Marketing in Action Case Real Choices at Domino\'s Pizza is big business. Americ
ID: 331075 • Letter: M
Question
Marketing in Action Case Real Choices at Domino's Pizza is big business. Americans spend over $40 billion on specialty "delivery expert" car, the DXP. The DXPs are refash- pizza every year. With more than 59,000 U.S. stores that sell ioned Chevrolet Sparks that come equipped with a working and deliver pizza, customers have lots of options from which to choose. Dominos wants more and more of them to make 80 pizzas per trip as well as a large number of drinks, side Domino's their only pizza delivery store "warming oven" in the rear of the car. The cars can hold items, and other delivery products. According to Dominos In 1960, with a $500 down payment and $900 bor- rowed, Michigan-based brothers Tom and James Monaghan, purchased a small pizza store called DomiNick's. Soon after the Domino's logo, and the side panel displays the reflective that, James sold his half of the business to Tom, who in 1965 graphic of the Domino's brand. Other details include hubcaps renamed the company Domino's Pizza, Inc. For the next two the Domino's logo and the recognizable illuminated decades, the company continued to grow and in 1983 opened Domino's car topper ts 1,000th Domino's store and its first international store in Winnipeg, Manitoba, Canada. In 2010 Domino's Pizza's celebrated its 50th anniversary and opened its 9,000th store guy in a white lab coat talks about the features of the car worldwide. Today it has almost 12,000 stores including those and another promotes a $5.99 pizza deal with 0 percent in 80 international markets with global sales in 2014 of $89 APR for an unlimited time. The message that Dominos billion. This success has led to the company to consistently Shopes consumers get is that everything Dominos offers- being ranked in the Top 10 in Entrepreneur magazine's annual listing of great franchise opportunities the DXP comes equipped with a puddle light projecting the Domino's logo on the ground. The front fascia displays The humorous DXP ads mimic auto advertising. In one, he little delivery car races across the desert, in another, a rom emoji orders to a delivery vehicle-improves the pizza rdering process. Of course, there's no guarantee that the Recently, growth of the retail pizza industry has slowed because of intensified competition from other types of restau rants and an increased level of consumer demand for healthier maybe only option food choices. In this market, where there is little room for XP ads can have a positive impact on sales, that they an convince consumers to make Domino's their first and growth, Domino's must give current customer reasons to stay loyal and persuade potential customers to give them a try You Make the Call Domino's spends the majority of its $100 million-plus 13-34. What is the dec advertising budget on traditional television ads. The message of the recent "AnyWare" campaign is that you can use any device to place your Domino's TV, or smartwatch. The individual commercials highlight dif- ferent celebrities showing how easy it is to order food using their favorite devices. Eva Longoria orders a pizza using her TV remote, Sarah Hyland, an actress on Modern Family, texts her order with a pizza emoji, and The Avengers actor Clark GreggBased on ar Schuman, Demin's Again Ues Tehrebgy Busion Billinty'Compunwod Fetnuary 29,2016,it/)www.comput orders by tapping on his smartwatch ision facing Domino's? 13-35. What factors are important in understanding this deci sion situation order whether via text, tweet,3-36. What are the alternatives? 13-37. What decision(s) do you recommend? 913-38. What are some ways to implement your recommen- dation? Following the AnyWare campaign, Domino's latest ad-3 vertising campaign is not even about pizza-it's about thecage.co n stranyar-arsing..car compary-za325cune 2 2016 8Explanation / Answer
Based on the case, the challenge dominos management is facing it retain the existing customer base and add new potential customers. As mentioned in the case, Dominos has become a worldwide brand with over $89 billion global sales. This has prompted Dominos to be considered as one of the best companies across the world. The company has grown well in stature, brand recognition and obtained a prominent place in the mindset of the consumer.
Few things from the case highlight the issues that Dominos is facing. They know that they have reached the saturation point and so is trying new ways to keep the consumers interested in their products and approaches. Few of them are:
• AnyWare Campaign: this focused on helping the consumers order the food from any device as they preferred. They could order the pizza using text, tweet, TV or even a smart watch. To ensure this, dominos invested lot of money into researching the data integrity and movement between multiple interfaces so as to ensure the orders are placed correctly with the correct preferences and address. They have enlisted famous celebrities to help in this activity too such as Eva Longoria, Sarah Hyland and Clark Gregg. To facilitate better ordering experience they are using latest technologies. This shows that dominos is trying to capture the tech savy younger generation who would all these features.
• Delivery Expert car, DXP: this is another initiative taken by dominos to capture the consumers in upcoming markets. The DXP`s are cares which have a warming oven present in them. Each car as mentioned in the case can carry 80 pizzas, side dishes, drinks and other requirements. In addition to this, the recognizable branding and the innovative method can easily help in capturing the curious consumer. In addition to this, they have also started to run media ad`s. these ads would have delivery cars run across desert and highlight the various features of the cars.
• The growing concern regarding the fast food industry face is regrinding change in mindset of people towards a healthier lifestyle. Diet and low carb food are becoming a preference among the consumers and this has led to a slow growth in the market. The above mentioned initiatives are another way to ensure the growth even though is slower is still sustainable and continuous.
The above points show the problems Dominos is facing. They are facing growing concerns from the community regarding the health benefits of fast food industry and is slowly moving towards a healthier lifestyle. To ensure this do not affect the business globally, dominos is trying out new technologies, products and distribution mediums. They help in reaching out to the mass audience and in getting the required sales numbers.