Collegiate ECHO

Dominos Direct Marketing Campaign

From Your Phone To Your Door





Alisha Frederick
Amy Hashem
Scott Levine
Xinyuan Wu




I
Executive Summary
The Dominos From Your Phone To Your Door campaign is a customer-focused plan
that is projected to run for one calendar year. Extensive primary and secondary research
were used to analyze Dominos target audience (males and females 18-49), and has
revealed that males and females between the ages of 25-34(users and buyers) were more
likely to own smartphones and utilize the internet capabilities. Leveraging the
IdeaMap tool, this niche audience was further analyzed to determine three segments
based on their purchasing habits, demographics, psychographics, and mobile usage.
These segments include: Mobile Savvy Social Connectors, Pizza Loving Young Families,
and Deal Seeker Influentials. All three groups have shown high affinity to offers and
marketing messages that involved a free gift with continuous use of the mobile app. The
constants remain - meals, desserts, and visa gift cards!

Therefore, a fully integrated marketing plan has been devised to use all aforementioned
findings to both drive traffic and encourage sustained usage of the mobile app. The
campaign will follow a synchronized strategy beginning with PR, In-Store Display, email
campaign, banner advertising, direct marketing campaign, and pizza box toppers by
utilizing Dominos existing database. Customers will be persuaded to download the
mobile app and make a purchase to receive a free dessert.
Anticipated results of the campaign with marketing investment of $250,000 (see plan
and appendix for details):

Campaign Results Year 1
Target Market 810,000
Response Rate 7%
# of Orders per
respondent
7
Sales 396,900
Marketing Contribution $1,103,429
Marketing Expense $250,000
Return on Investment 441%




II
Strategic Summary




St rategic findings from research Data Source Application to Strategy
1 2 5-34 year olds 74% more likely to own a
smartphone; 98% download apps
Simmons, ComScore,
Qualtrics Research
Cor e Target Audience

2 Receive a free item with purchase via the mobile
app ranked high among segments
IdeaMap Research
Results
Offer one free dessert with 1st order through the mobile app
3 High affinity gaming apps IdeaMap Research
Results
Mobile banner ads placed within game apps for click to
download the app
4 Pr eference t o learn about updates, new products,
et c. via social media
IdeaMap Research
Results
Instagram and Facebook promotions to inform the customer
and encourage interaction
5 All segments indicated motivation to earn points
t owards rewards through app download and
usage
IdeaMap Research
Results
Offer 10th order via the mobile app free (up to $30)
and
Offer a $25 Visa gift card with 1,000 points earned from
or dering via mobile app

6 The average customer buys pizza 21 times a year
and Dominos makes up 6 to 7 of those occasions
Loyalty360 Article Est imate respondents will purchase 7 orders from Dominos
within the campaign year
7 Synchronized integrated and interactive strategy
for higher response rate
Er nan Roman
Int egrated and
Int eractive Marketing
St rategy
Basis of core strategy (See Media Plan)

















III





Table of Contents
Executive Summary..............................................................................................................I
Strategic
Summary................................................................... ......................................................... II
Table of Contents ............................................................................................................. III
Market Research ................................................................................................................ 1
Background...................................................................................................... ........ 1
Industry Overview ...................................... ............................................................. 1
Digital Conversion ................................................................................................... 1
Message frequency .................................................................................................. 1
Current Media platforms ........................................................................................ 2
Competition ............................................................................................................ 2
Research & Methodology .................................................................................................. 2
Campaign Target Market ........................................................................................ 2
Secondary research ................................................................................................. 3
Simmons ........................................................................................... 4
ComScore........................................................................................... 4
Loyalty Programs Impact ........................................................... 4
Primary Research Findings .................................................................................... 4
Qualtrics .................................................................................................................. 4
IdeaMap ............................................................................................................... 5
Strategy .............................................................................................................................. 6
Unique Selling Proposition ..................................................................................... 6
Integrated and Interactive Marketing Strategy ...................................................... 7
Target Lists selection ............................................................................................... 7
List Breakdown .................................................................. ......................................
7
Test Marketing ........................................................................................................ 8
The Offer and Marketing Messages ........................................................................ 8
Creative Overview ....................................................................................................9
Media Strategy
....................................................................................................................9
Appendix...11





1
Market Research

Background
Originally an independent pizza restaurant, Dominos Pizza was founded in 1960. The
company has grown to have a combined network of 10,000 company-owned and
franchise-owned stores that mainly cater to individuals between the ages of 18-49.
Today, Dominos Pizza has been recognized as the world leader for prompt and reliable
pizza delivery services.
1


Industry Overview
The landscape of the pizza retail industry is experiencing notable changes due to the rise
of independent retailers, as well as, advances in technology. Thus, Dominos faces
challenges associated with adequately adapting to increasing Internet and
mobile/smart-device usage.
2
The competitive nature of the industry requires strategic
actions to maintain and enhance brand health by utilizing digital channels.

Digital Conversion
Technology has altered communication habits, as well as consumers purchasing
behaviors. We are now in the age of the consumer; just as the needs of consumers are
changing, so is the landscape of the industry.
3
The Internet is much more cost efficient
when displaying a wide range of products for sale and interacting with target audiences.
Studies have shown that 80% of smartphone owners do not leave home without their
phone.
4
Therefore, it is important to harness digital distribution channels and mobile
platforms to reach Dominos target audience. The official website, social media
platforms, and mobile application are exceptional tools for conveying new promotional
offers and marketing messages. Online and mobile ordering currently account for 35%
Domino's domestic sales. Mobile orders provide 10% of that 35% total, but are growing
more rapidly.
5


Message Frequency
Dominos utilizes several traditional and social platforms to communicate with its
audience including: Dominos official website, Twitter, Facebook, Instagram, TV, email,
web banners, radio, and box-topper coupons. New menu items, events, promotions, and
other messages are delivered through the aforementioned channels.


Current Media Platforms
Dominos Facebook, Twitter, Instagram, and mobile app have a fairly strong following:


1
http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary /About+Dominos/History /#2010
2
http://www.euromonitor.com/internet -retailing-in-the-us/report
3
Bobowoski, Kev in. March 14
th
, 2014. The Ev er-Ev olv ing Social Media Marketing Landscape. http://www.of f erpop.com/resources/blog/ever-evolving-
social-media-marketing-landscape/
4
http://serv ices.google.com/fh/files/blogs/our_mobile_planet_us_en.pdf
5
http://l oyalty360.or g/resources/article/cfo-domi nos-digital-channels-enhance-brand-l oyalty#sthash.wM46v 3XU.dpuf


2
Platform Followers/Friends/Downloads
Facebook 928,3823
Instagram 16,000
Twitter 538,000
Mobile App(Android & iPhone) 13,932

Competition
The pizza (delivery) industry is one of the largest fast food markets in the world.
Although independent pizza retailers hold more market share than major pizza chains,
the highly competitive market experiences intense competition among the top three
pizza chain players: Dominos, Pizza Hut, and Papa Johns. These three continuously
compete for the majority of the pizza sold in the United States.
6

(Refer to Competition Tables and SWOT analysis in Appendix)

Research & Methodology

Campaign Target Market
Dominos Pizza currently targets consumers between the ages of 18 and 49 with a focus
slightly skewed toward females. However, based on secondary and primary research the
target selection for this particular campaign consists of males and females 25-34.
Secondary research has identified this group as heavy mobile users who are 74% more
likely than the general population to own a smartphone, and 63% more likely to have
Internet capabilities on said smart-devices.
7
Primary research via Qualtrics and
IdeaMap has further confirmed this segment as the optimal selection. The trends in
the target audience are showing heavy online and mobile social media usage. Marketing
to this younger, tech savvy generation requires a high-involvement approach; consumer
involvement and engagement is necessary to capture market share. This group likes to
share content across platforms and is constantly connected. Dominos can benefit by
applying marketing strategies that encourage interaction and engagement to enhance
the customer experience.

Secondary Research

Simmons
The original theory was that the target would be parents of children, since they tend to
have less time and are more likely to be in a rush to get dinner on the table for the family

6
Hynum, Nick. (December 2013). The 2014 Pizza Power Report. Pizza Magazine. http://www.pmq.com/December-2013/Pizza-
Power-The-2014-Pizza-Power-Report/
7
http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/


3
after work. Experian Simmons was used to test this theory. The groups tested were:
Female Mothers 18-49, Female and Head of Household, male fathers 18-49, Male of
Head Of Household, have one to six child(ren). Four main categories were tested:
dieting, if they use fast food and where they go for fast food, what they are doing at the
times of day they would be ordering dinner, and phone capabilities (unfortunately
Simmons has results from 2011 and apps were not popular then. Therefore, points
related to apps were not factored into the database).
There seemed to be little correlation with dieting. Fast food was popular among
all groups. Even if they were parents, many still seemed to eat fast food more with other
adults than their children. This led us to believe that perhaps parents were not
necessarily the correct target since the Dominos order is often for the family, but isnt
necessarily for the family. We also learned that it is most common for Dominos to be
eaten 1-5 times a month and 24.7% of people who eat Dominos at least once a month
are female mothers and 36.6% of them are male head of households.
Research showed that it was very common for members of these groups tend to
be in their apartment/house during the hours when dinner would be ordered; in the car
and at work followed closely behind. As of 2011 30%-45% of the members of these
groups had email on their phone. 28.7% to 41.6% of the members had web browsing on
their phones.

ComScore
ComScore research findings indicated that the largest group was 25-34; skewed slightly
female. In addition, the ComScore findings show the presence of two groups: Young
Families (married with children or likely to have children) and Single students. This
data further solidifies the results of the aforementioned Simmons data. Although,
Hispanics overindex for smartphone usage, Caucasians make up the majority of
Dominos target audience.
8

(see ComScore data in Appendix)

Loyalty Programs Impact
Customer loyalty and retention in the pizza industry is notably low. Dominos CFO,
Michael Lawton recently mentioned at a conference:
The average customer buys pizza 21 times a year, and Domino's makes up six to seven
of those occasions. Even the company's most loyal customers don't choose Domino's
every single time.
9

Hence, the need for digital emphasis is obvious. Furthermore, the utilization of a
loyalty program will allow Dominos to track consumer preferences while creating more
value for its customers. A strategically implemented loyalty program will allow for more

8
http://www.emarketer.com/Article/Hispanics-Overindex-Smartphone-Usage/1010651
9
http://loyalty360.org/resources/article/cfo-dominos-digital-channels-enhance-brand-
loy alty#sthash.wM46v3XU.dpuf


4
targeted promotions based on preferences and purchasing habits, which will lead to
increased consumer retention and loyalty.
The use of premium offerings will increase brand loyalty and customer lifetime
value. Premiums will encourage customers to not only purchase Dominos over their
competitors, but entice them to order solely through the mobile app each time to build
up to exclusive rewards. These premium offers will be an investment down the line, but
will be easily paid for by the lifetime value of each customer (see Media Strategy).

Primary Research Findings

Qualtrics
Data was collected via primary research from Qualtrics, based on 15 questions and 113
respondents. The findings are as follows:
98% respondents own and use a smartphone/tablet. Among those people, 98% of them
currently download apps; and among people who downloaded apps on their smart
electronic devices, 51% admit that they have downloaded some app(s) to order food.
Some of the apps mentioned are: Seamless, Yelp, and Dominos. The cost spent on
delivery meals averaged within the $15-$20 range. These consumers prefer to call in and
order rather than using online or the mobile app. The direct discount off of total order is
the most popular promotion welcomed by people who took the survey. The sample was
comprised of 51 male respondents and 53 female respondents, and the age range
concentrates on 25-34 years old. 63% respondents are white. When asked about
Dominos 46 people said that they have ordered from Dominos in the last year and 28
people typically order Dominos 1-5 times throughout the year, far more than normal
frequency. According to the primary research, the target market should not be
constrained by gender or occupation. Instead, the primary data simply suggests
strategically targeting young people who like order for the family or themselves.

IdeaMap
Created by Dr. Howard Moskowitz, IdeaMap is a great marketing research tool that
scientifically tests the effectiveness of marketing messages on a sample of respondents.
The tool has been used by small businesses and Fortune 500 companies, to test
customer intelligence, new products, and marketing messages.

The power of IdeaMap also provides an Optimizer simulator, which identifies the
best product construct for pre-defined consumer segments as well as for behavioral and
attitudinal clusters which emerge as a result of the compiled survey responses.
1 0


Based on information gathered from primary and secondary research, a variety of offers
and marketing messages were created and tested as elements in IdeaMap. The results
allowed for more specific segmentation based on their preferences, demographics, and

10
http://www.mji-designlab.com/index.php?id=3


5
mobile usage. These well-defined niche targets are: Mobile Savvy Social Connectors,
Pizza Loving Young Families, and Deal Seeker Influentials, and belong to the 25-24 age
group. All three segments responded that they prefer to learn about updates, new
products, and promotions via email and social media platforms, and spend about $15
(on average) when they order out for dinner. Respondents in all segments are 74% more
likely to order food online and 77% own a smartphone.

In addition, IdeaMap served as a powerful scientific tool that gave insight about the
most appealing marketing messages. All three segments showed a high affinity to
receiving three (3) rewards: a free gift card through loyalty points, a complimentary
dessert for downloading the mobile app, and an earned freebie meal for continued
mobile app use. These findings will allow for more targeted and relevant messages to
both potential and existing Dominos mobile app users, adding to the overall
effectiveness of the From Your Phone to Your Door campaign.
(Refer to Appendix IdeaMap)







Strategy

Unique Selling Proposition


6
This campaign will leverage Dominos Pizzas existing unique selling proposition of you
get fresh, hot pizza delivered to your door in 30 minutes or less and add the element of
ordering through the mobile app for exclusive rewards that include a free dessert with
your first purchase, your 10
t h
order being free, as well as, a chance to rack up points for a
$25 Visa Gift Card to spend on anything. You get fresh, hot pizza from your phone to
your door delivered in 30 minutes of less. Its that simple.
The goal is to encourage Dominos Pizza customers to not just download the mobile app
for one time use and forget about it, but to encourage them to be brand loyal to
Dominos Pizza with the mobile app as their platform of choice for exclusive deals and
rewards.
The free dessert helps Young Families by providing a 2-course meal at no extra
cost
The free 10
t h
order encourages a loyalty program by providing an incentive to
those willing to be more brand loyal to Dominos Pizza the next time they think of
ordering out for a meal
The $25 Visa Gift Card with 1,000 points earned also encourages a loyalty
program resonating well with Deal Seeker Influentials. Dominos Pizza should
provide their very loyal customers with small gifts to show their generosity.

Integrated and Interactive Marketing Strategy
The primary objective of this campaign is to generate prospects not just into Dominos
Pizza customer, but Dominos Pizza customers through the mobile app. To achieve the
objectives of From Your Phone to Your Door, an integrated campaign focusing on the
3 target markets will be launched. The plan will feature effective media schedules to
encourage the continued use of the mobile app to order Dominos Pizza. Using the
Ernan Roman method of integrated direct marketing offers a clear path to new heights
of marketing effectiveness. He has defined the Rules of Engagement to circle the target
and deliver a truly consistent message through the use of PR, Banner Advertising,
Email, Direct Mail and Social Media. Romans methodology has yielded a gross
response rate of 7%. The strategy is to avoid the traditional marketing spray-and-pray
approach and truly convert customers to a mobile app and brand loyal audience.

Target Lists Selection
Using NextMark, lists that match the profiles of the three designated segments will be
rented. $100,000 is budgeted for those lists. The targets are Mobile Savvy Social
Connectors, Pizza Loving Young Families, and Deal Seeker Influential. Primary research
indicates that people aged at around 25-35 years old purchase pizza at least once a week
via mobile devices. Therefore target audiences and lists are to be chosen through
NextMark.

List Breakdown


7
Based on the target isolation, the first list is comprised of individuals who own
smartphones and who rely on their devices to remain connected at all times. Many of
these subscribers are not only smartphone owners, but have made their phone an
integral part of their lifestyle, using it for everything from checking their social network
pages to managing their finances.

List Name American Smartphone Owners
Total Universe 25,013,761
Universe Rate $100.00/M
Gender 42% Female 58% Male
Type Email, Postal
Average Household Income N/A

The second target list contains highly responsive consumer data for online, offline and
multi-channel marketing campaigns. This file consists of families expecting children and
those with children ages 0-3, with parents tending to be in their twenties.

List Name Young Families
Total Universe 716,622
Universe Rate $80.00/M
Gender N/A
Type Email, Postal, Phone
Average Household Income N/A

The third list is comprised of deal seekers and involves Coupons, Deals & Discounts. These
tech savvy consumers use their smart phones to install apps for their favorite retailers use
their emails to be scanned at check out for the savings being offered.

List Name Coupons, Deals & Discounts
Total Universe 4,000,000
Universe Rate $85.00/M
Gender 70% Female 30% Male
Type Postal, Phone
Average Household Income $45,000.00

Test Marketing
The market responses will then be tested by pulling out 5,000 randomly selected names
from the acquired lists to run tests for effectiveness of the creative offers. IdeaMap


8
provides an Optimizer simulator tool, which easily allows the best offer(s) to be
determined.

List Name Creative 1 Creative 1 Creative 1 Creative 2 Creative 2 Creative 2 Creative 3 Creative3 Creative 3

Offer 1 Offer 2 Offer 3 Offer 1 Offer 2 Offer 3 Offer 1 Offer 2 Offer 3
American
Smartphone
Owners
5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000
Young
Families
5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000
Coupons, Deals
& Discounts
5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000

The Offer and Marketing Messages
As derived earlier from the primary research, the three target segments - Mobile Savvy
Social Connectors, Pizza Loving Young Families, and Deal Seeker Influentials all
respond best to different marketing messages based on IdeaMap results. Displayed in
the Appendix are the top performing messages selected for all target segments based on
a compilation of all primary and secondary research. The numbers displayed for each
marketing message is read as an index, where the average is zero. Thus, for instance the
offer Get your 10
th
order via the mobile for free generated an index of 58, which means
that the target market is 58 times more likely than the average person to respond
positively to this message. A positive index means a higher propensity of a response for
that particular element in that segment. For a full list of IdeaMap marketing message
results, as well as a more in-depth breakdown of each specific segment, please consult
the Appendix.

Creative Overview
The creative tone of the campaign will not stray far from Dominos core imaging.
Instead, Dominos strongly established brand name will be leveraged to create a fun and
unique direct mail piece that informs consumers about the mobile app. The social media
platforms shall remain similar to the existing aesthetic, but display Dominos products
in fun and unique pictures, rather than simply pictures of the pizza. The commercial
simply informs the audience of Dominos mobile app, while expressing the benefits of
use. Lastly, the email campaign will maintain the same characteristics that have worked
for Dominos in the past, but will provide the appropriate messaging for the new
campaign.

Media Strategy
The media mix will be allocated as follows: 39.2% In-store display, 20% Direct Mail,
19.9% Email, 18% Banner Advertising, 2% Public Relations and .9% Pizza Box Toppers.


9

In-Store Display
As noted directly from Dominos Pizza, the plan should be designed with their 4900
retail locations in mind. That being said printing double sided window decals to put on
all their store fronts should grab the attention of all their customers that visit the store
for carryout. The goal is to inform them that by ordering via the mobile app next time
will save them time and money. Messaging will include Order via the mobile app and
get your 10
t h
order free!}, Order via the mobile app for your chance to earn points and
win awards such as a $25 Visa gift card. The store employees are a great form of in-
store advertising as well and should be educated on the customer benefits and rewards
for ordering via the mobile app. The window display should remain throughout the
entire year.

Direct Mail Campaign
Every quarter a campaign-centered postcard will be mailed to 67,500 people from the
mailing lists centered around the 3 target segments (22,500 to mobile savvy social
connectors; 22,500 to Young Families; 22,500 to Deal Seeker Influentials). The call to
action will be very clear to download the app and make your next purchase with the
mobile app for special offers and rewards. Based on the 7% response rate Dominos
Pizza will gain 18,900 new customers from this campaign that will likely order from
Dominos 7 times within the year. These respondents are even likely to order more than
7 times in order to win rewards such as a $25 Visa gift card or their 10
t h
order delivered
for free.

E-mail Campaign
Very similar to the Direct Mail campaign every quarter an e-mail will be sent to 135,000
people from the mailing lists utilizing the NextMark lists and targeting the 3 segments
(45,000 to Mobile Savvy Social Connectors; 45,000 to Young Families; 45,000 to Deal
Seeker Influentials). Dominos should also send the same promotional messaging about
the mobile app to their current customers (house list). With a 7% response rate
Dominos Pizza will gain 37,800 new customers who respond directly from this email
campaign. Again, these respondents are likely to order 7 times within the year.

Banner Advertising Campaign
Three online banner ad campaigns will be run throughout the year. A pool of
impressions will be triggered to run on the desktop Weather.com site and The Weather
Channel mobile app during inclement weather in major cities in the U.S. This strategy
will be utilized during Q1 and Q4 as an increase in food delivery orders has been


10
observed during winter months.
1 1
For a premium placed triggered campaign an average
$10 CPM is estimated.
1 2

The second banner advertising strategy is to piggyback on Dominos Pizza current re-
targeting display campaign, but to incorporate extra budget focused on spreading the
word about Dominos mobile app to anyone who has visited the Dominos website
recently. Re-targeted ad network banners average a $2 CPM.
1 3

Lastly, a banner advertising strategy geo-targeted around the 4900 Dominos Pizza
retail locations will help reach people without any wasted impressions on those who are
not near a Dominos Pizza. Geo-targeted an ad network campaign adds an extra delivery
cost of about $1 to $1.50 CPM so therefore averaging around $3.33 CPM.
1 4


Public Relations
A PR company will be hired to handle a press release and publicity for the entire year of
the campaign to handle a press release and publicity. Their approach will be to use the
PR Newswire during pivotal moments throughout the year to highlight Dominos Pizza
upgraded mobile app that features a new loyalty program. The membership runs
approximately $300, with an additional $700 fee for a press release. A total of $5,000
has been allocated to allow for multiple PR stories to generate more buzz. The pizza
industry is not a very brand loyal industry, therefore, the goal is to increase buzz around
Dominos mobile app and encourage customers to use the app to order their next meal
to earn points for free rewards.

Pizza Box Toppers
This is a current Dominos Pizza methodology to circulate their coupons. This is an
efficient tactic because recent customers are most likely to be your next customers (Lisa
S. Spiller, Contemporary Direct Marketing). This is very similar to retailers including
catalogs inside delivery packages. A test involving 50,000 delivery boxes to include
Pizza Box Toppers dedicated to encouraging the Dominos Pizza customer to both
download and use the mobile app for their next purchase, in order to receive exclusive
offers and rewards will be conducted. This is similar to the in-store display strategy, but
focusing on delivery orders instead of carryout orders.

Cost of Premiums
Premium Offer Cost of Premium if
all Respondents
Cash in
Lifetime Value of
Respondents before
Cashing in on Premium
ROI of
Premium
Offer
10
th
Meal Free $1,7 01,000 $9,667 ,350 568%
$25 Visa Gift Card with
1,000 points
$1,417 ,500 $56,7 00,000 4000%
Free Dessert with 1
st
order $311,850 $966,7 35 310%

11
(http://news.medill.northwestern.edu/chicago/news.aspx?id=227636)
12
(http://monetizepros.com/blog/2014/average-cpm-rates/).
13
(http://monetizepros.com/blog/2014/average-cpm-rates/)
14
(http://monetizepros.com/blog/2014/average-cpm-rates/).


11
Appendix
Return On Investment




12
Offers and Marketing Messages

Offer Selected: Get your 10
th
order via the
mobile for free
Mobile Savvy Connectors
Pizza Loving Young Families
Deal Seeker influential
Marketing Message Index
From Your Phone to Your Door 58


Offer Selected: Receive a $25 Visa gift card
with 1,000 points earned from ordering via
mobile app
Mobile Savvy Connectors
Pizza Loving Yong Families
Deal Seeker influential
Marketing Message Index
Loyalty Creates Valuable Gift 51


Offer Selected: Order through the mobile app
and get one free dessert with your first order
Mobile Savvy Connectors
Pizza Loving Young Families
Deal Seeker influential
Marketing Message Index
Get a free dessert via mobile purchase 43























13
Media Plan Schedule



14
Creative Composition/Creative Brief

Direct Mail Piece

Front:


Back:



15

Sample Social Media Advertising
Instagram:



Facebook:




16

Sample In-Store Display





17

Sample Banner Advertising


Sample Email Ad




18
Market Overview






19




SWOT Analysis

Strengths Weaknesses
Cost-efficient store model
Strong Brand Awareness
Dominos PULSE pos system
Strong social platform following
Consumer taste perceptions
Dominos delivery-focused business
model
Extended menu
Opportunities Threats
Fast-casual expansion
Differentiation
Domestic growth
Expansion to acquisition of local and
independent pizza stores
Mobile platform optimization
Economic slump
Strong competition
Rising trends in healthy eating and
organic food consumption
Fast-changing digital environment





20

Competition

Competitive landscape:
2013 Annual Sales compared with top three key competitors

2013 Net Profit Margin



21

Financial data about top three competitors and industry
2013 profitability

Dominos Papa
Johns
Little
Caesars
Pizza
Hut
Industry
Median
Market
Median
Gross profit
margin
30.46% 57.96% -- -- 32.78% 33.48%
Pre-Tax Profit
Margin
12.49% 7.37% -- -- 12.82 10.64%
Net Profit
Margin
7.93 4.83% -- -- 9.03% 7.25%
Return on Equity -- 43.57% -- -- 26.16% 11.68%
Return on Assets 28.50% 15.41% -- -- 9.81% 2.11%
Return on
Invested Cap
-- 24.36% -- -- 14.98% 7.33%

2013 valuation

Dominos Papa
Johns
Little
Caesars
Pizza
Hut
Industry
Median
Market
Median
Price/Sales
ratio
2.38 1.47 -- -- 2.52 1.51
Price/Earnings
ratio
20.03 30.40 -- -- 28.01 20.16
Price/Book ratio (3.21) 14.56 -- -- 6.94 2.25
Price/Cash Flow
Ratio
22.12 20.88 -- -- 5.54 243.90














22
Mobile App Feature Comparison

Dominos Pizza Hut Papa Johns Little Caesars
iPhone
Downloads
2537 173 16 --
Rating
4.5 4 1.5 --
Description
- The ability to order from
almost any dominos in the
U.S. (nearly 5,000
locations)
- Access to all the items on
our national menu.
- Find coupons available
for use at your selected
store.
- The app will remember
your most recent store and
other useful information.
- It does not require
customers to login, but
they can login to access
their saved addresses.
- In app credit or debit
card payment.
- Use dominos tracker to
follow order from the
make line, into the oven,
then out for delivery or
ready for pickup.
- Add ability to
reorder with only 5
clicks
- The full pizza hut
menu offers all your
favorite deals,
special pizzas,
pastas, WingStreet
wings, drinks, sides,
desserts and limited
time offers.
- Guest checkout
allows you to order
without having to
created an account.

-Features the
entire menu
- Special
offers
- No account
required
- Anywhere
Pay your
way
- Any time
Speed menu
Favorites and
repeat
-Find a pj
near you
-Papa
rewards
-Best of all

- View food menu on
the go
- Order any menu item
on the go
- Unlock coupons for
discounts and freebies
- View deals
- Talk with others on
its fan wall
- Connect with them
via facebook
- Share the app with
all friends
- Email photos to
appear inside
restaurants and social
networks
- Add their events to
customers mobile
phone calendar




23

IdeaMap Survey Questions




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30
ComScore


Simmons