Mpr Project.docx

MINOR PROJECT REPORT ON

MARKETING MIX DOMINOS PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION By: RUCHIKA BHATT Enrollment No. 05390201716 Under the guidance of MS. JASPREET KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT &INFORMATION TECHNOLOGY (Affiliated to GGSIP University Delhi) (2016-2019)

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DECLARATION I hereby declare that the project work entitled Minor Project Report On Marketing Mix Of Dominos

submitted to the Guru Gobind Singh

Indraprastha University is record of an original work done by me under the guidance of Ms. Jaspreet Kaur, faculty member, Sri Guru Tegh Bahadur Institute of Management & Information Technology.

...........................................

Signature of the scholar Place: Delhi

RUCHIKA BHATT

Date:________

Enrollment no. 05390201716

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CERTIFICATE This is to certify that RUCHIKA BHATT student of Sri Guru Tegh Bahadur Institute of Management & Information Technologyof course BBA Batch (2016-2019), has completed her research work titled “Minor Project Report On Marketing Mix Of Dominos” under my guidance and supervision. The work submitted is genuine and authentic.

….……………………………….....

Signature of Project In charge MS. INDERPREET KAUR …...…………………………………

Signature of Guide MS. JASPREET KAUR ......………………………………

Place: Delhi

Signature of Scholar

Date: _______

RUCHIKA BHATT

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ACKNOWLEDGEMENT With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor MS. JASPREET KAUR for her valuable guidance and the confidence she instilled in me, that helped me in the successful completion of this project report. Without her help, this project would have been a distant affair, her thorough understanding of the subject and professional guidance was indeed of immense help to me. I am also greatly thankful to the faculty members of our institute who co-operated with me and gave me their valuable time. Acknowledgement

……………………………..

Signature of the scholar Place: Delhi

RUCHIKA BHATT

Date:

Enrollment no. 05390201716

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INDEX S.NO.

CONTENT

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INDUSTRY PROFILE 1.1 History 1.2 Quick facts and statistics 1.3 F&B industry in india 1.4 Food processing 1.5 Other sectors in the F&B industry 1.6 Investments 1.7 Governments initiative 1.8 Global trends in F&B COMPANY PROFILE 2.1 History 2.2 India 2.3 Online presence 2.4 china 2.5 Sale 2.6 Innovations 2.7 beverages 2.8 Corporate governance 2.9 Charitable activities 2.10 30-minute guarantee RESEARCH METHODOLOGY 3.1 Objectives 3.2 Collection method 3.3 Secondary data 3.4 limitations MARKETING STRATEGY OF DOMINOS 4.1Marketing mix of dominos 4.2 Segmentation, targeting & positioning 4.3 SWOT Analysis 4.4 Competitors 4.5 Product life cycle

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PAGE NO.

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3 3-4 4-5 5-6 6-7 7-9 9 9-10 10-11 12 13-15 15 15 16 16-17 17-22 22 22 23-24 24-27 28 28 28 28-29 29 30 30-38 38-44 44-49 49-53 53-55

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FINDINGS

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CONCLUSION

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RECOMMENDATIONS

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REFERENCES

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CHAPTER -1 INDUSTRY PROFILE

The global food and beverages industry is made up of many segments, including groceries, oils and fats, food additives, functional foods and beverages, packaged foods, health and natural foods, canned food, baked food, baby food, animal food, soft drinks, alcoholic drinks, energy drinks, and packaging. The industry is driven by consumer demand for more nutritious food and better packaging, which also spurs technology advances in the field. Today, pasteurisation, high-pressure processing, UV treatment, and nanotechnology are influencing the industry. A concern for the environment has led to the use of more recycled material for packaging. The growth of the food and beverages industry is propelled mainly by developing countries such as India, China, and Brazil, as the economies of these nations improve and more people are lifted into the middle class. The global food, beverage, and grocery industry was estimated to be worth $7.8 trillion in 2015, or about 10 percent of the world GDP, according to Plunkett Research. The global packaged-food industry was worth $2.5 trillion. In 2013, global food exports added up to $1.43 trillion.

1.1 HISTORY The history of food and beverage is, of course, as old as humans themselves. However, there were no major developments until the 19th century, when Nicholas 3

Appert invented canning and Louis Pasteur developed pasteurisation. These processes made food a product that could be preserved and packaged for later use. World War II prepared a fertile ground for innovations in the food industry. As food was rationed and prices were regulated, better preservatives and flavouring agents were developed. This paved the way for instant foods. Improvements in distribution are a major part of the development of the food industry. Before the Industrial Revolution, people consumed food and drinks mainly from local markets. Today, thanks to transportation and cold storage facilities, food can be taken to stores anywhere.

1.2 QUICK FACTS AND STATISTICS By market size, the top ten countries for the overall food and beverages (grocery) industry are the US (about $1.7 trillion, according to approximations from various sources), China ($700 billion), Japan ($600 billion), India ($400 billion), Russia ($350 billion), Brazil ($250 billion), Germany ($225 billion), France ($200 billion), UK ($180 billion), and Indonesia ($175 billion). The biggest exporters were Germany ($58 billion), US ($56 billion), and France ($48 billion), and the biggest importers the US ($82 billion), Germany ($53 billion), and Japan ($45 billion), as per online sources. The top ten global F&B companies (December 2013 or March 2014 figures) were Nestlé ($77 billion in food sales), PepsiCo ($66 billion), Coca Cola ($46 billion), JBS ($44 billion), Archer Daniels Midland Company and Anheuser Busch InBev (both $43 billion), Mondelez ($35 billion), Sab Miller and Tyson Foods (both $34 billion), and Cargill ($33 billion). The other biggies were Mars (11th rank, $33 4

billion), Unilever (12th rank, $31 billion)), Kraft (19th rank, $18 billion), and ConAgra Foods (24th rank, $15 billion). Among the top companies in India are Amul, Godrej, Dabur, PepsiCo, Coca Cola, Nestlé, Britannia, ITC, Parle, Cadbury India, Hindustan Lever, and MTR Foods.

1.3 F&B INDUSTRY IN INDIA India is expected to become the fifth largest consumer market in the world by 2025, according to a paper prepared by the Confederation of Indian Industry (CII) and Grant Thornton. Food and beverages is the biggest of the consumption categories. The F&B sector is supported by the vast agriculture sector: India is the biggest producer of pulses, and the second biggest producer of rice, wheat, sugarcane, and fruits and vegetables. It is also the biggest producer of milk and buffalo meat and ranks fifth in poultry production. The other helpful factors: large extents of arable lands, favourable climate, long coastline, and low wages. The liberalisation of the economy in the early 1990s minimised business barriers. The sector has found more avenues to the market with the development of modern retail systems such as supermarkets. Meanwhile, transportation and storage logistics have improved. The huge population (1.27 billion in 2015) and the burgeoning middle class are the other advantages for the industry. About half the population is under 30 years of age, and many of them start to earn early and strive to lead a better quality of life. 5

The higher income levels of consumers give them higher disposal incomes. Lifestyles have changed, and more families are eating out and trying out different cuisines. Working couples are increasingly purchasing convenience foods. Consumers have become more discerning and those in urban areas particularly trust branded foods for their promise of quality. A section of consumers have become extremely health conscious. This segment is moving towards protein-rich foods and fruits and vegetables from carbohydraterich or fat-laden items. Quality-conscious customers have taken the bottled water market to $50 million. The beverage industry, excluding alcoholic beverages, is worth about $16 billion. Tea and coffee are the most popular beverages, followed by soft drinks (carbonated drinks and juices), health drinks, milk-based drinks, flavoured drinks, and energy drinks. Half of the tea and coffee consumed in the country is sold unpacked. The alcohol beverages market is estimated to be worth about $35 billion, with whiskey, beer, and wine as the most popular drinks.The F&B industry would do well to adopt global standards of quality and safety to earn more consumer trust. The need of the hour is the introduction of Total Quality Management principles .

1.4 FOOD PROCESSING Of the nearly $400 billion overall Indian food and beverages industry, the food processing sector accounts for about $130 billion. It makes up 10 percent of the agriculture GDP and 12 percent of the manufacturing GDP.

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The unorganised segment has a share of over 40 percent of the output. Food processing makes up 10 percent of the country’s total exports. The key export markets are the US, Vietnam, Iran, the UAE, and Saudi Arabia. Rice and wheat are the main items for exports. The food processing sector has various sectors including consumer foods (snacks, beverages, etc.), dairy, meat and poultry, fish, grains and cereals, and fruits and vegetables. Fruits and vegetables and meat and poultry take the lion’s share of about 40 percent of the total household consumption. Technology, mainly IT, has helped the industry evolve from just preserving and packaging food to manufacturing foodstuff according to consumer demand. However, it is yet to take full advantage of technology to reduce wastage. The other main problems are lack of credit; lack of clarity in government policies and in food safety laws; and shortage of employable manpower.

1.5 OTHER SECTORS IN THE F&B INDUSTRY Food retail Not only in cities, modern food retail has grown in small towns, too. However, nearly 70 percent of the business is in the unorganised sector. The Food Safety and Standards Act, 2006, has given the organised retailers a shot in the arm as they can conform to the regulations better. Increasing urbanisation is helping the sector grow. However, high real-estate prices are a worry along with the lack of cold storage and problems in supply chain management. 7

Online grocery supply Although grocery supply online is still in its early days, the convenience and price factors are making it more popular in urban areas. Online stores are able to offer attractive discounts and larger variety. Increase in the number of Internet users is expected to boost prospects. The main challenges are customers’ desire to actually see the products they are buying, especially perishables, and dependable computer systems. Food service According to the National Restaurant Association of India, food service will be worth nearly $68 billion by 2018. The number of fine dining, casual dining, and quick service restaurants is growing in cities. Younger professionals are their biggest customers. Home delivery and takeaways are also gaining popularity. The challenges are real-estate prices; lack of availability of personnel with knowledge of basic service etiquette; electricity and water supply; sourcing of raw foodstuff; and the number of licences needed. Dairy The Indian dairy sector was estimated to be worth $70 billion in mid-2015. The growth is mainly owing to the White Revolution. India will likely produce 180 million tonnes of milk worth $135 billion by 2020. Technology has come to the aid of the dairy sector, with ultra-high-temperature processing, aseptic packaging, and 8

membrane processing. The main challenges for the sector are rising prices of fodder and lower milk yield of Indian cows and buffaloes. Cold storage India has a cold storage capacity of 30 million tonnes in 6,000 units, 90 percent of them owned by private companies. The demand is expected to increase to over 45 million tonnes. Lack of skilled manpower to handle food according to the norms is a major challenge.

1.6 INVESTMENTS The Indian Brand Equity Foundation (IBEF) quotes figures from the Department of Industrial Policies and Promotion to say that the food processing sector received foreign investments of $6.4 billion from April 2000 to June 2015. The CII believes that the food sector has the potential to receive investments worth $33 billion before 2025. Among the recent major investments likely in the sector is Amul’s plan to invest $753 million to set up ten milk-processing plants and improve existing plants to scale up milk production to 32 million litres per day by 2020 and ITC’s decision to invest $120 million to set up a food processing unit in Telangana.

1.7 GOVERNMENT’S INITIATIVE The government has prepared a Vision Document 2015 to promote food processing industries. It has set up a $20 million international food park in Punjab and is planning 42 “mega food parks.”

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More degree courses in food processing and an entrepreneurship programme are to be started and training centres set up. The Union Budget for 2015-16 unveiled a corpus fund of ₹2,000 crore to provide cheaper credit. The excise duty on plant and machinery has been reduced to 6 percent from 10 percent. Most importantly, for consumers, the Food Safety and Standards Authority of India has issued regulations quality and safety standards for food products.

1.8 GLOBAL TRENDS IN F&B Taxes and regulations With consumer awareness growing, more governments are cracking down on unhealthy foods. Regulators in some countries have imposed taxes on some items in order to increase their prices and thereby bring down consumption. Consumers: Consumers are persuading the food industry to try to tempt them with nutrition rather than taste. No wonder then that the global health food market is estimated to touch $1 trillion in 2017 and the health drinks market $400 billion in 2016. Internet Customers are now more discerning and have ample data on the Internet to make good choices. This and the convenience factor are persuading more people to buy food online.

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Sustainability Companies are turning to recyclable packaging material and sustainable processes for the sake of the environment. They are trying to minimise the use of electricity and water and reduce wastage of food.

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CHAPTER-2 COMPANY PROFILE

Domino’s is the second largest pizza restaurant chain in the world, with more than 14,200 locations in over 85 markets. Founded in 1960, our roots are in convenient pizza delivery, while a significant amount of our sales also come from carryout customers. Although we are a highly-recognized global brand, we focus on serving the local neighborhoods in which we live and do business through our large network of franchise owners and Company-owned stores. On average, we sell more than 1.5 million pizzas each day throughout our global system.

Our business model is straightforward: we handcraft and serve quality food at a competitive price, with easy ordering access and efficient service which are aided by our technology innovations. Our dough is generally made fresh and distributed to

stores

around

the

world

by

us

and

our

franchisees.

Domino’s generates revenues and earnings by charging royalties to its franchisees. Royalties are ongoing percent-of-sales fees for use of the Domino’s brand marks. The Company also generates revenues and earnings by selling food, equipment and supplies to franchisees primarily in the U.S. and Canada, and by operating a number of our own stores. Franchisees profit by selling pizza and other complementary items to their local customers. In our international markets, we generally grant geographical rights to the Domino’s Pizza® brand to master franchisees. These master franchisees also profit by running pizza stores, and often by sub-franchising and selling ingredients and equipment to those sub-franchisees. 12

Everyone in the system can benefit, including the end consumer, who can feed their

family

Domino’s

menu

items

conveniently

and

economically.

Our business model can yield strong returns for our franchise owners and Company-owned stores. It can also yield significant cash flow to us, through a consistent franchise royalty payment and supply chain revenue stream and with moderate capital expenditures. We have historically returned cash to shareholders through dividend payments and share buybacks since becoming a publicly traded company.

2.1 HISTORY 1960s–1990s

In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza store at 301 West Cross Street in Ypsilanti, Michigan, near Eastern Michigan University. 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 postman to keep up with the demands of the new business. Within eight months, James traded his half of the business to Tom for the Volkswagen 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. 13

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 and by 1978, the company expanded to 200 stores. 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. International expansion

Dominos Pizza in Tuxtla Gutierrez, Chiapas, Mexico.

Domino's outlet in Himayatnagar, Hyderabad, Telangana, India. 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, its first in 14

Vancouver, Washington. In 1985, the chain opened their first store in the United Kingdom in Luton. Also, in 1985, Domino's opened their first store in Tokyo, Japan. In 1993, they became the second American franchise to open in the Dominican Republic and the first one to open in Haiti, under the direction of entrepreneur Luis de Jesus Rodriguez. By 1995, Domino's had expanded to 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day across five continents. By 2014, the company had grown to 6,000 international locations and was planning to expand to pizza's birthplace, Italy; this was achieved on October 5, 2015, in Milan with the first restaurant. CEO Patrick Doyle, in May 2014, said the company would concentrate on its delivery model there. In February 2016, Domino's opened its 1,000th store in India.

2.2 INDIA The first Domino's Pizza in India opened in New Delhi in 1996. India was Domino's third-largest market in 2013, behind the United States and United Kingdom. In December 2014, India became Domino's 2nd largest market. Domino's Pizza operates 1085 stores in 251 Indian cities as on 26 October 2016. It was headed by Ajay Kaul since 2005. Pratik Pota became the CEO from April 2017. 2.3 ONLINE PRESENCE Domino's began accepting online orders in 2011, and online orders accounted for approximately 18-20% of total sales as of December 2013.

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2.4 CHINA Domino's Pizza chose to use its traditional delivery-based business model in China, neither altering its flavors nor reducing the sizes of pizzas, and promising a 30minute delivery time. The delivery time promise failed due to Chinese automobile traffic patterns stymieing the delivery operations. The large pizza sizes prevented Chinese people from using knives and forks to eat them, and takeout services were unpopular with Chinese people due to cultural reasons. Savio S. Chan (Chinese: 陳少宏; pinyin: Chén Shàohóng) and Michael Zakkour, authors of China's Super Consumers: What 1 Billion Customers Want and How to Sell it to Them, wrote that Domino's "failed miserably" in its strategy, resulting in the company being "basically" irrelevant in China, with 40 restaurants as of 2014. By January 2014, the company introduced small restaurants in the China market. Jamie Fullerton of Vice stated that these restaurants served "solid, mildly overpriced pizzas" and did not have unique to China menu items.

2.5 SALE In 1998, after 38 years of ownership, Domino's founder Tom Monaghan announced his retirement, 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 Dave Brandon as its CEO. Present

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Domino's Pizza logo used from 1996 until September 2012 in major Englishspeaking countries, and still use in many others. 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". Industry trade publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003, 2010, and 2011. 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. 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. As of September 2006, Domino's has 8,200+ stores worldwide, which totaled $1.4 billion in gross income.

2.6 INNOVATIONS In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and also rolled out its online and mobile ordering sites. In 2008, Domino's introduced the Pizza Tracker, an online application that allows customers to view the status of their order in a real time progress bar. 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 has been Kevin Railsback.

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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-critical ad campaign in which consumers were filmed criticizing the then-current pizza's quality and chefs were shown developing a new pizza. The new pizza was unveiled that same month. The following year, 2010 and Domino's 50th anniversary, the company hired J. Patrick Doyle as its new CEO and experienced a 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. In 2015, Dominos unveiled a special "pizza car" that can carry 80 pizzas, sides, 2liter bottles of soda, and dipping sauces. It also has a 140-degree oven on board and is more fuel efficient than a standard delivery car. Officially named the DXP, the car is built on the Chevy Spark platform and each car will be retired once it hits 100,000 miles. In 2016, Domino's in New Zealand delivered the world's first pizza delivery by unmanned aerial vehicle using the DRU Drone by Flirety. In February 2017, Domino launched a wedding registry with gifts delivered in the form of Domino's eGift cards. Customers have the option of signing up for Domino's pizza package to be served for the event. In March 2017, Domino's announced a pilot project in Dutch and German cities using delivery robots to deliver food within a one-mile radius of stores in partnership with Starship Technologies.

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NAMING In August 2012, Domino's Pizza changed their name to simply Domino's to emphasize their variety of non-pizza products such as chicken wings, apple pies, lasagna, and pasta. 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. Products

A Creamy Bacon pizza from Dominos The Netherlands The Domino's menu varies by region. The current Domino's menu in the United States features a variety of Italian-American main 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. 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. 19

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. 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 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-meat fillets, similar to chicken fingers, are packaged in a customdesigned 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 York-style pizza. In 2008, Domino's once again branched out into non-pizza fare, offering ovenbaked 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. 20

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 the Lava Crunch Cake dessert, composed of a crunchy chocolate shell filled with warm fudge. 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. 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. Their advertising campaign admitted to earlier problems with the public perception of Domino's product due to taste issues. In September 2012, Domino's announced it was going to roll out a pan pizza on September 24, 2012. Following this move, the Deep Dish pizza was discontinued after 23 years of being on the menu. In December 2013, Domino's Pizza, in Israel, unveiled its first vegan pizza, which uses a soy-based cheese substitute. After a stock low point in late 2009, the company's stock had risen 700 percent in the five years preceding February 2016. 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. In 2014, Domino's Pizza in Nigeria introduced the new Jollof Rice Pizza and The Beef Stew Pizza.

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2.7 BEVERAGES

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 2007 and 2012, respectively. Pizza Hut, due to its previous ownership by PepsiCo, has a contract to sell Pepsi products in perpetuity. Domino's Pizza in Mexico switched to Pepsi in November 2012 and Domino's Pizza in Malaysia, Pakistan, Romania, Spain, New Zealand and Taiwan also serve. 2.8 CORPORATE GOVERNANCE Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly president of Domino's USA. Previous chief executive Dave Brandon remains chairman. Among 11 executive vice presidents are Jeffrey Lawrence, CFO; Stan Gage, 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 J. Patrick Doyle, Andy Ballard, Andrew Balson, Diana Cantor, Richard Federico, James Goldman, Bud Hamilton, and Gregory Trojan. 2.9 CHARITABLE ACTIVITIES

In 2001, Domino's launched a two-year national partnership with the Make-AWish 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 22

American Red Cross' disaster relief effort. 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 $5.2 million in 2014. Advertising

Arie Luyendyk's Lola-Chevrolet which won the 1990 Indianapolis 500 for Doug Shierson Racing. In the 1980s, Domino's 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 catchphrase associated with the commercials was "Avoid the Noid." The Noid was discontinued after Kenneth Lamar Noid, believing the mascot to be an imitation of him, held two Domino's employees hostage in Chamblee, Georgia. The employees escaped while Noid ate a pizza he had ordered. Noid was eventually diagnosed with paranoid schizophrenia and acquitted due to insanity, and later committed suicide. The Noid was briefly brought back for a week in 2011 in an arcade-style game on the

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Domino's Facebook page. The person with the top score received a coupon for a free pizza. 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, however, 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. 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 NASCAR." Domino's also sponsored Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR Sprint Cup Series. 2.10 30-MINUTE GUARANTEE

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid-1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when a Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80 million but accepted a payout of $15 million. The guarantee was dropped that same 24

year because of the "public perception of reckless driving and irresponsibility", according to then-CEO Tom Monaghan. 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. The company continues to offer the 30-minute guarantee for orders placed in its stores situated in Colombia, Vietnam, Mexico, China, and Turkey. In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza Voucher". In India, the guarantee is for ₹300 ($5) and is valid for an order of less than 4 pizzas. Franchises

Domino's Pizza World Map Domino's Pizza currently has locations in 75 countries. It has its stores in 5,701 cities worldwide (2,900 international and 2,800 in the US). Domino's had approximately 11,000 stores as of the first quarter of 2014, with 774 in the UK, 4,986 in the US, and 1010 in India. In most cases, Domino's has master franchise agreements with one company per country, but three companies have acquired multiple master franchise agreements, covering multiple countries: 25



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. Sweden opened its first Domino's near the Mobilia shopping mall in Malmo in December 2016.

The master franchises for India, Bangladesh, Nepal, and Sri Lanka, are currently owned by the Indian company Jubilant FoodWorks. India is the largest international market for Domino's outside its home market. The company operates 1004 stores across 230 Indian cities as of February 11, 2016. Apart from the United States, India is the only country that has over 1000 Domino's outlets. Indian pizza flavors such as paneer pizza, chicken tikka masala pizza, and kheema do pyaza pizza have been sold in other international markets. 

In February 2015, cockroaches and rodent droppings found in the kitchens of some Domino's Pizza joints in Peru have caused the company to shut temporarily operations in the country until August 28, 2016.

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CHAPTER-3 RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY PRIME OBJECTIVES  To study marketing in detail.  To know importance of marketing.  To understand the concept of marketing clearly by means of dominos.  To find out the marketing strategy used by the dominos.

OTHER OBJECTIVES  To find out how and when was dominos started.  To find out the major competitor of dominos.

3.2 COLLECTION METHOD Data collection is an elaborate process in which the researches makes a planned research for all relevant data. Data is the foundation of all market research. Data are facts may be obtained from several sources.

3.3 SECONDARY DATA Secondary data is the data borrowed from secondary sources by the researcher. Secondary data can be internal or external i.e., internal records of the company or information available from library and other statistical organization.

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COLLECTION OF SECONDARY DATA The researcher was assigned to do a comparative study on DMINOS. In order to accomplish the job, the researcher adopted the method of collecting secondary data through domino’s official site, magazines, newspaper, internet.

3.4 LIMITATIONS  Less time to do a complete study of dominos.  Less time to collect Primary data.  Focused on only one aspect of the company.

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CHAPTER-4 MARKETING STRATEGY OF DOMINOS

4.1 MARKETING MIX OF DOMINOS Domino’s Pizza is one of the most popular pizza chain and is a delivery company for different varieties of pizza. In today’s world, Domino’s has been equivalent to quality, freshness and good service. This fast food company has continued to grow by leaps and bounds. The company’s innovative ideas, the commitment to provide quality products and its dedication to the customer base have helped it to maintain its position at the top. Tom Monaghan and his brother James launched Domino’s in the year 1960. The next year Tom bought his brother’s share with a trade of Volkswagen Beetle. The company was then renamed Domino’s Pizza. Dominos opened its first outlet in India in the city of New Delhi. Later it opened other outlets in almost all the cities of India and at present, it has more than 500 outlets in India. The chief competitors of this coolest dug-out are Pizza Hut, KFC, McDonald and Subways

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PRODUCT IN THE MARKETING MIX OF DOMINOS PRODUCTS PIZZAS PASTAS BREADSTICKS CHEESE DIPS BEVERAGES CHOCO LAVA CAKE CHICKEN WINGS

Domino’s is widely known for its quality and fresh pizza. The boxes for the food products are specially designed to keep everything fresh and hot. The products offered are of both vegetarian and non-vegetarian variety. In order to seize the market Domino’s has worked on a unique concept of localizing the flavors. Domino’s pizza comes in three different sizes – small, medium and large. In the varieties, Country Special Pizza, Mexican Green Wave Pizza, Zesty Chicken pizza, Seventh Heaven Pizza, Chicken and Prawn Pizza, Grand Supreme Pizza, Chicken and Camembert Pizza are some of the popular pizzas. Besides pizzas, Domino’s also deals in some other food items. Calzone pockets, Garlic Bread Sticks, Stuffed Garlic Bread Sticks, Taco Indiana, Pasta Italiano 30

(white sauce), Chicken Wings, Choco Lava Cake, Spicy Baked Chicken and Butterscotch Mousse Cake are also available here. Beverages like Thumps-up, Fanta and Coke have been introduced in the menu. Dominos also gives a choice in the matter of crust like theFresh Pan Pizza and Cheese burst pizza. It has also started offering options including whole-wheat crust and any other company has yet not utilized this option. The buyer also has a choice on the toppings. Extra cheese on a pizza and Dips like Roasted Pepper Dip and Cheesy Jalapeno Dip are available on demand.

PRICE IN THE MARKETING MIX OF DOMINOS

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Domino’s main target is the lower middle class and middle class income group. Best of quality with reasonable pricing is its motto. Dominos has come up with a uniform and consistent pricing policy. This keeps the base price in check and helps the company to attract customers. If you look at the competition, then Domino’s has been evenly prized with Pizza hut. But the prices are high as compared to KFC and McDonalds and hence the price conscious customers will prefer the indirect competitor – McDonalds and KFC above Domino’s. Affordability is the key to the tremendous success of this reputed company. To maintain the price level many new and innovative schemes are launched on regular basis. It always gives its customers value for one’s money. Special discounts are offered at regular intervals. For Wednesdays, a special scheme was launched where one free pizza was offered with one buy. Many free food items on purchase of selected and exclusive products are some of the methods to lower the prices and attract the customers. Pizzas are available in three sizes large, medium and regular so that one can buy whichever is affordable to them.

PLACE IN THE MARKETING MIX OF DOMINOS Dominos has distribution in 4 regions EASTERN REGION

NORTHERN REGION

WESTERN REGION

SOUTHERN REGION

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Domino’s pizza has always maintained a direct channel with its customer base. The customers either call or send a message by telephone for the pizza delivery. Consumers can also place their order online through the official website of Dominos. In both the cases, the packaged food product is delivered and subsequently received by the buyer at the mentioned address. If the order does not reach the buyer in allotted thirty minutes, then the buyer does not have to pay for it. The order is delivered free of charge. The delivery boys are the real heroes of this organization. The detail of every route is decided beforehand and after an order is placed, this route is followed so that minimum time is taken. One of the most common methods of eating a pizza is to dine-in the Dominos outlet. Dominos has many outlets in very good locations. Most of the shopping malls and main streets have a section for Domino’s pizza. Domino’s is currently located in 73 countries and has more than 10000 stores. PROMOTIONS IN THE MARKETING MIX OF DOMINOS

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Domino’s idea of maintaining direct contact with its consumer base is one of the leading factors that have taken the company to unachievable heights. Its policy of door-to-door deliveries is amazing. Nearly every individual knows that Domino’s will deliver the pizza in thirty minutes flat. Domino’s sales depend on telemarketing and the efficiency of their trained delivery boys. Besides evaluating their own strength and weaknesses, Dominos has also been observant of their competitors. McDonalds KFC, Subway, Pizza Hut and Burger King are some of the important competitors of Domino’s. The one field where the other companies have been simply unable to give competition is in delivering the pizzas on time. To promote its food products, Dominos is always introducing new schemes and offers in order to maintain its grip on its customers. The home delivery is always free of charge. Sometimes the company offers a 50% discount on the second pizza. At other times, the company introduces schemes like one small pizza free on one large pizza. Sometimes lucky coupons are also awarded to loyal buyers. The most regular and common scheme is of giving a coke free on every purchase. Thus, the advertising team is actively involved in the marketing and promotional strategy to boost up the sales. The visual media of television has been utilized to the maximum capacity. Many beautiful ads for domino’s pizza with reputed actors have been aired and they all have been very popular with the masses. Most ads of Domino’s are targeted to be product introduction or ads or the brand’s reminder ads so that people look at the ad and order a Domino’s Pizza. Domino’s has surely changed the concept of eating amongst the Indian Household. Ads for Domino’s pizza can also be seen in newspapers and magazines. 34

PEOPLE IN THE MARKETING MIX OF DOMINOS Dominos staff is very much trained although there is not much scope of innovation to do in the customer service as they have to meet minimum standards. The Dominos employees undergo training as per the training manual and according to the guidelines provided by the dedicated learning and development team. Employees are also encouraged to provide ideas for improvement through the classroom training and other developmental tools. The innovations are supported through rewards under various schemes. There is also a stringent feedback system which is linked to the performance system and hence makes the employees accountable for their actions and behaviour on the workplace. It also supports various certifications and other external development programs. Also the employees up to the higher management wear the uniform of Dominos which shows the equality and strong values it maintains in the organization.

PROCESS IN THE MARKETING MIX OF DOMINOS

Self service system. Hungry hotline facility. Keep in mind the health and hygine. Dominos pizza india also boasts about its commitment to serve its customers on time by implementing the “30 MINUTES OR FREE” service commitment. Domino’s constantly strives to develop products that suit the tastes of its customers. Dominos believes strongly in the strategy of ‘think local 35 and act regional’.

The Dominos restaurant has two methods of service that is order at the restaurant and order online which could be taken away or delivered at home. Both these processes in its marketing mix are its service offering backbone. As it guarantees thirty minutes delivery Dominos prioritizes the home deliveries first as they need to be prepared quickly and then taken over by the delivery boy to be delivered. The Dominos restaurant deliveries are also done on a token basis which determines the queue number and customers can collect their pizzas after they have paid for their orders. In the restaurants they have to choose from the menu at the many counters which are at the front end of the kitchen from a menu being displayed in front of them. After the order being placed immediate payment is made after which they wait for being served. The Dominos restaurants also has a cleaning staff which regularly maintains the hygiene of the restaurant. In the online deliveries there is the pizza tracker system where you can track your order phase from order taking till the delivery reaches home. The customers can also give the feedback directly to the attendees. PHYSICAL EVIDENCE IN THE MARKETING MIX OF DOMINOS

PHYSICAL EVIDENCE Domino’s focuses more on home delivery. Minimal focus on ambience at store. Small outlets with very few tables. Plates are not provided.

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Dominos’ biggest physical evidence is its attractive family outlets. The customer receives the hot pizza in a specialized covering which flashes the promotions and Dominos logo. The size of the packaging differs with the size of the orders and all individual items are generally packed separately. The employees have to be in their typical attire consisting of the Dominos T-shirt and cap and also with minimum level of conduct. The payments are made through cash or card in restaurants and for online orders there are variety of payment methods include cash, card and mobile payments. The Dominos customer support is also online during the restaurant working hours for taking telephonic order as well as address to the customer grievances. The customer support is available through website or phone with their countrywide unique number. Hence, this concludes the Dominos marketing mix.

4.2 SEGMENTATION , TARGETING AND POSITIONING OF DOMINOS

SEGMENTATION When Consumers hear the name Domino’s they are able to associate it with “30 minutes delivery guarantee”. This is one of the most popular campaign of Domino’s highlighting what Domino’s stand for – Fast delivery with excellent taste. It segment its offerings based on demographic and geographic factors, for e.g.- it has localised its menu when it entered in India. Domino’s understands that cow is

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sacred here so Dominos replaced pepperoni, beef based toppings with spicy chicken sausage topping. Demographic segmentation In demographic segmentation, we divide the market into groups on the basis of variables such as age, gender, etc; these demographic variables are so popular with marketers so that they are often associated with the consumer’s needs and wants. And they are easily measurable. Here are the demographic variables have been used to segment markets by Dominos. Another segmentation process is by breaking the market by the ages as follows: Age: Below 15 years - 0% 15 - 20 years - 20% 21 - 30 years – 40% 31 - 40 years - 25% Above 40 years - 15% The companies target audience is the bachelors, youth and the professionals who have no time to prepare food and to grab the food as fast as possible. Gender -- they targeted both genders.(mainly male because many males will not like to prepare food when they are single). Income status

Upper Class 60% Middle Class 35% Lower class 5%

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They company’s target audience is also the middle class, upper class, upper middle and high level peoples.

The international fast food pizza delivery franchise has also introduced a new range of pizzas with a price point of Rs. 35 to attract the lower class customers. Ethnicity – For this reason they come modified their menu and they added new dishes like peppy paneer and pizzas are available in 3 sizes-small, medium and large.

Grographic segmentation

Geographic segmentation is basically using the spatial location to segment the market. In Geographic segmentation calls for the diff geographical units such as states, regions, cities and the south Asia is a one of the major geographic segmentation variables relevant for marketers.

Here markets are mainly divided into the rural and urban areas. Domino’s intends to penetrate completely within these markets by opening up 2025 outlets per year in these cities. Domino’s has a young and enthusiastic team of more than 260,000 (2016) employees. Today, Domino’s has emerged as the leader in the fast food segment with about 65% of market share of pizza delivery in India and have outlets more than any other corporation in the business of food, not just the pizza business. All the

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Company outlets are corporate outlets invested by the company and also managed by the company. The Geographical variables have been used to segment markets. Area – semi urban and urban City – class-A and Class-B cities i.e. metro politician cities Region -- 56 regions where the pizza demand is more that is around 1015 outlets (December 2015) in India.

TARGETING Large corporate offices, railway stations, cinema halls and university campuses for faster growth.

It has already established an outlet at Infosys corporate office in Bangalore and at three cinema halls- PVR in New Delhi, Rex in Bangalore and New Empire in Kolkata.

Domino also classified its outlets into Super Stores, Express stores and Regular stores.

Super stores were those which generated high traffic and therefore had more counters than the regular outlets (the outlet in Churchgate, Mumbai). Express stores were those where people were expected to walk in and order rather than ask for home delivery(University campuses, Offices or Cinema Halls) They executed flawlessly through the use of standard store layouts, training programs,operational evaluations and a focus on our exceptional people. 40

According to Ajay Kaul, CEO of Jubilant FoodWorks Ltd, the group franchisee for Domino’s India, the company plans to cross the 500-outlet mark in the next three years. According to him, the fast food chain has established the brand with the middle and lower group. As a result, there are 25 Domino’s outlet in Tier II and Tier III cities such as Indore, Jammu, Jamshedpur and Haridwar.

POSITIONING Domino’s brand is built around the emotional benefit of “satisfies your craving for tasty food at the time of need”. The main focus is on owning the taste platform as a means to satisfy the craving for good food through innovative and indulgent pizzas, and the 30 minutes delivery promise is a credible reason for the “at the time of need positioning”.

Their core target customer is the urban SEC-A family in the age group of 18-35 years, where both husband and wife are working, who are short of time but want to indulge in tasty food at home. Over a period of time, customers’ perception about Dominos changed and hence the subjective profits also varied. To sustain the long term profits in the market Dominos’ had to work hard in redefining it’s positioning in the minds of the customers.

For any business the first thing to do right is to choose a right segmenting variable like attitude behaviour -lifestyle, culture, belief, habits etc. Most of the people 41

would be surprised to see that age, disposable income and family size are not the segmenting variable of Dominos. Infact the segmenting variable of Dominos’ is OCCASION. They have segmented the market on the basis of occasion so that people want a meal replacement for change in mood, party, spending time with family and kids, spending time with elderly people.

So dominos business is providing a high quality tasty food in meal replacement sector. When Dominos entered into Indian market, they tried to establish in a pizza category. First of their communications and tag line was based on the attitude that whenever and wherever you are hungry just call dominos. “HUNGRY KYA?” in one of the initial advertisements Mallika Sherawat was the model. So some of the advertisements did fairly well and they established points of parity with other players.

Soon they realized that for home delivery model, time is the parameter which most of the customers value so they created a points of difference by new value proposition that is “30 Minutes or free”. Paresh Rawal featured ad in monsoon of Mumbai was a real hit and got many national and international awards. So after some time, when Dominos’ business was not growing as fast as they expected they did lot of in depth and focus interviews where they found that it is not fast service which is the value driven parameter for customers, it is Taste which people want to pay for along with value for money. So once again as per the customers’ expectations Dominos’ introduced pan size pizza worth rupees thirty five and it all along changed the perception of people that Domino’s is a value for money. So now responding to the customers’ reactions of valuing taste as the foremost reason to order pizza at home or office, they spent huge amount of money in R&D, 42

hired new chefs on Dominos’ payroll and introduced various new variants in the Indian market like Cheese crust, Chinese pizza, other regional flavours etc. Some of them were instant hit and some could not do well. But one thing was very clear that constant innovation in product would only make a company better. So now the company has established three core values namely “30 Minute, free delivery”, “taste” and “Value for money”, with once again new positioning. “KHUSIYON KI HOME DELIVERY” is a new tag line and by virtue of this proposition, they could incorporate any of the core value in a same tagline. This is a beauty of any successful brand “CONSISTENCY”. The brand which is consistent over a period of time across product line is there for long time.

4.3 SWOT ANALYSIS OF DOMINOS STRENGTH

WEAKNESS

1.more outlets-even in smaller towns.

1.lack of space in outlets.

2.Less than 30 minutes home delivery.

2.ambience not upto expectation.

3.quick sevice at outlets.

3.no option for birthday parties and corporate launches.

4.customer satisfaction.

4.lack of variety.

5.low price. 6.excellent offes. OPPORTUNITY 7.good promotion. 1.growing fast food market-scope for

expansion. 2.introduce more varities. 3.bigger outlets.

THREAT 1.emergence of papa johns-worlds pizza makers. 2.better quality and variety of competitors.

4.take away counters. 43

STRENGTH:

1. Dominos have strong service facilities like '30 min's NAHI TO FREE' (otherwise FREE): dominos were the first to start the trend of 30 minutes otherwise free that means they will deliver your order within 30 minutes otherwise they will give you for free and they are very honest with this concept as they do what they say but they never let their employees to drive the bike so fast in order to reach before 30 minutes and all the employees have to follow this rule strictly and they reach any place before 30 minutes. So it has good door step services within half an hour. 2. Low price menu: In India Domino's is trying to attract the middle class and lower middle class people who are interested to spend their money on pizza but in low price. Those people are eager to go for an outing in any festival and want cheap and best family restaurant. Domino's would be most preferable. They do not need high class ambiences or amusement in the shop so the establishment cost is low for the dealers and the price of pizza is very reasonable for the customers. 3. Variety of Pizza's: Dominos Pizza has a lot of varieties like vegetarian and nonvegetarian. In vegetarian lots of pizzas are available as well as non-vegetarian too. 4. Quality of Pizza's: the quality of Dominos Pizza is also very good. The taste of all the pizzas are very yummy. 5. More outlets- Even in smaller towns: dominos have its outlets even in the smaller towns its popularity and pizzas are not limited to big cities but small cities

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also due to which people know it more whether from a metro city or from small city. 6. Quick service at outlets: the service at the outlets of dominos is very fast and customers don't have to wait for long for their order which makes the brand even better because low price along with good service as a very rare combination. 7. Excellent offers: The Domino's pizza franchise constantly keeps on inventing ways through which it can make a greater impact on the fast food market. That is how the fast food franchise came up with "Fun meal is four offers". Through this method, the pizza franchise is able to produce more variety in the food delivered to its customers at their door steps. Through its "Fun meal for four" pack the Domino's pizza India offers four pizzas at the rate of Rs. 180. This means charge of one pizza will be just Rs. 45. Domino's mainly offers are more attractive for the students and middle class people and they are the main customer which they targeted. Domino's also regularly introduces sell-in-schemes like promotional schemes for dealers, promotional coupon, festival offers etc. Sometimes they also give great discounts to the customers. 8. They are strong presence in the market as a brand name: they have a very strong presence in the market and through its long presence in the market and continuous loyalty toward the customer providing them a great service at a cheaper rate it really have created a very good reputation and brand name. So it makes Domino's Pizza better than its competitors.

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WEAKNESS: 1. High fat and high calorie food not good for health conscious people . 2. Intense competition means Dominos' has limited growth in market share. 3. In comparison to some of its competitors the companys earning per store is relatively lower. 4. Operations: Large number of franchised outlets results in difficulty in handling operations. Quality control too becomes challenging. Due to this, some of the Dominos outlets got closed affecting the image of the brand. 5. Decreasing sales in mature markets: Due to rise in health conscious population there is decrease in revenue affecting the business as a whole. 6. Low staff retention: High attrition due to the absence of proper training & development is a major challenge for Dominos. Plus the manpower employed is also unskilled so they quickly change jobs when they cannot adjust to the hectic environment. 7. Lesser number of eateries: Dominos has more delivery outlets then eating joints which is a problem especially in places like malls and other locations where clearly customers want a sitting place.

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OPPORTUNITY: 1. Market Expansion: Expanding to the developing markets will be beneficial as far as Pizza industry is concerned, as developed markets are maturing. Targeting the developing economies should be the future strategy of the company.

2. Penetration: Strengthening its outlet network by further penetrating the current market will help Dominos to increase its revenues.

3. Health conscious eatables: Introducing health conscious menu with new flavor additives which is low in fat will result in increasing it revenues in future.

4. Restaurants: By introducing exclusive Dominos restaurants in cream areas will help the brand with more brand recognition and will also help in getting the customers who like to eat outside in plush restaurants.

THREATS: 1. From their competitors: it is facing a very tough competition from the existing competitor pizza hut as pizza hut have some of the better facilities with it is regarded better than dominos and hence really affects the market of it distributing the consumers.

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2. Pizza hut main competitive advantage over dominos is dine-in facility: the main competitor pizza hut has a unique dine in facility that makes it different and much better than dominos. 3. Emergence of Papa John's - World's Pizza makers: new entrants entering the market are coming as a big threat for dominos as it is facing a hyper competition situation from pizza hut and it this scenario a new entrant can make the situation worse and make it loose market. 4. Better quality and variety of competitors: dominos being a low price pizza seller than its competitors that gives it an advantage but at the same time the difference in quality can be seen and that makes the difference. 5.No take away counters for pizzas: doesn't have any take away counters which in turn harms its own market and the consumers coming to it.

4.4 COMPETITORS OF DOMINOS 

1.Pizza Hut.

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2.Smokin Joes Pizza.

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3.Papa John's Pizza.

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4.kfc

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5.burger king

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6.subway

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7.McDonald’s

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PAPA JOHN’S PIZZA Papa John's International makes a lot of dough -- pizza dough, that is. The company operates the world's #3 pizza chain (behind YUM! Brands' Pizza Hut brand and Domino's) with around 4,893 pizzerias across the US and in about 39 international markets. Its restaurants offer several different pizza styles and topping choices, as well as a few specialty pies such as The Works and The Meats. Papa John's locations typically offer delivery and carry-out service only. The company owns and operates more than 752 locations, while the rest are franchised. Founder and CEO John Schnatter owns more than 20% of the chain.

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PIZZA HUT

When it comes to tossing around dough, no one does it more often than Pizza Hut. The unit of YUM! Brands operates the world's #1 pizza chain with some 16,400 outlets in more than 100 countries worldwide. The chain serves a variety of pizza styles, including its flagship Pan Pizza, as well as Thin n' Crispy, Stuffed Crust, Hand Tossed, and Sicilian. Other menu items include pasta, salads, and sandwiches. Pizza Hut offers dine-in service at its characteristic red-roofed restaurants, as well as carry-out and delivery service. Only about 3% of the restaurants are company-operated, while the rest are franchised. The world's largest fast food company, YUM! Brands runs KFC and Taco Bell in addition to Pizza Hut.

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MCDONALD’S McDonald's predominantly sells hamburgers, various types of chicken, chicken sandwiches, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the McRib sandwich. Some speculate the seasonality of the McRib adds to its appeal. Products are offered as either "eat-in" (where the customer opts to eat in the restaurant) or "take-out" (where the customer opts to take the food for consumption off the premises). "Eat-in" meals are provided on a plastic tray with a paper insert on the floor of the tray. "Take-out" meals are usually delivered with the contents enclosed in a distinctive McDonald's-branded brown paper bag. In both cases, the individual items are wrapped or boxed as appropriate. Since Steve Easterbrook became CEO of the company, McDonald's has streamlined the menu which in the United States contained nearly 200 items. The company has also looked to introduce healthier options, and removed high-fructose corn syrup from hamburger buns. The company has also removed artificial preservatives from Chicken McNuggets[49], replacing chicken skin, safflower oil and citric acid found in Chicken McNuggets with pea starch, rice starch and powdered lemon juice. International menu variations

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Restaurants in several countries, particularly in Asia, serve soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia, or Ebi (prawn) Burger in Singapore and Japan). In Germany and some other Western European countries, McDonald's sells beer. In New Zealand, McDonald's sells meat pies, after the local affiliate partially relaunched the Georgie Pie fast food chain it bought out in 1996. In the United States, after limited trials on a regional basis, McDonald's plans to offer an all-day breakfast menu whenever its restaurants are open, although eggs cannot be cooked at the same time on the same equipment as hamburgers due to different temperature requirements.

4.5 PRODUCT LIFE CYCLE

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INTRODUCTION STAGE: 1.High cost of delivery system Whole new infrastructure had to be set up as the model was new to india. Supply chain had to be created. 2.Slow sales volume to start Eating exotic food home delivered against the trend. Heavy advertising and promotion. 3.Almost no competition Pizza hut was the only competitors offering similar product. 4.Demand had to be created Customers have to be prompted to try the product with campaigns like “hungry kya”? 5.Makes no money at this stage

GROWTH STAGE: 1.Costs reduced due to economies of scale Same store sale growth increased. 2.Sales volume increases significantly 3.Profitability begins to rise

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4.Public awareness increases new marketing campaign with “khushiyon ki home delivery” to reflect changing environment. 5.Increased competition with new entrants Latest entry of pap john’s pizza. Pizza hut increasing its delivery networkand opening only “take-away” stores.

6.Increased competition leads to price decreases Rs 35 pizza introduced to attract new customers. Value pricing.

MATURITY STAGE: Dominos is at maturity stage

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CHAPTER 5 FINDINGS 1. Dominos comes under food and beveragers industry. 2. India is expected to become the fifth largest consumer market in the world by 2025, according to a paper prepared by the Confederation of Indian Industry (CII) and Grant Thornton. 3. Domino’s is the second largest pizza restaurant chain in the world, with more than 14,200 locations in over 85 markets. Founded in 1960, our roots are in convenient pizza delivery, while a significant amount of our sales also come from carryout customers. 4. The first Domino's Pizza in India opened in New Delhi in 1996. India was Domino's third-largest market in 2013, behind the United States and United Kingdom. In December 2014, India became Domino's 2nd largest market. Domino's Pizza operates 1085 stores in 251 Indian cities as on 26 October 2016. It was headed by Ajay Kaul since 2005. Pratik Pota became the CEO from April 2016. 5. In 2016, Domino's in New Zealand delivered the world's first pizza delivery by unmanned aerial vehicle using the DRU Drone by Flirety. 6. In February 2017, Domino launched a wedding registry with gifts delivered in the form of Domino's eGift cards. Customers have the option of signing up for Domino's pizza package to be served for the event.

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7. In March 2017, Domino's announced a pilot project in Dutch and German cities using delivery robots to deliver food within a one-mile radius of stores in partnership with Starship Technologies. 8. Dominos vision: “No. 1 in people, No. 1 in pizza”. 9. Dominos mission: Sell more pizza, have more fun! 10.Dominos has its main consumer base in the age group of 16 to 30 years . 11. Dminos targets middle class and upper middle class youth. 12. Dominos is in the growth stage. 13. Competitors of dominos are pizza hut, papa john’s pizza, kfc, mcdonalds etc.

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CHAPTER 6 CONCLUSION It is evident at this point that Domino's Pizza Incorporation has a good brand image, which is one of its strongest points. In addition, the company has had a good history despite a few lawsuits and criticisms on taste. Domino's advertising strategies are quite effective and have worked to improve the sales of the company as well as its competiveness in the market. However, the company faces major threats that might put the future of the company to dire test. The sociocultural changes that continue to occur in the world today require that the company make rapid changes and continuous monitoring of the lifestyles of the people in various parts of the world: especially where they operate. There level of competition in the fast food industry is growing stronger by day and maintaining loyal customers is the ultimate strategy for any business in the industry today. 1.Take away and dine-in First of all, most of the customers who wish to take away have the priority to get the food faster than those who want to have meals in the Domino’s Pizza restaurant. This can be proved by the faster receiving of ordered food by those customers who came late and ordered take away food than those who came earlier and ordered dine-in food. According to the result I obtained, 19 minutes was the longest waiting time for the customer who tends to dine-in, whereas 12 minutes was the longest waiting time for the customer who wishes to take away. Besides, customers are more likely to take away their foods as compared with dine in the Domino's Pizza. 57

2.Management of kitchen insider and cashier Secondly, Domino’s Pizza has a well-organised management structure in assigning insiders for different tasks. Kitchen insiders of Domino’s Pizza play important roles in packaging, receiving delivery call, cooking, tossing the dough into a pizza by hand, putting the topping and sauces, and also operating all the machines. The hourly total sales of pizzas and side orders which are sold at order counter will be recorded down every day. This is because Domino’s Pizza can forecast and distribute an accurate number of kitchen insider hourly for everyday to come out an efficiency services. Based on my result, the number of kitchen insider also will increase when lunch hour and dinner hour. Moreover, the worker who works at counter has been trained before in order to have a good and polite communication with their customers.

3.Customers have to wait for so long to reach their turn Most of the customers have to spend long time in waiting their turn to make order. This is because there is only one counter in process and customers are hesitant to make decision out of many choices. Besides, the cashier always will pause the process for take order from customers and then serve foods and beverages to the customer's table or place purchased foods and beverages into plastic bag. Thus, the process is slow even it known as fast food. 4.Social changes There are changes in lifestyles of the people in the United States for example and this continues to impact on the company; this also happens in other areas as well.

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5.Technological changes The need for online sales is currently on the increase. 6.Economic trends The company underwent the 2008 recession, just like many other companies, but remained stable. The growth rate is expected to increase in the near future to about 20.6 % (see Global data) 7.Political/ regulatory trends Given the fact that the company operates in many countries, political interferences are common. The health issues have also been affecting the firm. 8.Substitutes Other substitutes to pizzas are available even in restaurants and this affects the business. 9.Threats of competitors There are many competitors in the business including companies like Subway, MacDonald, and Pizza Hut.

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CHAPTER 7 RECOMMENDATIONS 1. First, the company should concentrate on increasing its network coverage in India and China in order to seize the looming opportunity in the two emerging economies. India and China carry less than 2% of the total stores under the Domino's company (Globaldata). The number of stores should be increased to more than 20% in the next three years in order to meet the company's expansion strategy that it is currently pursuing. 2. Secondly, Domino's should focus entirely on customer loyalty through insisting on quality and ensuring that all stores deliver the best delicacies. These guidelines on quality should be adhered to strictly if at all any good results are to be achieved. These two recommendations are based on the reason that the level of competition in the fast food industry is growing steadily (Young). 3. Thirdly, Dominos Incorporation should consider utilizing their intelligent advertising techniques to focus on all the players or competitors in the market other than only focusing on one competitor, Subways. Concentrating on one competitor may have serious consequences to the company especially where established businesses like Macdonald may come up with ingenious strategies that may affect the stability of the company and growth in general (Datamonitor). 4. Fourth, Domino's should improve their innovative strategies that they have adopted their online marketing and selling. Pizza Hut performed better when compared to Domino's company in terms of online rewards despite having invested almost the same amount of money in their online services segment. 60

REFERENCES WEBSITES: https://documents.tips/documents/stp-of-dominos.html https://www.marketing91.com/marketing-strategy-of-dominos/ http://dominopizzaain2.blogspot.in/2012/12/conclusion_8.html https://www.dominos.com.au/inside-dominos/corporate/vision-and-mission https://en.wikipedia.org/wiki/Domino%27s_Pizza

BOOKS : 1. Marketing Management: T.N. Chhabra, T.N. Chhabra & S.K. Grover, (2013) “MARKETING MANAGEMENT” fifteenth edition, Dhanpat Rai & Co., Delhi. 2. Kotler, Kotler and Keler, (2015) “MARKETING MANAGEMENT” fourth impression, Person, Delhi.

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