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Executive Summary 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
8 worldwide. Domino's had global retail sales of over $7.4 billion in 2012, comprised of 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. Focus on Technology From April 2011 to April 2012, Dominos reached an impressive $2 Billion in US digital from its apps on platforms such as Kindle Fire, Android, Windows 8 phone, and iPhone which now cover nearly 95% of the U.S. smartphone market. Digital sales, which include mobile and computer ordering, now make up 40% of all Domino's sales, an increase from 30% in 2012. 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. Situational Analysis Strengths of the Organization Dominos Pizza is the second largest pizza chain in the United States and the world leader in pizza delivery, with more than 10,000 corporate and franchised stores in over seventy countries (Corporate). Furthermore, Dominos Pizza has been the recipient of Pizza Today magazines Chain of the Year award three times back to back in 2010 and 2011 (Corporate). Over the years, Dominos has launched many industry innovations to keep them at the top of the ladder, namely the HeatWave bag, Dominos 1
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Opportunities in the Environment An opportunity for Dominos pizza is social media exposure. This exposure can generate more attention from the target market as they are the most likely to be represented on social media websites. Threats in the Environment Some threats for Dominos Pizza include the fact that some of their products, specifically their sandwiches and desserts, may not seem healthy especially to a health-conscious consumer. As of now, economic setbacks such as wage increases have affected Dominos Pizza because some British employees have been complaining about poor wages (Karphal, 2013). Competitor, and current industry leader Pizza Hut, offers many of the same products as Dominos. The company must determine the most effective method to set its products above its competitors. Market Analysis The pizza restaurant industry is continuing to rise at a rate of about 1.6% (Barrett, 2012). Pizza Hut, Dominos Pizza, and Papa Johns rank first in sales and unit counts among all the different chains (Barrett 2012). The pizza industry is a $40 billion industry that makes up approximately eleven percent of all restaurants in the nation (Franchise, 2013). Ninety-three percent of Americans eat at least one pizza per month in the nation (Franchise, 2013). The trend with Americans now is to move toward take out and 2
Fortunately for Dominos, its emphasis on new technology has helped to push the introduction of Dominos ordering apps for iPhone, Android phones, Windows 8, and the Kindle Fire, which now cover nearly 95 percent of the US smartphone market (Corporate).
As demonstrated in the chart above, Pizza Hut leads the pack with 10.9 million likes, Dominos takes second place with about 8.8 million likes, Papa Johns is third with about 2.6 million likes, while Little Caesars is fourth with 1.6 million likes. An article entitled Top American Pizza Brands in social media illustrates more in detail the different pizza brands and how consumers view each their respective Facebook pages. With respect with the other social media websites, Instagram and YouTube, here are the results:
Little Caesars
Pizza Hut
Domino's
5,000
10,000
15,000
20,000
As you can see here, Pizza Hut again leads in this social media category with 3,213 YouTube subscribers and 19, 753 Instagram followers. Dominos trails behind Pizza Hut with only 3,179 subscribers and 5,695 followers. Papa Johns was not accessible on these sites so they do not have any representation in the above chart. Lastly, with Twitter, here are the results:
Twitter followers
Little Caesars Papa John's Pizza Hut Domino's 0 200,000 400,000 600,000 800,000 Twitter followers
Pizza Hut boasts 650,300 followers; Dominos has 428,049 followers; Papa Johns has 169,296 followers; and Little Caesars has 25, 209 followers. It is important to analyze the findings of each of these pizza 5
Target Audience 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.
Product Analysis Dominos Pizza was long recognized for its inferior taste and quality. 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.
Marketing Campaign 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. The three parts of the campaign are as follows: 1) increase online advertisements about the app technology through Facebook and YouTube; 2) create a national pizza game with the primary goal being
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1. Bodnar, Kipp. (2010). B2B Social Media Lessons from Dominos Pizza Turnaround Campaign.
Retrieved November 28,2013 from http://socialmediab2b.com/2010/01/dominos-pizzaturnaround-campaign/
2. 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-fordominos-pizza-ceo-patrick-doyle-outlines-some-goals/.
5. 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-backsinnovation-with-the-powered-by-pizza-campaign.
6. McPhillip, Vincent. (2013). Dominos Pizza (DPZ). Retrieved November 29, 2013 from
http://www.wikinvest.com/stock/Domino's_Pizza_(DPZ)
7. Kretzmann, David (2013) Why Dominos Digital Component is Important Retrieved December
10, 2013 from http://www.dailyfinance.com/2013/12/10/why-dominos-digital-component-isimportant/
8. About Dominos Pizza (2013) Retrieved December 11, 2013 from http://dominosbiz.com/BizPublic-EN/Site+Content/Secondary/About+Dominos/Fun+Facts/
9. Gayle King chats and takes calls about our #newpizza (2010) Retrieved December 11,
2013 from http://pizzaturnaround.com/2010/02/gayle-king-chats-and-takes-calls-about-ournewpizza/
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