Research on Decline in Sales of Domino's Kingsland Store

Running head: PROJECT REPORT
Project Management
Name of the student
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PROJECT REPORT
Table of Contents
Executive Summary.........................................................................................................................6
1.0 Introduction and Aim.................................................................................................................8
1.1 Industry Background.............................................................................................................8
1.2 Organization’s Background...................................................................................................9
1.3 Research Problems...............................................................................................................10
2.0 Research Methodology............................................................................................................10
2.1 Research Philosophy and justification.....................................................................................11
2.2 Research Design method and justification..........................................................................11
2.3 Research Approach and justification...................................................................................12
2.4 Sampling..............................................................................................................................12
2.5 Data Collection techniques..................................................................................................12
2.6 Data Analysis Techniques...................................................................................................13
2.7 Limitations...........................................................................................................................13
2.8 Assumptions........................................................................................................................14
2.9 Ethical Considerations.........................................................................................................14
3.0 Literature Review....................................................................................................................14
3.1 Fall of Sales in the fast-food sector.....................................................................................14
3.2 Reasons for which customers are not buying......................................................................17

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PROJECT REPORT
3.4 KANO Model......................................................................................................................21
1. Violante, M. G., & Vezzetti, E..............................................................................................21
KANO Model Analysis.............................................................................................................21
Figure No 1: KANO Model of Customer Satisfaction..............................................................23
KANO Model and Decline in Sales...........................................................................................23
3.5 Effective Communication Management..............................................................................24
3.10 Summary of the Chapter....................................................................................................29
4.0Results.......................................................................................................................................29
4.1 Introduction..........................................................................................................................29
4.2 Primary Data Collection Method One.................................................................................30
Figure No 2: Pie chart showing the percentage of respondents.................................................31
Table No 1: Percentage of Respondents....................................................................................31
Figure No 3: Pie chart showing the age group distribution of respondents...............................32
Table No 2: Age group of Respondents....................................................................................32
Figure No 4: Pie chart showing number of regular customer’s distribution.............................33
Table No 3: Regular customers among the Respondents..........................................................33
4.3 Primary Data Collection Method Two................................................................................34
Figure no 5: Over consciousness of health................................................................................34
Table No 4: Over consciousness of health................................................................................35
Figure no 6: Service Quality as a Major factor for decline in sales..........................................35

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PROJECT REPORT
Table No 5:Service Quality as a Major factor for decline in sales............................................36
Figure no 7:Competition has led to the fall of sales..................................................................37
Table No 6:Competition has led to the fall of sales...................................................................37
Figure no 8:Lack of innovation as a factor for decline in sales.................................................38
Table No 7:Lack of innovation as a factor for decline in sales.................................................38
Figure no 9:Indifferent perspective of the management of Dominos........................................39
Table No 8:Indifferent perspective of the management of Dominos........................................39
Figure no 10:Absence of Proper and trained employees...........................................................40
Table No 9:Absence of Proper and trained employees.............................................................40
Figure no 11:Absence of effective Organizational Structure....................................................41
Table No 9:Absence of effective Organizational Structure.......................................................41
5.0Analysis and Discussion...........................................................................................................42
5.1 Reasons for the Decline in Sales.........................................................................................42
5.2 Does Low sales of the store lead to a high turnover?..........................................................43
5.3 Reasons behind low profit in business.................................................................................43
5.4 Good Stock Management Strategies....................................................................................43
5.5Reliability and Validity of the Research process..................................................................43
5.6Limitations of the Research Methodology and Results........................................................44
6.0Recommendations.....................................................................................................................44
6.1 Long Term Recommendations............................................................................................44

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6.2 Short Term Recommendations............................................................................................46
7.0Conclusions...............................................................................................................................46
7.1 Main Points identified..........................................................................................................46
7.2Further Research Area..........................................................................................................48
8.0 References................................................................................................................................49
9.0Appendixes...............................................................................................................................54
9.1 Appendix A: first appendix.................................................................................................54
Questionnaire.............................................................................................................................54
9.2 Appendix B: second appendix.............................................................................................57
Research survey responses........................................................................................................57

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PROJECT REPORT
Executive Summary
The research has been based on the identification of the different factors that leads to the
decline of the sales in a business organization. The research has taken the example of the
Kingsland Store of Dominos Pizza as the example. The particular research has completed the
steps to investigate issues, and have discussed the methodologies that have been used to identify
the different kind of reasons behind the issues, as well as have identified the different solutions
and recommendations. Domino’s is the one of the leading franchise pizza chains in New
Zealand. The domino’s store is located on New North road in Kingsland, Auckland. In this store
the total working staff is of 14 members. The owner has been handling the store as a general
manager; under him the store have 4 store managers with 6 crew members and 4 delivery
drivers. The general manager oversees shift allocations, inventory ordering and salary. Store
managers handle the store, count the stock and handle the cash. The crew member’s work is to
make pizzas, take orders and complete other miscellaneous works. Lastly the delivery drivers are
for deliveries of the pizza, cleaning and other miscellaneous work.
The main research problem in the study is the discussion of the problems that has led to
the decline in the sales. The decline of the sales has been the major issue for the organization for
quite a long time and the management of the store is concerned that any further problems can
lead to the closure of the business. The identification of the research problem is necessary in this
particular research. The literature review has been constructed by means of a secondary research.
The secondary research analysis has been based on the research of the related perspectives of the
decline in the sales of the organization. The sales decline of the organization are thus related to
problems of quality, customer satisfaction, wrong selection of markets and potential customers,
absence of managerial expertise and many other similar factors. The secondary research

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PROJECT REPORT
questions have then been primarily analyzed by means of collecting samples from the
respondents who are the customers of the organization. The respondents have supported the
results of the secondary analysis. The results have been described by means of constructing
charts, bar graphs and pie charts. The statistical analysis to determine the primary results have
been beneficial in this case as because it has helped the results to be scientific and accurate in
nature. The results of the research have proved that customer dissatisfaction, inability to innovate
and absence of change management have led to the huge decline of sales. The study concluded
with a brief summarization of the total work and the discussion for the scope of the future
research on the same topic.

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PROJECT REPORT
1.0 Introduction and Aim
Domino’s Kingsland is a part of the Auckland fast food industry. The store is operated by
Fountain Trade Ltd. and was opened on 27thJanuary, 2017. The research is based on the decrease
in sales and some other staff management issues. In this particular project the researchhas
proposed the steps to investigate issues, and have discussed the methodologies that have been
used to identify the different kind of reasons behind the issues, as well ashave identified the
different solutions and recommendations.
1.1 Industry Background
The fast food industry is the backbone of the New Zealand economy. Sales in the fast
food industry in New Zealand increased by 3.6% and reached $11 billion in 2018. The fast food
businesses increased by 32.4% nationwide (Hospitality Report, 2018). As New Zealanders have
come to embrace the health and the wellness trend, they have also become more and more aware
of the quality of the food they consume. This leads to a boost in the sales of different kinds of
premium and healthier concepts that are delivered by most of the different food chains of New
Zealand (ibisworld.com.au, 2019). However, the fast-food service in New Zealand has grown
over the past few years especially the last five years in general.
As said earlier, the demand for good and healthy food is the trend that has been there for
the last few years. Demand growth for healthy as well as tasty food has grown over the last few
years more than that of the demand decline for unhealthy fast food. Industry revenue is expected
to rise to $5 billion in the coming years with an annual growth percentage of around 6%. The
experts in the following sector believes that the food sector in New Zealand will provide