Phase 2- Situation Analysis
To start off, our group would like to recap the current situation that we feel Domino’s
needs to improve. Domino’s has a “Piece of Pie Rewards” system where for every order you
receive 10 points and once you have 60 points you are eligible for a free pizza. This program
gives users special deals and convenient ways to place their orders. “Piece of Pie Rewards” is a
good way to get customers engaged, but we want to revamp the boring program with a new
engaging one so that more customers will be attracted and have fun. We discussed utilizing
social media and having weekly challenges where customers could post and tag us in the fun
events that they complete in order to gain points.
In our situation analysis, we are looking further into the external environmental factors
that have an impact on Domino’s. Specifically, we are looking at the competitive factors of other
fast food pizza chains and how their rewards/engagement programs compare to Domino’s and
the technological factors such as the use of social media and apps. We then are going to discuss
the SWOT Analysis for Domino’s which then will lead into the research analysis where we will
talk about growth forecasts of utilizing a new social media platform and how this alone will
attract a new customer market. We are also looking at the growing industry size of the delivery
market and how fixing the Domino’s app/rewards will get the new customers engaged while
utilizing the option of deliveries. Next, we will talk about Domino’s current marketing mix and
list some of our ideas for our new mix. Finally, the marketing potential that we think Domino’s
has after this analysis is that Domino’s will gain more customers when revamping their current
rewards programs to make them more fun and engaging compared to other competitors which
will lead to an overall growth in customer engagement.
One large factor in the external marketing environment for Domino’s is the competitive
factor. Domino’s has many major competitors in their industry like Papa John’s, Little Ceasar’s
and Pizza Hut. Domino’s can differentiate themselves from their competitors by focusing on the
quality of their rewards program. We took an in-depth look at Pizza Hut, Little Caesar’s and
Papa John’s apps and their rewards programs are very lackluster. It takes an absurd amount of
points to earn anything of value on these rewards programs. We propose that in order to attract
more customers from our competitors, we make Domino’s rewards program far more attractive
than the competitors. For example, we could make a rewards deal for every three large pizzas a
customer orders, they get one for free. That would incentivize customers to buy more pizzas due
to the added value they get from buying three pizzas. Another potential promo Dominos could
run is for every 150 points the customer gets a free side. A lot of the fast food apps are very
outdated and not easy to understand. Domino’s could roughly follow in the footsteps of Chipotle
and McDonald’s, whose apps are very user friendly and easy to understand, and that would put
them steps ahead of their competitors. A comprehensive rewards system is vital for the continued
success of Domino’s.
Another external environment factor is technological. Technological advancements in the
restaurant industry have the potential to completely revolutionize the industry. If Domino’s were
to develop a new revolutionary way to make pizzas faster, decrease delivery times or even an
improved mobile app, they will gain a significant advantage over their competitors. The
development of a new and improved mobile app would be very vital in differentiating Domino’s
from their competition. Our group believes that Domino’s should focus on improving their
mobile app. Their current mobile app needs a lot of improvement. It seems outdated and does not
have as many features as many popular fast food apps. We believe that Domino’s should become
more engaged with their customers. They can do that by revamping their rewards program within
their app to make it more worthwhile for customers to join the rewards program. They can also
use social media to their advantage and engage frequently with customers on social media sites
like Instagram and Snapchat.
Strengths: One strength of Domino’s is the lengths it will go to provide excellent service
for their customers. One of the most important strengths of Dominos is their brand recall value
due to their constant advertising and marketing. Their “30 minutes delivery guarantee” is the
heart of the company and is what keeps it going. Compared to the other pizza and fast food joints
which take longer to deliver, Domino’s stands out in this regard. Domino’s has a strong cash
flow and is financially extremely sturdy which gives it an edge over the other businesses.
Additionally, Domino’s has introduced patented insulated bags to keep pizzas oven hot during
delivery as well as creating a specially designed pizza box which keeps moisture from making
the box wet and cheese from sticking to the top. These little details in making a product that
keeps pizzas hot and not sticking to the box proves how strong Domino’s cares for its customers.
These inventions were made with the customer in mind and wanting them to have an amazing
product. The “30 Minutes or Less” guarantee along with the insulated bags and specially
designed pizza boxes shows Domino’s strength in its customer service. It shows the lengths
Domino’s will travel in order to provide customers with a great experience.
Weakness: An internal weakness which Domino’s possess is that it lacks customer
engagement. The only customer engagement Domino’s has with its customers is through its
Piece of Pie Rewards program, and even then, it isn’t as extensive as it could be. In this rewards
system, it only allows customers to earn points to work up to getting a free pizza and nothing
else. This is a weakness because Domino’s is not doing a lot to retain and gain customers
