"We are both clear and consistent in our positioning. The tagline is "Hungry Kya" and the business model is delivering hot n fresh pizza in 30 minutes, guaranteed. We have no plans to change this successful positioning in the Indian market." - Arvind Nair, CEO, Domino's Pizza - 19/08/2002
SWARGO BHATTACHARJEE (20) PGDRM (2011-2013)
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INTRODUCTION In the land of tandoori rotis and masala dosas, does Italian food have any place? Yes, says the statistics. The pizza industry is really sizzling with hectic activity. The 150 Cr industries growing at an annual rate of 50% is expanding at a speady pace. Indian taste buds are demanding more and pizza industry – one of the most intensive industries is all gearing on. People across the country are consuming over three million pizzas a month currently, and the monthly sales figures are projected to double in the next four years. According to industry data, of the total branded quick service restaurant market of over Rs 1,200 crores, the pizza chains contribute around 50 per cent of the sales. In the mid 1990’s a spate of global fast food chains entered hoping to capture a part of Indian fast food segment but they found it difficult to establish themselves. Domino's Pizza India Ltd. was incorporated in March 1995 as the master franchisee for India and Nepal, of Domino's Pizza International Inc., of USA. Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. The first Domino's Pizza store in India opened in January 1996, at New Delhi. Today, Domino's Pizza India has grown into a countrywide network around 220 outlets in 42 cities and is the leader in the fast food delivery segment. Ever since it was established, Domino's Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire chain of stores around the country. Customers can order their pizzas by calling a single countrywide Happiness Hotline - 1800-111-123. In fact, Domino's was the first one to start this facility for its customers and their slogan is also towards consumer loyalty, they respect time responsibility i.e. Domino’s delivery in 30 minutes else pizza is free of cost .
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PRODUCT SEGMENTATION 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%
AGE 50% 40% 30% AGE
20% 10% 0% <15 years
15 - 20 years
21 - 30 years
31 - 40 years
> 40 years
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).
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Income status
Upper Class
60%
Middle Class
35%
Lower class
5%
Income – further segment the market based on economic groupings:
Income status 80 60 40
Income status
20 0 Upper Class
Middle Class
Lower class
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. Occupation-self employed (superior level peoples), officers executives, junior officers, Executives. Education- professionals. 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.
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GEOGRAPHIC 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 20-25 outlets per year in these cities. Domino’s has a young and enthusiastic team of more than 2,100 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 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 250 outlets in India.
PSYCHOGRAPHIC SEGMENTATION
It is the science using psychology to better understand the consumers and they are trying to suit with local food and they have already created the brand name in consumers mind by advertisement and service i.e. 30 min delivery. Dominos in 2005 took Arshad Warsi as their brand ambassador. Dominos tried to change add new toppings for children but they are failed to continue it. In Psychographic segmentation, buyers are divided into lifestyle, personality or values. Lifestyle – Business class, outdoor oriented. Personality – ambitious, open to experience. Occasions – Regular, special. Benefits – Quality, service, delivery in 30 minutes or else free. User status – regular user Usage rate – medium Loyalty status – medium loyal
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Readiness stage – intending to buy Attitude towards product-enthusiastic
PRODUCT 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. 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 Domin o’s outlet in Tier II and Tier III cities such as Indore, Jammu Jamshedpur and Haridwar.
PRODUCT 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. Domino’s Pizza is one of the leading players in the QSR industry and has approx 8,500 stores in more than 55 countries around the world. The market in which it operates covers more than 40 per cent of the world’s population.
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Over a period of time, customers’ perception about Dominos changed and hence the subjective profits also varied. To sustain the long term pro fits 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 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 D ominos’ 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, 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.
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CONCLUSION We can conclude that Domino’s are known for their best services and according to the factor analysis. We can summarize the whole that Employees behavior is the major factor, which influences the customer perception most about the pizza outlets while they are followed by environment, parking space, internal, and external factors. Domino’s is known for their best services. Domino’s commitment to home delivery pizzas has kept them up to the mark and at the same time kept a good customer loyalty.
Domino’s is a powerful global brand.
Significantly, ongoing investments in advertising results in broad consumer awareness.
Domino’s are the No. 1 pizza delivery company.
Largest share of pizza delivery channel.
They have a large and growing international presence.
They operate a profitable, value-added supply chain system.
Ensures quality and consistency.
THE END
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