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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 Dominos
Pizza and Dunkin Donuts. Most of its revenue comes from Dominos 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 Dominos, 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 countrys 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 Donalds, Dominos. 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, Dominos, 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 Dominos 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
PORTERS 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 isnt 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 worlds 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 Dominos Pizza. Although it is the main competitor, they
both follow completely different business strategies. While Dominos focuses on low price
menus, quick service, and super-fast home deliveries, Pizza Huts 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 Dominos. 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 McDs 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 Dominos 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 Dominos pizza.
The following 7S parameters are as such:-
Strategy: - The Dominos 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. Dominos 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 Dominos Pizza.
Structure: - The Dominos 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 4Ps of the marketing strategy employed by the Dominos Pizza. These
are:-
1. Price:- Dominos 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,
Dominos Pizza know how to attract customers and they do it well too.
2. Product :-Dominos 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 dominos pizza have never left any stone unturned in grabbing the
maximum market share by adding customer delight.
3. Promotion :- Dominos 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:-Dominos 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 customers 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 worlds renowned brands in the pizza
and baked foods segment i.e. Dominos Pizza and Dunkin Donuts.
With the rapid pace of growth that Dominos 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
Dominos as a brand is escalating. Some of the brands of Dominos 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 companys 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 Dominos current
Liabilities exceed its current assets, thus Dominos 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 doesnt have liquid cash to cater its short term
demands. All the values are less than 0.25, thus company doesnt 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. Dominos was too much
dependant on its debt for their operations, but post 2010, Dominos changed its strategy and
started to run the organisation using its own funds. Dominos created enough cash flow to fund
expansion through internal funding. Dominos 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


Dominos 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 to
equity 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 Dominos 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 companys 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 Profit
Margin
29 | P a g e


Even Return on Total Assets increased after 2009.Tthe Compound Annual Growth Rate for Total
Assets is 45%. Thus Dominos 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%


Dominos has limited its advertising expenditure to around 5%. Thus Dominos is comfortable
with its position in the market and it doesnt 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 Total
Assets
1.00%
1 2 3 4 5 6
Advertising
expenses/Sales
Advertising
expenses/Sal
es
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 its wrong as the total percentage goes above 100%)

Percentage Contribution of Sales from Pizzas is decreasing gradually, as Dominos 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 Dominos 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 Dominos has created an unique image in the minds of
the customers, wherein quelling their hunger in less than 30 minutes, in case Dominos 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,
Dominos lives upto its tagline, Khushiyo ki Home Delivery







32 | P a g e

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