Review Dominos Marketing Strategies And Technology Commerce Essay

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According to Dominos corporate website (2010), Dominos pizza was founded in 1960 by Tom and James. It was bought and started as a small pizza store in Michigan. With $500 as initial investment, Tom joined forces with his brother and together they opened a pizza delivery store in Ypsilanti, Michigan. Initially it was known as Dominick's. As Monaghan's operations grew, the original owner of Dominick's decided to maintain rights to the name.

Under deadline for a Yellow Pages ad, driver Jim Kennedy came up with the name Domino's Pizza. The three dots of Dominos the fact that Tom initially started 3 stores.

In February 1968 a fire accident took place in Monaghan's original pizza store. Advertising manager Bob Cotman had a narrow escape from the building, climbing down a fireman's ladder. Although the pizza shop started operations within two days, Domino's lost stored goods worth $40,000. (information from the UK site (2010). The staff pulled together, with each existing store location responsible for producing one pizza item cheese, dough, chopped toppings which drivers then ferried from one store to the next to keep operations running. After that a very difficult situation arose that he had to cover not only the total fire losses of $150,000, of which only $13,000 were paid by insurance but also had to pay leases of five new franchises and recruit five new store operators as soon as possible. In 1975, the trademark lawsuit was launched by Amstar against the company. Furthermore, they started preparation to launch themselves on an international scale. In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was introduced for the first time in twenty five years the company was being forced to react to market demand. This step proved vital in providing strength to the financial base and ensured the growth of Domino's Pizza, as in the same year they started operating their five thousandth store. The chain of Dominos Pizza grew quickly as they were operational in all sorts of diverse places including Bogotá. Despite Domino's Pizza springing up at diverse locations, they were still a very traditional company. (History of Dominos pizza) Tom retired in 1998. He was the one who expanded Domino's chain around the world making it the world's largest pizza delivering company known for quick service restaurants around the world. In addition, he gave majority of the $1bn earned through the sale of Domino's to charity.

Marketing Strategies

In 1973, Domino's Pizza introduced the policy that customers must be receiving their pizzas not later than 30 minutes of placing their orders, or if not they would take delivery of the pizzas free. The guarantee was condensed to $3 off in the mid 1980s. In 1985, Advertising Age placed Domino's ad "among the fastest-growing money makers in the restaurant industry." The company had to keep pace not only with its own growth but also with that of its competitors, including the industry leader, Pizza Hut, which had more than 4,000 units to Domino's 2,300.In the previous year, Domino's spent 249% more in advertising, media. On the other side, the biggest threat for Monaghan's empire entered in delivery business that is Pizza Hut in 1986. (Advertising age, Domino's inc. 1985)

In 1992, the company settled a case filed against it by an Indian family whose lady was killed by a Domino's delivery driver. The company paid the family US $2.8 million. In 1993, Domino's settled yet another case in which the company was sued because a Domino's delivery driver ran a red light and collided with a lady's vehicle. The woman was paid almost US $80 million. The guarantee was dropped the same year because of the "public perception of reckless driving and responsibility", according to Monaghan.(Founder of Domino's) "Domino's Truck Kills 2 En Route to Delivery," (Chaudhury,1998)

In December 2007 Domino's introduced a new slogan, "You Got 30 Minutes", sticking to the earlier promise but getting short of promising delivery in a half hour. (Dominos corporate website 2010) In addition to this, Dominos changed their menu in 1992 and introduced the first non pizza item to their menu, this was obviously a reluctant move as it was bread sticks. Domino Pizza dough was already on hand and the making of bread sticks was not so different.

For many years the company had advertised that if the delivery of their pizzas took longer than 30 minutes then the pizza would be delivered free. This was parodied by the Teenage Mutant Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the delivery. The turtles' pizza was late and they received a refund of $3 for "being two minutes late, dude!" However, the benefits to Domino Pizza were enormous as millions of kids were to hear the name of Domino Pizza endorsed on celluloid. In 1993, Domino Pizza discontinued this policy and stated that if a customer was unhappy they could have a new pizza or a refund. By 1994, Dominos Pizza marketing policy winded and they introduced chicken wings in to the menu. Not only this, the company hit the African continent as they opened a store in Egypt. In 1996, Dominos Pizza website was launched and the company declared global sales of nearly $3 billion. In the 1980s, Domino's Pizza was well known for its advertisement campaign featuring "The Noid". (Dominos corporate website 2010)

In the same way, the Super Bowl Sunday was the most hectic and very busy pizza delivery day of the year and Dominos Pizza sold over a million pizzas, which was forty-two percent more as compared to normal Sunday trading volume. The company continued to grow so rapidly that the practice of adding a dot onto the logo was discontinued after three outlets as Dominos Pizza now has over seven thousand outlets globally.

According to Dominos marketing director Robin Auld (Noelle McElhatton, marketing director management) Dominos franchisees pay a 5% royalty of their net sales into Domino's National Advertising Fund (NAF). That's centrally managed and used to maximize sales and grow brand awareness. He said door-dropped menus are very effective for prosperity of ordering pizza and we use news paper and royal mail. Domino's also launched new offers that can be ordered by national hotline (087 12121212), in-store and online at or SMS ordering system, which was the first time in UK in 1999. The Domino's text service requires only five minute initial online procedure. Firstly customers register and create their favourite menus giving them each an easy to remember name, delivery address and mobile number for order. Secondly, the chosen menu is typed directly from mobile phone. Customer can put their credit card details while registering so that they can use their card when they order and pay with cash upon delivery. In February 2003, the company announced multiyear partnership with the National Association for Stock Car Auto Racing (NASCAR) through which Domino's became the "Official Pizza of NASCAR." According to news paper article (Detroit News, March 26, 1997) Domino's delivered $2.8 Billion in world wide sales last year. By 2011 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. At Domino's Pizza, the values are summed up in a chant that's sung in the

"Sell more pizza, have more fun!"

DPZ - Dominos Pizza Inc (NYSE)

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Figure 1 : Marketshare (Dominios corporate website)

Financial information

Domino's Pizza UK & IRL plc financial results.[1][9][11][12]

Year to December1

Revenue (£Â million)

EBIT (£m)

Net profit (£m)

Earnings per share (p)































Note 1: - Accounts to 2005 prepared according to United Kingdom Generally Accepted Accounting Principles. Accounts from 2006 onwards prepared according to International Financial Reporting Standards.

Figure: 2

Performance of the Dominos pizza








System sales (£m)








Stores at start of year








Stores at year-end








(Dominos corporate website)

Figure: 3

Advanced Technologies

Early in 1998, Domino's stores started using a new pizza delivery bag called Heat Wave that was developed by the company. The main feature of the Heat Wave bag was a heating mechanism that was warmed up using electricity prior to use, helped Domino's drivers deliver hotter and crisper pizzas to their customers. The company that year also opened its 6,000th store. Moreover, in 2009, Domino's made some major changes to its menu, including the addition of Oven Baked Sandwiches, Bread-Bowl, Pasta Dishes and Chocolate Lava Crunch Cakes. In the same year, they also introduced the Pizza Tracker. In this system, customers can check the phase of their order completion in a "real time" progress bar. In addition to this, the first Domino's dining room was opened in Albemarle, NC, which included the option for customers to either eat in or take their pizza home. In 2003 the new products launched with another dessert item, Domino's Dots, balls of dough baked in cinnamon and sugar and served with a vanilla icing glaze. During the same year, Philly Cheese Steak Pizza was added in the advertising and promotion front.

The new addition in the Domino's menu is covered in an array of mouth and eye watering toppings. With five different types of heat in the form of chilli cheese slices, sweet chilli peppers, jalapeños, bird's-eye chilli peppers and American style mustard, as well as ground beef, meatballs and mozzarella. Meltdown-The Revenge has the power to drive even the toughest pizza-eater to tears. Robin Auld, sales and marketing director of Domino's Pizza, said: "After one of the country's coldest winters on record, we felt it was time to heat everyone up and put some spice back into their lives. We are hoping that with the arrival of our hottest pizza to date, Meltdown-The Revenge, we will be able to do just that." (October 21,2009)

Fresh and delicious pizza with better preservation has always been a priority at Domino's Pizza and therefore, Dominos was first to use a fibreglass tray for dough, which simplified dough handling. Domino's is known as innovator because they launched the sturdy, corrugated pizza box, which prevents moisture from making the box soggy and stops the cheese sticking to the top during delivery. Moreover, delicious, crisp crust is one of the most important parts of the pizza. For instance, Domino's developed the pizza screen, for the perfect crust and mesh tray that helps cook the pizza base more evenly than a tray made of wood or stainless steel. The Heat Wave Bags are very important role play as a 'portable oven' so it minimise heat during the time of delivery. In this bag, the outer side is made of water-repellent nylon and inside the bag is a 3M Thinsulate material, which eliminates unwanted moisture, keeping pizzas hot and fresh. There are 88 million different pizza options on a typical Domino's Pizza menu and Dominos continually research the ways to improve the range of choices. In addition to this, the 'Real Time' monitoring is very effective for service performance and delivered the pizza 'out door' within minimum amount of time. According to a magazine article (QSR magazine,2006) "Domino's Pizza delivers 8,000th Store".  In 2007, Domino's removes all hydrogenated fats from its products. According to news paper article (Hume, Scott, and Raymond Serafin, Advertising Age, 1991) Hume, Scott, and Raymond Serafin, "Domino's Burned Up Over Pizza Hut Spot,"


Domino's pizza has gained much popularity in the UK as well as all over the world. Domino's Pizza has become the world leader in pizza delivery and one of the most successful franchise businesses with more than 8,000 stores in 50 plus international markets. Domino's Pizza Group (DPG) is what's known as a 'master franchisee'. This means that Domino's Pizza Inc. (the brand owner, based in Ann Arbor, Michigan, USA) has granted DPG exclusive rights to own, operate and franchise Domino's Pizza stores in the UK and Ireland. DPG is a Public Limited Company whose stock is now traded on the London Stock Exchange and is currently within the FTSE 250. The group invests a lot of time and money in upholding the positive reputation of our brand and has remained successful quite a lot. Domino's brand marketing activity is financed through a National Advertising Fund (NAF) which is made up of franchisee contributions. Dominos pizza sells hot and freshly backed. There is neither a deep frying nor for any forms of cooking like baking on a gas-fired conveyer oven. Furthermore, Dominos believes to meet strict quality standards to ensure food safety measures that meet or exceed any applicable government guidelines and that is the reason it has come forward as a strong competitor of pizza hut and has outclassed it in many countries. Today there are over 8,000 Domino's Pizza stores in more than 50 countries, employing over 145,000 team member and involving over 2,000 franchisees. Globally Domino's Pizza delivers more than one million pizzas every day. So, it equates 25 to 30 part time or full time jobs in every new store. In the same way, concept of home delivery means it's reduce noise of store and traffic.


History of Dominos available from htpp://www.Domino's [Accessed March 5, 2010]

Financial data available from http://Domino's_Pizza_UK_&_IRL and http://www.domino-s-pizza-inc#cite_note-19 Dt: 21-Aug-09 [Accessed March 5, 2010], Interviewed with Dominos marketing director Robin Auld [Accessed March 5, 2010]

QSR Magazine, (27January 2006) 'Dominos pizza delivery in 8000 store'.(Accessed March 5, 2010)

"Domino's Delivered $2.8 Billion in Worldwide Sales Last Year. (Detroit News, March 26, 1997.)

"Domino's Truck Kills 2 En Route to Delivery," (Chaudhury, 1998 Nation's Restaurant News, August 29, 1988.) (Accessed March 5, 2010)

Hume, Scott, and Raymond Serafin, "Domino's Burned Up Over Pizza Hut Spot," Advertising Age, January 7, 1991. (Accessed March 5, 2010)

Food information from

Dominos Franchises information available

Dominos Information available from http://www.domino-s-pizza-inc#cite_note-19