Southern Pizza Market

Group members:

                                Student ID                Student Name

                  1.        1151303670                        Yeo Huei Fang

                  2.       1151304260                          Choo Kin Yoke

                  3.        1151303978                          Lee Guo Rui

                  4.       1151304205                          Michael Lim Soon Shan

                  5.        1142701937                           Seer Ji Xuan

Case Study 2

1.     Pizza market is one of the most competitive market due to its products can be easily substituted as it can be easily imitated. The competition is very intense as we can see there are several huge company like Pizza Hut, Papa John’s, and Little Caesar’s that win each other depending on the area they are operated in. Although, Domino’s Pizza currently ranks a strong second among the four national pizza chains and Southern still faces these competitors in all of its markets. In addition, all these competitors, have their own main advantage on the products that they handle out of care, to satisfy their customers and of course to make sure everything is on right track.

On the other side, the degree of rivalry would be increased too, due to it is easy enter into the market due to ease of getting ingredients to start their activities anywhere. Therefore, if any  business owner have the sufficient budget to enter into the market, the competitors will increase which will further increase the competition just like how Papa John are able to compete with Dominos in some city like Greenwood despite it just founded in year 1984 while Dominos was founded in year 1960.

One unique factors that unique to Southern’s market was that they have a Calls Continuous Improvement Teams (CITs) which is a team involved in probing the key processes within the company and propose areas for improvement to help in continuous improvement and help the to  be a learning organisation. It is only made possible because they have an innovative, open atmosphere which encourage in the hunt for ideas for new products, management practices, and marketing strategies

2.       The first goal of the Southern Domino’s Pizza is to move to number one in all the markets that Southern serves by provide the quality services, seeking ideas for new products and develop promotion to all their customers in order to capture the consumers’ preference and achieve market dominance.

According to the Smart Flour Foods study, titled Pizza Lovers in America 2016, sixty eight percent of all pizza lovers exercise two or more times per week, more than half (43%) are ages 18 to 25. So, the second goal of Southern Domino’s Pizza is dominate summer sales in college markets, Southern Domino’s Pizza have to develop the customers’ preference between 18 to 25 years old students because college students is one of the biggest market. If Southern successfully capture the college markets, it will help them to increase their sales absolutely.

Last but not least, Southern targets to become a stronger competitor in inner city markets. Some markets have a large inner city customer base that may have special needs requiring a specially targeted marketing strategy. So, Southern should innovate and promote some attractive strategy in order to capture those biggest markets such as Jackson and New Orleans.

3.         a) In my very own perspective, in order for Dominos to sustain its business in term of long run can only be done by moving Dominos into number one in pizza industry which means surpassing its competitor, Pizza Hut. To look into the biggest picture, it is better for Southern, the largest franchisee of Dominos to surpass Pizza Hut first before gaining the largest market share in US or even worldwide.

        1) Short term objective – To develop cash cow product

In order for Southern to reach the ultimate goal, there is a need for Southern to come out with innovative menu and identify their own product characteristics according to BCG Matrix. Research can be conducted to understand consumers’ preference on variety of pizzas being offered, identify their cash cow products and eliminate their question mark product. After identifying the cash-generating-product, Southern are able to secure or gain more cash from it. After obtaining more cash flow from the research, Southern are encouraged to come out with innovative menus which tailor to different local market taste or preferences which we called star product. Star product normally can attract more customers and generate more cash but high cost at the mean time. But, this is fine in short-term as Southern ultimate goal is to become number one in pizza industry, so Southern need to develop more star product which in the end becoming cash cow product. As cash cow products are the only kind of product that can secure Dominos market share during bad economic conditions and the only way to surpass Pizza Hut to become number one.