Project Report: Factors Influencing Domino's Sales Decline, Auckland

This project report examines the decline in sales at the Domino's Kingsland store in Auckland, New Zealand. The research investigates the fast-food industry background, Domino's organizational structure, and the specific research problem of declining sales. The methodology includes a literature review, primary data collection through surveys, and data analysis. Key findings reveal that customer dissatisfaction, lack of innovation, and ineffective communication contribute to the sales decline. The report analyzes the results using charts and tables, providing insights into factors such as health consciousness, service quality, competition, and management perspectives. Recommendations include both short-term and long-term strategies to improve sales and address the identified issues. The report concludes with a summary of the research, identifies areas for further research, and provides a comprehensive list of references.

Running head: PROJECT REPORT
Project Management
Name of the student
Name of the university
Author Note:

2
PROJECT REPORT
Table of Contents
Executive Summary.........................................................................................................................6
1.0 Introduction and Aim.................................................................................................................8
1.1 Industry Background.............................................................................................................8
1.2 Organization’s Background...................................................................................................9
1.3 Research Problems...............................................................................................................10
2.0 Research Methodology............................................................................................................10
2.1 Research Philosophy and justification.....................................................................................11
2.2 Research Design method and justification..........................................................................11
2.3 Research Approach and justification...................................................................................12
2.4 Sampling..............................................................................................................................12
2.5 Data Collection techniques..................................................................................................12
2.6 Data Analysis Techniques...................................................................................................13
2.7 Limitations...........................................................................................................................13
2.8 Assumptions........................................................................................................................14
2.9 Ethical Considerations.........................................................................................................14
3.0 Literature Review....................................................................................................................14
3.1 Fall of Sales in the fast-food sector.....................................................................................14
3.2 Reasons for which customers are not buying......................................................................17

3
PROJECT REPORT
3.4 KANO Model......................................................................................................................21
1. Violante, M. G., & Vezzetti, E..............................................................................................21
KANO Model Analysis.............................................................................................................21
Figure No 1: KANO Model of Customer Satisfaction..............................................................23
KANO Model and Decline in Sales...........................................................................................23
3.5 Effective Communication Management..............................................................................24
3.10 Summary of the Chapter....................................................................................................29
4.0Results.......................................................................................................................................29
4.1 Introduction..........................................................................................................................29
4.2 Primary Data Collection Method One.................................................................................30
Figure No 2: Pie chart showing the percentage of respondents.................................................31
Table No 1: Percentage of Respondents....................................................................................31
Figure No 3: Pie chart showing the age group distribution of respondents...............................32
Table No 2: Age group of Respondents....................................................................................32
Figure No 4: Pie chart showing number of regular customer’s distribution.............................33
Table No 3: Regular customers among the Respondents..........................................................33
4.3 Primary Data Collection Method Two................................................................................34
Figure no 5: Over consciousness of health................................................................................34
Table No 4: Over consciousness of health................................................................................35
Figure no 6: Service Quality as a Major factor for decline in sales..........................................35

4
PROJECT REPORT
Table No 5:Service Quality as a Major factor for decline in sales............................................36
Figure no 7:Competition has led to the fall of sales..................................................................37
Table No 6:Competition has led to the fall of sales...................................................................37
Figure no 8:Lack of innovation as a factor for decline in sales.................................................38
Table No 7:Lack of innovation as a factor for decline in sales.................................................38
Figure no 9:Indifferent perspective of the management of Dominos........................................39
Table No 8:Indifferent perspective of the management of Dominos........................................39
Figure no 10:Absence of Proper and trained employees...........................................................40
Table No 9:Absence of Proper and trained employees.............................................................40
Figure no 11:Absence of effective Organizational Structure....................................................41
Table No 9:Absence of effective Organizational Structure.......................................................41
5.0Analysis and Discussion...........................................................................................................42
5.1 Reasons for the Decline in Sales.........................................................................................42
5.2 Does Low sales of the store lead to a high turnover?..........................................................43
5.3 Reasons behind low profit in business.................................................................................43
5.4 Good Stock Management Strategies....................................................................................43
5.5Reliability and Validity of the Research process..................................................................43
5.6Limitations of the Research Methodology and Results........................................................44
6.0Recommendations.....................................................................................................................44
6.1 Long Term Recommendations............................................................................................44

5
PROJECT REPORT
6.2 Short Term Recommendations............................................................................................46
7.0Conclusions...............................................................................................................................46
7.1 Main Points identified..........................................................................................................46
7.2Further Research Area..........................................................................................................48
8.0 References................................................................................................................................49
9.0Appendixes...............................................................................................................................54
9.1 Appendix A: first appendix.................................................................................................54
Questionnaire.............................................................................................................................54
9.2 Appendix B: second appendix.............................................................................................57
Research survey responses........................................................................................................57

6
PROJECT REPORT
Executive Summary
The research has been based on the identification of the different factors that leads to the
decline of the sales in a business organization. The research has taken the example of the
Kingsland Store of Dominos Pizza as the example. The particular research has completed the
steps to investigate issues, and have discussed the methodologies that have been used to identify
the different kind of reasons behind the issues, as well as have identified the different solutions
and recommendations. Domino’s is the one of the leading franchise pizza chains in New
Zealand. The domino’s store is located on New North road in Kingsland, Auckland. In this store
the total working staff is of 14 members. The owner has been handling the store as a general
manager; under him the store have 4 store managers with 6 crew members and 4 delivery
drivers. The general manager oversees shift allocations, inventory ordering and salary. Store
managers handle the store, count the stock and handle the cash. The crew member’s work is to
make pizzas, take orders and complete other miscellaneous works. Lastly the delivery drivers are
for deliveries of the pizza, cleaning and other miscellaneous work.
The main research problem in the study is the discussion of the problems that has led to
the decline in the sales. The decline of the sales has been the major issue for the organization for
quite a long time and the management of the store is concerned that any further problems can
lead to the closure of the business. The identification of the research problem is necessary in this
particular research. The literature review has been constructed by means of a secondary research.
The secondary research analysis has been based on the research of the related perspectives of the
decline in the sales of the organization. The sales decline of the organization are thus related to
problems of quality, customer satisfaction, wrong selection of markets and potential customers,
absence of managerial expertise and many other similar factors. The secondary research

7
PROJECT REPORT
questions have then been primarily analyzed by means of collecting samples from the
respondents who are the customers of the organization. The respondents have supported the
results of the secondary analysis. The results have been described by means of constructing
charts, bar graphs and pie charts. The statistical analysis to determine the primary results have
been beneficial in this case as because it has helped the results to be scientific and accurate in
nature. The results of the research have proved that customer dissatisfaction, inability to innovate
and absence of change management have led to the huge decline of sales. The study concluded
with a brief summarization of the total work and the discussion for the scope of the future
research on the same topic.

8
PROJECT REPORT
1.0 Introduction and Aim
Domino’s Kingsland is a part of the Auckland fast food industry. The store is operated by
Fountain Trade Ltd. and was opened on 27thJanuary, 2017. The research is based on the decrease
in sales and some other staff management issues. In this particular project the researchhas
proposed the steps to investigate issues, and have discussed the methodologies that have been
used to identify the different kind of reasons behind the issues, as well ashave identified the
different solutions and recommendations.
1.1 Industry Background
The fast food industry is the backbone of the New Zealand economy. Sales in the fast
food industry in New Zealand increased by 3.6% and reached $11 billion in 2018. The fast food
businesses increased by 32.4% nationwide (Hospitality Report, 2018). As New Zealanders have
come to embrace the health and the wellness trend, they have also become more and more aware
of the quality of the food they consume. This leads to a boost in the sales of different kinds of
premium and healthier concepts that are delivered by most of the different food chains of New
Zealand (ibisworld.com.au, 2019). However, the fast-food service in New Zealand has grown
over the past few years especially the last five years in general.
As said earlier, the demand for good and healthy food is the trend that has been there for
the last few years. Demand growth for healthy as well as tasty food has grown over the last few
years more than that of the demand decline for unhealthy fast food. Industry revenue is expected
to rise to $5 billion in the coming years with an annual growth percentage of around 6%. The
experts in the following sector believes that the food sector in New Zealand will provide

9
PROJECT REPORT
employment opportunities to around 35,000 people in the near future which clearly indicates the
popularity of the fast food industry in New Zealand.
1.2 Organization’s Background
Domino’s is the one of the leading franchise pizza chains in New Zealand. The domino’s
store is located on New North road in Kingsland, Auckland. In this store the total working staff
is of 14 members (dominos.co.nz 2019). The owner is handling the store as a general manager;
under him the store have 4 store managers with 6 crew members and 4 delivery drivers. The
general manager oversees shift allocations, inventory ordering and salary. Store managers handle
the store, count the stock and handle the cash. The crew member’s work is to make pizzas, take
orders and complete other miscellaneous works (dominos.co.nz 2019). Lastly the delivery
drivers are for deliveries of the pizza, cleaning and other miscellaneous work.
This store is facing difficulties like low sales and the high labor cost. Our aim is
researching the following problems and identifies their reasons and look forward to identifying
suitable solutions for the same.
The objectives of the study will be as follows;
 To identify the perspectives of low sales in domino’s stores To find out the major reasons behind the high staff turnover To find out the reasons of low profit in the business To analyze some good and effective stock management strategies that will help to
increase sales at a fast food outlet

10
PROJECT REPORT
1.3 Research Problems
The main issues that have been bothering the food outlets especially Domino’s Kingsland
store is the sharp decline of sales and a loss in the revenue. Because of the low sales and high
labour the store is generating negligible profit. So, the research has identified the different
solutions for the same and has researched on the various aspects to determine the results and
eradicate the issues.
2.0 Research Methodology
Research Methodology consists of a number of different kinds of methodological tools
that are generally used by the researchers during the conduction of the research in a proper and
scientific manner(Kumar, 2019). The following chapter defines the different kinds of tools and
the methods that are used by the researcher in order to assess and analyze the results of the
following research. In this chapter, the researcher evaluates the different research methodological
tools such as philosophical stances, research approach, design along with data collection and data
analysis techniques. In this chapter, the researcher also provides suitable justifications of
selecting the particular research tool in accordance with the research topic.
The research has used the descriptive research design along with the different kinds of
other methodological tools like that of the random sampling techniques and the survey method to
collect the data regarding the research as well as analyze them accordingly(Mackey & Gass,
2015). The following research has used both the primary as well as the secondary research
procedures. The justification of the research has also been provided accordingly to ensure the
reliability and validity of the research.

11
PROJECT REPORT
2.1 Research Philosophy and justification
According to, Silverman(2016) positivism, pragmatism and interpritivism are the three
most widely used research philosophies that are generally used in the researches. Each of the
philosophies has their own characteristics. In the case of the current research on the study of the
decline in sales in Domino’s store, the use of positivism philosophy has been selected to ensure
that the research questions can be constructed and answered in the correct manner. The use of the
positivism research philosophy on the other hand can also ensure the use of scientific research
methods. As said by Kumar, (2019) the scientific research methods are helpful for the accurate
results of the research. It has also ensured the use of the statistical approach for the
research(Creswell & Creswell, 2017). The use of the statistical approach has been equally
effective to derive the best results.
2.2 Research Design method and justification
The three most used research designs are namely exploratory, explanatory and descriptive
research methods. The use of these methods is mostly seen in the different kind of researches.
The following research has used the descriptive research design in order to find out the results of
the decline in sales of the Dominos store in Kingsland. The use of the particular design of the
research was useful to develop a deep understanding of the cause and effect of the research
rationale along with predicting the future occurrences of the specific research rationale(Taylor,
Bogdan & DeVault, 2015). Clarification and predicting the future occurrences simultaneously
were not possible by using either exploratory or explanatory research design. The research has
been able to understand the challenges encountered by the Dominos store regarding decline of
sales by using descriptive research design. Thus, based on the suitability of the research topic,

12
PROJECT REPORT
the research has selected descriptive research design over exploratory and explanatory research
designs.
2.3 Research Approach and justification
According to, Silverman (2016) Inductive and Deductive research approach are two of
the main used research approaches used in varied researches. The particular research has
however used the deductive research approach. Firstly the deductive approach suits well with the
positivism research philosophy and secondly it also helps to answer the research to answer the
research questions in the most suitable manner. Apart from this another important benefit of
using the following research approach is the collection of the research information from other
theories. The use of the existing theories and concepts has thus helped the research to ensure
reliability and validity(Ledford & Gast, 2018). On the other hand, abstaining from the use of the
inductive approach helped saved time and useful resources as the use of the inductive approach
would have forced the research to use new theories and concepts.
2.4 Sampling
The sample size has been limited to just 20 and the samples selected in the research are
the different customers of the business organization. The random sampling method has been used
in the following research. The absence of time and adequate resources has been the main reason
for the use of the random sampling method.
2.5 Data Collection techniques
The two most commonly used methods of collecting data are primary as well as the
secondary data collection methods. According to, Quinlan, Babin, Carr & Griffin (2019) the
primary data collection method relates to the collection of the data from qualitative or