Domino's Pizza faced challenges with customer preferences changing and new technologies emerging. To address negative perceptions of taste, Domino's reworked their recipe from scratch, improving flavors. They also pioneered online ordering and tracking to streamline the customer experience. These efforts improved sales dramatically. Further opportunities exist in targeting growing international markets, offering more customized options through technology, and expanding the menu with health-focused items.

1. DOMINO’S PIZZA INC.
Opportunities lie in
potential change
Market changes and its types
Prakash Chandrasekar (2014201)
Prateek Shreemal (2014202)
Raj Shekhar (2014217)
Rajagopal Sampath(2014218)
Rakesh Kumar Choudhary(2014220)
Date : 6/30/2014
The various market changes in the pizza market are discussed here along with their impacts.

2. 1
Contents
Introduction ..............................................................................................................................................2
Changes in Pizza Market.............................................................................................................................2
Customer Preferences................................................................................................................................2
Technology................................................................................................................................................5
Business model..........................................................................................................................................5
Opportunities ............................................................................................................................................6
Our Thoughts.............................................................................................................................................6

3. 2
Changes in Pizza Market
Introduction
About Domino's Pizza ®Founded in 1960, Domino's Pizza is the recognized world leader in pizza
delivery, with a significant business in carryout pizza. It ranks among the world's top public
restaurant brands with its global enterprise of more than 10,980 stores in over 70 international
markets. Domino's had global retail sales of over $8 billion in 2013, comprised of over $3.8 billion in
the U.S. and nearly $4.2 billion internationally.
Changes in Pizza Market
With continuous evolvement in the strategies to sell its product the pizza market accepted the
following changes like
1. Home delivery system- came into existence after only dining and take away was available
at the Domino’s and the sales turned out to be less during the monsoons as people found it
difficult to reach out to the store in heavy monsoons. Domino’s brought a 30-minute delivery
system. Domino's has paved the way for businesses involved in food delivery, employing
practices that have set the standards in the industry.
2. Internet- has changed the face of every industry and pizza industry is no exception. With the
heavy competition with other fast foods in the market, most of the pizza companies found that
a website would convey more information about their services available. Domino’s also
started one such website and later moved on to provide online ordering and also ordering from
mobile applications.
3. Competition- To survive the competition, menu changes and promotions came into play.
Domino’s changed its pricing strategy by offering discounts on certain occasions and also on
normal days. Discount coupons were given to customers who made a previous order at
Domino’s. Customized menu was also introduced to lure customers, where in they can choose
the crust of the pizza and also the toppings to be added in the pizza.
4. Pan Pizzas – Domino’s introduced the pan pizzas to enhance the quality of taste on the
pizzas.
Customer Preferences
Challenges Faced
Customers felt Dominos pizza tasted bad
People had always given credit to dominos for being great at delivery, but they weren’t giving credit
for the taste of the pizza. In late 2008, Domino’s market share was plummeting. Consumers perceived
the pizza as inferior to their competitors. In a 2009 survey of consumer taste preferences among
national chains in the U.S. by Brand Keys, Domino's was last.

4. 3
Response from the company
Dominos top brass decided to embrace the negative customer input. The pizza chain threw out its 50-
year-old recipe for pizza and rewrote it from scratch. They listened to diners’ complaints and set
about to reboot their pizza by changing the recipe and production process.
For more than a year, the company experimented with new types of dough and other ingredients.
They worked in secret, while keeping franchise owners happy by launching a successful line of
sandwiches to attract the lunch crowd. For the next 18 months, Patrick Doyle spearheaded the
overhaul of Domino’s pie.
Research group after tasting the final product had confirmed a spicy sauce, a new cheese blend and a
flavored crust were great improvements, and a dramatic rollout was scheduled for the winter of 2010.
Domino’s took to the airwaves with a bold marketing move: It let customers criticize its pizza
publicly and then promised a completely new one.
The customers were having frozen foods, which were considered unadvisable. This applies to the
children especially where they were eating innutritious food. They took the following initiatives for
the children.
1. With 93 percent of schools in the U.S. serving frozen pizza, and NPD research showing that
only one in four kids enjoys the taste, Domino's sees an opportunity to provide hot food that
not only meets nutrition guidelines – but also tastes great.
2. Patrick Doyle said "Freshly baked pizzas can help schools meet or exceed nutritional
requirements and goals, while appealing to kids with great taste." (Source: PR Newswire US,
Jan 2011)
Impact
They were able to cover a lot of schools by serving hot pizzas and were able to attract the schools
which were serving frozen foods.
As anticipated by Dominos the results were overwhelming. The U.S store sales shot up 14.3 percent
in 2010 first quarter, followed by another surge of 8.8 percent in the second quarter. Doyle confirmed
that “We re-launched this brand.” the success was described by Doyle as one of the largest quarterly
same-store sales jumps ever recorded by a major fast-food chain.

5. 4
The Indian challenge:
India is a tricky market for food chains. In the early 90’s the Indians were quite hesitant to order
foods and eat at their homes. Pizzas were considered costly to be consumed. Also the country had its
own preferences when it comes to food. Hindus don't eat beef, Muslims don't eat pork, and a sizable
percentage of the country doesn't eat meat at all.
Response:
Dominos made ordering pizzas a lot simpler by introducing a single number across the country.
Dominos had tweaked both its prices and menu. The prices were revised downwards as much as 40
percent and more Indian flavors were added to the menu. Now 35 percent of its offerings in Indian
stores have Indian flavors(chicken chettinad,paneer tikka,etc.). Around 50 percent of the menu was
made vegetarian.
Result:
Pizzas with Indian flavors are finding shelf space internationally. There are pizzas from India that are
now being sold in the UK, like paneer pizza, chicken tikka masala pizza and kheema do pyaza pizza.
India houses 650 Domino stores and it is very likely that this number will overtake the 750 stores the
chain has throughout the UK.
A study by Unmetric in October 2013 found that Domino's was the most successful pizza maker in
India in terms of social media followers and activity. Nearly seven out of every 10 pizzas sold at
Domino's outlets in India are vegetarian.
Fact
1. Domino's sells more than 11 million pizza slices on Super Bowl Sunday, nearly 80% more
than a typical Sunday.
2. 85% of the items on Domino's menu are new since 2008.

6. 5
Technology
Challenges Faced
The main problem faced by the customers of Domino’s was that they couldn’t get their pizzas
delivered in a short time. They were also unaware of the status of the pizza ordered and had to make
phone calls every time to know only if the pizza was ready to be sent to the delivery boys.
Response of the company
1. Domino’s online tracker - This revolutionary technology allows Domino's Pizza customers to
follow the progress of their order online, from the time they click the "Place Order" button (or
hang up the telephone), until the order is delivered.
2. Domino's launched an industry innovation, Domino's HeatWave®, a hot bag using patented
technology that keeps pizza oven-hot to the customer's door
3. Domino's debuts its ordering application for Android, Windows and other smartphones. This,
in addition to its existing iPhone app which debuted in 2011, offers a Domino's accounts to
more than 80 percent of smartphones
4. Domino's credits its digital platforms for helping drive sales. In 2013, the company's domestic
sales rose 5.4 percent at established locations. People who order digitally also tend to spend
more and return with greater frequency because they like the convenience. Domino's is
introducing its own version of Siri. Here customers place orders by speaking with a computer-
generated voice named "Dom." The rollout is part of an ongoing push by Domino's to take
business away from rivals and smaller pizza shops by offering more convenient ways to order.
5. Domino’s Pizza has pioneered the use of technology as a part of pizza delivery model. In
1999, it was the first pizza delivery company in the world to offer nationwide internet
ordering.
Impact
As of now, the online pizza delivery accounts for around 25% of the total sales.
(Source: www.computacenter.com/case-study)
Fact
1. Domino's is consistently one of the top five companies in terms of online transactions,
behind companies such as Amazon and Apple.
2. 95% of smartphones in US are covered with the ordering app (iPhone, Android, Windows
Phone)
Business model
Challenges Faced
The customers found that the taste was not good at Domino’s and the sales started to go down. They
were also termed as second rate fast foods. Domino’s also accepted that the taste of the pizzas was
not good and they changed their old recipe to make it suitable for the youth who were fond of western
foods.

7. 6
Response of the company
1. Tired of its reputation as a purveyor of second-rate fast food in Singapore, Domino’s pizza
chain threw out its 50-year-old recipe for pizza and rewrote it from scratch.
2. Domino’s is targeting a growing population of young people in Singapore, and a culture that
is fond of Western food.
3. Domino’s takeaway orders within 15 minutes, failing which, customers receive pizza
vouchers. (Source: Asia's Media & Marketing Newspaper, Feb 2010)
Impact
As of now, the online pizza delivery accounts for around 25% of the total sales. (Source:
www.computacenter.com/case-study)
Facts
1. Domino's delivers more than 1 million pizzas a day worldwide.
2. Domino's International has experienced 81 consecutive quarters (20 consecutive years) of
positive same store sales growth (Q1 2014).
Opportunities
In order to create value for the customers, Domino’s has a lot of opportunities which can be made use of.
1. Dominos can target markets of China and India aggressively as they have huge population
thus contributing to the increase in sales.
2. Allow the users to create an order and specify the date in which the pizzas are needed.
3. Domino’s has the option of starting stores in the remote cities, and also in the main rural areas
as people are turning out to be modern.
4. The use of drones is being considered by the Domino’s as an opportunity by delivering pizzas
at the doorsteps which could eliminate the problems relating to traffic or reckless driving of
the delivery boys.
Our Thoughts
1. They could offer new menu items specific to the store location based on the climatic
conditions, and introduce new products. This would provide nutritious foods. All of the
strategies would continue to better their brand recognition across the world.
2. Domino’s could also offer more white sauce products on their menu rather than the traditional
red sauce that the majority of their products contain.
3. Domino’s could offer soups, salads and other such items that could complement their main
course meals
4. They could provide fast pizzas of the same quality where a customer could get the delivery
within 5-10 minutes, that the customer need not even get down the vehicle, which could be a
matter of comfort. This could also toughen the McDonald’s drive inn outlets.
5. They could also take orders to be delivered for passengers travelling in train, that they could
take the order before a stipulated time and getting the seating details of the passenger and
deliver the orders right inside the train.