· Consumers who are health conscious avoid eating pizza and other fast food items.
· Lower food quality compared to its competitors.
Opportunities
· Extension in product offerings.
· Improvement in home delivery service.
· The distribution network can be strengthened in order to ensure market penetration at maximum optimum levels.
· Market Expansion can further help in increasing sales and brand awareness.
Threats
· Fierce competition with rivals like Pizza Hut, KFC etc.
· Rapid changes in the consumers demands.
Market Segmentation
Domino’s Pizza has no one specific target market for its products. They make pizzas for all those consumers who like to eat gluten free pizza, larger menu with healthier choices.
Considering health as a major concern today, The Company targeted the health conscientious segment. They introduced new supreme salads. Moreover, the company also targeted the fast paced consumer segment. They attracted the consumer segment with the launch of an advertising campaign” You got 30 minutes”.
Market Segmentation Strategy
Growth Strategy
Domino’s Pizza might not be the first place that comes to mind for the best pizza in town but the company‘s retail chain has grown a lot faster than others. In 2009, the CEO of the company had acknowledged the fact that the Domino’s Pizza doesn’t taste so good and promised to improve the ingredients in future. This actually got proved when the Domino’s not only came up with an improved taste but also worked on digital and mobile marketing to make it faster and easier for customers to place and track orders. The company introduced mobile ordering apps that covers about 95% of Smartphone’s and generated sales of $2 billion only in global digital sales per year.
Marketing Mix 4p’s
Product
Domino’s Pizza has implemented an Adaptive strategy in order to capture the market globally. For instance, the company had to localize its flavors like Deluxe Chicken with Mustard sauce, Crunchy thin crust etc.
Price
Domino’s Pizza adopted a Product Pricing Strategy, by offering the products at a lower price than its competitors.
Place
The Company’s business is comprised of three segments such as domestic stores, domestic supply chain and international. Internationally, the company has 4070 franchise stores in over 70 international markets.
Promotions
Domino’s Pizza used a proactive approach to promote its products and to thwart from any permanent damage. The company recognized the power of internet as a means of communication to reach its potential customers globally.
Short/Long term Projections
The company’s second quarter 2014 earnings reported to reach at $0.67 per share and the company’s net store growth reached to 102 stores in the first quarter.
Conclusions
The Domino’s pizza is recognized as the leader in pizza delivery. The company was known to b the first chain to offer delivery to the consumers. Although the company has revamped its menu items to gain a competitive advantage over Pizza hut and yet still strive to offer the best quality and services to its customers globally.