We all know Domino’s Pizza for its amazing pizza. Many people love it and eat it on a regular basis. Italy is famous for pizza and Italian people understand the method to prepare a pizza in a more nutritious way compared to the American pizza sold by Domino’s Pizza.
So the question arises, why didn’t they manage to attract people in Italy, and how did this failure lead to the closure of all their shops in Italy after 7 years?
The most trigger point arrived when the pandemic started and lots of shops shut down because of no physical delivery service. This triggered new local shops to also go online to sell their product. Because of the various pizza recipes present in local shops, they delivered the best pizza compared to American pizza. This increased the competition among pizza products. Because of the capital of pizza Italian shops give competing with domino.
So understand the situation and act according to that to compete with the local market.
Before entering the market, understand where you are launching your product. If you think to enter a market that already has a lot of competition, then come with a better product that is at least five times better than what is already available.
In order to be successful in any market, it is essential to have a deep understanding of customer behavior in that particular geographic region. This way, you can develop a product that meets the specific needs and desires of the people in that area and provides them with an even greater level of satisfaction than they currently have.
If you want to expand into a new market, it’s important to understand the basic laws and not go in aggressive, opening up all over the country at once.
Instead, start with a few locations and get to know your customers before you expand. This way, you can avoid making the same mistakes that many big companies make when they try to take over a new market.
Domino’s Pizza was unsuccessful in Italy because they did not understand the market. They expected the same success in Italy that they had in America, but they did not take into account the competition or the difference in pizza recipes. When the pandemic hit, local shops went online and delivered better pizza than Domino’s, which led to the failure of the company in Italy.