Domino’s Pizza marketing mix

About Domino’s Pizza: An Introduction

Founded in 1960, Domino’s is the largest pizza store chain in the world with 18,848 stores as of January 2022. The company sells pizza in more than 90 countries. Domino’s Pizza has adopted a largely Franchisee operated business model which is operated mainly by independent franchisees. According to the latest estimates, 98% of the Domino’s pizza stores are owned and operated by the independent franchisees.

Apart from great quality food, Domino’s is also known for its competitive prices and great customer service. The main source of its revenues are the royalties and fees that the company charges from its franchisees, followed by the sales generated by supply chain operations. In recent years, the company has focused on expanding its international footprint. The number of Domino’s stores in the Asian markets including India, Japan and China has increased significantly. Domino’s opened its first franchised store in 1967 and since then it has seen a lot of domestic and international expansion. Despite the impact of the pandemic on the QSR sector in the US and other markets, the company experienced growth in sales and revenues driven mainly by its investment in digital technology.

In this Domino’s marketing mix, we will discuss the four Ps of the pizza brand including product, place, price, and promotion.

Domino’s Pizza Marketing Mix:

Product Mix of Domino’s Pizza:

Domino’s is the largest pizza brand in the world with a strong international presence and runs its operations inside and outside the US mainly through franchisees. Apart from a wide range of great tasting pizza, the company also offers other food products to customers across various markets. It is a market leader in both dine in and take away segments in the QSR pizza sector. One of the leading factors that has driven higher growth and popularity of the brand is its focus on food quality and customer preferences. The principal menu of Domino’s pizza features pizza products (both veg and non veg) in varying sizes and crust types including thin crust and cheese burst. However, the menu is not limited to only pizzas but also includes sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts and soft drink products. The pizza toppings offered by Domino’s can also vary by country and culture. For example, while it offers cheese and corn pizza in India, in South Korea it offers the Octopus Bomb Shrimp which features shrimp, octopus, vegetables, feta cream and horseradish sauce. Overall, customers can find enough variety in terms of taste and sizes at Domino’s stores. The company’s focus on menu innovation has helped it maintain the popularity of its pizza in various markets.

Place Mix:

Domino’s is an international pizza brand with a strong presence across around 90 markets where it sells its products. The principal market of Domino’s is the United States, where all its company owned stores are located. However, the company has also continued to cement its position in the international market as the number of Domino’s international stores has grown at an impressive rate in recent years. In the Asian markets particularly including India, China and Japan, the number of Domino’s stores increased significantly in 2021. Worldwide, the number of Domino’s pizza stores reached 18,848 in January 2022. In the Indian market, the number of Domino’s stores increased to 1,495 from 1,313 a year ago. The number of stores operational in China grew to 472 in 2021 compared to 363 a year ago. In Japan, the number of Domino’s stores increased to 882 in 2021 compared to 742 a year ago. The company also runs supply chain operations in the United States and Canada. Domino’s operates 21 regional dough manufacturing and supply chain centers in the U.S., two thin crust manufacturing facilities, one vegetable processing center and one center providing equipment and supplies to its U.S. and certain international stores. In Canada, the company operates five dough manufacturing and supply chain centers. Its supply chain operations supply more than 7,100 stores in the US and Canada with various foods and supplies. Around 98% of the company’s stores are operated by independent franchisees. As of January 2022, Domino’s had 375 company owned and 6,185 franchised stores operational in the United States. The number of international stores was 12,288 in January, 2022. The company has substantially improved its international footprint in the recent years.

Price Mix:

The US QSR industry is marked by heavy competition where there are a large number of fast-food brands competing for market share. In the pizza category, Domino’s competes with national and local fast-food brands in the United States and international markets. Overall, the level of price competition in the US QSR sector is very high since competitive prices are critical to maintaining sales and customer loyalty apart from food quality and service. Domino’s has adopted a simple formula which is to serve great quality food at competitive prices with excellent customer service. Its competitive pricing strategy is a key reason that the company is enjoying superior customer loyalty in higher demand in both its domestic and international markets. In the QSR sector, due to the high level of competition, most well-known brands follow a competitive pricing strategy. In order to maintain product quality and support its own and franchisee operations in the US and Canada, the company also runs its own supply chain to provide its franchising partners with supplies at affordable prices.

Promotions Mix:

Domino’s enjoys strong popularity and brand awareness both inside and outside the United States as the largest pizza brand. Its strong brand image is based on its great product quality and excellent customer service. The Domino’s pizza brand is easily recognizable in most corners of the world. However, despite the strong brand awareness, the company also invests heavily in marketing and promotions to maintain sales and market share. The QSR sector is marked by heavy competition and promotions are key to maintaining sales and growth momentum. Domino’s pizza promotes its brand using digital channels and through its stores as well as other promotional methods. However, the company also maintains a strong focus on customer experience to drive superior loyalty. Its stores worldwide play a crucial role in driving the popularity of the brand and growing brand awareness. The company’s app and websites are also critical marketing channels for the brand which it uses to serve its customers, for offering exciting discounts and driving higher customer engagement. Apart from that, Domino’s has also maintained an impressive presence on the various social media channels and engages its followers worldwide using social media promotions.

A few last words:

Domino’s has achieved a market leading position in the QSR sector driven by a firm focus on product quality, innovation and customer experience. The company has seen strong growth in sales worldwide which is a result of its continued focus on technological innovation.

In the recent years, the company had been strategically investing in digitalization which helped it survive the impact of the pandemic. It is serving its customers using online channels like its app and website as well as stores.

The company supports its franchisee’s operations in the US and Canada through its supply chain operations which is a key factor that drives operational excellence of the Domino’s system.

Domino’s has managed to strengthen its competitive advantage in the QSR sector through a focus on several factors including product quality, marketing, customer experience and technological innovation.

The company continues to expand its international footprint riding on its current success. While the QSR industry both inside and outside the US is experiencing intensifying competition, Domino’s is positioned well to find higher success in the coming years.

Other Sources: Domino’s Pizza 2021 annual report.