Domino’s Pizza Goes Natural
MKG310 – Introduction to Marketing
Colorado State University – Global Campus
Professor Michael Aubry
October 25, 2015
The pizza industry is a mature and highly competitive market, while the organic/natural and vegetarian market is one that is seldom addressed, yet consumers are increasingly showing their interests in such foods. Domino’s Pizza has the opportunity to be an innovator in this groundbreaking field, and by only seeing a slight increase in costs of sales and advertisement, creating and releasing menu items that are organic/natural based or vegetarian will help Domino’s dominate the competition, while gaining ...view middle of the document...
d.). Along with being the world’s second-largest pizza chain, Domino’s has a strong competitive advantage over its competition via being a leading innovator in technology-driven initiatives, like the revolutionary pizza tracker that launched in 2009 allowing consumers to track the progress of their pizza from beginning to end, or more recently in 2014 when Domino’s unveiled their app update combining the Pizza Profile and Ford SYNC AppLink System, and ultimately enabling consumer’s to easily and safely order their favorite Domino’s item while traveling (History, n.d.; Zacks Investment Research; 2015). Domino’s Pizza values their customer’s opinions and overall satisfaction above all else, and in 2009 when the company was voted into a tie for last place with Chuck-E-Cheese for worst pizza, they embraced transparent communication and launched a marketing campaign that most deemed “insane”; Domino’s announced to the world that they realized their pizzas were terrible quality, and they would be relying on consumer’s feedback to fix the problems with their recipe (History, n.d.; York, 2010). This unheard of strategy was a massive risk for the pizza company, but after eighteen months of trial and error, their new and improved pizza was released, and resulted in Domino’s Pizza experiencing a record-breaking revenue jump of 14.3% by the end quarter one in 2010 (Le & Pashut, n.d.). The following marketing plan proposes another groundbreaking revolution for Domino’s Pizza to stay ahead of the competition while promoting a healthier alternative lifestyle for their consumers, while bringing in a new marketing segment.
The following situational analysis contains a thorough examination of Domino’s Pizza’s strengths, weaknesses, opportunities, and threats using a SWOT analysis and a comparative chart that scrutinizes Domino’s current business situation and social trends on the horizon versus the competition (Grewal & Levy, 2014). The analysis overall will highlight Domino’s positive attributes as well as potential components that could prevent goal achievements, prospects the company should consider, and inherent threats that the pizza chain may face (Grewal & Levy, 2014).
Figure 1 displays the strengths, weaknesses, opportunities, and threats that Domino’s is facing. One of Domino’s main strengths comes from their emphasis on innovation technology, which contributed to approximately 50% of U.S sales in 2014 being placed through a type of digital channel offered by the company, and reach a revenue of $4 billion annually in global digital sales (Our Strengths, 2014; Zacks Investment Research, 2015). In a time where companies are failing to be honest and transparent in their operations, Domino’s vows to remain transparent and brutally honest, even if it involves running a national ad campaign to show consumers you’ve realized the old recipe produced bad quality pizzas, but you’re dedicated to creating a...