Section A - Group 2 - Report

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SERVICE DELIVERY

INTRICACIES AT
DOMINO’S PIZZA

SECTION – A | GROUP – 2
M189-19Dipika Basumatary
M154-19Narayan Hembram
M194-19Priyadarshini Saiba
M156-19Rajkumar
M092-19Thanshali Narzary
M207-19Kshitij Rahi
M068-19Rohit Jha
TABLE OF CONTENTS
1. Introduction…………………………………………………………………………………………………………………02
1.1 Domino’s Pizza……………………………………………………………………………………………….02
1.2 Vision……………………………………………………………………………………………………….…….02
1.3 Mission………………………………………………………………………………………………….……….02
1.4 Strategy……………………………………………………………………………………………….…………02
2. Gap Analysis…………………………………………………………………………………………………………..……03
2.1 Provider Gap 1: The Listening Gap………………………………………………………..……….03
2.2 Provider Gap 2: The Service Design and Standards Gap………………………………….04
2.3 Provider Gap 3: The Service Performance Gap……………………………………………….05
2.4 Provider Gap 4: The Communication Gap……………………………………………………….06
2.5 The Customer Gap………………………………………………………………………………………….06
3. Service Design and Standards………………………………………………………………………………………07
3.1 Introduction……………………………………………..……………………………………………………07
3.2 Service Processes…………………………………………..………………………………………………07
3.3 Online services…………..……………………………………………………….…………………………07
3.4 Offline Services…………..…………………………………………………………………………………08
3.5 Service Positioning…………..………………………………………………………………………… 09
3.6 Customer Service Standards……..…………………………………………………………………..10
3.7 Physical Evidence and Servicescape……..…………………………………..…………………..11
3.8 Domino’s Service Blueprint For Home Delivery……………………………………..……...11
4. Recruitment………………………………………………………………………………………….…………………….12
4.1 Recruitment and Selection……………………………………………………..……………………..12
4.2 E-recruitment……………………………………………………………………….….……………………12
4.3Compensation………………………………………….………………………….….…………………….13
5 Marketing Mix………………………………………………………………………………….………………………….14
6. Primary Research Data and Analysis ……………………………………………………………………..15-19

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1. STRATEGY

Value Proposition:
30 minutes delivery guarantee is one of the strongest value propositions. It expresses fast
delivery along with delicious dominos food.

Segmentation and Targeting:


It is based on demographic and geographic factors. The geographic segmentation results in
localised menu for different countries. Dominos has adapted its menu to the Indian cuisine.
It is also based on demographic segmentation based upon occupation, income, etc.

Competitive Advantage:
 Supply Chain – The supply chain of the company is fully integrated which allows the
company to retain full control and its operations while also allowing it full control
over the costs.
 Delivery – Its full control over delivery services allows it to maintain a strict policy of
30 minutes or less home delivery scheme. This scheme gives its customers a huge
benefit of delivery certainty while also giving the company a strong competitive
advantage over other players.
 Standardization – Maintaining delivery standards is a huge challenge is services
industry. Dominos has been able to deliver reliable and standard services to its
customers over all its locations. Due to its standardization, it has been able to enjoy a
competitive advantage over majority of other players.
 Technology – Websites and mobile applications are available to customers for online
ordering. The online portals also allow customers to customize their food order
while also ordering from the additional/sides menu. Over 80% of the dominos sales
come from the online channel.
 Localising Taste – Dominos has successfully adapted its menu to the local cuisine of
its host country. For example, in India, it has come up with offering options like
Peppy Paneer, Kebab Pizzas, Cheese Burst Pizza. It has also created additional value
offerings such as choco lava cake and garlic breads.

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2.GAP ANALYSIS
Here is an understanding of the Gap Model which exists in Services Marketing:
 Gap 1: The Marketing Gap
 Gap 2: Service Operation Management Gap
 Gap 3: HR Gap
 Gap 4: Communication Gap

Customer Gap= F (Gap 1, Gap 2, Gap 3, Gap 4)

PROVIDER GAP 1: THE LISTENING GAP

The management of the company should be aware of the expectations of the customers without
which it would be very difficult to design their services and offerings. A primary cause in many firms
for not meeting customer expectations is that the firms lack an accurate understanding of exactly
what the customer expectations are.
Dominos is completely aware of the customer segment that is targets and their requirements. The
customer segment of the firm ranges between the age group of 14-35. These people include
students and working professionals. Dominos is well aware that the requirements of all these
customers are not the same and hence provides a range of options to choose from.
It has even introduced All New Domino’s everyday values pizza at affordable rates considering the
price conscious customers of India. It offers various types of products like
Pizzas- Veg & Non-Veg with various toppings and fillings
Beverages- Coke, Pepsi
Closing the listening gap requires that management or empowered employees acquire accurate
information about customer’s expectations. Customer expectations must be assessed accurately
before new services are developed and they must be tracked after the services are introduced.
Dominos does well by taking oral feedback from the customers while they are finishing what they
have been offered. They ask them whether they liked their offerings or want to change something.
Customers are also required to submit online feedback directly to the company without any fuss.
They have chat-bot option on the website where the customer can express his/her likes or dislikes.
Dominos India uses target ad marketing on Facebook and Instagram where the ads are only
displayed to the target audience which eventually drives traffic to their website.
There are various promotional activities taken up whose image are attached below:

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Figure: Promotional Activities by Domino’s

PROVIDER GAP 2: THE SERVICE DESIGN & STANDARDS GAP

Closing Gap 1 through research and effective management of customer relationships is necessary,
but not sufficient for achieving service excellence. Even when a company has a thorough and
ongoing understanding of its customers’ expectations, it is still possible, in fact, quite easy, to fail to
deliver quality service. Focusing on Gap 2, the design and standards gap is the next step towards
ensuring against such failure.
The ability of Dominos to identify different target segments with different needs and provide them
with optimal value propositions, thereby building a strong brand is an ability that every retailer
would consider primary. Hence Domino’s business model is an inspirational business model for the
Indian Retail business.
The service-scape of Dominos is almost the same at all outlets with a comfortable seating
arrangement and quiet ambience. The visuals and designing of outlets attract customers as it gives
the aura of calmness and comfort.
Over a period of time the organization has made efforts to develop benchmarks for each of the
processes, strictly adhering to them and optimizing operations.

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Figure: A Domino’s Store in India

PROVIDER GAP 3: THE SERVICE PERFORMANCE GAP

Although a company may have closed both the listening gap and the service design and standards
gap, it may still fall short of providing service that meets customers’ expectations if it is unable to
deliver service in a way the service was designed. Gap 3, the service performance gap, must also be
closed to make sure there is no discrepancy between customer-driver service design and standards
and actual delivery system.
Dominos makes sure that the services it provides, get delivered with excellence for that it recruits its
employees from various organizations.
In order to make sure that the outlets in all areas are performing well, the company sets monthly
targets for each and every outlet. The managers work hard every day to attain these targets by
breaking up into daily goals.
The customers are well informed about the offers available from the leaflets and posters outside the
café. The menu card also mentions the items and offers well without any gap. The counters provide
all the information that the customer may want.

PROVIDER GAP 4: THE COMMUNICATION GAP

Even when a firm has done everything suggested by the other three gaps to ensure service quality,
there can still be a failure to meet customer expectations if communications about the service do
not match what is delivered. Thus, the final provider gap that must be closed is the communication
gap. This gap focuses on the differences between service delivery and what is communicated
externally to customers through advertising, pricing, and other forms of communications. Various
factors that could lead to the communication gap:
 Overpromising
 Inadequate horizontal communication
 Ineffective management of customer expectations
 Inappropriate pricing

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 Lack of Integrated services marketing communications

Dominos provides excellent ambience and snacks and beverages in addition to that. People
come in to have their conversations and spend quality time with their loved ones. The loyal
customers of Dominos belong to the upper and middle class of the society and offers are
directed towards them. The communications and offers are informed to the customers through
social media and even through sms to their customers through their databases.
The 30 minutes guaranteed delivery has been a benchmark for all such retail fast food counters
in India.

Figure: Communication of Offers by Dominos

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THE CUSTOMER GAP

The customer gap is the difference between customer expectations and customer perceptions.
Customer expectations is what the customer expects according to available resources and is
influenced by cultural background, family lifestyle, personality, demographics, advertising,
experience with similar products and information available online. Customer perception is totally
subjective and is based on the customer’s interaction with the product or service. Perception is
derived from the customer’s satisfaction with the specific product or service and the quality-of-
service delivery. The customer gap is the most important gap and in an ideal world, the customer’s
expectations would be almost identical to the customer’s perception. Dominos’ has a customer
orientated strategy, where it delivers quality service for a specific product which is based on a clear
understanding of the target market. It understands the customer needs and knows customer
expectations and that’s how it closes the gap.

DOMINO’S SERVICE DESIGN & STANDARDS

INTRODUCTION:

Service design plays a vital role to deliver an excellent customer experience. Service design
can be defined as the practices of designing services, processes and systems. In the service
design process, one needs to dive deep into the nitty-gritty of the customers’ world and
understand how your business really operates so that you can simplify the processes for
your customer and improve the way the company delivers its service to its customers so
that it can effectively meet the customer expectations.
Most of the firms do not pay much attention to service design aspects, and that is when the
service design gap generally occurs. The gap mainly occurs due to the following reason-

- Bad service design


- Non-availability of customer service standards
- Absence of appropriate physical evidence and servicescape

Domino’s follows an elegant service design and customer service standards which allow it to
introduce more customized and customer-centric services to its customers.

SERVICE PROCESSES AT DOMINO’S:

Domino’s follows an elegant service design, and it offers services through physical stores as
well as online channels. While delivering the services, their primary focus is on increased
customization and also maintain customer service standards.

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ONLINE SERVICES AT DOMINO’S:

Domino’s services can be availed through online mediums. It has its own websites and
mobile app, and the services can also be requested by dialling telephone numbers. The
webpage and mobile app have been designed in such a manner that a customer can find
nearby stores, customize his order as per the crust type, toppings or add-ons etc. without
any hassle. All the online orders are delivered at the mentioned address, and orders can be
tracked at each stage of the process through the mobile app. The homepage also displays
various discounts offers, combo-plans, menu options and contact number for customer
support which makes the whole service process easy and comfortable. During COVID time,
they are emphasizing a lot on the hygiene aspects to address customers’ safety concerns.

OFFLINE SERVICES AT DOMINO’S:

Domino’s provided its services through physical stores also. These locations for these stores
are strategically chosen. They are chosen in such a way that the store can get more visibility
and footfalls and hence more customers. These stores are generally located in places like
high street malls, entertainment centres, kiosks in offices, university canteens etc. which
witnesses high footfalls all-round the year. Their main service focus is on delivering different
types of pizza and other authorised products and enhancing the overall service experience.
These services can be availed at the store or can have a carry-out service.

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Domino’s store types can be categorized in the following ways-

Traditional Stores: Stores primarily located in shopping centres, retail locations


Non-traditional Stores: Office buildings, Stadiums, Airports, toll roads, family entertainment
centres
Transitional Stores: primarily located in select markets. Offers only carry-out services

In the same way, Domino’s menu offerings can be categorized as follows-


Veg Pizza; Non-Veg Pizza; Sides & Beverages; Different Toppings and Crusts

DOMINO’S SERVICE POSITIONING:

Domino’s positions its services as the best pizza delivery services in the world and keeping
customer satisfaction as its prime focus. Through its service positioning, it emphasizes
delivering fresh and high-quality pizza at an affordable rate and good customer services.
From a customers’ perspective, Domino’s store can be a fun place to enjoy a variety of
pizzas with their friends and family at any time of the day as per their convenience. It also
facilitates good ambience for parties and birthday celebrations.
In all its advertisements and promotions, Domino’s strongly emphasize customer service
quality and value addition. Some of the promotional activities like Happy Hours, Combo
offers, Gift cards, Coupons, “30 minutes or Free”, localizing flavours etc. reflects upon the
strategy to achieve customer satisfaction. Domino’s innovative ideas and its commitment to
provide quality service have helped it maintain its top position in the industry.   

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CUSTOMER SERVICE STANDARDS AT DOMINO’S:

Domino’s services standards are clearly defined and same across all the Domino’s stores.
Although they have introduced some form of localization in terms of food items, service
delivery process is entirely similar across different stores. They have a similar store layout
and employee dress code across all stores, and order placement and delivery are also
standardized.

DOMINO’S PHYSICAL EVIDENCE AND SERVICESCAPE :

To close Gap 2, an effective design of physical evidence and Servicescape is crucial. For
Domino’s, this physical evidence includes well-designed interiors, great ambience and
festive décor. It uses its famous logo extensively on food packages, delivery-bike containers
and employees’ dress code etc. The physical store, websites and bike parking spots also
serve as a piece of physical evidence and Servicescape. The interior furnishings, clean and
tidy outlet, employees’ hygiene and in-store WIFI act as facilitators to portray a special
image and make the service a pleasurable experience from customers’ point of view.   

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DOMINO’S SERVICE BLUEPRINT FOR HOME DELIVERY:

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RECRUITMENT STRATEGIES

At Domino's Pizza, recruiting and retaining the fittest people is quintessential, and it is the
responsibility of Human Resources to make sure that it stays genuine to this promise. This
department helps the company entice and hold onto the industry's most qualified professionals,
which is an integral part of sustaining its leadership position.

A. THE RECRUITMENT AND SELECTION PROCESS

Domino's Pizza's recruitment process consists of multiple stages and relies on the job opening's
success rate. If the applicant meets the required skill and experience, the Human Resource
Department will contact them to further explain the role. If found suitable, an interview is arranged,
and further interviews may happen before an offer is given.
Due to high number of applications, sometimes the company cannot arrange interviews for all the
applicants. If the candidates are not contacted in 28 days of submitting their application, it means
that the application is unsuccessful for that opening and has been filled.

B. E-RECRUITMENT

The goal of Domino's Pizza is to become the best pizza delivery firm in the world. With its regular
social recruitment strategy unimpaired, the brand is firm on its way to accomplishing that goal by
hiring the most qualified professionals in the food service business. Domino's Pizza utilizes three
social media platforms to recruit staff by surfing the career website, Twitter, and LinkedIn. To lure
potential employees through social, then a candidate needs a social network page and application
means. Domino's Pizza started http://corporate.dominos.co.uk/working-for-us. They were expressly
looking to enhance the candidate experience, decrease clicks, and offer new candidate-friendly
features. With social platforms so intimately connected with mobile, it was imperative to optimize
the website, warranting that all features and functions run for everyone even though they are using
to gain access. One of the significant characteristics of the career website was building a talent
network. The website allows any visitors the option to sign up for related updates.
When you land on the career site your greeted by 3 pictures of people, headed Head Office, Supply
Chain, and Store Operation, each with view opportunities button. At the top of the page there is a
simple search function to search open positions by keyword and location. The top tabs offer a drop
down menu of featured jobs, and quick search will have location, department, working hour and etc.
after that it filter and show up at search result.
Domino's Pizza also uses Twitter to hire people to work for them. The @DominosCareers Twitter
account expertly squeezes as much appealing information into 140 characters as possible and is
pretty successful at it. The @DominosCareers account also regularly uses the hashtag
#coolplacestowork, reaching job seekers who want to grow in their careers and also have fun while
at work. Using Twitter has benefited Domino's to establish an employer brand image.

C. COMPENSATION STRATEGY

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Domino's Pizza group insurance program covers life, disability, and health insurance benefit plans
which covers all the full-time employees. All Domino's associates enjoy flexible work schedules, meal
discounts, paid training and advancement opportunities. Drivers may receive Compensation for gas
and mileage. Its Total Cash Compensation information comprises of yearly Base Pay and Bonuses
and other compensation based on performance pay. They also provide life insurance or disability,
paid holiday, vacation for their worker, and retirement benefits.
The retirement program has two savings plans:
i. a tax-qualified savings plan
ii. a non-qualified deferred compensation plan

Domino’s Safety Program covers a national safety program intended to boost safe work practices
and includes the following:
i. Driver Training
ii. Safety training equipment
iii. Safety training videos, posters and brochures
iv. Employment Screening Practices
v. On-site workplace safety evaluations
vi. Setup of Safety incentive programs
vii. Recommendations regarding personal protective equipment
viii. Open access to Field Safety Specialists who are actively involved with all aspects of
workplace safety and accident/injury prevention.

5. THE MARKETING MIX


The 7P’s of a service company’s marketing mix, namely the Product, Place, Promotion, Place, People,
Process and Physical Evidence are discussed below:

 PRODUCT: Different types of pizzas which are customized according to the local market. The
variation includes in different pizza sizes (regular, medium and large) and different bases
(Cheese Burst, Fresh Pan, Classic Hand Tossed etc.). A variety of dips, toppings and sauces
are also available. Fresh styles of pizza are regularly introduced such as Pasta Pizzas. Along
with that, various side items are also available such as Pastas, Tacos, Burgers, Breadsticks,
Parcels, Cheese Shots, French Fries, etc.

 PRICE: Competitive pricing strategy is adopted for its products and services, as it faces a stiff
competition in the Pizza market as well as in the Quick Service Restaurant (QSR) market. The
non-vegetarian food items are generally at higher prices than the vegetarian items. All the
prices of its products are kept such that one segment of prices do not overlaps with another.

 PLACE: It operates in a franchise-based model. There are around 13000 Dominos outlets
globally. In India it has more than 1200+ stores, making it as a hotspot for the franchise
company. It is present in 276 cities in India. Dominos promotes its pizza as something that
could be had “even while travelling on a train.”; as one can place a pizza order and get it
delivered at the berth at the next halting station. It maintains its own dough manufacturing
centres, equipment supplies centres, pressed plant centre and vegetable processing centres.

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 PROMOTION: Websites, Mobile apps, Personalised SMS, TV commercials are sued as
advertising channels. Celebrity endorsement such as Arshad Warsi has been signed as the
brand ambassador. Newspapers are also often used for promoting new innovative kinds of
pizzas and sides being added to their menu. Discount promotions are added such as lunch
hour discounts, usually up to 10% or 30% discounts. During IPL, special discounts and
coupons are provided, promoting as the ideal meal during match days. Price bundling is also
done for pizzas along with different side dishes, desserts and beverages.

 PEOPLE: Classroom training and other developmental tools such as certifications and
external development programs are provided to the employees. Reward systems are
provided based on performance. A stringent feedback mechanism is adopted to help in
evaluating the employee performance and therefore, helps employees to take accountability
for their actions and behaviour in the workplace. All employees, including the higher
management wears their Dominos uniform, thus bringing in a sense of equality and
belongingness to the values of its organization.

 PROCESS: Follows two modes of order placement. First is ordering offline at the store and
second being ordering online through its authorised mobile App or through its website.
Dominos guarantees a thirty minutes delivery. This enables the restaurant chains to
prioritize the delivery items, as the food needs to be prepared and delivered through the
delivery boys within the promised time. However, some locations show invalid for the 30-
minute delivery scheme. This happens mostly in small towns. In the restaurant, the orders
are provided with token numbers, so that the customers can estimate the time for their
order to be prepared. The cleaning staff regularly takes maintenance for the hygiene of the
restaurant. The customers can give feedback directly to the attendees.

 PHYSICAL EVIDENCE: The outlets are given a warm ambiance that is family friendly. The
kitchen is placed next to the payment counter with transparent glasses. This way, the pizza
making process is kept transparent to their customers. Few outlets even put small stair case
in front of the counter for kids to have a look at the pizza making process. This way, dominos
tries to gain the trust and interests of their customers. The customers receive their pizzas in
a specialized packaging that contains the Dominos logo and its promotions. The size of the
packaging differs according to the pizza size ordered. The payments can be made through
cash or cards.

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6. PRIMARY RESEARCH DATA

FIG- Awareness About Dominos


From the responses we can see that all the respondents are aware of the brand dominos

Fig- Important factors for a food outlet


From the frequency table we can see that respondents have scored dominos the highest in all the six factors.

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Fig- Preference By customers

From the pie chart we can see that 61 percent of the population like to take home their dominos food instead
of dining in the restaurant because of the ambience of the place or it might not be comfortable to sit in the
outlet and eat.

Fig- Various ad Channel for Dominos

From the bar graph we can see that Social media ads are more successful for the company as 74 percent of the
population have seen the ads in social media.

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Fig- What people like about Domino's people

The graph shows why dominos sees a high frequency of repeat visits from customers as 80 percent of people
like the large number of pizzas provided by the company's outlet .

Fig - Brand Recall


In the pie chart we see that whenever a person thinks about a pizza 56 percent of the people can recall about
dominos from this we can infer that dominos has a good brand recall .

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Fig- Recommendations to others

From the chart we can see that 74 percent of the people will recommend dominos to other

Note* The test population is too small to infer details about all demographics of India

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