Choose a well-established company in Malaysia preferably listed company from the main or

second board or any other well-known international company. Discuss in detail the activities of

the company. Do the following:

1) Identify and explain the market structure in which the company is operating.

Domino’s Pizza is an USA restaurant chain and international franchise pizza Delivery

Corporation headquartered at the Domini Farms Office Park and the company are owned by

Domino’s Pizza cofounder Thomas and James Monaghan in Ann Arbor Charter Township,

Michigan, USA. Domino’s Pizza first franchise was at established in 1967 and first international

store was at 1983.

Domino’s Pizza competes in a monopolistic competition (Single seller with considerable control

over supply and prices), because they compete with many companies that sell similar product;

pizza. Domino’s Pizza is one of the largest Pizza chain in the world and Pizza Company in the

market, led by the Pizza Hut’s Company which own the biggest share in the market.

Domino’s Pizza mission aiming to be the leading pizza delivery company in the world, while

competing with other big player in the market which is Pizza Hut’s, Papa John Pizza’s, Pizza Inn

and Little Caesars.

2) Comment if there are barriers to entry.

Generally, fast-casual restaurants suffer from lack of switching costs, intense competition, and

low entry barriers. Domino `s pizza does not put a major entry barrier: If Domino `s pizza had

set a low price for their products, to have economies of scale, would have prevented other

participants may enter the market because they could not afford at that price. However, Little

Caesars took that putting its price to $ 79 and opted to open franchises in bulk, thus bringing the

product to customers and eliminating the dealers.

3) Identify its top five rivals company and comment on each portion of the market

share.

i. Pizza Huts

Has the highest rating among competitive company, pizza huts has more than 7,200

restaurant in USA and more than 5,600 restaurant internationally in more than 90

countries. In contrast to Domino’s, almost all Pizza Huts are dine-in restaurants. Pizza

huts serve pan pizza, as well as its thin n’ crispy, stuffed crust, hand tossed and

Sicilian. Other menu items include pasta, salads and sandwiches. Pizza Huts offer

dine-in service at its famous red roofed restaurants, as well as carryout and delivery

service. About 15 percent of all Pizza Huts are company-operated, whereas the

remaining stores are franchised.

ii. Papa John’s international, Inc

Papa John’s operates 3883 pizza restaurant with 3,225 of being franchisee-owned and

682 being company-owned stores. Papa John’s has restaurants in all 50 U.S states and

32 foreign markets. The company currently has 16,500 full time employees and

markets its pizza under the slogan “better ingredient”

iii. Hungry Howie's Pizza, Inc

Hungry Howie's Pizza, Inc. is the 11th largest pizza chain in the United States, with

575 locations. Its products include pizza, calzone-style subs, chicken wings and

tenders, bread, and salads. The corporation headquarters is located in Madison

Heights, Michigan in Metro Detroit. James Hearn opened the first Hungry Howie's on

Telegraph Road in Taylor, Michigan in 1973. Howies soon became a popular hangout

for students at nearby Taylor Jr. High and Taylor Center High Schools. Jim Hearn

decided to franchise their operation in 1982 and partnered with Jackson. They

awarded their first franchise the following year. Between 1974 and 1982, there were

several other independently owned Hungry Howie pizzarias opened in the Metro-

Detroit and Ann Arbor areas prior to franchisee sales. Within the first three years, the

company franchised 65 locations, and by 1990 the number had grown to 160. In

2005, the company opened its 500th store

iv. Pizza Inn

Pizza Inn is an American restaurant chain and international food franchise,

specializing in American-style pizza and side dishes. The company is based in the

Dallas suburb of The Colony, Texas. In 1958, two Texas brothers, Joe and R. L.

Spillman. Opened the first Pizza Inn across from Southern Methodist University in

Dallas.

In the mid-80's, the restaurant chain had a commercial deal with the Von Erich

family, icons in Texas at the time, with Kerry Von Erich, Kevin Von Erich and Mike

Von Erich appearing in a series of televised commercials.

On June 3, 2011 Pizza Inn launched a new sister restaurant in Fort Worth, Texas,

known as Pie Five Pizza, that specializes in handcrafted pizzas ready in five minutes

v. Little Caesars

Little Caesars is the third largest pizza chain in the United States. The Little Caesars

headquarters is located in the Fox Theatre building in Downtown Detroit, Michigan.

The company is famous for its advertising catchphrase, "Pizza! Pizza!" which was

introduced in 1979. The phrase refers to two pizzas being offered for the comparable

price of a single pizza from competitors.

4) Comment in detail on each company strategy.

Pizza Hut’s Strategy

Total market strategy:

Pizza Hut started with a single product i.e. Pizza but with different segments emerging and the

degree of competition increasing, it diversified into several products to serve different segments.

It came up with chicken nuggets, wedges, garlic bread, smiley etc.

International marketing strategy:

Pizza Hut started with local market strategy in Kansas, USA then moved on to regional markets

in and across USA. In 1968, Pizza Hut started its international movement by opening its 1st

restaurant in Canada. And today Pizza Hut is world’s largest pizza chain with its presence in

more than 100 countries.

Early Entry Strategy:

Though Pizza Hut was not the first entrants in the pizza market in USA. But Pizza Hut followed

an early entrant strategy. Customers knew what a pizza is but still there was huge potential to

tap. In order to become a leader, pizza hut continued to refine their product & develop new

product to suit their customer’s changing tastes. Ultimately Pizza Hut with its superior

promotion, manufacturing and distribution activities has turned out to be the “winner”.

Strong Commitment Strategy:

Pizza Hut has been operating in the pizza market by realizing all economies of scale in

promotion, distribution and manufacturing facilities. If Papa Johns or Little Caesars come out

with a new competitive pricing strategy or innovative product, then Pizza Hut quite aggressively

fights back by bringing more competitive prices or better innovations in product category. In

simple words, Pizza Hut takes all possible measures to defend its leadership position in the

market.

https://www.scribd.com/doc/53436740/Marketing-Strategy-of-Pizza-Hut#logout

Hungry Howie Strategy

Steve Jackson, who delivered pizza for that very first location, joined forces with Hearn to open

the second location in 1976, and the pair began franchising Hungry Howie's Pizza in 1982.

Today, there are 575 units open in 22 states, and Jackson is president of the company. The

business is focused on carry-out and delivery and is known as the home of "Flavored Crust

Pizza."

Since Hungry Howie's has 20-, 30- and 40-year-old locations, it's safe to say the product is a

proven winner. But having a 40-year tradition brings special challenges, too. To grow, it is

essential to constantly refresh the brand. To compete with the big national chains for a larger

market share, Jackson and his team developed a holistic growth strategy focused on getting and

keeping more customers. The effort includes a new store prototype that has a fresh,

contemporary look and feel. As new locations open and existing units convert to the new look,

the company's national ad fund is committed to aggressive marketing to increase positive

awareness and ultimately drive more traffic, more trial, and more sales.

The plan has to be customized by market because Hungry Howie's has heavy concentration in

Michigan and Florida, where broadcast makes sense, but that mode of marketing is not feasible

across all markets in 22 states. Where broadcast marketing makes sense, Hungry Howie's aims to

connect with the female consumer who is typically making the buying decisions for her family.

They've developed TV ads with a funny, quirky "Hungry Howie's Ad Agency" and bought high-

visibility TV programming during "The Voice," "Modern Family," and even the Super Bowl.

In emerging or less mature markets, the company is committed to "brutally defending" the

mailbox with very targeted direct mail promotions that consistently build the brand and sell the

goods. Couponing is a fact of life in the world of pizza, and the company goes head-to-head with

the big chains. Howie's competes by leveraging its differentiated product with distinctive

creative materials, delivered when it matters most to their target customers.

http://www.franchising.com/articles/

case_study_hungry_howies_marketing_and_branding_strategy_at_40.html

Pizza Inn Strategy

This section describes the five-year marketing and product objectives for Pizza Inn Inc. and the

target markets, points of difference, and positioning of its lines of pizza Inn stores.

Marketing and product objectives

Pizza Inn Inc’s marketing intent is to take full advantage of its expansion and unique taste

potential in order to expand its already set customer base and to increase profits. These are

detailed in four areas below:

•Current Markets. Current markets will be expanded by increasing the amount of marketing

done in each area, which will incorporate the unique qualities that Pizza Inn has and its

willingness to bend to consumer’s wants and needs. This will encourage repeat purchases at the

stores and will decrease the need for new locations.

•New Markets. By the end of Year 5, the increase in the marketing program and the expansion

into new customer bases by restaurant construction will make Pizza Inn a more competitive

corporation, rivaling Little Caesars and Papa Johns.

•Food service. Food service sales will include all of the kinds of pizza and buffet items that

Pizza Inn offers. Sales are expected to rebound from the negative growth to reach previous year

highs of $59.9 million.

•New products. Pizza Inn’s presence in the pizza market is expected to expand through

extensive marketing and expansion programs in order to move into more states and regions.

New flavors and pizza combinations are continually being tested and introduced to the market,

which will also help expansion.

cdolan3.asp.radford.edu/final1.doc

Papa John’s Strategy

Papa john is to build the strongest brand loyalty of all pizza restaurants. The key elements of

strategy include:

Menu.

Domestic Papa John’s restaurants offer a menu of high-quality pizza along with side items,

including breadsticks, cheese sticks, chicken strips and wings, dessert items and canned or

bottled beverages. Papa John’s traditional crust pizza is prepared using fresh dough (never

frozen). Papa John’s pizzas are made from a proprietary blend of wheat flour, cheese made from

100% real mozzarella, fresh-packed pizza sauce made from vine-ripened tomatoes (not from

concentrate) and a proprietary mix of savory spices, and a choice of high-quality meat (100%

beef, pork and chicken with no fillers) and vegetable toppings. Domestically, all ingredients and

toppings can be purchased from their Quality Control Center (“QC Center”) system, which

delivers to individual restaurants twice weekly. Internationally, the menu may be more diverse

than in their domestic operations to meet local tastes and customs.

Efficient Operating System.

They believe their operating and distribution systems, restaurant layout and designated delivery

areas result in lower restaurant operating costs and improved food quality, and promote superior

customer service. Their domestic QC Center system takes advantage of volume purchasing of

food and supplies, and provides consistency and efficiencies of scale in fresh dough production.

This eliminates the need for each restaurant to order food from multiple vendors and commit

substantial labor and other resources to dough preparation.

Commitment to Team Member Training and Development. They are committed to the

development and motivation of their team members through training programs, incentive

compensation and opportunities for advancement. Team member training programs are

conducted for corporate team members, and offered to their franchisees at training locations

across the United States and internationally. They offer performance-based financial incentives

to corporate and restaurant team members at various levels.

http://www.wikinvest.com/stock/Papa_John's_International_(PZZA)/Strategy

Little Caesar Strategy

Little Caesars’ main marketing objective is to be the best take-home pizza chain by exceeding

customer expectations with extraordinary value, great tasting products, and outstanding people

while providing strong returns to its stakeholders. These are detailed in four areas below:

• Current Markets. Currently there are approximately 4,500 delivery-carryout units located

throughout the United States. Within the locations in the United States, four of them are located

within 12 miles of Radford University. However, The chain’s true store count or gross sales

numbers much less same-store sales numbers have never been discussed publicly except for

some rare and veiled revelations carefully doled out over the past two years. The chain was

named best pizza chain in 4 out of 12 customer satisfaction attributes: value for money, speed of

service, convenience of locations and overall appeal to kids. Little Caesars also was ranked in the

top three of 58 quick- service chain rated on 12 key quality attributes.

• New Markets. The chain announced its plans to add “hundreds of franchisees over the next

several years and add hundreds of stores worldwide in 2006. While maintaining its focus on

domestic unit growth. Little Caesars Pizza wants to continue to increase sales growth, consumer

acceptance, and to attract new franchisees. Eighty percent of all existing units are franchised, and

Little Caesars is looking to expand into untapped markets through area development agreements

and single unit operators dedicated to strong local marketing

• Current Products. Little Caesars Pizza sells various toppings on different types of pizzas such

as deep dish, Baby Pan! Pan!, and original round pizza. It also sell side items such as break

sticks, cheese bread, various flavors of wings, and salads with different types of dressings. Little

Caesars even have various sandwiches such as Italian, ham with cheese and tuna.

• New Products. Little Caesars Pizza’s newest market strategy is a $5.00 "Hot-N-Ready" pizza

promotion introduced to compete with other companies in its industry. The pizza chain hopes the

competitive pricing and an original format of pick-up your own fresh, hot, large cheese or

pepperoni pizza anytime for $5.00 are the advantages needed when planning a global expansion.

Since Little Caesars is in the fast-food pizza industry it is in its mature stage, it is experiencing

fierce price competition among many pizza restaurants such as Dominos and Pizza Hut.

http://jhu4.asp.radford.edu/porfoliopages/Portfolio/MKTG%20Plan.pdf

5) Is there a market leader? If so is the company is in a threatening or save position?

McDonald (Market Leader of the Fast Food Restaurant)

Market leader in fast food restaurant nowadays for our information is McDonald Company

because the statistic showed the percentage rate in Fast food restaurant is more to McDonald get

the highest consumer start from that company was established. The McDonald's Corporation is

the world's largest chain of hamburger fast food restaurants, serving around 68 million customers

daily in 119 countries across 35,000 outlets. Headquartered in the United States, the company

began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948,

they reorganized their business as a hamburger stand using production line principles.

Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently

purchased the chain from the McDonald brothers and oversaw its worldwide growth.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the actual corporation

itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the

franchisees, as well as sales in company-operated restaurants. In 2012, the company had annual

revenues of $27.5 billion and profits of $5.5 billion. According to a 2012 BBC report,

McDonald's is the world's second largest private employer—behind Walmart—with 1.9 million

employees, 1.5 million of whom work for franchises.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items,

soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has

expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.

The business began in 1940, with a restaurant opened by brothers Richard and Maurice

McDonald at 1398 North E Street at West 14th Street in San Bernardino, California (at

34.1255°N 117.2946°W). Their introduction of the "Speedee Service System" in 1948 furthered

the principles of the modern fast-food restaurant that the White Castle hamburger chain had

already put into practice more than two decades earlier. The original mascot of McDonald's was

a man with a chef's hat on top of a hamburger-shaped head whose name was "Speedee". By

1967, Speedee was eventually replaced with Ronald McDonald when the company first filed a

U.S. trademark on a clown-shaped man having puffed-out costume legs.

On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the

description "Drive-In Restaurant Services", which continues to be renewed through the end of

December 2009. On September 13 that same year, the company filed a logo trademark on an

overlapping, double-arched "M" symbol. By September 6, 1962, this M-symbol was temporarily

disfavored, when a trademark was filed for a single arch, shaped over many of the early

McDonald's restaurants in the early years. Although the "Golden Arches" logo appeared in

various forms, the present version as a letter "M" did not appear until November 18, 1968, when

the company applied for a U.S. trademark.

The present corporation dates it’s founding to the opening of a franchised restaurant by Czech

American businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth

McDonald's restaurant overall; this location was demolished in 1984 after many remodels. Kroc

later purchased the McDonald brothers' equity in the company and led its worldwide expansion,

and the company became listed on the public stock markets ten years later. Kroc was also noted

for aggressive business practices, compelling the McDonald brothers to leave the fast-food

industry. Kroc and the McDonald brothers all feuded over control of the business, as documented

in both Kroc's autobiography and in the McDonald brothers' autobiography. The San Bernardino

restaurant was demolished in 1976 (1971, according to Juan Pollo) and the site was sold to the

Juan Pollo restaurant chain. This area now serves as headquarters for the Juan Pollo chain, as

well as a McDonald's and Route 66 museum. With the expansion of McDonald's into many

international markets, the company has become a symbol of globalization and the spread of the

American way of life. Its prominence has also made it a frequent topic of public debates about

obesity, corporate ethics and consumer responsibility.

Domino’s Pizza (How they save their Profit and save position)

After doubling sales and earnings over the last few years, Domino's Pizza is chasing a bigger

share of the $11 billion fast-food market by taking sales from fried chicken outlets and drive-

through outlets like McDonalds and Hungry Jacks. Not content with his market-leading 25 per

cent share of the Australian pizza market and a runner-up position in Japan, Domino's chief

executive Don Meij is going after consumers who would rather snack on KFC's Original Recipe

chicken or a McDonalds' Big Mac than a Cheesy Crust Meat Lovers or Thin 'n Crispy

margherita."Whilst we are big in pizza we are only 8 per cent of fast-food retail in Australia," Mr

Meij told Fairfax Media after reporting a better than expected 44 per cent increase in first half

profit and upgrading his full-year growth forecasts. “When it's a big part of the economy and we

are still a small proportion of the market we think there's still lots of scope to grow," he said.

Domino's has no plans to open drive-through outlets or branch into fried chicken or burgers.

Rather, it plans to tap into the consumer attributes that drive consumption of these products,

including the desire for instant gratification, by offering faster and easier ordering and delivery,

cheaper menus and new toppings and crusts."The behaviour that drives the drive-through

customer we want to shift to us," said Mr Meij, who plans to unveil more details in six months.

"We are chasing the consumer that buys that product."In the meantime, Domino's is rolling out

GPS tracking, which enables customers to track pizza deliveries on their smart phones, watches

and TVs, as well as faster online and mobile phone ordering and deliveries using electric "e-

bike" bicycles.In Japan, Domino's is now the second largest player in the pizza market and

expects to be number one by the end of the year after opening new stores and formats, relocating

older stores and introducing new toppings and crusts.

Domino's first-half net profit jumped 44.2 per cent to $29.1 million, fuelled by healthy demand

for pizza in Australia, New Zealand and Japan and a long-awaited rebound in sales in Europe.

Revenue soared 29.5 per cent to $343.6 million and network sales rose 24.2 per cent to $715.4

million as a record 92 new stores augmented 9 per cent same-store sales growth. Mr Meij

attributed the gains to management changes in Europe, the acquisition of 75 per cent of the

Domino's master franchise in Japan almost two years ago, the use of technology to drive

demand, and new products such as lime and chilli pulled pork pizzas in Australia and goats

cheese toppings in France and Belgium.

In Australia, same-store sales rose at the fastest rate in four years after Domino's introduced a

new $4.95 Cheaper Everyday menu and Pizza Mogul, which allows customers to customise

pizzas online and market their creations through social networks, taking a share of the profit of

the pizzas they sell. Mr Meij said sales growth had accelerated in the first six weeks of the

current half - particularly in Japan - and margins had fattened across the board as Domino's

gained scale, prompting the company to upgrade full year profit forecasts for the second time in

six months. He now expects the group to lift full-year net profit by around 32.5 per cent and

earnings before interest, tax, depreciation and amortisation by about 30 per cent, compared with

previous guidance of 25 per cent, taking two-year EBITDA growth to 125 per cent.

Same-store sales are expected to rise 6 per cent to 8 per cent, from earlier forecasts of 4 per cent

to 6 per cent, and Domino's will open between 180 and 200 stores across the globe, compared

with 132 in 2014. "Regardless of the economic environment ... we still have strategies that are

able to drive sales and profit growth," Mr Meij said. Domino's shares jumped 22 per cent to a

record $33.35 before closing at $32.05 and are now almost double their value 12 months ago.

"They continue to run the business really well and continue to beat expectations," said Hyperion

Asset Management chief investment officer Mark Arnold. "It looks like Europe has the potential

to be substantially bigger than the Australian business over the longer term - it means that the

intrinsic value of the business is a lot higher than the current share price," Mr Arnold said.

Domino's increased its interim dividend to 24.6¢ a share from 17.7¢, payable on March 10.