"It is a lesson for every retailer. Unviable units should be shut down.

A pizza joint or a burger joint should realize that in a fast expanding market, they are not just competing with outlets which have similar interests but also with other kinds of food outlets as well. - Arvind Singhal, MD, KSA Technopak

Pavan Bhatias expansion plan for Dominos in India (1999) Strategies used :
o o o o o

Real estate outlets at corporate offices cinema halls college campus small towns

Innovate Strategies :
o IOC Tie-up o Jet Airways o Railway station

Expansion strategy was too ambitious Huge gap between projection and actual sales

Stress on company owned outlets for expansion

Huge back-end Infrastructure Cost Transportation Cost

Location of Outlets
Operation Cost Overheads

Unacceptable Pricing Low footfalls and consumption in small cities Nationwide advertising campaign Toll free number to order pizza Inaugurations by film stars

Move from Company owned outlets to Franchisee owned outlets Extensive research before launch in new areas Start up with a pilot launch

Spread out the expansion plan over a few years Advertising in areas where services are present Sound top level management

Focus on ones core business Efficient advertising can boost business

Analysis of real demand and projected demand

Co-ordination among top management is essential Efficient cash flow management