Domino's Pizza Entering Foreign Markets

Summary

Moving into foreign markets can be challenging if you don't get local input. Domino's faced issues when they expected other cultures to adapt to their methods but learned to adapt themselves. In England, marketing confusion arose from language differences, while in Japan, pepperoni was initially misunderstood. Domino's adapted menus with regional preferences, like spicy chicken in India. Expansion included understanding cultural nuances and developing master franchises, such as in Mexico, where the brand thrived despite economic challenges. Consistency, local partnerships, and adapting to local customs have driven Domino's global growth, making it a leader in the delivery pizza business across over 50 markets.

Takeaways

• 🌐 Expanding into foreign markets requires adapting to local cultures rather than expecting them to change for the business.
• 📞 Marketing slogans can have different meanings across cultures, as seen with Domino's 'One call does it all' slogan, which was misunderstood in the UK.
• 🍕 Domino's has steadily expanded internationally since 1983, reaching over 50 markets with over 3,000 stores outside the US by 2006.
• 🏆 Domino's aims to be the leader in the delivery pizza business, not just the pizza business, in every market it enters.
• 🇯🇵 Cultural adaptations are crucial, as seen in Japan, where there was no word for 'pepperoni,' leading to misunderstandings until it became the top pizza topping.
• 🌍 Domino's menu adapts to local tastes, with unique toppings like squid, tuna, sweet corn, and lamb in various countries.
• 🎯 Consistency in operations is emphasized across all Domino's stores worldwide, ensuring a similar experience regardless of location.
• 🧑‍💼 The company seeks franchisees with operational capabilities, not just financial resources, and provides extensive training and support.
• 💡 Innovative strategies like adjusting pricing in Mexico during an economic downturn helped Domino's become the top restaurant chain in the country.
• 🤝 Community engagement, such as feeding children in orphanages, has been a part of Domino's strategy to establish a positive brand image in different markets.

Q & A

What key mistake did Domino’s initially make when expanding to the UK market?

Domino’s initially used the U.S. marketing slogan 'One call does it all,' not realizing that in the UK, 'a call' meant a personal visit, confusing customers who thought they had to physically go to the store.

When did Domino’s begin its international expansion, and what was the first market they entered?

Domino’s began its international expansion in 1983, with the first store opened in Winnipeg, Canada.

What unique challenges did Domino’s face when entering the Japanese market?

In Japan, there was no word for 'pepperoni,' which led to confusion as customers thought it referred to a small pepper, causing returned pizzas. Eventually, 'pepperoni' became the number one topping in Japan, with the Japanese word for it simply becoming 'pepperoni.'

How does Domino’s Pizza ensure brand consistency across different international markets?

Domino’s maintains brand consistency by operating stores in a uniform manner worldwide. For instance, the storefronts, internal operations, and even the way pizzas are made are similar across different countries.

How does Domino’s Pizza adapt to cultural differences in different countries?

Domino’s adapts its menu and operations to align with local cultures. For example, they replaced pepperoni with spicy chicken in India due to Hindu reverence for cows, and in the Philippines, they select store locations based on Feng Shui principles.

What was Domino’s international growth strategy after 1985?

After 1985, Domino’s growth accelerated through the sale of master franchises in countries like Mexico, England, and Australia, allowing large public companies to run the operations in those regions.

What role does local marketing play in Domino’s international expansion?

Local marketing is crucial, especially in smaller countries where Domino’s doesn’t have the budget for television advertising. They rely heavily on print and other cost-effective marketing techniques tailored to the region.

What innovative strategies helped Domino’s thrive in the Mexican market?

Domino’s in Mexico grew significantly by lowering prices during an economic downturn and positioning pizza as an affordable family meal. Additionally, they created innovative marketing strategies like setting up stores in high-traffic areas like subway stations.

How does Domino’s support its franchisees globally?

Domino’s supports franchisees through commissaries delivering supplies twice a week, providing regular training and consulting visits, and helping with administrative tasks such as marketing and accounting.

What is Domino’s core strategy for success, both domestically and internationally?

Domino’s core strategy focuses on convenience and offering a great product. This approach, combined with adapting to local markets while maintaining operational consistency, has been key to its global success.