Organisation Theory Project on Domino’s

Pizza India
Submitted by:
Satya Priya Das 18202187
Sayan Ghosh 18202188
Shibajyoti Sarkar 18202189
Shilpi Roy 18202190
Shivani Tripathi 18202191
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 Acknowledgement

Acknowledgement is an expression of a gratitude for assistance in creating an original work.

Success is the feeling that tingle of excitement about what we do, sticking with what matters
through hard times.

We would like to thank Domino’s India for helping us this project. Most of all we would like
to extend our heartfelt gratitude and appreciation, which words cannot describe, to PROF.
DR. JITENDRA MOHANTY, the Father, Guide and the Friend like figure for the immense
support in every possible way.

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 Contents
 Introduction 4
 History of Domino’s Pizza 5
 International Expansion 6
 30 Minutes Guarantee 6
 Present Market Condition 7
 Product and Innovation 8
 Mission and Vision 11
 Life Cycle Stage 11
 Complexity 12
 Centralisation 12
 Formalization 12
 Strategic Objectives 13
 Technology 13
 Environment 15
 Conclusion 15

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INTRODUCTION:
Domino's Pizza, Inc. now branded simply as Domino's, is an American pizza restaurant chain
founded in 1960. The corporation is headquartered at the Domino's Farms Office Park in Ann
Arbor, Michigan, and incorporated in Delaware. In February 2018, the chain became the
largest pizza seller worldwide in terms of sales.
 More than 12,900 franchised and company-owned Restaurants in more than 80
international markets.
 1st Restaurant operated in India in March 1996.
 1167 Restaurants across 269 Indian cities.
 India is currently the biggest market for Domino’s Pizza outside the United States.

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HISTORY OF DOMINO’S PIZZA:
On April 23, 1963, Tom Monaghan and his brother, James, took over the operation of
DomiNick's, an existing location of a small pizza restaurant chain that had been owned by
Dominick Di Varti, at 507 Cross Street (now 301 West Cross Street) in Ypsilanti,
Michigan, near Eastern Michigan University. The deal was secured by a $500 down payment,
and the brothers borrowed $900 to pay for the store. The brothers planned to split the work
hours evenly, but James did not want to quit his job as a full-time postman to keep up with the
demands of the new business. Within eight months, James traded his half of the business to
Tom for the Volkswagen Beetle they used for pizza deliveries.
By 1965, Tom Monaghan had purchased two additional pizzerias; he now had a total of three
locations in the same county. Monaghan wanted the stores to share the same branding, but the
original owner forbade him from using the DomiNick's name. One day, an employee, Jim
Kennedy, returned from a pizza delivery and suggested the name "Domino's". Monaghan
immediately loved the idea and officially renamed the business Domino's Pizza, Inc. in 1965.

The company logo originally had three dots, representing the three stores in 1965. Monaghan
planned to add a new dot with the addition of every new store, but this idea quickly faded, as
Domino's experienced rapid growth. Domino's Pizza opened its first franchise location in
1967 and by 1978, the company expanded to 200 stores. In 1975, Domino's faced a lawsuit
by Amstar Corporation, the maker of Domino Sugar, alleging trademark infringement and
unfair competition. On May 2,1980, the Fifth Circuit Court of Appeals in New Orleans found
in favor of Domino's Pizza.

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INTERNATIONAL EXPANSION:
On May 12, 1983 Domino's opened its first international store, in Winnipeg, Manitoba,
Canada. That same year, Domino's opened its 100th store, its first in Vancouver,Washington.
In 1985, the chain opened their first store in the United Kingdom in Luton. Also, in 1985,
Domino's opened their first store in Tokyo, Japan. In 1993, they became the second American
franchise to open in the Dominican Republic and the first one to open in Haiti, under the
direction of entrepreneur Luis de Jesus Rodriguez. By 1995, Domino's had expanded to 1,000
international locations. In 1997, Domino's opened its 1,500th international location, opening
seven stores in one day across five continents. By 2014, the company had grown to 6,000
international locations and was planning to expand to pizza's birthplace, Italy; this was
achieved on October 5, 2015, in Milan, with their first Italian location. CEO Patrick Doyle, in
May 2014, said the company would concentrate on its delivery model there.
In February 2016, Domino's opened its 1,000th store in India.

30-Minutes 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 another 1993 lawsuit, 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 awarded
nearly $80 million but accepted a payout of $15 million. The guarantee was dropped that same
year because of the "public perception of reckless driving and irresponsibility", according to
then-CEO Tom 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 half an hour.
The company continues to honor the 30-minute guarantee for orders placed in its stores situated
in Colombia, Vietnam, Mexico, China, and India. The 30-minute guarantee is subject to the
terms and conditions applied in the respective country.

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Present Market Condition:
In 2004, after 44 years as a privately held company, Domino's began trading common stock on
the New York Stock Exchange under the ticker symbol "DPZ". Industry trade
publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003, 2010,
and 2011. In a simultaneous celebration in January 2006, Domino's opened its 5,000th U.S.
store in Huntley, Illinois, and its 3,000th international store in Panama City, Panama, making
8,000 total stores for the system. In August 2006, the Domino's location
in Tallaght, Dublin, Ireland, became the first store in Domino's history to hit a turnover of $3
million (€2.35 million) per year. As of September 2006, Domino's has 8,200+ stores
worldwide, which totalled $1.4 billion in gross income.

An essential element of their growth strategy was delivering better value proposition to this
most important audience. The launch of ‘All New Domino’s’ – a comprehensive upgrade of
our pizza quality – was among the most important development in this regard. The rollout of
‘Every Day Value’ for Domino’s Pizza, where customers are offered a standard affordable
price every day was another significant step towards enhancing the customer experience.
Migrating successfully to the new tax regime, they also passed on the GST benefits to their
customers.

Their laser-sharp focus on cost rationalisation and productivity led them to assess, simplify and
streamline our operations even further. Work force optimisation, closing down of non-viable
Restaurants and implementation of advanced technology in their business enabled us to realise

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significant financial benefits. Investments in technology infrastructure continue to be central
to their commitment to delivering seamless customer experience and robust growth. A Digital
Team was created in the year to spearhead the digital thrust of the Company. By upgrading
digital assets, driving data analytics, developing Restaurant technology and strengthening
digital marketing, they will leverage the potential of digital technology to transform every
dimension of our business.

Product & Innovation:

DPI constantly innovates to meet evolving customer expectations. This year too, new products
were launched with quality and taste being key differentiators.

All New Domino’s: An all-round, comprehensive upgrade of quality was made across all
pizzas. The new pizzas offer a softer and tastier crust, new tomato sauce made from imported
Californian tomatoes, and more cheese and toppings. The packaging was revamped to an
attractive blue and white colour to highlight the changes. The upgrade in core pizza saw
acceptance by both new and existing customers. The launch of All New Domino’s was
supported by an aggressive 360-degree marketing campaign with the tagline ‘Aapne Kaha,
Humne Kiya’. The positioning was chosen to reiterate that the new product upgrade was an
outcome of insights gained from customer feedback, market research and Restaurant
observations.

Speciality Chicken Range: Further diversifying its side product offerings, three new formats
of chicken products were launched with international flavours: Roasted Chicken Wings in Peri-
Peri Seasoning & Classic Hot Sauce; Boneless Chicken Wings in Peri-Peri & Lemon Pepper
Seasoning; and Chicken Meatballs in Peri-Peri Seasoning & Sriracha Sauce. The range
appealed to nonvegetarian consumers and has received good feedback.

Paneer Makhani Pizza: The pizza is topped with veggies and paneer on a Makhani sauce,
giving customers, especially vegetarians, a pizza experience in a distinct local flavour. The new
offering has received a favourable customer response.

Chicken Tikka Pizza: The pizza is designed to deliver the delectable indian taste with a new
chicken tikka topping on a Makhani sauce base. This is part of our core menu and is available
across 3 sizes and crust formats. The new offering has received a favourable customer response
and is among the most popular no vegetarian pizzas within one year of its launch.

Value for Money : The DPI positioning is that of high-quality products being offered at value-
for-money prices. Initiatives were taken during the year to reinforce this.

Every Day Value: A new approach was rolled out in the form of ‘Every Day Value’, where
customers are offered a standard affordable price every day instead of deep discounts on select
days. From April 2017, under Every Day Value, two medium sized Pizzas are available from
199 each. This sustainable way of providing value for money has improved consumption
frequency, as reflected in high-transaction order growth. Following this success, the scheme
was extended to regular sized pizzas from March 2018. Customers can now buy two regular
pizzas at ` 99 each. This attractive pricing is expected to provide greater value for customers.
A marketing campaign was launched across television, digital, press and radio platforms to
drive DPI’s ‘Every Day Value’ proposition. The commercial with the tagline ‘Jab Dil Boley,
Domino’s’ drove home the message that ‘Any Day is Value Day’ when celebrating with
Domino’s Pizza. DPI’s marketing is timed with Indian cricket matches, music shows like

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‘Voice of India’ and TV reality shows, along with special and festive occasions. The marketing
campaigns connected deeply with customers.

Super Value Menu in small cities: A super value menu, with select items from the DPI menu
offered at low price points, starting @` 49, was launched in small cities. This has strengthened
customer engagement in small towns.

Passing of GST Benefits: The Company ensured that all benefits from reduction in GST were
passed on to the customers immediately. A calibrated price increase on some of the products
was taken, to partially cover both the input credit loss on account of rate cut from 18% to 5%
and normal inflation. Reduction in effective prices for customers on account of GST was
communicated aggressively through advertising.

Customer Experience: Several measures were taken by DPI for enhancing customer
experience, both functionally and aesthetically.

Late-night delivery: Matching pace with the changing lifestyle of customers, DPI launched
late-night delivery across multiple cities. As on March 31, 2018, this facility was available
across 7 Cities and 52 Restaurants. This new growth vector created positive brand association
and connect with younger audience.

Restaurant reimaging: DPI Restaurants are being reimaged to ensure that the ambience and
infrastructure are in sync with contemporary preferences. For delivering on this objective, DPI
has tied up with a leading global design firm.

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Centralised call centre: DPI has now put in place a centralised call centre for enhancing the
telephonic order experience. The call centre receives the order and transfers the order to the
concerned Restaurant instead of customers having to call up the Restaurant in their locality.
This enables the Restaurant team to provide uninterrupted service to guests visiting the
Restaurant. With this, both delivery as well as dine-in experiences have improved.

Domino’s-on-the-Go: DPI has extended its presence to Metro stations in select cities by
setting up ‘Domino’s on- the-Go’ outlets. This format offers a curated menu to people on the
move. The Company is an official IRCTC 14 Jubilant Food Works Limited (Indian Railway
Catering and Tourism Corporation) partner and is keen on expanding its services at railway
stations. DPI offerings are now available across 206 railway stations as against 134 in the
previous year.

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Mission and Vision:
Domino's vision is mainly emphasised on "A Company of exceptional people on a mission to
be the best pizza delivery company in the world!" They are committed to bringing fun,
happiness and convenience to lives of our consumers by delivering delicious pizzas to their
doorstep and their efforts are aimed at fulfilling this commitment towards a large and ever-
growing guest base.

Their short time mission is “sell more pizza, have more fun!”
They are planning to achieve that by following some values. They are
 Treat people as you would liked to be treated.
 Produce the best for less.
 Measure, manage and share what is important.
 Think big and grow.
 Incentivise what you want to change.
 Set the bar high, train, and never stop learning.
 Promote from within
 We are not ordinary, we are exceptional.

Life Cycle Stage:

Dominos entered in Indian market in the year 1995. They are catering in India for 23 years.
Whatever the products they have served in Indian Market are duly accepted across nation. They
have changed the fooding habit of gourmet people of this country. Dominos opened an avenue
in the restaurant sector in India. The service and commitment they are providing to the customer
is highly appreciated by the customers. Their main moto is to hold their customers by
maintaining their quality and taste which are the main parameters of restaurant and fooding
sector. Therefore, they are now became the household part of maximum family in India. From

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kids to veteran, all of them are well familiar with the brand “Dominos”. They have entered into
the Indian market at the correct time to make concrete base in this food industry. They have
the most market share in organised food retail sector across the nation. By this, we can conclude
that they are in maturity stage.

Complexity:
Dominos India has 1167 stores in 269 cities. Therefore, it is quite evident that it has high level
of complexity. They have first open their outlet at New Delhi near Connaught place. Over the
time, they have spread across the country and they have opened in all metro cities. They have
targeted mainly highly populated area such as office area and college area where they can get
young and middle aged people as their customer who can choose pizza as their tiffin or snacks.
Their prospect is to reach the profit maximization through customer satisfaction. The one of
the main reasons of their success in this industry are the construction and decoration of their
stores. They have open kitchen and flexible seating and heritage hall.

Centralization:
Dominos have high centralization. Chairperson takes all the decision that is taken by the higher
authority regarding policies and other top-level decisions and the Managing Directors at their
head office located in Noida further those decisions are communicated to the regional office
and then they are worked upon. In the regional office when they receive work they delegate it
to concerned people, as the people hired by the organisation are trained according to the roles
and responsibilities for which they have hired and they know are to be performed when they
receive a project. For example, if the regional office receives a task to promote and sell a
flavour that has been introduced by the company then all the people in that office coordinated
with each other and performed the task. The marketing people take care of the marketing the
product in their area: the sales people take care of their promoting and their product. The
people in the finance department take care of the finance part that is required to complete the
project.
The manager keeps his bird eye over all the task that are performed ion the office and the people
report to the manager regarding the progress and then the manager prepares a report of it
progress in his area and sends it to the Deputy General Manager.They have modified their
products according to the taste and preferences of the state.

Formalization:
Dominos have a high formalization in their organisational structure. They have the same
services throughout all the outlets. The interior decorations of every outlets are same mainly
the colour of interior. They have the high formalization in each sectors of their business like
cash management, order taking procedure, promotion, offer and ingredients and recipes. The
customer service is same. The types of pizzas, which are available in outlets, are same across
the country. The business strategies of dominos, which are highly monitored by the head office
and it applicable for all the outlets. The gesture and hospitality of the waiters are same in every
outlets. Uniform of the waiters are identical in looks.

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Strategic Objectives:
 Grow like-for-like sales driven predominantly by an increase in like for like order
count.
 Open new stores in existing and virgin territories.
 Improving marketing spend effectiveness.
 Increase incidence of sales from online and mobile.
 Improve commercial performance of online and mobile platforms.
 Innovate in digital to ensure the brand remains top of mind, places customers in control
of the ordering process and gives them confidence that their orders its on its way.
 They diversifying the product throughout the nation. They are now not only confined
in only pizzas but also they are concentrating various other dishes like Choco lava cake,
Garlic bread etc.
Even though Dominos is the market Leader with having the highest market share and they are
in their maturity stage but still they are spending a lot in their R&D and taking the advice of
customers to innovate new products and improve their services. Therefore, we can say they are
following the breadth innovation strategy to stay relevant in the market and to earn more
market, which will ultimately contribute more to their bottom-line.

Technology:
Technologies are the main ammunitions for this type of business to maintain their customer
satisfaction and maximize the profit. They have made the transition from a bricks- and- mortar
retailer to a genuine e-commerce retailer. They constantly strive to be at the cutting edge of
technological innovation, as demonstrated by their initial commitment to online ordering in the
1990s or the more recent development of their mobile app platforms. They are relentless in
their pursuit of using technology to make their customers lives that little bit smoother.

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They have created a Digital team to lead their own technology and digital initiatives. This team
will work on strengthening their Digital assets, driving Data mining and analytics, and
developing next generation technologies that improve the customer experience. Massive
changes in the backend are also being done to eliminate payment and network issues.
Recent technologies they are deploying in their business.
 SMS Ordering.
 IPad App. Android App. Offers App.
 Pizza Tracker. IPhone App. Apple Watch.
 Quick Ordering. Fresh Fast 10 Minute Delivery.
 On Time Cooking. Android Pay.
 Zero Click Ordering. Domino's Stickers for I message.
 Apple Pay
 Paypal Bill Share. Delivery Guarantee

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Environment:
 The environment of the Dominos are dynamic in nature. At this time, social media is
playing a vital role for all this type of business. If any customer have any bad experience
in outlets, there is a chance that they can share that experience in the social media,
which will be viral within a second. It have both pros and cons, it can enhance their
business and have the chance to degrade their brand name from that type of bad
experience. Nowadays, for the customer convenience this type of retail chain are
opening their social media account to get the feedbacks from their customers very
easily. From that, they can reshape their business and mend their faults. This type of
strategies help them to do the business flawlessly.
 From the above-mentioned discussion, we can conclude that the environment of
dominos is disturbed reactive because there are many competitors but large firms such
as Dominos and Pizza Hut are dominating the market. They require flexibility to
survive in this environment.

Conclusion:
Continuing to act on multiple fronts of innovation and product quality, value-for-money,
customer experience and technology, Domino’s remain focussed to deliver sustained and
profitable growth. They look to the future with confidence, as they believe they have the right
strategy and fundamentals in place.

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