CASE STUDY 1

DOMINO’S PIZZA IN JAPAN

Submitted to: Submitted By:

Prof. Pragya Keshri Manish kaushal
Himanshu dugar
Akhil saigal
Siddhartha patni
 SUMMARY
Domino’s Pizza in Japan
• Before entering Japan, Domino’s did a cultural
and 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 accept
the consultant’s recommendation.
• He visited Domino’s headquarters and was
impressed by the growth of Domino’s in U.S.A
and abroad.
• Higa made an agreement with Domino’s which
gave him the exclusive right to develop and
franchise stores in Japan.

• The first Domino’s Pizza opened in Tokyo’s Azabu

district in 1985.

• By 1989 there were 54 Domino’s Pizza outlets in

Japan, and sales in 1988 reached $43 million.

• Home delivery facility accounted for 12 trillion

Yen in annual restaurant sales.
Delivery issues in Tokyo
• Domino’s US promises to deliver Pizza by car in
30 mins or your money back which was a major
problem in a city as crowded as Tokyo and it was
very difficult to find an address because the
houses are numbered according to when they
were built.
• The solution to this problem was a 3 wheeled
scooter that could maneuver easily in Tokyo’s
traffic.
• Refund of $5 if the delivery does not arrive in 30
mins.
• Domino’s 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.
Success Story:
• DPI is pleased with its decision to enter Japanese
market and with its Japanese employees because
they are diligent, hard-working, and team
oriented.
• Higa gives some of the credit to DPI for sending
one of its most experienced veterans to Japan to
help establish the operations.
• The company has also set up a Domino’s
University for local training.
SWOT ANALYSIS
 •STRENGTHS:

 Higa’s family experience with Pepsi cola and KFC in 1950’s.

 Higa’s knowledge and understanding of the local environment.

 Innovative promotional strategies.

 Brand image.

 Standardized product.

 Strong financial strength

 •WEAKNESSES:
• No restaurant service.

• Outlets are located at small places pertaining to high real estate

expenses.
• Limited variety.

OPPORTUNITIES:

• New varieties of pizzas can be introduced.

• Wide scope for further growth.

• High density of population can lead to higher sales.
 •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
• No linguistic similarities.
 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 the
fancy menu are used for advertising
rather than TV or radios.
• Standardized pizzas with adapted toppings
like:-
Pepperoni,Tuna,Corn
the pizza dough cheese and sauce are uniform
as possible internationally.
“ In Japan the pepperoni is most popular but
tuna and corn offered”
Ans 2.

Standardization:
• the pizza dough cheese and sauce are uniform as
possible internationally
• Strategies capable of being adopted in Japan too.
• Operations methods are uniform.
• 30 min delivery.
Ans 3
• Dedicated Employees
• Experience of the family members in the food
industry.
• Home delivery service.
• Three wheeler scooters for promotion.
• Just in time(delivery in 30 min)
• Change in ingredients acc to Japanese taste.
• Innovative Promotional strategies.
THANK YOU