MPK732 Marketing Management Case Study: Domino's Pizza Analysis

This case study analyzes Domino's Pizza's performance in the Australian market, focusing on its declining revenue and strategic challenges. The analysis utilizes the 5Cs and SWOT frameworks to assess the company's strengths, weaknesses, opportunities, and threats. It delves into the company's segmentation, targeting, and positioning strategies, highlighting key problems such as revenue decline, franchise issues, and increasing competition. The study proposes solutions including qualitative research methods, data analysis, and market expansion, offering recommendations for managers to improve performance. The study also considers market trends, competitor analysis, and customer behavior to provide a comprehensive understanding of Domino's Pizza's position and potential for growth in Australia. The paper concludes with a discussion of future research methods and data collection techniques to help Domino's Pizza make informed decisions.

Running head: MARKETING
Dominos
Marketing
4/28/2019

MARKETING 1
Executive Summary
The intent of this paper is to present the situation analysis of Domino's Pizza for the
Australian market and analysing its strength, weakness, opportunities, and threats. The paper
has highlighted the segmentation, targeting and positioning strategy for the company for a
new product that the company is planning in Australia. From the analysis of the case, it has
been identified that the company is experiencing a decline in its revenue in the Australian
market and therefore, planning to open new stores in the market. The result of the revenue
decline is the reducing interest of the franchise, lack of motivation among staff, and the
adoption of unreasonable strategies for cost-cutting. In order to expand the business in the
future, the paper has recommended the managers of the company to adapt qualitative research
method and secondary as well as primary data analysis methods for data collection.

MARKETING 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of the Case.............................................................................................................3
5Cs Analysis...........................................................................................................................4
Company............................................................................................................................4
Customer............................................................................................................................4
Climate...............................................................................................................................4
Collaborators......................................................................................................................6
Competitors........................................................................................................................6
SWOT Analysis.....................................................................................................................6
Strength..............................................................................................................................6
Weaknesses........................................................................................................................7
Opportunities......................................................................................................................7
Threats................................................................................................................................8
Segmentation, targeting and positioning strategies................................................................8
Segmentation......................................................................................................................8
Targeting strategy...............................................................................................................9
Positioning Strategy...........................................................................................................9
Key problems.......................................................................................................................10
Possible Solution..................................................................................................................11
Recommendations for Managers..........................................................................................11
Research Problem.............................................................................................................11
Research Method..............................................................................................................11
Data collection method....................................................................................................12
Research objective...........................................................................................................12
Data analysis....................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14
Appendix..................................................................................................................................16
Survey through Questionnaire..............................................................................................16

MARKETING 3

MARKETING 4
Introduction
Marketing is one of the most key aspects of the business. It is the key procedure of
investigating, endorsing and selling goods or services to the target market. The business's
bottom line is profit. Profit is majorly the outcome of the consequence of positive sales.
Marketing is the key procedure of the business where it attracts and convinces the target
market regarding the product about its values to them. The intent of this paper is to evaluate
the case of Dominos and evaluate its different marketing and other strategies. Besides this,
the motive of the paper is to highlight the issues experienced by the company and the possible
solutions for the company to have continuous success. The paper is also highlighting future
research procedures that could be adopted by the management of Dominos to have future
success.
Overview of the Case
Domino’s Pizza is planning to open more stores with an average of around one every day in
order to maintain the momentum of the growth in the business. In order to expand the
business and add more stores into the portfolio, the company is planning to cut its stores in
Australia, Japan, Europe, and New Zealand market. So far, the company has introduced 90
stores this year which reflects that it yet have to open 110 more stores. The total revenue of
the company earned increased by 24% to around $702 million from the overall sales growth
of 14%, the opening of the new store and the alliance of franchisee contributions to the
advertising fund. On the other side, the earnings of the company declined 6.8% in the
Australian market, 25% in the European market but, the earnings grew 34% in the Japan
market, according to the analysis conducted by the company (Hatch, 2019).

MARKETING 5
5Cs Analysis
Company
Domino’s is one of the strongest global brands with 15300 stores worldwide with the
multiyear track in terms of a number of stores, profitability, retail stores, and order counts
(Reuters, 2019).
Across the United States market, Domino’s has 18% of the pizza market. Besides this, it has
25% of the stake in the hamburgers and chicken trade market.
Customer
The major focus of the Domino’s is on clients that are value sensitive and not price sensitive.
It primarily concentrates on the customers of the age group of 18-44 years. Though, business
is majorly focusing on the teenagers especially college students. The company also focus on
the middle and upper incomes families are wanted to spend on eat outs (Bhasin, 2018).
Domino's also targeting the working people because it can offer the delivery of the pizza at
their job location.
Climate
Political Factors – The government of Australia always try to support businesses that are
visiting the country for business expansion like Dominos. As the Australian government
maintains good relations with the United Kingdom and USA government, it offers different
types of subsidies and offers to the businesses expanding from these nations (Fern Fort
University, 2019). However, the government of Australia is presently controlling the fast
food market due to a health concern.
Economic Factors – The Australian market is dealing with the increasing gas, fuel, and
energy cost, which is resulting in increasing the cost of the business. The Australian food

MARKETING 6
export value has drastically decreased because of alterations in the import demand from the
international nations and drought (Fern Fort University, 2019).
Social Factors – Australia is incorporated with diverse lifestyle and cultures with around 22
million of population, which raises warnings for the Domino's to make use of social ethical
norms while operating the business. Besides this, the population of Australia is become
health conscious, due to which they are avoiding fast food. This has a huge impact on the
business of the company.
Technological Factors – The strong business performance of Australia in the recent period is
because of the innovation and research and development in different areas, which is resulting
in increasing the productivity, developing new markets and boosting international
competitiveness. Besides this, the company has developed the technology of communication
and IT, which support different business in quick development (Fern Fort University, 2019).
Besides this, the trend of online ordering is a boom in the country, which gives a plus point to
Dominos.
Environmental Factors – The government of Australia frame business-friendly regulatory
environment as well as a favorable time zone, due to which company is able to survive in the
market. The government has announced its clean energy future plan in order to support the
nation in meeting the economic as well as environmental challenges of competing in the
world of low-population (Fern Fort University, 2019). In order to survive in the market,
Dominos has to update its strategies according to the regulations framed by the Australian
government.
Legal Factors – In order to successfully operate in the Australian market, the company must
have a license.

MARKETING 7
Collaborators
The key collaborator of Domino's that have supported it in coming in everyone eyes is
franchisees underpaying staff (Phx. Corporate, 2019).
The collaborators of the company that is franchisees are dealing with increasing pressure to
offer quality pizza, at a cheaper cost, and less delivery time to the customers.
Competitors
The industry of pizza is stuffed by international as well as local companies like Toppers,
Pizza Hut, Papa Jones, Greco, etc., who are eating up the market share of each other. With
the help of the on-time delivery and online discount offers, Dominos is capable to possess a
high share in the market in many countries (Bhasin, 2018).
One of the key competitors of Domino's is Pizza Hut, which owns around 270 stores in the
Australian market with around 20-25% of the entire Pizza market of Australia (Brook, 2018).
SWOT Analysis
Strength
Technological advancement – Domino’s now offers the opportunity to the customer to place
their orders through Google assistant (Fern Fort University, 2018). Dominos can be taken as
the technology business which is involved in serving food, which the help of different
innovative technological services like Pizza Tracker and Dominos Insta Gift.
Range of Food options – Dominos has added a number of food options for its customers in
line according to the lifestyle choices and food trends. In January 2019, the company
introduced its new variety of Vegan Pizza.
Meeting different needs – Dominos is also catering to the needs of the customers with
intolerances or allergies.

MARKETING 8
Investor Confidence – Dominos has successfully built the confidence of the investor and has
committed to having a total of 25,000 stores by 2025 with around $25 billion of sales
globally.
Weaknesses
Product Inconsistency – Dominos is presently dealing with a number of controversies in the
market which is being highlighted by social media. It has been identified that Dominos have
issues like the inconsistency of its products from the flat crust, lack of toppings to missing
order items.
Aggressive marketing campaigns – Dominos make use of different aggressive marketing
campaigns in order to take entry in the new markets. The company introduces its products as
the low price Pizza in the market which makes very tough for the franchisees to survive for a
longer duration. These marketing campaigns can mostly be designed to drive competitors out
from the region, but while entering the market and keeping low prices of the product can
leave the bad taste in the mind as well as the mouth of the customers.
Opportunities
Market expansion – Expanding the operations of the business in the emerging markets will
be beneficial for the Pizza Company because developed markets are becoming mature or
reaching their saturation point. Targeting emerging nations can be the future strategy for the
company (Bhasin, 2019).
Health conscious eatables – Offering a health-conscious menu among the customers with
new flavor seasonings with low-fat ingredients will lead to increasing the revenue of the
company in the future.

MARKETING 9
Threats
Changing eating habits of the customers – In the Australian market, customers are
searching for more organic and healthy food options and friendly options, which are taking
them away from the 3 meals a day to snacking throughout.
Imitation of product at low cost – The products of Dominos is being imitated at low cost,
and Pizza Hut is taking all the benefits in the market.
Increasing competition due to online food ordering platforms – Food ordering platforms
like Deliveroo, Uber Eats, and Just Eat for the home delivery are letting the smaller players in
the market to compete with Dominos.
Segmentation, targeting and positioning strategies
From the above 5Cs and SWOT analyses, this has been found that Dominos earnings are
declined with 6.8% in the market of Australia. This is the major issue from which the
company is dealing in the Australian market and to resolve the issues Dominos is planning to
open more physical stores. The opening of new physical stores will help the company to
increase the sales as well as revenue. In the case, this has been found that Dominos has
opened 90 stores this year and further they are willing to open the new stores for offering the
services to their customers. This section includes the strategy that is adopted by the company
related to segmentation, targeting as well as positioning.
Segmentation
Market segmentation is defined as the dividing group based on different characteristics as
well as variables. Below given is segmentation for Dominos physical stores: -
Demographic: - Demographic segmentation includes the group of customers who are
categorised based on age, religion, income, and other. Dominos Company will segment the
people majorly with the age group of 18-44 years who belong to middle as well as high-

MARKETING 10
income group. In this age group, the company majorly targets young people, as they prefer
pizza the most.
Behavioural segmentation: - In this segmentation, the dominos will segment the customer
based on loyalty, benefits and other (Kotler, 2015). Dominos in Australia will welcome the
loyal customers who like to use Dominos products as well as services. The customer are
segmented who understand the value of the products.
Psychographic segmentation: - The customers are segmented on the bases of values,
lifestyles, and other. Many customers have the lifestyle to consume pizza from Dominos then
they make the purchase. In addition, customer belief is essential because this is the reason
due to which the brand is selected by them for any of the reasons in terms of quality.
Targeting strategy
Targeting strategy that is followed by Dominos Company is multi-segment in which the
company targets different segments all together. Thus, the company serves the product and
services to different sort of customers (Wilson and Gilligan, 2012). The customer majorly
targets people with the age group of 18-44 years with most of the people include young
people between middle and high income group. However, in the case, it shows that the
company needs to cut its target from the different segments for the new stores opening in
between the range of 225 and 200 to between 200 and 215 in Australia, Japan, New Zealand,
as well as Europe.
Positioning Strategy
Positioning of the company refers to the image of brand in the mind of the customers for the
products as well as services while comparing it with competitors (Rothaermel, 2015).

MARKETING 11
Source [https://slideplayer.com/slide/11458054/]
The map shows that Dominos falls in the quadrant of high value with high price; this means
that the company offer the moderated prices for their products with the high quality value.
The company will effectively position there flagged stores moderate in terms of price as well
as quality.
Key problems
The major problem of Dominos in the market is its decreasing revenue in the Australian
market to 6.8%.
The other problem that exists is that the business is unable to meet the expectations of the
customers; they expect something else and receive something else. The Facebook page of the
Dominos is full of negative comments majorly related to the placed order by the customer
which taste different in comparison to what was actually advertised.
Lack of franchise interest due to distracted by the personal issues, which results in lack of
competition concern (Franchising, 2019)