I Have Chosen Dominos As A Case Study. Dominos: Order Qualifiers & Order Winners

I have chosen Dominos as a case study.
Dominos
Dominos is a business regarded as leading Pizza Delivery company. The Company has an operation
model and inimitable business that enable it to be a leader in fast food industry. Dominos Pizza has
effectively expanded from three outlets in the US to 9,350 stores in service in seventy countries since its
creation in early 1960s. The head quarter is in Michigan state, USA
The study evaluates how Dominos has been able to position itself as a leader in its market segment and
analyses the strengths and weakness in the companys existing strategy.
In early 2000, Pawan Bhatia (Bhatia), the CEO of Domino's Pizza India (Domino's) was a man in a hurry.
Ever since Bhatia took over as the CEO of Domino's in November 1999, he had been frantically
reworking the pizza chain's India strategy. Bhatia was planning to open 150 new outlets
From the Domino's Annual report, (2012), it is derived that the vision statement is achieved through
following strategic objectives:
I.
Competitive international growth as main target.
II.
Competitive menu expansion through a great delivery model (India - 30 min delivery).
III.
New innovations through company owned stores.
IV.
Focusing on knowledge management strategy to penetrate local market through master

franchises.
ORDER QUALIFIERS & ORDER WINNERS:

To meet selling quality standards, the basic standard for products are "order qualifiers" and when
consumers are won by making them purchase the product, then it is "Order winners". The criterions of
Domino's order qualifiers and order winning are explained in figure below.
Order Qualifiers for a

customer ordering take
away:
Convenient
Tasty
Quick
Cheap
Potential Order losers:

Inconsistent taste
Delay in delivery
Poor quality of food
Pricing at a premium
Order Winners for

Dominos:
Core competency on
Delivery Consistent quality
Delivered with no delays
Wide variety on menu
Tasty
As part of its expansion plans Domino's revamped its entire supply chain operations, from sourcing raw
materials to shipping them for processing at a central location to delivering it to the customer's.
DOMINOS SUPPLY CHAIN

1) Procurement of Raw Materials
Raw materials like wheat, baby corn, tomatoes and spices are got, out of which wheat was bought in
from Jalandhar and then sent to the commissaries in refrigerated trucks.
4 commissaries (Regional Centralized Facilities)
Delhi
Bangalore
Kolkata
Mumbai
2) Distribution
Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated
trucks.
Logistics requirement for sending frozen foods, at a temperature of 18C and of refrigerated
trucks in which food is sent at a temperature range of between 1 to 4C.
The operation function's efficiencies are improved by means of JIT and supply chain
management (SCM). At Dominos, through this approach supplies are made to master
franchises which gives certain advantages, such as consistent quality is maintained through
centralized sourcing, and enable Dominos to use effectively the buying power to reduce the
cost doe to fluctuation in the prices. But, stores at times faces an issue of over stock of dough,
packing boxes, etc. exceeding the regular demand.
3) Retail Outlets
Regular stores
Super stores: High traffic, More counters
Express stores: those where people were expected to walk in and order rather than ask
for home delivery.
THE CONVERSION/ TRANSFORMATION PROCESS:

In the entire value chain, customers are present as visible and invisible conversions take place. A
concept of Open Kitchen and new design for customers to wait and experience while order is
placed are part of marketing intelligence that is used in operational strategies at Dominos (Alfs,
2013
The Conversion Process
TRANSFORMATION & CONVERSION PROCESS IN TERMS OF 4Vs:

At Dominos, simultaneously large volume is produced at low cost:
Volume: High volume Trained staff following same standard procedures produces in massive
quantity as it is efficient way to produce through special equipment leading to continuous
operations (Sykes and Crawford, 2012, P. 3).
Variety: The customers have a choice to select their own topping or vise versa, even more
ingredients and items are available at stores (Sykes and Crawford, 2012, P. 3). Moreover, it is
evident that Dominos has redesigned operational strategies on the basis of customer feedback
which explains high variety at stores.
Variation in demand: According to Tripathy (2011), Dominos has low demand in day time but
demand variation is high at lunch and dinner time.
Degree of visibility: As per Tripathy (2011), in the production process, open kitchen when
customer comes for take away are highly visible but delivery at door step, the visibility of
production process is low (Cited from Bach, 2013).
In the assembly line pizza production process, Dominos has high flexibility at batch processing.
Batch manufacturing process is used by Dominos to have consistency as well flexibility in the
Kitchen assembly line processing. Domino calls "make line" to its assembly line. This make line
methodology also facilitate Dominos to produce higher volume in rush and peak hours.
THE PRODUCTION PROCESS:

Domino's production process is structured, from placement of order to customer's accepting it.
Firstly, the order is placed through walk in, internet, or phone. After that order is placed in PULSE
system to increase functioning efficiency. The order pop up on screen. Then, member of assembly
line pick order and applies ingredient. In the make line, another team member add topping and
place it in oven. Then, third member remove it from oven and place it in box. It is ready for
delivery and last step is dispatched and handed to awaiting customers (Guinness, 2012.
Packing
SalesDelivery/collection
Cooking
Assembly Line
Order
Placement
Dominos production process
DEMAND FORCASTING:
In order to forecast demand planning and inventory management, "prescient" distribution
planning is undertaken. Through this forecasting, demands are being matched by Dominos. This
also facilitates in increasing the overall supply chain efficiency in lean operations. Moreover, it
enables firms to check the inventory stock distribution time, as it optimizes the orders on the
basis of distribution center, as by undertaking minimum quantity material required for
production. The entire forecasting and inventory management is done through ERP- Enterprise
Resource
Planning.
THE VALUE CHAIN:

Domino design and develop its product after considering consumer's needs. The take away
outlets, high variety at a reasonable price with quality suiting local palette are consumer's need
driving the whole value chain. In entire value chain, prime focus of dominos has been on
consumers needs and resulted in strengthening its market position.
High variety in taste, flexibility in operations, qualified staff to facilitate customers, and lean
stores are driven from global operational model and strong value chain. Domino has used
technology at its best to promote itself and improve customer's experiences. For instance,
strong distribution from television and online tracking of orders from internet. The needs and
demands of customers are met by Dominos through combining operational strategy with the
company level strategy that has also improved its performance by making it more dependable
and flexible.
SERVICE BLUEPRINT OF DOMINOS:
PIZZA MAKING PROCESS
CYCLE TIME
Cycle time refers to the time it takes to accomplish one cycle of a process (e.g. the time from
when a customer places an order for Pizza to the time that it is delivered)
Dominos pizza changed the rules It was one of the true innovators. Earlier pizzas might be
delivered anywhere from 20 minutes to 2 hours. From a competitive perspective, customers
chose a Pizza over taste and price, and not delivery. Dominos saw delivery as a competitive
advantage, and the rest is history! The importance of reducing cycle times is very important and
Dominos mastered it with 30 min delivery.
CONCLUSION:
Its crucial to build a low-cost supply chain operation which takes costs out of the system and
in turn gives us greater pricing flexibility in the marketplace.
DOMINOS CRAZY TIMES WITH CUSTOMERS ON SOCIAL MEDIA (BRAND BUILDING)

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I have chosen Dominos as a case study.

Competitive international growth as main target.

New innovations through company owned stores.

Focusing on knowledge management strategy to penetrate local market through master

ORDER QUALIFIERS & ORDER WINNERS:

Order Qualifiers for a

Potential Order losers:

Order Winners for

DOMINOS SUPPLY CHAIN

THE CONVERSION/ TRANSFORMATION PROCESS:

The Conversion Process

TRANSFORMATION & CONVERSION PROCESS IN TERMS OF 4Vs:

THE PRODUCTION PROCESS:

Dominos production process

THE VALUE CHAIN:

PIZZA MAKING PROCESS

DOMINOS CRAZY TIMES WITH CUSTOMERS ON SOCIAL MEDIA (BRAND BUILDING)

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