Case study #13 Domino\'s Pizza (Hill & Hult, pages 482-83) PDF

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A weekly case study that counts towards the final grade in BUS493. ...

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xxxxx BUS493 International Business Professor Mabul (07/08/2019) 1. Do you think it is wise for Domino’s to stick to its traditional “home delivery” business model, even when that is not the norm in a country and when its international rivals have changed their format? I believe that it is wise for Domino since this is a way to differentiate from other companies in the industry. According to our textbook, things vary from country to country as in the United States Pizza is viewed as casual food whereas, in a country like Japan, it is more of upscale food. Therefore it is important for Domino's to differentiate itself by offering a different type of service viz the home delivery model and not rely upon the conventional dining model where the server comes out and takes an order. Home delivery is in my opinion a great way to do this. 2. What do you think Domino’s does from an organizational perspective to make sure that it accommodates local differences in consumer tastes and preferences? I believe that Domino is doing a great job adapting to new countries and challenges. Domino's uses the mantra of "think global and act local" or “when in Rome do as the Romans”. This helps the company make pizzas as per the tastes and preferences of each market that it operates in. An example of this is the unique toppings in Japan. In Japan, Pizza is viewed as a more upscale fare. This is reflected in the offering. Japanese pizzas come with toppings that the average American could not grasp. Domino’s has sold a $50 pizza in Japan featuring foie gras. Other premium toppings include snow crab, Mangalitsa pork with Bordeaux sauce, and beef stew with fresh mozzarella. Japanese consumers value aesthetics and really care about the look of the food, so presentation is the key. The palate and tastes of the consumers differ from region to region and from country to country. By incorporating the local tastes in its pizza, Domino's accommodates the difference. Domino's, as an organization, aims at incorporating glocalization, to interconnect the dots

between globalization and localization. Its services and operational procedures are standard across the globe, bet the design of its menu is localized. 3. How does the marketing mix for Domino’s in Japan differ from that in the United States? How does the marketing mix in India differ? As mentioned above, the palate and tastes of the consumers differ from region to region and from country to country. By incorporating the local tastes in its pizza, Domino's accommodates the difference. Marketing will also differ from country to country, Domino’s is moving much more toward TV commercials in its promotional efforts to complement other promotional efforts. This includes Japan, India, and a variety of countries. In India, where Domino’s has some 650 stores and has plans for some 1,000 more, 50 percent of the menu is vegetarian in order to match the preferences of the large Hindu population. For delivery, Domino’s has a fleet of mopeds, which makes sense in large cities like Mumbai where traffic congestion is awful. Because Indians like things spicy, instead of including Parmesan cheese packets, Domino’s includes an “Oregano SpiceMix.” In general, the toppings have far more spice than in the United States. In Japan, Pizza is viewed as a more upscale fare. This is reflected in the offering. Japanese pizzas come with toppings that the average American could not grasp. Domino’s has sold a $50 pizza in Japan featuring foie gras. Prices barely anyone in the United States would pay. Other premium toppings include snow crab, Mangalitsa pork with Bordeaux sauce, and beef stew with fresh mozzarella. 4. What lessons can we draw from the Domino’s case study that might be useful for other international businesses selling consumer goods? The main thing to take away from this is that any international business that is manufacturing locally, either because of circumstances or as a strategic decision, should take the opportunity to adopt & customize the product so it fits the local market in an economic and efficient manner....