Marketing Management
Final Project: Marketing Promotion
Domino’s Pizza
Date: 6/25
TEAM: D. S
9631005
9631007
9631012
9631025
9521011
余柔誼
梁容容
馬瑞雲
蔡易群
蔡興翰
Content
I. Introduction
II. Literature Review
III. Hypotheses
IV. Methodology
V. Research Analysis and Results
VI. Conclusion
VII. Reference
I. Introduction
Domino’s pizza is an international pizza delivery corporation, which is established in 1960
by Tom Monaghan. The corporation was headquartered in Michigan, United States. It was the
second-largest pizza chain behind Pizza Hut, with about 8,500 franchising stores around the
world. They focused on fast delivery of products.
The first Domino’s pizza in Taiwan opened on November, 1989. Since then the brand had
become the leading brand of delivery pizza. According to the survey form itself, the business in
Taiwan area had the fastest growing rate. Now there are over 119 stores in Taiwan area.
We live in a globalized world. Just like cultures, foods and eating style are exchanged by
people around the world frequently. Pizza chain stores, like fast food stores mushroomed all over
the area. Therefore, pizza became a common food in Taiwan and people often related it to the
idea of gathering, celebrating or sharing. Eating pizza is quite popular for students in NCTU.
However, due to the current economic crisis, their business is going down, and it is much worse
than before.
According to the current business statement, we can define the following problems: the
business crisis occurring currently has made people reduce their expenditure on parties and
gatherings. So when it comes to choosing food, people prefer to pay only for their own share.
Therefore, we are trying to find out whether a certain type of promotion could attract customers
and increase the sales of Domino’s Pizza. We have developed three types of promotion for
Domino’s Pizza, and are going to test which one is the most preferred by NCTU students.
We hope to understand whether the idea of pizza promotion is effective or not, and whether
changing the business design of Domino’s Pizza is necessary.
II. Literature Review
The term innovation means a new way of doing something. It may refer to incremental,
radical, and revolutionary changes in thinking, products, processes, or organizations.
“The way to thrive consistently in an environment nowadays is by innovating – innovating
in technologies, innovating in strategies, innovating in business models.”
Sam Palmisano, CEO
of IBM, stated at an innovation- themed leadership conference recently. Indeed, success in
business today does demand innovation. The environment is always on the change, so it’s up to
the company to do its best to gain flexibility and to respond quickly.
Innovation is not only influenced, or stipulated, by improving technology, but also by
consumers. People get bored easily, making those companies who cannot gain an edge in
consistence attraction in customer’s interest easily eliminated.
Understanding external environments is the key to understanding the future today. Retailing
operates in an open environment. This open environment consists of socioeconomic,
technological, and legal environments and the behavior of competitors, channel member, and
consumers. Changes in the environment today are lead indicators for retail developments in the
future. Socioeconomic, technological, or legal environment changes behavior by competitors,
channel members, or consumers, and this stimulates strategic redirections in retailing (Retail
management, Lusch and Dunne, Page.702).
Changing demographic and economic factors are not sufficient to explain changing
consumption patterns in U.S.; an understanding of psychographic is also fundamental.
Psychographic is the examination of the activities, interests, and opinions of a meaningful
segment of the population, Psychographics is commonly referred to as life-style analysis by
retailers. An example of the latter would be McDonald’s using life-style positioning to achieve its
market dominance. McDonald’s achieved this dominance by selling only on specialty
product-hamburgers, when other fast food restaurants offered complete menus, Its menu appealed
to young couples with children, who wanted to avoid long waits and the resulting opportunities to
spill drinks, make messes, etc(Retail management, Lusch and Dunne, Page.124).
The example of McDonald’s tells us that a whole new idea in selling products can be an
attraction to consumers; convenient, time-saving, and specialty products are clearly incentives for
making consumers want to make a purchase.
III. Hypotheses
Students in NCTU would normally only order pizza delivery on special events. Though
Domino’s Pizza provides delivery service, and enjoys a fair amount of customers, recently we
have noticed that students are gradually turning more to Pizza Hut. This is because the value
perceived from us students are changing. Domino’s Pizza provides low price median quality;
while Pizza Hut provides high price high quality. To position the value of both brands, Domino’s
lines with “the same for less”, and Pizza Hut lines with “the more for more”. The difference in
expenses matter little to students, so naturally students turn to the brand with the better taste.
It is in our interest to think of a way that would help Domino’s recapture customer value. We
want to turn Domino’s Pizza into something that’s more than just a normal pizza delivery. We
think that Domino’s has the potential to profit consistently in the form of a restaurant. To put it in
a more impressive term, a pizza restaurant with a famous brand. We have designed three different
kinds of restaurant themes for Domino’s Pizza, each of them illustrates different creative ways of
selling pizza. While Domino’s still remains its original features, we now slightly turn the
spotlights from groups to individual customers. We now can know whether these promotions can
attract the interest of NCTU students and turn their heads away from Pizza Hut. Therefore, the
following hypotheses are proposed:
Hypothesis 1:
Students of NCTU would want to make pizza purchases as an individual.
Hypothesis 2:
If pizza is sold to customers in singular slices, their desire to purchase would
increase.
Hypothesis 3:
Among the three kinds of promotion samples, ‘sample A : meals ‘ is the
preference among NCTU students.
VI. Methodology
Our target sample for this research consists of NCTU students, those who have heard of or
have had experience with Domino’s Pizza. 30 questionnaires will be distributed among
classmates and around the campus.
After the individual hypotheses were developed, we examined it by using artificial
explanation and T-test in the first step of analysis. We conducted T-test to assess the most
influential factor to students’ consumption willingness at Domino’s Pizza, and prove whether or
not our hypotheses are true.
For the questionnaires, we have developed three types of innovative themes for Domino’s
Pizza. We described these three themes to the interviewees and asked them some question about
the new designs, and thus have tested and collected the results of customers’ reaction toward
them. The three themes are under the assumption that the pizza of Domino’s remain the same
quality.
The first theme is ‘meals’. Similar to McDonald’s, Domino’s Pizza now offers combo meals.
Apart from the main dish ‘pizza’, which comes in different sizes, there are side dishes such as
fried chicken, French fries, salad, soft drinks, breakfast items, and desserts. Domino’s Pizza now
does not only offer delivery service and counter service, but also drive-through service.
The second theme is ‘bar’. This theme is somewhat like a buffet, different flavors of
freshly-baked pizzas are displayed on a counter along with some side- along dishes. Customers
can just grab a tray and pick any amount of food they want, then pay for it at the checkout counter,
both time-saving and convenient.
The third theme is ‘DIY’. Similar to Subways, samples of the ingredients of the pizza are
displayed behind the counter. Customers can first choose how many pieces and the sizes of pizza
they want, and then show the clerk what ingredients they want by saying or pointing, thus
creating their very own recipe. After that, the freshly-made pizza(s) would be put in the oven for
baking.
All three themes are new types of promotion we designed for Domino’s Pizza, each giving
customers different experiences in eating pizza. We think that the only way to recapture
customers value, is to try make pizza become a part of our everyday life. Students can now eat
pizza anytime they want. In the first theme, we offer students a whole new option of fast food
store other than just McDonald’s or KFC; in the second theme, Domino’s Pizza can try out more
new recipes, cause it will be more appealing for students to try out a new flavor when it comes in
a single slice instead of a whole piece; and third theme is for people who likes to try out new
stuffs. In either way, it provides incentive for customers to come and consume, so as to increase
the sales of Domino’s Pizza.
V. Research Analysis and Results
Hypothesis 1:
Students of NCTU would want to make pizza purchases as an individual.
To test the hypothesis 1, we listed 5 questions:
1. Do you know “Domino’s Pizza?”
Yes
No
30
0
Fig.1: The percentage of NCTU students who have ever heard of Domino’s Pizza.
2. Have you ever ordered “Domino’s Pizza?”
Yes
No
28
2
Fig.2: The percentage of whether or not NCTU students have ever ordered Domino’s Pizza.
According to the first and second question, we know that every NCTU students know about
Domino’s Pizza, and 93 percent of NCTU students have ordered pizza from them. We can
conclude that Domino’s Pizza is well-known among NCTU students.
3. How many slices of pizza do you need in order to be satisfied?
In average, how many slices of pizza do you have when sharing pizza with other people?
We compare the answers of these two questions, and then conclude the degree of satisfaction
when NCTU students have pizzas in groups.
hungry
satisfied
too much
20
7
3
Fig.3: Each segment means the percentage of how NCTU students feel when sharing pizza with
other people.
67 percent, which is a big portion, of NCTU students are still hungry after they have pizza
with others. It is evident that their need isn’t satisfied when having pizzas in groups.
4. Do you ever find that your choice in flavor is limited when in a group order for pizza？
Yes
No
17
13
Fig.4: The percentage of whether or not students ever find that their in flavor is limited when in a
group order for pizza.
It is a common thought that everyone would want to choose the flavor they prefer. We can
see from Fig.4 that there are 57 percent of NCTU students have felt that their choice is rather
limited when the flavor is decided by the entire group. They have to compromise with other
people in the group. But if they were to order pizza alone, there will be no such problem.
5. Have you ever been discouraged in ordering pizza from failing to gang up enough people？
Yes
No
22
8
Fig.5: Percentage segments of NCTU students of whether or not they have ever gave up due to
not having ganged up enough person
There are 73percent of NCTU students who have found themselves in a situation where they
want to eat pizza, but if it were not for reasons like not being able to find enough people or that
they find an entire piece of pizza too much, they gave up the thought of ordering pizza. It’s a pity
that so many students cannot have pizza as they would like to, we figure that if Domino’s Pizza
were to slightly change their focus to individual customers, their sales would increase.
Hypothesis 2:
If pizza is sold to customers in singular slices, students’ desire to purchase
would increase.
To test hypothesis 2, we make it easy to compute by setting five options into score. That are
“Very attractive/important” = ’5’; “attractive/important” = ’4’; “So-so = 3; Not attractive/not
important” = ’2’;”Not attractive/not important at all” = ‘1’.
Question 1: Does this idea sound appealing to you and therefore would make you willing to
make a purchase?
Fig.6: The proportion of how consumers are attracted by pizza sold in singular slices.
Very
Attractive
Not
Not attractive
attractive
at all
So-so
attractive
Total
Score
5
4
3
2
1
---
Count(n)
1
9
17
3
0
30(N)
5
36
51
6
0
加權
98
score(xi)
Average( x̅ = ∑5i=1 xi ⁄N)
σ2=∑(xi − x̅)2 ⁄n − 1
3.266667
0.478161
Table 1: Statistics of T-test when test value is 3
Statistics of T-test
Test value ＝3
95% Confidence interval
Level of sig.
T
attractiveness 2.1122
df
29
(two-tail)
Lower bound
Upper bound
.05
-3.00848
3.52488
Table 2: Statistics of T-test when test value is 3
More than half of NCTU students who answered this question doesn’t show much
enthusiasm to the idea of selling pizza in singular slices. We think the reason is that the students
here in NCTU might not yet be ready to change their perceptions of eating pizza, and have not
yet put too much thought on this new experience.
Question 2: What kind of reason would make you come and purchase this new product？
Factor 1: A pizza personally tailored for the customer.
Fig.7: The percentage segments of what the students think of factor 1.
Not
Very
total
Not
Important
So-so
important
important
important
at all
Score
5
4
3
2
1
---
Count(n)
4
11
11
4
0
30(N)
20
44
33
8
0
105
Weighted
score(xi)
Average( x̅ = ∑5i=1 xi ⁄N)
σ2=∑(xi − x̅)2 ⁄n − 1
3.5
0.810345
Table 3: Statistics of T-test when test value is 3.
More than 50 percent of NCTU students seem to like the idea of a pizza especially tailored
for them. We think this is maybe due to the fact that this is a whole new type of pizza-eating
experience.
Factor 2: Customers can choose freely among any flavors.
Fig.8: The percentage segments of what the students think of factor 2.
Not
Very
total
Not
Important
So-so
important
important
important
at all
Score
5
4
3
2
1
---
Count(n)
8
16
4
2
0
30(N)
40
64
12
4
0
120
Weighted
score(xi)
Average( x̅ = ∑5i=1 xi ⁄N)
σ2=∑(xi − x̅)2 ⁄n − 1
4
0.689655
Table 4: Statistics of T-test when test value is 3.
More than 90 percent of NCTU students think that the idea of being able to choose freely
among pizza flavors is important. We conclude that this, on some level, have something to do
with people feeling limited in selecting flavors when in a group order for pizza.
Factor 3: You can choose the amount of pizza you feel fit.
Fig.9: The percentage segments of what the students think of factor 3.
Not
important
at all
total
So-so
Not
important
4
3
2
1
---
11
9
7
1
2
30(N)
55
36
21
2
2
116
Very
important
Important
Score
5
Count(n)
Weighted
score(xi)
Average( x̅ = ∑5i=1 xi ⁄N)
σ2=∑(xi − x̅)2 ⁄n − 1
3.86667
1.36092
Table 5: Statistics of T-test when test value is 3.
More than 67 percent of NCTU students find that whether or not they can choose the
amount of pizza they personally prefer important. We can conclude the fact that in normal
occasions, students do find that sometimes there is too much and sometimes there is too little
pizza to eat.
Factor 4: Convenient ( No need to rally several people in order to order a pizza)
Fig.10: The percentage segments of what the students think of factor 3.
Not
Very
Not
Important
So-so
important
important
Total
important
at all
Score
5
4
3
2
1
---
Count(n)
10
13
4
1
2
30(N)
Weight
score(xi)
50
52
12
2
2
118
Average( x̅ = ∑5i=1 xi ⁄N)
σ2=∑(xi − x̅)2 ⁄n − 1
3.93333
1.236782
Table 6 Statistics of T-test when test value is 3
Test value＝3
T*
df
T
Mean
1.
3.0422
29
1.699
3.5
2.
6.5954
29
1.699
4
3.
4.0690
29
1.699
3.866667
4.
4.5968
29
1.699
3.933333
Table 7: Comparison of the 4 factors.
Hypothesis 3:
Among the three kinds of promotion samples, ‘sample A : meals ‘ is the
preference among NCTU students.
Promotion A
Very attractive
Attractive
So-so
Not attractive
Not attractive at all
0%
7%
17%
30%
46%
Very
Attractive
So-so
Not attractive
Not attractive
attractive
5
Ave.
σ2
3.7333332
0.685057
at all
14
9
2
0
Fig.11: The percentage segments of what the students think of theme ‘meals’.
Promotion B
Very attractive
Attractive
So-so
Not attractive
Not attractive at all
4% 0%
23%
23%
50%
Very
Attractive
So-so
attractive
7
15
7
Not
Not attractive at
attractive
all
1
0
Ave.
σ2
3.933333
0.616092
Fig.12: The percentage segments of what the students think of theme ‘bar’.
Promotion C
Very attractive
Attractive
So-so
Not attractive
Not attractive at all
3%
7%
7%
23%
60%
Very
Attractive
So-so
attractive
2
7
18
Not
Not attractive at
attractive
all
2
1
Ave.
σ2
3.233333
0.667816
Fig.13: The percentage segments of what the students think of theme ‘DIY’.
To test hypothesis 3, we quantify our data by setting ‘5’ = “Very attractive”; ‘4’ =
“attractive”; ‘3’ =”So-so”; ’2’= “Not attractive”; ‘1’ = “Not attractive at all”. Under the T-test, we
set the test value of 3.5 in the beginning because we want to know whether these ways to promote
are attractive or not as we can see it from Table 3.
We assume that the value which larger than 2 indicates potential for consuming. The
Promotion A and B both have T test larger than t0.05, therefore, Promotion A and Promotion B
could work according to 95% confidence. However, Promotion C has a t value less than t0.05, so
Promotion C may not work according to 95% confidence.
Comparing the t value of Promotion A and t value of Promotion B, the later has larger value,
therefore, Promotion B is the most popular one according to 95% confidence. The hypothesis
needs to be rejected since Promotion A fell to the secondly popular one.
Test value＝2
T
df
P value
Mean
Promotion A
2.0941
29
0.0268
3.733333
Promotion B
2.4631
29
0.0100
3.933333
Promotion C
1.5094
29
0.1256
3.233333
Table 8: Statistics of T-test when test value is 2.
VI. Conclusion
From the research we made above, we found that the result from the research questions or
questionnaire accept two out of the three hypotheses we made, one being rejected. Hence, we
came up with the following conclusion:
It is true that the NCTU students have the experience that they could not be satisfied from
purchasing pizza in group form. They are not satisfied because of the quantity of pizza or the
flavors. Furthermore, a high percentage of the students had gave up purchasing pizza because
they could not find enough people to share it with. As a result, they would rather prefer making
pizza purchases as an individual. Due to the existence of this circumstance, we provided new
ways of pizza promotion. We wanted to test if they would like our promotion due to several
factors. Among the four factors considered while consuming pizza, we found out that the
customization of flavor of pizza is the most important factor that people chose to purchase
individually. The second factor is the freedom to select how many slices of pizza. The
calculations also showed that all factors will lead students to consume pizza as an individual, in
other words, if pizza is sold to customers in singular slices, their desire to purchase would
increase.
The final conclusion we made is from the analysis of the three kinds of promotion samples.
According to the data, ‘Sample A’ and ‘’Sample B’ are attractive but ‘Sample C’ failed to be
attractive to students. Sample B’ is the most preferred by NCTU students. Therefore, our
assumption that ‘sample A: meals‘ is the preference among NCTU student among the three kinds
of promotion samples is not correct. We found that students like buffet form while purchasing
individually best.
Therefore, individual pizza can be promoted, and the buffet form is most popular among
NCTU students.
VII. Reference
1.
Sam Palmisano (2005), “The way to thrive consistently in an environment nowadays is by
innovating – innovating in technologies, innovating in strategies, innovating in business
models.”
2.
Lusch and Dunne, Retail management. Page.124 and Page.702.
3.
Stephen P. Robins and Mary Counter (2008), Management: Managing Innovation
4.
Armstrong and Kolter (2008), Marketing: An Introduction. Page.263-293 and Page.289-318.
5.
Richard A.J. (2007), Probability and Statistics for Engineers. Page.240-246.
<Appendix 1> Questionnaire in English
Hello! We are students of National Chiao Tung University. We are currently under research for
our marketing class, finding out what NCTU students think of our new marketing promotion. We
therefore thank you for taking your precious time in doing our survey. Please fill in the blanks
and leave us your valuable advice! We appreciate your assistance and cooperation.
I. Problem Definition
1. Have you ever heard of “Domino’s Pizza”?
□ Yes
□ No
2. Have you ever had experience in “Domino’s Pizza”？
□ Yes
□ No
3. How many slices of pizza would you eat on a normal occasion？____ slices.
What’s your share of pizza whenever there’s a group purchase？___ slices.
4. Do you ever find that your choice in flavor is limited when in a group order for pizza？
□ Yes
□ No
5. Have you ever been discouraged in ordering pizza from failing to gang up enough people？
□ Yes
□ No
II. Suppose that “Domino’s Pizza” have successfully implemented a way to sell pizza in singular
slices. Customers can now choose accordingly the amount(slices) and the flavor they prefer.
1. Does this idea sound appealing to you and therefore would make you willing to make a
purchase？
□extremely □very □yes
□not really □no
2. What kind of reason would make you come and purchase this new product？(multiple)
a. A pizza personally tailored for you
□very important
□important
□so-so
□not important
□not very important
b. Can choose freely among flavors
□very important
□important
□so-so
□not important
□not very important
c. Can choose the amount of pizza you feel fit
□very important
□important
□so-so
□not important □not very important
d. Convenient( No need to rally several people in order to order a pizza)
□very important
□important
□so-so
□not important □not very important
3. According to the selections above, please arrange the selections in the order that you feel the
most appealing to you (EX: a > b > c > d)
______________
4. Is there any other reason that is not listed above would make you want to come and purchase?
III. Comparison of three different theme promotions
A. Theme ’meal’: Singular slices of pizza comes with beverage and other side dishes, just like
Mc Donalds.
B. Theme ‘bar’：Different flavors and many slices of already-made pizzas are displayed on a bar,
customer can feel free to choose whatever they want,
C. Theme 'DIY’: You can choose the size of pizza you want, select and combine the
ingredients to match your very own liking.
1. To what degree would you come and have an experience in Theme A?
□very much
□very □so-so
□unlikely □very unlikely
2. To what degree would you come and have an experience in Theme A?
□very much
□very □so-so □unlikely □very unlikely
3. To what degree would you come and have an experience in Theme A?
□very much
□very □so-so □unlikely □very unlikely
4. Please rank the themes according to your preference
□ theme A □ theme B
IV. Personal Data
1. Gender
□ male
□ female
2. How often do you eat pizza?
□ less than a month
□ a month
□ three months
□ six months
□ more than six months
Thanks for your help!
□ theme C
<Appendix 2> Questionnaire in Chinese
您好！我們 Yes 交通大學管理學院管理科學必修行銷課的學生，正在進行銷的研究，目的
在探討交通大學學生對於我們假設的新行銷方法的看法。非常感謝您在百忙之中抽空填寫
問卷，並給予我們寶貴的意見！
一、問題界定
1. 請問您 YesNo 知道「達美樂」?
□ Yes
□ No
2. 您 YesNo 曾消費在「達美樂」？
□ Yes
□ No
3. 平常吃幾片 pizza 才會飽？____片
團體訂購 pizza 時平均會被分到幾片？___片
4. 團體訂購時 YesNo 會因為遷就他人而無法選擇自己想吃的口味？
□ Yes
□ No
5. YesNo 曾經因為找不到人合訂 pizza 而打消吃 pizza 的念頭？
□ Yes
□ No
二、假如現在達美樂採行了「單片銷售」(個人化份量和口味的 pizza) 的行銷方法:
1. YesNo 會吸引你前來消費？
□非常想要 □想要 □普通 □不太想 □非常不想
2. Yes 什麼樣的因素，吸引你前來消費單片 pizza？(可複選)
a.可以量身訂作 pizza 口味
□非常重要 □重要 □普通 □不重要 □非常不重要
b.可以挑各種口味
□非常重要 □重要 □普通 □不重要 □非常不重要
c.可以挑自己要的片數
□非常重要 □重要 □普通 □不重要 □非常不重要
d.方便(不用找人合買)
□非常重要 □重要 □普通 □不重要 □非常不重要
3.根據上面選項，吸引您前來消費的考量重點依序 Yes(例如:a>b>c>d)______________
4. YesNo 有以上未提到但影響你前來消費的其他原因?
三. 行銷方案的比較
A. pizza 套餐方案：單片 pizza 像漢堡一樣，搭配飲料和附餐出售。
B. 吧檯 pizza 方案：可自己選擇吧檯的 pizza 口味，選擇自己要的口味和片數。
C. 客制化 pizza 方案：pizza 店能替您量身製作單片 pizza，並且 Yes 您指定的 pizza 口味。
1.方案 A 讓您想要消費的程度？ □非常想要 □想要 □普通 □不想要 □非常不想要
2.方案 B 讓您想要消費的程度?
□非常想要 □想要 □普通 □不想要 □非常不想要
3.方案 C 讓您想要消費的程度?
□非常想要 □想要 □普通 □不想要 □非常不想要
4. 請排列出會增加您消費意願的順序
□ A 方案 □ B 方案
四、個人資料
1. 請問您的性別 Yes
□ 男
□ 女
2. 請問您平均多久消費一次 pizza 店？
□ 小於一個月
□ 一個月
□ 三個月
□半年
□ 半年以上
本問卷到此結束，謝
□ C 方案
25