Global President and CEO, Domino’s Pizza,8 talks to b&e’s angshuman paul about the various peculiarities that personify the company’s India operations
B&E: Domino’s Pizza has been into this country for more than a decade. The initial years were slow growth years. Has there been any change in the growth momentum after that?
Doyle: Of course during the initial years, like any other MNC, we too had teething problems and it took us time to understand the Indian market. But that kind of a situation lasted just for two years after we entered India in 1997. Since the early 2000s, we have grown at a very fast rate.
B&E: So what potential do you see in the Indian market? Especially in terms of contribution to the global turnover of the company, where do you want to take the Indian venture?
Doyle: During the last two to three years, India has actually become the fastest growing market for us. India is the most important Asian market for us and Domino’s sees a huge opportunity in India for pizza and pasta. And in terms of contribution to the global turnover of the company, India is amongst the top 10 earners for Domino’s. Currently, India contributes to around 1.5-2% of Domino’s annual global sales – we expect to take it further to a double digit figure. By 2014, we expect India to be among the top five earners – and our concrete plans to achieve this goal are in action.
B&E: The quick service restaurant (QSR) market in India is growing at 25% by CII estimates, and categorically in pizzas, apparently 25,000 pizzas are sold per day in the various corners of the country. Where does Domino’s stand in this? And what strategy are you implementing to cash in on this fiercely growing market?
Doyle: We currently enjoy the leadership position in India in the home delivery segment and we’ve always believed in enhancing this too. This [home delivery] is the USP of our brand and we will retain this further. But yes, as I mentioned, in Indian market, there are lots of new opportunities to explore. For example in the tier II cities there are new markets and not many players are present there. Now, about 20-25% of the revenues for our company comes from tier II and III cities. In the future, therefore, we would be expanding more into such markets.
B&E: Are you referring to your retail presence in these cities? What are your actual retail penetration plans?
Doyle: We have 300 stores in India and in total 9000 stores across the world. In another three years, our target is to have 500 stores in India, apart from the aim of entering newer cities and markets. There is still a huge untapped market in the country to be exploited.
Read more.....
B&E: Domino’s Pizza has been into this country for more than a decade. The initial years were slow growth years. Has there been any change in the growth momentum after that?
Doyle: Of course during the initial years, like any other MNC, we too had teething problems and it took us time to understand the Indian market. But that kind of a situation lasted just for two years after we entered India in 1997. Since the early 2000s, we have grown at a very fast rate.
B&E: So what potential do you see in the Indian market? Especially in terms of contribution to the global turnover of the company, where do you want to take the Indian venture?
Doyle: During the last two to three years, India has actually become the fastest growing market for us. India is the most important Asian market for us and Domino’s sees a huge opportunity in India for pizza and pasta. And in terms of contribution to the global turnover of the company, India is amongst the top 10 earners for Domino’s. Currently, India contributes to around 1.5-2% of Domino’s annual global sales – we expect to take it further to a double digit figure. By 2014, we expect India to be among the top five earners – and our concrete plans to achieve this goal are in action.
B&E: The quick service restaurant (QSR) market in India is growing at 25% by CII estimates, and categorically in pizzas, apparently 25,000 pizzas are sold per day in the various corners of the country. Where does Domino’s stand in this? And what strategy are you implementing to cash in on this fiercely growing market?
Doyle: We currently enjoy the leadership position in India in the home delivery segment and we’ve always believed in enhancing this too. This [home delivery] is the USP of our brand and we will retain this further. But yes, as I mentioned, in Indian market, there are lots of new opportunities to explore. For example in the tier II cities there are new markets and not many players are present there. Now, about 20-25% of the revenues for our company comes from tier II and III cities. In the future, therefore, we would be expanding more into such markets.
B&E: Are you referring to your retail presence in these cities? What are your actual retail penetration plans?
Doyle: We have 300 stores in India and in total 9000 stores across the world. In another three years, our target is to have 500 stores in India, apart from the aim of entering newer cities and markets. There is still a huge untapped market in the country to be exploited.
Read more.....
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
