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Dominos: USA Company Overview Domino's Pizza Enterprises Limited (DMP) is the Master Franchise license owner of the Domino's Pizza brand. It sits in the Quick Service Restaurant segment within fast food retail and has a license which covers Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco. It is the largest franchisee of the Domino's brand outside of the US. Company History The first Australian Domino's Pizza store opened in 1983 in Springwood, Brisbane. In 1998, the Australian and New Zealand franchise of Domino's Pizza was bought by Silvio's Dial-A-Pizza. In 1995, the operations of Silvio's and Domino's were combined and Silvio's stores were rebranded as Domino's Pizza stores. DMP listed on the ASX on 16 May 2005. In 2006, DMP purchased existing Domino's Pizza operations in France, Belgium, the Netherlands and Monaco from Domino's Pizza International. Differentiating Factor DMP differentiates itself through its proprietary management systems and technology platforms that support significant expansion, including the 'Luv Lab', a purpose-built research kitchen in which new pizza concepts are tested and evaluated, online ordering system, which makes the order process faster for customers and marketing and branding campaigns. A major differentiating factor is DMP's highly visible and well-recognized brand. Major Customers & Competitors Major competitors include other pizza outlets in Australia, such as Pizza Hut, as well as other general fast food outlets, including McDonalds. Main customers include the general population of Australia, more specifically the youth market.
Jubilant Food Works Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights for Domino's Pizza for India, Nepal, Sri Lanka and Bangladesh. The promoters of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant Enpro Private Ltd. Domino's Pizza opened its first store in India in January 1996, at New Delhi. Today Domino's Pizza India has grown into a countrywide network of more than 300 stores with a team of over 9,000 people. According to the India Retail Report 2009, we were the largest Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores. Over the period since 1996, Domino's Pizza India has remained focused on delivering great tasting Pizzas and sides, superior quality, exceptional customer service and value for money offerings. We have endeavored to establish a reputation for being a home delivery specialist capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers from all our stores around the country. Domino's constantly strives to develop products that suit the tastes of our consumers and hence delighting them. Domino's believes strongly in the strategy of 'Think global and act local'. Thus, time and again we have been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian Consumers. Further providing value for money and affordable products to our consumers has been an important part of our efforts. Our initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an affordable and value for money meal option. Our Brand Positioning of Khushiyonki Home Delivery (Happiness Home delivered) is the emotional benefit we offer to our consumers. All our efforts, whether it is a new innovative and delicious product, offering consumers value for money deals, great service, country wide presence or delivery in 30 minutes or free are all oriented towards delivering happiness to the homes of our consumers. Dominos Different Advertisements over the Years:
Double Burst Mexican Wrap and Pasta New Pizza Mania April 2010 New Choco Lava cake Pasta ad Pizza mania 1 Pizza mania 2 Stuffed crunch pizza Chinese pizza Sicilian wheat treat pizza Cheese burst pizza Fun meal for 4 Double cheese crunch 30 min or free
Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. It is the worlds largest pizza chain with over 12,500restaurants across 91 countries. Pizza Hut was started in 1958, by two brothers Frank and Dan Carneyin Wichita, Kansas. They had the idea to open a pizza parlor. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut was serving one million customers a week in their310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ. In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990's Pizza Hut sales had reached $4billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the United States were over $5million. The first Indian outlet was opened in June 1996 in Bangalore. In India, Pizza Hut has 139 restaurants across 36 cities. Pizza Hut has been voted the best family restaurant for the second year running at the 2007Tommys Parent Friendly Awards. "Pizza Hut is known for quality, innovation and category leadership. Marketing Strategy Pizza Huts marketing strategy is very simple: we want to satisfy our customer by offering them the best. Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back program. These were implemented to make sure their customers were happy, and always wanted to return. Another big strength and even a competitive advantage is the fact that they have a full service restaurant as well as delivery services. Most of Pizza Hut's competitors do not have restaurants. Because of the restaurant, Pizza Hut can market to different segments that other pizza chains cannot. For example, Pizza Hut can market to families much easier than Domino's or Little Caesar's. Pizza Hut offers a sit-down, conversational type restaurant where families can take their children for birthday parties for example. Pizza Hut's broad selection of products also makes it easier for them to market to different market segments. The other two strategies followed by Pizza Hut is C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) and 3Fs (Fun, Friendly and Familiar). These two strategies have really helped Pizza hut to evolve out as a market leader with a competitive advantage.
In the land of tandoori rotis and masala dosas, does Italian food have any place? Yes, says the statistics. The pizza industry is really sizzling with hectic activity. The 150 Cr industry growing at an annual rate of 50% is expanding at a frantic pace. Organized food service is characterized by a chain of outlets using a uniform brand identity across all outlets, centralized procurement of supplies, focus on quality, standardization and safety from suppliers uniformity in product menus across outlets, uniform taste, and existence of strong controls and the use of technology. Indian taste buds are demanding more and pizza industry one of the most intensive industry is all gearing on. People across the country are consuming over three million pizzas a month currently, and the monthly sales figures are projected to double in the next four years. According to industry data, of the total branded quick service restaurant market of over Rs 1,200 crore, the pizza chains contribute around 50 per cent of the sales.
Dominos shows us how the age of lost cost video has not removed the need for good PR.
About 9 months ago, a video abounded on the internet (and news shows on terrestrial TV) showing 2 Dominos employees doing what we all suspect lowly paid, under motivated and just plain mischievous food service workers do with our food once we turn our backs. Lets just say nostrils and underwear, cheese and salami was involved. Anyway, the company President (Patrick Doyle) then used the same medium to broadcast his companys apology and how theyve sanitized..(the shop)from top to bottom. All pretty commendable in their quick reaction times. Still, not the best for a food brand to be associated with poor sanitary conditions. So what does the company do next? Spend millions of dollars apologizing for making bad food. Have to say, that probably wouldnt have been my first thought. Last month Dominos took personal self flagellation a step further with their pizza turnaround campaign. Queue a 4 minute video detailing how theyre turning their pizza around to be much better tasting. However about 25% of the video is taken up with negative message about the pizza - in written, oral and visual media. Its one thing to acknowledge youve made a mistake, another to publicize those comments to an even wider audience. Regardless, their site www.pizzaturnaround.com seems to be getting great traction and tweets abound with peoples verdicts on the new and improved pizzas. Whether this will help see an increase in market share only time will tell.
- Official company spokesperson. - Led communications as member of Dominos crew member re-image team. - Worked alongside EVP of franchise operations to build internal process in support of increased participation in local store marketing and PR. - Created PR curriculum for new franchisee classes and presented to incoming groups. - Secured 1.2 billion positive media impressions in 2006 to position Dominos as a cool brand. - Executed successful product launches for more than 10 new products. - Secured positive media coverage for Dominos in high-profile publications including Fortune magazine, the Wall Street Journal, and The New York Times. - Managed PR for the most successful Super Bowl Sunday in Dominos history, generating more than 150 million media impressions including appearances on Good Morning America and the Today Show." - Served as official company spokesperson.
Positioning Wars
When Domino's entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at 'branded' restaurants was more prevalent. To penetrate the Indian market, Domino's introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Domino's was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain, Nirula's was the first to start free home delivery in 1994. But where Domino's stole the market was its efficient delivery record. Goutham Advani (Advani), Chief of Marketing,
Domino's Pizza India, said, "What really worked its way into the Indian mind set was the promised thirty minute delivery." Domino's also offered compensation: Rs.30/- off the price tag, if there was a delay in delivery.4 For the first 4 years in India, Domino's concentrated on its 'Delivery' act. For its delivery promise to work, Domino's followed a 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its "restaurant dining experience." It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound. A company official said, "The Pizza making process takes about 20 minutes and since we don't usually deliver to places which are beyond the reachable-in-half-an-hour distance, customers can expect home delivery within 45 minutes." Moreover, analysts felt that Pizza was something that just was not meant to be delivered. Said Vivek Sure, Projects Manager, Pizza Express, "If you don't eat pizza fresh, it turns cold and soggy." However, Domino's seemed to have overcome this problem through its delivery pack called 'Domino's Heatwave.'5
Pizza Hut delivers - but Domino's ain't buying: Domino's challenges Pizza Hut TV ads, charges unfair representation
Pizza Hut delivers -- but Domino's ain't buying Domino's challenges Pizza Hut TV ads, charges unfair representation WICHITA, Kan. -- For the third time in as many years, Pizza Hut has launched a controversial advertising campaign blasting a competitor and raising the stakes in the sizzling delivery market. This time the target was Domino's Pizza, the leading chain for home delivered pizza. Pizza Hut outraged Domino's with a comparative advertising campaign Domino's officials said was offensive and unfair to Domino's employees. In Pizza Hut's "Change for the better, change for the best" ad campaign, two young men with their shirts unbuttoned and t-shirts showing were shown relaxing on a sun deck awaiting the arrival of a pizza. One says to the other, "If Pizza Hut didn't deliver; I don't know who we'd call." As the camera pulls back and pans down, the viewer realizes that the sun deck is actually the roof of a Domino's unit. But the surprising kicker of the ad is when -- following a rock-n-roll, MTV-like montage of a Pizza Hut delivery unit in action -- one of the young men, after eating the Pizza Hut pie, says to his buddy, "Well, back to work," and they both put on Domino's Pizza caps. "Frankly, we have no problems with comparative ads," said Mike Jenkins, a spokesman for Domino's. "But this ad, by taking our logo, slams our employees, our franchisees and our system. We would not have any objections if it had just been a straight ad, but they are deliberately portraying a situation that is false--that our employees are unkempt and profoundly stupid." "To think there are two men sitting on top of a Domino's unit and they couldn't think of another place to order. You've got to be monumentally stupid." "We didn't expect that they would call us to tell us that they liked it," said Roger Rydell, a spokesman for Pizza Hut. "We saw a humorous ad and I guess we ran the risk of turning some people off, but we did an awful lot of consumer research and people saw the ad as having a joke with the two guys turning out to be Domino's employees."
A Dominos employee testified during a trial in Pennsylvania that at the outlet at which he worked a driver who met the 30 minute deadline with four pizzas in an hour got a bonus of 1% of those sales. Drivers who missed the 30 minute deadline were given only one or two pizzas to deliver thus preventing them from making what the faster drivers made in tips. Another driver claimed the 30 minute deadline pushed him to do things he normally wouldnt like going 50mph in a 40mph zone. Critics alleged that the compensation system provided an incentive for drivers to deliver as many pizzas as possible during a work shift. Drivers receive the minimum wage of $3.35 an hour and a mileage reimbursement however the bulk of their pay came from tips which increased as the number of the number of pizzas delivered increased. In late 1990 Dominos installed a toll free number that people could call if they saw a Dominos employee driving recklessly. The company also hired behavioural scientists to revamp their driversafety program. Dominos arguments: Dominos argues that their 30 minute guarantee does not cause or incentivise their drivers to drive recklessly and hence cause accidents that could have otherwise been avoided. They have the following main points backing their argument: 1. Their independent studies concluded that accidents had been caused primarily by road and weather conditions and drivers falling asleep at the wheel not by speeding attributable to the guarantee. 2. They have put in place significant safety and training procedures to ensure drivers can make fully educated road safety decisions when delivering pizza. 3. Their motto for speed is based on Go fast in the shop, go slow on the road. 4. They have conditions in place to ensure that the guarantee is achievable in almost every situation. A pizza should be made in 8 minutes, leaving the drivers 22 minutes to deliver the pizza. In addition to this, outlets were not to guarantee delivery to an area more than two or three miles away. 5. Dominos could also argue that the research that concluded there were 140 accidents involving Dominos drivers does not actually reveal whether the accidents were Dominos drivers fault. 6. Another argument Dominos could put forward is that 140 accidents from 80,000+ drivers in one year is an unavoidable statistic given the accident rates on American roads. Furthering this argument, Dominos could try and argue that the 140 accidents are worth it given the benefit given to society by having fast pizza delivery. 7. Dominos could argue that there are other industries which involve reckless driving such as the postal service. National Safe Workplace Institutes and independents arguments:
The NSWI and independents argue that Dominos 30 minute pizza delivery guarantee causes and incentivizes their drivers to drive recklessly and hence cause accidents that otherwise could have been avoided. Their argument is based on the following main points: 1. In 1988 there were 100 accidents resulting in 10 deaths which involved Dominos drivers. 2. In 1989 there were 140 accidents resulting in 20 deaths which involved Dominos drivers. 3. Some of Dominos drivers are incentivised to drive recklessly in order to make more money. This is shown in the court cases where it was highlighted that at one Dominos outlet drivers were given bonuses if they could achieve the guarantee and other drivers were punished if they couldnt. It is not explained in the case study whether this system is a unique case or whether numerous outlets employ the same tactics. 4. However, whilst not all outlets may employ these tactics the compensation system does provide an incentive for drivers to deliver as many pizzas as possible during a work shift. Drivers are paid minimum wage and mileage reimbursement but the bulk of their pay comes from tips which increase with the number of pizzas delivered. 5. More strong evidence came from a court case where a driver claimed the guarantee would push him to do things he normally wouldnt such as going 50mph in a 40mph zone. 6. Whilst it doesnt say it in the case study there may be a culture amongst drivers to compete for prestige and the honour of being the fastest and best. The pay rate of a driver is extremely low and hence attracts younger employees. I believe the statistics for drivers would lean heavily towards teenage boys. This demographic is very impressionable and susceptible to peer pressure. They are also more likely to make bad decisions as their brain cannot fully understand the consequences of their actions. So what are the ethical issues? Do the benefits of having the guarantee outweigh the consequences? (Assuming that the guarantee is responsible for some accidents.) Does Dominos have a compensation system which incentives drivers to deliver as many pizzas as possible in a shift? Has Dominos put in place enough safety procedures and training programmes to make themselves exempt from their drivers accidents? In my opinion: There are two very different issues that need to be investigated for this case. Firstly whether the guarantee causes drivers to have accidents which otherwise would not have happened. And secondly: whether Dominos incentivises drivers to drive recklessly through their compensation system.
Domino's
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
Pr ice Br an ch Am es bi an ce Hy gi n Se e rv ice s Va rie ty Cr us t Ta st e Ef fic Pr ie of nc es y sio na lis m Q ua lity
Domino's
From the above graphical representation we come to the parameters above on the Y axis are really very important to know whether which pizza brands is more likeable by the customers. The above factors have to be considered when choosing the brands. Every factor on the X axis is considered to be vital and have to be as per the customer requirements. Here according to the diagram we can conclude that some factor favors Dominos and some factors are favoring Pizza Hut, but due to brand loyalty we can say that dominos gets an advantage over maximum factors.
The above diagram represents Dominos and Pizza Hut on the X axis and Y axis represents value for money. We can conclude that when it comes to money Dominos is privileged over Pizza Hut. It may be due to its brand loyalty among the customers.
J oint's preference
70 60 50 40 30 20 10 0 Domino's Pizza Hut J oint's preference
The above diagram represents Dominos and Pizza Hut on the X axis and Y axis represents joints preference. We can conclude that when it comes to joints Dominos is advantaged over Pizza Hut.
In the above graph we have measured the impact of celebrity endorsement on onsumers. We have concluded from the above graph that Domino's celebrity endorsement done by Actress Sagrika Ghatke is having much more impact than that of Pizza Hut which is done by actress Lara Dutta .
In this Graph we have Measured the customers views about the menu cards of the two pizza brands and found out that people find Dominos menu card more convenient to read than that of Pizza Hut.
We always watch television, where you find more advertisements of dominos than that of any other brands. This throws a great impact on the consumers when buying the products. The advertisement does not only contain Celebs but also amazing offers which attract the consumers.
We all know how flourish the pizza brands are? When it comes to outlets its always favors the pizza king In India The Dominos. No other brand can compete till date with it.
Better packaging
70 60 50 40 30 20 10 0 Domino's P izza Hut Better packaging
In the above Graph we have measured the customers liking towards the packaging of pizza of two pizza brands. From the above graph we found out that customers are more attracted towards the packing to Dominos pizza over Pizza huts packing.
In the above Graph we have shown the customers view about the importance of the formal attire/ uniform of the pizza delivery boy .
In this Graph we have measured the level of communication skills of the employees of two brands. We came to a conclusion that most of the respondents of our survey favoured Dominos employees communication skills.
Attractive Logo
60 50 40 30 20 10 0 Domino's Pizza Hut Attractive Logo
In this Graph we have measured which pizza brands logo is more attracting or appealing and here Pizza hut took the lead as most of the customers favoured pizza hut. They find Pizza huts logo more attractive than that of Dominos.
Influential Brand
70 60 50 40 30 20 10 0 Domino's Pizza Hut Influential Brand
In the above Graph we have measured the influence of two pizza brands on the customers. we came to a conclusion that customers are more influenced by Dominos Pizza than Pizza hut.This may be because of many reasons like Service, quality or any other reason.
In this Graph we have measured the PR Strategies of two brands which brand has a more impactful PR Strategy.We came to a conclusion that Dominos PR Strategy is much more impactful than that of Pizza hut.
90 80 70 60 50 40 30 20 10 0
Active in Social Issues or Matters (Including both Domino's and Pizza Hut)
Activ in Social Issues e or Matters (Including both Domino's and Pizza Hut)
YES
NO
In this Graph we have measured Whether any of the two pizza brand is active in social issues or matter . Most of the respondents have said that none of the brands are active in social issues or matters.
In this graph we have measured the custoomers response towards the question of controversies.If they know any controversies about any of the two pizza brands.We came to a conclusion that around 86% people dont know about any controversies about any of the brands.