1. Dominos Pizza India Limited
Case Study
BY
Sonata Information Technology Limited
2. Introduction
Dominos Pizza India Limited is a Pizza Retail company spread across India across 85
Locations in 22 Cities. Their Sales Model is Take away and deliveries, deliveries
accounting for about 70% of their business. Hence their main focus in to acquire and
retain and increase the value of their customers
Scope and Purpose
The Sales Module gives a birds eye view of their customers. It holds the complete
Customer Information including the transaction history. Grouping the customers based on
User Specified Criteria to facilitate campaigns on the selected groups.
The Campaign Management module is used for planning, executing and analyzing
campaigns results. Apart from this, the solution would also provide detailed analysis of
Sales trends and customer behavior over parameters such has time, Hours of day,
Customer Segment, Order value, order frequency etc.
Interrelated Systems
POS: The Point of Sale application is located at the store. The Customer Service
Representative (CSR) takes the order in this system. It is a Clipper/FoxPro Bases system
in use since Dominos started operations in India. It primarily holds customer information
such as Name, Phone Number and Address and Location (Delivery Area/Sector as
defined by Dominos) data transfer is One way i.e. from POS – SLX and subsequently in
the next phase it would be 2 way.
Email System: A POP3 Email System to send out email.
Functional requirements
Customer Management
Campaign Planning
Campaign Execution
Post Campaign Analysis
Reports and Analysis
Customer Management
Information from the POS in brought in by Batch Data Import and data such as Last order
date, Total order value, Order Frequency, Average ticket value etc are calculated after
batch update is done
This is used to classify the customer based on customer inactivity, order value etc to run
campaigns to get further business from the customer.
Campaign Planning
Campaign Planning includes deciding the Campaign objective/period/target segment.
3. The system generates a list of customers on whom the campaign is to be run. This is
generated either by running a query on the database (complex queries) or by using the
Data mining capabilities of the software. The data mining software assigns a score to
each customer, the score indicating the probability of the customer responding to the
campaign. This is done using Response Models built using results of previous campaigns.
Once the campaign period/objective/target segment/offers and communication channel
have been decided, the same can be entered into the system to create a campaign.
A campaign can consist of different offers. Each offer can be run using a different
communication channel. I.e. direct mail, email, and Telephonic call.
Campaign Execution
Campaign execution is in the form of:
Direct Mailers – The system generated Labels for the customers for who are target
segment for the campaign offer. Coupons are managed outside the SalesLogix system.
The labels with the address of the customer are put on the offer coupons and posted to the
client.
E-mails – Templates for eMail offers are created and stored in SalesLogix as Word
documents. These templates are used for sending personalized emails to the customers.
Mail merge will be done and the SalesLogix integrated with the E-mail system at
Domino’s will send out the email.
TeleCalling – The SalesLogix system will generate a list of Customer with Name along
with telephone number, which is handed over to the call center.
Response Management
The responses for all the above communication channels are captured in the POS and are
then imported into the SalesLogix system. The responses are recorded as Orders booked
against the campaign.
Only a delivered order is considered as a response to a campaign. SalesLogix however
provides the functionality to capture other forms of response and can be used at a latter
stage as and when the requirement arises. The response is captured in order to perform
effective post campaign analysis.
Post Campaign Analysis
The system would be able calculate the Net Profit from the campaign. It is calculated
from the actual sales during that period.
Incremental sales are the additional sales over the baseline sales that have occurred due to
the campaign
4. Baseline Sales = Sales during any predefined period e.g. same period of previous year or
previous month, period in which a similar campaign was run or any such period on
during which no campaign was run.
The system would provide the user to select the campaign and the “baseline period.” On
selecting the “calculate option,” the system would then display the following to the user
▪ ACTUAL SALES
▪ INCREMENTAL SALES OVER BASELINE PERIOD
▪ AVERAGE TICKET VALUE
▪ TOTAL COST OF ACTIVITY
▪ GROSS CONTRIBUTION
▪ NET PROFIT /LOSS FROM CAMPAIGN
Analysis and reports
Sales trends, customer and buying behavior provide important decision making criteria
for the managers. The system would provide the ability to analyze sales, costs,
campaigns, customer behavior etc in a user-friendly manner using Seagate analysis.
These would focus on understanding the customer well and also help to achieve
improvements in the system like to the menu, opening of stores, extension of delivery
areas etc. Apart from the above this information would also be used to achieve a higher
response rates for campaigns.
The following Business Measures are available to the managers to analyze data.
Sale Value
No of Pies or Side items
No of Orders
Average Ticket Value
Food Cost
The parameters are
Time
Customer Category
Geography
Product
Customer Segment
Campaign redemption
Post Implementation Findings
The Product gave Dominos a 360° View of their customers. Information such as the
frequency of order / break up of sales over the various dimension was not possible in the
past. Ability to plan future campaigns based on results/Customer behavior of previous
campaigns is now possible.