INTRODUCTION

When we thought about PIZZA, we often consider it as a fast food or maybe

some people consider it as a hearty meal that brings about a happy feast with
family and friends.(So, you can consider it in any of these ways).In any ways, pizza
is still favoured among us! So, who’s the one that invented pizza. Credits will go to
this man, Raffaele Esposito of Naples. So, today as a group, we’re going to
present to all of you about a pizza company called Domino’s Pizza. As Domino’s is
a worldwide franchise, there are many outlets at many countries. So, today we’re
going to focus on Domino’s Pizza Malaysia. We will mainly go through briefly
about the company profile and then into its business analysis.
 HISTORY
1960=Tom Monangan and his brother, James purchase DomiNick”s,a pizza store in Ypsilant,Mich
Monangan borrowed 900$ to buy the store
1965=Tom Monangan creates a business and renames the business “Domino’s Pizza”
1997=Domino's Pizza officially launched in Malaysia
1998=Domino's Malaysia holds the first Fastest Pizza Maker Competition.
1999=Launch of Domino's delivery number "1300-888-333“
2003= launches Malaysia's first fast food on line ordering portal
2005=result rapid store expansion.
2006= second store open in Penang
Company Profile
Board of Directors
Tom
Monaghan
Founder of Domino’s Pizza
Inc.

Benedict
Chang Yew
Teck
Founder of Domino’s Pizza
Malaysia

Ba U
Shan-Ting
Current President of
Domino’s Pizza Malaysia
 CAPITAL (Assets)
• Issued capital is total of a company's shares that are held by shareholders. A
company can, at any time, issue new shares up to the full amount of
authorized share capital.
• This company has its issued capital. Below is to distinguish issued capital of
2016 and 2017.
• A company that wishes to raise more equity can obtain authorization to
issue and sell additional shares, thereby increasing its share capital.

2017 2016
OPERATING COSTS AND EXPENSES
 QUALITATIVE CHARACTERIZATION
FIXED COST VARIABLE COST
EMPLOYEE BENEFIT MARKETING
OCCUPANCY COMMUNICATION
EQUIPMENTS FOOD
DEPRECIATION ROYALTY
STORE RELATED
 Market structure
oligopoly
MUTUAL
FEW LARGE FIRMS DIFFICULT ENTRY INTERDEPENDENC
E

ONE OF MAJOR PIZZA

STRONG BRAND THE ACTION OF 1
FIRMS IN MALAYSIA
FIRM TO
INCREASE/DECREAS
E ITS PRICES WILL
AFFECT THE PRICES
ECONOMIES OF
200 OUTLETS IN OF OTHER FIRM.
LARGE SCALE
MALAYSIA
PRODUCTION
Homogenous & DIFFERENTIATED PRODUCTS
VARIATIONS IN MENU
 Elasticity of demand

(1)Availability of substitutes
-Domino’s pizza is elastic
-because pizza has many substitute brand(Pizza hut,Papa John and etc)
-qd is very responsive to change in price as the smaller change in price leads to bigger change in qd
-If price of pizza (ex:pizza hut) ,Qd by a huge percentage*
Qd for domino’s

(2)Consumer’s income
-if consumer’s income ,Qd for Domino’s Pizza*
-if consumer’s income ,Qd for Domino’s Pizza*
*Price elasticity Domino’s pizza can be achieved when consumer’s income is normal
 Company Business Analysis

6. Business Agreement 1. Free Delivery

Company’s
2. Price Strategy
Strategy

5. Online-ordering 3. Smaller Markets

4.Open more Branches

 1. Free Delivery Services

• One of the ways / strategies to draw more customers

• Is considered a bonus to all Domino’s Pizza customers
• Ba U Shan-Ting said that the delivery segment now contributes 55% towards
Domino’s Pizza revenue while the rest still comes from over-the-counter sales (Star
Online, August 14,2017)
• This service includes a unique selling proposition:
“30-Minutes Delivery Guarantee!
 Order will arrive within 30 minutes
 You will get a free Regular Pizza voucher if your order does not arrive within 30
minutes
 2. Price Strategy

• Includes strategies such as:

a) Promotional pricing
b) Psychological pricing
c) Skimming pricing

• Is mainly to increase total revenue = Gain Profit

 3. New concept to smaller markets

• Small markets refer to markets such as outlets at suburban areas (Eg: Domino’s
Pizza Tampin, Negeri Sembilan)
• These markets prefer different concept where
 customers want a dining place to eat
• This results OTC transactions is preferred than take-away/deliveries
• Implemented concepts that are:

Larger More
conducive
 Smaller Markets (Continued)
• Although the company have new concept for certain outlets, Domino’s
Pizza still preserves its unique culture that is:
I. DOES NOT offer full services of a restaurant

SO, NO
SERVICE
CHARGES
 4. More Branches
• Invested to open 8-10 outlets
2009

• Plan to expand to Sabah & Sarawak by end of 2013

2012 • Plan to appear at the east coast by early 2013

• Reached 112 outlets

2014 • By next year, want to increase outlets in Sabah & Sarawak

• In that year, 36 stores opened

2016

• Domino’s Pizza Malaysia celebrates the opening of its 200 th outlet at Cyberjaya
2017

• There’s a plan to transform Domino’s Pizza Malaysia as leading pizza outlet by this upcoming year
2020
 To ensure
economic
resources can be @ a specific price
obtained &
a specific period of time
5.Business
Agreement

With Shakey’s With Citibank

Pizza Malaysia
 6. Online- Ordering

• Since, Domino’s Pizza is one of the delivery experts in Malaysia,

 have to improve the means of taking in orders
• So, online-ordering is introduced the same time when it has its website at
2003.
• Since then, new improved looks of their website and great efficiency
• The ordering platform is ranked no. 1 because of the online speed of
service.
 Advertising strategy

1. TV commercial
2. Coupons,vouchers and flyers
3. Online advertisement

Why advertising important?

For product differentiation that creates differences among goods and services.
This is a form of non-price competition.
1. Television commercial
• Creativity of advertisement attract customer (children)
• It contain text,picture,video and sound.
• Information easy to be delivered to customer
• Triggered customer’s tastes and preferences.(product
more preferable to consumers, demand will increase)
2. Coupons, vouchers & flyers
• Give an affordable price with many discount.
• Discounting coupons are being provided with every item purchased.
• Available online coupons at web site
• Give promotion of buying pizza (buy 1 free 1)
• Varieties of choices in menu
3. Online advertisement
• Promote immediate calling action
o Domino’s Pizza Malaysia has leveraged on the digital world to the best of its advantage and was
certified as the first quick service restaurant company to provide an online ordering platform by
the Malaysia Book of Records with the launch of its website in 2003.
o Domino’s Pizza Malaysia’s online ordering platform is also ranked #1 for its online
speed of service in the quick service restaurant industry.
• Available in media social (Facebook, Instagram, twitter)
• Encourage the fan to join the challenge and buy more pizza (#cheesetarikchalenge)
• Domino pizza Malaysia Facebook page has accumulated more than 700 thousand followers
o It's used the database of friends to send out promotional announcements and product news.
Promotional Pricing Promotional Pricing

Skimming Pricing Psychological Pricing

Special considerations that could impact domino’s pizza pricing strategy

COMPETITION BETWEEN FIRMS

- OFFERS LOWER PRICE THAN SO THEY CAN COMPETE WITH OTHER
FIRMS.
-DEMAND INCREASES AS MANY PEOPLE AFFORD TO BUY DOMINO’S
PIZZA

ECONOMIC DOWNTURN
- DEMAND DURING RECESSION WILL DECREASE, SO DOMINO’S MUST
OFFER LOW PRICE SO THAT PEOPLE CAN AFFORD.
ECONOMIC FACTOR
-PEOPLE WITH LOW INCOME WOULD CHOOSE TO BUY
CHEAPER PIZZA.
-DOMINO’S PIZZA IS ONE OF THE CHEAPEST IN MALAYSIA
MARKET FOR PIZZA PRODUCT.
 Overview of the company

• Produce good quality of pizza (increasing demand)

• Concern about punctuality (30 minutes delivery)
• The reasonable price and discount gives opportunity for those who cannot
afford and can afford it.
• Larger of market/franchise can reduce unemployment rate.
THANK YOU