Marketing Management Report: Analyzing Domino's Pizza Strategies

This report provides a comprehensive marketing analysis of Domino's Pizza, examining both internal and external environmental factors. It utilizes SWOT and PESTLE analyses to identify key challenges and opportunities. A value chain analysis evaluates the effectiveness of Domino's operations. The report explores corporate and business-level strategies, target market identification, and competitive positioning. It delves into the consumer decision-making process, marketing mix, and distribution strategies. The report concludes by acknowledging the impact of health concerns on the fast-food industry and offers recommendations for improving competitiveness. It covers various aspects of Domino's business, from inbound and outbound logistics to marketing, sales, and service management, providing a detailed overview of their strategic approach.

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Marketing management
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Executive summary
The aim of this report is to discuss about the internal and external business environmental factors
being faced by Dominos. SWOT and PESTLE analysis is being done to identify these factors. In
addition, the value chain analysis is also being done to ensure the effectiveness of the entire
value creation process of them. It is identified that Dominos is following different strategies in
terms of corporate level and business level. The target market segments for Dominos are also
being identified. The consumer decision making process of Dominos is discussed along with
their marketing mix strategies. It is concluded in this report that the growing awareness about the
bad impact of junk food is affecting their business. Based on the few limitations identified in his
report, a few recommended steps are discussed. These steps can help them in gaining
competitiveness in the long term.

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Table of Contents
Introduction......................................................................................................................................3
Company profile..........................................................................................................................3
Mission and objectives................................................................................................................4
Value chain analysis........................................................................................................................4
Determination of the external environments...................................................................................7
Determination of the internal business factors..............................................................................10
Corporate level strategies..............................................................................................................12
Business level planning.............................................................................................................12
Identification of the target markets................................................................................................13
Competitive positioning of Dominos.............................................................................................15
Identification of the competitive forces.........................................................................................15
Developing market growth strategy...............................................................................................17
Consumer decision making process...............................................................................................17
Product consolidation....................................................................................................................18
Price competition and pricing strategies........................................................................................19
Integrated communication mix strategies......................................................................................19
Distribution strategy......................................................................................................................20
Service management......................................................................................................................20
Differentiation strategies...............................................................................................................21
Marketing audit and control...........................................................................................................21
Recommendations..........................................................................................................................21
Conclusion.....................................................................................................................................22
Reference.......................................................................................................................................23

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Introduction
Marketing planning plays an important role in gaining competitive advantages for the
contemporary business organizations. This is due to the fact that the current business state of
affairs are much competitive for the business entities and it is the effectiveness of the marketing
plan, which will help in staying ahead in the competition. However, it should be noted that there
are number of factors that are important to consider in initiating marketing planning process
(Paley 2017). With time, these factors are getting more diverse and varied, which is further
getting difficult for the business entities to initiate the marketing planning process. Moreover,
these considerable factors are specific to different organizations according to the respective
business situations.
In the current business scenario, retail sector is one of most competitive sectors with the
presence of number of global and domestic players operating. Among the retail sector, global
food retailing sector is one of most prominent that consists of major fast food chains operating
across the world. The trend of global franchise based food chains is growing popular and entry of
new entrants is getting witnessed off late. This is creating the importance for the food chains to
initiate newer marketing plan and strategies to fend off the competition and gaining the
maximum revenue from them (Monteiro et al. 2013). In initiating the marketing plan,
determination of the internal and external factors is important to align the planning approach
with that of the business situations. On the other hand, target segmentation forms another
primary factor for the marketing plan based on which the marketing plan is focused.
This report will discuss about the marketing approach of Domino’s pizza along with
discussing their mission, objectives and value creation. In addition, this report will also discuss
about the value chain process of them and determining the internal and external environmental
factors. Based on the target market and positioning identified, the consumer decision making
process, pricing and distribution strategies will be discussed. Lastly, a few recommended steps
will also be discussed.
Company profile
Domino’s pizza is one of the leading fast food chains in the world based in the United
States. They are founded in 1960 and currently are considered as the largest pizza seller in the

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world in terms of sales volume. It is also reported that Domino’s pizza is currently having more
than 16000 stores across the world and huge penetration majorly in the emerging economies
(Deivanai 2013). Product portfolio of Domino’s pizza includes pizza, chicken wings, desserts
and sandwiches. Thus, diverse customer segments are getting catered by them. The major
competitors for Domino’s pizza are Pizza Hut, KFC and Papa John’s. Hence, it can be concluded
that Domino’s pizza is operating in intensely competitive market sector.
Mission and objectives
The mission of Domino’s pizza states the offering of high standards of pizza delivering
service with the highest standard of quality to the customers and offering the best pizza in the
world. Thus, from the mission statement of Domino’s pizza, it can be noted that they are
leveraging of providing the best pizza in terms of quality and service delivery process. The
vision statement of Domino’s pizza states about the objective leading the online pizza delivery
service in every neighborhood across the world. Thus, they are focusing on their competencies of
online pizza delivery service aim of reaching to every corner in the world. This is also denoting
their approach towards maintaining the market leadership status (Rajasekar 2013). Value
creation process of Domino’s pizza includes lower time of delivery, better taste and
conveniences. Domino’s pizza strives to reduce the waiting time for their customers in the entire
delivery process of pizza. In addition, the taste and quality of the materials are given the major
concentration, which further helps Domino’s pizza to offer distinctive and unique value for their
customers. Lastly, the online delivery services of Dominos are also creating value for their
customers due to the reason that it aims of delivering the pizza in minimal time at the customer
doorsteps.
Value chain analysis
Value chain analysis of Dominos is important to identify the entire value creation process
along with identifying the limitations and competencies. According to the Porter value chain
analysis, there are primary and secondary activities that helps in seamless flow of the entire value
creation process. The following section will discuss about these activities from the perspective of
Dominos.
Primary activities

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Inbound logistics Inbound logistics refer to the process of sourcing raw materials from the
suppliers to the production process. This process includes the warehouse
and handling of the products. In the case of Dominos, it is identified that
majority of the inbound logistic process is being outsourced to the third
party vendors (Ahi and Searcy 2013). This is helping Dominos in
reducing the liabilities and responsibilities from the process along with
the cost effectiveness. However, it is also identified that due to the
outsourced process of inbound logistics, the control in quality
management of the raw materials is less for Dominos.
Operations Operations refer to the process of converting the raw materials in finished
goods applicable for the end customers. In the case of Dominos, the
operational process is designed on the basis of the customer data
regarding their trends and preferences. For instance, different varieties of
pizza are offered by Dominos from the same raw materials but the
varieties are introduced as per the customer trends (Mudambi and Puck
2016). Moreover, customer data is also being used in designing the
service delivery process. This is also evident in the change of their
delivery process in the recent time. Thus, it can be concluded that market
adaptable process is followed by Dominos in terms of their offerings.
Outbound logistics Outbound process refers to the process of delivering the finished products
to the end customers. This process is initiated in-house by Dominos
involving the home delivery as well as pickup facilities from their stores.
The huge number of stores of Dominos present across the globe is
helping them to have more touch points with the customers (Hiremath,
Sahu and Tiwari 2013). Delivering in minimal time and minimal waiting
period for the customers is proving the effectiveness of the outbound
logistic process of Dominos. Moreover, the standardized production
process of Dominos is helping in following the same outbound logistic
facilities in all their operations.
Marketing and sales In terms of marketing and sales, Dominos is following extensive

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approach involving different mediums. Both the online and offline
mediums are involved by them in marketing their products. Offering
online and offline options for the customers in buying their pizza is also
included in the marketing and sales process of Dominos (Arnett and
Wittmann 2014). Customer involvement is another major approach for
them due to the reason that the marketing process of Dominos is designed
on the basis of the feedback of the customers. This is enabling them in
meeting the demand and expectations of the customers effectively.
Services Dominos is offering food products and this after sales services are not
relevant. However, the dedicated customer care services have initiated by
them that are there to solve the customer queries and grievances
regarding quality and service. Moreover, the customers are periodically
contacted with different offers and discounts, which helps in maintaining
the relationship with the customers and identifying their preference
pattern.
Secondary activities
Firm infrastructure Dominos is having centralized and hierarchical approach of
organizational structure. This is due to the reason that each of their
country specific operations is acting as the subsidiary. Each of these
subsidiaries is acting independently and initiating business strategies
according to the country specific issues (Liu et al. 2013). However, it is
also identified that finance and legal issues are being managed in
centralized manner and in the corporate level. It can be concluded that
dividing the different region wide business operations in various
subsidiaries is helping Dominos in having market adaptable approach in
their global operation.
Human resource
management
Extensive approach of human resource management is being followed by
Dominos in their global operation. Diversity management is given the
major concentration due to the reason that Dominos is having diverse sets
of workforces with employees from different social and cultural groups
(Jackson, Schuler and Jiang 2014). The key principles of the human

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resource management are initiated in the corporate level and elements
such as recruitment, selection and training activities are initiated at the
business level. This is ensuring that the human resource management
approach of Dominos is adaptable to different business situations.
Technology Dominos is one of the leading fast food chains in the world in terms of
initiating newer technologies. The minimal time involved in delivering
the pizza is mainly due to their advanced technologies. This involves
gathering of the feedback from the customers, data analytics and food
processing technology. However, Dominos is also one of the leading
brands, which is investing huge in developing newer technologies. This
might have impact in the cost of operation in the long term if the
expected sustainability cannot be gained.
Procurement Dominos is maintaining extensive approach of procurement from number
of suppliers. This is helping them to have the bargaining power with the
suppliers. Moreover, the suppliers have to align to the quality standards
set by Dominos, which ensures that certain standards are maintained in
the end products. Majority of the raw materials are sourced from the
external suppliers (Knutsson and Thomasson 2014). In this case also,
market adaptable approach is followed in procurement from the
suppliers. Different country operations are having different sets of
suppliers based on the local taste and food preferences.
Determination of the external environments
Determination of the external business factors is important in doing the marketing plan
for Dominos due to the reason that effectiveness of the marketing plan is depended on the change
in the external business situations. The following section will discuss the external factors for
Dominos on the basis of PESTLE factors.
Political factors  Dominos is facing diverse and varied sets of political factors in
their global operations due to the reason that different countries
are having different political situations.

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 Dominos is not having the requirement of trading between the
countries and thus they are not facing the challenges in the
international transactions between the countries.
 However, the major challenge for them is the interference of the
government in the business affairs. For example, the communist
government of China is accused for interfering in organizational
affairs of different brands (van Tatenhove, Arts and Leroy 2013).
 Political conservativeness regarding the foreign investment in the
food sector is also posing challenges for Dominos. There are
number of countries where the foreign investment in the food
sector is limited or restricted.
 Political instability in different regions is also creating turbulence
in the business operation of Dominos. For instance, Dominos is
having their operations in the Middle Eastern region and political
issues in this region such as diplomatic issues and terrorism is
posing challenges in terms of the business viability (Minkenberg
2015).
Economical factors  Dominos is catering to the middle class customer segments and
thus the economic opportunity is more for them. This is due to the
reason that mass market customers constitute the largest segment
in the word.
 On an average, the global economic condition is enhancing,
which is posing further economic opportunities for Dominos in
their global operations (Haufler 2013).
 However, issues such as the economic recession are having major
impact on the business viability of Dominos. This is due to the
reason that Dominos is not offering necessity products and thus
the economic recession will reduce the preferences of the
customers.
 The trade war between the countries can also have negative
implications on the business operation of Dominos due to the fact

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that different countries are imposing tax in the foreign businesses
and it will affect the foreign business operations of Dominos
(Holland 2018).
Social factors  Dominos is the beneficiary of cultural imperialism due to the
reason that they are leveraging on the global trend accepting pizza
as over indigenous food habits. Thus, the current social trends are
favorable for Dominos.
 The products of Dominos are standardized across the world and
their food items are having global acceptances. Thus, Dominos is
having lower intensity of difficulties in pushing the sales of their
items.
 However, Dominos is also facing negative social trends for
damaging the indigenous food culture along with accusation for
inferior service quality (Grey and Patel 2015).
 The global fast food industry is accused for unhealthy food habit
of the people and emergence of obesity. They are also facing fat
tax in different countries.
Technological
factors
 As discussed earlier, Dominos is the leading player in the fast
food industry in terms of development of new technologies. Thus,
they are having competitive advantages in this case.
 With the help of the newer technologies, the entire fast food
industry is gaining efficiency in their production as well as
service delivery process (Ito, Fukuoka and Hamada-Sato2014).
 However, it should also be noted that development of new
technologies involves higher cost for the firms. This may increase
the cost of operation for Dominos.
 Dominos is having their operations in different countries but not
all the countries are having same level of technological
infrastructure. Thus, they will face the issues and challenges in
meeting the same level of efficiencies across their global
operations.

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Legal factors  There are number of legal factors being faced by Dominos in
terms of their business. For instance, they are facing fat tax in
different countries for promoting junk food.
 Moreover, the global fast food industry is liable to align with the
legal standards of food quality and health (Smed et al. 2016).
 Legal issues for the fast food industry also cover the employee
factors and their management.
Environmental
factors
 Environmental issues are also important for the global fast food
industry due to the reason that it will determine their
sustainability.
 Currently, this industry is initiating different tactics such of
recyclable items and reduction in wastages.
 Different countries are having different environmental
legislations, which should be followed by Dominos.
Determination of the internal business factors
Apart from the external business factors, it is also important to determine the internal
factors for Dominos. This is due to the reason that determination of the internal factors will help
to measure the internal competencies of Dominos in dealing with changing business situations.
SWOT analysis will be used in identifying the internal factors for Dominos.
Strengths  Dominos is enjoying the market leadership status in the global fast food
sector. Thus, their brand value and identity is one of the major
competencies for them (Guevremont and Grohmann 2014).
 Presence in good number of countries is beneficial for Dominos in terms
of catering to larger customer segments.
 Access to huge financial resources is also helping Dominos to invest in
service improvement in the long term. This is also the major reason for
Dominos in being the frontrunner in technological development.
 Dominos is targeting the mass market customers by means of their
affordable food items (Metin and Kizgin 2015). This is also enabling