MPK732: Domino's Pizza Case Study Analysis - Marketing Strategies

This case study analyzes the marketing management strategies of Domino's Pizza, focusing on the Australian market and addressing the company's challenges of slowing growth. The report begins with an executive summary outlining the application of marketing theories to the case, followe...Read More

Marketing Management
Dominos Pizza
4 / 1 8 / 2 0 1 9

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Executive summary
The term marketing management is the process of developing strategies as well as for the
planning for the product or services, promotion, advertisement and sale directly to the customer
segment. The theories related to the market management are applied for analysing the case study
and provide appropriate solutions to issue faced by the Dominos Company. The findings of the
report show that marketing tools, which are used to analyse the situation of the case study, is 5Cs
and SWOT analyses. Further, based on the 5Cs and SWOT analyses, the targeting strategies
have been decided by Dominos in order to deal with the problem of slow growth in the market.
In the end, the recommendation to the manager is provided for the research method in order to
understand the behaviour of the consumers.

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Contents
Introduction......................................................................................................................................4
Background of the case................................................................................................................4
5Cs analysis.....................................................................................................................................5
Company......................................................................................................................................5
Customers....................................................................................................................................6
Competitors..................................................................................................................................6
Climate.........................................................................................................................................7
Collaborators................................................................................................................................8
SWOT analysis................................................................................................................................9
Strengths......................................................................................................................................9
Weaknesses..................................................................................................................................9
Opportunities.............................................................................................................................10
Threats.......................................................................................................................................11
Segmentation, targeting and positioning strategies.......................................................................11
Segmentation.............................................................................................................................11
Targeting strategy......................................................................................................................12
Positioning strategy...................................................................................................................13
Recommendations for Research....................................................................................................14
Research methods......................................................................................................................14

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Data collection method..............................................................................................................14
Research problem/objectives.....................................................................................................14
Data analysis..............................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
Appendix........................................................................................................................................20
Survey........................................................................................................................................20

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Introduction
The aim of the report is to evaluate the case study that is provided and the existing information
that is available in the market related to Dominos Company. The problems are designed in the
report for which there is need to apply the theory to achieve the solutions. The concept or
theories related to marketing management are applied. Initially, 5Cs and SWOT analyses about
the Australia market for Domino has been conducted which is supported with the case study
details and secondary sources. In addition, the report include the strategies like segmentation,
targeting and positioning strategies for the market of Australia for new product or service that is
introduced by the company which is based on the analysis of 5Cs and SWOT analysis. In the end
of the report, the marketing research methods has been recommended to the senior management
in order to understand the behaviour of the consumer for the targeted market segment for the new
product or any service. The detailed research proposal for one of these marketing research
methods has been done with the support of research proposal.
Background of the case
The company is the largest pizza chain in the market of Australia in terms of the network store
numbers. It has been found that the first Domino’s store to open in the market of Australia was in
Springwood, Queensland in the year 1983 (Domino's, 2019). Currently, the company is
registering the issue with the sales due to different reasons like shift in customer preference,
change in demand and many others. The case study that has been provided says, “Domino’s
pizza in store opening blitz after growth slows”. The company is willing to maintain the growth
in sales by opening the new stores that clearly shows that the company is dealing with the issue
of slow growth. This has been found that the earnings of Dominos were down by 6.8% in the

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Australia market and this has been witnessed in Europe also by 25% and but there is rise in Japan
by 34% (Hatch, 2019).
5Cs analysis
5C analysis is one of the well-known techniques that are used in order to conduct the situational
analysis. In this section, the 5C analysis has been done in order to determine the situation of
Dominos in the market of Australia (Baker, 2014).
(Source: Baker, 2014)
Company
The company is leading Australian company in terms of pizza. It is an Australian-owned master
franchise holder majorly for Australia, New Zealand, France, Japan, Germany, Belgium and
many others.

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Goals: - The passion of the company is to connect the people with fresher, faster quality of food.
For achieving goals of company, it becomes a leader in the food-technology space by adopting
updated technology.
Technology: - The industry in which the company is performing the business is the first in drone
delivery, app ordering system, voice assistance, as well as AI with the augmented reality. The
use of the effective and updated technology helps the company to improve the customer
experience across Australia.
Customers
Customers are valuable for the company as they are the one due to which the company is
performing the business operations. The motive of the company is to accomplish the needs of the
customers as well as to lead the customer experience (Chernev, 2018).
Dominos company focuses on the digital technology as this technology is a key driver of the
virtually all the customer experiences because most of the customer make orders through online
mode. This has been found from the research that dominos has delivered exceptional services to
their customers. In the online business, the company is able to attain the growth through online
sales by the year 2016, with 33% rise is register in Australia/New Zealand market. In addition,
the online growth has been registered by 44% increase in Netherlands, 69% in France, 125% in
Belgium and 31% in Japan (McLean, 2016). This means that initially, the company was able to
register the growth in technology mode due to effective customer the experience. However, this
has been found that later the growth in store is slow. In addition, the growth of the company
declined after the year 2016 until the year 2019 due to which the company is opening new stores
in order to attain the growth.

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Competitors
Domino’s Australia has grown its position in the market and the company is the fourth largest
player in the market of Australia with approx. $3.5 billion pizza industry to the largest.
(Source: Seeking Alpha, 2016)
According to the research conducted by the Roy Morgan, the company in the list of the top 10
fast food company and it is competition in Australia is with Pizza Hut, McDonald’s, Subway,
and many others. This has been found that in Australia McDonald’s is able to acquire more
market share with 29.5% due to which it is able to give tough competition. In addition, the
dominos company is able to give tough competition to Pizza hut, as it is able to acquire 9.2%
rather than 4.7% that is maintained by Pizza hut.

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Climate
Climate in the framework of 5C analysis shows the way through which the business is able to
manage its operations in this business environment. PEST analysis has been conducted in order
to analyse the business environment (David, 2011).
 Political factors: - This factor includes the evaluating the changes in rules and
regulations present in Australia. The government of Australia support the business as
well as trading which leads to opportunity for the pizza hut company. In addition to this,
the Australian government is stable due to which company has the opportunity to expand
the business without any changes in the rules as well as regulations.
 Economic factors: - The economic factors that affect the working of the company
include GDP, purchasing power and many other factors. The GDP in Australia was worth
of 1323.42 billion US dollars in the year 2017 (Trading economics, 2018). It is estimated
that the GDP will increase until the year 2020-22. This also provides the opportunity as
the company will be able to attract more customers with high purchasing power.
 Social factors: - The major social factors include the change in needs and demand of
customers in the market. This has been found that most of the customers are becoming
health conscious due to which they would like to prefer healthy product due to which
sales of dominos company is affected (Clarke, Friese and Washburn, 2016).
 Technological factors: - The up-gradation of technology can affect the operations of the
company. The focus of Dominos Company is on digital technology, as the effective use
of technology will help in generating the high level of customer’s experience.

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Collaborators
The collaborators in the 5C framework are the entities that permit the company to offer particular
product and services. Dominos Company have different collaboration in the market of Australia
and there are some companies that deals worldwide due to which collaboration with them offers
the company to avail the products and service everywhere across the world. The company has
the collaboration with the game changing tech innovations such as Amazon Echo and Apple
Watch. Presently this has been found in the research that Dominos is partners with Telstra
Domino’s app that is available on the app store (Domino's, 2019).
SWOT analysis
SWOT analysis is one of the major strategic planning methods that are used by the managers of
the company in order to evaluate the strengths, weaknesses, opportunities, and threats of the
business.
Strengths
 Strong presence: - Dominos strength is that it has strong presence in the market of
Australia that helps the company to accomplish their gaols. In the case study, this has
been witnesses that there are 90 stores so far this year that means that they have strong
presence (David, 2019).
 Quality: - The quality of the pizza that is offered by dominos always remains good in
terms of the quality that is possible because of the effective use of technology while
cooking pizza. In the case study, this has been found that technology scans as they cook
pizza in order to ensure the consistent quality that is the helps the company to attain the

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competition advantage (Wilson and Gilligan, 2012). The customers of dominos like to
visit the place due to the quality that is offered by the company.
 Effective use of technology: - Dominos make use of advance technology for
manufacturing as well as for delivering the products. In the case study, this has been
found that technology has developed due to which the company is able to phone app
delivery tracker.
Weaknesses
 Share fall: - The weakness of the company is that it is not able to manage the shares
effectively. This has been found that shares of dominos fell as much as 8% in the early
trading and it closed down 3% at $44.50. This is one of the weaknesses of the company
as company is looking to expand their business operations.
 Health conscious people: - Some of the people that fast food is not appropriate because
of increase in awareness among the people. People are becoming health conscious due to
which the sales of the company is declining. In the case study, this has been found that
the sales of dominos are down by 6.8% in the Australia.
Opportunities
 Increase in market share: - The dominos company has opportunity of increasing the
market share in Australian market by opening the new store in the market. This will help
them to increase the market share and giving competition to the other companies.
 Introduction of healthy additives: - This has been found in research that the company
has the opportunity of introducing the new healthy additives that can help them to attain
the large market share. In addition to this, this will help the company to meet the needs of
the customers present in the market. This is clear in the case study that meet the needs of

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customers can be done by Joey’s Pizza and Hallo Pizza chains acquisition. This leads to
rise in the business market of Pizza (Hatch, 2019).
 Adopting new technology: - The up-gradation of the new technology is offering an
opportunity to the company so that they can adopt the technology in order to meet the
needs of the customers and to provide them maximum satisfaction. Thus, this opportunity
can be utilized by the company to enhance the sales in their stores.
Threats
 Changing habits of customers: - This has been found that in the market of Australia the
habits of the customers are changing as they are shifting towards the healthy products
more due to which the purchase of the pizza is declining in the market.
 Intense competition: - In the Australian market, the company is dealing with the issue of
intense competition due to which the working of dominos is getting affected. The local
companies of the Australian market are also increasing their services that are giving
tough competition to Dominos.
Segmentation, targeting and positioning strategies
In the case study, this has been found that Dominos Company is dealing with the issue related to
the growth in the Australian market. The growth of the company is dealing due to which the
company decided to open the stores in Australian market. The opening of new stores in
Australian market is solution through which the company can register the high growth
(Armstrong, Adam, Denize and Kotler, 2014). Thus, this new strategy is adopted by the
company for which the strategy of segmentation, targeting and positioning is done.

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Segmentation
The market segmentation is division of group of customers based on different characteristics and
variables (Lovelock and Patterson, 2015). The segmentation of the Dominos has been done on
different basis, which is given below -
 Demographic segmentation: - The demographic segmentation is done based on age,
race, religion, income, and many others. Dominos Company will segments different
customers with different age group with middle and high-income group irrespective of
any religion within their stores. The age group that will be majorly segmented is 10-25
years, 25-45 years and more. In religion, there are different consumers who eat Halal
meat but some does not. Thus, the company will offer both vegetarian as well as halal
meal. Moreover, the people who consume products generally include bachelors, working
class, youth, and many others.
 Behavioural segmentation: - In behavioural segmentation, the customers will be divided
based on customer pattern, loyalty, benefits and many others (Grant, 2016). Dominos
Australia will segment the customers who are loyal towards them and this is the reason
due to which they like to consume the products. It also includes the people who avail the
benefits of products and service offered by company.
 Psychographics segmentation: - This segmentation includes dividing the customers
based on beliefs, values, lifestyle, and many others (Kotler, 2015). Dominos Company
will segment the market according to the lifestyle that includes people who consume the
pizza and other products that are offered by Dominos. In addition to this, the company
will segment those customer who belief that the products provided by company are good
in quality and offers them maximum value due to which they like to consume it.

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Targeting strategy
In order to enhance the growth as well as sales of the company it is essential for the Dominos
Company to make effective targeting strategy (Hollensen, 2015). Targeting strategy is prepared
by the company in order to serve their products and service to the customers in the Australian
market. In the case study, this has been found that the company needs to cut its target for the new
stores opening from between 225 and 200 to between 200 and 215 in Australia, New Zealand,
Europe, and Japan (Hatch, 2019). Considering this, the company will make use of the multi-
segment strategy in which different customer segments are targeted by the company. Dominos
targets people with the age group of 10-25 years generally, which include most of the working
class people with middle and high-income group people. In addition, people who consider the
consumption of fast food as their lifestyle will be targeted (Wheelen, Hunger, Hoffman, and
Bamford, 2017).
Positioning strategy
The positioning is refers to as the brand image in the mind of the customers according to the
products and services which is offered by the company comparing it with the competitors.

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(Source: Rothaermel, 2015)
The positioning of the company can be understood with the map given above which shows, that
the company falls in the quadrant which shows high price with the high value (Rothaermel,
2015). The company keeps the moderate or high price when they are offering high quality of
products in the market. The company will position itself in-store with moderate prices and high
quality, as this will help them to attract new customers to their stores.
Recommendations for Research
It is recommended to the senior management of Dominos Company to make use of different
research methods that can be used by them in order to understand the customer behaviour of the
targeted market segment for the new products. The primary research should be conducted by the
manager in order to collect the details that will help in understanding the consumer behaviour for
the new stores in Australia.

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Research methods
Research methods refer to as the tools that one makes use of to conduct the research. These
methods can be qualitative and quantitative or mixed. The method, which is selected, for the
research is qualitative data that is non-numerical, due to which it focuses on the non-numerical
data that has been collected (Bernard, 2017).
Data collection method
The data collection is done in order to collect the data related to the research issue. The
researcher gathers the data with the help of survey through questionnaire from the customers.
This survey will help the researcher in getting the accurate solution for the issue faced by
company due to change in behaviour of the customers. (Refer Appendix 1)
Research problem/objectives
The research objective will be to understand the customer behaviour of the customers for the
new product that is their new store. This has been found that there is shift in the customer-
purchasing pattern, as they are more likely towards the purchase of healthy as well as the organic
products that support them to remain fit. The rise in the customer shift patterns will make the
company to conduct the research for collecting the data.
Data analysis
Once the data is polled by the researcher then they need to analyse the data. In this research, the
manager will make use of the survey for collecting the data. Thus, the data analysis of the survey
is done with the help of the content analysis (Sekaran and Bougie, 2016). The researcher will
make use of the summative content analysis method to get the authentic information.

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Conclusion
In the end, it can be concluded that Dominos Company deals with the use of decline in the sales
of the company. The report shows the analysis based on the case study that has been provided
which shows that Dominos is opening new store when the company saw decline in the sales. The
tools, which are used to analyse the Australian market condition, include 5C analysis, SWOT
analysis, STP concepts based on new product, and many others. It has been found in the 5C
analysis that company is dealing with different issues such as change in preference of customers,
demand of products and many others, which contribute, in declining the sales of products. In the
end of the report, the recommendation has been provided to the managers in order to understand
the behaviour of the customers related to the new in-stores in Australian market.

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References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. 6th edition.
Welbourne: Pearson Australia.
Baker, M. J. (2014) Marketing strategy and management. London: Palgrave Macmillan.
Bernard, H.R. (2017) Research methods in anthropology: Qualitative and quantitative
approaches. Rowman & Littlefield.
Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
Clarke, A.E., Friese, C. and Washburn, R. (2016) Situational analysis in practice: Mapping
research with grounded theory. New York: Routledge.
David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
David, J. (2019) SWOT analysis of Domino’s [Online]. Available from:
https://www.howandwhat.net/swot-analysis-dominos-dominos-swot-analysis/ [Accessed on 17th
April 2019]
Domino's (2019) About us [Online]. Available from: https://www.dominos.com.au/about-us
[Accessed on 17th April 2019]
Domino's (2019) Domino's Franchising [Online]. Available from:
https://www.dominosfranchise.com.au/ [Accessed on 17th April 2019]
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.

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Hatch, P. (2019) Domino's Pizza in store-opening blitz after growth slows [Online]. Available
from: https://www.smh.com.au/business/companies/domino-s-pizza-in-store-opening-blitz-after-
growth-slows-20190219-p50ywh.html [Accessed on 17th April 2019]
Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson Education
Limited.
Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
Lovelock, C. and Patterson, P. (2015) Services marketing. Australia: Pearson.
McLean, A. (2016) Online growth sees Domino's serve up AU$82.4m FY16 profit [Online].
Available from: https://www.zdnet.com/article/online-growth-sees-dominos-serve-up-au82-4m-
fy16-profit/ [Accessed on 17th April 2019]
Rothaermel, F.T. (2015) Strategic management. UK: McGraw-Hill Education.
Seeking Alpha (2016). Domino's Pizza Enterprises - Sell Australia's Most Loved Stock [Online].
Available from: https://seekingalpha.com/article/3831826-dominos-pizza-enterprises-sell-
australias-loved-stock [Accessed on 17th April 2019]
Sekaran, U. and Bougie, R. (2016) Research methods for business: A skill building approach.
John Wiley & Sons.
Trading economics (2018) Australia GDP [Online]. Available from:
https://tradingeconomics.com/australia/gdp [Accessed on 17th April 2019]
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E. (2017) Strategic management
and business policy (p. 55). Boston: pearson.

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Wilson, R.M. and Gilligan, C. (2012) Strategic marketing management. New York: Routledge.

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Appendix
Survey
Q1 How often you visit to Dominos store?
 Once in a week
 Once in a month
 Occasionally
 None of the above
Q2 Which item of dominos do you like to consume the most of dominos?
 Pizza
 Pasta
 Garlic breadsticks
 Chicken wings
Q3. Would you find Dominos products healthy?
Yes
No
Sometimes
Never
Q4. Are you satisfied with the services offered by Dominos?

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Yes
No
Q5. Any time of modifications that you would like to see in Domino’s products?