Video Report 1 Lorin Gdula June 3, 2010 1. Dominos started with sticking with core strategy in the US. But when trying to move into different countries, they realized that it was not as easy as they thought to just move into a culture and expect people to change for them. They found out the hard way that this was not the solution. So they decided to mend themselves into the culture. Dominos ensures that its corporate values and strategies are used by all franchises by operating their business consistently throughout the world. They start with the front appearance.
All Dominos has a similar front exterior and similar on the inside. A customer would see that the operations are the same internationally as the operations in the Unites States. They kept their operations simple around the world, which ensures that their operations will stay the same to each franchise. 2. Marketing Mix adjustments are always needed when trying to keep up with customer changes. Opportunity offers prospects for improving the situation. Changes in consumers’ tastes have increased the demand for places, like Dominos, to keep up with its changing customers.
One marketing mix, which was used as an example in the video, was when Dominos tried to take the US slogan and make it work in the UK. “One call does it all,” does not actually mean that in the UK. Call, in the UK, means to make a house visit. So by learning from example, they found out that their marketing mix elements has to vary depending on what country they were in. Another example of a marketing mix element that needed some change was when they were opening their franchise in Japan. Granted all the pizzas look the same but some of the toppings are not accepted in other cultures.
In Japan, they did not know what pepperoni was. They thought it was a type of pepper, and when they found out it was a type of meat; they were a little discouraged because they do not really eat meat. After a few marketing elements that were changed, 20 years later pepperoni became a household name in Japan and is the number one topping. Each marketing mix element varied for each country. Prices would stay consistent, but would obviously change depending on the currency. The franchise itself would be similar in each country where as the exterior appearance would stay the same and the operations inside would be the same.
Promotion is also going to vary depending on location of the franchise. The basic ingredients will be the same, however, the final outcome will be different. When looking at the product, Dominos focused on their customers and the creation and the delivery of the product. Servicing the customers’ needs throughout the process is the most important marketing mix. The company responded to each countries local wants and needs, and they succeeded. They developed appropriate marketing elements for each local need and varied those elements towards each franchise. 3.
When Dominos Pizza entered Mexico, the pizza product was positioned at the high end, where as it was considered to be a middle class to higher end type of food. Although, when the economy collapsed, the expensive price for pizza was not going to work well in that economy anymore. When this happened, the price for pizza was drastically lowered and they started to advertise, and pinpointed that pizza was a great meal for the entire family. Since Mexico was facing the economic downfall, Dominos had to change their ways or their business was going to fall like the economy.
So they advertised more and decreased prices and just these little changes made them so much more money than they imagined that today Domino’s is the number one restaurant chain in Mexico. The strategies that were used were geared to their specific market needs. They found their target markets and places. They placed facilities in high traffic areas. Working with other franchise owners also helped Dominos in that they say how other franchises worked and ran and they were able to create a plan that would work for them.