Business Daily from THE HINDU group of publications
Wednesday, Apr 09, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Apr 09, 2008 ePaper | Mobile/PDA Version |
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Marketing
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Strategy Domino’s Pizza plans Rs 70-crore expansion 
Enhancing presence: A Domino’s Pizza outlet in Chennai. Meera Mohanty New Delhi, April 8 The Domino’s Pizza delivery man will be knocking on more doors of fast food lovers in towns such as Panipat, Patiala, Karnal and Mysore. The pizza chain is spending Rs 70 crore to increase presence in another 10 -15 new cities. The chain expects to have 250 outlets by the end of the year, against the existing 185. Building capacityAccording to Mr Dev Amritesh, Vice-President, Marketing, Domino’s Pizza, an additional Rs 15 crore will be spent in building capacity, commissaries and strengthening supply chain to support its expansion plans. The fast food chain is currently present in 34 cities. The chain’s 12-year-old business in India was skewed towards the metros for the first 7-8 years, with price points fixed for those with deeper pockets or higher up on the socio economic scale. But Domino’s has, in the last four years, widened its consumer base by extending the reach and making price points more affordable for those belonging to SEC B and C. “We have, for example, recently launched a value deal, a fun meal for four that works out to Rs 45 per single serve pizza. It’s an interesting and relevant price point for consumers of lower SECs, or SEC B and C,” said Mr Amritesh. Such consumers contribute almost 50 per cent of Domino’s revenues today. The company has also announced a new butter flavoured with special herbs ‘Sicilian Wheat Treat Pizza’. It’s the first time wheat is being used in an Indian pizzeria chain, according to Domino’s. However, atta might be used as a bait for the health conscious elsewhere, at Domino’s they are introducing it for its other virtues, primarily the familiarity of the flour and the preference that Indians have for the taste. The chain is also likely to spend about Rs 20-25 crore this year on advertising (80 per cent of which will be reserved for TV commercials), of which Rs 5 crore is to be spent on selling the new Sicilian Wheat Treat Pizza. Domino’s has recorded a growth of 55 per cent in revenues, said Mr Amritesh, adding that the chain hoped to maintain that growth this year too, despite a significant increase in input cost. More Stories on : Strategy | Hotels | Retailing
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