Dominos Pizza History

Background

Started in 1960 by James and Tom Monaghan as a small pizza store in Ypsilanti,

Michigan, Dominos Pizza has grown to more than 10,000 corporate and franchised stores in 70 countries. Dominos Pizza is recognized as the second largest pizza chain in the United States after Pizza Hut, and the largest worldwide. over $3.5 billion in the U.S. and nearly $3.9 billion internationally. In the third quarter of 2013, Domino's had global retail sales of nearly $1.8 billion, comprised of $849 million in the U.S. and $935 million internationally.

Domino's had global retail sales of over $7.4 billion in 2012, comprised of

Problem Statement
Building on the success of
Dominos product rebranding and technological innovations, the companys goal is to implement effective strategies that will increase its percentage of sales driven through the companys mobile apps and online website.

Research Analysis
Primary Research

Primary research consisted of personal

interviews with several friends and associates regarding their pizza preferences. The goal was to understand the characteristics of each brand consumers desired the most. This would allow Dominos to focus on the products and services that most appeal to their target market.

Research Analysis
Secondary Research

Secondary research consisted of reading

customer feedback on Dominos Facebook, YouTube, and Instagram accounts. This data research allowed us to view a broader audience and get a feel for things like Dominos brand awareness and product quality from a wide range of consumers.

SWOT Analysis
Strengths
Strong Brand Image

Weaknesses
High Calorie Content

Leader in Digital Technology Pizza Tracker

Diverse Product Offering

Increased Food and Labor Costs

History of Poor Food Quality

Large Target Market

SWOT Analysis Cont.

Opportunities
Implement Reward Programs Improve Social Media Presence Increased Competition Build on Digital Sales Success Large Number of Substitute Products

Threats
Changing Consumer Habits Towards Healthier Food Options

Market Behavior Analysis

The pizza industry is a $40 billion industry that makes up approximately eleven percent of all restaurants in the nation. Ninetythree percent of Americans eat at least one pizza per month in the nation. The trend with Americans now is to move toward take out and fast delivery food options rather than dining out.
U.S. Pizza Sales ($36,786,524,044)

Independents: 39.57% Other Chains: 26.52% Pizza Hut: 14.68% Domino's: 9.24% Papa John's: 5.97% Little Caesars: 4.02%

Consumer Behavior Analysis

Dominos target audience is the age group of consumers 18-49 years old,
both males and females. According to the pizza restaurant industry, the core pizza consumer is around the ages of 18 to 44 years old, with 75 percent to 77 percent of this age group being a pizza restaurant consumer (Barrett, 2012).

Competitive Analysis
With such strong competition from current industry leader, Yum! Brands
Pizza Hut, Dominos has been forced to improve it product quality and offerings. To remain competitive, Dominos begin to offer many of the same products, such as, custom pizzas, breadsticks, chicken wings, and pasta. The company has also maintained prices that were comparable to its competitors.

Product Analysis
In a 2010 interview with Gayle King of The Gayle King Show on Oprah Radio, CEO, Patrick Doyle, acknowledged the inferiority of Dominos taste and quality. Since that time, Dominos Pizza has made a consorted effort to move the brand and image into a more favorably light. Offering many of the same products as its competitors pizza, breadsticks, chicken wings, Dominos Pizza must continue to find new, innovative ways to set itself apart from competitors and drive more consumers back to the Dominos brand.

Sandwiches Chicken Wings Pasta Pizza Breadsticks Salads Desserts

Product Analysis
Customer Feedback
The brand that I love most is Papa Johns because they provide reward points where I can get free pizza after so many points. -Anne
Green (busy, working young adult)

like the taste of [Dominos] pizza and the affordable prices.I can order multiple pizzas under the $5.99 deal and that it does not break [my] wallet. [I] also like the subs from Dominos. -Maranatha, ( 25 years old)

Target Market
Dominos target audience is males and females ages 18-49 skewed slightly female with a focus on mothers and heads of household responsible for making the dinner decision for their family.

Creative Campaign Plan

Our creative Dominos campaign is comprised of three parts, which will
span the months of October to December 2014. According to the Dominos website, its busiest days of service, apart from Superbowl Sunday, fall on Halloween, Thanksgiving Eve, and New Years Eve/ Day (Corporate). With this in mind, we will conduct a series of mini campaigns within the larger one in order to achieve a greater awareness of the ease and benefit of ordering online.

Campaign Commercial

Campaign Objective
Marketing
Increase mobile app sales by 7%.
Achieve through commercial
advertisement and social networks.

Media
Revamp the companys brand identity
through social media by Spring 2014.

This includes YouTube, Twitter,

Instagram, etc.

Increase the quantity of loyal

customers by 5%

Achieved through emails, special

offers to local residences, and television commercials.

Campaign Strategies
Innovate a creative commercial
showing how easy and quick it is to use of the mobile app.

Offer hot deals for customer if they

order pizza or other products through the mobile app or the website only.

Pizza guessing game to increase usage

of Dominos mobile app.

Strategies Cont.
Aggressively display an improvement
in Dominos products through social media. Local Domino stores will offer a pizza launch in the neighborhood to try one of their favorite 1-topping medium size pizza. Nationwide contest, allowing consumers to create a unique short video of how they eat their pizza.

Overall Budget
Medium Total Dollars Spent %of Budget Billboard $20,000 8% Transit $30,000 12% Social Media $80,000 32% Promotional Items $40,000 16% Search Engine Optimization $45,000 18% Contingency Fund $35,000 14% Total $250,000 100%

Appendices
Bodnar, Kipp. (2010). B2B Social Media Lessons from Dominos Pizza Turnaround Campaign. Retrieved November 28,2013
from http://socialmediab2b.com/2010/01/dominos-pizza-turnaround-campaign/

Alfs, Lizzy. (2013). Whats next for dominos Pizza? CEO Patrick Doyle outlines some goals. Retrieved November 26, 2013 from
http://www.annarbor.com/business-review/whats-next-for-dominos-pizza-ceo-patrick-doyle-outlines-some-goals/. http://topics.nytimes.com/top/news/business/companies/dominos-pizza-inc/index.html.

Dominos Pizza Inc. (2013). Retrieved December 11, 2013 from

Inside Dominos. (2013). Retrieved November 26, 2013 fromhttp://www.dominos.com.au/inside-dominos Fera, Rae Ann. (2013). Startups dont run on halibut: dominos backs innovation with powered by pizza campaign. Received November
29, 2013 from http://www.fastcocreate.com/1683517/startups-dont-run-on-halibut-dominos-backs-innovation-with-thepowered-by-pizza-campaign.
http://www.wikinvest.com/stock/Domino's_Pizza_(DPZ)

McPhillip, Vincent. (2013). Dominos Pizza (DPZ). Retrieved November 29, 2013 from