Dominos Pizza India Limited Case Study BY Sonata Information Technology Limited
IntroductionDominos Pizza India Limited is a Pizza Retail company spread across India across 85Locations in 22 Cities. Their Sales Model is Take away and deliveries, deliveriesaccounting for about 70% of their business. Hence their main focus in to acquire andretain and increase the value of their customersScope and PurposeThe Sales Module gives a birds eye view of their customers. It holds the completeCustomer Information including the transaction history. Grouping the customers based onUser Specified Criteria to facilitate campaigns on the selected groups.The Campaign Management module is used for planning, executing and analyzingcampaigns results. Apart from this, the solution would also provide detailed analysis ofSales trends and customer behavior over parameters such has time, Hours of day,Customer Segment, Order value, order frequency etc.Interrelated SystemsPOS: The Point of Sale application is located at the store. The Customer ServiceRepresentative (CSR) takes the order in this system. It is a Clipper/FoxPro Bases systemin use since Dominos started operations in India. It primarily holds customer informationsuch as Name, Phone Number and Address and Location (Delivery Area/Sector asdefined by Dominos) data transfer is One way i.e. from POS – SLX and subsequently inthe next phase it would be 2 way.Email System: A POP3 Email System to send out email.Functional requirements Customer Management Campaign Planning Campaign Execution Post Campaign Analysis Reports and AnalysisCustomer ManagementInformation from the POS in brought in by Batch Data Import and data such as Last orderdate, Total order value, Order Frequency, Average ticket value etc are calculated afterbatch update is doneThis is used to classify the customer based on customer inactivity, order value etc to runcampaigns to get further business from the customer.Campaign PlanningCampaign Planning includes deciding the Campaign objective/period/target segment.
The system generates a list of customers on whom the campaign is to be run. This isgenerated either by running a query on the database (complex queries) or by using theData mining capabilities of the software. The data mining software assigns a score toeach customer, the score indicating the probability of the customer responding to thecampaign. This is done using Response Models built using results of previous campaigns.Once the campaign period/objective/target segment/offers and communication channelhave been decided, the same can be entered into the system to create a campaign.A campaign can consist of different offers. Each offer can be run using a differentcommunication channel. I.e. direct mail, email, and Telephonic call.Campaign ExecutionCampaign execution is in the form of:Direct Mailers – The system generated Labels for the customers for who are targetsegment for the campaign offer. Coupons are managed outside the SalesLogix system.The labels with the address of the customer are put on the offer coupons and posted to theclient.E-mails – Templates for eMail offers are created and stored in SalesLogix as Worddocuments. These templates are used for sending personalized emails to the customers.Mail merge will be done and the SalesLogix integrated with the E-mail system atDomino’s will send out the email.TeleCalling – The SalesLogix system will generate a list of Customer with Name alongwith telephone number, which is handed over to the call center.Response ManagementThe responses for all the above communication channels are captured in the POS and arethen imported into the SalesLogix system. The responses are recorded as Orders bookedagainst the campaign.Only a delivered order is considered as a response to a campaign. SalesLogix howeverprovides the functionality to capture other forms of response and can be used at a latterstage as and when the requirement arises. The response is captured in order to performeffective post campaign analysis.Post Campaign AnalysisThe system would be able calculate the Net Profit from the campaign. It is calculatedfrom the actual sales during that period.Incremental sales are the additional sales over the baseline sales that have occurred due tothe campaign
Baseline Sales = Sales during any predefined period e.g. same period of previous year orprevious month, period in which a similar campaign was run or any such period onduring which no campaign was run.The system would provide the user to select the campaign and the “baseline period.” Onselecting the “calculate option,” the system would then display the following to the user ▪ ACTUAL SALES ▪ INCREMENTAL SALES OVER BASELINE PERIOD ▪ AVERAGE TICKET VALUE ▪ TOTAL COST OF ACTIVITY ▪ GROSS CONTRIBUTION ▪ NET PROFIT /LOSS FROM CAMPAIGNAnalysis and reportsSales trends, customer and buying behavior provide important decision making criteriafor the managers. The system would provide the ability to analyze sales, costs,campaigns, customer behavior etc in a user-friendly manner using Seagate analysis.These would focus on understanding the customer well and also help to achieveimprovements in the system like to the menu, opening of stores, extension of deliveryareas etc. Apart from the above this information would also be used to achieve a higherresponse rates for campaigns.The following Business Measures are available to the managers to analyze data. Sale Value No of Pies or Side items No of Orders Average Ticket Value Food CostThe parameters are Time Customer Category Geography Product Customer Segment Campaign redemptionPost Implementation FindingsThe Product gave Dominos a 360° View of their customers. Information such as thefrequency of order / break up of sales over the various dimension was not possible in thepast. Ability to plan future campaigns based on results/Customer behavior of previouscampaigns is now possible.