All Domino's Pizza Shops in Italy are Closing
Finally, Domino’s pizza is to close down all its stores in Italy by 2022. The U.S brand Domino’s Pizza opened its first store in Milano Italy seven years ago. It expanded around the county despite being shunned by traditionalists as opposed to North American innovations such as putting pineapple on pizzas. Domino’s pizza had big dreams of expanding to 880 restaurants by 2030. But all those dreams were dashed. Dominos says the coronavirus pandemic led to local pizza restaurants encroaching on their home delivery market. Adding to its votes the company's digital technology failed to bring in consumers and over half of its orders were made either in person or by phone. The company had established itself in Italy back in 2015 through a franchising agreement with “EP Zespa”. Meanwhile, traditional pizza markets scaled up deliveries or signed deals with third-party services such as delivery or just eat take away to bring their products constantly through the customer's homes. While covid-19 restrictions prevented dining out. Due to this, the customers also got used to delivering the food home and eating it and this gave the market opportunity to the local traders.
All these facts are told by the domino’s pizza company located in Italy. But what are the factors that caused Domino pizza to fail in Italy? Let us now discuss this problem through management knowledge.
The Failure in 7ps of the Marketing Mix
The management of Domino's Pizza located in Italy has not properly followed the 7ps of marketing mix strategy. An organization that properly plans these 7ps of marketing mix strategy can face any challenge in the future. The 7ps of marketing mix strategy are product, price, promotion, place/distribution, packaging, positioning, and people. The first 4ps in this 7ps of marketing mix strategies are very important. Domino's Pizza located in Italy has faced this crisis due to not changing the plans of its company to the current market situation in the distribution of goods and Domino's Pizza has not shaped its promotion plans according to external environmental factors and consumer preferences. This situation will not arise if Domino's Pizza based in Italy plans to provide free delivery service, in the beginning, to compete with other competitors and then charge money for systematic delivery. Also, they could advertise their company through social media and provide this service. Due to the fact that many customers turned to social media with the coronavirus, there was an opportunity to promote this free Domino's Pizza delivery service very easily. But due to the absence of such plans in Domino's Pizza located in Italy, the sales of this company decreased.
Marketing Strategies Problems
The marketing strategy followed by Italy-based Domino's Pizza was very poor. But when compared to Italy, Domino's Pizza companies located in other countries handle their marketing tactics very skillfully. For example, Domino's Pizza companies located in the South Asian region successfully carry out their marketing activities using a Global marketing strategy and Five global product and promotion strategies. The pizza industry in Italy which was traditional before 2019 was modernized after 2019 due to the impact of the Covid-19 virus. That is, before 2019, a majority of customers went to pizza restaurants to enjoy pizza, but after 2019, most of them got used to ordering pizza through the internet and various mobile apps. While other pizza restaurants have adapted to this consumer modernization, Domino's Pizza has not been able to. In marketing management, we call these Adaptation strategies.
How to use Social Media in the modern world my article for example
https://www.theknowledgelife.com/2022/07/social-media-marketing-in-modern-world.html
Country Category Effect
Italy is one of the countries that eat the most pizza in the world. Therefore, there are various pizza manufacturing companies and Shops in this country and there was also a pizza industry unique to that country. For this reason, a pizza manufacturer from another country cannot easily enter Italy and maintain its operations. In the same way, an organization from another country entering the Italy Pizza market must first conduct long-term marketing research and come to the market by raising opportunities from it.