dominos Pizza

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  • 1. Dominos
    Case Study Presentation
  • 2. Pizza Industry & Dominos share
    $30 Billion sales per year
    Highly fragmented with 61000 outlets
    94% of the population of the U.S. eats pizza.
    Dominos with 8000 stores has a revenue of $4 billion
    About 90% of the company's 5,155 domestic stores are franchised.
  • 3. Domino's holds a 19% share of U.S. pizza deliveries
    Domino's domestic and international sales
    Domino's domestic same store sales have lagged while international stores continue to outperform
    Domino's domestic and international store count
  • 4. The rise of Dominos
    Started with a $500 by Tom Monaghan and his brother in 1960 as Dominick’s in Michigan.
    1965:Name changed to Dominos and first franchise opened in Ypsilanti.
    Product differentiation
    Hot pie in 30 minutes or less
    Franchises opened in college towns and military bases.
    Introduced Dough trays, corrugated pizza box, insulated bags.
    Dominos passed 200 locations by the late 1970’s
  • 5. The rise of Dominos
    1980’s: More than 5000 locations & $2 billion in sales.
    Innovative advertising techniques such as purchase of Detroit tigers.
    Involvement in various philanthropic activities.
    Recognized the need to adapt to local cultures.
    Hurdles Faced:
    1968: Company headquarters were destroyed in the fire.
    1976: Amstar corp., maker of Domino sugar filed trademark infringement lawsuit.
    1993: Firm discontinued 30 minutes or less campaign keeping driver safety into concern.
    Replaced it with total satisfaction gaurantee.
  • 6. The rise of Dominos
    1998: Significant portion of ownership to Bain Capital Inc.
    David Brandon takes over the reins of the company.
    Pizza today honored the company for outstanding sales and strong leadership, innovation and customer satisfaction.
  • 7. Tom Monaghan David Brandon Character Similarities
    Customer Centric Approach
    Leading from the front in the turbulent times
  • 8. Tom Monaghan David Brandon Character Differences
    No Prior Experience in the field
    Risk Taker
    Strong stand on his Intuition
    David Brandon
    Diverse Experience and knew about the functioning of corporate world
    Calculated player
    Worked in constraints of market economy
  • 9. Why Tom Choose to Get out of Dominos
    Interest in Philanthropic activity and religious pursuits
    Found it unreasonable and not in best interest of company to be involved in day-day activity
    Heart somewhere else
    Dominos be lead by someone with professional and Zeal
  • 10. What are pizza parlors doing differently to differentiate their products?
    • Pizza Type
    • 11. Customizing according to local needs
    • 12. Innovative Pizza variant offerings
    • 13. Product Diversification
    • 14. Product with health benefits
    • 15. Pasta and Breads included
    • 16. Salads included
    • 17. Positioning and Target
    • 18. Targeted as lunch items
  • Continued…
    • Innovative packaging
    • 19. Advertising
    • 20. IT/Telecom being used to advertise through emails and SMS
    • 21. Club Memberships with discounts
    • 22. Online order and through DTH medium
    • 23. Experience
    • 24. Family Dining Experience
    • 25. Home delivery Model
  • Successful Entrepreneurs
    Steve Paul Jobs
    Ray Kroc
    • Paper Cups
    • 28. Multi-mixers (Milk Shake)
    • 29. McDonalds
  • Common Attributes BetweenSteve Jobs & Ray Kroc
    Risk Takers