Evaluating the Domino’s Pizza marketing expenses that has been provided for the year 2020, there is a significant difference with the rival firms. Evidently, Domino’s Pizza spent $462,000 in their advertising expenses as compared to the $395,000 for the Pizza Hut and $77,000 used for the same period by Papa John’s. On the other hand, looking at the perpetual map, the Domino’s Pizza falls on the category for the excellent customer services that has been characterized by low prize. Obviously, it is a completely different scenario as compared to what its competing firms presently fetch in the same market.
There are different factors that can explain how Domino’s Pizza’s presented report for the three parts of the assignment were in one way or the other influenced analysis prepared in previous tasks. First of all, one of the main reason why 2020 Domino Pizza advertising expense was relatively higher is due to the fact that the company used multiple channels and options as opposed to their competitors. The main reason for doing so was to reach a wider market that could translate to an increase in sales and profits in the long run. Additionally, the cost of advertisement for the Domino Pizza could be higher considering that the company’s part of objective was to enter new markets that they were not operating in the previous operations. Moreover, they could have utilized advertising tools and channels that are way too much expensive as compared to what their competitors have prioritized.
On the other hand, the presented perceptual maps illustrates that Domino Pizza has unlimited competitive advantage over their competitors in different ways. For example, the company can gain an absolute competitive advantage in terms of attracting a set of new client via low pricing method but offering a flawless customer service. Additionally, the company’s excellent customer service could be as a result of client’s satisfaction in term of timely delivery, quality product, and quick response to any kind of complaints.
There are different strategies that Domino’s Pizza can capitalize on and possibly add value to their business. First of all, the company should not only use expensive advertising models but also utilize the current and most appealing ones. For example, as opposed to paying television and poster adverts, which are still expensive, the organization can invest in social media advertising such as Instagram, YouTube and Facebook to reach their clients (Chiang et al., 2019). Moreover, the organization can still offer excellent customer service and charge high prices depending on the category of the customers. In other words, a price segmentation should be done whereby a product can be priced highly depending on the locations of the outlet and the target clientele base (Espinet & Gassiot-Melian, 2020). Still, the company will be able to maintain its profitability levels.
Last but not the least, I would highly encourage a decentralized organizational structure for Domino’s Pizza for few reasons. One is that this kind of structure offers all employers starting from the top to the bottom the required autonomy and freedom to perform their work without any kind of interference (Chión et al., 2019). As a result, the employees are motivated to perform their role considering that they feel no internal and external interference could affect their work (Chión et al., 2019). This kind of structure if adopted by Domino’s Pizza Company could aid the management to easily responding to the emerging and challenging business need in a modern and efficient manner.
Chiang, I. P., Wong, R., & Huang, C. H. (2019). Exploring the benefits of social media marketing for brands and communities. International Journal of Electronic Commerce Studies, 10(2), 113-140. Web.
Chión, S. J., Charles, V., & Morales, J. (2019). The impact of organisational culture, organisational structure and technological infrastructure on process improvement through knowledge sharing. Business Process Management Journal, 26, 1443-1472. Web.
Espinet, J. M., & Gassiot-Melian, A. (2020). An analysis of price segmentation in the cruise industry. Journal of Revenue and Pricing Management, 19(3), 162-189. Web.