Task: The next stage of the marketing audit is for you to consider the market for your organisation and evaluate the opportunities and threats that exist for your chosen organisation. NB: if you have a number of markets it is a good idea to focus on just one.
Incorporating theoretical concepts into your discussion from chapters 2, 4, 5 and 6 of the text, and with the use of other theoretical sources and secondary research, please discuss the following:
You need to select an Australian based organisation or you could select an International organisation but it needs to have a presence in Australia.
Given that companies usually have a wide product offering that may cater to different market segments, it is encouraged that you focus on 1 product / service to streamline your analysis.
Also, you need to select a B2C market so that you can profile your target markets effectively.
More information on how to complete this assessment will be provided on Interact 2.
1.1. Company: In this marketing strategy assignment, Domino’s Pizza is being selected for case study analysis of the market. Domino's Pizza, Inc. which has been strategically named as Domino’s is one of the growing American pizza restaurant chains. It was founded in the year 1960. As per the analysis of February 2018, it was found that the brand is now launched as the largest pizza seller globally in terms of sales. The Domino's has also a new logo which includes the removal of the blue rectangle and only includes the text along with the logo, which has red dots in it (Bamburry, 2015).
1.2. Product / Service OR Location: The Domino's has a varied menu which includes and goes by the taste & preferences of the specified region. As determining with the current Domino's menu which is established in the United States includes the various flavors of the tried & tested recipe of the Italian-American main along with the side dishes (Collins, 2018). The prime focus of the brand is the Pizza which has included the traditional and the various specialty, along with the custom-made pizzas that can be articulated in the crust styles along with the suitable toppings. Domino’s is also known to include the artisan-style pizzas, which is the most loved pizza style. It has also introduced the various pizza sides such as the pasta, bread bowls, and oven-baked sandwiches. The menu now also includes the more variants of the chicken and bread sides, along with the inclusion of the beverages and desserts.
The first Domino’s restaurant was launched at the Domino's Farms Office Park in Ann Arbor, Michigan. This is also a central headquarter.
1.3. Consumer: Initially, the customers were not very happy with the Domino’s Pizza as it had its own pitfalls. It was considered as a Tasteless or one of the unexciting food and was regarded as one of the low-time low brands in terms of the share price evaluation. The company also fell to match as per the 2009 survey which regarded it as a weak consumer brand in terms of the taste preferences. But it had a strength in the delivery and value. During the course of events, the company Domino’s has matched up to the expectations of the taste & preferences of the customer and also delivered with the investor's expectations. Considering this the pizza is now a globally successful brand and ranking wise it is considered as the second-largest pizza chain due to which now its share price has topped from $8 in 2009 to $160 a share in December 2016. Currently, the company is a digital futurist who is now able to live with the global customer expectations (He, 2013).
Industry analysis and market trends
It was found during the course of the downturn period with respect to the national or world economies along with the rising of inflation have deeply affected the businesses. It has been determined that there has also been a severe adverse effect on companies which had a cascading effect on the Domino's Pizza brand and in the leading delivery franchise. Even the company was growing strong past seven years with respect of the view in terms of the current economic situation (Ivy, 2013).
Domino's Pizza sales during the year of 2008 have risen to the 11% as the customers are highly influenced with the adopted new strategy of delivering at home rather than going out The company has consequently risen to 85 countries. It has also the stores in the various 5,701 cities worldwide which is approximately 2,900 international and in the US the total stores are the 2,800. Subsequently, the store also opening more stores steadily and progressively.
The company is considered as the 2nd preferred Pizza brand giving a tough competition to its competitors. As per the figure (a), Within the US alone it has contributed to the 9.86% of the revenue growth model in the year 2017. It has also steadily increased as per the figure (b) which shows that the company has high turnover revenue sales of the $ 643.64 and it is still growing strong.
PEST ( Political, Economic, Social and Technological)
Political issues: There has been a lot of Political issues which the company has been facing with respect to the regulatory framework which is governing and operating with respect to the judicial system. This has to lead to the distress the cascading effects in terms of the business in a diverse manner (Kirkpatrick, 2018). With respect to factors evaluated it has deterred the Domino's business. One needs to also ensure that there is a proper business employment along with the pollution and taxation that can be applied with respect to the organization that needs to follow adequate rules.
Economic Factors: The company needs to match with the county's economy and the GDP indicator of the country in which it is operating. The company needs to deliver in the potential areas where there are higher per capita income and people are also able to spend more. It has been observed in the domino's survey, that during the festivals or the start of the months, people are willing to spend more on the consumer goods. Also, the company needs to stabilize its operations with respect to the growing inflation rate which can lead to the damaging costs incurred and there can also be a high increment of cost due to the use of the raw material that can lead to the higher prices for goods (Agnes, 2016).
Social Factors: The company has been labeled as a fast food brand and is considered as a multinational brand headquartered in America (Kumar, 2015). It is often due to this the company dominoes are viewed to embrace the western culture. Also, there are many social forms of society that needs to be considered such as upper class, middle class or dealing with the middle-upper class, and lower class. One needs to attribute to the cultural norms along with the social beliefs, religion, values that might also affect the organization worldwide.
Technological factors: Interpreting the essence of the brand, it is important to note that the technology is improving, such as the baking and heating ovens is significantly lower in costs and the technology inbuilt is high along with the good service. The company always comes with the latest innovative technology such drones delivery system or the latest ways of connecting with the customers social media-wise, such as Facebook, Twitter or through connecting with the customers through email, telemarketing or chatting. The company has also included the Computer-based customer data such as the inclusion of the MIS (managing information system) which has also allowed the collection of the customer data, daily transactions along with the determination of the future forecasting and decision making.
Consumer segments & Market Behaviour:The company Pizza's would be purchased by the customers who show the below-buying behavior of the Customers. Such buying decision behavior has below type of characteristics-:
In terms of the consumers who would be willing to buy Pizza would exhibit a behavior of the various eating pizza (Lambert, 2014). They also have certain beliefs or would also prefer a brand product which needs not also evaluate in terms of the type of the pizza.
It has also been seen that such customers would like to change their tastes & preferences with time and the period of consumption and they would like to repeatedly switch.
Such trait also follows the switching brand due to the lack of variety, tastes or preferences leading to the unhappiness or dissatisfaction. But, apparently, Domino's has launched various flavors, tastes and the inclusion of the variety in any country, due to which it has built a superior reputation in terms of delivering and matching with the products and services with respect to the consumer's expectation. The prime focus of the brand is the Pizza which has included the traditional and the various specialty, along with the custom-made pizzas that can be articulated in the crust styles along with the suitable toppings. The company also fell to match as per the 2009 survey which regarded it as a weak consumer brand in terms of the taste preferences. But it had a strength in the delivery and value. During the course of events, the company Domino’s has matched up to the expectations of the taste & preferences of the customer and also delivered with the investor's expectations. Domino’s is also known to include the artisan-style pizzas, which is the most loved pizza style. It has also introduced the various pizza sides such as the pasta, bread bowls, and oven-baked sandwiches. The menu now also includes the more variants of the chicken and bread sides, along with the inclusion of the beverages and desserts.
The Domino's has also observed the trait of the buying behavior of the consumers with respect to its competitors.
Primary and secondary markets : It is important to determine the Consumer behavior which needs to be analyzed with respect to the process that needs to work with respect to the individuals or groups that requires to select, purchase or progressively make a use of dispose products or utilize the services, that can deliver as per the customer matching expectations and satisfy needs and desire (Park, 2012). The company has been labeled as a fast food brand but still, it has read and observed the customer traits, attitudes and the choice of the behavior which can determine the variety of the menu choices. It is important to understand the consumer attitude & behavior along with the matching attributes of reflecting a healthy image & pizza intake as a high-calorie food. Dominos’s pizza has shown its consumer behavior that it has included the health conscious stuffing’s and the introduction of the thin crust brand. Due to the Pizza integration within the family’s food of choice, it has allowed the family to also select the healthy and nutritious food in order to protect from the dangerous or the cascading effect of unhealthy fast food.
Decision Making & Implications: The food industry has been considered to be a complex industry as it needs to constantly experiment and deliver as per the taste & preferences of the customers. It is also considered as a global collective brand of the diverse businesses which has adequately allowed supplying in terms of delivering the food energy that can be consumed by the population.
The company has to closely monitor its consumer behavior and try to replicate the same taste, behavior, attitude as per the customer set expectations. It is important to relate to the customer buying behavior and launch with more variety and variety in order to match with the customer expectations. Else, it would be easy for the customers to switch brands to meet their expectations. During the course of events, the company Domino's has matched up to the expectations of the taste & preferences of the customer and also delivered with the investor's expectations. Domino's has adequately also included the modern techniques to build a reputation with respect to the youth of the society. One needs to also align the main marketing campaign that can determine the orientation of the consumers along with placing and ensuring the use of the modern devices. One needs to also adopt the modern marketing strategy. Such connection with the youth are the part of the gadget oriented. The company needs to constantly evaluate the customers’ expectations, growing competition in the same segment and ensure steps to match and deliver them.
The company is reviewed as a high quality and high pricing brand. It is also labeled as a promising brand in terms of the costing (Syed, 2006). The brand savors the image of the high positioning and attaches itself as a high quality, time and delivery brand. It has also established in the minds of the customer as an aggressive fast-food chain which can deliver with high quality and within the time frame to the customers. The company sits parallel with the other competitors and is already in a closed position. The company has been rated high in terms of the quality and high on the pricing, which are the two factors which can help in meeting the customer expectations.
The prime focus of the brand Domino's includes the artisan-style pizzas, which is the most loved pizza style. Dominos Pizza is the most loved brand and it is already giving tough competition to its competitors. It has been observed in this marketing strategy assignment that the Domino's Pizza has considered to be the innovative production and marketing company. We need to determine all the considerable effects of the natural ingredients that can be used within the product in order to assure a good health for their consumers. To assure that they are in line with delivery along with the quality of their products, they need to use the non perishable types of products which can match with the brand name on a large scale. It is also important to evaluate the Domino's authority that also includes the marketing strategy. It has been seen in this marketing strategy assignment that the products are designed to catch the customer eyes through the advertisements which can target the specific audiences such as the regular buyers which includes the- young people and kids. The customers can also includes the variants in the form of the pizza sides which includes the varieties of the pasta, bread bowls or the various oven-baked sandwiches. The menu now also includes the more variants of the chicken and bread sides, along with the inclusion of the beverages and desserts (Whiteley, 2008). The pizza is now a globally successful brand and ranking wise it is considered as the second-largest pizza chain due and now the company is a digital futurist who is now able to live with the global customer expectations. It has been determined in this marketing strategy assignment that there has also been a severe adverse effect on companies which had a cascading effect on the Domino's Pizza brand and in the leading delivery franchise. Even the company was growing strong past seven years with respect of the view in terms of the current economic situation. The company has been labeled as a fast food brand but still, it has read and observed the customer traits, attitudes and the choice of the behavior which can determine the variety of the menu choices. By this marketing strategy assignment we have understood that it is important to understand the consumer attitude & behavior along with the matching attributes of reflecting a healthy image & pizza intake as a high-calorie food. Dominos’ pizza has shown its consumer behavior that it has included the health conscious stuffing’s and the introduction of the thin crust brand.
Agnes, M. (2016). Domino’s Pizza: A Look At the Timelessness of A Social Media Crisis Plan. Bamburry, D. (2015). Drones: Designed for product delivery. Design Management Review, 26(1), 40-48.
Collins, J., Chiang, C. W., & Wajda, C. (2018). U.S. Patent Application No. 29/574,802.
Collins, J., Chiang, C. W., & Wajda, C. (2018). U.S. Patent Application No. 29/574,802.
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case study in the pizza industry. International Journal of Information Management, 33(3), 464-472.
Ivy, M. (2013). Have you seen me? Recovering the inner child in late twentieth-century America. Social Text, (37), 227-252.
Kirkpatrick, J., Cuvelier, K., & Flanagan, J. (2018). Chartered Financial Analyst Challenge: Analysis & Research of Domino's Pizza.
Kraak, V. I., Englund, T., Misyak, S., & Serrano, E. L. (2017). A novel marketing mix and choice architecture framework to nudge restaurant customers toward healthy food environments to reduce obesity in the United States. Obesity Reviews, 18(8), 852-868.
Kumar, R. (2015). A comparative study between on pizza hut and Domino's Pizza. International Journal of Marketing and Technology, 5(9), 89-123.
Lambert, D. (2014). Domino's Pizza: A case study in organizational evolution. Oboulo. org Publications.
Park, J., Cha, M., Kim, H., & Jeong, J. (2012). Managing Bad News in Social Media: A Case Study on Domino's Pizza Crisis. ICWSM, 12, 282-289.
Sinha, M., & Sheth, J. (2018). Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users. Journal of Business Research, 86, 217-224.
Syed, I. (2016). SWOT analysis and operation management decisions of Domino's pizza.
Vargas-Hernández, J. G., & Martínez, M. Á. P. (2016). Mergers and Acquisitions Strategies for Market Penetration in New Countries: The Case of Alsea Group. Regional Science Inquiry, 8(2), 55-64.
Whiteley, R., & Hessan, D. (2008). Customer-centered growth: five proven strategies for building competitive advantage. Basic Books.