Dominos Pizza: Buyers

Perception and Future

Growth Opportunities in
NCR Market
Final Submission

Submitted By
Madhur Agrawal 11P146
Madhur Paul 11P147
Mayank Agrawal 11P148
Mithun Kumar Naik 11P149
Nakul Khanna 11P150

Marketing Planning

Dr. Avinash Kapoor

Tables of Contents
Acknowledgement 3
Executive Summary4
Objective...............................................................................................................................5
Company Introduction8

SWOT analysis of dominos.....................................................................................................10

Competitor Analysis...............................................................................................................12
Literature Review....................................................................................................................13
Hypothesis...........................................................................................................................18
Methodology.......................................................................................................................19
Survey Results and Analysis..................................................................................................21
Statistical Analysis of Data....................................................................................................26
Conclusion of our Study........................................................................................................27
Limitation of the study and future research...........................................................................28
Appendix..............................................................................................................................29

Marketing Planning

Dr Avinash Kapoor

DECLARATION
We hereby declare that the project work entitled Dominos Pizza: Buyers Perception and
Future Growth Opportunities in NCR Market to the MDI Gurgaon, is a record of an original

work done by us under the guidance of Prof Avinash Kapoor, faculty member of MDI
Gurgaon.

Marketing Planning

Dr Avinash Kapoor

Executive Summary
1) Indian Pizza Market is becoming very lucrative and competitive simultaneously. With
increasing purchasing power and change in eating habits, demand for fast food is
increasing
2) Dominos, Pizza Hut, Sbarro, Papa Johns is some well known international brands
available in India today
3) The key determining factors in the pizza industry are flavour variety, Innovative
textures, shapes and crusts, pizzas delivered hot, add-on products and customization
4) Dominos operates in the highly competitive food service industry in the Quick
Service Restaurant (QSR) sector.
5) We conducted a survey among the consumers asking a variety of questions about their
fast food preferences to unveil the consumer perception about Dominos. in addition to
that we also wanted to know the additional consumer expectation from a popular pizza
joint.
6) With common knowledge and survey we have the following knowledge about Dominos
Market leader in home delivery segment. A good supply chain and distribution
network.
A world recognised brand, very successful with its brand positioning of
Khusiyon ki home delivery in India. People liked the concept of 30 minute
delivery mechanism.

The price wars is very intense among pizza players and margins very low

Very low presence in the dine-in segment. This is segment that can be
explored by the Dominos as the chief rival(pizza hut) has diversified into
home delivery segment

Increasing purchasing power of people in tier-2 and 3 cities provide new

market to them and hence a great opportunity for Dominos to reach these
towns and have a major share of the growing income.

7) We tried testing three hypotheses in our survey. The basic questions of our survey
were formed around it plus some more additional knowledge that we may seek from
consumers.
a) Consumers want holistic dine-in experience and Dominos is not able to
competitively provide this to the consumers. We noticed a need among
consumers to pep up the dine-in segment of Dominos. We noticed in our
survey that a large portion of consumers would welcome the move of new
dine-in restaurants being opened by Dominos. It will surely drive up the

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sales of Dominos and consumer perception about Dominos will surely

change from a home delivery brand to a holistic pizza outlet.
b) We wanted to know that whether Consumers want more and diverse menu
options in a Dominos or are they satisfied with the present menu that
Dominos is offering. We found that people are not that greatly satisfied
with Dominos menu. It needs to pep up its menu and add more products to
its menu. The main competitor has established its foothold and offer diverse
menu and products outside of core business of Dominos (Pizza).

Marketing Planning

Dr Avinash Kapoor

Objectives
1. To identify the buying behaviour of consumers.
2. To identify the consumer perception of Dominos.
3. To explore the future growth opportunities for Dominos in dining segment.

Significance and Justification

Dominos current marketing strategy mostly focuses on delivery business with little emphasis on
dining/restaurant business. Dominos outlets currently cater delivery business with space for only 5-6
tables for dine-in at those outlets. It currently doesnt offer any customized menus for dining.
Its rivals (mainly Pizza hut) are currently offering dining option in addition to the delivery option.
They also have customized menu for the consumers. Dominos is currently losing the business from
those consumers who prefer outdoor dining over delivery.
Also over reliance of dominos on delivery business may hurt in near future if Dominos loses the
market share since it dont have diversified portfolio to factor risk.

Process Details
What we will do as a part of this project:

Step-1 Company Analysis

1> Profile of the company and its current marketing strategy.
2> SWOT analysis of the company

STEP-2 Competitor Analysis

1> Identification of the competitors
2> Marketing Mix analysis of the competitors and company.
3> SWOT analysis of main competitor (Pizza Hut).

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Dr Avinash Kapoor

STEP-3 Market Survey and analysis

1> Preparation of questionnaire keeping defined objectives in mind.
2> Target Market identification: visiting different outlets in NCR.
3> Conceptual and statistical analysis of the responses to achieve the objective.

Marketing Planning

Dr Avinash Kapoor

Company Introduction
Founded in 1960, Dominos Pizza is the recognized world leader in pizza delivery segment operating
a network of company-owned and franchise-owned stores in the United States and international
markets. At present Dominos have more than 9000 franchised and company owned stores in the
United States and 60 international markets. Dominos is listed on the NYSE under the symbol "DPZ."
Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights
for Dominos Pizza for India, Nepal, Sri Lanka and Bangladesh. Dominos Pizza opened its first store in
India in January 1996, at New Delhi. Dominos Pizza India has grown into a countrywide network of
more than 378 stores (as on 31st March, 2011) with a team of over 11,000 people. Over the period
since 1996, Dominos Pizza India has remained focused on delivering great tasting Pizzas and sides,
superior quality, exceptional customer service and value for money offerings. Dominos Pizza India
have endeavoured to establish a reputation for being a home delivery specialist capable of delivering
pizzas within 30 minutes or else FREE to a community of loyal consumers from all our stores around
the country.

History
Dominos Pizza, Inc. (Dominos) delivers pizzas globally. They are traded on the NYSE as DPZ. Dominos
began in 1960 in Michigan. Tom and James Monaghan acquired the Michigan store DomiNicks and
then renamed the store Dominos in 1965. The company opened its first franchise store in 1967 and
went international sixteen years later in 1983. Dominos became a publicly traded company in 2004.
Today, Dominos has about 8,700 franchise stores and employs approximately 10,500 people. As
shown in Figure A, Dominos retains 19 percent of the pizza delivery market share. Following close
behind is Pizza Hut with 17 percent. In 2008, Dominos received the Worlds Fastest Pizza Maker
award.

Current Marketing and Business Strategies

1> Dominos Pizzas Vision illustrates a company of exceptional people on a mission to be the
best Pizza Delivery Company in the world. . To penetrate the Indian market, Dominos
introduced an integrated home delivery system from a network of company outlets within
30 minutes of the order.
2> Four and a half per cent of the turnover of each Dominos franchise store goes into a fund
used for national marketing of the Dominos brand. Television advertising remains the first
choice but Dominos has built an effective social media and digital campaign.

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3> Dominos believes strongly in the strategy of Think global and act local. The main focus of
Dominos has been on consumer-centric areas such as product innovation, taste, pricing and
customer service.
4> With its brand positioning of khusiyon ki home delivery, they are able to emotionally
connect with the buyers.
5> Provide lot of discounts offers such as coupons, free pizza etc.
Dominos Pizza has a widespread presence through a network of 274 stores, spread across 55 cities in
20 states. Further, our thirty minutes or free promise has helped them reinforce their position within
the delivery market. Dominos is the leader in the organised pizza home delivery segment, with a
market share of 65%, according to the Food Franchising Report 2009.The Technopak Report 2009
estimates that only 2% of the monthly expenditure on food bought from outside or ordered-in by
households in India is spent on pizzas and pastas on a monthly basis.

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SWOT ANALYSIS OF DOMINOS

Strength:
1> A world recognised brand, very successful with its brand positioning of Khusiyon ki home
delivery in India.
2> Market leader in home delivery segment. A good supply chain and distribution network.
People liked the concept of 30 minute delivery mechanism.
3> Innovative and delicious new products such as crusts, toppings and flavours suitable to the
taste buds of Indian Consumers.
4> Cost effective and value for money products.

Weakness:
1> Almost zero presence in dining segment, losing out on those customers.
2> Thin profit margin due to price war and increase in cost of raw material.
3> Lack of parking facilities at outlets.
4> Inadequate advertisement.
5> Dominos pizza has high fat and calorie content (and same for pizza industry) and is often
considered unhealthy

Opportunity:
1> Entry into Dinning segment.
2> Growing fast food market means more scope for growth and expansion.
3> Increasing purchasing power of people in tier-2 and 3 cities provide new market to them.
4> They can customize their menus and introduced sea food toppings or other items from
international menu.

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Threat:
1> Increase competition from other pizza companies-local and international.
2> Other fast food companies like Macd, KFC, Subway etc.
3> Increasing health awareness among people and negative advertisement for fast food
segment.
4> Increasing manpower cost and real estate cost.

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Competitors Analysis
Dominos has many competitors both domestically and internationally. Hoovers states that Dominos
is the world's #2 pizza chain (behind YUM! Brands' Pizza Hut division). 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.9 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.
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.

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Literature Review
Indian Pizza Market is becoming very lucrative and competitive simultaneously. With
increasing purchasing power and change in eating habits, demand for fast food is increasing.
There is a huge untapped market in India today with tier 2 and tier 3 cities yet to be
discovered. But with increasing demand, competition is also increasing. There are many
international and local players in Indian market today. McDonald, KFC, Dominos, Pizza Hut,
Sbarro, Papa Johns is some well known international brands available in India today.
Size of Indian Market
Fast food is one of the worlds largest growing food industries. Indias fast food industry is
growing by 40% a year and is expected to generate more than 3 billion dollars in sales by
2012. The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure
expected to zoom to Rs.150 billion by 2012. Because of the availability of raw material for
fast food, huge market, global chains are flooding into the country.
Major Players
a) Dominos pizza is present in around 360 locations.
b) McDonalds having as many as 210 outlets.
c) Pizza hut is also catching up and it has planned to establish 200 outlets at the end of
2011.
d) Subways have established around 80 outlets.
e) KFC has around 110 outlets in India.
Strength of Dominos
Dominos operates in the highly competitive food service industry in the Quick Service
Restaurant (QSR) sector. Competition within the QSR sector is particularly intense with
regard to product quality, price, service, convenience and concept.
Beyond ensuring that the core competences of each store are sufficiently strong to deliver
the necessary demands of consumers, pizza delivery stores can seek to make incremental
changes and improvements to their products relative to competitors offerings, in order to
stand out in a crowded market place. In terms of the core product attributes it is possible to
highlight key determinants:
Product attributes
A variety of flavours

Innovative textures, shapes and crusts;

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Pizzas delivered hot

Add-on products

Customization

Service attributes
Competitive pricing

Convenient ordering

Speedy delivery

Convenient store locations [23][24][25][26]

When Dominos entered India in 1995, Pizza was quite low on the taste palate of Indians.
Fourteen years and 274 stores later, brand Dominos seems to be on a roll, having not only
made pizzas popular with the country's burgeoning middle class, but also the brand
omnipresent.
Dominos have constantly focused on consumer-centric areas such as product innovation,
taste, pricing and customer service. Our several products innovations such as Double Cheese
Crunch Pizza, Kebab Pizzas, Cheese Burst Pizza, Dominos Calzone, Chicken Wings amongst
others, and most recently Pasta, have gone down well with the consumers. As the result, we
have been able to get quick product acceptance from them and often that is the first and
most important bridge that a foreign food category has to cross. On the other hand, offers
like, Pizza Mania at Rs 35/- per Pizza and Fun Meal for 4 has helped us drive value-formoney
proposition allowing access to the brand. We have realised that value for money is an
extremely important need for Indian consumers, especially in the context of the food
services market. Then our 30 minutes or free service guarantee gives a differentiated edge
to our brand amongst the Indian consumers. Dominos Pizza has a widespread presence
through a network of 274 stores, spread across 55 cities in 20 states. Further, our thirty
minutes or free promise helps us reinforce our position within the delivery market. Its no
surprise then, we are the leaders in the organised pizza home delivery segment, with a
market share of 65%, according to the Food Franchising Report 2009. Now, we seek to
increase our penetration through new store openings in existing cities where we operate
stores. The Technopak Report 2009 estimates that only 2% of the monthly expenditure on
food bought from outside or ordered-in by households in India is spent on pizzas and pastas
on a monthly basis. We see that as a opportunity to capitalise on low penetration. Over the
last two years, our sales revenue has grown by more than 100%. Also, the average same
store growth in the last three fiscals has been around 16%. Our initiatives in the area of
brand building, product innovation and penetration coupled with the changing

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demographics in the country have helped. Some of the factors that have driven growths and
perception of Pizzas as a meal option have been changing lifestyles, rising incomes,
especially amongst youth, growing middle class and nuclear families and increase in working
women population. So, while there are challenges in every market, the manner in which
brands overcome them is what matters. With global exposure and changing demographics,
Indian consumers are not very different in terms of their expectations from service brands.
The key for us is to have an engaged, trained and motivated team that can help us
overcome any day-to-day challenges that might arise. Our operations have been ranked
number 1 in the Dominos Global Operations amongst countries with 100 or more stores in
2006 and 2007 and amongst top 3 in 2008. One of the reasons for this has been our robust
training programme, which covers every aspect of our store operations. We are developing
new training mechanisms and practices such as automated video training manual for our
employees to further improve our training efficacy. Affordability is one of the important
pillars for the Dominos brand. It goes aptly with the functional benefits that we provide our
consumers. Affordability apart, great taste and world class customer service are the other
important pillars of our brand. In India, for a brand that has aspiration to cut across
consumer segments, affordability is critical. That said, it is still one of the aspects of brand
building, not the most important tool to create a strong brand. [27]
Consumer Perception
The young Indian consumer has passion for visiting fast food outlets for fun and change but
home food is their first choice. They feel homemade food is much better than food served
at fast food outlets. They have the highest value for taste and quality (nutritional values)
followed by ambience and hygiene.
Consumer perception about fast food in India: an exploratory study: Anita Goyal and N.P.
Singh
In Indian context, there is high concern towards health in twenty-first century. There are
health related articles in daily newspapers, and health shows on television. Recent news
articles indicate that Indians are facing the problem of obesity and among kinds of food
fast food is one of the reasons for the same. However, there is gap of a particular research
in Indian context to have a link between the health problems and fast food consumption. In
future, genetically modified food may take the place of fast food of today. [31][32][33]
Consumer choice is up to the individual and they want to know the product they are
contemplating eating![34]
Research would indicate that there remains a significant gap between young consumers
nutritional knowledge and their ability to implement such knowledge into the reality of their
daily food behaviour.

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On the basis of the study, it may be expressed that many young consumers whilst being
aware of nutritional information and potential implementation, may indeed be very hesitant
in actually putting the theory into practice! This must not be underestimated in the
continued pursuit of a better diet and/or lifestyle for tomorrows adult consumers. [35]
Challenges
Fastfood is not an alien concept to Indians; roadside shops have offered snacks-to-go since
time immemorial and the country has a long tradition of indigenous fastfood served by a
variety of street vendors. Whether the southern 'Dosas' or the 'Phulkas' in the north, the
'Vada', 'Samosas' or 'Bhelpuri', this inexpensive cuisine is still going strong, and street selling
is a low-cost method of food distribution.
However, since the arrival of established fastfood chains such as McDonald's,
marketing savvy and dollar power have given fastfood a very western orientation. The
weekend stampedes outside any McDonalds restaurant are standing testimony to this fact.
But the burger behemoths still have a long way to go. Local fastfood is not easily
undermined by these interlopers, since methods of mass production have not been
perfected and, in any case, they would have to compete with low cost 'artisan' production.
On the other hand, the reality is that established local fastfood chains, like Nirulas, Wimpys
or Haldiram, are sensing competition by the growing popularity of McDonald's and other
international chains. Though Nirulas does not admit to any drop in sales overtly, industry
sources reveal that they have lost 18% of their original market share.
So far, the fastfood chains have gained their popularity among the major metropolitan cities
of India and some smaller cities, such as Pune or Baroda. Before the arrival of these fastfood
chains, Nirulas was the market leaderin Delhi. In fact, Nirulas taught Delhi-dwellers what
pizzas and burgers were all about. Nirulas was commanding a monopoly until western
chains arrived in India.

Opposition to western chains

Initially, when the larger fastfood chains first started to enter the Indian market, they bore
the brunt of domestic opposition to foreign investment. Even when permission was secured
to open an outlet, companies faced organised boycotts and threats of violence. In one
celebrated instance, a KFC outlet was closed for breaching local hygiene regulations.
As late as 1998, the Hindu extremists of the Vishwa Hindu Parishad (VHP) party campaigned
against a new McDonald's outlet at Ville Parle in the Mumbai area, initially against its
supposed use of beef (untrue - McDonald's bowed to Indian tastes and dietary practices by
eschewing beef or pork in favour of using mutton). Later the VHP took a 'swadeshi' line,
accusing the company of taking away local jobs. Ironically, local catering businesses did not
support this campaign - they saw it as threat to free trade. [36]

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Adding Value to the Offerings

Companies can use of tools of advertising and marketing to strengthen the brand as a way
to create value for customers. Companies with better performance in price use to work with
large volumes, repeating behaviour from other segments or sectors. The emphasis on low
price leads to little attention to product and services, as confirmed in this study. [29][30]
Determinants impacting consumers food choice with reference to the fast food
consumption in India
The Authors: Ritu Anand, Asia Pacific Institute of Management, New Delhi, India
The key determinants impacting consumers food choice are passion for eating out, socialize,
ambience and taste for school and college goers and convenience for dual-income families
in urban India. Findings indicate that fast food companies can no longer rely on convenience
as USP in India, unless the implications of same on consumers health are given equal
importance in the years to come. Development is not just expansion of food outlets and
changing food and eating habits at the cost of consumers health. There is a loss of identities
in bringing uniform tastes and preferences. [28]

Challenges for Dominos in India

1. Competition from Local Food Retailers
2. Pricing: Food pricing was a sensitive issue in India. An ideal strategy was to focus on
customers ability to pay and tap the rich and upper middleclass population in India.
The mass markets in India were price sensitive. The positive factors were the growth
in consumer markets with rapid growth in disposable incomes, development of
modern urban lifestyles and the demand for value
3. Concentrated on home delivery and take away segment only, very little option in
dining.[22]

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Hypothesis Development
Hypothesis 1
Consumers want holistic dine-in experience and Dominos is not able to competitively
provide this to the consumers
People in NCR market has high disposable income and prefers to go out for dine-in on
weekends. They put greater emphasis on store ambience and services and want holistic
dine-in experience. Dominos have fall short of these expectations and it is one of area of
improvement for Dominos.

Hypothesis 2
Consumers want more and diverse menu options in a Pizza Shop
One of the areas of weakness of Dominos is very limited menu options which are available
to consumers in their dine-in restaurants. It is one of those areas where Pizza Hut, the main
competitor has established its foothold and offer diverse menu and products outside of core
business of Dominos (Pizza).

Hypothesis 3
People perceive Pizza as unhealthy and prefer healthy wholesome diet.
People nowadays have become more health conscious owing to greater awareness and they
want a healthy and wholesome diet that is good to their body and hence the Pizza industry
can provide healthier options to the target consumers.

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Methodology
Type of Research
Detailed questionnaires have been prepared for consumers. We have visited different
Dominos outlet for primary research purpose. The secondary data has been collected from
the journals and Internet websites.

Sampling Technique
The simple random Sampling Method will be considered for the study, which is based on
assumption that the respondents are randomly drawn from population. The consumers will
have consumed pizza and fast food from most brands available in India. The sample is
random from these consumers.

Target Population
The target population selected for the research consists of consumers and potential
consumers from Dominos Pizza. Consumers have been selected from different income
groups, age groups. Sampling process incorporates steps as given below

Sample Size and Sample Description

The sample size of this study is the questionnaire, consists of one part:
130 responses from consumers

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Actual Collection of Data

Primary Sources:
The primary data is based on the objectives of the study, research approach through survey
method that is questionnaire development and responses have been obtained by floating
the questionnaire to social networking websites and sending it to email ids of
known/potential customers. In addition to this, data was collected from store visits.

Secondary Sources:
Secondary data has been gathered from journals, articles from newspapers, and internet
websites.

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Survey Results and Analysis

1) Annual income of our perspective customers

percentage
10 and

30%

5-10 lacs

47%

3-5 lacs

21%

below 3

percenta
ge

3%

0%

10%

20%

30%

40%

50%

Our sample size has an income which is greater than 5 lacs. So a major part of our sample
belongs to upper middle class.

2) What is the food chain outlet you prefer when you go out for meal?

Sales
18%

26%

Dominos
25%

12%
18%

Pizza Hut
McDonalds

Pizza outlets enjoy a huge share in the fast food segment. Dominos and pizza hut combined
enjoys 43% share in the eat out segment. People like to go out for a pizza in pizza hut or
Dominos outlet or order pizza at home 43 % of the total times they eat from outside.

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3) How often do you consume pizza?

percentage
40%
30%
20%
10%
0%

25%

15%

7%

37%
17%

percent

Major portions of our customer are not hardcore pizza eaters. They consume pizza for
change of appetite and to savor their taste buds.79 % of our consumer base either
consumes pizza after at least 15 days.
4) Rate Dominos Pizza on the basis of following factors (1 - Lowest; 5 - Highest) Taste

21%

5
4
3
2
1

43%

29%

percentage of people
given a particular rating

7%
0%
0%

10%

20%

30%

40%

50%

The mean of the taste rating given by the people is 3.78. People perceive Dominos pizzas
taste largely to be above average. This is an excellent data for an outlet which is serving
people from such diverse background with such diverse taste needs and food exposure.

5) Rate Dominos pizza on the basis of service and restaurant ambience

21%

43%

4
29%

percentage of people
given a particular rating

7%

2
0%

1
0%

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20%

30%

40%

50%
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Mean of ambience is 2.93. This is disappointing for popular brand like Dominos. In our
literature review we have mentioned that growing urban population require service and
ambience. They have a lot of disposable income in their hands and are ready to shed money
for quality product and service if Dominos upgrades the wholesome experience of its brand
it would attract a lot of potential customer with a lot of disposable income.

6) Rate Dominos pizza on the basis of home delivery

37%

44%
11%

percentage of people
given a particular rating

6%
2%

1
0%

10%

20%

30%

40%

50%

The mean of rating of home delivery is 4.08. The Dominos has an excellent perception in
terms of home delivery. It has developed its brand value in terms of home delivery. The
promotion scheme in which it promises delivery in minimum 30 minutes has been a huge
success among the consumers. This data verifies the same.

7) Rate Dominos pizza on the basis of menu variety

11%

35%

42%

10%
2%

1
0%

10%

20%

30%

40%

percentage of people
given a particular rating

50%

The mean of menu variety is 3.43. The menu variety of Dominos is above average but still
there is a lot of scope of improvement in Dominos menu. The scope of improvement as per
consumer perception has been explained in one of the succeeding questions.

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8) Rate Dominos pizza on the basis of value for money

15%

37%
31%

percentage of people
given a particular rating

12%
5%

1
0%

10%

20%

30%

40%

A major portion of our customer base perceives Dominos to be at least average in terms of
value for money. The means turns out to be 3.45.
9) Rate Dominos pizza on the basis of promotional discounts

15%

5
4
3
2
1

37%
37%
8%
3%
0%

10%

20%

30%

percentage of people
given a particular rating

40%

The mean turns 3.53. Dominos has been very active in giving out promotional offers in form
of coupons, combos and discounts. It tries to provide the most lucrative discounts and
combos for its consumers by promotion through media channels and off the shelf sales.

10) What is your perception about pizza?

2% 11%
Wholesome Diet

87%

Tasty but Junk

Food

People in NCR perceive pizza to be junk unhealthy food. They consume pizza because it
stimulates their taste buds and not for the nutritional content. That is one of the reasons
why 79% of consumer eats pizza after at least 15 days. Dominos should work to promote
pizza as a healthy wholesome diet.

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11) What menu extension will you like to have in Dominos?

47%

Extra Toppings
Mocktails
Salads
Desserts
Choice of crusts

29%
39%
44%
49%
0%

percentage of people
given a particular rating

10% 20% 30% 40% 50%

12) Would you prefer to go to Dominos dining outlet for having pizza?

37%
63%

Ye
s
No

There is a definite indication by the people that if Dominos provides on table service along
with the better ambience its market share and consumer base will increase.

Marketing Planning

Dr Avinash Kapoor

26

Statistical Analysis of Data

To test this hypothesis we have used T-distribution as we do not know the standard
deviation of the population. For a sample size of 105 we have calculated the sample mean
and sample standard deviation. Here all the parameters are rated on a scale of 1 to 5(1
being the most preferred) so we assume that a promotional channel is effective when it has
a population mean less than 3.
H0 : 3
H1: > 3
Here we have taken the probability of Type I error as 5%.

Factor

Mean

Variance

Std.
deviation

t statistic

critical Relevance to
t value Dominos

Taste

3.55

0.76841

0.87659

7.153817

1.658

Important

consumption
pattern

3.44

2.160018 1.4697

3.413467

1.658

Important

service and
restaurant
ambience
2.88

0.941309 0.970211

-1.41022

(-)1.29 Reject

home delivery 4.06

0.900791 0.9491

12.73402

1.658

Important

menu variety

3.41

0.791566 0.8897

5.254265

1.658

Important

value
money

3.4

1.097543 1.047637

4.353322

1.658

Important

3.5

0.8969

6.019628

1.658

Important

for

promotional
discount

0.947048

Taste + value for money + home delivery + Indian customization make Dominos no. 1 and the

market leader in Indian pizza industry.

Also people put emphasis on menu variety and promotional discount and healthy food
items to be available. Though the hypothesis is inconclusive about service and restaurant
ambience but we cannot the reject the alternate hypothesis also by this it can only be said
with some probability that our assumed hypothesis is rejected based on sample data
collected.

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Dr Avinash Kapoor

27

Conclusion of our Study

Hypothesis 1
Consumers want holistic dine-in experience and Dominos is not able to competitively
provide this to the consumers
Though survey is inclusive about this hypothesis, we still cant reject it. Still quite a people
have given Dominos ranking less than or equal to 3 and hence there is scope of
improvement for Dominos

Hypothesis 2
Consumers want more and diverse menu options in a Pizza Shop
Quite a large number of people seek menu variety and give high weightage to this
parameter. Dominos can expand the current menu and can match or exceed the rivals
offerings.

Hypothesis 3
People perceive Pizza as unhealthy and prefer healthy wholesome diet.
Overwhelming majority of people perceive pizza as unhealthy and as such Dominos can
improve the menu and provide healthy items to match expectation of health conscious
people.

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Dr Avinash Kapoor

28

Limitation of the study

For sample data we tried to collect data from a diverse population but out data was bit
biased in term of age group (Mainly 18-25 years).

The survey data was validated internally only and not by any external agency.

A comparative study for other brands (like Pizza Hut) was not done due to scope of
project so result interpretation was standalone for Dominos only, and measured in
terms on independent brand effectiveness.

We cannot base our result or hypothesis completely on the basis of the population
survey as the analysis of results can only be analyzed and proposed. The result cannot
be generalized for whole population.

If we accept the hypothesis of our study that is because we could not disprove it, so we
cannot the reject the alternate hypothesis also by this it can only be said with some
probability that our assumed hypothesis is accepted based on sample data collected.

Future Research
Dominos has at present has around 50% of the market To increase the customer
penetration Dominos should come out as a thought leader and increase customer
engagement though online promotion and social networking sites. Examples of such
medium are Facebook, twitter, online advertisement and promotional as well as engaging
activities like contests. Dominos can conduct studies to determining the effectiveness of its
current promotional (both online and advertisement) strategy and can improve upon these
processes.
Other ways to increase customer involvement is by having regular polls regarding new
products launched or will be launched in the future which will makes customers feel an
integral part of the product planning process. Moreover it will be a great foot forward in
reducing marketing costs and help in gaining access to a larger population.

Marketing Planning

Dr Avinash Kapoor

29

Appendix
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David B
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during recession
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5. Management science in marketing, D B Montgomery, G L Urban -- 1974
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from ageing -- 2006
8. Brand valuation : concepts and applications -- 2005
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through building positive meaning -- 2006
10. Building brands directly : creating business value from customer relationship, Stewart
Pearson -- 1996
11. Competing on value : bridging the gap between brand and customer value, S Knox, S
Maklan -- 1998
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-- 1998
13. Driving brand value : using integrated marketing to manage profitable stakeholder
relationships, T Duncan, S Moriarty -- 1997
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15. AMA handbook for customer satisfaction, A Dutka -- 1995
16. Building customer-brand relationships -- 2009 , scultz de
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19. Advertising promotion : supplemental aspects of integrated marketing communications -2000, Shimp, Terence A
20. Analyzing sales promotion : how to profit from the power of promotion
marketing, Totten, John C

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Dr Avinash Kapoor

30

21. Advertising and promotion : an integrated marketing communications perspective -2010, Belch, George E; Belch, Michael A; Purani, Keyoor
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Marketing Planning

Dr Avinash Kapoor