Domino’s Pizza increases its focus on digital

13 Jul,2012

By Tuhina Anand

 

Harneet Singh Rajpal

Domino’s Pizza has increased its spends on the digital medium and this year, it will be spending 6-7 per cent on digital, out of its total marketing budget as opposed to last year where the spend was 3.5-4 percent.

 

Domino’s Pizza online ordering launched last year has been a runaway success, while it has launched mobile application just month and a half back, which though early days, has seen a traction of 1.5 lakh visits in a short span of time.

 

Harneet Singh Rajpal, Vice President-Marketing, Domino’s Pizza India, talking about their digital foray said: “It’s more to do with closing the loop by being on the digital medium. Quite often the decision to order a pizza is instantaneous. Hence we wanted to facilitate the ordering which could be done by clicking on the ad and placing an order in few simple steps. In fact, digital has become an effective channel for us in driving our business and getting consumers instantly, thus able to measure our return on investments too.”

 

While digital medium is being used by Domino’s, which Mr Rajpal points works well on weekdays, like catching people ordering at work, the television works well for them during the weekends.

 

Television has also helped them in building their brand in Tier II and Tier III cities which is equally important for the company as the metros for growth. In fact, Domino’s has presence in 105 cities and has 465 stores which, as Mr Rajpal puts, makes them the largest Quick Service Restaurant (QSR) player in India which has footprints beyond the metros.

 

In fact, he points that, inIndia, in the QSR there is a huge potential to grow even in metros, despite competition as metros still have a huge degree of under-penetration.

 

Like is the trend now with the QSR players namely, its competition – including McDonalds, KFC, Pizza Hut – Domino’s too has been focusing on introducing new products to woo customers.

 

It has recently launched the stuffed garlic bread and the product is even being supported by a TVC. In April this year, it re-launched its Pizza Mania and one has seen a constant effort to rev up its menu. It has also been focusing on side dishes and that, as Mr Rajpal said, is to offer to its customers a complete meal experience.

 

Mr Rajpal explained: “In the QSR category, the food fatigue is very high and people get bored easily with the offering, especially in India, the demand from consumers for new taste is much higher than around the world. The thinking behind the constant launch of new products is to give consumers new reasons to come to us and taste new products. This has been our growth strategy, which not only helps us to get new customers but also hold on to the existing ones. Our R&D team is constantly working to come out with unique and tasty offerings for our consumers.”

 

Domino’s has seen a growth of 30 per cent in the last fiscal and has seen 20 per cent plus CAGR in last five years at the store level.

 

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