Key Takeaways:
- It is surprising that more than half of Domino’s Pizza sales in Q4 of 2020 came from the Domino’s app, with only a quarter of it from Zomato and Swiggy.
- Domino’s in India has a market share of more than 70 percent.
- Domino’s is continuously opening new locations since additional stores let the company serve a more significant number of customers, which leads to a rise in sales and thus profitability.
- The renowned 30-minute maximum delivery time plan has worked wonderfully in India’s traffic, as 99 percent of Domino’s deliveries are completed inside the time frame.
- Domino’s conquers the Indian market by incorporating regional flavours. This is the most effective technique to reach a regional audience. In India, Domino’s serves pizzas with regional flavors such as paneer paratha and paneer makhani.
Introduction
Two well-known food delivery companies captured the whole Indian market from a metro city to a small town in India. Presently Zomato and Swiggy are in the market to serve you food at your home. These two platforms have become household names, and It also controls India’s food delivery space.
Over the years, avoiding these platforms has become unavoidable for restaurants in India. We have a question here, why is it so? Because Zomato and Swiggy are aggregators. They help restaurants to get discovered through their apps. The detail of restaurants present on Zomato and Swiggy doesn’t need to be delivered food through their app, but they are still there; people can see the details like the address of the restaurants and contact details as well.
Restaurants not partnering with these aggregators are way more costly in their business and visibility. Therefore, they are forced to list themselves on these platforms.
But when we think of Domino’s Pizza, it’s not the same. Before the era of Zomato and Swiggy, Domino’s was more focused on delivering pizza by themselves. Then what about today? Are they still planning to continue this?
History
In the 21st century, Domino’s is one of the most incredible companies. At the same time, most of us know Domino’s Pizza only because it’s one of the best marketing strategies where they say 30 minutes delivery or free pizza. But when we are talking about Domino’s, there are some surprising facts about it. The taste of pizzas we are now experiencing in Domino’s is far better than earlier. In 2009, the brand value of Domino’s was entirely down the drain. The sales of pizzas in the store were dropping drastically, and Domino’s was losing its number in the consumer brand preference survey. These things made it clear that Domino’s was failing real bad. Due to this, the stock was selling at just $6 per share.
It was not the end, and they found out that there were multiple blog posts saying how bad their pizzas were; some customers noted that the pizza crust tasted like cardboard, while others said the sauce tasted like ketchup.
In this situation, a typical company would engage in huge PR, ensuring that all negative reviews are overshadowed. Then, they would make a few tweaks in the background and possibly even give out free pizzas for the favorable feedback. Or, in the worst case, they would just ignore this altogether, saying that, after all, in 2009, what a blog can affect a billion-dollar company.
However, their method was different, and Domino’s chose the most lethal promotional weapon that no one ever dared to employ, especially when the firm was failing. And this weapon was brutal honesty.
J. Patrick Doyle, the company’s CEO at the time, accepted full responsibility for what was happening and publicly recognized that they were not doing a good job. But for the next 18 months, every chef of Domino’s worked a day in and day out just to try every possible combination of ingredients to make the best pizzas they possibly could, and they changed their pizzas from top to bottom.
And in all this process of experimentation, they also realized that in the race to provide customers with 30 minutes delivery, the company’s supply chain was somehow compromised.
‘Oh yes, we did’ campaign was launched by Domino’s. After that, they thought of documenting their entire journey of how they went from making terrible pizzas to making the best pizzas in the United States.
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Popularity
It is surprising that more than half of Domino’s sales in Q4 of 2020 came from the Domino’s app, with only a quarter of it from Zomato and Swiggy combined. Domino’s app surged past Zomato and Swiggy, both in downloads and sessions in July 2020. Maybe it looks small, but this is no small feat for a standalone food delivery franchise app.
30 Minutes delivery or free pizza
Domino’s delivers pizza with a guarantee of delivery within 30 minutes from when an order is placed. Domino’s uses its delivery personnel for delivery, even for orders placed on Zomato and Swiggy, unlike other franchises like McDonald’s and Burger King.
Since it takes care of the delivery, it pays lower commission rates to these aggregators. This, in return, gives them the liberty to offer more discounts. Whenever we think of pizza, we are sure that there is a brand that can stop my pizza craving within 30 minutes, Domino’s. They are providing deliveries within 30 minutes, a kind of service impacting the customer’s mind as several reports claim that more than 99% of their deliveries are within the given time frame.
Domino’s in India has a market share of more than 70 percent. One of the interesting facts is that they are even testing to deliver pizza in 20 minutes or less. This USP helps Domino’s dominate its competitors like pizza hut and other local Indian pizza stores. To make the delivery procedure easier (and to remain ahead of the competition), Dominos invested in two digital-first innovations: delivery by autonomous car and delivery by electric bike. As a result of these advancements, digital sales in 2019 accounted for “more than half of all global retail sales.”
Domino's a pizza company or a tech company?
There are many reasons why this type of question arises as Domino’s Pizza is winning the customer’s taste buds and positioning itself in the customer’s minds as the best pizza brand. But it’s not only about the taste that made it so big.
From chatbots to drones and its newly extended driverless delivery trucks, the world’s largest pizza business has been increasing its investments in technologies to provide a more seamless experience for its consumers over the past decade, and the internal push for innovation only continues. Two main things that helped Domino’s become the king in the Indian market are their fast delivery of pizzas and their sophisticated technology, which allows us to order the best pizza for ourselves.
Domino's very much early started the tech game
The Domino’s franchise started to allow ordering on its website in early 2012 when the food tech space was nascent. Swiggy was not born yet.
Domino’s started Optimizing its app for downloads as the older version of Domino’s app was more than 100 MB after that, Domino’s made an app that didn’t take up too much space on our phones. The new version app is currently less than 11 MB. this helped Domino’s improve its rating on the Google Play store app.
Delivery in pandemic
- As Dominos never misses any chance to surprise its customer. A car named Nuro R2 by Ford, which travels at a speed of 25 miles per hour was used by Dominos to deliver pizza.
- Customers who order pizza must enter a code provided to them at the delivery time into the vehicle’s screen outside their house or delivery area.
- This was not the first time Domino’s tried to use this kind of technology for their delivery. In fact, in 2017 itself, date tested driverless deliveries. But at that time, that experiment allowed a safe driver to ride along, but when we talk about Nuro, this vehicle has no space for humans.
- If we talk about the future, delivery with driverless vehicles will be an affordable option for the company to deliver pizza.
- While delivery on bikes solved many problems of delivery.
- For Domino’s, e-bikes were a game-changer, and they’ve been delivering with them for the past three years. They’ve been able to save money, improve service, hire more people, and keep a happy workforce.”
- Customers may track their Nuro or e-bike delivery via the Domino’s app, just like any other meal delivery service.
- A Domino’s subsidiary in Australia and New Zealand began using AI cameras that image and assess each pizza on multiple parameters to control quality. For the past few years, Auckland, New Zealand, has also been home to pizza delivery via drone.
- Since a few years back, the company’s voice-recognition system, “Dom,” has been automating telephone orders at approximately 40 stores.
Order placed by zero-click
With developments such as the launch of a zero-click ordering application and a sponsored Instagram game that leads users to a promotional coupon, Domino’s Pizza is dramatically lifting the bar for fast service restaurant businesses innovating in mobile.
Customers may download the new Zero Click app and link it to their current Pizza Profile, allowing them to instantly re-order favourite meals each time the app is accessed, providing further convenience to mobile ordering.
Furthermore, Domino’s is making headlines with its four-stage Instagram game, which allows gamers to gather one letter from each level and combine them to spell out a discount code for 20% off a future purchase.
How zero-click worked
Customers can begin using the Easy Order feature by downloading the Zero Click app for Android or iOS smartphones. After downloading the app, customers must connect it to their current Domino’s Pizza Profile, which saves all their favorite orders.
When the Zero Click app is accessed on a smartphone, it will instantly re-order the pizza without requiring consumers to tap, swipe, or click anything. The software will display a 10-second countdown until the order is processed, allowing users ample time to cancel it if they make a mistake.
With so many marketers aiming to shorten the mobile ordering experience as much as possible – partly to encourage impulse purchases – Domino’s plan will almost certainly send shockwaves across the QSR business.
Other fast-food companies may want to jump on the zero-click ordering bandwagon while it is still a novelty in the eyes of customers, as this technique has the potential to attract a slew of new admirers.
Domino’s accepts pizza orders by emoji, text, Twitter, Apple Watch, and smart TV, among other channels.
Domino’s claims that innovations like the pizza tracker and Dom came about because IT is the firm’s largest single department, management is staffed with digital futurists, and the company is always seeking new ideas.
“Outside of these four walls, there are many creative people. What kinds of ideas are they, and how can we potentially encourage more of them?” Garcia claims.
Delivering where you are
While mobile technology frequently promises consumers what they want, where they want it, and when they want it, Domino’s noticed that it was not always serving customers where they were. What about pizza parties in the park, on a children’s soccer field, or the beach? Customers are present in these venues, but there is no convenient way to make a purchase, even with the convenience of ordering via mobile devices.
In response, Domino’s launched the Hotspots initiative in April 2018. Hot spots are the thousands of areas away from home and work where pizza delivery was difficult or impossible. Customers can make prepaid orders on the company’s website or mobile app and receive text alerts about their order status through the service, which is exclusively available online.
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Conclusion
In the food industry, quick service is critical. With India’s changing lifestyles, people seek eateries that serve quickly and follow a good delivery system. To that end, Domino’s is continuously opening new locations since additional stores let the company serve a more significant number of customers, which leads to a rise in sales and thus profitability.
The renowned 30-minute maximum delivery time plan has worked wonderfully in India’s traffic, as 99 percent of Domino’s deliveries are completed inside the time frame.
Domino’s conquers the Indian market by incorporating regional flavors. This is the most effective technique to reach a regional audience. In India, Domino’s serves pizzas with regional flavors such as paneer paratha and paneer makhani.
They also considered cost in India, as their pizza starts at Rs 59. As a result, they are also reasonably priced. They grasped customer psychology in relation to the product value.
Shubham Kumar
Content writer
Raj Rane
Graphic designer
Swathi
Editor
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