Domino’s Pizza, Inc. (NYSE:DPZ) Aims To Raise Online Share To 50%

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Domino’s Pizza, Inc. (NYSE:DPZ) is gearing up to boost its online business. The online share of the company has grown to over 30% of its business, at around Rs 250 crore in the current fiscal compared to 16% in FY2014. The company is now targeting to push this share to 50% in a bid to lower the expenses incurred in telecom and manpower.

Harneet Singh Rajpal, Senior VP (Marketing) at Domino’s Pizza India, said that Zomato and Foodpanda are the company’s biggest tech rivals at the moment as these companies are expanding reach to various food chains.

Twitter in U.S., Facebook in India

Domino’s Pizza has bigger plans to tackle competition. The company has announced launch of a Twitter store in the U.S. while it is aiming to start a Facebook store in India to increase its dominance in the social media across the markets.

Over 6.5 million Facebook users are there on the Domino page, and they are targeting to offer these people a platform to order pizza online in a hassle-free way. The users will not have to go to the homepage of the Domino website to book orders and can directly order their favorite pizza and savor it once it is delivered to their homes.

Rajpal said that currently the Facebook order facility was redirecting the users to go to the website and order. After making online orders available through Facebook, Twitter will also be used in India soon, he said.

Home Delivery Vs. Online

The company’s home delivery segment amounts to only 18% of the entire food services market in the country, at present, and dine-in is a more prevalent platform. Domino’s Pizza, Inc. (NYSE:DPZ) aims at converting the home delivery orders to online platform and has special offers for the people ordering online. The online menu offers customers ease in decision making and also informs them about the bill generated, which is a difficult possibility when booking orders on phone.

The company has increased their digital market spending considerably to current spending of 25% from 5% in 2013. The returns that the move has fetched the company are also positive, and they are aiming to follow the trend to its full potential.

According to data collected by the company from a customer database of 20 million and segregated these into 570 categories. Based on this data, the company is following the one-on-one direct marketing policy at present. Rajpal said that sending discount coupons to anybody across the country made no sense and it was better to target the 570 categories. With this direct approach, Domino aims to increase revenue and shun competition in coming months.

Sources: Technewstoday, timesofindia

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Neha Gupta
Neha Gupta has cleared CFA Level 2 from CFA Institute (USA) and completed PGDBA in Finance. She has worked in diverse capacities from financial research to currency trading in a span of 3 years. Neha also covers technology news for Insider Monkey, and has a penchant for smartphone stories.

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