Dominos Pizza Case

SUBJECT AREA STUDY (SCOPE):

Domino's Pizza UK and Ireland is a Master Franchise of the Domino's brand, which is situated all around the United Kingdom with 134 franchises and each of them operates 5 stores, averagely (Riley, 2010). The long-term strategy of the company is to open 1200 stores by 2021, which seems real that, executive board has already identified 1249 possible store locations throughout the UK and Ireland (Annual Report & Accounts, 2010).

The coverage of the project consisted of business development strategy, market share, operational management of the stores and the implementation of the strategy.

In order to achieve the strategic goals company have to improve its efficiency by improving customer service. The survey is conducted in order to check customer satisfaction and the service provided by the company in the UK. The survey reveals customers' opinions about service, delivery time, price and online services.

INTRODUCTION:

The first Domino's Pizza store was launched by Tom Monaghan in 1960 in Michigan, USA. Initially it was called DomiNick's until 1965. The three dots in the logo mention the number of stores when it was newly opened (Company information, 2011).

In 1985, Domino's Pizza was able to open its first store in the UK. It was followed by the first store in Republic of Ireland in 1991. The brothers, Gerry and Colin Halpern, decided to purchase the franchising right of the company in the UK in 1993. Until then, it was controlled by the owners from the USA (Company information, 2011).

Nowadays, Domino's Pizza owns more than 9,350 stores all over the world, in about 70 countries. There are more than 175,000 people working for the Domino's Pizza and about 2000 franchisees worldwide. Overall, Domino's Pizza sells more than one million pizzas on each day globally (Company information, 2011).

There were 688 stores in the UK and Ireland Republic in July 2011. 543 of them are situated in England. The rest spread along Scotland, Wales, Northern Ireland and Republic of Ireland with the numbers of 47, 28, 18 and 48, respectively (Company information, 2011).

Number of franchisees in the UK was 134 and each owned about 5 stores with more than 20,000 team members in 2010. Domino's Pizza UK and Ireland delivers about one million pizzas per week (Annual Report & Accounts, 2010).

The company's mission is to be the best pizza delivery company in the UK and the Republic of Ireland (Annual Report & Accounts, 2010).

In the report, the survey has already been conducted by spreading questionnaires among independently living students aged from 18 to 24. 30 questionnaires were given to be filled and 17 of them were successfully answered. The responds are listed in the findings and analysed in the interpretation, followed by conclusion.

The purpose of the report was to investigate the customer satisfaction of the sample and to compare it with the results given in the case studies and annual reports of the company. Moreover, to find out the points in the service which might affect business and give recommendations in order to improve efficiency and expand the market share.

OBJECTIVES:

Domino's Pizza UK & IRL plc decided a set of targets in 2005 for the next 5 years and called it VISION 2010 (Jones, Robinson, 2012). All of these sets were considered to improve the customer satisfaction. Along with that, higher customer satisfaction would mainly lead to high revenue, dividend and market share price.

The company released the results of the VISION 2010 in February 2011 (Jones, Robinson, 2012). This data was introduced in the form of Key Performance Indicators (KPIs).

According to the Annual Report & Accounts (2010) like-for-like sales at the same stores grew by 10.9% within 5 years. "Like-for-like" is the indicators of business growth in terms of expand in the number of stores in relation to revenue growth and sales per floor space (Riley, 2010).

System sales growth went up from £240.1m in 2006 to £485.3m in 2010. From 2009 to 2010 it grew by 19.3%. System sales growth is defined as the total sales of Group's franchisee system to a customer from outside (Annual Report & Accounts, 2010).

Adjusted profit before Tax (PBT) grew considerably from £14,075m in 2006 to £38,007m in 2010. This was very good example of efficient business model in order to show its success to shareholders and franchisees (Annual Report & Accounts, 2010).

The number of new stores opened from 2006 to 2010 is 260. The total number of stores reached to 665 in the UK and Ireland. Some of them was intended for expanding the market share, while the others was for planned to shrink the delivery time. In 2010, 57 new stores opened in the UK and Ireland, where 22 of them were intended to decrease the delivery time. In turn, it affected the results of delivery time (Annual Report & Accounts, 2010).

Along with these achievements Domino's Pizza delivered its products to more than 4 million households during 2010 (Annual Report & Accounts, 2010). It is approximately 600,000 more than it was in 2009. At that year the company served to about 35-40 per cent of the occupants of the UK (Riley, 2010).

In addition, share price of the company increased to £5.20 in 2010 from only 17 pence when the shares first introduced to the stock in 1999 (Riley, 2010).

The first objective of the project study is to analyse all these given data above and try to find out the main operational reasons standing behind the success.

What's more, in order to compare some of the key performance indicator with the results got from the sample of students.

Domino's Pizza UK launched e-commerce system and improved delivery time by introducing online ordering system, apps for iPhone, iPad and Android and by decreasing out-door-time, respectively. Together with them, new product development is also major player in customer satisfaction (Jones, Robinson, 2012).

The second objective of the report is to investigate the operational sides of the business towards customer satisfaction mentioned, detailed above.

As seen from the promotions of the company like, becoming sponsor of the Pizza Societies in the universities, it