Service Package Anslysis

1. ATAL BIHARI VAJPAYEE- INDIAN INSTITUTE OF
INFORMATION TECHNOLOGY AND MANAGEMENT,
GWALIOR
Analysis of Service Package and characteristics of
Domino’s Pizza
Submitted By:
Shipra Tiwari
(2013MBA-027)
EXECUTIVE SUMMARY

2. This report is based on services offered by dominos and also to test the quality of service
dimensions of Domino’s. India's quick service restaurant market worth $13 billion is growing
25-30 percent a year on the back of changing and busy lifestyle, fast emerging middle class
population and surging disposable income, the industry will continue to grow at a pace in coming
years. It now accounts for roughly half of all restaurant revenues in the developed countries and
continues to expand there and in many other industrial countries in the coming years. But some
of the most rapid growth is occurring in the developing world; where it's radically changing the
way people eat. 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 411 outlets in 95 cities
This report provides extensive research and rational analysis about service concept of Domino’s.
And evaluation of current service marketing mix and evaluation of customer gaps in different
service quality dimensions.
INTRODUCTION

3. Domino’s vision: Exceptional people on a mission, to be the best pizza delivery company in the
world. Jubilant Food Works Ltd. (formerly Domino's Pizza India Ltd) was incorporated in
March 1995 as the master franchisee for South Asia Pacific, of Domino's Pizza International
Inc., of USA. Moreover, the company holds the master franchise rights for Sri Lanka and
Bangladesh through its wholly owned subsidiary. Mr. Shyam S.Bhartia and Mr. Hari S. Bhartia
of the Jubilant Group are the promoters of the company. 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 411 outlets in 95
cities.
STRATEGIES
POSITIONING WAR
When Domino's entered the Indian market, the concept of home delivery was still in its nascent
stages. It existed only in some major cities and was restricted to delivery by the friendly
neighborhood fast food outlets. Eating out at 'branded' restaurants was more prevalent.
GOING PLACES
Domino’s has selected their store locations wisely with focus on shopping malls, multiplex
complexes, metro stations, highways, offices spaces not only in Tier-1 but has also extended
their foot print in Tier-2 and Tier-3 cities reaching out to a larger consumer base.
LOCALIZING THE MENU
Since its entry into India, Domino's introduced new toppings for Pizzas to cater to the local
tastes. Different flavours were introduced to cater to local population.
BRAND BUILDING THROUGH ADVERTISING
Domino's and Pizza Hut initially restricted their ad strategy to banners, hoardings and specific
promotions. In August 2000, Domino's launched the 'Hungry Kya? (Are You Hungry)' sequence
of advertisements on television. In 2009 Domino’s rolled out a new campaign 'Khushiyon ki
Home Delivery', to promote the home delivery service of its latest offering. The campaign has
been created by Contract Advertising and positions the home delivery of pizza and pasta as a
very convenient service.

4. PRICING AND PROMOTION WARS
Through its 'Fun Meal for 4’ pack the Domino’s Pizza India offers four pizzas at the rate starting
at Rs 156. This has helped the specialty food franchise to enhance the strength of its customer
base. Domino's has introduced price cuts, discounts to attract the customers. They offer
comeback value to their customer.
Core Competencies of Dominos
Dominos core competencies have evolved over time. Their unique sets of strengths have helped
the Company dominate the pizza food service industry, and a leader in the home delivery / take
away.
VALUE CHAIN
Dominos
competitive
advantgse-
global leader in
pizza take
away/home
delivery
Unique
Supply chain
model :
Better quality
& consistency
unique global
model:allows
flexibilty at
the regional
level
level Leaner
Stores : Better
operating
margins
focussed on
the core
competency
of delivery

5. It is important to consider how a customer need drives Dominos to create the product. The
customer need that drives the entire value chain is the need for a dependable take away
restaurant, reasonably priced hot quality food and variety that suits the local palette.
Dominos has focused on these key customer needs throughout the value chain, and has not
allowed any digressions in this area. Its global operational model allows for lean stores, well-
trained staff and flexibility at a country level to customize menus to suit customer tastes.
Operational requirements have prompted the use of technology to make the customer experience
more enriching, it has a history of firsts – they were the first to use TV as a distribution channel,
an online tracking system that allows customers to track the pizza order and a proprietary point
of sale system. A combination of the Company level strategy and the Operational Strategy has
resulted in Dominos having a reputation for reliability and consistent pizza quality) – these
strategies have ensured that Dominos continues to meet its customer needs.
Product value chain
Porter’s model which depicts Dominos operations as a collection of “value-adding activities”.
The five primary activities are processes that are mainly concerned with the production of the
products and services to the external customers. These are necessary to the business processes.
The activities indicated as support activities are activities that are vital for the development of the
appropriate transforming resources. These can be looked as value adding activities, for instance
incorporating the use of technology such as being able to place orders by text message add to the
convenience Dominos provides and increases the accuracy of order All these constitute the
business processes of the organization.
Operations Strategy Implications
Dominos operations strategy mainly focuses on the providing high service quality to the
customer:
1. Minimize operations cost: To minimize the operating cost by improving the efficiencies and
process at the stores.
2. Strategic store locations to facilitate the delivery service: To leverage the strategic location of
the store in order to facilitate quick service to the customer and maximize the revenue.
3. Production oriented store designs: To utilize the production oriented store design in order to
facilitate efficient production and quick service to the customer.
4. Efficient order taking, production and delivery: To execute an efficient operational process
that includes order taking, pizza preparation, cooking, boxing and delivery.

6. 5. Use of Domino’s PULSE point-of-sale system: Use of Dominos PULSE system to improve
operating efficiencies, provide corporate management with easy access to financial and
marketing data and reduce time consumption and expenses.
6. Product and process innovations: To promote an innovative culture that increases both quality
and efficiency.
7. A focused menu: To maintain a focused menu that is designed to present an attractive quality
offering to customers, while minimizing order errors, and expediting the order taking and food
preparation processes.
8. A comprehensive store operations evaluation program: To utilize a comprehensive store audit
program to ensure that stores are meeting both as the expectations of the customers.
2.10 Major competitors
1. Pizza hut
2. US pizza
3. Papa John’s
Product & Service Design
Dominos has positioned and established itself as the pioneer in the pizza delivery service. They
are giving different offerings for different segments like local favorites, Global favorites,
Premium pizzas, kids’ corner and designer’s pizza .A fair degree of flexibility is available where
customers can customize their pizza and can choose to purchase “combos” thereby providing
better value for money. Additional items such as soft drinks accompany these choices. Dominos
has successfully implemented this concept of mass customization by catering to customer’s
individual needs through unique combinations. Dominos standard product and services offering
is universal across the world – quality pizza delivery in approximately thirty minutes.
Failed Product and Product Re-design:

7. Dominos openly acknowledge shortcomings and use customer feedback to revise their strategy
and approach. In an effort to design their product again, the company reconfigured its recipe.
They tested several combinations of cheeses, sauces and crust to finally arrive at a recipe that
was welcomed by the public. It is useful to note that the end customer was heavily involved in
the process of the product being re-designed and influenced the outcome largely. This approach
of using customer feedback can be credited the company witnessing an increase in sales
following the redesigning of their product.
Operations Challenge of the Product/Service Mix
Additionally the thirty minutes delivery guarantee that was initially introduced but later
cancelled due to a relatively high incidence of accidents and snatching of pizza on roads. This is
an example of a service delivery challenge the company faced. Recognizing that the thirty-
minute delivery was an attractive option for the customer, Dominos reintroduced the concept,
however allowing itself some leeway and positioning it as a “gift” to the customer.
Process Design
Volume: high volume-trained staff following same standard procedures in massive quantity as it
is efficient way to produce special equipment leading to continuous operations
Variety: the customers have a choice to select their own topping or can add more ingredients.
Dominos moreover redesign operational strategies on the basis of customer feedback

8. Variation in demand: dominos has low demand in daytime but demand variation is high at
lunch and dinner time.
Degree of visibility: when the customer comes for dine in or for take away kitchen is highly
visible, but in case of delivery at door step visibility of production process is low
Assembly line approach
Dominos were the pioneers to use the assembly line approach to prepare pizzas and other items
at high degree of consistency .They has chosen to use the assembly line approach to produce its
pizzas, while at the same time they have retained the flexibility of a batch flow process.
The production process at a Dominos kitchen utilizes the consistency and efficiencies that comes
from using an assembly line approach while retaining the flexibility that comes from adopting a
batch type manufacturing process. Dominos calls “make line” to its assembly line. This make
line methodology also facilitates dominos to produce higher volume in rush and peak hours
SERVICE TRIANGLE

10. CHARACTERISTICS OF SERVICES OF DOMINOZ
1. Intangibility: It is impossible for the service users to taste, feel, see, smile or possess a
service before they buy it.
2. Heterogeneity: People based services are susceptible to heterogeneity or variation in
quality.
3. Perishability: Unused service capacity of one time period cannot be stored for use in
future periods.
4. Inseparability: The production of a service cannot be separated from its consumption by
customers. Services are produced and consumed simultaneously.
COMPETITION
1. Dominos compete against regional and local companies as well as international brands,
Pizza Hut and Papa John’s.
2. We generally compete on the basis of product, quality, location, image, service and price.
3. We also compete on a broader scale with quick service and other international, national,
regional and local restaurant.
4. The industry is often affected by changes in consumer tastes, economic conditions,
demographic trends and consumer’s disposable income.