The Twitter , Instagram and other social media is abuzz with activity on “BurgerPizza“. And to try this new sensation one has to travel half the world to India.
Domino’s Pizza India Private Limited recently launched a Pizza Burger Hybrid ‘Burger Pizza’. Dominos, a quick service restaurant (QRS) from Jubilant Foodworks has India as its second largest market after the United States according to the latest reports published in KyivPost. The report also points out that McDonalds, the greatest contender of Dominos worldwide is only half the size of Dominos in India, which probably gave momentum to the decision to venture into the kingdom of Burgers. What was Domino’s recipe of success? Was it just the market conditions or is it effective marketing strategy that has helped Dominos emerge as a market leader?
The process of successful market segmentation, selection of the right target market and the unique execution of positioning has helped Dominos to reach out to their customers and achieve a competitive advantage over its competitors including ‘Pizza Hut’ and ‘McDonalds’.
Segmentation Targeting Positioning: The three pillars of Marketing Strategy
The present day market situation makes it is difficult for companies to succeed if they adopt an undifferentiated marketing strategy. In fact successful companies are the ones that modify their marketing tactics and customise them according to the needs of their customers(Proctor, 2000).Dominos definitely owes its success in India to their
customer driven and customer centric marketing strategy which uses STP as the key marketing tool.
Segmentation helps companies to gain competitive advantage and focusing on a specific target group of customers will help reduce the overall cost(Maričić, B, & Đorđević, A 2015).
Dominos has seen a positive growth in the Indian fast food market by focusing on the segment of middle-class young consumers. These vibrant students and working professionals with little time on their hands to cook and with an attitude to experiment form the niche segment for Dominos. While pizzas are more of a meal time food often devoured with a group of friends or family burgers are in demand throughout the day by individual consumers. It is this segment of individual consumers that Dominos saw an opportunity to grow their market share.
Dominos has been successful in India by customising its menu to suit the Indian sense of taste by using local flavours and garnishing. The same approach has been adopted with the introduction of BurgerPizza. The target market for BurgerPizza will be the burger loving individual consumers and will serve as a quick meal to be had at any time of the day thus helping to target those infrequent customers they see throughout the day (Romaniuk, J 2012).
The television advertisement shows a little boy asking for a burger at a Dominos outlet and a staff deciding to bake him one using the ‘GoodOven’ .Dominos definitively is targeting the little ones too who probably are looking for fun-food for a munch thus opening up an option beyond McDonalds and Hungry Jacks for them.
The BurgerPizza positions itself as unique and will retain the wholesomeness, mozzarella and ‘pizzaness’. The television advertisement boast of BurgerPizza as being made from handpicked fresh and pure ingredients.
Positioning has to be clear , customer oriented and specific(Shakhshir, G 2014). And this is probably where Domino’s may have gone wrong. The essence of a burger “PATTY” is missing in the BurgerPizza,making it more of a sandwich than a burger leaving us to wonder if something had gone wrong with the basic product .
If they are really keen on diversifying into a different segment, probably they will need to reposition their offering.
Dominos thirty-minute delivery or money back policy has got a superior positioning compared to its competitors. But with respect to BurgerPizza they probably would have to work on the positioning part and reposition itself in the market.
Lessons to learn from Dominos
Dominos maintaining its core product offering of being a Pizza has ventured into a different segment of Burgers targeting the opportunity to diversify yet maintain their uniqueness by incorporating the looks of a healthy burger while retaining the essence of a freshly baked pizza.The Segmentation and Targeting marketing strategy that has helped Dominos grow is definitely correct with respect to BurgerPizza too but how the market reacts to it’s Positioning is something that only time will tell.
Author unknown, (2016), JUBILANT FOOD WORKS, JUBILANT FOODWORKS Ltd, retrieved
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Neetu Abey George