SCHOOL OF HOSPITALITY AND

TOURISM MANAGEMENT

UNIVERSITY OF JAMMU

REPORT ON - “DOMINOS”

SUBMITTED TO: SUBMITTED BY:

MR.RAVINDER RADHIKA GUPTA

DOGRA ROLL NO – 12

Domino's Pizza

Type: Public

On the web: http://www.dominos.com

Employees: 10,900

Employee growth: 6.9%

This company knows the rules of the pizza delivery game. Domino's Pizza runs the world's #2

pizza chain (behind YUM! Brands' Pizza Hut division), with more than 9,300 delivery locations

in about 65 countries. (The chain includes almost 5,000 stores throughout the US.) Domino's

menu features several different styles of pizza with a wide array of topping options, as well as

additional items such as bread sticks, cheese bread, and chicken wings. Its stores are principally

delivery locations and generally do not have any dine-in seating. The company owns and

operates more than 450 locations in the US, while the rest are franchised.

Key numbers for fiscal year ending December, 2011:

Sales: $1,570.9M

One year growth: 11.9%

Net income: $87.9M

Income growth: 10.2%

Officers:

Chairman: David A. Brandon

President, CEO, and Director: J. Patrick Doyle

EVP Finance and CFO: Michael T. Lawton

Competitors:

Little Caesar's

Papa John's

Pizza Hut

Brand ambassador

The company also recently appointed Bollywood star Arshad Warsi as its new brand ambassador, in keeping with its plans to reach out to its target audience between the age group of 25-35 years. Its first advertisement featuring Warsi is going on air from November 24, that will announce its new product, the Cheese Burst Pizza, that has a marketing spend of around Rs 6 crore.

Domino's India ideally launches around three to four new products every year, and it spends around Rs 20 crore annually in advertising its various promotional schemes and new launches.

The History of Dominos Pizza

Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the history of

Dominos Pizza is similar to its rival Pizza hut; two brothers started it with borrowed equity in the

sixties. Tom and James Monaghan bought a small Michigan Pizzeria called Dominick's, which

was jointly run by them until James traded his share for a second hand car. Tom revitalized the

image by changing the name to Dominos Pizza .

By the late seventies there were over 200 franchise pizza businesses in the States and Dominos

Pizza was ready to go International. In 1983 Dominos Pizza opened its doors in Winnipeg, and in

the same year opened its one thousandth store. Later that same year Domino's corporate history

was to begin in Australia with its first franchise in Brisbane, on the East coast.

The locations for Dominos Pizza grew quickly from here as they sprung up in all sorts of diverse

places including Bogotá. Despite Domino's Pizza springing up diverse locations, they were still a

very traditional company. Domino's Pizza menu had been kept very simple and streamlined;

they only sold one type of pizza crust which they named the regular pizza. Domino's Pizza dough

was shaped by tossing the dough and pulling it into shape. The pizza menu included just two

sizes of dough, it was not until much later that competition forced them to add a medium and

extra large sized pizza. There were no such things as side orders you could have Pizza, pizza or

Pizza and you could only drink a Coke with it.

In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was introduced,

for the first time in twenty five years the company was being forced to react to market demand.

This move consolidated the financial base and ensured the growth of Domino's Pizza , as the

same year they opened their five thousandth store.

The wind of change had started and by 1992 they were to introduce the first non pizza item to

their menu, this was obviously a reluctant move as it was bread sticks. Domino Pizza dough was

already on hand and the making of bread sticks is not so different.

For many years the company had advertised that if the delivery of their pizzas took longer than

thirty minutes then the pizza would be delivered free. This was parodied by the Teenage Mutant

Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the delivery.

The turtles pizza was late and they received a refund of $3 for "being two minutes late, dude!"

However the benefits to Domino Pizza was enormous as millions of kids were to hear the name

of Domino Pizza endorsed on celluloid. In 1993 Domino Pizza discontinued this policy and

stated that if a customer was unhappy they could have a new pizza or a refund.

By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the

menu. At the same time the company hit the African continent as they opened a store in Egypt .

By 1996 Dominos Pizza website was launched and the company declared global sales of nearly

$3 billion.

Despite their reluctance to add a wider range menu they have as a company given the pizza

industry many innovations that have now become standard. The belt driven pizza oven was the

invention of Domino Pizza and they began using corrugated cardboard delivery boxes which

were very effective at holding the heat within the pizza during the delivery time. Ever mindful of

the fact that a cold pizza must be about the worst dining experience on earth Dominos pizza

introduced the "Heat Wave," a portable electrical bag system that keeps the pizza hot during

delivery.

By 1997 they had also had an internal modern facelift

as their stores were all brightened up and the

company introduced a new logo. Domino Pizza

continued to grow exponentially and in 1997 they

opened seven stores in one day but on 5 different

continents.

In 2004, Super Bowl Sunday was the most hectic pizza

delivery day of the year when Dominos Pizza sold over a

million pizzas, which was an increase of 42 percent on

their normal Sunday trading volume. As the company

continues to grow so rapidly it is just as well the practice of adding a dot onto the logo was discontinued

after three outlets as Dominos Pizza now has over seven thousand outlets globally

Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor,

Michigan, United States of America. Founded in 1960, Domino's is the second-largest pizza

chain in the United States and has over 9,000 corporate and franchised stores in 60 countries and

all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The

menu features both vegetarian and meat pizzas, chicken wings and boneless chicken, potato

wedges, garlic breads and a variety of dessert items including cookies and waffles, Ben & Jerry's

ice cream and a variety of soft drinks including Coca-Cola, Fanta, and Sprite. Domino's has

restaurants in all of the world's major cities such as New York, London and Chicago.

The Domino's Pizza Logo

Charitable activities

In 2001, Domino's launched a two-year national partnership with the Make-A-Wish

Foundation of America. That same year, the company stores in New York City and

Washington D.C. provided more than 12,000 pizzas to relief workers following the September

11 attacks on the World Trade Center and The Pentagon. Through a matching funds program,

the corporation donated $350,000 to the American Red Cross' disaster relief effort.In 2004,

Domino's began its current partnership with St. Jude Children's Research Hospital,

participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more

than $1.3 million in 2006.

Dominos Australia donates large quantities of pizza to natural disaster victims. They also provide

food to isolated towns in rural areas that don't have access to large amounts of food. Dominos

Australia has partnerships with Mission Australia, Royal Flying Doctor Service, Starlight

Foundation and Marymead.

Advertising and sponsorship

Arie Luyendyk's Lola-Chevrolet which won the 1990 Indianapolis 500 for Doug Shierson Racing.

In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That

concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the

television commercials that they created. The catchphrase associated with the commercials was

"Avoid the Noid."

Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium

pizzas in March 2009. The company had planned the campaign for December 2008 but dropped

the idea and never promoted it. The code was never deactivated though and resulted in the free

giveaway of the pizzas across the United States after someone discovered the promotion on the

website by typing in the word "bailout" as the promotion code and then shared it with others on

the Internet. Domino's deactivated the code on the morning of Tuesday, March 31, 2009 and

promised to reimburse store owners for the pizzas.

Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk,

and the team won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a

multi-year partnership to become the "Official Pizza of NASCAR."[49] Domino's also sponsored

Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR

Sprint Cup Series.

Domino's Pizza was briefly seen in the 1990 film Teenage Mutant Ninja Turtles. Furthermore,

from 1998 to 2008 the company provided funding for the American cartoon sitcom "The

Simpsons".

DOMINO'S PIZZA CORPORATE FACTS

Each day, more than 1 million customers enjoy hot, delicious Domino’s Pizza products on every

inhabited continent on Earth, because we operate over 9,000 stores in more than 60 countries, all

dedicated to our  focus of providing great-tasting pizza delivered directly to your door or

available for carryout. We pioneered the pizza delivery business, and our total system sells more

than 400 million pizzas worldwide every year.

Great Name Brand Recognition

Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been

named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three

times.

Strong Teamwork

Domino’s Pizza Inc.’s leadership, team members and franchisees aspire to achieve our collective

vision of being Team Members and Franchisees on a mission to be the best pizza delivery

company in the world. We operate through a set of Guiding Principles founded on integrity and

putting people first (our shareholders, customers, suppliers and employees) – Guiding Principles

that serve as our compass as we manage our business.

Innovating the Pizza Delivery Business

Throughout our history, in addition to pioneering the concept of efficient delivery of made-to-

order pizzas, we have been part of innovations that have made significant impact on the pizza

and delivery industries. Here’s a look at some of our innovative thinking:

Domino's HeatWave® Hot Bag

Domino’s HeatWave hot bags were introduced in 1998 to keep pizzas oven-hot during

normal delivery. Originally, each hot bag contained a patented heating mechanism

charged by plugging into an electric outlet at the store. The outer material of the bag is

made with water-repellent nylon, which replaced the less sturdy vinyl material previously

used. Domino’s has continued to innovate and evolve the technology, removing the

electric cord and heating each bag via an induction heating system. The latest edition of

Domino’s HeatWave bags relies solely on a patented insulation system that keeps pizzas

both hot and crisp – completely eliminating the need for electricity.

A better box

Domino's was the innovator behind the sturdy, corrugated pizza box, which keeps

moisture from weakening the box, while preventing cheese from sticking to the top

during delivery.

Car-top sign - in 3-D!

Today, it's hard to miss pizza delivery cars -- thanks to Domino's Pizza. Domino's

invented the 3-D car-top sign, which is currently used by a variety of industries, including

taxis and driving schools.

Spoodle

This saucing tool combines the best features of a spoon and a ladle, cutting down the time

spent saucing a pizza. The spoodle was introduced at the 1985 World's Fastest Pizza

Maker competition by the winner, Jeff Goddard.

Domino’s Online Ordering – Pizza Tracker and Pizza Builder

Domino’s launched online ordering in 2007, and in 2008 revolutionized the customer

experience by launching its innovative Pizza Builder and Pizza Tracker tools. Pizza

Builder allows customers to see their pizza come to life on the computer screen, as

toppings and crust styles are selected in real time. Pizza Tracker allows customers to

follow the progress of the order, from the time it’s placed until customers receive it. Pizza

Tracker has seen various looks, themes and interactive opportunities since its debut.

While the Pizza Builder has since been mimicked by other pizza companies, Domino’s

remains the only company offering the engaging ordering experience of Pizza Tracker.

These innovations and others have helped us get better at what we love to do most: deliver great

pizza to your door, efficiently and enthusiastically!

Strong Distribution System

To allow Domino's stores to concentrate on making and delivering pizzas, Domino's developed a

central distribution and dough manufacturing system. This relieves stores from long hours

making dough, grating cheese and preparing toppings. Today, Domino’s Supply Chain Services

(SCS) provides high quality dough and ingredients nationwide, keeping the company's pizza

consistently delicious. In fact, through its network of 17 domestic distribution centers, SCS

regularly supplies more than 5,000 U.S. pizza stores with more than 240 products. Other pizza

and fast food companies in the U.S. have adopted this same system

International expansion

On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, Canada.

That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000

international locations. In 1997, Domino's opened its 1,500th international location, opening

seven stores in one day across five continents.

Industry

The pizza U.S. quick service restaurant industry is very competitive. Domino’s main competitors

domestically are Pizza Hut, Papa John’s (PZZA) and other local pizza restaurants.

Internationally it competes with Pizza Hut and other local restaurants. Domestically, it's the #1

pizza delivery company with a market share of 19% based on dollar value. This is a very stable

industry, growing at the rate of inflation, maybe even a bit higher.

One issue I see with the pizza industry in general is that it does

not follow any of the major trends happening inside the country.

I don’t know about the rest of the world. People are becoming

more health conscious and that will ultimately hurt the pizza

industry. Basically, pizza goes against one of the major trends

sweeping across the country.

Company

Domino’s has been making pizza for a while, almost half a century. In 1998 Bain Capital

acquired a 93% stake in the company and in 2004 it went public, probably so Bain Capital can

cash out of its big investment. It has economies of scale in its food manufacturing unit for its

retail stores because of its big market presence, which gives it a cost advantage over smaller

competitors. It's very unique in its treatment of franchises because a majority of the time a person

has to work/train in the Domino’s system for some time before he/she is allowed to become a

sole operator of a franchise. It promotes entrepreneurship inside its franchisees.

Domino’s Pizza is a strong brand being one of the most known consumer brands in the world. It

spends a lot of money on advertising, over the past 5 years investing an estimated $1.4 billion in

the United States. Domino’s also has marketing affiliations with NASCAR and Coca-Cola (KO).

It plans on growing through the growth of its store count. Additional stores will not cost a lot of

money due to the size of the stores and the distribution system available. Domino’s has been

struggling with its domestic stores same store sales growth. It was negative in 2006 and just in

the past quarter it was negative as well. Its domestic distribution system and its international

operations have been the two growing areas of the company.

Something to keep in mind: it is currently a defendant in a couple of lawsuits all accusing it of

bad working conditions with regard to breaks and meal time.

Valuation

One major factor that bothers me about Domino’s is its debt load, which is $1.7 billion; over half

of the company is financed by debt. Domino’s is a great cash generator; cash flow from

operations for the past 3 years has been higher than net income.

One great part of Domino’s is that it does a great job managing its working capital. Historically,

it has had very little or negative working capital. This is because it receives its receivables a lot

faster than it has to pay its payables.

Papa John’s is trading at an earnings yields of over 10% compared to Domino’s of almost 7%. Its

cash flow from operations(ttm)/enterprise value is 22.3%. Domino’s cash flow from

operations(ttm)/enterprise value is 9.7%. Analysts expect PZZA to grow its earnings a bit faster

than DPZ in 2008 compared to 2007 earnings expectations.

Products

A makeline at a Domino's

The current Domino's menu features a variety of Italian-American entrees and side dishes. Pizza

is the primary focus, with traditional, specialty and custom pizzas available in a variety of crust

styles and toppings. In 2011 Dominos launced Artisan style pizzas that offer a base blend of rich

flavors to compliment chef inspired toppings. Additional entrees include pasta, bread bowls and

oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages

and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to

other fast food restaurants, to ensure efficiency of delivery. Historically, Domino's menu

consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coke as the

only soft drink option.

In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from

the crust up", making significant changes in the dough, sauce and cheese used in their pizzas.

Since the companies stock low in late 2009, the company's stock had grown 233 percent by late

2011. Even as the economy has suffered and unemployment has risen, Dominos has seen its

sales rise dramatically through its efforts to rebrand and retool its pizza.

Terms & conditions

Orders of 4 or more pizzas qualify as bulk orders, not valid for service guarantee of less than 30

minutes or free. Maximum Domino’s liability is Rs. 300.

Delivery guarantee applicable at the first barrier point. Domino’s does not penalize its drivers for

late delivery. 30 minutes or free not applicable when store operating conditions or not suitable ,

to be announced at the time of order taking. Dominos Pizzas preserves the right to withdraw the

service guarantee without prior information.

30 minutes delivery guarantee not applicable on New years eve,on Ganesh festival , Christmas

and Durga Pooja , the service guarantee may be withdrawn temporarily in view of difficult

operating conditions for delivery. Conditions apply

Our Brand To protect the investment of our franchisees and shareholders, and the jobs of our team

members, DPG invests a lot of time and money in upholding the positive reputation of

our brand. Our brand marketing activity is financed through a National Advertising Fund

(NAF) which is made up of franchisee contributions. We carefully select targeted

marketing campaigns that talk to our core audience of 18-35 year olds in order to secure

the best possible return on our franchisees’ money. We have a lot of fun with our brand

marketing. Whether it's our sponsorship of Britain's Got Talent, an innovative new

product, new direct mail techniques or the launch of our text ordering service, we find

ways to set Domino’s Pizza apart from the competition and strengthen our position as the

pizza delivery experts.

Vision and Mission

Vision

Number one in pizza

Number one in people

Mission

Sell more pizza, have more fun

Values

Treat people as you’d like to be treated.

Produce the best for less.

Measure, manage and share what’s important.

Think big and grow.

Incentivise what you want to change.

Set the bar high, train, never stop learning.

Promote from within.

We are not ordinary, we are exceptional.

Nothing is as important as hygiene. Not only do we follow the most stringent Food Safety

standards in Australia, we go beyond them.

We follow a registered food safety program for all of our stores nationally. Councils audit us to

this standard

We train all our staff in food safety from the day they begin and give them regular retraining

Our staff wear hairnets and gloves whenever they prepare food

They wash their hands with soap and sanitiser as often as possible and they never handle food

without washing their hands first

Every Domino's store has at least one accredited food safety supervisor

Our stores are audited regularly by the council and food safety auditors to ensure that food safety

in our stores remains at a high standard. This also ensures that our stores are as clean as they can

possibly be and that we are delivering high quality safe food to our customers day in and day out

As you can see we take hygiene seriously. Because when it comes to ordering you're in safe

hands with Domino's.

MARKETING STRATERGY:

30-minute guarantee

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes", alluding

to the earlier pledge but stopping short of promising delivery in a half hour.

The company continues to offer "30 minute or Free" guarantee for orders placed in its

stores situated in India.

You can’t control your pizza-mania when you browse through an extensive range of tasty

pizzas listed in the Dominoes menu. The year 2009 has more reasons to unwind your

temptations with the new Domino's pizza menu featuring some new launches of

mouthwatering recipes that have been included into Dominos pizza menu. Domino’s

have constantly been giving place to new delicacies in Dominoes pizza menu and

upgrading the Dominos menu to give it a new look.

When we talk about pizzas, Dominoes pizza menu has the most extensive range of

delicious pizzas. On Dominos menu, you can enjoy delicacies of veg pizzas, non-veg

pizzas, kebab pizzas and many more versions of tasty pizzas. Interestingly, being a global

brand, Dominos pizza menu has customized versions of pizzas keeping in mind the taste-

preferences of various populaces living in geographically distinct locations across the

globe. Anyone, living anywhere can get his or her favorite pizza on Domino's pizza

menu.

Besides pizza, the new Dominos menu has place for Oven Baked Sandwiches as well. 

The newly included Pasta Dishes and Chocolate Lava Cakes in the Dominoes menu are

particularly so hit amongst the consumers.

Domino’s have now added new delicacies in the Dominos pizza menu other than just

pizzas. Now, pasta lovers too are found looking for Domino's pizza menu to treat

themselves with great pasta dishes. The attractive ad campaigns of Chocolate Lava Cakes

have lured many sweet dish lovers to the Dominoes menu.

Today, Dominoes pizza menu features pizzas, pasta dishes, oven-baked sandwiches,

wings, breadsticks and a variety of dessert items. The delicacies on Dominos menu vary a

little bit from outlets to outlets. For Dominoes menu available with your nearest

Domino’s outlet, you can check the Dominos pizza menu online. The chances are that

you will get your favorite dish on the Domino's pizza menu and order your pizza

selecting from Dominoes pizza menu.

You can Dominoes pizza menu online as well. This website offers you a chance to go

through the Dominoes menu online and order your pizza from Dominos menu. The best

part of ordering a pizza online from Dominos pizza menu online is the facility of Pizza

Tracker, which is an online application. This application helps the customers to check the

status of their order of a pizza placed from Domino's pizza menu.

.

Dominos lines up aggressive marketing strategy this summer; new TVC

features

Domino's Pizza India, has an aggressive marketing strategy in place for this summer. To begin

with, the pizza major has launched a new summer special offer, which involves a marketing spend of Rs

2.5 crore, supported by a major advertising campaign and a new TVC. The new campaign with coke

promotion is linked with Domino's 30-minute proposition.

"With our '30 minutes or free delivery' promise introduced last year, we have witnessed a growth

of 40 per cent in sales, while we have also given away 60,000 free pizzas. Looking at the earlier

success of the summer special offer, we decided to reintroduce it. We are sure that our new

marketing efforts would further strengthen our leadership in the Pizza delivery segment. Target

for pizzas is anywhere between the age of 4 to 80. But the target group for our communication

would be in the age bracket of 18 to 35 years,"

Talking about the overall marketing spends, he said, "The total would be nearly Rs 20 crore. Our

advertising spends include the discounts that we offer in the market, which would be close to

Rs10 crore. Over and above that, we spend about 10 per cent of our turnover on print, press and

television."

Positioned as pizza delivery experts, Dominos has a strong presence in India with 91 stores in 27

cities and plans to open 20 new stores this year. "We are planning to expand at the existing

locations. We are also evaluating franchising as an idea and if that takes off, we will open more

than 20 stores this year itself.

According to Hargave the fast food market in India is growing at about 20 per cent per annum.

Competition is there not among fast food companies but also with packaged food. They key issue

however is, within the sphere of the spending power that the consumer has, how strongly is your

brand positioned and for what service it stands.

With new entrants in the segment and with the current players reinforcing their strategies, the

competition in the category is certainly hotting up.

Domino's to expand product offering in India, eyes small towns

In line with its target to make India one of its top five global markets in three years, US quick

service restaurant chain Domino's Pizza said it will expand its product offering and focus on

smaller towns for growth opportunities.

    

The company also said it going ahead with an aggressive brand building exercise, including

increased spending on marketing and special offers, as it seeks a bigger pie in the estimated Rs

1,000-crore Indian pizza market.

    

"Our strategy now is to introduce at least one new product every 3-4 months and this fiscal we

will add three more items," Domino's Pizza India Vice-President (Marketing) Dev Amritesh told

PTI.

    

The Indian pizza market is of around Rs 1,000 crore. The home delivery segment consists of

around half of it and Domino's claims a 65 per cent share in the segment.

    

In terms of top global markets for Domino's, India is currently ranked at ninth position.

    

"While remaining focused on the core category of pizzas, Domino's will also launch new

products in the non-pizza segment,"

    

Domino's currently has 19 pizza variants in the Indian market, besides five non-pizza items,

including choco lava cakes and pasta which were introduced last year.

    

"Product innovation is a priority for us. It gives consumers more choices and increase our brand

value,"

    

The company will be undertaking a major brand building exercise which will include substantial

use of advertising, besides special offers.

    

"We have just launched our wheat thin crust pizza and revived our Pizzamania campaign. Our

focus is on increasing our brand visibility among all segments, specially with focus on smaller

cities," .He, however, declined to share the spending that the company has planned to make on

its brand building exercise.

    

The firm plans to open 60-65 outlets every year for the next three years in India. It currently has

around 310 stores across the country.

    

"A major chunk of the new outlets will be in smaller cities. There is a huge untapped market in

those places and we want to be at the forefront of the action,"

    

Bhartia Group-promoted Jubilant Foodworks is the Indian master franchise for Domino's Pizza.

Earlier this year, the company went for an IPO in India, becoming only the fourth subsidiary

outside the USA where the brand is listed.

    

Dominoes pizza is one of the biggest and fastest growing international food joints in India.

Dominos Pizza India outlets can be seen in all major locations in the country. Dominos India is

expert in delivering tasty pizzas on time. The eating joints and outlets also offer very good

ambience. If you have the habit of enjoying hot and instant pizzas then it’s always better to enjoy

the taste at a Domino pizza outlet in the country

Much like the soft elastic dough used as the foundation for which their mainstay product is built,

Domino’s Pizza has shaped their marketing strategy into a juggernaut that has enjoyed nearly

half a century of success. Currently a market follower—second only to Pizza Hut—Domino’s

longevity and rapid rate of growth is due largely to their ability to establish, maintain, and remain

true to their original marketing mix. Domino’s success, however, is due to the fact that they have

been able to differentiate themselves on a very crowded playing field.

Most companies, at least the successful ones, concentrate on the four Ps that compose their

marketing mix. Albeit product, price, place, and promotion are the cornerstone of many

marketing strategies—Domino’s Pizza has leveraged the four Cs, or consumer’s viewpoint, to

establish their marketing mix. Customer solution, cost, convenience, and communication are

considered each time Domino’s Pizza introduces a new product or initiates a new promotion.

In the early years of business, pizza was the only item on the menu at Domino’s. Side items were

never considered to be a part of the menu. Remaining sensitive to competitors and allowing

competition to affect product pricing is a classic trait of a market follower (Kotler & Anderson,

2008). Domino’s was eventually forced to add medium and extra large sizes to remain

competitive.

Domino’s Pizza has chosen a market follower strategy. Product, one of the four Ps of the

marketing mix, is an area where the market leader continues to influence Domino’s. Competition

forces changes to the market followers. The first change to the product offering at Domino’s

happened almost three decades after they opened. In 1989, Domino’s Pizza introduced a deep-

dish pizza (Laukens, 2010). While it would stand to reason that the new addition to the menu

was an answer to a competing product, Domino’s had entered a market where deep-dish was the

only acceptable version of a pizza.

Market research had revealed that Domino’s market demographic was culturally diverse.

Domino’s responded by adding several other variations of the basic pizza. Hand tossed and thin

crust pizzas were added to the menu to satisfy demand in specific market areas and remain

competitive. Domino’s keeps a watchful eye on the consumer reaction to specific product and

pricing. The ability to see their company from the buyer’s viewpoint is a significant advantage

for any company.

Domino’s Pizza listens to feedback from the consumers, and at the same time occasionally

glances over the shoulder of their competition for inspiration and influence. From the customers’

feedback and buying habits, Domino’s is able to glean information to help influence direction.

Domino’s strengths, weaknesses, opportunities, and threats have changed many times over. The

entire pizza industry has evolved into a highly competitive array of corporate giants. And yet, it

remains important to perform a SWOT analysis as often as possible.

Domino’s strengths include their ability to remain unscathed, although influenced, by their

competition. Moreover, their visionary approach to creating a better consumer experience by

developing better manufacturing methods is at the foreground. Hard work, persistence, and

thinking outside the pizza box have been Domino’s formula for success. Although not the market

leader, Domino’s Pizza is recognized as the leader of innovation. The pizza industry is crowded

with businesses trying to outdo one another with a product that is not well received if strayed too

far from the original. Domino’s decided to create a value proposition beyond the product. Tom

Monaghan’s goal of perfecting the pizza delivery was tested when Domino’s once again raised

the bar. In 1986, Domino’s Pizza created a slogan and spawned an aggressive advertising

campaign in an attempt to differentiate themselves from other pizza businesses.

Taking advantage of an impatient consumer base, Domino’s touted, “you get fresh, hot pizza

delivered to your door in 30 minutes or less—or it’s free.” Competition scrambled to find an

answer, but without the automation invented and deployed by Domino’s it would be impossible.

Domino’s was the first to use a production assembly line method for producing pizzas. A belt-

driven pizza oven produced a continuous stream of pizzas allowing the manufacturing and

delivery process to become manageable, and for the most part—predictable.

Domino’s rode the wave of success for many years. Convenience for the consumer was a definite

advantage. During this time, Domino’s Pizza opened several thousand new franchises and was

taking over the market. Then as quickly as the innovative wildfire had spread, it was

extinguished. One important attribute of a good company is the ability to learn from past

experiences and change with the times. Domino’s quickly recognized a need to innovate, and

once and for all solve the problem of cold pizza delivery. This time, however, Domino’s Pizza

would show the world that they are the trendsetters from which all others grasp firmly the

coattails.  Crisper crust, bubbling cheese, and hotter topping were the new promise spoken loudly

in Domino’s advertising. This was made possible by their invention of the HeatWave® bag. This

new technology, and the creative marketing, caused Domino’s competition to sweat. Once again,

Domino’s became consumer centric and focused on a better customer experience as opposed to

getting caught up in product and pricing battles.

Chicken wings and various deserts were added as an answer to a competitor’s advantage.

The final element in a SWOT analysis is the identification of threats in the market. Every

competitor is recognized as a threat. Becoming too diverse with the product offering can also be

perceived as a threat. In both cases, it is wise to understand the cause and effect associated with

adding product, making marketing promises, and expanding into too many markets. There will

always be a tipping point from which recovery is futile.  A bad customer experience is no longer

shared between a close-knit group of family and friends. Blogs can influence buying decisions

and become a threat to the Domino’s brand.

Domino’s marketing team used a proactive approach to thwart permanent damage. Quickly

realizing the extent of the damage and the affected demographic, Domino’s created a Twitter

account to handle the customer comments and introduced their own video featuring an

explanation and public apology from the CEO. Domino’s ability to quickly adapt to a changing

society afforded them the opportunity to devise a damage control plan and dilute a potentially

devastating situation.

Domino’s product pricing is competitive with others in the industry. Campaigns and promotions

are designed to not only attract new customers, but also to retain existing ones. Over 8000

locations promise convenience for Domino’s consumers. It is difficult to find an area not

identified serviced by a Domino’s Pizza franchise. Currently, Domino’s is positioned firmly

within the market true to their original intention.

Consistency in products between franchises, reading the pulse of the consumer, and setting the

pace for all others to follow is at the core of Domino’s success. The future will depend greatly on

the ability of Domino’s marketing team to remain proactive, centered, and focused on the

customers’ needs. It will always be important to realize shifts in the target market and leverage

new opportunities to expand their customer base.

Responsible growth Delivering More Than Just Pizza  While Domino’s stores do need A5 planning consent, we are very different from many of

the other takeaways on the high street.

All Domino’s products are freshly prepared and baked in an oven. Our stores do not

include fryers.

Much has been made in recent months about the location of hot food takeaways in

relation to local schools. As a company, we are happy to work with local authorities to

help them achieve their objectives through robust but fair planning conditions. We

already have several sites with a condition on the planning consent that means the shop

can only sell pizza and ancillary products.

Other issues that frequently arise in planning applications include concerns around litter,

anti-social behaviour, traffic problems and smells. Around three quarters of our orders

are for delivery to our customers’ homes, which avoids people congregating in the store

and means there is no risk of litter. In a Keep Britain Tidy survey in 2009, carried out in

10 UK cities, not one piece of Domino’s branded litter was found.

The nature of pizza also deters the product from being eaten in the street because of the

size, temperature and consistency, which again reduces the instances of litter being

irresponsibly discarded when the product is eaten.

We are happy to work with highways officers to ensure there is adequate parking and

access for our delivery vehicles and we will always act in a responsible manner in terms

of reducing the noise from our drivers and vehicles. As a result of these measures, we do

not have an adverse impact on the neighbouring properties.

The nature of our product leads to the smell from a Domino’s store being more akin to

that of a local baker and, in addition, we use a very high specification of ventilation and

extraction.

A Domino’s Pizza store is an addition to the local community. We offer well-run

businesses, providing employment and structured career paths for local people, as well as

support for the local community.

At Domino’s Pizza we are happy to discuss any concerns local authorities might have, in

advance of the planning process, and in many cases we can accept planning conditions

that would be untenable for many A5 operators.

AWARDS

Human Resources Awards

The Images Most Admired Retailer of the Year: Foodservice. This award has been bestowed

by Indian Retail forum at the 8th annual Images Retail Award.

Mr. Basab Bordoloi won HR leadership award in Asia’s Best Employer Brand Awards - 2010

by World HRD Congress.

Mr. Basab Bordoloi won "Most Powerful HR Professional of India" award in Asia’s Best

Employer Brand Awards - 2010 by World HRD Congress.

Jubilant FoodWorks Ltd won the award for ’Continuous Innovation in HR Strategy at work’ in

Asia’s Best Employer Brand Award - 2010 by World HRD Congress.

Ranked 9th Best Employer 2009 in India in Hewitt’s Best Employers survey 2009.

Ranked amongst the top 25 best employers across Asia pacific market, which includes

Australia/New Zealand, China, India, Hong Kong, Malaysia, Korea & Singapore, in Hewitt’s

Best Employers survey 2009.

Best employer in Retail and 3rd best employer in Services category in India - Hewitt’s Best

Employers survey 2009.

HR leadership award - 4th Employer Branding Award 2009 - 10

Regional Best Employer in hospitality by the "World HRD Congress" in 2009-10.

FUN @ Work award by the "World HRD Congress" in 2009-10

Highest employee engagement score amongst the "best companies" in BT-TNS-MERCER’s

"Best companies to work" in India survey.

Featured as "Fun place to work for" by Outlook Business in 2010.

Marketing Awards

Top 10 Marketers in 2010 for Marketing Ingenuity, Innovation and Impactful

Launches awarded by Financial Express

Jubilant FoodWorks Ltd won the award for "Brand Excellence in service / hospitality

industry" in CMO Asia awards by CMO council.

2010- Won the Golden Spoon Award for the ’Most admired FnB retailer of the year- QSR

foreign brand

2009 - Domino’s won the top 25 Marketers of 2009 award presented by a leading Marketing

Journal Pitch and exchange4media

2009 - Recognized as one of the 10 brands that have changed the consumer behavior and set

new trends in last decade, presented by Brand reporter & agency faqs

2006 - Marketing Excellence Award from Domino’s International for the best new product

launch - Cheese Burst Pizza

2005 - Silver Effie Award.

Customer Services Award

Franchise Awards 2009 for Best Customer Services presented at Asia’s largest Franchise Expo

- Among other initiatives by us the one that stood out was our honouring of ’30 minutes or

free’ service guarantee

DOMINO´S PIZZA INDIA - International Operations Awards

Domino’s Pizza India won the GOLD FRANNY award for the fastest growing Domino´s

franchisee in world for 3 consecutive times - 2006 2007 & 2008, presented by Domino’s Pizza

Inc.

2008: Dominos Pizza India won 1 International and 2 Asia Pacific awards

’Trainer of the year’ - Domino’s International.

’Supervisor of the year’ - Asia Pacific

’Rookie Manager of the year’ - Asia Pacific

2007: Dominos Pizza India won 1 International and 3 Asia Pacific awards

’Supervisor of the year’- Domino’s International.

’Rookie Manager of the year’ - Asia Pacific

’Manager of the year’ - Asia Pacific

’Trainer of the year’ - Asia Pacific

2006: Dominos Pizza India won 1 International and 2 Asia Pacific awards

’Manager of the year’ - Domino’s International.

’Supervisor of the year’ - Asia Pacific

’Rookie Manager of the year’ - Asia Pacific

2004 / 2005 / 2009 Franchise Award - Award for Excellence in Franchising and Business

Development. Domino´s Customer Service Food and Beverages

2006/2007/2008 Distinguished Achievement Award of the International Franchising

Association presented to Domino´s Pizza India

CEO Awards - Ajay Kaul (CEO India Subcontinent - Domino´s Pizza India)

Mr. Ajay Kaul won CEO with HR Orientation in Asia’s Best Employer Brand Awards - 2010

by World HRD Congress.

2010- Golden Spoon Award - Most Admired Food Professional Of The Year In Food And

Beverages

2009- Star Youth Achievement award