The History and Achievements of Dominos Pizza - Term Paper Example

Term Paper Project Domino’s Pizza Marketing Strategist The paper discusses the history and achievements of Domino’s Pizza. A detailed plan for Domino’s Pizza to enter into a new market in order to effectively commence its business has been widely considered. Furthermore, the paper also highlights the trends of the selected market along with the strategies considered by the company. Table of Contents Abstract 2 Table of Contents 3 Advertisement Layout Sheet 5 Introduction 8 History and Origin of Domino’s Pizza 8 Demographic and Geographic Factors of Argentina 9 Internal and External Environmental Factors of Argentina 9 The Influence of Market Analysis on the Market of Argentina and Value Creation for Domino’s Pizza 12 Domino’s Pizza’s Practices and Products 13 Recommendations 14 Conclusion 15 References 16 Bibliography 17 Advertisement Layout Sheet Source: (Papworth, 2012) Introduction The trends of globalization is believed to have led to the increase in demand for fast food in the market and as a result of which new and existing pizza manufacturers have been entering or expanding their operations in the markets globally. It needs to be mentioned in this regard that the aspect of globalization also influenced Domino’s Pizza owing to which the company has been making constant attempts to enter or expand their operations in the new global markets. It was found in this respect that Domino’s intended to enter the markets of Argentina with their available or innovative fast foods such as pizza and drinks among others in order to realize their expansion plans. History and Origin of Domino’s Pizza Domino’s Pizza was introduced in the year 1960 and started operating in Michigan, United States by serving fast foods and deserts among others. Gradually, after capturing the market of US, the company started to expand its business overseas along with encompassing all the states of US. Presently, the company is known to be operating in 70 countries with 10000 stores. Domino’s Pizza is considered to be amongst the largest chains of pizza restaurants currently owing to its global presence. Moreover, in the year 1998, the owner of Domino’s Pizza sold 93% of the company to Bain Capital Inc and in 2004, it transformed into a public company (Domino’s Pizza, 2012). Domino’s introduced innovative ideas with regard to their food products as well as services for the global market in order to satisfy the customers’ demands along with expanding the business operations. A few of the innovative food items introduced by the company can be identified as new inspired pizza, Domino’s heat wave, a desert food named cinna stix, cheesy dots and classic cheese burger among others (Domino’s Pizza, 2012). It was recently found that Domino’s Pizza intends to enter the market of Argentina in order to fulfill its expansion plans. Demographic and Geographic Factors of Argentina Argentina is a European country and is learnt to be surrounded by Brazil, Uruguay, Paraguay and Chile along with Bolivia. Argentina includes 5 cities namely Buenos Aires, Cordoba, Rosario, Mendoza along with La Plata. The total population of Argentina is stated to be 37 million as per 2000 year census. The form of Argentina’s government can be identified as Federal Republic with Bicameral Legislative Power. The prevailing religion of Argentina is Roman Catholic and the languages spoken are Spanish along with other native tongues (Argentina Xplora, 2001). Internal and External Environmental Factors of Argentina The market trends of Argentina’s fast food sector reveals demands do exist in the market which marks and justifies the presence of certain companies such as KFC, McDonalds and others in the market. These stated companies have also been found to expand their business operations throughout the various markets of Argentina (Euromonitor, 2012). The rising demand for fast food in Argentina can be ascertained from the amount of fast food stores present in the country and also from the expansion plans of various countries. McDonald has been found to be successfully operating in the markets of Argentina which facilitated it to expand its business with 195 outlets in the market and made it a leading company in the fast food industry of the country in 2011 (Balbi, & Joseph, 2010). Furthermore, the total number of outlets and stores of fast food can be identified from the presented diagram below: Source: (Balbi, & Joseph, 2010) Demographic Characteristics Source: (Soong, 2000) The internal and external environment factors of Argentina market reveal that the market shares a favorable relationship with the US market and government as a result of which Argentina is mostly found to deal with the US market and companies. The US market is believed to help Argentina with regard to trimming down their unemployment issues along with developing their economic condition. Furthermore, it was also observed that more than 500 companies from the US operate in Argentina and employs over 155000 people of Argentina. Moreover, the country is also known to invite other companies for the purpose of expanding and establishing their business functions in the markets of Argentina (USA Gov, 2012). The opportunities prevailing in the market of Argentina highlights the fact that the concerned market influences the US companies to collaborate with the US Embassy present in the country in order to enjoy the benefits provided by the related market. It also helps the companies to frame effective strategies to carry out its future operations in order to ensure maximization of profits along with satisfaction of the market demands. Additionally, Argentina is also learnt to provide support to the US companies which encounters certain obstacles. The US Embassy present in Argentina helps the companies of the US by offering them loan, insurance and finding them investors among others (USA Gov, 2012). The challenges that might be witnessed by the companies in the course of their business operations in the country would entail the slow growth rate of Argentina’s economic condition. The rate of inflation prevailing in the markets of Argentina is likely to adversely affect the profits earned by the companies. The restrictions in relation to foreign exchanges in the market led by the Federal Government of Argentina at the end of 2011 and beginning of 2012 can also affect the profit unfavorably as well as de-motivate the upcoming companies from entering the markets of Argentina. Furthermore, the limitations with regard to the import factors imposed by the government can also prove to be a disadvantage for the companies while expanding their operations and in the process of their production due to slower delivery of raw materials from the other countries (USA Gov, 2012). The Influence of Market Analysis on the Market of Argentina and Value Creation for Domino’s Pizza According to the lifestyle of Argentina and consumption pattern of the food ingredients, it can be stated that Argentina includes a population which is non- vegetarian in nature. Generally, the people of Argentina have been observed to display a high preference for pizza, tea & coffee, pasta and other kinds of fast foods along with cakes and other dishes of fish as well as meat. With due consideration to this aspect, it can be stated that Domino’s Pizza can help the population of Argentina to satisfy the demands related to their choice of foods efficiently along with providing them innovative and quality foods. This is owing to the fact that the primary objective of the company i.e. Domino’s Pizza relates to the production of fast foods and deserts. The products served by Domino’s Pizza are supposed to be strongly related with the foods consumed by the population of Argentina which includes non-vegetarian pizza, desert, pasta, cheese, cake as well as soft and hot drinks such as hot and cold coffee, tea and Coca Cola among others. Additionally, the presence of Domino’s Pizza in Argentina’s market can help the local people to enhance their livelihood by offering employment facilities which as a result would also help to enhance the economic condition of Argentina in the global market (Advameg Inc., 2012). In relation to the external and internal environment of the intended market along with the demanded food, it can be well deciphered that Domino’s Pizza can enjoy certain benefits regularly as well as occasionally while operating in the markets of Argentina. The most imperative benefit which can be enjoyed by Domino’s Pizza in Argentina’s market would entail successful operations in the market along with easy attainment of the market share by serving quality and extraordinary foods according to the demands of Argentina’s population. The friendly behavior of the people of Argentina can also help Domino’s Pizza to ensure loyalty in the market along with commanding a leading position in the market. With the help of the rising demand for the food products and preferences of the people along with loyalty can help Domino’s Pizza to earn huge profits from the market. During certain occasions such as Lent, people of Argentina are known to increasingly demand spicy vegetarian food items along with chocolate flavor cakes. In relation to this particular festive situation, Domino’s Pizza can ensure higher profits by serving spicy food products and maintaining a variety of chocolate flavor cakes according to the demand. The loyal consumers of Domino’s Pizza would facilitate it to increase its number of stores in the different markets of Argentina. Domino’s Pizza’s Practices and Products While entering the markets of Argentina, Domino’s Pizza needs to undertake certain initiatives in order to perform better in the new market by satisfying or meeting the demands of the market efficiently along with maximizing the profits. The strategies should include an appropriate analysis of Argentina’s market initially which would help Domino’s Pizza to identify the primary requirements arising in the market regularly or occasionally/seasonally. In accordance with the analysis, Domino’s Pizza should plan to introduce innovative products for the new market according to the taste and preference of the concerned population. Furthermore, in order to establish a strong connection and to comprehend the taste and preference of the consumers, Domino’s Pizza should recruit certain employees from the new or local market. With the help of the above mentioned strategies, both Domino’s and Argentina can enjoy certain benefits. In addition, the expansion plans of the company would prove beneficial as the existing employees would be motivated to perform better in order to gain an understanding about the new culture and produce new dishes to attract the people. The foods introduced in Argentina can also be launched in the other related markets which would help to lure new consumers in the other global markets and would assist Domino’s Pizza to maximize their profit percentage. Moreover, with the presence of Domino’s Pizza in the market, the people of Argentina would gain the chance of tasting quality and innovative products. Additionally, the introduction of Domino’s Pizza in the market will also prove to be highly advantageous as it would bring in fresh employment opportunities. The huge turnover of Domino’s Pizza will also greatly aid to develop the economic condition of Argentina. Recommendations In accordance with the market scenario and Domino’s Pizza’s performance, it can be stated that in order to enjoy the opportunities provided by Argentina as well as to improve the profit percentage, Domino’s Pizza would need to perform or function effectively. In order to perform better in the market, certain strategies can be recommended for Domino’s Pizza which would include designing its production unit in such a way and introducing certain food products for which the needed raw materials for manufacturing pizza could be easily accessed from the market of Argentina. Furthermore, Domino’s Pizza should also introduce innovative dishes according to the tastes and preferences of Argentina’s population. Additionally, in order to win the loyalty of the consumers and in establishing its presence along with marketing its products, Domino’s Pizza should recruit employees from the local market of Argentina. Contextually, apart from offering spicy pizza dishes or preparations, the company should also concentrate on offering healthy food products or items. While operating in the new market, Domino’s Pizza should also reduce or rather ascertain their product prices after conducting a proper analysis of its competitor present in the market. Domino’s Pizza should also invest a certain amount of fund for conducting social activities in Argentina which can include opening schools and healthcare centers among others (Umaraniya, 2007). Conclusion With the glorious history and the accomplishments, Domino’s Pizza is found to be continuing its expansion operations in those places which still lack its presence. Domino’s Pizza is known to have around10000 global stores presently and commands their presence in almost 70 countries. Domino’s Pizza has been known to involve a period of 50 years for the purpose of establishing its market presence and accomplishing its primary objectives along with its mission and vision. It was learnt that Domino’s intended to enter into a new market which was identified to be Argentina in order to expand its operations. To a certain extent, the selection of the market is expected to help Domino’s Pizza achieve its objectives suitably because Argentina provides immense facilities and opportunities to the foreign companies for entering the market. However, apart from the opportunities certain challenges are also found to be present in the market which can adversely affect the company’s profit. References Argentina Xplora. (2001). Geographic facts. Retrieved from http://www.argentinaxplora.com/english/activ/geogra/geogra.htm Advameg Inc. (2012). Argentina. Retrieved from http://www.foodbycountry.com/Algeria-to-France/Argentina.html#b Balbi, M. J. & Joseph, K. (2010). Argentina: Retail food sector. Global Agricultural Information Network. Domino’s Pizza. (2012). About Dominos Pizza. Retrieved from http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/About+Dominos/History/ Euromonitor. (2012). Fast food in Argentina. Retrieved from http://www.euromonitor.com/fast-food-in-argentina/report Papworth, A. (2012). Mayor grabs pizza the action as Domino’s. Retrieved from http://www.cambstimes.co.uk/cambridgeshire-life/mini_gallery_mayor_grabs_pizza_the_action_as_domino_s_opens_in_march_1_1465552 Soong, R. (2000). Fast food in Argentina. Retrieved from http://www.zonalatina.com/Zldata111.htm USA Gov. (2012). Doing business in Argentina. Retrieved from http://export.gov/argentina/doingbusinessinargentina/index.asp#P14_4658 Umaraniya, G. (2007). Marketing strategy of Dominos Pizza. Retrieved from http://www.authorstream.com/Presentation/umaraniya_07-1391881-marketing-strategy-of-domino-39-pizza/ Bibliography Crafts, N. & Venables, A. (2003). Globalization in history: A geographical perspective. University of Chicago Press, pp. 323-369. Read More