How Domino’s Reinvented Itself To Win In India
The
pizza chain is just one of many in America. But in this booming emerging
market, it engineered dominance.
In
India, Starbucks sells a tandoori paneer roll. KFC makes a "paneer
zinger." Burger King has the Whopper . . . oh, and a Paneer King burger,
too. This is largely how international food brands court India’s 1.25 billion consumers: by playing
to local tastes. But Domino’s is doing more. It has cleverly reimagined
everything about itself, right down to its flour, to nail the balance between
serving local needs and retaining a patina of Western cool. That’s what has
made it India’s largest international foreign-food chain, with 806 stores
across 170 cities, more than twice as many as McDonald’s—and Domino’s says it
nets 20% higher revenue. The chain sells more pizza in India than anywhere
outside the U.S.
"We
were baffled, and gratified, that middle-class India took to the pizza like no
other Western food," says Ajay
Kaul,
CEO of Domino’s India. He suspects that the company is working with a built-in
advantage: Pizza is a cross-cultural food. Its dough and toppings have plenty
in common with the Indian roti (flat bread) and subji (vegetables). Kaul
guesses that pizza also appeals to Indians because it contains two keystones of
local culture—a love of shared plates, and of food that can be eaten with your
hands. A hot slice, it turns out, is among the few mass culinary exports that
require no utensils.
Remaking The Pizza
To woo Indian traditionalists, as
well as the budget-conscious eater, the chain spent eight months examining
everything from flour to toppings, to lower prices. It then introduced what it
called "Pizza Mania"—a 35-rupee (60-cent) pizza that takes exactly
2.5 minutes to make and six more to bake.
In small cities, where Indians
crave Western products and eating out is a family event, Domino’s offers a
large dine-in space. And its locations throughout the country are situated
exactingly: The pizza chain studies each neighborhood, its streets, and
traffic flow. Then each store’s area is meticulously mapped, down to every
intersection and traffic light, to find the fastest delivery routes—because
here, Domino’s offers its "30 minutes or it’s free" policy. (It ended
the offer in America in 1993, after the hurry caused oo many car accidents.)
Detailing Delivery
A deliveryman and his manager plot
out the route he’s about to take. Each delivery is allotted eight minutes, and
there’s a seven-minute buffer for traffic jams and bad roads. More than 99% of
the pizzas arrive within the promised 30-minute deadline.
Modifying Menus
The Domino’s India menu is diverse,
to appeal to the country’s many tastes. For inspiration, its chefs (right) go
on regular "food walks" through markets. A recent "Taco
Indiana" dish was inspired by northern India’s kebabs and parathas, for
example. In southern India, where pizza is not as popular, research led to a
spicy raw-banana pizza.
Balancing Tastes
Despite its menu’s local flavor,
Domino’s is careful not to overlocalize; middle-class India places a premium
on "Western." In a recent TV ad, a young woman tells her brother that
he is exactly like a Taco Indiana: Western-looking on the outside but Indian on
the inside. At left, chefs develop a new Subwich—a cross between a burger and a
sandwich with pizza filling, now available throughout the country.
Chowing Down
Chefs taste-test a new pizza. It’s
the locally popular "cheese burst" topped with chicken salami, classic
Indian spices (chili pepper, sesame, ginger, and garlic) and some that are new
to India’s middle class (chives, celery, parsley)—a Western slice that tastes
just Indian enough.
By Saritha Rai
http://www.fastcompany.com/3039746/how-dominos-won-india?utm_source=mailchimp&utm_medium=email&utm_campaign=fast-company-daily-manual-newsletter&position=anjali&partner=newsletter&campaign_date=01132014
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