Domino's Pizza: Marketing & Management Case Study

This case study analyzes the marketing and management strategies of Domino's Pizza. It includes a 5C analysis, SWOT analysis, and STP strategies for the Australian market.

Running Head: PIZZA 0
DOMINO’s pizzA
Marketing & Management
4/17/2019

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Executive Summary
Domino’s Pizza in store opening blitz after growth decreases as they bring new stores to
encourage sales. They are moving at a rapid rate and have plans to add more stores in order to
heat up the competition. Despite promotions, marketing blitz, and investment in new
advancements, Domino’s sales have underwhelmed several investors in recent quarters. In
the following, an effort has been made to analyze the case study and undertake the 5 C,
SWOT analysis, and STP strategies with respect to the Australian market for Domino’s. In
addition, the analysis has been made on the research proposal to identify the consumer needs
and preferences of the targeted market.

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Introduction
Domino’s Pizza plans to open a new store to develop growth momentum in its business,
which has flagged sales growth of 3 to 6 percent and return on earning between $227 and
$247 for the year to June. Dominos has introduced 90 stores so far and will have to open at
least 110 new stores as they have reduced its targets for the opening of the new store from
between 225 and 250 to between 200 and 215 across New Zealand, Japan, Europe, and
Australia. They have increased its European store-count targets from 2700 to 2850 and
Dominos have the capability to achieve the target as they are opening new stores at a rapid
rate. Dominos is more concentrating on encouraging organic growth due to the reason that
people are more prone to them. They have to recapitalize its brand capabilities and required
investment in IT systems, store equipment, and other systems. The stock has fallen down to
15 percent in the past six months and is considerably low from its all-time high price of
$80.10 in 2016 (Taylor, 2016). In the following, an effort has been made to conduct the 5C,
SWOT analysis, Segmentation, targeting & positioning strategies for the Australian market,
and research proposal for a new product/service.
5C analysis
5C analysis is a marketing tool to conduct a situational analysis in which Domino’s pizza
incorporates its marketing practices and includes both the micro and macro environment
factors that influence Dominos’ pizza. It permits the marketing managers to carry out
probabilities to several types of risk exposure, which Domino’s is facing to design marketing
strategies accordingly (White, 2018). The 5Cs of marketing analysis is described below-
 Company
 Customers
 Competitors
 Climate
 Collaborators
Company
The company analysis will assist the Domino’s Pizza to optimize the utilization of the
marketing resources as each organization has diverse skill sets and marketing budget to
implement the promotional campaigns and marketing strategies.

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Mission & vision- Domino’s pizza mission is to maintain greater standards of the
international chain of delivery of pizza and deliver the experience of an excellent product
with greater customer service. Their main mission is to offer the taste in the fastest means to
the consumer differentiated from other competitors. Their vision is to be the best operator and
achieves the high quality so that customers get satisfied.
Objectives- Their objective is to deliver the long-term value to its shareholders and letting
customers have snap-updates over their orders by utilizing mobile technology. They need to
increase brand equity in both among the perspective as well as existing customers.
Culture- Domino’s Pizza has a strong culture of the process as well as product innovation as
they need to generate strong marketing department, which assists in designing successful and
effective promotional campaigns (Nilofer and Rizwanullah, 2017).
Customers
The customers’ analysis will help the Domino’s Pizza to select a target market and
implementing marketing strategies to attain desired to a position in the minds of the
customers. This has been evaluated from the research that Domino’s Pizza treats people in
the best manner and maintain consistency in taste as well as quality. They are providing its
customers comfortable and well facility ambience to maintain a good brand image. They
should concentrate on making more coupons accessible to their customers. They should also
enhance their marketing strategy of pizza delivery, which assists in combating declining sales
and tough competition. They should also concentrate on enhancing their customer base,
which would improve their market share and profitability. They can also add new products as
well as producing more variety to their set menu with the changes in taste and needs of their
customers.
This has been analyzed from the research conducted that Domino has reported $1344 million
in revenue and a net amount of approximately $56 million. They need to continue to diversify
their product line and improve customer satisfaction in the future. This tends in encouraging
very loyal customers and builds a strong network with their franchisees. They need to
implement strategies that would be successful for customers who are seeking special events
and parties (Mishra and Modi, 2016).
Competitors

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The competitor analysis will assist the Domino’s Pizza in designing marketing strategies and
practices to develop competitive pressure from potential entrants as well as established
players. They need to drive future growth and capabilities and maintain technological
innovation in producing current positioning less profitable in order to meet technological
capabilities and seek for better opportunities.
Their main competitors are Papa John’s Pizza, Pizza Hut, Mc Donald’s, Nirula’s and KFC.
As per Australian Marketing Association, the competition among sellers is predicted to attain
various objectives and goals such as market share, increasing profits, and sales volume by
differentiating the aspects of the marketing mix i.e. price, products, place, and promotion.

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It is stated from the research that Domino’s Pizza enjoys 50% market share and capabilities,
which deliver similar product and attract the customers. The working executives have do not
have the spare time to cook food because of their improving operational level and potential
income so that they need to match the food outlet with their desired needs. It is stated that
they need to maintain the huge marketing resources in order to compete with the incumbents
but also generate a high level of marketing strategies (Asirvatham and Bhuyan, 2018).
Climate
This analysis of the 5C framework deliberates from the diligent analysis of macro-
environmental factors such as political, economic, social, and technological.
Political- The political factors states that the Australian government is more concentrating on
business and trading. The Australian government is maintaining an effective relationship with
the UK and USA government. It can influence the marketing campaign and advertising to
operate the products of Domino’s Pizza and maintain regulations internationally.
Economical- The economic factors states that the current inflation rate is 2.80% and the
Reserve Bank of Australia has set the policy to attain inflation of 2-3%. The consumer
behaviour during recession time is probably different so marketing managers at Domino’s
Pizza have to decide in which manner the customers will behave in the current economic
circumstance.
Social- The social factors states that Australia has a different lifestyle and cultural aspects
with a vast population of 22 million. They are more concentring upon health, as they need to
maintain the needs of the customers as per their expectations in the future.
Technological- The technological factors states that Australia strong business performance
was because of the innovation and contribution to research and development, which aimed at
encouraging international competitiveness, generating productivity, and developing new
markets. They can offer piping hot pizzas for premium prices all the way towards our
innovative technology. It is stated that the Australian Government also supports Research and
development by delivering substantial tax concessions and direct investment to motivate
private sector investment. It is quite evident that online order has also been accessible in this
era of time and on the other side, the internet has completely taken over communication
(Phadermrod et al., 2019).

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Collaborators
The Domino’s Pizza launched its first outlet in Vietnam with a Vietnamese franchisee and
beverage service. They have leapfrogged the competition and flaunting collaborations with
some of the developing technology. The Domino’s pizza and Ford Motor Co. has launched
the first collaboration and make sure that innovative technology is adopted in a manner that
can improve the customer experience (Leiber, Stensaker and Harvey, 2018).
SWOT analysis
The SWOT analysis is a strategic tool utilized to analyze the strengths, weaknesses,
opportunities, and threats incorporated into a business venture. It identifies the internal and
external aspects that are profitable or not to attain the desired objective.
Strengths-
 International Expansion: It is to be stated that Domino’s Pizza has initiated its
international store in Canada and introduced its 1000th store in all over the world,
which states that they franchise operations globally in more than 50 nations.
 Health aspect- Domino’s Pizza is continuously initiating an extent of healthy options
and concentrating on providing effective nutritional products. As every people are
more prone to organic food and basically very conscious about their health and well-
being.
 Strong brand engagement- Domino’s Pizza is having strong brand engagement,
which provides a competitive edge over other opponents. It is to be stated that heavy
promotion and international market strategy is a significant strength to develop its
brand engagement and make a positive image in the minds of customers. They need
to make Domino’s as the number on Pizza company in Australia in respect of sales
and customers.
 Diversification- Domino’s Pizza needs diversification strategy for online delivery of
the order to their customers. Their core strength is to deliver the pizza in a timely
manner. According to the case study, it is to be stated that Domino’s Pizza is
diversified its operation in all over the world involving Europe, Japan, New Zealand,
and Australia (Gürel and Tat, 2017).
Weakness-

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 Intense competition- Domino’s Pizza is facing critical issues because of a decline in
sales and slow growth advancement. They are experiencing decreases in its net
profits and operating sales as compared to the previous year. As per the case, it is to
be noted that Domino’s shares fell off and closed down at $44.50, which proved that
there is intense competition and need to boost the sales growth and earnings.
 Negative publicity- It is to be stated that Domino’s Pizza fails in managing their
franchise effectively as the momentum was quickly lost when they are involved in an
automobile accident and generated negative publicity. As per the case study, they are
facing dispute and compliance costs from an industrial relation, which decreases the
sales growth and profitability (Liu and Alexander, 2017).
Opportunity-
 Improve efficiency- Domino’s Pizza improves home delivery and efficiency, which
is their point of differentiation. They need to make it more convenient and easy for the
customers by the use of mobile internet efficiently and effectively. They need to add
more flavour and ingredients that can be a good stride for them. As per the case study,
it is to be noted that Domino’s Pizza can enhance its efficiency by innovating their
technology and competitive edge in order to ensure a competitive edge.
 Developing a presence in emerging segments- Domino’s Pizza can generate a vast
opportunity in Melbourne, which is the fastest developing population than any other
city of Australia. The distribution network should also be strengthened so as to make
sure market penetration in the current market at a maximum operational level (Cui
and Choudhury, 2015).
Threats-
 Competitive rivalry- Domino’s Pizza works with Quick Service Restaurant, which is
a segment of pizza om Australia. Their main threat on the pizza segment is pizza hut
and Eagle Boys. It is to be stated that other quick service involving Red Rooster, Mc
Donald’s, KFC, and Subway, which is considered as the biggest threat in respect of
sales and net worth.
 Increasing awareness- Domino’s Pizza main threat is increasing awareness
regarding harmful health-related to artificial preservatives, flavours, and additives,
which represents a threat to them.

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 Increasing energy costs- Domino’s Pizza is also impacted by oil prices, which has
increased four times since 2001. As per the case study, it is to be stated that business
in Germany was hit by organic growth, which was back-on-fire and resulted in less
number of the opening of new stores (Cross, J.C., Belich and Rudelius, 2015).
Segmentation, targeting, and positioning strategies
Segmentation-
Domino’s Pizza segmentation depends upon the market condition, which involves 6.7 million
people living in Australia. They need to develop the new store where is a huge number of
population and more concentrated upon age, gender, and other demographic variables. They
need to evaluate customer need and preferences. They need to target the audience, which can
be youth and professionals who have not enough time to prepare for the food. As per the case
study, it is believed that they need to more focus upon delivering consistent quality and
maintain the customers. They need to be more culturally diversified which can fulfill the
demand of the customers in respect of market extent and competition. Domino’s Pizza needs
to use its strength in providing organic food and capable to customize brand loyalty. They
need to segment its market orientation by opening new stores so that they can recognize the
needs of the customers and generate a positive image in the minds of customers by providing
pizza in 30 minutes. They intend to penetrate the market significantly by opening 20-25
outlets in each city. This can result in a leader in a fast food segment with a market share of
68% (Fulgoni, 2018).
Targeting
Domino’s Pizza has been successful and profitable in Australia by customizing its set menu
to fulfill the needs and preferences of the customers by utilizing local flavours and taste. The
same approach has been embraced with the initiation of innovative technology by providing
reliable quality to their customers. The target segment will be customers of below 30 age-
group who have less time to prepare for the food and get the quick meal at any time of the
day by the option of online order through mobile apps. According to the case study,
Domino’s Pizza is maintaining its customers by giving them an option of mobile app
delivery. This can result in maintaining cost advantage by not paying to the aggregators. They
can open their new store in Melbourne city of Australia, which has a huge population and
elite locations in Australia. They can diversify its outlets in Express stores, Super Stores, and

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Regular stores. Superstores are termed as those which maintains high concern and had more
counters than regular stores. Express stores are those in which people are expected to walk
despite home delivery (Hu, et al., 2018).
Positioning
Domino’s Pizza has been capable to succeed in the market by generating a cultural-specified
mix. They need to make the position in the minds of the customers by involving more variety
i.e. sandwiches, desserts, salads, and chicken wings. They need to make the price as
competitive in respect of others in the segment. Domino’s Pizza needs to concentrate on
owning the taste platform as a means to fulfill the needs and preferences of the customers
with the help of innovative technology as 30 minutes’ delivery. Their core target customer is
the age-group below 30 age group. As per the case study, it is believed that the customer
perception about Dominos is changing as new they want to sustain the long-term profits and
work hard to create the positive image in the minds of the customers. They need to introduce
new store in gaining the trust, loyalty, and recognition in the parameters to attain expectation
from the customers and changed the perception regarding Domino’s Pizza (Iyer et al., 2018).
Marketing research
Research Methodology
It is a technique, which is utilized to select, process, and identify the information concerning
needs and wants of the customers. This research paper is depending upon the research design,
research objective and data collection, and analysis (Holbrook, 2018).
Research design
The research design is a mix of collection and situations. The research designs for the topic
Domino’s Pizza opening of the new store is processed with the mixture of both the qualitative
and quantitative approach. A qualitative approach is determined by a generalized system of
observation to collect non-numerical information. The quantitative approach is evaluated by
the survey through a questionnaire (Hartley, 2015).
Research objective-
The research objective of the Domino’s Pizza is to understand customer analysis, which
involves the major attribute of value and recognition. They need to evaluate the quality of the
diverse attributes and enhances their market share and profitability. They need to establish

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itself in a local market and enhances sales to generate a positive image in the minds of the
customers (Arfaoui, 2017).
Research problem
The research problem identifies that the satisfaction of the customers is decreased towards the
service provided by Domino’s Pizza. It has not provided a clear cut idea about the marketing
pattern and marketing strategy to develop a new store in several nations involving Australia.
Research Method
The Research method is identified that survey through questionnaire method can be used to
collect the information concerning the needs and preferences of the customers towards
Domino’s pizza.
Data collection
The data collection method can be used is a questionnaire to collect the information in respect
to providing effective better service and which had several advantages as compared to other
methods i.e. observation or experiment. A questionnaire consists of many questions regarding
open-ended questions and close-ended questions. The research conducted is descriptive in
nature and cheaper than other methods (Tung et al., 2016).
Conclusion
In conclusion, it has been stated that Domino’s Pizza is taking more effort in maintaining a
positive image in the minds of the customers by opening a new store in all over the world. In
the above, the discussion has been made on the 5C’s, SWOT analysis, and Segmentation,
targeting, and positioning strategies for the Australian market. It is quite evident that people
are more attracted towards pizzas because of its flavor, taste, and freshness. They need to
open more outlet in the other areas where people are more attracted towards quality and need
to adopt an aggressive marketing strategy.

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Appendix
Q.1 How many time you had visited domino’s?
a. one time
b. two time
c. three time
d. more than three time
Q.2 Is the quality and taste always remain the same in Domino’s pizza?
a. Yes
b. No
Q.3 Is the price being satisfactory or not?
a. Satisfied
b. Not satisfied
Q.4 is it before 30 minutes?
a. Yes
b. No
Q.5 Do you ever ordered food for home delivery from Domino’s pizza?
a. Yes
b. No

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