1.

Introduction to Marketing Management

Marketing management is a process of planning and executing the conception, promotion, pricing and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Marketing management is a process which involves analysis, planning and implementation. It also involves the control of goods, services and ideas. The goal of marketing management is to provide satisfaction for parties involved. Marketing managements task is to influence the timing, level and composition of demand in a way that will help the organization to achieve their objectives. As fast food companies are one of the worlds largest growing food types, a company under this industry will be studied or used as an example. Since Dominos Pizza was selected in part one for the group presentation, the same fast food industry player would be used in part two for this individual report.

1.1

About Dominos Pizza Domino's Pizza is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States. Domino's is the secondlargest pizza chain in the United States (after Pizza Hut) and has more than 10,000 corporate and franchised stores in 70 countries and all 50 U.S. states.

Domino's Pizza Group plc ("DPG") is quoted on the main market of the London Stock Exchange.

The current Domino's menu features a variety of Italian-American entrees and side dishes. Pizza is the primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings. 1.2 1.3 Dominos Vision & Mission Statement Core Competitors Dominos core competitors are fast food companies such as McDonalds, as well as other pizza makers like Pizza Hut. McDonalds brand image is very strong all over the world. Pizza Hut is the largest direct competitor of Dominos. Same as Dominos, Pizza Hut also maintains a very good brand image.

2.0

Marketing Mix

Marketing mix is one of the key concepts in modern marketing theory. It is also a tool used by an organization to further decide on its marketing objectives. The activities that a marketing manager does to make decisions falls under a category generally known as four Ps. Four Ps stands for product, place, promotion and price. Four Ps were popularized by McCarthy. These categories are controllable variables as they reflect areas in which a marketing manager of a firm is in control of the decision making.

2.1

Product The most basic marketing mix element is product. Product is anything that is offered to the market or consumers for use. This includes decisions about quality, features, design, packaging, product variety, sizes, services, warranties and returns. These product attributes can be manipulated depending on what the target market wants. Dominos Pizzas main product offering is pizza that usually comes in round shape. They have choices of Classic Hand Tossed, Crunchy Thin Crust, Artisan and Handmade Pan pizzas, with a wide variety of toppings. Although pepperoni is a popular topping in UK and Ireland, in other part of the world Dominos offers unique toppings, customized to the locals there. In China Peapods are famous, Eggplant in Israel, Capsicum in Australia, Anchovies in Caribbean and so on. Besides pizza Dominos also offers a range of side dishes such as chicken strippers, kickers and wings, garlic pizza bread and potato wedges, as well as desserts including cookies, waffles and ice-cream.

2.2

Price Pricing strategy deals with methods of setting justifiable and profit making prices. It is one of the most critical areas of marketing decision making. Decisions about pricing includes discount methods, adjustments to prices, payment period, credit term and allowances. Product priced too low or too high could bring a loss of sales to a firm. Some factors that influences pricing includes fixed and variable costs, competition, company objectives,
proposed positioning strategies and target group and willingness to pay.

Pricing strategies is based on a firms objective. Some company sets their product price low in the beginning stage to get more sales and later increase it once the market share is high, some sets price base on competitor and some sets high price to show the exclusiveness of their product. There are a few types of pricing strategies such as penetration pricing, skimming pricing, competition pricing, product line pricing, bundle pricing,

psychological pricing, premium pricing, optional pricing, cost based pricing and cost plus pricing. For an example, Dominos normally prices its pizzas at $5.99 instead of $6.00 to convey the psychological impression of a lower price to their customers.

2.3

Promotion Promotion is the communication link that is between a seller and a buyer. Organizations can use many different ways of sending message about their products or services to their customers. A successful product or service will mean nothing unless the benefit or attractiveness of a product or service is communicated clearly to the target market. Some methods that is used in promotions are advertising, personal selling, sales promotion and public relations, direct mailing and internet marketing. For example Dominos sometimes gives out coupons where the customer could get a free regular pizza when a large pizza is purchased. This is categorized as sales promotion, commonly used to increase sales for short term.

2.4

Place A distribution strategy is normally developed by a marketer to ensure that their products are available in the proper quantities and quality at the right time and place for their customers. Distribution decisions involves an organizations business activity the concerning storing and transporting raw materials or finished products. The goal of Place (Distribution) strategies is to ensure the products arrives in usable or good condition at designated places. There are two types of channel for distribution. The direct and indirect method. Indirect distribution involves the company distributing its product by the use of an intermediary. Example, a manufacturer selling to a wholesaler and then on to the retailer. Direct distribution involves distributing direct from a manufacturer to the consumer. The advantage of direct distribution is that it allows the company itself to have complete control over their product. Dominos uses the direct distribution method. Dominos warehouse team ensure that their customers receive each and every product they order. The main responsibility of this team is to load, unload and move materials within or near their distribution center.

3.0

Dominos Marketing Practices Dominos Pizza uses an integrated marketing strategy in United States and all other places where it exists that includes a broad mix of media, such as billboards posters, print, internet and mobile application. Many of this were linked to a smartly

designed website which then routes the customers to the page where the customers nearest location is with the right contact no or online ordering option. Dominos has made available their foods nutritional facts online. This shows Dominos has placed importance to its product quality. The company nutritional fact website made available to the public at the Take a Fresh Look website. This is also to keep their customers informed on the health benefits and the quality ingredients used in their food. Also earlier this year, Dominos said that they will produce their pizza with tastier toppings and lower fat. In a press release dated January 16, 2012 by Dominos, the company mentioned that it will use tastier mozzarella cheese across its menu which has 30% less fat than 12 months ago while its pepperoni has 34% less fat. This especially helps to get the attention of the health or diet conscious customers (dominos.com.au, 2012) Dominos Pizza also initiated patented insulating pizza bags to keep pizzas oven-hot and crisp during normal delivery. Their pizza is packaged in such a way that the corrugated pizza box keeps moisture from weakening the box and cheese from sticking to the top. The company also uses promotional mix such as direct marketing. The company sends information about their existing or new products and services, special offers, promotions to consumers. This is a way to keep the target market or consumers updated of their product or services and offerings. Almost all of its website in different countries has a tab for coupon or vouchers. This is also a method under promotional mix used to attract its online buyers. Consumers would prefer to purchase a promotional item or product as to them it means they can have a better selection for a lower price.

4.0

New Product Dominos Fat free Double Layered pizza Pizza, in the consumer mind is cheap and usually comes at a discounted price.. Discounting is the golden rule of the pizza market. Pizza normally targets pizza lovers with a quick ready- to- eat availability and given a good deal. However, the new product is targeted at the more health conscious big appetizers group. As peoples are moving towards a healthy lifestyle yet wanting a fulfilling meal, a new product of pizza that offers a fat free double dose pizza may satisfy them. There should be a variety of 3-5 toppings for this. The customer can choose any one from the five offered variety. 4.1 Product The new product focuses more on the quality and size of the product. It will be a 99% fat free pizza, double layered. The size of it is 10% slightly smaller than the size of Dominos current medium or regular sized pizza. The 15% reduction in size is because as it is already a rich pizza as it comes in double layer. This new product will use all healthy ingredients that will mark at 99% fat free. This is because consumers are more concern of the health benefits of their food intakes these days. Even though healthy food is a concern, there

may be a certain degree of craze in wanting to have a richer feel while having a pizza. Thus a double layer pizza is designed to satisfy the big appetizers and pizza lovers of having a fat free yet a rich pizza. 4.2 Price Dominos regular or medium sized pizza is priced at $ 7.99 thus the new product should be priced slightly higher. It can be priced at $9.99. Although the price is higher than the normal medium pizza, as for the health conscious group, they would probably not mind paying a little extra to enjoy a fat free double layered pizza. 4.3 Place The fat free double layered pizza should be made available at all of Dominos stores in United States, it can suit anyone that is generally health conscious and intends to try a fat free double layered pizza. The new product should also be made available online and on Dominos mobile application. Customers can have the flexibility to order the new fat free double layered pizza online or through the mobile application. Dominos should gauge the customer demand and be able to provide enough to satisfy the market. 4.4 Promotion Given Dominos track record of many promotion for its existing menu, the new product should also be advertised and given a promotion. Probably when a customer purchases the new fat free double layered pizza they can be entitled for a free drink or soup. The free items should be catered according to the geographical location of its outlets. 5.0 Marketing Plan
A business would normally have competition among other businesses for new and existing customers, new business opportunities, market share, and sales revenue. In this situation, having a marketing plan for an existing or a new product line is certainly important in order to help an organization develop a strategic road map for growth. Below are the marketing plan for suggested new product of Dominos Pizza. 5.1 Situation Analysis-

The fast food industry is a competitive industry, many other fast food industry such as Pizza Hut has conquered a significant portion of the market. However, the uniqueness of the suggested new product would benefit Dominos. 5.1.1 Market Summary

Below is a SWOT Analysis (Strength, Weaknesses, Opportunities, Threats) of Dominos Fat free Double Layered pizza
SWOT Analysis

Strengths: The new product is unique, thus it will attract people to try it. Dominos has a strong brand name, it is the world leader in pizza delivery. The new product also contains fat free ingredients, adaptable by health conscious group. The new product is also priced reasonably. With outlets worldwide, Dominos is able to cover delivery in almost majority households. Weaknesses: The new product idea can be copied by other pizza industry players. Ingredients for the new pizza could be costly. Besides that from the promotion perspective, there is minimal incentive for customer or product loyalty. Opportunities: Frequent buyers may prefer to use online or mobile application to place an order, Dominos has a chance to establish as a leader in online ordering. Dominos outlets worldwide creates higher potential for the companys growth. Threats: Increasing price in commodities such as cheese may affect the profit margin of the company. It can be challenging to satisfy customer expectations especially with the availability of other better quality products.

5.2

Marketing Strategy

New product development (Marketing mix) -Marketing Strategy - STP 3.Marketing Plan 4.Conclusion 5 Recommendation http://www.dominos.com.au/pdf/news/Dominos_3_%20new_products_2012.pdf

launched their mobile application

Between 1960 to 2012 the companys logo read as Dominos Pizza however as the company has gained its popularity and stand, its recent logo only reads Dominos, people are already aware of the companys pizza brand.

http://dominospizzacosham.co.uk/content/289/direct-marketing-policy/

http://business.library.wisc.edu/resources/kavajecz/10_Fall/Dominos_Report.pdf http://business.library.wisc.edu/resources/kavajecz/10_Fall/Dominos_Report.pdf http://phx.corporate-ir.net/phoenix.zhtml?c=135383&p=irol-news&nyo=0 Recommendations Within the short term, Dominos should focus on making more coupons available to their customers. They could also offer specials for certain times or reasons. This would help combat their tough competition as well as their declining sales. The company can also focus on improving their online ordering procedures. In addition, Dominos could also improve their strategies of pizza delivery. In the long run, Dominos should focus on improving their customer base, which would increase their market share. They could also look into making new products specific to the location of the store as well as adding more variety to their menus with the changes in tastes and preferences of their customers.