Case 4: DOMINOS PIZZA INDIA LIMITED

Introduction
Dominos Pizza India Limited is a Pizza Retail company spread across India across 85
Locations in 22 Cities. Their Sales Model is Take away and deliveries, deliveries accounting
for about 70% of their business. Hence their main focuses in to acquire and retain and
increase the value of their customers.
Scope and Purpose
The Sales Module gives a bird’s eye view of their customers. It holds the complete Customer
Information including transaction history. Grouping the customers based on User Specified
Criteria to facilitate campaigns on the selected groups. The Campaign Management module is
used for planning, executing and analyzing campaigns results. Apart from this, the solution
would also provide detailed analysis of Sales trends and customer behavior over parameters
such as time, Hours of day, customer segment, order value, order frequency etc.
Interrelated Systems
POS: The Point of Sale application is located at the store. The Customer Service
Representative (CSR) takes the order in this system. It is a Clipper/FoxPro based system in
use since Dominos started operations in India. It primarily holds customer information such
as Name, Phone Number and Address and Location (Delivery Area/Sector as defined by
Dominos) data transfer is One way i.e. from POS – SLX and subsequently in the next phase it
would be 2 way.
Email System: A POP3 Email System to send out email.
Functional requirements
_ Customer Management
_ Campaign Planning
_ Campaign Execution
_ Post Campaign Analysis
_ Reports and Analysis
Customer Management
Information from the POS in brought in by Batch Data Import and data such as Last order
date, total order value, order frequency, average ticket value etc are calculated after batch
update is done
This is used to classify the customer based on customer inactivity, order value etc to run
campaigns to get further business from the customer.

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Campaign Planning
Campaign Planning includes deciding the Campaign objective/period/target segment. The
system generates a list of customers on whom the campaign is to be run. This is generated
either by running a query on the database (complex queries) or by using the Data mining
capabilities of the software. The data mining software assigns a score to each customer, the
score indicating the probability of the customer responding to the campaign. This is done
using Response Models built using results of previous campaigns.

Once the campaign period/objective/target segment/offers and communication channel have

been decided, the same can be entered into the system to create a campaign. A campaign can
consist of different offers. Each offer can be run using a different communication channel. i.e.
direct mail, email, and Telephonic call.

Campaign Execution
Campaign execution is in the form of:
Direct Mailers – The system generated Labels for the customers for who are target segment
for the campaign offer. Coupons are managed outside the SalesLogix system. The labels with
the address of the customer are put on the offer coupons and posted to the client.

E-mails – Templates for email offers are created and stored in SalesLogix as Word
documents. These templates are used for sending personalized emails to the customers. Mail
merge will be done and the SalesLogix integrated with the E-mail system at Domino’s will
send out the email.

Tele-Calling – The SalesLogix system will generate a list of Customer with Name along with
telephone number, which is handed over to the call center.

Response Management
The responses for all the above communication channels are captured in the POS and are then
imported into the SalesLogix system. The responses are recorded as Orders booked against
the campaign.

Only a delivered order is considered as a response to a campaign. SalesLogix however

provides the functionality to capture other forms of response and can be used at a later stage
as and when the requirement arises. The response is captured in order to perform effective
post campaign analysis.

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Post Campaign Analysis
The system would be able calculate the Net Profit from the campaign. It is calculated from
the actual sales during that period. Incremental sales are the additional sales over the baseline
sales that have occurred due to the campaign

Baseline Sales = Sales during any predefined period e.g. same period of previous year or
previous month, period in which a similar campaign was run or any such period on during
which no campaign was run.

The system would provide the user to select the campaign and the “baseline period.” On
selecting the “calculate option,” the system would then display the following to the user

. ACTUAL SALES
. INCREMENTAL SALES OVER BASELINE PERIOD
. AVERAGE TICKET VALUE
. TOTAL COST OF ACTIVITY
. GROSS CONTRIBUTION
. NET PROFIT /LOSS FROM CAMPAIGN

Analysis and reports

Sales trends, customer and buying behavior provide important decision making criteria for
the managers. The system would provide the ability to analyze sales, costs, campaigns,
customer behavior etc in a user-friendly manner using Seagate analysis.

These would focus on understanding the customer well and also help to achieve
improvements in the system like to the menu, opening of stores, extension of delivery areas
etc. Apart from the above this information would also be used to achieve a higher response
rates for campaigns.

The following Business Measures are available to the managers to analyze data.
_ Sale Value
_ No of Pies or Side items
_ No of Orders
_ Average Ticket Value
_ Food Cost

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 The parameters are:
_ Time
_ Customer Category
_ Geography
_ Product
_ Customer Segment
_ Campaign redemption

Post Implementation Findings

The Product gave Dominos a 360 degree view of their customers. Information such as the
frequency of order / break up of sales over the various dimensions was not possible in the
past. Ability to plan future campaigns based on results/Customer behavior of previous
campaigns is now possible.

Adopted from Advanced CRM book by Prof. Abhay Kardeguddi for Symbiosis Centre for
Distance Learning

ACTIVITY

1. Go through the ‘Customer Centric Approach’ – Relate it with expanded marketing mix - 7 Ps
of marketing discussion. Derive 7 Ps explanations for Dominos pizza. Which ‘P’ according to
you is prominent in Dominos marketing program? Why?

2. Explore the Relationship of Dominos CRM program with ‘Customer Perception Study’.

3. Write a detailed note on implementation of CRM program of Dominos Pizza.

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