This report analyzes the marketing strategy and plan of Dominos Pizza, including target market segmentation, marketing mix strategies, and sustainable marketing practices.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: MARKETING STRATEGY AND PLAN MARKETING STRATEGY AND PLAN Student’s Name University Name Author note
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1 MARKETING STRATEGY AND PLAN Executive summary The purpose of this report is to determine a marketing plan for the selected organization that is Dominos. It analyzes the sustainable marketing strategy implanted by Dominos Pizza which has enabled the company to maintain its market position. It analyzes the ways to target the customers using VALS model framework (values, attitudes and lifestyle model). It determines the target market segmentation of Dominos, it target customers and analyzes its positioning strategy. Further it analyzes the core marketing mix strategies including the product, price, place and its decision regarding promotion. it also analyzes the extended marketing mix variables including people, process and its physical evidence. The assignment mentions sustainable marketing strategies, its business ethics and CSR responsibilities have been discussed. It analyzes the marketing impact on the customers, on the society as a whole and the other business in the market.
2 MARKETING STRATEGY AND PLAN Table of Contents Introduction......................................................................................................................................3 1. VALS Model (Values, attitude and lifestyle)..............................................................................4 2. STP (Segmentation, Targeting and Positioning)........................................................................5 3. Marketing mix variables of Dominos pizza.................................................................................7 Product:........................................................................................................................................7 Price:............................................................................................................................................8 Place:............................................................................................................................................8 Promotion:...................................................................................................................................8 People:.........................................................................................................................................9 Process:........................................................................................................................................9 Physical evidence:.......................................................................................................................9 4. Introduction to sustainable marketing.........................................................................................9 • Ethics & CSR............................................................................................................................9 • Relevant legislation.................................................................................................................10 5. Marketing impact.......................................................................................................................11 • Impact of marketing to customers...........................................................................................11 • Impact of marketing to society as a whole..............................................................................11 • Impact of marketing to the other business...............................................................................12 Conclusion.....................................................................................................................................12
3 MARKETING STRATEGY AND PLAN References......................................................................................................................................14
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4 MARKETING STRATEGY AND PLAN Introduction Marketing is considered to be an important tool for any successful business. The marketing plan helps to contribute effectively and efficiently to the business organization to undertake decisions and achieve the company’s goals and objectives. It helps the business organization to focus on the attaining customer satisfaction, growth, goodwill and maintain its market position. Domino’s Pizza is the second largest pizza restaurant in the world. It has around 15,900 locations in around 85 markets (About Domino's, 2019). The company was founded in the year 1960; it roots to a convenient pizza delivery. It is a highly recognized global brand; it has seen rapid growth over the years. The mission of Dominos’ is to connect with the people faster and provide fresh quality food. The company is a leader is the food technology space. The company efficiently utilizes the advanced technology to reach to its target customers and offer convenient food delivery systems to its customers including drone delivery, Dominos Pizza deliveryapp,usingvoiceassistants,artificialintelligenceandaugmentedreality(About Domino's, 2019). Dominos is highly committed to constantly improve its products to ensure customer satisfaction. The situational analysis of Domino’s marketing is particularly designed to understand the VAL’s model that is values, attitudes and lifestyle model to create consumers. It analyzes the STP that is target segmentation, targeting and positioning of the business. It includes the target gender, age, education, occupation and income of the business. It analyzes the core marketing mix variables that is its product, price, place, promotion, people, process, physical evidence of the business enterprise. It introduces the ways to sustainable marketing including the business ethics and CSR maintainance of the company; it also includes the relevant legislation of the
5 MARKETING STRATEGY AND PLAN business (Valentine &Powers, 2013). Further it analyzesthe marketing impact on the customers, society as a whole and its impact on the other business. 1. VALS Model (Values, attitude and lifestyle) The psychographic segmentation segments the buyers into different groups and based on the consumers social class, lifestyle and personality characters. The value and lifestyle framework divides the group of customers into two main categories including people who have high resources and the people who have low resources (Bamburry, 2015). The motivational function of these resources includes the ideals, achievers and self expression. The major tendencies of the consumers with high resources include the innovators, thinkers, experiences and achievers. The tendencies of the consumers with lower resources include the believers’, strivers, survivors and makers (Chen, 2014). The business marketing professionals utilize the personality variables like innovativeness, recognizes the needs for cognition and the needs for uniqueness. The consumers are segmented on the basis of the above factors. These consumers are considered to be the leading edge of change, the consumers having high income have high self esteem and have abundant resources have the tendency to indulge in self orientations. The consumers are highly driver by knowledge and principles, these consumers include groups known as thinkers and believers. The consumers are driver by demonstrating success to the peers and they are highly motivated by achievements (Deivanai, 2013). The other consumers groups include the Achievers and the strivers; they highly desire leisure activities and entertainments. The consumers include groups known as experiences and makers. The consumers that belong on the high resource group are highly motivated by ideals. Their traits are usually matured, responsibility and are highly educated sections of the society.
6 MARKETING STRATEGY AND PLAN They are well informed and have knowledge about the new ideas and innovations. They are attracted to the leisure activities (Kahle & Chiagouris, 2014). They are usually rational decision makers. Other category consumers are believers; they are the low resource group and are motivated by ideals. They are highly conservative in nature and favor the products and services offered by the Dominos. They have the modest incomes and are family and community centric people. The experience is the high resource groups and is motivated by self expression. They age group of this segment consumers are mainly 25 years. They have abundant energy and spend heavily on the fast foods offerings by Dominos pizza and other youthful attractions (Kahle & Chiagouris, 2014). The makers are the low resource group, they value self sufficiency and are focused on physical recreation, have little interest in the broader world. They appreciate the food offerings by Dominos. The survivors have the lowest income group consumers, they have very few resources to be included in the consumer self orientation, they are located below. However, they are considered to be the oldest of all the segments, the age group of these types of consumers at median age of 61 years. They have limited means and therefore they tend to be brand loyal customers. 2. STP (Segmentation, Targeting and Positioning) Dominos has positioned itself to be a market leader especially in the food delivery market. The company has a low infrastructure investment and franchisee business model; it makesthebusinessmoreviableascomparedtoitscompetitors(Kara,Kaynak& Kucukemiroglu, 2015). The company has an amazing marketing strategy. The company targets its market segmentation based on demographic, geographic and psychographic factors. The company uses differentiated targeting strategy so that it can serve the market based on its taste
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7 MARKETING STRATEGY AND PLAN and preferences. It has been successful in positioning itself as the Pizza brand, by having a competitive pricing strategy. Thecompanyhasalargecustomerbasehowever;ittargetstheworkingclass professional and the lower middle income group people (Khan, 2014). It mainly targets the consumers belonging in the age group 16 years to 64 years. It targets the young adult consumers from the college and the adult working class consumers. The rationale behind the target group consumers are these age group people are more likely to spend their money and enjoy the fast food offerings by Dominos pizza at a lower price. It also targets the customers, who need to take a break from the daily cooking at home. It targets both the genders. Dominos targets and focuses on broad variety of customers. They mainly target the middle and high class family background consumers (Kotni & Karumuri, 2015). The highly paid employees are targeted. It targets the generation X that are highly active in spending money on fast foods and other leisure activities. It targets mainly two types of consumers that is Dine in and delivery take away. The dine-in customer is mainly the customers who like to spend time with their friends and family. Take away consumers are the consumers who order food online and prefer to get its delivered at their convenience. It also targets the executive class consumers who prefers t have a meeting and discussion over the pizza (Khan, 2014). It offers hot and cola deals as well. They target the consumer having high income and the fast food lovers. The consumers who are ready to sped and enjoy the fast food offering in a good ambience and environment. The positioning strategy of Dominos is to reach the customers who value a quick service for pizza by using the geographic information software and reach to its target customers of the
8 MARKETING STRATEGY AND PLAN nearer locations. The company tries to maintain its positioning by offering its pizza and delivering it to the target customers in less than 30 minutes (About Domino's, 2019). It has been researched that the company has provided 92% on time delivery and achieves the growing segment in its online ordering system through its own website. Dominos stores are situated in midsized or large cities. The company has successfully maintained its position in the market by adhering to its 30 minutes free delivery option rather than selling pizza like other business in the market. They attempt to attract the customer attention by ensuring that the pizza is delivered to the customers in 30 minutes (Holbrook, 2018). This positioning strategy gain immediate attention of the consumer. 3. Marketing mix variables of Dominos pizza Dominos pizza is considered to be the most popular pizza chain with different varieties of pizza. Dominos have been equivalent in providing high quality fresh pizza and good service to its customers. It has continued to grow and expand since its year of establishment. The company’s commitment in providing high quality food and its innovative ideas along with its dedication towards it strong customer base have enables the company to maintain its market position at the top. The packaging style of the company is especially designed to keep it hot and fresh. The company has worked on its unique concept of localizing its flavors (Holbrook, 2018). Product:The Company is high known for its fresh quality pizza with attractive flavors and taste. The products offered by Dominos are targeted for both vegetarian and non vegetarian variety. The company offers various sized pizza including small, medium and large size pizza in various varieties. It offers New Yorker range, Premium pizzas, vegan range, gluten free and it also offers an option to make your own pizza. It offers country special pizza, Mexican green wave, chicken
9 MARKETING STRATEGY AND PLAN and prawn pizza and other popular pizzas. Besides pizza, it also deals with other food items including Garlic bread, stuffed bread sticks, pasta Italian, chicken wings, choco lava cake, butterscotch mousse cake along with beverages like Coke, Thumps-up, Fanta (Pepitone, 2013). Price:The Company mainly targets the higher and middle income group people; it offers best quality food items with reasonable price which is its motto.Dominos has introduced uniform and consistent pricing policy. This helps the company to keep the base price in check and this has enabled the company to attract customers. Considering the pricing policy of its competitors, Dominos has been evenly prized (Verma & Thompson, 2016). However, the prices are higher as compared to its other competitors like KFC and Mc Donald’s. The price of the pizza differs with their sizes and the consumers can choose the items accordingly. Place:the company has maintained a direct channel with its customers. The customer can reach the outlets at their convenient time with their family and friends to hang out. The consumers are also given option to either call or message to place their orders for the pizza delivery. Moreover, they are given opportunity to place their orders online from their official website (Weinstein & Cahill, 2014). The ordered pizza is delivered to the customers at their place of convenience within 30 minutes. Promotion:For promoting its food items the company always introduces new schemes and offers to maintain its string customer base. The deliver the products at the customers place free of charge to compete with its competitors (Verma & Thompson, 2016). Occasionally the offers 50% discount, at other times, the company introduces new schemes including buy one get one free. It also offers lucky coupons to boost their sales.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10 MARKETING STRATEGY AND PLAN People:The Company directly engages with the customer and deals with them. It has large number of trained employees and delivery personnel’s for handling its customers and delivering food items. Process:The Company directly deals with its customers on their outlets. They deal with the customers in such a way that it ensures customer satisfaction; it also provides option for self service and provides homes delivery option (Verma & Thompson, 2016). Physical evidence:There is tangible evidence of the service provided to its customers. It has various outlets set up by Dominos. 4. Introduction to sustainable marketing • Ethics & CSR Dominos is committed in giving back to its community though it’s various corporate social responsibility programs. Maintaining its corporate social responsibility is important for maintaining the company’s reputation and market position. Dominos give forethought and has careful planning to its corporate social responsibility programmers while achieving its business goals and objectives(Ramalingam& Alexander, 2017). To maintain its corporate social responsibility, it participates in various charity events throughout the entire year. Dominos also maintains and embraces children’s education and provides funds for their education. It renders assistance to the schools and provides financial help to the school children’s. It prioritizes the community and aims to aid the school within the vicinity of its outlets. Moreover, the company conducts its business in a very ethical way possible. They maintain and follow a set of standards as mentioned in the company’s portfolio. The company
11 MARKETING STRATEGY AND PLAN conveys that the employees are an important part of their business ethics and considers them as there major stakeholders of the organization (Verma & Thompson, 2016). Further the employee issues are highly by any dealt with immediate action followed by chain of commands. It focuses on reducing the conflicts for personal gains. It portrays a character of coming forward. The company provides a goof way of providing its stakeholders a goof view to elaborate the functions of the company. The company maintains a culture and has a strong influence on the people of the organization. • Relevant legislation Dominos complies with the following legislations, Food safety act 1990, The General Food Regulation Act 2004, Food Safety and Hygiene Regulations Act 2013, Health Safety at Work Act 1974, Food Information Regulations 2014 and other related regulations. The Food hygiene standards are highly maintained by the company. It demonstrates a goof standard of compliance and maintains legal requirements (Ramalingam & Alexander, 2017). It has various food handling practices and procedures with necessary control measures and it prevents cross contamination in the place. The structure of the company facilitates standards of cleaning and maintenance. However, further improvements are required. The food safety management system is in its place and complies with the legal requirements (Verma & Thompson, 2016). The records are appropriate and well maintained. The employees and staff of the organization are suitably supervised and trained. The food handlers and managers are trained in an appropriate manner. It has been observed that the organizational policies were in place and it takes adequate measures to prevent the infected food handler from the contaminated food.
12 MARKETING STRATEGY AND PLAN 5. Marketing impact • Impact of marketing to customers Marketing plays a vital role in influencing the purchase decision made by the customers. Marketing strategy and advertising strategy make a great shift in the market shares of the company by influencing the purchase decision of the consumers (Weinstein & Cahill, 2014). Various marketing campaigns are conducted by the company to influence customer purchasing decision of the consumers. The marketing efforts by Dominos provide compelling offers and quickly change the mind of the consumers and thereby influencing them to make purchases. They provide incredibly attractive offers and enable the consumers to take actions. It proposes regarding the sale or discounts of a particular food items offered by Dominos makes a good effort to influence the customer decisions (Verma & Thompson, 2016). Marketing is done by every business organization to get the visitors attention and engage with them on a long term basis to convince them. Therefore, marketing impacts the consumers. It leverages the consumer behavior while writing headings and social media updates. • Impact of marketing to society as a whole Marketing is associated with promoting its business products and services by the process of communicating to its target customers. Business organizations take huge efforts to improve its sales; it also impacts the society in a positive way by informing and educating the customers (Maloni & Brown, 2016). By identifying the customer’s needs and preferences and it contains a persuasive intent. It educates the customers by providing the consumers means to learn about the new products. It manages the consumer expectations. It uses marketing to make the entire society as a whole aware of the major changes in the product and innovations. The economic benefit of marketing involves promoting goods and services and targets the customers to become potential
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
13 MARKETING STRATEGY AND PLAN buyers. Dominos uses the marketing strategies and advertisements to influence the society and educate them about the new offerings to be provided by the company (Kotni & Karumuri, 2015). Marketing is highly essential to craft awareness campaigns for the major public in the society and address to the social issues. In this way marketing impacts the society. • Impact of marketing to the other business Marketing and advertising has huge impact on other businesses by creating barriers to entry in the existing marketing areas. The well establishing companies with large advertising company’s budgets and th3e market wide name recognition have a significant competitive advantage over its potential competitors (Maloni & Brown, 2016). The companies with large budgets have to create campaigns to affect the new companiesadvertising efforts. Having personalized advertising campaigns helps to gain popularity for the wide range of food products offered by Dominos. The marketers can produce high impact advertising campaigns. Advertising and marketing helps to overdo the other business in the market. It helps the business organization to deviate the customers of the other business and attract new customers in the business. This way marketing impacts the other business organizations (Ramalingam & Alexander, 2017). Conclusion Therefore from the above analysis, it can be concluded that Dominos targets its customer segmentation. Dominos has successfully positioned itself as a market leader in the food delivery market by successfully targeting its customers segments and focusing its marketing activities to reach to its target audience appropropriately. It has a strong and competitive pricing strategy which helps the business organization to stand out and differentiate it with the other competitors
14 MARKETING STRATEGY AND PLAN into he markets. It strategically targets the customer base which has the capability to spend and is food lovers. The business organization creates value by offering fresh quality products in a good environment. Further, the company has successfully positioned itself by delivering the pizza orders to the target audience within 30 minutes. This strategy has helped the company to maintain its position in a competitive market. Dominos is highly committed is providing high quality food items at a reasonable price. It has various outlets opened at various places; it also enables its customers to place their order over the telephone or through their websites. It promotes its products with various discounts and offers. It maintains its business ethics and CSR responsibilities in an efficient manner while achieving its business goals and objectives. The report has analyzed that the business organization compels with all the required and relevant legislation. It has further analyzed the impact of its marketing on the consumers, on the society as a whole and the other business in the market.
15 MARKETING STRATEGY AND PLAN References AboutDomino's-Discoverthestorybehindthebrand.(2019).Retrievedfrom https://www.dominos.com.au/about-us Anderson, T. L., Rasmussen, G. A., & VanHandel, G. J. (2019).U.S. Patent No. 4,134,004. Washington, DC: U.S. Patent and Trademark Office. B. Valentine, D., & L. Powers, T. (2013). Generation Y values and lifestyle segments.Journal of consumer marketing,30(7), 597-606. Bamburry,D.(2015).Drones:Designedforproductdelivery.DesignManagement Review,26(1), 40-48. Chen, K. K. (2014). Assessing the effects of customer innovativeness, environmental value and ecologicallifestylesonresidentialsolarpowersystemsinstallintention.Energy Policy,67, 951-961. Deivanai, P. (2013). A study of consumer behavior towards fast food products with special referencetoDomino’sPizza.Internationalresearchjournalofbusinessand management, (5). Guèvremont,A.,&Grohmann,B.(2014).Cangoodnewsbebad?Theroleofbrand communicationstrategyandbrandcommitmentintheannouncementofproduct improvements.Journal of Marketing Communications,20(5), 352-365. Hartley, S. (2015). Domino's dominate with digital design.Busidate,23(3), 2.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
16 MARKETING STRATEGY AND PLAN Holbrook, M. B. (2018). Creating value: the theory and practice of marketing semiotics research. Kahle, L. R., & Chiagouris, L. (2014).Values, lifestyles, and psychographics. Psychology Press. Kara,A.,Kaynak,E.,&Kucukemiroglu,O.(2015).Marketingstrategiesforfast-food restaurants:acustomerview.InternationalJournalofContemporaryHospitality Management,7(4), 16-22. Khan, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review paper).International journal of information, business and management,6(2), 95. Kotni, V. D. P., & Karumuri, V. (2015). A Study on Determinants of Purchase Behaviour in Fast Food Outlets.IPE Journal of Management,5(1), 1. Mahajan, S., & Alexander, P. (2017). Customer satisfaction at a pizza store. Maloni, M. J., & Brown, M. E. (2016). Corporate social responsibility in the supply chain: an application in the food industry.Journal of business ethics,68(1), 35-52. Pepitone, J. (2013). Domino's tests drone pizza delivery.CNNMoney, June,4. Ramalingam, U., & Alexander, P. (2017). Target marketing for a research organisation. Rosenbaum-Elliott, R., Percy, L., & Pervan, S. (2015).Strategic brand management. Oxford University Press, USA. Verma, R., & Thompson, G. M. (2016). Basing service management on customer determinants: theimportanceofhotpizza.TheCornellHotelandRestaurantAdministration Quarterly,37(3), 5-23.
17 MARKETING STRATEGY AND PLAN Villanueva, J., Yoo, S., & Hanssens, D. M. (2018). The impact of marketing-induced versus word-of-mouth customer acquisition on customer equity growth.Journal of marketing Research,45(1), 48-59. Walker, K. L., Curren, M. T., & Kiesler, T. (2013). A retail center facing change: Using data to determine marketing strategy.Marketing Education Review,23(3), 287-296. Warin, T., de Marcellis-Warin, N., Sanger, W., Nembot, B., & Hossein Mirza, V. (2013). Corporate reputation and social media: a game theory approach.CIRANO-Scientific Publications 2013s-18. Weinstein, A., & Cahill, D. J. (2014).Lifestyle market segmentation. Routledge.