dominos Pizza


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dominos Pizza

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