Factors that have attributed to big sales of Dominos pizza

This article explores the factors that have contributed to the big sales of Dominos pizza and how they have improved their marketing strategy. It discusses their friendly prices, fast delivery, unique features such as the pizza tracking app and customer data recording, and their targeting strategies. The article also covers segmentation, gap analysis, the GE McKinsey matrix, situation analysis, customer satisfaction, and the use of SWOT analysis.

Running head: MKT110 MARKETING FUNDAMENTALS 1
MKT110 Marketing Fundamentals
Name
Affiliation

MKT110 MARKETING FUNDAMENTALS 2
Contents
Introduction 3
Perceptual mapping and competitor analysis 4
Factors that have attributed to big sales of Dominos pizza 4
Friendly prices 4
Fast Delivery hot 4
Domino Supply chain 5
The reasons why the pizza is unique 5
The pizza tracking App 5
Customer’s data recording 5
Turnaround pizza ad campaign 5
Segmentation 5
Targeting strategies 7
Valuable target market 7
Targeting depending on customer taste and preference 7
Market existence period 8
Gap analysis 8
The GE McKinsey matrix 8
Situation Analysis 8
Customer satisfaction 9
Use of the chain analysis 9
SWOT analysis approach 9
References 10

MKT110 MARKETING FUNDAMENTALS 3
MKT110 Marketing Fundamentals
Introduction
Domino the best food outlets in Australia with their main commodity being pizza hut. Over the
years the business of fast food has been very competitive. Dominos have been improving their
marketing strategy in order to make sure they remain on the front line in terms of quality
products and quality services. As strategic result of strategic management and extensive
marketing, Domino’s had established over 600 outlets in Australia and over 15100 outlets in 85
countries. By the year 2010, Domino’s pizza hut was not famous in Australia but thanks to
marketing as today it is one of the most famous pizza delivery outlets in Australia. The following
are some of the mode of factors that have attributed to big sales of Dominos pizza hut in recent
years (Smith, 2011).

MKT110 MARKETING FUNDAMENTALS 4
Perceptual mapping and competitor analysis
Figure 1: Perceptual mapping for Dominos
Dominos faces stiff competition from KFC, Pizza hut, MaDonald’s, Jumbo King and Vada Pavs
among others. However, dominos have managed to continue operating in the market despite the
stiff competition from the above competitors. There are some factors which helps it to perform
well in the market. Such factors includes
Factors that have attributed to big sales of Dominos pizza
Friendly prices-Customers are offered a relative low cost at the outlet .this is because the cost of
establishment is low. This has in return contributed to increase in the number of customers and at
the same time maintaining their loyalty (Tom J. Brown, 2013).
High Price/High value
proposition
Pizza hut
KFC
Dominos
High value
proposition/Competitive
price
McDonald's
Jumbo King
Low value
proposition/high price
Competitive price/low
value proposition
Vada Pavs

MKT110 MARKETING FUNDAMENTALS 5
Fast Delivery hot-One can have pizza at the outlet or be delivered at one’s home. Domino’s
have a perfect quick delivery services. The parcel is wrapped well to ensure that reaches
destination while still hot.
Domino Supply chain-Each Dominos outlet has its geographical area to supply. This reduces the
cost incurred and also ensures that the company resources are well used. This is achieved
through vertical integration. All the purchases of raw material of Domino’s are centrally
managed across all outlets in the world through Dominos supply chain services network.
To understand the position of Dominos in Australia market I conducted a market research and
dominos Domino’s pizza stand out due to;
The reasons why the pizza is unique
The pizza tracking App-All the process from placing an order, cooking and the leaving the
outlet can be followed using dominos app and a live tracker app lets customers follow each stage
of their order. Driver’s location can be followed up using GPRS tracker.
Customer’s data recording-Dominos system records key details such as number of orders placed
per week across all outlets, total cost per order. This helps in comparison of a franchise with
other stores. These data’s are shown to employees to understand their performance
Turnaround pizza ad campaign-Domino’s always value customers feedback and embraces both
negative and positive comments.
Segmentation
The theory of segmentation will help in understanding the Dominos pizza hut market. It divides
the population into demographic, geographical and behavior variables (Morritt, 2014).

MKT110 MARKETING FUNDAMENTALS 6
Each segment can be categorized as follows
Geographical
Location, language used and lifestyle Dominos divides market depending on area,
the employees are categorized based on
language used, and the marketing is
conducted based on taste and preferences of
different localities
Demographic
Age, gender, income, religion, race and
nationality
Marketing is done depending on age;
young/old, women /men, also people of
different nationality order according to where
they come from. There are customers who
always have a specific pizza type they order.
Level of income also varies where rich people
order expensive pizza huts.
Behavioral
Consumer response to new products,
advertisement, common events such as
Christmas and customer loyalty
Some people always want to buy latest
products and others stick to old ones styles.
Also people tend to buy more during event
such as valentine day, Christmas and national
holidays

MKT110 MARKETING FUNDAMENTALS 7
With increasing demands in Australia dominos have to improve on their performance by adding
the following in their segmentation market.
Geographic
Outlets
Introduce more outlets,
Demographic
Events
Have a standardized prices for all types of
pizza across all regions
Behavioral
Events
Come up with a way with a discounts
program during the occasions there are more
sales such as valentine day.
Targeting strategies
Targeting of strategies refers to the process of selecting customers a company sees as potential of
buying their products and determining which product should be sold to particular customer. For
dominoes to remain the market leader, different target need to be set (Ronald D. Michman, 2018,
p. 48). These include;
Valuable target market-Dominos should intensify their marketing in highly concentrated areas.
Residence also refer to each other of the good services offered hence the more people know
about dominos the more they are likely to refer those close to them. This will help to widening
the market over a short period of time.
Targeting depending on customer taste and preference-Dominos should establish outlets
depending on what customer in a certain region order most. Which is dependent on customer’s

MKT110 MARKETING FUNDAMENTALS 8
level of income, preferences or level of education among other factors. This factors among other
determines what the customer likes to consume in the long run.
Market existence period-Marketing should be based on how it going to last. A market would
constitute short term customers like tourists or whether it constitutes of customer for a year or
even a decade. This will determine in variables like pricing and delivery. Competitor customers
should be a target too
Gap analysis
This is achieved by evaluating the current market and identifying its lope holes and developing a
strategy to cover them. Introduction of new services which are not offered by the competitor will
always bring more customers to the business (ITE (Institute of Transportation Engineers), 2016).
To win favor with the targeted market, the following company should consider the following
strategies
The GE McKinsey matrix
One may be posed with difficult situation on what to product to buy first since each product may
have its own demands and requirements bur resources may be limited. The managers have a
responsibility of making sure the company grows at an optimum rate, they will have to invest on
some of products by assigning more money on some products than on others and keeping others
at their current situations and foregoing those that are not productive. This kind of decision
making is known as GE McKinney matrix (Rosalind Masterson, 2017). Dominos should produce
more pizza hut types depending on its demand, for example an area with more young population
may consume more of a beef pizza hut while that composed of elderly people may consume of
vegetable pizza hut.

MKT110 MARKETING FUNDAMENTALS 9
Situation Analysis
This is aimed in identifying company standing in the current market. It helps track the progress
one a company has made over a certain period of time. This help in knowing whether a market
strategy taken has worked or not. Analysis is the one used in determining the strengths and
weaknesses of any company hence should be adopted by the dominos (Monle Lee, 2015).
Customer satisfaction
A company should always aim at serving its customers at their best level. This would win their
loyalty and also they are likely to recommend those close to them of your services. Thus
dominos should implement strategies that keep the customers satisfied and guarantee his or her
retention.
Use of the chain analysis
There is stiff competition and customers have more options to buy the products from. They
always consider the value they derive from the product they intend to buy. A customer may
decide on Pizza Company that deliver within a short time and while still hot and fresh. In this
case Dominos should focus on speeding their delivery and to win customer loyalty (Parmett,
2018).
SWOT analysis approach
SWOT involves determining what the company is doing, and on whether it affects the business
in a positive or negative way. It refers to analyzing the company strength, weaknesses,
opportunities and threats. Dominos should apply these criteria to understand their standing in
market and improve on its failures (Sarsby, 2015).

MKT110 MARKETING FUNDAMENTALS 10
References
ITE (Institute of Transportation Engineers), . D. (2016). Transportation Planning Handbook.
Somerset: Wiley.
Monle Lee, . J. (2015). Principles of advertising : a global perspective. New York: Haworth
Press.
Morritt, R. M. (2014). Segmentation strategies for hospitality managers : target marketing for
competitive advantage. New York: Routledge.
Parmett, D. (2018). Stiff Competition. Toronto ; New York: Bantam.
Ronald D. Michman, . M. (2018). The food industry wars : marketing triumphs and blunders.
Westport, Conn: Quorum.
Rosalind Masterson, . P. (2017). Marketing : an introduction. Los Angeles: SAGE.
Sarsby, A. (2015). SWOT analysis. Not known: Leadership Library.
Smith, A. F. (2011). Fast Food and Junk Food: An Encyclopedia of What We Love to Eat.
Berlin: Greenwood Publishing Group.
Tom J. Brown, . A. (2013). BASIC MARKETING RESEARCH. [Place of publication not
identified]: SOUTH-WESTERN, DIVISION.