Today Pizza

Read the following caselet carefully and answer the following questions:

1. Fast food industries are highly competitive, in this scenario what is the unique strategy that was adopted by Domino’s?

2. To survive in the cutthroat competitive fast food industry Domino’s has to implement various strategies to offer better services. Identify various categories of service delivery.

3. Explain how Domino’s differentiated its service from its competitors?

Today Pizza account for 5 percent of the quick service (food), but the market is projected to grow to 40 percent over the next five years.

To sink its teeth into the Indian market, Domino’s had reinvented two important mark et factors. One, retailing-by bringing into the Indian market the new concept of integrated home delivery system from a network of company stores within 30 minutes of the order being placed. Two, localizing the taste to suit consumers’ palates.

Domino’s wa s efficient in delivering the Pizza on time. It worked its way into the Indian mindset was the promised 30-minute delivery. The chain offered compensation of Rs.30 off the price tag if there was a delay. In the United States where time management was clearly not the issue and the 30 minute delivery time was taken for granted, the total satisfaction guarantee is what it emphasized. If the customer was not satisfied with the pizza, the company either re-makes it or gives the customer the refund. But overall, the 30-minute delivery time is the common template for Domino’s globally.

Domino’s has the largest retail network in the fast -food segment in India with 101 outlets across 40 cities. For its promised delivery to work, Domino’s emphasis on logistics, princ ipally the distances orbit from a retail outlet. The radius decided was the international parameter within 3 to 4 km. But the crucial difference was the delivery mode. In most of the 67 other countries, in which the US chain has a presence, the Domino’s p izzas are delivered in vans; in India, the delivery is taken care of in a scooter or a moped. The reason, India’s chronically congested roads and the unpredictable traffic system made van delivery a risky proposition. Instead Domino’s used Heat wave a hot bag using patented technology that kept pizza oven hot till customer’s doorstep.

Domino’s schedule was unique in pizza -making process. There is an 11(eleven) minute schedule followed; one minute for taking down the order, one for pizza making (rolling out the dough and placing the toppings) six minutes oven-time and three minutes for packing, sealing and exit. The sale personnel was trained to work within the 11-minute time frames, which is the international Domino’s standard.

According to Domino’s officia ls the retailing success was due to empowerment of staff who will emphasis on ‘safe delivery person (SDP)’. Sales personnel are trained to take collective responsibility, which was the reason - selling concept clicked. Even they are allowed to take decision on special discounts and offer of free pizzas to regular and valued customers. The team also takes decision on inventory levels, indenting administration and hygienic requirements, cost management, top-line and bottom line accountability and so on. These are followed by systematic consumer redressel system. Most of the personnel are between 18 to 20 age group, and expect to a point to empower them to take critical decisions, as there an off-chance that a lapse occur. In certain circumstances the salespersons make it point to call up the customers and personally apologize, even if it involves making STD calls. This is to ensure that Domino’s goodwill persists.