Chapter 1.introduction of Domino'S Pizza: Project On Environmental Scanning On Dominos

PROJECT ON ENVIRONMENTAL SCANNING ON DOMINOS
CHAPTER 1.INTRODUCTION OF DOMINO’S PIZZA
Domino's Pizza
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The current Domino's logo introduced in 2012.
Type Public
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Traded as NYSE: DPZ
Industry Restaurants
Founded Ypsilanti, Michigan on June 10, 1960
Headquarters Domino Farms Office Park
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Ann Arbor Charter Township, Michigan, United States
Area served Worldwide
Key people Tom Monaghan, Founder
J. Patrick Doyle, CEO
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Products Pizza, pasta, chicken wings,submarine
sandwiches,wraps, desserts
Revenue $1.425 billion USD (2008)
Employees 145,000
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Website www.dominos.com
INTRODUCTION:
Domino's Pizza is an American restaurant chain and international franchise pizza
deliverycorporation headquartered at the Domino Farms Office Park (the campus being
owned by Domino's Pizza co-founder Tom Monaghan) in Ann Arbor Charter Township,

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Michigan, United States, near Ann Arbor, Michigan. Founded in 1960, Domino's is the
second-largest pizza chain in the United States (after Pizza Hut) and the largest
worldwide, with more than 10,000 corporate and franchised stores in 70
countries. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. On
May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba,
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Canada. That same year, Domino's opened its 1,000th store overall. In 1985, they opened
their first store in the United Kingdom in Luton. Also in 1985, Domino opened their first
store in Tokyo, 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
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day across five continents. From 2007 to 2012, Domino's gradually established a
presence in India with at least 1,000 locations by 2012.
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Domino's Pizza in India
Domino'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 through its wholly
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owned subsidiary. Mr.Shyam S. Bhartia and Mr. Hari S. Bhartia of the
Jubilant Organosys 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. The first Domino's Pizza store in India opened in
January 1996, at New Delhi. Today,
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Domino's Pizza India has grown into a country wide network around 250 outlets in 49
cities and is the leader in the fast food delivery segment.
Ever since it was established, Domino's Pizza India has maintained its
p o s i t i o n o f m a r k e t leadership with its constant product innovation
and maintenance of stringent service standards. More importantly, it has
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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 o f
stores around the country. Customers can order their pizzas by calling
the countrywide
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Since 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.
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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.
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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.
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Menu :
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A makeline at a Domino's
The current Domino's menu features a variety of Italian-American entrees 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.
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Additional entrees include pasta, bread bowls, and oven-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,
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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
or panpizza. Its introduction followed market research showing that 40% of pizza
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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".
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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.
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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.
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Domino's serves Coca-Cola products and is the only "Big Four" pizza chain to do so.
Rivals Papa John's Pizza and Little Caesars sold Coca-Cola in the past (Pizza Hut, due to
its previous ownership by PepsiCo, has a lifetime contract to sell Pepsi products), but
both switched to Pepsi in 2012 and 2007, respectively. Domino's Pizza in Mexico
switched to Pepsi in November 2012.
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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.
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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
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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.
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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 in Colombia, India, Malaysia*,Vietnam, Singapore*, and Turkey.
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*A "Free Regular Pizza Voucher" is given in these markets instead if later than 30
minutes.
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CHAPTER2. DOMINO’S VISION MISSION
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Domino's vision is focused on " Exceptional people on a mission to be the
best pizza delivery company in the world!"
Domino's is committed to bringing fun and excitement to the lives of our customers by
delivering delicious pizzas to their doorstep in 30 minutes or less, and all
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itsstrategies are aimed at fulfilling this commitment towards its large and ever-growing
customer base.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'.
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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.
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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?
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Positioning
Domino’s has been innovating toppings suitable to the taste buds of the
population and this has been accepted by the Indian market.
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CHAPTER3.ENVIRONMENT SCANNING
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Environmental scanning is one component of the global environmental
analysis. Environmental monitoring, environmental forecasting and environmental
assessment complete the global environmental analysis. The global environment refers to
the macro environment which comprises industries, markets, companies, clients and
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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
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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
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social phenomenon'. A trend can be defined as an ‘environmental phenomenon that has
adopted a structural character’.
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Macro environment
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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,
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economic, social, and technological. Two more factors, the environmental and legal
factor, are defined within the PESTEL analysis (or PESTLE analysis).
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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.
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 Political factors are basically to what degree the government intervenes in the
economy. Specifically, political factors include areas such as tax 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
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or be provided (merit goods) and those that the government does not want to be
provided (demerit goods or merit bads). Furthermore, governments have great
influence on the health, education, andinfrastructure of a nation.
 Economic factors include economic growth, interest rates, exchange rates and
the inflation rate. These factors have major impacts on how businesses operate and
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make decisions. For example, interest rates affect a firm's cost of capital and
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.
 Social factors include the cultural aspects and include health consciousness,
population growth rate, age distribution, career attitudes and emphasis on safety.
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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).
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 Technological factors include technological aspects such
as R&D activity, automation, technology incentives and the rate oftechnological
change. They can determine barriers to entry, minimum efficient production level and
influence outsourcing decisions. Furthermore, technological shifts can affect costs,
quality, and lead to innovation.
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Expanding the analysis to PESTLE or PESTEL adds:
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 Legal factors include discrimination law, consumer law, antitrust
law, employment law, and health and safety law. These factors can affect how a
company operates, its costs, and the demand for its products.
 Environmental factors include ecological and environmental aspects such as
weather, climate, and climate change, which may especially affect industries such as
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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:
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 Demographic factors include gender, age, ethnicity, knowledge of languages,
disabilities, mobility, home ownership, employment status, religious belief or
practice, and income level.
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 Regulatory factors include acts of parliament and associated regulations,
international and national standards, local government by-laws, and mechanisms to
monitor and ensure compliance with these.
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Microenvironment:
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Microenvironment carries different meanings depending on the context.
 Medical:is a small or relatively small usually distinctly specialized and effectively
isolated. habitat or environment (as of a nerve cell)
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 Science: The environment of a very small, specific area, distinguished from its
immediate surroundings by such factors as the amount of incident light, the degree
of moisture, and the range of temperatures.
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 The side of a tree that is shaded from sunlight is a microenvironment that
typically supports a somewhat different community of organisms than is found on the
side that receives regular light. Also called microhabitat.
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 Business: Factors or elements in an organization's immediate area of operations
that affect its performance and decision makingfreedom. These factors include
competitors, customers, distribution channels, suppliers, and the general public.
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CHAPTER4: MACRO AND MICRO ENVIRONMENT
ANALYSIS OF DOMINOS
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Domino’s pizza is considered to be world’s most renowned company around the globe.
Domino’s offer both, delivery from door to door as well as take away from store.
Currently Domino’s pizza chain is expanded over 8000 store around the world, whereas
foremost cities of U.S have a domino’s pizza. Domino’s fulfils customer’s yearning for
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Italian American food through its treasure of fresh ingredients and by offering wide
variety of options in the menu.
Macro and micro environment Analysis:
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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 Domino’s Pizza UK, Ireland, the most leading delievery franchise. Keeping in
view the current economic situation Domino’s Pizza sales had increased up to 11% in the
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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)
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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)
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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
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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
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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, domino’s continues to succeed which is
due to domino’s remorseless emphasis on the quality of domino’s pizzas, penetrating
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commitment to service and by publicizing to domino’s 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 domino’s
business in years to come.
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PEST ( Political, Economic, Social and Technological)
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i. POLITICAL ISSUES:
Political issues include regulatory frame work operating in judicial system which may
distress the business in diverse ways. In UK, there isn’t as such factors that might
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embrace domino’s 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 county’s 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.
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According to domino’s 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
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iii. SOCIAL FACTORS:
Domino’s is a multinational and it is basically inaugurated from America, therefore, the
organization is snowed under by domino’s western culture. There are different social
forms of society which consists of, upper class, middle class, middle upper class, and
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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
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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.
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Segmentation:
Demographic segmentation

In demographic segmentation, we divide the market into groups on the basis of
variablessuch as age, gender, etc; these demographic variables are so popular with
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marketers so thatthey are often associated with the consumer’s needs and wants.Here are
the demographic variables have been used to segment markets.
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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 because many males will not like to
preapare foodwhen they are single).
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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.
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Ethnicity – For this reason they come modified their menu and they added new dishes
like peppy paneer and pizzas are available in 3 sizes small, medium, and large.
Geographic segmentation
Geographic segmentation is basically using the spatial location to segment the market. In
Geographic segmentation calls for the diff geographical units such as states, regions,
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cities and the south Asia is a one of the major geographic segmentation variables relevant
for marketers. Here markets are mainly divided into the rural and urban areas. Domino’s
intends to penetrate completely within these markets by opening up 20-25 outlets per
year in these cities. Domino’s has a young and enthusiastic team of more than
2,100 employees. Today, Domino’s has emerged as the leader in the fast food segment
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with about 65% of market share of pizza delivery in India and have outlets more than any
other corporation in the business of food, not just the pizza business. All the Company
outlets are corporate outlets invested by the company and also managed by the company.
Area – semi urban and urban
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City – class-A and Class-B cities i.e. metro politician cities
Region --56 regions where the pizza demand is more. And around 250 outlets in India.31
Psychographic segmentation
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-- It is the science using psychology to better understand the consumers, and they
are trying tosui with local food, and they all ready created the brand name in consumers
mind byadvertisement and service i.e. 30 min delivery.
Dominos in 2005 takes the Arshad Warsi(circuit) as their brand ambassador.
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In Psychographic segmentation, buyers are divided into lifestyle, personality or values.
Lifestyle – Business class, outdoor oriented.
Personality– Ambitious, open to experience.
Occasions – Regular, special
Benefits – Quality, service, delivery in 30 minutes or else free.
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User status– Regular user
Usage rate– Medium
Loyalty status– Medium loyal
Readiness stage– Intending to buy
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CHAPTER5:SWOT ANALYSIS
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SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to
evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in abusiness venture. 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
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achieving that objective. The technique is credited to Albert Humphrey, who led a
convention at the Stanford Research Institute (now SRI International) in the 1960s and
1970s using data from Fortune 500 companies.
The degree to which the internal environment of the firm matches with the external
environment is expressed by the concept of strategic fit.
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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
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 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
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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 is not attainable a different objective must be selected
and the process repeated.
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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.
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CHAPTER6: SWOT ANALYSIS OF DOMINOS PIZZA
SWOT Analysis
Strength 1.Huge popular brand name and high brand loyalty
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2.Leading pizza Delivery Company in the world
3.High number of products
4.Hygenic food and quick service
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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
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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
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11. Effective home delivery option
12. Lower price as compared to competitors
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Weakness 1. High fat and high calorie food not good for health conscious
people
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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.
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6. Its ambiance is not up to its competitors
7. Menu not elaborated and modified as compared to other

chains
8. Outlets lack space
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Opportunity 1.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 Domino’s.
3. The distribution network should be further strengthened so as
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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
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Asian countries like India and China
6. Leverage supply chain & distribution system to introduce new

products
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Threats 1. 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
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STRENGTH:
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Dominos have strong service facilities like ’30 min’s 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
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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 Domino’s 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
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restaurant. Domino’s 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 Pizza’s: 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.
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(Adam, 2010) Quality of Pizza’s: 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.
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Quick service at outlets: the service at the outlets of dominos is very fast and customers
don’t 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.
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Excellent offers: The Domino’s 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 Domino’s pizza India offers four
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pizzas at the rate of Rs. 180. This means charge of one pizza will be just Rs. 45.
Domino’s mainly offers are more attractive for the students and middle class people and
they are the main customer which they targeted. Domino’s 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.
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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 Domino’s Pizza better than its competitors.
WEAKNESS:
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Domino’s 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
Domino’s. Domino’s 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 20th century. Its target
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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
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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 Hut’s marketing strategy is basically aimed to
make the consumer feel very important. It actually wants the consumer to believe that
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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 Domino’s. In addition the
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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.
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Leaving aside the local restaurant and a few local brands like Smokin Joe’s & gracias etc,
Domino’s mainly faces competition between two players Pizza Hut and Smokin Joe’s.
(Jones, 2008)
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They don’t have dine-in facility: they don’t 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.
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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.
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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.
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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.
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OPPORTUNITIES:
New restaurant at busy places: it should open its new restaurants at busy and crowded
places where it can attract more customers.
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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
143
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.
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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:
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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.
146
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.
147
Emergence of Papa John’s – World’s 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.
148
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: doesn’t have any take away counters which in turn
harms its own market and the consumers coming to it.
149
150
151
152
CHAPTER7: COMPARITION OF DOMINO’S WITH PIZZA
HUT
153
154
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
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
155
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. In comparison dominos just has delivery outlet but does not have an
eating outlet, where the consumers could enjoy themselves. This has provided
156
pizza hut with a competitive edge over Domino’s. As far as the price is
concerned, pizza hut products start at around Rs 160.
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It is priced much higher than dominos pizza s but they justify it on the basis of
the service and the ambience they provide their customer at the outlet.
Pizza Hut’s marketing strategy is basically aimed to make the consumer feel very
important. It a c t u a l l y w a n t s t h e c o n s u m e r t o b e l i e v e t h a t P i z z a H u t i s t h e
158
u l t i m a t e o u t l e t f o r c e l e b r a t i n g anything and everything. It has created an
ambience to ensure that customers start finding excuse to the outlet.
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Dominos has a major threat from Pizza Hut in this aspect. With the
i n c r e a s i n g n u m b e r o f professionals and increased exposure to western style
of eating outdoors frequently, Pizza Hut may quickly score over Domino’s.
In addition the great interiors, the music, and the overall service at the pizza hut outlets
create an a t m o s p h e r e w h i c h t e m p t s y o u t o v i s i t t h e p l a c e a g a i n . S o
160
d o m i n o s h a v e t o d o s o m e t h i n g t o overcome this problem So dominos have to
do something to overcome this problem.
161
162
CHAPTER8: RESEARCHS ANALYSIS OF DOMINO’S
PIZZA
The research conducted clearly indicates that Domino’s is the current market leader in
India, but may soon face very tough competition from both McDonald and pizza
163
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 min’s concept, using this punch line they grow
their business in various segment like opening dine-in facility, using breakfast concept.
164
•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.
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• 2nd point Pizza Hut is mass consumption product, Domino’s have very good pricing
strategy over Pizza Hut but they have dine-in facility as well as pick up facility.
• 3rd To compete against Pizza Hut Domios should have Beautifully furnished outlets and
good ambience will also help improve the brand image as well as in growing the business
revenue.
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•4th point Dominos has company policy of not asking customers for suggestion which is
not a very positive sign. In India it is very important to make the consumers feel special.
Hence the company can definitely 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.
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•5th point Dominos known for offering discount coupons and price off pretty regularly
due to which consumers wait to order only when offered discounts. Instead the company
could offer some pizzas as well as innovative product at a lower price which would help
increase the frequency of pizzas consumption and help in grow new customers. Makes
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special offers on weekends and week days , use special occasions like festivals to reach
out maximum customers by using effective promotion and different product offering.
•6th point Use of good public relation exercise like delivering free pizzas to
regular customer on their birthdays and also offering them price offs on purchasing
169
certain number of pizzas in a month or a quarter would help increase brand loyalty and
add a personal touch to their entire effort
Since there are still many people in the country who might not have ever tasted a pizzas,
the pizza industry has a lot of scope to grow. Hence dominos has lot of OPPORTUNITY
170
and space to its OPENING THE NEW RESTAURANT and conquer more consumers
and new markets.
171

CHAPTER9: RECOMMENDATION
172
The 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
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restaurant environment and ambience. Thus to have a greater market share and tap
premium segment of the market, Dominos can provide good quality restaurants.
Domino’s 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.
174
Special area of dominos is home delivery 30 min’s 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 Domino’s pizza.
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There should also be provision for music, TV’s, kid’s 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.
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CHAPTER10: CONCLUSION
Domino’s Pizza regularly innovates the way its product goes with the likings of its
customers and in feedback getting customer’s satisfaction. The slogan of this company
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which illustrates its aim is that Think Global and act local. Hence, every now and again
Domino’s 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.
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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 on dominos environmental scanning. Now in global
market where they are stand in recent scenario. The main objective is increasing the
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number of customer base of Domino’s Pizzas. This also has talked about the entry of
various giants in Indian pizza industry. it has touched various aspect of pizza industry
such as product line, comparison, strategy, competition, etc. Also starting the new
restaurant with new innovative products as well as opening the new segment for
Domino’s pizza.
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CHAPTER10: BIBLOGRAPHY
WEBSITE
http://www.google.co.in
http://www.wikipedia.com
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http://www.dominos
http://www.pizzahut.com
en.wikipedia.org/wiki/Marketenvironment
183

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PROJECT ON ENVIRONMENTAL SCANNING ON DOMINOS

CHAPTER 1.INTRODUCTION OF DOMINO’S PIZZA

The current Domino's logo introduced in 2012.

Founded Ypsilanti, Michigan on June 10, 1960

Headquarters Domino Farms Office Park

Ann Arbor Charter Township, Michigan, United States

Area served Worldwide

Key people Tom Monaghan, Founder

J. Patrick Doyle, CEO

Products Pizza, pasta, chicken wings,submarine

Revenue $1.425 billion USD (2008)

Domino's Pizza is an American restaurant chain and international franchise pizza

owned by Domino's Pizza co-founder Tom Monaghan) in Ann Arbor Charter Township,

Michigan, United States, near Ann Arbor, Michigan. Founded in 1960, Domino's is the

worldwide, with more than 10,000 corporate and franchised stores in 70

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 India

owned subsidiary. Mr.Shyam S. Bhartia and Mr. Hari S. Bhartia of the

January 1996, at New Delhi. Today,

cities and is the leader in the fast food delivery segment.

p o s i t i o n o f m a r k e t leadership with its constant product innovation

and maintenance of stringent service standards. More importantly, it has

Pizza store in India opened in January 1996, at New Delhi.

More importantly, it has established a reputation for being a home delivery

pizzas by calling a single countrywide Hunger Helpline - 1800-111-123. In fact,

The current Domino's menu features a variety of Italian-American entrees and side

Additional entrees include pasta, bread bowls, and oven-baked sandwiches. The menu

offers chicken side dishes, breadsticks, as well as beverages and desserts.

relative to other fast food restaurants, to ensure efficiency of delivery. Historically,

toppings, and Coca-Cola as the only soft drink option.

30-slice, yard-long "The Dominator".

perception of Domino's product due to taste issues.

its previous ownership by PepsiCo, has a lifetime contract to sell Pepsi products), but

switched to Pepsi in November 2012.

years of being on the menu.

driving and irresponsibility", according to then-CEO Tom Monaghan.

stores situated in Colombia, India, Malaysia*,Vietnam, Singapore*, and Turkey.

CHAPTER2. DOMINO’S VISION MISSION

Domino's vision is focused on " Exceptional people on a mission to be the

best pizza delivery company in the world!"

delivering delicious pizzas to their doorstep in 30 minutes or less, and all

customer base.Domino's constantly strives to develop products that suit the

personified by its ' Hungry Kya?

population and this has been accepted by the Indian market.

Environmental scanning is one component of the global environmental

analysis. Environmental monitoring, environmental forecasting and environmental

assessment complete the global environmental analysis. The global environment refers to

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.

industry or even a total market’. The factors which need to be considered for

value shift in society, a technological innovation that might be permanent or a paradigm

social phenomenon'. A trend can be defined as an ‘environmental phenomenon that has

adopted a structural character’.

factor, are defined within the PESTEL analysis (or PESTLE analysis).

PESTEL analysis is the starting point of the global environmental analysis.

 Political factors are basically to what degree the government intervenes in the

economy. Specifically, political factors include areas such as tax policy, labor

law, environmental law, trade restrictions, tariffs, and political stability. Political

provided (demerit goods or merit bads). Furthermore, governments have great

influence on the health, education, andinfrastructure of a nation.

 Economic factors include economic growth, interest rates, exchange rates and

stores situated in Colombia, India, Malaysia,Vietnam, Singapore, and Turkey.