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INTERNATIONAL MARKETING STRATEGIES OF DOMINOS MARKET

INTRODUCTION The process of the transfer of goods and services produces by an organisation to its customers to make an income and profit is called marketing. In the case of international marketing selling of goods is extremely different from the domestic market. It provides the company a worldwide market with different geographic segmentation. In the international market the company has to face different sociocultural factors, political and legal factors. The nature of the market is diverse and complex due to its geographical and demographic market segmentation. The taste and traditions of the people are different in different nations.

Marketing in an international market is too difficult because there is many variables are present it will influence the selling of a product in a target market. Marketing strategies applied for one country cannot be used for another country because nature of the market is different. The important aspect in international marketing is how effectively the company used to market its goods and services. Dominos Pizza is an American fast food restaurant chain founded in 1960. The fast food

chain Dominos pizza is the second largest pizza chain. Dominos has more than ten thousand stores internationally and they are owned by the Dominos and franchised restaurants in seventy countries. In 2004 it is converted in to public limited company. Dominos pizza is one of the well-known international companies. This fast food chain offers its customers takeaway and door delivery of this Italian taste. In all major cities of the world nations a dominos store present. They preparing the pizza with fresh ingredients and offers a variety of menu to their customers.

In the current economy the world market is stagnant and countries are trying to overcome the situation. Even in the bad economy Dominos is succeeded in its market by its marketing strategy like thirty minutes delivery and supplying its customers the quality products. It helps the Dominos to penetrate into the competitive global market and win the market. Dominos Pizza entered the Oman Market in 2009 with one store in Al Khuwair. This study is based on Dominos Pizza launch in Oman. The present pizza market in Oman is competitive and compared to the global success of its franchises, the market share captured needs to be

increased. The study is to see the various dynamics related to the international marketing of Dominos Pizza in relation to its Oman operations. The Dominos Pizza Inc intends to increase the market share in Oman as after its launch, it has not made much inroads to increase its customer base. The competitors of Dominos like Pizza Hut and the local chains like Pizza Muscat have made inventions and changes in their products and marketing aspects and thereby Dominos by re-launching can strengthen the branch communication to target the expatriate population. According to Ghauri(1999), the purpose of the re-launch is to make the existing market and targeted market look at the brand name Dominos in a different light. The identified and recognizable reasons for brand re-launch would be to enter into a new market.

Vision:
Dominos Pizza vision is to be exceptional people on a mission to be the best pizza delivery company in the world.

Mission:
Dominos Pizza is dedicated to bring fun and excitement to its customers by delivering pizzas to their door step in 30mins or in less time. Dominos Pizza strives to develop pizzas to suit the taste of its customers. Strategy is to think local and to act regional.

Objectives
The objectives of this study are to analyse international marketing strategies of Dominos Pizza. This study also analyse the advertising strategy of dominos.

Rationale of internationalisation
The vision of Dominos pizza is Exceptional people on a mission to be the best pizza delivery company in the world ". All the marketing strategies of the Dominos are mainly focuses on customers and they are always concentrated on customer feedback regarding their products. Dominos is devoted for their customers by providing quality products and delivery of the pizza at the door step of customers in 30 or less than 30 minutes. Often Dominos look on to the competitors to develop new marketing strategies. Dominos offer a wide variety of menu to their customers. The company get maximum revenue from the meal items. For every dine Dominos offer discount coupon to the customers so that the customers are compelled to maintain loyalty towards Dominos. The range of products of Dominos is suited
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for all segments of consumers it include internationally famous pizzas like the Italian pizza, pan pizza, and stuffed crust. The meal also includes appetizer, salad, and range of soups, pastas and deserts. Dominos believe in the strategy think globally and act locally. Dominos offer pizzas which will satisfy the tastes of its Asian customers. Dominos was able to win the market by positioning the pizza as a snack item an efficient home delivery system. Dominos is involved in internet and telemarketing but there is no need for directive or interactive selling because the customers are the communication tool for Dominos.

Mode of entry into international market


According to Ghauri (1999), international companies adopt several type mode entry is practiced to entre in to the international market. Exporting the goods and services, licensing, franchising and contracted manufacture with the companies in that foreign country etc. are the methods for the entry of an multinational company to the international market. The company use export method to test the demand of their product in a target market. If the introduction of the product is good and it has enough demand in that foreign country to make more profit for the company then the company can follow another method for the mode of entry. Here Dominos used franchise method to enter into the target market. Dominos make agreement with a master franchise in each country. They are launch the products in a new market due to certain identifiable and recognizable reasons. The aim of the re launch is in existing and new market is to that the customers should judge the brand in a new view point.

International marketing strategies Marketing analysis PEST ANALYSIS


PEST analysis is used to analyse the macro environmental factors affect the marketing of the products of Dominos pizza. It includes political, economic, social, and economical factors.

Political factors:
Judicial system present in a country may adversely affect the business of company if it is not favourable for multinational company. Due the trend of globalisation now dominos cannot face such situation in a foreign country. But the laws of that country regarding the

employment, pollution control, and taxation should be followed by the company.

Economic factors:
In the target market if the economy is good it will be a favourable environment to start a business, because the purchasing capacity of the people will increase in a better economy. This condition is also applicable to Dominos also. If the people have more money they will buy more products. But if the inflation rate is high it will increase the price of raw materials and it automatically affects the price of the products

Social factors:
Dominos has basically a western culture because it is started in America. But when it starts as a multinational company it has to consider all segments of society. In each country the

culture, values beliefs, religion, traditions and food habits are different and it may the international market of the company.

Technological factors:
Now days efficient and modern technologies are available for baking industry. By using innovative technologies the company can improve the quality of its products. New

technologies can be used for advertising the products like social networks and internet. Daily transaction of the company, processing customer data, and future forecasting and decision making can be prepared by computers. Use new vehicles for transportation of goods and services will increase the efficiency of movement.

SWOT ANALYSIS
SWOT is used to analyse the micro environmental factors which affect the organisation. The factors analysing in SWOT analysis is strength, weaknesses, threats and opportunities of an organisation. The following part of this paper consists of SWOT analysis of Dominos pizza.

Strengths
By offering a wide range of pizzas Dominos is conquered the world market. The marketing strategy delivery within thirty minutes was a success. Their pricing strategy is affordable for all segments of consumers and they provide a good and hospitable ambience in their store. They supply quality products with the help of qualified employees. Dominos is specialised in one product that is pizza. Dominos possess ISO certification and their employees are highly motivated. They deliver the pizza according to the customers need.

Weaknesses
Dominos give their customers only the take way or delivery facility. They are not providing a restaurant to their customers sit and relax and enjoy the pizza. Dominos is a costly producer and they supply the products with high prices but they offer a small range of products mainly pizzas. They are mainly concentrating on western tastes. They have many outlets in Asian countries so they have to consider the eastern tastes also. The availability of Dominos restaurants are very few only outlets are present in all towns.

Opportunities
There are many opportunities for Dominos in target markets. If Dominos become more innovative and come up with more products it can increase its profit share and market share. Other opportunities are providing different sizes of pizzas in an affordable price and it will attract middle income group of the society.

Threats
The international market of Dominos was culturally diverse with people who have different beliefs and tastes. Hence Dominos tried to change their products according to the market.

They introduced several variations of pizzas in the menu like hand tossed, thin crusted pizzas to remain competitive and satisfy the specific segments of the customers. Dominos was very careful about the customer satisfaction regarding quality and pricing. The success of a company is to evaluate the business in customers viewpoint

Core Competencies
Dominos Pizza is the number one pizza delivery company in the world. While other pizza companies offer dine in facility Dominos Pizza offers to delivery pizza in record time of 30 minutes. Dominos Pizza has an advantage over other pizza companies since the dine in option is not available the cost involved in maintaining restaurants less.

Competitors
The biggest competitor for Dominos Pizza is Pizza Hut. Other competitors would include Papa Jones from an international brand perspective. In any given market both Pizza Hut and Dominos Pizza try to grab the bigger piece of the pizza pie. In Oman at present Pizza is established itself with its dine in option as well as delivery. Market penetration by Dominos Pizza was not successful like its competitor Pizza Hut. Pizza Hut in Oman has more out lets and established in key locations around the country. In Oman local customers spend their free
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time in Malls. Malls play an important aspect of day to day life. Malls are located in strategic locations of each area like Ruwi, Al Khuwair, ASeeb,Sohar ,Salalahetc Pizza Hut has established itself in all the Malls as a Pizza dine in restaurant. It is understood that competition reduces a product lifecycle which in turn induces companies to revise their products. Dominos Pizza need to revise their product market to understand the changing needs, the market expectations and perception of the different market A key issue facing Dominos Pizza is the market visibility. Other factors include locations, pricing, advertising, menu options and customer service. Dominos Pizza being a pizza delivery company is focused on the door step delivery of pizza. Other companies offers dine in option as well as delivery. Dominos Pizza only delivers pizza. The customer perception is based on this. And it is important for the customers to be satisfied during the short contact time a customer has with the Pizza delivery person. Challenges would consist of changing the existing market perception of Dominos Pizza in Oman. Also there is added reason to re-launch the brand with changes. Changes would include changes in the menu. Dominos at present offer their international standard menu to all customers. Keeping in mind the cultural mix in Oman, they would require diversifying the menu and adapting to the customers taste, lifestyle, language, value systems and perception. Dominos Pizza in Oman is required to innovate its products to keep in line with the changing preferences and taste of customers. The present financial crisis plays an important role as well. In times of recession people tend to spend less on going out and eating out. To suit such times Dominos Pizza is required to introduce value addition to their meals by providing value meal concept and prices need to be in line with its competitors

Brand Positioning and Advertisement Strategies

Advertising
Dominos through promotional mix can advertise the quality of their products, the price, services offered and the additional features compared to its competitors. Through promotion a company can inform the customers its benefits and advantages to increase its market share. IMC is considered as all sources of contact that a consumer has as potential delivery channels for messages and, makes use of all communication methods that are relevant to consumers

According to Jobber (2000),advertising has been defined as any paid form of non-personal promotion and presentation of ideas by an identified sponsor. Advertising can be done through television advertisements, radio, print media such as newspapers, magazines, booklets and billboard. Internet advertising is considered to be the latest form of advertising. Advantage of advertising is to communicate to a large number of customers at the same time. Through advertising a company can reach the masses or reach selected targeted markets. Dominos Pizza needs to advertise in both Arabic, English and Hindi media. The Hindi media is necessary to catch the attention of the possible customers from the Indian sub-continent. The existing marketing done by Dominos Pizza is in English television channels and newspapers. In order to reach the targeted market Dominos Pizza need to start advertising in Arabic and Hindi television channels that are broadcast mostly from India at prime time.

Sales Promotion
Muhlbacher( 2006), says except for personal selling, public relations and adverting, sales promotion consists of all other aspects. A short term sales increasing trick would be achieved through sales promotion. This would include free samples, coupons, contests etc. Dominos Pizza has introduced value menus, buy one get on free deals, family menu options to promote the new items in the menu. Customers would be hesitant to try the new products. Giving the new menu items through promotional tricks would reach the customers as free advertising. This would be effective sales promotion and in turn improve the effectiveness of the other aspects of promotional mix. All these activities go a long way in creating brand loyalty.

Conclusion and Recommendations


The success of Dominos Pizza will depend on the marketing research done. The feedback received would indicate the markets perception of the proposed changes. Have keen awareness of the competitors movements. It is very important to be on the same level or better of the competitors with respect to pricing and offers. The success of the plan can be measured by the increase in the market share and the number of orders during a given period. Reengineering and re-launching of the product is proposed. Re-engineering of the processes is followed to save time and enhance the customer satisfaction. Re-launching is to increase the market awareness of the product. The proposed strategy is based on the assumption the market share in the pizza industry would remain the same. Recommendations were made to re-launch with new products and to increase the variety of existing products. Dominos Pizza would remain as a pizza delivery company. In the event of any failure the option to open Dominos Pizza with dining in option to create more contact with customers are there.

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Reference:

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Macro and micro environment analysis of Dominos. Available at:[ on line] . URL: http://www.ukessays.com/essays/marketing/macro-and-micro-environment-analysisof-dominos-marketing-essay.php. [accessed on 3/1/2014]

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