Business Environment II

SUBJECT: BUSINESS ENVIRONMENT II

SEMESTER II- TERM END PAPER

TOPIC:

“To analyse the marketing communication plan of the loyalty program of

Dominos.”

SUBMITTED BY:

PRERNA KHATRI

FIRST YEAR, B.B.A., L.L.B (HONS.)- DIVISION E

SAP ID: -81022019283

SUBMITTED TO:

DR. BIKASH BANERJEE

NMIMS’ KIRIT P. MEHTA SCHOOL OF LAW, MUMBAI

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TABLE OF CONTENTS

Sr. No. Contents Page No.

1. Abstract 3

2. Introduction 4

3. Aim of the study 5

4. Research Objectives 5

5. Research Questions 5

6. Hypotheses 6

7. Review of Literature 7

8. Conclusion 16

9. Bibliography 17

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ABSTRACT

I pointed to the television and exclaimed to my surrounding friends (who weren't even
watching): "I know what they're trying to accomplish!" when I saw the Dominos "Points for
Pies" promo on TV, which is an uncommon occurrence these days. My buddies, who were all
non-marketers, were unconcerned. For them, this was just another television commercial,
another request for customers to become loyalists. It was a business that was open to
combining marketing and product development. When consumers post photographs of pizza to
the Domino's app in the United States, they are rewarded with loyalty programme points –
regardless of where the pie came from. Customers aren't usually devoted to a single pizza
brand, but “Points for Pies” offers them a no-strings-attached incentive to download the
Domino's app and join its rewards programme. A marcom plan, or marketing communications
plan, is a strategy for telling your target consumer audience about your product or service.
The communications mix, which identifies and defines the many approaches to sell a product
to its target audience within its strategy, must also be included in the plan. This paper aims to
analyse the marketing communication plan of the loyalty program of Dominos.

Key words: marketing communication, loyalty program, target audience.

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INTRODUCTION:

“Do what you do so well that they will want to see it again and bring their friends.”

-Walt Disney

Domino's Pizza surprised pizza fans nationwide on February 2 by announcing a new loyalty
programme incentive just in time for the Super Bowl. Customers may get points for every pizza
they eat between February and April 28, 2019, regardless of where it comes from, as part of
the new Points for Pies promotion. Customers of Domino's may now receive points for dining
at competitors such as Pizza Hut, the NFL's official pizza sponsor. Customers may receive
points for eating any type of pizza, even rivals', through Domino's Points for Pies programme.

Domino's is the world's largest pizza company, both in India and worldwide. Its one-of-a-kind
approach has served as a model for the rapid fast-food sector. Domino’s Pizza India has
successfully surpassed the milestone of 1180 outlets across India since 1995. They adopt the
franchise model since it has been used all around the world. The parent business of Domino’s
Pizza LLC is based in Michigan, United States. Their concept is to have quality control over
sourcing and so offer raw materials, including ingredients, to master franchisees while always
setting quality criteria.

The Points for Pies promotion is the finest thing Dominos could have done for their pre-existing
Piece of the Pie Rewards programme, in addition to being a brilliant example of "hackvertising"
at work. Dominos has swiftly risen to become one of our favourites (and most delicious)
examples of how to properly re-engage your rewards programme members, having previously
played second fiddle to Pizza Hut's Hut Rewards.

On Super Bowl Sunday, Domino's in the United States sells almost 2 million pizzas, which is
40% higher than on any other Sunday. While Domino's is the market leader in quick-service
pizza (with a 14.2 percent share in 2017), nearly every pizza shop does a brisk business during
the Super Bowl. On Super Bowl Sunday 2016, according to coupon website RetailMeNot.com,
Americans bought 12.5 million pizzas, while culinary website Delish reports that pizzerias
throughout America saw a 35 percent increase in sales. Customers aren't usually devoted to a
single pizza brand, but “Points for Pies” offers them a no-strings-attached incentive to
download the Domino's app and join in the rewards programme.

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First, we need to know what exactly is marketing communication plan to perfectly understand
that why Domino’s strategy is an outstanding one. The meaning of marketing communication
plan will be explained in the further chapters of this paper. This paper also aims to find out
how Domino’s effectively re-engages its rewards program members.

AIM OF THE STUDY:

Aim of the study is to analyse the marketing communication plan of the loyalty program of
Dominos and to find out how Domino’s effectively re-engages its rewards program members.

RESEARCH OBJECTIVES:

 To analyse the marketing communication plan of the loyalty program of Dominos.

 To analyse how Domino’s effectively re-engages its rewards program members.

RESEARCH QUESTIONS:

 How does Dominos carry out its marketing communication plan for its loyalty
program?
 How Dominos effectively re-engages its rewards program members?

HYPOTHESES:

 H0- Dominos does not re-engages its reward program members effectively.
 H1- Dominos effectively re-engages its rewards program members.

RESEARCH METHODOLOGY:

The methodology adopted for the research is doctrinal, analytical and descriptive. The research
mainly focuses on the secondary sources like books, articles, journals, pending/decided cases,
case controversies and news in magazines/web portals/newspapers and websites.

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REVIEW OF LITERATURE:

Domino's Proposal to Increase Carry Out Business in Columbus, Ohio Stephanie Marchant 1
Founded in 1960, Domino's Pizza (Domino's) is the perceived world innovator in pizza
conveyance, with a critical business in carryout pizza. It positions among the world's top public
café marks and had worldwide retail deals of more than $7.4 billion of every 2012. (Domino's
Pizza Announces Third Quarter 2013 Financial Results, 2013) Domino's additionally contends
in the carryout market, which along with pizza conveyance contain the biggest parts of the U.S.
pizza industry. Despite the fact that Domino's essential spotlight is on pizza conveyance, it is
likewise well situated to contend in the carryout portion given its solid image personality,
helpful store areas, and moderate menu contributions. It likewise had a high-level global
positioning framework that permitted clients to see each progression of the pizza-production
and conveyance measure, directly down to seeing the name of the individual who was placing
their pizza in the stove. All things considered, the organization had the option to effectively
use web-based media, frequently an interesting apparatus for most organizations. The
Domino's Pizza Tracker surely assumed a major part in assisting the organization with
accomplishing this status, as it supported its internet requesting benefits by 23% since its origin.
(Anderson, Marold, and Sauber, 2011) Although pizza is a most loved dinner for all Americans,
youthful and old, and over 95% of populace eats pizza, there are varieties in utilization
dependent on age, family size, and pay. A new review reports that 21% of individuals in the
18–24-year advanced age class buy pizza multiple times each month, contrasted with just 7%
of those over age 65. (Baier and Spiller, 2012). Domino's is the world's largest pizza company,
both in India and worldwide. Its one-of-a-kind approach has served as a model for the rapid
fast-food sector. Domino’s Pizza India has successfully surpassed the milestone of 1180 outlets
across India since 1995. They adopt the franchise model since it has been used all around the
world. The parent business of Domino’s Pizza LLC is based in Michigan, United States. Their
concept is to have quality control over sourcing and so offer raw materials, including
ingredients, to master franchisees while always setting quality criteria. (2016, Marketing)

How Does Domino's Maintain Customer Loyalty?

Long-term consumers may become last-time guests if their restaurant ordering experience is
unsatisfactory. So, how can restaurants determine which technologies and services will provide
the best return on investment (ROI) in terms of client retention? Christopher Thomas-Moore,
Domino's vice president of worldwide eCommerce and digital marketing, describes how the

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company's loyalty programme helps it grab a piece of the $273 billion fast-casual and quick-
service restaurant (QSR) industry in the first Order to Eat Tracker.

Converting first-time clients into long-term customers is a big problem for both fast-casual and
quick-service restaurant (QSR) companies. If customers' orders do not fulfil their expectations,
their transactions may become one-time transactions, making it unlikely that they would return
to the restaurant in the future. Chick-fil-A, Dunkin' Donuts, Sonic, Starbucks, and Taco Bell
are among the companies that have developed customer loyalty programmes to encourage
future interaction beyond initial orders. Customers may accumulate reward points over time
and redeem them for discounts or free menu items using these services.

The availability of these initiatives, according to Christopher Thomas-Moore, Domino's vice

president of worldwide eCommerce and digital marketing, may go a long way toward
establishing a company's brand in the eyes of consumers. Customers can receive concrete
benefits from such offers by being rewarded for choosing to dine or drink at specific businesses.
He stated, "These loyalty programmes mean so lot to people." “I believe that, in the present
environment, customers in all industries enjoy the recognition and direct appreciation that
businesses can provide.”

How Customer Loyalty Programs Raise Expectations?

In 2015, Domino's debuted its Piece of the Pie Rewards loyalty programme. Members may get
10 points for every pizza they buy, including ones that aren't from Domino's, according to the
company's Points for Pies programme, which launched earlier this year. Customers who collect
60 points will receive a complimentary medium pizza with two toppings. The programme,
according to Thomas-Moore, allows Domino's to better interact with consumers who have
shown to be more "loyal" to the company. He claims that having such a programme makes it
easier to "give rationale" for why people should keep purchasing pizza from the firm. Domino's
may also use the loyalty programme to get data about consumer impressions and feedback.
Consumers that join in the loyalty programme anticipate rewarding experiences, such as an
ordering procedure that is different from what other customers face, according to one of the
most important findings. “Part of that connection is exclusivity,” Thomas-Moore added. “They
went above and beyond to join up... and they anticipate something different than [what]
everyone else is getting.” These kinds of insights may help Domino's better fulfil consumers'
expectations, understand how they interact with the firm, and identify areas where it can
improve.

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Incorporating Technology into The Menu

Domino's technology-focused strategy for connecting with customers includes more than just
mobile apps. Customers may place orders using a variety of linked devices, such as Amazon
Echo and Google Home smart speakers and wearables. Orders may also be placed using social
media sites like Twitter and Slack. Domino's approach revolves around being available via a
variety of digital platforms. In fact, such channels now account for 65 percent of the chain's
revenues. “It's about meeting consumers where they are and making them feel at ease,”
Thomas-Moore explained. “There's something about being on Twitter, Alexa, and Slack and
finding consumers while they're doing what they do every day, making it that much easier to
order and track their pizza.” The firm recently opened a 33,000-square-foot Innovation Garage
in Ann Arbor, Michigan, to test new technologies including ordering kiosks, delivery tracking,
and an autonomous delivery vehicle programme. According to Thomas-Moore, these measures
will help the firm demonstrate that it wants to utilise the same technology that customers do.
Dominoes can remain ahead of developing solutions by being an early tester in autonomous
cars, rather than catching up after they become widespread. “I think... our autonomous vehicle
initiative is continuing that theme of being inventive and pushing the space on how we build
and grow these experiences that we've pushed for a lot of years,” he added. In a congested
market, restaurants and quick service restaurants (QSRs) need all the advantages they can get
to build long-term connections with their consumers. While great first impressions are
important, delivering consistent experiences across many digital platforms may help
restaurants develop a devoted following.

Why is Domino's "Points for Pies" Promotion a Great Idea?

Domino's Pizza surprised pizza fans nationwide on February 2 by announcing a new loyalty
programme incentive just in time for the Super Bowl. Customers may get points for every pizza
they eat between February and April 28, 2019, regardless of where it comes from, as part of
the new Points for Pies promotion. Customers of Domino's may now receive points for dining
at competitors such as Pizza Hut, the NFL's official pizza sponsor. Customers may receive
points for eating any type of pizza, even rivals', through Domino's Points for Pies programme.
The popularity of Domino's Points for Pies can be attributed to scarcity. That's why Points for
Pies' limited-time nature is so clever. Because the campaign is only accessible for a short period
(12 weeks, to be exact), it is imbued with a feeling of scarcity, making it much more desirable
to customers who may be considering taking part. Knowing they could lose out on a deal that

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isn't always available motivates Domino's customers to do whatever it takes to get it before it's
too late. Customer behaviour that is valuable is established. Even though we've already said it,
it's worth repeating how critical customer behaviour is to the success of not only the Points for
Pies promotion, but also Domino's continuing brand community. The most successful brand
communities in the world are based on the premise that passive members are worthless. Getting
people to sign up for an account isn't enough unless they're ready to return and participate in
meaningful ways over time. This is the most significant distinction between weak and strong
communities. Points for Pies doesn't offer any new programming mechanics; instead, it builds
on what already exists. This is a great example of a well-thought-out incentives programme.
Rather than creating a new programme structure, Domino's discovered what works effectively
with their current one and expanded on top of it. As a consequence, disappointment is avoided
early on, and members are given a simple solution: earn more pizza by eating more pizza.

THE IMPACT OF INTEGRATED MARKETING COMMUNICATION ON

CONSUMER BEHAVIOR

Consumers are bombarded with a barrage of stimuli on a daily basis, the great majority of
which are the product of marketing communication efforts carried out by companies operating
on the local, international, or global market. Everything is reduced to marketing
communication, seeking to create unified picture of the organisation, goods, and brand, with
the ultimate objective of attracting and maintaining consumers, from TV, radio, internet, or
written media news to brand-driven tactics. While marketing communication is simply one of
the activities in the realm of marketing, the notion of integrated marketing communication, like
the concept of integrated marketing, should be regarded as intertwined.

Hugh Davidson (1997) highlights the progression of marketing from a departmental strategy
to an integrated approach, which demands all aspects of a firm to be merged and examined in
their synergy so that the value offered to the consumer is obviously superior and at a low cost.
Based on this integrated marketing approach, it can be stated that regardless of the type of
communication selected by the company, the objective is to communicate a clear and consistent
message to a well-defined audience in the most efficient manner possible (Brannan, 1998)

What's the difference between marketing communication and promotion? The answer is
obvious: promotion entails the creation of a "whole set of activities with extremely diverse
objectives and means of action, including careful informing of potential consumers and
intermediaries, specific actions to influence purchasing and consumption behaviours, and to

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support the sales process," as well as "a whole set of activities with extremely diverse objectives
and means of action, including careful informing of potential consumers and intermediaries,
specific actions to influence purchasing and consumption behaviours, and to support the sales
process." (Balaure et al., 1994).

As a result, if promotional activity is generally discontinuous, relying on a time-driven effort

over a period of time (generally during company-initiated campaigns), marketing
communication is characterised by communication techniques that can be appreciated as
continuous (for example, the brand), leading to the notion that the relationship between
promotion and marketing communication is a one-way street (Popescu, 2002).

Philip Kotler defined IMC as "the idea under which a corporation meticulously integrates and
organises its numerous communication channels to present a clear, consistent, and compelling
message about the organisation and its goods" in 1999. In 2003, he returns with a fresh take on
IMC, suggesting that an organization's whole marketing strategy should be viewed as "a means
of looking at the entire marketing process from the customer's perspective" (Percy, 2008).

It is necessary to understand what this process is built on and what the main components are in
order to make a meaningful study of the marketing communication process and the impacts it
produces. Each step of the marketing communication process is defined by a set of guidelines
that must be followed in order to maximise communication and the impacts on the target
audience. These can be summed up in the following way (Popescu, 2002):

 The message sender should be perceived as a “strong, attractive, and credible” source
of information so that the receiver recognises it and imitates its purchasing behaviour
for the products / services that are the subject of the campaign;
 Communication is efficient if the broadcaster has a good understanding of who the
receivers are and what their needs and expectations are.
 So that the receiver may accurately decode and comprehend the information that has
been given to him, the sender should discover the best ways to represent the concept to
be transmitted through the message.
 The content, structure, and form of the message to be transmitted to the receivers are
the most important decisions for the campaign's success; the message reaches its target
and has an effect on the receiver only if it is transmitted through a suitable

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communication channel, with options oriented toward personal and non-personal co-
operation.

INFLUENCE OF CONSUMER BEHAVIOUR

In the current monetary setting, portrayed by wild rivalry among the suppliers who battle to
acquire the consideration of purchasers with ceaselessly assorted heterogeneous necessities,
coordinated advertising correspondence becomes one of the primary means by which
merchants, and not just, endeavour to instigate a positive disposition with respect to the
shoppers in what respects the organization and its offer. It is notable that during the buying
choice interaction, customers are searching for data from different sources trying to distinguish
the choices existing available and to make up the supposed "set of evoked other options" from
which they will eventually pick the ideal choice. Regardless of whether it is an outer quest for
data, from sources, for example, individual data sources (family members, companions,
neighbours and so on), showcasing sources (publicizing, deals advancement and so forth),
public or trial sources, or an interior inquiry of data, promoting correspondence assumes a
principal part in directing the shopper's choice (Cătoiu and Teodorescu, 2004).

The more significant the product is to the customer, the more extensive and in-depth the search
for knowledge becomes, which necessitates a well-balanced mix of communication and
marketing techniques to elicit a desire to try and eventually buy the product. In reality,
integrated marketing communication should be viewed as a systematic process that involves
the customer passing through a series of stages that culminate in a desire to purchase.

Furthermore, as the market offers more and more options, resulting in the emergence of
substitute products, the need for big brands to differentiate grows, and integrated marketing
communication becomes one of the most widely used public awareness instruments for
informing consumers about the special performances and uniqueness of the products.
Marketers' purpose in this strategy is to produce messages that will successfully reach
customers' emotional or rational attitudes, causing them to make a buy choice.

The awareness of marketing communication experts of how external stimuli are perceived by
consumers, more specifically of the influencing factors that determine the appearance of overt
behaviour, is critical in selecting the appropriate communication techniques and transmission
channels for the message based on the characteristics of the target audience.

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DOMINO’S STRATEGY OF MARKETING COMMUNICATION FOR ITS LOYALTY

PROGRAM:

Increasing the exposure of the programme:

One of the finest things to utilise to get your consumers enthusiastic about your rewards
programme is social media. Your consumers are already spending a lot of time on each site,
from Twitter to Facebook to Instagram, making social media the ideal (and inexpensive) way
to get anything new and interesting in front of them. This is something Domino's is well aware
of. The pizza business has been teasing Points for Pies for several weeks, posting cryptic photos
of pizza-shaped dog toys and handmade pie with phrases like "We're not scared to crush on
pizza that isn't ours."

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Following a three-day countdown, Domino's eventually revealed specifics about the campaign,
including a link to a special Points for Pies home page. This page is not only attractive, but it
also has clear programme instructions and a video demonstration of how the promotion works.

Landing page for Domino's Points for Pies

Each of these aspects worked together to create a unified promotional experience that not only
felt like the rest of their brand, but also improved the exposure of their programme
substantially. The more prominent a programme is, the more likely people are to join it, and
this is another another example of Domino's getting things right.

Upheld by a pile of social substance and astute duplicate, Domino's had the option to produce
revenue in Points for Pies that supported itself through to dispatch, getting clients eager to join
and affirming that the choice to join is a beneficial venture.

Makes pizza a get-together

One fast hunt through your Instagram feed will presumably uncover that individuals love
sharing photos of their food. From connoisseur cooking to consumed toast, food is something
individuals like to share together.

As the essence of Points for Pies, this is the thing that genuinely isolates Domino's prizes
advancement from the rest. With new AI innovation, they planned an application that perceives
pizza in all structures, making it simple for individuals to point, shoot, and offer their pizza
encounters with others.

Domino's Points for Pies Instagram post

Regardless of whether individuals are taking their own photographs or getting a charge out of
pizza with companions, Domino's has made it feasible for their individuals to partake in their
particular dish in manners that are valuable together: Domino's gets more openness and new
program individuals, while individuals will procure their next pizza quicker. This manageable
cycle is the manner by which the world's best brands are building solid brand networks. By
getting more clients to partake in pizza together, talk about it with companions, and offer
photographs, Domino's has viably brought more individuals into their local area and set up
clear ways for them to join, draw in, and share. For these reasons, Points for Pies is more than
just an approach to procure free pizza — it's a pizza party that everybody's welcome to!

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CONCLUSION:
The experts' distractions to coordinate the showcasing correspondence measure into the
essential methodology of the association have been and will stay effective. Cutthroat pressing
factor, changes in the signs of the shoppers' conduct, and the persistent expansion of their
necessities and assumptions situate the work of the advertisers towards the recognizable proof
of new channels for more powerful correspondence with the intended interest group, by
consolidating and using coordinated instruments of showcasing correspondence. The objective
is an appropriate situating in the personalities of the buyers and the utilization of a technique
unique in relation to that of the contenders. Seen as a cycle that can enhance the picture of the
association, items or brand, coordinated advertising correspondence stays perhaps the most
noticeable and effectively distinguishable apparatuses of promoting movement, planning to
decide ideal changes in buyer conduct with helpful impacts on short, medium and long haul for
every elaborate gathering. You don't should be a food and drink brand to take in something
from Domino's. Notwithstanding what your business resembles, Points for Pies can show you
significant exercises on the best way to run an unbelievable program promotion. Keep your
program energizing by taking a stab at something new. Make your program advancements
straightforward, receive, and draw in with. Know your program's flimsy points so you can help
individuals see past them. Keep your program apparent consistently — top of psyche = top
decision. Make it simple for individuals to remember their companions for your prizes insight.
So regardless of whether your number one pizza is from Domino's, hand crafted, or directly
from the cooler, Points for Pies is one prizes advancement you'll need a cut of.

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 Works, J. F., 2016. Corporate Presentation. s.l.:s.n. Foodworks.com, J., 2018. Dominos
India. India: Dominos India.
 Marketing, D. I., 2016. Corporate Presenatation. India: Jubilant Foodworks India.
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 Academia.edu, 2015. Dominos LLC. [Online] Available at: www.academia.edu/

[Accessed 2019].
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