MARKETING STRATEGIES OF DOMINOS

PRESENTED BY:KAAMIL CHOPRA

RAHUL RAWATSANCHIT KUKREJASAHIBA KHURANASHIVANK SAXENA

ACKNOWLEDGEMENTThis project is a group effort of all the members. Everyone has played an equal role in completion of the project. We would like to thank our teacher Mrs Pratibha Verma for her eminent help and guidance. We would like to further mention that this an original work based on research and newspaper articles.

CONTENTS• INTRODUCTION• HISTORY• COMPANY’S PROFILE• MISSION• SWOT ANALYSIS• SMART MARKETING• PRICE DISCRIMINATION AND DISCOUNTING• TARGETTING• OUT OF DOOR TIME• ONLINE SEVICES• RECOMMENDATIONS• CONCLUSION• REFERENCES

INTRODUCTION The pizza industry is a highly competitive and

mature market. There are many pizza makers ranging from local pizzerias to international franchises such as Domino’s and Pizza Hut. With the current health kick in today’s society as well as economic downturn, many companies are being forced to make healthier, cheaper products. Many other companies are introducing salads into their menu. The popularity of the Internet as well as mobile commerce is transforming the original ways of ordering a pizza.

Let’s discuss it’s HISTORY

• In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza store in Michigan.

• In 1965, Monaghan renamed the business Domino's Pizza, Inc. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti.

• The company logo was originally planned to add a new dot with the addition of every new store, but this idea quickly faded, as Domino's experienced rapid growth.

• The three dots represent the stores that were open in 1969. Reflecting Domino's growth, the company had expanded to 200 stores by 1978.

COMPANY’S PROFILE : DOMINOS

• Domino’s Pizza, Inc. (Domino’s) is a pizza delivery company in the United States.

• As of January 1, 2012, it operated through a network of 9,742 Company-owned and franchise stores, located in all 50 states and in more than 70 international markets

• Their Domino's pizza stores in India are generally located in neighbourhood markets in urban areas. They also operate pizza stores located in food courts in shopping malls and in institutional campuses.

• Currently, there are 411 Domino's stores in India and plans are afoot to expand the brand’s footprint further into the Indian heartland.

MISSION

“Exceptional people on a mission to be the best pizza delivery company in the world”

SWOT-ANALYSIS

• Domino’s is a very recognizable brand name throughout the world and is the leader in the pizza delivery and takeout business. Domino’s continues to operate throughout the United States as well as in over 55 other countries.

STRENGTHS

Large number of outlets even in small cities and towns.

Home delivery service within 30 minutes

Quick service at outlets

Costumer Satisfaction

Low price

Provision of offers and discount coupons

WEAKNESS

Lack of variety

Outlets lack space

Ambience is not upto expectation

No option for birthday parties and corporate lunch

OPPORTUNITYGrowing fast food chain –scope of expansion

Take away counters

Ambience can be worked upon

Large variety of food items

THREATS

Large number of competitors which includes:

• Pizza Hut• Café coffee day• Papa John’s pizza • Subway• Mc Donald’s• Barista

No take away counters

SMART MARKETING

• Four and a half per cent of the turnover of each Dominos franchise store goes into a fund used for national marketing of the Dominos brand . The marketing fund is used to develop high-profile communications such as the sponsorship of Britain’s Got Talent, The Simpsons and the X-Factor.

• Television advertising remains the drug of choice for most fast-food businesses although Dominos has also joined the flood of companies seeking to establish and build an effective social media presence through Facebook, Four Square and other social network sites. A case in point is that a Domino’s iPhone app already delivers 3-4% of online sales.

PRICE DISCRIMINATION AND DISCOUNTING

• Price discrimination has been successful for the business. The Two for Tuesday promotion has been so effective.

Price discounting is the mid week help to smooth the pronounced ups and downs of daily sales during a normal week.

These techniques generate extra revenue and grows volumes – all helpful to franchisees with large fixed overhead costs.

Four Cs vs. Four Psof Marketing Mix

CustomerSolution

Cost

Convenience

Communication

Four Cs

Product

Place

Four Ps

Domino’s Pizza has leveraged

the four Cs or Consumer’s Viewpoint

in every new product and promotion.

Most companies concentrate on

the four Ps that are the cornerstone of many marketing

strategies

DOMINOS TARGETS CORE GROUPS OF CONSUMERS

• They have sponsored the setting up of Pizza Societies at numerous universities in India.

• Pizza eating is less popular among people aged 55 and over, but younger generations have become used to the Dominos model, the commercial opportunities are sizeable from these age groups.

“OUT OF THE DOOR TIME”• Dominos focuses a metric known as “out of

the door time” – the time it takes between new orders being placed online or in store and the ready to eat pizza leaving the store en route to the customer.

• Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order or they would receive the pizzas free.

• In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza Voucher".

• In India, the guarantee is valid for an order of less than 4 pizzas.

ONLINE SERVICES-A STEP AHEAD

• Domino’s not only relies on call-ins and walk-ins, but also utilizes the Internet to help their sales.

• Domino’s website even offers coupons or special deals on specific menu items that continually attract more customers. Domino’s offers various types of pizzas, along with many styles of crusts.

Gains Made By Domino’s

Domino’s has made gains in three key measures:1. Penetration i.e. the percentage of all

households2. The frequency with which a customer re-

orders3. The average value on the receipt ticket from

each order

Recommendations-Short Term• Within the short term, Domino’s should

focus on making more coupons available to their customers.

• They could also offer specials for limited time. This would help combat their tough competition as well as their declining sales.

• The company can also focus on improving their online ordering procedures. In addition, Domino’s could also improve their strategies of pizza delivery.

• In the long run, Domino’s should focus on improving their customer

• base, which would increase their market share. They could also look into making new products specific to the location of the store as well as adding more variety to their menus with the changes in tastes and preferences of their customers. 

CONCLUSION• Dominos, the second largest pizza chain in the world

is a customer's satisfaction oriented firm and not a profit oriented because of this they have been able to grow in the market so well.

• Domino's strongly believes that their relationships with customers is a two way relationship i.e. - people want to give feedback and they expect to be listened to if they are not listened the brand will fail.

• Domino's not only believes in providing their customers with good food but also by providing them with perks like free coupons , delivery within 30 minutes or the pizza would be free , providing the pizza in store within 15 minutes.