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CASE STUDY : DOMINO’S PIZZA
IN JAPAN
Submitted to:Prof. Pragya Keshri
Submitted By: Anuja Sharma Pankaj Borse Soumya Samaiya
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SOME AMAZING FACTS
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Some Amazing Facts..
Founded in 1960, Domino's is the second-largest pizza chain in the United States and has nearly 9,000 corporate and franchised stores in 60 international markets and all 50 U.S. states.
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A revolution in school pizza! This line of delicious, nutritious pizzas created
specifically for schools is delivered hot and fresh from your local Domino’s Pizza store. Domino’s Pizza Smart Slice is the nutritious food that kids will actually EAT and LOVE!
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• March 2010, Domino’s Pizza opens its 9,000th store worldwide, with dual celebrations in New Delhi, India
• On November 10th,2010, they revealed on their official site, “It will be an hour job in December. Please celebrate the 25th anniversary for Domino’s Pizza Japan, and let’s make Japan full of vigor.”
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Domino’s World’s Fastest Pizza Maker Pali Grewal (right) hoists his trophy after posting a new world record in the championship round, making three large pizzas in just 39.17 seconds. >>>
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CASE HIGHLIGHTS
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Case Highlights• This case basically describes the success story
of Domino's Pizza in Japan.
• They did a proper market analysis with the
help of one consultant who concluded that
“Japan is not ready for Pizza delivery”.
• Y. Higa a Japanese businessman and Domino's
founder Tom Monaghan made a tie-up and
entered into the Japanese market.
• The first outlet was opened in Tokyo's in
• Azabu in 1985.
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• The sales in 1988 was $43 million & by the
year 1989 the no. of outlets reached to 54.
• Higa wanted to stick with 30 min. delivery
promise which was the USP of Domino's
Pizza.
• But it was difficult since the city was very
crowded and to find any address was quite
difficult (Improper house numbers).
• Special 3 wheeler scooters were designed
to in overcome this problem.
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• They adopted simple promotional
strategies to make Japanese people aware
of their product & services.
• Door hanging and direct mail ,including the
fancy menu were used for advertisement
rather than T.V. or Radio.
• From marketing point of view they used to
give 3% of sales of each store into
promotional fund.
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SWOT ANALYSIS
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• Brand Image of Domino’s Pizza
• Dominos operation system
• Diligent ,hard working and team oriented Employees
• Higa’s experience and education
•Increasing no of outlets & sales in a short span of time
•Royalty income was twice if compared to Britain•Promotion Strategies adopted
Strengths
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Weakness
• No restaurant facilities• Small spaced outlets
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Opportunities
• High population density
• High per capita income
• Substantial westernization in Japan
• Wide acceptance of delivery concept
• More working women
• New varieties can also be introduced
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Threats
• High Real estate prices
• Traffic problem
• Infrastructure of the city
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QUESTIONS & ANSWERS
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1.Domino’s Marketing ProgramIn Japan
Market research Location selection (Azabu
district) Promotional programs Home delivery concept Delivery vehicle Distinctive uniform Attractive menu card Domino’s Product and operating method
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2.Adaptation or Standardization
Reasons for standardization: It was internationally standardized
in terms of their uniform, menu, operating system & pizza ingredients such as Dough, Cheese and sauce because they wanted to show themselves as an established Multinational player and also to maintain their brand image in the Japanese market.
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3.Factors contributed to Domino’s success in Japan
Strong determination of Mr. Higa and Tom Monaghan
Market IdentificationRight selection of the location(Azabu district)Standardized approach world wideGuidance of experienced veterans.Brand nameDiligent, hardworking and team oriented
employees
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Thank you