History
Domino's Pizzais an Americanrestaurantchain and internationalfranchisepizza deliverycorporation headquartered at the Domino Farms Office Park (the campus being owned by Domino's Pizza co-founderTom Monaghan) inAnn Arbor Charter Township, Michigan, United States, nearAnn Arbor, Michigan.Founded in 1960, Domino's is the second-largest pizza chain in the United States (afterPizza Hut)and the largest worldwide, with more than 10,000 corporate andfranchisedstoresin 70 countries.Domino's Pizza was sold toBain Capitalin 1998 and went public in 2004.
Franchise Model
Outside of the U.S., Dominos used a master franchisee model that differed significantly from the U.S. franchise system. Under this system, a master franchisee was granted exclusive ownership rights over the stores and the supply chain system for a country, region, or number of countries.
Operations Strategy
Dominosis one the leading pizza delivery companies globally. The Companyhas a unique business and operationmodel and is a pioneering the fast food industry. Since 1960, Dominos Pizzahassuccessfully expandedfrom threeoutlets in the USto 9,350 stores operating in seventycountries. Dominosoperation inthe UK and overseas usesthe franchise model. The parent company, Dominos Pizza LLC is headquarteredin Michigan, USA. It maintains overall control on the sourcing and supplying of raw materials to the master franchisesand enforcesquality of the service and products sold.
The Dominos Corporate Vision statement focuses on thefollowingkey areas
Being better than the competition
Ensuring a quality product.
Providing excellentservice.
Creating lasting relationships with its employees andthe communities within which it operates.
A clear corporatevision ensures that the company anditsfranchises can work towards meeting common goals thereby increasing its business in a potentially virtuous cycle.
Dominos Pizza in India
Jubilant FoodWorks Ltdis an Indian company based inNoida,Uttar Pradeshwhich holds themaster franchiseforDomino's PizzainIndia,Nepal,Sri LankaandBangladesh, and also forDunkin' Donutsin India. The company is a part of the Jubilant Bhartia Group.
The company was incorporated on 26 March 1995 as "Domino's Pizza India Private Ltd" and started operations in 1996. It subsequently changed its name to "Jubilant FoodWorks Ltd" in 2009. Jubilant FoodWorks got listed on the Indian bourses in February 2010.The company opened India's first Domino's Pizza outlet inNew Delhiin 1996. Mr. Shyam S. Bhartia, Mr.Hari S. Bhartia and Jubilant Enpro Private Ltd. are the Promoters of the Company.
The Company is Indias largest and fastest growing food service company, with a network of 679 Dominos Pizza restaurants (as of 31st December, 2013). The Company is the market leader in the organized pizza market with a 67% market share in India (as per Euro monitor report 2013).
Marketing Strategy
To reach their consumers, they follow holistic marketing strategy by leveraging both the power of the media and direct consumer-connect. JFL is positioned as a mass brand with top-of-the-mind consumer recall. JFL is continually enhancing its consumer engagement and building greater brand loyalty through Television, Digital Marketing and tactical Below the Line (BTL) activities and local engagement initiatives.
Digital Marketing Dominos Pizza
Dominos Pizza in India today is one of the most engaging brands on Facebook, the 19th largest fan page across categories.
Their pioneering digital initiatives across Online and Mobile Ordering platforms, they have enhanced their Consumer Service.
Their feedback process on single Number (68886888) went Live for our consumers during the year. With a turnaround time (TAT) of eight hours on Consumer complaint redressal, they have mastered the art of delighting every consumer. Their Consumer Satisfaction Index initiative has also proved to be an effective platform for monitoring consumer feedback.
The Core Competencies of Dominos
Dominos core competencies have evolved over time. Their unique sets of strengths havehelped the Company dominate the pizza food service industry, and aleaderin the home delivery / take away.
The Value Chain
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 takeaway restaurant, reasonably pricedhot 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 unlike other competitors who have evolved a mixed model of full service restaurants and takeaway outlets, or a hybrid combination of both. This has diluted their strengths in the segment
Dominos focuses onTakeaway / Home delivery. Its global operational modelallows for
lean stores, welltrained staffand flexibility at a country level to customise menus to suit customer tastes. Operational requirements have prompted theuse 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 anda proprietary point of sale system. A combinationof the Company level strategy andthe Operational Strategy has resulted in Dominos having a reputation for reliability and consistentpizza quality) these strategies have ensured that Dominos continues to meet its customer needs.
Product value chain
Porters model, whichdepicts Dominosoperations as a collection of valueadding 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
PRODUCT LIFE CYCLE
Research Methodology
Objectives of the Study:
To understand the value proposition offered by Dominos from customers perspective
To offer recommendations to Dominos based on customer responses
To do customer value analysis which includes indentifying major attributes that customers value in a fast food chain restaurant, assessing quality of different attributes
To know about the awareness of people towards
Research design:
The task of defining research problem in the preparation of research project is known as research design. It is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure.
Descriptive Research
A research design in which major emphasis is on determining the frequency with which something occurs. The focus of descriptive research is to provide an accurate description for something that is occurring.
Primary Data
The Primary Data was collected through questionnaires. They were filled using scheduled method of data collection by the researcher. Primary data is the data which has been collected for the first time. Primary data being fresh from the fields of investigation is very often referred to as raw data. In collection of primary data, a good deal of time, money and energy are required.
Secondary Data
Secondary data is the data that has already been collected and examined earlier by other investigators. Secondary data can either be published or unpublished data.
Secondary data includes articles from:
Company documents
Reports and Journals
Books, magazines and newspapers
Sources of Data Collection:
Following sources of data have been used for the purpose of this research:
Primary Data:
Questionnaire:
Domino's Survey
Domino's Survey
* Required
Top of Form
1. Do you eat outside food?*
If no, go to question no.11
Yes
No
2. How often do you eat outside food ?
Once in every 3 days
Once in every 7days
Once in every 15 days
Once in every month
Once in every 3 months
3. On what parametersdo you decide where to eat?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Price
Taste
Healthiness
Ambience
4. When you go outside, what would you like to eat?
Junk food
Healthy food
5. Have you ever tried Domino's ?*
If No, go to question no. 8
Yes
No
6. Which Domini's service do you usually avail?
Domino's Outlet
Home Delivery
Both
7. On the basis of your of satisfaction level, rate your experience on the following parameters:*
Very Good
Good
Neutral
Bad
Very Bad
Not applicable
Price
Food Quality
Taste
Variety
Ambience
Hygiene
Service
Over all experience
8. How many times do you eat Domino's food ?*
Once in every 3 days
Once in every 7 days
Once in every 15 days
Once every month
Once every 3 months
Once a year
9. Do you intend to visit Domino's in future?
Yes
No
May be
10. Would you like Domino's to include healthy food options in their menu ?
Yes
No
11. Indicate which healthy food items you would like Domino's to include in the menu?
Salads
Baked Pasta
Brown Bread Sandwiches
Juices
Other:
12. Specify your age
Never submit passwords through Google Forms.
100%: You made it.
Bottom of Form
Secondary Data:
Company documents
Books, magazines and newspapers
Limitations of the Study:
Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows:
Scope of the project is limited in the sense that only Dominos has been taken for consumer research
Questionnaire method involves some uncertainty of responses. Co-operation on part of informants, in some cases, was difficult to presume.
It is possible that information provided by the informants may be incorrect
SWOT Analysis
Strength
Worldwide presence
Extremely strong brand image and high brand loyalty.
Very strong network with its franchisees
High number of products
Strong brand equity supported by heavy advertising & marketing campaigns.
Efficient and effective supply chain management enables it maintain its goodwill and promises
Online & mobile ordering.
Franchisees are diversified and able to increase their market share and encourage sales.
30-minute home delivery guarantee.
Weakness
High fat and high calorie food not good for health conscious people
Franchise management.
High staff turnover due to lack of training and development
Opportunity
Growing presence in emerging markets, particularly in India, China.
Home delivery service.
Sales from iPhone applications.
Introduction of new flavor additives and pizza toppings that are region specific can be a good stride for Dominos.
The distribution network should be further strengthened so as to ensure market penetration in the existing markets at maximum optimum levels.
Niche groups- Low Carbohydrate.
Threats
Changing consumer habits towards healthier food choices.
Intensive competition from a fragmented number of small competitors.
Increase of food and labor costs.
Increase of substitute products.
(Product Offering of Dominoes) (VEG SINGLESFOUR SINGLE TOPPING VEG PIZZAS.VEG DOUBLESFOUR DOUBLE TOPPING VEG PIZZASNON VEG SINGLESFOUR SINGLE TOPPING NON VEG PIZZAS.NON VEG DOUBLESFOUR DOUBLE TOPING NON VEG PIZZASMIXED DOUBLESTWO VEG & TWO NON VEG DOUBLE TOPPING PIZZAS) (Pizza mania combos) (Cheese BurstClassic HandTossed Wheat Thin CrustFresh Pan Pizza) (Choice of Crust) (COKEFANTASPRITE) (BEVERAGES) (BREADSGARLIC BREADSTICKSSTUFFED GARLIC BREADPASTASVEG PASTA ITALIANO WHITEVEG PASTA ITALIANO REDNON VEG PASTA ITALIANO WHITENON VEG PASTA ITALIANO REDDIPSCHEESE JALAPENO DIPCHEESE DIPTARTER DIPDESERTSCHOCO LAVA CAKEBUTTERSCOTCH MOUSSE CAKECHICKEN DELIGHTSCHICKEN WINGSCHICKEN KICKERSSpicy Baked ChickenMORETACO INDIANA VEGTACO INDIANA CHICKENCALZONE POCKETS VEGCALZONE POCKETS NON VEGLEBANESE ROLLS NON VEGLEBANESE ROLLS VEG) (Side Order) (Non Veg Pizza) (CHEESE & BARBEQUE CHICKENBARBEQUE CHICKENSPICY CHICKENCHICKEN FIESTAKEEMA DO PYAAZACHICKEN MEXICANACHICKEN GOLDEN DELIGHTZESTY CHICKENMEATZAANON VEG SUPREMECHEESE & PEPPERONI) (Spicy DelightDouble Cheese MargheritaFresh VeggieCountry SpecialFarm HousePeppy PaneerMexican Green WaveDeluxe VeggieGourmet5 PepperVeg Extravaganza) (Veg Pizza)
Realibility Testing
Cronbach Value-Cronbach's \alpha (alpha) is a coefficient of internal consistency. It is commonly used as an estimate of the reliability of a psychometric test for a sample of examinees.
Observation-
Since cronbach value > 0.6 for our data, therefore our data is reliable and we can move forward with our analysis.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on Standardized Items
N of Items
.614
.655
12
Relevance of the Study
The large-scale consumption of junk foods has created a public health crisis in many countries as more and more people are affected by obesity-related diseases such asdiabetes,high blood pressure andheartailments. The financial and social costs of these health problems are huge. The key emerging health concerns amongst Indians include diseases of the heart and digestive system, obesity, bone and joint pain, depression and anxiety, lack of energy and stamina and sleeplessness. While some of these are being aggressively addressed by manufacturers, there are some others which still offer a scope for product development.
The growing awareness amongst Indian consumers regarding several ingredients and their associated health benefits is making them more inclined to use nutritional information very often to make product choices. Hence there is a demand for food and beverages with health claims, and Indians are making a conscious attempt to include them in their diet.
Health food and drinks should be made available in convenient package formats to appeal to the changing consumption patterns. In a crowded marketplace with several products having health claims, sustained purchase and consumption is driven by product packaging, size and formats aimed at providing convenience of usage to the consumers. Thus Dominos has a vast opportunity to understand the fast-changing health attitudes of consumers and adopt to it with more innovative and healthier food options at good price. These benefits being added to the consumer value chain will provide Dominos with a new set of health conscious consumers added to its portfolio as well.
The Sampling Plan
1. Target Population : People eating outside food
2. Sampling Frame : People eating Domino's food
Sampling Unit : Individual customers
Element : Same as sampling unit
3. Sampling Technique : Probability Sampling
Reasons for choosing Probability Sampling: Research type is Exploratory, Variability in population is limited in terms of eating habits and age group
Simple Random Sampling
4. Sampling Size:
Number of Respondents :
Geographic Extent : Whole of India (Respondents belong to various parts of the country)
Time : February and March 2014
Scaling Technique
Likert scaling is being used in the survey questions. It is a bipolarscaling method measuring either positive or negative response to a statement. A typical test item in a Likert scale is a statement, the respondent is asked to indicate their degree of agreement with the statement. Traditionally a five-point or a seven point scale is used with neutral include in between.
Some of the Likert scale examples are shown below which have been used in the Questionnaire designed
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Very Good
Good
Neutral
Bad
Very Bad
Rationale for using Likert Scale: After the questionnaire is completed, each item may be analyzed separately or item responses may be summed to create a score for a group of items. Hence, Likert scales are often called summative scales is being used in our survey to create a score on factors which influence consumers to like Dominos.
Possible assumptions/ Hypothesis drawn to be studied
Ho (Null Hypothesis) : Customers would like Domino's to include healthy food in their menu
H1 (Alternate Hypothesis) : Customers would NOT like Domino's to include healthy food in their menu
H0: U=X
H1: UX
Z=X-U/
Case Processing Summary
N
%
Cases
Valid
30
96.8
Excludeda
1
3.2
Total
31
100.0
a. Listwise deletion based on all variables in the procedure.
Scale: ALL VARIABLES
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based on Standardized Items
N of Items
.614
.655
12
Item Statistics
Mean
Std. Deviation
N
Experience_based_on_Price
3.4000
1.03724
30
Experience_based_on_FoodQuality
3.7000
.74971
30
Experience_based_on_taste
3.7667
.77385
30
Experience_based_on_variety
3.6000
.85501
30
Experience_based_on_ambience
3.2667
.78492
30
Experience_based_on_hygiene
3.7333
.73968
30
Experience_based_on_service
3.6000
.96847
30
overallExperince
3.6000
.62146
30
parameters_to_decide_price
4.0333
.76489
30
parameters_to_decide_taste
4.7000
.46609
30
parameters_to_decide_healthiness
3.4667
1.19578
30
parameters_to_decide_ambience
3.6667
1.12444
30
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