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Introduction History Industry SWOT Analysis Strength Weaknesses Opportunity Threats Major Section Industry analysis Financial data Marketing Strategies o o o o o o Recommendations Conclusion References Internal Environment analysis External Environment analysis Objectives Strategies Implementation Evaluation and controlling of marketing strategies 10 10 11 11 11 12 13 14 14 02 02 03 03 03 03 04 04 05 05 06
INTRODUCTION
Dominos Pizza has introduced Specialty Chicken, its first new product since the introduction of Handmade Pan Pizza in September 2012 and its first offering since implementing a strategy of fewer, better menu introductions. The product starts with 12 pieces of the Ann Arbor, Mich.-based chains boneless chicken and includes layers of Dominos sauces, cheeses and pizza toppings to create four varieties of the side item: Crispy Bacon & Tomato, Spicy Jalapeo-Pineapple, Classic Hot Buffalo and Sweet BBQ Bacon. Specialty Chicken will be available in Dominos $5.99 mix-and-match value offer that also lets customers select the chains pastas, sandwiches and medium, two-topping pizzas. We are proud to be known as a pizza company, but Specialty Chicken shows we are not afraid to step out of our comfort zone and take risks, something that is truly part of our brand fabric, chief marketing officer Russell Weiner said in a statement. Not every risk we have taken has turned out to be successful, but as a brand we have learned that sometimes you have to fail in order to be great.
History:
Starting in 1960, Dominos Pizza, Inc. (Dominos) was formed by two brothers from Michigan. The two started the business after purchasing a store named Dominicks. They converted the name to Dominos five years later. In 1983, Dominos went international. Today, Dominos employs about 10,500 people between their 8,700 stores worldwide. The company has been traded on the NYSE as DPZ since 2004.
Industry:
The pizza industry is a high range of competitors in the market. There are many pizza makers who are work domestically as well as internationally franchises such as Dominos and Pizza Hut. With the current health issues in society and economics decline, many organizations been forced towards healthier and cheaper products. Salad is new innovation at that time in many other companies. Technology enhances the popularity of the Internet and mobile commerce is transforming the ways of how to order a pizza.
SWOT Analysis:
In Dominos company, there are so many characteristics that leads him more competitor than other companies. It has highly strong brand image and also have brand loyal consumers. They are able to keep and retain customers because of their image. However, the decrease in the economy sector results to hold many customers with their spending, resulting low amount of revenues. Nevertheless, Dominos itself use the expanding growth in the industry of fast food like China and India to their advantage. But with new area and new markets the new competition occurs, which is a threat to Dominos Dominos from the start is a very reputable brand image all over the world and is the leader in delivered and takeout pizza business. Dominos consistently operate all over the United States and in over 55 other countries.
Strengths:
Since Dominos is so widely known, it has a wide range of pizza flavor and quality is the main objective for any customer and Dominos always satisfy customers with their quality, there are so many other aspects which includes in its strength like leading in delivering and takeout and it has available almost all over the world.
Weaknesses:
A big weakness for Dominos is that they have huge decline in their market and store sales. Last two years the revenues have decreased and this can lead them towards bad brand image and their profits. 2008 was the most declining year for Dominos because there are number of domestic franchises were open in 2008.
Opportunities:
Dominos has bundle of opportunities. One biggest advantage Dominos has over its competitors to focus on delivery of pizza with the most efficiently way. This helps them to improve operating effectiveness with minimum resources. There is a large growth in China and India because of their large population and this helps Dominos to increase their market share and increase their revenues. Dominos introduces the offer services on mobile phones and now bunches of sales come from their phone application. They constantly working on finding new improvements to increase their growth and profit and continue to gain and lead in competitive advantages.
Threats:
The increase of competition of the fast food industry is a big threat for Dominos. There are constantly new competitors are being formed in the pizza and fast food industries. Some of like emerging competitors such as: Pizza Hut, Papa Johns, and McDonalds. One more threat is to how customers are now becoming more aware of their health. With this increment in health awareness, it affects the profit and revenues of Dominos. A final threat is the increase inflation which directly increases the labor and food prices. Minimum wage rate results major impact on Dominos business. All of Dominos supplies prices are also increased and this has affected their profits by increasing their operating costs.
Packaging:
Industry Analysis:
The pizza and food industry is a highly competitive and more than mature market. There are more than 150 known pizza franchises, which account for almost 60% of the market share. Pizza is now exist throughout the world. New franchisees of pizza and smaller pizzerias are consistently opening, which results more competition in the industry The Pizza industry now faced some hard time with the trends of society and bad economy. Consumers now are suggesting go for healthier food for themselves and their families. Now many people are also interested in where the production is happened and what ingredients are using in making of food. To finish this health consciousness among consumers, they are trying to change their bread by having healthier fats, which is now done by corporation that includes more wheat into their bread/crust. Now the pizza toppings are also becoming popular and healthier, and some pizzerias are introduced salads into menus. Rise in minimum wage rate has also posed barriers for the industry, requiring their operating income to be dedicated to labor salaries. The increase in price of raw material has also changed their profitability ratio. Wheat price now has tripled, result sacrifice the amount of profit per pizza. Use of mobile technology is another impact of the pizza industry. The internet no is more popular and the ability to order online from computer and mobile devices has changed the industry significantly. Now many of companies offer online orders and some are orders through text messages. In 2007, Associated Press stated that, U.S. online sales now have been growing rapidly at an average of more than 50 % per year. In 2001, the online sales of products totaled $20.4 million. Now online sales are more than $400 million. Over the past few years, there are so many significant changes in the pizza making process and delivering industry. Prices vary from country to country.
Financial Analysis:
MARKETING STRATEGIES
Q. What Internal and external analysis are performed by Dominos?
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Marketing objectives:
Domino pizzas goal is to maintaining the current goodwill and reputation from all current and future customers through improving the quick delivery service. That can be done by hiring extra motor bicycle for pizza delivery. Home delivery will also helpful in easing the challenge of parking space because some of consumers will directly order from home. Giving promotional activity like discounts once a week in order to the pizza prices is another marketing objective which results benefit to domino pizzas. Opening of new franchises in where needed each year will help to get the more market share of fast foods, which is growing. Domino pizza goal is to positioning a high class environment in dining pizza and take away restaurant. It main aim is to offer quality service that will result to achieve market leadership and competitive advantage over existing competitors in a profitable and cost effective way. This is through conceptualized and effective advertising and brand awareness promotion campaigns. Increasing sales and profits will directly proportional to increase in growth of the dominos pizza. Q. What strategies are Dominos using to achieve their desired goals?
Marketing Strategies:
The company aims to achieve market leadership through more marketing promotions. They can also use different sales offers and discount offers to attract more customers and keep the existing ones. Enhancement of online and internet market where order and delivery is online may also increase the reach towards customers and the target market of products. Q. How Dominos implement their strategies in order to achieve their main objective?
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Recommendations:
Dominos has consistently produce fantastic revenues over the past few years. They can use various strategies in order to increase their customer base, market growth as well as international expansion in the future. They could offer new menu items specific to the store location, Open more stores in market, and develop new products. All of the strategies will helpful to better increase their brand recognition across the world. By offering new items that are specific to the locations and culture of their location. Dominos can expand further more into India and China offer better products that do not contain beef for India. They should create those products that include more poultry items such as chicken, duck, and other items. Dominos should also offer white sauce products on their menu rather than the traditional one that the majority of their products contain. By offering more products, it would allow for Dominos to open more stores in different areas of the world. They should go for promotional activities in market to satisfy customers ease enhance company reputation They should participate in worldwide conferences by provide them sponsorships. They also can contact to those organization which conducts seminars and events every year. Dominos could expand their stores into new parts of the world. By doing so, this would definitely create new jobs for the public. Dominos can create those products that would better satisfy their customers wants, and new products in any business lead towards a competitive advantage for any business. They could compete with Pizza Hut by creating a Pizzone or they could compete with Little Caesars by creating a quick and easy pizza that would be ready to eat in less than ten minutes. Dominos could offer soups, salads and other such items that could complement their main course meals. They could pull things together and market certain items for certain parts of the world, no maters new or old which will increase companys growth.
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Conclusion:
Since 1960, Dominos conception has proved to be a successful company in fast food industry. The decline in the economy sector posed a barrier for them along with customers becoming more health conscious and quality conscious, forcing Dominos to lead towards healthier options and make healthier product for its customers. Dominos has shown that they are still remaining competitive by expanding more internationally. Their international sales volume has been a large asset to their companys profitability. Like any business, there are so many challenges to becoming internationalized in ways such as different taste, preferences and menu items list. With Dominos working hard by expanding more into international platforms, thus it is becoming much harder for other companies to follow their road map. Dominos is trying to stay leader for their competitors, Pizza Hut, McDonalds & Papa Johns and etc. Dominos continues to look improvement and competent in the future with the pizza industry to becoming more popular. And with the strong brand image that has built over the years, the Dominos is pushing hard and work hard to remain strong in the pizza industry.
References:
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