Problems facing domino's pizza

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How does the marketing mix for Domino’s in Japan differ from that in the United States? How does the marketing mix in India differ?
Domino’s made its name by pioneering home delivery service of pizza in the United States. The company was founded in 1960 in Ypsilanti, Michigan, by Tom Monaghan and his brother, Jim. Domino’s Pizza was sold to Bain Capital in 1998 and went public in 2004. On May 12, 1983, Domino’s opened its first store internationally—in Winnipeg, Canada. And, in 2012, Domino’s Pizza removed the word “Pizza” from the logo to emphasize its non-pizza products. Its current menu features a variety of Italian American entrées, side dishes, and desserts.

In recent years, the growth for Domino’s has been overseas. With the U.S. fast-food market saturated and consumer demand weak, Domino’s has been looking to international markets for growth opportunities. Today, almost all new store openings are outside the United States. As of 2013, Domino’s had 10,566 stores with 4,900 in the United States, 750 in the United Kingdom, 650 in India, and the remaining spread out in 70 countries. Its plans call for 4 to 6 percent growth in stores per year for the next few years (some 500 new stores annually, with the majority in foreign markets). Given this expansion and clear international growth strategy, perhaps even more amazing is the 76 straight quarters of same-store sales growth in Domino’s international stores.

As Domino’s expands its international businesses, there are some things that the company has kept the same as in the United States, and there are some things that are very different. What is the same is the basic business model of home delivery. This sets it apart from many of its rivals, which changed their basic offering when they entered foreign markets. For example, when Yum! Brands Inc. introduced Pizza Hut into China, it radically altered the format, establishing Pizza Hut Casual Dining, a chain that offers a vast selection of American fare—including ribs, spaghetti, and steak—in a full-service setting. Pizza Hut adopted this format because table service was what Page 551the locals were used to, but Domino’s isn’t interested. “We go in there with a tried-and-true business model of delivery and carry-out pizza that we deploy around the world,” states Richard Allison, Domino’s executive vice president–international. “In emerging markets, we’ve got more tables than you would find in the U.S., but we have no plans to lean toward a casual dining model where the server comes out and takes an order.”