Dominos Project

A PROJECT REPORT ON A STUDY ON CUSTOMER SATISFACTION TOWARDS DOMINOS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) BHAGWANT INSTITUTE OF TECHNOLOGY MUZAFFARNAGAR

SUBMITTED TO :

SUBMITTED BY:

BBA DEPARTMENT

AKSHAY VERMA

NITIN SHRIVASTAV (HOD)

ROLL NO: 9945508 4TH SEM

DECLARATION I am AKSHAY VERMA student of

 BHAGWANT INSTITUTE OF

TECHNOLOGY MUZAFFARNAGAR here by solemnly declare that the project titled ―DOMINO’S” is the outcome of my own efforts & research is conducted by me and finally report has been Submitted to:- Mr.UDIT CHAUHAN Faculty of BHAGWANT INSTITUTE OF TECHNOLOGY MUZAFFARNAGAR drawn by my own creativity and skills only and the same has not submitted to any other organization, institution or university in order to get any other degree.

ACKNOWLEDGEMENT

Presenting a project of this type is an arduous task, demanding a lot of time. I cannot in full measure appreciate and acknowledgement the kindness shown and help extended by various persons in this endeavor. I will remember all of them with gratitude. My sincere thanks are also due to ―Mr. PUNIT SIR”

Faculty of

BHAGWANT INSTITUTE OF TECHNOLOGY MUZAFFARNAGAR for their significant help extended for the successful completion of the project. I highly the help I got from them in providing me and lot of information regarding the functioning of this organization. I am always beholden to my God, for always being with me and showing me the right ways, my family, for always doing favors to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and

potential, as I did not always welcome her exhortation, ―try again; you can do better.‖ But this project owes a great deal to it – and so do I.

Mr.AKSHAY VERMA ROLL NO : 9945508 4th sem BBA

SUMMARY

This project is all about the customer satisfaction towards Dominos. In this project I have discussed about the industry overview of the dominos, problems of the company, competitors information, company profile. In this project we have also discussed about company‘ s s.w.o.t analysis and their trends. We have also discussed 4 p‘ s of marketing mix elements and we have done research design also and make questionnaires and found some positive and negative aspects of the organization.

TABLE OF CONTENTS S. No TOPIC 1.

CHAPTER-1.O INTRODUCTION 1.1 INDUSTRY OVERVIEW 1.2 TRENDS IN FAST FOOD INDUSTRY 1.3 COMPETITORS INFORMATION

2.

CHAPTER-2.0 COMPANY PROFILE 2.1 SALE OF COMPANY 2.2 PRODUCTS 2.3 CORPORATE GOVERNANCE 2.4 30 MINUTE GUARANTEE 2.5 SWOT ANALYSIS OF ORGANISATION 2.6 LIMITATIONS

3.

CHAPTER-3.0 CONCEPTUAL DISCUSSION

4.

CHAPTER-4.0 DATA COLLECTION

5.

CHAPTER-5.0 FINDINGS AND RECOMMENDATIONS

6.

ANNEXURE  

QUESTIONNAIRE BIBLIOGRAPHY

PAGE NO.

CHAPTER- 1

INDUSTRY OVERVIEW (FAST FOOD INDUSTRIES)

Introduction 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 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.

Trends in the fast food industry The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per cent, during the Tenth Five year plan period. Value addition of food is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is currently around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025.

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.

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 Malaysia Philippines Singapore Thailand

61 % 59 % 54 % 50 % 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 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

PROBLEMS IN THE ORGANISATION

Trans fats cause problems fats Dominos...

Trans fats are formed when liquid vegetable oils go through a chemical process called hydrogenation. Common in a range of food products — biscuits, chips, doughnuts, crackers — the hydrogenated vegetable fat is used by food processors because it is solid at room temperature and has a longer shelf life.In September 2002, Dominos issued a statement announcing a significant reduction of trans fats in its fried menu items — french fries, chicken McNuggets, Filet-O-Fish, Hash Browns and crispy chicken sandwiches with the introduction of improved cooking oil in all of its 13,000 restaurants. The change was supposed to be completed by February 2003. However,dominos sencountered operational issues and the oil was not changed. An anti-trans fat group claims that dominos deliberately allowed the public to be misled. Legal action has 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.

MAJOR COMPETITORS

COMPETITORS INFORMATION: Major players in this field:1. Nirula‘s 2. Pizza hut‘s 3. Haldiram‘s These day working executives are busy a lot they don‘t have the spare time to cook food due to there high this possible income and ever increasing arperalional levels they prefer to it out at this fast food outlets (McDonalds, Nirula‘s, Pizza Hut) where they find the match according to there asperitional level.

1. Nirula’s Established in 1934, Nirula‘s today is a diversified group having a chain of elegant Business hotels, Waiter service restaurants, Family style restaurants, Ice Cream parlours, pastry shops and food processing plants in India.The chain with over 60 outlets operating in 5 states successfully caters to the Indian palate of over 50000 guests every day or over 70 years. The restaurants serves a wide variety of multi-cuisine foods, both western and Indian including pizzas, burgers, chana kulcha, saag-roti and much more! Ice cream parlours offers an extensive range of exciting and innovative ice cream flavors with one new flavor added every month.Nirula‘s pastry shops are a one-stop shop for bakery and confectionary items.

2. Pizza hut

Pizza Hut is the largest pizza restaurant company in the world. It has 12700 outlets in 90 countries. Pizza Hut has an aggressive expansion plan for India. It intends to have 100 outlets by the end of 2004. Pizza Hut will consolidate its presence in cities where it already exists as an endeavor to create a major share of these profitable markets first before spreading to other markets. Pizza Hut is one of the largest pizza brands. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores which are all franchisee owned. Hence, the same arrangement will be followed in the future to ensure growth-oriented results.The data written below represent what Pizza Hut is all about and gives a brief profile of the company.

3.Haldiram‘s

Haldiram began in 1937as a small sweet shop in Bikaner, in Rajasthan state of India. In 2001 the turnover of haldiram‘s was Rs. 4 billion. The group has presence not only in India but in several countries all over world. Till early 1990s, Haldiram comprised of three units- Kolkata, Nagpur and New Delhi.

Haldiram has many ‗firsts‘ to its credit- It was first company to brand namkeens. And first company to offer traditional Indian items like ‗panipuri‘, ‗chatpapri‘ and so on.

The company faced tough competition not only from sweets and snack food vendors in unorganized, domestic and international competitors but also from its own units because of conflict between them. At Haldiram‘s quality is the obsession and this spirit has given its competitors a cutting edge. Haldiram offers a very wide range of delicacies like- Namkeens, Sweets, Syrups, Papads, North Indian dishes, South Indian dishes, Pastries. Sweets itself has a very wide variety Bengali sweets include Sandesh and Rasgullas. Other popular Indian sweets are:- Kheer, Halwa, Gulabjamun, Rasmalai and Kulfi.

COMPANY PROFILE

Dominos Restaurants

Dominos helicopter for the board of directors.

Domino's Pizza Type Public (NYSE: DPZ) Industry Restaurants Founded Ypsilanti, Michigan, U.S. (1960) Headquarters Ann Arbor, Michigan, U.S. Key people Tom Monaghan, Founder J. Patrick Doyle, CEO Products Pizza, sandwiches, pasta, chicken wings, desserts Revenue increase $1.425 billion USD (2008) Employees 145,000 Website www.dominos.com

Domino's Pizza, Inc. (NYSE: DPZ) is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Founded in 1960, Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets and all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads, breadsticks, cheesesticks, and a variety of dessert items. 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.

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 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 1800-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 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

Dominos neat and healthy kitchen.

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. 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.

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.

Advertising and sponsorship In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials that they created. The catch phrase associated with the commercials was "Avoid the Noid." 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 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.

30 minutes guarantee for hot n delicious pizza or free.

S.W.O.T ANALYSIS OF THE ORGANISATION

SWOT ANALYSIS OF DOMINOS: Strengths

Weaknesses



Open door policy to the press



Inflexible to changes in market trends



CERES guidance and co-ordination &



Difficult to find and retain employees

active CSR



Drive for achieving shareholder value



Selective supply chain strategy



Rigorous food safety standards



Promote unhealthy food



Affordable prices and high quality



Promoted CSR meat imports in error

may counter CSR

products 

Nutritional information available on packaging



Decentralised yet connected system



Innovative excellence program



Promoting ethical conduct



Profitable

Opportunities

Threats



Attractive & flexible employment



Positive environmental commitments



Higher standards demanded from



Unhealthy foods for children

suppliers



Health concerns surrounding Beef,



Corporate Responsibility Committee



Honest & real brand image



Fabricated stories about the quality of our chicken

Poultry & Fish 

Labor exploitation in China



CSR at the risk of profit loss



Contributor to global warming



Local fast food restaurants

LIMITATIONS OF THE STUDY: Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows:  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.  Because of time constraints and reserve constraints, a mix of convenient sampling and Judgement (Probability & Random) sampling was used.  Also because of above mentioned constraints, the sample size chosen for the survey was 100 people.  It is possible that the information supplied by the informants may be incorrect.

 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  A research design in which the major emphasis is on determining the frequency with which something occurs. For example, How often users access the Internet in a given month. The focus of descriptive research is to provide an accurate description for something that is occurring.

 Data Source  In this project both primary data as well as secondary data are used.

 PRIMARY DATA  Primary data used in this project is collected through three methods, namely, QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD, OBSERVATION METHOD. ALL these methods proved to be great help in getting the required information.

 SECONDARY DATA

 It is not possible to collect first hand information for each & every thing so, secondary data from various sources like Internet, A. C Neilson‘s report on Jan, 2007, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline Website.

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.  To identify different activities that an aggressive company like Dominos follow in order to establish itself in a local market and increasing sales by being in customer‘s mind and heart.  To know the consumer perception and Preference about Dominos products.

The research also find out the company on different customer value attributed and try to find their performance through:

.

CONCEPTUAL DISCUSSION

Customer Satisfaction Through 4 P’s Of Marketing Mix

Marketing Mix

Marketing Mix refers to the ingredients or the tools or the variable which the marketer mixes in order to interact with a particular market. ―Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market‖ - Kotler Marketing mix is a term used to describe the combination o the four inputs which constitute the core of a company‘s marketing system: the product; the price structure; the promotional activities, and the distribution system. Marketing mix represents the total marketing programme of a firm. It involves decisions with regard to product, price, place and promotion. Marketing mix is a blending of decisions in the ‗4 Ps‘.Four major ingredients of marketing mix are:

1. Product A product is any good or service that consumers want. It is a bundle of utilities or a cluster of tangible and intangible attributes. Product component of the marketing mix involves planning, developing and producing the right type of products and services. It deals with the dimensions of product line, durability and other qualities. The total product should be such

that it really satisfies the needs of the target market. In short, product mix requires decisions with regard to (a) Size and weight of the product (b) Quality of the product (c) Design of the product (d) Volume of output (e) Brand name (f) Packaging (g) Product range (h) Product testing.

2. Price

Price is an important factor affecting the success of a firm. Pricing decisions and policies have a direct influence on sales volume and profits of business. Price is, therefore, an important element in the marketing mix. In practice, it is very difficult to fix the right price. Right price can be determined through pricing research and test marketing. A lot of exercise and innovation is req. to determine the price that will enable the firm to sell its products successfully. Demand, cost, competition, govt. regulation, etc. are the vital factors that must be taken into consideration in the determination of the price. Price mix involves decisions regarding base price, discounts, allowances, fright payment, credit, etc.

3. Promotion Promotion component of the marketing mix is concerned with bringing products to the knowledge of customers and persuading them to buy. It is the function of informing and influencing the customer. Promotion mix involves decisions with respect to advertising, personal selling and sales promotion. All these techniques help to promote the sale of products and to fight the competition in the market.

No single method of promotion is effective alone and, therefore, a promotional campaign usually involves a combination of two or more promotional methods. Growing competition and widening market have made simultaneous use of more than one promotional method all the more necessary. Combination of two or more methods in a single promotional campaign

requires an effective blending of promotional inputs so as to optimize the expenditure on each. There is no one ideal product, type of customers, the promotion budget, stage of demand, etc. should be taken into consideration.

4. Place (Distribution) This element of marketing mix involves a choice of the place where the products are to be displayed and made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets or channels of distribution. The objective of selecting and managing trade channels is to provide the products to the right customer at the right time and place on a continuing basis. In deciding where and through whom to sell, management should consider where the customer wants the goods to be available. A manufacturer may distribute his goods through his own outlets or he may employ wholesalers and retailers for this purpose. Irrespective of the channel used management must continuously evaluate channel performance and make changes whenever performance falls short of expected targets. In addition, management must develop a physical distribution system for handling and transporting the products through the selected channels. In the determination of distribution mix or marketing logistics, a firm has to make decision with regard to the mode of transporting of goods to middle-men, use of company vehicles or both.

Product Mix (Dominos Product Mix)

As explained earlier Product mix deals with the dimensions of product line, quality and design of the product, its packaging, brand name, product range, etc. In this section we will study the product mix of Dominos Product line of Dominos includes the products offered for sale, i.e. the range of food products offered to the customers.

The product breadth or number of products offered by Dominos can be classified as: Vegetarian products Non vegetarian products Beverages Deserts Add-ons

Vegetarian products include:

Non-Vegetarian products include: Non –veg.chicken pizza

Veg.cheese pizza Veg.onion pizza

Beverages

Desserts

Add-ons

Cold coffee

Soft serve cone

Ice tea

Hot serves

choco lava cake

Shakes

Soft drinks

All this shows the wide product range of Dominos. Besides that the quality of Dominos according to the survey and general findings, is consistent throughout the life of the product. Nothing but the Best That's how we plan our product range. Food quality is key at Dominos .That's why we take pride in the foods we serve you and your family. We seek out fresh lettuce and tomatoes, quality buns and potatoes, select poultry and fish and wholesome dairy products. Despite

extensive and meticulous quality tests at the supplier end, all products are once again carefully scrutinized at the restaurant. Our immaculate standards of quality allow for nothing but the best to reach your tray.

Cold Chain The term Cold Chain describes the network for the procurement, warehousing, transportation and retailing of food products under controlled temperatures. McDonald’s restaurants store products to be used on a daily basis, within a temperature range of 18ºC to 4ºC. About 52% of our food products need to be stored under these conditions before they are used.

Trikaya Agriculture - Supplier of Iceberg Lettuce Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. A specialized nursery with a team of agricultural experts.

Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products A joint venture with OSI Industries Inc., USA, and Dominos India Pvt. Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A Separate processing lines for chicken and vegetable foods. Dynamix Diary - Supplier of Cheese



Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk

Product strategies: In order to achieve the desired rate of profits and growth, a firm has to continuously adjust its products and product mix to the changing needs and targets of the market. This matching of products to the requirements of competition and buyers is known as product strategy.

Some of the important product strategies, which firms adopt, are as follows:

1) Limited Line Strategy:

This refers to the offering of one product or a small number of products to cater specific market. The main benefit of this strategy is low cost of operations. However, it cannot meet the requirements of different types of customers in different markets.

2) Full Line Strategy:

This ids also known as broad line strategy, it implies the offering of a large number of products to meet the requirements of different customers in different markets.

3) Trading up and trading down:

These are alternate or opposite strategies for expanding the product mix. Trading up implies addition of some higher priced products to the existing product line of lowered priced products for improving the sales of old products.

Trading down refers to the addition of lower-priced products to the existing higher priced product to boost total sales.

Price Mix Price and Pricing strategies:

Price is the key element of marketing mix because it relates directly to the generation of total revenue. The term pricing policy refers to a systematic approach to pricing of different products in different markets to evolve an appropriate pattern of prices in the long run. It is the plan defining the initial price range and the planned price movements through time that the firm will use to achieve its marketing objectives. Pricing policy includes not only the determination of base prices but also the terms and conditions of sale.

Company Pricing policies:

The price must be consistent with company pricing policies. Many companies set up a pricing department to develop policies and establish or approve decisions. The aim is to ensure that the salespeople quote prices that are reasonable to customers and profitable to the company. Now a days most companies follows buyer based pricing. They are basing their prices on the product‘s perceived value. They see buyers‘ perception of value, not the seller‘s cost, as the key to pricing.The company using perceived-value pricing must establish the value in the buyers‘ mind concerning different competitive offers.

Dominos began with skimming prices, i.e. setting a very high price for a new product initially and to reduce the price gradually as competitors enter the market. The initial high price serves to skim the cream of the market, that is , relatively insensitive to price. This approach to pricing is, in effect, an experimental search for the right price and it

may result in a market-determined price. This method starts with a high price and moves the price downward by steps until the right price is reached. Initially Dominos charged high price than what is being charged now. But now it introduces new schemes for value of money. Place Mix (Distribution)

This element of marketing mix involves a choice of the place where the products are to be displayed and made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets or channels of distribution. The objective of selecting and managing trade channels is to provide the products to the right customer at the right time and place on a continuing basis. Dominos distribution centres are wide, located in every area of India. Dominos has Dine-in restaurant, Drive-Thru.. Dominos has 122 restaurants in India of which 72 are in north & east India and 50 in west & south India. 72 restaurants in North & East India: with 

32 in Delhi



20 in Uttar Pradesh – Noida (4), Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)



10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (4), Karnal (1) (Highway and Drive - Thru), Panipat (1)



5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)



2 in Rajasthan - Jaipur (2)



1 in Uttaranchal - Dehradun (1)



1 in West Bengal – Kolkata (1)

50 restaurants in West & South India:



30 in Maharashtra – Mumbai (22), Pune (7), Nasik (1)



7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1)



6 in Karnataka – Bangalore(6)



4 in Andhra Pradesh – Hyderabad (4)



3 in Madhya Pradesh – Indore (3)

For the Big Mac, the current calendar year will be the biggest in terms of restaurant openings, and by year-end, 16 new restaurants would be in place, informs Vikram Bakshi, Managing Director, dominosIndia. The new outlets will be a combination of highway restaurants, outlets at railway stations, at shopping malls and cineplexes, besides at residential areas with significant footfalls. India recently won the tender for setting up an outlet each at railway stations in Mumbai and Jaipur. In Delhi, the chain will mark its presence through an outlet at the ambitious Delhi Metro Rail Corporation project, expected to be operational by year-end. And if all goes according to plan, another dominos outlet could come up at Delhi's Nizammuddin railway station. The fourth Dominos highway outlet on the Delhi-Jaipur highway is expected to begin operating shortly. The chain's other three highway restaurants are located on the Delhi-Agra highway, the Delhi-Ludhiana highway and the Mumbai-Pune highway. Promotion Mix Promotion is a process of communication with the potential buyers involving information, persuasion and influence. It includes all types of personal or impersonal communication with customers and intermediaries. Promotion mix refers to the combination o various promotional tools usd by a business firm to create, maintain and increase demand. It involves an appropriate integration of advertising, personal selling, sales promotion and publicity.

FINDINGS AND RECOMMENDATIONS

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 Pizza hut, McDonald‘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.

Dominos maintains its consistency in taste and quality. 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.

Recommendations The Recommendations to Dominos is to:

1. Maintain consistency in the taste and quality of products. 2. Include more items in its product line like burgers. 3. Include more promotional and advertising measures to increase its sales or to increase its market share. 4. They Should also freeze their Ice Creams at higher Temperature so that it does not get melted so early. 5. The most important thing is that they should also sell pizza‘s without cheese because today‘s generation is more Diet Conscious and each and every pizza of Dominos is more or less of cheese so they should make pizza‘s without cheese. 6. One Thing more Dominos should start is giving Customized waiter Services instead of Self Services. 7. The Soft Drinks provided in Dominos is more of Ice and less of Cold Drink.

DATA ANALYSIS

Analysis of Questionnaire

Q1. Do you love Outdoor eating? Yes

No

20%

20% NO

80% YES

80%

Out of the Sample of 100, following results were obtained: 

80% of the people agreed that they love Outdoor eating a lot.



20% of the people said that they don‘t like Outdoor eating.

Q2. How frequently do you visit Dominos ?

Once a week

More than once a week

Once a month

Less than once a month

Once a fortnight

Population 30

25

25 20 15 10

Population 5

8

7

5

5 0 Once a More than Once a Once a Week Once a Fortnight Month Week

Less than Once a Month

Out of the sample of 100, following results were obtained: 

25 informants said that they visit Dominos once in a fortnight. This section of people is 50% of the total sample.



8 informants said that they visit more than once in 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.

Q3. Restaurants preferred by customers

Restaurant

No. of persons

preferred Dominos

17

Pizza hut

15

McDonalds

10

KFC

3

Nirula‘s

5

Nirula’s Restaurants preferred KFC

5 3 10

Mcdonald

15

Pizza hut

17

Dominos 0

5

10 no. of persons

15

20



17 out of 100 persons surveyed preferred Dominos over any other restaurant, i.e. 34%.



15 persons preferred Pizza hut, i.e. 30%.



10 persons preferred McDonalds‘s, i.e. 20%



3 persons preferred KFC, i.e. 6%



5 persons preferred Nirula‘s, i.e. 10%

This survey conveys that there is a tough competition between Dominos, Pizza hut and McDonalds, kfc and burger king.

Q4. Rate Dominos on the following Attribute Scale:

Attribute

V-Good

Good

Above Avg.

Average

Poor

Taste of food

30

12

5

2

1

Variety of food

20

25

3

1

1

General hygiene

25

19

4

2

0

Ambience/Décor

9

12

21

5

3

Value for money

6

24

15

4

1

Friendliness of peers

9

20

15

4

2

Promptness of delivery

15

20

10

2

3

35 30 25 20 15 10 5 0

V-Good Good Above Avg. Average

Ta st e Va of fo r G iety od en er of f Am al oo bi hyg d e i Va nce ene Fr / l ie ue Déc Pr ndl f or or om ine m pt ss one ne o y ss f p of eer de s liv er y

Poor

Out of 100 Persons being surveyed, out of 30 Rating has been done. 

On the Rating Scale 30 is the highest Attribute rating for taste of food which is found to be V. Good.



And 25 is the highest Attribute rating which found the Variety of food to be Good.



25 is the highest Attribute rating which found the General Hygiene to be V. Good.



21 is the highest Attribute rating which found the Ambience/Décor to be Above Average.



24 is the highest Attribute rating which found the Value for Money to be Good.



20 is the highest Attribute rating which found the Friendliness of Peers to be Good.



20 is the highest Attribute rating which found the Promptness of Delivery to be Good.

Q5. Is Dominos ambience comfortable and well provided?

Views Strongly Disagree

No. of persons 1

Disagree

1

Neither agree

7

Agree

38

Strongly Agree

3

No. of persons 45 40 35 30 25 20 15 10 5 0

No. of Persons

Strongly Disagree Disagree

Neither Agree Agree

Strongly Agree

Regarding the Comfortability of Dominos, 

38 persons out of 100 surveyed agreed that its ambience is comfortable i.e. 60%



7 persons neither agree nor disagree i.e. 20%



3 persons strongly agreed i.e. 15%



1 person each disagreed i.e. 5%

Q6. Does Dominos maintains consistency in its taste and quality?

Views

No. of persons

Yes

43

No

7

No. of persons

No 14%

Yes 86%

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.

Q7. Are you satisfied with the prices charged by Dominos?

Views Very satisfied Satisfied Not satisfied

No. of persons 9 35 6

6

9

0

1 2 3

35

This question deals with the pricing of Dominos‘ food products.

Out of 100 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%

Q8. Do you find the promotional measures adopted by Dominos effective?

Views Very effective

No. of persons 7

effective

27

Not effective

16

No. of persons 30 25 20 No. of persons

15 10 5 0 Very effective

Effective

Not effective

This question deals with whether the promotional measures adopted by Dominos are effective or not.

Out of 100 persons being surveyed: 

7 persons find it very effective i.e. 10%



27 persons found it effective i.e. 50% while



16 persons doesn‘t find it effective i.e. 40%

Q9. What recommendations do you wish to suggest to Dominos?

Recommendations Include more variety

No. of persons 32

Reduce prices

6

Better advertising and promotion

5

Improve quality

7

7 0 1 5

2 3

6

32

4

This question gives out the suggestions to increase the sales.

Out of 100 persons surveyed: 

32 persons suggested that Dominos must include more variety i.e. 52%



6 persons suggested to reduce prices i.e. 12%



5 suggested to adopt better advertising and promotion measures i.e. 10% and,



7 suggested to improve quality i.e. 26%

Q10. How would you describe your eating experience at Dominos?

Experience

No. of Persons

Excellent

4

Very Good

17

Good

25

Poor

4

No. of persons 25 20 15 No. of persons

10 5 0

Excellent Very good Poor

Good

This question describes the eating experience at Dominos.

Out of 100 persons being surveyed: 

4 describe their eating experience as excellent i.e. 15%



17 as very good i.e.20%



25 as good i.e. 50% and



4 as poor i.e. 15%

Q11. Are you satisfied with the varieties of Dominos? Very satisfied

15%

Satisfied

Not Satisfied

0%

15%

70%

VERY SATISFIED SATISFIED NOT SATISFIED

Out of the Sample of 100, Following results were Obtained: 

70% of the people said that they were Very much satisfied with the Varieties of Dominos.



15% of the people said that they were only satisfied with the varieties of McDonlads.



15% of the people said that they were not at all satisfied with the varieties provided by Narulas.

Q12. Are you aware of the Charity services of Dominos?

Yes

No

40%

40% NO 60% YES

60%

From the following pie chart, following information has been obtained: 

60% of the people say that they are Aware of the Charity Services provided by Dominos and,



40% of the people say that they are not Aware of the Charity Services Provided by Dominos.

ANNEXURE

QUESSIONAIRE

Name:

Age:

Marital Status:

Occupation:

No. Of Children:

Income:

Q1. Do you love Outdoor eating? Yes

No

Q2. How frequently do you visit Dominos?

Once a week

More than once a week

Once a month

Less than once a month

Once a fortnight

Q3. Is Dominos ambience comfortable and well maintained? Strongly disagree n Disagree Neither agree Agree

Q4. Does Dominos maintains consistency in its taste and quality?

Yes No

Q5. Are you satisfied with the prices charged by Dominos? Yes NO

Q6. How would you describe your eating experience at Dominos?

Good

Poor

Excellent

Q7.Is dominos food hygienic? Yes

No

Q8.Are you satisfied with services provided by Dominos? Yes

No

Q9.Which option you prefer in dominos? Dine in

take away

home delivery

Q10.Do you go to any other outlet also? Yes

No

Q11.If yes,then which one? Pizza hut

Subway

McDonalds

Others

Q12.Have you ever called for home delivery of products from dominos? Yes

No

Q13.If yes do they have delivered their product in half an hour? Yes

No

BIBLIOGRAPHY

Books referred: Kotler P. (2004) ‗Marketing Management: Analysis, Planning, Implementation & Control‘, Prentice Hall of India, New Delhi Christopher G and Harold W Bukman, ‗ Marketing management C.B.Gupta

Articles referred:

Dominos : ―Think global, act global‖ – the marketing mix –

Websites referred: www.wikipedia.com www.dominos.com www.dominossindia.com www.emeraldlibrary.com www.google.com Websites of different fast food restaurants.