Application of the 5C model on Dominos Pizza

1 Company

Some examples of the company related factors are given below:

• Research and development - Dominos Pizza spends heavily on the research and
development activities to preserve its leadership position in various product segments.
• Culture - Dominos Pizza has a strong culture of process and product innovation. The
organizational culture supports the vision, mission and values.
• Scale of production - Dominos Pizza has a large scale of production, which enables the
company to achieve the benefits of economies of scale
2. Customers

Customer analysis mainly covers the following points:

• Market segments - Dominos Pizza targets both high end and low-end market segments.
The primary customer segment of the Dominos Pizza is the family with children.
• Frequency and quantity of purchases - The quantity and frequency of purchase in the
targeted market are high
• Brand loyalty - Dominos Pizza’ customers are price sensitive. Their price sensitivity,
changing tastes and preferences and high health consciousness requires Dominos Pizza
to invest in customer research activities and closely monitor their attitude and
consumption behaviour.
• Customer needs - It is important to identify the critical customer desired features and
incorporate them into marketing and advertising strategies.

3. Competitors

Porter five forces is a useful tool to conduct competitor analysis:

• Bargaining power of buyers - Strong bargaining power of buyers puts downward

pressure on pricing and induces Dominos Pizza to offer the high-quality product at
discounted pricing. There are three major reasons for strong buyer bargaining power:1.)
High substitute availability.2.) A wide number of alternatives.3.) Low economic and
psychological switching costs.
• Bargaining power of suppliers - Weak bargaining power of supplier makes it
comparatively less important strategic issue for Dominos Pizza as suppliers cannot
dictate the prices and have to accept the Dominos Pizza terms and conditions. Three
factors result in moderate to weak supplier power:1.) A large number of suppliers 2.)
High overall supply. 2.) Suppliers’ weak control over their distribution network
• Competitive rivalry - Currently, the rivalry among competitors is high, which makes it
difficult for Dominos Pizza to achieve its market growth objectives. The product
differentiation is low and setting the differentiation basis has become increasingly
challenging. Intense competitive rivalry is a major reason for Dominos Pizza’ declining
profitability.
• Threat of substitutes - The technological advancement has raised the threat of
substitutes for Dominos Pizza. Changing trends towards healthy products also raises the
consequences of this threat for Dominos Pizza. Overall, the threat of substitutes is
strong for the following reasons:1.) High performance/cost ratio of substitute
products.2.) High availability of substitute products.3.) Low switching cost.
 • Threat of new entrants - Dominos Pizza faces moderate new entrant threat, which
means new entrants do not have a significant influence on Dominos Pizza’ market
share. High level marketing know-how with huge expenditure on marketing activities is
required to enter the industry. Dominos Pizza faces a moderate threat of new entrants
for the following reasons: High brand development cost weakens the threat.1.) Low
switching cost increases the threat.2.) High capital cost weakens the threat.

4. Collaborators

An in-depth collaborator analysis requires Dominos Pizza to conduct a detailed value chain analysis
and carefully consider the bargaining power of suppliers to explore the collaboration opportunities.
Collaborators include the downstream and upstream value chain partners, business allies,
community leaders, government and others. To choose the appropriate collaborator partners,
Dominos Pizza needs to evaluate different value chain factors, like- value chain flexibility, efficiency,
agility, revenue sharing among value chain partners and strengths and weaknesses of possible
collaborators. The detailed collaborator analysis can allow Dominos Pizza to enhance and its supply
chain efficiency and increase control over it through vertical integration. When operating at the
international stage, multinational organizations like Dominos Pizza must understand the local
preferences of their customers and make all decisions (ranging from production to marketing)
accordingly. An agile and flexible supply chain can make collaboration easier for Dominos Pizza.
Dominos Pizza has partnered with various collaborators that allowed the company to develop new
product lines and enhance the product development and distribution process.

5. Context

Dominos Pizza must understand the external environmental context in which it is operating to make
the right business decisions and forecast the future. One important tool to understand business
context is the PEST analysis.

• Political Context - Understanding the political context requires Dominos Pizza to identify
possible political issues such as labour or tax laws, changing trade regulations or legislative
problems. The present governance system requires Dominos Pizza to study the changing
government policies closely Presence in multiple markets increases the risk of political
instability. The geo political risks have increased for Dominos Pizza due to recent
developments in the global political scenario.
• Social Context - Understanding the social context requires Dominos Pizza to analyse the
major trends in culture, education and demographic patterns. A general rise in the health
consciousness of customers imposes a risk to the Dominos Pizza. Population growth and
rising low-end market segments offer opportunities to Dominos Pizza The attitude towards
migration in markets where Dominos Pizza is present requires the company to consider its
impact on changing demographics carefully.
• Economic Context - Understanding the economic context requires Dominos Pizza to identify
major economic issues like growth in important economic indicators, changes in the labour
costs and business cycle stages. Inflation exerts a strong impact on the pricing structure of
Dominos Pizza. Presence in multiple markets requires marketing managers of Dominos Pizza
to adapt their strategies according to consumer behaviour, which is different during
recession and boom. The downward market pressure and changes in customers’ purchasing
power should also be considered to make effective marketing strategies.
• Technological Context - Understanding the technological context requires Dominos Pizza to
understand recent technological developments and their impact on the organization’s cost
 structure and other business operations. The entrance of new market players and their
investment in research and development requires Dominos Pizza to protect their intellectual
property rights. The technological advancement has shortened the product life cycles,
requiring Dominos Pizza to enhance its value chain efficiency. Technological development
has lowered production cost and increased the need to restructure the supply chain.

Promotions

Advertisement 1 – Safety during COVID-19.

Link - https://www.youtube.com/watch?v=8fokE3rwBtE

Description - this advertisement promoted safety of dominos delivery process in the times of COVID-
19. Shows that delivery associate has left the box on door and standing at a distance maintaining
distance. Video then shows the taste aspect of dominos and the audio continues to talk about
safety.

Advertisement 2 – kushiyon ki home delivery

Link - https://youtu.be/kqLpbWIBk5Y

This advertisement talks about the pizza being delivered in under 30 min also talks about the
number of outlet and reach to the customer with “kushiyon ki delivery kahi bhi kabhi bhi”.

 Dominos use every festival or an international day to market its products be it Diwali or
mothers day. They market pizza as a cuisine to be eaten on every day celebration.
 They also market every new product line or variation for example cheese burst pizza, pizza
burger, or even dominos pasta.