Domino’s Pizza Global Market
Product and Service Description
Domino’s Pizza is a company that has been in existence since the 1960s and has used various marketing strategies in order to ensure it achieves its marketing goals. The organization’s logo was initially planned to include another dot with the expansion of each new store, yet this thought immediately blurred, as Domino’s accomplished quick development. Reflecting Domino’s development, the organization had extended to 200 saves by 1978. During 1975, Domino’s confronted a claim by Amstar Corporation, the creator of Domino Sugar, asserting a trademark encroachment and uncalled for rivalry. In May, the Court of Appeal in the New Orleans found for Domino’s Pizza. This strategy helped protect their market and customers from copyright infringement.
Evaluation of current competitive advantage
In evaluating the current competitive advantage for Dominos, it is quite imperative to understand the company’s current market and how it has survived through the market to gain its marketing niche. Evidently, the company has achieved great success in its current market due to various marketing strategies such as the use of SWOT analysis to help in ensuring it identifies its strengths and weaknesses in order to carry out its activities in an effective environment.
In May 1983, Domino’s got to open its first worldwide store, in Winnipeg in Canada. Domino’s also opened a 1,000th store. In 1985, they opened the first store in the UK in Luton. In 1985, Domino’s had the first stores in Tokyo, Japan. By 1996, Domino’s had stretched to 1,200 global areas. In 1997, Domino’s launched its 1,400th universal area, opening seven saves in one day over five continents. Between 2007 and 2012, Domino’s bit by bit secured the vicinity in India with no less than 1,000 zones by 2012. By the start of 2014, the organization had developed to 6,000 worldwide areas and wanted to stretch to the pizza’s origination, Italy. President Patrick Doyle during May 2014 said the organization would focus on its conveyance demonstration there. This paper seeks to look at how Domino’s will use the various marketing strategies in their African outlet in South Africa.
Domino’s Mission Statement
Dominos has a simple and clear mission which states, Sell more Pizza, have more fun!
Reasons for choosing South Africa
South Africa is situated as an upper-focus wage economy by the World Bank and is viewed as of late industrialized country. Its economy is the second greatest in Africa and the 28th-greatest on the planet in the extent of buying. South Africa has the seventh most elevated for every capita for each wage in Africa, notwithstanding the way that poverty and predisposition stay in all cases, with around a quarter of the masses unemployed. In any case, South Africa has been perceived as a middle power in worldwide issues and kept up huge territorial effect (Blecker, 2006).
Market Analysis Summary
South Africa comprises a mixed economy, the second greatest in Africa after Nigeria. It similarly has a reasonably high GDP for each capita stood out from distinctive countries in Sub-Saharan Africa. The food business in South Africa has united liberally starting late, and today a discriminating number of the greater pizza makers have budgetary associations or key plots with the critical South African retailers. The pizza industry, on the other hand, has greatly improved altogether. So have the five greatest retailers, and together this record for about a large portion of total retail bargains in South Africa.
The Pest Investigation
It suggests the courses in which the government can intercede in an economy in regards to natural and work laws, obligations, exchange confinements and obligation methodologies. It moreover exhibits how the organization can impact preparing and prosperity and how it will impact the base the associations. As a South African government Plan follows, the structure of the economy will be changed over through industrialization, wide based dim budgetary fortifying and bracing and broadening the piece of the state in the economy. The company currently has a soft landing due to the implementation of various government strategies to the South African market. In order to achieve the best service delivery in the market, the firm has come up with the best strategies that can be used to ensure that the marketing environment favours them. Additionally, the government tariffs in South Africa are affordable for the company hence allowing it to carry out business activities effectively without having to face strict policies (Stevens, 2007).
South Africa has jumped over two spots to transform into the thirteenth most-appealing end of the line for outside quick financing, according to a late survey by overall guiding firm AT Kearney.
The outcome of the 2014 Foreign Direct Investment Confidence Index, which takes in the viewpoints of senior executives from 300 of the world’s heading associations in 26, separates countries. South Africa being one of the best performing nations in Africa, investment factors directly favour the company hence allowing it to have as much outlets as it can manage.
Strong economies have more money being differentiated in a given gathering; there are various financing assumptions that impact retail arrangements, and these need to get explored with a determined eye. One of the best-budgetary parts that impact retail arrangements is occupation open entryways, which particularly prompts the included discretionary pay of people that imagine that it hard to contradict inspiration buying, and who have no issue gathering gigantic charge card commitment to keep up a certain lifestyle. South Africa’s economy is seen as “unobtrusively free,” being surveyed as the 74th autonomous economy of 177 countries. It is situated sixth, out of 46 countries in sub-Saharan Africa. The economic factors in South Africa are quite useful since they have allowed the company to gain popularity and increased the earnings of the company over time (Stevens, 2007).
Target Segment and Marketing Strategies
The target of Domino’s pizza is to serve the locals with a grouping of types of foods that they encounter issues finding in one spot at any supportive time. We will serve every ethnic gathering with a blended pack of pieces of foods depending upon their feelings. These business segments get underserved in the noteworthy retail outlets. In South Africa, the potential for the clients to purchase will be higher. Since it has a marginally lower unemployment level as contrasted with other African nations consequently, they can buy our items
Domino’s Pizza needs to ensure that it carries out an effective research on the market needs of various prospective buyers by including its list of preferred products in the brochures that should be distributed to the customers within the shortest time possible. In addition, identifying the market needs will also help the firm in ensuring that it achieves the best competitive advantage strategies that will help in making sure its marketing strategies are effective.
Practicality is basic to the organization’s long haul achievement. It has risen up out of the need to certification it continues succeeding inside an unquestionably pressurized and eccentric nature, by making fitting abilities and breaking points. The manageability wander has helped the social event expand a deeper understanding of nature’s turf in which it meets expectations, clearing up the specific internal and outside issues most separating to long term viability. Moreover, the approaching examples and change in plans that will help Domino survive is its values and takes after styles and new examples among youngsters (Pliniussen, et al., 2002).
The GDP in South Africa annually was about 0.6 percent during the first three months of 2014 over the past quarter. GDP Growth Proportion in South Africa found the middle value of 3.16 Percent between 1993 and 2014. The growth proportion in South Africa is encouraging since it encourages investors in South Africa. As a result, it is quite imperative to help in ensuring that the market is fully occupied by their products in order to gain access to more customers. Marketing being one of the factors that guide the development of a firm’s products or services, there is need to help in ensuring that the products will lead increase in profitability.
Domino’s competitive position in 3 years’ time
In the next three years, the company aims at covering the best market share and giving the best services to their customers. As a result of intense marketing strategies that involve proper market research and consumer acceptability, the firms aims at being one of the largest in the South African market. Additionally, it is apparent that proper market analysis and use of Porter’s Five forces of competitive advantage will allow the firm to gain the best customer trust. It is also evident that firms need to ensure that they give the best services since there is need to have as many customers as possible.
In order to achieve the best competitive position in the next three years, the company needs to ensure that it works with the industry analysis to ensure that it identifies the gaps in the market. Our thorough appraisal of South Africa’s working surroundings and the viewpoint for its heading divisions are structured by bringing together an abundance of information on worldwide markets that influence South Africa, and in addition the most-recent industry advancements that could affect South Africa’s commercial enterprises. This interesting coordinated methodology has provided for us an impeccable record of accomplishment for foreseeing imperative movements in the business sectors, guaranteeing we are mindful of the most-recent business open doors and dangers in South Africa before our rivals (Kim, Fiore & Kim 2011).In the year under audit, South Africa was a solid entertainer regarding the matter of getting credit (first), securing financial specialists (tenth) and instalment of assessments (32nd). It got positioned at an impressive 39 for managing development allows, and beginning a business in South Africa is additionally simpler (53rd). Moreover, the best approach to powerful arranging is using a showed wanting to look at your product’s marketability (Stevens 2007).
Understanding the major competitors is important in helping the company chat its way towards the achievement of its marketing goals. Knowing our competitors’ sales technique and the apparent nature of their stock will help us know how to come in, as a new Pizza business. Dominos is the largest pizza manufacturer in the country. It supplies major retailers such as Woolworths, Truworths and Econ. Domino’s has been experiencing financial difficulties since 2008, this provides us with a good opportunity Armani is financially stable (Okonkwo 2007).
Pricing is a part of the advertising blend that decides your organization’s profit potential. In a focused business sector, the objective is to offer what clients need and to set costs that the market is ready to endure (Engle 2008). We will utilize different estimating routines as part of the request to draw in our clients. By using the most favourable prices, the company aims at becoming the customers’ most preferred outlet in South Africa and the African continent.
A pricing strategy involves setting your apparel prices below or above the competition. As a firm that needs to build the best marketing strategies, competitive pricing is one of the most preferred strategies that the firm seeks to use in order to gain the highest market share in three years. In addition, the firm seeks to provide special services that are not offered by other firms in order to gain more customer loyalty. In three years, the firm seeks to include delivery services to customers who might need the products of the company but are not able to reach the firms premises (Mills, 2002).
Markup Based on Cost
A mark-up-based-on-expense procedure considers the assembling expense of a thing and the most-elevated value the business sector can stand to return adequate net revenue. In three years, the firm seeks to come up with the most effective way of attaining customer trust by selling its products such the high quality pizza. Regularly evaluating involves multiplying the assembling expense of a particular thing to yield a real or proposed retail cost. In order to become the best firm in South Africa, Domino needs to utilize this strategy in order to gain the highest number of customer.
There are a few approaches to Discount Pricing to expand client loyalty and helps guarantee overall revenues, for example, by offering coupons, gift certificates, occasional deals and in-store cross-promotions (Harrison St. John, 2008).
Clear recommendations on what the company needs to do to achieve the three strategies
In order to achieve the above strategies, the company needs to use Porter’s five forces of competitive advantage. Ideally, the strategies will help in ensuring the company attains the best in the market in order to beat its competitors and gain the highest market share.
The first force I would look into is Supplier Power: Here I would assess the ease of driving up prices by suppliers. Under this force, I would asses various suppliers and their prices. In addition, I would evaluate their effect and control on the business the management is intending to buy. The lesser the supplier choices the business has, and the more the business need the help of suppliers, the more powerful our suppliers would be (Blecker, 2006).
The second force is Buyer Power: under this, the company should ask the ease at which buyers can drive prices down. Moreover, this force would be driven by the number of buyers, as well as each buyer’s effect on the business that the management intends to buy. If the company deals with few buyers, who are powerful, then the buyers can often dictate terms to the business.
The third force that I would use is Competitive Rivalry: here, it is essential to look at the capabilities of the firm’s competitors. If the firm’s competitors have high quality products that are of more friendly prices, then I would advise the management not buy the business. On the contrary, if the firm has weaker competitors with low quality goods and services, then I would advise the management to carry out the purchase.
The forth force that I would consider Threat of Substitution: This factor is mainly affected by the customers’ ability to find an alternative source of what the company supplies. If substitution of the firm’s goods or services is easier for the consumers and substitution is viable, then I would advise the management not to buy the business since this would weaken the power of the firm. The last force, according to Porter, is the Threat of New Entry: this is looked in the perspective of other firms entering the market. If the business would cost little time, legal requirements or money to enter our market and compete efficiently, then I would advise the management to buy the new firm. In addition, if the economies of scale are few, then I would advise the company not to purchase the business since that would weaken the company power. In case the business has strong and durable entry barriers, then I would advise the management to take advantage and purchase it. This would eventually have a great impact in helping the company gain the best market share.
Another major factor that needs to be used in order to access the largest market share is technology. Specifically, the firm can use technology in advertising and making good use of its available computers to reach customers via the social media channels and other technological adverts. As a result, the company will have better access to the best clients who will help in improving its profits and marketing strategies (Kalb, 2007).
Domino’s Pizza needs to ensure that it implements all the strategies mentioned in the paper in order to achieve its marketing objectives and in order to get a larger market share for its products. In addition, the company needs to ensure that it works towards achieving the best sales from the products due to better pricing and marketing techniques. Besides, Domino’s has to come up with the most achievable objectives that will help it work towards maintaining the current marketing position. This can be done by opening a number of international branches. The South African branch should, therefore, work with other branches to help Dominos become successful in its marketing strategies.
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