Detailed Marketing Report: Strategies and Analysis of Domino's Pizza

Verified

Added on  2022/11/14

|12
|3701
|274
Report
AI Summary
This report provides a comprehensive analysis of Domino's Pizza's marketing strategies. It begins with an introduction to Domino's and its global presence, followed by a detailed examination of the 7Ps of its marketing mix: product, price, place, promotion, people, process, and physical evidence. The report explores how Domino's delivers value to its customers, including its loyalty program and customer profiling, segmenting its target audience geographically, demographically, and behaviorally. It delves into Domino's customer engagement through social media, highlighting its digital investments and online ordering strategies. The report also discusses the marketing strategies employed by Domino's, such as digital investment and sponsorship. Finally, it offers recommendations for improving Domino's marketing strategy, including increased promotion through advertising and enhanced website presence. The report also includes an overview of the front and backstage components of Domino's service marketing system and discusses the management of customer satisfaction and values.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running Head: DOMINO’S 0
Marketing
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
DOMINO’S 1
Contents
Introduction...........................................................................................................................................3
7Ps of Domino’s.....................................................................................................................................3
How domino’s deliver value to its customers........................................................................................5
Loyalty program of Domino’s................................................................................................................5
Customer profiling.................................................................................................................................5
Domino’s customer engagement through social media........................................................................6
Marketing strategies used by Domino’s................................................................................................7
Recommendations for the marketing strategy of Domino’s..................................................................7
Front and backstage components of service marketing system............................................................8
Management of customer satisfaction and values................................................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11
Document Page
DOMINO’S 2
Introduction
Domino’s Pizza is the restaurant chain of America. It was founded in the year 1960. It
has headquartered in Michigan, USA. It provides its services in around 82 countries. It is the
second biggest pizza chain across the world (Green, Gino & Staats, 2017). It put emphasis on
the local markets with the help of larger chain of the franchise owners. It is true that most of
the customers tend to spend time by convincing radio listeners, television viewers, and social
media followers for the quality of products. However, Domino’s pizza has achieved the
success by adopting the “opposite strategy.” In the first section of the report, discussion is
carried on the marketing mix of Domino’s. Afterwards, the discussion continues on the
loyalty program and customer profiling of Domino’s. It is also able to effectively engage its
customer though social media. It is also effectively described in the report. The discussion
ends by explaining the marketing strategy and recommendations are provided for
improvement in marketing strategy.
7Ps of Domino’s
Product: It is the essential element of the leading global outlet of pizza. Domino’s product
line mainly put emphasis on the different kind of pizza that is customized as per the local
market. By offering unique services, it is the biggest chain in Australia. It also has different
size of bases. In addition to this, customers can also customize the product according to their
requirement. The major products of Domino’s are chicken crusts, Pizza, pastas, flavoured
breads, desserts, burger pizzas, and chicken items as well as the choice of toppings. In the
2018 statistics, it is found that Australian people mostly prefers to eat healthy in order to
reduce the fat. Domino’s is continuously able to drive the exceptional customer experience by
putting emphasis on the innovation. Prices
Domino’s has the competitive prices for its pizzas. It charges different prices according to the
size of pizzas and other ingredients. In Domino’s, non-vegetarian pizzas are having the
higher prices as compare to the vegetarian pizzas (Kraak, Englund, Misyak & Serrano, 2017).
In Australia, Domino’s charges higher prices on Sundays in order to increase the pay rates of
its workers. It mostly increases around 10% on all the Sunday orders in order to help its
employees.
Document Page
DOMINO’S 3
Place
Domino’s operates on the basis of franchise model where 97% of the Domino’s is franchise
owned. Recently, it has around 13000 Domino’s stores all over the world. Internationally, it
has more than 7300 of the stores of Domino’s. Over the past few years, Domino’s Pizza is
regularly expanding its presence in Australia by having 693 of the total fast food outlets
(Horská, Paluchová, Šimončič & Berčík, 2017). The franchisee of the US pizza brand of
Domino’s is the biggest pizza chain in Australia. It is serving the Australian market after it
has opened the first store in 1983 (White, 2018).
Promotion
Domino’s spend heavily on its promotional activities. It ensures the effective promotion
through the mobile apps, websites, and personalised SMS. It uses these promotional activities
in order to gain more attention from the customers. It also takes the help of TV commercial in
order to help customers in gaining knowledge regarding the products and its services. In
addition to this, customers also stated that the Domino’s tracker has made their life easier.
With the help of Domino’s track, customers can come to know when their pizza is going into
the oven and leaving the oven. In addition to this, the door to door service of Domino’s is
going amazing and reaching to the heights.
People: Domino’s has trained and skilled staffs that help it in bring continuous innovation for
ensuring the better customer service. Besides this, the employees of Domino’s undergo
through the training session as per the guidelines. Employees of Domino’s are also
encouraged for providing the ideas regarding any kind of improvement through development
tools and classroom training. It also supports the employees through reward under several
schemes. It also has the feedback system that is linked to the performance system. It also
makes the employees accountable for their behaviour and actions in the workplace.
Process
Domino’s restaurant has two methods of service that customers can order from the restaurant
as well as can order online. Both the processes of Domino’s are the backbone of its services.
It has guaranteed to the customers that it will deliver the food in thirty minutes, therefore, by
keeping this in mind, it always try to deliver the food first. In addition to this, it also does the
delivery based on the token system that tends to determine the queue number. It also has the
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
DOMINO’S 4
proper cleaning staff that ensures the cleanliness of the restaurant (Stariņeca & Voronchuk,
2015).
Physical Evidence
The largest physical evidence of Domino’s is the attractive outlets for family (Heidarzadeh
Hanzaee, & Esmaeilpour, 2017).The customers of Domino’s receive the order in the covering
that highlights the logo of Domino’s. Although the size of packaging differs as pee the order.
The entire staff of the Domino’s also presents in the T-shirt of Domino’s. Payment in the
restaurant made through cash or card. However, in the online order, payment is made through
the card, cash or online payment.
How domino’s deliver value to its customers
Domino’s is effectively committed in doing better by listening to its customer
complaint regarding the taste of Pizza. In order to prove this commitment, it has also
launched the ad campaign. The employees of the Domino’s are also allowed to read the
criticism on the part of customers (Wakabi, 2016). It helps the employees in improving their
processes to make the better pizza and provide the value to customers. Besides this,
Domino’s pizza also effectively recognizes the value of transparency.
Loyalty program of Domino’s
Domino’s has launched the loyalty program during the 3Q15. With the help of this
loyalty program, customers are able to get the free medium size pizza by gaining the 60
points. Customers can also earn the ten points by ensuring the order of worth $10. This
enables the customers to earn the free pizza by taking six orders of worth $10. It is also
proved to be beneficial for the Domino’s in increasing its sales.
Customer profiling
Type of segmentation Criteria of segmentation Target segment
Geographic Region
Age
Density
gender
Domestic as well as
international
8 to 45
Urban and rural
Females as well as males
Document Page
DOMINO’S 5
Demographic Life style stage
Income
Occupation
Bachelor stage: single people
who are not living at home,
young people, young, newly
married people (Chopra &
Batra, 2017).
Middle as well as low
Employees, students as well
as professionals
Behavioural Personality
Social class
User status
Benefit sought
Careless and easy going
people
Working, middle and lower
class
Regular or potential fast food
eaters
Time efficiency and cost
benefits
Domino’s has majorly target the younger generation people as they are mostly
attracted towards the pizza, pastas, and beverages. Due to this, it is the most preferred
channel for the people in Australia. It has mainly target the people from 16 to 50 years age
due to its crust in which the pizza is prepared. It has positioned its product in the mind of
customer by satisfying the needs and demands of customers (Köse & Sert, 2015).In addition
to this, it also enhances the experience of customers using several social media channels.
Therefore, by using the innovative ways to increase the customer loyalty and boost sales, it
has positioned itself in the mind of customers.
Domino’s customer engagement through social media
It is true that social media is the strength for Domino’s. In May 2015, it has launched the
most successful and effective marketing campaign through social media for ordering pizza.
Twitter was selected as the essential lorry in making the order through social media platform.
In Domino’s, customers are having the option to make an order using several methods such
as mobile application, Twitter, Samsung smart TV and smart watch. Domino’s has also added
the one more piece in its social media strategy by launching its own Snapchat channel. In
Australia, Domino’s pizza has built the positive reputation, as around 60 % of the sales were
Document Page
DOMINO’S 6
started conducted online. It also tend to monitor its social media platform 24/7. It also
believes in encouraging more and more feedback on part of customers (Henry, 2019). It has
also stated that Facebook was the major responsible for the various key decisions regarding
the product. It believes that social media has changed the way to interact with the customers.
In April, it has also increased its presence on social media to include the round the clock
monitoring across various platforms (Hartley, 2015).
In addition to this, it is also found that Domino’s listen to its customer as well as reward
them. In a report, it is found that Domino’s is committed to do something better after
listening to the complaints of customers. In order to prove this statement, it has also launched
the legendary ad campaign. This ad also showed the negative tweets and emails regarding
Domino’s. It has engaged the customer by inviting them to follow the Domino’s “Pizza
Turnaround.” By knowing the criticism of customers, it had always better try to understand
the needs of its customers. This helps in changing the attitude of customers for its brand
(Canhoto, vom Lehn, Kerrigan, Yalkin, Braun & Steinmetz, 2015).
Marketing strategies used by Domino’s
Digital investment is the significant strategy that keep Domino’s ahead from its
competitors. It is the core strategy in the business success. Due to this, Domino’s invest
heavily in the improvement of its services, install GPS in its stores as well as created the
online tracker that help the customers in mapping the route of customer. In addition to this,
sponsorship is in the cornerstone of the marketing strategy of Domino’s. After the huge
success in its brand image, Domino’s is ready to get the long term growth with the main
objective to become the largest company. In recent time, Domino’s is seeking various
benefits of being the quick adopter of the digital transformation. In addition to this, it is also
seen that the strategy of digital investment and above the line advertising is helping Domino’s
to stay ahead from the pizza delivery market. Therefore, the delivery experience is the core to
success of business.
Recommendations for the marketing strategy of Domino’s
It is true that Domino’s has expanded its wings effectively in the market using effective
marketing strategy. It should increase its promotion through advertisement. Due to less
emphasis on advertisement through television, many people from the rural areas are not
aware about the current or changing products. Besides this, it should also increase its
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
DOMINO’S 7
existence in its own website. It will more increase the awareness of its brand in the mind of
customers. It can also start the more campaigns related to its services. This will help it in
approaching customer’s easily and in better manner.
Front and backstage components of service marketing system
Interior and
Exterior Facilities
Equipment’s
Service
People/Staff of
Domino’s
Technical Core
Other
Customers
Other
Customers
The
Customers
Backstage
Components
Front Stage
Components
Document Page
DOMINO’S 8
The service marketing system of Domino’s represents a type of relationships a service
business has with its customers. Some part of this system is visible to the customer, some
parts are hidden, and some customers may not even know of their existence (Nawaz et al,
2018). These part of the system states about “front stage” and “backstage” determine the
notion that service is a performance.
In Domino’s service marketing system, front stage refers to those components of
service operations and delivery, where customer can see its visibility or presence. On the
other hand, backstage components include those aspects of service operations that are hidden
from customers however; they are also an important part of delivering service (Wright &
Clibborn, 2017).
The backstage components referred to as technical core that provides physical support
with the operations including contact personnel. These components are also necessary same
as front stage components as if the backstage personnel and systems (including ordering,
billing, account keeping, Pizza baking) fail to perform their support tasks effectively in ways
that impact the quality of front stage operations and it will also come in notice of customers.
In Domino’s, some examples of technology failure can be machine fault, showing of wrong
order ID in online pizza ordering and so on (Rae, 2015).
Front stage components in Domino’s service marketing system are having direct
interaction with the customers. Even customers are also a part of this structure and system.
Some of these components include equipment, internal and external facilities, and Domino’s
staff handling customers’ queries. This line components aid in the final delivery of the
service to the customers and hence create value in various terms. These front stage
components are processed in an ordered and systematic way to help Domino’s to deliver their
products and services effectively. For example, delivering service to the customer
considering front stage components includes when staff is manually receiving an order from
the customers and putting the same into system.
Therefore, it can be said that both Front and backstage components of service marketing
system are equally important in management of customer satisfaction and value.
Document Page
DOMINO’S 9
Management of customer satisfaction and values
In order to promote the better management, Domino’s has invested its time as well as
money in the GPS driver tracker technology. This technology provides the easy access to the
customers related to real time tracking of the delivery driver. Using such technology, mobile
customer are notified on their mobile screen when driver is about to reach at the delivery
address. The third pillar of the Domino’s customer satisfaction is recognition (Sinha & Sheth,
2018). In the recent time, Domino’s is known for providing around 15 several ways to order
pizza. In spite of the high competition in the market, Domino’s is able to operate effectively
by satisfying its customers.
Conclusion
In the limelight of above discussion, it can be concluded that Domino’s is one of the
growing fast food chain across the world. It is effectively serving to the customers by
including variety of products as well as customizes option for the customers. It also charges
different prices according to their product. IN addition to this, it also charges extra price on
Sunday in order to pay hike to employees. It is the best thing adopted by Domino’s. Besides
this, it also effectively using the social media and other promotion sites in order to aware the
customers regarding its product. It also has trained and skilled staff members that effectively
carrying out activities and serving its customers. It has several outlets in different part of the
world that proved to be successful for Domino’s. In addition to these, the loyalty program of
Domino’s is also growing well and paving the path for more growth and customer base.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
DOMINO’S 10
References
Canhoto, A. I., vom Lehn, D., Kerrigan, F., Yalkin, C., Braun, M., & Steinmetz, N. (2015).
Fall and redemption: Monitoring and engaging in social media conversations during a
crisis. Cogent Business & Management, 2(1), 1084978.
Chopra, A. N., & Batra, S. (2017). Digital Marketing Initiatives Owing To Technological
Improvements. ITIHAS-The Journal of Indian Management, 7(4).
Green, P., Gino, F., & Staats, B. R. (2017). Seeking to Belong: How the Words of Internal
and External Beneficiaries Influence Performance. United Kingdom: Routledge.
Hartley, S. (2015). Domino's dominate with digital design. Busidate, 23(3), 2.
Heidarzadeh Hanzaee, K., & Esmaeilpour, F. (2017). Effect of restaurant reward programs on
customers’ loyalty: evidence from Iran. Journal of Islamic Marketing, 8(1), 140-155.
Henry, C. (2019). Leadership and strategy in the news. Strategy & Leadership, 47(2), 51-55.
Horská, E., Paluchová, J., Šimončič, P., & Berčík, J. (2017). Consumer food related
applications: food retail sector and services. In Augmented reality for food marketers
and consumers (pp. 1-19). Wageningen Academic Publishers.
Köse, U., & Sert, S. (2015). Social media environments and their role on success of
marketing processes. Bilgi Ekonomisi ve Yönetimi Dergisi, 10(2).
Kraak, V. I., Englund, T., Misyak, S., & Serrano, E. L. (2017). A novel marketing mix and
choice architecture framework to nudge restaurant customers toward healthy food
environments to reduce obesity in the United States. Obesity reviews, 18(8), 852-868.
Nawaz, H., Ali, T., Al-laith, A., Ahmad, I., Tharanidharan, S., & Nazar, S. K. A. (2018,
October). Sentimental Analysis of Social Media to Find Out Customer Opinion.
In International Conference on Intelligent Technologies and Applications (pp. 110-
115). Springer, Singapore.
Document Page
DOMINO’S 11
Rae, P. (2015). Invest offshore while staying at home: Australian companies with offshore
earnings. Equity, 29(6), 8.
Sinha, M., & Sheth, J. (2018). Growing the pie in emerging markets: Marketing strategies for
increasing the ratio of non-users to users. Journal of Business Research, 86, 217-224.
Stariņeca, O., & Voronchuk, I. (2015, April). Competence-based selection of project team
members–general approach. In Proc. Fourth International Scientific Conference on
Project Management in the Baltic Countries. Project Management Development–
Practice and Perspectives, Riga (pp. 363-374).
Thaichon, P., & Quach, T. N. (2016). Online marketing communications and childhood's
intention to consume unhealthy food. Australasian Marketing Journal (AMJ), 24(1),
79-86.
Wakabi, B. M. (2016). Leadership style and staff retention in organisations. International
Journal of Science and Research, 5(1), 412-416.
White, J. C. (2018). Structured for Success: What Leaders Need to Know to Build and
Sustain Effective Organizations. CRC Press.
Wright, C. F., & Clibborn, S. (2017). Back Door, Side Door, or Front Door: An Emerging
De-Factor Low-Skilled Immigration Policy in Australia. Comp. Lab. L. & Pol'y J., 39,
165.
chevron_up_icon
1 out of 12
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]