Tuesday, October 1, 2019
Pizza delivery Essay
The foray of multinational fast food retailers into India has impacted the taste buds of Indian consumers significantly. Instant food is scoring over traditional food due to influence of Western countries, and rise in income & subsequent standard of living, convenience, etc. As a result, fast food menus are gaining wider acceptance from the Indian consumers.  The Indian fastà  Food Industry Dryerà  has witnessed high growth strides in the past years, with increasing disposable income; exposure to a number of cuisines; and consumersââ¬â¢ willingness to experiment a mix of both Western and local menu. It has not only provided convenience to people who shuttle between home and work for a bigger part of the day but also eliminated the requirement of conventional cutlery. This industry at the moment thrives on international appeal endorsed by niche chains.  The development of nutritious and healthier replacements for the traditional servings at fast food restaurants has transformed into mass promotion of portable foods. As per a new research report titled ââ¬ËIndian Fast Food Market Analysisââ¬â¢, currently the Indian fast food industry stands at a massive size of ` 47 billion, driven by a growing number of working professionals and increasing westernization. Apart from this, busy life schedule, standardized food, and less time-consuming processes are also fuelling the demand from domestic consumers in the industry.  As demand for all types of fast food items are consistently on the rise, pizza, burger, and French fries have become the all time favorite among young Indians, more so with some of the well-known burger and pizza restaurants like McDonaldââ¬â¢s, Dominoââ¬â¢s, KFC, Pizza Hut, Nirulaââ¬â¢s etc, operating in India. Consumersââ¬â¢ first choice As far as products are concerned, instant noodles and pasta are at a nascent stage but are fast evolving in the Indian fast food business. Demand for these food items are growing as consumers with hectic lifestyles do not want to spend much time in cooking.  Besides, a variety of noodles and pasta is easily available in the international fast food makersââ¬â¢ menu at an attractive price range, pulling various consumers to add these delicious foods into their palates. The instant noodles and pasta segment has thus turned out to be a big hit among fast food lovers, resulting in the entry of many leading players into this segment. As per an ongoing study on the Indianà  fast foodà  industry, there has been a major shift in food habits in the metropolitan cities encouraging the manufacturers to introduce innovative flavors in noodles and pastas to suit Indian consumers.  Further, the enhancement of fried instant noodlesââ¬â¢ condiment, good performance of non-fried noodles, and the subsequent release of coarse cereal noodles are some of the main trends currently prevailing in the Indian market. About 86 per cent of households prefer to consume instant food over traditional food due to steep rise in dual income level & standard of living, convenience and influence of Western countries. As a result, fast food menus comprising pizza, burger, sandwiches, etc are gaining wider acceptance from the Indian consumers.  Competitorsââ¬â¢ zone On the competitive front, the fast food market in India is poised for rapid expansion and higher efficiency with the entry of international giants. It has also been observed that with the increasing popularity of dining out in India, restaurant operators want to safeguard their share of improved consumer spending by offering all types of cuisines. This provides a significant opportunity to players in the food and beverage industry. Major players in this sector are creating a competitive environment for future growth.  And in order to cater to this augmented customer base, Nirulaââ¬â¢s is increasing its existence in metro cities along with the Tier-2 and Tier-3 cities through different formats. The new outlets in cities, such as Amritsar, Patna, Bhopal, Pune and Ludhiana would mainly be Family Style Restaurants (FSR), ice cream kiosks and parlors. Likewise, KFC has plans to increase its existence from 21 cities at present to around 75 cities through its objective to operate 500 restaurants in India by 2015.  The company is eager to spread wings to new cities such as Hubli, Madurai, Salem and Mysore in the south, and in the north in Kanpur, Allahabad. Similarly, McDonaldââ¬â¢s is targeting 1,000 restaurants by 2020. Hard castle Restaurants, which runs McDonaldââ¬â¢s in the south and west, plans to open up to 70 stores next year. It will be the franchiseeââ¬â¢s biggest expansion in the past 15 years. McDonaldââ¬â¢s also plans to invest ` 10 billion to boost growth. Most of the food chains are busy in innovating and customizing their products. For instance, in order to boost revenue and offer different varieties to the tastes of various cross-sections of people, Dominoââ¬â¢s Pizza is planning to customize its range of products.  The company is taking initiatives to come up with a new assortment of diet pizzas for Indians, who are health-conscious and intends to introduce different specialties in pizza for people residing in different parts, like North and South India. Further, the acceptance of fast food has grown faster as several players have well-understood the basic requirements of Indian food and served more vegetarians & selected no vegetarian meal options (excludes pork and beef from their menu). Franchise outlets On the strategic front, it has been found that the franchising concept in India is continuously rising, with the increase in the number of international players opening more franchise outlets in India.  The increasing revenue figures from franchise outlets encourage the players to opt for the concept. As a result, many international fast food giants are opening up their franchise outlets in India to grab the huge untapped potential in a fast emerging market. In a recent development, Nando, South Africa-based Afro-Portuguese, global restaurant chain is starting up around 35 outlets by 2013 in various parts of India through the franchise route.  The company expects to expand enormously in the northern parts of India. Varying consumer behavior Talking about consumers, it has been a noticeable trend that food consumption pattern of urban Indian families has changed dramatically with times owing to the growing influence of Western culture. Indians have started dining out and moved on to accept different varieties of delicious food from the world. Further, studies indicate a radical change in the consumption patterns of Indian consumers, who have traditionally been known for their price sensitiveness.  Middle-class families as well as the youth prefer to have a burger worth ` 25 rather than that worth ` 50-75. This reveals that despite looking for taste and brand, consumers in India are still inclined to low-price and health issues. As per a survey conducted in 2010, nearly 80 per cent of the fast food consumers expect the fast food owners to implement required measures for reducing the harmful impact of fast food. To tackle this issue, these owners have adopted innovative cooking styles, such as baking and grilling that retain the flavor of food and also require lesser quantity of oil.  Besides, major retailers in this area are now providing all necessary information like ingredients, nutrition and fat contained on the product pack. These measures have helped Indian fast food consumers select healthy and nutritious meal as well as protect them from the dangerous effect of unhealthy fast food. Government inventiveness As far as the role of government is concerned, various initiatives in the recent past have resulted in the entry of many internationalà  Fast Food Retailerà  in the country.  With the economic liberalization in 1991, nearly all tariff and non-tariff barriers have been removed or minimized from the Indian boundary that has helped many retailers to enter the growing Indian fast food industry. As per the Food Safety and Standards Authority of India, the new rules and standards will make it mandatory for street food vendors to register with state health departments that are into policing hygiene. It requires the food authority to issue licenses to food vendors only after ensuring that their products are safe and hygienic. Vendors with products that are found unhygienic or unsafe will face monetary penalties.  Moreover, user friendly and IT-enabled licensing system will be created to improve governance and compliance. To try to ensure that India has the capacity to implement the new law, the government has increased the number of state laboratories for testing eatables and appointed more food safety officers to check food quality & hygiene instead of merely monitoring adulteration. Besides, the Indian government has also directed state governments to prohibit sales of fast food and carbonated drinks on school premises & check out all such items that lead to unhealthy eating from cafeteria within a 1,500 feet radius of schools.  In addition, the countryââ¬â¢s regulators have ordered food chains to provide product nutritional labeling at the time of sale, so that customers can know about what they are eating and what effect it can have on their health. This step is a result of various studies that have shown that a typical fast food has very high density that causes people to eat more than they usually require, causing people to fall ill with many health-related problems like obesity, diabetes and heart diseases. Shortfalls and remedies India has witnessed a massive increase in the consumption of fast food over the past few years.  Indeed, the country has come out as one of the rapidly growing fast food markets in the world. Although the country offers lucrative opportunities to new entrants due to rapid urbanization and changing lifestyles, there still exist some roadblocks, which may hinder the exponential growth route of this industry in future. Competition from local street vendors remains the biggest threat to the growth of the fast food industry in the country. There is an increase in raw materials cost and fuel charges, which is causing a lot of strain to the players in this segment.  Lack of proper infrastructural facilities, with respect to roads and electricity, has also hampered the development of fast food market in India. Besides, the industry will have to tackle a number of roadblocks including the rising consumer concerns regarding obesity and health-consciousness to maintain the ongoing trend. On a fast track If the challenges are met with serious considerations, the Indian fast food industry is anticipated to achieve glorious milestones in the coming years. Increasing inclination of people to eat outside (restaurants) will be the major driving force behind the projected growth.  Besides, healthy food options and low-price menu will also contribute to its growth, to attain a CAGR of around 33 per cent during 2010-2014. THE START OF FAST FOOD CULTURE The concept of fast food pops upà  during 1920s. The 1950s first witnessed their rapid proliferation. Several factors that contributed toà  this explosive growth in50ââ¬â¢s were:(1) Americaââ¬â¢s love affair withà  the automobiles. (2) The construction of aà  major new highway system. (3) The development ofà  sub-urban communities. (4) The baby boom subsequent to world warà  second.  ââ¬Å"Fast-food chains initiallyà  catered to automobileà  owners inà  suburbia. On the go Fast food outlets are take-awayà   or take-outà   providers, often with a ââ¬Å"drive-throughâ⬠ service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eatthe food on the premises. People eat there more than five times a week and often, one or more of those five times is at a fastà  food restaurant. Nearly from its inception, fast food has been designed to be eaten ââ¬Å"on the goâ⬠, often does not require traditional cutlery, and is eaten as a fingerà  food.  Common menu items at fast food outlets include fish and chips, sandwiches, pitas,à  hamburgers, friedà  chicken,à  Frenchà  fries, chickenà  nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food restaurants offer ââ¬Å"slowerâ⬠ foods like chili, mashed potatoes, and salads. Variants Although fast food often brings to mind traditional American fast food such as hamburgers and fries, there are many other forms of fast food that enjoy widespread popularity in the West.  Chineseà  takeaways/takeoutà  restaurantsà  areà  particularlyà  popular. They normally offer aà  wide variety ofà  Asian food which has normally been fried.  Most options are some form of noodles, rice, or meat. Sushi has seen rapidly rising popularity in recent times. A form of fast food createdà  inà  Japan. sushià  isà  normallyà  coldà  stickyà  riceà  servedà  withà  raw fish. Pizza is a common fast food category inà  the United States, with chains such as Dominoââ¬â¢s Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in traditional pizzerias, and pizza delivery, often with a time commitment, is offered. Fish and chipà  shops are a form of fastà  food popular in the Unitedà  Kingdom, Australia and New Zealand. Fish is battered and then deep fried.  The Dutchà  have their own types of fast food. A Dutch fast food meal often consists ofà  a portion of French fries. Facts and figures Fast food is one of the worldââ¬â¢s largest growing food type. Indiaââ¬â¢s fast food industry is growing by 40% a year and is expected to generate a billion dollarsà  inà  salesà  byà  2005.  Theà  multinationalà  segmentà  ofà  Indianà  fastà  foodindustry is up to Rs. 6 billion, a figure expected to zoom to Rs. 70 billion by2005. By 2005, the value of Indian dairy products is expected to be Rs. 1,00,000 million. In last 6 years, foreign investment in this sector stood at Rs.  3600à  millionà  whichà  isà  aboutà  one fourthà  ofà  totalà  investmentà  madeà  inà  this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country. MARKET SIZE & MAJOR PLAYERS a)Dominated by McDonalds having as many as 75 outlets. b)Dominoââ¬â¢s pizza is present in around 100 locations. c)Pizzaà  hutà  is also catchingà  up and ità  hasà  plannedà  to establishà  125outlets at the end of 2005. d) Subways have established around 40 outlets. e) Nirulas is established at Delhi and Noida only. However, it claims tocater 50,000 guests every day. Major players in fast food are: â⬠¢ MCDONALDS.  â⬠¢ KFC â⬠¢ PIZZA HUT â⬠¢ DOMINOS PIZZA. â⬠¢ COFFEE DAY â⬠¢BARISTA. Theà  mainà  reasonà  behindà  theà  successà  ofà  the multinationalà  chainsà  isà  their expertiseà  inà  productà  development,à  sourcingà  practices,à  qualityà  standards, service levels and standardized operating procedures in their restaurants, astrengthà  thatà  theyà  haveà  developedà  overà  yearsà  ofà  experienceà  aroundà  the world.  The home grown chains have in the past few years of competition with the MNCs, learnt a few things butà  there is still aà  lot of scope forà  improvement. REASON FOR EMERGENCE Genderà  Roles :à  genderà  rolesà  areà  nowà  changing. Femalesà  haveà  startedworking outside.  So, they have no time for their home and cooking food. Fastfood is an easy way out because these can be prepared easily. Customerà  Sophisticationà  andà  Confidence: consumersà  areà  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 ââ¬Ëready to eat and easy toà  serveââ¬â¢ kind of foods Paucity of Time: people have no time forà  cooking. Because of emergence ofà  working women and also number of other entertainment items. Most of thetime either people work or want to enjoy with their family.  Doubleà  Incomeà  Group: emergenceà  ofà  doubleà  incomeà  groupà  leadsà  to increase in disposable income. Now people have more disposable income so they can spend easily inà  fast food and other activities. Working Women: working women have no time for cooking, and if they have then also they donââ¬â¢t want to cook. Because they want to come out ofà  theà  traditionallyà  definedà  genderà  roles.  Theyà  doà  notà  wantà  toà  confinethemselves to household work andà  upbringing of childrenââ¬â¢s. Largeà  population: Indiaà  beingà  aà  secondà  largestà  countryà  inà  termsà  ofà  population possesses large potential market forà  all theà  products/services.  Thisresults into entry of large number of fast food players in the country. Relaxation in rules and regulations: with the economic liberalization ofà  1991, most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This helped significantly the MNCââ¬â¢s to enter in the country.  CHALLENGES FOR THE INDUSTRY Socialà  andà  culturalà  implicationsà  ofà  Indiansà  switchingà  toà  western breakfast food: Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development.  Eating meat is not explicitly prohibited, butà  manyà  Hindusà  areà  vegetarianà  becauseà  theyà  adhereà  toà  theà  conceptà  ofà  ahimsa. Thoseà  seekingà  spiritualà  unityà  mayà  avoidà  garlicà  andà  onions. The concept of purity influences Hindu food practices. Products from cows (e. g. ,milk,à  yogurt,à  ghee-clarifiedà  butter)à  areà  consideredà  pure. Pureà  foodsà  can improve the purity of impure foods when they are prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be made pure. But now, Indians are switching to fast food that contain all those things that are considered impure or against there beliefs.  Some traditional and fundamentalist are against this transformation of food habit and number ofà  times they provoke their counterparts to revolt against such foods. And that is what happened when McDonaldââ¬â¢s decided to enter theà  complexity of Indian business landscape, counting only on its ââ¬Å"fast food global formulaâ⬠, without any apparent previous cultural training. Emphasisà  onà  theà  usageà  ofà  bio-degradableà  products: Glasses, silverware,à  platesà  andà  clothà  napkinsà  areà  neverà  providedà  withà  fastà  food.  Instead, paper plates and napkins, polyurethane containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate) bottles are used, and these are all disposable. Many of these items are tossed in the garbage instead of being recycled, or even worse, merely thrown on the ground. This burdens nature unnecessarily and squanders raw materials. In order to reduce soil and water pollution, government now emphasis more on the usage ofà  bio-degradable products. Retrenchmentà  ofà  employees: Mostà  ofà  newà  industriesà  willà  beà  capital intensive and may drive local competitors, which have more workers, out ofà  business.  Profit repatriation: Repatriation of profits is another area of concern forIndian economy. As when multinational enters the any countries, people and governmentà  hopeà  thatà  ità  willà  increaseà  theà  employmentà  rateà  and resultà  in economic growth. However, with the multinational operation, host country experiencesà  theseà  benefitsà  forà  aà  shortà  timeà  period.  Inà  longà  runà  neither employment increases (because of capital intensive nature of MNCââ¬â¢s) nor it increases the GDP or GNP because whatever MNCââ¬â¢s earn they repatriate that profit back to their home country. PROBLEMS OF INDUSTRY Environmentalà  friendlyà  productsà  costà  high:governmentà  isà  legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products.  But associated with this issue is theà  problem that fast food player faces ââ¬â theà  cost associated with the environment friendly product. They cost much higher than the normal products that companies uses for packaging or wrapping their products. Balanceà  betweenà  societalà  expectationà  andà  companiesà  economic objectives: à  To balance a societyââ¬â¢s expectation regarding environment with the economic burden of protecting the environment.  Thus, one can see that oneà  sideà  pushesà  forà  higherà  standardsà  andà  otherà  sideà  triesà  toà  beatà  the standard back, thereby making it a arm wrestling and mind boggling exercise. Health related issues: obesity: I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need.  II. Low calories food: Emphasis is now more on low calorie food. In this lineà  McDonaldà  hasà  aà  planà  toà  introduceà  allà  whiteà  meatà  chickenMcnuugget with less fat and fewer calories.  TRENDS IN INDIAN MARKET  Marketing to childrenââ¬â¢s: Fast food outlets in India target childrenââ¬â¢s as their major customers. They introduce varieties of things that will attract theà  childrenââ¬â¢sà  attentionà  andà  byà  targeting childrenââ¬â¢sà  theyà  automatically target their parents because Childrenââ¬â¢s are always accompanied by their parents. Low level customer commitment: Because of the large number of food retail outlets and also because of theà  tendency of customer to switch from one product to other, this industry faces lowà  level customer commitment.  INTRODUCTION OF DOMINOES  Dominoââ¬â¢s Pizza India Ltd. was incorporated in March 1995 as the masterà  franchisee for India and Nepal, of Dominoââ¬â¢s Pizza International Inc. , ofà  USA. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary. Mr. Shyam S. Bhatia and Mr. Hari S. Bhartia of the Jubilant Organosys Group were theà  promoters of the company. Since inception, Dominoââ¬â¢s Pizza India Ltd. has proceeded to become one ofà  the largest and fastest growing international food chains in South Asia.  Thefirst Dominoââ¬â¢s Pizza store in India opened in January 1996, at New Delhi. Today, Dominoââ¬â¢s Pizza India has grown into a countrywide network around220 outlets in 42 cities and isà  the leader in the fast food delivery segment.  Everà  sinceà  ità  wasà  established,à  Dominoââ¬â¢sà  Pizzaà  Indiaà  hasà  maintainedà  itsà  positionà  ofà  marketà  leadershipà  withà  itsà  constantà  productà  innovationà  and maintenanceà  ofà  stringentà  serviceà  standards. Moreà  importantly,à  ità  has established a reputation for being a home delivery specialist capable ofà  delivering its pizzas within 30 minutes to its community of loyal  customers from its entire chain of stores around the country. Customers can order theirà  Ã  pizzas by calling a singleà  countrywide Happiness Hotline ââ¬â 1800-111-123. Infact, Dominoââ¬â¢s was the first one to start thisà  facility for its customers. Dominoââ¬â¢s is committed to bringing fun and excitement to the lives of ourà  customers by delivering delicious pizzas to their doorstep in 30 minutes orà  less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base.  Dominoââ¬â¢s constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow effect(the feel good factor). Dominoââ¬â¢s believes strongly in the strategy of ââ¬ËThink local andà  actà  regionalââ¬â¢. Thus,à  timeà  andà  againà  Dominoââ¬â¢sà  hasà  been innovating toppings suitable to the taste budsà  of the local populace and these have been very well accepted by theà  Indian market. DOMINOES VISION AND OBJECTIVES Dominoââ¬â¢s vision is ââ¬Å" Exceptional people on a mission, to beà  theà  bestà  pizzaà  deliveryà  companyà  inà  theà  world! â⬠.  Dominoââ¬â¢s is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas toà  theirà  doorstepà  inà  30à  minutesà  orà  less,à  andà  allà  our strategies work for fulfilling this commitment towards our large and ever-growing customer base. Dominoââ¬â¢s constantly strives to develop the product that suits the taste of its customers to bring out the ââ¬ËWOWââ¬â¢ effectà   (i. e. the feel good factor). Dominoââ¬â¢s believes in the strategy of ââ¬Å"Think local and act regionalâ⬠ that is blended with a playful image personified by our ââ¬Å"Hungry Kya? ââ¬Å"positioning.  Thus,à  timeà  andà  againà  Dominoââ¬â¢sà  hasà  been innovatingà  toppings,à  suitableà  toà  theà  taste budsà  ofà  the locals and these have been very well accepted by the Indian market, are doing extensively well in the market. We are constantly in the process of innovating further; we introduce new topping every 3 ââ¬â4 months Dominoââ¬â¢sà  understandsà  customersà  demandà  andà  is constantlyà   developing à  localà  flavorsà   understandingà  the localà  sentiments. Also,à  theà  ingredients,à   saucesà  etc. are made keeping in mind the taste buds of Indian consumers while retaining the international flavor.  Dominoââ¬â¢sà  constantlyà  striveà  toà  makeà  theà  companyà  an integralà  partà   ofà  theà  livesà  ofà  theà  targetà  audiencesà   by getting involved with the clientele at the emotional level andà  buildingà  long-termà  relationshipà  withà  them. Thus, Dominoââ¬â¢sà  concentrateà  moreà  onà  carryingà  outà  below-the-line activities in the area it serves. Dominoââ¬â¢s believe in bringing fun and excitement into the livesà  ofà  ourà  clientele. Weà  takeà  ourà  deliveryà  proposition very seriously and our entire corporate ethic is based on it. Dominoââ¬â¢sà  isà  theà  recognizedà  worldà  leaderà  inà  Pizza delivery.  But it isnââ¬â¢t just about delivering; itââ¬â¢s also about giving back to the community. Dominoââ¬â¢s believes that an essentialà  componentà  ofà  corporateà  responsibilityà  isà  to provide support to charitable organizations that benefit theà  communitiesà  whereà  itsà  employeesà  andà  customers workà  andà  live. Dominoââ¬â¢sà  worldwideà   isà   knownà  forà  its commitment toward social causes and believes in adding funà  toà  theà  livesà  ofà  ourà  customersà  andà  communitiesà  it serves. In India, Dominoââ¬â¢s has been associated with the NGOââ¬â¢s devotedà  toà  theà  causeà  ofà  underprivilegedà  Childrenââ¬â¢s.  Dominoââ¬â¢s conducts Store Educational Tour (SET) for the under privileged children time-to-time. Recently this was doneà  inà  theà  oneà  ofà  theà  Dominoââ¬â¢sà  outletà  inà  Delhià  and Mumbai with theà  underprivileged children from CRY (Child Reliefà  andà  You)à  whereà  Dominoââ¬â¢sà  tookà  theà  pledgeà  to provide part-time employment to the eligible wards from CRY who are above 18 years, reiterating its commitment towards social causes. Also, fifty- percent of that dayââ¬â¢s first 20 deliveries of the store were given to CRY toward the cause of the underprivileged children.  The children had a gala time while they learned to make and bake pizzasà  atà  theà  storeà  andà  finallyà  tastedà  theà  sumptuous offeringsà  madeà  byà  themà  duringà  theà  Storeà  Educationalà  Tour. Dominoââ¬â¢s Pizza India also boasts about its commitment to serve its customers on time by implementing the ââ¬Å"30 MINUTESà  ORà  FREEâ⬠ serviceà  commitment , theyà  have been able to achieve this as a result of continuous efforts and dedication of the entire team in improving operating efficiencies . Dominoââ¬â¢sà   Pizzaà  Indiaà  hasà  beenà  consistently à  rated amongstà  the à  topà  2à  pizzaà  chainsà  worldwideà  inà  the Dominoââ¬â¢s family by Dominoââ¬â¢s International, in terms ofà  quality of operations.  Our pizza delivery times have also beenà  judgedà  asà  theà  bestà  deliveryà  timesà  inà  theà  world across all Dominoââ¬â¢s. Communication objectives Category Need Dominoââ¬â¢s master franchise model Industry analysts believed that Dominoââ¬â¢s master franchise model was one of the reasons forà  its success in international markets even in light of the global economic slowdown in 2008. How dominoââ¬â¢s international bucked the trend The strong performance of Dominoââ¬â¢s international master franchises in the midst of the global economicà  slowdownà  wasà  aà  widely debatedà  topicà  amongà  analysts.  Whileà  someà  analysts believed that the recession had helped the growth of these chains due to the ââ¬Ëtrading down factorââ¬â¢ 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. Dominoes Brand Awareness Promotional and advertisement campaigns The pizza delivery business hadà  traditionally been promotion driven. Coupons andà  discounts were offered by all pizza delivery chains to woo customers.  Since its inception, Dominoââ¬â¢s had been known for its unique promotions that included fast delivery and innovations to caterà  to a varied palette. The ââ¬â¢30 minutesââ¬â¢ promise In the year 1973, Dominoââ¬â¢s began a guarantee scheme that its pizzas would be delivered in 30minutes 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 dominoââ¬â¢s pizza better than its competitors? â⬠¢ Varity of Pizzaââ¬â¢s â⬠¢ Services offered â⬠¢ Quality of pizzaââ¬â¢s â⬠¢ Location of the Outlet â⬠¢ Waiting time in the outlet â⬠¢ Door step services â⬠¢ Lower price Communication Mix Communication is very important, particularly when it is two-way. Dominoââ¬â¢s value customerà  feedback and is most responsive to customer preferences. Fast food ought to be a fun experience and this is not possible unless the provider and the consumer are in synch. They are in theà  service business, and their product is positioned as aà  convenience food delivered to the customer hot and fresh in 30 minutes guaranteed.  Every company must follow the eight major marketing communication modes. For Dominoââ¬â¢s direct selling and interactive selling is not needed though they are involved in internet and cable TV promotions. Dominoââ¬â¢s 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 The Dominoââ¬â¢s Pizza franchise has earned the reputation of being one of the fast growing food chains in South Asia.  Dominoââ¬â¢s is committed to bringing fun and excitement to the lives of its customers by delivering delicious pizzas to their doorstep in 30 minutes or less. The fast food franchise is all set toà  make the complete use ofà  its potential market in India, where eating out is a means of entertainment. Its advertisements are image of its core competencies. The Dominoââ¬â¢sà  Pizza Indiaà  franchiseà  keeps implementing variedà  promotionalà  strategies. Dominoââ¬â¢s initially restricted their adà  strategy to banners, hoardings and specific promotions. In August2000, Dominoââ¬â¢s launched the ââ¬ËHungry Kya? (Areà  You Hungry? ) sequence ofà  advertisements on television.  While highlighting its home delivery facility in advertisements, the pizza franchise always adds an element of humour in it. That is exactly why actor Arshad Warsi was made the brand ambassador ofà  the Dominoââ¬â¢s Pizza India franchise. Paresh Rawal, another humorist of Hindi cinema, was also featured in Dominoââ¬â¢s ads. A significant strategic change is that, while the unique selling proposition of Dominoââ¬â¢s is home delivery in all markets, they have been creating dine-in spaces at all their restaurants here in India. Dominoââ¬â¢s Pizzaââ¬â¢s tagline ââ¬Ëkhushiyon ki home deliveryââ¬â¢Ã   which cuts through the advertisingà  clutterà  stillà  remainsà  intact.  Butà  inà  tier-2à  andà  tier-3à  cities,à  asà  peopleà  likeà  to experience eating out close to 75% of their restaurants now have dine-in facilities. This is different from their global strategy where theirà  key focus hasà  beenà  on home delivery. Also,à  theyà  are inà  theà  trial stageà  ofà  orders by internet in India after its success in U. S. Another feature they introduced is a customer can top the Pizza he wants. Dominoââ¬â¢s went a step ahead by differentiating regions and applyingthe taste-factor accordingly. Dominoââ¬â¢s also made ordering simpler through a single toll-free number throughout the country.  Dominos has been following the principle ofà   ââ¬ËThink Local, Act Regionalââ¬â¢Ã  . Events/ Experiences They are sponsoring some college fest, cultural program and promotional events through out the country for promotion. Public Relation Dominoââ¬â¢s Pizza India undertakes local store marketing initiatives. These include specialdiscountsà  toà  loyalà  customersà  andà  paradeà  likeà  activitiesà  suchà  asà  Motorbikeà  formations, distributing special offerà  coupons and phoneà  calls toà  frequent customers. Dominoââ¬â¢s has been innovating toppings suitable to the tasteà  buds of theà  local populace and the Indian market has very well accepted these.  Dominoââ¬â¢s Pizza India Ltd, which runs fast food chain Dominoââ¬â¢s Pizza in the country, has changed its corporate name to Jubilant Food Works Ltd. The change of name came into effect from September 24 2009. ââ¬Å"The decision to change the nameà  has been taken toà  align ourselves with the branding of the Jubilantà  Bhartiaà  Group,à  promotedà  byà  Shyamà  Sà  Bhartiaà  andà  Harià  Sà  Bhartia,â⬠à  Jubilant Food Works Chief Executive Officer Ajay Kaul said. Jubilant Bhartia Group holds the masterà  franchisee rights for the Dominoââ¬â¢s Pizza brand and operations for the whole of India, Nepal,Sri Lanka and Bangladesh.  However, the company will continue to use the brand name ofà  Ã¢â¬ËDominoââ¬â¢s Pizzaââ¬â¢ for marketing and other related purposes. Personal Selling Dominoââ¬â¢s continuously strives to make the company anà  integral part of theà  lives of the target audiences by getting involved with the clientele at the emotional level and building long term relationships with them. Thus, dominoââ¬â¢s concentrates more on carrying out below the line activities in the areas it serves.    
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.