Domino's pizza has come a long way since it set shop in India in the year 1996. Under the control of Jubilant Foodworks which holds a master franchisee agreement (presently extending to Nepal, Sri Lanka and Bangladesh), it has taken long for the global pizza giant to warm up to the Indian consumer's mindset. But things are looking up now after massive changes have been put in place.
The questions posed to me during the feedback call revealed quite a lot about the new focus areas of Domino's Pizza here. In my opinion, they are:
- Variety - The addition of pastas and the choco lava cake complement the regular pizza offering which has itself been embellished by the new Cheese Burst (below) - a roaring success.
- Quality - The effort to incorporate customer feedback, specifically in improvements indicates the strong focus on quality.
- Value for money - With offerings starting from Rs.39/- and exciting deals on the menu, Domino's is proving to be an ideal dining destination for the middle-class youth.
Any successful CEO would vouch for the fact that successful strategies are born out of the analysis of huge volumes of data, which bring out the strengths and opportunities that the organization should invest in. I have a feeling Domino's is doing exactly that, thereby gearing itself up for a successful growth phase in India where it aims to grow to over 500 stores in the next 2 years having stood at just 120 stores 2 years back. The CRM system and the feedback process only confirm my beliefs.India is the fastest growing market for Domino's worldwide, and is expected to become one of the top 5 markets globally within the next 3 years. No wonder, Patrick Doyle's first halt was in India, after taking over as the new CEO recently.
However, managing growth will be a great challenge and requires immense planning, focus and superb execution, along with great leadership. In my opinion, some of the challenges Domino's will face are the following:
- Standardization in product and service across all outlets in this vast diverse country
- Food price inflation will surely affect margins, yet pricing needs to be competitive
- India is primarily a dine-in market unlike most other countries where Domino's thrives on home delivery (which happens to be its USP) - Real-estate, store management etc. require specialized skills
Notwithstanding these challenges, Domino's is trying to inch-ahead on the innovation front (with online ordering being the latest one) and I'm sure competitors are feeling the heat.<Photo (left): My friends Bala and Harish relishing our last lunch at a Domino's Pizza outlet in Indore - a place that we would miss terribly (Yes, we were regulars there!), yet carry fond memories>
Harish yaen pizza-kku pooja pannittu irukkaan?
ReplyDeleteComing to Dominos,don't you think it faces stiff competition from Hut? The growth potential of Hut,a division of KFC,appears to be much bigger than that of Dominos.
Nicely written man. A phone-in feedback process definitely sounds like a novelty for a pizza outlet. Although I wouldn't worry so much about the dine-in culture. The other day I had to wait for over 2 hrs for a table at a restaurant and I was seriously considering going home and calling for a home delivery. I think it's a matter of time before people will realize the costs associated with dining -out, at least in big cities.
ReplyDeleteWhat is of more concern is to what extent Domino's or any other pizza outlet for that matter will rise up in people's rank of choice for dinner food. Pizza still remains a once-in-a-while pick among most households with only the affluent student/young executive community driving the profits.
@Sekhar - No doubt Pizza Hut has a huge market in India presently, but Domino's has grown more than any other chain in the last 2 years (120 to 300 outlets). This along with the new found professionalism in them and the buzz they are generating (there may be an IPO soon) makes me bet on their further expansion.
ReplyDeleteMy personal experience says that Dominos has found a good niche for itself as a convenience dining place, while Pizza Hut continues to grow as a family dining destination. Let's watch the action in the market as it happens!
@Shreyas - Excellent point. Waiting time can be a huge issue which can impact customer satisfaction, more so with the limited dining space available at outlets. For your 2nd question, I just have 1 thing to say. The arrival of Taco Bell only shows the growing preference for non-conventional cuisine in India.
Didn't know Taco Bell had entered India! Only in Bangalore right now, but hope to get a taste of it soon!
ReplyDeleteAnd I'm not saying that Indians lack inclination for exotic, international food. My point is: how often a pizza would be a choice of dinner when you have myriads of Indian cuisines on offer? Especially since many of the Indian restaurateurs adapting to the market to compete with foreign chains.
I have been reading your blogs, and am impressed with your style. Carry on with the good work!!!
ReplyDeleteAnupam
@Shreyas - That will be an interesting to observe in the days to come by. I would definitely be driven towards a pizza outlet almost as often as I would be to an Indian restaurant (as I was doing in Indore). A challenge for pizza chains will be to provide offerings to the health-conscious. Let's see how this pans out in the months and years to come! :)
ReplyDelete@Anupam ji - Thanks a lot! Encouraged by readers like you!