You are on page 1of 29

Marketing Strategies and Plans

In-depth comparative analysis of marketing strategies followed by

MARKETING STRATEGIES
DEFINITION:Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contributes to
the goals of the company and its marketing objectives.

TYPES OF MARKETING
1. Social Marketing:
It refers to the design, implementation and control of programs to increase the acceptability of
a social cause or practice among people e.g. No Smoking campaign in Delhi University,
publicity campaign for casting vote.
2. Augmented Marketing:
It refers to providing additional services by way of innovative offerings and benefits to the
customers to increase his level of satisfaction e.g. free home delivery service by Supermarkets.
2

3. Direct Marketing:
Marketing through various advertising media that interact directly with consumers, generally
calling for the consumer to make a direct response e.g. Catalogue Selling, Mail-order, Telecalling and TV shopping is known as direct marketing.
4. Relationship Marketing:
Marketing through creating, maintaining and enhancing strong long-term relationships with
customers in order to win his loyalty e.g. a restaurant can build relationships with customers by
sending him wishes and discount offers on his birthdays.
5. Services Marketing:
It is applying the concepts, tools and techniques of marketing to services like banking,
insurance, retailing, educational etc.
6. Person Marketing:
It consists of activities undertaken to create, maintain or change attitudes or behavior towards
particular people like politicians, sports stars, film stars, professionals to promote their careers
and income.
7. Organisation Marketing:
It consists of activities undertaken to create, maintain or change attitudes and behavior of target
audiences towards an organisation.
8. Place Marketing:
Place marketing involves activities undertaken to create, maintain, or change attitudes and
behaviour towards particular places e.g. tourism marketing.
9. Differential Marketing:
A market-coverage strategy in which a firm decides to target different markets through
different strategies or offers e.g. Hindustan Unilever offers different types and qualities soaps
for different markets and customers.
10. Synchro marketing:
It refers to balancing the fluctuations in irregular demand for a product due to seasons, timings
etc, through flexible pricing, promotion and other incentives e.g. heavy off-season discount on
woollens may increase its demand to some extent.
11. Concentrated Marketing:
A market-coverage strategy in which a firm focuses on only one or few markets is called the
same.
12. De-marketing:
Marketing strategies to reduce demand temporarily or permanently, not to destroy demand but
only to shift it e.g. Super stores may offer no discounts on Saturdays, Sundays and holidays to
reduce overcrowd.
3

Levels of Marketing strategies


There are three strategy levels that you should be aware of when developing objectives for your
business. They are functional-level strategies, business-level strategies and corporate-level
strategies.
1. Functional-level strategies are focused on improving the effectiveness of a business at
an operational level. Functional-level strategies are aimed at improving the efficiency
and effectiveness of manufacturing, marketing, customer service, resource management
and product development. They also aim to increase the level of innovation in the
business with a focus on meeting customer needs. Functional strategies have the
narrowest scope of the three strategy levels. They add the details and specific targets to
the overall management plan and are used to implement actions and practices in key
business activities.
2. The overall way that a business defines itself in a market is set by the business-level
strategies. Business-level strategies are used to determine a business' competitive
advantage and include specifics about positioning, differentiation and responding to
market changes. Business-level strategies are also used to unite and coordinate the
strategies of the different functional-level departments of the organisation.
3. The highest level of strategic management involves establishing the corporate-level
strategies. Corporate-level strategies are concerned with defining how the business will
remain sustainable in the long term. They are focused on maximising long term
profitability and business growth. Corporate-level strategies allow you to focus your
organisations investment on areas of the business that will help you to achieve your
long term goals and objectives.
A clear understanding of the three strategy levels will help you to set realistic objectives,
develop plans for achieving them and ensure that your business remains sustainable in the long
term. The three strategy levels are not completely independent of each other and must be
developed and implemented in a coordinated manner.

Introduction to Fast Food Industry


Fast food is one of the worlds largest growing food types. Indias fast food industry is
growing by 40% .the multinational segment of Indian fast food industry is up to Rs. 20
billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last 6 years,
foreign investment in this sector stood at rs.3600 million which is about one-fourth of total
investment made in this sector. Because of the availability of raw material for fast food,
global chains are flooding into the country. The percentage share held by foodservice of total
consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001.
Amid an economic slowdown, it seems Indias consumers will still give themselves a cheap
treat. International and domestic fast-food chains are growing rapidly, catering to India's young
and increasingly wealthy population. Yet with the market still dominated by small stalls,
restaurants are struggling to keep prices low enough to benefit from the mouth-watering
opportunities.
Eating at home remains very much ingrained in Indian culture and changes in eating habits
are very slow moving with barriers to eating out entrenched in certain sectors of Indian
society. The growth in nuclear families, particularly in urban India, exposure to global media
and western cuisine and an increasing number of women joining the workforce have had an
impact on eating out trends.

Major players in fast food Industry are:

Mc Donalds
Subway
Barista
KFC
Pizza Hut
Dominos
Burger King

Reasons for Emergence


The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.
Gender roles:
Gender roles are now changing. Females have started working outside. So, they have no time
for their home and cooking food. Fast food is an easy way out because these can be prepared
easily.

Customer sophistication and confidence:

Consumers are becoming more sophisticated now. They do not want to prepare food and
spend their time and energy in house hold works. They are building their confidence more on
ready to eat and easy to serve kind of foods
Paucity of time:

People have no time for cooking. Because of emergence of working women and also number
of other entertainment items. Most of the time either people work or want to enjoy with their
family.

Double income group:


Emergence of double income group leads to increase in disposable income. Now people have
more disposable income so they can spend easily in fast food and other activities.

Large population:

India being a second largest country in terms of population possesses large potential market
for all the products/services. This results into entry of large number of fast food players in the
country. Relaxation in rules and regulations, with the economic liberalization of 1991, most
of the tariff and non tariff barriers from the Indian boundaries are either removed or
minimized. This helped significantly the MNCs to enter in the country.

MARKET SHARE AND MAJOR PLAYERS

The organized pizza market in India is worth Rs.600 Crore. The major players in the market
are pizza hut and dominos whose market share are around 45% and 35% respectively.

Other players form the rest 20% .

Other players mainly are

Smokin joes

Garcias

Papa johns

Us pizza

These players mainly give competition to Pizza Hut and Dominos in tier I cities like
Mumbai, Bangalore, Chennai etc. They do not have much presence in tier II cities.

DOMINOS BRIEF HISTORY


Founded as a single store in 1960, Dominos Pizza today stands as the recognized world leader
in pizza delivery. From the beginning, they have been dedicated to the best of service, quality
products and delivery excellence.
Domino's Pizza Corporate Facts
Each day, more than 1 million customers enjoy hot, delicious Dominos Pizza products on
every inhabited continent on Earth, because they operate over 11,000 stores in more than 70
countries; each and every store dedicated to their focus of providing great-tasting pizza
whether it be delivered directly to your door or available for carryout. They pioneered the pizza
delivery business back in 1960, and our total system sells more than 400 million pizzas
worldwide.
Great Name Brand Recognition
Dominos Pizza is recognized as a Megabrand by Advertising Age magazine, and has been
named Chain of the Year by Pizza Today, the leading publication of the pizza industry, three
times including back to back wins, the first ever company to do so, in 2010 and 2011.
Our Products
Products such as Handmade Pan Pizza, Oven Baked Sandwiches and Dominos Indian Legends
have been added to our product line-up since 2008, along with complementary side items such
as our Parmesan Bread Bites, Stuffed Cheesy Bread and Chocolate Lava Crunch Cakes. In late
2009, Dominos debuted its Inspired New Pizza a permanent change to its core hand-tossed
product, reinvented from the crust up with new sauce, cheese and garlic-seasoned crust.
Innovating the Pizza Delivery Business

Throughout our history, in addition to pioneering the concept of efficient delivery of made-toorder pizzas, they have been part of innovations that have made significant impact on the pizza
and delivery industries. Heres a look at some of our innovative thinking:

Domino's HeatWave Hot Bag


Dominos HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during
normal delivery. Originally, each hot bag contained a patented heating mechanism
charged by plugging into an electric outlet at the store. The outer material of the bag is
made with water-repellent nylon, which replaced the less sturdy vinyl material
previously used. Dominos has continued to innovate and evolve the technology,
removing the electric cord and heating each bag via an induction heating system. The
8

latest edition of Dominos HeatWave bags relies solely on a patented insulation system
that keeps pizzas both hot and crisp completely eliminating the need for electricity.

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.

Spoodle
This saucing tool combines the best features of a spoon and a ladle, cutting down the
time spent saucing a pizza. The Spoodle was introduced at the 1985 World's Fastest
Pizza Maker competition by the eventual winner, Jeff Goddard.

Dominos Online Ordering Pizza Tracker, Pizza Builder and Profiles


Dominos launched online ordering in 2007, and in 2008 revolutionized the customer
experience by launching its innovative Pizza Builder and Dominos Tracker. Pizza
Builder allows customers to see their pizza come to life on the computer screen, as
toppings and crust styles are selected in real time. Dominos Tracker allows customers
to follow the progress of the order, from the time its placed until customers receive it.
The experience has seen various looks, themes and interactive opportunities since its
debut. While the Pizza Builder has since been mimicked by other pizza companies, we
remain the only company offering the unique, engaging ordering experience of
Dominos Tracker. In 2013, we launched our enhanced online ordering profiles
platform, allowing customers the ability to reorder their favorite order in as few as five
clicks, or about 30 seconds

CUSTOMERS
For whom the companies exist!
Mostly customers come at Dominos for food and the others for enjoyment as their basic
requirement. Mostly customers come to dominos for take away pizzas while they come to
pizza hut for the dining experience. Their unsatisfied need is either food or enjoyment.
Most customers in dominos are from the middle income group or students whose
disposable incomes are relatively low. Generally everyone finds the taste of the pizzas to be
good.
Also the location of the restaurant makes a lot of difference as many people come to dine due
to its strategic location. Even we had food in the restaurant and we also found the taste to
be great! People preferred dominos for their relatively lower price.

Influence in Buying Pattern


Buying pattern is also influenced by the preferred their choices due to their wards but
mostly for single adults their choices depends upon them.

Also the brand recall off the restaurants makes a lot of difference. A hard core follower of
dominos will have food from dominos only.

General buying pattern (this data is pertaining to Coimbatore city)

From this data we can interpret that only 20% of customers have pizza frequently. At the same
time 20%of customers have pizza rarely.
10

Core Competencies
Pizzas topped with cheese and happiness, dominos is committed to put an extra smile on its
customers faces, with a mission of exceptional people on a mission to be the best pizza
delivery company in the world! ".

Tracing footsteps
Many pizza lovers would still remember the havoc that occurred in mid April 2009 in
which some dull witted dominos employees posted a kitchen video of dominos that
clearly showed the lack of sanitation in their kitchen in Youtube.
The video attracted millions of views in a few hours and was indeed viral. Dominos did an
excellent job of crisis management and used social media to spread a viral video in which the
company president took control of the situation and apologized to the public, announced
separation of the company from wrong doers and their prosecution. He also guaranteed that
such issues will not happen again. Dominos clearly proved that communication meant
engagement, transparency and responsiveness to the interaction with customers.
Through the looking glass
It has never been difficult for dominos to find out novel ways to enthral its customers.
Delicacies that do not rip wallets have always got the crowd coming back to the dominos
although its ambience is not up to that of its competitors. Khushion ki home delivery was
the campaign where the order gets delivered in less than 30 minutes. All other activities, be it
new variants, great service, timely deliveries or more for the same price the effort of
dominos has always been directed towards making its customers happy.

11

SWOT ANALYSIS

12

Dominos is a very recognizable brand name throughout the world and is the leader in the
pizza delivery and takeout business. Dominos continues to operate throughout the United
States as well as in over 55 other countries.
Strengths
Since Dominos is so widely known, it has a worldwide presence. Dominos has stores
Mexico, South Korea, Canada, Japan, France, Taiwan, and many other countries. They are a
figurehead in the pizza delivery industry. In addition with its worldwide presence, Dominos
has an extremely strong brand image. This results in very loyal customers and helps the
company when they introduce new products. Dominos also has a very strong network with
its franchisees. They are all extremely diversified and with their strong network, they are
able to increase their market share and encourage sales.
Weaknesses
A major weakness for Dominos is that they have experienced a decline in their store sales.
Over the past two years the revenues have declined and this can affect their brand image and
their profits. Part of these losses was due to the decline in the number of domestic franchises
that were open in 2008. Dominos hopes to turn these numbers back around in the next
couple years.
Opportunities
Dominos has multiple opportunities. One significant advantage Dominos has over its
competitors is their focus to delivery pizza the most efficiently. This helps improve their
operating effectiveness with minimized spending. There is a large growth in China and
Indias population and Dominos could take advantage of this growth to help increase their
market presence and increase their revenues. Dominos has also begun to offer their services
on mobile devices and now many sales come from their iPhone application. They constantly
are working to find new improvements to maintain their growth and continue to gain and
lead in competitive advantages.
Threats
The competition of the pizza delivery industry is definitely a threat for Dominos. There are
constantly new businesses being formed in the pizza and fast food industries. Some of their
emerging competitors are Pizza Hut, Papa Johns, and McDonalds. Another threat is how
people are becoming much more aware of their health. With this increase in health
awareness, it could affect the profits of Dominos. A final threat is the increase of labor and
food prices. Minimum wage has a major impact on their business. All of Dominos supplies
have also increased in price and this has hurt their profits by increasing their operating costs.

13

Analysis of the competitors


Dominos has many competitors both domestically and internationally. According to a
study, Dominos is the world's #2 pizza chain. Their competitors include fast food
companies such as McDonalds, as well as other pizza take-out services like Papa Johns,
and worldwide pizza delivery company giant Pizza Hut.
McDonalds Corporation Inc.
A massive worldwide franchise that specializes in the fast food industry is McDonalds. In
2008, McDonalds revenues exceeded $23 million. McDonalds brand image is a major
strength for them as people of all ages across the globe recognize the golden arches logo.
With their well recognized logo, McDonalds has been involved in many legal issues such as
being accused for false advertising and violation of fraud acts.

Papa Johns International, Incorporated


Dominos competes with Papa Johns on the same level of pizza delivery and pizza takeout.
Chicken wings and chicken strips are also a specialty (along with pizzas) for Papa Johns.
They recorded a $36.8 million net profit in 2008. This was a twelve percent increase from
the previous year. They remain a large competitor of Dominos with their increasing
popularity.

Pizza Hut
Pizza Hut operates as a subsidiary to the food giant Yum! Brands. They specialize in pizza
making. Pizza Hut is even more focused on health conscious people by incorporating a salad
bar into their sit down restaurant section and by serving nutritional pasta bowls. They also
have an extremely strong brand image and compete with Dominos for brand recognition.

14

Industry analysis
The pizza industry is a highly competitive and mature market. There are over 150 well
known pizza franchises, which account for about 60% of the market. Along with the well
known franchises there are an unknown number of local pizzerias throughout the world.
New franchisees and smaller pizzerias are continually opening, which create more
competition throughout the industry The industry has faced some hardships with the trends
of society and declining economy.

Consumers now are requesting healthier choices for themselves and their families. Many
people are also more interested in where the products are produced and what ingredients go
into making their food. To combat this health awareness among consumers, pizza restaurants
are trying to change their dough by having healthier fats, which is done by incorporating
more whole wheat into their crusts. The pizza toppings are also becoming healthier, and
some pizzerias are introducing salads into their menus.

The rise in minimum wage has also posed obstacles for the industry, requiring more of their
operating income to be dedicated to labour costs. The increase in the price of inputs has also
changed their profitability. The cost of wheat has tripled, cutting the amount of profit per
pizza.

Another impact of the pizza industry is the use of mobile technology. The popularity of the
Internet and the ability to order a pizza on the computer or on a mobile device has changed
the industry significantly. Many companies offer online orders and some are offering orders
through text messages. Over the past few years, there have been many significant changes
throughout the pizza making and delivering industry.

Prices vary greatly from country to country.

15

Product Positioning

The customer value hierarchy


We know that dominos has a food as a basic product but overall it provides an experience.
Thus a person having a basic need of food can go to dominos and have pizza which is
the companys core product. Hot pizza and good taste are his expectation. Thus the
company should ensure this by providing good pizza. The value adds services refer to the
overall dining experience, the service quality, ambience etc.

Product differentiation
Domino's pizza India has maintained its position in the market with its constant product
innovation and maintenance of stringent service standards. More importantly, it has
established a reputation for being a home delivery specialist capable of delivering its pizzas
within 30 minutes to its community of loyal customers from its entire chain of stores around
the country. As the name suggests the pizza delivery experts customers can order their
pizzas by calling their hotline. 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 populace and these have been very well accepted by the Indian market.
Also they had their promotional campaign hungry kya? which means call up dominos if one
is hungry and have the food in 30 minutes.
Mass customisation
The main advantage of pizza hut is that one can customise his own pizza by selecting the
bread and loading it with the toppings which one can select. This creates variety in the
customers mind and thus one can enjoy whatever pizza hut can offer.
The most unique feature is that there is single slice pizza scheme where one can select any
vegetarian /non- vegetarian pizza at a lower cost. This is a unique way of offering as there are
many consumers who would not afford a regular size pizza and hence they can have a slice of
it.

Delivery
Pizza huts style of delivering the pizza to the customer is not quite great. The restaurant is
not so aesthetically designed; all the staff members are dressed in a not so attractive manner.
Also the tables, menus are all placed like in a normal Indian udipi restaurant. One can find
that dining at dominos outlets is not that good. The food is good but the ambience isnt.
However they are the universal kings in serving pizzas at home. They brand their pizzas in
16

that fashion only. Their motto is to serve the pizza at customers home. Dining for them comes
as secondary. The company doesnt give importance to improve the dining standards. All
orders placed in restaurant are served within 15-20 minutes and the take away orders (ordered
on phone) is delivered within 30 minutes. Care also has been taken by the company to pack
the pizzas in special covers so that it remains hot till the customer haves the food. Any pizzas
delivered outside 30 minutes are given free. Also discount coupons are given to the customer
in case one doesnt want a free pizza.

PRODUCT LINE ANALYSIS


The company has a basic platform for offering pizza and have added on different modules to
meet the ever changing customer requirements. Thus the major chunk of profit comes from
pizzas and pastas. While beverages and desserts contribution towards profits is to a lesser extent.

17

PLACE
Once the product has been decided upon and the market segmented, targeted and the product
positioned, it is time to decide how and where the marketer can deliver the value (Product) to
the customer. This is done through marketing channels that make the product available for
consumption to the customer.

Push and pull strategies in channel marketing:


In a push strategy, the manufacturer uses his sales force, trade promotion, money or other
means to induce intermediaries to carry promote and sell its products to end users.
In a pull strategy, the manufacturer uses advertising, promotion and other forms of
communication to persuade the customer to demand the product from intermediaries, thus
inducing the intermediaries to order it.
Pursuing a push strategy
Dominos pursues a medium push strategy in its channel marketing. The advertising layout for
Dominos is minimal in India. Dominos concentrates on incentivizing customers instead off
advertising and promotion. As a result, Dominos regularly introduces sell-in schemes
(promotional schemes for dealers) Promotional coupon, festival offers etc.

PROMOTION
Promotion, which is known as marketing communication, is a major attribute for any product
or service. In modern marketing it is more than developing a good accessible product or exact
pricing. Ever since it was established, Dominos Pizza India has maintained its position of
market leadership with its constant product innovation and maintenance of stringent service
standards. More importantly, it has established a reputation for being a home delivery specialist
capable of delivering its pizzas within 30 minutes to its community of loyal customers from its
entire chain of stores around the country. Customers can order their pizzas by calling a single
countrywide Happiness Hotline 1800-111-123. In fact, Domino's was the first one to start this
facility for its customers.
Domino's is committed for 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 customer base.

18

Communication objectives
Category need
Dominos master franchise model
Industry analysts believed that Domino's master franchise model was one of the reasons for
Its success in international markets even in light of the global economic slowdown in 2008.
How domino's international bucked the trend
The strong performance of Domino's international master franchises in the midst of the global
economic slowdown was a widely debated topic among analysts. While some analysts believed
that the recession had helped the growth of these chains due to the 'trading down factor' of
people preferring to eat at home rather than dine out at expensive restaurants, others believed it
was a combination of aggressive marketing and the franchise model that had helped the
company buck the trend.

Brand awareness
Promotional and advertisement campaigns
The pizza delivery business had traditionally been promotion driven. Coupons and discounts
were offered by all pizza delivery chains to woo customers. Since its inception Dominos has
been known for its unique promotions that included fast delivery and innovations to cater to a
varied palette.

19

The '30 minutes' promise


In the year 1973, Domino's began a guarantee scheme that its pizzas would be delivered in 30
Minutes or less of ordering failing which the customer would receive the pizza free.
Brand attitude
Use of technology
Online sales accounted for over 70 percent of its total sales in 2008. Dominos planned to
further exploit the increasing potential of the online medium as one of the promotional and
distributional channels in the downturn.

Brand purchase intention


What makes dominos pizza better than its competitors?
Dominos have strong service facilities like 30 mins NAHI TO FREE (otherwise FREE):
dominos were the first to start the trend of 30 minutes otherwise free that means they will
deliver your order within 30 minutes otherwise they will give you for free and they are very
honest with this concept as they do what they say but they never let their employees to drive
the bike so fast in order to reach before 30 minutes and all the employees have to follow this
rule strictly and they reach any place before 30 minutes. So it has good door step services
within half an hour.

Low price menu: In India Dominos is trying to attract the middle class and lower
middle class people who are interested to spend their money on pizza but in low price.
Those people are eager to go for an outing in any festival and want cheap and best
family restaurant. Dominos would be most preferable. They do not need high class
ambiences or amusement in the shop so the establishment cost is low for the dealers and
the price of pizza is very reasonable for the customers.
Variety of Pizzas: Dominos Pizza has a lot of varieties like vegetarian and nonvegetarian. In vegetarian lots of pizzas are available as well as non-vegetarian too.
(Adam, 2010)
Quality of Pizzas: The quality of Dominos Pizza is also very good. The taste of all the
pizzas is very yummy.
More outlets: Even in smaller towns: dominos have its outlets even in the smaller towns
its popularity and pizzas are not limited to big cities but small cities also due to which
people know it more whether from a metro city or from small city.
Quick service at outlets: The service at the outlets of dominos is very fast and
customers dont have to wait for long for their order which makes the brand even better
because low price along with good service as a very rare combination.
Excellent offers: 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 is four offers. 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 four pack the Dominos pizza India offers four
20

pizzas at the rate of Rs. 180. This means charge of one pizza will be just Rs. 45.
Dominos mainly offers are more attractive for the students and middle class people and
they are the main customer which they targeted. Dominos also regularly introduces
sell-in-schemes like promotional schemes for dealers, promotional coupon, festival
offers etc. Sometimes they also give great discounts to the customers. (Groupon)

Strong Presence: They have a very strong presence in the market and through its long
presence in the market and continuous loyalty toward the customer providing them a
great service at a cheaper rate it really have created a very good reputation and brand
name. So it makes Dominos Pizza better than its competitors.

Developing effective communication


Target to age group/class
Dominos target audience is a consumer who belongs to age group of 14 to 35 years from the
Economic Class A or B and preferably one who has been exposed to the western culture as
well as the western style of eating. They are people who are upwardly mobile and dont mind
to pay for convenience. In this category teenagers are the most affected by western culture and
its eating habits. The age group has been restricted to the range of 14 to 35 years as this age
group accounts for about 70% of the total sales volume of pizzas in India. As far as the socio
Economic class is concerned, since Dominos pizzas are priced from about Rs.80 onwards.
However, Dominos have now come out with pizzas ranging from Rs.39 onwards to target the
ever-increasing middle class consumers.
Dominos has also segmented the market geographically by deciding to initially cater to only
the metropolitan cities and urban areas. They have left out the rural areas due to the low level
of awareness regarding western dishes as well as typical Indian patter of eating.
30 min campaign
This is a campaign in which Domino's offers its customers free Pizzas if they are not delivered
in 30 minutes from the time of order. They have a store in a radius of 3 kms in major
metropolitan cities. Anything which is far away from 3 kms doesnt fall in this category.
Domino's latest special offer promises a hot and piping pizza delivered on door less than 30
minutes, or it's free. But 30 minutes is a very short time for a typical Dominos Pizza local
delivery, but it's the latest special offer from Dominos in an effort to outdo the competition.
Still, there are some cities where it must be really tough to make a Dominos Pizza local
delivery, the cities where traffic congestion is a natural way of life.
Can a Dominos pizza local delivery survive the daily traffic jams? is the question to be asked.

21

Design the communication: Message strategy


Offers by dominos
With every order of pizza and coke/Garlic bread sticks get a dominos 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 starts from Rs 35 and we get the toping according to our
choice.
Web coupons available at web site www.dominos.co.in
Discount coupons are being provided with every item purchased.
New schemes at regular interval of time according to the taste of the Indian customer.
Creative strategy
Latest in dominos
22

Kwality walls ice-creams in dominos- For the first time dominos started offering ice-creams.
Selling ice cream in Dominos is also a new sales promotion strategy to attract more customers
in a new perceptive /innovative way.
Dominos has also come up with pasta mania.
Communication mix
Every company must follow the eight major marketing communication modes.
For Dominos direct selling and interactive selling is not needed though they are involved in
internet and cable TV promotions. Dominos always search for ways to gain efficiency by
replacing one communication with others. The sustainability among communication tools
explains why marketing function need to be coordinated.
Advertising
It reaches geographically dispersed buyers. Dominos 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 customer base. Its all advertisement are image of core
competencies. Their taglines The Pizza Delivery Experts and Hungry kya? are showing
their focusing area in promotion.

Events/ Experiences
They are sponsoring some college fest, cultural program and promotional events throughout the
country for promotion.

23

Public Relation
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 populace and the Indian market has very well accepted
these.

PERSONAL SELLING
Dominos constantly strive to make the company an integral part of the lives of the target
audience by getting involved with the clientele at the emotional level and building long term
relations with them. Thus dominos concentrates more on carrying out below the line activities
in the area it serves.

SALES PROMOTION

In India dominos has been associated with the NGOs devoted to the cause of
underprivileged children. Dominos conducts store education tours for the under privileged
children time to time.

They are continuously offering new incentives to the customers.

Word of Mouth
This tool is very powerful for promotion in the fast food industry. Low price and good
behaviour gave them the edge in India.
24

SUGGESTIONS
Dominos
The dining conditions have to be changed drastically if Dominos has to target the
premium segment of customers.
They are way behind Pizza Hut in the dining experience. Some of the Dominos
restaurants lack even basic amenities
Due to this a condition can occur where customers judge the quality and taste of the
pizza with respect to the restaurant environment and ambience
Thus to have a greater market share and tap premium segment of the market,
Dominos can provide good quality restaurants

There should also be provision for music, TVs, kids zone etc in the restaurant

By doing this they can even charge a little bit more on the food items

25

Short Term Recommendations


With the decline in the economy, Dominos experienced negative sales in 2007 due to the
decreasing demand of their customers. This directly correlates with their customers spending
habits. Because of the harsh conditions of the economy, many people are not able to spend as
freely as they used to in years past. Dominos advertising campaigns has had little to no appeal
to their consumers during these hardships. To combat the hard economic times, Dominos
should invest in marketing procedures like offering more coupons or special offers for certain
reasons or times. This not only would help combat competitors, it would also help increase
their revenues during these hard economic times.
Along with coupons and special offers, Dominos can also enhance their customer base by
improving their online ordering procedures. For example, Dominos could implement a
strategy that would be helpful for customers who are looking towards Dominos for parties or
special events. They could allow the user to create an order and specify the date in which the
pizzas would be needed. The user would also need to enter certain criteria, such as the number
of people attending, what type of pizza(s) they wanted, and a contact number so Dominos
could confirm the order before the pizzas are made. Dominos could work to implement their
online ordering strategy to all of their international and domestic stores. This would allow for
Dominos to be more competitive in the market as well as be more flexible with their
customers needs.
In association to their better online strategy, Dominos could also continue to improve their
delivery strategy. Although their delivery time has been reduced, there are always situations
where customers believe their pizza could have been delivered faster. If Dominos can
implement a better way of taking and delivering a pizza at a faster pace, they can improve their
customers visions of the company, which would increase their market share as well as profits.

26

Long Term Recommendations


Dominos has continued to produce fantastic revenues over the past few years. However,
Dominos can use various strategies in order to increase their customer base as well as
international expansion in the long run. For example, they could offer new menu items specific
to the store location, open more stores around the world, and develop new products.
All of the strategies would continue to better their brand recognition across the world.
By offering new menu items that are specific to the locations that their stores are located,
customers can experience dominos superior products as well as maintain their countries local
customs and culture. For example, Dominos can expand further into India and offer better
products that do not contain beef. They can create products that include more poultry items
such as chicken, duck, and other items. Also, Dominos could also offer more white sauce
products on their menu rather than the traditional red sauce that the majority of their products
contain. By offering more products, it would allow for Dominos to open more stores in
different areas of the world

27

Conclusion
Since Dominos conception in 1960, they have proved to be a successful company. The decline
in the economy posed a threat for them along with people becoming more health conscious,
forcing Dominos to lean towards healthier options. But Dominos has shown they are
remaining competitive by expanding internationally. Their international sales have been a large
asset to their profitability. Like any business, they have challenges of becoming
internationalized in ways such as different preferences and menu items. With Dominos
working hard to expand more into India and other countries, it is becoming much harder for
other companies to follow in their footsteps. Dominos is trying to stay in front of their
competitors, Pizza Hut, McDonalds & Papa Johns. Dominos continues to look promising in
the future with the pizza industry becoming more popular. And with the strong brand image
that Dominos has built over the years, the company is pushing to remain strong in the pizza
industry.

28

BIBLIOGRAPHY
INTERNET
www.dominos.com
www.oligopolywatch.com
www.superbrand.com
www.google.co.in
www.scribd.com
MATERIAL USE
PRESENTOR
COMPANYS EARLIER DOCUMENT USED.

29