Designing and Managing Services:

Managing Fluctuating Demand

Introduction

Owned by: Jubilant FoodWorks

Started operations : 1996
Restaurants : 700+
Presence: 152 Indian cities
Market share: 54%
Pizza home delivery segment : 70%
Believes in Think Global , Act Local

Marketing Mix

Product

Localized
flavours
Product
innovation
Packaging

Place

Largest range of
outlets in the
country
Strategic
locations of
outlets

Price

Targeted value
conscious
customers
High price
attributed to
high quality of
ingredients
used

Physical
Environment

People

Promotion

Mass media
In-store
advertising
Coupons
Digital
Advertising
Yeh he rishto
ka time

Heavily
emphasizes on
training of its
employees
Uniformed
employees
Employees
facing the
customer can
speak english
as well as local
language

Very basic
ambience
Small outlets
with very few
tables
No plates are
provided

Process

Self-service
Home delivery
Each staff
member has a
specific task so
everything falls
in place

Dominos
Pizza
Outlet

Physica
l
Evidenc
e
Custom
er
Actions

Enter
Restaura
nt

Customer
Receives
food

Onstag
e
Contact

Place
order at
counter

Attendan
t
Serves
food

Backst
age
Contact
Suppor
t
Actions

Website

Place
order
from
home

Mobile/
Telephon
e
Food
Delivery @
doorstep

Food
taken for
delivery
Order
placed in
System
Preparati
on of
Food

Food
kept for
service

Demand Fluctuation

Intra Day
Afternoon- Students and office goers
Late Evening Families and Couples
Intra Week
Sales double up during weekends
30% rise in sales due to Buy 1 Get 1
FREE

Demand Fluctuation
Intra day
Morning
Evening

40%

Afternoon
Night
10%
30%

20%

Intra Week
800
600
400 300
200
0

550
325

350

330

600

625

Taste,
time,
price
expectati
ons
Knowledge

Demand Fluctuation
Customer

Gap

Misconcepti
ons, lack of
suggestions

Delivery Gap: Pizza not

delivered on time

Standards
Gap

Exclusion of
cost in case
of special
offers

Mismanaged
queue
system,
delivery
Delivery
lagging

Interpretation
Gap

Unempathe
tic
Behvaiour,
unavailable
on phone

Gap

Undertrai
ned
attenders,
order
Perception
takers
Gap

Unaware
about
ingredient
s

Due to fluctuating demands

service quality gaps may
occur

Service
Gap

Switch to
competitors

Service Gap: Pizza not

delivered hot and service did not
meet customer expectations
Communication Gap: 30
minutes delivery claim not met.
Interpretation Gap: Non
courteous behavior on phone

Tangibles

Good
packaging so
that food
remains hot
and crisp until
it reaches
destination
Discount
coupons
offered
Pizza boy is
dressed neatly
Reliability
and
professionaly

On time delivery

Pizza Is hot and

fresh

Late delivery is
compensated

Bill is error free

Empathy

Attributes

Responsivene
ss

Updates

customers
about new
menu items and
offers
Ensures delivery
in 30 minutes

The call is
greeted politely
Telephone
operator is
courteous
Order is placed
without any
communication
problems

Assurance

New discount
schemes are
told before
placing order
Employees are
aware of
different menu
options

Dominos strategy
High Demand

Defines service standard

No penalties
Work Hours Extension
Staff Planning
Check correctness of order
Route Planning
Limiting Liability
Managing Late Deliveries
Inventory Management

Low Demand
Calling up previous customers
New Products + Good side
dishes
Bundling of Products
Divert peak demand
Move inventory for evening
sales
Make pizza boxes
Inventory Management

Learning and Conclusion

ThankY
Group 3
1. Manan Chandarana F011
2. Mayur Dadia F014
3. Satyajeet Kulkarni F030
4. Deep Shah F055
5. Sachin Singh
6. Himanshu Sood -