Choose a well-established company in Malaysia preferably listed company from the main or

second board or any other well-known international company. Discuss in detail the activities of
the company. Do the following:

1) Identify and explain the market structure in which the company is operating.
Dominos Pizza is an USA restaurant chain and international franchise pizza Delivery
Corporation headquartered at the Domini Farms Office Park and the company are owned by
Dominos Pizza cofounder Thomas and James Monaghan in Ann Arbor Charter Township,
Michigan, USA. Dominos Pizza first franchise was at established in 1967 and first international
store was at 1983.
Dominos Pizza competes in a monopolistic competition (Single seller with considerable control
over supply and prices), because they compete with many companies that sell similar product;
pizza. Dominos Pizza is one of the largest Pizza chain in the world and Pizza Company in the
market, led by the Pizza Huts Company which own the biggest share in the market.
Dominos Pizza mission aiming to be the leading pizza delivery company in the world, while
competing with other big player in the market which is Pizza Huts, Papa John Pizzas, Pizza Inn
and Little Caesars.

2) Comment if there are barriers to entry.

Generally, fast-casual restaurants suffer from lack of switching costs, intense competition, and
low entry barriers. Domino `s pizza does not put a major entry barrier: If Domino `s pizza had
set a low price for their products, to have economies of scale, would have prevented other
participants may enter the market because they could not afford at that price. However, Little
Caesars took that putting its price to $ 79 and opted to open franchises in bulk, thus bringing the
product to customers and eliminating the dealers.

3) Identify its top five rivals company and comment on each portion of the market
share.
i.

Pizza Huts
Has the highest rating among competitive company, pizza huts has more than 7,200
restaurant in USA and more than 5,600 restaurant internationally in more than 90
countries. In contrast to Dominos, almost all Pizza Huts are dine-in restaurants. Pizza
huts serve pan pizza, as well as its thin n crispy, stuffed crust, hand tossed and
Sicilian. Other menu items include pasta, salads and sandwiches. Pizza Huts offer
dine-in service at its famous red roofed restaurants, as well as carryout and delivery
service. About 15 percent of all Pizza Huts are company-operated, whereas the
remaining stores are franchised.

ii.

Papa Johns international, Inc

Papa Johns operates 3883 pizza restaurant with 3,225 of being franchisee-owned and
682 being company-owned stores. Papa Johns has restaurants in all 50 U.S states and
32 foreign markets. The company currently has 16,500 full time employees and
markets its pizza under the slogan better ingredient

iii.

Hungry Howie's Pizza, Inc

Hungry Howie's Pizza, Inc. is the 11th largest pizza chain in the United States, with
575 locations. Its products include pizza, calzone-style subs, chicken wings and
tenders, bread, and salads. The corporation headquarters is located in Madison
Heights, Michigan in Metro Detroit. James Hearn opened the first Hungry Howie's on
Telegraph Road in Taylor, Michigan in 1973. Howies soon became a popular hangout
for students at nearby Taylor Jr. High and Taylor Center High Schools. Jim Hearn
decided to franchise their operation in 1982 and partnered with Jackson. They
awarded their first franchise the following year. Between 1974 and 1982, there were

several other independently owned Hungry Howie pizzarias opened in the MetroDetroit and Ann Arbor areas prior to franchisee sales. Within the first three years, the
company franchised 65 locations, and by 1990 the number had grown to 160. In
2005, the company opened its 500th store

iv.

Pizza Inn
Pizza Inn is an American restaurant chain and international food franchise,
specializing in American-style pizza and side dishes. The company is based in the
Dallas suburb of The Colony, Texas. In 1958, two Texas brothers, Joe and R. L.
Spillman. Opened the first Pizza Inn across from Southern Methodist University in
Dallas.
In the mid-80's, the restaurant chain had a commercial deal with the Von Erich family,
icons in Texas at the time, with Kerry Von Erich, Kevin Von Erich and Mike Von
Erich appearing in a series of televised commercials.
On June 3, 2011 Pizza Inn launched a new sister restaurant in Fort Worth, Texas,
known as Pie Five Pizza, that specializes in handcrafted pizzas ready in five minutes

v.

Little Caesars
Little Caesars is the third largest pizza chain in the United States. The Little Caesars
headquarters is located in the Fox Theatre building in Downtown Detroit, Michigan.
The company is famous for its advertising catchphrase, "Pizza! Pizza!" which was
introduced in 1979. The phrase refers to two pizzas being offered for the comparable
price of a single pizza from competitors.

4) Comment in detail on each company strategy.

Pizza Huts Strategy
Total market strategy:
Pizza Hut started with a single product i.e. Pizza but with different segments emerging and the
degree of competition increasing, it diversified into several products to serve different segments.
It came up with chicken nuggets, wedges, garlic bread, smiley etc.
International marketing strategy:
Pizza Hut started with local market strategy in Kansas, USA then moved on to regional markets
in and across USA. In 1968, Pizza Hut started its international movement by opening its 1st
restaurant in Canada. And today Pizza Hut is worlds largest pizza chain with its presence in
more than 100 countries.
Early Entry Strategy:
Though Pizza Hut was not the first entrants in the pizza market in USA. But Pizza Hut followed
an early entrant strategy. Customers knew what a pizza is but still there was huge potential to tap.
In order to become a leader, pizza hut continued to refine their product & develop new product to
suit their customers changing tastes. Ultimately Pizza Hut with its superior promotion,
manufacturing and distribution activities has turned out to be the winner.
Strong Commitment Strategy:
Pizza Hut has been operating in the pizza market by realizing all economies of scale in
promotion, distribution and manufacturing facilities. If Papa Johns or Little Caesars come out
with a new competitive pricing strategy or innovative product, then Pizza Hut quite aggressively
fights back by bringing more competitive prices or better innovations in product category. In
simple words, Pizza Hut takes all possible measures to defend its leadership position in the
market.

https://www.scribd.com/doc/53436740/Marketing-Strategy-of-Pizza-Hut#logout
Hungry Howie Strategy
Steve Jackson, who delivered pizza for that very first location, joined forces with Hearn to open
the second location in 1976, and the pair began franchising Hungry Howie's Pizza in 1982.
Today, there are 575 units open in 22 states, and Jackson is president of the company. The
business is focused on carry-out and delivery and is known as the home of "Flavored Crust
Pizza."
Since Hungry Howie's has 20-, 30- and 40-year-old locations, it's safe to say the product is a
proven winner. But having a 40-year tradition brings special challenges, too. To grow, it is
essential to constantly refresh the brand. To compete with the big national chains for a larger
market share, Jackson and his team developed a holistic growth strategy focused on getting and
keeping more customers. The effort includes a new store prototype that has a fresh,
contemporary look and feel. As new locations open and existing units convert to the new look,
the company's national ad fund is committed to aggressive marketing to increase positive
awareness and ultimately drive more traffic, more trial, and more sales.
The plan has to be customized by market because Hungry Howie's has heavy concentration in
Michigan and Florida, where broadcast makes sense, but that mode of marketing is not feasible
across all markets in 22 states. Where broadcast marketing makes sense, Hungry Howie's aims to
connect with the female consumer who is typically making the buying decisions for her family.
They've developed TV ads with a funny, quirky "Hungry Howie's Ad Agency" and bought highvisibility TV programming during "The Voice," "Modern Family," and even the Super Bowl.
In emerging or less mature markets, the company is committed to "brutally defending" the
mailbox with very targeted direct mail promotions that consistently build the brand and sell the
goods. Couponing is a fact of life in the world of pizza, and the company goes head-to-head with
the big chains. Howie's competes by leveraging its differentiated product with distinctive
creative materials, delivered when it matters most to their target customers.

http://www.franchising.com/articles/case_study_hungry_howies_marketing_and_branding_strate
gy_at_40.html

Pizza Inn Strategy

This section describes the five-year marketing and product objectives for Pizza Inn Inc. and the
target markets, points of difference, and positioning of its lines of pizza Inn stores.
Marketing and product objectives
Pizza Inn Incs marketing intent is to take full advantage of its expansion and unique taste
potential in order to expand its already set customer base and to increase profits. These are
detailed in four areas below:
Current Markets. Current markets will be expanded by increasing the amount of marketing
done in each area, which will incorporate the unique qualities that Pizza Inn has and its
willingness to bend to consumers wants and needs. This will encourage repeat purchases at the
stores and will decrease the need for new locations.
New Markets. By the end of Year 5, the increase in the marketing program and the expansion
into new customer bases by restaurant construction will make Pizza Inn a more competitive
corporation, rivaling Little Caesars and Papa Johns.
Food service.

Food service sales will include all of the kinds of pizza and buffet items that

Pizza Inn offers. Sales are expected to rebound from the negative growth to reach previous year
highs of $59.9 million.
New products. Pizza Inns presence in the pizza market is expected to expand through extensive
marketing and expansion programs in order to move into more states and regions. New flavors
and pizza combinations are continually being tested and introduced to the market, which will
also help expansion.

cdolan3.asp.radford.edu/final1.doc

Papa Johns Strategy

Papa john is to build the strongest brand loyalty of all pizza restaurants. The key elements of
strategy include:
Menu.
Domestic Papa Johns restaurants offer a menu of high-quality pizza along with side items,
including breadsticks, cheese sticks, chicken strips and wings, dessert items and canned or
bottled beverages. Papa Johns traditional crust pizza is prepared using fresh dough (never
frozen). Papa Johns pizzas are made from a proprietary blend of wheat flour, cheese made from
100% real mozzarella, fresh-packed pizza sauce made from vine-ripened tomatoes (not from
concentrate) and a proprietary mix of savory spices, and a choice of high-quality meat (100%
beef, pork and chicken with no fillers) and vegetable toppings. Domestically, all ingredients and
toppings can be purchased from their Quality Control Center (QC Center) system, which
delivers to individual restaurants twice weekly. Internationally, the menu may be more diverse
than in their domestic operations to meet local tastes and customs.
Efficient Operating System.
They believe their operating and distribution systems, restaurant layout and designated delivery
areas result in lower restaurant operating costs and improved food quality, and promote superior
customer service. Their domestic QC Center system takes advantage of volume purchasing of
food and supplies, and provides consistency and efficiencies of scale in fresh dough production.
This eliminates the need for each restaurant to order food from multiple vendors and commit
substantial labor and other resources to dough preparation.
Commitment to Team Member Training and Development. They are committed to the
development and motivation of their team members through training programs, incentive
compensation and opportunities for advancement. Team member training programs are
conducted for corporate team members, and offered to their franchisees at training locations

across the United States and internationally. They offer performance-based financial incentives to
corporate and restaurant team members at various levels.
http://www.wikinvest.com/stock/Papa_John's_International_(PZZA)/Strategy
Little Caesar Strategy
Little Caesars main marketing objective is to be the best take-home pizza chain by exceeding
customer expectations with extraordinary value, great tasting products, and outstanding people
while providing strong returns to its stakeholders. These are detailed in four areas below:
Current Markets. Currently there are approximately 4,500 delivery-carryout units located
throughout the United States. Within the locations in the United States, four of them are located
within 12 miles of Radford University. However, The chains true store count or gross sales
numbers much less same-store sales numbers have never been discussed publicly except for
some rare and veiled revelations carefully doled out over the past two years. The chain was
named best pizza chain in 4 out of 12 customer satisfaction attributes: value for money, speed of
service, convenience of locations and overall appeal to kids. Little Caesars also was ranked in the
top three of 58 quick- service chain rated on 12 key quality attributes.
New Markets. The chain announced its plans to add hundreds of franchisees over the next
several years and add hundreds of stores worldwide in 2006. While maintaining its focus on
domestic unit growth. Little Caesars Pizza wants to continue to increase sales growth, consumer
acceptance, and to attract new franchisees. Eighty percent of all existing units are franchised, and
Little Caesars is looking to expand into untapped markets through area development agreements
and single unit operators dedicated to strong local marketing
Current Products. Little Caesars Pizza sells various toppings on different types of pizzas such
as deep dish, Baby Pan! Pan!, and original round pizza. It also sell side items such as break
sticks, cheese bread, various flavors of wings, and salads with different types of dressings. Little
Caesars even have various sandwiches such as Italian, ham with cheese and tuna.
New Products. Little Caesars Pizzas newest market strategy is a $5.00 "Hot-N-Ready" pizza
promotion introduced to compete with other companies in its industry. The pizza chain hopes the
competitive pricing and an original format of pick-up your own fresh, hot, large cheese or

pepperoni pizza anytime for $5.00 are the advantages needed when planning a global expansion.
Since Little Caesars is in the fast-food pizza industry it is in its mature stage, it is experiencing
fierce price competition among many pizza restaurants such as Dominos and Pizza Hut.
http://jhu4.asp.radford.edu/porfoliopages/Portfolio/MKTG%20Plan.pdf
5) Is there a market leader? If so is the company is in a threatening or save position?

McDonald (Market Leader of the Fast Food Restaurant)

Market leader in fast food restaurant nowadays for our information is McDonald Company
because the statistic showed the percentage rate in Fast food restaurant is more to McDonald get
the highest consumer start from that company was established. The McDonald's Corporation is
the world's largest chain of hamburger fast food restaurants, serving around 68 million customers
daily in 119 countries across 35,000 outlets. Headquartered in the United States, the company
began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948,
they reorganized their business as a hamburger stand using production line principles.
Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently
purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the actual corporation
itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the
franchisees, as well as sales in company-operated restaurants. In 2012, the company had annual
revenues of $27.5 billion and profits of $5.5 billion. According to a 2012 BBC report,
McDonald's is the world's second largest private employerbehind Walmartwith 1.9 million
employees, 1.5 million of whom work for franchises.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items,
soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has
expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.
The business began in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald at 1398 North E Street at West 14th Street in San Bernardino, California (at
34.1255N 117.2946W). Their introduction of the "Speedee Service System" in 1948 furthered

the principles of the modern fast-food restaurant that the White Castle hamburger chain had
already put into practice more than two decades earlier. The original mascot of McDonald's was
a man with a chef's hat on top of a hamburger-shaped head whose name was "Speedee". By
1967, Speedee was eventually replaced with Ronald McDonald when the company first filed a
U.S. trademark on a clown-shaped man having puffed-out costume legs.

On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the
description "Drive-In Restaurant Services", which continues to be renewed through the end of
December 2009. On September 13 that same year, the company filed a logo trademark on an
overlapping, double-arched "M" symbol. By September 6, 1962, this M-symbol was temporarily
disfavored, when a trademark was filed for a single arch, shaped over many of the early
McDonald's restaurants in the early years. Although the "Golden Arches" logo appeared in
various forms, the present version as a letter "M" did not appear until November 18, 1968, when
the company applied for a U.S. trademark.
The present corporation dates its founding to the opening of a franchised restaurant by Czech
American businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth
McDonald's restaurant overall; this location was demolished in 1984 after many remodels. Kroc
later purchased the McDonald brothers' equity in the company and led its worldwide expansion,
and the company became listed on the public stock markets ten years later. Kroc was also noted
for aggressive business practices, compelling the McDonald brothers to leave the fast-food
industry. Kroc and the McDonald brothers all feuded over control of the business, as documented
in both Kroc's autobiography and in the McDonald brothers' autobiography. The San Bernardino
restaurant was demolished in 1976 (1971, according to Juan Pollo) and the site was sold to the
Juan Pollo restaurant chain. This area now serves as headquarters for the Juan Pollo chain, as
well as a McDonald's and Route 66 museum. With the expansion of McDonald's into many
international markets, the company has become a symbol of globalization and the spread of the
American way of life. Its prominence has also made it a frequent topic of public debates about
obesity, corporate ethics and consumer responsibility.

Dominos Pizza (How they save their Profit and save position)
After doubling sales and earnings over the last few years, Domino's Pizza is chasing a bigger
share of the $11 billion fast-food market by taking sales from fried chicken outlets and drivethrough outlets like McDonalds and Hungry Jacks. Not content with his market-leading 25 per
cent share of the Australian pizza market and a runner-up position in Japan, Domino's chief
executive Don Meij is going after consumers who would rather snack on KFC's Original Recipe
chicken or a McDonalds' Big Mac than a Cheesy Crust Meat Lovers or Thin 'n Crispy
margherita."Whilst we are big in pizza we are only 8 per cent of fast-food retail in Australia," Mr
Meij told Fairfax Media after reporting a better than expected 44 per cent increase in first half
profit and upgrading his full-year growth forecasts. When it's a big part of the economy and we
are still a small proportion of the market we think there's still lots of scope to grow," he said.
Domino's has no plans to open drive-through outlets or branch into fried chicken or burgers.
Rather, it plans to tap into the consumer attributes that drive consumption of these products,
including the desire for instant gratification, by offering faster and easier ordering and delivery,
cheaper menus and new toppings and crusts."The behaviour that drives the drive-through
customer we want to shift to us," said Mr Meij, who plans to unveil more details in six months.
"We are chasing the consumer that buys that product."In the meantime, Domino's is rolling out
GPS tracking, which enables customers to track pizza deliveries on their smart phones, watches
and TVs, as well as faster online and mobile phone ordering and deliveries using electric "ebike" bicycles.In Japan, Domino's is now the second largest player in the pizza market and
expects to be number one by the end of the year after opening new stores and formats, relocating
older stores and introducing new toppings and crusts.

Domino's first-half net profit jumped 44.2 per cent to $29.1 million, fuelled by healthy demand
for pizza in Australia, New Zealand and Japan and a long-awaited rebound in sales in Europe.
Revenue soared 29.5 per cent to $343.6 million and network sales rose 24.2 per cent to $715.4
million as a record 92 new stores augmented 9 per cent same-store sales growth. Mr Meij
attributed the gains to management changes in Europe, the acquisition of 75 per cent of the
Domino's master franchise in Japan almost two years ago, the use of technology to drive
demand, and new products such as lime and chilli pulled pork pizzas in Australia and goats
cheese toppings in France and Belgium.
In Australia, same-store sales rose at the fastest rate in four years after Domino's introduced a
new $4.95 Cheaper Everyday menu and Pizza Mogul, which allows customers to customise
pizzas online and market their creations through social networks, taking a share of the profit of
the pizzas they sell. Mr Meij said sales growth had accelerated in the first six weeks of the
current half - particularly in Japan - and margins had fattened across the board as Domino's
gained scale, prompting the company to upgrade full year profit forecasts for the second time in
six months. He now expects the group to lift full-year net profit by around 32.5 per cent and
earnings before interest, tax, depreciation and amortisation by about 30 per cent, compared with
previous guidance of 25 per cent, taking two-year EBITDA growth to 125 per cent.
Same-store sales are expected to rise 6 per cent to 8 per cent, from earlier forecasts of 4 per cent
to 6 per cent, and Domino's will open between 180 and 200 stores across the globe, compared
with 132 in 2014. "Regardless of the economic environment ... we still have strategies that are
able to drive sales and profit growth," Mr Meij said. Domino's shares jumped 22 per cent to a
record $33.35 before closing at $32.05 and are now almost double their value 12 months ago.
"They continue to run the business really well and continue to beat expectations," said Hyperion
Asset Management chief investment officer Mark Arnold. "It looks like Europe has the potential
to be substantially bigger than the Australian business over the longer term - it means that the
intrinsic value of the business is a lot higher than the current share price," Mr Arnold said.
Domino's increased its interim dividend to 24.6 a share from 17.7, payable on March 10.