International Marketing Strategy for Domino's Pizza

Title of work Assessment 2
Module title and code International Marketing Strategy
Tutor
Number of words 3000
J Number
Student Number
1

Contents
1. Introduction to the organization................................................................................3
1.1 Justification of this choice................................................................................. 3
1.2 Market entry choice and market entry method........................................................3
1.3 Market research............................................................................................. 6
1.4 Brand positioning in the host country...................................................................8
1.5 Marketing mix (4 Ps) strategy............................................................................ 9
1.6 International marketing strategy.........................................................................9
2. Designing and planning the international marketing strategy..............................................10
2.1 Market entry choice and market entry method...........................................................10
2.2 Market research................................................................................................ 11
2.3 Brand positioning in the host country......................................................................15
2.4 Marketing mix (4Ps or 7Ps) strategy.......................................................................16
Product strategy..................................................................................................... 16
Price strategy........................................................................................................ 16
Place Strategy....................................................................................................... 16
Promotion Strategy................................................................................................. 16
2.4.1 Discussion using Marketing Strategy models.......................................................16
2.5 Cultural issues to be considered............................................................................18
2.6 Possible market barriers, their risks, and mitigations...................................................18
2.7 Recommendations............................................................................................. 19
3. Conclusion........................................................................................................... 19
References.............................................................................................................. 20
Appendices............................................................................................................. 25
2

1. Introduction to the organization
Domino’s, founded in the 1960s by Tom Monaghan, is renowned for the guiding principles
of exceptional people embarking on a mission to be the world leaders in pizza making
(Domino's, Inc, n.d.). The positive energy summed up with great customer service helped
the company’s accelerated growth to operate in 85 countries with more than 16,000 stores
(Domino's, 2018).
Domino’s perspective of a clear vision and strong missions generated further growth; in fact,
they are amongst the top five of online transactions competing directly with big names like
Apple and Amazon (Domino's, 2018).
Due to this growth, the return in Domino’s shares listed in The New York Stock Exchange
surpassed that of Apple and Google in 2017 (Capgemini Consulting, 2017).
1.1 Justification of this choice
Domino’s started operating in Malta in 2017 whereby Famalco Group partnered with
Domino’s regional franchisee for South East Europe (Domino's dives into island nation of
Malta, 2017).
This research will concern the possibility of entering a new market in another country,
namely, Florence in Italy. Florence is the eighth largest city, in population, in Italy and
attracted over 10 million tourists in 2017 (Florence, 2019). This idea emerged due to fact that
Domino’s success and steadfast growth in Malta, Famalco Group could expand strategically
their operations and enter a market where an American product could attract another
customer segment (Forbes, 2019).
1.2 Market entry choice and market entry method
Product Life Cycle
The product life cycle is a cycle through which all the products goes through from the initial
stage of introduction to the final stage that is withdrawal or eventual demise. The product life
3

cycle is comprised of 4 stages, each with different characteristics (Kotler, et. al., 2018). The
Domino’s Pizza also has its life cycle as presented below:
Introduction Stage – The introduction stage of the life cycle is one of the most expensive
stages as the business launches its product in the market which requires a huge investment.
The size of the market for the product is small, which means sales are low, although they will
be increasing. Domino’s pizza was introduced in the year 1960 in America (Shenkar, Luo, &
Chi, 2014).
Growth Stage – The growth stage is majorly classified through increasing growth in profits
and sales, and because the business could benefit from the economies of scale in the
manufacturing, the profit margins, and the entire profit amount will increase. Domino’s Pizza
has become one of the leading pizza chains in the world due to its extended operations at
different locations. The business is regularly growing with its new pizza’s and additional
services (Tiago, &Veríssimo, 2014).
Maturity Stage – At the maturity stage, the business is established strongly in the market and
the business aims to maintain its share in the market. Domino’s Pizza is presently dealing
with huge competition from the key players in the market that are Pizza Hut, Mr. Bean, etc.
Hence, the company is putting maximum efforts to maintain its market share in the Malta
market and adopting different strategies to cover new markets (Gillespie, & Riddle, 2015).
Decline Stage –At the decline stage, the product of the business starts shrinking due to
market saturation. The Domino’s Pizza market in Malta is presently attaining the saturation
point due to which it has to expand its operations in different countries. In order to take entry
in the new market that is Italy, the company has to perform the market research with the help
of the PESTLE Analysis tool (Jarach, 2017).
Figure 1: Pestle Analysis
4

Element Identified Factors in Florence, Italy Business Impact
Political Unstable Political Environment
Corruption
Lack of strong policies related to trade
Instability of the business and
increasing cost of business (Vellas,
2016).
Economic High GDP
Developed Infrastructure
The youth employment rate is 21.5%
and the economic inference
It can lead to corruptions and other
communal immoralities (Ryan, 2016).
Social Italy has over 200 million of individual
that is higher than the Malta country.
The population of Italy is adequate in
terms of influencing the shareholders
(Baker &Saren, 2016).
There are wider market opportunities.
Technology Italians are more techno-savvy.
Although laptop as well as, computers
are quiet remain premium products for
some individuals yet, the application of
Smartphones has filled the gap
(Cavusgil, et. al., 2014).
It can have a positive impact on the
business in terms of ordering the foods
through online channels.
Legal The income tax in Italy is 43% while
VAT is 22%.
It can adversely impact on the business
(Skarmeas, Zeriti, & Baltas, 2016).
Environment Restricted policies related to animal
protection, quality hazardous, as well
as, environmental safety.
It impacts on the commercial,
residential, as well as, industrial sectors
individually (Butković, Bošković, &
Katavić, 2014).
Figure 2: Porter five force model
5

Factors Description
The threat of new entrants (High) The new key market participants in the food
sector create innovation in products as well
as, the ways for performing the practices
(Corazza, et. al., 2014).
Bargaining power of the suppliers
(Moderate)
The bargaining power of suppliers in the
food sector uses conveying power to decline
higher rates from Dominos company
(Papadopoulos, & Heslop, 2014).
Bargaining power of the buyers (high) It is addressed that purchasers are generally
demanding high. They are also interested in
terms of purchasing the best choice by
paying the minimum rates of prospects
(Rowley, 2016).
The threat of substitute products (High) The profitability related to Dominos
company can suffer in the Italian market as
new products with services are kept on
attaining similar needs of consumers in
diverse manners (Jean, et. al., 2016).
Rivalry among the prevailing competitors
(High)
The key market participants between
prevailing players of the food industry of
Italy are insightful. This could drive for
diminishing the overall profitability for the
1.3 Market research
Branding hits the requirement for belonging as well as, associated with Maslow’s hierarchy
of needs. Timing is significant and generally, a product is targeted at the time of Valentine,
Easter, and Xmas. A consumer develops brands, not corporations. It is an essential marketing
element that could not be avoided. Customers provide brand value by creating expectations as
well as, perceptions towards those brands. Dominos improve the added value by providing
consistent brand experiences which, a consumer can develop faith (Bowie, Buttle, Brookes,
& Mariussen, 2016).
`
6