The business was founded in the 1960s in America as a fast food company that specialized in the delivery of pizza. The company was founded by two brothers, Tom and Monaghan after they purchased Domi-Nicks pizza store in Michigan. Over the years, the company has grown to be one of the leading fast-food companies in the US. Currently, it has over 13,800 franchise stores that are operated by about 900 franchisees (Domino’s, 2016). The company also participates in community social responsibility programs within its environment. In particular, the company has the Partners Foundation, which is a nonprofit making organization (Domino’s, 2016). This NGO assists members of the team when they have special needs such as a natural disaster, work related accidents, unexpected afflictions or any other emergency that can arise.
The company believes in assisting its employees to improve the social and economic situation and overcome any emergencies that they may face. Since its formation, the company has issued over $6 million to its not well off employees. Generally, this assistance is provided through the Partners Foundation. In terms of culture, the company has an inclusive culture (Domino’s, 2016). In this case, the company accepts individuals from different societies as its employees, team members, or suppliers.
With regard to the company’s financials, the company’s shares have been trading highly in the recent past. Currently, its stock is trading at $192.29 per share (Domino’s, 2016). According to Dominos, its main reason for success is its advertisement and continued culture of offering high quality goods and services. Nonetheless, the company faces risks of litigation form employees, suppliers, and franchises due to cases on claims for compensation, vehicle accidents, and accidents that occur in the delivery of foods. Of major concern, Dominos has a challenge on its future existence due to its inability to attract and retain skillful employees (Domino’s, 2016). This problem can hurt the business and affect its ability to grow and make profits in the long-term.
Since Domino’s has franchises from all over the world, exchange rate differences pose a major challenge to the company. Basically, global economic factors such as a recession or an expansion in the global economy can result in the company making huge profits or losses. In addition, the differences in by-laws and employment requirements in various countries makes it difficult for Dominos to have a uniform set of laws and regulations for all employees.
An analysis of Dominos’ store shows that the company has become competitive mainly due to its ability to minimize its operational costs and increasing its advertising and marketing efforts. Generally, the company ensures that all its retail shops are spacious and attractive, In addition, it always ensures that its retail businesses are established in strategic openings where they are easy to locate and that exemplify the company’s brand.
The current high performance of the company, both in terms of profits as well as a high price for the company’s shares indicate that the business has been excellent in its overall performance. Generally, this is an indication that the marketing efforts of the company have been successful in enabling it to attract more customers. In addition, it also shows that the company has been prudent in the use of its finances and has implemented measures that minimize on the wastage of resources.
Task 2b – Reflection Report: Domino’s Pizza
In reflection, it is quite evident that Dominos has effectively employed the theoretical concepts of marketing management to become the market leaders in the Pizza industry. An analysis of the firm’s operations reveals that it has developed an intricate marketing mix in the various aspects of product, place, promotion, and price. The distinctive strategies employed in each of the 4p’s all work together to achieve a common goal. Important to note is how the firm has been able to achieve the normally conflicting strategies of product quality and competitive pricing. Conventionally, firms that focus on product quality normally adopt the premium pricing model as the high profit margins associated with the model are used to cover the high costs associated with product quality. However, Domino’s has been able to exploit the economies of scale due to its size and thereby achieving using the associated cost savings and high profits to cover the expenses of maintaining product quality.
An analysis of the Domino’s case study brings to light how theoretical knowledge is practically applied in the corporate world. Domino’s exhibits a practical example on how to market the firm’s product’s effectively. The core of the marketing strategy is the marketing mix, which is the combination of the aspects of price, product, promotion, and place (Kotler, 2013). In accordance with the class discussions and notes, it is evident that the firm has adopted all three factors of the marketing mix in its operations. The product in the firm’s marketing mix comprises of both the quality and fresh pizzas and the splendid packaging. The packaging is specially designed to ensure that the pizza’s fresh and hot when delivered to the customers. Additionally, the firm has attempted to cater for the various customer groups by offering non-vegetarian and vegetarian varieties. Additionally, the pizzas are offered in a wide variety of sizes ranging from small, medium, and large. The wide product ranges enable the company to best meet the needs of its target market and consequently guaranteeing satisfaction.
The pricing strategy of the firm’s products is mainly based on its target market. Domino’s mainly focuses on customers from the middle class and lower middle class income groups (Llanas, 2015). The main credo is to provide quality products at competitively low prices. However, such a pricing strategy is quite challenging to accomplish given that the delivery of quality products is normally associated with high operational costs. On the other hand, it possible to provide quality products at low prices provided that the firm is able to leverage on other aspects such as economies of scale. As one of the leading firms in the industry, and operating in the global market, the firm is able to leverage on economies of scale such as bargaining on its purchases and maximizing on the profits associated with high sales volumes.
In terms of place, the firm maintains a direct channel with its main customers. The various outlets make arrangements of outside catering where the products are delivered directly to the customer at their convenient locations. Moreover, customers are also able to remotely place their orders using the company’s website or through a phone call. As part of its promotion strategy, the company maintains direct contact with its customers. The pizza delivery services enable the company to not only deliver quality products but also interact directly with the customers. Quality service delivery is key to word of mouth promotion that has enabled a wide percentage of the market to become aware of the firm’s activities. Moreover, the company employs other promotional avenues such as sales discounts to develop and strengthen a loyal customer base.
Domino’s. (2016). About Domino’s. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=135383&p=irol-IRHome
Kotler, P. (2013). Marketing. Frenchs Forest, NSW: Pearson Australia.