Domino's Pizza India, promoted by Shyam and Hari Bhartia of the Jubilant Organosys Group (formally known as the Vam Organic Group), has an aggressive marketing strategy in place for this summer. To begin with, the pizza major has launched a new summer special offer, which involves a marketing spend of Rs 2.5 crore, supported by a major advertising campaign and a new TVC. The new campaign with coke promotion is linked with Domino's 30-minute proposition.
"With our '30 minutes or free delivery' promise introduced last year, we have witnessed a growth of 40 per cent in sales, while we have also given away 60,000 free pizzas. Looking at the earlier success of the summer special offer, we decided to reintroduce it. We are sure that our new marketing efforts would further strengthen our leadership in the Pizza delivery segment,"said Rakshit Hargave, Chief of Marketing, Domino's Pizza India Limited.
The new TVC featuring Anupam Kher reinstates Domino's promise of delivering fresh Pizzas in 30 minutes or else free. The campaign is conceptualised by Contract Advertising and Dungarpur films produce the TVC.
"Paresh Rawal was doing a wonderful job but we thought in the new creative, Anupam will be best suited. Target for pizzas is anywhere between the age of 4 to 80. But the target group for our communication would be in the age bracket of 18 to 35 years," added Hargave.
Talking about the overall marketing spends, he said, "The total would be nearly Rs 20 crore. Our advertising spends include the discounts that we offer in the market, which would be close to Rs10 crore. Over and above that, we spend about 10 per cent of our turnover on print, press and television."
According to Hargave, branded pizza market stands anywhere between Rs 275 to Rs 325 crore. "We have close to 60 per cent share of the delivery market. But if you look at the total market, that is delivery plus dining plus takeaway, we have a 40 per cent market share."
Positioned as pizza delivery experts, Dominos has a strong presence in India with 91 stores in 27 cities and plans to open 20 new stores this year. "We are planning to expand at the existing locations. We are also evaluating franchising as an idea and if that takes off, we will open more than 20 stores this year itself. We grew by 40 per cent over last year in 2004-05 and we plan to grow about another 40 per cent in the coming year."
According to Hargave the fast food market in India is growing at about 20 per cent per annum. Competition is there not among fast food companies but also with packaged food. They key issue however is, within the sphere of the spending power that the consumer has, how strongly is your brand positioned and for what service it stands.
With new entrants in the segment and with the current players reinforcing their strategies, the competition in the category is certainly hotting up.