Marketing Strategy of Dominos

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Marketing Strategy of Dominos – Domino’s strategy: In 1960 Domino’s was established in 1960 and is now the most renowned Pizza Company in the world with more than 10,800 owned by the Company and franchised stores. Its presence spans five continents and around 70 different countries,, it has earned the market position of leader place, particularly in the pizza industry. Its low-cost infrastructure investment and franchisee-owned business model make its business more feasible than its competitors.

Dominos At A Glance – Marketing Strategy of Dominos

Marketing Strategy of Dominos

Company : Domino’s Pizza, Inc.

CEO: Richard E. Allison Jr.

Founder: Tom Monaghan | James Monaghan

Year founded: 9 December 1960, Ypsilanti, Michigan, United States

Headquarters: Ann Arbor, Michigan, United States

Annual Revenue: US$4.2 billion

Profit | Net income: US$506.7 million

Number of employees : 14,400

Products & Services: Fast Food | Food Delivery | Express Food Delivery Services

Website: biz.dominos.com

Dominos Competitors

Competitors: Pizza Hut | McDonald’s  | KFC | Starbucks  | Subway | Burger King | Dunkin Donuts | Taco Bell

Dominos Fun Facts: Domino’s double-cross World’s Fastest Pizza Maker Werner Lomker can make three enormous pizzas in 47.56 seconds.

Marketing Strategy of Dominos

Marketing Strategy of Dominos

Dominos Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy for Dominos? Let us discuss.

Segmentation, Targeting, Positioning – Dominos Marketing Strategy

When people are introduced to the brand Domino’s name, Domino’s they will think of the “30 minutes delivery guarantee”. This is among the most popular campaigns from Domino’s that highlight what Domino’s stands for – speedy delivery coupled with great taste.

It has a segmentation of its menu according to factors such as demographics and geographical aspects such as e.g.It introduced localized menus when it first entered India. Domino’s knows that cows are sacred here, therefore Domino’s changed its beef-based pepperoni, pepperoni, and pepperoni toppings with a spicy chicken sausage as a topping.

It utilizes a distinct targeted approach to cater to customers based on their preferences and taste. Dominos has had success thus far at positioning it as a pizza brand with affordable prices and a variety of options available.

Dominos Mission Statement

“Not Available”

Dominos Vision Statement

“Exceptional People on a Mission, to be the best pizza delivery company in the world”

Dominos Tagline

“Oh yes we did” (global) “Yeh hai Rishton ka time” (Indian)

Competitive Advantage – Marketing Strategy of Dominos

The supply chain: vertical integration through the supply chain assisted the company in better aligning its resources and regulating the cost structure to remain competitive in the market while also emerging as the preferred pizza provider.

Fast Delivery: No matter if you enjoy the mouthwatering pizza in their stores or have it delivered to your home you can always be sure of Dominos for its fast delivery services that have assisted the company to improve its value-added in the delivery process. They even provided packaging to prove that their pizza is delivered hot.

Low-cost outlets: It can be one of the most significant cost elements that make their business financially viable contrasted to the Yum outlets of the Yum brand. There isn’t a single outlet for Domino’s that is designed to be luxurious with luxurious interiors. Instead, the outlets encourage more speedy consumption, so that customers can place orders, consume food and then move forward. Pizza is marketed precisely because of what it represents fast food.

BCG Matrix – Domino’s Marketing Strategy

Dominos offers the option of both Veg & Non-Veg Pizza on its menu, with various toppings available.

Although they provide two types of pizza, Veg & non-veg Pizza, Dominos Veg menu is more well-known and, therefore, it is a Star in the BCG matrix. With Domino’s nearly stealing its majority of market shares of Pizza Hut’s Pizza Hut and Pizza Hut, non-veg pizzas can be a source of revenue for Domino’s (at the very least in India) since veg pizzas are a great choice for local competition, but there is a lot of little competition for non-veg pizzas.

Distribution Strategy – Marketing Strategy of Dominos

Strategically placed Dominos outlets and a vertically integrated value-delivery system has assisted Dominos to provide its customers with the best method. The reduction in turn-around time (TAT)/waiting time is the main benefit Dominos enjoys. Dominos has over its rivals.

It operates company-owned dough manufacturing facilities in certain countries. In other countries, it collaborates with master franchisees to streamline the supply chain. Similar to Jubilant FoodWorks has master franchisee of Domino’s Pizza in Sri Lanka, India, Nepal & Bangladesh.

Brand equity – Dominos Marketing Strategy

Dominos has been successful in its position as a top of minds in the Fast food industry. In 2009, it unveiled its video under the “Oh yes we did” campaign, which was claimed to be an opportunity to turn around a strategy that explains to different stakeholders how they dealt with critics. The company also shared the innovative strategies they employ to satisfy the changing customer demands.

“30 minutes guaranteed delivery or free” is a cult campaign for the company that has helped gain more attention across geographical regions and demographics. In 2016 the brand’s rank is 301 on the global ranking of brands by Forbes. Pizza Hut is also at the top with a rank of 355.

Competitive Analysis – Dominos Marketing Strategy

The pizza industry is overcrowded with local and international businesses like Pizza hut, Papa Jones, Toppers, Greco, etc. taking over their respective market share. Dominos’ online discount promotions and delivery on time can have the largest market share in all the countries.

It has snuffed out the rivals through a focus on two key aspects – wide and far distribution and speedier delivery. Domino’s has recently introduced its own Pizza Burger to take on the popularity of Mcdonald’s.

Market Analysis – Marketing Strategy of Dominos

Due to the existence of numerous fast food options and the availability of a variety of fast food options, it’s difficult for pizza companies to increase the number of customers they serve and simultaneously increase the market share. In the developing world, it’s difficult for companies such as Dominos to grow their market size because of several factors such as low per household income, poverty levels or literacy level, and quality of life.

The Dominos store is strategically situated to serve the needs of large geographical areas in the vicinity to keep costs for infrastructure at a minimum. Additionally, promoting the sales on the internet channel by offering discounts aids the business to

  1. Enhance the satisfaction of the customers with convenience.
  2. Control of costs

Customer Analysis – Dominos Marketing Strategy

The customer base of Dominos is different geographically around the globe. In developed nations like the US, UK, etc. the consumers come of all ages, whereas in developing countries such as India most customers are younger people between 20-40 years.

In addition, health awareness is impacting the consumer’s psyche, as they are seeking healthier alternatives like Subway or other options that have fewer calories when compared to a full pizza.

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