Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Domino's Pizza - The World's Second Largest Pizza Chain
1. SCHOOL OF HOSPITALITY AND
TOURISM MANAGEMENT
UNIVERSITY OF JAMMU
REPORT ON - “DOMINOS”
SUBMITTED TO: SUBMITTED BY:
MR.RAVINDER RADHIKA GUPTA
DOGRA ROLL NO – 12
2. Domino's Pizza
Type: Public
On the web: http://www.dominos.com
Employees: 10,900
Employee growth: 6.9%
This company knows the rules of the pizza delivery game. Domino's Pizza runs the world's #2
pizza chain (behind YUM! Brands' Pizza Hut division), with more than 9,300 delivery locations
in about 65 countries. (The chain includes almost 5,000 stores throughout the US.) Domino's
menu features several different styles of pizza with a wide array of topping options, as well as
additional items such as bread sticks, cheese bread, and chicken wings. Its stores are principally
delivery locations and generally do not have any dine-in seating. The company owns and
operates more than 450 locations in the US, while the rest are franchised.
Key numbers for fiscal year ending December, 2011:
Sales: $1,570.9M
One year growth: 11.9%
Net income: $87.9M
Income growth: 10.2%
Officers:
Chairman: David A. Brandon
President, CEO, and Director: J. Patrick Doyle
EVP Finance and CFO: Michael T. Lawton
Competitors:
Little Caesar's
Papa John's
Pizza Hut
Brand ambassador
3. The company also recently appointed Bollywood star Arshad Warsi as its new brand
ambassador, in keeping with its plans to reach out to its target audience between the
age group of 25-35 years. Its first advertisement featuring Warsi is going on air from
November 24, that will announce its new product, the Cheese Burst Pizza, that has a
marketing spend of around Rs 6 crore.
Domino's India ideally launches around three to four new products every year, and it
spends around Rs 20 crore annually in advertising its various promotional schemes and
new launches.
The History of Dominos Pizza
Dominos Pizza is the second largest
franchised pizza chain in the U.S.A., and the
history of Dominos Pizza is similar to its rival
Pizza hut; two brothers started it with
borrowed equity in the sixties. Tom and James
Monaghan bought a small Michigan Pizzeria
called Dominick's, which was jointly run by
them until James traded his share for a second
hand car. Tom revitalized the image by
changing the name to Dominos Pizza .
By the late seventies there were over 200
franchise pizza businesses in the States and
Dominos Pizza was ready to go International.
In 1983 Dominos Pizza opened its doors in
Winnipeg, and in the same year opened its one
thousandth store. Later that same year
Domino's corporate history was to begin in Australia with its first franchise in Brisbane, on the
East coast.
4. The locations for Dominos Pizza grew quickly from here as they sprung up in all sorts of diverse
places including Bogotá. Despite Domino's Pizza springing up diverse locations, they were still a
very traditional company. Domino's Pizza menu had been kept very simple and streamlined;
they only sold one type of pizza crust which they named the regular pizza. Domino's Pizza dough
was shaped by tossing the dough and pulling it into shape. The pizza menu included just two
sizes of dough, it was not until much later that competition forced them to add a medium and
extra large sized pizza. There were no such things as side orders you could have Pizza, pizza or
Pizza and you could only drink a Coke with it.
In 1989 the history of Domino's Pizza was to change when the DeepPan pizza was introduced,
for the first time in twenty five years the company was being forced to react to market demand.
This move consolidated the financial base and ensured the growth of Domino's Pizza , as the
same year they opened their five thousandth store.
The wind of change had started and by 1992 they were to introduce the first non pizza item to
their menu, this was obviously a reluctant move as it was bread sticks. Domino Pizza dough was
already on hand and the making of bread sticks is not so different.
For many years the company had advertised that if the delivery of their pizzas took longer than
thirty minutes then the pizza would be delivered free. This was parodied by the Teenage Mutant
Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the delivery.
The turtles pizza was late and they received a refund of $3 for "being two minutes late, dude!"
However the benefits to Domino Pizza was enormous as millions of kids were to hear the name
of Domino Pizza endorsed on celluloid. In 1993 Domino Pizza discontinued this policy and
stated that if a customer was unhappy they could have a new pizza or a refund.
By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the
menu. At the same time the company hit the African continent as they opened a store in Egypt .
By 1996 Dominos Pizza website was launched and the company declared global sales of nearly
$3 billion.
Despite their reluctance to add a wider range menu they have as a company given the pizza
industry many innovations that have now become standard. The belt driven pizza oven was the
5. invention of Domino Pizza and they began using corrugated cardboard delivery boxes which
were very effective at holding the heat within the pizza during the delivery time. Ever mindful of
the fact that a cold pizza must be about the worst dining experience on earth Dominos pizza
introduced the "Heat Wave," a portable electrical bag system that keeps the pizza hot during
delivery.
By 1997 they had also had an internal modern facelift
as their stores were all brightened up and the company
introduced a new logo. Domino Pizza continued to
grow exponentially and in 1997 they opened seven
stores in one day but on 5 different continents.
In 2004, SuperBowl Sunday was the mosthecticpizza
deliverydayof the yearwhenDominosPizzasold overa
millionpizzas,whichwasan increase of 42 percenton
theirnormal Sundaytradingvolume.Asthe company
continuestogrow so rapidlyitisjust as well the practice of
addinga dot ontothe logo wasdiscontinuedafterthree outletsasDominosPizzanow hasoverseven
thousandoutletsglobally
Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor,
Michigan, United States of America. Founded in 1960, Domino's is the second-largest pizza
chain in the United States and has over 9,000 corporate and franchised stores in 60 countries and
all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The
menu features both vegetarian and meat pizzas, chicken wings and boneless chicken, potato
wedges, garlic breads and a variety of dessert items including cookies and waffles, Ben & Jerry's
ice cream and a variety of soft drinks including Coca-Cola, Fanta, and Sprite. Domino's has
restaurants in all of the world's major cities such as New York, London and Chicago.
Charitable activities
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish
Foundation of America. That same year, the company stores in New York City and
The Domino's Pizza Logo
6. 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 RedCross' disaster relief effort.In 2004,
Domino's began its current partnership with St. Jude Children's ResearchHospital,
participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more
than $1.3 million in 2006.
Dominos Australia donates large quantities of pizza to natural disaster victims. They also provide
food to isolated towns in rural areas that don't have access to large amounts of food. Dominos
Australia has partnerships with Mission Australia, Royal Flying Doctor Service, Starlight
Foundation and Marymead.
Advertising and sponsorship
Arie Luyendyk's Lola-Chevroletwhichwonthe 1990 Indianapolis500 forDoug ShiersonRacing.
In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That
concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the
television commercials that they created. The catchphrase associated with the commercials was
"Avoid the Noid."
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 dropped
the idea and never promoted it. The code was never deactivated though 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 promotion code and then shared it with others on
7. the Internet. Domino's deactivated the code on the morning of Tuesday, 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 the team 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."[49] Domino's also sponsored
Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR
Sprint Cup Series.
Domino's Pizza was briefly seen in the 1990 film Teenage Mutant Ninja Turtles. Furthermore,
from 1998 to 2008 the company provided funding for the American cartoon sitcom "The
Simpsons".
DOMINO'S PIZZA CORPORATE FACTS
Each day, more than 1 million customers enjoy hot, delicious Domino’s Pizza products on every
inhabited continent on Earth, because we operate over 9,000 stores in more than 60 countries, all
dedicated to our focus of providing great-tasting pizza delivered directly to your door or
available for carryout. We pioneered the pizza delivery business, and our total system sells more
than 400 million pizzas worldwide every year.
Great Name Brand Recognition
Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been
named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three
times.
Strong Teamwork
Domino’s Pizza Inc.’s leadership, team members and franchisees aspire to achieve our collective
vision of being Team Members and Franchisees on a mission to be the best pizza delivery
company in the world. We operate through a set of Guiding Principles founded on integrity and
putting people first (our shareholders, customers, suppliers and employees) – Guiding Principles
that serve as our compass as we manage our business.
8. Innovating the Pizza Delivery Business
Throughout our history, in addition to pioneering the concept of efficient delivery of made-to-
order pizzas, we have been part of innovations that have made significant impact on the pizza
and delivery industries. Here’s a look at some of our innovative thinking:
Domino's HeatWave® Hot Bag
Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during
normal delivery. Originally, each hot bag contained a patented heating mechanism
charged by plugging into an electric outlet at the store. The outer material of the bag is
made with water-repellent nylon, which replaced the less sturdy vinyl material previously
used. Domino’s has continued to innovate and evolve the technology, removing the
electric cord and heating each bag via an induction heating system. The latest edition of
Domino’s HeatWave bags relies solely on a patented insulation system that keeps pizzas
both hot and crisp – completely eliminating the need for electricity.
A better box
Domino's was the innovator behind the sturdy, corrugated pizza box, which keeps
moisture from weakening the box, while preventing cheese from sticking to the top
during delivery.
Car-top sign - in 3-D!
Today, it's hard to miss pizza delivery cars -- thanks to Domino's Pizza. Domino's
invented the 3-D car-top sign, which is currently used by a variety of industries, including
taxis and driving schools.
Spoodle
This saucing tool combines the best features of a spoon and a ladle, cutting down the time
spent saucing a pizza. The spoodle was introduced at the 1985 World's Fastest Pizza
Maker competition by the winner, Jeff Goddard.
Domino’s Online Ordering – Pizza Tracker and Pizza Builder
Domino’s launched online ordering in 2007, and in 2008 revolutionized the customer
experience by launching its innovative Pizza Builder and Pizza Tracker tools. Pizza
Builder allows customers to see their pizza come to life on the computer screen, as
toppings and crust styles are selected in real time. Pizza Tracker allows customers to
9. follow the progress of the order, from the time it’s placed until customers receive it. Pizza
Tracker has seen various looks, themes and interactive opportunities since its debut.
While the Pizza Builder has since been mimicked by other pizza companies, Domino’s
remains the only company offering the engaging ordering experience of Pizza Tracker.
These innovations and others have helped us get better at what we love to do most: deliver great
pizza to your door, efficiently and enthusiastically!
Strong Distribution System
To allow Domino's stores to concentrate on making and delivering pizzas, Domino's developed a
central distribution and dough manufacturing system. This relieves stores from long hours
making dough, grating cheese and preparing toppings. Today, Domino’s Supply Chain Services
(SCS) provides high quality dough and ingredients nationwide, keeping the company's pizza
consistently delicious. In fact, through its network of 17 domestic distribution centers, SCS
regularly supplies more than 5,000 U.S. pizza stores with more than 240 products. Other pizza
and fast food companies in the U.S. have adopted this same system
International expansion
On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, Canada.
That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000
international locations. In 1997, Domino's opened its 1,500th international location, opening
seven stores in one day across five continents.
10. Industry
The pizza U.S. quick service restaurant industry is very competitive. Domino’s main competitors
domestically are Pizza Hut, Papa John’s (PZZA) and other local pizza restaurants.
Internationally it competes with Pizza Hut and other local restaurants. Domestically, it's the #1
pizza delivery company with a market share of 19% based on dollar value. This is a very stable
industry, growing at the rate of inflation, maybe even a bit
higher.
One issue I see with the pizza industry in general is that it does
not follow any of the major trends happening inside the country.
I don’t know about the rest of the world. People are becoming
more health conscious and that will ultimately hurt the pizza
industry. Basically, pizza goes against one of the major trends sweeping across the country.
Company
Domino’s has been making pizza for a while, almost half a century. In 1998 Bain Capital
acquired a 93% stake in the company and in 2004 it went public, probably so Bain Capital can
cash out of its big investment. It has economies of scale in its food manufacturing unit for its
retail stores because of its big market presence, which gives it a cost advantage over smaller
competitors. It's very unique in its treatment of franchises because a majority of the time a person
has to work/train in the Domino’s system for some time before he/she is allowed to become a
sole operator of a franchise. It promotes entrepreneurship inside its franchisees.
Domino’s Pizza is a strong brand being one of the most known consumer brands in the world. It
spends a lot of money on advertising, over the past 5 years investing an estimated $1.4 billion in
the United States. Domino’s also has marketing affiliations with NASCAR and Coca-Cola (KO).
It plans on growing through the growth of its store count. Additional stores will not cost a lot of
money due to the size of the stores and the distribution system available. Domino’s has been
struggling with its domestic stores same store sales growth. It was negative in 2006 and just in
11. the past quarter it was negative as well. Its domestic distribution system and its international
operations have been the two growing areas of the company.
Something to keep in mind: it is currently a defendant in a couple of lawsuits all accusing it of
bad working conditions with regard to breaks and meal time.
Valuation
One major factor that bothers me about Domino’s is its debt load, which is $1.7 billion; over half
of the company is financed by debt. Domino’s is a great cash generator; cash flow from
operations for the past 3 years has been higher than net income.
One great part of Domino’s is that it does a great job managing its working capital. Historically,
it has had very little or negative working capital. This is because it receives its receivables a lot
faster than it has to pay its payables.
Papa John’s is trading at an earnings yields of over 10% compared to Domino’s of almost 7%. Its
cash flow from operations(ttm)/enterprise value is 22.3%. Domino’s cash flow from
operations(ttm)/enterprise value is 9.7%. Analysts expect PZZA to grow its earnings a bit faster
than DPZ in 2008 compared to 2007 earnings expectations.
Products
A makeline at a Domino's
The current Domino's menu features a variety of Italian-American entrees 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 Dominos launced Artisan style pizzas that offer a base blend of rich
flavors to compliment chef inspired toppings. Additional entrees include pasta, bread bowls and
oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages
and desserts.
12. 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 pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coke as the
only soft drink option.
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.
Since the companies stock low in late 2009, the company's stock had grown 233 percent by late
2011. Even as the economy has suffered and unemployment has risen, Dominos has seen its
sales rise dramatically through its efforts to rebrand and retool its pizza.
Terms & conditions
Orders of 4 or more pizzas qualify as bulk orders, not valid for service guarantee of less than 30
minutes or free. Maximum Domino’s liability is Rs. 300.
Delivery guarantee applicable at the first barrier point. Domino’s does not penalize its drivers for
late delivery. 30 minutes or free not applicable when store operating conditions or not suitable ,
to be announced at the time of order taking. Dominos Pizzas preserves the right to withdraw the
service guarantee without prior information.
30 minutes delivery guarantee not applicable on New years eve,on Ganesh festival , Christmas
and Durga Pooja , the service guarantee may be withdrawn temporarily in view of difficult
operating conditions for delivery. Conditions apply
Our Brand
To protect the investment of our franchisees and shareholders, and the jobs of our team
members, DPG invests a lot of time and money in upholding the positive reputation of
our brand. Our brand marketing activity is financed through a National Advertising Fund
(NAF) which is made up of franchisee contributions. We carefully select targeted
marketing campaigns that talk to our core audience of 18-35 year olds in order to secure
the best possible return on our franchisees’ money. We have a lot of fun with our brand
13. marketing. Whether it's our sponsorship of Britain's Got Talent, an innovative new
product, new direct mail techniques or the launch of our text ordering service, we find
ways to set Domino’s Pizza apart from the competition and strengthen our position as the
pizza delivery experts.
Vision and Mission
Vision
Number one in pizza
Number one in people
Mission
Sell more pizza, have more fun
Values
Treat people as you’d like to be treated.
Produce the best for less.
Measure, manage and share what’s important.
Think big and grow.
Incentivise what you want to change.
14. Set the bar high, train, never stop learning.
Promote from within.
We are not ordinary, we are exceptional.
Nothing is as important as hygiene. Not only do we follow the most stringent Food Safety
standards in Australia, we go beyond them.
We follow a registered food safety program for all of our stores nationally. Councils audit us to
this standard
We train all our staff in food safety from the day they begin and give them regular retraining
Our staff wear hairnets and gloves whenever they prepare food
They wash their hands with soap and sanitiser as often as possible and they never handle food
without washing their hands first
Every Domino's store has at least one accredited food safety supervisor
Our stores are audited regularly by the council and food safety auditors to ensure that food safety
in our stores remains at a high standard. This also ensures that our stores are as clean as they can
possibly be and that we are delivering high quality safe food to our customers day in and day out
As you can see we take hygiene seriously. Because when it comes to ordering you're in safe
hands with Domino's.
MARKETING STRATERGY:
30-minute guarantee
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 a half hour.
The company continues to offer "30 minute or Free" guarantee for orders placed in its
stores situated in India.
You can’t control your pizza-mania when you browse through an extensive range of tasty
pizzas listed in the Dominoes menu. The year 2009 has more reasons to unwind your
15. temptations with the new Domino's pizza menu featuring some new launches of
mouthwatering recipes that have been included into Dominos pizza menu. Domino’s
have constantly been giving place to new delicacies in Dominoes pizza menu and
upgrading the Dominos menu to give it a new look.
When we talk about pizzas, Dominoes pizza menu has the most extensive range of
delicious pizzas. On Dominos menu, you can enjoy delicacies of veg pizzas, non-veg
pizzas, kebab pizzas and many more versions of tasty pizzas. Interestingly, being a global
brand, Dominos pizza menu has customized versions of pizzas keeping in mind the taste-
preferences of various populaces living in geographically distinct locations across the
globe. Anyone, living anywhere can get his or her favorite pizza on Domino's pizza
menu.
Besides pizza, the new Dominos menu has place for Oven Baked Sandwiches as well.
The newly included Pasta Dishes and Chocolate Lava Cakes in the Dominoes menu are
particularly so hit amongst the consumers.
Domino’s have now added new delicacies in the Dominos pizza menu other than just
pizzas. Now, pasta lovers too are found looking for Domino's pizza menu to treat
themselves with great pasta dishes. The attractive ad campaigns of Chocolate Lava Cakes
have lured many sweet dish lovers to the Dominoes menu.
Today, Dominoes pizza menu features pizzas, pasta dishes, oven-baked sandwiches,
wings, breadsticks and a variety of dessert items. The delicacies on Dominos menu vary a
little bit from outlets to outlets. For Dominoes menu available with your nearest
Domino’s outlet, you can check the Dominos pizza menu online. The chances are that
you will get your favorite dish on the Domino's pizza menu and order your pizza
selecting from Dominoes pizza menu.
You can Dominoes pizza menu online as well. This website offers you a chance to go
through the Dominoes menu online and order your pizza from Dominos menu. The best
part of ordering a pizza online from Dominos pizza menu online is the facility of Pizza
Tracker, which is an online application. This application helps the customers to check the
status of their order of a pizza placed from Domino's pizza menu.
.
16. Dominos lines up aggressive marketing strategy this summer;newTVC
features
Domino's Pizza India, has an aggressive marketing strategy in place for this summer. To begin with,
the pizza major has launched a new summer special offer,which involves a marketing spend of Rs 2.5
crore,supported by a major advertising campaign and a new TVC. The new campaign with coke
promotion is linked with Domino's 30-minute proposition.
"With our '30 minutes or free delivery' promise introduced last year, we have witnessed a growth
of 40 per cent in sales, while we have also given away 60,000 free pizzas. Looking at the earlier
success of the summer special offer, we decided to reintroduce it. We are sure that our new
marketing efforts would further strengthen our leadership in the Pizza delivery segment. Target
for pizzas is anywhere between the age of 4 to 80. But the target group for our communication
would be in the age bracket of 18 to 35 years,"
Talking about the overall marketing spends, he said, "The total would be nearly Rs 20 crore. Our
advertising spends include the discounts that we offer in the market, which would be close to
Rs10 crore. Over and above that, we spend about 10 per cent of our turnover on print, press and
television."
Positioned as pizza delivery experts, Dominos has a strong presence in India with 91 stores in 27
cities and plans to open 20 new stores this year. "We are planning to expand at the existing
locations. We are also evaluating franchising as an idea and if that takes off, we will open more
than 20 stores this year itself.
According to Hargave the fast food market in India is growing at about 20 per cent per annum.
Competition is there not among fast food companies but also with packaged food. They key issue
however is, within the sphere of the spending power that the consumer has, how strongly is your
brand positioned and for what service it stands.
With new entrants in the segment and with the current players reinforcing their strategies, the
competition in the category is certainly hotting up.
17. Domino's to expand product offering in India, eyes small towns
In line with its target to make India one of its top five global markets in three years, US quick
service restaurant chain Domino's Pizza said it will expand its product offering and focus on
smaller towns for growth opportunities.
The company also said it going ahead with an aggressive brand building exercise, including
increased spending on marketing and special offers, as it seeks a bigger pie in the estimated Rs
1,000-crore Indian pizza market.
"Our strategy now is to introduce at least one new product every 3-4 months and this fiscal we
will add three more items," Domino's Pizza India Vice-President (Marketing) Dev Amritesh told
PTI.
The Indian pizza market is of around Rs 1,000 crore. The home delivery segment consists of
around half of it and Domino's claims a 65 per cent share in the segment.
In terms of top global markets for Domino's, India is currently ranked at ninth position.
"While remaining focused on the core category of pizzas, Domino's will also launch new
products in the non-pizza segment,"
Domino's currently has 19 pizza variants in the Indian market, besides five non-pizza items,
including choco lava cakes and pasta which were introduced last year.
"Product innovation is a priority for us. It gives consumers more choices and increase our brand
value,"
The company will be undertaking a major brand building exercise which will include substantial
use of advertising, besides special offers.
18. "We have just launched our wheat thin crust pizza and revived our Pizzamania campaign. Our
focus is on increasing our brand visibility among all segments, specially with focus on smaller
cities," .He, however, declined to share the spending that the company has planned to make on its
brand building exercise.
The firm plans to open 60-65 outlets every year for the next three years in India. It currently has
around 310 stores across the country.
"A major chunk of the new outlets will be in smaller cities. There is a huge untapped market in
those places and we want to be at the forefront of the action,"
Bhartia Group-promoted Jubilant Foodworks is the Indian master franchise for Domino's Pizza.
Earlier this year, the company went for an IPO in India, becoming only the fourth subsidiary
outside the USA where the brand is listed.
Dominoes pizza is one of the biggest and fastest growing international food joints in India.
Dominos Pizza India outlets can be seen in all major locations in the country. Dominos India is
expert in delivering tasty pizzas on time. The eating joints and outlets also offer very good
ambience. If you have the habit of enjoying hot and instant pizzas then it’s always better to enjoy
the taste at a Domino pizza outlet in the country
Much like the soft elastic dough used as the foundation for which their mainstay product is built,
Domino’s Pizza has shaped their marketing strategy into a juggernaut that has enjoyed nearly
half a century of success. Currently a market follower—second only to Pizza Hut—Domino’s
longevity and rapid rate of growth is due largely to their ability to establish, maintain, and remain
true to their original marketing mix. Domino’s success, however, is due to the fact that they have
been able to differentiate themselves on a very crowded playing field.
Most companies, at least the successful ones, concentrate on the four Ps that compose their
marketing mix. Albeit product, price, place, and promotion are the cornerstone of many
19. marketing strategies—Domino’s Pizza has leveraged the four Cs, or consumer’s viewpoint, to
establish their marketing mix. Customer solution, cost, convenience, and communication are
considered each time Domino’s Pizza introduces a new product or initiates a new promotion.
In the early years of business, pizza was the only item on the menu at Domino’s. Side items were
never considered to be a part of the menu. Remaining sensitive to competitors and allowing
competition to affect product pricing is a classic trait of a market follower (Kotler & Anderson,
2008). Domino’s was eventually forced to add medium and extra large sizes to remain
competitive.
Domino’s Pizza has chosen a market follower strategy. Product, one of the four Ps of the
marketing mix, is an area where the market leader continues to influence Domino’s. Competition
forces changes to the market followers. The first change to the product offering at Domino’s
happened almost three decades after they opened. In 1989, Domino’s Pizza introduced a deep-
dish pizza (Laukens, 2010). While it would stand to reason that the new addition to the menu
was an answer to a competing product, Domino’s had entered a market where deep-dish was the
only acceptable version of a pizza.
Market research had revealed that Domino’s market demographic was culturally diverse.
Domino’s responded by adding several other variations of the basic pizza. Hand tossed and thin
crust pizzas were added to the menu to satisfy demand in specific market areas and remain
competitive. Domino’s keeps a watchful eye on the consumer reaction to specific product and
pricing. The ability to see their company from the buyer’s viewpoint is a significant advantage
for any company.
Domino’s Pizza listens to feedback from the consumers, and at the same time occasionally
glances over the shoulder of their competition for inspiration and influence. From the customers’
feedback and buying habits, Domino’s is able to glean information to help influence direction.
Domino’s strengths, weaknesses, opportunities, and threats have changed many times over. The
entire pizza industry has evolved into a highly competitive array of corporate giants. And yet, it
remains important to perform a SWOT analysis as often as possible.
20. Domino’s strengths include their ability to remain unscathed, although influenced, by their
competition. Moreover, their visionary approach to creating a better consumer experience by
developing better manufacturing methods is at the foreground. Hard work, persistence, and
thinking outside the pizza box have been Domino’s formula for success. Although not the market
leader, Domino’s Pizza is recognized as the leader of innovation. The pizza industry is crowded
with businesses trying to outdo one another with a product that is not well received if strayed too
far from the original. Domino’s decided to create a value proposition beyond the product. Tom
Monaghan’s goal of perfecting the pizza delivery was tested when Domino’s once again raised
the bar. In 1986, Domino’s Pizza created a slogan and spawned an aggressive advertising
campaign in an attempt to differentiate themselves from other pizza businesses.
Taking advantage of an impatient consumer base, Domino’s touted, “you get fresh, hot pizza
delivered to your door in 30 minutes or less—or it’s free.” Competition scrambled to find an
answer, but without the automation invented and deployed by Domino’s it would be impossible.
Domino’s was the first to use a production assembly line method for producing pizzas. A belt-
driven pizza oven produced a continuous stream of pizzas allowing the manufacturing and
delivery process to become manageable, and for the most part—predictable.
Domino’s rode the wave of success for many years. Convenience for the consumer was a definite
advantage. During this time, Domino’s Pizza opened several thousand new franchises and was
taking over the market. Then as quickly as the innovative wildfire had spread, it was
extinguished. One important attribute of a good company is the ability to learn from past
experiences and change with the times. Domino’s quickly recognized a need to innovate, and
once and for all solve the problem of cold pizza delivery. This time, however, Domino’s Pizza
would show the world that they are the trendsetters from which all others grasp firmly the
coattails. Crisper crust, bubbling cheese, and hotter topping were the new promise spoken loudly
in Domino’s advertising. This was made possible by their invention of the HeatWave® bag. This
new technology, and the creative marketing, caused Domino’s competition to sweat. Once again,
Domino’s became consumer centric and focused on a better customer experience as opposed to
getting caught up in product and pricing battles.
Chicken wings and various deserts were added as an answer to a competitor’s advantage.
21. The final element in a SWOT analysis is the identification of threats in the market. Every
competitor is recognized as a threat. Becoming too diverse with the product offering can also be
perceived as a threat. In both cases, it is wise to understand the cause and effect associated with
adding product, making marketing promises, and expanding into too many markets. There will
always be a tipping point from which recovery is futile. A bad customer experience is no longer
shared between a close-knit group of family and friends. Blogs can influence buying decisions
and become a threat to the Domino’s brand.
Domino’s marketing team used a proactive approach to thwart permanent damage. Quickly
realizing the extent of the damage and the affected demographic, Domino’s created a Twitter
account to handle the customer comments and introduced their own video featuring an
explanation and public apology from the CEO. Domino’s ability to quickly adapt to a changing
society afforded them the opportunity to devise a damage control plan and dilute a potentially
devastating situation.
Domino’s product pricing is competitive with others in the industry. Campaigns and promotions
are designed to not only attract new customers, but also to retain existing ones. Over 8000
locations promise convenience for Domino’s consumers. It is difficult to find an area not
identified serviced by a Domino’s Pizza franchise. Currently, Domino’s is positioned firmly
within the market true to their original intention.
Consistency in products between franchises, reading the pulse of the consumer, and setting the
pace for all others to follow is at the core of Domino’s success. The future will depend greatly on
the ability of Domino’s marketing team to remain proactive, centered, and focused on the
customers’ needs. It will always be important to realize shifts in the target market and leverage
new opportunities to expand their customer base.
22. Responsible growth
Delivering More Than Just Pizza
While Domino’s stores do need A5 planning consent, we are very different from many of
the other takeaways on the high street.
All Domino’s products are freshly prepared and baked in an oven. Our stores do not
include fryers.
Much has been made in recent months about the location of hot food takeaways in
relation to local schools. As a company, we are happy to work with local authorities to
help them achieve their objectives through robust but fair planning conditions. We
already have several sites with a condition on the planning consent that means the shop
can only sell pizza and ancillary products.
Other issues that frequently arise in planning applications include concerns around litter,
anti-social behaviour, traffic problems and smells. Around three quarters of our orders
are for delivery to our customers’ homes, which avoids people congregating in the store
and means there is no risk of litter. In a Keep Britain Tidy survey in 2009, carried out in
10 UK cities, not one piece of Domino’s branded litter was found.
The nature of pizza also deters the product from being eaten in the street because of the
size, temperature and consistency, which again reduces the instances of litter being
irresponsibly discarded when the product is eaten.
We are happy to work with highways officers to ensure there is adequate parking and
access for our delivery vehicles and we will always act in a responsible manner in terms
of reducing the noise from our drivers and vehicles. As a result of these measures, we do
not have an adverse impact on the neighbouring properties.
The nature of our product leads to the smell from a Domino’s store being more akin to
that of a local baker and, in addition, we use a very high specification of ventilation and
extraction.
23. A Domino’s Pizza store is an addition to the local community. We offer well-run
businesses, providing employment and structured career paths for local people, as well as
support for the local community.
At Domino’s Pizza we are happy to discuss any concerns local authorities might have, in
advance of the planning process, and in many cases we can accept planning conditions
that would be untenable for many A5 operators.
AWARDS
Human Resources Awards
The Images Most Admired Retailer of the Year: Foodservice. This award has been bestowed
by Indian Retail forum at the 8th annual Images Retail Award.
Mr. Basab Bordoloi won HR leadership award in Asia’s Best Employer Brand Awards - 2010
by World HRD Congress.
Mr. Basab Bordoloi won "Most Powerful HR Professional of India" award in Asia’s Best
Employer Brand Awards - 2010 by World HRD Congress.
Jubilant FoodWorks Ltd won the award for ’Continuous Innovation in HR Strategy at work’ in
Asia’s Best Employer Brand Award - 2010 by World HRD Congress.
Ranked 9th Best Employer 2009 in India in Hewitt’s Best Employers survey 2009.
Ranked amongst the top 25 best employers across Asia pacific market, which includes
Australia/New Zealand, China, India, Hong Kong, Malaysia, Korea & Singapore, in Hewitt’s
Best Employers survey 2009.
Best employer in Retail and 3rd best employer in Services category in India - Hewitt’s Best
Employers survey 2009.
HR leadership award - 4th Employer Branding Award 2009 - 10
Regional Best Employer in hospitality by the "World HRD Congress" in 2009-10.
FUN @ Work award by the "World HRD Congress" in 2009-10
Highest employee engagement score amongst the "best companies" in BT-TNS-MERCER’s
"Best companies to work" in India survey.
Featured as "Fun place to work for" by Outlook Business in 2010.
24. Marketing Awards
Top 10 Marketers in 2010 for Marketing Ingenuity, Innovation and Impactful
Launches awarded by Financial Express
Jubilant FoodWorks Ltd won the award for "Brand Excellence in service / hospitality
industry" in CMO Asia awards by CMO council.
2010- Won the Golden Spoon Award for the ’Most admired FnB retailer of the year- QSR
foreign brand
2009 - Domino’s won the top 25 Marketers of 2009 award presented by a leading Marketing
Journal Pitch and exchange4media
2009 - Recognized as one of the 10 brands that have changed the consumer behavior and set
new trends in last decade, presented by Brand reporter & agency faqs
2006 - Marketing Excellence Award from Domino’s International for the best new product
launch - Cheese Burst Pizza
2005 - Silver Effie Award.
Customer Services Award
Franchise Awards 2009 for Best Customer Services presented at Asia’s largest Franchise Expo
- Among other initiatives by us the one that stood out was our honouring of ’30 minutes or
free’ service guarantee
DOMINO´S PIZZA INDIA - International Operations Awards
Domino’s Pizza India won the GOLD FRANNY award for the fastest growing Domino´s
franchisee in world for 3 consecutive times - 2006 2007 & 2008, presented by Domino’s Pizza
Inc.
2008: Dominos Pizza India won 1 International and 2 Asia Pacific awards
’Trainer of the year’ - Domino’s International.
’Supervisor of the year’ - Asia Pacific
’Rookie Manager of the year’ - Asia Pacific
2007: Dominos Pizza India won 1 International and 3 Asia Pacific awards
’Supervisor of the year’- Domino’s International.
25. ’Rookie Manager of the year’ - Asia Pacific
’Manager of the year’ - Asia Pacific
’Trainer of the year’ - Asia Pacific
2006: Dominos Pizza India won 1 International and 2 Asia Pacific awards
’Manager of the year’ - Domino’s International.
’Supervisor of the year’ - Asia Pacific
’Rookie Manager of the year’ - Asia Pacific
2004 / 2005 / 2009 Franchise Award - Award for Excellence in Franchising and Business
Development. Domino´s Customer Service Food and Beverages
2006/2007/2008 Distinguished Achievement Award of the International Franchising
Association presented to Domino´s Pizza India
CEO Awards - Ajay Kaul (CEO India Subcontinent - Domino´s Pizza India)
Mr. Ajay Kaul won CEO with HR Orientation in Asia’s Best Employer Brand Awards - 2010
by World HRD Congress.
2010- Golden Spoon Award - Most Admired Food Professional Of The Year In Food And
Beverages
2009- Star Youth Achievement award