PRESENTATION ON McDONALDS & DOMINOS SUPPLY CHAIN

UNDER GUIDANCE OF: MR. ANOOP R OHRI

PRESENTED BY: KIRANDEEP KAUR DEEPIKA SHARMA NIKHIL RANA VISHAL JASMEET SINGH

DOMINOS
Founded in 1960 Domino's is the second-largest pizza chain in the United States over 9,000 corporate and franchised stores in 60 countries and all 50 U.S states Pizza, sandwiches, pasta, chicken wings , desserts Focus on delivering great tasting Pizzas and sides, superior quality, exceptional customer service and value for money offerings. Dominos pizza believes strongly in the strategy of Think global and act local.

HISTORY OF DOMINOS
In 1960, Tom Monaghan and his brother, James, purchased Domi Nick's, a small pizza store in Ypsilanti, Michigan near Eastern Michigan University. Monaghan renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, 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

DOMINOS IN INDIA
It entered India in 1996 Through franchise agreement with Delhi based industrial Vam Bhartiya Corp. In late 1999, Indocean Chase (private Equity fund) bought 25% stake in Dominos operations from Bhartiya Advised to go beyond its 16 outlets in Delhi to exploit the potential in the pizza delivery business. By 2002 it had around 150 outlets covering over 20 major cities in India

CURRENT STATUS
 Dominos pizza targeting to double its outlets in India to more than 800 over the next five years. Currently, there are 411 Dominos stores in India.  India is the fifth largest market for the dominos after US, UK, Mexico and Australia. In India, Jubilant foodworks ltd operates dominos pizza stores with exclusive rights for India, Nepal, Bangladesh & Sri Lanka.  Dominos is the market leader in the organized pizza market in India. With over 50% market share and 70% share in the pizza home delivery segment.

 In metros, dominos focuses on on time delivery  tag line/slogan khushiyo ki home delivery ; Hungry kya ?  USP Home delivery in 30 minutes else free

 In term of top global markets for Dominos, India is currently ranked at ninth position.  Home delivery contributes about 60% of the revenue.

INTRODUCTION
World's largest chain of hamburger fast food restaurants Dealing in 123 countries . Headquarter in the United States More than 33,000 restaurants worldwide More than 4,00,000 employees Fast food: hamburgers, chicken, french fries, soft drinks, coffee, milkshakes, salads, desserts, breakfast.

 The McDonalds philosophy of Quality, Se rvice, Cleanliness and Value (QSC&V) is the guiding force behind its service to the customers. Reconnect with customers through contemporary global marketing direction Im lovin it

Background
The company began in 1940 as a

barbecue restaurant in California operated by the eponymous RICHARD AND MAURICE McDONALD In 1948 , they reorganized their business as a hamburger stand Businessman RAY KROC joined the company as a franchise agent in 1955 and later on purchased the chain from the McDonald brothers and oversaw its worldwide growth. Regarded as a symbol of globalization and the spread of the American way of life.

FOOD INDUSTRY IN INDIA

In India, food industry and particularly informal eating out market is very small. In India, over quarter of a million customers visit McDonalds family restaurants every day. The Indian fast food market is valued at $1-billion (Rs 4,547 crore) approx.

Business model
 Only 15% of the total number of restaurants are owned by the Company & remaining 85% is operated by franchisees  In addition to ordinary franchise fees and marketing fees, McDonald's also collect rent, which is calculated on the basis of sales.  Condition of franchise agreements vary by contract, age, country, and location  In most of the countries, restaurants are operated by joint ventures and other, local entities or governments.  To boost sales, McDonalds is looking at new business channels instead of rapid expansion. New business channels include home delivery, kiosks, breakfast, extended hours and drive-throughs. drive-throughs.  comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers.  Act like a retailer and think like a brand

McDonald in INDIA
first Indian outlet opened in Mumbai in 1996. Beef and pork products were not offered meat and vegetarian meals are prepared in separate areas of the restaurant because of religious laws In India In 2009, McDonalds India won the CNBC Awaaz Consumer Awards for the third time in the category of the Most Preferred Multi Brand Fast Food outlets. McDonalds first launched home delivery of meals in Mumbai in 2004.

Target market
Initial focus on metros- Mumbai, Delhi Relatively high incomes Exposure to western food & culture Move to smaller satellite towns (Gurgaon,Pune) Positive spillover effects of reputation Jaipur & Agra- To attract foreign tourists

 McDonalds has a dedicated supply chain in India and sources 99% of its products from within the country. strong backward integration right up to the farm level.

Competitors in INDIA
Pizza Hut Dominos Pizza Papa Johns Narulas KFC

Competitors
Burger King Second largest burger chain Wendy's World's third largest hamburger fast food chain Jack in the Box American fast food chain SubwayLargest single-brand restaurant chain Carl's Jr.Fifth largest American fast food chain Five GuysAmerican fast food chain Whataburger American fast food chain Krystal American fast food chain White Castle American fast food chain Yum! Largest multi-brand restaurant chain

Supply chain
 critical for success  strong local channels of suppliers and distributers  operation and training to match international quality and hygiene standards  invested 50 crore before setting up 1st store in india

Suppliers
Trikaya agriculture

QUESTIONS
1. What are the key changes which have made supply chain management a critical function to succeed in present day business world?

Ans 1
growing urbanization Improvement in overall education level Increased scope of processed food Integration of the economies of the world Satisfying increased demand Rapid development in IT competition Companies need Long term collaboration with suppliers- need of the hour Minimum cost

QUES
2. How does an efficient supply chain lead to strategic competitive advantage?

Ans 2
Affordable prices Timely delivery of goods Quality assurance Increase in sales Low wastage Fulfill the demand of the customers

QUES
3. How dominos revamped its supply chain model in the wake of its extended spread in Indian industry?

ANS 3

WHEAT

RETAIL OUTLETY

DOUGH

REFRIGERATED TRUCK

WHAREHOUSE

Recomendations
Understand latent demand Delight needs Innovations Create demand