prepared easily.

Customer sophistication and confidence:

Consumers are becoming more sophisticated. They do not want to prepare food and
spend their time and energy in house hold works. They are building their confidence
more on ready to serve and easy to eat kind of foods.

Paucity of time:
People have no time for cooking. Because of emergence of working women and also
number of other entertainment items. Most of the time people either work or want to enjoy
their family.

Double income group:

Emergence of double income group leads to increase in disposable income. Now
people hve more disposable income so they can spend easily in fast food and other
activities.

Large population:
India being the second largest country in terms of population possesses large
potential market for all the products/services. This results into large number of fast
food players in the country. Relaxation in rules and regulations, with the economic
liberalization in 1991, most of tariff and non tariff barriers from the Indian boundaries
are either removed or minimized. This help significantly the MNCS to enter in the
country.

MARKET SHARE AND MAJOR PLAYERS

The organized pizza market in India is worth Rs.600 crore. The major players in the
market are pizza hut and dominos whose market share are around 45% and 35%
respectively. Other players from the rest 20%.

Other players mainly are:

Smokin Joes

Gracias

Papa Johns

U S Pizza

These players mainly give competition to pizza hut and dominos in tier I cities like
Mumbai, Bangalore, Chennai, etc. do not have much presence in tier II cities.

MAJOR FORCES SHAPING THE TRAJECTORY OF THE

INDUSTRY

INDUSTRY COMPETITION

In tier I city like Mumbai, pizza hut and dominos are facing a stiff competition from
these providers (with respect to branded pizza)

Pizza Corner

Smokin Joes

U S Pizza

Gracias

In tier II cities, dominos and pizza hut are still the major players.

THREAT OF NEW ENTRANTS

With the economic reforms the liberalization, many new entrants also want the
revenue of the 200 billion India fast food industry.
There are many new entrants in the branded pizza industry some of them are:

Papa Johns Pizza

U S Pizza

They have captured a lot of customers with their new style and discount offer. Much
young crowd flock their restaurants and their taste buds are getting modified. Now
the new entrants are also likely to enter the tier ii cities and make their presence.
Thus pizza hut and dominos have a rethink their strategies so as to retain their
customers. They have to constantly differentiate their services from the new
entrants.

SUBSTITUTES
There are lots of substitutes which are available to choose with respect to the fast
food industry some of them are:

Any restaurant

McDonalds

Barista

Caf coffee day

Chinese restaurant (Mainland China)

Largely it depends upon the customer what they want to have. Generally it is
assumed that when people dine outside, they think of having pizza at least 25% of
time. Thus if the brand recall a particular company is good, more people will tend to
go there. Higher the quality of food, service, higher will be product recall and sales.

BUYERS BARGAINING POWER

Pizza hut and dominos have higher market reach and greater visibility in the market
with respect to the pizza industry and hence they command supplies at lower rate.
However their counterparts, competitors cannot command such lower prices. Thus
the muscle power of pizza hut and dominos is way beyond the others.

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Suppliers Growing Bargaining Power

Supplies till now were not a problem. But with the advent of the rising food costs
(raw material inflation). Suppliers are not ready to supply item at the normal rate.
Thus suppliers muscle power grew only due to inflation. Thus the company either
has to increase the menucosts or reduce the operational costs to recover. Failing to
do this will make the company into losses or to lose out in the industry.

TRENDS IN THE INDIAN MARKET

Marketing To Children
Fast food outlets in India target children as their major customers. They introduce
varieties of things that they will attract the children attention and targeting children
they automatically target their parents because children are always accompanied by
their parents.

Low Level Customer Commitment

Because of the large number of food retail outlets and also because of the tendency
of the customer to switch from one product to another, this industry faces low level
customer commitment.

Attracting Different Segments of the Market

Fast food outlets are introducing varieties of product in order to cater the demand of
each and every segment of the market. They are introducing all categories of
product so that people of all ages, sex, class, Income group etc can come and
become a customer of their line.

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The success of fast foods arose from the changes in the economic conditions
1. Many women or both parents now work.
2. There are increased numbers of single-parent households.
3. Long distances to school and work are common.
4. Theres often not enough time or opportunity to shop carefully for groceries,
or to cook and eat with ones family. Especially on weekdays, fast food
outside the home is only solution.

Brief history of the company, Indian operations (DOMINOS)

The dominos brand was found in the United States of America in 1960 by Thomas
and James Monaghan. Since then, that business has grown into a global network
over 8,500 pizza stores in more than 60 countries, involving over 2,000 franchises.
Over its 49-year history, dominos has developed a simple business model focused
on delivery quality pizzas in a timely manner. Dominos pizza, inc., completed its
initial public offering in 2004 and is listed on the New York stock exchange.
Dominos pizza India ltd. Was incorporated in March 1995as the master franchisee
for India and Nepal, of dominos pizza international inc., of U.S.A. Moreover, the
company holds the master franchisee rights for Sri Lanka and Bangladesh through
its wholly owned subsidiary. Mr.Shyam .S.Bhatia and Mr.Hari.S.Bhatia of the jubilant
organosys group are the promoters of the company.
Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union
territories (as on 31st August 2009). According to India retail report 2009, dominos
are the largest pizza chain between 2006-2007 and2008-2009 in terms of number of
stores.

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Dominos vision is focused on exceptional people on a mission to be the best pizza

delivery company in the world!. Dominos committed to bringing fun, happiness and
convenience to the lives of our consumers by delivering delicious pizzas to their door
step in 30 minutes or less, and its effort are aimed to fulfilling the commitment
towards its large and ever-growing customer base.
Dominos pizza constantly strives to develop products that suit the tastes of its
consumer and hence delighting them. Dominos strongly believe in the strategy of
think global and act local. Thus, time and again dominos pizza has been innovating
with delicious new products such as crusts, toppings and flavors suitable to the taste
buds of Indian customers. Further, providing value for money at affordable products
to the consumer has been dominos motto. Initiatives such as fun meal and pizza
mania have been extremely popular with consumers.
The brand positioning of khushiyon ki home delivery (happiness home delivered) is
the emotional benefit dominos offer to consumers.

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COMPANY PROFILE
DOMINOS PIZZA

Domino's Pizza is an international fast food pizza delivery corporation. It was founded
by Tom Monaghan. There are currently about 8,500 corporate and franchised stores in 55
countries, including all 50 US states. It was the second-largest pizza chain behind Pizza
Hut in the United States. In 1967, the first Domino's Pizza franchise store opened in
Ypsilanti. Dominos continued to grow and in 1978 opened its 200th store.
On May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That
same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000
international locations. In 1998, after 38 years of ownership, Domino's Pizza founder Tom
Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc.
for about $1 billion and ceased being involved in day-to-day operations of the company. A
year later, the company named David A. Brandon Chairman and Chief Executive Officer.
Involved in day-to-day operations of the company. A year later, the company named David A.
Brandon Chairman and Chief Executive Officer.
In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley,
Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the
system. Also that the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in
Domino's history to hit a turnover of $3 million (2.35 million) per year. As of September
2006, it has 8,238 stores which totaled US$1.4 billion in gross income. In 2007, Domino's
introduced its Veterans and Delivering the Dream franchising programs and also rolled out its
online and mobile ordering sites. In 2001 the company's stores in New York

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City and Washington D.C. provided more than 12,000 pizzas to relief workers following
the September 11 attacks on the World Trade Center and The Pentagon. Through a matching
funds program, the corporation donated $350,000 to the American Red Cross' disaster relief
effort.
Leading industry publication Pizza Today magazine named Dominos Pizza
"Chain of the Year" in 2003.

KEY INFORMATION
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 Type - Public (NYSE: DPZ)

Founded - Ypsilanti, Michigan, U.S. (1960)
Headquarters - Ann Arbor, Michigan, U.S.
Founder - Tom Monaghan
Chairman & CEO - David Brandon.
Industry - Restaurants
Products Pizza - sandwiches pasta chicken wings desserts
Employees - 145,000
Website-http://www.dominos.com/

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DOMINOS PIZZA TIMELINE

1960
Tom Monaghan and his brother James purchase "Dominicks," a pizza store in Ypsilanti,
Michigan. Monaghan borrowed $500 to buy the store.
1961
James trades his half of the business to Tom for a Volkswagen Beetle.
1965
Tom Monaghan is sole owner of company, and renames the business "Domino's Pizza, Inc."
1967
The first Domino's Pizza franchise store opens in Ypsilanti, Michigan.
1968
Company headquarters and commissary are destroyed by fire. First Domino's store outside of
Michigan opens in Burlington, Vermont.
1975
Amstar Corp., maker of Domino Sugar, institutes a trademark infringement lawsuit against
Domino's Pizza. In 1980, Federal court rules Domino's Pizza did not infringe on the Domino
Sugar trademark.
1983
Domino's first international store opens in Winnipeg, Canada. The 1000th Domino's store
opens. The first Domino's store opens on the Australian continent, in Queens land, Australia.
1990
Domino's Pizza signs its 1,000th franchise.
1992
Domino's rolls out Breadsticks, the company's first national non-pizza menu item.
1995
Domino's Pizza International opens its 1,000th store.First store opens on African continent, in
Cairo, Egypt.
1996
Domino's launches its Web site (www.dominos.com).

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1998
Domino's launches another industry innovation, Domino's Heat Wave, a hot bag using
patented technology that keeps pizza oven-hot to the customer's door.
2000
Domino's Pizza International opens its 2,000th store outside the United States.Domino's
Pizza celebrates 40 years of innovation and delivering pizza to homes around the world.
2006
Dominos Pizza introduces Brownie Squares warm, delicious, bite-sized brownies
delivered with a fudge dipping sauce.
2007
Dominos rolls out online and mobile ordering.

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MARKETING

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Marketing
This department makes sure that it stay ahead of the game by understanding What customers
want and publicising its brand through innovative advertising, direct mail, e-commerce
and PR. Marketing is also closely involved in the development and launch of new products
and technology that makes Dominos stand out from the competition!

Food Service
Responsible for manufacturing Dominos hallmark fresh dough at our company-owned
facilities and for sourcing the fine, fresh ingredients used in stores, Food Service is a very
important department with responsibility for making sure ingredients meet strict food safety
criteria.
This department also sources, invents and/or manufactures all of the equipment used
in our stores.

IT As the first pizza delivery company in the world to offer customers both online and
interactive ordering facilities, its no surprise that IT is a very important part of corporate and
store level operations.
Dominos IT team makes sure that all technology and e-commerce services are the best
to support business and that they work efficiently. It surprises many people to learn how
Dominos applies IT to virtually every aspect of running business at store and corporate level.

Business Strategy
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To achieve further growth through the continued implementation of business strategy, which
includes the following key elements:
Continue to execute on our mission statement.
Its mission statement is Exceptional franchisees and team members on a mission to be the
best pizza delivery company in the world. it implement this mission statement by following
a business strategy that Puts franchisees and Company-owned stores at the foundation all thinking and decisions;
Emphasizes ability to select, develop and retain exceptional team members and franchisees;
Provides a strong infrastructure to support stores
Builds excellent store operations to create loyal customers.
Grow leading position in an attractive industry.
U.S. pizza delivery and carry-out are the largest components of the U.S. QSR pizza category.
They are
also highly fragmented. Pizza delivery, through which a majority of our retail sales are
generated, had sales of $10.9 billion in the twelve months ended
November 2008. As the leader in U.S. pizza delivery, believe that convenient store locations,
simple operating model, widely-recognized brand and efficient supply chain system are
competitive advantages that position to capitalize on future growth.

Leverage strong brand awareness.

Believe that the strength of Dominos Pizza brand makes one of the first choices of
consumers seeking a convenient, quality and affordable meal. They intend to continue to
promote brand name and enhance reputation as the leader in pizza delivery.
In 2007 it launched the campaign, You Got 30 Minute, which built on the Companys 30minute delivery heritage.
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In 2007 and 2008, each domestic stores contributed 4% of their retail sales to advertising
fund for national advertising in addition to contributions for market-level advertising.
Intend to leverage strong brand by continuing to introduce innovative, consumer-tested and
profitable new product varieties (such as Dominos Brooklyn
Style Pizza and Dominos Oven Baked Sandwiches), complementary side items.

Expand and optimize domestic store base. Plan to continue expanding base of
domestic stores to take advantage of the attractive growth opportunities in U.S. pizza
delivery. They believe that scale allows to expand store base with limited marketing,
distribution and other incremental infrastructure costs. Additionally, franchise-oriented
business model allows to expand store base with limited capital expenditures and working
capital requirements. While they plan to expand traditional domestic store base primarily
through opening new franchise stores, they will also continually evaluate mix of Companyowned and franchise stores and strategically acquire franchise stores and refranchise
Company-owned stores.

Continue to grow international business. They believe that pizza has global
appeal and that there is strong and growing international demand for delivered pizza. They
have successfully built a broad international platform, almost exclusively through master
franchise model, as evidenced by their 3,726 international stores in more than 60 countries.
They have significant long-term growth opportunities in international markets where they
have established a leading presence. In their current top ten international markets, believe

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that store base in total for these ten markets is approximately half of the total long-term
potential store base in those markets. Store-level economics of business model, the growing
international demand for delivered pizza and the strong global recognition of the Dominos
Pizza brand. International stores have produced positive quarterly same store sales growth for
60 consecutive quarters.

Segment overview
It operates in three business segments:
Domestic stores.
Domestic stores segment consists of domestic franchise operations, which oversee network
of 4,558 franchise stores located in the contiguous United States, and domestic Companyowned store operations, which operate network of 489 Company-owned stores located in
United States;
Domestic supply chain.
Domestic supply chain segment operates 17 regional dough manufacturing and food supply
chain centers, one supply chain center providing equipment and supplies to certain of
domestic and international stores and one vegetable processing supply chain center.

International.
International segment oversees network of 3,726 international franchise stores in more than
60 countries. International segment also distributes food to a limited number of markets from
six dough manufacturing and supply chain centers in Alaska, Hawaii and Canada (four).

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Marketing operations

Domestic stores contribute between 4% to 5% of their retail sales to fund national marketing
and advertising campaigns advertising programs. It also contribute to market-level media
campaigns. These national and market-level funds are administered by Dominos National
Advertising Fund Inc., or DNAF, not-for-profit advertising subsidiary.
The funds remitted to DNAF are used primarily to purchase television advertising.
DNAF also provides cost-effective print materials to domestic stores for use in local
marketing that reinforce national branding strategy. In addition to the national and marketlevel advertising contributions, domestic stores spend additional amounts on local store
marketing, including targeted database mailings, saturation print mailings and community
involvement through school and civic organizations. Additionally, we may from time-to-time
partner with other organizations in an effort to promote the Dominos Pizzabrand.By
communicating a common brand message at the national, local market and store levels, we
create and reinforce appowerful, consistent marketing message toconsumers. This is
evidenced by successful previous marketing campaign with the slogan Get the Door. Its

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Dominos. and current marketing campaign with the slogan You Got 30 Minutes. Over
the past five years, it estimates that domestic stores have invested approximately $1.4 billion
on national, local and co-operative advertising.

Third-party suppliers

The active relationships of 15 years or more with more than half of major suppliers.
Suppliers are required to meet strict quality standards to ensure food safety. They review and
evaluate suppliers quality assurance programs through, among other actions, on-site visits,
third party audits
and product evaluations to ensure compliance with standards. They believe that the length
and quality of relationships with suppliers provides them with priority service and quality
products at competitive prices.

They currently purchase pizza cheese from a single supplier.

In 2007, the Company entered into a new arrangement with this supplier. Under this
arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the
Company agreed to a five year pricing period during which it agreed to purchase all of its
primary pizza cheese for the Companys United States stores from this supplier or,
alternatively, pay to the supplier an amount reflecting any benefit previously received by the
Company under the new pricing terms.

Trademarks
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It has many registered trademarks and service marks and believe that the Dominos mark and
Dominos Pizza names and logos have significant value and are important to business. Its
policy is to pursue registration of trademarks and to vigorously oppose the infringement of
any of its trademarks. It license the use of registered marks to franchisees through
franchise agreements.

Risk Factors

Risks relating to business and industry

1. The pizza category is highly competitive, and such competition could adversely affect
operating results.
2. If it fail to successfully implement growth strategy, which includes opening new domestic
and international stores, then ability to increase revenues and operating profits could be
adversely affected.
3. The food service market is affected by consumer preferences and perceptions. Changes in
these preferences and perceptions may lessen the demand for products, which would reduce
sales and harm business.
4. Increases in food, labor and other costs could adversely affect profitability and operating
results.

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5. Not having long-term contracts with certain suppliers, and as a result they could seek to
significantly increase prices or fail to deliver.
6. Shortages or interruptions in the supply or delivery of fresh food products could adversely
affect operating results.
7. Any prolonged disruption in the operations of any of dough manufacturing and supply
chain centers could harm business.
8. Loss of key personnel or inability to attract and retain new qualified personnel could hurt
business and inhibit ability to operate and grow successfully.
9. International operations subject us to additional risk. Such risks and costs may differ in
each country in which we do business, and may cause profitability to decline due to increased
costs.
10. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to
lower revenues and earnings.
11.Earnings and business growth strategy depends on the success of franchisees, and may be
harmed by actions taken by franchisees that are outside of control.

INNOVATIONS
AUSTRALIAN AND NEW ZEALAND ONLINE SUCCESS
Ordering a pizza, pasta or dessert from improved menu has never been so easy.
With a click of a button, customers can select from menu, add drinks and sides,
pay with cash or credit and watch as their order is made right before their eyes.

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With signi cant focus on the technology side of the Dominos business, have seen some
impressive results over the past 12 months.Australia is now averaging more than 23% of
orders placed online.

ECLUB DATABASE
Brand loyalty has also grown signi cantly with eClub member database. Each month tens of
thousands of people join to receive special Dominos offers and communication direct to
their email box. With a database reaching into the hundreds of thousands, weekly Electronic
Direct Mail (EDM) pieces have given us the opportunity to target offers to a stores local
area, resulting in greater loyalty. The growth in our eClub database has also enabled
Dominos to drive the creative look and feel of EDMs including personalised CEO letters and
themed pieces around new menu items and signi cant calendar events.

ONLINE ADVERTISING
Greater integration across all media channels for the new menu launch in February 2009
helped increase Dominos presence in online advertising which resulted in great pro ling
opportunities for online ordering capabilities. All Dominos banner advertising, including the

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successful Choc Lava Cake banner, includes a click through function enabling customers to
place an order immediately after seeing an online banner.

WEBSITE CREATIVE SUCCESS

The Dominos websites in Australia and New Zealand have undergone vast improvements in
the way promotional products are communicated to customers.
The most visually-tantalising of these promotions are the over the page animations for Choc
Lava Cake and Sticky Date Pudding with sauce running down the page when people enter
the sites. Creative ideas such as this have helped drive relevant product sales and ticket
averages for online ordering.

iPHONE
Over the next few months Dominos will launch a dedicated iPhone application for
online ordering.As our customers and the broader Australian market adopt new technologies,
Dominos is committed to ensuring we remain at the forefront with new innovations. The
iPhone application will provide customers with greater freedom to order their favourite
Dominos meal wherever they are. This Australian-rst for the pizza industry will help drive
online business and cement the position as the leading innovator.

E-Commerce
In 1999, Dominos Pizza became the first pizza delivery company in the world to offer
nation-wide internet and interactive television ordering. Delivered pizza can be ordered via
website (www.dominos.co.uk) or via any of the UKs major interactive TV services.

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National Hotline
In 2004, Dominos launched a National Hotline, enabling customers to order pizza from their
nearest store, without having to remember individual store numbers.
By dialling 087 12 12 12 12 from a landline, or a previously registered mobile, customers are
connected to their nearest store. If their number is not registered, Dominos Pizza technology
will triangulate the customers co-ordinates and ask whether they would like to order from
their nearest store or request the post code for the store they would like the delivery made to.

CARBON FOOTPRINT MEASUREMENT AND MANAGEMENT

Dominos is developing a systematic approach for the measurement of its carbon footprint in
Australia. With the impending carbon constrained economy, such an approach is crucial in
order to meet the challenges that lay ahead for every Australian company. Dominos is

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nonetheless determined to meet those challenges because as a responsible corporate citizen it

is the right thing to reduce its impact on the environment. Dominos realised that to develop
a veriable approach for the measurement of its carbon footprint it would need expert
assistance. Following a review process, Dominos selected CarbonSystems Australia to be its
sustainability partner to advise and assist Dominos generally with sustainability matters.
Once its carbon footprint is established then Dominos will have a veri able baseline against
which to manage its carbon emissions and monitor the reduction of those emissions.
It is no easy task to assess the carbon footprint of many stores across Australia.
Dominos will be implementing CarbonSystems Energy and Carbon Intelligence System
(ECIS) which will support us in three critical areas:
data collection and management - both the retrieval and collation of historical data to
establish baseline reporting, and the implementation of an automated system to ensure that
ongoing data collection is timely, complete and accurate;
the establishment of a performance management framework to track energy and carbon
reduction initiatives; and
the ability to disseminate information to Dominos stakeholders in a quick,automated
manner. The ECIS will initially cover corporate stores but Dominos will be working with its
franchisees to introduce their stores into the ECIS as well.

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30 Minute Guarantee:
At one point, Domino's Pizza had a guarantee that a customer would receive their pizza
within 30 minutes of ordering, or they would receive the pizza free and Domino's still
guarantees delivery within 30 minutes, failing which the customer is given his order free of
cost.
They does not take order if the customer is calling from distance place where it is
impossible to deliver pizza within 30 minutes
If suppose a customer is ordering a pizza cost for Rs. 500 & if they are unable to deliver
the pizza within time , suppose they are late for another 6 to 10 minutes , then they give
discount of Rs 300 & provide the pizza for Rs 200
They believe in the service called TSG (Total Satisfaction Guarantee)
Free Home delivery of home cooked food in South Delhi. They offer both Non-Veg and
Vegetarian home-cooked food for small Get-Together. The Costs are very
Reasonable and the foods are Hygienic and Low fat.

Innovating the Pizza Delivery Business

Throughout the history, in addition to pioneering the concept of efficient delivery of made-to-order
pizzas, they have been part of innovations that have made significant impact on the pizza and delivery
industries. Heres a look at some of the innovative thinking:

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Domino's HeatWave Hot Bag

Domino's HeatWave; hot bags were introduced in 1998. Each hot bag contains a
patented heating mechanism warmed via electro-magnetic energy. This technology
keeps the pizza oven-hot during a normal delivery. The outer material of the bag is
made with water-repellent nylon rather than the vinyl material previously used. Inside
the bag is 3M Thinsulate insulation, which eliminates unwanted moisture, keeping the
pizzas both hot and crisp.

A better box
Domino's was the innovator behind the sturdy, corrugated pizza box, which keeps
moisture from weakening the box, while preventing cheese from sticking to the top
during delivery.

Car-top sign - in 3-D!

Today, it's hard to miss pizza delivery cars -- thanks to Domino's Pizza. Pizza and side
order boxes account for most of the packaging used by Dominos Pizza,

Packaging
Pizza and side order boxes account for most of the packaging used by Dominos Pizza,
although some small items such as dips and desserts are packaged in other materials. This
fact sheet focuses on Dominos Pizza box packaging

Design
Nearly 38 million pizza boxes are used by Dominos Pizza in a year, each one bearing the
unique Dominos red, blue and white logo. The most important design elements are those that
help keep the pizza oven-hot and fresh. A layer of corrugated paper encapsulated by board
forms the main body of the box packaging and provides insulation. Each box is also
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punctuated with small ventilation holes to allow steam to escape, preventing the pizza from
becoming soggy .

Recycling & The Environment

Minimum of 80% of the corrugated board used for Dominos Pizzas box packaging is made
from recycled paper. The remaining 20% is made from virgin pulp to increase the boards
strength and this is specially sourced from sustainable forests. Dominos Pizza box packaging
is completely recyclable. There are many recycling points to be found locally and Dominos
encourages customers to take used box packaging to these points for recycling.
Alternatively, the Environment department at your local council may provide details of your
nearest recycling collection point. Dominos Pizza stores create hardly any litter. Having said
that, team members are trained to keep their stores immaculately clean inside and out.

Safety
All cardboard used in Dominos Pizzas box packaging is accredited as being food-friendly
by the Food and Drug Administration in the USA. and only water-based inks are used to
create the distinctive Dominos Pizza designs that appear on the boxes. All Domino's Pizza
boxes are manufactured to British standards BS5750/ISO9000 certificate no: Q06314
and comply with all relevant EU legislation.

4 Ps of Marketing:
Marketing includes the planning and the implementation of the marketing mix. The
marketing mix which is also called the 4 Ps of marketing represents almost all the steps that
are involved in the marketing process. 4 Ps of marketing represent product, price, place and
promotion.

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Product:
The very brand name Dominos adds value to the products available in the store. The
quality and the hygiene of the pizzas and the other add-ons are taken care of by the company
or the franchisees by way of training to the employees. Dominos also takes pride on the
innovation of many new products and ideas. Some of these are as follows
Double Decadence:
Dominos launched the first Double Decker pizza in the UK. Dominos Double
Decadence is created when two thin and crispy dough bases are sandwiched together with a
layer of creamy cheese and herb sauce. The pizza is then topped with vine ripened tomato
sauce, mozzarella cheese and the customers; choice of toppings.
Virtual Store:
To make take home pizza ordering more convenient for the customers, Dominos has
designed an online service which features the customers favorites and also the customers can
order for pizzas by text message via mobile phones and orders can be placed online. When
the order online option is selected, the customer is taken to the order form. And the customers
has to enter the postcode of the delivery address and then other delivery details like the phone
number and e-mail address has to be entered. Then the customer is taken to another page
the best part of the process pizza. The customer can select the pizza and the size of it and
also the customer has the option to create his/her own pizza and then pay for the food either
online using a debit or a credit card or to opt for paying the amount to the person who
delivers the pizza.
Dominos Heat wave Bag:

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Dominos Heat wave hot bag was introduced in the year 1998. The Hot bags contain a
heating mechanism that is warmed by using electromagnetic energy. This technology keeps
the pizza oven-hot during the delivery.
Price:
Dominos follows a pricing policy that is determined based on the economy of the
country. The pricing policy of Dominos gives a competitive advantage to the company over
its competitors. The price discounts available to the customers are used as a tool to attract
customers into the store. Dominos also follows seasonal pricing in order to attract customers
and to keep an edge over its competitors. The company also has special discounts on bulk
purchases.
Place (Distribution Decisions):
Dominos Pizza stores are established in almost 50 countries and they have got more
than 8,000 stores worldwide. The Dominos stores are centrally located and in a manner
convenient for the people to walk in and also convenient for the deliverers to do their job.
The distribution channel followed by the company is mostly through takeaways, telephone
ordering, SMS and online ordering. The pizzas are delivered by way of scooters at their door
step. In order to maintain the quality of the pizzas, they are carried in a heat wave bag so that
they can deliver hot and tasty pizzas to their customers.

Promotion:
Pizza order discount: Dominos offers its customers a number of discount and other
promotions on purchasing Dominos pizza.

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A customer walked out of a Florida Dominos store with a $10,000 cheque for having

bought the Gotham City Pizza and the promotion was called The Dark Knight Deal.

The Dark Knight Deal also allows the customers to win Xbox 360 and other gaming

consoles.

Dominos pizza has introduced a new value meal called the 444 deal. This 444 value

deal contains three ten-inch pizzas with one topping for $4 each with a minimum number of
three orders.

Dominos also allows its customers to play games by the time their food arrives. There

are actually two games asteroids and slide puzzle to play.

Domino's Pizza SWOT Analysis:

Strength

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 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.

Segmentation
Demographic segmentation
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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 consumers needs and wants.
Here are the demographic variables have been used to segment markets.

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 60%
Middle Class 35%
Lower class 5%

Occupation self employed (superior level peoples), officers executives, junior officers,

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Executives.

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.Dominos intends
to penetrate completely within these markets by opening up 20-25 outlets per year in these
cities. Dominos has a young and enthusiastic team of more than 2,100 employees. Today,
Dominos 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.

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.

Psychographic segmentation --

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It is the science using psychology to better understand the consumers, and they are trying to
sui 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 Arshad Warsi
(circuit) as their brand ambassador.
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

Some other Special offer in dominos pizzas

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The Dominos Pizza franchise constantly keeps on inventing ways through which it can
make a greater impact on the fast food market. That is how the fast food franchise came up
with 'Fun Meal for Four' offer. Through this method, the pizza franchise is able to
produce more variety in the food delivered to its customers at their door steps. Through its
'Fun Meal for 4 pack the Dominos Pizza India offers four pizzas at the rate of Rs 180.
This means charge of one pizza will be just Rs 45. This has helped the speciality food
franchise to enhance the strength of its customer base. Yet another strategy employed by
the fast food franchise to spread their market is to portray their advertisements in an
old-fashioned background. This quasi-environment is sure to make a positive impact on the
semi-urban crowd who are not much familiar with the brand.
The speciality food franchise has set apart Rs 50 crore for its promotional activities in 200708. The fast food franchise is willing to work harder in order to improve its growth
rate in Indian market. The speciality food franchise expects to increase its pizza
delivery at a rate of 45 per cent by the end of the coming financial year.

Competitor
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McDonalds

Wendy's

Papa John's

International and California Pizza Kitchen

WHAT MAKES DOMINOS PIZZA BETTER THAN IT

COMPETITORS
Varity of Pizzas
Good ambience
Services offered
Quality of pizzas
Location of the Outlet
Waiting time in the outlet
Door step services
Low pricing

NEW PROMOTIONAL ACTIVITY

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OFFERS BY DOMINOS
With every order of pizza and coke/Garlic breadsticks get a dominos
pasta for Rs. 39 instead of Rs 69.
Pasta is available in 2 variants: cheesy white and tangy red veg Rs
69/- non veg Rs 79/ Get garlic bread for only Rs 30/- with any of the pizza mania
combinations.
Dominos start providing coke/fanta/sprite.
Dominos started pizzas mania which start from Rs 35 and we get the
toping according to our choice.
Web coupons available at web site www.dominos.co.in
Discounting coupons are being provided with every item purchased.
Suggesting selling at a discounted price
New schemes at regular interval of time according to the taste of the
INDIAN customer

SUCCES FACTOR OF DOMINOS PIZZA

Domino's is a powerful global brand.
o "Mega Brand" as defined by Advertising Age
o Significant, ongoing investments in advertising result in broad consumer awareness
Dominos are the #1 pizza delivery company
o Largest share of pizza delivery channel
o Reinforced by our well-known slogan, "Domino's Pizza: You Got 30 Minutes

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 They have a large and growing international presence.

o Operate in over 60 countries
They operate a profitable, value-added supply chain system.
Dominos leadership team has a track record of success.

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CONCLUSION
It has successfully established its market because of Their best services
Employee's behavior
Localizing the menu
Pricing strategy
Delivery System
Advertising strategy

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