tutor2u Exam Coaching & Revision Workshops

Get Summer 2014 Right First Time with tutor2u Exam Coaching & Revision Workshops

AS & A2 Economics   |  AQA AS & A2 Business and AQA & Edexcel GCSE Business

Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Business Studies Blog Home Page
Tracker Pixel for Entry

Dominos Pizza - Growth & Strategy (Part 3) - Smart Marketing

Friday, November 26, 2010
Print Tweet This!Save to Favorites

Few businesses or brands invest as much as Dominos in marketing.

Four and a half per cent of the turnover of each Dominos franchise store goes into a fund used for national marketing of the Dominos brand. In 2010 the business is expected to spend around £40million on marketing, a figure bigger than the top-line revenue of many of their rivals. The marketing fund is used to develop high-profile communications such as the sponsorship of Britain’s Got Talent, The Simpsons and the X-Factor.

Television advertising remains the drug of choice for most fast-food businesses although Dominos has also joined the flood of companies seeking to establish and build an effective social media presence through Facebook, Four Square and other social network sites. A case in point is that a Domino’s iPhone app already delivers 3-4% of online sales.

Price discrimination has been successful for the business. The Two for Tuesday promotion has been so effective that Dominos now sells as much pizza on a Tuesday (traditionally the quietest night of the week) as it does on a Saturday. Price discounting mid week help to smooth the pronounced ups and downs of daily sales during a normal week.  Two for Tuesday generates extra revenue and grows volumes – all helpful to franchisees with large fixed overhead costs.

Dominos is also targeting core groups of consumers. They have sponsored the setting up of Pizza Societies at numerous universities in the UK (how long before the idea takes root in schools?). And this is a business fully aware of the importance of changing demographics. Pizza eating is less popular among people aged 55 and over, but younger generations have become used to the Dominos model and as this group ages, the commercial opportunities are sizeable.

And because forty per cent of their business comes over the internet, Dominos has built up a terrifically valuable database of location-specific customers – a mine of information that can be used to great effect when promoting special offers, new products and reinforcing brand awareness. Put simply, Dominos knows where you live and the ever-expanding size of their customer database has great commercial value. Since 2007,

Since January 2007, an additional 3million new customers have ordered from Dominos – here is a business that understands a business truism, namely that the cost of selling to an existing customer is always lower than searching for a new one! Incidentally, the average customer orders from Dominos once every 34 days – are you a more or less frequent customers?

There are many businesses that are successful because they focus in a single-minded way on identifying a model that works for them and then concentrating on carrying it out extremely well. Don’t expect Dominos to diversify into exotic areas! They are happy to allow competitors to grow the market for pizza delivery and then use their undoubted muscle to take a growing slice of it.

For a business founded fifty years ago in Michigan whose distinctive 3 dots on their logo marked an early ambition to run just three stores, Dominos hasn’t done too badly! It has a justifiable claim to be the most profitable pizza delivery company in the world.

blog comments powered by Disqus

AQA A2 Business Studies BUSS4 Section A Research Theme for 2014

Revision workshops for business studies from tutor2u

Business Studies Revision / Exam Coaching Workshops Coming Up:

GCSE Business (AQA Unit 2 & Edexcel Unit 3)

Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)

AQA AS & A2 Business (BUSS1 & BUSS3)

Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)

AQA AS & A2 Business (BUSS2 & BUSS4)

Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)

Post-Easter (BUSS1/BUSS2 Combined & BUSS4)

Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)

Try some of these superb starter activities for Business Studies:

Business Studies Blog Economics Blog
Geography Blog Politics Blog
Give It A Go! Blog Sociology Blog

tutor2u online store

PowerPoint Lesson Activities Teacher Conferences & CPD Courses
Exam Coaching & Revision Workshops Pre-release Case Study Toolkits
A Level Economics Teaching Support Resources for Business Studies
Digital Magazines  

Enter your Email

TBBLE 2014 - Teaching & Learning Resources for Business Studies

50+ New Teaching & Learning Resources for GCSE, A Level & IB Business

Latest resources

Resource categories Blog RSS feed Blog RSS Feed
© Copyright Tutor2u Limited 2013 All Rights Reserved