MERI

College
Management Education and Research Institute

A study On Advertising strategy on Domino’s

Name – Piyush Kapoor
Roll no = 08215101721
Course - BBA First Year (2nd Semester)
Subject – Minor project (b b a – 114)
Mentor = miss Sheela Narang mam

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 C0ntents
 Chapter 1 = Introduction
o History
o About Logo
o Chairman and Board of Directors
o Franchises
o Revenue
 Chapter 2 = Literature Review
 Chapter 3 = Advertisement Strategy
 Chapter 4 = Research Methodology

# Introduction

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Domino’s Pizza is the second largest franchised pizza chain in the U.S.A., Tom and James
Monaghan bought a small Michigan Pizzeria called Dominick’s, which was jointly run by them
until James traded his share for a second hand car. Tom revitalized the image by changing the
name to Domino’s Pizza, By the late seventies there were over 200 franchise pizza businesses in
the States and Domino’s Pizza was ready to go International.
In 1983 Domino’s Pizza opened its doors in Winnipeg (Canada), and in the same
year opened its one thousandth store. The locations for Domino’s Pizza grew
quickly. Despite Domino’s Pizza springing up diverse locations, they were still a
very traditional company.
Domino’s Pizza menu had been kept very simple and streamlined; they only sold one type of
pizza crust which they named the regular pizza. The pizza menu included just two sizes of
dough, it was not until much later that competition forced them to add a medium and extra-
large sized pizza. There were no such things as side orders you could have Pizza and you could
only drink a Coke with it.
In 1989, Domino’s reacted market demand first time in twenty five years and introduced Deep
Pan pizza. This move ensured the growth of Domino’s Pizza, as the same year they opened their
five thousandth store.
In 1992 they were to introduce the first non-pizza item to their menu, this was obviously a
reluctant move as it was bread sticks. Domino Pizza dough was already on hand and the making
of bread sticks is not so different. For many years the company had advertised that if the
delivery of their pizzas took longer than thirty minutes then the pizza would be delivered free.
This was parodied by the Teenage Mutant Ninja Turtles movie which specified the “pizza dude
has 30 seconds” to complete the delivery. The turtles pizza was late and they received a refund
of $3 for “being two minutes late, dude!” However the benefits to Domino Pizza was enormous
as millions of kids were to hear the name of Domino Pizza endorsed on celluloid. In 1993
Domino Pizza discontinued this policy and stated that if a customer was unhappy they could
have a new pizza or a refund.
By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the
menu. At the same time the company hit the African continent as they opened a store in Egypt.
By 1996 Dominos Pizza website was launched and the company declared global sales of nearly
$3 billion.
Despite their reluctance to add a wider range menu they have as a company given the pizza
industry many innovations that have now become standard. The belt driven pizza oven was the
invention of Domino Pizza and they began using corrugated cardboard delivery boxes which
were very effective at holding the heat within the pizza during the delivery time. Ever mindful of
the fact that a cold pizza must be about the worst dining experience on earth Domino’s pizza

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introduced the “Heat Wave,” a portable electrical bag system that keeps the pizza hot during
delivery.
#History
1960s–2010s
In 1960,[12] Tom Monaghan and his brother, James, took over the operation of Domi
Nick’s, an existing location of a small pizza restaurant chain that had been owned by
Dominick De Varti , at 507 Cross Street (now 301 West Cross Street in Ypsilanti,
Michigan, near Eastern Michigan University. The deal was secured by a $500 down
payment, then the brothers borrowed $900 to pay for the store. The brothers planned to
split the work hours evenly, but James did not want to quit his job as a full-time postman
to keep up with the demands of the new business. Within eight months, James traded
his half of the business to Tom for the Volkswagen Beetle they used for pizza deliveries.
By 1965, Tom Monaghan had purchased two additional pizzerias; he now had a total of
three locations in the same county. Monaghan wanted the stores to share the same
branding, but the original owner forbade him from using the Domi Nick’s name. One
day, an employee, Jim Kennedy, returned from a pizza delivery and suggested the
name “Domino’s”. Monaghan immediately loved the idea and officially renamed the
business Domino’s Pizza, Inc. in 1965.
The c“mpany ’o”o originally had three dots, representing the three stores in
1965. Monaghan planned to add a new dot with the addition of every new store, but this
idea quickly faded, as Domino’s experienced rapid growth. Domino’s Pizza opened its
first franchise location in 1967 and by 1978, the company had expanded to 200
stores. In 1975, Domino’s faced a lawsuit by Amstar Corporation, the maker of Domino
Sugar, alleging trademark infringement and unfair competition. On May 2, 1980,
the Fifth Circuit Court of Appeals in New Orleans found in favor of Domino’s Pizza.
In 1998, after 38 years of ownership, Domino’s founder Tom Monaghan announced his
retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and
ceased being involved in day-to-day operations of the company. A year later, the
company named Dave Brandon as its CEO.
International expansion
On May 12, 1983, Domino’s opened its first international store, in Winnipeg, Manitoba,
Canada. That same year, Domino’s opened its 1000th store, its first in Vancouver,
Washington. In 1985, the chain opened their first store in the United Kingdom in Luton.
Also, in 1985, Domino’s opened their first store in Tokyo, Japan. In 1993, they became
the second American franchise to open in the Dominican Republic and the first one to
open in Haiti, under the direction of entrepreneur Luis de Jesús Rodríguez. By 1995,
Domino’s had expanded to 1,000 international locations. In 1997, Domino’s opened its
1,500th international location, opening seven stores in one day across five
continents. By 2014, the company had grown to 6,000 international locations and was
planning to expand to pizza’s birthplace, Italy; this was achieved on October 5, 2015,

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in Milan, with their first Italian location. CEO Patrick Doyle, in May 2014, said the
company would concentrate on its delivery model there
In 1995, Domino’s Pizza entered China through the Pizza Vest Fast Food Group, which
also owned the rights to operate Domino’s Pizza in 11 Southeast Asian countries.
In February 2016, Domino’s opened its 1,000 th store in India. Outside the United States,
India has the largest number of Domino’s outlets in the world.
China
The Chinese subsidiary is known as Domino’s Pizza China.
As of October 2019, Domino’s Pizza China has about 250 stores in nine
cities: Beijing (about 75 stores), Shanghai (about 100
stores), Guangzhou, Shenzhen, Tianjin, Nanjing, Suzhou, Wuxi, and Hangzhou. The
200th store in Shenzhen, was also the 10,000th Domino’s store internationally.
The first mainland China store was located in the Shenzhen Special Economic Zone 4
and the first Beijing location opened in Haidian District in May 1997. In December
2006, Taiwan’s Jinghua Hotel Group invested NT$500 million to acquire the rights for
Domino’s Pizza in Taiwan and Beijing. In 2017, Dash Brands Ltd., a foreign investment
company specializing in restaurant chains, obtained the exclusive rights for Hong
Kong and Macau.
In China over 90% of orders are placed online. Orders can be made in the stores and
on the company website, via app, and through the messaging app WeChat. Despite
insisting that its own distribution system has greater advantages in safeguarding service
quality and data retention, Domino’s has already opened up a model of cooperation with
third-party take-out platforms such as Ele.me and Meituan.[28]
Domino’s Pizza China has offered American style potato bacon pizza, crayfish crispy
and tender chicken pizza, durian pulp pizza, and salted egg yolk pizza, as well as
Sichuan pepper flavor tender chicken drumsticks
Present
In 2004, after 44 years as a privately held company, Domino’s began trading common
stock on the New York Stock Exchange under the ticker symbol “DPZ”. Industry trade
publication Pizza Today magazine named Domino’s Pizza “Chain of the Year” in 2003,
2010, and 2011. In a simultaneous celebration in January 2006, Domino’s opened its
5,000th American store in Huntley, Illinois, and its 3,000th international store in Panama
City, Panama, making 8,000 total stores for the system. [34] In August 2006, the Domino’s
location in Tallaght, Dublin, Ireland, became the first store in Domino’s history to hit a
turnover of $3 million (€2.35 million) per year.[35] As of September 2006, Domino’s has
8,200+ stores worldwide, which totaled $1.4 billion in gross income.
In August 2012, Domino’s Pizza changed their name to simply Domino’s. At the same
time, Domino’s introduced a new logo that removed the blue rectangle and text under
the domino in the logo, and changed the formerly all-red domino to be blue on the side
with two dots and red on the side with one dot. This was done because the company
wanted to “expand” menu choices rather than simply rely on their traditional pizza.

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# About logo
The company logo originally had three dots, representing the three stores in 1965. Monaghan
planned to add a new dot with the addition of every new store, but this idea quickly faded, as
Domino’s experienced rapid growth. Domino’s Pizza opened its first franchise location in 1967
and by 1978 the company expanded to 200 stores. In 1975, Domino’s faced a lawsuit by Amstar
Corporation, the maker of Domino Sugar, alleging trademark infringement and unfair
competition. On May 2, 1980, the Fifth Circuit Court of Appeals in New Orleans found in favor
of Domino’s Pizza.
# Franchises
Domino’s Pizza, as of September 2018, has locations in the United States (including
the District of Columbia, Guam, Puerto Rico, and the United States Virgin Islands), in 83
other countries, including overseas territories such as the Cayman Islands, and states
with limited recognition, such as Kosovo and Northern Cyprus.[11] It has its stores in
5,701 cities worldwide (2,900 international and 2,800 in America) In 2016, Domino’s
opened its 1,000th store in India. As of the first quarter of 2018, Domino’s had
approximately 15,000 stores, with 5,649 in the United States, 1,232 in India, and 1,094
in the United Kingdom.
In most cases, Domino’s has master franchise agreements with one company per
country, but three companies have acquired multiple master franchise agreements,
covering multiple countries:

 Domino’s Pizza Israel was founded in 1990, and opened their first branch in
1993. They are operated by Elgad Pizza. As of August 2014, there are 33
branches throughout the country. There are 4 kosher franchises.
 The rights to own, operate, and franchise branches of the chain in Australia,
Denmark, New Zealand, France, Belgium, the Netherlands, and Monaco are
currently owned by Australian Domino’s Pizza Enterprises, having bought
the master franchises from the parent company in 1993 (Australian and New
Zealand franchises) and 2006 (European franchises).
 The master franchises for the UK and Ireland were purchased in 1993 by the
British publicly listed Domino’s Pizza Group (DPG), which acquired the
master franchise for Germany in 2011, and Switzerland, Liechtenstein,
and Luxembourg in August 2012 by buying the Swiss master franchise
holder, with an option to acquire the Austrian master franchise as well. DPG
opened its first Swedish location near the Mobilia shopping mall in Malmö in
December 2016; three years later, in 2019, they announced that they would
be selling all of their current business in the country
 The master franchises for India, Nepal, and Sri Lanka are currently owned by
the Indian company Jubilant FoodWorks. India is the largest international
market for Domino’s outside its home market, being the only country to have
over 1,000 Domino’s outlets The company operates 1,362 stores across 264
Indian cities as of 2018.
 In Bangladesh, the franchises for Domino’s Pizza are co-owned by Jubilant
FoodWorks and Golden Harvest Limited, forming ‘Domino’s Pizza

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 Bangladesh Limited’. In this entity, Jubilant FoodWorks is the majority
shareholder and owns 51% of the company, while the rest of the share is
owned by Golden Harvest Limited. The first store in Bangladesh opened in
February 2019.
 As of July 27, 2020, Domino’s Pizza opened in downtown Zagreb, Croatia.
 As of 2020, Domino’s Pizza opened 550 stores in Turkey.

# Revenue

Domino’s Pizza Inc annual/quarterly revenue history and growth rate from 2010 to
2022. Revenue can be defined as the amount of money a company receives from its
customers in exchange for the sales of goods or services. Revenue is the top line item
on an income statement from which all costs and expenses are subtracted to arrive at
net income.

 Domino’s Pizza Inc revenue for the quarter ending March 31, 2022 was $1.011B,
a 2.79% increase year-over-year.
 Domino’s Pizza Inc revenue for the twelve months ending March 31, 2022
was $4.385B, a 3.71% increase year-over-year.
 Domino’s Pizza Inc annual revenue for 2021 was $4.357B, a 5.83% increase from
2020.
 Domino’s Pizza Inc annual revenue for 2020 was $4.117B, a 13.78%
increase from 2019.
 Domino’s Pizza Inc annual revenue for 2019 was $3.619B, a 5.42% increase from
2018.

# Chairman and Board of Directors

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 Literature review

A consumer’s perception of quality levels has long been a focus for marketing literature
research. For example, the consumer’s judgment concerning an entity’s overall level of
excellence or superiority has been used as a measurement of perceived quality. Objective
measures of quality, measured by elements such as the “conformance to requirements” or
“freedom from deficiencies” have been defined as the basis for quality assessment. However,
these objective measures are difficult to translate into methods for assessing service (as
opposed to product) quality. This difficulty led to the development of ServQual, intended to
assess user perceptions of quality in a service environment.
From the methodological point of view: Respondents fatigue at having to rate all service
attributes twice. They also tend to rate most dimensions as being highly important, since they
are unable to distinguish between aspects that are very and extremely important Respondents
may interpret the expectation / importance questions in different ways.
[Parasuraman, Zeithaml and Berry (1988) “SERVQUAL: A Multiple-Item Scale for Measuring
Consumer Perceptions of Service Quality.” Journal of Retailing (64.1) 12 37]developed the
original 22 item ServQual scale with questions intended to assess five specific dimensions
(tangibles, reliability, responsiveness, assurance, and empathy). [Parasuraman et al. (1985)]
identify the 10 core components of service quality as reliability (consistent performance and
dependability), responsiveness (willingness/readiness to serve), competence (possessing
knowledge and skills), access (approachability and ease of contact), courtesy (politeness,
consideration and friendliness of staff), communication (updating and listening to customers),
credibility (trustworthy and reputable, with customer interests at heart), security (freedom
from danger and risk), customer knowledge (understanding needs and personalized attention),
as well as tangibles (facilities and physical features). The Serv Qual instrument utilizes a “gap (or
difference)[ Carman, James M. (1990) “Consumer Perceptions of Service Quality]: score”]
analysis methodology, wherein the user’s expectations for service quality are assessed at the
same time as the user’s perception of the actual system performance. The difference between
these two scores (performance minus expectation) is used as the basis of analysis.
Multiple Marketing-oriented researchers have identified factor stability as a problem for the
Serv Qual instrument’s assessment of service quality. At least two studies have found evidence
that Serv Qual represents a unidimensional model. [Charles W. Lamb. (1991) “An Evaluation of
the Serv Qual Scales in a Retailing Setting”,] A 1993 study concluded that the performance-only
element of Serv Qual (referred to as Serv Perf) “performs about as well as Serv Qual itself”. The
authors found that “Overall, the nomological validity evidence somewhat favors the non-
difference score measure to the Serv Qual measure”

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CONCERNS ABOUT SERVQUAL’S UNDERLYING DIMENSIONS
One of the aims of this study involves the use of SERVQUAL instrument in order to ascertain any
actual or perceived gaps between customer expectations and perceptions of the service
offered. Another aim of this paper is to point out how management of service improvement can
become more logical and integrated with respect to the prioritized service quality dimensions
and their affections on increasing/decreasing service quality gaps. In the following, after a brief
review of the service quality concept, the model of service quality gaps and the SERVQUAL
methodology is demonstrated and an example is presented to pinpoint the application of the
SERVQUAL approach. Then, after a discussion, major conclusions are derived. The point (the
number and dimensions of service quality vary depending on the context and culture involved)
is of particular concern when evaluating service quality in developing countries. For example,
[Imrie et al. (2002)] highlight interpersonal relations as a dimension important to Taiwanese
customers not adequately addressed by SERVQUAL. [Suresh chandar et al. (2003)] emphasis the
significance of technological and human factors with bank customers in India. Other studies
such as [Angur et al. (1999) and Wang et al. (2003)] have also found the SERVQUAL dimensions
to be inadequate in that they do not fully describe the service criteria important to customers
of emerging markets.

Advertisement Strategy
In late 1986, Domino’s was well known for its advertisements featuring a character
called the Noid, created by Group 243 Inc. who hired Will Vinton Studios to produce the
television commercials that featured the character. The catchphrase associated with the
commercials was “Avoid the Noid”. The Noid was discontinued after Kenneth Lamar
Noid, believing the mascot to be an imitation of him, held two Domino’s employees
hostage in Chamblee, Georgia. The employees escaped while Noid ate a pizza he had
ordered. Noid was eventually diagnosed with paranoid schizophrenia and acquitted due
to insanity, and later committed suicide. The Noid was briefly brought back for a week in
2011 in an arcade-style game on the Domino’s Facebook page. The person with the top
score received a coupon for a free pizza.
Due to a glitch on the Domino’s website, the company gave away nearly 11,000 free
medium pizzas in March 2009. The company had planned the campaign for December
2008 but scrapped the idea and never promoted it. The redemption code to receive the
pizzas was never deactivated, however, and resulted in the free giveaway of the pizzas
across the United States after someone discovered the promotion on the website by
typing in the word “bailout” as the redemption code and then shared it with others on the
Internet. Domino’s deactivated the code on the morning of March 31, 2009, and
promised to reimburse store owners for the pizzas.
Domino’s sponsored CART’s Doug Shierson Racing, which was driven by Arie
Luyendyk and won the 1990 Indianapolis 500. In 2003, Domino’s teamed up with
NASCAR for a multi-year partnership to become the “Official Pizza of

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NASCAR”. Domino’s also sponsored Michael Waltrip Racing and driver David
Reutimann during the 2007 season in the NASCAR Sprint Cup Series.
In June 2018, Domino’s announced that it had started a project to pave over cracks
and potholes on roads in the United States called “Paving for Pizza” to prevent their
pizzas from being ruined, giving cities and towns grants for road repairs. The company
had reached an agreement with four cities and towns,
including Burbank, California; Bartonville, Texas; Athens, Georgia;
and Milford, Delaware to pave their roads. The paved sections feature the Domino’s
logo along with the slogan “OH YES, WE DID”.
30-minute guarantee
Beginning in 1973, Domino’s Pizza offered a guarantee to customers their pizza would
be delivered within 30 minutes of placing an order or they would receive the pizza free.
This guarantee was changed to $3 off in 1987. In 1992, the company settled a lawsuit
brought by the family of an Indiana woman who had been killed by a speeding Domino’s
delivery driver, paying the family $2.8 million. In another lawsuit in 1993, a woman who
was injured when a Domino’s delivery driver ran a red light and collided with her vehicle
was awarded nearly $80 million by a jury, but accepted a payout of $15 million. The
half-hour guarantee was dropped that year because of the “public perception of reckless
driving and irresponsibility”, according to then-CEO Tom Monaghan
In December 2007, Domino’s introduced a new slogan, “You Got 30 Minutes”, alluding
to the earlier pledge, but stopping short of promising delivery in half an hour.
The company continues to honour the 30-minute guarantee for orders placed in its
stores located in Colombia, Vietnam, Mexico, China, and India. The 30-minute
guarantee is subject to the terms and conditions applied in the respective country

Research Methodology
Methodology is the systematic, theoretical analysis of the methods applied to a field of study,
or the theoretical analysis of the body of methods and principles associated with a branch of
knowledge. It, typically, encompasses concepts such as paradigm, theoretical model, phases
and quantitative or qualitative techniques.
A methodology does not set out to provide solutions but offers the theoretical underpinning for
understanding which method, set of methods or so called "best practices" can be applied to a
specific case.
It has been defined also as follows:
1. "The analysis of the principles of methods, rules, and postulates employed by a discipline".
2. "The systematic study of methods that are, can be, or have been applied within a discipline".
3. "The study or description of methods".

Research Objectives
 To observe the satisfaction level at Domino's and how it can improve its strategies in
future to gain more customer attention.

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Critically analyze the Brand strength and perception of Domino's.

 Factor influencing the strength of Domino's.

 To find out the areas of improvement in future prospect of Domino's.

 To know the satisfaction level of the customers of Domino's.

 To spread the awareness of Donimo's among the people.

 To study the consumer perception of Domino's.

Exploratory Research Studies

Exploratory research studies are also termed as formulative research studies. The main purpose
of such studies is that of formulating a problem of more precise investigation or of developing
the working hypothesis from an operational point of view. The major emphasis in studies is on
the discovery of Ideas and Insights.

Sampling Techniques
Convenience Sampling
A statistical method of drawing representative data by selecting people because of the ease of
their volunteering or selecting units because of their availability or easy access. The advantages
of this type of sampling are the availability and the quickness with which data can be gathered.
The disadvantages are the risk that the sample might not represent the population as a whole,
and it might be biased by volunteers.

Data Collection
Primary Data
Primary data are those which are collected fresh and for the 1 time. Questionnaire survey has
been used as the Primary data. 30 questionnaire has been used and filled by different people
between age group of 15-30.

Secondary Data
Secondary data are those which have been collected by someone else already and which have
been through statistical process. Information gathered from Internet, magazines, Domino's etc
is the secondary data in this project.

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 Data Analysis
1. Are you satisfied with the services that are provided by Domino's?

Options No of respondents Percentage (%)

Yes 138 64%
No 72 36%

Interpretation:
From the above survey we get to know about that there are around 64% people says that they
are satisfied with the services that are provided by Domino's, and only 36% says that they were
not satisfied.

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