Strategic SOSTAC Framework for Revamping Domino’s Digital Marketing Assessment Answer

Situational Analysis

Company Background: Domino’s

Domino’s is a fast food chain that operates a network of firm-owned and franchised stores in the US and international markets (Domino’s 2023). It specialises in pizza products and offers dine-in, delivery and takeaway services through its restaurants, It offers a wide range of pizza products and other food and beverage options. It also offers toppings and pizza options based on the specific culture and countries in which it operates. This strategy has made Domino’s a popular fast food option throughout the world and helped the firm to expand its market. Headquartered in the US, some of the major markets of Domino’s include the UK, Australia, India, China and Canada (GlobalData 2023).

The company operates in three segments, namely, US stores, International franchises and Supply chain. The US stores consist of company-owned and franchised store operations in the United States. Moreover, the International Franchise segment consists of the network of franchised stores in the international market that are maintained by the firm. Meanwhile, the Supply chain segment consists of regional dough manufacturing and food supply centres maintained by the firm (Forbes 2023). As of 2023, the firm employs a workforce of 13,500 and has a market capitalisation of US$11.7 billion (GlobalData 2023).

Customers of Domino’s

The primary target customers of Domino’s are people in the age group 18-35. However, it targets a broad customer segment who would prefer to eat pizza. Thus, it offers its products to a diverse segment of customers ranging from college students to office workers. Moreover, it prefers to also provide a wide range of options in terms of taste, size, toppings and complementary servings (Shaikh 2020).

External Analysis

Domino’s operates in the fast food industry, which specialises in providing quick and convenient meals to consumers. These firms have a limited menu that can be prepared quickly using ready-made ingredients. The industry is distinguished by a focus on accessibility and comfort. Fast food chains serve food through several modes, which include dine-in, drive-thru, take away and online delivery (Shaikh 2020).

The fast food industry was worth US$647.7 billion in 2021. The business of the fast food industry was severely impacted by the restrictions caused by the Covid-19 pandemic. This led to a decline in the sales of fast food chains with a decline in dine-in service by more than 60% through the global markets. However, the restrictions caused by the pandemic lead to a surge in online food delivery services. Overall, fast-food chains faced a decline in business. However, the industry has started recovering from the impact of the pandemic and is likely to expand by a compound annual growth rate (CAGR) of 4.6% to reach a market size of US$998 billion by 2028 (Global News Wire 2023).

Competitor Analysis

There is intense competition in the fast-food industry. The factors that impact the competitive positioning of Domino’s in comparison to its competitors are product offerings, pricing, marketing and online presence. The main competitors of Domino’s are Pizza Hut, McDonald’s, KFC and Burger King.

Source: (Similarweb 2023)

The competitor analysis revealed that although Domino’s lacked in the number of followers and likes on social media in comparison to the competitors, it attracted more engagement than each one of them with a low rate of bounce or single-page sessions (Zantal-Wiener 2022).

E-SWOT Analysis

Objectives

In order to leverage the increasing usage of social media among consumers and the increasing demand for online ordering and delivery, the overall aim is to revamp the digital marketing strategy of Domino’s to enhance its reach and engagement among consumers. This can be facilitated through effective marketing content and efforts using online modes of marketing. This can help Domino’s to enhance its brand image, increase reach and engagement among consumers, and enhance its sales in the global market.

The objectives of the firm are highlighted using the 5S framework, which can help in reviewing the digital marketing goals of Domino’s (Chaffey and Smith 2022):-

1. Sell: Increase the sales of online delivery service as well as dine-in and takeaway options for the firm by 10% year-on-year growth.
2. Serve: Increase the online reviews related to Domino’s by 50% by increasing the online presence on social media platforms. This can be facilitated by increasing the followers, subscribers and likes on social media platforms. Moreover, it can also be increased by increasing online engagement on social media sites by providing interactive content to consumers.
3. Speak: Increase communication with the customers by increasing the interaction rate in terms of page views by 100,000 each month until the next year. This can be done by increasing dialogue with customers through surveys, webchats, and opinion polls. Moreover, it can also be facilitated by posting interactive content based on popular events like movies, television series, sports events, festivals and holidays. Consumers can engage with these posts, which can also be monitored and reviewed by the firm to develop effective marketing and messages.
4. Save: Decrease the marketing costs by 10% by the next year by increasing the online presence and engagement on social media platforms. Increasing the online presence not only enhances the reach of the brand among consumers but also provides consumer data for effective marketing campaigns. 
5. Sizzle: Increase the followers on Instagram and Twitter, Youtube subscribers and Facebook likes by 100% by the next year. This can be achieved by posting interactive content and two-way dialogue on social media (Chaffey and Smith 2022).

Strategies

Targeting and Positioning

The objectives aim to enhance the digital marketing strategies of Domino’s by increasing its online presence and consumer engagement. In order to enhance the digital marketing strategies of Domino’s, it is crucial to understand the demographics of people who use the internet and social media. Social media is the most widely used application on the internet with 35% of the users spending their total time on the internet (Hirose 2022). For Facebook users, which is the most widely used social media platform, 53.6% of the users belong to the age group of 18-34. Instagram registers more than 1 billion log-ins each month, with 24% using it every day. More than half of these users are below the age of 35. Moreover, 59.2% of Twitter users belong in the range of 25 to 49 years. Meanwhile, in the case of Youtube, 77% of the users belong to the age group of 15 to 25 years of age (Hirose 2022). On the other hand, the primary target segment of Domino’s is in the range of 18-35 years of age (Shaikh 2020). Thus, it can be seen that the majority of social media users align with the target demographics of Domino’s. Therefore, the firm should focus on individuals in the range of 15 to 49 years of age for its digital marketing campaigns.

In order to revamp its digital marketing efforts, Domino’s should establish itself as a unique brand. In order to do that, the brand should establish itself as the provider of pizza as a quality convenience food with a diverse menu that caters to the needs of every individual.

Online Value Proposition (OVP)

The OVP for revamped digital marketing of Domino’s is as follows:-

The development of a digital community that comes together to discuss food as well as popular culture and events. This community will provide a platform for existing customers, potential customers and Domino’s to interact with each other. Thus, it can be used to share experiences, feedback, opinions, ideas and events that promote togetherness through pizza sharing. 

Channels

Paid Media

Paid media refers to the sponsored promotional content used by marketers on various communication channels. This will help Domino’s to enhance its exposure and reach consumers who may not be existing consumers of the brand (Suñga 2021).

Social media advertisement

With the increasing and widespread usage of social media, displaying advertisements on these platforms not only enhances the reach of the brands but also helps in customising the content with the help of consumer data analytics (Drenik 2021).

Search Engine Marketing

Search engine marketing (SEM) is the practice of marketing that is used by businesses that appear on search engine result pages. Advertisers place bids on terms that customers of search engines like Google and Bing would use when looking for specific goods or services, giving them the chance for their adverts to show up alongside search results for those keywords (Simplilearn, Section 1, Slide 51).

Owned Media

This refers to the media owned by the firm.

Website

With the help of a website, brands can significantly enhance their brand presence with a webpage that customers can reach for information and direct purchase. Moreover, brands can enhance their website search rankings with the help of SEO to help generate more traffic (Solis 2022).

Earned Media

This refers to the media earned by the firm through social media posts and website links to third-party sources. It helps in generating brand awareness and increasing customer loyalty (Suñga 2021).

Search Engine Optimisation (SEO)

SEO is used by firms to optimise the technical configuration of their website based on the relevance of content and popularity of attached links in order to enhance the visibility of their webpage on the search engines (Simplilearn, Section 1, Slide 3-43).

Social media engagement

Social media engagement is beneficial for brands because it provides a means for direct engagement with customers and increases brand awareness. Moreover, it also provides a means for data analytics that can help a firm to improve its products and services (Holtman 2023).

User-generated content (UGC)

UGC is content that is created and shared by the customers of a brand. UGC is perceived to be 2.4 times to be more authentic than brand-generated content, which enhances brand loyalty, increases conversions and influences purchase decisions (Beveridge 2022).

Influencer Marketing

The increasing usage of social media has developed an industry of influencer marketing. Influencers are individuals with a significant amount of followers or subscribers on social media platforms. Influencer marketing involves collaboration with these individuals for the purpose of promoting products and services through social media channels (Baker 2022).

Tactics

Channels

Paid Media

Social media advertisement

The target consumer segment for Domino’s social media marketing should be individuals ranging from 15 to 49 years of age. Domino’s can display promotional content on Facebook, Youtube, Instagram and Twitter. These advertisements should be based on pay-per-click mode, wherein the firm pays each time the consumer clicks on the ad (Simplilearn, Section 1, Slide 53). 

Search Engine Marketing

Domino’s should acquire keywords like “pizza near me”, “domino’s pizza”, and “domino’s near me” to enhance its visibility on search engine pages when people use these keywords (Simplilearn, Section 1, Slide 55). Thus, the ads of Domino’s will be displayed when consumers use these keywords on their search engines (Simplilearn, Section 1, Slide 51).

Owned Media

Website

Domino’s owns and maintains a website which can be accessed by users to online purchase from the brand. For the information architecture of the website, Domino’s should use a flat structure in order to help the visitors view and process information in a faster way with about 10-12 navigation options at the initial stage which should display all the pizza options. Moreover, the next navigation stages should display about 4 options for toppings, type of bread, sides and cheese quantity. Furthermore, the subsequent navigation options should be limited to not more than 3 to enable better utility, clear context and ease of usage (Simplileran, Section 7, Slide 31). In addition, the taxonomy of the website should be done on the basis of various categories, with options provided to the users to filter these categories. These categories should include the type of pizza, size, type of cheese, client rating and price (Simplileran, Section 7, Slide 35). 

Earned Media

Search Engine Optimisation (SEO)

SEO can be done by targeting a large number of keywords and developing key partnerships with other brands whose webpages can then be directly linked to Domino’s. This, in turn, enhances the reach of the brand among consumers. Thus, it can help generate organic search results for Domino’s to improve its SEM (Simplilearn, Section 1, Slide 3-43).

Social media engagement

Domino’s should enhance its social media engagement with users by posting content on trending topics, popular culture or events. This will help increase its social media following and facilitate interactive conversations with the users. Moreover, Domino’s should also ask for opinions and develop an open dialogue to enhance its engagement with the consumers, and facilitate a better understanding of consumer preferences (Yost et al. 2021).

User-generated content (UGC)

In order to promote user-generated content, Domino’s should start a campaign where users send their videos while eating Domino’s pizza at a gathering. The aim of this company should be to promote users to share their unique experiences and stories while eating pizza together. This will not only drive social media engagement and brand loyalty for the company but also enhances its social media marketing (Adobe 2022).

Figure: Social media post that can be used by Domino’s to encourage UGC

Influencer Marketing

Domino’s should collaborate with influencers with a following of more than 1 million followers. Moreover, it should also collaborate with food vloggers to enhance its social media presence and promote the brand (Baker 2022).

Actions

The existing skills and resources of Domino’s are adequate for revamping its digital marketing strategies. Moreover, a time of three months can be designated for the development of content and approaches to facilitate the planned strategies and tactics. Moreover, the following actions should be taken by Domino’s to ensure the effectiveness of the strategies:-

1. It should acquire relevant keywords in order to facilitate its search engine marketing strategies.
2. It should develop key partnerships with other brands like Coke, Netflix or Disney to enhance its SEO as well as its reach among consumers.
3. The firm should post on social media to encourage consumers to share their unique experiences in video format in order to generate UGC.
4. It should collaborate with social media influencers, especially food vloggers, in order to enhance social media reach and engagement.

Controls

The key performance indicators (KPIs) that can be used to measure the effectiveness and conversion rate of Domino’s strategies are:-

1. The number of UGC videos collected by the brand that can be displayed on various social media platforms.
2. The number of followers, subscribers and likes on social media after revamping the strategy.
3. The click-through rate for its social media and search engine advertisements.
4. The number of searches about Domino’s on the Google search engine.
5. The interaction rate on interactive content developed by Domino’s on social media (Ghahremani-Nahr and Nozari 2021).

References

Adobe. 2022. User-generated content (UGC) — a guide to getting started. Available at: https://business.adobe.com/blog/basics/user-generated-content-ugc-a-guide-to-getting-started

Ahuja, K., Chandra, V., Lord, V. and Peens, C. 2021.Ordering in: The rapid evolution of food delivery. Available at: https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery

Baker, K. 2022. What Will Influencer Marketing Look Like in 2023? Available at: https://blog.hubspot.com/marketing/how-to-work-with-influencers

Beveridge, C. 2022. What is User-Generated Content? And Why is it Important? Available at: https://blog.hootsuite.com/user-generated-content-ugc/

Bhosale, P. and Deo, S., 2018. An examination of the inventory management system at Dominos.

Chaffey, D. and Smith, P.R., 2022. Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.

Domino’s. 2023. About Us. Available at: https://biz.dominos.com/about-us/history/

Drenik, G. 2021. Businesses Are Increasing Their Investments In Social Media As Consumers Use Social Media More Than Ever Before – Here’s Why. Available at: https://www.forbes.com/sites/garydrenik/2021/04/22/businesses-are-increasing-their-investments-in-social-media-as-consumers-use-social-media-more-than-ever-before--heres-why/?sh=7fa144907156

Forbes. 2023. Domino’s Pizza. Available at: https://www.forbes.com/companies/dominos-pizza/?sh=349092d16158

Ghahremani-Nahr, J. and Nozari, H., 2021. A Survey for Investigating Key Performance Indicators in Digital Marketing. International journal of Innovation in Marketing Elements, 1(1), pp.1-6. https://doi.org/10.52547/ijime.1.1.1

GlobalData. 2023. Domino's Pizza Inc: Overview. Available at: https://www.globaldata.com/company-profile/dominos-pizza-inc/

Global News Wire. 2023. Global Fast Food Market Size Poised To Reflect USD 998 Billion Mark by 2030, At a CAGR of 4.6%. Available at: https://www.globenewswire.com/en/news-release/2023/02/15/2608315/0/en/Global-Fast-Food-Market-Size-Poised-To-Reflect-USD-998-Billion-Mark-by-2030-At-a-CAGR-of-4-6-Zion-Market-Research.html

Green, D. 2021. The rise of the organic food market. Available at: https://www.cnbc.com/2021/09/22/organic-food-sales-surged-in-2020-higher-demand-and-cheaper-costs.html

Hirose, A. 2022. 114 Social Media Demographics that Matter to Marketers in 2023. Available at: https://blog.hootsuite.com/social-media-demographics/

Holtman, M. 2023. Why engagement rates are important on social media. Available at: https://dotknowledge.uk/articles/view-article/why-engagement-rates-are-important-on-social-media

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Kumar, N., Singh, P., Shan, L.P., Kee, D.M.H., Mei, L.T., Ying, N.W. and Zhi, O.Y., 2021. A case study on domino’s business survival strategy during the COVID-19 pandemic. International Journal of Tourism and Hospitality in Asia Pasific (IJTHAP), 4(2), pp.28-41. https://doi.org/10.32535/ijthap.v4i2.1055

Light, L. 2020. Domino’s Six ‘Can-Do’ Actions Lead To Increased Sales. Available at: https://www.forbes.com/sites/larrylight/2020/07/23/dominos-six-can-do-actions-lead-to-increased-sales/?sh=6e1cf6ed5ef7

Lindecrantz, E., Gi, M.T.P. and Zerbi, S. 2020. Personalizing the customer experience: Driving differentiation in retail. Available at: https://www.mckinsey.com/industries/retail/our-insights/personalizing-the-customer-experience-driving-differentiation-in-retail

Shaikh, E. 2020. Customer relationship management of Domino's Pizza. Available at: https://www.linkedin.com/pulse/customer-relationship-management-dominos-pizza-ezaz-shaikh

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Yost, E., Zhang, T. and Qi, R., 2021. The power of engagement: Understanding active social media engagement and the impact on sales in the hospitality industry. Journal of Hospitality and Tourism Management, 46, pp.83-95. https://doi.org/10.1016/j.jhtm.2020.10.008

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