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CHAPTER- 1
FAST FOOD INDUSTRY
INDUSTRY OVERVIEW
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1.1INDUSTRIAL BACKGROUND
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 Nirulas. 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.
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Consumer Satisfaction in Dominos Pizza India Limited 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.
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 McDonalds, Pizza hut and Kentucky Fried Chicken have become household names, more are on their way.
Consumer Satisfaction in Dominos Pizza India Limited 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 worlds greatest fast food fans. Percentage of adult population eating at takeaway restaurants at least once every week: Hong Kong Malaysia Philippines Singapore Thailand China India Europe 61 % 59 % 54 % 50 % 44 % 41 % 37 % 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
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Consumer Satisfaction in Dominos Pizza India Limited 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 dinner. Their streamlined production
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Consumer Satisfaction in Dominos Pizza India Limited 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 insulate, 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.
Consumer Satisfaction in Dominos Pizza India Limited satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-ofmouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and reprehensive measures of satisfaction. In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel even though its facilities and service would be deemed superior in absolute terms.
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Consumer Satisfaction in Dominos Pizza India Limited The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.
Consumer Satisfaction in Dominos Pizza India Limited Philip Kotler, Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Marketing mix is a term used to describe the combination of the four inputs which constitute the core of a companys marketing system: the product; the price structure; the promotional activities, and the distribution system. Marketing mix represents the total marketing program of a firm. It involves decisions with regard to product, price, place and promotion. Marketing mix is a b lending of decisions in the 4 Ps. Four major ingredients of marketing mix are:
1. ProductA 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
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Consumer Satisfaction in Dominos Pizza India Limited g) Product range h) Product testing
2. PricePrice 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 required to determine the price that will enable the firm to sell its products successfully. Demand, cost,
competition, government 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. PromotionPromotion 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
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Consumer Satisfaction in Dominos Pizza India Limited 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.
1. Product MixAs 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 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 Vegetarian Products: o Veg. Cheese Pizza o Veg. Onion Pizza o Feast Pizza Beverages: o Cold Coffee o Hot serves o Soft drinks o Shakes Non-Vegetarian Products: o Simply Chicken Pizza o Non-Veg. I o Non-Veg. II Desserts: o Soft serve cone o Choco lava cake food
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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. That's how Dominos plan their product range. Food quality is key at Dominos. Thats why they take pride in the foods they serve 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. Trikaya Agriculture - Supplier of Iceberg Lettuce:
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Consumer Satisfaction in Dominos Pizza India Limited 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- separate processing line 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 centers 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:
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Consumer Satisfaction in Dominos Pizza India Limited 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.
2. Price MixPrice 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 pr ice 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
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Consumer Satisfaction in Dominos Pizza India Limited policies and establish or approve decisions. The aim is toensure that the salespeople quote prices that are reasonable to customers and profitable to the company. Now-a-days, most companies follow buyer based pricing. They are basing their prices on the Products perceived value. They see buyers perception of value, not the sellers 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 marketdetermined 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.
3. 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.
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Consumer Satisfaction in Dominos Pizza India Limited Dominos distribution centers 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:o 72 restaurants in North & East India: 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) o 50 in west and 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)
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Consumer Satisfaction in Dominos Pizza India Limited 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, dominos India. The new outlets will be a combination of highway restaurants, outlets at railway stations, at shopping malls and Cineplex, 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 chains other three highway restaurants are located on the Delhi-Agra highway, the Delhi- Ludhiana highway and the Mumbai-Pune highway.
4. Promotion MixPromotion 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 of various promotional tools used by a business firm to create, maintain and increase demand. It involves an appropriate integration of advertising, personal selling, sales promotion and publicity.
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COMPETITORS INFORMATION:
Major players in this field: 1) Papa Johns Pizza 2) Nirulas 3) Pizza hut 4) KFC 5) Mc Donalds These day working executives are busy a lot they dont have the spare time to cook food due to their high this possible income and ever increasing arperalional levels they prefer to it out at this fast food outlets (McDonalds, Nirulas, Pizza Hut) where they find the match according to their asperitional level.
1. Papa Johns PizzaPapa John's Pizza (NASDAQ: PZZA) is the third largest take-out and delivery pizza restaurant chain in the United States, behind Pizza Hut and Domino's Pizza. It is based in Louisville, Kentucky. Papa John's slogan is Better Ingredients. Better Pizza."
Internationally, there are over 3,300 Papa John's establishments, including over 2,600 in the U.S. and more than 500 in over 30 other countries. Papa
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Consumer Satisfaction in Dominos Pizza India Limited John's primarily takes carryout and delivery orders, although some stores have tables and chairs. Papa John's offers online ordering throughout the United States, automatically assigning all registered customers to the closest location.
2. NirulasEstablished in 1934, Nirulas today is a diversified group having a chain of elegant Business hotels, Waiter service restaurants, Family style restaurants, Ice Cream parlors, 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 parlors offer an extensive range of exciting and innovative ice cream flavors with one new flavor added every month. Nirulas pastry shops are a one-stop shop for bakery and confectionary items.
3. Pizza Hut-
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Consumer Satisfaction in Dominos Pizza India Limited 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.
4. KFCKFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997, when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside the USA, KFC offers beef based products such as hamburgers or kebabs, poutine, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back
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Consumer Satisfaction in Dominos Pizza India Limited to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.
5. Mc DonaldsMcDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain, McDonalds Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006, and owned the restaurant chain Boston Market until 2007. A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.
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Consumer Satisfaction in Dominos Pizza India Limited McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.
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Consumer Satisfaction in Dominos Pizza India Limited Middleby Marshall has partnered with Dominos India since their first pizza store opened in New Delhi in 1996. Today, India is the fastest growing country in the Dominos network. "We are honored to receive this award from a true partner and the very innovative team at Dominos India," said Middleby Marshall President Mark Sieron. "Our ovens have helped Dominos establish a reputation in India for being the home delivery specialist capable of delivering pizzas within 30 minutes to a community of loyal customers from its entire chain of stores around the country." Industry data confirms people across India are consuming more than three million pizzas a month and the monthly sales figures are projected to double in the next four years across India. Since inception, Domino's Pizza India Ltd. has proceeded to become one of the largest and fastest growing international food chains in South Asia. Today, Domino's Pizza India has grown into a countrywide network of over 220 outlets in 42 cities and is the leader in the fast food delivery segment. Ever since it was established, Domino's Pizza India has maintained its position of market leadership with its constant product innovation. Customers can order their pizzas by calling a single countrywide Happiness Hotline. Domino's India was the first to start this type of countrywide number for its customers. Currently Middleby Marshall Ovens are installed in Dominos restaurants around the world, cooking more than 1 million pizzas per day. R. Narayan B. Iyer and Dr. Suhasini Sharma from Indian Development Foundation created awareness on TB to the members of Dominos Pizza at four different stores in Mumbai on Saturday, 14th March. Dominos Pizza
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Consumer Satisfaction in Dominos Pizza India Limited Stores at Vile Parle (West), Vile Parle (East), Mahakali Caves Road and Chakala organized the awareness program.
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Ajay Kaul, Chief Executive Officer of Domino's India (left) and Tarun Bhasin, Domino's India Chief of Operations (right) present the theDomino's India 2008 Business Partner of the Year Award to Abhishek Azad of Middleby-Marshall India (center).
CHAPTER- 2
INTRODUCTION TO THE PROBLEM
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CHAPTER- 3
RESEARCH METHODOLOGY
3.1 Research Design
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Consumer Satisfaction in Dominos Pizza India Limited 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.
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 sources: Questionnaire Method Direct Personal Interview Method Observation Method
SECONDARY DATA It is not possible to collect first hand information for each & everything so, secondary data from various sources like Internet, A. C Neilsons report on
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Consumer Satisfaction in Dominos Pizza India Limited Jan, 2007, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline Website.
3.3 Sampling
A fine subset of the population, selected from it with the objectives of investigating its properties is called a sample and the number of unit in the sample is known as sample size. Sampling is a tool which enables us to draw conclusion about the characteristics of the population after studying only those subjects or items that are included in the sample. In sampling method only few units of the population is considered. The choice of an appropriate sampling design is of keeping in view the objectives and scope of the enquiry and the type of the universe to be sampled.
Sampling techniques:
Random sampling Non random sampling Random sampling: A random sampling is done in such a way that each member of the universe has a change of being selected, which enables statistics procedures to be used under the result to estimate sampling. Non random sampling: In the non-random sampling the chance of any particular unit in the population being selected is unknown. The judgments sampling method under non-random sampling method was adopted for the study with a
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Consumer Satisfaction in Dominos Pizza India Limited sample size of 100 respondents, which are chosen in a judgment manner from the customer. In this method a designed number of sample unit is selected deliberately or purposely depending upon the objectives of the enquirer so that only the important items representing the true characteristics of the population are included in the sample.
Area of samplingIn this study primary data plays a vital role. The process of choosing the correct number of respondents is nothing but sampling procedure. Sampling area: Bangalore city
Sampling Size100 is the number of items to be selected from the universe to constitute the sample. The method used here is random sampling and on- the spot sampling, where the samples are selected without considering any particular quality.
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Consumer Satisfaction in Dominos Pizza India Limited Region Jayanagar Kumaraswamy Layout Banashankari Number of respondents Yet to approach - Do - Do -
convenient sampling and judgment (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.
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Consumer Satisfaction in Dominos Pizza India Limited This chapter deals with the methodology in the approach of the study. It includes all the framing of objectives to fieldwork and analysis, and gives a detailed description of the research design. 4. Company Profile This chapter reveals the detailed information about the company along with the important people, employees, products and services. 5. Data Analysis and Interpretation This chapter deals with the analysis of the questionnaires used for survey as a primary source of data. 6. Findings This chapter is all about what is being analysis from the previous chapter along with the derivations from the questionnaires.
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CHAPTER- 4
COMPANY PROFILE
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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, cheese sticks, and a variety of dessert items.
Company BackgroundPage 39
Consumer Satisfaction in Dominos Pizza India Limited In 1960, Tom Monaghan and his brother, James, purchased Domi Nick'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. 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 it s first international store, in Winnipeg, Manitoba, Canada. The 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:
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Consumer Satisfaction in Dominos Pizza India Limited 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-today operations of the company. A year later, the company named David A. Brandon Chairman and Chief Executive Officer.
Current ScenarioIn 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 per year. As of September 2006, it has 8,238 stores which totalled 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.
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Consumer Satisfaction in Dominos Pizza India Limited 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 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 Range-
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Consumer Satisfaction in Dominos Pizza India Limited 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 entrees toppings. include
Additional
pasta bread bowls and ovenbaked 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 deliver y. 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 opt ion. 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
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Consumer Satisfaction in Dominos Pizza India Limited 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. 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 Bread Bowl Pasta entree, a lightly seasoned bread bowl baked with pasta inside, and Lava Crunch Cake dessert, composed of a crunchy chocolate shell filled with war m fudge. Domino's promoted the item by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Centre 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
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A makeline at dominos
pizzas. Their advertising campaign admitted to earlier problems with the public perception of Domino's product due to issues of taste. Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly and president of Domino's USA. Previous chief executive David Brandon, made athletic director of the University of Michigan in January 2010, remains chair man. 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.
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Charitable activities
In 2001, Domino's launched a two-year national partnership with the MakeA-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 Centre and The Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red Cross' disaster relief effort. 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.
Consumer Satisfaction in Dominos Pizza India Limited 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.
Consumer Satisfaction in Dominos Pizza India Limited 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 and delicious pizza or free.
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CHAPTER- 5
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Methods selection in evaluation also needs to be very focused on value for money in terms of the selection of methods. There are usually limited evaluation resources and they need to be used wisely. Evaluation methods should be fit for purpose in the sense that they provide the amount of information required at a level of certainty which is sufficient for the purpose of the evaluation.
1) Analysis of Table 1:
Love for outdoor eating PARTICULAR Yes No TOTAL NO.OF RESPONDENTS 80 20 100 PERCENTAGE 80% 20% 100%
As per the data analysis, 80 respondents love outdoor eating and 20 respondents like to dine at their homes.
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Yes No 80%
INTERPRETATION: In the first question, we have the assessed the outdoor eating preferences of our respondents and we interpreted that a majority of 80% respondents replied that they like eating outdoors.
2) Analysis of Table 2:
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PARTICULAR Once a week More than once a week Once a month Once a fort night TOTAL
As per the data analysis, 20 respondents visit once a week, 14 visit more than once a week, 16 visit once in a month and 50 respondents visits Dominos once a fort night.
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50 45 40 35 30 25 20 15 10 5 0 Once a week More than once a week Once a month Once a forth night 20 14 16 50
Frequency of visit
INTERPRETATION: In this question, we have assessed the frequency of visits to Dominos Outlets, and we interpreted that a majority of 50% respondents visit fort night and 20% respondents visit once a week.
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3) Analysis of Table 3:
Customer Preference PARTICULAR Dominos Pizza Hut Mc Donalds KFC TOTAL NO.OF RESPONDENTS 34 30 20 16 100 PERCENTAGE 34% 30% 20% 16% 100%
As per the data analysis of question 3, 34 prefer Dominos, 30 respondents prefer Pizza Hut, 20 like Mc Donalds and the rest 16 go for KFC.
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35% 30% 25% 20% 15% 10% 5% 0% Domino's Pizza Hut Mc Donald's KFC 34%
Customer Preference
INTERPRETATION: In the third question, we have analyzed the customer preference in terms of fast food outlets. From the above graph, we have interpreted that most of the people that is 34% respondents prefer Dominos followed by Pizza Hut being 30%, Mc Donalds 20% and KFC 16%.
4) Analysis of Table 4:
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Consumer Satisfaction in Dominos Pizza India Limited Consistency of taste and quality
As per the data analysis, 86 respondents said there is a consistency of taste and quality in the food at Dominos Pizza, while 14 respondents did not agree upon this.
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Constency in Taste
14%
Yes No
86%
INTERPRETATION: In this question, we have assessed about the taste and quality consistency at Dominos Pizza India Limited, and we interpreted from the above data that 86% respondents feels the same taste and quality every time they visit, while the rest 14% said that there is bit changes in taste and quality time to time.
5) Analysis of Table 5:
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Consumer Satisfaction in Dominos Pizza India Limited Pricing Satisfaction PARTICULAR Satisfied Very Satisfied Not Satisfied TOTAL NO.OF RESPONDENTS 55 30 15 100 PERCENTAGE 55% 30% 15% 100%
As per the data analysis, 55 respondents are satisfied with its price, 30% are very satisfied, and 15 are not that much satisfied with the pricing.
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Promotional Measures
Satisfied Very Satisfied Not Satisfied
15%
30%
55%
INTERPRETATION: In this question, we have assessed the price satisfaction of the respondents and 55% are satisfied with its price, whereas 30% are very much satisfied but 15% do not feel good about the price.
6) Analysis of Table 6:
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As per the data analysis, 10 respondents think that the promotional measures of Dominos is very effective, 50 think its effective to a certain extent, while 40 do not the promotional measures effective.
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Promotional Measures
Very effective Effective Not Effective
40%
10%
50%
INTERPRETATION: In the seventh question, we have assessed the effectiveness of Dominos promotional measures. From the above chart, we interpreted that 50% respondents think it was effective while 40% do not think so.
7) Analysis of Table 7:
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Consumer Satisfaction in Dominos Pizza India Limited Recommendation to Dominos PARTICULAR Include more varieties Reduce Prices Better Promotions Improve Quality TOTAL NO.OF RESPONDENTS 52 12 10 26 100 PERCENTAGE 52% 12% 10% 26% 100%
As per the data analysis recommendation to Dominos goes like this : respondents who need more varieties are 52, who want reduction at the price are 12 , those who feel that the promotional strategy is not having the impact are 10 and who desires for quality are 26.
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60
52
50
40 26
30
20
12
10
10
Recommendation to Dominos
INTERPRETATION: In this question, we have assessed the suggestions and feed back of the respondents about Dominos and we interpreted that a majority of 52% wants more varieties to be added to the menu, 12% suggests a low price, 10% better promotion and 26% recommend to improve the quality of food.
8) Analysis of Table 8:
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Consumer Satisfaction in Dominos Pizza India Limited Eating Experience PARTICULAR Excellent Very Good Good Poor TOTAL NO.OF RESPONDENTS 15 20 50 15 100 PERCENTAGE 15% 20% 50% 15% 100%
As per data analysis, the eating experience of 15 respondents was excellent, 20 was very good, 50 good, and 15 poor.
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Eating Experience
15% 15%
20%
50%
Poor
We have analyzed that 50% respondents has a good eating experience and 15% respondents did not feel a nice experience there.
9) Analysis of Table 9:
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Consumer Satisfaction in Dominos Pizza India Limited Varieties satisfaction PARTICULAR Very Satisfied Satisfied Not Satisfied TOTAL NO.OF RESPONDENTS 70 15 15 100 PERCENTAGE 70% 15% 15% 100%
As per data analysis, 70 respondents are very satisfied with the varieties in menu, 15 are only satisfied, and 15 are not satisfied.
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70%
15%
15%
Very Satisfied
Not Satisfied
INTERPRETATION: In this question, we have assessed that 70% respondents are very satisfied with the varieties in food menu, while 15% are not satisfied with those varieties.
Consumer Satisfaction in Dominos Pizza India Limited Awareness of Charity Services PARTICULAR Yes No TOTAL NO.OF RESPONDENTS 60 40 100 PERCENTAGE 60% 40% 100%
As per data analysis, 60 are aware of the charity schemes while 40 do not know about the charity schemes of Dominos.
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60%
40%
No Charity Services
INTERPRETATION: In this question we have assessed the awareness of charity scheme of Dominos among the respondents and 60% result was positive.
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As per data analysis, 98 respondents said that the Dominos Outlets are hygienic while 2 replied negatively.
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Hygiene
2%
Yes No
98%
INTERPRETATION: In the eleventh question, we have assessed about the hygienic condition and we have interpreted that 98% customers are happy about the hygiene there.
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As per data analysis, 39 respondents prefer to dine in the dominos Outlets and the rest 61 prefer take away.
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Dining Preference
39%
61%
INTERPRETATION: In this question, we have assessed the preference to dine in Dominos Outlets and we interpreted that a majority of 61% prefer take away.
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As per data analysis, 100 respondents have ordered for home delivery from Dominos Pizza.
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INTERPRETATION: In this question, we have assessed whether the respondents have ever ordered for home delivery and the result was 100% yes.
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As per data analysis, 96 respondents said that they got the home delivery within 30 minutes but 4 did not get within that time limit.
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Yes No
96%
INTERPRETATION: In this question, we have assessed that 96% respondents got their order within 30 minutes of order while 4% did not.
Consumer Satisfaction in Dominos Pizza India Limited Ambience PARTICULAR Yes No TOTAL NO.OF RESPONDENTS 52 48 100 PERCENTAGE 52% 48% 100%
As per the data analysis, 52 respondents liked the ambience and 48 did not.
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52% 51% 50% 49% 48% 47% 46% Yes Ambience No 48% 52%
INTERPRETATION: In this question, we have assessed that 52% feels nice about Dominos ambience, while 48% said there should be some more creativity.
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As per data analysis, 28 respondents said they prefer vegetarian food and 72 prefer Non- vegetarian.
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72% 80% 70% 60% 50% 40% 30% 20% 10% 0% Veg Non - Veg Food Preference 28%
INTERPRETATION: In this question, we have assessed that 72% prefer Non-vegetarian over Vegetarian food.
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CHAPTER- 6
FINDINGS OF THE STUDY
80% of the customers loved to dine outside their home. 50% of the respondents visit Dominos once a fort night ,followed by once a week, once a month and then more than once a week. 34% of the respondents prefers Dominos, then followed by pizza hut, Mc. Donalds and KFC respectively. 86% of the customers felt that the taste and quality of the food at Dominos Pizza remains same, whenever they visit. 55% of the customers are followed by the pricing and less than 20% are not satisfied.
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Consumer Satisfaction in Dominos Pizza India Limited 50% of the respondents feel that the promotional measures are effective only 40% felt that it is not. 52% recommended that Dominos should include more varieties, then some of them suggested that there should be reduction in prices, then 26% and 10% suggested that improve in quality and better
promotion should be there. 50% consumers are satisfied with the eating experience in Dominos only 15% felt bad about it. 70% of the customers are happy with the varieties which are offered in the menu only 15% was not satisfied. The 60% respondents are aware about the charity services which are taken under by the co. rest of them are in dark. 98% customers are satisfied with the hygiene factor at Dominos. 39% of the respondents feel like to dine in the outlet and the rest of 61% want to take away and enjoy their meal at outside of the outlet. 100% respondents ordered for home delivery also in their past. 96% of the respondents got their home delivery package within 30 minutes. 52% of the respondents feel the ambience of the outlet is good and rest of them doesnt seem to be very happy. 72% respondents liked to have non- vegetarian food and only 28% turned up for vegetarian food in the outlet.
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Consumer Satisfaction in Dominos Pizza India Limited As per the data analysis, 80% respondents love outdoor eating and 20% respondents like to dine at their homes. As per the data analysis, 20% respondents visit once a week, 14% visit more than once a week, 16% visit once in a month and 50% respondents visits Dominos once a fort night. As per the data analysis of question 3, 34% prefer Dominos, 30% respondents prefer Pizza Hut, 20% like Mc Donalds and the rest 16% go for KFC. As per the data analysis, 86% respondents said there is a consistency of taste and quality in the food at Dominos Pizza, while 14% respondents did not agree upon this. As per the data analysis, 55% respondents are satisfied with its price, 30% are very satisfied, and 15% are not that much satisfied with the pricing. As per the data analysis, 10% respondents think that the promotional measures of Dominos is very effective, 50% think its effective to a certain extent, while 40% do not the promotional measures effective. As per the data analysis recommendation to Dominos goes like this : respondents who need more varieties are 52%, who want reduction at the price are 12% , those who feel that the promotional strategy is not having the impact are 10% and who desires for quality are 26%. As per data analysis, the eating experience of 15% respondents was excellent, 20% was very good, 50% good, and 15% poor.
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Consumer Satisfaction in Dominos Pizza India Limited As per data analysis, 70% respondents are very satisfied with the varieties in menu, 15% are only satisfied, and 15% are not satisfied. As per data analysis, 60% are aware of the charity schemes while 40% do not know about the charity schemes of Dominos. As per data analysis, 98% respondents said that the Dominos Outlets are hygienic while 2% replied negatively. As per data analysis, 39% respondents prefer to dine in the dominos Outlets and the rest 61% prefer take away. As per data analysis, 100% respondents have ordered for home delivery from Dominos Pizza. As per data analysis, 96% respondents said that they got the home delivery within 30 minutes but 4% did not get within that time limit. As per the data analysis, 52% respondents liked the ambience and 48% did not. As per data analysis, 28% respondents said they prefer vegetarian food and 72% prefer Non- vegetarian.
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CHAPTER- 7
RECOMMENDATIONS & CONCLUSIONS
Dominos should use more aggressive marketing strategy to attract the customers.
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Consumer Satisfaction in Dominos Pizza India Limited Dominos should introduce some new dishes to pull the customers. Dominos should work out on the ambience more for satisfaction of the customers. Dominos should charge a little less to capture more market. Dominos should improve his quality of the pizzas to the new heights. Dominos should increase the veg. pizza portfolio also for the veggies. They should open more outlets in the overcrowded areas. Dominos should use glass tumblers instead of disposable one to serve the customers. Washrooms should be maintained properly. The personnel should be more polite and well informative Dominos floors should be frequently cleaned. Better air-conditioning can be arranged in the outlet. Frequent feedbacks should be taken from the customers for regular improvement. And last but not the least it should introduce more proper Indian style pizza to attract more INDIANS.
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ANNEXURE
Questionnaire
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Dear respondent,
I, Hrishikesh Borah student of Dayananda Sagar Junior Business School, doing my project on Consumer Satisfaction in Dominos Pizza India Ltd. I would be grateful to you if you could kindly cooperate with my work for better of my knowledge.
2. How frequently you visit Dominos? Once a week Once a month More than once a week Once a forth night
3. Which fast food outlets do you prefer the most? Dominos KFC Pizza Hut Mc.Donalds
5. Is the prices are satisfactory or not? Satisfied Satisfied Very Satisfied Not
6. Are the promotional efforts are good enough to pull the customers?
Effective
Very Effective
Not Effective
9. Is there enough varieties of food to satisfy you? Very Satisfied Satisfied Satisfied Not
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10.Do you aware about the charity services done by Dominos? Yes No
13.Do you ever ordered food for home delivery from Dominos? Yes No
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Veg
Non Veg
BIBLIOGRAPHY
Observation Individual pre and post program feedback forms through questionnaires. Interviewing and mailing
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Consumer Satisfaction in Dominos Pizza India Limited Text book Consumer behavior- Appahnahiah, Reddy & Ramnath
Websites
www.google.com www.dominos.co.in www.wikipedia.in www.answers.com
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