Dominos Pizza Marketing - Research Proposal Example

Dominos Pizza Marketing Proposal of the of the Table of Contents 0 Introduction 4 1 Background of the Research 4 1.2 Research Question 4 1.3 Aims and Objectives of Research 4 2.0 Literature Review 5 2.1 SWOT Analysis 5 2.2 Macro Environment Analysis 6 2.3 Competitor Analysis 6 2.4 Current Strategies of Domino’s Pizza, Inc. 7 3.0 Research Design 7 3.1 Research Objective 7 3.2 Research Design 8 3.3 Data Collection Instrument 8 3.4 Research approach 9 3.4.1 Inductive Approach 9 3.4.2 Deductive Approach 9 3.4.3 Research Approach Adopted 9 3.5 Approach to the Problem 9 4.0 Timing and Cost 11 4.1 Timing 11 4.2 Cost 11 5.0 Conclusion 12 6.0 References 13 7.0 Appendices 14 7.1 Appendix 1 14 1.0 Introduction 1.1 Background of the Research Domino’s Pizza, Inc. is one of the top multinational pizza delivery chains which was founded in the year 1960 and is headquartered in Michigan, USA. At present, it is functioning as the 2nd largest franchise pizza delivery company worldwide. It owns 9351 stores situated in 50 countries around the world. The company operates their business basically in three different segments i.e. domestic stores, domestic supply chain and international stores (Annual Report, 2013). It offers a wide range of products including pizza, pasta, American-Italian cuisine, sandwiches, desserts, wraps and chicken wings. Domino’s Pizza, Inc. made unyielding technological advancement in order to improve their customers’ experience. The company has also declared a plan to rebuild, refurbish or relocate their overall international store footprint by the end of 2017 (Annual Report, 2013). The main purpose of this research proposal is to identify the marketing problems which are faced by the company and to suggest some alternatives for it. 1.2 Research Question The research question is to explore the problems associated with Domino’s Pizza, Inc. It is facing many problems including lack of management due to the huge number of stores, ambiance is considered not as good as its competitors, menus are not modified and elaborated and utilization of high amount of calorie as well as fat content within most of the alternative of the product line. Nowadays, people are becoming more health conscious so, they prefer healthier food. In such a scenario, using more amount of cheese in its products could be turn out as a problem for the company. Moreover, Domino’s Pizza, Inc. requires managing its stores in an efficient way. 1.3 Aims and Objectives of Research To deal with the research problem, following will be the objectives of the research proposal: To define the weakness and strengths of Domino’s Pizza, Inc. To identify the opportunities as well as threats faced by Domino’s Pizza, Inc. To analyze the environmental factors which are having an impact on the company. To identify the current marketing strategies of the company To suggest various approaches which will help Domino’s Pizza, Inc. to take appropriate decision to overcome its problems. 2.0 Literature Review 2.1 SWOT Analysis Strengths: Domino’s Pizza, Inc. is enjoying its popularity around the world. The fast services regarding its product delivery and the diversified product line is one of the strengths of the company. The company maintains hygiene in its production process. Domino’s Pizza, Inc. owns vast number of the franchise stores. It also maintains competent supply chain management and has strong marketing team for the purpose of promotion and advertising (Annual Report, 2012). Weaknesses: The weaknesses highlight the problems which the company is facing in terms of requirement of management for the huge number of stores. They are using huge amount of fat and calories in their products, which is affecting their sales because nowadays people are becoming more health conscious. Its ambiance is considered not as good as its competitors and menus are not modified and elaborated compared to its peers (Annual Report, 2012). Opportunities: Domino’s Pizza, Inc. has its growing presence in the developing markets especially in China and India. Youngsters are fond of fast food and give less importance to the local foods. The company has strong supply chain as well as distribution system which provides them opportunities to add new product in its product line (Annual Report, 2012). Threats: The changing behavior of the people and their preference of healthier food is a threat for Domino’s Pizza, Inc. Strong competition from the rivals is considered as a major for them (Annual Report, 2012). 2.2 Macro Environment Analysis The macro environment analysis will be carried out through the PESTLE framework which will help to identify the factors which are having an impact on the marketing decision of Domino’s Pizza, Inc. Political and legal factor: At present, the government is having control on the marketing and operations of the restaurants which are supplying fast food due to the health concerns. It will affect the operations of Domino’s Pizza, Inc (Bagley, 2015). Economical factor: The value of exports of the American food declined because of the drought as well as changes in the import demand from the overseas nations. Since 1990, the main goal of the monetary policy structure of US is to target inflation because controlling inflation safeguards the value/worth of money (Bagley, 2015). Social factor: US encompass the diverse culture as well as life style of people. The company maintains hygiene in its production process. Youngsters are fond of fast food but they are also health conscious which are affecting the sales of Domino’s Pizza, Inc (Bagley, 2015). Technological factor: In recent years the excellent business performance was because of the longstanding commitment towards research and growth department, which are aimed at augmenting productivity, boosting global competitiveness and building novel markets (Bagley, 2015). Environmental factors: US comprise of a business-friendly environment as well as appropriate time zone. There is alertness of environmental protection in terms of green food preference and the customers are willing to pay more for environmental friendly products (Bagley, 2015). 2.3 Competitor Analysis The main competitors of Domino’s Pizza, Inc. are the McDonalds and Pizza Hut, which also offer similar products. Pizza Hut is more popular than Domino’s Pizza, Inc. but their price for the products are high as compared to Domino’s. Domino’s Pizza, Inc. differentiates themselves in terms of price and service they offer to the customers. At Domino’s the price for the pizza is comparatively low. The customers can avail the service through telephone, tablet and mobile app and through online order. The outlet delivers pizza within thirty minutes of order. The employees are provided training for excellent communication and grooming purpose. The company maintains hygiene in the production process and the customers are also satisfied with the product quality and service (Srivastava & Verma, 2012). 2.4 Current Strategies of Domino’s Pizza, Inc. The current strategies of Domino’s Pizza, Inc. will be reflected through the STP process. Segmentation: The Company has adopted the geographic and demographic segmentation strategy. In terms of geographic segmentation, they have placed their outlets in various countries in order to find out the potential markets. The company segment the cities in terms of tier i, tier ii, small towns and metros. In terms of demographic segmentation, they have targeted the customers between the age group of 13-50 years and few customers are above fifty also. The customers are from lower middle class, upper middle class, middle class and high class (Oswald, 2015). Targeting: They have targeted the customers who desire to go for dinner at least once per week. Teenagers are much fond of fast food so, the company has priced their products from medium to high price. This strategy is adopted so that the teenagers as well as college students can easily afford it (Oswald, 2015). Positioning: Domino’s Pizza, Inc. attempts to extend the engagement with the customers through the new positioning strategies which focuses on bonding and relationships. The wide range of products and the affordable pricing policy has helped the management to secure a competitive position in the market (Oswald, 2015). 3.0 Research Design 3.1 Research Objective The objective of the research proposal is to discover the problems associated with Domino’s Pizza, Inc. It is facing various problems including lack of management due to the huge number of stores, ambiance is considered not as good as its competitors, menus are not modified and elaborated and utilization of high amount of calorie as well as fat content within its products. 3.2 Research Design A sampling method has been employed by taking the sample size of 50 participants as well as it also includes 100 respondents who will be interviewed through computer-aided telephonic interview (CATI). It is a computerized questionnaire which is administered to the participants over the phone. The age group of people falls under 13-50 years of age because fast food is loved by all the age groups. Convenient sampling method will be used for conducting the primary research. This method assists in avoiding the complexities which is related to the random sampling method. This method will be used because it is simpler and it also involves selecting the respondents based on their vicinity to the researcher (Patton, 2002). 3.3 Data Collection Instrument Primary data: Primary data will be collected from the set of 50 participants by means of questionnaire survey and 100 respondents will be interviewed by means of computer-aided telephonic interview. Large sample size has been taken to reach at the conclusion in more appropriate way. The research design that has been adopted includes questionnaire method (See Appendix 1). It will help to assemble the responses regarding their feelings and preference of fast food (Malhotra, Birks & Wills, 2012). It will further assist in discovering the problems which are currently faced by the company. The open as well as close end questionnaire will help to identify whether customer prefer fast food over local food or not and whether they have complaints regarding the ambiance and menus of Domino’s Pizza, Inc. Secondary data: Secondary research has been adopted to discover the problems which are faced by Domino’s Pizza, Inc. The SWOT analysis helped to explore that the company is facing problems in terms of requirement of management for the huge number of stores around the world. Their sale has also been affected because of using huge amount of fat and calories in their products. People’s concern about their health does not allow them to have fast food in more quantity. Analysis on the environmental factors focuses on the fact that the government is having control on the marketing and operations of the restaurants which are supplying fast food due to the health concerns. The fast services regarding the product delivery and the diversified product line is one of the strengths of Domino’s Pizza, Inc. 3.4 Research approach 3.4.1 Inductive Approach This approach helps to inspect the behavior as well as entails connection between the behaviors. When the activities are completed, researcher is capable to reach at a certain position whereby a methodical conclusion is offered (Gratton & Jones, 2010). 3.4.2 Deductive Approach This approach provides the researcher with a method to test the reliability of statement and it starts with the development of various theories. It serves as an unyielding base, depending on which a viable conclusion is reached (Gratton & Jones, 2010). 3.4.3 Research Approach Adopted Deductive approach will be adopted because initially it addresses a broad issue and afterwards the main focus is paid on addressing main feature of the research topic and problem which has been discovered (Mukherji & Albon, 2009). 3.5 Approach to the Problem The secondary research helps to discover certain problems which are associated with Domino’s Pizza, Inc. It has been analyzed that as the company is using more fat and calorie elements in their products, so the threat of the alternative products in terms of the organic food as well as low calorie processed food can generate market competition for Domino’s Pizza, Inc. The severity of the government regulations towards the supply of fast food may hinder the market share as well as growth of the company. Within the youngsters, the increased tendency of obesity can shift their preference towards the low calorie food item. Moreover, the novel range of product offerings by the competitors can also reduce the customer traffic of Domino’s Pizza, Inc. To address the above problems various suggestions have been offered to the company. As Domino’s Pizza, Inc. is famous for its brand name and fast delivery service and is maintaining a good position in the market so, they needs to utilize its present financial gains as well as market position in order to create a competitive position. The company can provide discount on their products on the weekends to attract more customers and to maintain their revenue. As people are becoming more health conscious so, they need to introduce several innovative low calorie food as well as organic food options in their product line. Domino’s Pizza, Inc. should invest more in the advertising and promotion campaigns to make aware about the new product offerings. The promotional method should focus on the food value of their new offerings. The company should appoint more personnel who can efficiently manage the operations of their various stores around the world. They should also make sure that their maintenance and the production process is following the regulations of the local government. This will facilitate Domino’s Pizza, Inc. to enhance their market share and reputation in front of the competitors. Apart from these, the company can also introduce their prevailing product line to several new global markets in order to get rid of the threats of product life saturation. All these approaches will help the company to enhance their revenue as well as attract and retain more customers. 4.0 Timing and Cost 4.1 Timing Activity Week Secondary research 1-2 Primary research including qualitative and quantitative fieldwork 3-5 Questionnaire development 6 Analysis 7-8 Presentation 9-10 Final report available 11 The table above indicates the timeframe for the project. Secondary research about the opportunities, strengths, macro environmental factors, strategies and problems of Domino’s Pizza, Inc. will be carried out in the first and second week. The time frame for the primary research will range from third to fifth week. Questionnaire will be developed in the sixth week. Based on the questionnaire, analysis will be driven in the seventh and eighth week. Result which will be derived from the analysis will be presented in the ninth and tenth week. The final report will be presented in the eleventh week. This will meet the deadline which is set out for the report. Weekly progress reports will be sending via emails to have a room for corrections if required. Final dissertation will be submitted in the eleventh week so that if any further research will be needed then it could be done in the next two weeks. 4.2 Cost Phase Description Cost Questionnaire form Printing charges of questionnaire form $1,000 Quantitative research 100 CATI interviews $10,000 Human resource cost Travelling cost of researchers who are conducting field interview $ 6,000 Total cost $17,000 The costs quoted above do not include the VAT charges and are also subject to standard terms and conditions. The costs include the printing charges of the questionnaire forms, travelling costs of the researchers who will conduct the interview with the respondents and the charges of computer-aided telephonic interview (CATI). 5.0 Conclusion The research proposal has been prepared to explore the problems faced by Domino’s Pizza, Inc. The SWOT analysis helps to identify the strengths as well as opportunities for the company. The company maintains hygiene in its production process and also has strong marketing team for the purpose of promotion and advertising. The company has strong supply chain as well as distribution system which provides them opportunities to add new product in its product line. Macro environmental analysis has been carried out to identify which factors are having an impact on the operations of the company. The Company has adopted the geographic and demographic segmentation strategy and targeted the customers who desire to go for dinner at least once per week. Based on the secondary research various problems have been analyzed and appropriate solutions are also suggested to overcome the problems. 6.0 References Annual Report. (2013). Domino’s Pizza 2013 Annual Report. Retrieved from http://annualreports.com/Company/3022. Annual Report. (2012). Domino’s Pizza 2012 Annual Report. Retrieved from http://media.corporate- ir.net/media_files/IROL/13/135383/2012_Annual%20Report_single%20pages_8.5x11.pdf. Bagley, C.E. (2015). Managers and the legal environment: Strategies for the 21st century. Boston: Cengage Learning. Gratton, C., & Jones, I. (2010). Research Methods for Sports Studies. UK: Taylor & Francis. Malhotra, K.N., Birks, D.F., & Wills, P. 2012. Marketing research an applied approach. Harlow: Pearson Education Ltd. Mukherji, P., & Albon, D. (2009). Research Methods in Early Childhood: An Introductory Guide. London: SAGE. Oswald, L.R. (2015). Creating Value: The theory and practice of marketing semiotics research. Oxford: Oxford University Press. Patton, M. Q. (2002). Qualitative research and evaluation methods. London: Sage Publication. Srivastava, R.M., & Verma, S. (2012). Strategic management: Concepts, skills and practices. New Delhi: PHI Learning Pvt. Ltd. 7.0 Appendices 7.1 Appendix 1 The survey has been conducted to know about the preference of the customers regarding the fast food and it will help to know about the problems faced by Domino’s Pizza, Inc. 1. How old are you? A) 13-21 B) 21-30 C) 30-40 D) 40-50 E) 50 above 2. Which group includes your monthly income? A) Less than $20,000 B) $20,000 - $30,000 C) $30,000 – 40,000 D) $40,000 – 50,000 3) $50,000 + 3. On an average how many times do you eat fast food in a week? A) Never B) Once a week C) Twice a week D) Thrice a week E) No limits 4. Answer the following questions based on the degree of their importance Questions Strongly disagree 1 Disagree 2 Neutral 3 Agree 4 Strongly agree 5 It is important to me to know the nutritional value of food at restaurants. I believe that the fast food could be harmful to my health. I have a preference for fast food because it is convenient I favor fast food as it tastes good I consider that all the fast food is harmful. I give more importance to the hygiene factor when choosing a fast food restaurant The ambience of Domino’s Pizza, Inc. is not as good as Pizza Hut. The menus of Domino’s Pizza, Inc. are modified and elaborated. 5. Rate the following factors when choosing the fast food restaurants in order of importance to you. Choose 1 as the most important and 5 as the least important. 1 2 3 4 5 Taste Price Hours of operation Cleanliness Reputation Safety Convenience Number of menu offerings Nutritional value Read More