Professional Documents
Culture Documents
Disha's Project
Disha's Project
1. Introduction …01
2. Company profile …06
3. Key information …09
4. Timeline
…11
5. Objectives …14
6. Marketing of product
…16
7. Business strategy …19
8. Segment overview …23
9. Innovations …29
10.4 p’s of marketing …38
11. Swot analysis …43
12. Competitors …46
13. Research methodology …51
14. Conclusion …65
15. Bibliography
…69
1
1. INTRODUCTION
Definition of Marketing:
Various definition of marketing have been proposed by practitioners
of marketing:
2
People can satisfy their requirements, or problems in one of four ways-
Self solution (coming up with answer to the problems themselves. Fro e.g.-
inventions)
Force(threatening/stealing)
Begging(pleading/seeking sympathy)
Exchange (offering something of value to the owner)
Strategy:
Koontz and O’Donnell describe strategy as “a decision about how to use
3
Strategy implies action as well as decision-making and involves
consideration of environment in which it operates.
Strategies based on market dominance-In this scheme; firms are classified based
on their market share or dominance of an industry. Typically there are four types
of market dominance strategies:
Leader
Challenger
Follower
Nicer
Marketing Strategy:-
4
“When we will get there”, and
“This is our stance”.
The fact that the strategy is longer term gives both internal and external involved
parties an indication of confidence and belief in the future.
5
2. COMPANY PROFILE
COMPANY PROFILE
DOMINO’S PIZZA
founded by Tom Monaghan. There are currently about 8,500 corporate and
largest pizza chain behind Pizza Hut in the United States. In 1967, the first
On May 13, 1983, Domino's opened its first international store, in Winnipeg,
Canada. That same year, Domino's opened its 1,000th store overall, and by 1995
6
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
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.
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
7
3. KEY INFORMATION
8
KEY INFORMATION
Industry - Restaurants
Employees - 145,000
Website-http://www.dominos.com/
9
4. TIMELINE
1960
10
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.
1975
Amstar Corp., maker of Domino Sugar, institutes a trademark infringement
lawsuit against Domino's Pizza. In
1983,
Federal court rules Domino's Pizza did not infringe on the Domino Sugar
trademark.
1983
Domino's first international store opens in Winnipeg, Canada. The 1000th
Domino's store opens. The first Domino's store opens on the Australian continent,
in Queens land, Australia.
1990
Domino's Pizza signs its 1,000th franchise.
1992
Domino's rolls out Breadsticks, the company's first national non-pizza menu item.
11
1995
Domino's Pizza International opens its 1,000th store. First store opens on African
continent, in Cairo, Egypt.
1996
Domino's launches its Web site (www.dominos.com).
1998
Domino's launches another industry innovation, Domino's Heat Wave, a hot bag
using patented technology that keeps pizza oven-hot to the customer's door.
2000
Domino's Pizza International opens its 2,000th store outside the United States.
Domino’s
Pizza celebrates 40 years of innovation and delivering pizza to homes around the
world.
2006
Domino’s Pizza introduces Brownie Squares — warm, delicious, bite-sized
brownies
delivered with a fudge dipping sauce.
2007
Domino’s rolls out online and mobile ordering..
12
5. OBJECTIVES
OBJECTIVES:-
13
To find who are the competitors of Dominos and the market shares of the
competitors;
What strategies Dominos is implementing to beat its competitors.
To find out how Dominos reacts to the changes in the environment.
To study the consumer behavior as per the Nagpur preference n factors
which influence the purchase decision process?
To understand the customer satisfaction with respect to Dominos in
Nagpur.
14
6. MARKETING OF
PRODUCT
MARKETING
15
Marketing –
This department makes sure that it stay ahead of the game by understanding What
customers want and publicizing its brand through innovative advertising, direct
16
mail, e-commerce and Premarketing is also closely involved in the development
and launch of new products and technology that makes Domino’s stand out from
the competition!
Food Service –
Responsible for manufacturing Domino’s hallmark fresh dough at our company
owned facilities and for sourcing the fine, fresh ingredients used in stores, Food
Service is a very important department with responsibility for making sure
ingredients meets strict food safety criteria.
This department also sources, invents and/or manufactures all of the
equipment used in our stores.
IT –
As the first pizza delivery company in the world to offer customers both online and
interactive ordering facilities, it’s no surprise that IT is a very important part of
corporate and store level operations.
Domino’s IT team makes sure that all technology and e-commerce services are the
best to support business and that they work efficiently. It surprises many people to
learn how Domino’s applies IT to virtually every aspect of running business at
store and corporate level.
17
7. Business Strategy
Business Strategy
To achieve further growth through the continued implementation of business
strategy, which includes the following key elements?
18
Continue to execute on our mission statement.
U.S. pizza delivery and carry-out are the largest components of the U.S. QSR pizza
category. They are
also highly fragmented. Pizza delivery, through which a majority of our retail sales
are generated, had sales of $10.9 billion in the twelve months ended
November 2008.
As the leader in U.S. pizza delivery, believe that convenient store
locations, simple operating model, widely-recognized brand and efficient supply
chain system are competitive advantages that position to capitalize on future
growth.
19
Believe that the strength of Domino’s Pizza brand makes one of the first choices of
consumers seeking a convenient, quality and affordable meal. They intend to
continue to promote brand name and enhance reputation as the leader in pizza
delivery.
In 2007 it launched the campaign, “You Got 30 Minute,” which built on the
Company’s 30-minute delivery heritage.
In 2007 and 2008, each domestic stores contributed 4% of their retail sales to
advertising fund for national advertising in addition to contributions for market-
level advertising. Intend to leverage strong brand by continuing to introduce
innovative, consumer-tested and profitable new product varieties (such as
Domino’s Brooklyn Style Pizza and Domino’s Oven Baked Sandwiches),
complementary side items.
20
• Continue to grow international business.
They believe that pizza has global appeal and that there is strong and growing
international demand for delivered pizza. They have successfully built a broad
international platform, almost exclusively through master franchise model, as
evidenced by their 3,726 international stores in more than 60 countries.
They have significant long-term growth opportunities in international markets
where they have established a leading presence. In their current top ten
international markets, believe that store base in total for these ten markets is
approximately half of the total long-term potential store base in those markets.
Store-level economics of business model, the growing international demand for
delivered pizza and the strong global recognition of the Domino’s
Pizza brand. International stores have produced positive quarterly same store sales
growth for 60 consecutive quarters.
21
8. Segment overview
Segment overview
• Domestic stores.
Domestic stores segment consists of domestic franchise operations, which oversee
network of 4,558 franchise stores located in the India, and domestic Company-
22
owned store operations, which operate network of 489 Company-owned stores
located in United States;
• International.
International segment oversees network of 3,726 international franchise stores in
more than 60 countries. International segment also distributes food to a limited
number of markets from six dough manufacturing and supply chain centers in
Alaska, Hawaii and Canada (four).
23
Marketing operations
Domestic stores contribute between 4% to 5% of their retail sales to fund national
marketing and advertising campaigns advertising programs. It also contribute to
market-level media campaigns. These national and market-level funds are
administered by Domino’s National Advertising Fund Inc., or DNAF, not-for-
profit advertising subsidiary.
The funds remitted to DNAF are used primarily to purchase television advertising.
DNAF also provides cost-effective print materials to domestic stores for use in
local marketing that reinforce national branding strategy. In addition to the national
and market-level advertising contributions, domestic stores spend additional
amounts on local store marketing, including targeted database mailings, saturation
print mailings and community involvement through school and civic organizations.
Additionally, we may from time-to-time partner with other organizations in an
effort to promote the Domino’s Pizza brand.By communicating a common brand
message at the national, local market and store levels, we create and reinforce
powerful, consistent marketing message to consumers.
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This is evidenced by successful previous marketing campaign with the slogan
“Get the Door. It’s Domino’s.” and current marketing campaign with the slogan
“You Got 30 Minutes.™” Over the past five years, it estimates that domestic stores
have invested approximately $1.4 billion on national, local and co-operative
advertising.
Third-party suppliers
The active relationships of 15 years or more with more than half of major
suppliers. Suppliers are required to meet strict quality standards to ensure food
safety. They review and evaluate suppliers’ quality assurance programs through,
among other actions, on-site visits, third party audits and product evaluations to
ensure compliance with standards. They believe that the length and quality of
relationships with suppliers provides them with priority service and quality
products at competitive prices.
They currently purchase pizza cheese from a single supplier.
In 2007, the Company entered into a new arrangement with this supplier. Under
this arrangement, the supplier agreed to provide an uninterrupted supply of cheese
and the Company agreed to a five year pricing period during which it agreed to
purchase all of its primary pizza cheese for the Company’s United States stores
from this supplier or alternatively, pay to the supplier an amount reflecting any
benefit previously received by the
25
important to business. Its policy is to pursue registration of trademarks and to
vigorously oppose the infringement of any of its trademarks.
It license the use of registered marks to franchisees through
franchise agreements.
Risk Factors
1. The pizza category is highly competitive, and such competition could adversely
affect operating results.
2. If it fail to successfully implement growth strategy, which includes opening new
domestic and international stores, then ability to increase revenues and operating
profits could be adversely affected.
3. The food service market is affected by consumer preferences and perceptions.
Changes in these preferences and perceptions may lessen the demand for
products, which would reduce sales and harm business.
4. Increases in food, labor and other costs could adversely affect profitability and
operating results.
5. Not having long-term contracts with certain suppliers, and as a result they
could seek to significantly increase prices or fail to deliver.
26
8. Loss of key personnel or inability to attract and retain new qualified personnel
could hurt business and inhibit ability to operate and grow successfully.
9. International operations subject us to additional risk. Such risks and costs may
differ in each country in which we do business, and may cause profitability to
decline due to increased costs.
10. Fluctuations in the value of the U.S. dollar in relation to other currencies may
lead to lower revenues and earnings.
11.Earnings and business growth strategy depends on the success of franchisees,
and may be harmed by actions taken by franchisees that are outside of control.
27
9. INNOVATIONS
INNOVATIONS
AUSTRALIAN AND NEW ZEALAND ONLINE SUCCESS
28
Ordering a pizza, pasta or dessert from improved menu has never been so easy.
With a click of a button, customers can select from menu, add drinks and sides,
pay with cash or credit and watch as their order is made right before their eyes.
With signifi cant focus on the technology side of the Domino’s business, have seen
some impressive results over the past 12 months.Australia is now averaging more
than 23% of orders placed online.
ECLUB DATABASE
Brand loyalty has also grown signifi cantly with eClub member database. Each
month tens of thousands of people join to receive special Domino’s offers and
communication direct to their email box. With a database reaching into the
hundreds of thousands, weekly Electronic Direct Mail (EDM) pieces have given us
the opportunity to target offers to a store’s local area, resulting in greater loyalty.
The growth in our eClub database has also enabled Domino’s to drive the creative
look and feel of EDMs including personalised CEO letters and themed pieces
around new menu items and signifi cant calendar events.
ONLINE ADVERTISING
Greater integration across all media channels for the new menu launch in February
2009 helped increase Domino’s presence in online advertising which resulted in
29
great profi ling opportunities for online ordering capabilities. All Domino’s banner
advertising, including the successful Choc Lava Cake banner, includes a click
through function enabling customers to place an order immediately after seeing an
online banner.
The Domino’s websites in Australia and New Zealand have undergone vast
improvements in the way promotional products are communicated to customers.
The most visually-tantalising of these promotions are the ‘over the page’
animations for Choc Lava Cake and Sticky Date Pudding with sauce running down
the page when people enter the sites. Creative ideas such as this have helped drive
relevant product sales and ticket averages for online ordering.
iPHONE
Over the next few months Domino’s will launch a dedicated iPhone application for
online ordering. As our customers and the broader Australian market adopt new
technologies, Domino’s is committed to ensuring we remain at the forefront with
new innovations. The iPhone application will provide customers with greater
freedom to order their favorite Domino’s meal wherever they are. This Australian-
first for the pizza industry will help drive online business and cement the position
as the leading innovator.
30
E-Commerce
In 1999, Domino’s Pizza became the first pizza delivery company in the world to
offer nation-wide internet and interactive television ordering. Delivered pizza can
interactive TV services.
National Hotline
from their nearest store, without having to remember individual store numbers. By
customers are connected to their nearest store. If their number is not registered,
Domino’s Pizza technology will triangulate the customer’s co-ordinates and ask
whether they would like to order from their nearest store or request the post code
31
on the environment. Domino’s realized that to develop a verifiable approach for the
measurement of its carbon footprint it would need expert assistance. Following a
review process, Domino’s selected Carbon Systems Australia to be its
sustainability partner to advise and assist Domino’s generally with sustainability
matters.
Once its carbon footprint is established then Domino’s will have a verifi able
baseline against which to manage its carbon emissions and monitor the reduction
of those emissions.
It is no easy task to assess the carbon footprint of many stores across Australia.
Domino’s will be implementing CarbonSystems’ Energy and Carbon Intelligence
System (ECIS) which will support us in three critical areas:
• data collection and management - both the retrieval and collation of historical
data to establish baseline reporting, and the implementation of an automated
system to ensure that ongoing data collection is timely, complete and accurate;
• the establishment of a performance management framework to track energy and
carbon reduction initiatives; and
• the ability to disseminate information to Domino’s stakeholders in a quick,
automated manner. The ECIS will initially cover corporate stores but Domino’s
will be working with its franchisees to introduce their stores into the ECIS as well.
30 Minute Guarantee:
At one point, Domino's Pizza had a guarantee that a customer would receive their
pizza within 30 minutes of ordering, or they would receive the pizza free and
Domino's still guarantees delivery within 30 minutes, failing which the customer is
given his order free of cost.
32
They does not take order if the customer is calling from distance place where
it is impossible to deliver pizza within 30 minutes
If suppose a customer is ordering a pizza cost for Rs. 500 & if they are
unable to deliver the pizza within time , suppose they are late for another 6
to 10 minutes , then they give discount of Rs 300 & provide the pizza for Rs
200
They believe in the service called TSG (Total Satisfaction Guarantee)
Free Home delivery of home cooked food in South Delhi. They offer both
Non-Veg and Vegetarian home-cooked food for small Get-Together. The
Costs are very Reasonable and the foods are Hygienic and Low fat.
of made-to-order pizzas, they have been part of innovations that have made
significant impact on the pizza and delivery industries. Here’s a look at some of the
innovative thinking:
33
Domino's Heat Wave Hot Bag
Domino's Heat Wave; hot bags were introduced in 1998. Each hot bag
This technology keeps the pizza oven-hot during a normal delivery. The
outer material of the bag is made with water-repellent nylon rather than the
vinyl material previously used. Inside the bag is 3M Thins late insulation,
which eliminates unwanted moisture, keeping the pizzas both hot and crisp.
A better box
Domino's was the innovator behind the sturdy, corrugated pizza box, which
keeps moisture from weakening the box, while preventing cheese from
Today, it's hard to miss pizza delivery cars -- thanks to Domino's Pizza.
Pizza and side order boxes account for most of the packaging used by
Domino’s Pizza,
Packaging
Pizza and side order boxes account for most of the packaging used by Domino’s
Pizza, although some small items such as dips and desserts are packaged in other
34
Design
Nearly 38 million pizza boxes are used by Domino’s Pizza in a year, each one
bearing the unique Domino’s red, blue and white logo. The most important design
elements are those that help keep the pizza oven-hot and fresh. A layer of
corrugated paper encapsulated by board forms the main body of the box
packaging and provides insulation. Each box is also punctuated with small
ventilation holes to allow steam to escape, preventing the pizza from becoming
“soggy” .
Safety
All cardboard used in Domino’s Pizza’s box packaging is accredited as being ‘food-
friendly’ by the Food and Drug Administration in the USA. and only water-based
inks are used to create the distinctive Domino’s Pizza designs that appear on the
boxes.
35
All Domino's Pizza boxes are manufactured to British standards
BS5750/ISO9000 certificate no: Q06314 and comply with all relevant EU
legislation.
36
10. 4 P’s of Marketing
4 P’s of Marketing:
Marketing includes the planning and the implementation of the marketing mix. The
marketing mix which is also called the 4 P’s of marketing represents almost all the
37
steps that are involved in the marketing process. 4 P’s of marketing represent
product, price, place and promotion.
Product:
The very brand name “Domino’s” adds value to the products available in the store.
The quality and the hygiene of the pizzas and the other add-ons are taken care of
by the company or the franchisees by way of training to the employees. Domino’s
also takes pride on the innovation of many new products and ideas. Some of these
are as follows
Double Decadence:
Domino’s launched the first Double Decker pizza in the UK. Domino’s
Double Decadence is created when two thin and crispy dough bases are
sandwiched together with a layer of creamy cheese and herb sauce. The pizza is
then topped with vine ripened tomato sauce, mozzarella cheese and the customers;
choice of toppings.
Virtual Store:
To make take home pizza ordering more convenient for the customers,
Domino’s has designed an online service which features the customers’ favorites
and also the customers can order for pizzas by text message via mobile phones and
38
orders can be placed online.
When the order online option is selected, the customer is taken to the order
form. And the customers has to enter the postcode of the delivery address and then
other delivery details like the phone number and e-mail address has to be entered.
Then the customer is taken to another page – the best part of the process – pizza.
The customer can select the pizza and the size of it and also the customer has the
option to create his/her own pizza and then pay for the food either online using a
debit or a credit card or to opt for paying the amount to the person who delivers
the pizza.
Price:
Domino’s follows a pricing policy that is determined based on the economy of the
country. The pricing policy of Domino’s gives a competitive advantage to the
39
company over its competitors. The price discounts available to the customers are
used as a tool to attract customers into the store. Domino’s also follows seasonal
pricing in order to attract customers and to keep an edge over its competitors. The
company also has special discounts on bulk purchases.
Domino’s Pizza stores are established in almost 50 countries and they have got
more than 8,000 stores worldwide. The Domino’s stores are centrally located and
in a manner convenient for the people to walk in and also convenient for the
deliverers to do their job. The distribution channel followed by the company is
mostly through takeaways, telephone ordering, SMS and online ordering. The
pizzas are delivered by way of scooters at their door step. In order to maintain the
quality of the pizzas, they are carried in a heat wave bag so that they can deliver
hot and tasty pizzas to their customers
Promotion:
Pizza order discount: Domino’s offers its customers a number of discount and
other promotions on purchasing Domino’s pizza.
40
A customer walked out of a Florida Domino’s store with a $10,000 cheque for
having bought the Gotham City Pizza and the promotion was called The Dark
Knight Deal.
The Dark Knight Deal also allows the customers to win Xbox 360 and other
gaming consoles.
Domino’s pizza has introduced a new value meal called the 444 deal. This 444
value deal contains three ten-inch pizzas with one topping for $4 each with a
minimum number of three orders.
Dominos also allows its customers to play games by the time their food arrives.
There are actually two games – asteroids and slide puzzle to play.
41
11. SWOT Analysis
Strength
42
• Leading pizza delivery company in the US with more than 5,000 stores in the US
• Global franchise operations - more than 3,500 in over 50 countries
• Strong brand equity supported by heavy advertising & marketing campaigns
• Supply chain & distribution network
Weaknesses
Threats
Idea screening:
43
44
12. COMPETITORS
Competitor s
McDonalds
Wendy's
Papa John's
International and California Pizza Kitchen
45
Pizza Hut
• Varity of Pizza’s
• Good ambience
• Services offered
• Quality of pizza’s
46
• Location of the Outlet
• Waiting time in the outlet
• Door step services
• Low pricing
47
This has helped the speciality food franchise to enhance the strength of its
customer base. Yet another strategy employed by the fast food franchise to
spread their market is to portray their advertisements in an old-fashioned
background. This quasi-environment is sure to make a positive impact on the
semi-urban crowd who are not much familiar with the brand.
The specialty food franchise has set apart Rs 50 crore for its promotional activities
in 2007-08. The fast food franchise is willing to work harder in order to improve
its growth rate in Indian market. The speciality food franchise expects to increase
its pizza delivery at a rate of 45 per cent by the end of the coming financial year.
awareness
48
• Domino’s are the #1 pizza delivery company
49
13.
RESEARCH
METHODOLOGY
50
for the researcher to know, not only the research method techniques but also the
methodology. A researcher not only needs to know how to develop certain
indices or tests, how to calculate the mean, the mode, the median, or the
standard deviation, how to apply particular research techniques but also needs to
understand the assumption underlining various techniques and procedures will be
applicable to certain problems and other will not. All this means that it is
necessary for the researcher to design the methodology for the problem and the
same may differ from problem to problem.
METHOLOGY:-
51
SECONDARY DATA
Internet
Newspaper
Magazine
52
QUESTIONNAIRE
SURVEY QUESTIONS
53
d. Garlic bread-20%
Sales
20%
Pizza
Mexican wrap
choco lava
Garlic bread
13%
55%
12%
54
Product line
20%
Yes
no
45% Avearage
35%
55
Problems
5%
long que's
Rude behaviour
30% Conjection
others
55%
10%
56
10%
15%
20%
delivery time
Product variety
Price
Offer n discount
55%
57
Sales
29%
pizza
services
value of money
fun
57%
5%
10%
58
Column1
9%
23%
Extremely Satisfied
Satisfied
Dissatisfied
68%
59
SERVICES
15%
35%
STRONGLY AGREE
AGREE
DISAGREE
50%
60
Ambience
Bad Good
30% 30%
Average
40%
61
Outlets
No
25%
Yes
75%
62
Price
No
20%
Yes
80%
63
14. CONCLUSION
CONCLUSION
Dominos, the long-time leader in the fast-food wars faced a across roads in the
International and California Pizza Kitchen and McDonald’s- the firm encountered
64
new challenges. Sonic and Rally’s competed using a back-to-basics approach of
quickly serving up pizzas, for time-passed consumers. On the higher end, Papa-
John’s and Wendy’s had become potent competitors in the quick service field,
taking dollars away from Dominos, which was firmly entrenched in the fast food
arena and hadn’t done anything with its dinner menus to accommodate families
While these competitive wars were being fought, Dominos was gathering
flak from environmentalist who declared all the litter and solid waste its
65
Dominos faces some difficult challenges. Key to its future success will be
66
while carefully experimenting with new options. These innovative initiatives could
include launching higher- end restaurants under new brands that wouldn’t be
saddled with Dominos fast-food image. The company could also look into
expanding more aggressively abroad where the prospects for significant growth
are greater. The company’s environment efforts, while important should not over
show its marketing initiatives, which are what the company is all about.
67
15. BIBLOGRAPHY
BIBLOGRAPHY
68
INTERNET
www.marketing.com
www.answere.com
www.wikipedia.com
www.dominos.com
Books on Marketing
Marketing strategy by A.Nag
Marketing Management by Rajan Saxena
Marketing Management by Kotler
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ANNEXURE
70
d. Garlic bread-20%
71
6. Rate Dominos for its “30 minutes nahi to free” campaign.
a. Extremely Satisfied
b. Satisfied
c. Dissatisfied.
72
b. No
73