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INDEX

Sr. No. Particulars Page

No.

1 Company Analysis 3

2 Industry Analysis 7

3 Competitor Analysis 15

4 Market Strategy 20

5 Business Strategy 23

6 Products and Brands 25

7 Financial Analysis 26

8 Conclusion 31

9 Refrences 32

Group 9 Section 1

APOORV SAXENA DM15109

HARSH KETUMAN PANDYA DM15119

MALHAR DIVYANG

LAKDAWALA DM15129

RASHMI RAM MANOHAR DM15139

SEJAL MANGAL DM15149

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COMPANY ANALYSIS

Jubilant is basically focused on the operational strategy and nucleus of the business philosophy.

It is distinctive era that makes jubilant bigger and better. Delivering more that give Jubilant

customer more satisfy and happy. Its ethos motivates them to give more taste, more store, more

product, more accessibility more convenience through a seamless delivery system.

Its main objective is to deliver more value to the customer and give better return to the

stakeholders.

Total 465 Domino's store is in the country. Total 14626 employees are working in the Jubilant.

In India 105 cities have Domino's store. Domino's has 54% of market share of total organize

pizza market in India. Jubilant is the first food service brand to introduce the online order

platform. Jubilant food works is among the top 5 network outside US in terms of absolute

number of networks. Jubilant is the 1 engaging Facebook fan page of more that has more than 1

million fans. Average 1.39 Pizza per store is sold through Domino's.

Sourcehttp://www.jubilantfoodworks.com/wpcontent/uploads/2012/07/Annual_Report_High_Resolution.pdf

Jubilant food works operates master franchise Agreement with the Domino's International.

Operations of the store in India, Sri Lanka, Bangladesh and Nepal. Domino's Pizza is recognized

as leading pizza delivery chain globally. Operating a network of more than 9000 franchised and

company own stores across the globe.1

One of the biggest drivers of the Jubilant is Indian Food Service Industry. They continuously

offer new flavors and taste in existing product and Introduce new dishes. Price factor is also

taken into the consideration for the new consumers and to increase the repeat consumption.

Jubilant is depend on supply chain.

Delivering efficiency through prudent cost management. Because in this industry wastage is

done majorly so reduction in wastage and constant improvement in process and reduction cost is

key factor. Jubilant is constantly growing in EBITDA.

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History

The Beginning of Domino's Arrival:-

In 1996 the first Domino's store is opened in New Delhi.2 Their trust is to promoting and

popularizing the pizza as an interesting meal replacement. They started the Domino's with the

Tag line "Hungry Kya?" to target the consumers perception point that whenever they think about

hunger they thought of Domino's Pizza.

The next phase is to do the home delivery. They have the competitive edge over the competitors

to give customers more convenience and experience.

For the sustainability the introduce the new strategy to deliver the product in 30 minutes or free.

To expand more they innovate new product to add the taste quotient of the consumer. They add

more variety, crust of pizza, expand their product by offering pasta cakes and toppings to the

product.

Next Challenge is to attract the middle class for they introduce the 39rs. pizza mania broke into

the sub 50rs category.3

With strong innovating product offering backed by phenomenal delivering mechanism Domino's

stepped up a gear. To rule the consumers mind to residing in their heart though the "Khushiyo Ki

Home Delivery".

Diversified the strategy they entered into the alliance with the Dunkin' Donuts in February 2011

world's leading and loved baked goods and coffee chain.4

Dunkin' Donuts was established in 1950.5 it has more than 10000 restaurants across the globe in

32 country.6

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Corporate Social Responsibility

Distribute Food, Book and Stationary etc. in the slums.

Environment conservation by plantation in some cities

Cycle rally against the pollution in Chandigarh.

Road safety campaigns in Delhi.

Blood donation campaigns in Delhi and Agra.

Cleanliness program in Temple and Parks.

Teams of Jubilant spent time in old age homes and mentally retarded to cheer them.

Education campaigns for the underprivileged.

During the last year total 481 CSR activities were undertaken.7

Performance

Net sales for the last year was RS.10233 million. New 87 Stores opened last year. With the net

profit of 1056 million last year. PBIT was 1922 million

Growth of 50% with the same store sales growth at an equally impressive 29.6%. EBITDA

increase by 18.7% last year.

They introduce new product like Butterscotch Mousse cake, Chicken kickers, Nutty Choco Lava,

Pizza Dip.

Chairman is Mr. Shyam Bhatia founded and Directed the company.

As per March 2013 the Growth in sales was 30%.

Total share capital is 65077940 equity shares.

Average 1.39 Pizza per store is sold through Domino's.

Source - http://www.jubilantfoodworks.com/wpcontent/uploads/2012/07/Annual_Report_High_Resolution.pdf

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SWOT ANALYSIS

Strength

Worldwide Store.

Leader in Pizza Delivery Industry.

Very Strong Brand Image.

Strong Network with Its Franchises.

Large Accessibility.

Wide Product Range.

Low Price Range to the High Price Range.

Strong Customer relationship.

Presence Across the Value Chain.

Online Order Service.

Weakness

Less Experience in their Store Selling.

Non-durable goods.

Opportunity

Growth Opportunity in India and China.

Service on Mobile device.

Threats

Competition of Pizza Delivery Industry

Increase in Health Awareness.

Increase in Labor and Food Prices.

Government Policy (Increase in the TAX on the Restaurant Food).

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INDUSTRY ANALYSIS

INTRODUCTION

We are putting Jubilant Foodworks in fast food industry. It has two brands namely Domino’s

Pizza and Dunkin’ Donuts. Most of its revenue comes from Domino’s Pizza hence we are

classifying it in fast food industry.

Fast food is an item which can be prepared in a short period of time. These items are generally

served in restaurants. They are also sold as takeaways. There is very low quality preparation.

Fast food can be served by way of stalls, outlets, kiosks. These kinds of arrangements generally

do not provide seating arrangements. They are mainly for take away or customers stand and eat.

Fast food is considered as one of the fastest growing type of food industry. In India this industry

is growing at rate of 30-35% a year.8 The current market size of the industry is 47 billion.

9 The

industry is in its growing stage.

We are day by day adopting a lot of lifestyle habits from the west. We have adopted the fast food

culture. A lot of foreign food chains like Domino’s, KFC, Pizza Hut, Mad Over Donuts etc. are

dominating our fast food industry. They have standardized products which they sell world over.

Their production processes are also standardized. A lot of our traditional food items have been

adapted to suit the changing times. Basically the preparation, processing time has been reduced

to serve the changing needs of consumers. Traditional fast food items are dosa, idli, paani puri,

vada pav, pav bhaji etc. Many times these traditional items are given a western touch to

differentiate themselves in this highly competitive industry. For example you will get to eat

Chinese dosa, cheese vada pav.

Globalization is one of the factors responsible for making us aware about international fast food

items. The liberalization policies of the government have also helped these international food

chains to enter our market.

Nowadays our lives have become very hectic. In urban areas generally both husband and wife

will be working. This has increased disposable income and it has also reduced the time to eat.

This has also contributed to the growth in fast food industry.

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Not only foreign food chains but also local fast food chains have received a boost due to these

above mentioned factors.

INDUSTRY DRIVING FORCES

1. Growth in disposable income

There has been a phenomenal growth in disposable income as you can see in the below table

2009 2010 2011 2012 2013

Annual

Disposable

Income (US $

million)

1,104,577.9 1,354,927.0 1,535,577.7 1,506,484.9 1,536,783.7

Source - http://www.euromonitor.com/india/country-factfile

Due to this growth in disposable income, the people can now afford to spend more. They can

afford to spend on fast food items offered by these international chains. This growth can also be

attributed to life style changes. Nowadays a lot of women are also joining the workforce. Hence

you see that both husband and wife are working. You call them as double income families. They

generally live a very fast paced life, working on very tight schedules hence they spend on fast

food items. Their disposable income is higher than the families who depend only on one person

to earn for them.

2. Change in food habits

There has been a major shift in food consuming habits. This is especially seen in the urban areas.

Hence a lot of food manufacturers are getting encouraged to innovate with flavors and modify

their existing food items to satisfy their consumers changing taste buds. According to a study

86% of the households prefer to consume instant food over traditional food.10

This is due

changes in our life style, standard of living, increase in disposable income, the convenience

offered by these fast food items, influence the western culture has on us. Today so many children

also prefer fast food items rather than homemade items.

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3. Entry of Major Competitors

With liberalization in our country in 1991, a lot of foreign companies were allowed to come and

do business in our country.

Following are major players –

Mc Donalds

KFC

Pizza Hut

Subways

Mad over Donuts

Donut House

These players are responsible for developing fast food culture in our country. Whenever we

mention fast food we always think of American fast food items. This is due to these above

mentioned fast food suppliers. In our culture eating at home is of great importance. These key

players have to some extent been able to bring changes. People now spend more for eating out.

4. Urbanization –

Sourcehttp://www.biyanigirlscollege.com/blog/urbanization-of-india

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As you can see from the above graph that the rate of urbanization is constantly increasing, this

gives the fast food industry tremendous opportunities to serve such a large customer base.

According to a study by 2025 approximately 530 million people will be residing in urban areas.11

5. Growth in young population –

51% of the country’s population will be in the range of 5 to 35 years of age.12

This age group

generally consumes more fast food items. This age group is very fast in adapting influences of

foreign cultures. They are known to be fast paced, they are also known to always spend more

money. This is a major driver for this industry. They will have such a huge customer base to

serve.

INDUSTRY CHALLENGES

1. Socio-cultural Issues –

The fast food industry faces socio cultural issues. Indian culture does not promote eating outside.

The mother generally cooks food. Eating out with family is mostly considered as a huge affair.

So to shift this to making eating out a casual affair is a big challenge. This industry faces other

issues like Hindus do not eat beef, many of them are vegetarian. This created huge challenges for

fast food chains like Mc Donald’s, Domino’s. They had to change and modify their product to

suit Indian sensibilities.

2. Health related Issues –

This industry is viewed as being unhealthy. The main health issue arising from this industry is

Obesity. Many schools are promoting healthy eating habits. Hence they are banning fast food

items from their canteens. People are generally becoming more health conscious because they

have understood the various health issues related to eating fast food on a regular basis.

Industrialization, influence of western culture, rise in standard of living, fast paced work life,

paucity of time are factors that contribute to increasing consumption of fast food which

ultimately affects the health of the consumers.

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3. Economic Recession –

Due to the lull in our economy people have realized that they have to cut their spending. Hence a

lot of them are choosing not to buy food from outside. They are planning to go back to the

traditional way of consuming food at home.

4. Rising Costs –

This industry has to deal with issues in relation to increasing costs of raw materials. Rising

pressure of costs and at the same time pressure to maintain hygiene, quality becomes difficult to

balance. The cost of labor is also on the increase. Given all these constraints the fast food joints

are expected to price their items on the lower side. Profit margins get affected. Also the price for

acquiring property in urban areas is constantly on the rise. All these factors make it difficult for

fast food joints to survive.

5. Profit Repatriation –

This is another major challenge. The government allows foreign fast food joints to enter our

market with the hope of creating employment opportunities and eventually economic prosperity

for the nation. These objectives are achieved in the short run but in the long run ultimately these

foreign food chains want to take back profits to their home country.

PEST ANALYSIS FOR FAST FOOD INDUSTRY

1. Political and Legal Factors

The economic liberalization of 1991 has given a huge impetus to the fast food industry.

Many international players could gain entry and change the face of fast food industry in

our country.

Laws like Food Safety and Standard Act, 2006 is applicable to the food and the food

processing industry also. This act requires fast food joints to maintain certain levels of

health standards like hygiene, cleanliness.

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Also fast food restaurants need to obtain licenses from state food authorities. If any

restaurant is found not having a license it can punished severely. This can also lead to

shutting down of restaurant.

Other factors like incidence of changes of taxation can also affect the industry.

Repatriation of profits may become difficult for the international fast food suppliers if the

government decides to put obstacles in this regard.

This industry is a labor intensive industry so laws like Minimum Wages Act, 1948 affect

the payment to be made to the employees.

Type of government regime also affects the industry. In our country we have a

democratic government. This helps to promote a healthy business environment in the

country.

2. Economic Factors –

Economic conditions of the economy affect the industry. We are currently in a period

where the economy is in a lull. During this time consumers tend to cut down on their

spending. Inflation is constantly increasing; they want to save their money. In such

situations consumers find it more affordable to spend on reasonable fast food items

rather than spend money on lavish restaurants.

The increasing standard of living of people helps to boost the industry. India has a

huge middle class population. India is projected to have the biggest middle class

population in the world. By 2030.13

This middle class population will be known to

have huge disposable incomes which this industry can tap. Generally families in this

population will have both the parents earning money. They are living a fast paced life.

Thus these are ideal characteristics of consumers for fast food industry.

The demand for fast food is growing day by day since we have a burgeoning middle

class population and growing number of youth in our country.

Exchange rate fluctuations will play a big role in this industry since most of the

dominating players are international food chains. The most common entry strategy for

these foreign players is franchising. The Indian franchisee has to make royalty

payments. Currently the rupee has depreciated to 67.08 rupees.14

This creates

problems even in import of materials, repatriation of profits.

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All these factors mentioned in the previous point will put pressure on profit margins.

This will make it difficult to conduct business.

3. Socio Cultural Factors –

Urban India is undergoing huge changes. They are trying to ape the west especially in

their food habits.

Dual income families, increase in standard of living and disposable income, changing

mind set of the people, fast paced life style are some of the many factors that are

responsible for the boom in fast food industry.

Many Hindus in India are vegetarians. They do not eat meat, beef etc. This posed

challenges for fast food chains like Mc Donalds, Domino’s, KFC. They had to modify

their food items to suit Indian sensibilities. For example KFC has removed a

vegetarian variant of their burger.

In our country the culture of eating at home is very strong. To get people to come out

and eat will be very difficult for the industry players. They have to some extent been

successful in urban areas.

Rural markets in India are untapped by fast food industry. Big food chains have not

been able to reap benefits of this hinterland. It will be very difficult for them to

convince the rural markets to buy their products.

4. Technological Factors –

We live in a dynamic world. Technology is constantly changing. Fast food chains

have to keep abreast with changing times.

Nowadays these fast food chains have gone online. Customers can go and place their

order online.

Home delivery has become a very importance aspect in fast food industry. For

example Domino’s guarantees pizza delivery in 30 minutes. To accomplish this it has

its production processes standardized. Very well trained employees to deliver this

promise to its customers.

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These fast food chains also give customers of placing their orders over the phone.

They generally have a single hotline number. Sophisticated technologies are used in

order management.

There are other technologies like Hospitality Point of sale systems if introduced in

India can create ripples in the industry. 15

These fast food chains are also present on social media portals to gage the responses

of their customers. They can also get feedback from them about new products

launched.

They also have very strong inventory management systems and supply chain systems

to sustain their competitive advantage.

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COMPETITOR ANALYSIS

PORTER’S 5 FORCE MODEL

Source - http://www.miracleworx.com/blog/2013/02/applying-micheal-porters-five-forces-model-to-the-web-design-industry/

1. Bargaining power of customers –

The bargaining power of buyers is decent i.e. it is moderate.

All these fast food chains practice product differentiation. They target different

segments of the population.

The consumers in this industry are price sensitive. Due to this they get decent amount

of bargaining power.

The consumers are also known to be brand loyal in this industry. This gives the

industry players opportunities to increase the prices of their products.

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2. Bargaining power of suppliers –

The suppliers bargaining power isn’t very high.

They get huge orders from these fast food chains. It is very difficult for them to find

different buyers.

These fast food chains have scope to change their suppliers as the raw materials required

by them are not rare and can be found easily.

All the above mentioned factors help the industry players to demand a good price.

But also if the suppliers do not give the orders on time it can disrupt production flows

which will ultimately affect the customers.

3. Threat of New Entrants

This industry is dominated by few major players. These players have huge operations

at national levels. They derive benefits from economies of scale. Their integrated

marketing communication strategy is very effective. They have strong brand equity.

This helps in attracting and retaining customers.

Because of the above mentioned factors it becomes difficult for new players to enter

the market.

It will be very difficult for them to compete at such levels.

4. Threat of Substitutes

This industry faces moderate threat from substitutes.

Food is easily available everywhere. People can cook food easily in their homes.

They can pack food also take with them

5. Competitor Analysis

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Competitors Comparison

Donut

House

Mad Over

Donuts Pizza Hut KFC Subway McDonald's

Type Private Private Private Private Private Private

Industry Fast Food Fast Food Fast Food Fast Food Fast Food Fast Food

Founded

1958 1930 1965 1940

Area

served Local Worldwide Worldwide Worldwide

Worldwid

e Worldwide

Products

Coffee,

desserts

and bakery

Coffee,

desserts and

bakery

Pizza,

Snacks and

Beverages

Chicken,

Burger and

Beverages

Sandwich Buger,Beverag

es and Snacks

Revenue

$5.50

billion US$15 billion

$5.50

billion

US$ 27.56

billion

Outlets

11,139 18,000 40,043 over 34,000

PIZZA HUT

Pizza Hut is a subsidiary of YUM Brands, which is the world’s largest restaurant company.

While they primarily sell pizzas, they have also expanded their menu to include pastas, salads,

starters, desserts and soft drinks.

Pizza Hut is the major competitor for Domino’s Pizza. Although it is the main competitor, they

both follow completely different business strategies. While Domino’s focuses on low price

menus, quick service, and super-fast home deliveries, Pizza Hut’s main objective is to provide a

good dine-in experience to their customers. The ambience in Pizza Hut enables the customer to

unwind and socialize with friends and family. Pizza hut emphasizes on great interiors, music and

overall service.

The pricing of Pizza Hut products are comparatively higher than Domino’s. But this is justified

by the ambience and service they provide, which makes customers want to visit them repeatedly.

KFC

KFC is also owned by YUM Brands, and is a renowned brand world over, known for their

patented chicken recipe.

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They are specialists in fried chicken and provide a variety of chicken meals. Their strength is

their trademark recipe, brand equity, and global footprint. They also follow a highly customer

centric approach, providing tasty meals at a reasonable cost, and extremely quick service. While

their primary product is chicken, they also sell wraps, sandwiches, desserts and smoothies.

McDonalds

McDonalds had strategically planned their entry into the Indian market by studying the consumer

behavior at first and offering a completely different menu as compared to their international

market. They completely removed the non-vegetarian items such as pork, beef and mutton. It

was the first time that they included vegetarian items in their meals and went even a step further

by serving vegetarian cheese and sauce keeping in mind the religious sentiments of the people.

McD even kept their product innovation intact by regularly infusing the market with new

products such as Chicken Maharaja and Chicken Mcnuggets. McDonalds are also known for

their hygiene, good ambience, and quality products across all price range and quick service,

thereby capturing a vast strata of customers. McDonalds has various offerings in the form of

happy meal, combo meal, family meal and happy price menu to satisfy the different sections of

people who visits the McD stores be it family, friends, couples and working people. To attract

the families, McD offered free toys to the kids, in a way pressing upon the weak nerves of the

parents and to confirm their repeated visits thereon.

McDonalds too has worked extensively on its promotion by picking up catchy lines for its

advertisements such as “Aap k Zamaane mein Baap ke zamaane ke daam”. This ad had a good

connectivity with the psyche of the typical Indian consumer and was an instant hit in attracting

even the lower economic class of consumers. On the other hand, “I am lovin it” has become an

anthem for McD focussing highly upon the customer delight McD’s products bring.

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Source: http://www.slideshare.net/aparnapriyadarshini/kfc-aparna

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Marketing Strategy

Jubilant Foodworks Limited is the franchise owner of the Domino’s pizza in India and other

subcontinent nations like Sri Lanka, Bangladesh and Nepal. It looks after all its operational

functions and ensures that these are carried out smoothly, efficiently and effectively. Before

focussing upon the marketing strategy, it is necessary to evaluate your organizational

cohesiveness and determine whether the different components or departments are synchronized

well enough to achieve the mission and stated objectives and goals. For that we need to dig

deeper into understanding the McKinsey 7S model for Domino’s pizza.

The following 7S parameters are as such:-

Strategy: - The Domino’s Pizza follows a simple strategy of tapping the consumers of all

economic strata. For example, by offering the Pizza Mania at Rs. 39, it attracts Middle

class customers and tries to build customer confidence and customer relationship from

thereon. It has also launched an online booking platform as well to reach and capture

many more potential customers. Domino’s pizza also keeps a close eye on the changing

trends in the consumer preferences and hence always comes up with new products at

close intervals. They also have a well-planned supply chain system in place with many

vendors available for ingredients procurement. What is does is that it lowers the reliance

upon a single vendor and hence can never run out of stock. All these above mentioned

factors provide some competitive advantage to the Domino’s Pizza.

Structure: - The Domino’s pizza has a very lean and simple hierarchical structure. The

ownership is granted to either the local franchise or to some owned restaurant

owner/multiplex. The franchise has an owner to whom the manager reports. The manager

has a Team supervisor under him, who manages the set of employees in his team.

Systems: - The Company has a dedicated R&D system to look after the innovation in the

various food products. There is a finance department which looks after the cost-benefit

analysis, revenue growth and the market share. The HR department is a group of

personnel who manages the task of recruiting, training and empowering the employees.

Empowerment provides a leadership opportunity to each employee at every level so that

they can take the consumer-based decisions of their own.

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Shared Values: - The Company follows a simple policy of giving the maximum delight

to the customers by offering a variety of products across all price ranges. Some of the

practices followed such as offering pizzas for free on late deliveries add to the value-

added services and helps in customer retention.

Style: - The workforce has the full liberty to take decisions in light of the customer

services provided and the business growth concerned. For example, the store manager

can take decisions relating to the sales and the delivery boys can give away the free pizza

in case they deliver too late. There is no penalty charged for that, instead the issues are

keenly looked after at the end of the month and a better training method is employed. The

workforce has to be highly competitive at all times to drive more sales.

Staff: - The staffs are recruited and segregated into four major categories viz. corporate

careers, In-store careers, Supply chain careers and collegiate careers. Each of the career

demands a highly specialized skill-set and workforce.

Skills :- Like any other corporation, the skilled force is constantly evaluated and

internally rewarded and recognized as well for delivering good performance. All the

inefficient employees are equipped with improved training programmers and not retained

further if found not delivering in spite of the facilities.

Now, we will look the 4P’s of the marketing strategy employed by the Domino’s Pizza. These

are:-

1. Price:- Domino’s Pizza are good at targeting new customers and increasing their repeated

consumption by doling out lucrative offers at low prices which lowers the opportunity

costs of the customer. From Garlic breads to Choco Lava Cakes to Pizza Manias,

Domino’s Pizza know how to attract customers and they do it well too.

2. Product :-Domino’s Pizza have always created a differentiating factor in their products

by continuously improvising and innovating their product offerings. They have an R&D

division for that purpose. From Three Cheese Pizza to Butterscotch Mousse cake to

Cheese Burst, the domino’s pizza have never left any stone unturned in grabbing the

maximum market share by adding customer delight.

3. Promotion :- Domino’s Pizza has a very captivating promotion programme with

advertisements like Hungry Kya? And Khusiyon ki Home Delivery conveying their

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value-added services like more food at low prices and free home delivery within 30

minutes. They have a helpline number and online order placement service as well to

garner more eyeballs and interest.

4. Place:-Domino’s Pizza when it entered into the Indian market had to mould some of its

practices like designing an appropriate menu which suited the taste of Indian consumers

with strict prohibition on beef and other items. For example, Green dot for signifying

veggies products, delivering through moped, including oregano spice mix to suit the

Indian salivary glands. But at the same time it imbibed some of the best corporate

practices for the Indian market as well like Self-Service when most of the Indians were

habituated to being served food on the dining table. Then there was a trash with “USE

ME” sign as there were no food servers’ tradition in the outlets. They wanted to

incorporate the hygiene practices among the Indian customers.

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BUSINESS STRATEGY

The business strategy for Jubilant Foods is to be totally customer centric, delivering interesting

value for money food, at the customers’ doorstep, delighting the customer and making him

happy. The food has to be delivered piping hot and therefore has to be delivered within a short

time. Since delivery time is of essence, the company could adopt a BHAG - Big Hairy

Audacious Goal - of delivering the food within 30 minutes, or the food is free. This might mean

restricting the area of operation to a 2 to 3 km radius. But the reputation the firm earns would far

outweigh such considerations. Also, the home delivery comes at no extra charge. Customers

should be made to realise this delightful service initiative by advertising the service by

mentioning it on the sleeve of the delivery boys’ shirt or his cap.

The company should have a fleet of fuel efficient, reliable, fast bikes, fitted with large thermo

containers to keep the food warm before delivery. The delivery boys should be well trained in

riding the bikes well and have good geographical knowledge of the area of operation in order to

find the customer’s address easily. The company have opened several stores in both urban and

semi urban areas to improve the penetration of such food service industry and reach a larger

section of the population without compromising on the delivery time. They have open more well

located stores in urban areas for the doughnuts. They are located in places where the youth

congregate, like popular malls, beaches, The IT corridor, college food courts and the like. The

company has continually innovated and offer customers new pizza bases and toppings with a

local flavour. The doughnuts too are home delivered. The customer are be able to order food

online as well as from his mobile phone. The customer therefore are able to access an attractive

digital menu with which he they are able to decide their food. They have the option of paying

online or on delivery. The customer also has the option of eating at the store restaurant if he so

chooses, but the focus is on home delivery - making the customer happy by delivering food at his

home. The company has opened stores in tier 2 and tier 3 towns as well.

They have as their KPIs the number of successful deliveries made (deliveries within 30 minutes),

loss on account of free pizzas delivered, the growth within a store, and overall growth and

penetration in a given market, and growth in market share. Jubilant Foodworks Ltd strives to

stand by its stated principle of "delivering more”. It will continue to be the core of JFL's business

strategy.

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JFL gives customers more satisfaction, and more happiness by giving them more taste, more

stores, more accessibility and more convenience through a seamless delivery system. JFL

delivers more value for customers and better ROI for every stakeholder. JFL innovates

continuously adding new products, side dishes, desserts, pastas, cakes etc. JFL has value driven

price points, aimed at inducing new customers. Lower and lower entry price points will help in

gaining a new genre of consumers and increase repeat consumption.

JFL has a smooth and efficient supply chain, focusing on keeping costs down, but supply fresh

and adequate ingredients. JFL has a centralised procurement process to ensure quality and

competitive prices. For most key ingredients, JFL has multiple vendors to avoid dependence on

any single vendor. JFL has Local Store Marketing aimed at devising tailor made programs for

individual stores. JFL also deliver more happiness to the local community by adopting a strong

and vibrant CSR campaign.

Source - http://www.iimraipur.ac.in/news25.htm

http://www.jubilantfoodworks.com/wp-content/uploads/2013/05/2.JFL_Q4-FY-2013_Press_Release.pdf

http://profit.ndtv.com/stock/jubilant-foodworks-ltd_jublfood/reports-chairman-speech

http://www.jubilantfoodworks.com/wp-content/uploads/2012/07/Annual_Report_High_Resolution.pdf

25 | P a g e

PRODUCTS AND BRANDS

Jubilant Foodworks is the franchise owner of two of the world’s renowned brands in the pizza

and baked foods segment i.e. Domino’s Pizza and Dunkin Donuts.

With the rapid pace of growth that Domino’s Pizza has displayed in India in terms of the market

share in the Pizza home delivery segment and the organized Indian pizza market, the number of

stores opened and the number of weekly orders per store, it can be safe to presume that

Domino’s as a brand is escalating. Some of the brands of Domino’s Pizza that has helped in

creating a niche market for Jubilant foodworks in the Pizza food industry are as follows:-

1. Pizzas

2. Pastas

3. Choco Lava Cake

4. Beverages with an additional soft drink

5. Cheese Dips

6. Breadsticks

7. Chicken Wings

Now, with Dunkin Donuts entering the Indian market, it provides a more leveraging power to

Jubilant Foodworks in the coming times. Dunkin Donuts has been positioned as more of a

Food Cafe in India bringing along the best of two areas i.e. fast food restaurants and the

coffee cafe. It would have to face a tough competition from the already established big

brands which have absorbed the psyche of the Indian customers very well. As of now, there

are only 16 stores of Dunkin Donuts all across India. As far as the products are concerned,

their USP lies in :-

1. Donuts

2. Coffee

3. Beverages

4. Burgers

5. Sandwiches

6. Side-bites

26 | P a g e

Financial Analysis

Financial Analysis is used to assess the company’s viability, stability and sustainability. All the

Values are taken from Prowess.

1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Current ratio 0.173 0.214 0.23 0.246 0.227 0.341

The Current Ratio though increasing but it is less than 1. That indicates that Domino’s current

Liabilities exceed its current assets, thus Domino’s may have issues catering its short term

obligations. Though over the years it has realized this, and has started increasing its current

assets.

1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Quick ratio 0.084 0.098 0.142 0.129 0.119 0.231

0

0.1

0.2

0.3

0.4

1 2 3 4 5 6

Current ratio

Current ratio

0

0.1

0.2

0.3

1 2 3 4 5 6

Quick ratio

Quick ratio

27 | P a g e

Quick Ratio of less than 1 indicates that company doesn’t have liquid cash to cater its short term

demands. All the values are less than 0.25, thus company doesn’t realize the need to increase its

liquid reserves.

1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Debt to equity ratio 3.229 3.562 0.092 0.052 0.044 0.027

In March 2008 and 2009 the Debt-to-Equity ratio was very high. Domino’s was too much

dependant on its debt for their operations, but post 2010, Domino’s changed its strategy and

started to run the organisation using its own funds. Domino’s created enough cash flow to fund

expansion through internal funding. Domino’s claims to have attained “Zero Debt Status”.

1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Debtors (days) 1.7 1.4 1.6 1.9 1.9 1.7

Creditors (days) 51.2 47 55.9 63.4 62.6 55.6

Domino’s operates on negative working capital; their purchases are made on credit and sales are

in cash. Thus it enjoys 50 days of credit period.

0

1

2

3

4

1 2 3 4 5 6

Debt to equity ratio

Debt toequity ratio

0

20

40

60

80

1 2 3 4 5 6

Creditors(days)

Debtors(days)

28 | P a g e

in Rs Million 1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Sales 2,360.50 3,139.10 4,755.20 6,792.50 10,181.80 14,085.30

The Sales Growth of the company is very growth. The Compound Annual Growth Rate – CAGR

is 43%. The data shows that the smooth annualized gain which Domino’s earned over the years.

But one more thing to note over here is that the Fast-Food Industry also grew with a similar rate

of 40%.

in Rs Million 1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Profit after tax (PAT) 85.5 73 329.7 720 1,056.40 1,351.10

Net Profit Margin 3.62% 2.33% 6.93% 10.60% 10.38% 9.59%

As it can be seen that Net Profit Margin has increased after 2009. Thus as Debt to Equity Ratio

decreased after 2009, Net Profit Margin increased significantly. Thus the amount saved from

paying interests reflects in company’s earnings

in Rs Million 1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Total assets 1,026 1,498 2,001 3,088 4,758 6,631

Return on Total Assets 8.33% 4.87% 16.47% 23.32% 22.20% 20.38%

0

20,000

1 2 3 4 5 6

Sales

Sales

0.00%

20.00%

1 2 3 4 5 6

Net Profit Margin

Net ProfitMargin

29 | P a g e

Even Return on Total Assets increased after 2009.Tthe Compound Annual Growth Rate for Total

Assets is 45%. Thus Domino’s expanded itself with increase in its sales.

in Rs Million 1 2 3 4 5 6

Year Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Advertising expenses 136.2 165.8 251.8 370.7 522.9 784.1

Advertising

expenses/Sales 5.77% 5.28% 5.30% 5.46% 5.14% 5.57%

Domino’s has limited its advertising expenditure to around 5%. Thus Domino’s is comfortable

with its position in the market and it doesn’t perceive any threat from any of its competitors.

in Rs Million 1 2 3 4 5

Year Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Pizzas 2,682 3,824 6,021* 7,926 10,658

Dessert

581.8 607.6

Dips

163 269.9

Beverages 119.3 184.5 277 360.8 533.2

Others 337.8 746.7 1,354.40* 1,139.40 2,004.70

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

1 2 3 4 5 6

Return on Total Assets

Return on TotalAssets

1.00%

1 2 3 4 5 6

Advertising expenses/Sales

Advertisingexpenses/Sales

30 | P a g e

Year Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Pizzas 85.44% 80.42% 88.64%* 77.85% 75.67%

Dessert

5.71% 4.31%

Dips

1.60% 1.92%

Beverages 3.80% 3.88% 4.08% 3.54% 3.79%

Others 10.76% 15.70% 19.94% 11.19% 14.23%

Total 100% 100% 113%* 100% 100%

(* The Value is taken from Prowess, but it’s wrong as the total percentage goes above 100%)

Percentage Contribution of Sales from Pizzas is decreasing gradually, as Domino’s started to

include side dishes also in its Menu.

The Revenue distribution of 2013 is as shown in the Pie Diagram. 76% of its revenue comes

from selling Pizzas, which is the core product. Deserts, Dips and Beverages provide minority

contribution. The Revenue Distribution from Others include the revenue from ‘Dunkin Donuts’

also.

65.00%

70.00%

75.00%

80.00%

85.00%

90.00%

1 2 3 4 5

Pizzas

Pizzas

76%

4%

2% 4% 14%

March 2013 Revenue Distribution

Pizzas

Dessert

Dips

Beverages

Others

31 | P a g e

Conclusion

As we have seen in the analysis, after 2009 Domino’s has accelerated its growth rate and

continues to do it. As the industry has also provided to the growth of the company. There is no

sign of slower growth into future. Also Domino’s has created an unique image in the minds of

the customers, wherein quelling their hunger in less than 30 minutes, in case Domino’s fails to

deliver, customer enjoys free Pizzas. This indicates a strong commitment towards their value

added services. With Delivery of Pizzas, with Delivery of Values, with Delivery of Satisfaction,

Domino’s lives upto its tagline, “Khushiyo ki Home Delivery”

32 | P a g e

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