Dominos Marketing Strategy in USA

The terms of STP include market segmentation, target markets and positioning. Segmentation is about identifying the segments for the products or services, and grouping consumers by some criteria such as within a group which respond similarity. The potential segmentation variables are such as age, sex, income, educational level, marital status, culture and etc. Useful segments should be profitable, accessible and measurable. The objective for segmentation is to find the attractive markets and strategy involve select which segment to target, break market into components and regroup into market segmentation. Dominos had targeted consumer who looking for inexpensive pizza

quickly because customer are very price sensitive, increase prices will led to dec rease of sales. Dominos are more focus into delivery and carryout customer compare to dine-in stores. Viewing in demographic, Dominos seems not to have a specific target and just targeting greatest number of people and to be the leader in online pizza ordering. After segmentation, it will goes to the target market and to find out which segment should be targeted. This is the real objective that marketer want to achieve in market. A good target market need to understand the demographic profile of the product category, must know to compare with competitors, the present of the population and segments must be identifiable.

Dominos started with targeting students which located near University of North Carolina and had served 25,000 enrolled students. Dominos

identify the best way to reach as many students as possible. In Malaysia, Dominos target is trying to expand in nationwide by 2014. According to President and Chief Operating Officer Ba U Shan-Ting, outlets will be launch in Kelantan, Terengganu and Pahang next year and enter Sabah and Sarawak in 2015 (TheMalaysiaTimes.com). Next, after target market will move on to the positioning which this is a vital element and skill in a good

marketing. In positioning, need to determine the way consumer currently think about the products, decide how you want consumer think about your product and form out how to reposition. Understanding the levels of competition are very important because positioning apply in all levels of competition such as industry level, product level and corporate level, so what is Dominos positioning. Dominos positioning is to reach the customer who values a quick service pizza by using the geographic information software to reach nearer locations. Dominos trying to serve a hot pizza in delivery therefore it created the 30 minute delivery guarantee and use heat wave insulated delivery bag. In 2009, Dominos achieve a 92% on time delivery and achieve the growing segment in online ordering markets through website. Most of the Dominos domestic stores are placed in the mid-sized or large cities or nearby the college or university campuses. Most of the companies which are successful are concentrating with the 4pswhich are product, price,

place and promotion (Gregory Dean, 2010). Product is about the quality, design, features, brand name, packaging, sizes and services. Dominos had to focus on flavours to capture the market. Example, Butter chicken and the Masala were c o n f i n e d t o t h e No r t h w h i l e M u t t o n G h o n g u r a a n d C h i c k e n C h a t t i n g c o n f i n e d t o t h e south. Price is concern about the payment period, discount, credit terms and allowances. Dominos fixed a price of Rs 265 for a 12 inch pizza. Indians are value and not price sensitive, Dominos set the price high because the high quality of ingredients and offer value to customer. In Australia and Spain , Dominos reduce the price and give discount to attract customer for the Pepperoni and Jalapeno pizza to compete with Pizza Hut. Place is about the transport, location, inventory, coverage and etc. Dominos has the largest network of outlets across the world. Refer into the channel of geographic region or industry which a product or services is sold to which segment such as adults, family and business people are also refer into the environment which the product is sold may affect the sales. Lastly, promotion is concerning in the public relations, direct marketing, sales force, advertising and sales promotion. Dominos had use advertising, sales promotion including the education publicity for promoting the services. U.S. pizza delivery and carry-out are the largest components of the U.S. QSR pizza category. They are also highly fragmented. Pizza delivery, through which a majority of the retail sales are generated, had sales of $10.9 billion in the

twelve months ended November 2008. As the leader in U.S. pizza delivery, believe that convenient store locations, simple operating model, widelyrecognized brand and efficient supply chain system are competitive advantages that position to capitalize on future growth.

Other Strategies used internationally:

Third-party suppliers
The active relationships of 15 years or more with more than half of major suppliers. Suppliers are required to meet strict quality standards to ensure food safety. They review and evaluate suppliers quality assurance programs through, among other actions, on-site visits, third party audits and product evaluations to ensure compliance with standards. They believe that the length and quality of relationship with suppliers provides them with priority service and quality products at competitive prices.

They currently purchase pizza cheese from a single supplier.

In 2007, the Company entered into a new arrangement with this supplier. Under this arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the Company agreed to a five year pricing period during which it

agreed to purchase all of its primary pizza cheese for the Companys United States stores from this supplier or, alternatively, pay to the supplier an amount reflecting any benefit previously received by the Company under the new pricing terms.

Trademarks
It has many registered trademarks and service marks and believes that the Dominos mark and Dominos Pizza names and logos have significant value and are important to business. Its policy is to pursue registration of trademarks and to vigorously oppose the infringement of any of its trademarks. It licenses the use of registered marks to franchisees through franchise agreements.

Leverage strong brand awareness.

Believe that the strength of Dominos Pizza brand makes one of the first choices of consumers seeking a convenient, quality and affordable meal. They intend to continue to promote brand name and enhance reputation as the leader in pizza delivery. In 2007 it launched the campaign, You Got 30 Minute, which built on the Companys 30-minute delivery heritage.

In 2007 and 2008, each domestic stores contributed 4% of their retail sales to advertising fund for national advertising in addition to contributions for marketlevel advertising. Intend to leverage strong brand by continuing to introduce innovative, consumer-tested and profitable new product varieties (such as Dominos Brooklyn Style Pizza and Dominos Oven Baked Sandwiches), complementary side items.

AUSTRALIAN AND NEW ZEALAND ONLINE SUCCESS

Ordering a pizza, pasta or dessert from improved menu has never been so easy. With a click of a button, customers can select from menu, add drinks and sides, pay with cash or credit and watch as their order is made right before their eyes. With signi cant focus on the technology side of the Dominos business, have seen some impressive results over the past 12 months.Australia is now averaging more than 23% of orders placed online.

ECLUB DATABASE
Brand loyalty has also grown signi cantly with eClub member database. Each month tens of thousands of people join to receive special Dominos offers and

communication direct to their email box. With a database reaching into the hundreds of thousands, weekly Electronic Direct Mail (EDM) pieces have given us the opportunity to target offers to a stores local area, resulting in greater loyalty. The growth in our eClub database has also enabled Dominos to drive the creative look and feel of EDMs including personalised CEO letters and themed pieces around new menu items and signi cant calendar events.

ONLINE ADVERTISING
Greater integration across all media channels for the new menu launch in February 2009 helped increase Dominos presence in online advertising which resulted in great pro ling opportunities for online ordering capabilities. All Dominos banner advertising, including the successful Choc Lava Cake banner, includes a click through function enabling customers to place an order immediately after seeing an online banner.

WEBSITE CREATIVE SUCCESS

The Dominos websites in Australia and New Zealand have undergone vast improvements in the way promotional products are communicated to customers.

The most visually-tantalising of these promotions are the over the page animations for Choc Lava Cake and Sticky Date Pudding with sauce running down the page when people enter the sites. Creative ideas such as this have helped drive relevant product sales and ticket averages for online ordering.

iPHONE
Over the next few months Dominos will launch a dedicated iPhone application for online ordering.As our customers and the broader Australian market adopt new technologies, Dominos is committed to ensuring we remain at the forefront with new innovations. The iPhone application will provide customers with greater freedom to order their favourite Dominos meal wherever they are. This Australian-rst for the pizza industry will help drive online business and cement the position as the leading innovator.

E-Commerce

In 1999, Dominos Pizza became the first pizza delivery company in the world to offer nation-wide internet and interactive television ordering. Delivered pizza

can be ordered via website (www.dominos.co.uk) or via any of the UKs major interactive TV services. National Hotline

In 2004, Dominos launched a National Hotline, enabling customers to order pizza from their nearest store, without having to remember individual store numbers. By dialling 087 12 12 12 12 from a landline, or a previously registered mobile, customers are connected to their nearest store. If their number is not registered, Dominos Pizza technology will triangulate the customers co-ordinates and ask whether they would like to order from their nearest store or request the post code for the store they would like the delivery made to.