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Chapter 10: Marketing at Domino's
Marketing at
Domino’s
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Chapter objectives
In this chapter, students will:
investigate the role of marketing at Domino’s
evaluate the factors influencing customer choice in relation to Domino’s
examine Domino’s marketing strategies.
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10.1 Role of marketing
In Chapters 5, 15 and 21 of this textbook, the roles
and interdependence of marketing with other key
business functions – operations, finance and human
resources – are examined in relation to Domino’s.
Operations
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Domino's has achieved a market share of 50 per
cent of the fast service pizza market. This has been
supported by a diverse product range that includes
traditional pizzas, a healthy choice range, chicken
wings and desserts. Business growth is expected to
increase 35 per cent over the next year.
The marketing function at Domino’s is
spearheaded by Group Chief Marketing Officer Allan
Collins, who joined Domino’s as Chief Marketing
Officer in 2007 and is now the major marketing
strategist for Domino’s in Australia, New Zealand,
Belgium, France, Netherlands, Japan and Germany.
In 2013, CEO Magazine recognised his achievements
with its Marketing Executive of the Year award.
Within Australia, there are five divisions reporting
to the National Marketing Director: Promotions,
Communications, Digital, Product Development, and
Product and Sales Analysis.
Interdependence with other business
functions
Strategic role of marketing
Profit is the key goal for all businesses. A business
aims to deliver reliable and enhanced value that
outperforms its competitors. By analysing and
implementing growth opportunities, the business can
establish strategies for advancement and evaluation
of the competitive landscape. Strategic marketing
enables a company to successfully distinguish itself
from the competition.
Much of the recent success of the Domino's
brand can be attributed to the company's marketing
department, which is first rate. In 2016, Domino’s
increased its profit by more than 45 per cent, with
same-store sales growth of 14.8 per cent.
It is thought that one contributing factor to
Domino's growth was the decline of Eagle Boys Pizza.
An IBISWorld report noted that one of the concerns
raised by Eagle Boys Pizza franchisees was that their
head office had not provided enough marketing
support, which made it difficult for them to compete
with the larger chains. By contrast, the Domino’s
marketing team is a key element in the ongoing
support its franchisees receive.
Other drivers for the increase in profits include
strong pricing strategies, digital innovation such as the
interactive Pizza Mogul platform and the release of
new pizza toppings including pulled beef and chicken.
There is a strong interdependence between
marketing and operations due to the fact that the
marketing message or the ‘promise’ is fulfilled by
operations.
Finance
Domino’s remarkable growth over the past couple
of years has been largely driven by organic growth,
acquisitions and first-to-market innovation. Part of
its financial success can be attributed to the launch
of a range of disruptive digital initiatives such as
the market-first Project 3-10, 15/20 Minute Service
Guarantees, On-Time Cooking and Domino’s Robotic
Unit (DRU). These all contributed towards a strong
Australia/New Zealand online sales growth of 33 per
cent year-on-year.
Human resources
Domino’s understands that its staff are integral to
the success of the business. Its mantra is ‘People
Powered Pizza’, and it knows that it couldn’t
be as successful as it is without the hard work
and passion of its staff, from the in-store team
members on the make line to the delivery experts
out on the road.
Source 10.1 All staff are integral to the success of the
Domino’s business.
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Chapter 10: Marketing at Domino's
Franchisees
has recognised that consumers are seeking healthier
choices and now seafood pizzas starting at $16.90.
Types of markets
It is the consumer market that generates the
profit for pizza-based businesses. Thus, Domino’s
marketing is targeted at the mass consumer market.
Age, gender, income level, location and occupation
are not key target areas for Domino’s. This has been
a considerable change for the business. When it first
entered the market, its low-cost pricing strategy was
aimed at customers seeking to take advantage of
savings. However, this didn’t give Domino’s any point
of difference with other fast-food and pizza outlets.
Once the ‘low-price’ offering was not a priority, and
the potential of technology to improve the quality and
service of the product was realised, the Domino’s
business achieved incredible sales growth.
Domino’s has diversified into gourmet-style pizzas
along with its traditional pizzas, thus broadening the
scope of its market. It offers all types of consumers a
choice of products and variety. For example, the Chef’s
Best range of restaurant-quality pizzas was introduced
as a result of customer feedback.
Domino’s use of social media as a marketing plat­
form is designed to engage with members of the techsavvy Generations Y and Z. However, this by no means
excludes other age groups, and Domino’s ensures
there are still traditional options available for less
technologically adept members of its consumer base.
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As a franchise business, Domino’s offers support
to its franchisees in a range of areas, including
marketing.
It has a national Adfund to which all franchisees
contribute. These contributions go towards the
following areas:
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Communications and PR
• Generating a positive local and National
presence
• Public relations support to Franchisees
Online digital
• Domino’s website
• Online ordering
• E-recruitment website
• Search engine marketing and search
engine optimisation
• Social media development and
management
• Social media communication: Facebook,
YouTube, Twitter, Google Plus, Instagram
Advertising
• TV advertising
• Outdoor advertising e.g. Billboards, Bus
Signage, Posters etc.
• Radio advertising
Production and print
• POS (point of sale) material
• Local store marketing (LSM) production,
print and distributions
• Box topper flyers – production and print
On a local level, franchisees are expected to
undertake additional local marketing including
doughraisers, sponsorship and supplementary
box topper flyer distribution.
Production, selling and marketing
approaches
Domino’s has made effective use of the marketing
approach. This is evident in its outstanding financial
results.
Its products and pricing reflect the interests of its
customer base. Pizzas are diverse and encompass
many flavours. Standard pizzas start at $13.90 and
have wide appeal to all types of consumers. Domino’s
10.2 Influences on
marketing
Factors influencing consumer choice
Motivation
The key motivation for people ordering takeaway
and home-delivery pizza is convenience. Hence, it is
in Domino’s interest to make the ordering process
as streamlined and straightforward as possible.
In September 2016 Domino’s launched Zero Click
ordering, which enables regular customers to open
the Domino’s app, and after a 10-second countdown
it will place their favourite order, or one of their four
most recent orders.
Domino’s marketing also emphasises the range
of options available, so consumers have choice along
with convenience.
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Psychological
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Domino’s is perceived to be an entry level pizza
store, although the advances it has made through
technology are impressive. Consumers are aware
when purchasing Domino’s pizzas that they are
buying a standard product that is fresh, tasty and
always reliable. It is also very price competitive.
Its home delivery service adds to the convenience.
Domino’s position in the market lacks the ability to
compete with dine-in stores. Domino’s is perceived to
be a delivery-based store.
has a register that names and shames offenders that
have breached food standards and have resulted in
public health issues. It is vital for Domino’s licensees
to comply with regulations, as a notice on one store
can tarnish the consumer perception of the brand.
Recent concerns about obesity have led to
calls for governments to take actions such as taxing
unhealthy foods, banning junk food advertising and
preventing fast-food outlets from operating in school
areas. Although the Domino’s range includes healthy
alternatives, it would still be affected to some extent
by any government activity in this area.
Sociocultural
Domino’s customer base covers all types of
consumers, regardless of age, gender and culture.
In an attempt to cater to areas of Sydney with
a large Islamic population, Domino’s ran a trial of
gaining halal certification for six stores. There was not
a lot of consumer interest in this, so it was cut back to
three stores – Auburn, Bankstown and Lakemba – but
in 2015 these, too, dropped the halal certification.
Economic
Domino’s is perceived to be a value-for-money
business and as a result it has appeal across
a range of income groups. During an economic
downturn, it is likely that many people will still
purchase pizza and this suggests that Domino's may
become much more appealing to consumers than
high-end takeaway stores.
Consumer laws
The Australian Consumer Law requires businesses to
honour implied terms of a transaction, in this case
the delivery of a pizza.
Domino’s policy is that if a customer is not
completely satisfied, Domino’s will replace or refund
the order.
However, sometimes the system falls down. In
October 2016, a New South Wales man was awarded
$1200 by a court to compensate for an order he
placed with Domino’s in April 2015 that failed to deliver.
The plaintiff stated that after a year of trying to get a
resolution with respect to a refund, he decided to file a
claim for breach of contract. Domino’s did not appear
in court, but advised a journalist that the man had
been offered pizza vouchers at the time, but that was
apparently not sufficient for him. Domino's paid the
compensation, apologised to the customer and pro­vided
him with further pizzas and vouchers. The customer
complaints process was also reviewed and changed.
Ethical
Products that may damage health
Source 10.2 Domino’s is perceived to be a value-for-money business.
Government
Local government licensing regulations require that
all business involved in food preparation and service
must have clean, hygienic premises and safe foodhandling practices to prevent the spread of disease
and food poisoning. The NSW Food Authority now
Domino’s operates against a backdrop of obesity
concerns about the takeaway and fast-food industry.
To counter this, the calorie intake for each product
is clearly labelled and obvious to the consumer. The
business also offers a range of baked chicken and
seafood pizzas.
In November 2016, consumer association Choice
published a table comparing the kilojoule count
of 149 fast-food pizzas from five different chains,
including 26 Domino’s pizzas. When ordered from
lowest to highest kilojoule count, four Domino’s pizzas
were in the top 20 (a section dominated by nowdefunct Eagle Boys), and the entire bottom half of the
list contained only two Domino’s offerings.
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Chapter 10: Marketing at Domino's
Engaging in fair competition
and other competitors began to take market share.
As at mid-2016, Pizza Hut had 10.7 per cent of the
market. However, in November 2016 it acquired Eagle
Boys Pizza, which may put it in a stronger position
moving forward.
Crust Gourmet Pizza is a relatively small but
significant player in the market – launching in 2001,
it was the business that identified and capitalised on
the gap in the gourmet pizza market. In 2012 both
Crust and another business, Pizza Capers, were taken
over by the Retail Food Group, which owns other food
chains including Donut King and Michel’s Patisserie.
As at mid-2016, this group had 4 per cent of the
pizza market.
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Like many takeaway food companies Domino’s does
engage in price wars with its competitors, but there
have been no suggestions that this competition has
been unfair. Nevertheless, pricing wars were one of the
factors that led to the demise of Eagle Boys Pizza.
However, as noted above, Domino’s has now
chosen to compete less on price and more by
using innovation as a point of difference from its
competitors. Customers are often willing to pay more
for a perceived premium product, or for guaranteed
faster delivery.
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10.3 Marketing process
Situational analysis
SWOT
Source 10.3 shows a SWOT analysis for Domino’s.
Product life cycle
In Australia, Domino’s pizzas are in the maturity
stage of the product life cycle. Consumers now
have considerable choice as to where and how to
purchase pizza. As result, the Domino’s marketing
strategy needs to establish a competitive advantage
by differentiating Domino’s from its competitors.
Domino’s has a strategy of technological innovation
and range expansion, while still maintaining its core
pizza product.
Competitor analysis
Domino’s holds 25 per cent of the takeaway and
delivery pizza market in Australia – more than any
other company in the market.
Pizza Hut is the largest pizza chain in the world
and dominated in Australia through the 1990s.
However, in the 2000s its growth slowed as Domino’s
Market research
Market research ensures that Domino’s remains
focused on offering customers an improved
experience and stores with improved efficiencies.
It prides itself on being first to market when it
comes to digital technology and innovation. In the
2016 financial year, the Australian Development
Digital team delivered a record number of more than
80 digital projects and updates across the Group.
Having seen record online growth for each market,
Domino’s has pushed the boundaries of what can be
achieved in this area.
Establishing market objectives
As with most businesses, Domino’s three general
marketing objectives are to increase market share,
expand into new geographic markets and expand the
product range.
Identifying target markets
Domino’s uses a mass market approach. Its pricing
and diverse range of pizzas means the appeal of the
business extends to all types of consumers across
age, gender and income.
Strengths
Weaknesses
• Reputation
• Perceived by consumers to be low-cost pizza
• Innovative
• Ability to respond to changing consumer needs
Opportunities
Threats
• Online delivery tracking
• Obesity issues
• International expansion across Europe
• New low-cost competitors
• New non-pizza menu items
Source 10.3 SWOT analysis for Domino’s
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Implementing, monitoring and
controlling
Domino’s Australian marketing campaigns are
implemented, monitored and controlled by the
central marketing team.
Franchisees receive support in running their own
local marketing, in addition to receiving the benefits
of the larger, national campaigns.
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However, this approach does allow for the
development of products specific to targeted groups
within the larger market. The ‘Melbourne range’, for
example, includes four new and improved pizzas,
designed specifically for the people of Victoria. After
completing extensive research of the Melbourne
foodie culture, Domino’s Global Development Chef
Stefaan Codron and his team developed the range,
which includes The Lot, Chicken Tandoori, Veggie
Supreme and Capriciosa.
With seafood being a staple of Australian diets, the
team also brought back the popular prawn pizza range,
which is very popular in Australia’s summer season.
<Insert 1005P>
10.4 Marketing strategies
Market segmentation
A 2016 IBISWorld report on Australian pizza
restaurants and takeaway found that the major
market segmentation is households, broken down by
age group (see Source 10.5).
20.3%
40.9%
People aged
55 and over
People aged
35 to 54
38.8%
People aged
15 to 34
Source 10.4 The prawn pizza range is very popular in
Australia’s summer season.
Source 10.5 Major market segmentation (2016–17).
Source: IBISWorld.
Developing marketing strategies
Domino’s aims to cover all segments of the market.
The report also suggests there are four key product
segments: traditional pizzas, gourmet and speciality
pizzas, pizza sides (e.g. chicken wings) and other
products (e.g. drinks and desserts) (see Source 10.6).
Domino’s has embraced the global shift in power
from corporations to the consumer by including social
media as a key component of its marketing strategy.
Domino’s describes this trend as ‘me-tailing’; that
is, the fusion of social media and e-commerce. An
example of this is the interactive Pizza Mogul platform,
which lets people design their own pizzas, share them
on social media, and earn money for every pizza sold.
Pizza Mogul integrates with social media platforms as
well as Domino’s existing online channels, and each
week top-selling Moguls are ranked publicly and a
variety of bonuses are awarded.
Pizza Mogul is recognised as a new way of
marketing in which the user-generated content belongs
to Domino’s and thus can be shared freely to the wider
market. Domino’s CEO Don Meij says, ‘This is, in my
opinion, the future of retailing and I am so proud we
have dreamt it and created it here at Domino’s’.
16.4%
Other products
42.7%
Traditional
pizzas
18.3%
Pizza sides
22.6%
Gourmet and speciality pizzas
Source 10.6 Products and services segmentation
(2016–17). Source: IBISWorld.
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Chapter 10: Marketing at Domino's
and there were also new side dishes and desserts,
such as Korean Spiced Sticky Wings, Mac n Cheese
Croquettes, Caramel Fudge Pie, Cookie Brownie and
Triple Choc.
Domino’s is working towards creating a menu that
is free of artificial preservatives, colours and flavours.
This has been a major initiative and something it
is aware cannot be achieved overnight – it will take
commitment from the entire team as well as Domino’s
suppliers and business partners. A number of
products are already artificial preservative, colour and
flavour free, including chicken sides and all desserts.
Domino’s also offers a gluten-free option, which
allows sufferers of coeliac disease to enjoy pizza.
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Traditional pizzas once represented 90 per cent of
the market, but in recent years the speciality segment
has grown significantly. Domino’s has been expanding
its product range to take advantage of this greater
interest in healthy eating and gourmet products, as
well as offering a greater variety of pizza sides and
other products such as desserts.
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Product
Domino’s is well recognised in the marketplace for
its pizza products. However, it is important for the
product line to continue to evolve and stay ahead of
the market.
Goods and services
Domino’s has moved beyond a set range of standard,
low-cost pizza offerings.
Goods
The Chef’s Best restaurant-quality range features
a number of food product innovations, such as
premium ingredients, quality packaging and unique
post bake sauces. The range includes the speciality
six slice rectangle-shaped base loaded with premium
toppings including pulled beef, seasoned chicken,
camembert cheese and fresh vegetables. The
inspiration comes from street-food flavours across
the world.
Services
The Domino’s ordering system allows customers to
design their own pizza from the range of toppings
available.
The Pizza Mogul platform takes this further: the
customer-designed pizza can be added to the Domino’s
list, and the designer earns money on every order.
In November 2016, following a survey of 6000
customers, Domino’s launched a new gift idea,
InstaGift, for the holiday season. These are digital gift
cards that can be used for any purchase from the
Domino’s menu. Every stage of using an InstaGift is
online, from purchase to redemption, so customers
don’t need to worry about losing a gift card they have
received.
Branding
Domino’s is easily identifiable through its red, sky
blue and white logo. The logo has evolved through
the company’s history, but has always retained the
same key features:
Source 10.7 A Chef’s Best chicken and camembert pizza
In September 2016, Domino’s announced ‘Taste
the Colour’, its biggest menu launch since 2009. The
emphasis was on fresh, tasty ingredients to move
away from the homogenised flavours of some of its
competitors. New pizzas included Lamb Tzatziki, BBQ
Lamb and Bacon and Creamy Chicken Carbonara,
Source 10.8 The Domino’s logo
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• the word ‘Domino’s’
• a domino tile containing two spots on one side,
and one on the other. These three spots represent
the original three stores.
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Originally the logo also contained the word 'Pizza',
but this was dropped when the company rebranded to
emphasise that it offered 'more than just pizza'.
The logo is used outside and within the stores,
as well as on staff uniforms and delivery vehicles. A
consumer seeing a Domino’s pizza being delivered in
their neighbourhood may be prompted to place an
order themselves.
extend their delivery range. The pizza is cut into slices
after being placed in the box.
When pizza is being home delivered, rather than
collected from the store, the delivery staff use heatinsulating bags to carry the pizzas from the store
to the customer. Again, this is an industry-standard
approach, to ensure the pizza is as fresh as possible
when the customer opens the box. Hot cell bag
technology has allowed delivery drivers to deliver the
pizza almost as hot as it was when it came out of the
oven.
Domino’s branding appears on both the box and
the heat-insulating bag.
Packaging The key packaging feature for takeaway pizza is
the box.
The industry standard pizza box is made of flatpacked corrugated cardboard, which can be quickly
folded into shape in-store, and with vents that
allow moisture to escape, preventing the pizza from
becoming soggy. In fact, it is commonly believed that
these boxes were originally developed by Domino’s in
the 1960s. Certainly, Domino’s in the US began largescale use of these boxes, which enabled stores to
Price
Pricing strategies
Domino’s allows all types of consumers to enter the
market. It offers a range of pizzas at different prices
allowing for entry into the market at different points,
with the standard pizzas being priced lower than the
gourmet pizzas.
Its products and pricing reflect the interests of its
customer base. Pizzas are diverse and encompass
many flavours. Standard pizzas start at $13.90 and
have wide appeal to all types of consumers. Domino’s
has recognised that consumers are seeking healthier
choices and now offers chicken and seafood pizzas
starting at $16.90.
Price and quality interaction
Domino’s pricing is similar to that of its competitors.
However, the business lacks the prestige of dinein Italian/pizza restaurants and the ability to
offer promotional pizzas at $4.95 may create the
impression that the quality of inputs is lacking.
On the other hand, the price differentiation between
standard and gourmet pizzas suggests to consumers
that some pizzas are of higher quality than others.
Promotion
Advertising
Advertising is a key part of the marketing mix for
Domino’s. Advertisements focus on three key areas:
• pricing and value for money
• quick delivery and the freshness of the product
• the new range of products the business is selling.
Source 10.9 Hot cell bag technology allows drivers to deliver pizzas almost as hot as when
they came out of the oven.
Advertisements normally feature from 5 p.m.
onwards, suggesting the idea of having pizza for
dinner.
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Sales promotions
to ensure pick-up customers always receive fresher,
hotter pizzas straight from the oven. Customers using
this service let the mobile app know how they are
getting to the store (car, bike, foot) and this will help
define the ‘Cook Zone’ – a virtual area around the
store. The app will notify the store when the customer
has entered the Cook Zone and the store will start
cooking the pizza once they receive this notification.
Whenever technology enables an improvement to
the customer experience, the marketing team make
sure the message is broadcast.
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Domino’s offers customers package prices that
may include breads, drinks and desserts. This
emphasises the concept of value for money and
reinforces the appeal that the business has across
all income groups. Domino’s is also featured on
sales vouchers from supermarket receipts offering
discount pizzas.
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The communication process
To widen the communication net, and encourage
people to talk about its products, Domino’s has a
presence on a wide range of social network sites:
• Facebook
• Twitter
• Google+
People
Many of the people working in Domino’s stores are
customer-facing, so good customer relations are an
important part of job descriptions.
• YouTube
Processes
• Snapchat
Ordering
• Instagram.
Domino’s makes use of intensive distribution.
Online and phone ordering make the product easily
accessible, and then the business does the rest. The
product is available across all parts of Australia. This
has the benefit of making the product accessible to
all types of customers.
Because pizzas are made and delivered by individual
franchisees, customers can go to the store to make
an order, or phone it directly.
However, Domino’s also has a centralised ordering
system, which relays orders to the relevant store.
Originally this was only available by phone:
Domino’s paid for the branded toll-free number 1300
DOMINO (1300 366 466). However, as technology
progressed, Domino’s added new options:
Distribution channels
• online ordering via its website
Domino’s uses a ‘producer to consumer’ distribution
channel. Pizzas are made and cooked in-store: every
store contains the essential pizza-making equipment,
with the raw materials, such as the pre-packed
dough mix, obtained from a central supplier.
The finished pizza is collected by the customer, or
delivered directly to them by the store’s delivery staff.
• SMS ordering, including an option for customers
to place their last order or their ‘Fast Favourite’ in
just a few seconds, by texting the word ‘pizza’ or
sending the pizza emoji
Physical distribution issues – transport,
warehousing, inventory
Payment
Place/distribution
The key distribution issue with takeaway pizza is
ensuring it is still hot and fresh when the customer
opens the box. The longer a pizza sits on a rack
waiting for collection, or in a delivery vehicle, the
more it deteriorates and quality is compromised.
This is partly addressed by the packaging – the
pizza box, pizza saver and, if the pizza is being
delivered, the heat-insulating bag, all extend the time
a pizza can wait.
But Domino’s has made further innovations. For
example, in June 2016 it announced its On-Time
Cooking feature, which uses geo-location technology
• the Domino’s app, with its latest enhancement,
Zero Click Ordering, which allows the customer to
order a pizza without even touching a button.
Domino’s is also planning to streamline the payment
process in 2017, by enabling Apple Pay and Android
Pay.
Delivery
To offer better service to customers, Domino’s is
continually enhancing the delivery process.
A key focus of the company’s ‘Slow Where It
Matters, Fast Where It Counts’ philosophy is the
introduction of Project 3-10 – a goal of having a pickup order complete in three minutes and a delivery
made in under 10 minutes. This project was inspired
by new ovens that reduced the pizza cooking time
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Physical evidence
As noted above, the key packaging feature for
takeaway pizza is the box. However, other aspects
of physical evidence include the delivery vehicles,
and the presentation of the person who makes the
delivery.
E-marketing
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from seven to four minutes. The aim now is to reduce
it to three minutes.
The GPS Driver Tracker was originally brought in
as a driver safety initiative, but it has also meant that
Domino’s can use new technology and algorithms
to offer customers faster and safer deliveries. This
led to the introduction of 15 and 20 Minute Service
Guarantees, where customers can pay a small fee to
ensure their pizza is delivered in 15 or 20 minutes.
Domino’s relies on e-marketing to sell its products.
Consumers are now able to order a pizza online and
follow its progress before it reaches the door. The
website offers consumers detailed information on
product choice, price and health considerations. The
website and the app have become stores that are
portable and can be accessed anywhere a consumer
has access to the internet.
Global marketing Domino’s is a global brand, and is growing in most
of its markets. For example, in the 2015–16 financial
year, the European market added a record number
of 366 new stores, while there were 69 new stores
in Japan.
Source 10.10 The Driver Tracker lets customers see when their pizza will arrive.
In 2016, Domino’s also moved into automated
deliveries. The Domino’s Robotic Unit (DRU) is a fourwheel autonomous vehicle that can travel from the
store to the customer’s home at a safe speed along
the footpath. Later in 2016, Domino’s also made the
world’s first pizza delivery by drone.
Global branding
All Domino’s stores are branded with the same logo.
This provides the benefit of trust and familiarity in an
age where people are travelling much more.
However, advertising does need to fit with the
cultures of different countries. There have been
occasions when the global team has removed
commercial campaigns from the airwaves within 24
hours of appearance.
Standardisation and customisation
Domino’s maintains a balance between global
consistency and local adaption. For example, in
Europe Domino’s offers potato toppings, while in
Asian markets the toppings include seaweed.
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CHAPTER QUESTIONS
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Multiple-choice questions
1
Which two factors contributed to the growth of profitability of Domino’s?
A
B
2
B
B
Economic influences through
reduced consumer spending and
higher unemployment
Socio-cultural influences through a
reduction in the number of stores
catering to the needs of local
consumers
C
D
Psychological influences through
increased costs associated with
online ordering and delivery tracking
Legal influences through a reduction
in the number of hours’ casual
employees are able to work
Niche market with emphasis on
food products catering to specific
customer needs
Market segment allowing the
business to focus its products and
marketing towards families
C
D
Mass market where pricing and
diverse range of pizzas means the
appeal of the business extends to
all types of consumers across age,
gender and income.
Industrial market to ensure all
products ingredients are accessed
from local suppliers.
Which of the following is a perceived threat for the future of Domino’s?
A
B
5
D
Increased number of employees
and improved cost performance
Increased funds allocated to
marketing and greater consumer
awareness
Which of the following represent Domino’s target market?
A
4
C
Which of the following influences on marketing is most likely to benefit Domino’s?
A
3
Increased product range and lower
prices
Increased number of stores and the
decline of competitors
The reputation of the business as
an innovative quick service food
provider
International expansion across
Europe
C
D
A perception by some customers
that the business is low cost –
limited quality
The rising awareness of obesity and
greater government attempts to
discourage unhealthy eating
Which global marketing strategy allows Domino’s to capture increased market share of
specific markets?
A Global branding
BStandardisation
CCustomisation
DMarketing
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Cambridge HSC Business Studies Fourth Edition
Short-answer questions
Outline how Domino’s uses promotion to market its business.
2
Complete a SWOT Analysis on Domino’s.
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1
Extended-response question
With reference to Domino’s, assess the effectiveness of the marketing strategies used by
Domino’s in achieving its strategic goals.
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Chapter 10: Marketing at Domino's
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Cambridge HSC Business Studies Fourth Edition
Topic 3
Finance
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25% of indicative time
Principal focus
This topic focuses on the manner in which business planning and management relies on the interpretation of
financial data.
Introduction
Effective financial planning is a key factor in the success
of a business. It ensures that the business has the
financial resources to achieve its goals and objectives.
Financial managers consider the relevant internal and
external sources and types of finance available and the
funds needed by the interdependent functions of the
business. Through strategic, tactical and operational
planning, an organisation is able to determine its financial
needs, implement control tools and avoid situations
where it may have insufficient finances to fund shortterm and long-term projects. Organisations can devise
strategies to manage cash flow, working capital and
profitability as well as their level of financial dealings in
the global marketplace.
Comparative ratio analysis provides an important
analytical tool for the financial manager. Using the
relevant accounting information in this analysis enables
the financial manager to determine the extent to which
the business is reaching its financial goals and objectives.
The financial reports developed and used by a business
must present an honest overview of the organisation’s
financial performance. Stakeholders require clear and
accurate information in order to make the best possible
decisions regarding their involvement with the business.
Outcomes
Students will:
evaluate how internal and external changes can
influence management strategies
discuss management’s responsibilities regarding
social and ethical matters
analyse how large and global organisations use
processes and functions
explain the impact management strategies have on
businesses
investigate current issues affecting businesses
organise and evaluate information about real and
potential situations affecting businesses
communicate, using effective formats, details of
business information, issues and concepts
apply appropriate mathematical concepts to a study of
business situations.
evaluate how a business’s performance is impacted by
effective management
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Content
Students will learn about the role, influences, processes
and strategies of business finance, through examination
of current business issues, and investigation of real and
potential business situations.
By the end of this topic
Students will have learned to:
explain how long-term and short-term financial
objectives may conflict
analyse how financial management is influenced by
government and the international market
identify what limitations exist when delivering financial
reports
calculate figures using financial ratios
use comparative ratio analysis to assess the
performance of a business
recommend strategies that will result in an
improvement in financial performance
examine the ethics of financial reporting practices.
compare the different risks involved in financial
transactions conducted domestically and between
different countries
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