Domino’s Pizza's Marketing Strategies

CASE STUDY DOMINO’s

REQUIREMENTS: 2 PAGE WRITTEN CASE ANALYSIS PAPER (12 PT FONT, DOUBLE SPACED).  4 CITED REFERENCES.

TEXTBOOK REFERENCES:  MARKETING: REAL PEOPLE, REAL CHOICES, 9/E, Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart

Publisher:  Pearson Copyright:  2018

1) GIVE A BRIEF SUMMARY OF THE CASE THEN ANSWER THE FOLLOWING QUESTIONS.

2) WHAT IS THE DECISION FACING FACEBOOK?

3) WHAT FACTORS ARE IMPORTANT IN UNDERSTANDING THIS DECISION SITUATION?

4) WHAT ARE THE ALTERNATIVES?

5) WHAT DECISION)S) DO YOU RECOMMEND?

6) WHAT ARE SOME WAYS TO IMPLEMENT YOUR RECOMMENDATIONS?

 Marketing in Action Case Real Choices at Domino’s

Pizza is big business. Americans spend over $40 billion on pizza every year. With more than 59,000 U.S. stores that sell and deliver pizza, customers have lots of options from which to choose. Dominos wants more and more of them to make Domino’s their only pizza delivery store.

In 1960, with a $500 down payment and $900 borrowed, Michigan-based brothers Tom and James Monaghan, purchased a small pizza store called DomiNick’s. Soon after that, James sold his half of the business to Tom, who in 1965 renamed the company Domino’s Pizza, Inc. For the next two decades, the company continued to grow and in 1983 opened its 1,000th Domino’s store and its first international store in Winnipeg, Manitoba, Canada. In 2010 Domino’s Pizza’s celebrated its 50th anniversary and opened its 9,000th store worldwide. Today it has almost 12,000 stores including those in 80 international markets with global sales in 2014 of $89 billion. This success has led to the company to consistently being ranked in the Top 10 in Entrepreneur magazine’s annual listing of great franchise opportunities.

Recently, growth of the retail pizza industry has slowed because of intensified competition from other types of restaurants and an increased level of consumer demand for healthier food choices. In this market, where there is little room for growth, Domino’s must give current customer reasons to stay loyal and persuade potential customers to give them a try.

Domino’s spends the majority of its $100 million-plus advertising budget on traditional television ads. The message of the recent “AnyWare” campaign is that you can use any device to place your Domino’s order whether via text, tweet, TV, or smartwatch. The individual commercials highlight different celebrities showing how easy it is to order food using their favorite devices. Eva Longoria orders a pizza using her TV remote, Sarah Hyland, an actress on Modern Family, texts her order with a pizza emoji, and The Avengers actor Clark Gregg orders by tapping on his smartwatch.

Following the AnyWare campaign, Domino’s latest advertising campaign is not even about pizza—it’s about the specialty “delivery expert” car, the DXP. The DXPs are refashioned Chevrolet Sparks that come equipped with a working “warming oven” in the rear of the car. The cars can hold 80 pizzas per trip as well as a large number of drinks, side items, and other delivery products. According to Dominos, “the DXP comes equipped with a puddle light projecting the Domino’s logo on the ground. The front fascia displays the Domino’s logo, and the side panel displays the reflective graphic of the Domino’s brand. Other details include hubcaps with the Domino’s logo and the recognizable illuminated Domino’s car topper.”

The humorous DXP ads mimic auto advertising. In one, the little delivery car races across the desert, in another, a guy in a white lab coat talks about the features of the car and another promotes a $5.99 pizza deal with 0 percent APR for an unlimited time. The message that Dominos hopes consumers get is that everything Dominos offers—from emoji orders to a delivery vehicle—improves the pizza ordering process. Of course, there’s no guarantee that the DXP ads can have a positive impact on sales, that they can convince consumers to make Domino’s their first and maybe only option.

Question?

1. 13-34. What is the decision facing Domino’s?


2. 13-35. What factors are important in understanding this decision situation?


3. 13-36. What are the alternatives?


4. 13-37. What decision(s) do you recommend?


5. 13-38. What are some ways to implement your recommendation?