MODULE 5 CASE STUDY: DONATOS
Case Study: Donatos: Finding the New Pizza Assignment
Lateshia Blakely
Liberty University
BUSI 600: Business Research Methods
Dr. Sandra Bartholomew
February 2023
MODULE 5 CASE STUDY: DONATOS 2
Question 1
The research design used by Donato's for new product development included
market research, customer feedback, and testing. The company first conducted a phone
survey to test various names for their dough less pizza. They then tested the product in
two stores before rolling it out at all 184 locations. They followed an interest and
answered through telephone tracking investigations, customer emails from the website
and in-restaurant comment cards. They also discovered that their product had the
potential for a previously unidentified market segment of gluten-free customers. This
research design allowed Donato's to develop a product that met customer needs and
expectations.
Besides, the research design also facilitated Donato's to make informed decisions,
move quickly and stay ahead of the competition. By taking advantage of key strategic
windows like New Year resolutions to push their product, they were able to increase sales
and build awareness quickly. This was made possible with the help of a well-planned
research design. Another advantage of the research design was that it allowed Donato's to
identify unmet customer needs, which helped them develop innovative product offerings.
This helped them to upgrade their existing product offerings and to stay ahead of the
competition. It also gave them valuable insights into customer preferences and needs,
which further helped them tailor their product offerings accordingly. This enabled them to
stay ahead of the competition and remain successful in the market.
Question 2
There are several advantages to using Wassup conferences as an exploratory
methodology. Firstly, the Wassup meetings helped Donato's to identify customer needs
MODULE 5 CASE STUDY: DONATOS 3
and preferences quickly and accurately. These insights were then used to develop their
No Dough® pizza and other products. It also allowed Donato's to gain valuable feedback
from their customers in a non-traditional way. This feedback was then used to make
necessary changes and improvements to their products. Besides, it allowed Donato's to
make informed decisions based on customer opinions and preferences.
The Wassup meetings helped Donato's build relationships with their customers
and gained a better understanding of their needs. This helped them create strategic
marketing campaigns that were tailored to their customer's needs and preferences. Thus,
Wassup meetings are an effective exploratory methodology that can be used to support
and define the investigation question.
Another advantage of the Wassup meetings is that they allowed Donato's to gain
insights from different demographics and customer groups. This helped them identify
trends early on and make necessary changes or improvements before it was too late. The
feedback they received from these meetings also helped them better understand their
customers and tailor their products accordingly. Thus, it can be said that Wassup meetings
were an effective exploratory methodology that helped Donato define their research
question and develop its products accordingly.
Besides, the Wassup meetings also provided Donato's with a platform to receive
timely feedback from their customers. This allowed them to adjust their marketing
campaigns and product offerings as needed. For instance, they used feedback from the
Wassup meetings to come up with a new product offering gluten-free pizza. Another
advantage of the Wassup meetings is that they allowed Donato's to reach a wider
audience and gain valuable insights from outside their local area. This enabled them to
MODULE 5 CASE STUDY: DONATOS 4
expand their customer base and understand customer needs on a larger scale. It also
helped them to develop a better understanding of the global market and their competitors.
This is because the Wassup meetings provided Donato's with a platform to receive
feedback from customers outside their local area. Lastly, the Wassup meetings were also
cost-effective and time-efficient, which made it an ideal exploratory methodology for
Donato's. The cost and time efficiency of the Wassup meetings allowed Donato's to
quickly and accurately identify customer needs and preferences. This enabled them to
develop their products in a timely manner without going over budget.
Question 3
Donatos' test market had a number of advantages as well as some disadvantages.
Firstly, the ability to test their new product in the market without having to launch it
nationwide was beneficial and allowed them to measure its success before committing
more resources. Additionally, they were able to use this process to incorporate feedback
from customers into their products, which allowed them to customize their offerings and
tailor them for different segments of the population. Finally, with a relatively small
sample size, they were also able to quickly refine their product offering using limited
resources.
However, there are some disadvantages associated with Donatos' test market
approach. For example, while they may have been able to make quick decisions based on
customer feedback, they only had access to small sample size, meaning that their data
may not have been statistically significant. Additionally, the test market approach is a
time-consuming process and requires resources that could be better used elsewhere
(Menold, 2020). Finally, it is possible that customers in the test market are not
MODULE 5 CASE STUDY: DONATOS 5
representative of the broader population, which means that results may not be applicable
on a larger scale.
All in all, Donatos' test market was an effective way for them to get accurate
feedback from customers on their products without having to launch nationwide.
However, it also presented some disadvantages due to its sample size and time intensity.
With proper planning and implementation, however, these issues can be mitigated and
make test marketing a viable option for many companies looking to gain insight into
customer preferences before committing too many resources.
Question 4
The type of measurement scale to be utilized on the survey that was part of the in-
restaurant product ordeals will depend largely on the research objectives. If the goal is to
measure customer satisfaction with a specific product, then a Likert Scale could be used,
which allows customers to rate their level of agreement with statements about the
product. On the other hand, if the objective is to assess customer preferences for different
ingredients or topping combinations, then an ordinal scale could be used, which would
allow customers to rank their preference for each item from most preferred to least
preferred (Schindler, 2019). Besides, it may also be beneficial to use open-ended
questions, which give customers the opportunity to provide more detailed feedback and
explain why they chose certain items over others. Ultimately, the most suitable
measurement scales will depend on the research objectives and should be carefully
considered when designing a survey.
In addition to measuring customer preferences, it is important to consider how
other factors could influence customer satisfaction with a product. For example, if the
MODULE 5 CASE STUDY: DONATOS 6
speed of service is an essential component of success for the restaurant, then it may be
appropriate to include questions that assess wait times or the efficiency of staff in
responding to inquiries. By collecting this data alongside feedback regarding products,
restaurants can gain valuable insight into how they can improve their overall customer
experience and build better relationships with customers.
References
Menold, N. (2020). Rating-scale labeling in online surveys: An experimental comparison of
verbal and numeric rating scales with respect to measurement quality and respondents'
cognitive processes. Sociological Methods & Research, 49(1), 79-
107. https://doi.org.10.1177/0049124117729694
Płaza, G., & Ulfig, K. (2018). Safety of commercially viable bio-based products: labelling and
standardization. Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika Śląska.
Schindler, P. S. (2019). Business Research Methods (13th ed.). McGraw-HillEducation.
Sherwood, J., Clark, J. H., Farmer, T. J., Herrero-Davila, L., & Moity, L. (2016). Recirculation: A
new concept to drive innovation in sustainable product design for bio-based products.
Molecules (Basel, Switzerland), 22(1), 48. https://doi.org/10.3390/molecules22010048
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