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The legend of Domino’s Pizza dates back to December, 1960 with the purchase of a small pizza shop in Ypsilanti, Michigan by brothers Tom and Jim Monaghan. The brothers bought the restaurant from friend Dominick DeVarti for USD500 cash and assuming the stores USD8,000 debt (Dicke, 1992). Neither Tom nor Jim had the intention of making the restaurant business their career, but rather saw the opportunity as a part-time venture to help cover the cost of their studies at the nearby University of Michigan.
By June the store was earning a profitable USD400 a week but briskly fell off when students at the University went home for summer.
Faced with the prospect of a slow phase, Jim sold Tom his half of the business in 1961 and changed the name from Dominick’s to Domino’s. The same year, Tom decided to quit school to devote more time to the business. Aware of his lack of experience in pizza making and operations and management, Tom spent much of his time visiting many similar pizzerias around the state acquiring advice on operations and recipes.
By the mid 60’s, Tom had restructured the interior of the store, rearranged all areas and systems, ultimately improving the flow of work in all facets of the operation from order-taking to delivery.
“Monaghan’s system was reminiscent of those developed by the managers of White Castle Hamburger in the 20’s and the McDonald brothers in the 40’s” (Dicke, 1992). The implementation of this system formulized the production process as a unified whole, and included the standardization of materials, clever and thoughtful placement of equipment, and detailed division of labor; all geared to achieve the continuous production of its limited product line.
By 1967, Domino’s emphasis on uniform quality and rapid delivery proved a successful system for operating a pizza shop and therefore provided opportunity for expansion through franchising.
3. HISTORY IN MALAYSIA The company landed in Malaysia in September 1997. Launched by its founder, Tom Monaghan himself, Domino’s Pizza became an overnight sensation. It was so well-received that Domino’s Malaysia’s commissary was recognised in the Annual Domino’s International Audit as the Best Commissary in Asia Pacific. 4. PRODUCTS [pic] Exhibit 4. 1 Domino’s Pizza Customer Benefit Package Domino’s Pizza offers a wide range of meals to its customers. They offer variety of pizza, pasta, side orders and beverages. They have 5 unique pizza crusts i. e.
Classic Hand Tossed, Crunchy Thin Crust, Cheese Burst Double Decker, New York Crust and Extreme Edge to satisfy Malaysian customers’ appetite. [pic][pic][pic][pic][pic] Exhibit 4. 2 Domino’s Pizza 5 unique Pizza Crust Domino’s Pizza also offered numbers of topping such as Ultimate Hawaiian, 7-Meat Wonders, Meatasaurus, Prawn Passion, Chicken Perfection, Tuna Extreme, Prawn Sensation, BBQ Chicken, Aloha Chicken, Extravaganza, Classified Chicken, Plain Cheese, Beef Pepperoni, Chicken Pepperoni, Classic Chicken, Flaming Tuna, Meat Mania, Seafood Delight, Spicy Sambal, Spicy Sausage, Tuna Temptation, Vegie Fiesta and Vegie Galore.
Domino’s Pizza also allowed their customers to customize their pizza by offering 2 options i. e. Make Your Own and Half & Half. [pic][pic][pic][pic][pic] [pic][pic][pic][pic][pic] [pic][pic][pic][pic][pic] [pic][pic][pic][pic][pic] [pic][pic][pic][pic][pic] Exhibit 4. 3 Domino’s Pizza delicious Specialty Pizza & Customize Pizza Domino’s Pizza comes with 3 Signature Pizza Sauces such as Domino’s Signature Sauce, Spicy Sambal Sauce and Top Secret Sauce. [pic] [pic] [pic] Exhibit 4. 4 Domino’s Pizza signature Pizza Sauces.
Domino’s Pizza also serve varieties of side orders such as Chicken Wings BBQ, Chicken Wings Hot & Spicy, Spaghetti Bolognese, Chicken Lasagna, Creamy Custard Puff Desert, Garlic Twisty Bread, Garlic Cheese Onion Rings, BreadStix, Banana Kaya Desert, CinnaStix & Icing and Chocolate Lava Cake. Domino’s Pizza also offers Coca-Cola, Sprite and Fruit Tree Fresh Apple & Aloe Vera for its beverages. The above products are considered primary goods for Domino’s Pizza and these products will ensure that Domino’s Pizza customer’s needs of foods will be fulfill.
Domino’s Pizza has introduced its Unique Selling Preposition (USPs) which includes:- 1. 30-Minutes Delivery Guarantee! – Domino’s is the only pizza company that guarantees customer’s order will arrive within 30 minutes or Domino’s will give its customer a free Regular Pizza voucher; 2. Product Satisfaction Guarantee – Domino’s guarantees satisfaction! Their pizza and side orders are guaranteed to be hot, fresh, and great tasting when they arrives at customer’s doorstep, otherwise Domino’s will replace the product or refund customer’s money.
3. 15-Minute Take-Away Guarantee – Domino’s guarantees customers will receive their Take-Away orders within 15 minutes or Domino’s will give them a free Personal Pizza voucher. 4. Free Delivery – No extra charges for delivery to customer’s doorstep. Domino’s Pizza also introduced discount coupons for its customers’ future purchase. This method is really works for Domino’s Pizza where they tie-up their customer with the attractive offer for future purchase. This will also create loyalty among Domino’s Pizza customers.
Domino’s Pizza also allowed their online customers to pay their orders using credit card where previously they only accept cash payment for the online purchase. The above services can be considered as peripheral services where it will benefit Domino’s Pizza customers and will add confident for the customers to choose Domino’s Pizza rather than other Domino’s Pizza competitors such as Pizza Hut and Papa John. [pic][pic][pic][pic] Exhibit 4. 5 Domino’s Pizza Unique Selling Prepositions (USPs).
Further to the above Domino’s Pizza also obtained a Halal Certification for all its products from Jabatan Kemajuan Islam, Malaysia (JAKIM) which will add more confident to Domino’s Pizza current and future customers. 5. VALUE CHAIN [pic] Exhibit 5. 1 Domino’s Pizza Value Chain It is important to consider how a customer need drives Dominos to create the product. The customer need that drives the entire value chain is the need for a dependable take away restaurant, reasonably priced hot quality food and variety that suits the local palette.
Dominos has focused on these key customer needs throughout the value chain, and has not allowed any digressions in this area unlike other competitors who have evolved a mixed model of full service restaurants and takeaway outlets, or a hybrid combination of both. This has diluted their strengths in the segment Dominos focuses on – Takeaway / Home delivery. Its global operational model allows for lean stores, well-trained staff and flexibility at a country level to customize menus to suit customer tastes.
Operational requirements have prompted the use of technology to make the customer experience more enriching, it has a history of firsts – they were the first to use TV as a distribution channel, an online tracking system that allows customers to track the pizza order and a proprietary point of sale system. A combination of the Company level strategy and the Operational Strategy has resulted in Dominos having a reputation for reliability and consistent pizza quality – these strategies have ensured that Dominos continues to meet its customer needs. 6. OPERATIONS STRATEGY.
Dominos operations strategy mainly focuses on the providing high service quality to the customer: 1. Minimize operations cost: To minimize the operating cost by improving the efficiencies and process at the stores. 2. Strategic store locations to facilitate the delivery service: To leverage the strategic location of the store in order to facilitate quick service to the customer and maximize the revenue. 3. Production oriented store designs: To utilize the production oriented store design in order to facilitate efficient production and quick service to the customer.
4. Efficient order taking, production and delivery: To execute an efficient operational process that includes order taking, pizza preparation, cooking, boxing and delivery. 5. Use of Domino’s PULSE point-of-sale system: Use of Domino’s PULSE system to improve operating efficiencies, provide corporate management with easy access to financial and marketing data and reduce time consumption and expenses. 6. Product and process innovations: To promote an innovative culture that increases both quality and efficiency. 7.
A focused menu: To maintain a focused menu that is designed to present an attractive quality offering to customers, while minimizing order errors, and expediting the order taking and food preparation processes. 8. A comprehensive store operations evaluation program: To utilize a comprehensive store audit program to ensure that stores are meeting both as the expectations of the customers. The Performance Prioritizing would help Dominos in prioritizing its operational strategies based on the order-winning criteria and the current issues it faces in relation to the competition.
1. Excess zone – Dominos invests in promotional strategy to a greater extent as compared to other food chain outlets. It offers many discount coupons to attract customers. Discount offers do help to some extent in attracting customers but too many discount and promotions tend to lower the brand image. So Dominos need to cut down some expenses in that section which will not affect its sales. 2. Appropriate zone – Dominos has got an excellent unmatched home delivery service through which it stays ahead of its rivals. The ? 30-minute luxury?
of Dominos has given the brand a strong image among the customers. This gives Dominos a clear balance between its competitors and customers. 3. Improve zone – Dominos need to improve its product quality in order to maintain reputed. It needs to emphasize on the pizza quality and prioritizing all aspects that relate to the customer. For example, Pizza Hut specifies the calories consumption in each pizza. This reflects the brand concern for the customer. So Dominos should also initiate some measures which would foster the “emotional connection” to its customers. 4.
Urgent action zone – In order to increase the service to customers, Dominos should ensure speedy delivery of pizzas to customers. For this, Dominos need to work on its existing process design. There should be enough space and staff for service and extra machines to handle any machinery failure during peak periods. 7.
REFERENCES 1) http://www. wikipedia. org 2) http://www. dominospizza. com. my ———————– Discount Coupon for future purchase Free Delivery Service Credit Card payment for online orders 15-Minutes Take-Away Guarantee 30-Minutes Delivery Guarantee Pizza Side Orders Beverages.
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