Product Mix ,product life cycle analysis and 7Ps of Domino‟s Pizza
Company Overview Jubilant FoodWorks Limited, JFL, was incorporated in 1995 and initiated operations in 1996 JFL is India‟s largest and fastest growing food service company, with a network of 378 stores (as of 31 March, 2011) JFL & its subsidiary operates Domino‟s Pizza brand Market leader in the organized pizza market (50% market share and 70% share in the Pizza home delivery segment in India) The Company has now also strengthened its portfolio by entering into an agreement with Dunkin‟ Donuts Franchising LLC, for developing the Dunkin‟ Donuts brand and operating restaurants in India
Corporate strategy “Exceptional people on a mission to be the pizza delivery company in the world” “Think global and act local” Fun, happiness and convenience
Indian operations Indian operations are ranked number one for past 3 years Delivers an average of 1 million pizzas per day Over the last 2 years they opened stores in 15 new cities The company operates in three segments 1.Domestic stores Uses company owned stores as a testing ground for new products and technologies which may then be passed onto franchisees. Moreover it generates income from company owned stores in the form of store profits. 2.Domestic supply chain Vertically integrated supply system. Automatic delivery of raw materials cuts out a lot of the “back of store” activities. 3.International Consists of 3469 franchised stored outside US, Operates six supply chain centers which manufacture dough and distribute food and supplies. it accounts for 41% of domino‟s store sales worldwide
Product Mix Veg Food Non Veg Food Side order Beverages Simply non vegVeg pizza 1 •Cheese and Pasta Coke•Margarita barbeque chicken•Cheese tomatoVeg pizza 1 Non Veg 1>double cheese •Barbeque chicken Garlic bread Fantamargherita •Spicy chicken>fresh veggie>country special Non veg 2>farm house •Chicken mexicana Choco lava cake Pepsi •Keema do pyaaza •Chicken golden delightVeg pizza 2>peppy paneer Cheese dip>mexican green Feast Pizzawave •Meatzaa>deluxe veggie •Non veg>gourmet extravaganza Chicken wings •Cheese and Chicken kickers pepperoniFeast Pizza>Veg Extravaganza
Product Mix (cont.)Domino‟s offer customization of pizzas to suit customers taste Allows user to select different size, crust and toppings making numerous possible combinations Different options like extra cheese, triple cheese, veg toppings etc gives added value Additional variety of pizzas are available in different geographical regions to suit the local tasteLimitation: The product mix only includes products available across all the stores Dominos outlets in India. Several other variety of pizzas are available in only regional stores.
Product Life Cycle of Dominos Pizza India Introduction Stage
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 createdSlow sales volumes to start• Eating exotic food home delivered against the trend• Heavy advertising and promotionAlmost no competition• Pizza hut was the only competitors offering similar productDemand had to be created• Customers have to be prompted to try the product with campaigns like “Hungry Kya?”Makes no money at this stage
Product Life Cycle of Dominos Pizza India Growth Stage
Costs reduced due to economies of scale• Same store sales growth increased 37% in 2010Sales volume increases significantly• 56% growth in year 2010Profitability begins to rise• 72 new stores added in FY year 2010-11 totaling 378Public awareness increases• Total number of cities covered increased from 69 to 90• Entry in tier 2 and tier 3 cities• New marketing campaign with “Khusiyon ki Home Delivery” to reflect changing environmentIncreased Competition with new entrants• Latest entry of Pap John Pizza• Pizza Hut increasing its delivery network and opening only "take- away" storesIncreased competition leads to price decreases• Rs 35 Pizza introduced to attract new customers• Value pricing
Product To capture the market, Domino‟s had to localize flavors Deluxe Chicken with Mustard Sauce and Sardines – East India Mutton Ghongura and Chicken Chettinad - South India Continuous products innovations such as Double Cheese Crunch Pizza, Kebab Pizzas, Cheese Burst Pizza, Domino‟s Calzone, Chicken Wings, Pasta have gone down well with the consumers. Hence, they have been able to get quick product acceptance from customers and often that is the first and most important bridge that a foreign food category has to cross.
Product Product Differentiation- Product Innovation Stringent service standards Home delivery specialist Mass customization Conformance quality – All products are identical and meet promised specifications Style – Delivered in paper boxes and served in style Service Differentiation- Ordering ease – At store, Hotline or Online 30 minutes delivery guarantee
Price Dominos sold a 12" Pizza for Rs 265. The target market consumer for India are value-, not price- sensitive. We need to offer comeback value to our customer. The high price was attributed to the high quality of ingredients used. For instance, Dominos sourced its Peperoni and Jalapeno needs from Australia and Spain respectively. Increasing competition from Pizza Hut, Dominos introduced price cuts and discounts to attract the customers. In 1998,Dominos introduced the Pizza Mania scheme where it offered a large pizza for Rs.129/-. Pizza Mania at Rs 35/- per Pizza and Fun Meal for 4 has helped drive value-for-money proposition allowing access to the brand
Promotion Celebrities like Paresh Rawal, Anupam Kher, Arshad Warsi in various fun act ads to target Indian audience The key message of the ads is timely delivery Target audience is a consumer who belongs to the age group 14-35 years from Economic class A or B. Promotional campaign „Hungry Kya?‟ and „The Pizza delivery experts‟ tagline New Tagline “Khusiyon ke home delivery” to target larger target segment and increased value proposition
Promotion 30 minutes campaign – Offers customers free pizzas if they are not delivered in 30 minutes from time of order Discount coupons serves as major promotional tool driving sales Events &Experiences – Sponsoring college fest, cultural programs and promotional events throughout the country
Place Dominos has a largest network of outlets across the world. First store opened in Delhi in 1996 Covers 90 cities including tier 2 and tier 3 cities Direct Channel Push Strategy in channel marketing – Advertising layout is minimal Strategically placed in big corporate areas, universities, malls and other places where the target customers hang out more frequently Customers can find the nearest outlet through the website
People Domino‟s have large number of trained employee for handling customer Staff at outlets and delivery staff can speak English Employees are trained to be cordial to the customer Have a uniform
Process The way in which orders are handled, customers are satisfied and the service is delivered. Orders placed at the counter are visible in screens placed at different places inside the counter Each staff is assigned a specific task so that everything falls in place quickly Self service Provide home delivery facility with 30 minute guarantee
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
References Philip Kotler,Marketing Management, 13e http://www.dominos.co.in/admin/en/filestore/9c2b 2ac601ce0307f2c48b469b107711.pdf India Retail Report 2009, 2011 http://www.dominos.co.in/ http://www.dominos.co.in/blog/ http://thepizzastop.blogspot.com/2011/04/pizza- hut-and-dominos-marketing.html
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