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.
Kotler, P. (2013). Marketing. Frenchs Forest, NSW: Pearson Australia.