Domino’s Pizza: Develop Marketing Mix Strategies to Ensure a Value Offering for the Target Market You Identified in the Previous Assignment.
Domino’s Pizza, Inc was founded in the year 1960 as a small company which has grown to be a giant in the industry. The headquarters of the corporation is located at the Domino’s Farms Office Park, found in the Ann Arbor, Michigan. The incorporation of the company was done in Delaware. The company boasted of being the largest pizza sales globally. The restaurants have several branches in $13, 811 locations worldwide. The products sold include pizza, pasta, chicken wings, dessert, and submarine sandwiches. Domino’s pizza has a revenue of 2.47 billion, and it has an operating income of $454.04 million. The company has a net income of $214.68 million with the assets totaling $716.30 million. This paper focuses on creating offerings based on the features, benefits, price, and cost of ownership as well as the type of consumer offering (Veil, Sellnow, & Petrun, 2012).
Marketing strategy implications
The marketing strategy put in place by Domino’s pizza is working for the company because it is increasing the number of stores and the market share at a very high rate compared to the competitors. The company was struggling to compete with Papa John’s and Pizza Hut. The executives at the company put in place some strategies that turned around the fortunes of the company in the market (Veil, Sellnow, & Petrun, 2012). It is a relatively inexpensive luxury, something that has made it easier for the company to flourish in emerging markets such as China and Brazil. Its growth has also been seen in Turkey, India, and Japan. The marketing department works together with the production department to meet the needs of the clients in the market. The sales have soared since the company comes up with a new pizza recipe in the year 2009. They capitalized on the marketing strategy that demands that they have a good core product. Most of the clients are attracted to the company as a result of its core product. The company has also innovated the pasta, sandwiches as well as the side dishes. The average ticket sale at Domino’s has been driven up by the “Specialty chicken” strips that are being ordered together with pizza. The improvement of the menu has also played a big role in ensuring that Domino’s succeeds over its rivals. The company also invests inefficient in staff to ensure that they improve the sales of the company. They employed the Marketing Guru Russel Weiner who came from Pepsi six years ago. Weiner came up with the self-deprecating marketing strategy that has met the need s and the demands of the clients hence improving the amount of profit that has been made by the company. Domino’s admitted that its pizza was not the best, so they came up with several measures to improve the profits of the company (Solis, 2018).
Tangible and intangible aspects
Some of the tangible aspects of the company include assets such as cash, vehicles, equipment, buildings, inventory as well as the investments. The intangible aspects, on the other hand, do not exist in physical form, and they include pre-paid expenses, goodwill, and the account receivables. The tangible and the intangible aspects work together to improve the profitability of the company in the marketplace. Many advantages can be attributed to the tangible and intangible aspects (Sheehan, 2014). The company uses both of them to the benefit of the organization and the increase in profitability.
Domino’s pizza provides specialty offerings to the people in the market. They are important in the success of the company in the marketplace as it seeks to advance the market share in the organization. The specialty offerings serve to improve the market share of the company in the market as they try their best to outdo their opponents. The marketing of the specialty goods helps a company to build a brand name and recognition of the clients and providing and the key differences of the products that are being offered in the market. Some people will go by the pizza only because it came from Domino’s pizza and they have confidence in the brand (Moynihan, 2003)
Marketing mix
Domino’s is famous for its quality and fresh pizza that has been prepared with the customer satisfaction in mind. The company has designed high-quality boxes that are meant to keep the contents warm and fresh.The company offers products for both vegetarians and non-vegetarians in the market. Domino’s has localized the flavors as a way of seizing the market and ensuring that they keep as many clients as possible to their side. The quality of the product, it’s packaging, and presentation to the clients has played an essential role in attracting the clients to the brand. Domino’s pizza comes in three different sizes which are large, medium and small (Bhat, Reddy, & Mandanna, 2018).
Domino’s targets the lower middle class as well as the middle-class income group. It has a motto of providing the best quality products with reasonable pricing. They also make sure that their prices are checked by having a uniform and consistent pricing policy. The base price is therefore reviewed, enabling the company to attract the clients. However, Domino’s rates are higher compared to KFC and McDonalds. Special discounts are provided regularly, something that makes the clients to be attracted to the company. The quality of the products is also high meaning that the people have value for their money (Bhat, Reddy, & Mandanna, 2018).
Domino’s delights in maintaining a direct channel with the clients. The clients order for the products directly, and the pizza is delivered at their doorstep. The company has also given the company an option of placing an order through the company’s official website. In the case where the pizza does not reach the client for thirty minutes, then the client does not have to pay for it. The company does not charge the clients for the delivery of pizza to the different destinations in the country. The free delivery plays an important role in lowering the prices and satisfying the clients (He, Zha, & Li, 2013).
The company has achieved a higher market share because it has managed to maintain a direct link with the client. The management of the company, therefore, gets the much-needed feedback from the clients. It has a good policy of door to door deliveries. The existing and prospective clients are aware of the fact that Domino’s will deliver the product within thirty minutes which is one of the most important promotional strategy used to attract the clients. Their sales depend on the marketing strategy and the ability of the delivery boys to provide the products to the clients on time. Domino’s observes the competitors closely as they work to improve their market share. They also address their strengths and weaknesses. One of the milestones that Domino’s pizza has achieved is the ability to deliver the product on time, something that the competitors are unable to do. Domino’s always comes up with the new strategies of promoting their products to the clients. The delivery is always free of charge, and there are circumstances where the company offers a 50% discount for the second pizza that has been bought. The company has also utilized the visual media as a communication tool that ensures that the clients get more information about the product (Sheehan, 2014).
Domino’s pizza has done its best to ensure that it is competitive in the market. There are many lessons that the other companies can learn from the brand to ensure that they provide the best services to the clients and they can increase their market share. Marketing strategies are an essential part of an organization which means that all the brands should be careful with the marketing strategy that they use.