Dominos Marketing Strategies And Technology Commerce Essay

dominos Marketing Strategies And Technology Commerce EssayAccording to dominoes corporate website (2010), dominos pizza pie was founded in 1960 by Tom and James. It was bought and started as a trivial pizza store in Michigan. With $500 as initial investment, Tom joined forces with his brother and together they open(a) a pizza delivery store in Ypsilanti, Michigan. Initially it was known as Dominicks. As Monaghans trading operations grew, the original owner of Dominicks decided to maintain rights to the anatomy.Under deadline for a Yellow Pages ad, driver Jim Kennedy came up with the name dominos pizza. The three dots of dominoes the fact that Tom initially started 3 stores.In February 1968 a hassle accident took place in Monaghans original pizza store. advertizement manager Bob Cotman had a pin up escape from the building, climbing down a sunburnmans ladder. Although the pizza shop started operations within two mean solar days, dominoes lost sto blood-red goods worth $40 ,000. (information from the UK site (2010). The staff pulled together, with each existing store location responsible for producing virtuosoness pizza item cheese, dough, chopped toppings which drivers then ferried from one store to the next to keep operations running. afterwards that a very difficult situation arose that he had to cover not exactly the total fire losses of $150,000, of which only $13,000 were paid by insurance merely also had to pay leases of five sore franchises and recruit five new store operators as soon as possible. In 1975, the trademark suit of clothes was launched by Amstar against the club. Further more(prenominal) than, they started preparation to launch themselves on an international scale. In 1989, the dominoes Pizza changed entirely when the recently Pan pizza was launched for the very first term in twenty five course of instructions as the caller-out had the urgent need for reacting to market demand. This step proved vital in providing stren gth to the pecuniary foundation and made certain the growth of Dominos Pizza because they started operating their five thousandth store. The cooking stove of Dominos Pizza grew quickly as they were operational in all varied places. Despite Dominos Pizza grew up at diverse locations and started doing good business, they were still a very traditional company. (History of Dominos pizza) Tom retired in 1998. He was the one who expanded Dominos chain around the world do it the worlds largest pizza delivering company known for quick service restaurants around the world. In auxiliary, he gave majority of the $1bn take in through the sale of Dominos to charity.Marketing StrategiesIn 1973, Dominos Pizza introduced the policy that customers must be receiving their pizzas not later than 30 minutes of placing their orders, or if not they would take delivery of the pizzas free. The guarantee was condensed to $3 off in the mid 1980s. In 1985, Advertising Age placed Dominos ad among the faste st-growing bills makers in the restaurant industry. The company had to keep pace not only with its own growth tho also with that of its competitors, including the industry leader, Pizza Hut, which had more than 4,000 units to Dominos 2,300.In the previous course of study, Dominos spent 249% more in advertising, media. On the other side, the biggest threat for Monaghans empire entered in delivery business that is Pizza Hut in 1986. (Advertising age, Dominos inc. 1985)In 1992, the company settled a case filed against it by an Indian family whose lady was killed by a Dominos delivery driver. The company paid the family US $2.8 million. In 1993, Dominos settled to that extent another case in which the company was sued because a Dominos delivery driver ran a red light and collided with a ladys vehicle. The woman was paid almost US $80 million. The guarantee was dropped the similar year because of the public perception of reckless driving and responsibility, check to Monaghan.(Found er of Dominos) Dominos Truck Kills 2 En channel to Delivery, (Chaudhury,1998)In December 2007 Dominos introduced a new slogan, You Got 30 Minutes, sticking to the earlier promise but getting short of promising delivery in a half hour. (Dominos corporate website 2010) In addition to this, Dominos changed their menu in 1992 and introduced for the very first time a non pizza item to their menu. be Domino Pizza already on hand, the making of bread sticks was not so different which was the introduced item.The company kept on advertising for many years that if the delivery of their pizzas took longer than 30 minutes, the pizza would be delivered at no apostrophize. This was also copied by the Ninja Turtles movie and cartoons. The benefits to Domino Pizza were enormous as millions of kids perceive the name of Domino Pizza out of their favourite cartoons and they were the prospective customers. In 1993, Domino Pizza cease this policy and came up with a new one stating that if a custome r was unhappy he could on his will have a new pizza or a refund. By 1994, Dominos Pizza marketing policy winded and they introduced chicken wings also in to the menu. Not only this, the company hit the African market as they opened a new store in Egypt. 1996 was the year when Dominos Pizza website was launched. That year the company declared global gross sales to be nearly $3 billion. In the 1980s, Dominos Pizza was well known for its advertisement campaign featuring The Noid. (Dominos corporate website 2010)In the same way, the Super Bowl Sunday was the most hectic and very busy pizza delivery day of the year and Dominos Pizza sold over a million pizzas, which was forty-two percent more as compared to normal Sunday trading volume.According to Dominos marketing director Robin old (Noelle McElhatton, marketing director management) Dominos franchisees pay a 5% royalty of their net sales into Dominos National Advertising neckcloth (NAF). Thats centrally managed and used to maximize sales and grow brand awareness. He said door-dropped menus are very effective for prosperity of ordering pizza and we use news stem and royal mail. Dominos also launched new offers that can be ordered by national hotline (087 12121212), in-store and online at www.dominos.co.uk. or SMS ordering system, which was the first time in UK in 1999. The Dominos text service requires only five minute initial online procedure. Firstly customers register and create their favourite menus giving them each an voiced to remember name, delivery address and mobile number for order. Secondly, the chosen menu is typed directly from mobile phone. node can put their credit menu details while registering so that they can use their card when they order and pay with cash upon delivery. In February 2003, the company announced multiyear partnership with the National Association for beginning Car Auto Racing (NASCAR) through which Dominos became the Official Pizza of NASCAR. According to news make-up art icle (Detroit intelligence operation, March 26, 1997) Dominos delivered $2.8 Billion in world wide sales last year. By 2011 the value of the home delivery food market was estimated to have reached 1,474 million in the UK and expects to grow 30% to 1,918 million. At Dominos Pizza, the values are summed up in a chant thats sung in theSell more pizza, have more funDPZ Dominos Pizza Inc (NYSE)1200 AM ET, 03/04/2010 extreme13.70Change-0.36%Change-2.56%Volume2,982,700Open14.06High14.06Low13.36Previous Close14.06Market pennant805.0MShares Outstanding58.8MEPS1.3852wk High (3/3/2010)14.13P/E Ratio9.9352wk Low (3/9/2009)5.61Dividend0.00Dividend DateN/AYield0.00Average Volume572,000.00Figure 1 Marketshare (Dominios corporate website)Financial informationDominos Pizza UK IRL plc financial results.191112Year to December1Revenue (million)EBIT (m)Net profit (m)Earnings per share (p)2008136.022.515.710.92007114.918.313.28.4200695.013.710.06.2200581.710.48.35.1200474.29.16.74.1200361.66.04.62.8 Note 1 Accounts to 2005 prepared according to United Kingdom Generally Accepted Accounting Principles. Accounts from 2006 onwards prepared according to International Financial Reporting Standards.Figure 2Performance of the Dominos pizza2007200620052004200320022001System sales (m)293.6240.1200.7174.3142.3118.998.4Stores at start of year451407357318269237215Stores at year-end501451407357318269237(Dominos corporate website)Figure 3SWOT abstractSTRENGTHS3,500 global operating franchises in over 50 countriesWell-built brand equity maintained by enthusiastic marketing campaignsEffective supply chain distribution networkwith fast operationsWEAKNESSESSlow merely growing and decreasing existing-stores salesOPPORTUNITIESGrowing presence in emerging markets, particularly in India, chinawareLeverage supply chain distribution system to introduce new productsTHREATSEver-changing consumer food tastes inauspicious effects due to foreign currencyTough multi-national competitorsHard competitio n with local pizza shops and small chaonsConclusionLike any other thing, there is a positive as well as a negative point and the negative point of Dominos is that it can be a shoot on ones finances. The large pizzas can have a price of 14.99. The side orders also can cost on average 4 each and that in anyways not cheap. Occasionally, there are offers introduced by Dominos.However, one can say that dominos is great because the food is fresh and always warm when delivered and the taste is fantastic.The pigeonholing invests a lot of time and money in upholding the positive reputation of their brand and has remained successful quite a lot. Dominos brand marketing activity is financed through a National Advertising Fund (NAF) which is made up of franchisee contributions. Dominos pizza sells hot and freshly backed. There is neither a tardily frying nor for any forms of cooking like baking on a gas-fired conveyer oven. Furthermore, Dominos believes to play off strict quality standards to ensure food safety measures that meet or exceed any relevant government guidelines and that is the reason it has come forward as a strong competitor of pizza hovel and has outclassed it in many countries. Today there are over 8,000 Dominos Pizza stores in more than 50 countries, employing over 145,000 team member and involving over 2,000 franchisees. Globally Dominos Pizza delivers more than one million pizzas every day. So, it equates 25 to 30 part time or full time jobs in every new store. In the same way, concept of home delivery means its concentrate noise of store and traffic.BibliographiesHistory of Dominos available from htpp//www.Dominos uk.com Accessed June 22, 2010Financial data available from http//Dominos_Pizza_UK__IRL and http//www.domino-s-pizza-inccite_note-19 Dt 21-Aug-09 Accessed June22, 2010http//www.brandrepublic.com/Discipline/DirectMarketing/News/926816/Britains, Interviewed with Dominos marketing director Robin Auld Accessed June 22, 2010QSR Magazine, (27 January 2006) Dominos pizza delivery in 8000 store.(Accessed June 22, 2010)Dominos Delivered $2.8 Billion in Worldwide Sales Last Year. (Detroit News, March 26, 1997.)Dominos Truck Kills 2 En Route to Delivery, (Chaudhury, 1998 Nations Restaurant News, August 29, 1988.) (Accessed June 22, 2010)Hume, Scott, and Raymond Sera fin, Dominos Burned Up Over Pizza Hut Spot, Advertising Age, January 7, 1991. (Accessed June 22, 2010)Food information from http//www.recipepizza.com/the_history_of_dominos_pizza.htmDominos Franchises information available http//www.dominos.uk.com/franchising/Dominos Information available from http//www.domino-s-pizza-inccite_note-19httpp//www.dominos.co.uk.