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Service Marketing Project Group 6 Samir Parikh Sanam Seth Saurabh Arya Shalaka Kaprekar Shubham Bhakarh

Domino's Service Model

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A presentation on the service aspect of Domino's pizza ..

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Page 1: Domino's Service Model

Service Marketing Project

Group 6Samir ParikhSanam Seth

Saurabh AryaShalaka KaprekarShubham Bhakarh

Page 2: Domino's Service Model

HistoryIn 1960, Tom Monaghan, along with his brother James, bought “DomiNick’s” Pizza in Ypsilanti, Michigan, for $500, which he borrowed and with a down payment of $75.

The next year, Tom traded his brother a Volkswagen Beetle for his half of the company share.

As sole owner of the company, Monaghan renamed the business Domino's Pizza, Inc. in 1965.

In 1967, the first Domino's Pizza franchise store opened in Ypsilanti.

Bankruptcy would have been easier but it wasn’t in my vocabulary.

-Tom Monaghan, Founder of Domino’s

Page 3: Domino's Service Model

Conti…On May 12, 1983, Domino's opened its first international store, in Winnipeg, Canada.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.

Domino’sHeadquar

ter

Page 4: Domino's Service Model

Franchise ChainDomino’s Pizza Inc.(the brand owner)

Domino’s UK & IRL Plc.

Domino’s Pizza Group Ltd(master franchise)

Domino's Pizza Enterprises

AustraliaSouth KoreaNew ZealandFranceBelgiumNetherlandsPrincipality of Monaco

Jubilant Food Works Ltd (Previously

Domino’s Pizza India Ltd)

IndiaNepalSri LankaBangladesh

Page 5: Domino's Service Model

Domino’s in India

Prior to Sep 24, 2009, the company was known as Domino’s Pizza India Limited

Jubilant Food Works Limited holds the Master Franchisee Rights thereafter

First store in India in January 1996, at New Delhi

30th Sep, 2011

Page 6: Domino's Service Model

VISION

Exceptional people on a mission, to be the best pizza delivery company in the world

GOAL

Customer for life

Increase the number of customers

Page 7: Domino's Service Model

Mission

Khushiyon KiHome

Delivery

Page 8: Domino's Service Model

Market share of domino’s

• 51% Dominos

• 21% pizza hut

• 23% mc donald

• 5% others

Page 9: Domino's Service Model

MAJOR PLAYERS

Page 10: Domino's Service Model

7 P’s of Domino’s

Page 11: Domino's Service Model

PRODUCT

Domino’s also takes pride on the innovation of many new products and ideas. Some of these are as follows:

Pizzas Pastas Breadsticks Cheese Dips Beverages Chocolava

Page 12: Domino's Service Model

PRICE

• General perception prevails that pizza prices are expensive and cannot be afforded by many.

• Domino’s also provide lots of offers and deals that give your much discounted pizza prices.

• First off, customers can get Pizza mania pizzas for prices as low as Rs. 39/- which no other pizza chain offers in the country. The regular size Simply Veg pizzas start from Rs. 60/- onwards and they have pizzas up to around Rs. 400/-

Page 13: Domino's Service Model
Page 14: Domino's Service Model

PLACE

• 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

Page 15: Domino's Service Model

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.

• 444 deal• Dominos also allows its customers to play games by the

time their food arrives. • Dominos started providing coke/fanta/sprite.

Page 16: Domino's Service Model

• 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

Page 17: Domino's Service Model

Sales from apps are approaching $140 million per year, or about 5 percent of Domino’s top line

Page 18: Domino's Service Model

PEOPLE

• Recruiting young, enthusiastic and dedicated employees.

• Appropriately trained for delivering the service.

• Personality development and grooming sessions.

• Provide them with various facilities such as medical help, consultation, traveling facilities, perks and bonuses

• Team members are recognized and rewarded based on ability and merit for their contributions

Page 19: Domino's Service Model

PROCESS

• Self service system. • Hungry hotline facility. • Keep in mind the health and hygiene. • Domino’s Pizza India also boasts about its commitment to

serve its customers on time by implementing the “30 MINUTES OR FREE” service commitment.

• Domino's constantly strives to develop products that suit the tastes of its customers,

• Domino's believes strongly in the strategy of 'Think local and act regional'.

Page 20: Domino's Service Model

PHYSICAL EVIDENCE

•Logo •Sample parking space. •Good infrastructure. •Use of modern technology equipments. •Clean and friendly services.

Page 21: Domino's Service Model

Blueprint And GAPS Model

Page 22: Domino's Service Model

Physical Evidence

Dominos Pizza Logo

CustomerAction

Enter the Restaurant

Customer placesThe order

Front stageCustomerAction

Greeted byAttendant at the counter

Menu Card,Discount deals

Attendant takes The order details And customer information

Back stageCustomerAction

Customer details stored in the computer systemAnd order placed for the pizza

Support Actions

Takes the order, prepares the pizza,Packages the pizza

Places it at counter to the attendant

Provides customer with payment details and token no.

Customer makes payment and waits for turn

Seating arrangements

Delivers pizza to customer as per token number and preference

Customer takes pizza and eats it or takeaway

Pizza package, aroma and warmth

The Service Blueprint

Line of interaction

Line of visibility

Line of internal interaction

Page 23: Domino's Service Model

Slow/ inefficient Service

Expected Delivery Time/ Expected toppings on Pizza

CUSTOMER

COMPANY

CustomerGap

Gap 1

Gap 2

Gap 3

Lowers customer expectation with taxes/ conditionsGap 4

Conditional discount offers

Delivery by frontline employees to customers

Lack of satisfaction with delivery of pizza, order or billing

GAPS Model

Page 24: Domino's Service Model

Seven Service Quality Gaps

Switch to competitors,

1. Knowledge Gap

2. Standards Gap

3. Delivery Gap

5. Perceptions Gap

7. Service Gap

Taste, price, time expectations

6. Interpretation Gap

4. Internal Communications Gap

MANAGEMENT

CUSTOMER

4.

Unaware about ingredients

Misconceptions, lack of suggestions

Mismanaged queue system, delivery lagging

Undertrained attenders, order takers

Exclusion of mention of additional cost in case of offers

Unempathetic behavior, unavailable on phone

Page 25: Domino's Service Model

RATER’S MODEL

Page 26: Domino's Service Model

Switch to CompetitionDissatisfaction

Failure in oven equipments

Late food preparation

Absence of pizza baker and other personnels

Incomplete information on deals

Underequipped branch

Delayed order taking, Delay in entering or registering data in the system

Facilities, Equipment

Lack of sufficientService personnels To meet the customer needs

Customers above capacity

Front stage Personnel

Procedure

Materials, Supplies

BackstagePersonnel

Information

Customers

Other Causes

Electricity Failure

Unavailable toppings, base

Fishbone Diagram

Page 27: Domino's Service Model

Reliability

The order was

delivered in the time

limit promised.

1 2 3 4 5 6 7

The pizza was hot and fresh. 1 2 3

4 5 6 7

The bill is free of errors.

1 2 3 4 5 6 7

4. Late delivery was compensated. 1 2 3 4 5 6

7

Page 28: Domino's Service Model

Assurance

New discounts schemes were told before the

order was placed.

1 2 3 4 5 6 7

The delivery boy had change.

1 2 3 4 5 6 7

The order was placed with out

fumbling around. 1 2 3

4 5 6 7 The delivery boy was polite 1 2 3 4 5 6 7

The employees were aware of the menu they had 12 3 45 6 7

Page 29: Domino's Service Model

Tangiability

The restaurant was clean

and hygienic 1 2 3 4 5

6 7

The order was not

damaged on delivery

1 2 3 4 5 6 7

The perfect delivery of the order

was made. 1 2 3 4 5

6 7

The food was still hot on delivery.

1 2 3 4 5 6 7

The bill is provided

after every order.

1 2 3 4 5 6 7

Page 30: Domino's Service Model

Empathy

The order was placed

easily without any

communication problems.

1 2 3 4 5 6 7

The call is greeted

politely 1 2 3 4 5 6 7

The telephone operator is courteous.

1 2 3 4 5 6 7

The staff was helpful in handeling

complaints 1 2 3 4 5 6

7

Page 31: Domino's Service Model

Reassurance

The complaints were handled and solved in

time .1 2 3 4 5 6

7

The order was delivered

within the time limit

1 2 3 4 5 6 7

The order progress was shown online. 1 2 3 4 5 6

7

The order is delivered

before time 1 2 3 4 5 6 7

The line is available to

place the order 1 2 3 45 6 7

Page 32: Domino's Service Model

Domino’s CRM

Page 33: Domino's Service Model

Objectives of CRM• Improving customer experience• Increase customer satisfaction to

100%• Maximum respect for the customer• To gain highest possible customer

loyalty• To try to retain 100% customers• Innovate ways that matter to the

customers as well as the team members.

Page 34: Domino's Service Model

CRM Strategies• Discount Coupons/Menu

delivery• Clearly defined and

communicated service delivery standards

• New online order concept• 30 min or free guarantee• Frequent reminders

Page 35: Domino's Service Model

Contd…• Empowering the customer so

that he/she could create his/her own product

• Well targeted advertisements and promotions

• Good database management• Feedbacks/Queries/

Complaints• Impressive menu with

different price ranges.

Page 36: Domino's Service Model

Demand and Capacity• Well designed service

blueprint, fast processing• Scattered store locations over

the city help them to match demand

• Numerous stores(500) and riders, quick preparation

• Festive days and game days – High Demand

• At the time of placing order, they mention possible delay

Page 37: Domino's Service Model

SERVICE GUARANTEES

Page 38: Domino's Service Model

30 MINUTES DELIVERY SERVICE GUARANTEE

•The very popular 30 minute service guarantee of Domino’s

Page 39: Domino's Service Model

• Started in 1973• Price paid for this

guarantee• The guarantee

was dropped in 1993

• However, in India this guarantee continued.

• Marketing move : “All the rush is within our store and never on the road”

Page 40: Domino's Service Model

Domino's HeatWave Hot Bag

• Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during normal delivery.

• Domino’s has continued to innovate and evolve the technology

Page 41: Domino's Service Model

SERVICE RECOVERY STRATEGY

• Service recovery is the action initiated by the service provider in response to a service failure.

• Service failure in Domino’s• Feedback form• During the ETP, employees are trained how to act in

situations of service failures to recover the customer and not affect the brand name.

SERVICE RECOVERY STRATEGY

Page 42: Domino's Service Model

Conclusion

• Meets the need of a systematic and well defined service, covering majority of the factors.

• Try to focus on tangible (place) aspect; though main focus on home delivery.

• Promotions widespread- reaching out offers to all the public.

• Location reach out is widespread.• Health conscious people- make use of calorie-controlled

ingredients and introduce a little healthier version of pizzas, due to the shift.

• Appealing brand positioning-▫ Think global and actlocal▫ Khushiyon ki Home Delivery´▫ Hungry kya?