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8/7/2019 ppt int mkt pragya mam

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SUMMARY

Dominos Pizza to Japan

Before entering Japan, Dominos did a culturaland linguistic analysis to know the preferences of

consumers by hiring a consultant. Y. Higa, a Japanese businessman, dealing in

lumber and medical equipment did not acceptthe consultants recommendation.

He visited Dominos headquarters and wasimpressed by the growth of Dominos in U.S.Aand abroad.


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Higa made an agreement with Dominos whichgave him the exclusive right to develop andfranchise stores in Japan.

The first Dominos Pizza opened in Tokyos Azabudistrict in 1985.

By 1989 there were 54 Dominos Pizza outlets inJapan, and sales in 1988 reached $43 million.

Home delivery facility accounted for 12 trillion

Yen in annual restaurant sales.


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Dominos strives for international uniformity of

both product and operating methods.

The Pizza dough, cheese, and sauce are uniform

internationally.

Toppings were customized according to Japanese

taste.

Each store pays 3% of sales into a promotional

fund which includes door hangings, direct mails &

fancy menu.


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Success Story:

DPI is pleased with its decision to enter Japanesemarket and with its Japanese employees because

they are diligent, hard-working, and team

oriented.

Higa gives some of the credit to DPI for sendingone of its most experienced veterans to Japan to

help establish the operations.

The company has also set up a DominosUniversity for local training.


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SWOT ANALYSIS


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STRENGTHS:

y Increasing global brand presence Dominos Pizza International.

y Royalty income was high .

y Large number of outlets and increasing sales in a short span of time.

y Special three-wheeled Honda scooters-a solution to Tokyos traffic.

y Strives for international uniformity of both product and operating methods.

y Hard working, diligent and team oriented employees.

yHigas family experience with Pepsi cola and KFC in 1950s.

y Higas knowledge and understanding of the local environment.


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WEAKNESSES:

No restaurant service.

Outlets are located at small places pertaining to high real estate

expenses.

Dominos home delivery model was hampered due to crowdedstreets.

Address were not easy to understand.

New varieties of pizzas can be introduced.

Wide scope for further growth.

High density of population can lead to higher sales.

OPPORTUNITIES:


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THREATS:

Competition from other fast food ventures.

High real state prices make it difficult for dominos to expand in

future.

Banks unlikely to lend to small businesses


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Question & Answers

Ans 1.

30 min delivery promise

Full color menu Special three wheeled Honda with logo.

Other promotional activities.

Door hangings, direct mails, including thefancy menu are used for advertisingrather than TV or radios.


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Ans 2.

Standardization:

To give a common feel & touch.

Strategies capable of being adopted in Japan too.

Adopted:

Due to cultural & linguistic changes.


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Ans 3

Dedicated Employees Experienced Veteran

Home delivery

Three wheeler scooters Just in time(delivery in 30 min)

Alteration in ingredients acc to Japanese taste.

Innovative Promotional strategies.


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THANK YOU

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