Instructions: Read the case provided and answer the question that follows.Question:Do you think it is wise for Domino's to stick to its traditional "home delivery" business model even when that is not a norm in the country and when its international rivals have changed their format? CASE 1: DOMINO'S PIZZADomino's Pizza made its name by pioneering home delivery service in the United States. In recent years,however, the growth story has been overseas. With the U.S. fast-food market saturated and consumerdemand weak, Domino's is looking to international markets for growth opportunities. The company is nonewcomer to international business it opened its first international store in Canada in 1983 - but today,almost all new store openings are outside of the United States. At the beginning of 2012, the companyhad 4,835 stores internationally and 4,907 domestic stores. Its plans call for opening another 350 to 450international stores a year for the next few years.As it expands its international businesses, there are some things that Domino's has kept the same as inthe United States, and there are some things that are very different. What is the same is the basicbusiness model of home delivery. This sets it apart from many of its U.S. rivals, who changed their basicoffering when they entered foreign markets. For example, when Yum Brands Inc. introduced Pizza Hutinto China, it radically altered the format, establishing Pizza Hut Casual Dining, a chain that offers a vastselection of American fare including ribs, spaghetti, and steak-in a full-service setting. Pizza Hut adoptedthis format because table service was what the locals were used to, but Domino's isn't interested. "We goin there with a tried-and-true business model of delivery and carry-out pizza that we deploy around theworld," states Domino's international president, Richard Allison. "In emerging markets, we've got moretables than you would find in the U.S., but we have no plans to lean toward a casual dining model wherethe server comes out and takes an order!"On the other hand, there are things that vary from country to country. In the United States, pizza isviewed as food, frequently mentioned in the same breadth as beer and football. In Japan, it's viewed asmore upscale fare. This is reflected in the offering. Japanese pizzas come with toppings that the averageAmerican couldn't fathom. Domino's has sold a $50 pizza in Japan featuring foie gras. Other premiumtoppings 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 food, so presentation is key.Patrons expect every slice to have precisely the same number of toppings, which must be uniformlyspaced. Shrimp, for example, are angled with the tails pointing the same way.Pizza consumption is low in Japan - the average Japanese pizza customer only consumes the productfour times a year. To boost this, Domino's has been working to create more occasions to enjoy it. Forexample, on Valentine's Day, its Japanese stores deliver heart-shaped pizzas in pink boxes. Heart-shaped pizzas also appear on Mother's Day.To promote the offering in Japan, rather than spending money on commercials, Domino's tries to createnews, like topics that people talk about. If the topic is fun and hot, Domino's believes that people will talkabout it, which ultimately translates into better sales. One promotion received heavy coverage. The chainoffered 2.5 million yen (about $31,000) for one hour's work at a Domino's store. In all, about 12,000people applied for the "job." The lucky winner was a rural housewife who had never eaten pizza. She flewto a small island to deliver pizza to schoolchildren, who were also new to pizza. The event received heavynews coverage-free advertising in other words.In India, where Domino's has more than 400 stores and has plans for 1,000 more, 50 percent of the menuis vegetarian to match the preferences of the large Hindu population. For delivery, Domino's has a fleet ofmopeds, 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 "OreganoSpice Mix." In general, the toppings have far more spice than in the United States. Although Indians areused to full service in restaurants, Domino's doesn't use servers or busboys in their stores, even thoughthey typically have a few tables in each store for those who want to eat on-premises. Instead, they areeducating their customers to clean up after themselves, with in-store trashcans that say "Use Me" in bigbold letters.

Domino's has been into the international business since a long time. They have been providing…

Instructions: Read the case provided and answer the question that follows. Question: Do you think it is wise for Domino's to stick to its traditional "home delivery" business model even when that is not a norm in the country and when its international rivals have changed their format?

Instructions: Read the case provided and answer the question that follows. Question: Do you think it is wise for Domino's to stick to its traditional "home delivery" business model even when that is not a norm in the country and when its international rivals have changed their format?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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