In the face of soaring inflation in India, Domino’s, the world’s biggest pizza brand, is employing creative strategies to navigate the challenges and maintain its dominance in the market.
With prices on the rise and consumer spending under pressure, the company is introducing the world’s cheapest Domino’s pizza, priced at just Rs. 49, to entice customers to its outlets. This move is part of a larger effort by Domino’s and other global fast-food giants to retain market share and adapt to the unique demands of India’s price-sensitive market.
Embracing The Rs 49 Pizza – A Unique Inflation Buster
Domino’s India, operated by franchisee Jubilant FoodWorks, has launched its Rs. 49 pizza as a strategic response to the ongoing inflation surge in the country. This affordably priced, stripped-down, seven-inch cheese pizza with a sprinkle of basil and parsley serves as the company’s lowest-priced offering anywhere in the world.
By “owning that price point,” Domino’s aims to attract customers who are hesitant to dine out due to higher prices across the board. The company is banking on customers visiting their stores or ordering through their app for the irresistible Rs. 49 callout, hoping that they will also opt for additional add-ons and upgrades to boost sales and offset costs.
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Evolving Business Strategies To Manage Costs
To cope with historic high inflation and its impact on profits, Jubilant FoodWorks, Domino’s franchisee in India, is implementing innovative cost-saving measures. One such measure includes removing lids from all boxes of pizzas sold in stores, which saves packaging costs.
Additionally, Jubilant is exploring opportunities to secure rent rebates from landlords by offering upfront payments. By carefully managing expenses and brainstorming new cost-efficient tactics in weekly staff meetings, the company aims to weather the inflation storm and protect its financial performance.
Competing In A Price-Sensitive Market
Domino’s is not alone in its focus on affordability. Competitors like Pizza Hut and McDonald’s are also adapting their strategies to cater to India’s price-conscious consumers. Pizza Hut, for instance, aggressively promotes pizzas starting at Rs. 79, while McDonald’s has introduced half-price meals.
These budget offerings are accompanied by extensive marketing campaigns across the nation to attract customers to their stores and apps. However, it remains a challenge to strike the right balance between offering low prices and maintaining profitability.
The Indian market presents a unique dichotomy in consumer behavior, with vast disparities between high and low-income earners.
While the budget-friendly offerings by fast-food chains target price-sensitive consumers, there remains a segment of more affluent customers who continue to indulge in pricier products. This affluent segment’s preference for gourmet pizzas priced as high as $14 showcased the potential for sales growth in certain areas.
The introduction of the Rs. 49 pizza, along with innovative cost-saving measures, showcases the brand’s commitment to staying competitive in the world’s most populous nation. By embracing this approach, Domino’s and other global fast-food giants are striving to weather the inflation storm and remain relevant in a highly dynamic and evolving market.
Image Credits: Google Images
Feature Image designed by Saudamini Seth
Sources: Indian Express, The Economic Times, India Today
Find the blogger: Katyayani Joshi
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