Marketing Plan: Domino's Segmentation, Strategies, and 4Ps Analysis

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This report presents a comprehensive marketing plan for Domino's, a leading food company. It begins with an introduction to marketing plans and the importance of market segmentation. The main body delves into identifying different market segments, focusing on demographic segmentation and its requirements, like measurability and accessibility. The report then analyzes the segment profile of Domino's, detailing its target audience based on age, gender, and income. It outlines the objectives for each segment, including geographic, demographic, behavioral, and psychographic segmentation. The report also examines competitor activities, value propositions, positioning, and points of difference for Domino's. Finally, it explores the marketing mix, including product, price, place, and promotional activities, tailored to the chosen demographic segments. The report concludes with a summary of findings and references.
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Marketing Plan
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Identifying different segments....................................................................................................1
Segments requirements...............................................................................................................2
Segment Profile...........................................................................................................................3
Segments that company should target.........................................................................................3
Objectives for each segments......................................................................................................4
Competitor activities in chosen segments...................................................................................4
Value proposition/ positioning/ point of difference....................................................................5
Marketing mix.............................................................................................................................5
Control and research mechanism of Domino's ...........................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing plan is that report which describe the marketing strategy for the a firm for its
future and it contain a list of action which helps a business to introduce a new product in a
market, but for that it is necessary for a business to segment which a firm should target. In the
same way, report main aim is to describe segmenting for a market. The chosen firm for this
report is Domino's which is one of the largest food company who offer different products for
their customers at reasonable rates. Therefore, the report will describe different segments which
the company chooses and then show the requirements of each segments with their profiles.
Further, the report will describe segments that company should target with objectives. Report
will further describe the 4P's of marketing such as product, place, price and promotional
activities. Then it describe the control mechanism which a firm may also adopt in order to ensure
the right direction for Domino's.
MAIN BODY
Identifying different segments
Market segmentation is the the activity in which the broad consumer are divide on the
basis of shared characteristics. Thus, segmentation mainly aim is to identify high yield segments
which likely to be most profitable and selected for a special attention as well. There are different
types of segments which are as mentioned below:
Geographic Segmentation: This segmentation is divides the market on the basis of
geography. Even it is also consider the first step in international marketing in which the
marketers are decide whether they have to adapt their existing products for a unique needs of the
geographic markets or not Hirzer and et.al., (2019). Apart from this, this type of market
segmentation is quite important for the marketers because people are belonging to different
regions and they have different requirements as well. In this the company also divide the market
by city, country, state and region.
Demographic Segmentation: This type of segmentation, divide the market on the basis
of demographic variables such as age, gender, martial status, family size, income, occupation etc.
It has been also assumed that consumer with similar demographic profiles also display same
purchasing power, motivation and lifestyles for the brand.
Behavioural segmentation: It is another type of segment in which segment is based
upon the audience's behaviour, usage and their preference or decision making. Further, this type
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of segment is mainly divided and based upon their knowledge of a product. It is so because it is
analysed that knowledge of the product generally affect the buying decision of a person. Even
the audience are also segment into, those people who know the product and who do not know the
product, its potential users, current users Liu and et.al., (2019).
Psycho-graphic Segmentation: This segment divide the audience on the basis of their
personality, lifestyle and attitude. Even this segmentation process is also define that consumer
buying behaviour also influenced by customer's personality and lifestyle. Therefore, it is the
combination that forms an individual's character and their traits or attitude. It is further analysed
that the personality and lifestyle should influence by the purchasing judgement and the use of a
person to a great extent.
Segments requirements
There are so many ways that can be used to segment a market but not all the
segmentation are effective, that is why, Domino's chooses demographic segmentation and the
requirements is as mentioned below:
Measurable: in this, a firm should know how the products sales are growing in the
demographic segmentation, for that reason, there is a need to measure the growth rate and fro
Domino's its Pizza is the core product and one of the highly profitable product as well. That is
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Illustration 1: Segments requirements
(Source: Segments requirements, 2018)
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why as per its financial report, it can easy for a firm to measure the growth rate Ahani and et.al.,
(2019).
Accessible: it means that the segment should be reachable and it can be possible through
effective market strategy such that social media, advertising etc. Even, Domino's can also use
middle-men to distribute the products.
Substantial: The chosen market should be large and profitable such that Domino's can
introduce new product specially for children whose age is in between 15-18 in order to increases
its sales. This directly affect the overall business in positive way.
Differentiable: It means that segmentation should distinguishable and respond different
to each market such that by using demographic segmentation, Domino's uses different segment
and target people on the basis of age, gender, income etc.
Actionable: in this segmentation, an effective program should be designed in order to
attract the segments Lee & Jan, (2019). For example, Domino's uses modern promotional tool
that helps to attract different age group people towards its.
Segment Profile
The segmentation profile basically includes the information related to lifestyle patterns,
attitude towards a particular products and brand Domino's chooses demographic segmentation in
which it is the personal characteristics which is used to categorize consumer. Further it also
includes the characteristics such as age, gender, income level and the quoted firm target the
people of age 16 to 64 and it also chooses the people on the basis of income level i.e. middle
class and upper status people (Market segmentation profile, 2018). Even, the firm is also offer
different discount strategy that helps to attract wide range of customers towards it. This
competitive pricing strategy also helps Domino's to position itself up and stay ahead in the
competitive market as well.
Segments that company should target
After selecting the segmentation, it is quite necessary to target the people on the basis of
segmentation and Domino's chooses demographic segmentation in which it target the customer
on the basis of age, gender, income level, marital status and social class. It has been analysed that
the targeting a market is quite necessary to defined the audience. This is as mentioned below:
Age: 18 to 64
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Gender: Male and female
Income level: Upper and middle level people
Social status: all kind of people including children as well.
Objectives for each segments
Objectives of Geographic Segmentation: The main objective of Geographic
segmentation is to make the customer oriented approach for a firm. Customers are also
segmented in the basis of geographic location in which different city and country's people are
targeted. Such that Domino's is one of the global operating company and it also target people at
different place.
Objectives of Demographic Segmentation: The main objective of this is to identify the
taste and buying motive of the target customers such that it uses this segmentation in which it
helps to improve the distribution network. It helps to gain new clients as well Cross, Belich &
Rudelius, (2015).
Objectives of Behavioural Segmentation: It main objective is to determine the
characteristics that helps to improve the condition of a firm and also affect the buying pattern of
the customers as well.
Objectives of Psycho- graphic Segmentation: It directly analyse the personality and
lifestyle of a customers and also define different marketing strategies or target, goals of a firm
which are used by the firm to raise its brand image in market.
Competitor activities in chosen segments
As Domino's chooses Demographic segmentation in order to sustain its brand image and
target new customers for their firm. Currently the company offer different products to their
customers such as different types of Pizza, offer special Chicken with best quality as compared
to its rival firms. Further, it also uses competitive pricing strategy such that it changes its price
after analysing the competitors' s strategy Ernst & Dolnicar, (2018). Even to target its customers,
it also uses modern form of promotional tool that helps to attract new customers towards it. On
the other side, it also faces tough competition from its rival firm such that Pizza Hut, Famous
Pizza, Gabriel Pizza etc. Therefore, it clearly shows that Domino's faces strong competition from
others and in the same way it also develop strategy to attract wide range of customers towards it.
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Value proposition/ positioning/ point of difference
Value Proposition: It means that an innovation, service and the feature that intended to
make a firm's product attractive for their customers. In the same way, Domino's uses patented
Pizza bags which no other company uses in order to make the product hot for long duration.
Further, it also start offering its product online without any delivery charges that also attract
wide range if customers towards it. This helps a business to stay ahead in competition.
Positioning: Its positioning is to reach customers who values quick service pizza using
information software. Such that it guaranteed to deliver the products in 30 minutes and also
achieve almost 90% on time delivery in its online marketing.
Point of Difference: It is the way in which the products of Domino's are different from
its rivals and it is so because of its fast delivery, online marketing and always offer new and
innovate pizza recipe that makes a firm differ from other companies Hirzer and et.al., (2019).
Currently it also offer electric and self driving delivery vehicles that helps top deliver the
products fast to their customers. These features makes it unique from its rivals.
Marketing mix
The marketing mix is the combination of in the place, at the time or with right price. It is
the foundation model for the business and as well as the Domino's. The marketing mix refers the
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Illustration 2: Perceptual Map
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sets of tools which are related to the marketing activities of firm. With the help of marketing
mix, manager of domino's is able to sets the actions or strategies for promote their brand and
product at market place Marketing mix activities, (2017). It includes the some elements which
are help to make the effective strategies as per the market analysis like product, price, place and
promotional activities. Here is select the demographic segment for the company which is best
and effective for growth and increase profit margin of business are as follows:
Product
Domino's is the biggest pizza and fast food outlet. It make the various kinds of pizza for
peoples with customized or respect to the local market. This respects to peoples and their need or
wants. They are capture to market first and make localize flavours for the peoples. The
demographic segmentation is effective and best for the domino's because it can help to segment
the age, gender, sex, families, education and income prospects of peoples Abril & Rodriguez-
Cánovas, (2016). By this can increase their profit margin and build effective goodwill or
reputation at marketplace. As per the segment the products such as veg and non-veg pizza. Its
menu can be included by the pizza, pasta, side dishes and various range of dips as per the
segment. The soft beverages and other drinks are tied up with the coca-cola. But for the segment
manager of domino's added new flavours pizza with fewer chills because in the age group are
considers each age peoples. It is effective to attract customers towards the company with high
range as per segment market.
Price
The domino's has got the very competitive pricing for the pizza and various products. The
company has face the two major competitors those are likely equal or even with this brand which
keep the competitive price. Prices is the values that puts for product and services or its result is
complex sets of calculation Fan, Lau & Zhao, (2015). Manager are sets their prices as per the
size of pizza and range of product. Each and every product is consider different ways and with
different taste and the prices are sets by it. Here is discussed above the pricing strategy which is
help to manager for sets prices of product as the requirement of the segment market which
includes the penetration pricing, price skimming and competitive prices. Penetration pricing
strategy is sets a law prices for enter in new market and raising it later. Price skimming is sets a
high prices and lower in market evolves and the competitive pricing strategy is say the prices as
per competition. For the segment market manager of Domino's include competitive and
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penetration pricing strategy for their product with is help to compete with their competitors and
attract high level of customers. Other hand , company can charges customized charges as per that
customized product.
Place
Placement and distribution is the very important part of the product mix. The distribute
the their product and services to potential buyers. There are various place where domino's is
operates their business. Currently company has the 13000 stores globally, in which around 4800
in the UK. As per the internationally more then 7300 stores of that and outside the UK it has
1100 stores Festa and et.al., (2016). It has the largest network of outlets across the world. It has
t6he various channels by which is sold out their products and services which be geographic and
in this select the demographic segment. It also considers the environment in the product is sold
can be affect sales. In that distribution take the effective and valuable place at market. There are
various distribution strategy such as intensive, exclusive, selective and franchising but company
use the franchising distribution strategy for their safe side. As per the segment market, manager
can serves their product and services at college, school sides malls and shops or also to near
public park/garden etc.
Promotion
Promotion of product and services are highly important because it can boost the brand
recognition and sales. This compared the various elements such as the sales organization, public
relations, advertising and sales promotion. With the help of promotion channel and activities
customers are aware and update about the new and existing product and services activities. For
their promotion manager is use the advertising by social media apps like websites, mobile apps
and TV channels. Domino's is also promote itself by the TV and claim to delivers in 30 minutes
is also effective and best promotional activity Liu, Li, Chen & Balachander, (2017). They offers
various discount for promote their product and services at marketplace. The branding refers
various kind of promoting their business and its services. For promote their product and services
in effective manner it can build the strong public relations. Public relations is the best and
effective way of promoting product at marketplace. In this they can includes exhibitions,
sponsorship deal and event. Now days, peoples are more update on the social media, so company
can update their product and services new activities on that which is help to get information
about current strategy Wu & Li, (2018).
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Those are the marketing mix which consider the product, place, price and promotional
activities. Those are help to make the effective and valuable strategy for the company's as per the
segment business. The pricing strategy help to sets the product price as per the market analysis
and promotional activities are help to attract customers towards the product by updating new
policies and activities to customers.
Control and research mechanism of Domino's
Control and research are important mechanism for correcting business performance for
ensure that the event plan.
Control
Management of Domino's is include control for measuring to performance against goals
and plans of company. The control process that are establishing standard, measurements and
taking correct actions for the solving problem and issues and increase sales of product and
services.
Establishing standard is step that is use by the manager of Domino's for their effective
control process. That refers the basic appraisal of actual performance. It control by the control on
their quantity of product. It is very important and valuable part of the company's control process.
The analysis the performance is important for knowing about the product and performance at
marketplace. For that manager is use the effective marketing strategy which looks forwards on
deviation.
After this activity management take the decision for product growth and sales as well. By
this they are take right place and correct decision, and it is important for developing their sales
and profits at marketplace Pavlou & Stewart, (2015). For that they take decision as per the
evaluation of performance and standard which are established. Performance analysis is help to
make control on resources and also help to improve product performance at marketplace. By this
company is able to increase their sales of product and profit as well in effective manner and also
able satisfy their segment customer.
Research
Their approach is to social media has helped to domino's. The research is help to make
the effective and valuable marketing strategy like data captured by the channels – pebble,
android into the domino's information management framework. As per the market research
company observe many of thinks which are effective for the making new strategies for the
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company in effective manner. With the help of research, company is able to increase investment
for protect their brand image at market place at the time other brand is attack to customers group,
activities and event regulations Stead & Hastings, (2018). It is the neutral customers brand. Their
searching with the social, media has helped to many loyal fans of company. For the research
company can adopt the feedback and customers reviews for market analysis and customers
satisfaction. Customers are share their views with company and against of this company make
changes for further growth.
CONCLUSION
From the above study it had been concluded that the marketing plan has help to develop
new strategy at market by identifying the different market segments. For the report has selected
by the demographic segment for increasing the profit of company and its growth. It has
developed by the objectives which has help to achieve goals of market. In this also highlighted
the competitor activities for compete with their competitors. Positioning of company has
effective and valuable for the company which has important for highly growth and goodwill.
Report has covered by the marketing mix which includes product, place, price and promotional
activities. Those were effective and valuable for the company to make effective and valuable
strategy for compete with their competitor. The control and research has the effective techniques
for make control on the resource and use in effective manner or correct. With the help of
research company can make the effective and valuable strategy as per market needs and wants.
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REFERENCES
Books and Journals
Abril, C., & Rodriguez-Cánovas, B. (2016). Marketing mix effects on private labels brand
equity.European journal of management and business economics. 25(3). 168-175.
Ahani, A. and et.al., (2019). Market segmentation and travel choice prediction in Spa hotels
through TripAdvisor’s online reviews. International Journal of Hospitality
Management. 80. 52-77.
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Ernst, D., & Dolnicar, S. (2018). How to avoid random market segmentation solutions. Journal
of Travel Research, 57(1), 69-82.
Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research. 2(1). 28-32.
Festa, G. and et.al., (2016). The (r) evolution of wine marketing mix: From the 4Ps to the 4Es.
Journal of Business Research. 69(5). 1550-1555.
Hirzer, M. and et.al., (2019). U.S. Patent Application No. 15/699,221.
Lee, T. H., & Jan, F. H. (2019). Market segmentation based on the environmentally responsible
behaviors of community‐based tourists: Evidence from Taiwan's community‐based
destinations. International Journal of Tourism Research.
Liu, J. and et.al., (2019). Market segmentation: A multiple criteria approach combining
preference analysis and segmentation decision. Omega. 83. 1-13.
Liu, Y., Li, K. J., Chen, H., & Balachander, S. (2017). The effects of products’ aesthetic design
on demand and marketing-mix effectiveness: The role of segment prototypicality and
brand consistency. Journal of Marketing. 81(1). 83-102.
Pavlou, P. A., & Stewart, D. W. (2015). Interactive advertising: A new conceptual framework
towards integrating elements of the marketing mix. In New Meanings for Marketing in a
New Millennium (pp. 218-222). Springer, Cham.
Stead, M., & Hastings, G. (2018). Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social
commerce: A stimulus-organism-response perspective. Internet Research. 28(1). 74-
104.
ONILNE
Marketing mix activities. 2017. [Online]. Available through: <https://marketingmix.co.uk/>
Market segmentation profile. 2018. [Online]. Available through:
<https://smallbusiness.chron.com/examples-market-segmentation-profile-11936.html>.
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