Market Segments and Decision Making

MARKETING PRINCIPLES –
MARKET SEGMENTS AND DECISION
MAKING

CONTENTS
1. INTRODUCTION...............................................................................................................................1
2. INDUSTRY ANALYSIS AND MARKET TRENDS.........................................................................1
Growth.....................................................................................................................................................1
Profitability..............................................................................................................................................2
3. PESTEL ANALYSIS..........................................................................................................................2
4. COMPETITOR ANALYSIS...............................................................................................................4
5. MARKET SEGMENTATION ANALYSIS........................................................................................5
Market conditions of Australia and market segments..............................................................................5
Market Targeting.....................................................................................................................................5
6. INVOLVEMENT OF PRIMARY SEGMENT IN TERMS OF DECISION MAKING......................6
7. PERCEPTUAL OR POSITIONING MAP..........................................................................................6
8. CONCLUSION...................................................................................................................................7
9. REFERENCES....................................................................................................................................8

1. INTRODUCTION
Talking in relation with the market segmentation, it is crucial and vital principle both in
the domestic as well as global markets. In the present scenario, organizations are increasingly
stepping towards the international market and thus, it becomes quite essential to analyze the
concept and facets of segmentation in global context (Jobber, 1995). Thus, the current research
report aims at determining the market segmentation variants in the international scenario and will
demonstrate its importance by making use of Domino’s Australia. The company was founded in
the year 1960 and is being recognized as the leader in pizza delivery operating network. They
have their franchisee business in many parts of the world. The vision of the Domino’s elucidates
a company with a team of extra-ordinary people who are engaged in delivering pizza in the
world. In addition to this, they have pioneered the pizza delivery business and now they are
operating in more than 60 international markets. Pertaining to this, the research report will
analyze the current trends in terms of growth, profitability, and macro-environment of Domino’s
in the Australian market. Furthermore, the nature of competition prevailing in the market will
also be evaluated by considering various techniques (Keane, 2015). The later part of the report
will evaluate the key aspects of marketing such as segmentation, targeting positioning and
organization’s approach towards STP will be assessed.
2. INDUSTRY ANALYSIS AND MARKET TRENDS
Growth
For Australian’s, Pizza is being regarded as the one of the most sought-after fresh and
easy meal solutions. The pizza offered by Domino’s includes standardized ingredients like
vegetables, dough, meat and all are freshly made as soon as the orders are placed. Throwing light
towards the functioning of the Domino’s enterprise, they work within the quick service pizza
restaurant and are well identified for their handmade pizza products, sandwiches and cheesy
crusts (Pizza Industry Analysis 2018 - Cost & Trends, 2018). Other than this, the company is
also pioneering in fast delivery of pizza and has adopted several methods in order to have fast
delivery of pizza to their ultimate consumers. Adoption of these innovative methods has
impacted the whole industry and influenced the other industries as well such as “A better Box”,
“Spoodle, Domino’s Profiles”, “Pizza Tracker”, “Builder” etc. in addition to this, the solid
distribution system of the firm has allowed their retailers to pay attention on making and
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transporting pizzas. Furthermore, for alleviating the stores from extensive hour of producing
dough as well as to prepare cheese and toppings, Domino’s has significantly generated a central
distribution and dough industrialized system. The supply chain services (SCS) of the firm has
supported dominos by sustaining delicious pizza by supplying high quality ingredients all
throughout the world. Other than this, in the year 2008, they have launched an option of baked
sandwiches and toasts and thus, they are not just a pizza restaurant anymore (Gary and Philip,
2005). Subsequently in the year 2009 and 2010, dominos’ has launched desserts options like
Pasta and Choco lava cakes. Further, in the year 2011, they have refurbished their menu and
included modern recipes for chicken wings and bread side bites.
Profitability
Irrespective of the greater price points, customers have willingly involved healthier and
pleasure seeking eating options. Regardless of the increasing waistline of the country, demand
for fat-free as well as low-calorie options has been quite astonishing. Many reports have
encountered that the industry will grow because of the innovation in the product (Domino's Pizza
profit rises 28.7 per cent, 2016). Furthermore, the industry revenue is projected to grow at the
annual rate of 3.2 percent in the coming five years. Talking in relation with the profitability
aspects of the company, the share price of the enterprise has doubled in the past 12 months and it
is expected that it will climb to 600% in the coming years. In May 2015, the share price of
Domino’s was $41.64 and the stock is currently trading between $300-325. Thus, it can be said
that share price of the company has propelled the value of the company to $3.3 billion. The
weekly turnover of Domino’s is about £17,000 and in respect of delivering pizza, it closes
around 1000 pizzas per week. In 2009, the sales of nearly 68 stores of Domino’s were more than
£ 1 million (Rogers, 1995).
3. PESTEL ANALYSIS
Seeking help through PESTEL analysis framework, the overall market environment of
the company or project i.e. market growth, risk, decline etc., can be understood. In addition to
this, this analysis is considered as a key part of strategic, business as well as marketing planning
(Philip and Lane, 2009). It includes elements such as political, economic, social, technological,
environmental and legal. PESTEL analysis of Domino’s within Australian market is as follows:
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