Dominos Marketing Strategies And Technology Commerce Essay

Harmonizing to Dominos corporate web site ( 2010 ) , Dominos pizza was founded in 1960 by Tom and James. It was bought and started as a little pizza shop in Michigan. With $ 500 as initial investing, Tom joined forces with his brother and together they opened a pizza bringing shop in Ypsilanti, Michigan. Initially it was known as Dominick ‘s. As Monaghan ‘s operations grew, the original proprietor of Dominick ‘s decided to keep rights to the name.Under deadline for a Yellow Pages ad, driver Jim Kennedy came up with the name Domino ‘s Pizza.

The three points of Dominos the fact that Tom ab initio started 3 shops.In February 1968 a fire accident took topographic point in Monaghan ‘s original pizza shop. Advertising director Bob Cotman had a narrow flight from the edifice, mounting down a fireman ‘s ladder. Although the pizza store started operations within two yearss, Domino ‘s lost stored goods deserving $ 40,000. ( information from the UK site ( 2010 ) . The staff pulled together, with each bing shop location responsible for bring forthing one pizza point cheese, dough, chopped toppings which drivers so ferried from one shop to the following to maintain operations running. After that a really hard state of affairs arose that he had to cover non merely the entire fire losingss of $ 150,000, of which merely $ 13,000 were paid by insurance but besides had to pay rentals of five new franchises and enroll five new shop operators every bit shortly as possible. In 1975, the hallmark case was launched by Amstar against the company.

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Furthermore, they started readying to establish themselves on an international graduated table. In 1989, the Domino ‘s Pizza changed wholly when the Deep Pan pizza was launched for the really first clip in 20 five old ages as the company had the pressing demand for responding to market demand. This measure proved critical in supplying strength to the fiscal foundation and made certain the growing of Domino ‘s Pizza because they started runing their five thousandth shop. The concatenation of Dominos Pizza grew rapidly as they were operational in all varied topographic points.

Despite Domino ‘s Pizza grew up at diverse locations and started making good concern, they were still a really traditional company. ( History of Dominos pizza ) Tom retired in 1998. He was the 1 who expanded Domino ‘s concatenation around the universe doing it the universe ‘s largest pizza presenting company known for speedy service eating houses around the universe. In add-on, he gave bulk of the $ 1bn earned through the sale of Domino ‘s to charity.

Selling Schemes

In 1973, Domino ‘s Pizza introduced the policy that clients must be having their pizzas non subsequently than 30 proceedingss of puting their orders, or if non they would take bringing of the pizzas free. The warrant was condensed to $ 3 off in the mid 1980s. In 1985, Advertising Age placed Domino ‘s ad “ among the fastest-growing money shapers in the eating house industry.

” The company had to maintain gait non merely with its ain growing but besides with that of its rivals, including the industry leader, Pizza Hut, which had more than 4,000 units to Domino ‘s 2,300.In the old twelvemonth, Domino ‘s exhausted 249 % more in advertisement, media. On the other side, the biggest menace for Monaghan ‘s imperium entered in bringing concern that is Pizza Hut in 1986.

( Advertising age, Domino ‘s inc. 1985 )In 1992, the company settled a instance filed against it by an Indian household whose lady was killed by a Domino ‘s bringing driver. The company paid the household US $ 2.8 million.

In 1993, Domino ‘s settled yet another instance in which the company was sued because a Domino ‘s bringing driver ran a ruddy visible radiation and collided with a lady ‘s vehicle. The adult female was paid about US $ 80 million. The warrant was dropped the same twelvemonth because of the “ public perceptual experience of foolhardy drive and duty ” , harmonizing to Monaghan. ( Founder of Domino ‘s ) “ Domino ‘s Truck Kills 2 En Route to Delivery, ” ( Chaudhury,1998 )In December 2007 Domino ‘s introduced a new motto, “ You Got 30 Minutes ” , lodging to the earlier promise but acquiring short of promising bringing in a half hr. ( Dominos corporate web site 2010 ) In add-on to this, Dominos changed their bill of fare in 1992 and introduced for the really first clip a non pizza point to their bill of fare. Being Domino Pizza already on manus, the devising of staff of life sticks was non so different which was the introduced point.

The company kept on advertisement for many old ages that if the bringing of their pizzas took longer than 30 proceedingss, the pizza would be delivered at no cost. This was besides copied by the Ninja Turtles film and sketchs. The benefits to Domino Pizza were tremendous as 1000000s of childs heard the name of Domino Pizza out of their favorite sketchs and they were the prospective clients.

In 1993, Domino Pizza discontinued this policy and came up with a new one stating that if a client was unhappy he could on his will hold a new pizza or a refund. By 1994, Dominos Pizza selling policy winded and they introduced poulet wings besides in to the bill of fare. Not merely this, the company hit the African market as they opened a new shop in Egypt. 1996 was the twelvemonth when Dominos Pizza web site was launched. That twelvemonth the company declared planetary gross revenues to be about $ 3 billion. In the 1980s, Domino ‘s Pizza was good known for its advertizement run having “ The Noid ” . ( Dominos corporate web site 2010 )In the same manner, the Super Bowl Sunday was the most feverish and really busy pizza bringing twenty-four hours of the twelvemonth and Dominos Pizza sold over a million pizzas, which was 42 per centum more every bit compared to normal Sunday trading volume.Harmonizing to Dominos selling manager Robin Auld ( Noelle McElhatton, selling manager direction ) Dominos franchisees pay a 5 % royalty of their net gross revenues into Domino ‘s National Advertising Fund ( NAF ) .

That ‘s centrally managed and used to maximise gross revenues and turn trade name consciousness. He said door-dropped bill of fares are really effectual for prosperity of telling pizza and we use intelligence paper and royal mail. Domino ‘s besides launched new offers that can be ordered by national hotline ( 087 12121212 ) , in-store and online at www. or SMS telling system, which was the first clip in UK in 1999. The Domino ‘s text service requires merely five infinitesimal initial on-line process.

Firstly clients register and make their favorite bill of fare giving them each an easy to retrieve name, bringing reference and nomadic figure for order. Second, the chosen bill of fare is typed straight from nomadic phone. Customer can set their recognition card inside informations while registering so that they can utilize their card when they order and pay with hard currency upon bringing. In February 2003, the company announced multiyear partnership with the National Association for Stock Car Auto Racing ( NASCAR ) through which Domino ‘s became the “ Official Pizza of NASCAR. ” Harmonizing to intelligence paper article ( Detroit News, March 26, 1997 ) Domino ‘s delivered $ 2.

8 Billion in universe broad gross revenues last twelvemonth. By 2011 the value of the place bringing nutrient market was estimated to hold reached ?1,474 million in the UK and expects to turn 30 % to ?1,918 million. At Domino ‘s Pizza, the values are summed up in a chant that ‘s Sung in the“ Sell more pizza, have more merriment! ”

DPZ – Dominos Pizza Inc ( NYSE )

A 12:00 AM ET, 03/04/2010AA Last: A 13.70A Change: A -0.36A % Change: A -2.

56 %A Volume: A 2,982,700A AA Open:14.06AA High:14.06AA Low:13.36AA Previous Close:14.

06AA Market Cap:805.0MAA Shares Outstanding:58.8MAA EPS:1.38AA 52wk High ( 3/3/2010 ) :14.13AA P/E Ratio:9.93AA 52wk Low ( 3/9/2009 ) :5.61AA Dividend:0.00AA Dividend Date:N/AAA Output:0.

00AA Average Volume:572,000.00A

Figure 1: Marketshare ( Dominios corporate web site )

Fiscal information

Domino ‘s Pizza UK & A ; IRL plc fiscal consequences. [ 1 ] [ 9 ] [ 11 ] [ 12 ]

Year to December1

Gross ( ?A million )

EBIT ( ?m )

Net net income ( ?m )

Net incomes per portion ( P )





1200361. 1: – Histories to 2005 prepared harmonizing to United Kingdom Generally Accepted Accounting Principles. Histories from 2006 onwards prepared harmonizing to International Financial Reporting Standards.

Figure: 2Performance of the Dominos pizza2007200620052004200320022001System gross revenues ( ?m )293.6240.1200.7174.3142.3118.998.4Shops at start of twelvemonth451407357318269237215Shops at year-end501451407357318269237( Dominos corporate web site )Figure: 3


Strength3,500 planetary operating franchises in over 50 statesWell-built trade name equity maintained by intense selling runsEffective supply concatenation & A ; distribution networkA with fast operations


FailingDecelerate further turning and diminishing existing-stores gross revenues


OpportunityTurning presence in emerging markets, peculiarly in India, ChinaLeverage supply concatenation & A ; distribution system to present new productsA


MenaceEver-changing consumer nutrient gustatory sensationsAdverse effects due to foreign currencyTough multi-national rivalsHard competition with local pizza stores and little chaons


Like any other thing, there is a positive every bit good as a negative point and the negative point of Dominos is that it can be a load on one ‘s fundss.

The big pizza ‘s can hold a monetary value of ?14.99. The side orders besides can be on mean ?4 each and that in anyways non inexpensive. Occasionally, there are offers introduced by Dominos.AHowever, one can state that dominos is great because the nutrient is fresh and ever warm when delivered and the gustatory sensation is antic.The group invests a batch of clip and money in continuing the positive repute of their trade name and has remained successful rather a batch.

Domino ‘s trade name selling activity is financed through a National Advertising Fund ( NAF ) which is made up of franchisee parts. Dominos pizza sells hot and newly backed. There is neither a deep sauteing nor for any signifiers of cooking like baking on a gas-fired conveyor oven. Furthermore, Dominos believes to run into rigorous quality criterions to guarantee nutrient safety steps that meet or transcend any applicable authorities guidelines and that is the ground it has come frontward as a strong rival of pizza hut and has outclassed it in many states.

Today there are over 8,000 Domino ‘s Pizza shops in more than 50 states, using over 145,000 squad member and affecting over 2,000 franchisees. Globally Domino ‘s Pizza delivers more than one million pizzas every twenty-four hours. So, it equates 25 to 30 portion clip or full clip occupations in every new shop. In the same manner, construct of place bringing means it ‘s cut down noise of shop and traffic.


History of Dominos available from htpp: //www.Domino ‘s [ Accessed June 22, 2010 ]Financial informations available from hypertext transfer protocol: //Domino’s_Pizza_UK_ & A ; _IRL and hypertext transfer protocol: //www.

domino-s-pizza-inc # cite_note-19 Dt: 21-Aug-09 [ Accessed June22, 2010 ]hypertext transfer protocol: //, Interviewed with Dominos marketing manager Robin Auld [ Accessed June 22, 2010 ]QSR Magazine, ( 27January 2006 ) ‘Dominos pizza bringing in 8000 shop ‘ . ( Accessed June 22, 2010 )“ Domino ‘s Delivered $ 2.8 Billion in Worldwide Gross saless Last Year. ( Detroit News, March 26, 1997. )“ Domino ‘s Truck Kills 2 En Route to Delivery, ” ( Chaudhury, 1998 State ‘s Restaurant News, August 29, 1988. ) ( Accessed June 22, 2010 )Hume, Scott, and Raymond Sera five, “ Domino ‘s Burned Up Over Pizza Hut Spot, ” Advertising Age, January 7, 1991.

( Accessed June 22, 2010 )Food information from hypertext transfer protocol: // Franchises information available hypertext transfer protocol: // Information available from hypertext transfer protocol: //www.domino-s-pizza-inc # cite_note-19httpp: //


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