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DOMINO'S IN JAPAN

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Created on August 23, 2021

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DOMINO'S IN JAPAN

Fernando Becerra Alexa Chávez Lizbeth Palafox

Why has Domino´s been so successful as a global brand? Is there anything it has NOT done well?

Savvy marketing, innovative tech and creative ordering methods lifted Domino's sales over Pizza Hut for the first-time last year. "Delivery is what the consumer wants. So, Domino's tossed out the playbook. Led by CEO Patrick Doyle, the company launched what it called the "pizza turnaround" in 2010. Its stores serve quality food at competitive prices. The company combines quality food and competitive prices with easy ordering access and efficient service. The company has enhanced its product offerings and customer experience using technological innovations.

Online sales for the year to 27 December 2020 surged 23.9%, with online delivery sales now accounting for 94.3% of all sales in the UK. ... Paul describes the Domino's app as the “driving force” of its digital offer with sales growing 26.2%, accounting for 43.3% of all online sales. Indulging in more than one slice of Domino's pizza frequently can easily cause obesity or cardiovascular related conditions. It is important to note that these values do not include additional toppings like meat and veggies, which will also increase calories, fat, cholesterol, and sodium.

How does Japan differ from other Domino's geographical markets?

Japan market

Japanese consumers expected DPJ to offer North American cultural elements in its products.

In American countries delivery food is consumed more frequently and in Japan it is consumed more as a “reward” or celebratory purchase, for example when there is a birthday or a party.

Delivery of fast food is a popular option especially with the use of electric scooters or e-bikes given the country's high population density.

Japanese consumers were accustomed to buy takeout food into bento boxes. However they were incresingly adding Western food into their diet.

Which strategic approach has Domino's used for markets outside the United States: international, multinational, or global?

Their dishes are tropicalized and adapted for their Japanese market. They have special pizzas for birthdays and they have American pizzas like the New Yorker.

Where does innovation originate at Domino's?

Innovation

- Driverless delivery and e-bikes optimize the delivery process. - Domino’s was the top television was the top television advertiser in the quick-service restaurant category. - AI ordering removes friction from the ordering experience. - They have a competitive delivery time. - Franchising and expanding very fast. - Digital ordering platform. - GPS tracking that maximizes labor efficiencies.

https://www.ncr.com/blogs/restaurants/digital-innovations-dominos

Which approach would you recommend to DPJ: expand into Hokkaido or concentrate more resources in Nagoya?

We would recommend expanding to Hokkaido because there is no use saturating the market if there are already several stores in Nagoya. If they focus on this other city, they can win many more clients since there are 2 million people in that city and thus avoiding market canilabalization