Marketing Management

Part A Marketing is about identifying and meeting human and social needs and one of the shortest good definitions of marketing is meeting needs profitability (Kotler & Keller, 2012). Before begin to marketing mix or 4ps, understanding of STP is a must. The terms of STP include market segmentation, target markets and positioning. Segmentation is about identifying the segments for the products or services, and grouping consumers by some criteria such as within a group which respond similarity. The potential segmentation variables are such as age, sex, income, educational level, marital status, culture and etc. Useful segments should be profitable, accessible and measurable. The objective for segmentation is to find the attractive markets and strategy involve select which segment to target, break market into components and regroup into market segmentation. Dominos had targeted consumer who looking for inexpensive pizza quickly because customer are very price sensitive, increase prices will led to decrease of sales. Dominos are more focus into delivery and carryout customer compare to dine-in stores. Viewing in demographic, Dominos seems not to have a specific target and just targeting greatest number of people and to be the leader in online pizza ordering. After segmentation, it will goes to the target market and to find out which segment should be targeted. This is the real objective that marketer want to achieve in market. A good target market need to understand the demographic profile of the product category, must know to compare with competitors, the percent of the population and segments must be identifiable.
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Dominos started with targeting students which located near University of North Carolina and had served 25,000 enrolled students. Dominos identify the best way to reach as many students as possible. In Malaysia, Dominos target is trying to expand in nationwide by 2014. According to President and Chief Operating Officer Ba U ShanTing, outlets will be launch in Kelantan, Terengganu and Pahang next year and enter Sabah and Sarawak in 2015 (TheMalaysiaTimes.com). Next, after target market will move on to the positioning which this is a vital element and skill in a good marketing. In positioning, need to determine the way consumer currently think about the products, decide how you want consumer think about your product and form out how to reposition. Understanding the levels of competition are very important because positioning apply in all levels of competition such as industry level, product level and corporate level, so what is Dominos positioning. Dominos positioning is to reach the customer who values a quick service pizza by using the geographic information software to reach nearer locations. Dominos trying to serve a hot pizza in delivery therefore it created the 30 minute delivery guarantee and use heat wave insulated delivery bag. In 2009, Dominos achieve a 92% on time delivery and achieve the growing segment in online ordering markets through website. Most of the Dominos domestic stores are placed in the mid-sized or large cities or nearby the college or university campuses. Most of the companies which are successful are concentrating with the 4ps which are product, price, place and promotion (Gregory Dean, 2010). Product is about the quality, design, features, brand name, packaging, sizes and services. Dominos had to
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focus on flavors to capture the market. Example, Butter chicken and the Masala were confined to the North while Mutton Ghongura and Chicken Chettina confined to the south. Price is concern about the payment period, discount, credit terms and allowances. Dominos fixed a price of Rs 265 for a 12 inch pizza. Indians are value and not price sensitive, Dominos set the price high because the high quality of ingredients and offer value to customer. In Australia and Spain, Dominos reduce the price and give discount to attract customer for the Pepperoni and Jalapeno pizza to compete with Pizza Hut. Place is about the transport, location, inventory, coverage and etc. Dominos has the largest network of outlets across the world. Refer into the channel of geographic region or industry which a product or services is sold to which segment such as adults, family and business people are also refer into the environment which the product is sold may affect the sales. Lastly, promotion is concerning in the public relations, direct marketing, sales force, advertising and sales promotion. Dominos had use advertising, sales promotion including the education publicity for promoting the services.

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Part B 1.0 Introduction Dominos started with one small store in 1960. Then, in 1978 the 200 th Dominos store opened and things really began to cook. Dominos pizza can known as an international pizza delivery company and the second largest pizza chain in Michigan, United States. 1.1 History In 1960, Dominos Pizza was found by Tom Monaghan in United States in Michigan and landed in Malaysia in September 1997. Dominos can know as the delivery expert company in pizza industry and have around 98 outlets in Malaysia which located in different states such as Melaka, Perak, Negeri Sembilan, Kedah and Pulau Pinang as well as seen in year 2012. In 2009, Dominos establish their businesses to Singapore because of the healthy growth in Malaysia and now, there have above 10 outlets in Singapore which growing very well. 1.2 Mission Statements The vision Think pizza, choose Dominos and the mission, A passionate team in pursuit of becoming the unrivalled No. 1 pizza company in Malaysia. Dominos Pizza is passionate about delivering quality food and service. The product and service is all about convenience, fun, sharing quality time together with friends and families over a delicious pizza meal delivered from hot and fresh oven to customers doorstep.

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1.3 Goals and Objectives The objectives for Dominos Pizza are to become the No.1 delivery expert in the worlds leading pizza and do their best all the time to give the good quality from the products to the services in all aspects and maintain the current good reputation from customer which is the quick delivery service. 1.4 Products and Services Dominos had come out with a 30 minutes delivery guarantee to their customer which mean Dominos will give a free regular pizza voucher if they could not be punctual to the destination. In addition, Dominos also provide a 15 minutes take-away guarantee, otherwise will free a personal pizza on the next order for their customer. Dominos also offering free delivery to their customer which no additional charges and has a product satisfaction guarantee with a Nett Pricing as well. 1.5 Core Competences/ Competitive Advantage Dominos Pizza have a special size of pizza compare to Pizza Hut and Papa Johns which is 15 inch as known as extra large pizza whereby suitable for people who celebrate party. The company competencies include the online GPS tracker which allowed consumer to check their pizza delivery status which benefits the organization and customer. 2.0 Market Analysis Dominos started trade common stock in the New York Stock Exchange with the symbol of DPZ in 2004. In Dublin and Ireland, Dominos hit a turnover of $3 million

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per year. In 2008, an online application launch by Dominos which the GPS Tracker. It allow customer to check the status of pizza processing. 2.1 Industry Analysis There are many pizza makers ranging to international franchises from local pizzerias such as Dominos Pizza and Pizza Hut. By viewing into the current health issues, todays society as well as economic recession most of the companies are being forced to follow the healthier and cheaper products. Many companies had added salads into their menu because consumer now is concern in healthier choices. The popularity of Internet had become the market trend and market needs as well as the mobile because it is changing the traditional ways of ordering a pizza. 2.2 Competitive Analysis Dominos competes with McDonalds, Pizza Hut and Papa Johns in Malaysia. McDonalds own a very strong image throughout the worlds and Pizza Hut is the largest competitor for Dominos in pizza industry and both of this company trying to maintain a good image to compete. Followed by Papa Johns recently are increasing competition to Dominos because of their rising popularity. 2.3 SWOT Analysis This analysis is to identify Dominos strengths and weaknesses and correlate with the opportunities and threats in order to achieve to goals of the company.

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Strengths Dominos have a very strong brand image and it is the leading pizza delivery company with more than 5000 stores in US. It has high brand equity assists by marketing campaigns and the heavy advertising. Dominos have its loyal customers so it can helps the company when they come out with a new product and have a strong network with its franchises therefore it able to increase the market shares and sales. In Canada, Dominos created the world largest pizza fight every year.

Weaknesses Dominos have a major weaknesses which they experienced a sales decrease in their store which bring down the brand image and the revenues of the company. This had decline the amount of domestic franchises in 2008. Dominos will try to increase back in the next few years for this issue. Besides, the slow growing or declining sales happen affected by the poor quality which not up compare to the competitors and the menu are too simple compared to other chains.

Opportunities Dominos have their own opportunities and the most major one is the efficient delivery pizza compare to the competitors. This is a way to expand their operating effectiveness. Dominos had offer a services on the mobile application and its work because many sales are come from iPhone application. There is a big growth

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happen in India and Chinas population and this will help to increase their revenues. Threats The increases of food price would be a threat for Dominos because it impact their businesses by increasing their operating costs. Besides, the fight of the pizza delivery industry is absolutely a threat for Dominos as well. In the fast food industry, there are always new businesses being crated. In addition, there is another threat which is people now is concerning with their health issues and this could affect the profits of Dominos. 3.0 Market Product Focus Nowadays, fast food industry is facing healthy issues problems. Therefore, Dominos should come out with healthier choices for consumer. Okonomiyaki Pizza is a pizza and this product operates wells in Taiwan. It is a Japanese savory pancake containing variety of ingredients that consists of batter and cabbage. Selected toppings and ingredients are added which can be very greatly.

3.1 Marketing and Product Objective To enlarge the specialty with healthier choices pizza for consumer and to increase sales for the company to maximize profits.

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3.2 Target Market The target market for Dominos Okonomiyaki Pizza is active in all the stores of Dominos Malaysia. A selected area will be more focus such as Subang Jaya, Sunway and KL which nearby the college or university campus. The main target customer and it was especially aim to the people in the age group of 16 to 64 are its main target group for communication which was the young adult from the college student and the adult from working group. The demographic of the market is to attract the customer from the middle class and upper middle class because this groups of customers need to spend their money to enjoy the fast food but in low price. It also target people who want to take a break from what they eat every day or from cooking. 3.3 Points of Difference Okonomiyaki Pizza contains healthy dose of bonito flakes which bonito is a type of fish and come with cabbages toppings which can compete with the competitors in concerning health issues.

3.4 Positioning Okonomiyaki Pizza is to create a healthier image to change consumer perception or consumer mind which is unhealthy to improve better.

4.0 Strategy of Implementation Okonomiyaki Pizza create is to more focusing on the health issues today and to develop a different style and culture of pizza for Dominos in Malaysia to compete with the competitors.
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4.1 Product The name of this new product is Okonomiyaki Pizza which already launch in Taiwan. The standard ingredients of this pizza include healthy bonito flakes which are a type of fish, stir-fried noodles, Japanese mayonnaise, powdered seaweed and plenty of shredded cabbages mix with flour and grilled it. The toppings can be chosen or add on greatly such as mushroom, vegetables, shrimp, squid, chicken and octopus. The sizes of the pizza include 6 inch, 9 inch, 12 inch and 15 inch as well. The delivery services are available.

(Source: DominosTaiwan, 2012)

4.2 Pricing The basic understanding of cost involved is very important to avoid no earnings. Found that the ingredients for the Okonomiyaki Pizza are not very expensive, therefore can sell it in a reasonable price to compete with McDonalds and Pizza Hut such as using set lunch or family combos. The ala-carte price pizza for the Okonomiyaki Pizza will be RM 9.90 for 6inch, RM 21.90 for 9 inch, RM 30.90 for 12 inch and RM 41.90 for 15 inch. Ala carte will be slightly expensive compare to set, so will provide more set value and set dinner even family package dinner for customer in the promotion strategy.

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4.3 Place This product will launch in Malaysia and will active in Dominos pizza outlet. It will be more focus in selected areas such as KL, Sunway, Subang Jaya and Petaling Jaya which nearby colleges or university campuses around that area to target the college students and foreigner students. Another area will be focus is the office shop lots which target the working adults who prefer healthy fast food during their short break time with a comfortable environment during the hot weather in Malaysia.

4.4 Promotion Create a set lunch for the Okonomiyaki Pizza which include one pan of 6 inch pizza and comes with a jasmine tea and two slices of fruits to emphasize the healthy tag line which can fixed the cost around RM7.90 net per set to attract teenagers, students or working adults from 12pm to 3pm which is dine in only. Okonomiyaki Pizza should be added into the menu with another column to shows the ingredients contain, and shows new specialty pizza compete with the competitors. Advertising is a need to promote this new product to create awareness among the consumer and giving out coupons or voucher is an advertising which can increase the sales as well. Internet advertising such as using groupons, dealmates and etc which sells voucher through online can be consider because nowadays people are attracted to this marketing strategy which goes well in Malaysia.

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5.0 Financial Data and Projections 5.1 Expected Market Share The health conscious of consumer towards fast food industry will affect the profits of the company. Therefore, developing healthier or new product may increase back the sales and market share. For example, McDonalds launch a new product which is Grilled Chicken Burger (GCB) which contains lowers calories and had attracted many customer in addition the sales and market share increase during the period. Is a fact and should believe that Okonomiyaki Pizza will have the same result as well because it is a product that concerning in health issues by looking in fast food industry. People do not mind to have a try to choose healthier foods. Therefore, the expected market shares for Okonomiyaki Pizza will increase the Dominos market shares.

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5.2 Expected Net Revenue To calculate the expected net revenue for Okonomiyaki Pizza set lunch, with a RM 6.00 gross profit per unit sold, the expected unit sold per year is 40,000. Therefore, the Okonomiyaki Pizza net revenue will be Rm6.00 X 40,000 units = RM240000.

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6.0 Implementation Plan 6.1 Gantt Chart List of Activities Jan To develop market testing effectively. To do an office offer for the working adults. To do a promotion campaign in colleges. To do an offer voucher in the internet such as Groupons. To do a contest, win an Ipad seasons! To develop a new toppings turkey for Christmas 6.2 Promotion Schedule List of Activities Description A set lunch of office promotion will cost RM6.90 during 12pm to 2pm include a 6 inch Okonomiyaki Pizza with a To do an office offer for the working adults. jasmine tea. A roadshow of giving out voucher RM3 for Okinomiyaki Pizza after clicking a LIKE to our Facebook Fan Page in college and university campus in selected areas. Terms and To do a promotion campaign in colleges. Conditions apply. A set of family combo with a nett price of RM50 include two To do an offer voucher in the internet such as pan 9 inch of Okonomiyaki Pizza, 4 cups jasmine tea, one Groupons. plate of fruits and 4 pieces of chicken wings. Dine-in only. Fill in the answer for the question given in the contest, staple To do a contest, win an Ipad seasons! with a receipt purchasing above RM10 to win an Ipad. To develop a new toppings turkey for A new ingredients which is Turkey toppings to celebrate Christmas Christmas together with Okonomiyaki Pizza Ju Feb Mar Apr May n July Aug Sept Oct Nov Dec

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7.0 Evaluation and Control Evaluation is to evaluate the sales or revenue of the product and to control the quality and understand the risk that will be faced.

7.1 Quality Control To ensure the quality control, ingredients should always be fresh to be cook. Training should be provided to the staff to ensure the staff be able to cook well and serve the good quality food in a right ways to the customer.

7.2 Risk Analysis The amount of shredded cabbages must be concern when mix with flour to avoid the uncooked cabbages eaten by customer. All the ingredients must be fixed and measure accordingly to avoid problems happen which may affect the sales. The ingredients must put in a suitable place and temperature to avoid wastage such as octopus and shrimp.

7.3 Evaluation Analysis Based on the market share expectations, Okonomiyaki Pizza sales analysis will be conduct every 6 months and adjusting the promotion budget accordingly.

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8.0 References
http://www.dominos.com.my/corporate/Corporate.aspx http://investorplace.com/2012/11/the-craziest-dominos-pizza-youve-everseen-guaranteed/ http://www.brandeating.com/2012/11/around-world-dominos-taiwanoffers.html http://business.library.wisc.edu/resources/kavajecz/10_Fall/Dominos_Report.p df http://www.ukessays.com/essays/marketing/consumer-segments-on-dominospizza.php Dominos.uk.com. (2011). http://www.dominos.uk.com/aboutus.aspx Available from:

http://www.themalaysiantimes.com.my/domino-expanding-nationwide-by2014 http://marketography.com/2010/03/09/dominos-pizza-beyond-the-dough/

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