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\nWhy the 30 min or free guarantee was the foundation of Domino’s Indian business:<\/u><\/strong><\/p>\n
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<\/p>\n While Domino’s had this guarantee in other markets, their Indian business was entirely built off this premise.\u00a0As Ajay Kaul, CEO of Jubilant Foodworks, the company that holds Domino\u2019s franchise in India, says, \u201cIn any other culture, it may not have created as much noise.\u201d [1]<\/p>\n Before Domino’s, the concept of food delivery was not mainstream – Domino’s literally created the market for food delivery in India. The Indian consumer is extremely demanding and price conscious given the low level of disposable income. The 30 min or free guarantee did 2 things:<\/p>\n The guarantee worked wonders. India is now Domino\u2019s second largest market outside the US [2]. The top 10 stores in the world by the number of pizzas sold in a year are from India – and they’re all from Domino’s. [3] 1. Process standardization:<\/u><\/p>\n As an order comes in, it is flashed on the screen.<\/p>\n 2. Outlet location:<\/u><\/p>\n Site selection for outlets involves scouting for locations with easy access to the largest number of buildings within 10 minutes.\u00a0Mock runs are done on motorbikes during peak traffic to double down on the location. The company owns motorbikes, which are able to navigate faster than a car during peak traffic on cluttered Indian roads. Each bike is well oiled and in great condition.\u00a0The delivery boys are hired on both full time and part time basis. The part time employees are assigned to manage additional demand during peak hours.<\/p>\n 4. Localization:<\/u><\/p>\n Riders are required to know every street, pothole, traffic light, choke point, construction site and police roadblock in their sectors of fast-changing, densely populated cities.<\/p>\n A deliveryman and his \u00admanager plot out the route to be taken for each delivery. In areas without proper maps, district managers scout the streets and create hand-drawn maps to prepare for deliveries.<\/p>\n <\/p>\n 5. Technology: <\/u><\/p>\n Online ordering – Online ordering via website and apps account for about 30% (growing rapidly) of the orders [4] . Online ordering ensures that there is no discrepancy in the order placed by the customer, as often happens on the phone.<\/p>\n Innovative technologies – Domino\u2019s is the first mover in using innovative technologies such as Zippr, which provides customers which digital, smart addresses that are easier to track. [5]<\/p>\n GPS tracking – The frozen trucks that carry supplies to stores are enabled with GPS trackers, which enables area logistics managers to access the temperature status and ensure that the supplies don’t go bad.\u00a0[3]<\/p>\n 6. Product design, limited SKUs:<\/u><\/p>\n The menu has limited number of SKUs to ensure that the variability and time involved in making the pizza is reduced. Twice a year, the \u201cnew product development\u201d team engages in a exercise called \u201ccustomer to customer\u201d to gauge what new products will work for customers and which products have been underperforming. This ensures a novelty factor of products.<\/p>\n The delivery boys are called SDPs (Safe delivery persons). They are mandated to maintain a maximum speed of 40-45 km\/h.\u00a0In order to ensure that the delivery guarantee is manageable, it is not offered on orders greater than INR 300 ($15 in PPP terms) or bulk orders.<\/p>\n <\/p>\n <\/p>\n The operating and business models of Domino\u2019s India have complemented each other phenomenally. The company holds a 62% share in the organized pizza market and 70% share in the pizza delivery segment countrywide [3].<\/p>\n <\/p>\n References:<\/strong><\/p>\n http:\/\/www.ft.com\/cms\/s\/2\/42134ce2-5f24-11e2-8250-00144feab49a.html#axzz3trJF6sqz<\/a><\/p>\n http:\/\/www.business-standard.com\/article\/companies\/india-is-domino-s-2nd-largest-market-after-us-says-jubilant-115081200024_1.html<\/a><\/p>\n http:\/\/articles.economictimes.indiatimes.com\/2013-03-22\/news\/37904259_1_domino-s-pizza-india-pizza-maker-pizza-store<\/a><\/p>\n http:\/\/www.business-standard.com\/article\/companies\/will-food-throw-up-the-next-flipkart-115041301128_1.html<\/a><\/p>\n http:\/\/qz.com\/554854\/it-shouldnt-be-this-hard-to-order-a-pizza-soon-in-india-it-wont-be\/<\/a><\/p>\n http:\/\/www.fastcompany.com\/3039746\/how-dominos-won-india<\/a><\/p>\n![\"UQIu896\"](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/UQIu896.png\")
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\nBusiness model:
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\n<\/u>Domino\u2019s India caters to the consumer\u2019s need for \u201cgetting food delivered to their homes quickly and reliably\u201d.\u00a0They are able to charge a premium price for the pizza by ensuring quick delivery guarantee \u2013 something that no one else had been able to do.
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\n<\/u>Note: While Domino’s also offers dine in at their outlets, the business model is built off the delivery business, which comprises about 50% of total revenues [3]. The dine in business saw\u00a0traction only after the brand built recognition as a result of the delivery business.<\/p>\n
\nOperating model:
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\nThe entire operating model of Domino’s in India is designed to deliver in 30 minutes with a success rate of 99.6%.<\/strong> [3].\u00a0It is intriguing how they managed to pull this off given the lack of infrastructure in India.<\/p>\n\n
\nThis leaves a buffer of 7 min for unforeseen traffic<\/li>\n<\/ul>\n<\/a><\/p>\n
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\n3. Facilities and human capital:<\/u><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n
\n7. Safety and contingency:<\/u><\/p>\n