International Marketing in Foreign Market Essay Example

an analysis to identify the ideal target market and position Domino's Pizza accordingly in their target customers' minds.

The chosen method of market entry will significantly impact subsequent performance. Evaluating both the local environment and Domino's market entry strategy in Manner will help determine an ideal target market.

The menu at Domino's Pizza consists of standardized choices as well as localized favorites tailored specifically for this region. Therefore, studying Manner's local preferences will determine how to strike an appropriate balance between offering standardized options or localized offerings.Choosing the locations for Domino's Pizza outlets relies on understanding the target audience and their preferred areas within the city. The challenge lies in determining an appropriate pricing strategy that allows for investment recovery while providing value to customers. Developing an efficient pricing strategy that aligns with the target market can be advantageous for success, especially in a new market with low brand awareness. Effective promotion plays a crucial role in establishing Domino's Pizza in this market, utilizing advertising, consumer promotions, and PR as part of a comprehensive promotional strategy. Before making significant decisions, it is important to analyze environmental factors, conduct revenue/expense forecasting, and perform trend analysis using available information to forecast Domino's Pizza's performance. Yang has been identified as an ideal entry point for Domino's Pizza in Manner due to its high disposable income, familiarity with international trends and brands, and numerous media vehicles present. With around 6 million people out of the nationwide total population of 86 million, Yang boasts an income per capita of $2000 compared to the national average of $640. The currency used in Manner is the Burmese stay (MGM).Currently, 1 EURO is equal to

MUKLUK. Table 1: Environmental Analysis

Economic Environment:
- Annual disposable income has been gradually increasing, leading to higher spending on food and dining out.
- Consumers now have more purchasing power.
- Positive trends are demonstrated by Manner's GAP and FAD.

Culture Environment:
- Dining out is viewed as a way to display social status.
- The preference for collectivism results in an appreciation for family meals.
- There is an increasing demand among affluent locals for Western cuisine.

Political Environment:
- The government has taken steps to attract international investments, making it easier for foreign investors to establish businesses in Manner.
- The government facilitates remittances to home countries.

Marketing Plan:
2.0 Marketing Plan: [Missing information]
1.By segmenting the Yang population based on their needs and characteristics, Domino's Pizza can target the most advantageous customer group. The initial step in segmentation involves choosing criteria for classifying segments. Table 2: Selection of Segmentation Bases

Segmentation Base | Reason for Selection
Geographic | Location of outlets plays a crucial role depending on the targeted consumer segment.
Demographic Factors | Age is an important factor influencing marketing strategies, including promotions and customized messages. Marital Status, occupation, income, and lifestyle all play a significant role in influencing consumer purchasing behavior. For example, the demand for Domino's Pizza in Burma will depend on the occupation levels/status of the population. Setting reasonable prices that target the maximum number of consumers within a specific income level is crucial.

The Burmese lifestyle has a major impact on food preferences, spending habits, and occasions for trying different foods. Different consumers with varying socioeconomic status will have diverse perceptions of value and exhibit distinct preferences and buying habits within the fast food industry.

Factors such as awareness level, user-situation segmentation,

benefits sought, market awareness of Domino and its product range can affect consumer buying patterns. Additionally, whether or not customers share the product can also influence these patterns.The analysis of factors such as age, occupation, marital status, income, and lifestyle allows Domino's Pizza to identify different market segments. These segments include youngsters, just-married families, elders, suburban residents, and urban residents. Demographic factors like age (18-27 years, 28-35 years, 36-40 years), occupation (student; white-collar; blue-collar; professional), marital status (single; married), income (low to medium; medium to high), and lifestyle (joyful life) play a significant role in consumer behavior. Socioeconomic status also influences consumer preferences. Upper-middle class and middle-class consumers prioritize family first while lower-class consumers prioritize children first.

Consumer awareness of Domino's products and services varies among individuals. Some are familiar with them while others remain unaware. User-situation segmentation enables individuals to categorize themselves based on their level of awareness or through the influence of friends or family.

When making purchasing decisions, customers seek various benefits such as social acceptance, convenience, value-for-money,

safety

quality convenience,

and health considerations.

Targeting strategies involve evaluating and selecting specific market segments that a company will serve.Domino's Pizza can take advantage of localization and ownership to reduce costs and increase profitability by targeting specific approaches. To accurately assess growth potential and profitability, it is important for Domino's Pizza to analyze the size and growth trends in each population segment. Porter's five forces analysis helps determine the attractiveness of a segment by considering competition levels, threats of obstruction, supplier power, and buyer power. Company objectives and available resources should also influence decision-making when selecting target segments. If a segment aligns with these criteria, Domino's Pizza should pursue it

only if they can provide superior value and competitive advantage over competitors. Extensive research on consumer trends and behavior within the market is necessary to choose an effective target segment, followed by evaluating its attractiveness. Table 4 outlines the selected target market segments for Domino's Pizza in the Manner market where brand loyalty is moderate among consumers who are open to trying new things rather than sticking to one brand. However, Domino's Pizza has a better reputation than local teashops, giving non-users a sense of higher social class. Therefore, there is potential for Domino's Pizza to focus on this market.
Table 4: Selection of Target Market Marketing Segment | Youngster | Just-Married family | Elders | Competition

The previous text highlights the use of Porter's five force analysis to evaluate the attractiveness of different segments in terms of structure. This analysis takes into account factors such as competition, barriers to entry, supplier influence, and buyer power.

It also emphasizes that Domino's Pizza needs to consider its own objectives and available resources before choosing specific segments to target. Along with this alignment with company criteria and objectives using Porter's framework, it is important for brands like Domino's Pizza to offer superior value propositions and competitive advantages compared to their competitors.

To effectively assess the viability of a target segment, companies like Domino's Pizza must thoroughly research consumer behavior trends and preferences within specific markets. In the case of the Manner market, Domino's Pizza has identified three distinct segments: "Youngster," "Just-Married family," and "Elders." These segments show moderate brand loyalty as consumers in these age groups are open to trying different brands rather than remaining loyal to one particular brand.

However, when

compared to local teashops, Domino's Pizza has a better reputation which gives non-users a sense of higher social status.Therefore, targeting this specific market segment holds potential for success. If consumers accept Domino's Western pizza, brand loyalty can develop among those who frequently act in groups or families. Currently, there are no large international fast food chains like KEF or McDonald's in Manner due to investment restrictions. The competition mainly involves Marry Brown and local teashops that offer fast food options. However, Domino's Pizza's stronger reputation makes their financial success more crucial as families in this life stage have increased financial responsibilities, such as saving for their children's future education. As a result, Domino's Pizza may face competition from other brands offering more affordable alternatives. This consumer group tends to switch between brands frequently, leading to a high threat of substitution. Despite the availability of various dining options, many individuals within this segment still specifically desire Domino's Pizza. The price reductions offered by competitors pose a threat because these consumers are unlikely to spend a significant amount on food. Moreover, buyers in this segment have substantial disposable income due to early financial success and lack of obligations or family attachments. With great joy and significant buying power already experienced by many in this segment, they make an ideal target for Domino's Pizza.

Domino's Pizza is targeting the segment of just-married families, who are in the early stages of marriage and have few financial obligations towards their families. Despite their wealth, these families have future family plans and saving burdens that require spending control. To capture their attention consistently, Domino's Pizza will invest effort into promotions and strategic

plans. Fortunately, Domino's Pizza already knows how to appeal to this group.

Attracting wealthier families may require adjustments to the brand's style, perceived quality, and distribution capability but should not be a major challenge. This price-conscious segment will require significant resources to attract them. The market's attractiveness depends on effectively identifying, measuring, remaining stable within the segment and accessing it.

Domino's Pizza determines the number of segments they should focus on through a targeting process that balances their resources and capabilities. They have chosen just-married families as their target market in order to maximize profits because this consumer segment is known for high brand loyalty and greater spending power. With experience targeting families already under its belt, Domino's Pizza can easily focus on this specific group.

To differentiate themselves from competitors and establish a unique brand name, it is essential for Domino's Pizza to effectively communicate and promote its product image.The text discusses the positioning of Domino's Pizza in the Manner market and emphasizes the importance of high cleanliness standards and catering to individual tastes. When customers visit a Domino's Pizza outlet, the goal is for them to feel like they are entering a top and delicious fast food pizza store. The overall company strategy is for Domino's Pizza to be seen as the "best for my family" in terms of lifestyle in Manner. To achieve this, Domino's Pizza focuses on two crucial attributes: Family-Orientation and Perception of Cleanliness.

Figure 1, a perceptual map, is used to analyze competition and identify differentiating factors for Domino's Pizza in Manner. The desired position is within the top right quadrant of the map compared to its competitors. When entering new markets or

segments, companies must carefully choose their marketing entry strategy. In this case, franchising is seen as a successful strategy in the fast food industry. It allows a franchiser like Domino's Pizza to partner with a local business and establish franchise outlets throughout the country.Most Domino's Pizza outlets worldwide operate through franchising, with only 10% being company-owned. Although the current franchise market in Manner is small, it is expected to grow due to stable economic growth. Local investors and potential franchisee partners are becoming more familiar with US franchising concepts, which will make it easier for Domino's Pizza to enter Manner. By establishing franchise outlets, Domino's pizza can reduce risks faced by business owners such as investing capital and acquiring space for restaurants and day-to-day operations. This helps minimize the expected risk in the foreign market. Franchisees gain access to business experience and technical know-how in managing the business. To maintain a high level of service and standards for customers in Manner, Domino's pizza conducts training for local employees while ensuring consistency with their global standard. They also need to consider government rules and regulations required by the Ministry of Trade in Manner for registering the franchise. It is crucial for them to weigh the benefits of operating in an unfamiliar environment against any potential disadvantages. Continuous monitoring is essential to ensure that franchisees comply with food safety standards.
Domino's Pizza, with its extensive global presence of over 10,000 stores across more than 70 countries, has been a pioneer in the pizza delivery business since 1960. Selling an impressive 400 million pizzas worldwide annually (as stated by Seller (1991)), they have enjoyed nearly five decades of success

and currently hold a prominent position as the second-largest player in the pizza industry. This longevity and growth can be attributed to their ability to establish and maintain their original marketing mix strategy.

As Domino's Pizza ventures into the Manner's market, it is recommended that they continue with this successful strategy. Their pizza products are well-known for their convenience, high quality, and affordability. Catering to both vegetarian and non-vegetarian customers, their menu offers a variety of options. Furthermore, they provide top-notch outlets for in-house dining.

Aside from these features, Domino's also emphasizes superior service, creating a welcoming environment and ensuring cleanliness (Domino's, 2013). In order to sustain their triumphs in the future, it is crucial for them to identify factors that may require adaptation or addition to their menu offerings (Seller, 1991).

For multinational corporations like Domino's Pizza, product adaptation plays a significant role as they often need to tailor their offerings based on consumer preferences as well as abide by laws, customs, and religious requirementsWhen considering markets heavily influenced by Buddhism, such as Manner where dietary restrictions prohibit beef consumption, it is important for Domino's Pizza to offer vegetarian pizza options to cater to these requirements. Unlike in the USA, Domino's Pizza faces specific requirements in Manner. Another potential adaptation that could benefit Domino's Pizza is ensuring that their restaurants comply with halal standards as observed in Malaysia. These adaptations aim to meet the changing needs and demands of customers while respecting cultural norms and regulations. A key factor contributing to the success of Domino's Pizza in Manner is its strategic distribution strategy, which allows effective product delivery. This strategy generates local market publicity, attracts consumer attention,

and helps Domino's stay competitive against other competitors. The selection of attractive locations is crucial for increasing market share, sales revenue, and credibility, especially in commercial areas with high foot traffic during meal times like malls or densely populated areas popular among tourists. Additionally, maintaining impeccable hygiene standards within the restaurants plays a vital role in preserving their reputation.Domino's Pizza aims to attract tourists in nonpaying airports by maintaining cleanliness and meeting health requirements. They strive to create a clean and comfortable atmosphere to cultivate customer loyalty. To establish their distribution strategy in Manner's market, Domino's plans on offering unique amenities such as children's playgrounds, drive-in service options, and efficient delivery services. Their expansion efforts will target locations with high customer and tourist concentration, commercial areas, and densely populated city centers to increase brand awareness. Considering the competitive local environment is crucial for sustainable business growth and gaining a higher market share in the fast food industry in Manner. Domino's must develop pricing strategies that take into account the global market impact. They can choose between different pricing strategies like "Price Skimming" or "Penetration Pricing" to maximize profits.Price skimming and penetration pricing are two different strategies in setting prices. Price skimming involves initially setting a high price to cover costs, while penetration pricing sets a low price to gain market share (Lowe & Albert, 2010). However, it is recommended that Domino's use the penetration pricing strategy. This will help them acquire a local market share in Manner and change consumers' perception of affordability and value. By offering lower prices compared to others in the market, Domino's can compete based on price and cost within the

local fast food industry in Manner. The pricing capabilities of Domino's play a crucial role in determining their performance as they give them a competitive advantage and profitability. Consumers demonstrate a higher willingness to spend on Domino's when analyzing pricing strategies because they understand the value they get from their purchases.

To successfully enter the Manner market, it is suggested that Domino's create a distinct perception of providing the best pizza with regards to cleanliness and freshness. Additionally, creating menus that cater to cultural preferences, strategically positioning restaurants to meet customer needs, and targeting potential customers through brand awareness campaigns and advertising efforts are also recommended strategies for Domino's.