Dominos Online Case Analysis

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Assignment - 1 | Ashish Solanki

Case Analysis and Methodology – Assignment 1

Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Michigan, United States of America. It was founded in 1960, Domino's is the second-largest pizza chain in the United States and has over 9,000 corporate and franchised stores in 60 countries. Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee Rights for Domino’s Pizza for India. The company runs 378 Domino's Pizza outlets in 90 cities of India and expects to open 80 more in 2010-11. It currently operates no outlets in Sri Lanka, Bangladesh and Nepal. Today Domino’s Pizza India has grown into a countrywide network of more than 411 stores (as on 30th September, 2011).

Q1. A. What is their field of operations?
In 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois, and its 3,000th international store in Panama City, making 8,000 total stores for the system. It has 8,238 stores which totaled US$1.4 billion in gross income. The field of operation of Dominos India is to market its products such as Pizza, Pastas, and Deserts etc. The company wants to communicate their presence in the Indian market. The company has a brief introduction about the Indian operations which started way back in 1996. The company has recently shifted its focus on online booking of home delivery. This has created a huge buzz and is likely to benefit Dominos to a large extent. The company also focuses on taking feedback about the products, where people can write on their blog and inform about various suggestions or reviews.


Case Analysis and Methodology – Assignment 1

Domino’s Pizza listens to feedback from the consumers, and at the same time occasionally glances over the shoulder of their competition for inspiration and influence. From the customers’ feedback and buying habits, Domino’s is able to glean information to help influence direction.

B. What is the key feature of their business model?
The key feature of Dominos is their Home Delivery business. Close to 65% of Dominos sales are done through delivery or take-away. 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. This marketing campaign brought Dominos huge business. The company continues to offer "30 minute or Free" guarantee for orders placed in its stores situated in India. Domino’s keeps a watchful eye on the consumer reaction to specific product and pricing. The ability to see their company from the buyer’s viewpoint is a significant advantage for any company. The Future Foundation Report (2008) was commissioned by Domino's Pizza to analyze the social, economic, demographic and technological factors likely to impact on the pizza delivery and takeaway market for the remainder of this decade. The following are some of the key points raised by the report: Lack of time - the research shows that, on average, adults eat out and/or eat delivered/take-away meals around 80 times a year. The Foundation looks at the impact of freeing up time normally spent on preparing food at home, as 'creating a time oasis'. Higher levels of disposable income - real disposable household income is expected to increase by nearly 12% over the next five years resulting in more opportunity for expenditure on home delivered food.


Case Analysis and Methodology – Assignment 1

Demographic change - over a twenty to thirty year period, the numbers of older people will continue to increase. The research suggests that firms in the home delivery market can benefit from this by building and keeping brand loyalty amongst a generation of people who have grown up as pizza consumers and whose incomes and affluence are likely to grow. In addition, there is expected to be a decline in the traditional...
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