Responses

Aaron Estelle 

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1. Research Domino's as a Global Corporation - provide their top five markets.

 Domino’s top 5 markets are the following in order: US – 5,692, India – 1,134, U.K./Ireland – 1,112, Australia/NZ – 805, Mexico – 711

1. Discuss some of the cultural adjustments that they had to make in different countries (choose at least three different countries to discuss).

The video pointed out a few key areas where Domino's had to make adjustments to appeal to the market they wanted to operate in.  In the United Arab Emirates, special maps had to be created because every street has three names that are used interchangeably.  In India, pepperoni was replaced with spicy chicken in respect to the cows, and in Japan, the most common adjusted topping is squid. 

It is worth noting that the Japanese language didn't have a word for pepperoni and customers were returning pizzas because they thought that there were peppers on it, but now it is in the language and one of the top pizza topping options in the country.

 

1. Is it important for international marketers to give back to the communities / countries that they do business in?

 Is it important, yes.  Is it required, no.  Is it a good idea and should you do it anyway, yes.  With competition, it’s becoming more difficult for companies to differentiate themselves from the next.  So it’s comes down to the point of “why should I spend my money with you”?  Consultant Rob Asghar attended a conference in which he had the opportunity to listen to panelists which included Arif Naqvi.  In the conference he noted that “Within a global society increasingly vexed by income inequality, conflict and environmental challenges, he and other event participants argued that the only smart long-term business move is to demonstrate a tangible commitment to the larger good” (Asghar, 2015).  Commitment to the larger good will show hows vested a company can be.  This in turn would lead to better appeal and influence to the public, which may result in brand loyalty.

 

1. Where would you suggest Domino's expand to next?

Taking a different approach to the question, it wouldn’t necessarily be a question of “where” but more so “how”.  “Unlike rivals, Domino's focuses on creating new tech and then develops engaging advertising around it to connect with customers and stand out in a fragmented field with national chains, regional stores and independent players” (Meyersohn, 2018).  It would be interesting to see Domino’s Pizza become more integrated in our lives through the mediums we use everyday.  How cool would it be to have Google Home or Amazon’s Alexa order pizza for you?  Or for real pizza enthusiast, have a recurring order for the 3rd or 4th Friday of the month reserved for “Pizza Day” for the kids, where you don’t have to go place an order, it’s placed automatically for you and your card is charged.

 

1. Also, watch the Subway International Expansion Video - what comparisons can you make between the Subway and Domino's international expansion?

Both companies had difficulties with distinct languages and diversity barriers. Both countries had to deal with lack of language understanding, in Japan there was no word for pepperoni, and the basis for business with Subway was the English language until they began setting up learning centers to different regions.  Religious laws for instance where beef wouldn't be on the menu in India, both companies had to make adjustments.

 

 

References

Asghar, R. (2015). How Corporate Social Responsibility Is Moving From Optional To Mandatory. Retrieved from  https://www.forbes.com/sites/robasghar/2015/05/07/how-corporate-social-responsibility-is-moving-from-optional-to-mandatory/#39b24b70462e

 

Meyersohn, N. (2018). Why Domino's is winning the pizza wars. Retrieved from  https://money.cnn.com/2018/03/06/news/companies/dominos-pizza-hut-papa-johns/index.html

Heather Macko

1. Research Domino's as a Global Corporation - provide their top five markets?

Dominos top 5 markets are in the following order: US – India – U.K./Ireland – Australia/NZ – Mexico

 

1. Discuss some of the cultural adjustments that they had to make in different countries (choose at least three different countries to discuss).

In the video, they pointed out a few important areas that they had to make adjustments to appeal to the correct market. In Japan, squid is a delicacy so they though it would be best to add it as a topping choice. In the U.S. Arab Emirates, the street names are interchangeable so they had to create a special unique map. And I think the most obvious change was in India. Cows are sacred and that means that peperoni is not allowed so the topping they use instead is chicken.

 

1. Is it important for international marketers to give back to the communities / countries that they do business in?

I think it is very important for international marketers to give back to the communities and countries they do business in. as discussed in the Starbucks discussion question, public relations is very important for your image. Being able to give back to the communities that you do business in will set you apart from the rest of the competition and stand out to the consumer. “Giving back is among the most important and valuable things an entrepreneur can do. Period. Giving back is where you give, and then nothing happens. No benefits for you, no recognition, nothing tangible gets sent your way. Your biggest and sole reward is the realization that you’ve made a significant change in someone’s life. And if not “significant” then a positive change nevertheless.” (Krista, 2018). Not only will the company stand out by giving back, but they will also have a generally nicer reputation.

1. Where would you suggest Domino's expand to next?

You would think that an American company that makes pizza that is supposed to be an “Italian” dish would maybe have some trouble going global, but it has been just the opposite for dominos. The combination of bread, sauce, and chees is so versatile that all they have to do is change the toppings to fit the culture they are in. I think the best place for Dominos to expand to next would be more Asian countries. Right now they have a few stores in Taiwan and it is very easy to make pizza Asian because you can add seafood as the top pinging instead of the American norm, peperoni. “So, Domino’s is capitalizing on the “joy of pizza” almost everywhere. The company just posted domestic same-store sales growth of nearly 5 percent during the fiscal fourth quarter and about the same percentage for its international stores for that period and for the full fiscal year. It was the 76th straight quarter of same-store sales growth abroad” (Buss 2018). It seems that recently, Asian countries like China and Japan have just recently started enjoying dairy like cheese so I think more expansion in Asia will take Dominos even further.

 

1. Also, watch the Subway International Expansion Video - what comparisons can you make between the Subway and Domino's international expansion?

In these situation, both countries had difficulties with the language barrier. For example, in Japan there is no word for peperoni and people were sending their pizzas back because they thought it was peppers, not meat. And subway is set up in the English language, so it is hard to make the transition in other languages. Also both companies sell beef in America but it is not allowed in India so that would be a big change they would have to make moving forward.

 

Buss, D. (2018). Domino's Global Growth Feeds Pizza Chain's Rising Success. [online] Forbes.com. Available at: https://www.forbes.com/sites/dalebuss/2013/03/09/dominos-global-growth-feeds-pizza-chains-growing-success/#265fdce23de4 [Accessed 31 Jul. 2018].

 

Krista, A. (2018). The Importance of Giving Back to the Community. [online] NIO. Available at: http://newinternetorder.com/giving-back-to-the-community/ [Accessed 31 Jul. 2018].

1. Research Domino's as a Global Corporation - provide their top five markets.

McKenna Phillips

According to Fun Facts, Domino’s over 15,000 stores deliver over 2 million pizza a day, supported by over 400,000 people  with 2016 global sales of $12.2 billion broken down to $5.9 domestic, $6.3 international.  These markets are huge, and the top five outside the US are surprising.  India has 1,134 stores, the U.K/Ireland 1,112, Australia/New Zealand 805, Mexico 711 and Turkey 520.  Despite the diversity of cultures the consistency of brand the fundamental business operations underscore the need of successful franchise in order to be successful in a given market.

1. Discuss some of the cultural adjustments that they had to make in different countries (choose at least three different countries to discuss). 

It is surprising that English does not always translate to English.  The franchise’s in the U.K. had to rethink the “One Call Does it All” because to call in the U.K. is to meet in person, not to call ahead and place your order.  Japan had no translation for pepperoni, and pizzas were being returned because customers expected small peppers, not meat.  The Philippines stores had to take placement on the street and direction for the stores in order to have proper Feng Shui for each store.  Domino’s ability to back up and change in order to meet market and cultural nuances demonstrates their ability to adapt to any market. 

1. Is it important for international marketers to give back to the communities / countries that they do business in? 

It is very important to give back.  No business wants to underscore the Ugly American.  When the franchises in Mexico take pizza to the orphanages in the area, they are focusing on children who are otherwise forgotten.  This builds strong brand recognition and partnerships.  In the US, Dominos feeds first responders with monetary and food support,  as well as supports Future Famers of American with college scholarship and advocacy programs.  Of course, it is not all selfless.  According to Capitalism.com, giving back builds public relations and good business practices build business.   

1. Where would you suggest Domino's expand to next?

Dominos recently opened a store in Dubai.  This may be the beginning of a new expansion market, as the middle east continues to open markets for a variety of businesses. 

1. Also, watch the Subway International Expansion Video - what comparisons can you make between the Subway and Domino's international expansion?

Subway tried to get into English speaking countries first, but the U.K. had no interest in the business.  The first store outside of the US was Bahrain.  England was further down the line, but our neighbor to the north welcomed Subway, because of brand recognition of travelers.  Bread products were not recognized locally in the international market and Subway had to adjust.  Both companies have adjusted menus to meet cultural demand and work to be proactive to adapt to the markets they enter.  Subway developed through word of mouth suggestions and often struggled in those markets, however, both are meeting with success as they develop products that meet the market and cultural demands of the area. 

Alexandra Stark 

1. Dominos is open in 85 countries and has over 15,000 stores across the world. According to Dominos, their top markets are the United States, India, United Kingdom/Ireland, Australia, and Mexico (2018).

 

2. There were many cultural adjustments when Domino’s entered global markets. When entering the British market, they had to adjust their heavy telephone number advertising. They did not understand that a call was via the phone. To them it meant a visit. In India, the had to replace pepperoni with spicy chicken to pay respect to the cultural norms. In the Philippines, they had to focus heavily on curb appeal and location. They place a large value on the “Feng Shui” of an establishment in this culture and Domino’s sites had to reflect that. In Japan, they had to re-introduce the pepperoni. The Japanese did not know what this was and often returned pizza due to the confusion with the topping. Once this was explained to them, it became a huge hit. The Japanese culture also value aesthetics. According to Beattie, presentation is also key. Patrons expect every slice to have precisely the same amount of toppings, which must be uniformly spaced and arranged. Shrimp, for example, are angled with the tails pointing the same way” (2012). This was another way to make their mark in a new culture. All of the aspects were different solely based on which country Dominos was operating in. 

 

3. It is very important for marketers to give back in the countries they do business in. By doing so, it shows that they are invested in the community and care about its citizens. It gets their name out there and proves to the citizens that they are there for more than just to make money. This plays a huge role in a company’s success in all markets. Dominos gives out large amounts of free pizza to the homeless and raises money for numerous charitable causes. 

 

4. Dominos should open their next restaurant in the British Virgin Islands. This is a very heavy tourist area the convenience of pizza would go great with the beach vacation mentality. Groceries in this area are often very expensive and buying assorted foods to make dinner can get expensive. Pizza would be an easy, convenient and potentially even cheaper dining option in this area. 

 

5. Subway and Dominos faced many of the same challenges. There was a language barrier as well as different cultural norms and social structure. Subway touched a bit more on the legal issues they faced but the cultural issues were very much the same. They both discussed how certain areas of the world did not eat certain meats. They were sure to exclude those items from the menu in those cultures. Another comparison was their training centers. Dominos already had a large headquarters where training was performed, and Subway eventually opened a training center. This allowed the companies to bring in employees from all around the world to ensure that the same basic training and level of knowledge was instilled in each employee. 

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