1. A Case Study on Domino’s
Pizza Inc. Taher Beawerwala
MKT - 618

2. Introduction:
- History
- Domino’s Today
Case Synopsis
Questions - Analysis
Recommendation
Current Financials
Campaign Video

3. DOMINO’S PIZZA
Introduction
History:
• Purchased in 1960 by the Monaghan Brother’s a pizza
store in Ypsilanti, Michigan named “DomiNick’s”
• James Monaghan sold his half of the business to his
brother Tom, in order to purchase a used VW Beetle.
• Tom Continued to use the name “DomiNick’s” till 1965,
later renaming the Company “Domino’s Pizza Inc.”
• Emphasis on Delivery from the beginning. Hired laid-off
factory workers to deliver pizzas to near by towns.
• Delivery service helped in gaining brand popularity and
advantage of others who did not have a delivery service.

4. Domino’s Today:
• Market leader in Online transactions and Pizza
delivery services.
• 2nd Largest Pizza chain in the US with an annual
sales revenue of close to 9 Billion Dollars in
sale.
• Pizza hut leads the charts with 14 Billion annual
sales revenue.
• Domino’s has close to 12,000 outlets
worldwide.
• One of the first food chains to institute online
ordering in 2007.
• First pizza chain to have an in-house IT System
to manage its online ordering and pizza
tracking.

5. Case Synopsis
• Though the chain grew over the years, it faced its
biggest decline in 2009.
• Sales had gradually fallen over the years
• Customers complained about taste and low quality of
Pizza.
• Pizzas felt like “Cardboard”, taste “Wet and
Flavourless”
• Negative customer feedbacks and focused group
studies revealed the brutally honest criticism about
Domino’s pizzas.
• J. Patrick Doyle took notice and initiated the “Pizza
Turnaround” Campaign.
• New product development team was created and the
old recipe was scrapped.
• The team started from scratch to formulate a new
recipe keeping in mind the customer feedbacks.
• The campaign was a success, 3 out of 5 people
preferred Domino’s new pizza over competitors
offering.
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2005 2006 2007 2008 2009
Domestic Sales (in Millions)
Domestic Sales

7. 1) What Do you think caused the crisis within Domino’s that led to the
“Pizza Turnaround” Campaign?
____________________________________________________________________________
• Over reliance on Delivery Time:
- Obsession with speed created a mindless perception that they
mindlessly cranked out pizzas and that the employees were robots.
- Ad campaigns launched across regions promoted the 30 minute
promise.
- The Speed Culture removed an important component from the
experience – the Human Touch.
• Lack of innovation in their product offerings
- The Pizza recipe hadn’t changed in the last 40 odd years.
- Competitors where at a much higher level in terms of taste and
quality. (Pizza Hut took firm grip of the market)

8. 30 Mins Ad – USA

9. 30 Mins Ad - India

10. 2) Comment on how the New Product team used Attribute Analysis to test
Various pizza concepts.
____________________________________________________________________________
• The new product team consisted of the head chefs, who signalled out the Determinant
attributes of that needed to be changed in the recipe.
- Crust: how to avoid making a cardboard crust.
- Sauce: how spicy should the sauce be.
- Cheese: what kind of cheese goes with what kind of toppings. “Its CHEESE”
• The new product team also consisted of operations and marketing HoD. The attributes that
they highlighted were:
- Cost: you got to make the new pizza better without paying more for it.
- Time: you can still make a better tasting pizza in the same time.
- Awareness: remind customers about the connection that you are trying to make.

11. 3) How important was this analysis to the team in selling the Pizza
Turnaround internally?
____________________________________________________________________________
• A new product team needs the Managements approval to go ahead with
concept testing.
• Its not always easy to convince the Management (IQ Meals).
• The team and the management must be on the same page.
• Customer feedbacks and focus group findings about Domino’s pizza played
a major role in convincing the Management.
• R&D shocked at the “Cardboard pizza” complaint.
• Attribute analysis helped recognize the areas of change. (Crust, sauce, cheese)
• Management agreed to go ahead with new product team’s concept of the
new pizza.

12. 4)What else did the new product team do to boost their chances of success?
___________________________________________________________________
• Major Risk.
- Scrapped the old recipe.
- Included Customers extremely negative feedbacks in their rollout
promotional campaign.
• www.pizzaturnaround.com
• Acknowledged the fact that Domino’s had erred.
• Connected to the customers on an emotional level.
• Reoriented their focus to bring back human touch into their pizza experience. (Open Kitchen)
• 30% increase in New Customers.
• 65% increase in Repeat Purchase.
• 14.3% increase in quarterly same-store sales.

13. 2014 Ad - USA

14. 2015 Ad – India

15. 5) What can be learned in general from this case about
the use of analytical attribute approaches for concept
testing?
_______________________________________________________
• Use of attribute analysis helped the new product development
team by:
- Outlining the areas to improve upon.
- Improving on those areas in a timely manner.
- Improving on those areas in a cost effective manner.
- Helping in convincing the management that a change was
needed.

16. 6)How could other concept testing approaches present in this chapter have
been used to guide the new product development team? (Recommendations
too)
___________________________________________________________________
• Market Research to support concept testing.
- Acceptability of the new product in the market.
- Avoid committing the same mistakes again.
- Market preference before launch.
• Prototype Testing
- Inexpensive.
- Improved and increased user involvement.
- The users can thoroughly evaluate the prototype.

17. Sample Survey Results
1) Attributes highlighted by you guys:
- PIZZA :D
- Cheesy/ Greasy
- Cheap
- Delivery/ Midnight meal.
2) Changes you guys want:
- More pizza options
- Healthy pizzas
- Dine-in
Pizza
Taste
Price
Time

18. Domino’s Pizza
Financials as of
2015

20. The Pizza Turnaround

21. Questions ????
Thank You 