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Domino's pizza
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- 2. Introductory • Company profile •SWOT Analysis • Advantages and disadvantages • Summary
- 4. Company profile •Domino's Pizzais an American restaurant chain and international franchise pizza delivery corporation headquartered at the Domino Farms Office Park (the campus being owned by Domino's Pizza co- founderTom Monaghan) in Ann Arbor CharterTownship, Michigan, United States, nearAnn Arbor, Michigan. Founded in 1960, Domino's is the second- largest pizza chain in the United States (after Pizza Hut)and the largest worldwide, with more than 10,000 corporate and franchised stores in 70 countries. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004.
- 5. International expansion • OnMay 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, Canada.That same year, Domino's opened its 1,000th store overall. In 1985, they opened their first store in the United Kingdom in Luton . Also in 1985, Domino's opened their first store inTokyo, Japan. By 1995, Domino's had expanded to 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day across five continents. From 2007 to 2012, Domino's gradually established a presence in India with at least 1,000 locations by 2012.
- 6. Sale of company •In 1998, after 38 years of ownership, Domino's Pizza founderTom Monaghan announced his retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and ceased being involved in day-to- day operations of the company.A year later, the company named David A. Brandon CEO.
- 7. 30-minute guarantee • Startingin 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order or they would receive the pizzas free.The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8 million.
- 8. 30-minute guarantee • Inanother 1993 lawsuit, brought by a woman who was injured when a Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80 million, but accepted a payout of $15 million.The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to then-CEO Tom Monaghan.
- 9. 30-minute guarantee • InDecember 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 Colombia, India, Malaysia*,Vietnam, Singapore*, andTurkey. • *A "Free Regular PizzaVoucher" is given in these markets instead if later than 30 minutes. • In India, the guarantee is for ₹300($5) and is valid for an order of less than 4 pizzas.
- 11. SWOT Analysis • Strength •1. Leading pizza Delivery Company in the world • 2. Global franchise operations - more than 3,500 in over 50 countries • 3. Strong brand equity supported by heavy advertising & marketing campaigns • 4. Supply chain & distribution network • 5. It has enabled to keep pace with the technology by offering online menus • 6. Effective home delivery option • 7. Lower price as compared to competitors • 8. Launch of mobile applications available on various platform with the feature called "PizzaTracker"
- 12. Weaknesses • 1. Slowgrowing and declining same-store sales • 2.Weakening bottom lines due to slow growth and decline in the sales. • 3. Its ambiance is not up to its competitors • 4. Menu not elaborated and modified as compared to other chains • 5. Outlets lack space
- 13. Opportunities • 1. Favourablemarket expansion opportunities especially in Asian countries like India and China • 2. Introduction of new flavour additives and pizza toppings that are region specific • 3. Leverage supply chain & distribution system to introduce new products
- 14. Threats • 1. Changingconsumer habits towards healthier food choices • 2. Franchise operations affected by currency exchange fluctuations • 3. Intensive competition from a fragmented number of small competit...
- 15. In India • inIndia with at least 1,000 locations by 2012
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