Professional Documents
Culture Documents
Customer Satisfaction Towards Domino's Pizza
Customer Satisfaction Towards Domino's Pizza
ON
Submitted By:-
ANCHAL
BBA VI SEM
Roll No. 8116501
DEPARTMENT OF MANAGEMENT
SHATABDI INSTITUTE OF EDUCATION, MEERUT
Uttar Pradesh
BATCH-2012-15
1
Student Undertaking
This is to certify that Anchal Student of BBA- VI Sem had completed the Project titled
CUSTOMER SATISFACTION TOWARDS DOMINOS PIZZA in Dominos
Pizza under the guidance of Mr. Ruchi Mam in partial fulfillment of the requirement for
the award of degree of Bachelor of Business Administration of Shatabdi Institute Of
Education , Meerut,. This is an original piece of work & I had neither copied nor
submitted it earlier elsewhere.
ANCHAL
BBA VI SEM
Roll No. 8116501
Dated -
ACKNOWLEDGEMENT
Success is an effort bounded actively, involving the co-operation of all.
To create and formulate this project report, I would be thankful to the
entire individual who Served me
as a true
guide
and epitome of
knowledge. A Project usually falls short of its expectations unless guided by the
right person at the right time.
I would like to thank Ms. Ruchi Mam, BBA Project guide f o r anytime and
every time guidance
and continuous
and
Above all, I would like to thank the Almighty God without whom this work
could ever have been completed.
ANCHAL
BBA VI SEM
Roll No. 8116501
Preface
Project report is a very important part of a BBA curriculum. It provides an optimistic
iconography for Future existence through which students are able to see the real
industrial environment which gives an opportunity to relate theory with practice.
The main objective of making project report is to develop skill in student by supplement
to the theoretical study of business management in general and gain real life knowledge
about the industrial environment and business practices. The BBA programme provides
student with a fundamental knowledge of business and organizational functions and
activities, as well as an exposure to strategic thinking of management.
ANCHAL
BBA VI SEM
Roll No. 8116501
TABLE OF CONTENT
CHAPTER - 1: INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE..
SWOT ANALYSIS
ORGANIZATIONAL STRUCTURE
GROWTH OF INDUSTRY
PLAYERS IN INDUSTRY.
PESTEL MODEL
APPENDIX
BIBLIOGRAPHY
CHAPTER - 1
INTRODUCTION
COMPANY PROFILE
EARLY YEARS
In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza
store in Ypsilanti, Michigan, near Eastern Michigan University.[7] The deal was
secured by a $500 down payment, and the brothers borrowed $900 to pay for the
store. The brothers planned to split the work hours evenly, but James didn't want to quit
his job as a full-time mailman to keep up with the demands of the new business. Within
eight months, James traded his half of the business to Tom for theVolkswagen
Beetle they used for pizza deliveries. By 1965, Tom Monaghan had purchased two
additional pizzerias; he now had a total of three locations in the same county. Monaghan
wanted the stores to share the same branding, but the original owner forbade him from
using the DomiNick's name. One day an employee returned from a pizza delivery and
suggested the name Domino's. Monaghan immediately loved the idea and officially
renamed the business Domino's Pizza, Inc. in 1965
The company logo originally had three dots, representing the three stores in
1965. Monaghan planned to add a new dot with the addition of every new store, but this
idea quickly faded, as Domino's experienced rapid growth. Domino's Pizza opened its
first franchise location in 1967[9] and by 1978 the company expanded to 200 stores. [10] In
1975, Domino's faced a lawsuit by Amstar Corporation, the maker of Domino Sugar,
alleging trademark infringement and unfair competition. On May 2, 1980, the Fifth
Circuit Court of Appeals in New Orleans found in favor of Domino's Pizza.[11]
International expansion[edit]
ceased being involved in day-to-day operations of the company. [17] A year later, the
company named David A. Brandon CEO.[18]
Current era[edit]
Domino's Pizza logo used from 1996 until mid-2010s in major English-speaking
countries, and still use in many others)
The exterior of a Domino's Pizza store in Valdosta, Georgia with new 2015 signage.
In 2004, after 44 years as a privately held company, Domino's began trading common
stock on the New York Stock Exchange under the ticker symbol "DPZ".[19]Industry trade
publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003,
2010, and 2011.[20][21][22] In a simultaneous celebration in January 2006, Domino's opened
its 5,000th U.S. store in Huntley, Illinois, and its 3,000th international store in Panama
City, Panama making 8,000 total stores for the system. [23] In August 2006, the Domino's
location in Tallaght, Dublin, Ireland, became the first store in Domino's history to hit a
turnover of $3 million (2.35 million) per year.[24] As of September 2006, Domino's has
8,238 stores worldwide, which totaled $1.4 billion in gross income.[25]
Innovations[edit]
In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and
also rolled out its online and mobile ordering sites.[10] In 2008, Domino's introduced the
Pizza Tracker, an online application that allows customers to view the status of their order
in a simulated "real time" progress bar.[26] The first Domino's with a dining room opened
in Stephenville, Texas, giving the customers the option to either eat in or take their pizza
home. Since 2005, the voice of Domino's Pizza's US phone ordering service 1-800DOMINOS has been Kevin Railsback.[27]
In a 2009 survey of consumer taste preferences among national chains by Brand Keys,
Domino's was last tied with Chuck E. Cheese's. In December that year, Domino's
announced plans to entirely reinvent its pizza. It began a self-criticizing ad campaign in
which consumers were filmed criticizing the then-current pizza's quality and chefs were
shown developing a new pizza.[28][29] The new pizza was unveiled that same month. The
following year, 2010 and Domino's 50th anniversary, the company hired J. Patrick Doyle
10
as its new CEO and experienced a historic 14.3% quarterly gain. While admitted not to
endure, the success was described by Doyle as one of the largest quarterly same-store
sales jumps ever recorded by a major fast-food chain.[30][31]
In 2012, Domino's Pizza changed their name to simply Domino's to emphasize their
variety of non-pizza products. At the same time, Domino's introduced a new logo that
removed the blue rectangle and text under the domino in the logo, and changed the
formerly all-red domino to be blue on the side with two dots and red on the side with one
dot.[32][33]
Products[edit]
A makeline at a Domino's
11
The Domino's menu varies by region. The current Domino's menu in the United States
features a variety of Italian-American entrees and side dishes. Pizza is the primary
focus, with traditional, specialty, and custom pizzas available in a variety of crust styles
and toppings. In 2011, Domino's launched artisan-style pizzas. Additional entrees
include pasta, bread bowls, and oven-baked sandwiches. The menu offers chicken side
dishes, breadsticks, as well as beverages and desserts.[34]
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 delivery. [35] Historically,
Domino's menu consisted solely of one pizza in two sizes (12-inch and 16-inch), 11
toppings, and Coca-Cola as the only soft drink option.[36]
The first menu expansion occurred in 1989, with the debut of Domino's deep dish
or panpizza. Its introduction followed market research showing that 40% of 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.
[37]
Domino's started testing extra-large size pizzas in early 1993, starting with the 30-
related advertising.[41] 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.[42]
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.[43]
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.[44] That same year, Domino's began selling its BreadBowl Pasta entree, a lightly
seasoned bread bowl baked with pasta inside, and the Lava Crunch Cake dessert,
composed of a crunchy chocolate shell filled with warm fudge. [45] Domino's promoted the
dessert by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center near Mount
St Helens in Washington State.[46]
In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe
"from the crust up", making significant changes in the dough, sauce, and cheese used in
their pizzas.[47] Their advertising campaign admitted to earlier problems with the public
perception of Domino's product due to taste issues.[48][49]
In September 2012, Domino's announced it was going to roll out a pan pizza on
September 24, 2012.[50] Following this move, the Deep Dish pizza was discontinued after
23 years of being on the menu.
13
In December 2013, Domino's Pizza, in Israel, unveiled its first vegan pizza, which uses a
soy-based cheese substitute.[51][52]
After a stock low point in late 2009, the company's stock had grown 233 percent by late
2011. Even as the American economy has suffered and unemployment has risen,
Domino's has seen its sales rise dramatically through its efforts to rebrand and retool its
pizza.[53]
Beverages[edit]
Domino's serves Coca-Cola products and is the only "Big Four" pizza chain to do so.
Rivals Papa John's Pizza and Little Caesars sold Coca-Cola in the past, but both
switched to Pepsi, in 2012 and 2007, respectively. DOMINOS PIZZA, due to its
previous ownership by PepsiCo, has a lifetime contract to sell Pepsi products. Domino's
Pizza in Mexico switched to Pepsi in November 2012 and Domino's Pizza in Pakistan
and Spain are with Pepsi as well.
Corporate governance[edit]
Domino's Pizza corporate headquarters within the Domino's Farms Office Park.
Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly
president of Domino's USA. Previous chief executive David Brandon, made the athletic
director of the University of Michigan in January 2010, remains chairman.[54]Among 11
14
executive vice presidents are Michael Lawton, CFO; Steve Akinboro, Team USA; Scott
Hinshaw, Franchise Operations and Development; and Kenneth Rollin, General
Counsel.[55] Domino's operations are overseen by a board of directors led by Brandon.
Other members of the board are Andrew Balson, Diana Cantor, Mark Nunnelly, Robert
Rosenberg and Bud Hamilton.[56]
Charitable activities[edit]
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish
Foundation
of
America.
That
same
year,
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 Center and The Pentagon. Through a
matching funds program, the corporation donated $350,000 to the American Red Cross'
disaster relief effort.[14] In 2004, Domino's began a partnership with St. Jude Children's
Research Hospital, participating in the hospital's "Thanks and Giving" campaign since
the campaign began in 2004, and raising more than $1.3 million in 2006.[57]
Advertising[edit]
15
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 catchphraseassociated with
the commercials was "Avoid 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 March 31, 2009 and promised to reimburse store owners for the pizzas.[58]
Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie
Luyendyk and won the 1990 Indianapolis 500. In 2003, Domino's teamed up with
NASCAR
for a
multi-year
partnership
to
become
the
"Official
Pizza
of
the woman was awarded nearly $80 million, but accepted a payout of $15 million. [60] The
guarantee was dropped that same year because of the "public perception of reckless
driving and irresponsibility", according to then-CEO Tom Monaghan.[60]
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 half an hour.[61]
The company continues to offer the 30 minute guarantee for orders placed in its stores
situated in Colombia, India, Vietnam, and Turkey.
In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza
Voucher".[62][63]
In India, the guarantee is for 300 ($5) and is valid for an order of less than 4 pizzas.
Franchises[edit]
17
The rights to own, operate, and franchise branches of the chain in Australia, New
Zealand, France, Belgium, the Netherlands, and Monaco are currently owned by
Australian Domino's Pizza Enterprises, having bought the master franchises from
the parent company in 1993 (Australian and New Zealand franchises) and 2006
(European franchises).
The master franchises for the UK and Ireland were purchased in 1993 by the
British publicly listed Domino's Pizza Group, which acquired the master franchise
for Germany in 2011 and Switzerland, Liechtenstein, and Luxembourg in August
2012 by buying the Swiss master franchise holder, with an option to acquire the
Austrian master franchise as well.[66][67][68]
The
master
franchises
Lanka,
currently owned by the Indian company Jubilant FoodWorks. India has become the
largest international market for Domino's outside its home market. Indian pizza
flavors like paneer pizza, chicken tikka masala pizza, and kheema do pyaza pizza are
selling internationally.
The rights to own, operate, and franchise branches of the chain in Paraguay is
currently owned by Grupo Vierci,[69]opening the first restaurant in 2014.[70]
18
Dominos Pizza announced new online features created to expedite repeat orders.
Theprofiles platform allows customers to save information and reorder their
favorite items in about 30 seconds, according to the company.
This initiative is the latest in a long line of technology investments made by the company
in the past couple of years. Such investments have and will continue to set Dominos
apart from its smaller competitors, according to CFO Michael Lawton.
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During Telsey Advisory Groups fourth annual Fall Consumer Conference Tuesday,
Lawton spoke at length about the chains technology platforms, and how they not only
19
boost market share, but also brand consistency and customer loyalty. Currently, 35
percent of Dominos U.S. sales come from online or mobile ordering, and that number is
higher in some international markets. Mobile orders are about 10 percent of that 35
percent total, but they are growing more rapidly. I would expect (orders) will continue to
be more heavily weighted on the mobile (side) because thats what we are seeing,
Lawton
said. Digitals
impact
loyalty
20
on
branding,
In addition to the new profiles platform, Dominos also offers customers an Android app,
iPhone app, iPhone 8 app and Windows Phone 8 (with voice capability) app. This is in
addition to the brands signature Tracker and other online features. Additionally, Lawton
said Dominos digital pipeline is far from dry. We just keep coming up with more
things that we can do, he said. Its doing a lot for the brand image because you can
track the persistency of customers that switch from calling on the phone to an iPhone app.
They keep telling us, This is what we want, and were going to keep doing everything
we can to be a leader in
21
technology.
22
addition to brand image benefits, these investments are also expected to help with
customer loyalty and retention, notoriously low in the pizza space. Lawton said the
average customer buys pizza 21 times a year, and Dominos makes up six to seven of
those occasions. Even the companys most loyal customers dont choose Dominos every
single time. Unfortunately, most of the core customers do go back and forth to the other
guy down the street. Loyalty is not strong, we think, Lawton said. Thats why we are so
focused on the digital, because we think its one of the fronts that will enhance our
loyalty. That loyalty will mostly come from the increased data available from digital
platforms, which allow Dominos to create more targeted promotions based on behavior
and
history.
23
overnight
shipping
fedex good
but
recommended
wasnt side
effects
of
snorting
viagra chocolate
through
the
consistancy
25
OVERVIEW
(FAST FOOD INDUSTRIES)
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 Nirulas
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, and
Subway, 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.
26
- 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.
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
McDonalds, DOMINOS PIZZA and Kentucky Fried Chicken have become household
names, more are on their way.
27
According to an A C Neilson study of 28 markets across the US, Europe and the AsiaPacific, carried out through the internet in interviews with more than 14000 consumers,
Asians are the worlds greatest fast food fans.
28
On May 13, 1983, Dominos 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 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.
29
Domino's pizza constantly strives to develop products that suit the tastes of its consumers
and hence delighting them. Domino's believes strongly in the strategy of 'think global and
act local. Thus, time and again domino's pizza has 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 at affordable products to the consumers
has been dominos motto. Initiatives such as fun meal and pizza mania have been
extremely popular with consumers.
Since 2008 to include Oven Baked Sandwiches and BreadBowl Pasta, and recently
debuted its Inspired New Pizza- a permanent change to its core hand-tossed product,
reinvented from the crust up with new sauce, cheese and garlic seasoned crust.
30
KEY INFORMATION
Industry - Restaurants
Employees - 145,000
Website- www.dominos.com
Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master
Franchisee Rights for Dominos Pizza for India, Nepal, Sri Lanka and Bangladesh. The
company has been listed on the Indian bourses recently. Prior to Sep 24, 2009, the
company was known as Dominos Pizza India Limited and underwent a name change,
rest of the terms remaining the same. The promoters of the company are Mr. Shyam S
Bhartia, Mr. Hari S Bhartia and Jubilant Enpro Private Ltd. Dominos Pizza opened its
first store in India in January 1996, at New Delhi. Today Dominos Pizza India has grown
into a countrywide network of more than 364 stores (as on 31st December, 2010) 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, Dominos 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.
Dominos vision is focused on Exceptional people on a mission to be the best pizza
delivery company in the world!" We are committed to bringing fun, happiness and
convenience to lives of our consumers by delivering delicious pizzas to their doorstep
and our efforts are aimed at fulfilling this commitment towards a large and ever-growing
customer base.
32
Dominos constantly strives to develop products that suit the tastes of our consumers and
hence delighting them. Dominos 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 flavours 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.
33
Vision:
Exceptional people on a mission to be the best pizza delivery company in the
world
Mission
Dominos Pizza is the Pizza specialist who consistently delights the customer with
great taste and choices in pizza with friendly, courteous team members providing
prompt, safe delivery service
ORGANIZATIONAL STRUCTURE
People related to Domino's Pizza Inc.:
Hundreds of eyes glued on to television screens, sweat trickling down the temples of
nervous faces, followed by a deafening roar killing the moments of silence. Thousands
dancing on the streets thereafter, noise piercing through the silent corridors of an uptight
conference room, mindless gigs on an overflowing sofa. Yes, we are talking about cricket
the only phenomenon that creates this kind of hysteria in India. And one thing that
perfectly matches this celebration is Pizza, which is loved by one and all. Dominos has
found an exciting way to bring the two together when the biggest Cricket Carnival is on
Dominos Cricfeast. This feast comes with extra toppings that you will relish forever. We
35
will tell you how. When you order a Dominos pizza online or on phone, you set off a
chain reaction that could have a #WinchakDhichak ending for you. You will get a chance
to win every 5 mins. You could win one of 8,640 pizza discount e-booklets or one of
1,440 pizza e-vouchers worth Rs 500 each. If you are lucky, you may hit the boundary
and win free pizzas for a whole year. And if you are any luckier, you could win an iPhone
6. Its not just one or two iPhone 6, you have a chance to win one every day, for 60 days!
The luckiest 3 could win a couples trip to Australia. So what are you waiting for? The
pitch is ready and players are ready to bowl your favourite pizza. You just need to bat
along. So, next time you are watching the match and the door bell rings, it could be a
#WinchakDhichak moment right at your doorstep.
Share/Bookmark16 Comments
36
Temperatu
res
are
rising
in
living
rooms.
And
its
not
just
because
its
summer. Tayaji and mausi, bhua and nani everyone has an opinion on the Indian
Elections and on which party they support. Similarly, temperatures are rising when
friends get together endless discussions follow on which T20 team they support, which
team is in peak form.However, amidst all these heated arguments and discussions, the
good part is that there is unanimous decision when it comes to pizza. Dominos Pizza
Mania, which gives best taste, best choice and best value. Now there are 16 pizza options
to choose from hopefully, that should not become the reason for another heated
discussion.
See the all new TV ads here
37
COMPETITORS
Major players in this field:
DOMINOS PIZZAs
1. DOMINOS PIZZA
DOMINOS PIZZA is the largest pizza restaurant company in the world. It has 12700
outlets in 90 countries. DOMINOS PIZZA has an aggressive expansion plan for India. It
intends to have 100 outlets by the end of 2004. DOMINOS PIZZA will consolidate its
presence in cities where it already exists as an endeavor to create a major share of these
profitable markets first before spreading to other markets. DOMINOS PIZZA is one of
the largest pizza brands. Further, all new outlets in India would be franchisee owned
resulting from the smooth functioning of the existing stores which are all franchisee
owned. Hence, the same arrangement will be followed in the future to ensure growthoriented results.
38
Papa John's Pizza is the worlds largest pizza restaurant chain. The headquarters of the
company is located in Addison, Texas, USA. DOMINOS PIZZA is a subsidiary of Yum!
Brands, Inc. Yum! Brands own approximately 34,000 restaurants, delivery-carryout units,
and kiosks in 100 countries. Pizzas in the DOMINOS PIZZA come out in 4 different
sizes: personal, small, medium and large. Apart from pizza and garlic cheese bread, the
DOMINOS PIZZA menu includes a wide variety of side dishes such as bread sticks,
cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, chicken wings, boneless
wings, chicken munchers, jalapeo peppers, que papas potato bites filled with cheese and
jalapeo flavour, a basket of taters or tater tots and fried apple pies.
39
SWOT ANALYSIS
40
41
PEST ANALYSIS
Political Factors:
Regulatory frame work operating in judicial system which may affect the business
in different ways
Not many political factors in Delhi affecting Dominos Pizza as is it has the best
pizza delivery system in the country
42
Factors such as laws on business employment, pollution and taxation apply on the
organization which it has to abide
Economical Factors
Increasing per capita income is a good sign as the the purchasi.ng power
increases.
Social Factors
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.
43
In India, Dominos has been associated with the NGOs devoted to the cause of
under privileged childrens. Dominos conducts Store Educational Tour (SET) for
the underprivileged children time-to-time.
Technological Factors
With the new age technology baking and production is more cheaper and easier,
hence, efficient.
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.
Computer based customer data that is MIS (managing information system) helps
in collecting customer data, daily transactions, future forecasting and decision
making.
44
45
DOMINOS PIZZA
Smokin Joes
Us pizza
46
With the economic reforms and liberalization, many new entrants also want the revenue
of the 200 billion Indian fast food industries.
There are many new entrants in the branded pizza industry son of them are
Papa johns pizza
Us pizza
They have captured a lot of customers with their new style and discount offers. 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
dominos have to rethink their strategies so as to retain their customers. They have to
constantly differentiate their services from the newer 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
Mc Donalds
Barista
Cafe coffee day
Chinese restaurants (mainland china)
Largely it depends upon the customers 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 of 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
47
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
dominos is way beyond the others.
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 items at the normal rate. Thus
suppliers muscle power grew only doe to inflation. Thus the company either has to
increase the menu costs or reduce the operational costs to recover. Failing to do this will
make the company into losses or to lose out in the industry.
Marketing to children
Fast food outlets in India target childrens as their major customers. They introduce
varieties of things that will attract the childrens attention and by targeting childrens they
automatically target their parents because childrens 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
customer to switch from one product to other, this industry faces low level customer
commitment.
48
49
CHAPTER 2
RESEARCH METHODOLOGY
50
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.
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 the Internet in a given
month. The focus of descriptive research is to provide an accurate description for
something that is occurring.
51
Primary sources
The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher. Primary data is a data which have
been collected originally for the first time. in other words, primary data may be outcome
of an original statistical inquiry, measurement of facts or a count that is undertaken for
the first time. For instance data of population census is primary. Primary data being fresh
from the fields of investigation is very often referred to as raw data. In the collection of
primary data, a good deal of time, money and energy are required.
The following are the method of collecting primary data:
Collection directly by personal investigation.
Collection indirectly by oral investigation.
Collection by questionnaires and schedules.
Collection from statistical reports of correspondents and from local sources.
Secondary sources
The secondary sources were used only for collecting information regarding the sample,
they were however not used for analysis. Secondary data is data that has already been
collected and examined earlier by other investigators. Secondary data can either be
published or unpublished data.
52
a) Primary Sources
Questionnaire
Survey
b) Secondary Sources
Websites
Through Questionnaire.
53
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 New Delhi only. So the suggestions or arguments
given in the report may not hold true for other locations in India.
54
CHAPTER - 3
CONCEPTUAL DISCUSSION
55
56
Like most corporate success stories, Domino's started out small - with just one store in
1960. Now, Domino's Pizza is celebrating over forty years of delivering food, fun and
innovation.
Domino's Pizza Timeline
1960
Tom Monaghan and his brother James purchase "DomiNick's," 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.
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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 Queensland, 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.
1993
Crunchy Thin Crust pizza is rolled out nationwide.
The company discontinues the 30-minute guarantee and re-emphasizes the Total
Satisfaction Guarantee.
1994
Buffalo Wings are rolled out in all U.S. stores.
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1995
Domino's Pizza International division opens its 1,000th store.
First store opens on African continent, in Cairo, Egypt.
1996
Domino's launches its web site on the Internet (www.dominos.com).
The company reaches record sales of $2.8 billion system-wide.
1997
Domino's Pizza opens its 1,500th store outside the United States, opening seven stores in
1 day on 5 continents consecutively.
Domino's Pizza launches a campaign to update the company logo and store interior with
brighter colors and a newer look.
1998
Domino's Pizza founder, Tom Monaghan, announces retirement and sells the Company to
Bain Capital, Inc.
Domino's launches another industry innovation, Domino's HeatWave, a hot bag using
patented technology that keeps pizza oven-hot to the customer's door.
1999
Dave Brandon is named Chairman and Chief Executive Officer of Domino's Pizza.
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2000
Domino's Pizza International opens its 2,000th store outside the United States. Domino's
Pizza celebrates 40 years of delivering pizza and innovation to homes around the world.
2001
Domino's 7,000th store opens in Brooklyn, New York. Domino's launches long-term
national partnership with the Make-A-Wish Foundation.
2002
In February 2002, Domino's Pizza acquired 82 franchised stores in the Phoenix, Ariz.,
market, making it the largest store acquisition in the company's history. In August 2002,
Domino's kicked delivery up a notch with the introduction of Domino's Pizza Buffalo
Chicken Kickers and marked the creation of a whole new surprising category - premium
chicken delivered right to the door!
2003
Domino's announces an exciting multi-year partnership by becoming the "Official Pizza
of NASCAR." Domino's is named Chain of the Year by Pizza Today magazine, a leading
60
pizza trade publication. Domino's combines two culinary classics - pizza and Philadelphia
Cheese Steak - to create the all-new Domino's Philly Cheese Steak Pizza.
2004
Domino's launches Domino's Cheesy Dots, delicious round balls of dough covered in a
blend of zesty melted cheeses. Domino's becomes an associate sponsor for the Drive for
Diversity program, a minority driver development program designed to provide a steady
pipeline of well trained and supported minority drivers for the NASCAR
circuit.Domino's Pizza, Inc., the recognized world leader in pizza delivery, begins trading
common stock on the New York Stock Exchange (NYSE) in July 2004, under the new
ticker symbol "DPZ."
Domino's announces a three-year partnership with St. Jude Children's Research Hospital.
St. Jude was selected as Domino's "charity of choice" by franchisees and team members.
>>>>
2005
The Domino's Pizza celebrates the completion of the three-year renovation of its World
Resource Center in Ann Arbor, Mich. The renovation marks the first major improvement
to the company's world headquarters since Domino's founder Tom Monaghan opened the
sprawling Domino's Farms.
Domino's Pizza Australia opens its 400th store in Aspley, Brisbane.
Domino's Pizza United Kingdom celebrates the opening of its 400th store in Wadsley
Bridge, Sheffield.
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Domino's raises $1.2 million for St. Jude Children's Research Hospital during its second
annual "Thanks and Giving" campaign.
Domino's Pizza efforts worldwide raise $220,000 to support southeast Asia tsunami relief
efforts.Domino's Pizza launches its American Classic Cheeseburger Pizza in conjunction
with its appearance as a featured task on the NBC hit reality show, "The Apprentice."
2006
Domino's celebrates the opening of its 8,000th store with simultaneous celebrations of the
opening of its 5,000th U.S. store in Huntley, Ill., and its 3,000th international store in
Panama City, Panama.
Domino's extends its status as the "Official Pizza of NASCAR" and the official pizza of
Michigan International Speedway.
Domino's raises $1.34 million for St. Jude Children's Research Hospital during its third
annual "Thanks and giving" campaign.
Domino's Pizza introduces Brownie Squares - warm, delicious, bite-sized brownies
delivered with a fudge dipping sauce.
2007
Domino's introduces OREO Dessert Pizza-a thin dessert-style crust that's layered with
vanilla sauce and covered with OREO cookie crumbles and then topped with sweet
icing.
Domino's introduces its Veterans and Delivering the Dream franchising programs.
Domino's rolls out online and mobile ordering.
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Domino's is ranked in the Top 10 for the ninth time in Entrepreneur magazine's annual
listing of great franchise opportunities.
Domino's launches its "You Got 30 Minutes" campaign with new advertising agency,
Crispin Porter + Bogusky.
2008
Dominos'slaunches another food delivery industry first: Pizza Tracker. This revolutionary
technology allows Domino's Pizza customer to follow the progress of their order online
from the time they click the "Place Order" button or hang up the telephone until the
Domino's delivery expert is knocking on their door. In an historic expansion of its menu,
Domino's claims the title as the firstmajor quick-service restaurant chain in the U.S. to
deliver hot, oven-baked sandwiches. Our new Oven Baked Sandwiches come in four
delicious varieties on artisan Italian bread and baked to a golden brown:Philly Cheese
Steak, Chicken Bacon Ranch, Chicken Parm and Italian.
2009
Continuing its aggressive menu expansion, Domino's introduces a new line of pastas that
include a handmade, oven-baked bowl. BreadBowl Pasta flavors include Three Cheese
mac-N-Cheese, Italian Sausage Marinara, Chicken Alfredo, Chicken Carbonara and Pasta
Primavera. Number one ranking in the American Customer Satisfaction Index Domino's
introduces new chocolate Lava crunch Cakes,oven-baked choclate cakes ,crunchy on the
outside,witha warm flowing choclate fudge inside . Domino's adds four bold new
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varieties to its oven baked sandwiches line italian Sausage and peppers, Buffalo Chicken
with Blue Chesse ,Sweet and Spicy Chicken Habanero and Mediterranean Veggie. In late
December,Domino's announces its inspired new pizza Reinvented from the crust up,the
new hand-tossed piizza features new sauce ,cheese and garlic-seasoned crust .The
reformulation was one of the biggest moves in the company's 50-year history, and was
inspired by its toughest consumer criticts. Dominos transparent approach to talking about
this bold change garnered much attention from the media and public in genral ,with the
press highlighting the company's open and honest treatment in it's advertising.
2010
After years of languishing near the bottom of consumer taste perception studies,Domino's
proudly boasts its research-backed wins over Papa john,s and DOMINOS PIZZA in a
national taste test of hand-tossed pepperoni pizza,sausage pizza and extra-cheese pizza
chairman and CEO David A.Brandon steps down as CEO effective March 7 and the
Board of Director's Sucessor . elect j.Patrick Doyle as Brandon's sucessor . Brandon will
be retained by the Compan as a Special adivisor for the remainder of 2010 and continue
as a non-executive Chairman of the Board.Concurrently,the University of Michigan
announces Brandon will serve as its next Director of intercollegiate Athletics. Dominos
opened its 9,00th store on March 11.
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In 1960, Tom Monaghan and his brother, James, purchased DomiNick'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.
Early years
65
International expansion
On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba,
Canada. That 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.
Sale of company
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.
Current era
In 2004, after 44 years as a privately held company, an employee of Domino's Pizza rang
the opening bell at the New York Stock Exchange and the company began trading
common stock on the NYSE under the ticker symbol "DPZ".
Industry trade publication Pizza Today magazine named Domino's Pizza "Chain of the
Year" in 2003 and did so again in 2010.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
66
Panama City, making 8,000 total stores for the system. Also that year, 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 2009, Domino's
introduced the Pizza Tracker, an online application that allows customers to view the
status of their order in a simulated "real time" progress bar. In addition, the first Domino's
with a dining room opened in Stephenville, Texas, giving the customers the option to
either eat in or take their pizza home. Since 2005, the voice of Domino's Pizza's national
phone ordering service 1-800-DOMINOS has been Kevin Railsback.
In a 2009 survey of consumer taste preferences among national chains by Brand Keys,
Domino's was last tied with Chuck E. Cheese's. In December that year, Domino's
announced plans to entirely reinvent its pizza. It began a self-flogging ad campaign in
which consumers were filmed criticizing the pizza's quality and chefs were shown
developing the new product.The new pizza was introduced that same month, and the
following year, Domino's 50th anniversary, the company acquired J. Patrick Doyle as its
new CEO experienced a historic 14.3% quarterly gain. While admitted not to endure, the
success was described by Doyle as one of the largest quarterly same-store sales jumps
ever recorded by a major fast-food chain.
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Products
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 delivery.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 option.
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-
68
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 Yorkstyle 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 BreadBowl Pasta entree, a lightly
seasoned bread bowl baked with pasta inside,and Lava Crunch Cake dessert, composed
69
of a crunchy chocolate shell filled with warm fudge. Domino's promoted the item by
flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center 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 used in their pizzas. Their advertising campaign
admitted to earlier problems with the public perception of Domino's product due to issues
of taste.
Corporate governance
Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly
president of Domino's USA. Previous chief executive David Brandon, made athletic
director of the University of Michigan in January 2010, remains chairman.Among 11
executive vice presidents are Michael Lawton, CFO; Asi Sheikh, Team USA; Scott
Hinshaw, Franchise Operations and Development; and Kenneth Rollin, General
Counsel.Domino's operations are overseen by a board of directors led by Brandon. Other
members of the board are Andrew Balson, Diana Cantor, Mark Nunnelly, Robert
Rosenberg and Bud Hamilton
.
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Charitable activities
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 "Avoid 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
71
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.
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Customer Satisfaction
Through
4 Ps
Of
Marketing Mix
73
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.
Marketing Mix is a set of marketing tools that the firm uses to pursue its
marketing objectives in the target market
- Kotler
Marketing mix is a term used to describe the combination o the four inputs which
constitute the core of a companys marketing system: the product; the price structure; the
promotional activities, and the distribution system.
Marketing mix represents the total marketing programme of a firm. It involves decisions
with regard to product, price, place and promotion. Marketing mix is a blending of
decisions in the 4 Ps.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
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(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 req. to determine the price that will enable the firm to sell its
products successfully. Demand, cost, competition, govt. 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.
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.
75
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
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
76
has to make decision with regard to the mode of transporting of goods to middle-men, use
of company vehicles or both.
Product Mix
(Dominos 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:
Vegetarian products
Non vegetarian products
Beverages
Deserts
Add-ons
Veg.cheese pizza
Veg.onion pizza
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Beverages
Desserts
Add-ons
Cold coffee
Ice tea
Hot serves
Shakes
Soft drinks
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.
Nothing but the Best
That's how we plan our product range. Food quality is key at Dominos .That's why we
take pride in the foods we serve you 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.
Cold Chain
The term Cold Chain describes the network for the procurement, warehousing, transportation and
retailing of food products under controlled temperatures. McDonalds restaurants store products
to be used on a daily basis, within a temperature range of 18C to 4C. About 52% of our food
products need to be stored under these conditions before they are used.
78
Product strategies:
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.
79
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.
Price Mix
Price and Pricing strategies:
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
80
products in different markets to evolve an appropriate pattern of prices in the long run. It
is the plan defining the initial price 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.
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 follows buyer based pricing. They are basing their prices on
the products perceived value. They see buyers perception of value, not the sellers 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.
81
Initially Dominos charged high price than what is being charged now. But now it
introduces new schemes for value of money.
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.
Dominos distribution centres 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.
72 restaurants in North & East India: with
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)
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6 in Karnataka Bangalore(6)
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, dominosIndia.
The new outlets will be a combination of highway restaurants, outlets at railway stations,
at shopping malls and cineplexes, 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.
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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 DelhiAgra highway, the Delhi-Ludhiana highway and the Mumbai-Pune highway.
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 o various promotional tools usd 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 4:
DATA ANALYSIS
85
Analysis of Questionnaire
Yes
No
80% of the people agreed that they love Outdoor eating a lot.
20% of the people said that they dont like Outdoor eating.
86
Once a month
Once a fortnight
Population
30
25
25
20
15
10
Population
5
5
0
Once a More than Once a
Once a
Once a Fortnight Month
Week
Week
Less than
Once a
Month
25 informants said that they visit Dominos once in a fortnight. This section of people
is 50% of the total sample.
8 informants said that they visit more than once in a week i.e. 16% of the people
surveyed.
7 said that they visit once in a month. They are 14% of the people surveyed.
5 persons each said that they visit once a week and less than once a month
respectively. They are 20% of the people surveyed.
87
Views
No. of persons
Strongly Disagree
Disagree
Neither agree
Agree
Strongly Agree
1
1
7
38
3
No. of persons
45
40
35
30
25
20
15
10
5
0
No. of
Persons
Strongly Disagree
Disagree
Neither Agree
Agree
88
Strongly
Agree
38 persons out of 50 surveyed agreed that its ambience is comfortable i.e. 60%
Views
Yes
No
No. of persons
43
7
This question shows whether Dominos maintains consistency in taste and quality of its
food products.
89
86% of the persons surveyed agreed that Dominos maintains consistency in its taste and
quality while 14% disagreed.
Views
No. of persons
Very satisfied
Satisfied
Not satisfied
35
6
6
0
9
1
2
3
35
Views
No. of persons
Very effective
effective
7
27
Not effective
16
No. of persons
30
25
20
No. of persons
15
10
5
0
Very effective Effective
Not effective
This question deals with whether the promotional measures adopted by Dominos are
effective or not.
Out of 50 persons being surveyed:
No. of Persons
Excellent
Very Good
17
Good
25
Poor
No. of persons
25
20
15
No. of persons
10
5
0
Good
92
Q9. Have you ever called for home delivery of products from dominos?
Yes
No
93
Yes
No
94
CHAPTER - 5:
FINDINGS AND RECOMMENDATION
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FINDING
DOMINOS PIZZA are the world's largest user of cheese, one of their secret
recipes is the Insider pizza and that alone uses a pound of cheese on each pizza.
Over the course of a summer, it is estimated that DOMINOS PIZZA uses a 100
million pounds of cheese. DOMINOS PIZZA uses more than 300 million pounds
of cheese annually.
DOMINOS PIZZA purchases more than 3 percent of all cheese production in the
United States, which requires a herd of about170,000 dairy cows to produce it.
One of the bad guys in the movie Spaceballs is called Pizza the Hutt.
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Conclusion
Going through the analysis of response from the survey conducted, it is concluded that
Dominos is able to be and retain at top among all the fast food chains like Nirulas,
Subway and Burger King,Sbarro.
Dominos is also preferred over DOMINOS PIZZA, McDonalds and KFC.
Though not wide but its product line is quite impressive. It includes meals for both
Vegetarian and Non-Vegetarian and satisfies both section of customers.
Dominos is also providing its customers a well provided and comfortable ambience.
It has been rated as very good by its customers in terms of Taste and Variety of food and
promptness of delivery.
Prices are affordable by all and Dominos also satisfies its customers by continuously
introducing value for money offers
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Summarising all points we conclude that Dominos is growing fastly by satisfying its
customers by providing quality and maintaining consistency and also has an impressive
strategy of marketing the products in the form of Marketing Mix Elements.
98
RECOMMENDATIONS
99
APPENDICES
QUESTIONNAIRE
Name:
Age:
Marital Status:
Occupation:
No. Of Children:
Income:
Yes
No
Once a week
Once a month
Once a fortnight
McDonalds
KFC
Nirulas
101
Q9. Have you ever called for home delivery of products from dominos?
Yes
No
Yes
No
102
BIBLIOGRAPHY
Books referred:
Websites referred:
www.wikipedia.com
www.dominos.co.in
www.google.com
Websites of different fast food restaurants.
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