Domino’s Pizza current Growth Strategy.

Dominos currently uses differentiated targeting strategy to serve the

market based on the taste and preferences. It segments its offering
based on demographic and geographic factors. It provides separate
offering to each different market segments it targets. So, from Ansoff
Matrix reference Dominos currently Uses the DIVERSIFICATION and
Format development as it targets existing customers segments with
their new product and expands geographically. For example, before
entering in India Dominos localized its menu as it understood the
sentiments of its customers as cow is considered sacred, so Dominos
replaced pepperoni, beef toppings with spicy chicken sausages
topping.

Dominos uses this strategy to remain competent, innovative, and

competitive and therefore remaining relevant for the consumer
market.
Let us discuss now how the other growth strategies i.e market
penetration and format development will benefit Domino’s to
capture more customers and hence with business growth.

MARKET PENETRATION

The market penetration strategy is used by businesses that seek

growth for existing products in markets where their brands are
existing, and already operational.

1. Increase production capacity

 Increased production capacity will allow Domino’s Pizza to

reach more customers within the same market.
 Increased production capacity would also lead to more
efficiency and effectiveness – especially for controlling
overhead costs.

2. Increased marketing investment.

 The Domino’s Pizza can also increase its investment in

marketing and advertising activities to increase market
penetration.
 The Domino’s Pizza should try to develop and design engaging
communication content that is relevant to its various market
groups.
 Engaging communication and investment in marketing
activities, and advertising will allow the Domino’s Pizza to reach
more consumers within the same market.

3. Competitive pricing
  The Domino’s Pizza may introduce competitive pricing and
price cuts to increase the appeal of its products
 Competitive pricing will be a source of competitive advantage
for the company, and will lead to enhanced consumer
engagement with the product.

4. Partnerships and joint ventures

 Joint ventures and partnerships can provide the Domino’s Pizza

with guided means of increasing penetration in existing
markets.
 These can be players belonging to similar industry, or even
different industries

5. New product benefits and features

 The Domino’s Pizza can identify new features and

characteristics in existing products for existing markets.
 Consumers should also be made aware of these new and
innovative usage patterns and consumptions ways of
the Domino’s Pizza products by the company.
 Increased marketing and communication of new product use
and benefits, along with characteristics and features will lead to
increased consumption in existing consumer groups and
segments, as well as in new consumer segments and groups.

MARKET DEVELOPMENT

When a company seeks to expand business growth in existing

markets through new products, it is termed as market development.
The Domino’s Pizza drives product development in different ways.

1. Modifications to existing products

 The Domino’s Pizza can introduce modifications and
improvements in existing products to offer consumers new and
enhanced offerings.
 This will lead to increased sales and consumption of the
product.

2. Launch new products

 The Domino’s Pizza also often engages in R&D activities to

understand and identify new points of consumer demand.
 The company then undergoes a NPD process, and develops and
launches new products in the market for consumers.
 This increases the breadth of the company’s reach, and also
allows Domino’s Pizza to penetrate new market segments.

3. Research and development

 Domino’s Pizza regularly invests in research and development –

especially pertaining towards understanding market trends and
consumer behaviour.
 Investment in R&D has allowed the Domino’s Pizza to remain
competitive through innovation and creativity – in product
launches as well as other functional areas such as marketing,
operations and finances.

4. Product quality

 The company can also engage in new product development

through introducing different quality products in the same
market
 This will allow the Domino’s Pizza to penetrate new market and
consumer segments, as well as target new consumer groups
5. Brand awareness
 Increased brand awareness for the Domino’s Pizza also leads to
increased brand recall – which is important for purchase
decisions.

6. Regional expansion
 The Domino’s Pizza can expand regionally. This will include
expansion locally to different cities, or within the same
geographic region
 Regional expansion should also take into consideration any
cultural differences that will need to be accommodated in the
expansion process in terms of marketing or product
modifications and consumption methods.

RECOMMENDATIONS

 The main hurdle for Domino's in targeting new market with

existing product is limited range of Delivery.
 So ultimately where Domino's cannot deliver, Consumers opt to
order Pizzas from another sources. So, in order to cater those
deprived market, Dominos should either open more small
outlets in those areas or acquire or Invest much in innovation
and make any kind of container/Box which can maintain
food/pizza quality for longer period of time. So, according to
our understanding D omino’s should go first for market
penetration and then for market development.