A Project Report On Marketing Of Domino’s 3q1s5z

A PROJECT REPORT ON MARKETING OF DOMINO’S PIZZA

Submitted in partial fulfillment for the degree of

PGDM POST GRADUATE DIPLOMA IN MANAGEMENT (2009-2011) Submitted To: Mrs. Mukta Keskar

Submitted By: Jyoti Mishra PGDM (HR)

SINHGAD INSTITUTE OF MANAGEMENT VADGAON PUNE -411041

1

2

CERTIFICATE

This is certifying that the project entitled “MARKETING” is a bonafide work done under the guidance of MRS. MUKTA KESKAR by JYOTI MISHRA in the partial fulfillment of requirement for the award of PGDM of SINHGAD INSTITUTE OF MANAGEMENT (SIOM).

She has worked under our guidance and direction. Her work is found to be satisfactory and complete in all respect.

GUIDED BY:

DIRECTOR

(Mrs. Mukta Keskar)

(Daniel Penkar)

DATE:

DATE:

PLACE: PUNE

3

ACKNOWLEDGEMENT

It is a great pleasure and privilege for me to present report entitled “MARKETING ASPECT “. I would like to express my sincere gratitude to Mrs. Mukta keskar who has very kindly guided me for this project report. I

extend

my

gratitude

towards

my

institute

SINHGAD

INSTITUTE

MANAGEMENT for helping me to successfully complete the project work.

4

OF

COMPANY PROFILE DOMINO’S PIZZA

Domino's Pizza is an international fast food pizza delivery corporation. It was founded by Tom Monaghan. There are currently about 8,500 corporate and franchised stores in 55 countries, including all 50 US states. It was the second-largest pizza chain behind Pizza Hut in the United States. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti. Domino’s continued to grow and in 1978 opened its 200th store. On May 13, 1983, Domino's opened its first international store, in Winnipeg, Canada. That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international locations. In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and ceased being involved in day-to-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer. Involved in day-to-day operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer. In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois and its 3,000th international store in Panama City, making 8,000 total stores for the system. Also that the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in Domino's history to hit a turnover of $3 million (€2.35 million) per year. As of September 2006, it has 8,238 stores which totaled US$1.4 billion in gross income. In 2007, Domino's introduced its Veterans and Delivering the Dream franchising programs and also rolled out its online and mobile ordering sites. In 2001 the company's stores in New York

5

City and Washington D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on the World Trade Center and The Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red Cross' disaster relief effort. Leading industry publication Pizza Today magazine named Domino’s Pizza "Chain of the Year" in 2003.

KEY INFORMATION 6

 Type - Public (NYSE: DPZ)  Founded - Ypsilanti, Michigan, U.S. (1960)  Headquarters - Ann Arbor, Michigan, U.S.  Founder - Tom Monaghan  Chairman & CEO - David Brandon.  Industry - Restaurants  Products Pizza - · sandwiches ·pasta · chicken wings ·desserts  Employees - 145,000  Website-http://www.dominos.com/

7

DOMINO’S PIZZA TIMELINE 1960 Tom Monaghan and his brother James purchase "Dominick’s," a pizza store in Ypsilanti, Michigan. Monaghan borrowed $500 to buy the store. 1961 James trades his half of the business to Tom for a Volkswagen Beetle. 1965 Tom Monaghan is sole owner of company, and renames the business "Domino's Pizza, Inc." 1967 The first Domino's Pizza franchise store opens in Ypsilanti, Michigan. 1968 Company headquarters and commissary are destroyed by fire. First Domino's store outside of Michigan opens in Burlington, Vermont. 1975 Amstar Corp., maker of Domino Sugar, institutes a trademark infringement lawsuit against Domino's Pizza. In 1980, Federal court rules Domino's Pizza did not infringe on the Domino Sugar trademark. 1983 Domino's first international store opens in Winnipeg, Canada. The 1000th Domino's store opens. The first Domino's store opens on the Australian continent, in Queens land, Australia. 1990 Domino's Pizza signs its 1,000th franchise. 1992 Domino's rolls out Breadsticks, the company's first national non-pizza menu item. 1995 Domino's Pizza International opens its 1,000th store.First store opens on African continent, in Cairo, Egypt. 1996 Domino's launches its Web site (www.dominos.com).

8

1998 Domino's launches another industry innovation, Domino's Heat Wave, a hot bag using patented technology that keeps pizza oven-hot to the customer's door. 2000 Domino's Pizza International opens its 2,000th store outside the United States.Domino's Pizza celebrates 40 years of innovation and delivering pizza to homes around the world. 2006 Domino’s Pizza introduces Brownie Squares — warm, delicious, bite-sized brownies delivered with a fudge dipping sauce. 2007 Domino’s rolls out online and mobile ordering.

9

MARKETING

10

Marketing – This department makes sure that it stay ahead of the game by understanding What customers want and publicising its brand through innovative advertising, direct mail, e-commerce and PR. Marketing is also closely involved in the development and launch of new products and technology that makes Domino’s stand out from the competition!

Food Service – Responsible for manufacturing Domino’s hallmark fresh dough at our company-owned facilities and for sourcing the fine, fresh ingredients used in stores, Food Service is a very important department with responsibility for making sure ingredients meet strict food safety criteria. This department also sources, invents and/or manufactures all of the equipment used in our stores.

IT As the first pizza delivery company in the world to offer customers both online and interactive ordering facilities, it’s no surprise that IT is a very important part of corporate and store level operations. Domino’s IT team makes sure that all technology and e-commerce services are the best to business and that they work efficiently. It surprises many people to learn how Domino’s applies IT to virtually every aspect of running business at store and corporate level.

11

Business Strategy To achieve further growth through the continued implementation of business strategy, which includes the following key elements:  Continue to execute on our mission statement. Its mission statement is “Exceptional franchisees and team on a mission to be the best pizza delivery company in the world.” it implement this mission statement by following a business strategy that• Puts franchisees and Company-owned stores at the foundation all thinking and decisions; • Emphasizes ability to select, develop and retain exceptional team and franchisees; • Provides a strong infrastructure to stores • Builds excellent store operations to create loyal customers.  Grow leading position in an attractive industry. U.S. pizza delivery and carry-out are the largest components of the U.S. QSR pizza category. They are also highly fragmented. Pizza delivery, through which a majority of our retail sales are generated, had sales of $10.9 billion in the twelve months ended November 2008. As the leader in U.S. pizza delivery, believe that convenient store locations, simple operating model, widely-recognized brand and efficient supply chain system are competitive advantages that position to capitalize on future growth.

• Leverage strong brand awareness. Believe that the strength of Domino’s Pizza brand makes one of the first choices of consumers seeking a convenient, quality and affordable meal. They intend to continue to promote brand name and enhance reputation as the leader in pizza delivery. 12

In 2007 it launched the campaign, “You Got 30 Minute,” which built on the Company’s 30minute delivery heritage. In 2007 and 2008, each domestic stores contributed 4% of their retail sales to advertising fund for national advertising in addition to contributions for market-level advertising. Intend to leverage strong brand by continuing to introduce innovative, consumer-tested and profitable new product varieties (such as Domino’s Brooklyn Style Pizza and Domino’s Oven Baked Sandwiches), complementary side items.

• Expand and optimize domestic store base. Plan to continue expanding base of domestic stores to take advantage of the attractive growth opportunities in U.S. pizza delivery. They believe that scale allows to expand store base with limited marketing, distribution and other incremental infrastructure costs. Additionally, franchise-oriented business model allows to expand store base with limited capital expenditures and working capital requirements. While they plan to expand traditional domestic store base primarily through opening new franchise stores, they will also continually evaluate mix of Companyowned and franchise stores and strategically acquire franchise stores and refranchise Company-owned stores.

• Continue to grow international business. They believe that pizza has global appeal and that there is strong and growing international demand for delivered pizza. They have successfully built a broad international platform, almost exclusively through master franchise model, as evidenced by their 3,726 international stores in more than 60 countries.

13

They have significant long-term growth opportunities in international markets where they have established a leading presence. In their current top ten international markets, believe that store base in total for these ten markets is approximately half of the total long-term potential store base in those markets. Store-level economics of business model, the growing international demand for delivered pizza and the strong global recognition of the Domino’s Pizza brand. International stores have produced positive quarterly same store sales growth for 60 consecutive quarters.

Segment overview It operates in three business segments: • Domestic stores. Domestic stores segment consists of domestic franchise operations, which oversee network of 4,558 franchise stores located in the contiguous United States, and domestic Companyowned store operations, which operate network of 489 Company-owned stores located in United States; • Domestic supply chain. Domestic supply chain segment operates 17 regional dough manufacturing and food supply chain centers, one supply chain center providing equipment and supplies to certain of domestic and international stores and one vegetable processing supply chain center.

• International.

14

International segment oversees network of 3,726 international franchise stores in more than 60 countries. International segment also distributes food to a limited number of markets from six dough manufacturing and supply chain centers in Alaska, Hawaii and Canada (four).

Marketing operations

Domestic stores contribute between 4% to 5% of their retail sales to fund national marketing and advertising campaigns advertising programs. It also contribute to market-level media campaigns. These national and market-level funds are istered by Domino’s National Advertising Fund Inc., or DNAF, not-for-profit advertising subsidiary. The funds remitted to DNAF are used primarily to purchase television advertising. DNAF also provides cost-effective print materials to domestic stores for use in local marketing that reinforce national branding strategy. In addition to the national and marketlevel advertising contributions, domestic stores spend additional amounts on local store marketing, including targeted database mailings, saturation print mailings and community involvement through school and civic organizations. Additionally, we may from time-to-time partner with other organizations in an effort to promote the Domino’s Pizzabrand.By 15

communicating a common brand message at the national, local market and store levels, we create and reinforce appowerful, consistent marketing message toconsumers. This is evidenced by successful previous marketing campaign with the slogan “Get the Door. It’s Domino’s.” and current marketing campaign with the slogan “You Got 30 Minutes.™” Over the past five years, it estimates that domestic stores have invested approximately $1.4 billion on national, local and co-operative advertising.

Third-party suppliers

The active relationships of 15 years or more with more than half of major suppliers. Suppliers are required to meet strict quality standards to ensure food safety. They review and evaluate suppliers’ quality assurance programs through, among other actions, on-site visits, third party audits and product evaluations to ensure compliance with standards. They believe that the length and quality of relationships with suppliers provides them with priority service and quality products at competitive prices.

They currently purchase pizza cheese from a single supplier. In 2007, the Company entered into a new arrangement with this supplier. Under this arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the Company agreed to a five year pricing period during which it agreed to purchase all of its primary pizza cheese for the Company’s United States stores from this supplier or,

16

alternatively, pay to the supplier an amount reflecting any benefit previously received by the Company under the new pricing .

Trademarks

It has many ed trademarks and service marks and believe that the Domino’s mark and Domino’s Pizza names and logos have significant value and are important to business. Its policy is to pursue registration of trademarks and to vigorously oppose the infringement of any of its trademarks. It license the use of ed marks to franchisees through franchise agreements.

Risk Factors

Risks relating to business and industry

1. The pizza category is highly competitive, and such competition could adversely affect operating results. 2. If it fail to successfully implement growth strategy, which includes opening new domestic and international stores, then ability to increase revenues and operating profits could be adversely affected.

17

3. The food service market is affected by consumer preferences and perceptions. Changes in these preferences and perceptions may lessen the demand for products, which would reduce sales and harm business. 4. Increases in food, labor and other costs could adversely affect profitability and operating results. 5. Not having long-term contracts with certain suppliers, and as a result they could seek to significantly increase prices or fail to deliver. 6. Shortages or interruptions in the supply or delivery of fresh food products could adversely affect operating results. 7. Any prolonged disruption in the operations of any of dough manufacturing and supply chain centers could harm business. 8. Loss of key personnel or inability to attract and retain new qualified personnel could hurt business and inhibit ability to operate and grow successfully. 9. International operations subject us to additional risk. Such risks and costs may differ in each country in which we do business, and may cause profitability to decline due to increased costs. 10. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to lower revenues and earnings. 11.Earnings and business growth strategy depends on the success of franchisees, and may be harmed by actions taken by franchisees that are outside of control.

18

INNOVATIONS AUSTRALIAN AND NEW ZEALAND ONLINE SUCCESS Ordering a pizza, pasta or dessert from improved menu has never been so easy. With a click of a button, customers can select from menu, add drinks and sides, pay with cash or credit and watch as their order is made right before their eyes. With signifi cant focus on the technology side of the Domino’s business, have seen some impressive results over the past 12 months.Australia is now averaging more than 23% of orders placed online.

ECLUB DATABASE Brand loyalty has also grown signifi cantly with eClub member database. Each month tens of thousands of people to receive special Domino’s offers and communication direct to their email box. With a database reaching into the hundreds of thousands, weekly Electronic Direct Mail (EDM) pieces have given us the opportunity to target offers to a store’s local area, resulting in greater loyalty. The growth in our eClub database has also enabled Domino’s to drive the creative look and feel of EDMs including personalised CEO letters and themed pieces around new menu items and signifi cant calendar events.

19

ONLINE ADVERTISING Greater integration across all media channels for the new menu launch in February 2009 helped increase Domino’s presence in online advertising which resulted in great profi ling opportunities for online ordering capabilities. All Domino’s banner advertising, including the successful Choc Lava Cake banner, includes a click through function enabling customers to place an order immediately after seeing an online banner.

WEBSITE CREATIVE SUCCESS The Domino’s websites in Australia and New Zealand have undergone vast improvements in the way promotional products are communicated to customers. The most visually-tantalising of these promotions are the ‘over the page’ animations for Choc Lava Cake and Sticky Date Pudding with sauce running down the page when people enter the sites. Creative ideas such as this have helped drive relevant product sales and ticket averages for online ordering.

iPHONE Over the next few months Domino’s will launch a dedicated iPhone application for online ordering.As our customers and the broader Australian market adopt new technologies, Domino’s is committed to ensuring we remain at the forefront with new innovations. The iPhone application will provide customers with greater freedom to order their favourite Domino’s meal wherever they are. This Australian-first for the pizza industry will help drive online business and cement the position as the leading innovator.

20

E-Commerce In 1999, Domino’s Pizza became the first pizza delivery company in the world to offer nation-wide internet and interactive television ordering. Delivered pizza can be ordered via website (www.dominos.co.uk) or via any of the UK’s major interactive TV services.

National Hotline In 2004, Domino’s launched a National Hotline, enabling customers to order pizza from their nearest store, without having to individual store numbers. By dialling 087 12 12 12 12 from a landline, or a previously ed mobile, customers are connected to their nearest store. If their number is not ed, Domino’s Pizza technology will triangulate the customer’s co-ordinates and ask whether they would like to order from their nearest store or request the post code for the store they would like the delivery made to.

21

CARBON FOOTPRINT MEASUREMENT AND MANAGEMENT Domino’s is developing a systematic approach for the measurement of its carbon footprint in Australia. With the impending “carbon constrained economy”, such an approach is crucial in order to meet the challenges that lay ahead for every Australian company. Domino’s is nonetheless determined to meet those challenges because as a responsible corporate citizen it is the right thing to reduce its impact on the environment. Domino’s realised that to develop a verifiable approach for the measurement of its carbon footprint it would need expert assistance. Following a review process, Domino’s selected CarbonSystems Australia to be its sustainability partner to advise and assist Domino’s generally with sustainability matters. Once its carbon footprint is established then Domino’s will have a verifi able baseline against which to manage its carbon emissions and monitor the reduction of those emissions. It is no easy task to assess the carbon footprint of many stores across Australia. Domino’s will be implementing CarbonSystems’ Energy and Carbon Intelligence System (ECIS) which will us in three critical areas: • data collection and management - both the retrieval and collation of historical data to establish baseline reporting, and the implementation of an automated system to ensure that ongoing data collection is timely, complete and accurate; • the establishment of a performance management framework to track energy and carbon reduction initiatives; and • the ability to disseminate information to Domino’s stakeholders in a quick,automated manner. The ECIS will initially cover corporate stores but Domino’s will be working with its franchisees to introduce their stores into the ECIS as well.

22

30 Minute Guarantee: At one point, Domino's Pizza had a guarantee that a customer would receive their pizza within 30 minutes of ordering, or they would receive the pizza free and Domino's still guarantees delivery within 30 minutes, failing which the customer is given his order free of cost.  They does not take order if the customer is calling from distance place where it is impossible to deliver pizza within 30 minutes  If suppose a customer is ordering a pizza cost for Rs. 500 & if they are unable to deliver the pizza within time , suppose they are late for another 6 to 10 minutes , then they give discount of Rs 300 & provide the pizza for Rs 200  They believe in the service called TSG (Total Satisfaction Guarantee)  Free Home delivery of home cooked food in South Delhi. They offer both Non-Veg and Vegetarian home-cooked food for small Get-Together. The Costs are very Reasonable and the foods are Hygienic and Low fat.

23

Innovating the Pizza Delivery Business Throughout the history, in addition to pioneering the concept of efficient delivery of made-to-order pizzas, they have been part of innovations that have made significant impact on the pizza and delivery industries. Here’s a look at some of the innovative thinking:

•

Domino's HeatWave Hot Bag Domino's HeatWave; hot bags were introduced in 1998. Each hot bag contains a patented heating mechanism warmed via electro-magnetic energy. This technology keeps the pizza oven-hot during a normal delivery. The outer material of the bag is made with water-repellent nylon rather than the vinyl material previously used. Inside the bag is 3M Thinsulate insulation, which eliminates unwanted moisture, keeping the pizzas both hot and crisp.

•

A better box Domino's was the innovator behind the sturdy, corrugated pizza box, which keeps moisture from weakening the box, while preventing cheese from sticking to the top during delivery.

•

Car-top sign - in 3-D! Today, it's hard to miss pizza delivery cars -- thanks to Domino's Pizza. Pizza and side order boxes for most of the packaging used by Domino’s Pizza,

Packaging Pizza and side order boxes for most of the packaging used by Domino’s Pizza, although some small items such as dips and desserts are packaged in other materials. This fact sheet focuses on Domino’s Pizza box packaging

24

Design Nearly 38 million pizza boxes are used by Domino’s Pizza in a year, each one bearing the unique Domino’s red, blue and white logo. The most important design elements are those that help keep the pizza oven-hot and fresh. A layer of corrugated paper encapsulated by board forms the main body of the box packaging and provides insulation. Each box is also punctuated with small ventilation holes to allow steam to escape, preventing the pizza from becoming “soggy” .

Recycling & The Environment Minimum of 80% of the corrugated board used for Domino’s Pizza’s box packaging is made from recycled paper. The remaining 20% is made from virgin pulp to increase the board’s strength and this is specially sourced from sustainable forests. Domino’s Pizza box packaging is completely recyclable. There are many recycling points to be found locally and Domino’s encourages customers to take used box packaging to these points for recycling. Alternatively, the Environment department at your local council may provide details of your nearest recycling collection point. Domino’s Pizza stores create hardly any litter. Having said that, team are trained to keep their stores immaculately clean inside and out.

Safety All cardboard used in Domino’s Pizza’s box packaging is accredited as being ‘food-friendly’ by the Food and Drug istration in the USA. and only water-based inks are used to create the distinctive Domino’s Pizza designs that appear on the boxes. All Domino's Pizza boxes are manufactured to British standards BS5750/ISO9000 certificate no: Q06314 and comply with all relevant EU legislation.

25

4 P’s of Marketing: Marketing includes the planning and the implementation of the marketing mix. The marketing mix which is also called the 4 P’s of marketing represents almost all the steps that are involved in the marketing process. 4 P’s of marketing represent product, price, place and promotion. Product: The very brand name “Domino’s” adds value to the products available in the store. The quality and the hygiene of the pizzas and the other add-ons are taken care of by the company or the franchisees by way of training to the employees. Domino’s also takes pride on the innovation of many new products and ideas. Some of these are as follows Double Decadence: Domino’s launched the first Double Decker pizza in the UK. Domino’s Double Decadence is created when two thin and crispy dough bases are sandwiched together with a layer of creamy cheese and herb sauce. The pizza is then topped with vine ripened tomato sauce, mozzarella cheese and the customers; choice of toppings. Virtual Store: To make take home pizza ordering more convenient for the customers, Domino’s has designed an online service which features the customers’ favorites and also the customers can order for pizzas by text message via mobile phones and orders can be placed online. When the order online option is selected, the customer is taken to the order form. And the customers has to enter the postcode of the delivery address and then other delivery details like the phone number and e-mail address has to be entered. Then the customer is taken to another page – the best part of the process – pizza. The customer can select the pizza and the

26

size of it and also the customer has the option to create his/her own pizza and then pay for the food either online using a debit or a credit card or to opt for paying the amount to the person who delivers the pizza. Domino’s Heat wave Bag: Domino’s Heat wave hot bag was introduced in the year 1998. The Hot bags contain a heating mechanism that is warmed by using electromagnetic energy. This technology keeps the pizza oven-hot during the delivery. Price: Domino’s follows a pricing policy that is determined based on the economy of the country. The pricing policy of Domino’s gives a competitive advantage to the company over its competitors. The price discounts available to the customers are used as a tool to attract customers into the store. Domino’s also follows seasonal pricing in order to attract customers and to keep an edge over its competitors. The company also has special discounts on bulk purchases. Place (Distribution Decisions): Domino’s Pizza stores are established in almost 50 countries and they have got more than 8,000 stores worldwide. The Domino’s stores are centrally located and in a manner convenient for the people to walk in and also convenient for the deliverers to do their job. The distribution channel followed by the company is mostly through takeaways, telephone ordering, SMS and online ordering. The pizzas are delivered by way of scooters at their door step. In order to maintain the quality of the pizzas, they are carried in a heat wave bag so that they can deliver hot and tasty pizzas to their customers.

27

Promotion: Pizza order discount: Domino’s offers its customers a number of discount and other promotions on purchasing Domino’s pizza. 

A customer walked out of a Florida Domino’s store with a $10,000 cheque for having

bought the Gotham City Pizza and the promotion was called The Dark Knight Deal. 

The Dark Knight Deal also allows the customers to win Xbox 360 and other gaming

consoles. 

Domino’s pizza has introduced a new value meal called the 444 deal. This 444 value

deal contains three ten-inch pizzas with one topping for $4 each with a minimum number of three orders. 

Dominos also allows its customers to play games by the time their food arrives. There

are actually two games – asteroids and slide puzzle to play.

28

Domino's Pizza SWOT Analysis: Strength • Leading pizza delivery company in the US with more than 5,000 stores in the US • Global franchise operations - more than 3,500 in over 50 countries • Strong brand equity ed by heavy advertising & marketing campaigns • Supply chain & distribution network Weaknesses •

Slow growing and declining same-store sales

•

Weakening bottom line

Opportunities • Growing presence in emerging markets, particularly in India, China • Leverage supply chain & distribution system to introduce new products Threats • Changing consumer habits towards healthier food choices • Franchise operations affected by currency exchange fluctuations • Intensive competition from a fragmented number of small competitors Idea screening: 1) Recover from the negative perception, 2) Build credibility by following up a promise with concrete action, 3) Get a hot, cheesy promotional slice of earned media for being the first major fast food chain to adopt this safety measure.

29

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. Here are the demographic variables have been used to segment markets.

Age: Below 15 years - 0% 15 - 20 years - 20% 21 - 30 years – 40% 31 - 40 years - 25% Above 40 years - 15% 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 preapare food when they are single).

Income – further segment the market based on economic groupings: Income status Upper Class 60% Middle Class 35% 30

Lower class 5%

Occupation self employed (superior level peoples), officers executives, junior officers, Executives.

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.

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.

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. And around 250 outlets in India.

31

Psychographic segmentation -It is the science using psychology to better understand the consumers, and they are trying to sui with local food, and they all ready created the brand name in consumers mind by ment and service i.e. 30 min delivery. Dominos in 2005 takes the Arshad Warsi (circuit) as their brand ambassador. 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. status – Regular Usage rate – Medium Loyalty status – Medium loyal Readiness stage – Intending to buy Attitude toward product – Enthusiastic

32

Some other Special offer in dominos pizzas The Dominos Pizza franchise constantly keeps on inventing ways through which it can make a greater impact on the fast food market. That is how the fast food franchise came up with 'Fun Meal for Four' offer. Through this method, the pizza franchise is able to produce more variety in the food delivered to its customers at their door steps. Through its 'Fun Meal for 4’ pack the Domino’s Pizza India offers four pizzas at the rate of Rs 180. This means charge of one pizza will be just Rs 45. This has helped the speciality food franchise to enhance the strength of its customer base. Yet another strategy employed by the fast food franchise to spread their market is to portray their ments in an old-fashioned background. This quasi-environment is sure to make a positive impact on the semi-urban crowd who are not much familiar with the brand. The speciality food franchise has set apart Rs 50 crore for its promotional activities in 200708. The fast food franchise is willing to work harder in order to improve its growth rate in Indian market. The speciality food franchise expects to increase its pizza delivery at a rate of 45 per cent by the end of the coming financial year.

33

Competitor •

McDonalds

•

Wendy's

•

Papa John's

•

International and California Pizza Kitchen

WHAT MAKES DOMINO’S PIZZA BETTER THAN IT COMPETITORS • Varity of Pizza’s • Good ambience • Services offered • Quality of pizza’s • Location of the Outlet • Waiting time in the outlet • Door step services

34

• Low pricing

NEW PROMOTIONAL ACTIVITY OFFERS BY DOMINOS • With every order of pizza and coke/Garlic breadsticks get a domino’s pasta for Rs. 39 instead of Rs 69. • Pasta is available in 2 variants: cheesy white and tangy red veg Rs 69/- non veg Rs 79/• Get garlic bread for only Rs 30/- with any of the pizza mania combinations. • Dominos start providing coke/fanta/sprite. • Dominos started pizzas mania which start from Rs 35 and we get the toping according to our choice. • Web coupons available at web site www.dominos.co.in • Discounting coupons are being provided with every item purchased. • Suggesting selling at a discounted price • New schemes at regular interval of time according to the taste of the INDIAN customer

SUCCES FACTOR OF DOMINO’S PIZZA • Domino's is a powerful global brand. o "Mega Brand" as defined by Advertising Age o Significant, ongoing investments in advertising result in broad consumer awareness • Domino’s are the #1 pizza delivery company

35

o Largest share of pizza delivery channel o Reinforced by our well-known slogan, "Domino's Pizza: You Got 30 Minutes™ • They have a large and growing international presence. o Operate in over 60 countries • They operate a profitable, value-added supply chain system. • Domino’s leadership team has a track record of success.

36

CONCLUSION It has successfully established its market because of Their best services  Employee's behavior  Localizing the menu  Pricing strategy  Delivery System  Advertising strategy

37