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Managerial Economics Presentation # II - Dhruva Sareen

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Page 1: Managerial economics

Managerial

Economics

Presentation # II- Dhruva Sareen

Page 2: Managerial economics

THE OPTION BETWEEN CHOOSING

DOMINOS’ PIZZA

& MCDONALDS’ BURGER

Page 3: Managerial economics

Variety• McDonalds has 2 vegetarian burgers.

McAloo Tikki

McVeggie

• Other vegetarian things would include the fries, McPuff

and the Veggie Wrap amongst the different kinds of

Icecream and shakes.

• Dominos on the other hand has 11 kinds of pizzas for

the exclusively vegetarians.

• It boasts of a vegetarian substitute of almost all its non

vegetarian products too.

Page 4: Managerial economics

Why go to Dominos!

Page 5: Managerial economics

What does McD have to put on the table?

Page 6: Managerial economics

• Dominos has more than 25 primary products to offer

whereas McDonalds has only 10 to 15 products up for

purchase.

• Therefore, even the non-vegetarians would prefer going

to Dominos if Variety is the parameter in consideration.

Page 7: Managerial economics

The Battle fought every Day!

Page 8: Managerial economics

Diversity• Other than the burgers, McDonalds doesn’t offer much.

The odd wrap and the McPuff just do not cut it

anymore. There is a lack of innovation in its products.

• Dominos keep on adding more products to its food-

range. From breadsticks and wings to rolls, it keeps on

adding new items to its inventory. The most recent

addition to its range is that of the Lebanese Roll and

the Calzone.

• Thus, Dominos wins this round too.

Page 9: Managerial economics
Page 10: Managerial economics

Convenience• Dominos offer pizzas. We are enthralled by the images of

corporate hotshots grabbing a slice of pizza for lunch, but

looking at it pragmatically, it is not feasible for carrying

around.

• Dominos pizza come in a cardboard packing. The burger

comes in a paper wrap. It is easier to put in a bag for

carrying.

• Ketchup sachets can be emptied directly on the burger while

eating. Eating pizza involves comparatively more cluttering.

• McD has launched its drive-thru facility.

• Dominos provides 30 home delivery service. So does McD.

Page 11: Managerial economics

• Even if professionals would like to sit and eat, McD

comparatively has more seating space. Dominos

portrays itself as the pack & take and the Delivery

serviced restaurant.

Page 12: Managerial economics

Taste Preference• McDonalds have tried to adapt to the Indian

sensibilities. Masala McGrill, McAloo tikki, Maharaja Mac are a few examples of such. But it does not allow a change in the preparation. They have to maintain a standard hence no modifications (except a few) are considered.

• Dominos has also tried to adapt to the Indian flavours but not as much as Pizza hut. They have only introduced the Indian tacos that are essentially Indian in taste. Also, a pizza can be modified by putting add-ons.

• A customer may go either way depending upon his mood and nature.

Page 13: Managerial economics
Page 14: Managerial economics

Family Choice• Even though the USP of Dominos is in link to spreading

joy and love with family and friends, the presence of a

mascot for McD which is adored by kids work in its

favour.

• Dominos’ pizza is considered the food-to-be for family

parties.

• But Ronald McDonald and Happy Meals act as a means

of alluring young kids and thus their parents too.

Page 15: Managerial economics
Page 16: Managerial economics

Speed• Both of them are On-the-go foods.

• McD has denoted an ideal service time to be of three

and a half minutes. (McD policy manual)

• Dominos takes ideally ten to fifteen minutes to get the

food ready. Food for delivery is given priority as

delivering it any later than thirty minutes costs it Rs.

300/ order.

• Thus, the professionals who have a jam-packed

schedule will go for McDonalds.

Page 17: Managerial economics
Page 18: Managerial economics

Price• While the McD products range from Rs. 20 to Rs. 140,

the cheapest Dominos pizza which would serve one

would cost Rs. 70-Rs. 100.

• The cheapest vegetarian burger would cost Rs. 29

whereas the cheapest pizza would cost Rs. 70.

• Essentially, the cost benefit analysis would suggest that

McD would provide a better meal satisfaction in a

similar amount of money.

Page 19: Managerial economics

Standard• Recently, it has become an issue that since Pizza hut

was established earlier and people have acquired the

taste for their personal pan pizzas, the presence of raw

flour under the base of the Dominos pizza to keep it

from burning in their gas ovens has become a turn-off

for some people. (This happened due to change in

cooking techniques in 2011)

• It is mandatory on the other hand as a policy for every

McD franchise to maintain the same standard of quality

care.

Page 20: Managerial economics
Page 21: Managerial economics

Promotion• Ronald McDonald is widely known due to its increased

publicity in the market. Noid is hardly known by any of

the generations as the mascot for Dominos.

• Apart from the Happy Meal, the other special offers for

McD are worthless.

• Dominos emphasizes a great deal on combos and offers

which gives a better cost benefit to its potential

customers (families, large groups).

Page 22: Managerial economics
Page 23: Managerial economics

The Moment of Truth!• The analysis of choice has been based on the following

parameters. Let’s see which is the most sought after -

• Variety – Dominos

• Diversity –Dominos

• Convenience – McDonalds

• Taste Preference – McDonalds/ Dominos

• Speed – McDonalds

• Price - McDonalds

• Standard – McDonalds

• Promotion –Dominos

Page 24: Managerial economics