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History of Domino’s
Domino’s Pizza was brought to America by Italian immigrants in the 1800’s and it grew in popularity as a pie of choice and rose to popularity hence necessitating the nee for Domino’s chain to be created. The company’s business model was its reliance on delivery (which was set at 30 minutes) and a focus on efficient and streamlined processes of taking pizza orders, preparing them and delivering them to consumers. With Dominos success on its pizza delivery time the company it appeared as though the company substituted quality service for quality product hence the decline in Dominos’ shares.
With the success of Dominos’, customers where also demanding more from their pizza maker, they wanted better tasting pizza that had flavour. From the material provided, it is evident that Dominos became comfortable in their position to recognized as the leader in Pizza delivery and did not carry out any market research in other to find ways to improve their product and guarantee customer satisfaction.
Marketing research generally comprises of a product research in terms of market need that a business wants to satisfy as well as the size and characteristics of the market (new or old) by identifying consumer preferences and buying behavior.
Another reason for the Dominos Crisis was that the 30 minutes’ delivery time was not uniform for every Dominos’ outlet. Depending on how big a Dominos shop service area was the 30 minutes’ delivery time worked perfectly, but where the area is large and considering other factors the timing was different.
Attribute analysis is the process of breaking down a problem, idea, or thing into component parts and then thinking about the attributes of the problem rather than the thing itself by taking into consideration the crucial aspects of a company’s business model and turning it around (IAF, 2009). What this means is that with rising customer dissatisfaction which is evident not only through surveys, feedbacks and word of mouth. There was the need for the ”Pizza turnaround” programme because as at 2009 Domino’s quarter revenue had dropped by 6.5% and as such there was the need for a massive overhaul of the companies financial and operational parameters. What was considered in this regard is how ”great pizza” could be made while still maintaining the unique selling point which was the timing (30 minutes’ delivery time).
Attribute analysis was used by simply identifying key problems that had been collated through customers’ feedback. This feedback was put together and to ensure customer loyalty product was improved and this improvement saw a 65% increase in repeat purchase by customers (Worldwide 2017).
By meeting the challenges head on the turn around team did a road show with their franchises introducing the new and improved pizza as well as carried out blind test road show. From the road show a number of customers preferred the new taste.
The success of any new initiative by an organization is highly dependant on the involvement of every member of the team directly involved in the product. Attribute analysis helped Dominos identify specific areas that needed improvement and then the next step was to inform senior management team of the negative feedback they had received from customers and management team saw the need to immediately turn around their pizza operations.
In general, this case points to the fact that for any brand to successfully transform itself to one capable of competing for customers with the competition, creating a strong position for future growth is reliant on customer feedback, continued effort to improve product offering and in taking feedbacks and customer suggestions seriously.
Concept testing approaches in my opinion created an opportunity for customers to be aware of the various efforts been made by Dominos’ to satisfy them through new and improved products. This no doubt helped Dominos’ grow and position itself favourably in the hearts of its customers.
Australian food News, February 2015. Domino’s attributes record profits to innovations and new initiatives. Retrieved from: http://www.ausfoodnews.com.au/2015/02/11/dominos-attributes-record-profits-to-innovations-and-new-initiatives.html. Accessed 13 January 2017.
IAF methods database. October 2009. Attribute analysis. Retrieved from: http://www.iaf-methods.org/node/11163. Accessed 13 January 2017.
Worldwide.com. February 2017. How Domino’s repositioned itself from pizza delivery to mealtime solution. Retrieved from: http://iris-worldwide.com/news/how-dominos-repositioned-itself-from-pizza-delivery-to-mealtime-solution/. Accessed 13 January 2017.
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