Executive Summary: This Project Is All About The Customer Satisfaction Towards Domino's Pizza
Executive Summary: This Project Is All About The Customer Satisfaction Towards Domino's Pizza
This project is all about The Customer Satisfaction Towards Domino’s Pizza
Products. In this project I have discussed about the industry overview of the
Domino’s Pizza, problems of the company, competitors information, company
profile. In this project we have also discussed about company’s analysis and their
interpretations .
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Introduction
Fast food is one of the world’s largest growing food types. India’s fast food industry is
growing by 40% .the multinational segment of Indian fast food industry is up to Rs.
20 billion, a figure which is expected to zoom more than Rs.30 billion by 2010. In last
6 years, foreign investment in this sector stood at rs.3600 million which is about one-
fourth of total investment made in this sector. Because of the availability of raw
material for fast food, global chains are flooding into the country. The percentage
share held by foodservice of total consumer expenditure on food has increased from a
very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained
in Indian culture and changes in eating habits are very slow moving with barriers to
eating out entrenched in certain sectors of Indian society. The growth in nuclear
families, particularly in urban India, exposure to global media and western cuisine and
an increasing number of women joining the workforce have had an impact on eating
out trends.
The main reason behind the success of the multinational chains is their expertise in
product development, sourcing practices, quality standards, service levels and
standardized operating procedures in their restaurants, a strength that they have
developed over years of experience around the world.
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Market Share And Major Players
The organized pizza market in India is worth Rs.600 Crore. The major players in the
market are pizza hut and dominos whose market share are around 45% and 35%
respectively.
Other players form the rest 20%
Branded Pizza Market Share
Pizza hut
Dominos
Others
Other players mainly are
• Smokin joe’s
• Garcia’s
• Papa john’s
• Us pizza
• These players mainly give competition to pizza hut and dominos in tier I cities
like Mumbai, Bangalore, Chennai etc. They do not have much presence in tier
ii cities.
Haldiram’s and multinational companies like DOMINOS, Pizza hut,, etc. The fast
food industry is on a high as Indians continue to have a feast. Fuelled by what can be
termed as a perfect ingredient for any industry – large disposable incomes – the food
sector has been witnessing a marked change in consumption patterns, especially in
terms of food. An increasing number of international fast food chains rushing to India
is because all of them see tremendous potential in for this type of business. The large
upwardly mobile population in the urban areas tend to eat out more often or business
or for leisure.
The various players operating in India are the well established Indian chains like
Nirula’s.
In addition to these, apparently some of the best known international food chains are
looking at India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts,
Sub-way, etc. are some of them to name. At present all these players are fighting for a
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small pie, as fast food is really not a big habit with Indians, but they see a big
potential.
The players are fighting on products, pricing, positioning and trying to convert their
first trials into regular purchase by providing delightful service quality. The focus is
on product quality and standardization on taste. Consistency is the key, as its
standardization in fast food as the consumer is short on time and wants to satisfy his
taste buds with a consistent taste experience.
Beyond this each player has its own strategy to expand consumer base.
Some feel that pricing is not the deciding factor since fast food is not price
sensitive market because it is not a single diet of Indians.
Some others are competing on positioning which is surprisingly varied, giving the
small size of the market.
For most, targeting children seems the right strategy.
Advertising is popular.
However, with competition hooting up most chains are increasing reach as well as
working on establishing a national presence.
The popularity of food and agro products is not surprising when the sector is now
offering a growth of more than 150 per cent in sales. While US brands such as
McDonald’s, Pizza hut and Kentucky Fried Chicken have become household names,
more are on their way.
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The Market Scenario
India among top 10 market for weekly fast food consumption, an online survey has
found. Most of the countries are from the Asia-pacific region, with the US being the
exemption.
According to an A C Neilson study of 28 markets across the US, Europe and the Asia-
Pacific, carried out through the internet in interviews with more than 14000
consumers, Asians are the world’s greatest fast food fans.
Percentage of adult population eating at takeaway restaurants at least once every
week:
Hong Kong 61 %
Malaysia 59 %
Philippines 54 %
Singapore 50 %
Thailand 44 %
China 41 %
India 37 %
Europe 11 %
Among the international fast food chains and local operators, Dominos emerges as the
most popular of all takeaway options with 54% of Americans, 75% of Europeans and
64% of Asians. Dominos is most visited in Australia (84%) KFC is most visited in
China (42%) Pizza hut is most visited in India (22%) A typical fast food meal in the
India & other Multinational companies consists of fries and a burger (or other main
item).
History
The concept of ready-cooked food for sale is closely connected with urban
development. In Ancient Rome cities had street stands that sold bread and wine. A
fixture of East Asian cities is the noodle shop. Flatbread and falafel are today
ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav,
panipuri and dahi vada. Some trace the modern history of fast food in America to
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July 7, 1912 with the opening of a fast food restaurant called the Automat in New
York. The Automat was a cafeteria with its prepared foods behind small glass
windows and coin-operated slots. Joseph Horn and Frank Hardart had already opened
the first Horn & Hardart Automat in Philadelphia in 1902, but their “Automat” at
Broadway and 13th Street, in New York City, created a sensation. Numerous Automat
restaurants were built around the country to deal with the demand. Automats
remained extremely popular throughout the 1920s and 1930s. The company also
popularized the notion of “take-out” food, with their slogan “Less work for Mother”.
The American company White Castle is generally credited with opening the second
fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents from its
inception and spawned numerous competitors.
It is arguable because most historians and Secondary School textbooks state that
A&W was the first fast food restaurant, which opened in 1919.After discovering that
most of their profits came from hamburgers, the brothers closed their restaurant for
three months and reopened it in 1948 as a walk-up stand offering a simple menu of
hamburgers, french fries, shakes, coffee, and Coca-Cola, served in disposable paper
wrapping. As a result, they were able to produce hamburgers and fries constantly,
without waiting for customer orders, and could serve them immediately; hamburgers
cost 15 cents, about half the price at a typical diner. Their streamlined production
method, which they named the "Speedee Service System" was influenced by the
production line innovations of Henry Ford.
In the cities of Roman antiquity, much of the urban population living in insulae,
multi-storey apartment blocks, depended on food vendors for much of their meals. On
New Year's Day 2008 a study was conducted worldwide counting the number of fast
food restaurants per person. The UK has claimed this title with Australia second and
the United States third. England alone accounted for 25% of all fast food.
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 U.S.A. Moreover, the
company holds the master franchisee rights for Sri Lanka and Bangladesh through its
wholly owned subsidiary..
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Dominos pizza India has a network of 274 stores, in 55 cities, in 20 states and union
territories (as on 31st august 2009). According to the India retail report 2009, dominos
are the largest pizza chain in India and the fastest growing multinational fast food
chain between 2006-2007 and 2008-2009 in terms of number of stores.
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forced Dominos to give effective notice to the public that the oil was not changed. In
Europe and the US, food makers are under growing pressure from consumer groups to
cut the trans fat content in food products.
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OBJECTIVES OF THE STUDY
To do customer value analysis which includes identifying the major attributes that
customers value in a fast food chain restaurant, assessing the quality of the
different attributes.
To shed light on different aspects that a service based food chain must follow in
order to increase its market share and for being on a continuous growth stream.
The research also find out the company on different customer value attributed and try
to find their performance through:
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LITERATURE REVIEW
Satisfaction:
Satisfaction is a person’s feelings of pleasure or disappointment resulting from
comparing a product’s perceived performance (outcome) in relation to his or her
expectations.
Many companies are aiming for high satisfaction, because customers who are just
satisfied still find it easy to switch when less good offer comes along. Those who are
highly satisfied are much less ready to switch. High satisfaction or delight creates an
emotional affinity with brand, not just a rational preference. The result is high
customer loyalty.
Some of today’s most successful companies are raising expectations and delivering
performances to match. These companies are aiming for TCS-Total Customer
Satisfaction.
Consumers from their expectations on the basis of messages received from sellers,
friends and other information sources. Customer Satisfaction may be defined as a
qualitative measure where in a customer experiences various degrees of satisfaction
until the performance of the product matches his expectations.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
The controlling plan for a marketing research study in which the methods and
procedures for collecting and analyzing the information is to be collected is
known as Research Design or A framework or plan for a study that guides the
collection and analysis of the data.
DESCRIPTIVE RESEARCH
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DATA SOURCES:
PRIMARY DATA
The primary data was collected through questionnaires. They were filled using the
scheduled method of data collection by the researcher. Primary data is a data which
have been collected originally for the first time. In other words ,primary data may be
outcome of an original stastical inquiry, measurement of facts or a count that is
undertaken for the first time. In the collection of primary data, a good deal of time,
money and energy are required.
The following are the method of collecting primary data:
Collection directly by personal investigation
Collection indirectly by oral investigation
Collection by questionnaires and schedules
SECONDARY SOURCES
The secondary sources were used only for collecting information regarding the
sample, they were however not used for analysis. Secondary data is data that has
already been collected and examined earlier by other investigators. Secondary data
can either be published or unpublished data.
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The data in my project is collected through the following methods:
Through Questionnaires.
Through various Pizza restaurants websites.
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SCOPE OF THE STUDY
Since the road to improvement is never ending, so this study also suffers from certain
limitations.
Scope of project is limited in the sense that only Dominos has been taken for
consumer research.
The extent of the survey was New Delhi only. So the suggestions or arguments
given in the report may not hold true for other locations in India.
Questionnaire method involves some uncertainty of response. Co-operation on
the part of informants, in some cases, was difficult to presume.
Also because of above mentioned constraints, the sample size chosen for the
survey was 50 people
Importance of study
It can also tells the mistakes that the company is making & to correct it as soon as
possible.
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RESEARCH DESIGN
A research design is the arrangement of condition for collection and analysis of the
data in a manner that aims to combine relevance to the research purpose with the
economy in procedure.
In fact the research design is the conceptual structure with in which research is
conducted, it constitutes the blueprint for the collection, measurement and analysis of
data.
SAMPLING TECHNIQUES
Primary data: It has been collected from the customers through structured
questionnaire, which are fresh and for the first time and thus happen to be pertaining
to the current research process.
Secondary data are the supporting material for the research, which the researcher
collects through various sources like journals, company records, documents, books,
magazines, newspaper and from internet.
SAMPLE SIZE : 50
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LIMITATIONS OF STUDY
Despite the possible efforts in conducting the research, there were some unavoidable
situations, which limited the scope of the project.
Considering the population, the sample taken for present study seems small
and hence further investigation may be required.
The sample taken for study was not of equal distribution so a comparative
study cannot be made.
Time available for research was very short so certain aspects have been
overlooked.
Respondents show reluctance towards giving correct information.
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Dominos Restaurants
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Domino's Pizza
Contents
In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza
store in Ypsilanti, Michigan. The deal was secured by a US$75 down payment and the
brothers borrowed $500 to pay for the store. Eight months later, James traded his half
of the business to Tom for a used Volkswagen Beetle. As sole owner of the company,
Tom Monaghan renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first
Domino's Pizza franchise store opened in Ypsilanti. The company logo was originally
planned to add a new dot with the addition of every new store, but this idea quickly
faded as Domino's experienced rapid growth. By 1978, the franchise opened its 200th
store.
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Early years
In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar,
alleging trademark infringement and unfair competition. On May 2, 1980, a federal
appeals court found in favor of Domino's Pizza.
International expansion
On May 12, 1983, Domino's opened its first international store, in Winnipeg,
Manitoba, Canada. That same year, Domino's opened its 1,000th store overall, and by
1995 Domino's had 1,000 international locations. In 1997, Domino's opened its
1,500th international location, opening seven stores in one day across five continents.
Sale of company
In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan
announced his retirement and sold 93 percent of the company to Bain Capital, Inc. for
about $1 billion and ceased being involved in day-to-day operations of the company.A
year later, the company named David A. Brandon Chairman and Chief Executive
Officer.
Current era
In 2004, after 44 years as a privately held company, an employee of Domino's Pizza
rang the opening bell at the New York Stock Exchange and the company began
trading common stock on the NYSE under the ticker symbol "DPZ".
Industry trade publication Pizza Today magazine named Domino's Pizza "Chain of the
Year" in 2003 and did so again in 2010.In a simultaneous celebration 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. Also that
year, the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in
Domino's history to hit a turnover of $3 million (€2.35 million) per year. As of
September 2006, it has 8,238 stores which totaled US$1.4 billion in gross income.
In 2007, Domino's introduced its Veterans and Delivering the Dream franchising
programs and also rolled out its online and mobile ordering sites. In 2009, Domino's
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introduced the Pizza Tracker, an online application that allows customers to view the
status of their order in a simulated "real time" progress bar. In addition, the first
Domino's with a dining room opened in Stephenville, Texas, giving the customers the
option to either eat in or take their pizza home. Since 2005, the voice of Domino's
Pizza's national phone ordering service 1-800-DOMINOS has been Kevin Railsback.
In a 2009 survey of consumer taste preferences among national chains by Brand Keys,
Domino's was last — tied with Chuck E. Cheese's. In December that year, Domino's
announced plans to entirely reinvent its pizza. It began a self-flogging ad campaign in
which consumers were filmed criticizing the pizza's quality and chefs were shown
developing the new product. The new pizza was introduced that same month, and the
following year, Domino's 50th anniversary, the company acquired J. Patrick Doyle as
its new CEO experienced a historic 14.3% quarterly gain. While admitted not to
endure, the success was described by Doyle as one of the largest quarterly same-store
sales jumps ever recorded by a major fast-food chain.
Products
The current Domino's menu features a variety of Italian-American entrees and sides.
Pizza is the primary focus, with traditional, specialty and custom pizzas available in a
variety of crust styles and toppings. Additional entrees include pasta bread bowls and
oven-baked sandwiches. The menu offers chicken side dishes, breadsticks and salads,
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,
Domino's menu consisted solely of one pizza in two sizes (12-inch and 16-inch), 11
toppings, and Coke as the only soft drink option.
The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or
pan pizza. Its introduction followed market research showing that 40% of American
pizza 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
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bottoms. Domino's started testing extra-large size pizzas in early 1993, starting with
the 30-slice, yard-long "The Dominator".
Domino's tapped into a market trend toward bite-size foods with spicy Buffalo
Chicken Kickers, as an alternative to Buffalo Wings, in August 2002. The breaded,
baked, white-meat fillets, similar to chicken tenders, are packaged in a custom-
designed box with two types of sauce to "heat up" and "cool down" the chicken.
In August 2003, Domino's announced its first new pizza since January 2000, the
Philly Cheese Steak Pizza. The product launch also marked the beginning of a
partnership with the National Cattlemen's Beef Association, whose beef Check-Off
logo appeared in related advertising. Domino's continued its move toward specialty
pizzas in 2006, with the introduction of its "Brooklyn Style Pizza", featuring a thinner
crust, cornmeal baked in to add crispness, and larger slices that could be folded in the
style of traditional New York-style pizza.
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In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked
sandwiches in four styles, intended to compete with Subway's toasted submarine
sandwiches. Early marketing for the sandwiches made varied references to its
competition, such as offering free sandwiches to customers named "Jared," a
reference to Subway's spokesman of the same name.
The company introduced its American Legends line of specialty pizzas in 2009,
featuring 40% more cheese than the company's regular pizzas, along with a greater
variety of toppings. That same year, Domino's began selling its BreadBowl Pasta
entree, a lightly seasoned bread bowl baked with pasta inside, and Lava Crunch Cake
dessert, composed of a crunchy chocolate shell filled with warm fudge. Domino's
promoted the item by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor
Center near Mount St Helens.
In 2010, the company 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 issues of taste.
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Corporate governance
Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly
president of Domino's USA. Previous chief executive David Brandon, made athletic
director of the University of Michigan in January 2010, remains chairman. Among 11
executive vice presidents are Michael Lawton, CFO; Asi Sheikh, Team USA; Scott
Hinshaw, Franchise Operations and Development; and Kenneth Rollin, General
Counsel. Domino's operations are overseen by a board of directors led by Brandon.
Other members of the board are Andrew Balson, Diana Cantor, Mark Nunnelly,
Robert Rosenberg and Bud Hamilton.
Charitable activities
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish
Foundation of America. That same year, the company stores in New York City and
Washington D.C. provided more than 12,000 pizzas to relief workers following the
September 11 attacks on the World Trade Center and The Pentagon. Through a
matching funds program, the corporation donated $350,000 to the American Red
Cross' disaster relief effort.[6] In 2004, Domino's began its current partnership with
St. Jude Children's Research Hospital, participating in the hospital's "Thanks and
Giving" campaign since it began in 2004, raising more than $1.3 million in 2006.
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free
medium pizzas in March 2009. The company had planned the campaign for December
2008 but dropped the idea and never promoted it. The code was never deactivated
though and resulted in the free giveaway of the pizzas across the United States after
someone discovered the promotion on the website by typing in the word "bailout" as
the promotion code and then shared it with others on the Internet. Domino's
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deactivated the code on the morning of Tuesday, March 31, 2009 and promised to
reimburse store owners for the pizzas.
Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie
Luyendyk, and the team won the 1990 Indianapolis 500. In 2003, Domino's teamed
up with NASCAR for a multi-year partnership to become the "Official Pizza of
NASCAR."Domino's also sponsored Michael Waltrip Racing and driver David
Reutimann during the 2007 season in the NASCAR Sprint Cup Series.
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 driver, paying the family $2.8 million. In 1993, Domino's settled
another lawsuit, this one 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 paid
nearly $80 million. The guarantee was dropped that same year because of the "public
perception of reckless driving and irresponsibility", according to Monaghan.
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.
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ANALYSIS OF QUESTIONAIRES
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8 informants said that they visit more than once a week i.e. 16% of the people
surveyed.
7 said that they visit once in a month. They are 14% of the people surveyed
5 persons each said that they visit once a week and less than once a month
respectively. They are 20% of the people surveyed.
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This question shows whether Dominos maintains consistency in taste and quality of
its food products.
86% of the persons surveyed agreed that Dominos maintains consistency in its taste
and quality while 14% disagreed.
This question deals with the pricing of ‘Dominos foods products. Out of 50 persons
surveyed
35 are satisfied with the prices charged i.e. 55%
9 are very satisfied i.e. 30% and
6 are not satisfied i.e. 15%
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Views No of persons
Very effective 7
Effective 27
Not effective 16
This question deals with whether the promotional measures adopted by Dominos are
effective or not.
Out of 50 persons being surveyed:
7 persons find it very surveyed :
27 persons found it effective i.e.. 50% while
16 persons doesn’t find it effective i.e. 40%
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This question describes the eating experience at Dominos. Out of 50 persons being
surveyed:
4 describe their eating experience as excellent i.e. 15%
17 as very good i.e. 20%
25 as a good i.e. 50% and
4 as poor i.e. 15%
Q.9. have you ever called for home delivery of product home Dominos
Yes No.
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CONCLUSION
Going through the analysis of response from the survey conducted, it is concluded
that Dominos is able to be and retain at top among all the fast food chains like
Nirula’s, Subway and Burger King Sbarro. Dominos is also preferred over
DOMINO’S PIZZA. Mc Donald’s and KFC. Dominos is providing its customers
good quality food products.
Though not wide but its product line is quite impressive. It includes meals for both
vegetarian and Non- Vegetarian and satisfies both section of customers.
Dominos is also providing its customers a well provided and comfortable ambience. It
has been rated as “ very good” by its customers in terms of taste and variety of food
and promptness of delivery.
Customers are also satisfied with its prices and promotional and advertising activities.
Prices are affordable by all and Dominos also satisfies its customers by continuously
introducing value for money offers.
Summarising all points we conclude that Dominos is growing fastly by satisfying its
customers by providing quality and maintaining consistency and also has an
impressive strategy of marketing the products in the form of Marketing Mix Elements
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RECOMMENDATIONS
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