Dominos Australia: Marketing Strategy Based On Consumer Behavior

Consumer Buying Behavior and Dominos’ Marketing

Dominos is an Australian Pizza enterprise that is a franchise of the US-based Domino’s Pizza Inc. basing on the value of the Domino’s in Australia: to deliver value to staff, customers, stakeholders, and shareholders thus need an extensive marketing strategy. The company’s customer profile entails both men and female between ages of 18-39 thus has large customers base. Currently, Dominos owns about 586 stores in Australia thus commands about 32% of the Australian pizza market.

Every successful organization always focuses on consumer buying behavior during the marketing mix development and implementation. Consumers buying behavior thus is based on the purchase decision-making process that is always disturbed by factors such as cultural, social, individual and psychological factors. Dominos’ marketing should be directed by consumer buying behavior. Dominio’s consumer buying behavior is influenced by both the external and internal forces. The external forces that affect consumer buying behavior include social and cultural, social classes. All consumers’ behaviors are depended on other people’s behavior such as family members (Shahid,  Rappon & Berta, 2019). Socialization among the family and friends influences purchase decision making among the little ones (Yuha, Jin, Choi  & Kyungmook 2018).   Proper marketability for the dominos products, the market strategy should focus on the social classes. The global health awareness has also transformed the purchasing behavior of the dominos consumers, as numerous are now focusing on more healthy pizza. The internal factors such as motivations, perception, and attitudes have to influence o consumer behaviors. 

Marketing environment entails forces outside the marketing that directly impacts the marketability of an organization to have a successful relationship with potential customers. The forces include microenvironment and macro environment. The microenvironment refers to the forces that are close to the company to offer good service to the customers such as competitors, company, suppliers, customers, and intermediaries(Madsen & Pilditch, 2018).

A SWOT analysis is a strategic tool to evaluate Strengths, Weakness, Opportunities, and Threats of the organization.

Strength Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Strong service facilities	Australia Domino’s pizza poses strong service facilities that enable quick delivery of orders within the shortest time possible.
Popular brand name	The popular brand name across many countries obtained from the operations of the global franchise help in retaining customers’ loyalty.
Innovative skill	Domino has a strong, innovative skill that enables it to become the first pizza producer to use hot cell bags that improved the efficiency of delivery of pizza
	Efficient and effective supply chain	Dominos has a strong distribution channel that enables the company to deliver pizza to customers without delay or faultiness
Weakness	High fat and calorie foods	Pizza is perceived as one of the foods with high calories and fat, thus affects the health of many consumers. Due to this many people look for alternatives.
	Limited market growth due to high competition	Stiff competition from Pizza Hut and others reduces domino’s market share thus weakening its operations in Australia.
Opportunities	Improved delivery	With technological advancement, Domonic has an opportunity in using technological applications such as iPhone apps  to improve on the delivery efficiency
	New target market	Dominos has an opportunity in targeting Australian youths such as in Melbourne that has a high growth rate.
Threat	Stiff competition	Domino faces stiff competition from various competitors such as Pizza Hut, Eagle Boys that reduces its market share and revenue collection.
	Entrants of quick service restaurants	The entrance of other quick services restaurants tens to offer a close substitute to pizza such as crazy bread, thus affecting the daily sales.
	Increasing consumers’ health awareness	Over the past decades, consumers’ health awareness has increased. Thus many opt for more healthy products rather than high fat calories products such as pizza. This reduces the number of consumers and daily sales.

suppliers	Provide resources that are instrumental in producing the required goods and services. Domino has a great number of suppliers such as San Joaquin that provide Mozzarella e cheese. The mozzarella cheese has great taste and quality that enables in maintains the product value and customer’s experience from the pizza. Other suppliers include Precision Tracking GPS company that help in locating delivering products to customers who have made orders online.
customers	Customers form forces that purchase the company’s products. Dominos focus on both men and female aged between 18-39 years and love going out to eat. However, the company initiated a new marketing strategy known as “freebie” to attract the attention of teenagers, who were not initially targeted(Xin, Yun  & Shuojia, 2019).
Competitors	The competitors refer to alternatives that serve the same market with similar product or substitute, thus reducing the company strategic and competitive advantage. The potential dominos computers are Pizza Capers, RFG’s Crust.
Company	Company entails all the internal departments that collaborate to facilitate the effectiveness of the organization. These include management, finance, accounting, and research development departments. Dominos
intermediaries	Intermediaries refer to distributors who aid in ensuring the availability of products to the consumer at the right time and cost. The intermediaries are significant in the distribution channels of an organization, and they include wholesalers, brokers, agents, and retailers.

Currently, over one in three ordered pizzas are delivered by dominos. The company command 45% of the Australian pizza market share followed by Pizza Hut at 35% and others occupying the remaining percentage(Sheehan, 2014). However, it faces stiff competition from other key players such as Pizza Hut, Pizza Capers, and Little Caesars among many others.

Pizza Hut is an American international restaurant chain that specializes in Pizza and pasta alongside desserts and side dishes. Pizza Hut focuses on the general customers that entail out-going families, school teenagers as well as college students. The consumer profiling is as below.

Products	Demographic	Topographical	Occupation	Social Class
pizza	10-40 years both male and female	Casablanca, Tangier, Rabat, Agadir	Young professionals	Middle and upper class
Soups and salads	8-40 years both male and female	Casablanca, Tangier, Rabat, Agadir	Young professionals and students	All categories
Hot and Cold drinks	All ages and most preferably above 25 years	Casablanca, Tangier, Rabat, Agadir	Executives and young professionals	Middle and upper class

Factors Influencing Consumer Buying Behavior

Little Caesar Enterprises Inc is ranked as the third largest Pizza chain in the United States and operates in other countries such as Australia, Canada, and Asia. The company specializes in pizza that ranges from Hula Hawaiian, Treat, Ultimate Supreme Pizza, and Veggie pizza.  Additional products include Italian cheese bread and Caesar wings.

Product	Demographic	Geographical	Economic	Social
Pizza	10-39 years both male and females	Casablanca, Tangier, Rabat, Agadir	Executives and young professional	Middle and upper class
Bread	4-60 years both male and females	Casablanca, Tangier, Rabat, Agadir	Students and young professional	All categories
Caesar wings	10-60 years both males and females	Casablanca, Tangier, Rabat, Agadir	All categories	All categories

Every business organization gets affected by macroenvironmental forces that either decrease or increase the product’s development need to ensure continuous market commandd. Therefore, it is upon the organizations to identify the macro-environment forces, analyze them and implement the best recommendations(Hipp & Roussell, 2013). The forces entail demographic, political, economic, social and cultural and technological.

Economic environment covers the amount of disposable income that dictates the purchasing power of the customers (Bhattacharya, 2014). With the high amount of disposable income, people tend to spend more in buying goods and services; thus when the disposable income is low, people tend to shy away from spending on the luxurious things such as pizza. In a weak economic situation that might be brought about by the recessions of job loss, luxuries’ companies tend to face the impact more than non-luxurious companies/products (Mandel, Rucker,  Levav  & Galinsky, 2017). Analyzing and understanding the economic status helps the organization to make better production plan to reduce wastages the Australians economic growth has been growing over the past decades.  

Every country possesses varied culture and social classes that directly impact the taste, attitude, and preferences of members. The attitudes and preferences determine the purchasing behavior of the consumers, thus in Australia where collectivism is paramount, social class and family plays a major role in the consumption trend. Australia is composed of numerous races of people, both indigenous, and nonindigenous. The varied types of race tend to affect the business culture by providing wide taste and preferences requirements(Kandaurova, 2012). This directly affects the dominos operations since it has to satisfy the large customer base, through developing a variety of brands within the same product concerning cultural background and beliefs too. 

Technological advances have the needs dramatically and want of people. In the new technological world, people are more concerned with fast service that is providing through technological applications. Domino’s pizza enjoys global technological advancement. Dominos was the fits company to launch a web-based ordering system for its customers with an aim to increase service quality by reducing the delivery time (Freeman et al., 2014). Dominos possess pizza checker that majors in taking aerial photos above the cutting board and checks on the scratches through artificial intelligence. The new technology allows only high-quality pizza to be served to customers.  

Microenvironment and Macroeconomic Environment

Demographics entails changes that take place among people concerning size, density, location, gender, occupation, and race. The varied character of the projected customers has a direct impact on the organization’s performance. The Australian population tends to be aging since the youthful age percentage keeps on dropping after some time. For example, between 2001-2002, the youthful age dropped by 22 % while the old age of above 65 grew by 8%. This implies that the purchasing power of the population also drops, reducing the revenue percentage of the organization. According to Yavorska and   Svitlychna, (2016) the unemployment rate in Australia fell by 5.7 % due to the numerous job opportunities created.

The natural environment entails all the physical factors that directly affect the operations of the company. These include weather, natural disaster, and climatic change among many others(Rickards, Neale & Kearnes, 2017). Climatic change has a direct impact on the availability of raw materials. For example, during dry and hot seasons, it’s very difficult to get a milk product that is used in making pizza and cheese as well (Grafton & Little, 2016). On the other hand, the rainy seasons affect the distribution channel of the products as the common mode of transportation is a road. During the rainy seasons, it makes it difficult for the vehicles to reach their destination safely.   

Australia has a stable democratic government that supports laws allowing business entities in most of the various parts of the country. Australia’s policymaking process is transparent; however, the federal government tends to have frequent compromise with minor parties in the Senate. The weak instability at times disrupts business activities thus leading to high losses by the business organizations. For example, in 2017, the Queensland state government prevented the Carmichael coal mining through its veto power (Pestel, 2014). The mining led to a loss of about $2 billion.  Other Australian legal factors include anti-trust law restaurants that regulate the price fixing of the food items(Curtin, 2016). The law requires the food operators to fix the food prices without collaborating with the competitors.  

Conclusion

From the above exploration, it is evidential that both micro and macro environmental factors have a great impact on business operations. Microenvironment factors such as competitors, company, suppliers, customers, and intermediaries. These factors are easy to manage as they are within the control of the organization; therefore, it is upon every organization to analyze and manage them concerning the objective and vision. Dominos have succeeded in utilizing the microenvironmental factors that enable it to have a mutual association with the stakeholder. The macro environment entails forces that are beyond the control of the organization and include political, environmental, economic, social and cultural, and technological. The forces need collaboration and adaptation to ensure the continuity and gain of competitive advantage of the company. Dominos, have embraced all the macro environmental factors to have smooth operations in the environment. 

References

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