The high price of their products were attributed to the high quality of material used. Dominos even sourced some of their ingredients from outside India. However, because of increasing competition from Pizza Hut, Dominos introduced price cuts and discounts to attract the customers. In 1998,Dominos introduced the Pizza Mania scheme where it offered a large pizza for Rs. 129/-. 3. Promotion * Advertising: Celebrities like Paresh Rawal, Anupam Kher, Arshad Warsi acted in various fun ads to target Indian audience and improve brand recognition.
* Promotional Campaigns: Dominos aggressively attacked Indian market with its various promotional campaigns like Hungry Kya? , The Pizza delivery experts and Khusiyon ke home delivery to target large customer segments. * 30 minutes Delivery: This campaign was incredibly successful in helping Dominos achieve dominance in the Pizza home delivery segment. * Discount coupons: A major promotional tool driving sales during special days of the week * Publicity and PR: Sponsoring college fests, cultural programs and promotional events throughout the country helped Dominos increase Brand recognition
4. Place Dominos India opened its first store in Delhi in 1996. At the time of writing of the case it covered 44 cities including tier 2 and tier 3 cities. It has employed push Strategy in channel marketing. It is strategically placed in big corporate areas, universities, malls and other places and now is it is planning to open its stores in airports of Delhi, Mumbai on sub-franchise and sub-lease basis to target more customers Charitable activities In 2001, Dominos launched a two-year national partnership with the Make-A-Wish Foundation of America.
That same year, company stores in New York City and 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 Red Cross disaster relief effort.  In 2004, Dominos began a partnership with St. Jude Childrens Research Hospital, participating in the hospitals Thanks and Giving campaign since the campaign began in 2004, and raising more than $1. 3 million in 2006.
Much like the soft elastic dough used as the foundation for which their mainstay product is built, Dominos 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”Dominos longevity and rapid rate of growth is due largely to their ability to establish, maintain, and remain true to their original marketing mix. Dominos 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 marketing strategies”Dominos Pizza has leveraged the four Cs, or consumers viewpoint, to establish their marketing mix. Customer solution, cost, convenience, and communication are considered each time Dominos Pizza introduces a new product or initiates a new promotion. The science of marketing was the last thing on the minds of the Monaghan brothers when they borrowed $500 to purchase Dominicks Pizza in 1960.
With a down payment of $75, Tom and Jim Monaghan took ownership of a small pizza shop in Ypsilanti, Michigan. Their sights were firmly set on building a dynasty of three locations and monopolizing pizza delivery in a small concentrated area. From inception, the Dominos logo contained three dots. These dots, still present on the current logo, represent Tom Monaghans original vision of opening three locations and develop a triangulation delivery strategy (Miranda, 2009). In the early years of business, pizza was the only item on the menu at Dominos. 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). Dominos was eventually forced to add medium and extra large sizes to remain competitive. Dominos 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 Dominos. Competition forces changes to the market followers. The first change to the product offering at Dominos happened almost three decades after they opened.
In 1989, Dominos 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, Dominos had entered a market where deep-dish was the only acceptable version of a pizza. Market research had revealed that Dominos market demographic was culturally diverse. Dominos 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. Dominos keeps a watchful eye on the consumer reaction to specific product and pricing.
The ability to see their company from the buyers viewpoint is a significant advantage for any company. Dominos 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, Dominos is able to glean information to help influence direction. Dominos 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.
Dominos 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 Dominos formula for success. Although not the market leader, Dominos 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.
Dominos decided to create a value proposition beyond the product. Tom Monaghans goal of perfecting the pizza delivery was tested when Dominos once again raised the bar. In 1986, Dominos 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, Dominos touted, you get fresh, hot pizza delivered to your door in 30 minutes or less”or its free. Competition scrambled to find an answer, but without the automation invented and deployed by Dominos it would be impossible.
Dominos 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. Dominos rode the wave of success for many years. Convenience for the consumer was a definite advantage. During this time, Dominos Pizza opened several thousand new franchises and was taking over the market. Then as quickly as the innovative wildfire had spread, it was extinguished. The market momentum was quickly lost when a woman in St.
Louis was involved an automobile accident with a Dominos Pizza delivery driver. News turned into bad publicity and in 1993 the 30-minute guarantee was discontinued. Dominos strength, the S in a SWOT analysis, was their ability to produce and deliver a product faster and more efficiently than their competition. Not promoting the 30-minute guarantee created a level playing field allowing the focus to shift toward product and price. However, Dominos had continued the use of their belt-driven pizza production oven and therefore better positioned to compete in the pizza price wars.
Dominos Pizza exposed several weaknesses, the W in a SWOT analysis, in their approach to advertising and marketing. A short-lived villainous character named The Noid was used to promote the fact that Dominos could deliver a fresh hot pizza even on the coldest days. They were able to perform such a feat, when others struggled, because they invented a different type of pizza box. The message was not that Dominos Pizza recognized the fact that no one wants a cold pizza and offered a remedy, but rather an annoying fictitious character was lurking in hopes of ruining your pizza.
The Noid was short-lived marketing trend that caused more confusion than confidence. One important attribute of a good company is the ability to learn from past experiences and change with the times. Dominos quickly recognized a need to innovate, and once and for all solve the problem of cold pizza delivery. This time, however, Dominos 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 Dominos advertising.
This was made possible by their invention of the HeatWave® bag. This new technology, and the creative marketing, caused Dominos competition to sweat. Once again, Dominos became consumer centric and focused on a better customer experience as opposed to getting caught up in product and pricing battles. Opportunities, the O in a SWOT analysis, are seemingly limitless for Dominos Pizza. They have been able to succeed in non-traditional markets by creating a cultural-specific product mix. Today there are over 8000 stores in 50 international markets.
Although only producing what is classified as consumer products, the marketing considerations in all markets are the same”convenience. It is rare for a consumer to plan days in advance to have a pizza, but instead decides at a moments notice. The core benefit, at least from Dominos perspective, is convenience. A market niche competitor, California Pizza, has attempted to attract some of the frozen pizza consumers by offering variations of their most popular products. This seems to be a shortsighted attempt at trying to capture some of the market share.
If Dominos Pizza were to manufacture and distribute their product in the frozen food aisle, their current business would change. As with the California Pizza Kitchen product expansion, the original product is not viewed the same. While there are plenty of opportunities for Dominos to grow, expanding their product offering beyond what can be produced and delivered in the same timeframe as their pizza would have a counter-effect on success in the market. Chicken wings and various deserts were added as an answer to a competitors advantage.
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 Dominos brand. Social media has become a huge part of society. The early adopters molded social media into a peer-to-peer communication channel. Unlike traditional broadcast mediums, social media offers two-way communication. An individual, or a business, can post information and receive instant feedback. This form of communication is a perfect fit for an impatient society. However, as Dominos discovered in April 2009, social media can unravel many years of branding.
A video produced on a hand-held camera was posted on a popular social media site. The video contained disturbing footage of two Dominos Pizza employees tainting products by various questionable unsanitary methods (Clifford, 2009). In only a few days, the video was viewed over one million times. The Dominos Pizza brand was in serious jeopardy. Nearly fifty years after Dominos Pizza was started, they found themselves under a microscope. Dominos marketing team used a proactive approach to thwart permanent damage.
Quickly realizing the extent of the damage and the affected demographic, Dominos created a Twitter account to handle the customer comments and introduced their own video featuring an explanation and public apology from the CEO. Dominos ability to quickly adapt to a changing society afforded them the opportunity to devise a damage control plan and dilute a potentially devastating situation. For the most part, the Internet has become the hottest new medium. Dominos recognized the power of the Internet as a consumer conduit well in advance of their competition. They leveraged this new channel in 1996 by introducing the Dominos Pizza website.
Not nearly as sophisticated as the current website, and bound by the limited technologies of the early Internet, Dominos used their first website to expand their brand and specific marketing messages across an untapped and unmeasured channel. In the same year the corporate website was launched, Dominos boasted sales in excess of 3 billion dollars. Dominos has become comfortable using the Internet as a marketing channel. The ability to identify”and remain true to”the four Ps in their marketing mix is the primary reason Dominos Pizza has endured and survived many decades of a fickle economy and a demanding consumer.
Their product mix has evolved to include pizza, salads, sandwiches, chicken wings, and specialty desserts. The quality has been improved over the years, including a recent overhaul of their pizza crust and sauce recipes. Their brand name remains strong regardless of the recent challenges of managing public relations through social media channels. Dominos 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 Dominos consumers. It is difficult to find an area not identified serviced by a Dominos Pizza franchise. Currently, Dominos 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 Dominos success. The future will depend greatly on the ability of Dominos 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. Dominos has broadened and narrowed the range of ages of their target audience. During the second attempt at their 30-minutes or less campaign, Dominos concentrated on a target audience of 30 years old and younger. A critical marketing mistake was not realizing sooner that thirty percent of their original demographic”49 years old and under”remembered the first 30-minute guarantee in a positive light.
The latest marketing efforts epitomize everything that Dominos has strived to create. They will always position themselves to make decisions based not only on the traditional four Ps of marketing, but also from the viewpoint of their consumer. Using comments, criticism, and complaints as fuel”Dominos recently introduced their pizzas reinvented. Dominos has once again differentiated itself in the market. The pizza pendulum of success has swung toward Dominos Pizza.
References Clifford, S. (2009). Video prank at Dominos taints brand.Retrieved January 25, 2010, from http://www. nytimes. com/2009/04/16/business/media/16dominos. html Kotler, P. & Armstrong, G. (2008). Principals of marketing. Pearson Prentice Hall. Upper Saddle River, New Jersey. Laukens, D. (2010). The history of Dominos Pizza. Retrieved January 23, 2010, from http://www. recipepizza. com/the_history_of_dominos_pizza. htm Miranda, E. (2009). Internet marketing Franchises: Dominos Pizza. Retrieved January 23, 2010, from http://www. wsicorporate. com/article/Franchises_dominos_pizza.