introduction of domino

292
PROJECT ON ENVIRONMENTAL SCANNING ON DOMINOS CHAPTER 1.INTRODUCTION OF DOMINO’S PIZZA Domino's Pizza 1

Upload: sweetyshah321

Post on 26-Nov-2015

16 views

Category:

Documents


2 download

DESCRIPTION

environment scanning

TRANSCRIPT

INTRODUCTION OF DOMINOS PIZZA

PROJECT ON ENVIRONMENTAL SCANNING ON DOMINOS

CHAPTER 1.INTRODUCTION OF DOMINOS PIZZADomino's Pizza

The current Domino's logo introduced in 2012.

TypePublic

Traded asNYSE:DPZ

IndustryRestaurants

FoundedYpsilanti, Michiganon June 10, 1960

HeadquartersDomino Farms Office ParkAnn Arbor Charter Township, Michigan, United States

Area servedWorldwide

Key peopleTom Monaghan, FounderJ. Patrick Doyle, CEO

ProductsPizza,pasta,chicken wings,submarine sandwiches,wraps,desserts

Revenue$1.425 billionUSD(2008)

Employees145,000

Websitewww.dominos.com

INTRODUCTION:

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. On May 12, 1983, Domino's opened its first international store, inWinnipeg,Manitoba, Canada.That same year, Domino's opened its 1,000th store overall. In 1985, they opened their first store in the United Kingdom inLuton.Also in 1985, Domino opened their first store inTokyo, Japan. By 1995, Domino's had expanded to 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day across five continents.From 2007 to 2012, Domino's gradually established a presence in India with at least 1,000 locations by 2012. Domino's Pizza in IndiaDomino's Pizza India Ltd was incorporated in March 1995 as the master franchisee for India and Nepal, of Domino's Pizza International Inc.,of USA. Moreover, the company holds the master franchisee rights for Sri Lanka and Bangladesh throughits wholly owned subsidiary. Mr.Shyam S. Bhartia and Mr. Hari S. Bhartia of the JubilantOrganosys Group were the promoters of the company Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. Thefirst Domino's Pizza store in India opened in January 1996, at New Delhi. Today,Domino's Pizza India has grown into a country wide network around 250 outlets in 49 cities and is the leader in thefast food delivery segment. Eversinceitwasestablished,Domino'sPizzaIndiahasmaintaineditspositionofmarket leadership withits constant productinnovation andmaintenance ofstringent service standards. More importantly, it has established a reputation for being a home delivery specialist capable ofdelivering 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 the countrywideSince inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. The first Domino's Pizza store in India opened in January 1996, at New Delhi. Ever since it was established, Domino's 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 Hunger Helpline - 1800-111-123. In fact, Domino's was the first one to start this facility for its customers.

Menu :

A makeline at a Domino's

The current Domino's menu features a variety ofItalian-Americanentrees and side dishes. Pizza is the primary focus, with traditional, specialty, and custom pizzas available in a variety of crust styles and toppings. In 2011, Domino's launched artisan-style pizzas. Additional entrees includepasta,bread bowls, andoven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to other fast food restaurants, to ensure efficiency of delivery.Historically, Domino's menu consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coca-Cola as the only soft drink option.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish orpanpizza. Its introduction followed market research showing that 40% of pizza customers preferred thick crusts. The new product launch cost approximately $25 million, of which $15 million was spent on new sheet metal pans with perforated bottoms.Domino's started testing extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".

In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from the crust up", making significant changes in the dough, sauce, and cheese used in their pizzas. Their advertising campaign admitted to earlier problems with the public perception of Domino's product due to taste issues.

After a stock low point in late 2009, the company's stock had grown 233 percent by late 2011. Even as the American economy has suffered and unemployment has risen, Domino's has seen its sales rise dramatically through its efforts to re brand and retool its pizza.

Domino's servesCoca-Colaproducts and is the only "Big Four" pizza chain to do so. RivalsPapa John's PizzaandLittle Caesarssold Coca-Cola in the past (Pizza Hut, due to its previous ownership byPepsiCo, has a lifetime contract to sellPepsiproducts), but both switched to Pepsi in 2012 and 2007, respectively. Domino's Pizza in Mexico switched to Pepsi in November 2012.

In September 2012, Domino's announced it was going to roll out a pan pizza on September 24, 2012.Following this move, the Deep Dish pizza was discontinued after 23 years of being on the menu.

30-minute guarantee :

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when a Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80 million, but accepted a payout of $15 million. The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to then-CEO Tom Monaghan.

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes", alluding to the earlier pledge but stopping short of promising delivery in a half hour.

The company continues to offer "30 minute or Free" guarantee for orders placed in its stores situated inColombia,India,Malaysia*,Vietnam,Singapore*, andTurkey.

*A "Free Regular Pizza Voucher" is given in these markets instead if later than 30 minutes.

CHAPTER2. DOMINOS VISION MISSION

Domino's vision is focused on "Exceptional people on a mission to be the best pizza delivery company inthe world!"Domino's is committed to bringing fun and excitement to the lives ofour customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all itsstrategies are aimed at fulfilling this commitment towards its large and ever-growing customerbase.Domino's constantly strives to develop products that suit the tastes of its customers, therebybringing 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 these have been very well accepted by the Indian market.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' that is subtly blended with a playful images personified by its ' Hungry Kya? PositioningDominos has been innovating toppings suitable to the taste buds of the population and this has been accepted by the Indian market.CHAPTER3.ENVIRONMENT SCANNING

Environmental scanningis one component of theglobal environmental analysis.Environmental monitoring, environmental forecastingandenvironmental assessmentcomplete the global environmental analysis. The global environment refers to the macro environment which comprises industries, markets, companies, clients and competitors. Consequently, there exist corresponding analyses on the micro-level. Suppliers, customers and competitors representing the micro environment of a company are analyzed within the industry analysis.

Environmental scanning can be defined as the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market.The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups. Issues are often forerunners of trend breaks. A trend break could be a value shift in society, a technological innovation that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a social phenomenon'. A trend can be defined as an environmental phenomenon that has adopted a structural character. Macro environment There are a number of common approaches how the external factors, which are mentioned in the definition of Kroon and which describe the macro environment, can be identified and examined. These factors indirectly affect the organization but cannot be controlled by it. One approach could be the PEST analysis. PEST stands for political, economic, social, and technological. Two more factors, the environmental and legal factor, are defined within thePESTEL analysis(orPESTLE analysis).

The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis.

Politicalfactors are basically to what degree thegovernmentintervenes in the economy. Specifically, political factors include areas such astax policy,labor law,environmental law,trade restrictions,tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goodsor merit bads). Furthermore, governments have great influence on thehealth,education, andinfrastructureof a nation.

Economicfactors includeeconomic growth,interest rates,exchange ratesand theinflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm'scost of capitaland therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy.

Socialfactors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

Technologicalfactors include technological aspects such asR&Dactivity,automation, technology incentives and the rate oftechnological change. They can determinebarriers to entry, minimum efficient production level and influenceoutsourcingdecisions. Furthermore, technological shifts can affect costs, quality, and lead toinnovation.Expanding the analysis to PESTLE or PESTEL adds:

Legalfactors includediscrimination law,consumer law,antitrust law,employment law, andhealth and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

Environmentalfactors include ecological and environmental aspects such as weather, climate, andclimate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Other factors for the various offshoots include:

Demographicfactors include gender, age, ethnicity, knowledge of languages, disabilities, mobility, home ownership, employment status, religious belief or practice, and income level.

Regulatoryfactors include acts of parliament and associated regulations, international and national standards, local government by-laws, and mechanisms to monitor and ensure compliance with these.

Microenvironment:

Microenvironmentcarries different meanings depending on the context.

Medical:is a small or relatively small usually distinctly specialized and effectively isolated.habitatorenvironment(as of anerve cell)

Science:The environment of a very small, specific area, distinguished from its immediate surroundings by such factors as the amount ofincident light, the degree ofmoisture, and the range oftemperatures. The side of a tree that is shaded from sunlight is a microenvironment that typically supports a somewhat different community oforganismsthan is found on the side that receives regular light. Also called microhabitat.

Business:Factors or elements in an organization's immediate area of operations that affect its performance anddecision makingfreedom. These factors include competitors,customers,distribution channels, suppliers, and the general public. CHAPTER4: MACRO AND MICRO ENVIRONMENT ANALYSIS OF DOMINOS

Dominos pizza is considered to be worlds most renowned company around the globe. Dominos offer both, delivery from door to door as well as take away from store. Currently Dominos pizza chain is expanded over 8000 store around the world, whereas foremost cities of U.S have a dominos pizza. Dominos fulfils customers yearning for Italian American food through its treasure of fresh ingredients and by offering wide variety of options in the menu.Macro and micro environment Analysis:

Downturn in national or world economies and rising of inflation which is being experienced current period, are the most common factors that can affect businesses. Conversely, what cause an adverse effect for many companies, has had a constructive effect for Dominos Pizza UK, Ireland, the most leading delievery franchise. Keeping in view the current economic situation Dominos Pizza sales had increased up to 11% in the first six week of 2008 than that of same period of last year, due to, mostly people preferred for delivery at home, instead of going for eat outs, Like-for-like sales rose 14.7% last year, despite a price rise across Domino's menu last autumn. (The Times, 20th February 2008)According to Cheif Executive, The Chris Moore, 'The results are proof that our price point is resilient in these economic times and that we are benefiting from the downturn in the restaurant sector. Instead of eating out three or four times a week, we are seeing real signs that [people] have cut that to once or twice. They are filling up that gap with pizza instead.' (The Times, 20 February 2008)

His comments came soon after the company announced plans to move up to the main market in order to obtain funds it has been unable to attract in the nine years it has spent on the Alternative Investment Market (AIM). Domino's shares have climbed 14-fold since the company floated in November 1999 and the group now has 501 sites across the UK and Ireland, with plans to open 50 more this year. Its aim is to have 1,000 by 2017. (The Times, 20th February 2008).

Domino's said, sales had been enhanced, due to these new pizzas, like wise, Meateor and the rugby-themed Scrummy, and by offering new ways of ordering, like wise e-commerce sales--orders taken electronically either online or through text messages, due to which sales have been intensified to 60.5%. According to Domino's prediction, the drift for ordering-in food would continue this year. At present the external environment shifting rapidly. The external environment consists of everything outside the business.

Even in the present crtical economical situation, dominos continues to succeed which is due to dominos remorseless emphasis on the quality of dominos pizzas, penetrating commitment to service and by publicizing to dominos customers to whenever and wherever they are willing to order. It is their frevency that has brought profit growth of 27.8% to 29.9m (2008: 23.4m) and that will persists to get-up-and-go dominos business in years to come.

PEST ( Political, Economic, Social and Technological)

i. POLITICAL ISSUES:

Political issues include regulatory frame work operating in judicial system which may distress the business in diverse ways. In UK, there isnt as such factors that might embrace dominos business. While factors like, laws on business employment, pollution and taxation apply on the organization which it should follow according to rules.

ii. ECONOMIC FACTORS:

If the countys economy is better so the GDP of the country will be good, it is the initiative for business as the per capita income increases people will spend more money. According to dominos survey, it came to know that mostly people spend more and visit more often, during or start in on of months. Moreover, rise in inflation rate, leads to increment of cost of raw material which also leads towards higher prices for goods and vice versa

iii. SOCIAL FACTORS:

Dominos is a multinational and it is basically inaugurated from America, therefore, the organization is snowed under by dominos western culture. There are different social forms of society which consists of, upper class, middle class, middle upper class, and lower class. Moreover, every single nation, state has their own cultural norms, beliefs, religion, values which might affect the organization world wide.

iv. TECHNOLOGICAL FACTORS:

At the present time, technology is improving, so as baking and heating ovens will be of new and efficient technology and will provide efficient service. Due to these innovative technology there are many latest ways of publicizing like wise, through internet; telemarketing through which organization can advertise their products in much more rapidly than ever before. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. New vehicles will make their service more efficient.

Segmentation:

Demographic segmentationIn demographic segmentation, we dividethe market into groups on thebasis of variablessuch as age, gender, etc; these demographic variables are so popular with marketers so thatthey are often associated with the consumers needs and wants.Here are the demographic variables have been used to segment markets.Age: Below 15 years - 0%15 - 20 years - 20%21 - 30 years 40%31 - 40 years - 25%Above 40 years - 15%The companies target audience is the bachelors, youth and the professionals who have notime to prepare food and to grab the food as fast as possible.Gender They targeted both genders.(mainly male becausemany males will not like to preapare foodwhen they are single).Income The market based on economic groupings:Income statusUpper Class 60%Middle Class 35%30 Lower class 5%Occupation -self employed (superior level peoples), officers executives, junior officers, Executives.Ethnicity For this reason they come modified their menuand they added new dishes like peppy paneer and pizzas are available in 3 sizes small, medium, and large.Geographic segmentationGeographic segmentation is basically using the spatial location tosegment the market. In Geographic segmentation calls for the diff geographical units such as states, regions, cities and the south Asia is a one of the major geographic segmentation variables relevant formarketers. Here markets are mainly divided into the rural andurban areas. Dominos intends to penetrate completely within these markets by openingup 20-25 outlets per year in these cities. Dominos has a young andenthusiastic team of more than 2,100employees. Today, Dominos has emerged as the leaderin the fast food segment with about65% of market share of pizza delivery in India andhave outlets more than any other corporationin the business of food, not just the pizzabusiness. All the Company outlets are corporate outlets invested by the company and also managed by the company.Area semi urban and urbanCity class-A and Class-B cities i.e. metro politician citiesRegion --56 regions where the pizza demand ismore.And around 250 outlets in India.31

Psychographic segmentation-- It is the science using psychology to better understand the consumers, and they aretrying tosui with local food, and theyall ready created the brand namein consumers mind byadvertisement and service i.e. 30min delivery.Dominos in 2005 takes the Arshad Warsi(circuit) as their brand ambassador.In Psychographic segmentation, buyers are divided into lifestyle, personality or values.LifestyleBusiness class, outdoor oriented.

PersonalityAmbitious, open to experience.Occasions Regular, specialBenefits Quality, service, delivery in 30 minutes or else free.User statusRegular userUsage rateMediumLoyalty statusMedium loyalReadiness stageIntending to buyCHAPTER5:SWOT ANALYSIS

SWOT analysis(alternativelySWOT Matrix) is a structuredplanningmethod used to evaluate theStrengths,Weaknesses,Opportunities, andThreats involved in aprojector in abusinessventure. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited toAlbert Humphrey, who led a convention at the Stanford Research Institute (nowSRI International) in the 1960s and 1970s using data fromFortune 500companies.The degree to which the internal environment of the firm matches with the external environment is expressed by the concept ofstrategic fit.

Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: are characteristics that place the team at a disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project

Identification of SWOTs is important because they can inform later steps in planning to achieve the objective.

First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective isnotattainable a different objective must be selected and the process repeated.

Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.

CHAPTER6: SWOT ANALYSIS OF DOMINOS PIZZASWOT Analysis

Strength1.Huge popular brand name and high brand loyalty

2.Leading pizza Delivery Company in the world

3.High number of products4.Hygenic food and quick service

5. Leader in online & mobile ordering.

6. Strong brand equity supported by heavy advertising & marketing campaigns.

7. Global franchise operations - more than 3,500 in over 50 countries

8. Efficient and effective supply chain management enables it maintain its goodwill and promises

9. Supply chain & distribution network

10. It has enabled to keep pace with the technology by offering online menus

11. Effective home delivery option

12. Lower price as compared to competitors

Weakness1. High fat and high calorie food not good for health conscious people

2.Franchise management.

3. High staff turnover due to lack of training and development

4. Slow growing and declining same-store sales

5. Weakening bottom lines due to slow growth and decline in the sales.

6. Its ambiance is not up to its competitors

7. Menu not elaborated and modified as compared to other chains

8. Outlets lack space

Opportunity1.Improve efficiency and home delivery service

2. Introduction of new flavor additives and pizza toppings that are region specific can be a good stride for Dominos.

3. The distribution network should be further strengthened so as to ensure market penetration in the existing markets at maximum optimum levels.

4. Growing presence in emerging markets, particularly in India, China.

5. Favourable market expansion opportunities especially in Asian countries like India and China

6. Leverage supply chain & distribution system to introduce new products

Threats1. Intensive competition from a fragmented number of small competitors

2. Changing consumer habits towards healthier food choices.

3. Franchise operations affected by currency exchange fluctuations

STRENGTH:

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 non-vegetarian. 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 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. They are strong presence in the market as a brand name: 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.

WEAKNESS:

Dominos just has delivery outlet but does not have an eating outlet, where the consumers could enjoy themselves. This has provided pizza hut with a competitive edge over Dominos. Dominos also do not have any fixed customer through they are one of the main competitors of the pizza hut. Pizza hut is also an internationally known chain of pizza outlet that entered the Indian market towards the end of the 20thcentury. Its target audience is basically the youth and the families who like socializing. They are initially targeting only the metropolitan cities as they have positioned themselves as an outlet for rejuvenating lost relationship and socializing as they have an excellence ambience to boost it. Thus pizza hut emphasizes more on the ambience, it provides rather than the product it offer. As far as the price is concerned, pizza hut products start at around Rs 160. It is priced much higher than

dominos pizzas but they justify it on the basis of the service and the ambience they provide their customer at the outlet. Pizza Huts marketing strategy is basically aimed to make the consumer feel very important. It actually wants the consumer to believe that Pizza Hut is the ultimate outlet for celebrating anything and everything. It has created an ambience to ensure that customers start finding excuse to the outlet. Dominos has a major threat from Pizza Hut in this aspect. With the increasing number of professionals and increased exposure to western style of eating outdoors frequently, Pizza Hut may quickly score over Dominos. In addition the great interiors, the music and the overall service at the pizza hut outlets create an atmosphere which tempts you to visit the place again. So Dominos have to do something to overcome this problem.

Leaving aside the local restaurant and a few local brands like Smokin Joes & gracias etc, Dominos mainly faces competition between two players Pizza Hut and Smokin Joes. (Jones, 2008)

They dont have dine-in facility: they dont have the dine in facility in their outlets that gives its competitors advantage over it and because its main competitor pizza hut have this facility and dominos is facing the main competition from pizza hut.

Outlets lack space: the outlets lack space which creates the problem of limited sitting space for customers and sometimes customers have to wait for the seats to be vacant for them.

Ambience not up to expectations: it is not so successful in creating an environment which reflects its brand and reputation as dominos being a brand should come up with a different idea which influences the customer.

No option for birthday parties and corporate lunches: instead of being such a big brand in the fast food industry dominos lack the facility of birthday parties or meetings which is a very big weakness as its competitor pizza hut is very good at all these things.OPPORTUNITIES:

New restaurant at busy places: it should open its new restaurants at busy and crowded places where it can attract more customers.

Capturing the new customer through low price menu: it offers a low price menu which is an advantage to it and it should take the proper benefit out of it growing fast food market-scope for expansion: fast food market is growing very fast along with the time as the new generation all are very fond of fast food and pizza is on top of the list hence making it a great opportunity for the company to expand its business and make profit. Introduce more varieties: it should introduce more varieties of pizzas and add more food items along with the pizza.

Bigger outlets: it should increase the size of its outlets as its outlets all being smaller than the competitors hence giving less space for customers to sit and enjoy the meal.

Take away counters: it should include take away counters to its outlets so that people feel more comfortable and easy to bring back. (Boyer, 2007)

THREATS:

From their competitors: it is facing a very tough competition from the existing competitor pizza hut as pizza hut have some of the better facilities with it is regarded better than dominos and hence really affects the market of it distributing the consumers.

Pizza hut main competitive advantage over dominos is dine-in facility: the main competitor pizza hut has a unique dine in facility that makes it different and much better than dominos.Emergence of Papa Johns Worlds Pizza makers: new entrants entering the market are coming as a big threat for dominos as it is facing a hyper competition situation from pizza hut and it this scenario a new entrant can make the situation worse and make it loose market.

Better quality and variety of competitors: dominos being a low price pizza seller than its competitors that gives it an advantage but at the same time the difference in quality can be seen and that makes the difference.

No take away counters for pizzas: doesnt have any take away counters which in turn harms its own market and the consumers coming to it. CHAPTER7: COMPARITION OF DOMINOS WITH PIZZA HUT

Pizza hut is also an internationally know chain of pizza outlet that entered the Indian market towards the end of the 20th century. Its target audience is basically theyouth and the families who like socializing. They are initially targeting only the metropolitan cities as they have positioned themselves as an outletfor rejuvenating lostrelationshipand socializingas theyhave anexcellence ambience toboost it. Thus pizza hut emphasizes more onthe ambience, it provides rather thanthe product it offer. In comparison dominos just has delivery outlet but does not have an eating outlet, where the consumers could enjoy themselves. This has provided pizza hut with a competitive edge overDominos. As far as the price is concerned, pizza hut products start at around Rs 160. It is priced much higher than dominos pizzasbut they justify iton thebasis of theservice andthe ambience theyprovide their customer at the outlet. Pizza Huts marketing strategy is basically aimed to make the consumer feel very important. It actually wants the consumer to believe that Pizza Hut is the ultimate outlet for celebrating anything and everything. It has created an ambience to ensure that customers start finding excuse to the outlet. Dominos has a major threat from Pizza Hut in this aspect. With the increasing number ofprofessionals and increased exposure to western style of eating outdoors frequently, Pizza Hut may quickly score over Dominos. In addition the great interiors, the music, and the overall service at the pizza hut outlets create an atmosphere which tempts you to visit the place again. So dominos have to do something to overcome this problem So dominos have to dosomething to overcome this problem.CHAPTER8: RESEARCHS ANALYSISOFDOMINOS PIZZAThe research conducted clearly indicates that Dominos is the current market leader in India, but may soon face very tough competition from both McDonald and pizza hut. So to improve theirbrand image and consolidate their position in the market, they need to take up some innovative approach very soon. Special area of dominos is home delivery 30 mins concept, using this punch line they grow theirbusiness in various segment like opening dine-infacility, using breakfast concept.The 1st point is that Dominos needs to increase their trials. Since their quality &innovative segment is good this is enough to retain the new consumers. Dominos needs to open the new segment like McDonald-breakfast menu. This can be done by through effective advertisement and sales promotion. Catchy and visually effective commercials would entice consumers to eat pizza industry. 2nd point Pizza Hut is mass consumption product, Dominos havevery good pricing strategy over Pizza Hut but they have dine-in facility as well as pick up facility. 3rd To compete against Pizza HutDomios should have Beautifully furnished outlets and good ambience will also help improve the brand image as well as in growing thebusiness revenue.4th point Dominos has company policy of not asking customers for suggestion which is not a very positive sign. In Indiait is very important to make the consumers feel special. Hence the company candefinitely ask the consumers to give in their suggestion and implement changes whenever possible. This might also give them an insight into new avenues that could be explored.5th point Dominos known for offering discount coupons and price off pretty regularly due to which consumers wait toorder only when offered discounts.Instead the company could offer some pizzas as well asinnovative product at a lower price which would help increase the frequency of pizzas consumption and help in grow new customers. Makes special offerson weekends and week days , use special occasionslike festivals to reach out maximum customers by using effective promotion anddifferent product offering. 6th point Use ofgood public relation exercise like delivering free pizzas to regularcustomer on their birthdays and also offering them price offs on purchasing certain number of pizzas in a month or a quarter would help increase brand loyalty and add apersonal touch to their entire effortSince there arestill manypeople in the country who might not have ever tasted a pizzas, the pizza industry has a lot ofscope to grow. Hence dominos has lot ofOPPORTUNITYand space to its OPENING THE NEWRESTAURANTand conquer more consumers and new markets.

CHAPTER9: RECOMMENDATIONThe dining conditions have to be changed drastically if Dominos have 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.

Dominos is the current market leader in India, but may soon face very tough competition from both McDonald and pizza hut. So to improve their brand image and consolidate their position in the market, they need to take up some innovative approach very soon. Special area of dominos is home delivery 30 mins concept, using this punch line they grow their business in various segment like opening dine-in facility, all over the India. , Also starting the new restaurant with new innovative products as well as opening the new segment for Dominos pizza.

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.

It should work upon its weakness and try to over come the treats which it face from its competitors.

CHAPTER10: CONCLUSIONDominos Pizza regularly innovates the way its product goes with the likings of its customers and in feedback getting customers satisfaction. The slogan of this company which illustrates its aim is that Think Global and act local. Hence, every now and again Dominos Pizza has been suiting its products with delicious touch for consumers. Moreover, giving quality food at reasonable price has been one of the earliest mottos. Steps have been taken such as Fun Meal and Pizza Mania to popularize it more among consumers.Dominos should bring new things in the way Pizzas are made. It should take the quality of pizza the upper level. It should Maintain good environment in outlets and Should concentrate more on marketing itself confidently.

In general this project is based ondominos environmental scanning. Now in global market where they are stand in recent scenario. The mainobjective is increasing the number of customer base ofDominos Pizzas. This also has talked about theentry of various giants in Indian pizza industry. it has touched various aspect ofpizza industry such as product line, comparison,strategy, competition, etc. Also startingthe new restaurant with newinnovative products as well asopening the new segment for Dominos pizza. Dominos Pizza constantly strives to develop products that suit the tastes of its consumers and hence delighting them. Dominos believes strongly in the strategy of 'Think global and act local. Thus, time and again Dominos Pizza has been innovating with delicious new products such as crusts, toppings and flavours suitable to the taste buds of Consumers. Further, providing value for money at affordable products to the consumers has been Dominos motto. Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers.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.CHAPTER10: BIBLOGRAPHYWEBSITEhttp://www.google.co.inhttp://www.wikipedia.comhttp://www.dominoshttp://www.pizzahut.comen.wikipedia.org/wiki/Marketenvironment

PAGE 39