PROJECT REPORT

M.Com IV Sem – Marketing Management

(Session 2020-21)

THE BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted To Submitted By

Dr. Amrita Sahu Diksha Pathak

Associate Professor Roll No.- 191634

Department of Commerce M.Com IV Sem

 CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Marketing Analysis on Dominos”
is a bonafide work of Diksha Pathak enrolment number R165961050076 undertaken for the
partial fulfilment of Masters in Commerce (M. Com) degree of Barkatullah University under
my guidance. This project work is original and has not been submitted earlier for the award of
any degree or diploma of any other University or Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I Diksha Pathak, daughter of Mr. Kirti Pathak certifies that the project report entitled
“Marketing Analysis on Dominos” prepared by me is my personal and authentic work under
the guidance of Dr. Amrita Sahu, Associate Professor, Department of Commerce.

Date: 15/06/2021 Signature of the Student

Place: BHOPAL Name: Diksha Pathak

Class: M.COM (IV SEMESTER)

Roll Number: 19103015

INTRODUCTION:

Domino's is the largest pizza restaurant chain in the world based on global retail sales, with
more than 17,800 stores in over 90 markets. Founded in 1960, our roots are in convenient pizza
delivery, while a significant amount of their sales also come from carryout customers. Although
they are a highly-recognized global brand, they focus on serving the local neighborhoods in
which they live and do business through their large network of franchise owners and Company-
owned stores. On average, they sell more than 3 million pizzas each day throughout our global
system.

The business model is straightforward: we handcraft and serve quality food at a competitive
price, with easy ordering access and efficient service which are aided by the technology
innovations. Our dough is generally made fresh and distributed to stores around the world by
us and the franchisees.

Domino's generates revenues and earnings by charging royalties to its franchisees. Royalties
are ongoing percent-of-sales fees for use of the Domino's brand marks. The Company also
generates revenues and earnings by selling food, equipment and supplies to franchisees
primarily in the U.S. and Canada, and by operating a number of our own stores. Franchisees
profit by selling pizza and other complementary items to their local customers. In the
international markets, they generally grant geographical rights to the Domino's Pizza® brand
to master franchisees. These master franchisees also profit by running pizza stores, and often
by sub-franchising and selling ingredients and equipment to those sub-franchisees. Everyone
in the system can benefit, including the end consumer, who can feed their family Domino's
menu items conveniently and economically.

The business model can yield strong returns for the franchise owners and Company-owned
stores. It can also yield significant cash flow to us, through a consistent franchise royalty
payment and supply chain revenue stream and with moderate capital expenditures. Dominos
have historically returned cash to shareholders through dividend payments and share buybacks
since becoming a publicly traded company.

Domino's Pizza, Inc.

Headquarters in Ann Arbor, Michigan

Type Public

Traded as • NYSE: DPZ

• S&P 500 component
ISIN US25754A2015
Industry • Food delivery
• Franchising
• Restaurants
Founded December 9, 1960; 60 years ago in Ypsilanti, Michigan, U.S.

Founders • James Monaghan

• Tom Monaghan
• Dominick DeVarti
Headquarters Domino's Farms Office Park,
Ann Arbor, Michigan
,
U.S.
Number of 17,000[1]
locations
Area served Worldwide
Key people David A. Brandon
(Chairman)
Richard Allison
(CEO)
Products • Chicken wings
• Dessert
• Pasta
• Pizza
• Submarine sandwiches
Revenue US$4.117 billion (FY 2020)
Operating income US$725.6 million (FY2020)
Net income US$491.296 million (FY2020)
Total assets US$1.567 billion (2020)

Total equity -US$3.3 billion (2020)

Number of ~14,400 (2020)
employees (company-owned stores & offices)
~290,000 (FY January 1, 2017)
(including franchises)
Website dominos.com

HISTORY OF COMPANY:

In 1960, Tom Monaghan and his brother, James, took over the operation of DomiNick's, an
existing location of a small pizza restaurant chain that had been owned by Dominick DeVarti,
at 507 Cross Street (now 301 West Cross Street) in Ypsilanti, Michigan, near Eastern Michigan
University. The deal was secured by a $500 down payment, then the brothers borrowed $900
to pay for the store. The brothers planned to split the work hours evenly, but James did not
want to quit his job as a full-time postman to keep up with the demands of the new business.
Within eight months, James traded his half of the business to Tom for the Volkswagen
Beetle they used for pizza deliveries.
By 1965, Tom Monaghan had purchased two additional pizzerias; he now had a total of three
locations in the same county. Monaghan wanted the stores to share the same branding, but the
original owner forbade him from using the DomiNick's name. One day, an employee, Jim
Kennedy, returned from a pizza delivery and suggested the name "Domino's". Monaghan
immediately loved the idea and officially renamed the business Domino's Pizza, Inc. in 1965.
The company logo originally had three dots, representing the three stores in 1965. Monaghan
planned to add a new dot with the addition of every new store, but this idea quickly faded, as
Domino's experienced rapid growth. Domino's Pizza opened its first franchise location in
1967 and by 1978, the company had expanded to 200 stores. In 1975, Domino's faced a lawsuit
by Amstar Corporation, the maker of Domino Sugar, alleging trademark infringement and
unfair competition. On May 2, 1980, the Fifth Circuit Court of Appeals in New Orleans found
in favor of Domino's Pizza.
In 1998, after 38 years of ownership, Domino's founder Tom Monaghan announced his
retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and ceased
being involved in day-to-day operations of the company. A year later, the company
named Dave Brandon as its CEO.

FRANCHISES:

Domino's Pizza, as of September 2018, has locations in the United States (including the District
of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands), in 83 other countries, including
overseas territories such as the Cayman Islands and states with limited recognition such
as Kosovo and Northern Cyprus. It has its stores in 5,701 cities worldwide (2,900 international
and 2,800 in the U.S.) In 2016, Domino's opened its 1,000th store in India.As of the first quarter
of 2018, Domino's had approximately 15,000 stores, with 5,649 in the U.S., 1,232 in India, and
1,094 in the U.K.
In most cases, Domino's has master franchise agreements with one company per country, but
three companies have acquired multiple master franchise agreements, covering multiple
countries:

• The rights to own, operate, and franchise branches of the chain in Australia,
Denmark, New Zealand, France, Belgium, the Netherlands, and Monaco are
currently owned by Australian Domino's Pizza Enterprises, having bought
the master franchises from the parent company in 1993 (Australian and New
Zealand franchises) and 2006 (European franchises).
• The master franchises for the UK and Ireland were purchased in 1993 by the British
publicly listed Domino's Pizza Group (DPG), which acquired the master franchise
for Germany in 2011 and Switzerland, Liechtenstein, and Luxembourg in August
2012 by buying the Swiss master franchise holder, with an option to acquire the
Austrian master franchise as well. DPG opened its first Swedish location near the
Mobilia shopping mall in Malmö in December 2016; three years later, in 2019, they
announced however that they would sell all their current business in the country.
 • The master franchises for India, Nepal, and Sri Lanka are currently owned by the
Indian company Jubilant FoodWorks. India is the largest international market for
Domino's outside its home market, being the only country to have over 1,000
Domino's outlets. The company operates 1,232 stores across 264 Indian cities as of
2018.
• In Bangladesh, the franchises for Domino's Pizza are co-owned by Jubilant
FoodWorks and Golden Harvest Limited forming 'Domino's Pizza Bangladesh
Limited'. In this entity, Jubilant FoodWorks is the majority shareholder and owns
51% of the company, while the rest of the share is owned by Golden Harvest
Limited. The first store in Bangladesh opened in February 2019.
• As of July 27, 2020, Domino's Pizza opened in downtown Zagreb, Croatia.

PRODUCTS:

The Domino's menu varies by region. The current Domino's menu in the United States features
a variety of Italian-American main and side dishes. Pizza is the primary focus, with traditional,
specialty, and custom pizzas available in a variety of crust styles and toppings. In 2011,
Domino's launched artisan-style pizzas. Additional entrees include pasta, bread bowls,
and oven-baked sandwiches. The menu offers chicken and bread sides, as well as beverages
and desserts.
From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative
to other fast food restaurants, to ensure efficiency of delivery. Historically, Domino's menu
consisted solely of one style of pizza crust in two sizes (12-inch and 16-inch), 11 toppings, and
Coca-Cola as the only soft drink option.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish or pan pizza.
Its introduction followed market research showing that 40% of pizza customers preferred thick
crusts. The new product launch cost approximately $25 million, of which $15 million was
spent on new sheet metal pans with perforated bottoms.Domino's started testing extra-large
size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".
Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken
Kickers, as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat
fillets, similar to chicken fingers, are packaged in a custom-designed box with two types of
sauce to "heat up" and "cool down" the chicken.
In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese
Steak Pizza. The product launch also marked the beginning of a partnership with the National
Cattlemen's Beef Association, whose beef Check-Off logo appeared in related
advertising. Domino's continued its move toward specialty pizzas in 2006, with the
introduction of its Brooklyn Style Pizza, featuring a thinner crust, cornmeal baked in to add
crispness, and larger slices that could be folded in the style of traditional New York-style pizza.
In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked
sandwiches in four styles, intended to compete with Subway's toasted submarine sandwiches.
Early marketing for the sandwiches made varied references to its competition, such as offering
free sandwiches to customers named "Jared," a reference to Subway's spokesman of the same
name.
The company introduced its American Legends line of specialty pizzas in 2009, featuring 40%
more cheese than the company's regular pizzas, along with a greater variety of toppings. That
same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned bread bowl
baked with pasta inside, and the Lava Crunch Cake dessert, composed of a crunchy chocolate
shell filled with warm fudge. Domino's promoted the dessert by flying in 1,000 cakes to deliver
at Hoffstadt Bluffs Visitor Center near Mount St. Helens in Washington state.
In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from
the crust up", making significant changes in the dough, sauce, and cheese used in their
pizzas.Their advertising campaign admitted to earlier problems with the public perception of
Domino's product due to taste issues.
In September 2012, Domino's announced it was going to roll out a pan pizza on September 24,
2012. Following this move, the Deep Dish pizza was discontinued after 23 years of being on
the menu.
In December 2013, Domino's Pizza in Israel unveiled its first vegan pizza, which uses a soy-
based cheese substitute supplied by the UK company VBites.
After a stock low point in late 2009, the company's stock had risen 700 percent in the five years
preceding February 2016.

OBJECTIVES OF ANALYSIS:
This Project work has certain objectives behind it. Without any proper objective one cannotplan
its implementation.

Founded in 1960, Domino’s is the leading Pizza Company of the world with more than 10,800
Company owned & franchised outlets. With its presence across 5 continents covering more
than 70 countries it has garnered a market leader position specifically in the Pizza market. Its
low cost infrastructure investment & franchisee owned business model is making their business
more viable than the competitors.

The objectives of the analysis are:

• Segmentation, targeting, positioning in the Marketing strategy of DOMINOS

• Competitive advantage in the Marketing strategy of DOMINOS

• BCG Matrix in the Marketing strategy of DOMINOS

• Distribution strategy in the Marketing strategy of DOMINOS

• Brand equity in the Marketing strategy of DOMINOS

• Competitive analysis in the Marketing strategy of DOMINOS

• Market analysis in the Marketing strategy of DOMINOS

• Customer analysis in the Marketing strategy of DOMINOS

6.2 CHALLENGES/PROBLEMS FACED BY DOMINO’S:

Dominick’s, a pizza store in Ypsilanti, Michigan. The company was renamed as Domino’s
Pizza in 1965. In order to expand globally, franchisers were invited to open their own stores
and this paved the way for Domino’s Pizza to mark its presence in various countries across the
world. However, the company’s operations in various countries outside the US were a failure.
Many analysts opined that the failure was mainly due to the company’s failure to comply with
the requirements of local customers.
The company started carefully analyzing the local environment and adapting its practices to
suit the needs of customers. Further, it also trained its franchisees to meet the company’s
standards. This was evident in the case of its franchisees in Japan who won the hearts of
Japanese consumers by meeting their demands. The dramatic changes in the demographics of
the Japanese market in the 1980s gave scope for a lot of business opportunities. The emergence
of the working woman who found little time for cooking gave rise to the need for ready to eat
food. Further, the teen population in Japan had developed an interest in western habits and
styles. These demographical changes in Japan encouraged Domino’s Pizza to open its first
pizza store in Japan in 1985. It proved to be a success. Domino’s Pizza did a lot of groundwork
before it entered the Japanese market. It conducted extensive market research, which revealed
that the food habits and tastes of the Japanese were quite different from that of the US
consumers. The research found that the Japanese preferred raw fish, rice, and seaweed in their
diets to pizza with common ingredients like tomato and cheese. It was also found that among
the various segments of the Japanese market, the teen segment was the one that liked pizza the
most. But the segment couldn’t afford to consume the product in huge quantities as it had the
least disposable income. Another potential segment was the premium segment, but the problem
was that the people of this segment preferred to go out to expensive restaurants rather than
having a pizza at home. Thus, the Japanese market threw many challenges in Domino’s way.
Domino’s tried many strategies to win the patronage of the Japanese consumers. The first
among these was changing the size of the pizza. It made the pizzas smaller – into 10 and 14
inch pies from the 12 and 16 inch versions, along with toppings preferred by the Japanese.
Domino’s introduced toppings such as squid, shimeji mushrooms, pineapple and corn, catering
to the tastes of the Japanese consumers. One major hurdle for the company in reaching its
customers was the heavy traffic in Japan that made it impossible to deliver the product in time.
However, the company was able to overcome the problem of by using three-wheeled scooters
with a pizza-warming container on the rear of the vehicle. These vehicles were able to zip past
the traffic on Japan’s congested roads, allowing the delivery boys to rush even during the heavy
traffic hours to keep to their delivery times. Another difficulty Domino’s faced in Japan was
locating addresses as the houses in Japan were not numbered according to location, but
according to when they had been constructed. Therefore, the franchisee outlets in Japan were
provided with the area maps to easily locate the customers and deliver the pizzas in time. Also,
the employees of the stores were given intensive training on behavioral aspects. The training
programs taught the staff about the Japanese standards of politeness by providing samples of
polite phrases. The staff was also supposed to use polite phrases when they answered phone
calls from customers.
6.3
6.4 ADVERTISING:
In late 1986, Domino's was well known for its advertisements featuring a character called the
Noid, created by Group 243 Inc. who hired Will Vinton Studios to produce the television
commercials that featured the character. The catchphrase associated with the commercials was
"Avoid the Noid". The Noid was discontinued after Kenneth Lamar Noid, believing the mascot
to be an imitation of him, held two Domino's employees hostage in Chamblee, Georgia. The
employees escaped while Noid ate a pizza he had ordered. Noid was eventually diagnosed with
paranoid schizophrenia and acquitted due to insanity, and later committed suicide. The Noid
was briefly brought back for a week in 2011 in an arcade-style game on the Domino's Facebook
page. The person with the top score received a coupon for a free pizza.
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium
pizzas in March 2009. The company had planned the campaign for December 2008 but
scrapped the idea and never promoted it. The redemption code to receive the pizzas was never
deactivated, however, and resulted in the free giveaway of the pizzas across the United States
after someone discovered the promotion on the website by typing in the word "bailout" as the
redemption code and then shared it with others on the Internet. Domino's deactivated the code
on the morning of March 31, 2009, and promised to reimburse store owners for the pizzas.
Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk and
won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-year
partnership to become the "Official Pizza of NASCAR." Domino's also sponsored Michael
Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR Sprint
Cup Series.
In June 2018, Domino's announced that it had started a project to pave over cracks
and potholes on roads in the United States called "Paving for Pizza" to prevent their pizzas
from being ruined, giving cities and towns grants for road repairs. The company had reached
an agreement with four cities and towns, including Burbank, California; Bartonville,
Texas; Athens, Georgia; and Milford, Delaware to pave their roads. The paved sections feature
the Domino's logo along with the slogan "OH YES, WE DID".

6.4.1 30-MINUTE GUARANTEE:

Beginning in 1973, Domino's Pizza offered a guarantee to customers their pizza would be
delivered within 30 minutes of placing an order or they would receive the pizza free. This
guarantee was changed to $3 off in 1987. In 1992, the company settled a lawsuit brought by
the family of an Indiana woman who had been killed by a speeding Domino's delivery driver,
paying the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured
when a Domino's delivery driver ran a red light and collided with her vehicle. The woman was
awarded nearly $80 million by a jury, but accepted a payout of $15 million. The half-hour
guarantee was dropped that same year because of the "public perception of reckless driving
and irresponsibility", according to then-CEO Tom Monaghan.
In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes," alluding to the
earlier pledge, but stopping short of promising delivery in half an hour.
The company continues to honour the 30-minute guarantee for orders placed in its stores
located in Colombia, Vietnam, Mexico, China, and India. The 30-minute guarantee is subject
to the terms and conditions applied in the respective country.
6.5

6.6 MARKETING:
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish
Foundation of America. That same year, company stores in New York City and Washington,
D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on
the World Trade Center and The Pentagon. Through a matching funds program, the
corporation donated $350,000 to the American Red Cross' disaster relief effort. In 2004,
Domino's began a partnership with St. Jude Children's Research Hospital, participating in the
hospital's "Thanks and Giving" campaign since the campaign began in 2004, and raising
$5.2 million in 2014.
In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and also
rolled out its online and mobile ordering sites. In 2008, Domino's introduced the Pizza Tracker,
an online application that allows customers to view the status of their order in a real time
progress bar. Since 2005, the voice of Domino's Pizza's US phone orderin service has been
Kevin Railsback.
In a 2009 survey of consumer taste preferences among national chains by Brand Keys,
Domino's was last — tied with Chuck E. Cheese's. In December that year, Domino's announced
plans to entirely reinvent its pizza. It began a self-critical ad campaign in which consumers
were filmed criticizing the then-current pizza's quality and chefs were shown developing a new
pizza. The new pizza was unveiled that same month. The following year, 2010 and Domino's
50th anniversary, the company hired J. Patrick Doyle as its new CEO and experienced a 14.3%
quarterly gain. While admitted not to endure, the success was described by Doyle as one of the
largest quarterly same-store sales jumps ever recorded by a major fast-food chain.
In 2011, Domino's launched a billboard advertising in New York's Times Square which
displayed real time comments from customers, including good, neutral and bad comments.
In 2015, Domino's unveiled a "pizza car" that can carry 80 pizzas, sides, 2-liter bottles of soda,
and dipping sauces. It also has a 140-degrees Fahrenheit oven on board and is more fuel
efficient than a standard delivery car. Officially named the Domino's DXP, the car is
a Chevrolet Spark customized by Roush Performance. Once each car reaches 100,000 miles, it
will be rtired and returned to Roush, where it will be returned to stock form.
In 2016, Domino's cooperated with Starship Technologies and applied self-driving robots to
deliver pizzas in specific German and Dutch cities. In 2016, Domino's in New
Zealand delivered the world's first pizza delivery by unmanned aerial vehicle using the DRU
Drone by Flirety.
In February 2017, Domino's launched a wedding registry with gifts delivered in the form of
Domino's eGift cards. Domino's also worked with Gugu Guru to create a pizza-themed baby
registry. Customers have the option of signing up for Domino's pizza package to be served for
the event.
In June 2018, Domino's began repairing potholes in America as part of its "Paving for Pizza"
initiative to prevent its pizzas from being damaged in transit.
In June 2019, Domino's announced a partnership with robotics company Nuro. The service is
slated to launch in Houston, Texas with Nuro's custom, self-driving vehicle, R2.

6.7

7
8 DOMINOS MARKETING MIX STRATEGY:
Marketing Mix of Dominos analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Dominos marketing strategy. There are several marketing
strategies like product/service innovation, marketing investment, customer experience etc.
which have helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix
(4Ps) is the widely used framework to define the strategies. This article elaborates the product,
pricing, advertising & distribution strategies used by Dominos.
Let us start the Dominos Marketing Mix & Strategy:
8.1 Dominos Product Strategy:
The product strategy and mix in Dominos marketing strategy can be explained as follows:
Dominos is one of the leading global pizza outlets. The product line of Dominos is mainly
concentrated on various kinds of pizzas which are customized with respect to the local markets.
In America the most popular offered by Dominos is the pepperoni pizza. In other places it
ranges from a lot of vegan pizzas to other non-vegetarian pizzas. The size of the bases has a lot
of variety and are of various types. A variety dips, sauces and toppings are also included.
Domino’s pizza can be customized as per the preference of the customer. It also contains a
variety of pastas both of non-vegetarian and vegetarian types. Apart from pizza breads there
are other flavoured breads on the menu. The side items offered by Dominos also include
chicken wings, bacon and other flavoured chicken dishes. All these are the main product mix
in the pizza brand’s marketing mix. The dishes are also accompanied with drinks for which it
has tied up with Coca Cola and sell all the soft beverages and major juices made by Coca Cola.
In India the Dominos menu also majorly consists of various types of pizzas, chicken crusts,
flavoured breads, pastas, side dishes ranging from dips, desserts, chicken items and subwiches,
burger pizzas, mousse cake, choice of toppings. The soft beverages and other drinks again are
tied up with Coca Cola.

8.2 Dominos Price/Pricing Strategy:

Below is the pricing strategy in Dominos marketing strategy:
Dominos has got a very competitive pricing for its pizzas.
Since Dominos has two major competitors which are almost equally or even more spreaded
than it is it has to keep competitive prices. The prices are differentially done with three sizes
available and the non-vegetarian pizzas being charged relatively higher. Also the pricing of
pizzas and other eatables in its marketing mix is so done that the segment one size is catering
to does not overlap with the other. Also as we go on customizing the charges are on the basis
of part added to the pizza. The side dishes do not have choices and are priced at one price. The
beverages sold by Dominos are quite higher than that of normally sold at the general market
because of the convenience.
8.3 Dominos Place & Distribution Strategy:
Following is the distribution strategy of Dominos:
Dominos operates on a franchise based model where 97% of its business is franchise owned.
Currently there are around 13000 Dominos stores globally. In the United States around 4800
domestic franchise stores and 840 around franchisees operating more than one stores.
Internationally there are more than 7300 stores of Dominos. Outside the United States, India is
the next hotspot destination having more than 1100 stores. It has 16 dough manufacturing
centres and 1 equipment supply centre, 1 vegetable processing centre and 1 pressed plant centre
in America. Similar kind of proportions are maintained globally although the machines and
other equipment are supplied by Dominos itself.
Dominos also has presence online as 95% of the transactions are done online through apps and
on its websites with more than 39 countries making orders online.

8.4 Dominos Promotion & Advertising Strategy:

The promotional and advertising strategy in the Dominos marketing strategy is as follows:
Dominos does promotion and advertising aggressively in its marketing mix. Dominos does
majority of its promotions on its websites, mobile apps and personalised SMS to individual
customers to gain more attention by making them aware of the new offers and discounts.
Dominos also promotes itself through TV commercials where it claims to deliver pizza with a
30 minute guarantee for home deliveries. It also tied up celebrities regionally to better connect
through the Dominos advertisements. Dominos also has featured in many newspapers also for
various new innovative products it launches in its menu. Dominos also offers various discount
promotions on various days of a week ranging from 10% discounts to full pizza free, also any
side dishes free and bundling techniques are used to attract customers.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing
mix of Dominos.

8.5 PEOPLE:
Dominos staff is very much trained although there is not much scope of innovation to do in the
customer service as they have to meet minimum standards. The Dominos employees undergo
training as per the training manual and according to the guidelines provided by the dedicated
learning and development team. Employees are also encouraged to provide ideas for
improvement through the classroom training and other developmental tools. The innovations
are supported through rewards under various schemes. There is also a stringent feedback
system which is linked to the performance system and hence makes the employees accountable
for their actions and behaviour on the workplace. It also supports various certifications and
other external development programs. Also the employees up to the higher management wear
the uniform of Dominos which shows the equality and strong values it maintains in the
organization.

8.6 PROCESS:
The Dominos restaurant has two methods of service that is order at the restaurant and order
online which could be taken away or delivered at home. Both these processes in its marketing
mix are its service offering backbone. As it guarantees thirty minutes delivery Dominos
prioritizes the home deliveries first as they need to be prepared quickly and then taken over by
the delivery boy to be delivered. The Dominos restaurant deliveries are also done on a token
basis which determines the queue number and customers can collect their pizzas after they have
paid for their orders. In the restaurants they have to choose from the menu at the many counters
which are at the front end of the kitchen from a menu being displayed in front of them. After
the order being placed immediate payment is made after which they wait for being served. The
Dominos restaurants also has a cleaning staff which regularly maintains the hygiene of the
restaurant. In the online deliveries there is the pizza tracker system where you can track your
order phase from order taking till the delivery reaches home. The customers can also give the
feedback directly to the attendees.

8.7 PHYSICAL EVIDENCE:

Dominos’ biggest physical evidence is its attractive family outlets. The customer receives the
hot pizza in a specialized covering which flashes the promotions and Dominos logo. The size
of the packaging differs with the size of the orders and all individual items are generally packed
separately. The employees have to be in their typical attire consisting of the Dominos T-shirt
and cap and also with minimum level of conduct. The payments are made through cash or card
in restaurants and for online orders there are variety of payment methods include cash, card
and mobile payments. The Dominos customer support is also online during the restaurant
working hours for taking telephonic order as well as address to the customer grievances. The
customer support is available through website or phone with their countrywide unique number.
Hence, this concludes the Dominos marketing mix.

9 DOMINOS SWOT ANALYSIS:

Dominos Strengths:
Below are the Strengths in the SWOT Analysis of Dominos:
1. Dominos is a hugely popular brand name and has high brand loyalty
2. Diverse range of products offered by Dominos apart from Pizzas
3. Hygenic food and quick service
4. Leader in online & mobile ordering as compared to its competitors
5. Dominos has a strong brand equity supported by heavy advertising & marketing campaigns
6. Global franchise operations - more than 3,500 in over 50 countries
7. Efficient and effective supply chain management enables it maintain its goodwill and
promises
8. More than 200,000+ people are employed with Dominos

Dominos Weaknesses:
Here are the weaknesses in the Dominos SWOT Analysis:
1. High fat and high calorie food not good for health conscious people

Parent
Dominos
Company

Category Fast food eating joints

Sector Food & Beverages

Tagline/ The world's leading pizza delivery company; Khushiyo ki home

Slogan delivery; Hungry Kya?; Ye hairishton ka time

USP Dominos pizza home delivery in 30 minutes else free

2. Intense competition means Dominos' has limited growth in market share

Dominos Opportunities:
Following are the Opportunities in Dominos SWOT Analysis:
1. Improve efficiency and home delivery service, which is Dominos' point of differentiation
2. Introduction of new flavor additives and pizza toppings that are region specific can be a good
stride for Dominos.
3. The distribution network should be further strengthened so as to ensure market penetration
in the existing markets at maximum optimum levels.
4. Growing presence in emerging markets, particularly in India, China.

Dominos Threats:
The threats in the SWOT Analysis of Dominos are as mentioned:
1. Intensive competition from a fragmented number of small competitors can reduce business
for Dominos
2. Changing consumer habits towards healthier food choices.
3. Changing government policies and regulations can affect global operations
9.1

9.2 DOMINOS BRAND ANALYSIS AND STP:

Dominos People willing to have a delicious pizza at a restaurant or at

Segmentation home

Dominos Target Children and youth from middle and upper classes from urban
Market areas
 Dominos
Best pizza home delivery service
Positioning

9.3

9.4 DOMINOS COMPETITORS:

1.KFC
2.Pizza Hut
3.McDonalds
4.Subway
5.Burger King
6.Smokin Joes Pizza
7.Taco Bell
8.Papa Johns Pizza

ANALYSIS:
• Segmentation, targeting, positioning in the Marketing strategy of
DOMINOS:
When Consumers hear the name Domino’s they are able to associate it with “30 minutes
delivery guarantee”. This is one of the most popular campaign of Domino’s highlighting what
Domino’s stand for – Fast delivery with excellent taste.
It segment its offerings based on demographic and geographic factors, for e.g.- it has localised
its menu when it entered in India. Domino’s understands that cow is sacred here so Dominos
replaced pepperoni, beef based toppings with spicy chicken sausage topping.
It uses differentiated targeting strategy to serve the market based on the taste & preferences.
Dominos have been successful so far in positioning itself as a Pizza brand having competitive
pricing and varied options to choose from.

• Competitive advantage in the Marketing strategy of DOMINOS

Supply chain – Vertical integration across the supply chain has helped the company in
aligning its resources and controlling the cost structure so as to be competitive in the market &
at the same time emerge as most preferred Pizza provider.

Fast Delivery – Whether you have the mouth-watering Pizza at their outlets or get it delivered
at your place, one can always count on Dominos for its quick delivery services which have
helped the company in improving its value delivery process. It even brought in packaging to
prove that its pizza is delivered Hot.

Low-cost outlets – It is one of the major cost components making their business viable as
compared to the rival Yum brand’s outlets. There is no outlet of Domino’s which is premium
designed with plush interiors. Instead, the outlets promote faster consumption so that people
can order, eat and move on. Pizza is promoted exactly for what it stands for – Fast food.

• BCG Matrix in the Marketing strategy of DOMINOS

Dominos have both Veg & Non-Veg Pizza in its menu with options of different toppings to
choose from.

Though they offer both Veg & Non-Veg Pizza, Dominos Veg menu is more popular and hence
it is Star in BCG matrix. With Domino’s almost taking away the market share of Pizza’s
from Pizza hut, Non veg pizzas are in fact a cash cow for Domino’s (at least in India) because
veg pizza’s have a lot of local competition but there is very less competition for Non veg pizzas.

• Distribution strategy in the Marketing strategy of DOMINOS

Strategically located Dominos outlets and vertically integrated value delivery system had
helped Dominos to serve its customer in best way. Decrease the turn-around-time
(TAT)/waiting period is the major advantage that Dominos have over its competitors.

It has company owned dough manufacturing facilities in some countries while in other
countries it works with master franchises to stream line its supply chain. Like Jubilant
FoodWorks have master franchisee of Domino’s Pizza in Sri Lanka, India, Nepal &
Bangladesh.

• Brand equity in the Marketing strategy of DOMINOS

Dominos have been successful in being top of the mind brand in the Fast food industry. In year
2009 it has released its video under “Oh yes we did” campaign claiming it as a
turnaround strategy where different stakeholders explained how they handled the critics.
Company also communicated through it the innovating strategies they are following to cater
the customers changing needs.

“30 minutes guaranteed delivery or free” is all-time popular campaign that helped the company
increase its awareness across the geographies & demographics. Currently, in 2016, the brands
ranking is 301 in the global brand ranking of Forbes. Pizza hut is also close with a ranking of
355.
 • Competitive analysis in the Marketing strategy of DOMINOS
Pizza industry is over crowded with local & international companies like Pizza hut, Papa Jones,
Toppers, Greco etc., eating up each other’s market share. Dominos with their online discount
offers and on time delivery is able to have the high market share in most of the countries.

It has eaten away the competition by focusing on two main things – Far and wide distribution,
and faster deliveries. Domino’s recently also launched the Pizza Burger to take on the
popularity of McDonalds.

• Market analysis in the Marketing strategy of DOMINOS

Due to the presence of various fast food options, it is difficult for the Pizza companies to
increase the customer base whereas at the same time increase its market share. In developing
nations it is tough for the companies like Dominos to increase the market size due to several
factors like Low per capita income, poverty level, literacy level & standard of living.

Dominos stores are strategically located to cater the needs of the large areas of nearby localities
so as to keep the infrastructure cost low. Also promoting online sales channel through offering
discounts is helping the company to

1. Increase the customer satisfaction level by offering convenience.

2. Cost control

• Customer analysis in the Marketing strategy of DOMINOS

Customer of Dominos varies geographically across the world. In developed nations like US,
UK etc. consumers are of all age groups whereas in developing nations like India majority of
customers are younger generations in the age group of 20-40 years.

Further more, health consciousness is definitely affecting the consumer psyche as people are
looking for healthier options such as Subway or others which are lesser in calories as compared
to a complete pizza.

10 STRATEGIC ANALYSIS AND RECOMMENDATIONS:

Domino’s Pizza Inc. has been considered as the second-largest pizza chain in the United States
according to Forbes Magazine. The status of the company is that it has over 9,000 franchised
and corporate stores tin over 60 international markets including the 50 states in the United
States. It is important to note that the company was bought Bain Capital back in the year 1998
and shares were traded in 2004 after the company went public. Some of the delicacies featured
on the Domino’s menu include pasta, oven-baked sandwiches, boneless chicken, wings,
breadsticks, salads, a variety of desert items, cheesesticks, and of course pizza.

Since its inception, the company has grown from strength to strength. Domino’s Pizza Inc.
started its first franchise business in 1967 by opening a first store in Ypsilanti. Despite the
original idea to add a dot to the logo of the company on every opening of a new branch, the
idea was quickly faced out because the company was quickly experiencing rapid growth. By
the year 1978, the business opened its 200th store. This showed how first the business was
growing. However, it is important to note at this point that the company has underwent a major
challenge during its infancy stages that threatened to hamper the growth of the company and
even its existence. The 1975 lawsuit filed by Amstar Corporation, which was a maker of
Domino Sugar at that time, made a complaint arguing and alleging that Domino’s Pizza
Incorporation had violated and infringed its trademark and had therefore instituted unfair
competition to their company. This legal battle lasted for five years and on May 2, 1980, the
court of appeal or federal appeals court ruled in favor of Domino’s Pizza Incorporation.

Domino’s Pizza Incorporation went international in 1983 when it opened its first international
store on May 12, 1983 in Winnipeg, Manitoba, Canada. During the same year, the Domino’s
had managed to open its 1,000th store in general. The company also managed to reach a
whooping 1,000 international stores by the year 1995 and further stretched this number to 1,500
stores in the next two years. One of the greatest achievements of the company in terms of
expansion was the opening of seven stores across five continents in just one day .

Domino’s Pizza Company rolled out its mobile and online ordering services in the year 2007
while at the same time delivering and introducing their Dream franchising programs and at tits
Veterans respectively. These events made a significant impact in the company pushing
company operations a notch higher. One another significant event in 206 was the performance
of Domino’s store in Tallaght, Dublin in Ireland: the store made a turnover of $3 million and
become the first store ever in the history of the company to hit the mark.
It is of equal importance to take note of the fact that the company was rated the last tying with
Chuck E. Cheese’s in a survey that was conducted by Brand keys on all consumer taste
preferences among national chains in 2009. This arguably meant bad results for the company
and strategic issue had to be developed some of which are still under current implementation
as will b e discussed later in this paper. In 2008, the Dominos adopted a diversification strategy
through the introduction of non-pizza fare where they offered oven-baked sandwiches in four
unique styles. The strategy was intended to compete with toasted submarine sandwiches
cooked or prepared by Subways, a first food restaurant. One of the marketing strategies adapted
by the company in marketing these sandwiches was to offer them freely to people who were
named “Jared” which was a reference to one an employee of Subways, its targeted competitor.

BODY INTRODUCTION/PURPOSE OF THE REPORT:

The purpose of this report is to identify strategic planning issues in Domino’s Pizza
Incorporation which the management or the company plans to achieve or is already undertaking
to achieve within a given span of the next three to five years. The report explores some of the
main goals of the company and develops an understanding of how the company is likely to
achieve some of its set goals or objectives in the time span given. The company appointed a
new chief executive officer in 2009 as part of a strategy to grow its prospects in the fast food
chain industry. Dominos Pizza Incorporation is currently facing a lot of completion from well-
established competitors like the MacDonald Incorporation and Subways, which are biggest
players in the fast food industry. The efficiency and effectiveness of the strategies currently
undertaken by Domino’s are essential in determining the dynamics of the company in future:
this is the aim of this report as it seeks to give an appraisal of the strategies and finally giving
the recommendations.

In order to develop a clear understanding of the strategies adopted by Domino’s, the report
develops an analysis of Domino’s company as compared to Pizza Hut. This analogy is essential
because the two businesses operate in the same segment within the wider fast food industry.
The paper finally highlights some recommendations that the company should adopt in order to
realize their prospects due to increasing competition. Some of the recommendations made by
this report to Domino’s Pizza Inc. include redefining of in-store dining strategies relative to
online sales that are growing significantly in the current global trend, capitalizing on socio-
cultural shifts that are currently being experienced in the United States where it is majorly
established.

In addition, the report recommends that the company should consider continuous reinforcing
and strengthening of its brand in order to grow and compete effectively in the market, Domino’s
should also drive up a series of same-store sales to achieve customer loyalty and at the same
time reducing customer churn. The recommendations given are highly based on the current
prospects in the market, as explained earlier, and the strategies that the company is undertaking
or is yet to undertake.

STRATEGIC ISSUES FOR DOMINOS’S:

It is quite important to note that some of the strategies adopted by the company started back in
2009, as part of an ambitious program to increase its competiveness in the market and in the
industry as a whole. One of the strategies that the company adopted in 2009 was the
introduction of American Legend line of pizzas, which was significantly their specialty line of
pizza. These pizzas featured over 40% of cheese over and above the normal or regular pizzas
that the company used to sell at the time. In addition, the company made some additives, which
composed of a variety of toppings. Within the same year, Domino’s introduced the Bread Bowl
Pasta entree which was mainly a lightly seasoned bread bowl that was purely baked with pasta
inside. In another successive twist, Domino’s introduced the Lava Crunch Cake dessert which
was composed of warm fudge that was filed on crunchy chocolate shells.

As a way of promoting the strategy above, Domino’s flew in about 1,000 cakes to deliver at
their store, which is located at Hoffstadt Bluffs Visitor center that is near Mount St. Helens.
The whole idea of introducing these delicacies was a part of the strategy of diversifying the
scope of operation of the business to include other competitive delicacies like other companies
in the fast food industry business. In addition, the company made tremendous changes to its
pizza recipe: “from the crust up” this year, 2010, which ushered in new changes in the cheese,
sauce, and dough that are used in preparing their pizza (Young). The launch of this new recipe
was viewed by many consumers as a correction to their earlier mistake in which the company’s
product had been criticized in terms of taste by many individuals. This had affected the
perception of the product of the company and indeed the company confirmed this view in one
of its advertising campaigns, which promoted the new recipe.

Currently, Domino’s is planning to undertake expansive strategies with plans to open an

additional 55 stores within this year at various strategic locations in its major areas of operation.
The company aims to achieve its needed growth and expansion in the fast food industry amid
its growing revenues that increased by 8.1% in the first quarter of the year 2010 alone. The
plans were announced by the company at the beginning of April this year, 2010, after
successfully appointing a new Executive Vice President to manage its supply chain. According
to the company, the need to mange fully their supply chain was mainly because of the
increasing need to manage supply chain routes that have been attributed as major contributors
to increases in operational costs in businesses, especially in the United States.

The company has undertaken strategies to improve supply chain management and plans are
currently underway to develop fully automated management systems to monitor the supply
chains of the business. The company bases this reason on the fact that its supply chain
contributed heavily to the operational costs according to its financial report for the year ended
2009. The costs led to a decrease of 1.5% in company revenues to $1,404.1 million when
compared to the revenues that the business earned in 2008.

Domino’s Company has also intensified its competitive strategy by pushing their battleground
to pay up media with the company’s subscription amounting to 94% against 92% from its close
competitor Pizza Hut according to the report released by TNS Media Intelligence. According
to the company analysis, the media advertising strategy is justified because the effects were
evident in the market place. The Domino’s TV adverts have been designed to be tactical and
market-oriented, which places on the platform the menu range and the quality. This fact is
supported by the TNS Media Intelligence who says such adverts would have an impact on the
market in terms of responsiveness of the consumers to the products of the company.

The company is making plans to invest heavily in media advertisement with significant focus
on content and creativity for their adverts. It is important to note at this point that the company
has been targeting Subways in most of its advertisement with the comparison advert, which
showed that many customers preferred products from Domino’s than from Subways. As
motioned before, this strategy has been utilized by the company for a number of years now and
the company seeks to continue pursuing this strategy as a way of eluding its competitors.
In 2009, Domino’s Pizza Inc. almost tripled the amount investment in online advertising and
the main targets being the social media like Facebook, College Humor, and MySpace. In future
plans for the company are to continue in this line of investment because it has witnessed
tremendous growth in sales based on this line of investment. In August, Domino’s introduced
an application which allows consumers to order for pizza directly from their iPhone. During
the launch, the company recorded massive downloads but according to the company’s CEO,
the company is currently undertaking measures to increase the number of customers or users
utilizing this exciting service.

Domino’s Incorporation was a little bit behind in terms of users using this service behind their
bitter rival Pizza Hut. Pizza Hut managed over 100,000 downloads of the application in only
two weeks after the launch, which was almost 24% more than what Domino’s achieved. This
is the main reason that has triggered the company’s strategy of utilizing search engines such as
Google and Yahoo through the Pay per Click system, which the company hopes it will increase
the customer traffic to their application download.

In the past, most sales of the company have been supported by the promotional activities that
have accompanied every strategy that the company has ever introduced. Domino’s is currently
counting on the promotional campaigns it has adopted basing its argument on the idea that
extensive promotions will bear good fruits like the promotional campaign that the company
held following the launch of its “American Legend” specialty pizza in 2009, as earlier
mentioned.

Generally, the company’s strategy are geared towards expansion and gaining a competitive
advantage in the fast food industry. Domino’s is also camping on the pricing strategy that it
introduced back in 2009 which was aimed to bring back some price-sensitive customers under
their “barbell” technique. In addition, Domino’s is planning to continue the advertising wars,
which are aimed at targeting major competitors like Subways and Pizza Hut.

ACTIONS RECOMMENDATIONS:
It is important to consider Domino’s SWOT analysis before considering making any action
recommendation for the company. In order to achieve workable strategies, it is essential that a
business or an organization consider its weaknesses, opportunities, threats, and strengths. Some
of the strengths that are evident in Domino’s business include the fact that the business or
incorporation owns stores, which are located in over 60 countries and it has a well-established
network connection for both segments of the business: company owned and franchised. It has
also been rated the most popular and leading pizza delivery companies within the United States
borders and employs about 10,500 employees.

Domino’s Pizza Incorporation has a strong brand equity, which gives it an overall advantage
over other industry players in the industry. One other significant strength is the intelligent
marketing services adopted by the company. These advertising strategies have contributed to
its brand image in the company, which has an effect of instigating a sense of retention and
differentiation. The company continues to adopt the effective supply chains, which has given
it an advantage in ensuring effective supply of all its stores. The company also has one major
weakness, which is mainly the weakening or decreasing bottom line due to decline in sales and
slow growth.

The company has expansion opportunities in India and China where it has very few franchises
and stores generally. In addition, the company has an opportunity to introduce new products in
its existing menu especially pizza toppings and flavor additives that are specified for a given
region, this will give the much needed impetus. A number of threats exist within the company
and they include the increasing awareness of by consumers on the disastrous effects of fast
food items that have high calories within them. The continuous researches on effects of
additives like flavors are yet other threats for the Domino’s. In addition, the health sector has
continued to criticize the fast food products on grounds that they are saturated with substances
like sugar, oils, fats, and sodium: this continues to pose serious threats for the future of the
company.

RECOMMENDATION:
Having considered the SWOT analysis above, it is now possible to give the following
recommendations to the company. First, the company should concentrate on increasing its
network coverage in India and China in order to seize the looming opportunity in the two
emerging economies. India and China carry less than 2% of the total stores under the Domino’s
company. The number of stores should be increased to more than 20% in the next three years
in order to meet the company’s expansion strategy that it is currently pursuing. Secondly,
Domino’s should focus entirely on customer loyalty through insisting on quality and ensuring
that all stores deliver the best delicacies. These guidelines on quality should be adhered to
strictly if at all any good results are to be achieved. These two recommendations are based on
the reason that the level of competition in the fast food industry is growing steadily.

Thirdly, Dominos Incorporation should consider utilizing their intelligent advertising

techniques to focus on all the players or competitors in the market other than only focusing on
one competitor, Subways. Concentrating on one competitor may have serious consequences to
the company especially where established businesses like Macdonald may come up with
ingenious strategies that may affect the stability of the company and growth in general. Fourth,
Domino’s should improve their innovative strategies that they have adopted their online
marketing and selling. Pizza Hut performed better when compared to Domino’s company in
terms of online rewards despite having invested almost the same amount of money in their
online services segment.

The current operating company hybrid model is estimated to be at 70% franchised while 30%
of the stores are owned. The number should be adjusted to reduce operational costs by
increasing the number of franchised businesses to about 85% in order to reduce the overall
operational costs. Fifth, Domino’s Inc should focus on improving its brand image because this
is one of its strengths; this can be achieved through continuous strengthening and reinforcing
their brand in the market. One vital factor that needs to be carefully taken into consideration
by the company is the highly dynamic socio-cultural change or the changing lifestyles of the
people in the United States and the across the globe as well. Their products should reflect these
changes if the business is to achieve continuity. Companies like MacDonald Incorporation
concentrate on cultural changes that occur and subsequently train their employees in order to
meet the demands of changing lifestyles.

In relation to the recommendations above, Dominos Incorporation should focus its attention on
online sales and utilize this effect to redefine their own in-store dining strategies to match the
growth in online sales as mentioned above. The use of internet in the world today is increasing
at a faster rate and the growth in online sales of the company that have been noted can only be
supported through taking a keen look at the in-store dining strategies. Finally, the Domino’s
should look at available options in their customer mix or churn: the company should actually
reduce it in order to remain competitive and realize its strategies and objectives as well.
Achieving goals requires a definite path that is clearly built on the strengths and focused on the
opportunities of the company. The recommendations given above reflect on the current
strengths and opportunities of the company: they are aimed at overcoming any threats and the
weaknesses that the company faces currently.

CONCLUSION:
It is evident at this point that Domino’s Pizza Incorporation has a good brand image, which is
one of its strongest points. In addition, the company has had a good history despite a few
lawsuits and criticisms on taste as mentioned above. Domino’s advertising strategies are quite
effective and have worked to improve the sales of the company as well as its competiveness in
the market. However, the company faces major threats that might put the future of the company
to dire test. The sociocultural changes that continue to occur in the world today require that the
company make rapid changes and continuous monitoring of the lifestyles of the people in
various parts of the world: especially where they operate. There level of competition in the fast
food industry is growing stronger by day and maintaining loyal customers is the ultimate
strategy for any business in the industry today.

REFERNCE:
• https://www.marketing91.com/marketing-strategy-of-dominos/
• https://en.wikipedia.org/wiki/Domino%27s_Pizza
• https://www.mbaskool.com/brandguide/food-and-beverages/587-dominos.html
• https://biz.dominos.com/
• https://www.bartleby.com/essay/Market-Analysis-Dominos-Pizza-PK3PCUQ5UK85
• Principles of Marketing -- Philip Kotler & Gary Armstrong, 2000.
• Marketing Management -- Philip Kotler, 2000.