Executive Summary
Domino’s Pizza is an American restaurant chain and an international franchise pizza delivery company. The company started its origin in 1960 and now known to be the second largest pizza chain in the United states after Pizza Hut. The parent company is headquartered in Michigan, US and maintains the overall control on the sourcing and supplying of raw materials to other franchises.
Here is a brief marketing plan of the company that explains where the company stands out in the market and how it can remain sustainable in the years to come.
Challenges
The Domino’s Pizza Company is recognized as the world’s leading pizza Delivery Company. The company faces an ongoing challenge of ever-increasing awareness of its latest deals and boost up user engagement and sales.
Situational Analysis
Domino’s Pizza began as a single store in 1960 and now holds the recognized world leader position in pizza delivery. The company operates over 11,000 stores in more than 70 countries. Domino’s pizza has been known as the pioneer of pizza delivery business since its foundation and the total system delivers more than 400 millions pizzas all across the world.
In the beginning, pizza was the only item on the Domino’s menu but in order to remain competitive the company evolved itself and extends its product line. The Domino’s has 26% of UK market just a little ahead of the Pizza hut with a much greater dominance in the growing delivery market.
The current market cap is $4.21B.
Customer Analysis
Domino’s Pizza knows very well that the consumers are price sensitive and by increase in price can lead to a decrease in sales .This is why Domino’s Pizza does not perform dine-in offerings to its customers and instead focuses on delivery and carry out methods. The company successfully targets a large no of customers online due to its fastest delivery service.
Competitive Analysis
Pizza Hut is the strongest competitor of Domino’s Pizza penetrating in the market since 1958. Both of the brands are being respected for its social media engagement and permanence. Pizza hut takes the lead over Domino’s Pizza in terms of food taste and no. of stores in the market, while Domino’s is preferred over quick delivery service.
Pizza hut’s strength lies in its strong marketing campaigns and superior food quality and services. However, the prices are high compared to the Domino’s Pizza.
The current market cap is $31.81B.
Collaborators
Joint Ventures
The Company launched its first outlet in Vietnam with a Vietnamese franchisee Vietnam food and Beverage Service.
Subsidiaries
Domino’s Pizza LLC (Michigan), Domino’s Pizza IP Holder LLC (Delaware) etc.
Climate: Pest Analysis
Political and Legal Environment:
The political factors that could affect the company’s business may include the laws and regulatory framework of the country. The political instability may disrupt the company’s routine operations as well.
Economic Environment
The domino’s Pizza conducted a survey where they found out people are more willing to purchase mostly in the beginning of every month. If there is a rise in the inflation rate, the cost of raw material will also increase which will further increase the price of the company’s products.
Social and Cultural Environment
Domino’s Pizza has adapted itself according to the social and cultural values and beliefs of the country where they operate.
Technological Environment
The new consumer technology has had a huge impact on the restaurant industry. Domino’s took advantage of this opportunity and implemented a mobile and web ordering development, social media integration that increases brand awareness, sales and customer satisfaction. [large]
SWOT Analysis
Strengths
· Strong brand recognition.
· Strong brand loyalty.
· Hygienic food quality and service.
· Known as the leader in online and carry out ordering.
· Brand equity is well maintained through heavy advertising and marketing campaigns.
· Global franchise operations in more than 70 countries.
· Effective supply chain management.