DOMINO’S• Founded in 1960• Dominos is the second-largest pizza chain in the United States• over 9,000 corporate and franchised stores in 60 countries and all 50 U.S states• Pizza, sandwiches, pasta, chicken wings , desserts• Focus on delivering great tasting Pizzas and sides, superior quality, exceptional customer service and value for money offerings.• Domino’s pizza believes strongly in the strategy of ’Think global and act local’.
HISTORY OF DOMINO’S• In 1960, Tom Monaghan and his brother, James, purchased Domi Nicks, a small pizza store in Ypsilanti, Michigan near Eastern Michigan University.• Monaghan renamed the business Dominos Pizza, Inc. in 1965.• In 1967, the first Dominos Pizza franchise store opened in Ypsilanti• On May 12, 1983, Dominos opened its first international store, in Winnipeg, Manitoba, Canada• In 1998, after 38 years of ownership, Dominos Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion
DOMINO’S IN INDIA• It entered India in 1996• Through franchise agreement with Delhi based industrial Vam Bhartiya Corp.• In late 1999, Indocean Chase (private Equity fund) bought 25% stake in Domino’s operations from Bhartiya• Advised to go beyond its 16 outlets in Delhi to exploit the potential in the pizza delivery business.• By 2002 it had around 150 outlets covering over 20 major cities in India
CURRENT STATUS Domino’s pizza targeting to double its outlets in India to more than 800 over the next five years.Currently, there are 411 Domino’s stores in India. India is the fifth largest market for the domino’s afterUS, UK, Mexico and Australia.In India, Jubilant foodworks ltd operates domino’s pizza storeswith exclusive rights for India, Nepal, Bangladesh & Sri Lanka. Domino’s is the market leader in the organized pizza market inIndia. With over 50% market share and 70% share in the pizzahome delivery segment.
In metros, domino’s focuses on on –time delivery tag line/slogan – khushiyo ki home delivery ; Hungry kya ? USP - Home delivery in 30 minutes else free In term of top global markets for Domino’s, India is currentlyranked at ninth position. Home delivery contributes about 60% of the revenue.
INTRODUCTION• Worlds largest chain of hamburger fast food restaurants• Dealing in 123 countries .• Headquarter in the United States• More than 33,000 restaurants worldwide• More than 4,00,000 employees• Fast food: hamburgers, chicken, french fries, soft drinks, coffee, milkshakes, salads, desserts, breakfast.
• The McDonald’s philosophy of Quality, Se rvice, Cleanliness and Value (QSC&V) is the guiding force behind its service to the customers.• Reconnect with customers through contemporary global marketing direction ―I’m lovin’ it‖
Background• The company began in 1940 as abarbecue restaurant in California• operated by the eponymous RICHARDAND MAURICE McDONALD• In 1948 , they reorganized their business as ahamburger stand• Businessman RAY KROC joined thecompany as a franchise agent in 1955 andlater on purchased the chain from theMcDonald brothers and oversaw itsworldwide growth.• Regarded as a symbol of globalization andthe spread of the American way of life.
FOOD INDUSTRY IN INDIA In India, food industry andparticularly informal eating outmarket is very small. InIndia, over quarter of a millioncustomers visit McDonald’sfamily restaurants every day. TheIndian fast food market is valuedat $1-billion (Rs 4,547 crore)approx.
Business model Only 15% of the total number of restaurants are owned by the Company & remaining 85% is operated by franchisees In addition to ordinary franchise fees and marketing fees, McDonalds also collect rent, which is calculated on the basis of sales. Condition of franchise agreements vary by contract, age, country, and location In most of the countries, restaurants are operated by joint ventures and other, local entities or governments. To boost sales, McDonald’s is looking at new business channels instead of rapid expansion. New business channels include home delivery, kiosks, breakfast, extended hours and drive-throughs. comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. Act like a retailer and think like a brand
McDonald in INDIA• first Indian outlet opened in Mumbai in 1996.• Beef and pork products were not offered• meat and vegetarian meals are prepared in separate areas of the restaurant because of religious laws In India• In 2009, McDonald’s India won the CNBC Awaaz Consumer Awards for the third time in the category of the Most Preferred Multi Brand Fast Food outlets.• McDonald’s first launched home delivery of meals in Mumbai in 2004.
Target market• Initial focus on metros- Mumbai, Delhi• Relatively high incomes• Exposure to western food & culture• Move to smaller satellite towns (Gurgaon,Pune)• Positive spillover effects of reputation• Jaipur & Agra- To attract foreign tourists
• McDonald’s has a dedicated supply chain in India and sources 99% of its products from within the country.• strong backward integration right up to the farm level.
Competitors in INDIA• Pizza Hut• Domino’s Pizza• Papa John’s• Narula’s• KFC
Competitors• Burger King —Second largest burger chain• Wendys —Worlds third largest hamburger fast food chain• Jack in the Box —American fast food chain• Subway—Largest single-brand restaurant chain• Carls Jr.—Fifth largest American fast food chain• Five Guys—American fast food chain• Whataburger —American fast food chain• Krystal —American fast food chain• White Castle —American fast food chain• Yum! —Largest multi-brand restaurant chain
Supply chain critical for success strong local channels of suppliers and distributers operation and training to match international quality and hygiene standards invested 50 crore before setting up 1st store in india
QUESTIONS1. What are the key changes which have made supply chain management a critical function to succeed in present day business world?
Ans 1• growing urbanization• Improvement in overall education level• Increased scope of processed food• Integration of the economies of the world• Satisfying increased demand• Rapid development in IT• competition• Companies need• Long term collaboration with suppliers- need of the hour• Minimum cost
QUES…2. How does an efficient supply chain lead to strategic competitive advantage?
Ans 2• Affordable prices• Timely delivery of goods• Quality assurance• Increase in sales• Low wastage• Fulfill the demand of the customers
QUES…3. How domino’s revamped its supply chain model in the wake of its extended spread in Indian industry?