How Domino’s Won India’s Pizza Wars

Summary

Domino's has achieved immense success in India since its 1995 debut, expanding rapidly with over 1300 stores across 282 cities. The brand’s ability to localize its menu, offer fast delivery, and embrace technology, including a mobile app and online ordering, has given it a major edge over competitors like Pizza Hut and Papa John’s. Additionally, Domino's strategic presence in rural areas and its adaptation to Indian tastes have bolstered its dominance in the market. With India being its second-largest market, Domino’s continues to thrive, benefiting from the growing middle class and changing food culture.

Takeaways

• 😀 Domino's entered India in 1995 and has grown rapidly, with over 1300 stores in 282 cities, capturing over 70% market share.
• 😀 Domino's is testing delivery in 20 minutes or less, which has put pressure on competitors like Pizza Hut and Papa John's.
• 😀 Domino's success in India is largely due to fast delivery and sophisticated ordering technology.
• 😀 Domino's in India has made significant efforts to prevent the spread of COVID-19, including zero-contact delivery and rigorous employee health protocols.
• 😀 The pizza market in India is valued at over $1.5 billion, and Domino's is the second-largest pizza market after the U.S.
• 😀 India’s millennial population, which accounts for about two-thirds of the country, is a major contributor to Domino's growth due to their preference for dining out and spending on food.
• 😀 Domino's has been highly successful in expanding beyond major cities, reaching rural areas and smaller towns, unlike its competitors.
• 😀 Domino's has localized its menu for the Indian market, offering options like chicken tikka and spicy banana pizza for regional preferences.
• 😀 Jubilant FoodWorks, Domino's franchisee in India, has seen continuous growth with double-digit increases in sales for nearly 14 years, with pizza making up 78% of its revenue.
• 😀 Domino's has made technology a key part of its strategy, launching mobile and online ordering early, with nearly 30 million downloads of its app as of 2020.
• 😀 Domino's has set itself apart from Pizza Hut by offering affordable prices, faster delivery, and better accessibility, while Pizza Hut focuses more on dining in.

Q & A

When did Domino's enter the Indian market?

Domino's entered the Indian market in 1995.

How many Domino's stores are there in India as of December 2019?

As of December 31, 2019, Domino's had 1,325 stores across 282 cities in India.

What is Domino's market share in the Indian pizza market?

Domino's holds a market share of over 70% in the Indian pizza market.

How has Domino's localized its product offerings in India?

Domino's has localized its menu by incorporating ingredients and dishes tailored to Indian tastes, such as chicken tikka and spicy banana pizza, and adjusting recipes based on regional preferences.

What technological advantage has Domino's utilized in India?

Domino's was the first food service company to launch online and mobile ordering in India, and by 2019, 75% of its delivery sales came from online orders.

How has Domino's expanded beyond larger cities in India?

Domino's has strategically expanded to smaller cities and rural areas, allowing it to establish a broad presence across India, in contrast to its competitors like Pizza Hut and Papa John's.

What makes Domino's pricing strategy effective in India?

Domino's offers more affordable pricing compared to Pizza Hut, which helps attract a wider customer base, especially among the growing middle class in India.

Why did Papa John's struggle to compete with Domino's in India?

Papa John's struggled to compete due to its higher prices and a focus on dine-in services, which limited its appeal in a market that favors fast, affordable delivery options like those offered by Domino's.

How did Domino's handle the COVID-19 pandemic in India?

During the COVID-19 pandemic, Domino's in India continued operations with safety measures such as zero-contact delivery, employee health checks, and sanitization protocols, ensuring customer safety.

What role does India's millennial population play in Domino's success?

India's large millennial population, which embraces dining out, technology, and new food experiences, has been a key driver of Domino's success, as millennials make up two-thirds of the population and spend significantly on restaurant visits.