Domino Marketing Plan
Domino’s Pizza Marketing Plan
I. Executive Summary
Domino’s Pizza’s strong financial performance during 2006 and into 2007 has given the company a significant amount of flexibility and freedom given the increased revenues and earnings in defining its strategies for the future. For continued growth however Dominos has to reduce customer churn, drive up same-store sales, continually reinforce and strengthen their brand, capitalize on the sociocultural shifts occurring in the United States and elsewhere, and finally continually redefine its in-store dining strategies relative to the growing rise of online sales. What is remarkable about Domino’s approach to marketing is the 14.6% same-store growth the company has achieved from 2001 – 2005 according to JP Morgan (2006). This is nothing short of phenomenonal.
Lesser competitors have higher in-store and same-store sales than Domino’s, and also have a broader mix of lunch and dinner alternatives. In addition, according to Roper (2005) 58% of American households are willing to try a new dinner alternative relative to cooking or ordering out. Compounding this is the fact that 73% or 3 out of every four households by 4:30pm have not decided what will be served for dinner according to JP Morgan (2006). These two insightful figures provide a glimpse into how volatile the quick-service restaurants (QSR) marketplace is.
Clearly the use of up-sell, cross-sell and incentives to drive up same-store sales is critical in this market, as is the continual growth and focus on the brand globally, finally with a focus on innovation. These are the three most critical marketing strategies for Domino’s today. II. Situation Analysis
Today Domino’s is the leader in the delivery segment of pizza sales in the U.S., second only to Pizza Hut in total pizza sales, as this competitor has 4,000 Red Roof restaurants with over 100-person seating capacity. Domino’s strength in delivery is evidenced by the fact that the company
I. Executive Summary
Domino’s Pizza’s strong financial performance during 2006 and into 2007 has given the company a significant amount of flexibility and freedom given the increased revenues and earnings in defining its strategies for the future. For continued growth however Dominos has to reduce customer churn, drive up same-store sales, continually reinforce and strengthen their brand, capitalize on the sociocultural shifts occurring in the United States and elsewhere, and finally continually redefine its in-store dining strategies relative to the growing rise of online sales. What is remarkable about Domino’s approach to marketing is the 14.6% same-store growth the company has achieved from 2001 – 2005 according to JP Morgan (2006). This is nothing short of phenomenonal.
Lesser competitors have higher in-store and same-store sales than Domino’s, and also have a broader mix of lunch and dinner alternatives. In addition, according to Roper (2005) 58% of American households are willing to try a new dinner alternative relative to cooking or ordering out. Compounding this is the fact that 73% or 3 out of every four households by 4:30pm have not decided what will be served for dinner according to JP Morgan (2006). These two insightful figures provide a glimpse into how volatile the quick-service restaurants (QSR) marketplace is.
Clearly the use of up-sell, cross-sell and incentives to drive up same-store sales is critical in this market, as is the continual growth and focus on the brand globally, finally with a focus on innovation. These are the three most critical marketing strategies for Domino’s today. II. Situation Analysis
Today Domino’s is the leader in the delivery segment of pizza sales in the U.S., second only to Pizza Hut in total pizza sales, as this competitor has 4,000 Red Roof restaurants with over 100-person seating capacity. Domino’s strength in delivery is evidenced by the fact that the company
References: Domino’s Market Research (2005) – From the 2005 Analyst Day Presentation Accessed from the Internet on February 22, 2007 from location: http://media.corporate-ir.net/media_files/irol/13/135383/presentations/DPZ_InvDayAll.pdf JP Morgan (2006) – Domino’s Pizza Inc. JP Morgan Consumer & Retail Holiday Conference Presentation. From the Investor’s Section of the Domino’s website. Accessed from the Internet on February 22, 2007 from location: http://library.corporate-ir.net/library/13/135/135383/items/225605/InvestorPresJPMorgan.pdf [pic] March, 2005 investor presentation given by Domino’s CEO – Downloaded from the Investor’s Section of the website on February 22, 2007 from location:: http://media.corporate-ir.net/media_files/irol/13/135383/presentations/DPz_052506.pdf Roper (2005) – Roper Starch Worldwide Market Research. Bakery and Pizza Goods Market Analysis, 2005. From a press release at Pizza Marketing Quarterly: http://www.pmq.com/industrynews.shtml accessed from the Internet on February 22, 2007. Roper (2006) – Roper Starch Worldwide Market Research. Bakery and Pizza Goods Market Analysis, 2006. From a press release at Pizza Marketing Quarterly: http://www.pmq.com/industrynews.shtml Accessed from the Internet on February 22, 2007. ----------------------- Diagram 1: Porters’ Five Forces Model