Rising obesity and health awareness among the consumers

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Table Of Contents:
EXECUTIVE SUMMARY …………………………………………………………………………………………………………………..2
SITUATION ANALYSIS……………………………………………………………………………………………………………………..3
INDUSTRY/MARKET ……………………………………………………………………………………………………………….3
COMPETITION …………………………………………………………………………………………………………………………4
SUPPLY CHAIN………………………………………………………………………………………………………………………..5
CUSTOMER………………………………………………………………………………………………………………………………5
COMPANY ……………………………………………………………………………………………………………………………….7
EXPANDED SWOT ANALYSIS …………………………………………………………………………………………………………9
STRENGTHS ……………………………………………………………………………………………………………………………9
WEAKNESSES …………………………………………………………………………………………………………………………9
OPPORTUNITIES ……………………………………………………………………………………………………………………..9
THREATS …………………………………………………………………………………………………………………………………9
STRATEGIES TO MAXIMIZE STRENGTHS AND OPPORTUNITIES ………………………………………..9
STRATEGIES TO MITIGATE WEAKNESSES AND THREATS …………………………………………………9
RECOMMENDATIONS ……………………………………………………………………………………………………………………..9
SUMMARY ………………………………………………………………………………………………………………………………9
TARGET MARKET …………………………………………………………………………………………………………………10
OBJECTIVES ………………………………………………………………………………………………………………………….10
MARKETING STRATEGIES ……………………………………………………………………………………………………11
REFERENCES ………………………………………………………………………………………………………………………………….12
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1. EXECUTIVE SUMMARY:
The US foodservice market is estimated to reach USD 731.8 billion by 2024, witnessing a CAGR of 3.7%,
during the forecast period (2019 – 2024). Increasing digitalization, rising obesity and health awareness
among the consumers are affecting the market growth. Trends emerged in foodservice industry like growth
of vegan, vegetarian, and eco-friendly movements and technological level have been impacted on changing
foodservice. Domino’s faces legal/regulatory issues sines its pizza contains ingredients not allowed in some
countries. thus, that forces Domino’s to adjust its menu to match these countries standard.
Pizza Hut, Little Caesars Pizza and Papa Johns are the major players in the marketplace.
Domino’s Supply chain is divided into three main tiers: Tier1, tier0 and tier 2.
Current customer needs are fair price, good service, good product and feel valued. Their perceptions are
offering delicious pizza at the best prices, deliver pizza in less than half an hour, options suit everyone. Age,
Income and occupation are demographic variables have been used to segment the market. The current market
segmentation strategies are based on demographic and geographic factors. Domino’s have targeted the
families who like to go out for dinner once in a week they also target teenagers of school. Some of its
marketing strategies are strategically located Domino’s outlets, vertically integrated value delivery systems,
decrease the turn-around-time and engage consumers through diverse media channels.
Domains vision is “Exceptional people on a mission to be the best pizza delivery company in the world”, its
mission is “Domino’s Pizza is the Pizza specialist who consistently delights the customer with great taste and
choices in pizza with friendly Courteous team members providing prompt, safe delivery service”. And Its
core competencies are unique global model, unique supply chain model and focused on the core competency
of delivery. And its value proposition is a good hot pizza delivered to your door within 30 minutes of
ordering, at a moderate price.
Marketing mix Domino’s: Product, it sells products with a lot of variety and under 5 broad categories. For
promotion, Domino’s uses multiple media channels. For place, it sells its products through two marketing
channels. Pricing, current pricing strategy is a competitive based pricing strategy.
Domino’s SWOT analysis: some of its strength is strong brand equity, internal manufacturing and supply
chain system. For weaknesses, its prices high and the menu is limited. Some of its opportunities, are lowcalorie menu. For threats, there are immediate competitors and lack of long-term contracts with key
suppliers. Some of its strategies to maximize strength and opportunities, is to use strong are brand equity and
expand their market. And its strategies to mitigate weaknesses and threats, is Increasing the number of stores
and focus on managing long term relationships with its key suppliers.
The objectives are to build a successful relationship with customers, reinforce the brand image and increase
profits and sales. Target market selection is based on a psychological strategy that varies from person to
person. The new product is a sweet customized pizza, with three different sizes, two types of dough and
added toppings. The promotion will be through advertising, sales promotion and digital media platform.
Chacopizza will sell through two marketing channels, online (weather from Domino’s website or delivery
apps) and from the store. The prices between 15 and 48 SR depends of the size, toppings added. Value and
quality is the way to differentiate and position the new product in the mind of costumers. The suited
promotion strategy to launch the new product (chocopizza) is Pull strategy which directs our marketing
activities toward final consumers. For distribution the best strategy is an intensive distribution. Finally, the
best pricing strategy should Domino’s follow is Value-based pricing strategy with High-low pricing.
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2-SITUATION ANALYSIS:
A. INDUSTRY/MARKET
− Industry/Market size and growth
The US foodservice market is estimated to reach USD 731.8 billion by 2024, witnessing a CAGR
(compound annual growth rate) of 3.7%, during the forecast period (2019 – 2024).
Increased digitalization of food service is among the primary factors driving the market, as consumers find it
comfortable to book prior and make payments online.
Fast food restaurants focusing on organic produce and healthy food are expected to be the focus of the
market in the future.
However, factors, like rising obesity and health awareness among the consumers, are affecting the market
growth, as most fast food products are unhealthy.
− Trends
With the growth of vegan, vegetarian, and eco-friendly movements, many customers are turning away from
traditional protein sources like meat. Instead, they’re looking for veggie-centered main courses as well as
other sources of protein, such as beans, lab-grown meat options, insect protein, and plant milk.
– Describe any of the social, economic, technological, competitive, and regulatory trends/changes that
may be pertinent/relevant to the performance of Industry, both currently and in the future.
At technological level digital menu boards tend they’ve been popular nowadays; it allows restaurant owners
and managers to change their menu regularly to accommodate specials and additions. They also allow
restaurant operators to adjust prices at different times.
On the social side, sustainability and healthy eating become front and center Sustainable operating practices
are now a key focus for businesses across most industries.
People are more health-conscious and far more aware of what needs to be done to keep the planet in good
shape, too. In fact, that it can significantly influence their purchasing decisions.
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Next year, expect restaurants to be transparent about their sustainable operating practices and more than
happy to address the increasing demand for healthy eating and new dietary requirements.
In addition to competing with other restaurants, many foodservice establishments
now have to compete with non-traditional operations, like grocery stores, convenience stores, and gas
stations that are now choosing to offer more robust meals and beverages. Many of these types of
establishments are starting to offer high-quality pre-made and ready-to-order meals that appeal to busy
customers.
– Legal/Regulatory issues
Domino’s pizza has some pizza that contains ingredients not allowed in some countries. For example, most
Muslim countries like Saudi Arabia and Kuwait banning the entry of pork and its derivatives. And Domino’s
menu has pork pepperoni and pulled pork pizza, which contains pork as a basic ingredient. thus, that forces
Domino’s to adjust its menu to match their standard.
B. COMPETITION
– Major players in the marketplace
Top 5 Domino’s competitors:
1.Pizza Hut
2.Little Caesars Pizza
3.Papa John’s
4.California Pizza Kitchen
5. Papa Murphy’s International
– Market shares
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C. Supply CHAIN
− Participants or partners that comprise the Supply chain (i.e., suppliers, distributors, retailers, customers)
Domino’s Supply chain is divided into three main tiers:
Tier1: is comprised of Domino’s key suppliers that ship ingredients to Domino’s distribution centers. and it
is comprised of 16 Domino’s distribution centers that supply all ingredients to each of the stores in the US.
Tier1 supplies the pizza ingredients to Tier 0 who is taking these ingredients and produce a pizza to each of
Domino’s customers.
Tier 2: includes nine Leprino’s food cheese suppliers, three Paradise tomato sauce suppliers, thirty-eight
Ardent Mills flour supplier and two Domino’s thin crust bread and veggie supplier center.
D. CUSTOMER
− Current customer needs/perceptions, demographics and supporting trends
customers’ needs: Fair price, good service, good product and feel valued. which they already provide it.
Perceptions: Domino’s pizza in the perception of customers, offering delicious pizza at the best prices,
deliver pizza in less than half an hour, options suit everyone, and have a long experience in the field of pizza
manufacturing so it is always the best choice.
Demographic: Domino’s have been used demographic variables to segment the market. Another
segmentation process is by breaking the market as follows:
Age:
Below 15 years – 0%
15 – 20 years – 20%
21 – 30 years – 40%
31 – 40 years – 25%
Above 40 years – 15%
Income and occupation:
The companies target audience is the bachelors, youth and the professionals who have no
Upper Class 60%
Middle Class 35%
Lower class 5%
Also, Domino’s has set price to attract the lower class customers. Occupation-self-employed (superior level
peoples), officers executives, junior officers, Executives. Education- professionals.
Gender:
The companies target audience of both gender (female and male).
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Supporting tends: Domino’s Pizza is supported by social media, road advertising, people sharing their
experiences.
− Current market segmentation strategies
Domino’s offers its offer based on demographic and geographic factors. It sets its list when it enters a new
country. Domino’s understands that language changes from country to country and cultures also change, so
the company replaces and offer products according to the country
Also Domino’s follows some strategies:
• Health Conscience parents
Choices of low-fat milk& cheese, fruit, non-fried chicken.
• Variety menu expansion
include salads, locally grown ingredients, low-fat.
• Gluten free
Number of people purchasing has skyrocketed.
• Technology seekers
Appeal to those looking for quick and convenient.
− Current target markets and target marketing strategies
Current target markets:
Domino’s pizzas have targeted the families who like to go out for dinner once in a week they also target
teenagers of school. The spending habits of college freshmen also indicates a high percentage of money
being spent on non-essential items. Domino’s pizza has made delivery services for those customers who like
to have pizzas in their home with their families or friends.
Target marketing strategies:
Strategically located Domino’s outlets and vertically integrated value delivery systems, which had helped
Domino’s to serve its customers in the best way.
Decrease the turn-around-time (TAT), waiting period is the major advantage that Domino’s has over its
competitors.
Expand menu with suitable products desired across market segments.
Engage consumers through diverse media channels that reach them where they live.
platform and focus on items unique to Domino’s brand.
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E. COMPANY
− Vision and/or mission statement of the firm
Vision:
“Exceptional people on a mission to be the best pizza delivery company
in the world”
Mission:
“Domino’s Pizza is the Pizza specialist who consistently delights the customer with great taste and choices in
pizza with friendly Courteous team members providing prompt, safe delivery service”
Description (core competencies) and value proposition
Core Competencies:
Domino’s core competencies have evolved over time. Their unique sets of strengths have helped the
Company dominate the pizza foodservice industry, and a leader in the home delivery/take away.
• unique global model: allows flexibility at the regional level.
• unique supply chain model: better quality and consistency.
• focused on the core competency of delivery.
Value Proposition:
a good hot pizza delivered to your door within 30 minutes of ordering, at a moderate price.
− Analyze your target market (Who they are? What are they like? What are their needs?)
Who they are?
Domino’s Pizza focuses on the segment of people who like good piazzas, and also at an age around 15-50
and both male and female customers.
What are they like?
Domino’s pizzas have targeted the families who like to go out for dinner once in a week They also target
teenagers of school.
The spending habits of college freshmen also indicate a high percentage of money being spent on nonessential items.
Domino’s pizza has made delivery services for those customers who like to have pizzas in their home with
their families or friends
What are their needs?
delicious pizza, reasonable prices, delivery services, discounts, high quality.
− Marketing mix for applicable products and/or services
1.Product
§ Domino’s Pizza sells its products under 5 broad categories, and each of these serves as separate
product lines. All of its products are sold under the brand name of Domino’s Pizza.
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§ Domino’s Pizza sells products with a lot of variety available, which allows customers to select the
product variety that best suits them.
§ Domino’s Pizza sells products that are highly differentiated, with various features offered to customers
that competitors don’t offer. Its products are therefore considered to be unique.
§ Its products are perceived to be of higher quality than that of competitors. Therefore, customers are
willing to pay a higher price for these.
2.Promotion
§ Domino’s Pizza uses multiple media channels to promote its products. It uses traditional media, which
includes an advertisement on television and radio. This is beneficial due to its large reach and ability
to attract many people. It uses online and social media advertising, which is cheaper and beneficial due
to the increasing usage of the internet.
§ It advertises on various social media platforms with a focus on YouTube, Facebook and Twitter due to
the high monthly usage of these. It has over one hundred thousand likes or customers following on
these pages, which are exposed to frequent content uploaded by Domino’s Pizza.
§ Domino’s Pizza undergoes various sales promotions taking part in various trade exhibitions and events
around the year.
3. Place – distribution
§ Domino’s Pizza sells its products through two marketing channels. The first is where it sells directly to
its customers through its online website. The second is where it sells to wholesalers who then sell to
different retailers located all over the country. These then sell to its customers.
§ Domino’s Pizza has its products present on over 500 retailers throughout the country. It follows an
intensive marketing strategy where it tries to include its products on as many retailers as possible. This
ensures that its products are available to customers easily in different parts of the country.
§ Domino’s Pizza has a substantial amount of online sales with frequent traffic on its websites. In order
to run its online operations, Domino’s Pizza has partnered with numerous delivery service providers in
order to provide timely deliveries.
§ It follows an omnichannel distribution system where it has integrated its online and offline stores to
allow customers easy access to its products.
§ Domino’s Pizza has a network of over 500 suppliers that provide it with the raw materials needed for
production. It has developed a close working relationship with its suppliers allowing the company to
work with them to innovate and introduce new and attractive features on its products.
4. Pricing
§ Current pricing strategy to set the price level that Domino’s Pizza follows is a competitive based
pricing strategy. This is because the data on competitors is easily available due to many competitors
that exist within the industry.
§ It also takes costs into consideration to set prices for a few products for which either information is not
available on competitors, or are costlier to make,
§ Domino’s Pizza sells its products at a higher price than competitors. This is because it offers more
features, and the high price makes up for these.
§ It charges a greater price for the products it sells online. This is because delivery costs have been
included in the price of the product.
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3. EXPANDED SWOT ANALYSIS:
A. STRENGTHS
§ Strong Brand Equity
§ Internal dough manufacturing and supply chain system.
§ the largest pizza company in the world.
§ Strong and Proven Business Model.
§ quick delivery.
B. WEAKNESSES
§ higher prices.
§ The menu is limited and pricey.
§ High calorie.
C. OPPORTUNITIES
§ sales from application.
§ Low-calorie menu.
§ growing fast food market.
§ Domino’s can come up with new products.
D. THREATS
§ immediate competitor.
§ Changing consumer habits towards healthier food choices.
§ Lack of long-term contracts with key suppliers.
E. STRATEGIES TO MAXIMIZE STRENGTHS AND OPPORTUNITIES
§ Use strong brand equity in the global market
to share with local brands and expand its market presence there.
§ Use its Internal dough manufacturing and supply chain system and other key capabilities to make more
of low-calorie items which are a favorite of the millennial generation known for its health consciousness.
F. STRATEGIES TO MITIGATE WEAKNESSES AND THREATS
§ Increasing the number of stores internationally can reduce some of the competitive pressure.
§ Focus on managing long term relationships with its key suppliers.
4.RECOMMENDATIONS:
A. SUMMARY
The objectives are to build a successful relationship with customers, reinforce the brand image and increase
profits and sales. Target market selection is based on a psychological strategy that varies from person to
person. The new product is a sweet customized pizza, with three different sizes, two types of dough and
added toppings. The promotion will be through advertising, sales promotion and digital media platform.
Chacopizza will sell through two marketing channels, online (weather from Domino’s website or delivery
apps) and from the store. The prices between 15 and 48 SR depends of the size, toppings added. Value and
quality is the way to differentiate and position the new product in the mind of costumers. The suited
promotion strategy to launch the new product (chocopizza) is Pull strategy which directs our marketing
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activities toward final consumers. For distribution the best strategy is an intensive distribution. Finally, the
best pricing strategy should Domino’s follow is Value-based pricing strategy with High-low pricing
B. TARGET MARKET
We have identified the target market based on the psychological aspect of different personalities among
individuals, where each individual chooses a unique flavor that he loves and varies from person to person, so
the characteristics differ for each person from the other. There are individuals who prefer chocolate and some
prefer pistachios and so on. Also, you can choose the size that you want, small, medium or large.
Positioning statement:
For (Individuals are looking for dessert with high quality and unique flavor), (Chocopizza) is (made up of
Domino’s dough base with The right size for you, topped with layer of your favorite flavor) that (is the most
delicious dessert that you can choose for yourself and share it with your family and friends).
C. OBJECTIVES
1-Reinforce the brand image.
2-Build successful relationship with customers.
3-Increase profits and sales.
– Marketing mix
1. Product/Service
It is a sweet customized pizza, the flavors vary according to the request of the person, chocolate, pistachio,
lotus, Oreo, kinder, etc. There are three sizes large and medium and small and two types of dough crispy or
thick. Chocopizza will satisfy both adults and children.
2. Promotion
offers a 50% discount on the second chocopizza, introduces one small chocopizza free on one large pizza.
coupons awarded to loyal buyers, Influencers in the social media, and lastly advertising team, is actively
involved in the marketing and promotional strategy to boost up the sales.
3. Place – distribution
Chocopizza will sell through two marketing channels as all the products in Domino’s Pizza:
1-Online (weather from Domino’s website or delivery apps).
2-At store.
4. Pricing
Domino’s Pizza target the middle class, upper class and lower class. So, the best price for Chocopizza is
between 15 to 48 RS which will cover the cost of production (estimated around 12.37 SR on the dough and
toppings) and meet the perceptions of the costumers (estimated around 30 – 49 SR)
The chocopiazza Pizzas prices depends of the size, added toppings and.
The chocopizza prices according to the size:
15 For small chocopizza
25 For medium chocopizza
35 For the largest one
For each added toppings in your order it will cost 5 SR.
Example of toppings: Fruit, Choco chips, marshmallow, etc.
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D. MARKETING STRATEGIES
– Defined strategies to accomplish objectives.
1. Product/Service to include positioning
We will differentiate and position our new product in the mind of the customer in term of value and
quality.
The value they perceive from the chocopizza is exceed the cost paid, which mean Individuals expect
delicious sweet pizza with the same high level quality expected. chocopizza meet their expectations and
more, which provide customized sweet delicious pizza with high ingredient quality, from their favorite
pizza restaurant where they can spend lovely shared moments with family and friends.
Customers will be willing to pay, because they willing for high quality level of pizza and the price
designed are match with the desired quality.
2. Promotion
The suited promotion strategy to launch the new product (chocopizza) is Pull Strategy which directs our
marketing activities toward final consumers to induce them to buy the product.
marketing activities that will used:
Advertising like television advertising.
Sales promotion as mentioned earlier for examples 50% discount on the second chocopizza, coupons
awarded to loyal buyers and introduces one small chocopizza free on one large pizza.
And Influencers in digital media which currently considered the most powerful marketing means of
influence.
3. Place – distribution
the best strategy that suits our new product is an intensive distribution which a company sells through
every Domino’s restaurant so that the consumers find the product (chocopizza) virtually every Domino’s
restaurant they go.
4. Pricing
the best strategy that suits our new product is an intensive distribution which a company sells through
every Domino’s restaurant so that the consumers find the product (chocopizza) virtually every Domino’s
restaurant they go.
Pricing:
the best pricing strategy should Domino’s follow is Value-based pricing strategy with High-low pricing.
so it starts with assessing customer needs and we think Chocopizza it’s one of the neediest.
The best price for Chocopizza that match with customer perceived value is between 15RS and 48 RS.
we involve charging higher prices on an everyday basis but we will run frequent promotions to lower
prices temporarily on (Chocopizza) like other pizzas they have.
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REFERENCES:
https://www.dominos.com.au
https://www.mordorintelligence.com
https://finance.yahoo.com/blogs/the-exchange/amazing-facts-domino-dough-190950308.html
https://www.marketing91.com/marketing-strategy-pizza-hut/
https://www.pizzatoday.com
https://www.webstaurantstore.com
https://gmudomino.wordpress.com
https://www.google.com/amp/s/mpk732t22016clusterb.wordpress.com/2016/08/08/cheesy-act-ofdominos/amp/
https://www.mbaskool.com
www.marketing91.com

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