Definitely, Domino’s Pizza became a major success in India, unlike most other nations where it tried to establish its business. In India, Domino’s Pizza was introduced by Jubilant food works. However, apart from marketing and quality, there are some cultural reasons too that led to its success in India. Some of it was because of the demographic changes as well as the Indian market opening itself to foreign businesses. However, the most important thing is how it gained importance and grew in India. Its market penetration strategy was based on the promise of 30 minutes or free which worked quite well in India because customers here love freebies. This model did not work so well in other markets but helped Domino’s find growth very fast in India. So, the real difference is about the population, cultural factors, and consumer demographics. A large customer base for Domino’s products existed in India. Moreover, the concept of home delivery was new to the Indian market. It was something that really began with Domino’s pizza. Now, that Domino’s has matured in the Indian market, India continues to remain its strong-hold. So, actually it was the cultural fit that helped Domino’s build a business model from scratch and sustain it in India. The middle-class population is also very large in India and offers Domino’s pizza a very large customer base. Cheaper labor and raw material availability have also helped it sustain its success in India apart from technology. Economically speaking, India is a fast developing nation which also makes it highly suitable for Domino’s business.
There are several pros associated with email marketing. Some of them are listed below:
Cost-effective: You do not need to make a huge investment. Flexible: You have several design choices and can include images, graphics everything. Not time consuming: Sending emails does not take a lot of time. Not so intrusive: Unless you are planning to flood your readers’ accounts with emails, it is not intrusive compared to phone marketing or digital advertising. Scalable: You can send to thousands of people or just a few depending upon your needs. Real-time: You can promote offers in real-time through email. Automated: Ecommerce brands use automated emails for serving their customers. Email marketing is considered an effective digital marketing tool. However, there are certain drawbacks you need to keep in mind before you do email marketing. Otherwise, it is a highly cost-effective and flexible marketing tool that is a favorite of marketers and e-commerce brands around the world. The leading drawbacks associated with email marketing are: Standing out is difficult: Users receive a flood of emails every day. To stand out such that the reader pays attention is difficult. Ordinary emails are trashed by users without being given any attention. Requires design skills and experience: You need to create a nice and attractive email marketing campaign in order to be effective or the ROI on your email marketing campaign will below. This requires some design skills and attention to the smallest details or your mail will look ordinary and will not have any impact. Spam: Most of the marketing emails land in spam which is because of email accounts often getting flooded with such messages leading yo users enabling spam settings for such emails. Frustration due to misuse: Email marketing is also misused for fraud and some times marketers start sending emails without user consent or without caring for the readers’ privacy. This has led to a decline in the credibility of e-mail marketing. So, if you are planning to do email marketing, you must do it with caution and keep in mind that attractive design builds credibility and helps you get noticed. More on email marketing. The largest physical retail brand in the US, Walmart has a global store network of more than 11,300 stores of which 5,355 stores are located in the US alone (2019). The brand is present in 27 countries serving its customers under 58 banners. The main factors driving the popularity of Walmart are the lower prices and the large range of products it sells. In 2019, Walmart acquired the e-commerce brand Flipkart to strengthen its presence in the Indian market. The net e-commerce revenue of the company during the fiscal year 2019 reached $25.1 billion. However, the leading source of Walmart’s competitive advantage in the global markets is its pricing strategy. The mission of Walmart is to “save people money, so they can live better” and its pricing strategy is aimed to maximize savings for its customers.
EDLP Strategy.Behind the enormous growth of Walmart and its success is its pricing strategy. The EDLP strategy means Everyday Low Prices. The company has been using this pricing strategy right since its inception and never deviated from the strategy. However, the EDLP strategy does not suit all the retail brands and this pricing strategy is used mainly in association with Walmart in the US. It is because you need certain other strengths too to sustain lower prices which have remained a key revenue driver for Walmart. (Walmart’s revenue crossed $514 billion in 2019 of which $510.3 billion were from sales of products whereas the rest from membership and other fees.) The first and most significant benefit of the EDLP strategy is higher demand. If your prices are lower than the competitors, customers will automatically flock to your stores leading to competitive advantage. Lower prices grow the demand for your products and if you offer quality products for low prices, the demand will continue to grow. Apart from that, if customers can find good quality products at your store at lower prices than other brands, they will stay loyal to your brand which means repeat purchases and higher profitability. One key drawback of EDLP is that you may have to sacrifice profit margins. Margins may be thinner at Walmart but the overall sales volume is just so high that it more than makes up for the lost margin. However, it also requires Walmart to control costs across its business operations. How does Walmart Control Costs?Controlling prices requires cutting down operational costs and other expenses. The EDLC or Everyday Low Costs formula has helped Walmart control costs and pass on the benefits to the customers. Use of Bargaining Power: A large number of suppliers depend on Walmart for a significant part of their revenue. Walmart has a significant influence on the bottom lines of these companies. Using this influence, Walmart is able to press its suppliers to cut down costs. Many times suppliers, automate their processes or move production to countries like China where cheaper labor is available in order to bring costs down and maintain their relationship with Walmart. Lower Operational Costs: To keep prices for its customers low and generate a significant competitive advantage, Walmart has kept cutting down operational costs. However, that does not imply the company has sacrificed operational efficiency. Cutting down unwanted layers of operations and eliminating any wasteful processes has helped Walmart bring operating expenses under control. This has remained Walmart’s rule right since its foundation. The company keeps its overheads low. Apart from that Walmart has also focused on supply chain and logistics management in a manner that eliminates costs and wastage of time. A technologically advanced supply chain system, an efficient inventory management system and a well-managed distribution network that focuses on saving both time and money have also helped Walmart cut down inventory management costs. Direct Sourcing: Instead of buying from middlemen, Walmart sources products directly from the manufacturers. This has also helped Walmart eliminate unnecessary costs and since it buys in bulk, it can press them to cut down costs. High Sales Volume: Keeping prices low also means thinner profit margins. So, what makes up for the lost margin? The sheer high sales volume at Walmart helps overcome all the other weaknesses. The sales volume is just so high that even at lower margins, the company’s profit level is significantly high. The same would not be possible if Walmart chased higher profit margins. |
AuthorAbhijeet Pratap Archives
October 2021
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