Published by MBA Skool Team, Last Updated: August 09, 2021
Marketing Strategy of Dominos analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Dominos marketing mix, help the brand succeed in the market.
Dominos marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Dominos Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Dominos marketing strategy can be explained as follows:
Dominos is one of the leading global pizza outlets. The product line of Dominos is mainly concentrated on various kinds of pizzas which are customized with respect to the local markets. In America the most popular offered by Dominos is the pepperoni pizza. In other places it ranges from a lot of vegan pizzas to other non-vegetarian pizzas. The size of the bases has a lot of variety and are of various types. A variety dips, sauces and toppings are also included. Domino’s pizza can be customized as per the preference of the customer. It also contains a variety of pastas both of non-vegetarian and vegetarian types. Apart from pizza breads there are other flavored breads on the menu. The side items offered by Dominos also include chicken wings, bacon and other flavored chicken dishes. All these are the main product mix in the pizza brand’s marketing mix. The dishes are also accompanied with drinks for which it has tied up with Coca Cola and sell all the soft beverages and major juices made by Coca Cola. The Dominos menu also majorly consists of various types of pizzas, chicken crusts, flavored breads, pastas, side dishes ranging from dips, desserts, chicken items and sandwiches, burger pizzas, mousse cake, choice of toppings. The soft beverages and other drinks again are tied up with Coca Cola.
Image: company website
Dominos Price/Pricing Strategy:
Below is the pricing strategy in Dominos marketing strategy:
Dominos has got a very competitive pricing for its pizzas.
Since Dominos has two major competitors which are almost equally or even more spread than it is it has to keep competitive prices. The prices are differentially done with three sizes available and the non-vegetarian pizzas being charged relatively higher. Also the pricing of pizzas and other eatables in its marketing mix is so done that the segment one size is catering to does not overlap with the other. Also as we go on customizing the charges are on the basis of part added to the pizza. The side dishes do not have choices and are priced at one price. The beverages sold by Dominos are quite higher than that of normally sold at the general market because of the convenience. Frequently, the brand also sells combos at the lower price during a promotional period or a festive season.
Dominos Place & Distribution Strategy:
Following is the distribution strategy in the Dominos marketing mix:
Dominos operates on a franchise based model where 97% of its business is franchise owned. Currently there are around 17000 Dominos stores globally. In the United States around 4000+ domestic franchise stores and 800 around franchisees operating more than one stores. Internationally there are more than 7000 stores of Dominos. Outside the United States, India is the next hotspot destination having more than 1000 stores. It has several dough manufacturing centres and 1 equipment supply centre, 1 vegetable processing centre and 1 pressed plant centre in America. Similar kind of proportions are maintained globally although the machines and other equipment are supplied by Dominos itself.
Dominos also has presence online as 95% of the transactions are done online through apps and on its websites with more than 30 countries making orders online. The brand utilizes not only its platform for delivery, but also promotes itself on food deliver apps.
Dominos Promotion & Advertising Strategy:
The promotional and advertising strategy in the Dominos marketing strategy is as follows:
Dominos does promotion and advertising aggressively in its marketing mix. Dominos does majority of its promotions on its websites, mobile apps and personalised SMS to individual customers to gain more attention by making them aware of the new offers and discounts. Dominos also promotes itself through TV commercials where it claims to deliver pizza with a 30 minute guarantee for home deliveries. It also tied up celebrities regionally to better connect through the Dominos advertisements. Dominos also has featured in many newspapers also for various new innovative products it launches in its menu. Dominos also offers various discount promotions on various days of a week ranging from 10% discounts to full pizza free, also any side dishes free and bundling techniques are used to attract customers.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Dominos.
Dominos staff is very much trained although there is not much scope of innovation to do in the customer service as they have to meet minimum standards. The Dominos employees undergo training as per the training manual and according to the guidelines provided by the dedicated learning and development team. Employees are also encouraged to provide ideas for improvement through the classroom training and other developmental tools. The innovations are supported through rewards under various schemes. There is also a stringent feedback system which is linked to the performance system and hence makes the employees accountable for their actions and behavior on the workplace. It also supports various certifications and other external development programs. Also the employees up to the higher management wear the uniform of Dominos which shows the equality and strong values it maintains in the organization.
The Dominos restaurant has two methods of service that is order at the restaurant and order online which could be taken away or delivered at home. Both these processes in its marketing mix are its service offering backbone. As it guarantees thirty minutes delivery Dominos prioritizes the home deliveries first as they need to be prepared quickly and then taken over by the delivery boy to be delivered. The Dominos restaurant deliveries are also done on a token basis which determines the queue number and customers can collect their pizzas after they have paid for their orders. In the restaurants they have to choose from the menu at the many counters which are at the front end of the kitchen from a menu being displayed in front of them. After the order being placed immediate payment is made after which they wait for being served. The Dominos restaurants also has a cleaning staff which regularly maintains the hygiene of the restaurant. In the online deliveries there is the pizza tracker system where you can track your order phase from order taking till the delivery reaches home. The customers can also give the feedback directly to the attendees.
Dominos’ biggest physical evidence is its attractive family outlets. The customer receives the hot pizza in a specialized covering which flashes the promotions and Dominos logo. The size of the packaging differs with the size of the orders and all individual items are generally packed separately. The employees have to be in their typical attire consisting of the Dominos T-shirt and cap and also with minimum level of conduct. The payments are made through cash or card in restaurants and for online orders there are variety of payment methods include cash, card and mobile payments. The Dominos customer support is also online during the restaurant working hours for taking telephonic order as well as address to the customer grievances. The customer support is available through website or phone with their countrywide unique number. Hence, this concludes the Dominos marketing mix.
Dominos Pizza is a restaurant chain based in America founded in 1960. Dominos has its headquarters in Michigan, U.S.A. and serves worldwide across 80+ countries. Dominos is one of the largest pizza chain in the world and sells on an average more than 1.5 million pizzas per day. It focuses on local markets through a large chain of franchise owners. Dominos has a revenue of around $4 billion and net income of around $700 million. It is one of the top companies which has maximum number of its ordering happening through online.
Dominos’ major competitors globally are Papa John’s and Pizza Hut. It has an employee base of 250,000.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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