Can Franchising As A Strategy Help Dominos Commerce Essay

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Domino's pizza is the one of best and fastest pizza Delivery Company of the world, now has become the largest pizza delivery in the United Kingdom and United States. Besides pizzas, it is now selling different side order, food starters and many desserts; Domino's pizza has been applying changes over the time in product to satisfy its customer's tastes and to compete their competitors

Can Franchising as a strategy help organization to gain market share globally

Domino's pizza

Project Brief:

As the world economies are expanding and business opportunities growing so as is the concept of Franchising gaining popularity across the globe. Few decades back, franchising was spread over a certain state or country only but now franchising is gaining more popularity and is expanding globally and across the borders. Now a large number of small, medium and large companies are using this strategy to expand their operations and business to capture new markets and generate revenues obviously. In this study we aim to evaluate and discuss the whether franchising strategy is helpful to companies to acquire new business markets and enhance their market share and profitability; the ultimate goals of franchising.

Company Brief - Domino's pizza :

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Domino's Pizza is recognized as the best pizza delivery company of the world. Dominos company research on food sector time by time and is passionate to deliver hot and fresh pizzas has made a good name amongst one of the best franchising company of the world. There are over 8,000 Domino's Pizza stores in more than 60 countries, employing over 145,000 team members and involving over 2,000 franchisees.

Globally Domino's Pizza delivers more than 400 million pizzas every year. Domino's Pizza opened its first UK store in Luton in 1985 and its first in the Republic of Ireland in 1991 in Dublin. There are over 3600 stores outside the United States and still growing.

The local food sector is predicted to grow by 70% over and over every year. It is also convincing the people towards online purchasing. The e commerce is playing a vital role in this sector in term of sale n customer making, satisfaction and future growing business.

If we increase the e commerce in particular field it will impact on future sales, collection and home delivering food business as customer have no time these days to go and see the market situation.

It is predicted that the internet, interactive TV and text-messaging (SMS) will eventually overtake telephone ordering. The value of the home delivery food market was estimated to have reached £1,474 million in the UK and expects to grow 30% to £1,918 million by 2011.

Domino's pizza is the one of best and fastest pizza delivery company of the world , now has become the largest pizza delivery in the United Kingdom and united states . Besides pizzas , it is now selling different side order , food starters and many desserts, Domino's pizza has been applying changes over the time in product to satisfy its customer's tastes and to compete their competitors. Technology management change has been one of its significant changes during the last ten years. Of which, online ordering and mobile text ordering is clearly the key to this change in addition to other Internal Environmental Factors and External Environmental Factors.

The change in technology management has showed effects in Domino's pizza daily operation. However, it is apparent that Domino's pizza should keep its changing process going to keep up with the development of society's needs.

Domino's pizza always ensures that the new change need to understood and supported by the top management and staff. On the others hand, In the organization's training the organization ensure that all the staff has clearly understanding about the system and new technology, and this allows them to deliver that understanding to the customer. Finally, Domino's pizza gives a free training about safety and security issues, good customer services and developing additional skills such as computing skill and information system knowledge to staffs too.

Stakeholders:

Audiences of an organization are typically classified into eight groups, which are also called stakeholders. Stakeholders can be described as those with a vested interest in the organization's operations. The figure below shows their relationship with organization.

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Organisation

Providers of capital (investors e.g.banks, shareholders)

Pressure groups e.g., campaigning groups interested in organisations activities

Customers

Employees

Competitors

Suppliers

General Public

Community

In the light of above diagram, we can analyze the relationships of Dominos Pizza with its Audiences, in particular:

Dominos private ownership, shareholders, loans etc.

The pizza lovers, distributors of food and stuff, traders and operators

The staff of a pizza store e.g., managers, assistant managers, managers in training, CSRs, insiders, pizza makers, delivery drivers etc.

Community interactions at local, regional, national and international levels.

The governmental, environmental or legislative and food and hygiene standards that impact on organization.

The competitors influences on the organizations e.g., Pizza Hut, Papa John's, Pizza Express etc.

The suppliers of all kind of food e.g., meats, vegetables, sauces, dough, and kitchen accessories and other stuff.

The food and hygiene standard issues, customer service issues, delivery vehicles parking issues etc., that may be affected by local, national or international pressure groups

Company's Objectives

There are many big companies who set a target and have made a objective before starting same like others companies Domino's Pizza, also have their mission to be the best pizza delivery company in the world. This is the reason dominos is increasing and multiplying their stores all over the world.

"Sell More Pizza, Have More Fun!"

Their objectives are to:

recruit, recognize and retain the best people

deliver consistently high quality food on time

take great care of their customers

innovate in ways that matter to their team members and customers

ensure high image standards at their stores

treat others how they'd like to be treated

Take time out to enjoy themselves.

They aim to add value to the communities they serve by designing their stores in a sympathetic manner, employing local people, showing respect for the environment, encouraging our team members to be caring citizens, taking our skills into schools and colleges and supporting worthwhile local organizations. Domino's Pizza responds to hundreds of requests every year from organizations seeking help and we do this through the provision of free pizza certificates to raffle or auction for their causes.

Messages:

Dominos Pizza gives a couple of messages for their customers and investors as well:

'UK's no.1 pizza delivery company'

'Relax, its Dominos'

'Sell more pizzas, have more fun'

'More than just a pizza'

'No Dominos, no Satisfaction'

Introduction to Online access:

In order to cash the best in the market and to provide the matchless service to the customers, Dominos has got highly interactive online presence to serve all purposes at home.

For instance, if someone likes to know anything about Dominos being sat at home over the internet it is no more difficult. As Google is a top search engine around the world in terms of popularity, Dominos has got outstandingly detailed presence on Google, which is visible in below picture:

The above picture shows that if someone types 'Dominos' in the 'search box' of Google it can come up instantly with every possible detail about the company e.g., Vouchers, Menu, Coupons, Offers, Regular deals, Buy one get one free of deals, Dominos codes etc. Now customer can easily select the field of his/her choice and obtain all information about it.

Secondly, if someone types 'Dominos Pizza' only in Google 'search box' it will show many links of the company to choose from which can be seen in below picture:

The company's website gives you easiest approach to order pizzas online, locate nearest stores, food guide, business information, feedback system, memberships, participating events etc. The below website picture shows us a very interactive system to facilitate customers. For instance, one can just put his/her postcode on the website and will be shown with local store address, information about regular and special offers and menu and everything else. Customers can use their mobile phones as well to order a pizza by sending 'text' and it will go straight to the Local store automatically and there is no hassle and all information is available on the website as well. Customers can register online with the company and be part of many exclusive offers too.

Evaluation:

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Dominos pizza considers many metrics in order to measure its progress over time:

Number of customers increase

Average weekly sales over a certain period

Average FLM; food, labour and mileage

Average OTD; out the door time

By online and direct feedback system about customers response to its service etc.

The steps planed (or undertaken)

Domino's pizza has changed in many of its operations and marketing management. It has recognized that changing is essential to every enterprise in the Information Age. On the first days of operation, Domino's pizza has chosen to run a generic system, so the store requires many staffs to deal with the customer and to deliver them a premium quality. Adopting the self online ordering and mobile text facility is one of the big changes to Domino's pizza and their customers.

Literature Review:

The Concept of Franchising

Mr. George, graduated from a renowned business school 5 years back and joined well established Financial Consultancy Firm, over the years of his service he passed through various pleasant & unpleasant experiences, ups and downs of career, motivating and at times disregarding comments from the management, but in his heart, he had always been aspiring and dreaming to start his own venture and to be self employed.

Mr. George summed up all his savings and decided to start his own business but at the same time he was also afraid & conscious of the daily published business & stock market news and horror stories in the papers and electronic media. But to somehow he managed to gather enough courage to start the business, while thinking about the business; he had many questions like;

What business to do?

How much capital to invest?

How to put a safe investment?

How to build the brand and attract business?

From where to get the guidelines and expertise?

While having all these questions in mind, he also used to go through numerous lucrative opportunities in the newspapers for business including franchising.

What is franchising?

Franchising is the process to perform another firm business successful a model a concept that is increasing quickly across the world.

Franchising, including many other business options, is the good answer the questions of Mr. George. On the part of the companies / corporations, it's one of the three business strategies which large, medium and small size business ventures use to expand their business, enhance customer base and capture market shares. The other two business strategies may include company owned Units and/ or a combination of company owned & franchised units.

Franchising is business strategy to attract new customers and retain existing customers through offering a unique and quality product range or single product. It's a method of distributing products and services that satisfy customer needs which may be but not limited to;

Midi franchises like restaurants, gas stations, trucking stations and schools.

Large franchises like hotels, hospitals etc.

Business ventures which have been successful in the franchising strategy have characteristics like;

Business with best record of productivity

Business that can easily be multiply

Types of Franchising

Retail Franchises are most of the time targeted at the direct walk in customers. Such franchises are often located at the High Streets and are suitably equipped and staffed with a trained team. Retail Franchises have stacks of a certain variety and various products. They sell products or services during retail hours. Examples include food chains, fashion and garments chains etc.

Business To Business Services type of franchising, as evident from its name, is providing products and services to the corporate end or business users. Sharing many characteristics with the Retail and Management franchise types this sector is exceptional in that the franchise "manages" the operations side of the business but "does" the selling. The franchisee is out visiting customers and negotiating contracts, not dealing with "walk in" or "phone in" customers or handling the day to day hands on completion of tasks

Investment Franchise In this type of franchising, the franchisee is the main investor for the business venture. The franchisee is supposed to have expertise in managing the business and also deploys a team of relevant experts to run the business while the franchiser provides the brand name and at times business support or consultancy to run the business.

Management Franchise Here, the franchisee will have responsibility for the development of the business and at the same time, manage and co-ordinate a team of operatives. The franchisee may control several territories or a whole region. Examples include parcel delivery type franchises or other van based service franchises that are run from regional HQ's, depots and hubs.

Single Operator Franchise is just like getting self employed for a business venture. In such type of franchising, the franchisee pays a certain amount for royalty and buys the right to operate a franchise offering trade supply, sales & services or product delivery at the door step. At the start of the business, the franchisee may himself be employed only but with the passage of time and business growth, he can employee staff as well to support him and run the business.

Executive Franchise In Executive Franchise, the a company or a group of people buy rights of a renowned or established management services or consultancy firm and offers consultancy services to specific target market in his areas of expertise. Examples may include Financial Advisory Firms or Management Consultancy Firms.

Sales & Distribution Franchise Here the franchisee buys the rights to sale or distribute a product line of a company in a specific and defined territory.

Master Franchise Licensee A Master Franchisee duplicates completely all the original functions of a franchisor. A Master License could cover a region, a whole country or even such as 'The Middle East'. A Master License would only be awarded to experienced business persons capable of producing a comprehensive business plan acceptable to the original franchisor.

Research Aims & Objectives

To build understanding of significance of Franchising Strategy

To study the relation between Franchising Strategy & market share

To study the significance of Franchising with respect to Domino's

Research Techniques

Quantitative techniques

Quantitative research is concerned directly to the feeling of the people, like they way they think, feel or act. Qualitative method provide the hard, numerical and statistical data which can challenged and defendable is well and it's not only the opinion its more than that. Large samples (from 100+) mean that sub-group sampling is available to make comparisons; future survey can be repeat former surveys exactly with results compared. As this kind of research sometime can be utilizes large number of samples - like thousands of respondents - it is the important part that all respondents are asked the same kind of questions regardless of sample size.

Qualitative research

Qualitative research is concern with the quality of the work and value of the work for examples interview transcripts, emails, notes, feedback forms, photos and videos. It has nothing to do with numbers, which are in the field of quantitative research.

Quantitative Research is based upon the data gathered through structured questionnaires and supported by facts & figures and financial data. The researcher gathers information from respondents through designed questionnaires and then extracts information of his need after analysis of these questionnaires.

Qualitative Research is based on historical data, information available in newspapers and research journals & articles and information collected from in-depth interviews and also involvement of the researcher in the environment under study.

In order to understand the relation between franchising strategy & gaining global market share, our research shall be mainly relying on quantitative research but also supported by qualitative research.

Results & Conclusion

At the end of our research, the analysis, results and concluding remarks regarding this study shall be shared.