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A RESEARCH REPORT On A STUDY ON CONSUMER’S PERCEPTION TOWARDS DOMINO’S PIZZA” Submitted in partial fulfillment for the award of degree Of MASTER OF BUSINESS ADMINISTRATION CHHATTISGARH SWAMI VIVEKANANDA TECHNICAL UNIVERSITY BHILAI SUBMITTED TO SUBMITTE BY MR PRAFUL BHUSARI SABAKARDAR M.B.A SEM-II ROLL-NO- 4220

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Page 1: DOMINO’S PIZZA

A

RESEARCH REPORT

On

“A STUDY ON CONSUMER’S PERCEPTION

TOWARDS DOMINO’S PIZZA”

Submitted in partial fulfillment for the award of degreeOf

MASTER OF BUSINESS ADMINISTRATIONCHHATTISGARH SWAMI VIVEKANANDA TECHNICAL

UNIVERSITY BHILAI SUBMITTED TO SUBMITTE BYMR PRAFUL BHUSARI SABAKARDAR M.B.A SEM-II

ROLL-NO-4220

DEPARTMENT OF MANAGEMENTRUNGTA INSTITUTE OF ENGINEERING & TECHNOLOGY

Approved by AICTE, New DelhiKohka-Kurud Road, Bhilai-490024, (C.G.)

2009-11

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DECLARATION

I, SABA KARDAR student of M.B.A-IInd semester 2009-2010 at RUNGTA

COLLEGE OF ENGINEERING AND TECHNOLOGY here by declare that this

Project Report under the title of “A STUDY ON CONSUMER’S

PERCEPTION TOWARDS DOMINO’S PIZZA ” of the original work under

the guidance of Prafful bhusari Sir (faculty) Department of M.B.A RCET

Bhilai . This report has never been submitted to anywhere else for award of any

degree or diploma.

Place: Bhilai SABA KARDAR M.B.A (2nd Sem)

Date:23-3-2010 RCET, Bhilai

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CERTIFICATE

This is to certify that the project work done on “A study of consumer’s

perception towards domino’s pizza ” submitted to rungta college of

engineering & technology, Bhilai by saba kardar in partial fulfilment of the

requirement for the award of Masters degree in Business Administration is a

bonafide work carried out by her under my guidance. This work has not been

submitted anywhere else for any other degree /diploma.

Place: Bhilai

Date: 23-3-2010 RCET, Bhilai

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EXECUTIVE SUMMARY

The project reports on “A study on consumer’s perception towards domino’s

pizza ”. The purpose behind the research report is to get an exposure of the

corporate world as well as the culture by getting associated with the research. This

research makes customers to get the information about Domino’s pizza . If this

reports to be fruitful to anybody / any organization by any means, I will consider

my work worthwhile. This research helps in understanding the practical

applicability, which is a part from theoretical concept. Finally the findings records

and suggestions are complied.

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ACKNOWLEDGEMENT

If I say that this project has been a result of only and only my hard work, I

would be wrong. It has taken the hard work and blessings of many to complete

project. Any single person can’t do such Himalayan task alone it need cooperation

of many people and I have been fortunate enough as I got help from my related

authority.

I am glad to offer my prime sense gratitude to Praful Bhusari Sir who

shared his valuable time for me. He gave me a few drops from his ocean of

knowledge. I would like to thank him whole-heartedly.

I am depth to the entire respondent who sacrificed there time and willingly

discussed with me a Varity of issue related with the subject.

Place: Bhilai saba kardar

Date: 23-3-2010 M.B.A. IInd Semester

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CONTENTS

CHAPTER No.Topic Page No.

Chapter-1 INTRODUCTION

Chapter-2 BRIEF OVERVIEW OF THE PROJECT

OBJECTIVES

Chapter-3 RESEARCH METHODOLOGY

Chapter-4LITERATURE REVIEW

Chapter-5DATA INTERPRETATION

Chapter-6TESTING OF HYPOTHESIS

Chapter-7LIMITATION

Chapter-8FINDINGS

Chapter-9SUGGESTIONS & RECOMMENDATIONS

Chapter-10CONCLUSION

Chapter-11BIBLIOGRAPHY

Chapter-12ANNEXURE

QUESTIONNAIRE

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CHAPTER : 1

1 . INTRODUCTION

This research is based on customers perception on domino’s pizza and to test the quality of

service . The fast food industry of India is experiencing phenomenal growth and is one

of the fastest growing sectors in the country , Further, on the back of changing and busy lifestyle, fast emerging

middle class population and the industry will continue to grow at a pace in coming years.

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 fast food industries are changing the way people eat. People buy fast food

because it is cheap, easy to prepare, and heavily promoted and it becomes most favourate to

youths. This research aims at providing information about fast food

industry, its trend, reason for its emergence and several other factors that are responsible for its

growth. This report provides extensive research and rational analysis on the Indian fast

food industry and about the changing trends in market. The research study looks into the

market condition and future forecasts, and outlines of current trends and analyses.

This research has been made to help clients in analyzing the

opportunities, challenges and drivers vital to the growth of fast food industry in India

and basically in durg bhilai region.

For the purpose of this research Fast Food Industry includes fast

food restaurants, teahouses, coffee shops and juice bars in India.

The 6000 corer fast food retail industry is mainly dominated by

the multinational players and the key players which are active in the research of the

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food retailing include:

Dominos

Domino's vision is focused on “Exceptional people on a mission to be the best pizza delivery

company in the world ! .” Domino's is committed to bringing fun and excitement to the

lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or

less, and all its strategies are aimed at fulfilling this commitment towards its large and

ever -growing customers .

Domino's constantly strives to develop products that suit the

tastes of its customers, thereby bringing out the Wow effect (the feel good factor).

Domino's believes strongly in the strategy of 'Think local and act regional'. Thus, time

and again Domino's has been innovating toppings suitable to the taste buds of the local

people and the Indian market has very well accepted these.

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Company Overview

DMP is a quick- service pizza franchise with more than 750 stores across

Australia, New Zealand, France, Belgium and the Netherlands . DMP holds

the exclusive master franchise rights for the Domino's brand in these countries and

also in Monaco. The Domino's brand is owned by Domino's Pizza Inc, a listed US

company. DMP is the largest quick-service pizza franchise in Australia by

network stores and sales and the largest franchisee for the Domino's Pizza brand

in the world outside of the US and in India also.

HISTORY

Domino's Pizza began with one store in Ypsilanti, Michigan on December 9,

1960. Its owner, Thomas S. Monaghan, was a 23 –year –old with his brother

James, he bought an existing pizza store called Dominick's Pizza. His

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partnership with his brother was dissolved in 1961, By1965, Monaghan own

three stores and officially changed the company name to Domino's Pizza.

Inc. A pioneer and innovator in the pizza delivery industry, Monaghan

continuously looked for better and faster ways to handle the rush. He

developed a fast pizza -making method and an efficient order taking system.

From the moment the phone rang to the time the pizza was delivered to

the customer's door, "Never get behind" was the operating motto.

He continued to emphasis the Domino's system of simplicity and speed.

Monaghan also implemented the "Manager of the Year" award, a national

honor presented to the company's best store crew chief They had the

opportunity to advance through the ranks to become a store manager or

even a franchisee. In 1983 the company celebrated the opening of its

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first international store in Winnipeg, Canada. Domino's Pizza International, which

Monaghan called the company's “hope for the future”. By 1989 Domino's had

opened its 5000th store.By 1992 the international division had opened its 500th

store outside the United States. The domestic market continued to grow with the

introduction of innovative variations to the original pizza recipe as well as creative

up-sell items. So he sold Domino's Pizza to Bain Capital, an organization with a

proven track record of identifying companies with significant growth potential

and steering them to achieve that potential.

CHAPTER : 2

OBJECTIVE

1 To know the consumer’s satisfaction level towards domino’s pizza.

2 To know the difficulties face by domino’s pizza customers.

3 To get overall idea of the recent development in pizza industry.

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CHAPTER : 3

RESEARCH METHODOLOGY

RESEARCH DESIGN

I prefered 50 respondents as sample size in Bhilai.

Descriptive research was adopted.

RESEARCH METHODS

I will prefer interview and filling of questionnaire to ensure and encourage frank

responses to the questions. While framing a questionnaire I will try to list a series of questions,

which can provide me the needed information. For study purpose I also keep in mind the

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respondents understanding capacity, ability to recall the information and his experience limits. I

will not include those questions, which can have misconceptions and promote non-co-operation.

SOURCE OF DATA

Source of data is classified in to two categories:

1. Primary data

2. Secondary data

PRIMARY DATA

Primary data do not exist in records and publication. The researcher has to gather primary data a

fresh for the specific study under taken by him. Market researchers are interested in primary

data about demographic/ socio economic characteristics, attitude / opinions / interests,

motivation and behavior. Three basic means of primary data:

1. Observation

2. Survey

3. Experiment

SECONDARY DATA

The data referred to those, which gathered for some other purpose and are already available in

the firm initial records and commercial, trade or government publications are secondary data.

Sources of secondary data:

1. Published of secondary data.

2. Government publication.

3. Specialized libraries

4. General library research sources

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Sample Size:

I used 50 respondents for my research report.

METHOD OF DATA COLLECTION:

For getting the results of my research I used method which is questionnaire method that is under

primary data.

A questionnaire (also known as self-administered survey) is a type of statistical survey handed

out in paper form usually to a specific demographic to gather information in order to provide

better service or goods. The questionnaire was invented by Sir Francis Galton.

Questionnaires have advantages over some other types of surveys in that they are cheap,

do not require as much effort from the questioner as verbal or telephone surveys, and

often have standardized answers that make it simple to compile data. However, such

standardized answers may frustrate users. Questionnaires are also sharply limited by the

fact that respondents must be able to read the questions and respond to them. Thus, for

some

Demographic groups conducting a survey by questionnaire may not be practical.

A questionnaire consists of many types of questions, like direct question, indirect

question, open-ended question (free answer question), and close ended question. In this

report open and close-ended questions are used. The method was discussed questioning.

Each person was asked a set of question in given order and answer is limited to a list of

alternative. The studies are descriptive in nature. It is connected to study the present state

of affair as it exists. The open study tries to explore the system at present and report on

it.

Why questionnaire methods has been adopted

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1. It is versatile

2. Ideas related to the problem and its solution can be find by asking the people involved in

various industries.

3. Knowledge, opinions, and intention of people involved can be easily founded.

4. It is usually faster and cheaper than other methods.

It involves control over the data gathering activities as compare to other method

CHAPTER : 4

LITERATURE REVIEW

I. Domino’s Pizza Since 1960 when Domino’s was associated with only one store, the company

has grown to provide a variety of quickly-delivered hot food items to customers on every

continent . The company prides itself for its innovation of items in pizza and speediness of

delivery . The company now uses franchise in all over the world.

In the following study , I will analyse the Journal done by “Anita goyal ,N.P Singh

”(2007 ,by british food journal )(cited on 2 – march -2010 ) Tittle : consumer perception about

fast food in india . he founded that most of the young generation of india prefer fast food outlet

just for fun & change because ,they have highest value for taste & quality .

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So, according to the article it presents an idea that Indian young generation likes

homemade products and they are hygiene conscious also that’s why they prefer homemade items

but go domino’s only for outing and just for fun. In addition, I had analysed the recently

publicized YouTube video of two Domino’s employees performing disgusting acts on food that

would be delivered to customers (Levick, 2009).

II. Customer Needs The most basic element of Domino’s marketing mix relies on the

understanding of the needs and wants of the customer. They recognize that the customer wants

the right pizza delivered to their door within a short period of time and while still hot. Families

are now defined by much more than a father, mother, and two children; more members of the

family work full-time. For these reasons and other cultural shifts, there has been a move toward

consumer demand for fast, easy, and prepared foods. The core benefit sought from this

combination of pizza product and delivery service is convenience, which Domino’s has

recognized and strives to provide for customers. In another journal done by Jagwinder

singh ,B.B Goyal (2008 ,by journalof strategic marketing ) (cited on 20-march-2010 ) Tittle :

comparative analysis of rural & urban Indian consumer’s attitude towards foreign products ,

he founded out that rural consumers were found more impressed by the foreign products as

compare to the urban peoples because rural people thinks that foreign products are of good

quality ,sign of prestige and a wide choice of models they found and a wide choice of models

they found there and urban people are very price conscious and always take decision after

analyzing the product.

So, according to the article ; Indian producers in the coming

times are going to face a very strong threat from foreign brands ,particularly in consumer durable

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category because india is one of the most promising & fastest growing economy of the world and

in india there is a huge potential of rural peoples.

III. Services : Domino’s and other fast-food providers are increasingly recognizing the need to

provide outstanding customer service in addition to the food products in order to build a loyal

and satisfied customer base . This means that Domino’s employees must provide a pleasant

experience for customers and demonstrate their willingness to exceed expectations if Domino’s

is to be the distinguished pizza delivery company. This guideline, in addition to the expectation

that employees are patient, polite, and treat customers with respect refers to the service quality

This is the actual service delivery and the company must recognize and close the gap between

the delivery and service quality specifications so that the perceived service provision meets

expected service . By observed journal done by Raffio,R (2007, by Restaurant Business ) (cited

on 12-march 2010 )

Tittle : Domino’s pizza ,he found that domino’s is now the second largest chain in the country

valued at over $ 200 million & with sales of $ 400 million . Its growth rate has been

phenomenal and 1000 units were added to the now 1200 unit chain in the past 5 years.

Therefore , according to the article ; Domino’s has succeeded in recovering from

such disaster and in building up such a profitable business . It also looks at how the pizza chain

is run today , its policies and strategy for growth and the fast food chain may become public

company in near future.

In another article I had observed that the journal done by (Pratscher.M) (cited

on 19 – march -2010 ) Tittle : can domino’s dominate the pizza market ? he found that

although there was widespread diversification throughout the fast food business . Domino’s

pizza is the most popular and fastest growing food service segment ,but also takeout and

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delivery sales in general are predicted to triple over the next decade .Domino’s success can be

attributed to a variety of factors such as an extensive training programme , incentive awards

and that’s why there is huge scope in fast food industry.

IV. People in Services : to provide excellent service, organizations must understand that they

must focus on their front-line employees and management first. This involves hiring the right

people who fit the company culture and are service-oriented; training them and providing them

with the right tools to serve the customer; and retaining those people as satisfied and engaged

employees ..

By analysis of the journal done by Minni Jaitly (technical director , Midas food

international ) (cited on 14- march -2010) Tittle : current trends in the foodservice sector in

the Indian subcontinent .

according to the article india has diversified culture and its own unique food preferences.

Although Indian culture is largely associated with the pronounced use of some key

ingredients and spices, differences in region, culture, climate. India is rapidly becoming a

key market for consumer goods and processed foods. Indian have very busy lifestyle,

heightened awareness, and a desire to imitate the West makes India a very suitable market for

prepared foods. Most the fast food chains like Pizza Hut, McDonald's, Domino's Pizza, kfc etc.

Even the government has recognized the potential of the processed food industry and has

declared food processing a major thrust area. This means that there will be subsidies from the

government as well as important tax benefits. But before developing food for the Indian market,

it is important to understand the traditional influences and key flavors of Indian food to

successfully merge Western trends with Indian flavors.

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CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

1.How many times you had visited domino’s ?

a) one time b) two time c) three times d) more than three times

Response No of response No of response in %one time 10 33two times 15 50three times 3 10

More than three times 2 7

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33%

50%

10%

7%

RESPONSEone time two times three times more than three times

INTERPRETATION : 33 %respondents visited one time ,50 % respondent visited two times ,10% respondent visited three times ,7 % visited more than three times in domino’s.

2.Which item do you likes most in domino’s ?

a) pizza b) pasta c) chicken wings d) garlic breadsticks

e) choco lava cake

Response No of response No of response in %Pizza 12 40Pasta 5 17Chicken wings 7 23Garlic bread sticks 2 7Choco lava cake 4 13

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pizza40%

pasta17%

chicken wings23%

garlic bread sticks7%

choco lava cake13%

response

INTERPRETATIION : 40% respondent likes pizza, 17% respondent likes pasta ,23% respondent likes chicken wings ,7% respondent likes garlic bread sticks,13 % respondent likes chocolava cake.

3.If pizza then :

a) Veg pizza b) non veg pizza c) feast pizza

Response No of response No of response in %Veg pizza 10 33

Non veg pizza 15 50

Feast pizza 5 17

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veg pizza33%

non veg pizza50%

feast pizza17%

response

INTERPRETATION : 33% respondent like veg pizza, 50% respondent like non veg pizza, 17% respondent like feast pizza.

4. In your opinion the speediness of the service of domino’s is?

a) good b) better c) best d) worst

response No. of response No. of response in %Good 17 57Better 5 16Best 3 10Worst 5 17

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goood57%

better17%

best10%

worst17%

response

INTERPRETATION :57 % respondent says good ,16% respondent says

better,10% respondent says best,17% respondent says worst.

5 . Do advertisements of domino’s influence you ?

a)YES b) NO

response No. of response No. of response in %Yes 18 60No 12 40

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yes60%

no40%

response

INTERPRETARION : 60% respondent says yes , 40% respondent says no .

6.About the home delivery service of domino’s ?

Response No . of resoponse No of response in %Good 15 50Better 10 33best 5 17

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good better best0

2

4

6

8

10

12

14

16

Chart Title

INTERPRITATION : 50% respondent says good, 33% respondent says better,17% respondent says best.

7. The discount coupons provided by domino’s is useful or not ?

Response No. of response No. of response in%Useful 12 40Not useful 15 50Can’t say 3 10

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useful40%

notuseful50%

can't say10%

response

INTERPRITATION : 40% respondent says that useful,50% respondent says that not useful,10% respondent says that can’t say.

8.What do you like to say about the price of domino’s items ?

Response No. of response No. of response in %Low price 3 10Medium price 8 27High price 19 63

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low price10%

medium price27%

high price63%

Sales

INTERPRETATION : 63% respondent says high price,27% respondent

says medium price,10% respondent saysthe price is low

9.Are you satisfied with domino’s ?

a)YES b) NO

response No. of response No. of response in %Yes 15 50No 10 33Can’t say 5 17

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yes no can't say0

2

4

6

8

10

12

14

16

INTERPRITATION : 50 % respondent says yes , 33% respondent says no,17% respondent gives no response .

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CHAPTER -6

HYPOTHESIS TESTING Hypothesis testing

Hypothesis testing is the often used strategy for deciding whether a sample data offer

such support for a hypothesis that generalization can be made. Hypothesis testing enables us to

make probability statements about population parameter(s). The hypothesis may not be proved

absolutely, but in practice it is accepted if it has withstood a critical testing .

Test adopted : t – test

TEST APPLIED : t - TEST

t – test is based on the normal probability distribution and is used for judging the significance of

several statically measures, particularly the mean. The relevant test statistic, t, is worked out and

compared with its probable value at a specified level of significance when the sample size is less

than 30 and it is used for judging the significance of the measure concerned. This is most

frequently used test in research studies.

TESTING FOR EXECUTIVES DATA:

Formula of “t” test

t = x−μ

σ /√n

X=mean

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μ=¿ mean population

S.D. = standard deviation

n = sample size

s.no xi Xi-x ¿

1. 15 - 1 1

2. 12 - 4 16

3. 15 - 1 1

4. 17 1 1

5. 18 2 4

6. 15 - 1 1

7. 15 - 1 1

8. 19 3 9

9. 15 - 1 1

TOTAL 141 35

n= 30

x=1419

=15.66∨16

μ=¿ 18 ( Assumed mean )

S.D.=√ ¿

= √35/9−1

=√35/8

=√4 .375

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=2.09

Z= x−μσ /√ n

=16−18

2.09 /√ 9

=−2

2.09/3

= I- 2.87I

= 2.87

5% level of significance

Critical value – 1.860

The null hypothesis is that consumers are satisfied with Domino’ s and alternative is that

consumer’s are not satisfied with Domino’s . So we can calculate the value of t-test and in the

critical value is less than the calculated value(critical value 1.860 and calculated value is 2.87 )

so the null hypothesis is rejected and alternative hypothesis is accepted .

That means consumers are not satisfied with domino’s pizza

CHAPTER : 7

LIMITATION

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1. Sample Size Due to vast area the consumers sample size is restricted.

2. Limitation of response The response given to the researchers were not always Accurate since preference is qualitative indicator the Respondents regarding their understanding of Preference.

3. Limitation of bias Generally respondents are based to the question raised, Thus the result of research will have error and the very Purpose of marketing research is lost.Therefore took Ulmost care while dealing with respondent.

4. Limitation of human behavior Researches studies the behavior that is rational. Very Often, they do not express their feeling correctly what They think. In such cases their habitual, practice Preferences cannot be assessed correctly.

5. Limitation of time The given time is not sufficient for this study.

CHAPTER – 8

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FINDINGS

On the basis of data analysis and interpretation researcher has reached to the finding of study.

Which are as following:-

1 . 27 are female respondents & 23 are male respondents.

2 . These results as the male are leading the sample and female showed less interest in

participating in the study;

3. The 20 - 30 Age-group person more visited Pizza outlets (57 person.)·

4. In occupation side : - More students visited Domino’s only for fun and for time pass

5 . It is found that 100% of the respondents are aware of Domino’s pizza.

6. Most of the respondents were think that discount coupons are not useful because

coupons are valid only for limited days .

7. It is found that the respondent find Domino’s pizza is at convenient location.

8 .It is found that the respondents not like the quality of pizza .

9.It is found that most of the respondents are not completely satisfied with the Domino’s

pizza .

CHAPTER : 9

SUGGESTION AND RECOMMENDATION

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As the world is survival of the fittest, so the Domino’s have to be competitive in market for

their own establishment.

The Domino’s should increase its quality .

The Domino’s should provide good customer services and facility.

The Domino’s should reduce its charges .

The Domino’s should give more discount coupons .

The Domino’s have to expand its delivery area .

Domino’s should improve the quality of the Pizza’s and increase the visibility in the

market, & Should try to regain the trust of the Customer regarding its Door steps

services.

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CHAPTER- 10

CONCLUSION

From the study of this survey we find that :

The Domino’s pizza is having good concept in present market and new product in

Chattisgarh region .

The preferences of the people for Pizza are only for outing and just for fun .

Males are more attracted towards Domino’s pizza due to good ambiances and freshness’

rather than women’s.

The female respondents are more attracted towards pizza and males are not responding

like as female

The quality of Domino’s Pizza is not very good .

The study also shows that the durg –bhilai customers are not price sensitive when they

get good product, quality and services. Mostly people are attracted towards new

products in market .

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CHAPTER - 11

BIBLIOGRAPHY 1.C . R . KOTHARI

2. www.google.com

3.www. Dominos.com.

4.www.emeraldinsight.com.

5.www.pristinecareers.com .

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CHAPTER – 12

ANNEXURE

QUESTIONNARIE :

1 . Tick the appropriate answer :

Gender

a) Male b) female

Age group

a) 10 – 20 b) 20 -30 c) 30 – 40 d) 40 - 50

From which area do you belong (please fill in space)

--------------------------------------------------------

How many times you had visited domino’s ?

b) one time b) two time c) three times d) more than three times

Which item do you likes most in domino’s ?

b) pizza b) pasta c) chicken wings d) garlic breadsticks

e) choco lava cake

If pizza then :

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b) Veg pizza b) non veg pizza c) feast pizza

If veg pizza then among these you like most :

o Margherita pizza

o Cheese and tomato pizza

o Double chesse margherita pizza

o Fresh veggie pizza

o Country special pizza

o Farm house pizza

o Peppy paneer pizza

o Mexican green wave pizza

o Deulex veggie pizza

o Gourmet pizza

If non veg pizza then among these you like most :

o Cheese and barbeque chicken pizza

o Onion and barbeque chicken pizza

o Chicken Mexican red wave pizza

o Keema do pyaaza pizza

o Chicken golden delight pizza

If feast pizza then among these you like most :

o Veg extravaganza pizza

o Meatzaa pizza

o Non veg extravaganza

o Cheese & pepperoni pizza

In your opinion the speediness of the service of domino’s is?

b) good b) better c) best d) worst

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Do advertisements of domino’s influence you ?

a)YES b) NO

1 . Please give your opinion :

About the home delivery of domino’s ?

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The discount coupons provided by domino’s is useful or not ?

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What do you like to say about the price of domino’s items ?

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Any new type of topping do you want to suggest to domino’s ?

-------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------

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Any type of modification do you like to suggest to domino’s ?

--------------------------------------------------------------------------------------

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Any type of difficulties face by you in domino’s ?

------------------------------------------------------------------------------------

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Are you satisfied with domino’s :(tick the option below)

a)YES b) NO c) can’t say