Domino Pizza Group Report PDF

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This is a report of a focus group which focus on recruiting new customers from the age 16 to 24 so as to earn higher profits....

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TABLE OF CONTENTS 1. Overview of the market (growth rate, trends...)...........................................................................4 2. Competitors......................................................................................................................................5 3. The SWOT analysis of Domino…..................................................................................................6 4. The research objective.....................................................................................................................7 5. Theories of research objectives...................................v..................................................................9 6. Focus group (profile of the interviewees, discussion guide).......................................................11 7. Data analysis...................................................................................................................................12 8. Recommendation/action to be taken for the brand....................................................................13 9. Limitation.......................................................................................................................................14 10. References.......................................................................................................................................15 1. Market overview Nowadays, the lifestyle and food preferences between millennials has changed dramatically, therefore the young generation and working-class population are playing the key role in leading the market. Growth rate: According to VNEXPLORER, “Euromonitor International, a London-based strategic market analyst, estimated the value of Vietnam’s pizza market at $120 million in 2017” and the foodservice market of Vietnamese is expected to be approximately 65.03 billion USD with the recording CAGR of 13.05% during the period of 2019 to 2024. The pizza chains in Vietnam have posted double-digit growth in 2019 with the combined revenues of over $83 million for over 180 outlets all over Vietnam (2020). Dominos Pizza Inn. is an international brand that entered the Vietnamese market in late 2010 and strategically located their outlets all over the urban areas of Vietnam like Hanoi, HCM city, etc. They also hold a major share in the consumer base for their premium products.

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(Modorintelligence). Trend: - Healthy options . - Environmentally conscious. - Technology enablement. Competitors: Up to 2020, the top 3 pizza chains that are leading in the Vietnam pizza market are: American chain Pizza Hut (749 billion VND revenue); Thailand-headquartered The Pizza Company came in the second place (600 billion VND) and the last position belong to Vietnam’s Pizza 4Ps with 568 billion VND (VNEXPLORER, 2020).

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2. Competitors Generally, the food market in Vietnam is very diversified and plentiful. As a result, Vietnam promotes the expansion of restaurants, supermarkets, big stores, and retailers in rural areas. Pizza, a kind of fast food, attracts the local market in Vietnam and becomes familiar with young people. There are many famous pizza brands such as Domino’s Pizza, Pizza Huts, Pizza Company and Pizza 4Ps. Beside Domino’s Pizza, their biggest competitor is Pizza Hut. Pizza Hut, the first Pizza brand in Vietnam, had built the their brand professionally and brought the brand to the global market. Additionally, they can adapt with the taste of Asian people in order to attack the Asian market. Even though Pizza Hut is able to hit incredible sales milestones, they also have weaknesses. The major weakness of Pizza Hut is that despite creating a strong brand, they lose the turnover due to little promotions for loyalty customers. The opportunities for Pizza Hut is that South East Asia is the dynamic market because it is open for franchise. Contrastly, There are some threats which make Pizza Hut consider avoiding troubles. The appearance of Domino’s Pizza with excellent applications in technology and social media to develop their brand is the biggest challenge of Pizza Hut. Also, due to the big differences of customer’s taste, there are many competitors against Pizza Hut like Romeo’s Pizza, Round Table Pizza, 4P’s Pizza, Marco Pizza, etc 3. The SWOT of Domino Strength Strong brand recognition (already famous in America) Dominio can be considered as a leader in mobile ordering. Mr Joseph Hsu affirmed that Domino has invested to develop delivery technology that allows finish the door-to-door ordering within 30 minutes. Domino always striving for innovation product that adapts cultural Vietnamese taste like pizza “phở”. Weakness Domino has planned to be the best delivery pizza in Vietnam. However, until now, there are still less ordering channels in Vietnam which are through hotline and website only, instead of cooperating

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with third platform like Grab, Now. One more weakness is that the speed of expansion is quite slow, comparing to closest competitor Pizza Hut. They just launched new stores in two big cities of Vietnam which are Ha Noi and Ho Chi Minh city. Opportunities + The South East Asia market is big and unconquered by any franchise. + The number of young people-potential customer-is high + More and more people can afford a meal in western style restaurant +Younger people would like to try western cuisine, especially pizza. Threat + High price discourages customer + Highly competitive market, direct competition comes from bigger food franchise, such as: Pizza Hut,The Pizza Company,… or competition comes from small local brands that understand local taste better + Rising health concern for fast food that may cause a drop in pizza consumption + Unpredictable changes in consumer’ demands 4. The research objective(s) As the swot of Domino is analysed above, it cannot deny that Domino has to focus on recruiting new customers from the age 16 to 24 so as to earn higher profitability. This group should have the middle income level and they mainly live in the cities or densely populated areas. In addition, they mostly like eating fast food because they love hanging out with their friends and family instead of spending time cooking at home. Especially, Whenever they go to eat out, they often find the stores with free vouchers or promotions. Also, they are excited to check-in in the good-looking restaurants with a wonderful atmosphere. Besides Domino’s Pizza, people already tried other brands like Huts, Company or 4P’s Pizza. Finally, the targeted customers sometimes find the reviews or the vouchers through Facebook’s groups or the Kols on the internet.

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5. List of names of theories you choose to answer your research objectives (e.g., consumers’ perception, attitude, reference group, decision making process…) With the consumer’s perception, we need to know which exposure and attention we should choose to attract the customers more to our advertisements. With the exposure, it would be more relevant if attracting the customers with the selective exposure more than the voluntary exposure. In the customer’s attention, there’re lots of factors we have to consider, like: Stimulus Factor, Individual Factor, Situational Factor, Nonfocused attention. The customer’s interpretation is effective if the customers’ feeling is triggered by a stimulus such as an advertisement. It also depends on the customer’s individual characteristics, situational characteristics, stimulus characteristics and consumer inferences. Therefore, to develop a right perception and marketing strategy for Domino’s, we have to consider these areas: retail strategy, brand name and logo development, media strategy, advertising, package design and labeling. The 3 components that would affect the customer’s attitude are affective, cognitive and behavioural components. These 3 will affect the overall orientation toward the brand and they tend to be consistent, this means that a change in one attitude component tends to produce related changes in the other components. This tendency is the basis for a substantial amount of marketing strategy. Therefore, to change the attitude of the customers, we need a strategy. To change the Cognitive component, we have to: change belief, shift importance, add belief, change ideal. To change the Affective component, we need: classical conditioning, affect toward the ads or website, mere exposure. With Behavioral, the changes in the first 2 components will be resulted here. Moreover, the Individual, Situational and Communication characteristics would also influence the attitude formation and change. We must develop market segmentation and products development based on the customer’s attitude.

With Domino’s customers’ reference groups, according to the target market, they are under the age that are most likely to be influenced by the primary group is their families and friends, Their Consumption subcultures would create more interaction with a Brand community. Online Communities and Social Networks plays an important role in marketing these days. To develop a marketing strategy based on reference groups influent, Domino’s must consider between Personal Sales Strategies and Advertising Strategies.

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For pizza segment, customers considerably adopt limited decision making, which includes limited search, “few alternatives, simple decision rules on a few attributes, and little post-purchase evaluation”. Domino’s Pizza is noticeably a brand in evoked set, so Capture Strategy would best fit its manner to reach maximum profits.

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6. Focus group (profile of the interviewees, discussion guide) There were 6 people attending in the focus group which included 3 men and 3 women coming from ISB school. All participants age among 19-22 years old. Participants included 2 people living with their family and 4 people renting an apartment. Discussion guide:

7. Data analysis

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Two of the respondents stated that they were dining out everyday due to the convenience and timesaving. Additional respondents set their usage of fast food at two or three times weekly, sometimes once a week, respectively. Examples of fast food consumed by them was chicken in KFC or Lotteria, pizza in 4Ps or Domino's, Burger at Burger King, etc.

When asked what comes to their mind when talking about pizza, the popular keywords are 4 big brands in Vietnam which are Pizza Hut, The Pizza Company, Domino, 4Ps, and Western food, quite expensive, not healthy. Almost all participants reveal that they prefer ordering pizza through Baemin due to variety discount vouchers like 40% discount or freeship. Four of the respondents said that they would go to a pizza restaurant with a group of friends for long-time chatting at a discount day of the week, while the others usually go with family at weekend. Moreover, most respondents told that they know the promotion by word of mouth and posting on facebook groups. Domino seems to be a favorable delivery brand with over 83% chosen, while people tend to eat at the restaurant with 3 remaining popular brands. Surprisingly, 4Ps was chosen to be the best check-in place among pizza brands due to its unique dishes, followed by The Pizza Company. Customer insight: Young generation who age between 16-24 feel ‘proud’ when consuming strange goods which lead to curiosity and usually want to share these experiences on social networks. 8. Recommendation/action to be taken for the brand Aiming to reach the maximum customers in the 16-24 age group, recommendations about actions to be taken are necessarily proposed.

Firstly, the product itself is still the most important factor to take into account. Unique designs and recipes attract customers greatly, which later helps boost sales and awareness without any marketing cost. Most people love creative designs, so instead of traditional round-shaped pizzas, we should develop pizzas in square-shaped, heart-shaped (for couples or on Valentine event) or even iconic domino-shaped for our Domino’s pizzas. To recruit our new target customers who previously avoided pizzas as they are pursuing healthy life, vegetable and fruit pizzas or pizzas with low-fat cheese and no processed food like ham, pepperoni,.. or should be their new ideal choices.

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Secondly, young people are recently giving much interest in delivery food apps such as Now, Grab, Baemin,... Pushing advertisements in Now shows positive signals for Domino’s Pizza, yet it ought to launch in Baemin as well, especially when this app is attracting much attention from users due to many big vouchers. Increasing the frequency in customers’ sights means increasing the opportunity to be chosen.

Thirdly, data analysis indicates a lack of availability of restaurants in remote provinces. This made Domino’s Pizza miss many chances to get brand loyalty and gain market share where many competitors are not around.

Last but not least, KOL Marketing should be taken into consideration due to the increasing power of influencers on young generations. They appear to be closer, more casual and more trustworthy than celebrities nowadays. 9. Limitation During the research process with the team, there are some limitations which can affect the final result. It is difficult to find the people who have real experience and fair reviews with all Pizza’s brands. By interviewing the relatives, it is easy to realize that some of them gave us biased information about Pizza brands because they just want to enjoy their familiar brand instead of trying another. Additionally, there are still many people who are not interested in pizza and they prefer eating traditional meals. The main reason is that Pizza is quite strange to some people, so they are afraid of trying new kinds of food coming from foreign countries. Finally, some participants feel that doing our research takes their time, so they refuse to answer the long survey with more than 10 questions. Another challenge is that we have difficulty in hanging out to do surveys due to the individual time management.

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10. References Franchise Disclosure Documents (FDD). Pizza industry analysis. Retrieved from: https://www.franchisehelp.com/industry-reports/pizza-industry-analysis-2020costtrends/#:~:text=Pizza%20by%20the%20numbers,2.35%25%2C%20to %2074.8%20thousan d. ModorIntelligence. (March 2020). Vietnam Food Service Market 2020-2025. Retrieved from: https://www.mordorintelligence.com/industry-reports/Vietnam-Food-Service-Market Mothersbaugh, D. & Hawkins, D. (2005). Consumer Behaviour (13rd ed). New York, America: McGraw-Hill Education The Saigon Times. (December 23, 2019). Domino’s Pizza in Vietnam accelerates to lead the world. Retrieved

from:

https://english.thesaigontimes.vn/73233/domino%E2%80%99s-pizza-

invietnam-accelerates-to-lead-the-world.html UKEssays. (November 2018). Pizza Hut Is An American Restaurant Chain Marketing Essay. Retrieved

from

https://www.ukessays.com/essays/marketing/pizza-hut-is-an-

americanrestaurant-chain-marketing-essay.php?vref=1 VNEXPLORER. (September 23, 2020). Pizza chains post double-digit growth. Retrieved from: https://vnexplorer.net/pizza-chains-post-double-digit-growth-a202098240.html

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