CONFIDENTIALITY AGREEMENT..................................................... 2

AUTHOR CONTACTS............................................................... 2

TABLE OF CONTENTS............................................................. 3

EXECUTIVE SUMMARY............................................................. 4

BUSINESS BACKGROUND AND FINDINGS.............................................. 5

CONSUMER EXPERIENCE MAP AND FINDINGS...........................................8

CONSUMER REAL VIRTUAL EXPERIENCE...............................................10

CONCLUSION.....................................................................12

REFERENCES.................................................................... 14

APPENDICES.................................................................... 16

EXECUTIVE SUMMARY

The United States has a very wonderful pizza restaurant chain, neither the single-minded research and development pizza products, nor minded the store experience to achieve the ultimate. It was able to miraculously become the world’s second-largest pizza restaurant chain. Domino means: they want the business can develop as dominoes knock-on effect. In the report, I would like to share Domino’s unique business model – not focus on products but involve in advance technologies innovation with creative marketing ideas; Domino’s use social networking and digital tools to engage with consumers, and how these help it solve the public relations crisis; after review the feedback of Domino’s three loyalty customers, probably Domino’s success keys could be revealed, it’s an unique company with an ahead-thinking, forward-looking and industry market insights to improve customer experience and enhance customer’s loyalty.

BUSINESS BACKGROUND AND FINDINGS

About Domino’s Pizza

Domino’s Pizza is multinational’s pizza delivery chain, headquartered in the United States, Michigan in Ann Arbor, founded in 1960. It is the outside world recognized pizza in the United States and international markets operates a network of company-operated stores and franchises constituted. Domino’s Pizza’s vision revealed the company’s outstanding employees with the mission – to be the world’s best pizza delivery company outside. Domino’s Pizza is the world’s leading pizza chain brand and has operations in more than 80 countries and regions, more than 13,000 restaurants and the annual income is $2.2 billion in 2015 (Domino’s, 2016) and entered into New Zealand market in 2003.

Unique Business Model of Domino’s Pizza

From the product point of view, as an American-style pizza, it is neither tenacity delicious as Italian handmade pizza, nor aftertaste as cracker pizza. From marketing, Domino’s Pizza focuses on take-away business model, neither focus on new product development as Papa John’s, nor emphasize store experience as Pizza Hut. However, it realized 22 years of continuous growth, the stock market rose by 50 times.

Why concentrate until a development is neither pizza nor the experience to achieve the ultimate storefront pizzeria, would be so crazy?

First, focus on takeaway areas, store marketing only 20%

Up to now, Domino's Pizza is 80% sold by the takeaway, and 20% rely on offline stores. In the United States, 90 percent of the pizza delivery market is Domino's occupation, while the offline stores more play is a showcase platform (CMO, 2016).

What makes customers more willing to order the takeaway pizza of Domino’s? And rarely book competitors’ pizza? The answer is: fast enough! Since 1973, Domino's made a special slogan: “30 minutes served, otherwise free" (Mitra, 2013).

Domino's thinks, due to the low barriers of doing take-away business, only faster serve can support the company to be more stable in the market. 30 minutes is the people's psychological endurance pole and deliver the pizza to customers within 30 minutes is the fast standard.

Therefore, Domino's stores in every location are extremely accurate, detailed analysis of the surrounding main takeaway consumer groups, communities, streets, roads, etc., and stores in the area carefully plotted in detail to the position of each intersection and traffic lights in order to find the best takeaway delivery route.

During this period, staffs and managers of stores will work together to optimize the planning of takeaway route. Specified delivery time is 8 minutes per takeaway, reserved for 7 minutes to prepare the traffic jam or any accidents. More than 99% of the Domino's Pizza can be delivered within 30 minutes.

Second, not only sell pizza, but will itself into an IT company

As a pizza company, the largest department is neither the R&D which develop and taste the pizza, nor the marketing department, the largest one is the IT department. Even Domino's marketing director has joked: "Domino's is actually a technology company, but it just selling pizza." (Pathak, 2015)

Why sell a traditional pizza business will turn into an IT company?

Domino's said: the traditional business model of take-away is answering phone orders, and delivery food is a physical work, all of these are do not have the competitive strengths. When imitators are booming and diving into the market, Domino's advantage will not be able to keep. So they began to invest large sum of money in the high technology, and leverage technologies to maintain its core competitive advantages.

For example: In 2007, when other pizza companies are answering telephone orders, Domino's introduced the computer and a mobile terminal ordering page, customers can order food online directly.

In April 2012, when the UAV (Unmanned Aerial Vehicle) just popular, Domino's UK subsidiary began to experiment with UAV delivery.

In 2013, the United States began to launch of music robot food delivery service.

October 2015, Domino's has introduced pizza car - DXP, it usually traveling in every stronghold. When a customer places an order, the final processed food can be completed directly in the car, and sent food to customers more quickly (NDTV, 2016).

In March this year, Domino's launched a new delivery robot which is the world’s first automatic pizza delivery robot and New Zealand becomes the first country to try it. (Sachdeva, 2016)

Technology is changing people’s habits, which generate the market gap. A quote from Domino’s executive: Domino’s did not create the demand, it just creates customer experience and appreciate customer to accept these kind of experience continually. The use of combination of technologies and digital, Domino’s can perform well in the field of the convenience of ordering, customer satisfaction and data evaluation on its capability.

The industry believes that, Domino’s is a technology company, just happened to selling a pizza. The engine of its development is leading new technologies, new experience, new tools and new creative ideas. Whether Domino’s wants to sell burgers or burritos in future, it is not a problem seemingly.

CONSUMER EXPERIENCE MAP AND FINDINGS

Digital Customer Experience of Domino’s Pizza

Domino’s used not only in scientific and technological means to enhance customer experience on ordering benefit, but also to build-up an amazing image in the most active social medias: it is often made a number of “appalling” and “fanciful” topics in social medias, even said to open branches on the moon, “customer can enjoy the earth sights when eating pizza.” (Ryall, 2011).

First, enhance customer experience via social medias

Domino’s delivery of unmanned aerial vehicles and posted” movement. Domino’s once sluggish sales in the UK market, it launched a random drone delivery service in London. Many young people want to be served pizza via UAV, so the UAV become the master and be the focus of everyone’s expectations. Many lucky guys will take a photo with the delivery of unmanned aerial vehicles when enjoying the services of UAV, and upload to Facebook. Within months, Domino’s fans rose 100,000, sales rose by 12% (Youtube, 2013).

“50 million people involved in the production of social Pizza” contest. Domino’s has launched the production of social activity on Facebook. Customers can vote “social Pizza”, from bread, sauces, vegetables, and any step of the production chain. Ultimately, this “social Pizza” has placed in menu. And the advisors whose opinions were adopted has owned thousands of dollars as prize. The event attracts hundreds and thousands of fans to participate in interactive.

“Fun social interaction with discount” activities. Domino’s Japan branch to promote a discount activity – customers can receive discount coupons once they finish a task, the tasks are: keep a beard, or tie pigtails, even or speak a local dialect. Once complete it, just shared on social networking and a coupon will be delivered to the customer. There have been the abundance of strange instant online cute videos and pictures and became a hot topic on social networking.

“Free weekly pizza” activities. Domino’s fans are strongly encouraged to recommend friends to join Domino’s business community, every Friday 17:00 the recommendation king could be elected to acquire free pizza. Weekly Domino’s will host a variety of incentive programs to return customers.

“Share friends, get commission” activities. Domino’s American branch have had such an event: to share their predetermined pizza page to a friend, or share personal page or space, and if the friends order the pizza via these channels, the sharer can get a small proportion as commission from the order of the friends.

Second, improve itself via customer feedback

In 2009, Domino’s appeared in the history of its very serious crisis. The dough slapstick of two employees in Houchu was released, the video uploaded to the network quickly and caused an uproar (York, 2009). The video sparked consumer boycott and the criticism of Domino’s overwhelmed overnight. At that time, Domino’s neither to write public relations draft, nor to carry out the disposal of the decision immediately, it only did two things:

First, Domino’s CEO rented electronic screen at Time Square, all the dissatisfaction and complain loop on the big screen (Wasserman, 2011). The commentators of industry believed Domino’s CEO already lost the capability of control market. Script, videos, pictures emerged constantly and became a social hot topic in several days. Later, consumers discovered that there were a lot of funny jokes and slowly began to compete who released funniest scripts. As the result, the crisis turned into a mass entertainment.

At this time, Domino’s CEO made an official apology and explained that Domino’s executive level listened and acquired consumer voice through the electric screen and social media, determined to change the 50-year old flavours. Welcome consumers to taste and feedback the suggestion for further improvement (Gregory, 2009).

This strategy resolved Domino’s public relations crisis, Domino’s stock price soared 40% in short time, brand awareness was increased unprecedentedly and sales of stores grew of 750% (Agnes, 2012).

Until now, listening customers’ feedback is Domino’s retention project. “Think Oven” project is to let consumers appraise and evaluate company directly on Twitter, Facebook. Domino’s constantly collecting feedback via social media, some new ideas, complaints, feedback are collected by a dedicated person to review and analysis, some new marketing promotion ideas and inspiration are come from here. Domino’s leverages instant social media, encourages the interaction with customers, especially increases consumer viscosity and loyalty to extend distribution.

CONSUMER REAL VIRTUAL EXPERIENCE

As described above, Domino’s leverages new technologies and digital tools to provide the completely different consumption experience for its customers, not only increase sales revenue and enhance customers’ loyalty, but also improve the brand influence and extend its marketing sharing. Here, to see how three customers to evaluate Domino’s.

First Interview:

Interviewee: Mr. Godfrey

Occupation: Project Manager

Interview Mode: via phone call

Q: Do you often choose Domino’s for online ordering?

A: Actually I am Domino’s loyalty customer more than 10 years and almost order pizza, snack and drink every week. I prefer to place order via my mobile’s Domino’s app, it so easy to handle with the friendly pages.

Q: Why do you choose Domino’s?

A: As you know, I am a project leader and our team should meet together to discuss the projects process in every Wednesday morning. If the meeting couldn’t finish till noontime, Domino’s pizza is our best choice, because usually Domino’s is the most convenience, time-saving and not affect work in meal time.

Second Interview:

Interviewee: Carmen

Occupation: Housewife

Interview Mode: via phone call

Q: Do you often choose Domino’s for online ordering?

A: Yes, Domino’s food is one of my family favourite food – my kids really like fries and chips, and chicken wings are my husband’s favourite. I usually order Domino’s food via internet two-three times per week, their website’s design is so convenience for order.

Q: Why do you choose Domino’s?

A: Although I am a housewife, every day I am going to participate community activities and also to take my kids to join some extracurricular event, sometimes come back home so late. In this case, I will place the order via internet and book pizza, snacks, they will be sent within 30 mins, so the family will not have dinner too late. And sometimes, I invite friends to my home and Domino’s food can help me entertain them very well. Domino’s often do some marketing promotion programs, since I am loyalty customer and always can receive some coupons or if they organize some related promotion, I will be noticed via email. I like this kind of marketing approach, it’s so friendly.

Third Interview:

Interviewee: Andy

Occupation: Builder

Interview Mode: via phone call

Q: Do you often choose Domino’s for online ordering?

A: I quite often place the orders through Domino’s mobile app, sometimes I also order via internet. I am Domino’s funs and participate their Facebook and twitters.

Q: Why do you choose Domino’s?

A: I am a single and work at Auckland as builder, usually so busy and tired after work. Domino’s food can solve my dinner within 30 mins after place the order and with a steaming hot pizza, snacks, I love hot food. I have been added to Domino’s Facebook and Twitter in 5 years ago and have been focused on its performance from that time. Based on local tastes, I always post some comments and suggestions in these social networking. Moreover, if Domino’s launches some new products, I would order and taste at first time.

CONCLUSION

Domino’s is a precise positioning of its products, understand if they want to win business, sometimes speed is more important than taste. It is so interesting position in the industry. Pizza is one kind of food between a snack bar and official meals, most restaurants can do not taste much worse. In this status, it’s very important to find a quick, easy, simple position in the industry market. According to customer research in the market, Domino’s intends to increase investment in internet, mobile applications, digital interactions to optimize customer experience. Meanwhile, Domino’s manages fairly social media to crease spread of information and contents when it launches new products, fully leverage the features of social networks and the internet functions. Accepting negative feedback from customer and using the internet, social media to reduce harmful effect are the best publicity strategies for the market positioning and customer ethnic groups.

Meanwhile, Domino’s biggest advantage is not speed of takeaway, not IT innovation, not creative marketing and sales, but its ahead-thinking, forward-looking and market insight. When rivals are focus on expanding stores in market, Domino’s started doing takeaway; when rivals focus on how to improve customer service of answer customer phone calls, enhance delivery efficiency, Domino’s started delivering food orders via internet; when rivals focus on accepting orders via the internet, Domino’s started to use new advanced technologies as much as possible to improve customer experience.

Domino’s implements a principle: “others haven’t, I have; others have, I am expert; others are experts, I am professional.” Doing faster than others is the path to excellent performance of Domino’s.

REFERENCES

Agnes, M. (2012), Domino’s Pizza: a look at the timelessness of a social media crisis plan. Crisis Management Strategist. Retrieved from: http://melissaagnes.com/dominos-pizza-a-look-at-the-timelessness-of-a-social-media-crisis-plan/

Chief Marketing Officer (2016), How did Domino’s make a miracle? Retrieved from: https://www.fooads.com/post/573effdfd24e6d6224748044

Domino’s Official Website (2016), Domino’s 101: Basic Facts. Retrieved from: https://biz.dominos.com/web/public/about-dominos/fun-facts

Gregory, S. (2009), Domino’s YouTube Crisis: 5 ways to fight back. Time. Retrieved from: http://content.time.com/time/nation/article/0,8599,1892389,00.html

Mitra, M. (2013), Domino’s adopts to deliver your pizza in 30 mins. The Economic Times. Retrieved from: http://economictimes.indiatimes.com/slideshows/corporate-industry/8-mantras-dominos-adopts-to-deliver-your-pizza-in-30-minutes/slideshow/19123621.cms

NDTV (2016), Domino’s Pizza news. Retrieved from: http://www.ndtv.com/topic/dominos-pizza

Pathak, S. (2015), Domino’s is now “an e-commerce company that sells pizza”. Digiday. Retrieved from: http://digiday.com/brands/dominos-now-e-commerce-company-sells-pizza/

Ryall, J. (2011), Domino’s plans pizza on the Moon. The Telegraph News. Retrieved from: http://www.telegraph.co.uk/news/science/space/8734456/Dominos-plans-pizza-on-the-Moon.html

Sachdeva, S. (2016), New Zealand could become first country to use Domino’s pizza delivery robot. Stuff News. Retrieved from: http://www.stuff.co.nz/business/78022236/new-zealand-could-become-first-country-to-use-pizza-delivery-robot

Wasserman, T. (2011), Domino’s Pizza Runs Unfiltered Customer Comments on Times Square Billboard. Mashable Australia. Retrieved from: http://mashable.com/2011/07/25/dominos-comments-times-square/#UboIXbbKmkqY

York, B.E. (2009), What Domino’s did right and wrong. ADAGE. Retrieved from: http://adage.com/article/news/crisis-pr-assessing-domino-s-reaction-youtube-hubub/136086/