Analysis of Marketing Environment
Domino’s is known as one of the largest and renowned company in the world. The services and products offered by the company are very attractive and it induces customers to buy the product. Domino’s offers the door to door delivery and also provide take away service from the outlet. It is seen that the outlets of the company is expanded globally. The company provides Italian American food to the customers and also offers variety of dishes. The company is a recognized fast food industry and it mainly deals in offering variety of pizza to its customers. The company was set up in 1960 by Tom Monaghan and in U.K it has celebrated its 25th anniversary in 2010. The company is measured as one of the biggest chains of the fast food sector. If the company considers the proper marketing plan then the company can easily accomplish the targets and objectives. So, in this report the emphasis is given on the marketing plan which should be taken into consideration in the Australian market. The company gives main focus on attracting consumers towards the company.
Company analysis
The company analysis plays a great role to sustain in the competitive environment. The company has many competitors in the market, which gives direct impact on the working pattern. By conducting the company analysis of Domino’s it is seen that the company has to take into consideration effective strategies which enhance the profitability of the organization. There are various competitors in the market, which can also be considered as a threat to the organization (Venkatesh Rathi and Patwa, 2015).The strategies like giving products at low price or offering discount vouchers to the consumers will be very beneficial for the customers. The company has attained growth and there are varieties of pizza which are offered by the company to its consumers. It is seen that there are various changes which gives direct impact on the profitability of the organization. The company has a high level of competition in the market, so to compete in the market it is very essential to take attractive strategies into consideration. The company has attained the expansion in many countries (Ozturk,Joiner and Cavusgil, 2015).
Market analysis
Domino’s is considered as a biggest food industry. The company began its operations from a single store in 1960 and now it is considered as renowned leader of the pizza industry. The company conducts its operations in more than 11,000 stores in more than 70 countries. It is seen that the company provides or delivers more than 400 million pizzas globally. Pizza was only the product which is there in the dominoes but now to sustain in the market, the company has extended the product line and there are various items like pasta which is available on the outlets. The company has a good size of share and just requires more dominance to grow in the market (Hamouda, 2016).
Company Analysis
Economic environment
There are various economic changes which gives direct impact on the company environment by taking into consideration the global nature. Dominoes have an opportunity to grow its operation in the market. The economic recession has given negative impact on various industries. The revenue and the profits are reduced and needs of the consumers for the products and the services is minimized. It is analyzed that in the Australian market the main issue which arises is worried with taxation issues. There are various issues concerned with the financial status of the company and it gives effect on the working pattern of the company. The company should try to reduce and should immediately take into consideration accurate measures that can be beneficial for the organization (Guido, Peluso, Mileti, Capestro, Cambo and Pisanello, 2016).
Socio cultural environment
Now day’s people are giving more focus on the health. So people reduce the consumption of fast food. The consumers are induced to buy the product that give positive impact on the health. In the Australian market the company should try to give focus on introducing new pizza or the product which is beneficial for the health of an individual. The company should give attractive menu to the consumers with a variety of items. Various campaigns should also be taken into consideration by the company, so that the customer can easily know about the product (He, Zha and Li, 2013).
Technological environment
There are various opportunities that are available with the customers. Internet gives support to the consumer to buy the product by sitting at home. The company provides 30 minutes delivery to the customers; this strategy is very beneficial as it attracts more and more customers towards the product. Earlier it was difficult for the company to expand its market. Now days it is seen that the customers are giving orders by sitting at home. So, the company should also give focus on the internet marketing (Shah, 2013).
Political environment
The fast food industry should take into consideration policies and procedures that can be beneficial for the organization. Dominoes should give main focus on keeping the margin large than those countries where the restrictions are analyzed.
Legal environment
The environment in which the company takes into consideration the day to day activities are dependent on the Australian market. The company should try to operate each and every activity under the legal framework. The laws and rules which are imposed should also be taken into consideration by the company and should be followed in a proper manner (Syed, 2016).
Market Analysis
Pizza hut is considered as a very strong competitor of the Domino’s. It is seen that both the brand plays a great role in satisfying the customers’ requirements. There are various stores of dominoes as compared with pizza hut. Domino’s is considered and preferred for its quick delivery of the product. If we compare with pizza hut it is analyzed that the prices are low if the comparison is made with pizza hut. Domino’s covered a large market share and also expanded its operations according to the needs and wants of the consumers. There is a tough competition in this sector, so to reduce the threat the main step that should be taken by the organization is concerned with offering products at low price or to promote the product in the market (Constantinides, 2014).
SWOT is concerned with the strength, weakness, opportunity and threats that are in the market. It is analyzed that every organization has its own strength, weakness, threats and opportunities. By taking into consideration domino’s the SWOT analysis is explained below:
Strengths
At present domino’s is considered as a leader of the market which provides varieties of pizza in a way that there are no competitors who are prevailing in this sector. The image of the company has also induced the customers to buy the product and satisfy their needs and wants. Domino’s provide various things like quality, taste of the product with qualified staff. It is also seen that the employees who are working in the organization are motivated towards their work (Hartley, 2015). The employees of the organization have various resources to conduct the activities of the organization. They offer various services like free home delivery service and also the quality products. The main strength which is possessed by the company is that they have a complete service restaurant as well as the delivery services. There are many competitors who do not have restaurants. By the restaurants the company gives focus on different segments that other chain of pizza cannot do (Armstrong, Adam, Denize & Kotler, 2014).
Weaknesses
The weakness is concerned with the overhead costs, due to the restaurants. This cost is not faced by the competitors. If the overhead cost is high, then the prices of the product are also raised. It is analyzed that domino’s is not considered as a low cost producer. They produce goods that focus on the quality and enhance the level of satisfaction of the customers. The company should take into consideration the technique which is concerned with innovation of products. Saturation in the market has also caused a difficulty to expand the operations in the market. The company should emphasis on minimizing the weakness and it can be only done when the company takes into consideration accurate steps, so that the company can achieve its goal and objectives (Aaker & Biel, 2013).
Environment Analysis
Opportunities
There are many chances that are present in the market. The company also has various opportunities, but the right time is needed to grab it. The company can come up with various products that are liked by the consumers. It is analyzed if the product is diversified then the market share can be easily expanded. The company should consider the opportunities and should utilize it in a proper way, so that the profitability can be easily attained. Product innovation is a strategy that can be very useful for conducting its operations in the Australian market. The company should also adopt new product line strategy for expansion (Olszewski, 2015).
Threats
Threats are seen or present in every organization. It is analyzed no business can survive without threats. The main threat to the company is that there are many competitors in the market. At present the closest competitors is pizza hut who is establishing new branches in a speedy way. The threat to the company can also be from the fluctuation that is taking place in the currency. The company should give emphasis on the variation pattern so that the risks can be reduced in an effective manner (Subhasis, and Kannan, 2015).
Target Market
Domino’s should target on introducing the new pickle supreme pizza. The main aim is to catch the attention of the consumers by introducing new products, as it is seen that this product is less served in the past. It is seen that there is a change in the social and demographic segments in Australian market has brought an enhancement in the demand for the fast food industry and it should target on the students, families. The company should try to provide quality products to the consumers. The main focus of the company should be on the teenagers, families. The company should offer those products that can be consumed by all the age groups (David and David, 2016).
The company should introduce new pickle supreme pizza, which will induce the customer to buy the product. The company should take into consideration various product so that attraction can be grabbed of the consumers. It is very necessary that the company should adopt the innovative strategies to survive in the market. If company do not consider the innovative strategies that it can be difficult to survive in the competitive environment. So, the company should try to give main focus on introducing new and innovative products to the market. The services are also considered as an important factor for the organization. Services should be effectively offered to the consumers, so that the level of satisfaction of the customer can be enhanced (Sinha and Sheth, 2017).
Competitive Analysis
Product
The Company should take into consideration the adaptive strategy so that the market can be captured easily. Like for example the company should localize the flavors related with mustard sauce.
Price
The dominoes should adopt the product pricing strategy which offers various products at low price to the consumers.
Place
The company should give focus on comprising the segments like domestic stores, domestic supply chain. It is seen that the company has 4070 franchise stores in more than 70 international markets.
Promotion
Domino’s should use proactive approach which will help to promote its products in the market. The company has been recognized as the power of internet to communicate with potential customers globally (Smita and Muley, 2015).
Conclusion
By considering this report, it is determined that for growth the proper marketing strategies should be taken into consideration. Domino’s should see that the marketing budget should be in a proper control. The strategies, on which discussion is made in this report, should be implemented in a proper way to achieve the goals and purposes in the American market. The main aim of the company should be on providing quality products to the customers so that expansion can be easily done of the company.
References
Aaker, D. A., & Biel, A. (2013). Brand equity & advertising: advertising’s role in building strong brands. Psychology Press.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.
Constantinides, E., 2014. Foundations of social media marketing. Procedia-Social and behavioral sciences, 148, pp.40-57.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach, concepts and cases.
Guido, G., Peluso, A.M., Mileti, A., Capestro, M., Cambo, L. and Pisanello, P., 2016. Effects of background music endings on consumer memory in advertising. International Journal of Advertising, 35(3), pp.504-518.
Hamouda, M., 2016. Company-Customer Interaction via Social Media: Contributions to the Marketing Mix. In Managing Public Relations and Brand Image through Social Media (pp. 160-170). IGI Global.
Hartley, S., 2015. Domino’s dominate with digital design. Busidate, 23(3), p.2.
He, W., Zha, S. and Li, L., 2013. Social media competitive analysis and text mining: A case study in the pizza industry. International Journal of Information Management, 33(3), pp.464-472.
Olszewski, A.P., 2015. International Marketing Strategies of US Fast Food Franchises. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual Conference (pp. 123-127). Springer, Cham.
Ozturk, A., Joiner, E. and Cavusgil, S.T., 2015. Delineating foreign market potential: A tool for international market selection. Thunderbird International Business Review, 57(2), pp.119-141.
Shah, R.B., 2013. Impact of marketing mix elements on customer loyalty: A study of fast food industry. Prestige International Journal of Management and Research, 6(2/1), p.54.
Sinha, M. and Sheth, J., 2017. Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users. Journal of Business Research.
Smita, B.P. and Muley, P.S., 2015. A Significance of Value Chain Analysis in Assessing Competitive Advantage of an Organization. AADYA-National Journal of Management and Technology (NJMT), 3(2), pp.19-24.
Subhasis, S. and Kannan, R., 2015. Penetration into New Market Segment-A Review. Advances in Management, 8(9), p.1.
Syed, I., 2016. SWOT analysis and operation management decisions of Domino’s pizza.
Venkatesh, V.G., Rathi, S. and Patwa, S., 2015. Analysis on supply chain risks in Indian apparel retail chains and proposal of risk prioritization model using Interpretive structural modeling. Journal of Retailing and Consumer Services, 26, pp.153-167.
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