DOMMINO PIZZA MARKETING STRATEGY - Coursework Example

? DOMMINO PIZZA MARKETING STRATEGY 3RD NOV BACKGROUND OF DOMINO PIZZA COMPANY The founder of the Domino pizza company was Tom Monaghan who began this company as a pizza delivery store. That is the reason there are three dots on the logo. His hard work and the integrity he has dedicated in his company have paid a lot and this has been a major boost to many people who have benefited from this. Many people have adopted this model of the pizza delivery and have had great success in it (Tudge et al 2004). However, domino pizza has remained the market leader in the delivery of the pizza and has become one among the current world’s most successful companies. In addition to this, the company as managed to open around 8000 stores in the world and penetrated more than 50 international markets. Tom encouraged the franchises to have their eyes on protecting the company’s image, service, product and safety. He encouraged the domino franchises to promote good relationships with communities surrounding them and to ensure that their services were not just aimed at promoting just a good taste of the pizzas, but also on other factors like the social aspect. It is to be more of many businesses under one and if the franchises are to follow in dominos footsteps, then they are to do much more than invest to get money. Tom is seen to understand that for a successful business to be there must be the success of the world around that business as this was imperative of their success (Bijman et al, 2006). This would be an investment with people who have a passion and energy to this creating enough time to do this. The brand domino pizza company is located in Ann Arbor Michigan in the USA and has given the other franchises the rights to operate on this name in other companies like in the UK and Ireland. The DPG is a public limited company whose stock is quoted in the stock exchange and its current standings is at Financial Times and the London Stock Exchange (FTSE) 250 INTRODUCTION In recent decades, there has been need to improve the safety of food supply in Europe and other countries in the west and Domino company has not been left out. The laws governing public food safety have been reviewed and firms at various levels of the supply chain have come up with means of improving safety of food supply. As a result, there has been an improved standard of food safety rules at national, regional and international levels. A number of regulations have been put in place such as standards regarding the nature of the final product, the techniques of production in the food supply chain and the legal compliance of the supply chain. At the multinational level, there have been proposals on how the standards of food supply can be improved by the domino company or corrected in areas of weakness. Some of the issues that have been discussed include improvement of infrastructure, facilities and techniques of production, modes of processing as well as modes of quality assurance. STATEMENT OF THE PROBLEM There has been a great deal of competition in the pizza industry from pizza huts, papa john’s who are also distributors of pizza in different regions (Blythman, 2005). This has reduced the profits in the business and has reduced the number of customers that are available for this company to deal with. Most of these customers have been shifting from one company to another and Domino Company has had a great deal of losses emanating from the high costs of operation and production visa reduced market share. There are other markets which are yet to be explored like those of china which are yet to be explored. Te problem has been that the Chinese require places they can take pizzas while relaxing like in restaurants (Baldwin, 2009). This is not in line with what the company has been used to and therefore has to try and deal with that before the other companies establish themselves in such places. The company is developing marketing strategies that will ensure that this is dealt with including opening new businesses in china that will sell this pizzas and also have the distribution channels set in place well in that place. This will include training the new workers on the tasks. The company will transfer the experienced workers who are flexible to work in such a place and then replace them with the new trainees. This will allow a smooth flow of operations and a wider coverage. AIMS: To understand the company operations and guiding principles To identify the already existing market strategy and its effectiveness To identify the strengths and weaknesses of Domino company To identify the opportunities and threats that the company is facing To look into the solutions that can help solve the problems and threats identified To get to achieve the aims above, the researcher will look into the strategies at hand in the company through their website and through workers in that company. In addition to this, he will get the information from such people as may be close to the company in terms of having used these products and identified with the quality. These will also help us to get to know how the company responds to the problems that the customers project to them. It will be important to digest the changing systems and strategies that the company has adopted over time. This will help the researcher to identify the direction of the company plus helping to almost depict their next move or else to change the flow in that direction. To get to know the threats and the opportunities, the researcher will follow on to know the other competitors strengths and weaknesses so that the company can capitalize or build on these strategies. In doing this, the researcher will have to approach even some of the people who have first hand information on the competitors as well as he customers in the other companies to identify why they choose them over Domino company, the strategies they use and also to know whether there are things that they dislike in the same companies so that this company can capitalize on that However, in doing this, the researcher will have first require know the operations of the company, what it stands for and what makes it to be what it is to date, its unifying factors and its position as a company The company’s: [i] Products and services This is a delivery company and not a restaurant, fast food joint or even place to place orders as take away. It exists to serve the customers with quality pizzas fast in their destination at the right time and ensure that this is done with the utmost shortest time possible (Baldwin 2009). In doing this we ensure that our customers are fast to be considered before anything else and these are freshly delivered while still hot. The company has been named as the pizza delivery experts due to its performance and use of fresh ingredients in its preparation of the pizzas. There are award winning foodstuff teams that carry out the quality evaluation as well train the other employees on the quality output required so that all of them at their own capacities can become high performers in their own capacities as individuals (Tudge et al 2004). The customers experience is made more convenient and enjoyable through the innovations and the new techniques that the company adopts like the ordering of the pizzas through the TV or online. These innovations are designed with customers and profits in mind taking the example of the first heated delivery bags which the company was the first to introduce in this market [ii] Brand. The company holds high esteem for its brand and takes more time to protect the image of its brand to ensure that both the franchise and the employees’ jobs are secure. The brand marketing plan and funding is done through the National Advertising Fund which is made up of franchise contributions, this has been done to target the age 18-35 who are the major markets of their the products and this helps to secure maximum results for the investment(Tudge et al, 2004). The aim of the company comes with making the company one among the foe that go way beyond competition and the set the company standards at a higher level than that of the companies that produce the same product and thus ensure that its services match no other, its products are no comparison and that the strategies used are able to reach the customers within the most minimum time (Seth and Randall, 2005). This is done through ensuring that everybody that is involved does his best to produce the best as the company has a policy that the place that one is holding is the place r position that will make or break the trend that has been set The company supports its franchises as considers them to be both business partners as well as customers. The main aim here remains to ensure that Domino pizzas hit the market as surprises to the competitors and to this, the DPG employs 250 employees in the range of store support functions in the UK. Each of these is well versed with the company in that to make the customer satisfied, it will come with strong sales, personal excellence and the high profit motive. With this in mind, all the 250 people are able to focus on similar agendas and in the making of the day to day decisions. The company also promises to support the other franchises which may wish to begin the Domino pizza business by promising to offer delivery services to them and actually does that (Seth and Randall, 2005) To ensure good performance right from the beginning, the company has a franchise development program for anyone who chooses to join in the Domino business. This is a four weeks intensive training that enables one to be thoroughly equipped with skills and knowledge before being allowed to take to any tasks that there may be (Bijman et al, 2006). This covers wider areas such that at the end of the training, one is almost ripe and can be trusted to handle the customers, prepare good pizzas as well as be able to begin his own pizza delivery company [iii] Aims and objectives The company aims at breaking in and expanding in the British market. This has been taken as a penetration strategy as the British market has not yet been reached. Improvement of customer relations as has been. This is aimed at ensuring that there is a one on one basis with the customers to ensure that greater concern and response is adhered to (Dawson, Findlay and Sparks, 2008). This is also a way to get feedback from the customers as first hand and reliable Improving the efficiency in the making of the pizzas, this will ensure that the customers’ needs are met and that the company is able to cope with the large number of orders that are being made Improve the efficiency in the delivery of the pizzas. This has been done through employing more drivers who have the experience in driving and who can do that fast and do it safely The company is aiming at strategies to lower the pizza prices. This is by adopting the cost reduction measures but ensuring that these are not done at the expense of the workers or the customers or at the expense of the quality of the pizzas so produced. The company aims at improving on the profits. As it is with all the companies, Domino pizza is not exceptional and that was the main aim of joining the business. I In order to connect with the customers the company receives the placed orders and reconnects with them through the real time confirmation of delivery time and the order confirmation (Dawson, Findlay and Sparks, 2008) [iv] Mission This company is the largest and fastest pizza delivery franchise in Australia with many network stores and sales than any other outside Australia. The company, under the leader ship of its CEO is very much focused to performance(Dawson, Findlay and Sparks, 2008). it has very many employees who have their target in the greater arena where they aim at being the number one company in pizzas and also the same number in the customers minds. This helps to improve the sales. The mission statement is a true but unique way of expressing our role, that is of selling more pizzas and having more fun. With this in mind, the employees focus on having more fun and by so doing, end up selling more pizzas(). This makes working with Domino more enjoyable and helps cultivate loyalty with the company. Due to this the company has low employee turnover as no one wants to leave due to that fact of having all the business as part of someone’s life, and from people who share the same dream of excellence and fun in their normal day to day working culture (Tansey and Rajotte, 2008). The company also strives to make all the franchises successful. In regard to this, they have to acquire the following attributes; a drive to succeed, commitment and passion in doing so, strong leadership skills and excellence, good interpersonal skills and administration skills, entrepreneurial fair and the ability to have fun and work in an environment that is so humble and still produce the best that there can ever be (Seth and Randall, 2005). [v] Values: Treating people as would expect to be done Offering much for less as produce Be able to measure and manage what is important as well as sharing it. Thinking big and allowing growth Incentivizing whatever is to be changed Promote from within Setting the bar high so as to grow through training and never stop learning Adopting the fact that we are exceptional and not ordinary [vi] Tagline Since 1973, the company has had a policy that the customer would be able to receive the pizzas within the first 30 minutes after placing the order. This continued for several years but was later dropped after the company suffered losses due to reckless driving to meet the promise (Seth and Randall, 2005). As a result of this, the company has had several lawsuits against it and therefore decided to withdraw from that promise. In 2007, the company adopted a new slogan of you got 30 minutes and eluded from the previous one which had a promise. However there are places where the company offers 30 minutes guarantee for free , for example the case of India [vii] Customer analysis, market and business segmentation The Domino Company works under three segments, that is, domestic stores, domestic supply chains and international. The company’s target market segmentation has been the consumer who has required quality pizzas delivered to them at the right time and at reduced costs (Tansey and Rajotte, 2008). The customers have always been price sensitive as the reduction of the prices leads to increased sales whereas the increase even slight ones leads to reduced demand and reduced sales revenue. Dominos does not have places to dine at their stores but instead have this elsewhere; their focus happens to be on places with large numbers and not basically based on the geographic aspects. In addition to this, the company sought to reach out to many people through its online strategy where the customers just place orders there and also are aimed at meeting these customers’ needs with utmost efficiency The company has strategically positioned itself well to reach the customers who great value for quick service pizza. This has been done through an online software that helps them identify places that are highly populated or have great number of customers who take pizza and also around college areas (Tansey and Rajotte, 2008). [viii] Market strategy The market strategy for this company has had great improvements. In their TV segments, they have shown in black and white about how the customers have complained about their former pizza product. In the same segment, they have introduced their new and improved higher quality pizza and then the customers have commented on the same also highlighting some of the ingredients that have been used to produce the delightful taste (Fearne, Hughes and Duffy, 2002). This has demonstrated the new pizza as well as built a better relationship with the customers as it has been viewed that the Domino Company listens to its customers. In the recent past, the company has also added sandwiches to their menu and this has had a great improvement to their sales and their image as well (Eastham, Sharples and Ball, 2001). This company was the first one to optimize their website as far as the sale of the pizzas was concerned. The customers are able to place their orders online, trace their delivery and as well as sending the customer an email confirming that they have been delivered at their points of destination (Fearne, Hughes and Duffy, 2002). This has had great improvements on their sales turnover and has improved its image and reputation among many that really admire this strategy. This has also boosted the confidence of the customers as they know that their orders are safe and don’t Have to be followed around manually. It has also improved the efficiency of performing duties and reduced the number of accidents that emanated from the fast drivers. That promised a great deal as they did not hide their flaws as it happens with most f the companies and never promised things as it is done by many companies in times of recessions and fail to honor them SWOT ANALYSIS Strengths The strength of the company lies in its ability to remain unscathed in the midst of raging competition. The company has majored on better manufacturing methods and this is what has made it to be well known by the consumers (Fearne, Hughes and Duffy, 2002). The company has been hard working and its persistence in moving forward by looking outside the pizza box has allowed it to remain in the control. It has recognized in this industry as the leader of innovation. This has been to develop a better product for the consumer without straying much from the original one It recognizes its fowls and listens to the customers. In addition to this, it has values that drive all the workers to the same direction and guides them in making the right choices (Tudge and Colin 2004). It has been able to produce and deliver its products efficiently and in the right time to the customers. Their 30 minutes tagline really worked with many were it not for the accidents Weaknesses The company developed the Noid villainous character that used to market the pizzas for them. In this, the advert would say that the company could be able to deliver hot pizzas even in the coldest of days (Fernie, Fernie and Moore, 2003). This however was short lived and later led to more confusion and harmed more than the good it was to do The best thing with this company is that it always aspires to learn from its mistakes and apparently did (Dudbridge, 2001). It introduced the heat bag that was meant to solve this problem once and for all It has since aimed at good customer experience rather than being involved in pricing battles Opportunities The opportunities for growth have been in different areas especially under the changing times and the technology plus the culture of the people. They have identified different categories of cultures and developed a cultural mix towards the same(Bowersox, 2002). These opportunities are both in the domestic and international front. If the company can focus on it, then it can be able to well pay its long term debt and improve its performance (Blythman, 2005). These opportunities are, developing a loyalty trial because it has been viewed that the average Domino customer orders at least five times a year while the quick service pizza customer can go up to 17 times/. This is to show that the repeat purchases are underperforming and this is an opportunity to address these issues. The status program conducted can improve these unrepeated sales and will help in the improved performance of the company sales Secondly, there needs to be an increased improvement in china which is lagging behind with just 15 franchises as compared to India with 300(Blythman,2005). The company should come in and develop a strategy to reach to them through their needs as they prefer to have sit-ins rather than just delivery ones. This calls for the company to go way out of their normal performance and offer the services as they are required by the customers as not according to their tradition of just delivering Threats The threats that are there are based on the rising food prices especially of wheat and cheese which are the raw materials that make up the pizza. There has been a rise in the energy costs. The cost of gas has risen by more than two thirds and that of diesel too which is used during transportation. This has reduced the profits significantly Increased diversity in the products being offered has become a threat due to the high costs and controls required(Baumann and Johnston, 2009) Although the aim has been to increase profits through reaching out to more people before the other companies, it would be wise enough to try and do this to manageable level and not in a hurry ,otherwise this can extend to level of which recovery would be futile CONCLUSION The company has a steady business but it has a debt that makes it riskier than its competitors The future expectation of a sustained growth has occurred due to it having been priced in the DPZ Achievement of a sustained long term growth can be best achieved through. Attaining revenue through established domestic markets Increasing the china expansion RECOMMENDATIONS Dominos Company should try to keep the already existing workers as training new ones will be expensive and may hinder the necessary amount required to curb the debt from being realized. There should also be dismissals and redundancies for those who are working below the capacity as these are liabilities The company should try to maintain cleanliness especially because they are dealing with food and should check on the work hours including the holiday entitlement They should carry out continuous training programs to their employees. This will ensure that they develop new skills and that they are well rounded to perform major task with a lot of ease. The company should carry out researches to develop their capacity and performance to adapt to technologically well performing products and match to what the customers are expecting like the heat bag that came through research. Communication is very vital in any place. The company should develop better communication channels both internally and externally so that in case of a problem that needs to be addressed fast, this can be done. Bibliography Ashley, B. Hollows, J. Jones, S. & Taylor, B. (2004) Food and cultural studies, Routledge. Baldwin, C.J. (Ed) (2009) Sustainability in the food industry, London: Wiley-Blackwell Baumann, S. & Johnston, J. (2009) Foodies, Routledge Bijman, J. Omta, O. Trienekens, J. Wijnands, J. & Wubben, E. (Eds) (2006) International agri food chains and networks: management and organization, Wageningen: Wageningen Academic Publishers. Blythman, J. (2005) Shopped: the shocking truth about British supermarkets, Harper Perennial Bourlakis, M. (Eds), Vlachos, I.P. and Zeimpekis, V. (Eds) (2011) Intelligent Agrifood Chains and Networks, London: Wiley-Blackwell. Bowersox, D J (2002) Supply chain logistics management, McGraw-Hill. Dawson, J. Findlay, A. and Sparks, L. 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Waiblinger, S. & Haslberger, A. (Eds) (2007) Sustainable food production and ethics, Wageningen: Wageningen Academic Publishers. Read More