The Marketing mix of Dominos analyses the 4Ps of Dominos, which include the Product, Price, Place, and Promotion of Dominos. The Dominos marketing mix framework has laid the foundation for various marketing strategies that have helped the restaurant chain to attract customers, create a loyal customer base, boost brand loyalty, and gain a competitive advantage in the target market.
The company continues to flourish and achieve tremendous success through innovative schemes, Domino’s product strategy, quality food, supply chain, franchise-based model, consistent pricing policy, and promotional strategy.
Table of Contents
About Domino’s Pizza Inc.
- Origin Country: United States of America
- Founders: Tom Monaghan, James Monaghan
- Founded: 1960
- Headquarters: Michigan, U.S.
- Employees in 2023: 11,000
- Annual Revenue in 2023: 4.537 billion USD
- Net Income in 2023: 0.452 billion USD
- Market Cap in 2023: 11.07 billion USD
Domino’s Pizza Inc. is the largest pizza chain in the world, spreading its presence to different countries around the globe. Although the brothers James and Tom Monaghan started the first Dominos pizza restaurant together, within a few short months, James sold his share of the business to his brother and co-owner for the Volkswagen Beetle that they used to make the pizza delivery.
In 1965, the company was renamed Domino’s Pizza Inc., which started the Domino’s restaurant chain. Domino’s business model has always been delivery-centric as the company has hired delivery boys for pizza delivery, who deliver within thirty minutes.
Excellent food quality has helped the brand gain an upper hand over rival brands like Papa John’s and Pizza Hut in the target market. Domino’s Pizza reigns supreme in the target market because of its food products and the brand loyalty of its customers.
Target Audience: Domino’s Pizza Marketing Mix
The marketing mix of Domino’s Pizza targets the lower middle class and the middle-class income group to create a solid and loyal customer base. The global brand also targets kids and young adults who are fans of fast food quality products. Teenagers love to order Pizza and other veg and non-veg side dishes like chicken wings, chocolate lava cake, butterscotch mousse cake, and Italian pasta.
The brand faces stiff competition in the market from companies like Pizza Hut and Papa John’s. Still, consistent pricing, a steady base price, and a wide range of quality products have driven the success of the largest pizza chain.
Dominos Product Strategy
Domino’s marketing strategy is focused on creating a solid product line with quality products. The items on the menu and the beverages sold vary by region. The menu in the United States features many Italian-American non-veg main and side dishes.
In all the stores globally opened by the company, one common thing is that Domino’s Pizza is the main dish. Custom, specialty, and traditional Domino pizzas are available in different toppings and crust styles to attract customers of individual tastes.
Domino’s Pizza has kept its menu simple to ensure smooth and fresh Pizza for delivery by the delivery boys. The first expansion in the menu happened in 1989 with Domino’s Deep Dish. The brand tapped the trend for bite-size foods by introducing spicy Buffalo Chicken Kickers. Domino’s continued innovation with Brooklyn-style pizzas, non-vegetarian oven-baked sandwiches, American Legends specialty pizzas, BreadBowl Pats Entrée, pan pizza, vegan Pizza, etc.
The services in Domino’s Pizza’s marketing mix are up to the mark, and online deliveries are one of the leading factors of its success in the market. The company maintains product quality, but its service with the pizza tracker is also prompt. As soon as you order Pizza, the time starts ticking. The customer wait period is thirty minutes, and the pizza tracker is on. The delivery boys must deliver the Pizza within the allotted time; otherwise, the company must compensate them with special discounts or free Pizza in the next delivery.
The product mix of Dominos in 2023 is as follows(Source)
- Pizza Menu: Classic Hand-Tossed Pizza, Handmade Pan Pizza, Crunchy Thin-Crust Pizza, Brooklyn-Style Pizza, Gluten-Free Crust Pizza (varies by location), Artisan and Specialty Pizzas (e.g., ExtravaganZZa, MeatZZa, Veggie, etc.), Build Your Own Pizza (customizable with a variety of toppings)
- Side Items: Breadsticks, Cheesy Bread, Stuffed Cheesy Bread, Chicken Wings (various flavors), Boneless Chicken, Pasta (e.g., Chicken Alfredo, Pasta Primavera, etc.), Specialty Chicken (e.g., Chicken Bacon Ranch, Sweet Mango Habanero, etc.)
- Desserts: Chocolate Lava Crunch Cakes, Marbled Cookie Brownies, Cinna Stix (Cinnamon Breadsticks)
- Beverages: Soft Drinks (various options), Bottled Water, Iced Tea, Lemonade
- Dipping Sauces: Marinara, Ranch, Blue Cheese, Garlic Dipping Sauce, Buffalo Sauce, Sweet Mango Habanero Sauce
- Special Promotions and Limited-Time Offers: Domino’s regularly introduces new pizza flavors, promotions, and limited-time offers to keep the menu fresh and enticing for customers.
Dominos Place Strategy
Domino’s restaurant chain, renamed Domino’s Pizza Inc., has spread its product presence to 19,800 stores in nearly 90+ different countries. The place strategy in Domino’s Pizza’s marketing mix distribution strategy is based on the franchise model, where 97% of the outlets are franchise-owned.
Dominos opened its outlets in the United States, India, Australia, France, Sweden, Nepal, Sri Lanka, Bangladesh, Turkey, and the United Kingdom. Besides the United States, the company has opened many outlets in India because of its vast popularity.
Domino’s has dough manufacturing plants, an equipment supply center, a vegetable processing center, and a pressed plant center globally to maintain its place and distribution network effectively. The machines and equipment required by the franchises are supplied by Domino’s itself. The company also offers classroom training to the employees and owners of new franchises so that they become familiar with the process.
Domino’s Place’s strategy ensures convenient access to its Pizza and related products through various channels. Here are five key components of Domino’s Place’s strategy:
- Extensive Delivery Network: Domino’s has a widespread network of delivery outlets and drivers strategically located in urban and suburban areas. This network ensures timely pizza delivery to customers’ doorsteps, a core part of their service.
- In-Store Pickup: Customers can order online or by phone and pick up their pizzas from nearby Domino’s locations. In-store pickup provides customers with a convenient and quick way to access their orders.
- Online and Mobile Ordering: Domino’s offers a user-friendly website and mobile app, allowing customers to place orders, customize pizzas, and track deliveries seamlessly. This digital presence enhances accessibility and convenience for tech-savvy consumers.
- Drive-Through Windows: Some Domino’s locations have drive-through windows, enabling customers to order and pick up their pizzas without leaving their vehicles. This feature caters to customers seeking a hassle-free experience.
- Global Presence: Domino’s has expanded its reach internationally, with outlets in numerous countries. This global presence enables residents and travelers to access their favorite Pizza, maintaining consistency in taste and service standards worldwide.
Dominos Pricing Strategy
Dominos initially opened its restaurant chain for the lower-middle class and the middle-class income group. Still, with time, the franchise-owned company has become a firm favorite of individual customers and families belonging to almost all income groups.
The initial fee for opening a Domino’s franchise is $10,000, with a royalty fee and advertising fee at 5.5% and 4%, respectively, of the store’s weekly sales.
Dominos employs a dynamic pricing strategy that balances value perception, competitive and food market positioning, and profitability, embodying the following key elements from a marketing perspective:
- Value-Based Pricing: Domino’s pricing strategy is rooted in the value it provides to customers. It offers competitive pricing for its pizzas, emphasizing affordability and quality, positioning itself as an accessible option in the quick-service restaurant (QSR) industry.
- Menu Tiering: Domino’s pricing structure includes various menu items at different prices. This tiered approach accommodates diverse customer budgets, ensuring that there are options for both cost-conscious consumers and those seeking premium choices.
- Combo Deals and Bundles: To encourage larger orders and upsell opportunities, Dominos frequently offers combo deals and bundled offerings, combining pizzas, sides, and beverages at attractive prices. These promotions incentivize customers to spend more.
- Digital and Mobile Ordering: Dominos leverages digital and mobile platforms for online orders, often featuring exclusive discounts and promotions. This enhances customer convenience and encourages digital adoption, contributing to cost savings in the long run.
- Loyalty Programs: Dominos runs loyalty programs where customers earn rewards and discounts with repeated purchases. These programs foster customer retention and incentivize repeat business.
- Price Transparency: Dominos maintains transparent pricing by displaying menu prices, taxes, and delivery fees on its website and in-store. This transparency builds trust and simplifies the ordering process for customers.
Dominos Promotion Strategy
Promotion is one of the key elements in Domino’s Pizza’s marketing mix. The Domino’s marketing mix promotional development team has adopted an aggressive advertising strategy to create brand awareness and visibility in the market.
Dominos’ promotion strategy centers on:
- Digital Marketing Dominance: Leveraging digital channels for targeted advertising, engaging social media campaigns, and exclusive online deals to reach and resonate with tech-savvy consumers.
- Time-Limited Offers: Introducing time-sensitive promotions like “Pizza of the Day” and “Two for Tuesday” to create a sense of urgency, drive sales, and maintain customer interest.
- Loyalty Programs: Encouraging repeat business through loyalty programs, offering rewards and discounts to retain and incentivize customer loyalty.
Some Recent Video ads and Print ads of Dominos are:
Liked this post? Check out the complete series on Marketing Mix
