Service Marketing

Recommendations to Domino’s

1. Since most of the people order pizza on a monthly basis (49% of the total respondents), we suggest Domino’s to introduce weekly discount coupons so as to spread out the sales throughout the month and experience surge in revenues.

2. On the basis of the findings, offline advertising can be attributed for most of the visibility for Domino’s thus we suggest Domino’s to incorporate a balancing strategy wherein they can further invest in their offline marketing as well as improve on their online promotional campaigns thus resulting in overall higher return on marketing investment (RoMI).

3. Since 83% of the respondents are not willing to pay more than the current price, thus Domino’s is facing moderate price elasticity in demand. So, decreasing prices can be a good revenue increasing strategy. However, we also suggest Domino’s to refrain from further increase in prices.

4. On the basis of survey results, Domino’s enjoys 65% market share in Ranchi but still it faces stiff direct competition with Pizza hut standing at 28%. Also, 49% of the respondents have Pizza Hut have their second preference. Thus, Pizza hut can be a direct substitute for Domino’s offerings. Due to high substitutability with Pizza hut, it also experiences a high cross price elasticity of demand such that any increase in price of Domino’s offerings can significantly kill the market share for Domino’s.

5. Since 57% of the respondents are willing to substitute pizza with non pizza food categories, therefore Domino’s also face threat of high functional substitutability. Hence, they can work on similar lines of Burger Pizza and can introduce hybrid product categories. (For Example – Pizza Papri Chat. Pizza Pani Puri, Pizza Vada, Pizza Dosa, Pizza Malai Vada, etc.)

6. We suggest Domino’s to introduce a new product line for health conscious consumers and thus expand its’ product portfolio.

New Product Line: Health Conscious Market

Domino’s was given 0 out of 100 for five of the six categories those are prevention of obesity, nutrition increase, Product and menu labelling as to provide information to customer, promotion to youngsters and the adults, including that it doesn’t have no strategic document for commitment on nutrition and health, no interest of public to reduce calories and excess fats, and no policy to reduce fast food exposure to children.

According to the report by Deakin University’s Global Obesity Centre Domino’s claimed it met all recommendations regarding nutrition and health and at the same time not taking away “customers’ treats”.

Based on the type of crust, the amount of cheese and toppings used, pizza can be rated anywhere from nutrition favoured diet to a diet disaster.

Whole