Analysis of the Effectiveness of Localization Strategy

Abstract

This study focused on the explication of the localization strategy utilizing a case study of Domino’s Pizza in the Indian market. The study was anchored on three significant research questions including: How effective is the localization strategy in the Indian market? How is Domino’s applying the localization strategy in the Indian market? What is the benefit of using the localization strategy over the standardization strategy in the Indian market by Domino’s Pizza? The research questions were important in evaluating the effectiveness of the localization strategy in the international market while at the same time offering recommendations for improving the use of the strategy.

MiniCalc with vip services

In this study, the researcher answered the questions by first reviewing the literature related to the localization strategy in different markets in general and in India specifically. Previous literature sheds light on the variables influencing the adoption of an effective strategy such as localization. The researcher also answered the questions through primary data where both customers and employees at Domino’s were interviewed.

The findings in response to the research questions indicated that the localization strategy is effective because it significantly corresponds to the local tastes of consumers. More so, it was established from the research questions that the application of the localization strategy becomes more successful when the company is able to conduct market research and analyze consumers appropriately based on their cultures, preferences, and tastes.

The key conclusions that could be drawn from the research questions are that localization can be successful in the international market because it addresses the real needs of consumers. Another conclusion that could be drawn from the research questions is that effective localization gives a company the opportunity to increase its competitiveness in the international market because of effective consumer satisfaction. Thus, firms should be keen to understand how the localization strategy works and be ready to adopt it.

Introduction

Background

Companies around the world are always looking to take advantage of the increasing level of globalization in order to move into newer markets. Newer markets play an instrumental role in increasing their sales, competitive advantage, and the ultimate level of profitability. However, it is worth understanding that the newer markets that these companies move into differing significantly from their domestic markets in terms of the cultural, social, and economic conditions of consumers. Thus, they always have to modify their products to ensure that they are responding to these aspects for successful performance in international markets.

A classic example of a company that has focused on internalization is Domino’s Pizza. Commonly referred to as Domino’s, the American-based pizza restaurant chain has franchises all over the world. Its headquarters are located in Ann Arbor Charter Township, Michigan. The pizza restaurant was founded in 1960 and it is one of the largest franchised pizza chains in the U.S with operations in 81 countries (Henry 2010).

The specific focus of this dissertation is the operation of Domino’s Pizza in India as part of its international market with respect to how it tries to satisfy the needs of consumers in the market. Specific attention is paid to its localization strategy as it aims at ensuring that its products in the Indian market are consumer-oriented and tailored to meet their specific needs based on their cultural, economic, and social standings as consumers. It is worth distinguishing standardization from localization as the former is concerned with the provision of uniform products for consumers in the market while the latter focuses on the alignment of products with the cultural attitudes of consumers in the international market. The choice of a good strategy is vital because it leads to easier penetration into this competitive Indian market with many consumers.

Problem Statement

Moving into the international market has been quite fruitful for Domino’s Pizza since 1983 when it opened its first restaurant outside the U.S. in Winnipeg, Manitoba, Canada. The company’s first presence in India was felt in 1996 when it began its operations in New Delhi as Domino’s Pizza India Ltd before ultimately changing the name of the franchise to Jubilant Foodworks Ltd in 2009 (Henry 2010). The reason for focusing on Domino’s in India is because India is the second-largest market for Domino’s after the United States with an estimated 1,004 chain stores across the country. However, while operating in the Indian market, the company has faced challenges when it comes to settling on either product standardization or localization to meet the needs of consumers. Since India is a country where many consumers base their decisions on cultural and social elements, it is quite problematic for the company to predict the best strategy to use in order to meet the demands of consumers.

Ultimately, the goal of the company is to succeed in the market as part of its internationalization strategy. More so, both standardization and localization approaches have their own advantages and disadvantages that pose challenges to the immediate choice of either strategy. For instance, localization is advantageous in terms of responding to the local needs of consumers, expediting local business development, and increasing market share. On the other hand, it exhibits various disadvantages including lack of knowledge transfer, lack of economies of scale, limited control, and challenges in the global image. Standardization has advantages such as the enjoyment of economies of scale, experience and knowledge transfer, uniform global image, and easier control and monitoring (Srinivas 2015).

Nevertheless, standardization is also disadvantageous because it exposes the company to government regulations, does not always respond to consumer interests and needs, leads to a multi-product, and affects the market share of the company. One of the key reasons why the researcher selected this research area is because of its effect on the competitive ability of the company with respect to the strategy chosen. Furthermore, this research area was chosen because of the specificity of the Indian market with respect to consumer culture and social attributes when choosing the products to consume. India provides a classic example of such consumer preferences.

Research Aims, Objectives, and Questions

Research Aim

The primary aim of this dissertation is to evaluate the effectiveness of the localization strategy as employed by Domino’s Pizza as it solidifies itself in the Indian market.

Research Questions

The research questions guiding this study as developed from a general perspective to a specific perspective are as follows.

  1. How effective is the localization strategy in the Indian market?
  2. How is Domino’s applying the localization strategy in the Indian market?
  3. What is the benefit of the localization strategy over the standardization strategy in the Indian market by Domino’s Pizza?

Research Objectives

The research objectives guiding the research are:

  1. To analyze the localization strategy of Domino’s India.
  2. To analyze the effectiveness of the localization strategy in catering to Indian customers.
  3. To identify the challenges faced by Domino’s India when catering to Indian customers.
  4. To provide recommendations to Domino’s India to improve its localization strategy.

What our Clients say

Check out our customers' feedback
# 1616 | Research paper

Thanks GUYS! I'm awestruck by the majestic attitude you guys have. You truly helped me. The paper you offered was even more advanced than my level. I got A....THANKS once again!

11:28 AM, 19 Sep 2018

# 1616 | Research paper

Thanks to Exclusive-Paper.com, I managed to pass an extremely difficult subject!

10:44 AM, 19 Sep 2018

# 5436 | Research paper

Exclusive-Paper.com indeed proves to be the most credible writing company. When I got my essay, I wanted to change some parts. I sent a revision request and received an amended version just like I needed.

12:39 PM, 19 Sep 2018

Literature Review

Introduction

Companies continue to adopt the internationalization strategy with the view of expanding their markets and increasing their levels of profitability. This chapter will explicate the theories explaining the internationalization of companies and the subsequent adoption of the localization strategy with the view of meeting the needs of their consumers in the market. Localization is theoretically explained hence ensuring that the key elements it points out are effectively captured on the study (Anastasiou & Schäler 2009). Some of the key theories that are discussed in this chapter include location theory, internationalization theory, and the internalization theory. These theories offer a significant understanding of the factors that make it necessary for companies to localize their products to fit the cultural tastes of the local market (Alon & Jaffe 2012).

More so, the previous literature concerning this topic has been explicated while also incorporating the debate on the various aspects of in-depth analysis. A debate range from those who support different views on the personal ideas of the researcher. The chapter concludes with a conceptual framework that illustrates the stages that illustrate internationalization and the ultimate satisfaction of the needs of consumers at any given time. Attention is paid to the localization strategy of Domino’s Pizza in the Indian market.

Theories of the Localisation Strategy

The first most significant theory explaining the need for localization strategy is the location theory. Accordingly, the location theory primarily focuses on the key questions in terms of who produces goods and services and the target locations for these goods (Beugelsdijk et al. 2013). Therefore, it emphasizes that companies intending to move to international markets must keenly consider the basis for their initial location decisions to understand the impact of altering their production incentives. From a personal perspective, the location strategy has a significant influence on the kind of products that the organization will produce once it penetrates international markets (Schäler 2003).

However, the theory points out that it is the responsibility of firms to get out their way to research the new markets and determine the kinds of resources available before venturing into the production process. The economic state of the country and the particular tastes and preferences of consumers have to be researched in the chosen location for the right decisions to be made in line with the location aspect (Cateora, Gilly & Graham 2010).

It is fundamental to create products that are specific to the location for the highest levels of profitability to be realized on the part of the company. In most instances, a company will stand a better opportunity to maximize the market in instances where it is able to understand the location and develop products that match the demands of the host country in respect to the economic and cultural aspects of the place. Thus, a firm gains more effectively in the market in instances where it has the opportunity to localize its production hence matching the attitudes and interests of the local consumers (Menon 2014).

From the researcher’s point of view, a company should have a perfect understanding of the kind of culture that exists in different locations seeks to enter. This understanding should be gained through benchmarks with the practices of competitors and general market research by the company to have an understanding of the market.

The internalization theory seeks to explain the reasons why a company would choose either to use the leasing or licensing methods for the sale of its products in another country or decide to produce abroad through Foreign Direct Investment (FDI) itself (Shenkar, Luo & Chi 2014). The theory suggests that most companies prefer to produce through Foreign Direct Investment in a new country because of the changes in the landscape and the attitudes of consumers as countries changes across the world. While studying the theory in 1976, Buckley and Casson postulated that companies are most likely to succeed in foreign markets in instances where they are able to minimize government regulations through the right actions of producing products that match the local preferences and tastes (Cateora, Gilly & Graham 2010).

In this case, the internalization strategy works better in cases where the products that are provided match the beliefs of consumers of the country. Otherwise, the government is always likely to put tough measures and restrictions on companies that do not uphold the principles of internalization by responding to the cultural attitudes and expectations of consumers (Menon 2014). In a personal opinion, the most interesting thing about internationalization is that it also puts the company in a better position for profitability because of the increased size of the market it is able to cover in the course of trying to satisfy its customers.

However, from personal research, it is clear that competition in a foreign country is always anchored on the aspect of appealing to the requirements of consumers through internationalization. Once a company has the backing of the government by avoiding excessive regulations, it is always in a better position to succeed in the market.

The product life cycle theory is also fundamental in terms of explaining the strategy that a company is supposed to embrace as it gets to the international market (Alon & Jaffe 2012). It is worth noting that the product life cycle theory focuses primarily on explicates international production capturing aspects that are omitted in the traditional neoclassical theory. The theory brings out the view that high levels of innovation are always expected to occur in markets that are unsatisfied and where the per capita income and the purchasing power of consumers are high because of the need to sell products that exhibit high prices (Cateora, Gilly & Graham 2010).

Thus, there is always an increase in the research and development costs in foreign markets because companies have to understand the nature of the innovations to add to their products to make them outstanding and marketable. In tandem with the theory, product standardization becomes more convenient in instances where the company is able to get quicker feedback on the nature of the operations expected (Johnsson & Foss 2011). From a personal perspective, the company tends to begin its operations in the market through standardization before ultimately moving to the production of specialized products as the level of competition increases. In order to respond to the competition, the company has to localize its operations and provide products that are responsive to the consumers' needs (Metin & Kizgin 2015).

Based on the researcher’s personal research, successful companies take the time to study the market and the possible trends that are likely to occur in the market. They make the most out of any foreign market that they move into and this is simplified by the adoption of localization, which is a better strategy for success in these markets. Indeed, a company moving into the international market will not be profitable if it cannot adjust and adapt to the cultural interests of consumers.

Review of Past Literature

Localization is becoming more popular in the contemporary business world as organizations focus on addressing the needs of consumers in the markets (Schäler 2003). Accordingly, localization is concerned with the adoption of the content of the local market and ensuring that customers are served based on their attitudes and perceptions about the products. From a personal point of view, it could be quite difficult to change the production mechanisms to suit a specific market because of the costs that are incurred, but this becomes necessary when there is a need to gain from the market and out-compete other businesses (Alon & Jaffe 2012). The researcher’s personal view is that the localization strategy is effective because it shows that the company respects its customers and is focused on satisfying their needs. It is important for the role it plays in strengthening the company’s market in different countries through the support that comes in from customers.

Therefore, companies must be receptive to change and must be ready to satisfy their customers through the localization strategy. Haron (2016) compares localization to standardization using their advantages and disadvantages. Localization is advantageous because it is highly responsive to the local needs of consumers and this is quite vital for a company focused on succeeding in the market. Meeting the needs of customers is a priority for every company that is determined to succeed in the market. Additionally, the localization strategy is advantageous because it leads to the growth of the local business in the country where the company is moved for operations (Prakas & Singh 2011).

Competition is easily repulsed in instances where companies localize and use their strategies in the course of their operations. Lastly, there is always increased income and market share for companies that localize their operations because of a larger consumer base they have to serve. On the downside, localization inhibits the transfer of knowledge to the new country of operation, it limits the enjoyment of economies of scale, there is limited control, and it affects the consistency of the company in terms of its global image (Masanori 2012).

Haron (2016) concludes by suggesting that companies would be more successful in the international market if they adopted a strategy that partially standardizes some concepts and partially customizes others in the marketing mix. From personal research, the researcher establishes that combining the two strategies can be cumbersome in some instances and it would only be appropriate for a company to choose one of them for more success in the international market. In line with the location theory, it is critical to choose one strategy that addresses the needs of the market and from a personal perspective, localization would be an appropriate strategy to address the most pressing needs of customers in the market.

Guarantees

Exclusive-Paper.com is a leading custom writing service, the professionals of which are always ready to write an essay, research paper, book report or any other kind of academic papers writing. You may rely on us - Exclusive-Paper.com will deliver the best orders strictly on time. Our highly-educated professionals will do their best to help you receive the highest grades.

Standardization is all about adhering to the homogenization of markets hence allowing for the production of similar products (Wang & Yang 2011). From a personal point of view, standardization tends to work well for products that are not necessarily associated with the cultural aspects of individuals around the globe. It is more appropriate for products that have conventional use and neutral meanings. The product life cycle theory would better explain standardization in such a way that as companies focus on satisfying their customers in entirety, they look forward to engaging in more innovations to make their products more appealing in the market while aiming to maintain the same standard for customers (Guang & Trotter 2012).

From a personal perspective, the product life cycle theory when applied to the standardization strategy would be more appealing if customers are not affected by their cultural aspects in the consumption process. Standardization is advantageous because it allows companies to enjoy the economies of scale since companies have better operations compared to the locally situated ones. More so, Haron (2016) argues that standardization is advantageous because it facilitates the transfer of experience from one country to the next while at the same time giving the company’s products a uniform global image. Lastly, companies have easier control of their operations in instances where standardization is utilized. On the other hand, standardization is disadvantageous because it exposes the company to governmental and institutional restrictions in a foreign country. Other common disadvantages include the failure to recognize the differences in the marketing infrastructure of different countries, ignorance of customer interests and response patterns, and the inability to provide multiple products to consumers (Haron 2016).

Localization vs. Standardization

When moving to the international market, there is always a debate on whether companies should localize or standardize their products to get the best out of the market. Haron (2016) studied localization vs. standardization in respect to the role that cultural patterns play in these strategies. The choice of the strategy when entering the international market is always highly dependent on the nature of the competition (Menon 2014). From a personal point of view, companies have awakened to the realization that industry competition is shifting at the greatest level possible by moving away from domestic markets to the global front. The key element to pay attention to in the market is the realization that the global consumption attitudes are diverse and varied across continents and countries (Jonsson & Foss 2011).

The dissimilarities between countries should be the motivator for the adoption of a strategy that addresses the specific needs of the people in each respective country. Bustamante (2011) also delved into the debate comparing the localization approach to the standardization approach for companies entering the international market. In the debate surrounding localization vs. standardization, Bustamante (2011) reveals that localization is on the integration – responsive grid while standardization is on the global integration grid. The determinants of the choice of a strategy on the global front include the cultural and value systems that exist within the international market that the company moves into (Arnórsson 2013). Bustamante (2011) explains that the best way for a company to be socially responsible to customers is to adopt a localization strategy that fundamentally appreciates their needs and wants.

The researcher holds a personal view that the need to adopt localization is catalyzed by the high expectations in foreign countries with respect to the cultural, economic, and institutional frameworks. A company is not just going to the country with its own principles, as it will not succeed in meeting the set target market. However, standardization is all about consistency and efficiency in the operations of the company, as only minimal deviations are realized in the products. The power of both local and international stakeholders should be keenly considered and evaluated when determining the strategy to be adopted (Masanori 2012). However, localization is more effective because of its significant response levels in the market (Yalcin et al. 2011). The researcher’s personal research reveals that stakeholders are fundamental, and customers - is one of them - must be satisfied appropriately for the company to make the desired level of profits from its operations in the market.

Metin and Kizgin (2015), studied specific examples of companies that have adopted the localization strategy or the standardization strategy in their operations in foreign markets with a specific focus on multinational food chains on the global front. Metin and Kizgin (2015) talk about the need for companies to embrace the policy “Think globally, act locally” as they move to the international front. According to personal research, this is the best way to attain the market share because it ensures that the highest standards are adopted in production while at the same time paying attention to the needs of consumers at any given time. For example, they analyze the operations of food chains in Turkey in which they explained that most global food chains localize by paying attention to the economic, religious, and cultural interests of local consumers.

Metin and Kizgin (2015) reveal that both McDonald’s and Domino’s have had the highest rating in consumer perception in regard to paying attention to their local needs and consumption patterns. In essence, personal research highlights the view that Domino’s has been consistent in the application of its localization strategy and this seems to have worked in its favor in terms of dominating markets. Arnórsson (2013) also weighs on the debate with the focus on the changing trends for fast-food restaurants in the Icelandic market. The Icelandic case is a typical example of what should be expected of Domino’s in India and the best possible ways it should respond to this. Arnórsson (2013) supports the argument on localization with the assertion that companies get opportunities to make profits by coming up with strategies that pay attention to the present marketing needs, creative resource utilization, and the delivery of superior value.

Quicker penetration into the market becomes more practical when companies have mastered the strategies of appealing to their consumers in using all means possible, especially responding to their local needs in the most satisfactory manner possible. From a personal view, it would be a tall order to try to convince consumers to purchase particular products in instances where they exhibit gaps in respect to their needs. From personal research, companies need to show respect for and appreciation to their consumers in international markets by responding solely to their needs and interests. Going against these attitudes could be perceived as a sign of disrespect to the consumers.

7P Marketing

Prakas and Singh (2011) explain that the food industry is sensitive and highly influenced by what consumers want and not what the company wants in most instances. Thus, they point out that companies always have a choice to make whether to stick to their uniform business strategies to embrace strategies that suit the host country’s socio-economic and political environment (Taneja, Girdhar & Gupta 2012). The 7Ps of marketing have to be keenly considered in the process of choosing the relevant strategy for international market operations (Ozsomer & Simonin 2004). The 7Ps that the company must consider while thinking of using the localization strategy include:

  1. Product.
  2. Price.
  3. Promotion.
  4. Place.
  5. People.
  6. Process.
  7. Physical presence.

The product should be designed in tandem with the cultural expectations of consumers and should also be affordable price based on the economic conditions of consumers. Additionally, the promotional messages should be localized to respond to what consumers in the market specifically need for their products (Cateora, Gilly & Graham 2010). They should be able to enjoy the adverts that value their culture and general way of living. The people relate to the cultural elements of the consumer, which must be considered in the course of the production. The process of production also needs to be hygienic and of high quality to take in what consumers in the process of their consumption process. Otherwise, the researcher establishes that it is not easy to penetrate new markets that are consumer-centered in terms of consumption habits.

Rai (2015) studied the local market in India in terms of what companies should do to succeed in the market. According to the research by Rai (2015), most international companies have traditionally focused on the production of goods from their home countries especially in America and Europe before offering them in India. However, in the past few years, India has been experiencing high levels of economic growth and it tends to enjoy an exceptional market with great potential of success for companies wishing to enter it. With the exceptional market in India, companies only succeed in instances where they are highly innovative and understanding of the consumption attitudes of consumers. Rai (2015) explains that most consumers in India not only look for the product, but also other vital elements such as better experience, services, and ambiance. Increased satisfaction is basically anchored on these fundamental factors.

Rai (2015) supports this by using the case of Panasonic hence opening the view that localization is key to success for companies in India. In this regard, localization is described as the process of conceptualizing and customizing products in such a way that it meets the local needs of consumers appropriately in the market. It is only through localization that the company is able to unlock the mindsets of Indian consumers hence motivating them to consume the products that are provided by the company (Perryman, Hemmings-Buckler & Seal 2014). From personal research, it is clear that India is a challenging market to enter especially if the company is not able to localize. The strong evolution in the social and cultural attitudes in the market has been instrumental in leading to the need to adapt to the local needs of consumers instead of just standardizing production.

While still focusing on the strategic approach of Domino’s to the Indian market, Kondology (2014) affirms that Domino’s localization strategy in the Indian market has undeniably been a big success. Kondology (2014) notes that pizza delivery has had its origins in America and that Domino’s has brought it to the international market in a bigger way through its localization strategy that works in tandem with the consumption attitudes of consumers. Accordingly, it is through the localization strategy that Domino’s has been able to achieve a higher market share in the Indian market since the beginning of its operations. In clarifying this, Kondology (2014) explains that Domino’s claims roughly 20% of the market share ahead of other competitors such as McDonald’s, Kentucky Fried Chicken (KFC), Pizza Hut, and Subway.

The dominance of Domino’s in the international market is catapulted by its strict emphasis on localization and the use of local tastes in its entire pizza products. For example, some of the products that illustrate the company’s adherence to the local tastes include paneer tikka that is specifically meant for the Indian market (Schäler 2003). This has been mostly achieved through significant local market research across the numerous towns across Indian with the view of understanding what consumers expect from the company and its operations. It utilizes its local franchises in India to ensure that the correct feedback is collected and acted upon. In addition to this debate, research by Warc (2013), an agency that provides advertising-related case studies, on the operations of Domino’s in the Indian market brought out the fact that localization has been the ultimate ingredient to Domino's success. India’s growth is not bound to stop any time soon as is evident from the fact that it is the second-largest market for Domino’s after the United States.

To reflect its commitment to localization, Warc (2013) asserts that Domino’s has 50% of its offerings localized to the tastes of consumers in the market. The quicker decisions by the company have been helpful in ensuring that it responds appropriately to the demands of consumers once the results of what needs to be done are established in the market. The long-term relationship that Domino’s has established with Jubilant FoodWorks has been critical in leading to its own flexibility and understanding of the local market (Kondolojy 2014). From personal research, India is a country where most consumers are driven by local tastes. Most of them want to only consume products that respect and match their cultural views and perspectives (Aguglia & Salvioni, 2010).

This means that a company that is able to be flexible and incorporate these elements in its product offerings has the best chance of benefiting and succeeding in the market. The opposite happens when a company that is not ready to localize its production. Thus, Domino’s Pizza is brilliant in its decisions to localize the wide and ever-growing Indian market hence out-competing fast-food giants such as McDonald’s (Loukakou & Membe 2012).

Conceptual Framework

The conceptual framework is developed to illustrate the movement of the company from its home market to the international front. It also reflects the strategies that it could adopt to attain control of the market while at the same time satisfying the needs of consumers in the most effective way (Rai 2015). The conceptual framework is developed in regard to the operations of Domino’s Pizza in the Indian market and how this is influencing its own operations as a company. It is anchored on sub-variables of the existing consumer needs, wants, and the culture of consumers. Effective localization is only attained when these variables are perfectly understood and effected by the company (Bustamante 2011).

As demonstrated below the conceptual framework illustrates that the company thinking of an international market, in this case, Domino’s, has to begin by understanding the local needs of consumers as well as their culture and religion. It should subsequently respond to each of the variables in terms of satisfying the needs of customers as well as their religious and cultural attitudes in its product offerings (Farrell 2015). This constitutes a successful localization strategy at the end as illustrated.

Summary of the Chapter

The literature review chapter brought out a clear view of the theories relating to the adoption of the localization strategy in the international market. It emphasized that the localization strategy is vital in capturing and representing all the needs of consumers in the most satisfactory manner. Nothing is left out when considering the use of the localization strategy as both standards of production and the respect of cultural aspects are considered in the process. More so, the debates on the advantages of localization and standardization are clear in the study with the emphasis on the need for companies to study the market deeply before considering to make their choices of the kind of strategy to use. However, the localization strategy has been massively supported because of the significant role it plays in matching the local tastes of consumers while paying attention to their satisfaction.

The next chapter is the methodology section that sets out the research design, approach, and data collection tools that are used in this study.

Research Design and Methodology

Introduction

The research design and methodology chapter highlight the methods that will be applied to answer the research questions of this study. It is important to consider the nature of the research before selecting the best approach and methods to apply to it (Lapan, Quartaroli & Riemer 2011). This is the only way that the research questions can be answered in a satisfactory manner. This chapter highlights the view that the interpretivism research philosophy and the deductive research approach are applied in answering the research questions and explicating the aims and objectives of the study. More so, questionnaires are essential in terms of collecting the required information to be used in the study. They offer a clear opportunity to collect larger quantities of information in the shortest time possible (Maxwell 2013).

Research Paradigm/Philosophy

There are two significant research philosophies that could be applied to any study. The first philosophy is the positivist research philosophy, which basically adheres to factual knowledge that is derived through observation such as measurement (Patton 2014). In relation to the positivism philosophy, the researcher tends to be limited to the collection of data and the interpretation of the same data through the interpretation of the same data and the observable research findings that are usually observable and quantifiable. The second notable philosophy is the interpretivism philosophy (Takhar-Lail & Ghorbani 2014). The interpretivism philosophy in relation to ontology and epistemology indicates that interpretivists strongly believe that reality is multiple and factual. Ultimately, interpretivism philosophy was chosen for this study.

The rationale for choosing the interpretivism philosophy is that it is based on the naturalistic collection of data through approaches such as questionnaires and interviews that are necessary for this study (Yin 2011). The study applies data from these naturalistic methods. More so, the interpretivism philosophy is preferable because of its flexibility. Compared to the positivist approach to philosophy, the interpretivist view is more flexible with respect to the research structure it utilizes. It uses research frameworks that are flexible in terms of capturing the relevant meanings of human interactions hence ensuring that the required results are attained in the study. Thus, it makes sense of what is seen in reality. The interdependence of the researcher and the participants in the study sets the ground for an effective collection of the required details in the study hence making it easier to answer the research question (Tracy 2012).

Our Benefits
  • 300 words/page
  • Papers written from scratch
  • Relevant and up-to-date sources
  • Fully referenced materials
  • Attractive discount system
  • Strict confidentiality
  • 24/7 customer support
We Offer for Free
  • Free Title page
  • Free Bibliography list
  • Free Revision (within two days)
  • Free Prompt delivery
  • Free Plagiarism report (on request)
Order now

Research Approach

The inductive and the deductive research approaches are always vital when it comes to the understanding of a study and the subsequent answering of research questions in the study (Takhar-Lail & Ghorbani 2014). Accordingly, the inductive research approach works from a specific observation to the broader generalizations, perspectives, and theories. It starts with the detection of specific elements and patterns relating to phenomena as the researcher moves to the general ideas of the phenomena. On the other hand, the deductive research approach entails the movement from a general perspective to a more specific perspective of the study. However, inductive research is the preferred research approach in this study.

The justification for the choice of the inductive research approach is that it does not have an initial hypothesis and this corresponds to this study. As in this study, the inductive approach makes it easier to attain the set research objectives by ensuring they are clearly stated and approached (Lapan, Quartaroli & Riemer 2011). With the focus on specific details from the beginning of the study, the inductive approach will offer a clear focus to the study hence leading to the answering of research questions as well as the attainment of research questions.

Research Design

For this study, the intention is to collect primary data. Therefore, the qualitative research design is preferred for use in the study. The qualitative research is the technique that entails the collection of data in its naturalistic state where it is commonly found (Patton 2014). This entails seeking out an in-depth explanation of the phenomenon without necessarily requiring numbers to support the data interpretation. In tandem with the qualitative research design, the case study of Domino’s localization strategy in the Indian market is deeply analyzed to ensure that it is appropriately understood in terms of its application and the manner it works to boost the operations of the company in the market.

The qualitative research design was selected because it helps in answering the research questions in the study through an in-depth and detailed analysis of the variables of the study (Sarstedt, Schwaiger & Taylor 2011). For instance, it looks into the preferences of customers and evaluates this based on the kind of strategy they are likely to prefer for maximum satisfaction. Additionally, the qualitative research design is preferred because it offers a clear vision of what to expect from the research. This is so specifically because the data is collected with a genuine effort to attach it to the bigger picture of the happenings within a particular setting (Roller & Lavrakas 2015). In this case, the data is derived from the view of understanding the effectiveness of the localization strategy in the Indian market with the case study of Domino’s used.

Research Purpose

The purpose of this research is causal or explanatory in nature. It is critical to note that explanatory research is all about identifying the degree and nature of the cause and effect relationship between variables in the research (Sarstedt, Schwaiger & Taylor 2011). In this case, the research is explanatory with the view of ensuring that the extent of success of the localization strategy by Domino’s is assessed and evaluated appropriately. Since the topic of localization has been initially described and understood in the manner it works among consumers with varying cultural beliefs, it would be critical to use the explanatory approach to ensure that the relationship with customers in the market is understood clearly (Tracy 2012). The highly structured nature of explanatory research makes it more appropriate for the study of the localization strategy in Domino’s Pizza in the Indian market and the manner in which it works in its favor.

One of the key advantages that prompted the choice of explanatory research is that it offers an opportunity to identify the reasons that underlie the phenomenon under study while at the same time assessing the impacts on the existing norms. In this case, it brings out the clear reasons that facilitate the success of the localization strategy in the Indian market over the standardization strategy (Takhar-Lail & Ghorbani 2014). The identification of the reasons facilitating the success of the localization strategy over the standardization strategy will be instrumental in encouraging other companies that have the intention of entering this market to ensure they work in tandem with the desirable strategies to succeed in the Indian market in the course of their internationalization strategy.

Sample Population

The sample that has been selected for this study is made up of both Domino’s customers and employees. Specifically, the sample population consists of 20 customers from Domino’s and 10 employees working at the company in India. In the sample population, it was desirable to choose both customers and employees because it is easier to gather more information from them about how they perceive the effectiveness of the localization strategy in the Indian market. Customers offered information related to how the company tries to align with their beliefs and cultural orientations while employees offered information on the specific details that are applied to the company’s products to make them desirable and localized to the tastes of consumers in the Indian market.

Thus, the collection of views from both customers and employees of the company was deemed more effective with respect to understanding the entire operations of Domino’s in its strategy. The sample population is also manageable and appropriate for the study because it involves in-depth interviews hence ensuring that as much data as possible is collected within the shortest period of time in the research and that everyone has the right amount of time to give their views on the effectiveness of the localization strategy at Domino’s.

Sampling Technique

The sampling technique that was preferred for this study was purposive sampling. Purposive sampling is a strategy where the researcher effectively determines the specific people within the population that will take part in the study (Lapan, Quartaroli & Riemer 2011). Purposive sampling was the sole technique in this study given that it is a qualitative study. In this situation, the specific people from the customers’ side are only those consumers who are regular customers of Domino’s while employees used in the study must work at one of Domino’s chains. It is the specific criteria that the researcher relied on while picking the specific members of the population that would participate in the research. The idea, in this case, is to ensure that individuals are not randomly selected as some of them may not be consumers of Domino’s hence failing to offer the required information that would be used in the study and make it more appropriate in terms of reaching conclusions and recommendations.

Accordingly, the purposive sampling technique was preferred because of its ability to lead to the collection of large volumes of information based on the characteristics of individuals selected to participate in the study (Maxwell 2013). More so, the purposive sampling technique is advantageous and more suitable for this study because of the significant role it plays in building and increasing the level of the research data available for the study. The data gathered through the purposive sampling technique is more focused and appropriate to this study, as there are no deviations in terms of the nature of the data expected.

Data Collection Methods

Since this study is of a qualitative nature, in-depth interviews will be collected with the view of getting more details in regards to the effectiveness of the localization strategy of Domino’s in the Indian market as opposed to the standardization strategy (Patton 2014). To ensure that in-depth interview questions work well, several questions are prepared for the chosen target group to ensure that the desired results are collected from the study. The in-depth interviews are done face-to-face with the members of the population hence boosting the contact with the participants in the study.

Accordingly, interviews are preferred for this study for several reasons. Compared to questionnaires, interviews offer the researcher the opportunity to investigate the issues of the research in-depth (Roller & Lavrakas 2015). This is because they allow the researcher the opportunity to ask as many questions as possible while at the same time giving the participant more room for clarification and explanation of the issues at hand. Interviews also present an excellent opportunity to investigate the feelings and perceptions of individuals toward the issue under discussion. This emanates from the ability of interviews to capture verbal and non-verbal cues of the respondents hence enabling the researcher to get a clear view of how they genuinely feel about the phenomenon under study (Roller & Lavrakas 2015). More so, in-depth interviews are also preferred in this study because of the level of focus they dedicate to the study. Since the interviewer is in control, there is always that opportunity to keep the interviewee focused on answering the questions that are asked with more explanations in needed areas.

Data Analysis

Thematic analysis entails the pinpointing, examination, and recording themes that have been identified within data. This is the approach that is used in the analysis of data in this research (Sarstedt, Schwaiger & Taylor 2011). Accordingly, the thematic analysis focuses on categories of the common themes that have been identified in the study, which makes it easier to draw a pattern from responses in the study.

The choice of thematic analysis is justified by the fact that it is flexible hence allowing room for the application of multiple theories to the data. In this case, the theories that have been applied include the product life cycle theory, location theory, and even the internationalization theory. More so, it allows for the emergence of categories from data and this makes it easier for the analysis and interpretation of data. It becomes more important when these categories need to be drawn and applied in the best way possible (Tracy 2012). Lastly, its applicability to the research questions that go beyond the researcher’s knowledge makes it a more appropriate analysis tool for this study.

Ethical Considerations

This study pays extensive attention to the ethical standards required when engaging with human subjects in any study. In line with this, ethical elements are keenly considered in the study to ensure that they are not violated. The first ethical element that is considered in this study relates to seeking permission from respondents and the company (Yin 2011). Formal permission to conduct research from Domino’s is requested with the view of informing the management that some of its employees are intended to be selected to participate in this study. This is done through an official email or letter to the company to ask for permission hence conducting the study in the most ethical manner possible. Apart from seeking permission from the company, permission will also be asked from participants with the assurance that they will take part in the study voluntarily without any form of coercion or pressure. Having the consent of employees and consumers to participate in the study is critical in the sense that it leads to the freer collection of information from willing parties in the study.

Another ethical consideration relates to confidentiality. This means that in this study, all the details and identity of the participants in the study are fully secured through passwords on laptops to ensure that it remains as confidential as possible (Patton 2014). The information related to participants will not be disclosed unless under the instruction and permission of the participant in the study. The privacy of the participants is a fundamental issue that is upheld throughout the course of the research. This is done with the view of eliminating any chances of victimization on the part of participants of this study.

The last significant ethical issue that is considered in this study is the relationship between the researcher and the participants in the study (Sarstedt, Schwaiger & Taylor 2011). A professional relationship is maintained throughout the study to avoid instances where the researcher and the participants clash because of potential personal differences between them.

Limitations of the Research Design

The chosen research design is qualitative and it exhibits various limitations with respect to this study. The first limitation of the qualitative research design is that it has the potential of being easily influenced by the personal biases of the researcher. Since it is working in line with purposive methods of data sampling, the likelihood of the researcher being biased is high and this has the potential of affecting the quality of the results collected in this regard (Roller & Lavrakas 2015). Thus, it is clear that the success of the research and the quality of the results will rely heavily on the skills of the researcher to avoid bias, which is quite a tall order.

Another limitation of the qualitative research design is that it does not offer room for the assessment and evaluation of rigidity in the study. When the study is rigid, it is always quite tough to get the required results in some instances since there is no variability in terms of approaching the study and the elements under investigation.

The third limitation of the qualitative research design is that at times upholding ethical issues especially in regard to confidentiality and anonymity tends to be a challenge (Yin 2011). There is always the temptation to reveal the identity of the participant, meaning the researcher needs to be more cautious to ensure that the identities of these individuals are not revealed by any means except under their instructions or directions.

More so, the collection of results using the above research design tends to be time-consuming. Interviewing members of the target population takes a lot of time to ensure that the correct details are collected in the most effective manner (Lapan, Quartaroli & Riemer 2011). Time is a limitation when the research is urgently needed for use.

Client's Review

"The quality of the writings is really good. Guys who work there are friendly and help a lot. I ordered papers and got them on time as we arranged. As for me, this service does the job properly without any problems."

reviewed Exclusive-Paper.com on May 20, 2020, via TrustpilotClick to see the original review on an external website.

Results, Analysis and Discussion (Interpretation)

Introduction

The results of this study were anchored on the key research questions guiding this study. The aim of sticking to the research questions in the course of the interview was to ensure that the research aim and objectives of this study are attained in the best way possible. The results are directly from interviews collected from both customers at Domino’s and employees working at the company. This being qualitative research, the findings are also supported by findings from previous literature and personal findings/views of the researcher to ensure diverse views are accommodated in the analysis and ultimate interpretation of the results of the study (Henry 2010). For more effectiveness in the study, the results are developed based on each of the research questions with the view of ensuring that the objectives of the study are attained in the most satisfactory manner. An in-depth analysis and interpretation of the study is also highlighted and a thematic analysis of the questions based on the responses of participants also included in the interpretation of the study.

Research Question 1: How Effective is the Localisation Strategy in the Indian Market?

It is worth noting that separate interviews were conducted on both customers at Domino’s and employees working at the company. The aim here was to compare the views of both consumers and employees on the effectiveness of the localization strategy in the Indian market. Out of the 20 customers interviewed, 15 stated that the localization strategy in the Indian market is effective. The key themes that emerged from their evaluation of the effectiveness of the localization strategy in the Indian market included such statements as ‘excellent’ ‘good’ ‘perfect’ ‘awesome’ and ‘superb’. All these words pointed to the effectiveness of the localization strategy in the Indian market. However, the other 5 consumers of Domino’s indicated that the effectiveness of the localization strategy in the Indian market is average at best. The dominant themes in their responses included words such as ‘average’ and ‘trying’. On the other hand, all the interviewed employees at Domino’s indicated that the localization strategy is ‘perfect’ in the Indian market.

In light of these results, it is clear that many customers believe that the localization strategy is doing excellently in the Indian market. This is especially true because most companies including Domino’s understand and appreciate the tastes and preferences of consumers hence ensuring that they produce food that addresses their specific needs as local consumers. From a personal perspective, consumers only appreciate a strategy if it effectively satisfies their needs. The researcher’s personal perspective indicates that consumers would not approve of a strategy if it were not practical in their own market. Therefore, this means that Domino’s is having great success in meeting the consumption needs of these consumers in terms of their attitudes and beliefs. On the other hand, for consumers who believe that the localization strategy is still average, there is a possibility that some of their needs with respect to their expectations are not being addressed well by the company.

Most of them pointed to the fact that they would like more Indian spices to be incorporated in the preparation of the pizza for the localization strategy to be in line with their expectations. However, employees at Domino’s fully approved the effectiveness of the localization strategy since they are the implementers at the local level. They noted that Domino’s has done its best to ensure all employees are satisfied while respecting their consumers’ cultural perspectives on pizza consumption. This is illustrative of the company’s dedication to customer service.

To interpret the results, there is a clear link between the variables of the study. For instance, employees who fully approved the effectiveness of the localization strategy emphasized that companies such as Domino’s satisfy their beliefs, culture, tastes, and preferences (Bustamante 2011). It is only through the attainment of these aspects that localization has been appreciated to be doing well in the Indian market. From personal research, this researcher believes that consumer acceptance is the result of effective satisfaction of all the variables they require for the satisfaction process. For employees as the providers of service, there is a closer relationship between their service delivery and their understanding of the fact that localization is working effectively in the Indian market. In line with the personal views of the researcher, employees understand how they try to localize the pizza tastes and would thus be understood in their assertion that the localization strategy has been effective in the Indian market.

However, for the group that stated that it is average, there are clashes between standardization and localization. From the personal perspective of the researcher, standardization tends to dominate localization because of the lack of full adherence to the local tastes and preferences. The key important relationship between the variables relates to tastes and the perception of localization. All these findings are consistent with previous research, which indicates that multinational companies need to understand their customers in the best ways possible to satisfy their needs in the market. The most important variables that a multinational company must understand in the course of satisfying their foreign customers include customer tastes, preferences, cultural beliefs, and general religious beliefs. In tandem with this, it is evident that Domino’s is getting it right in the market in terms of responding to customer variables and their need to get what complies with their tastes and preferences.

For consumers who felt that the localization strategy is merely average in India, it means that the organization is still combining localization with some aspects of standardization hence making it difficult to fully comply with their local tastes as they would like it (Haron 2016). The variable of local tastes stands out in this instance because it is the main thing that motivates consumers to purchase the given products of the company. Based on the researcher’s own perspective, the assertions of Domino’s employees that the localization strategy has been effectively put in the Indian market emanate from the fact that they have studied the market and understand what consumers want.

They have an easier understanding of what consumers need and play an instrumental role in ensuring that they are served with the required tastes. Above all, the recurrence of the themes of perfection in relation to the effectiveness of the localization strategy in the Indian market is reflective of the right direction that Domino’s has undertaken in ensuring that all of its customers are kept happy and satisfied based on their cultural and religious beliefs (Kondolojy 2014).

How is Domino’s Applying the Localisation Strategy in the Indian Market?

The manner in which the localization strategy is applied in the market plays an instrumental role in ensuring that it succeeds as a strategy. Thus, the question of how the localization strategy is applied in the Indian market was also posed to Domino’s customers and employees. From this question, the consumers of Domino’s believed that the company had applied the localization strategy by first trying to understand their local customs, preferences, and tastes to ensure that they are served well. Based on the responses, one of Domino’s customers pointed out that the company applies the localization strategy by, “searching for local ingredients that are acceptable by Indians” (Appendix 1).

In this way, it stands a better chance of benefiting from the market that is highly competitive. The employees indicated that Domino’s has been active in applying the localization strategy knowing its market. They understand the nature of the market and the cultures, beliefs, and preferences of customers hence effectively applying the localization strategy. In essence, the key themes that stood out in the responses of customers included culture, beliefs, preferences, tastes, studying the market, local ingredients.

From a personal perspective, the application of the localization strategy always has to be strategic to ensure that the set goals in the market are attained in the best way possible. The success of the company relies on how it applies to the localization strategy in the market. The first step that the company takes in terms of studying the market with the view of understanding the culture of its consumers is vital because it ensures that the company is on the right track towards realizing its goals in the most significant way possible (Haron 2016). From the findings, both customers and employees at Domino’s indicated that the company is passionate about satisfying their local tastes and it goes an extra mile where it conducts and in-depth market research with the view of understanding the nature of local ingredients, beliefs, and general attitudes of consumers in the Indian market. This has ensured that they are always satisfied.

Localization is more about understanding the local market in terms of their beliefs and the attitudes of individuals toward particular products. From personal research, consumers are a very sensitive group and their responses are genuinely based on the nature of the products they are offered. Thus, the many responses indicating that Domino’s has been keen to satisfy them through the understanding of their local beliefs, culture, and ingredients are indicative of the company’s struggle to ensure the consumers have the best (Masanori 2012). This is connected to the internationalization theory where adaptability is an important element of success for a company moving to a foreign country because there are always bound to be differences among consumers.

To interpret the findings, there is a clear link between the key variables of the internationalization strategy of a company, and in this case Domino’s. The key variables that connect from the findings include culture, beliefs, local ingredients, and general consumption habits among consumers. From the researcher’s own perspective and research, the interaction between these variables is evident when the company understands the internationalization theory. The researcher believes that the understanding of the fact that markets vary is the first important step that the company takes when entering the Indian market and this has paid off. The findings would have been totally different if consumers felt that at least one of these variables such as local ingredients were being overlooked by the company (Arnórsson 2013).

Thus, by taking the initiative to ensure that all the key variables related to the Indian market, Domino’s had its way to success. The connection between these variables is also boosted by the fact that Domino’s has taught its own employees to serve the market in the most appropriate manner by appreciating diversity and the differences between the cultures of consumers. The positivity of employees' responses is reflective of the commitment to quality and localized services for Indian consumers (Rai 2015).

The relationships among the different variables above are important because first, they reflect the respect that the company has for its consumers in the local market in India. By carrying out market research, the company is committed to ensuring that consumers are served in the manner they deserve and not the way it would have wanted. Thus, it would rather localize than standardize to serve them as required. More so, the relationships are vital because the show the understanding of the internationalization theory where cultural differences are inevitable (Bustamante 2011).

According to the researcher’s own perspective, by appreciating these differences, the company shows its ability in the management of products in the international markets. It has a good understanding of both the product life cycle theory and the internationalization theory. This is consistent with previous research on the internationalization of businesses. Previous research indicates that when moving to international markets, companies could either choose to standardize to localize their products. However, localization is more beneficial in the local markets because it ensures that the company is able to satisfy the local needs of consumers in the best ways possible. Localization also gives it an advantage in the market because it is able to dominate its competitors who might adopt the standardization strategy with the view of maintaining matching standard tastes (Metin & Kizgin 2015).

In markets such as India where consumers have a strict observation of culture and local tastes, a company would only be safe to localize its products rather than standardizing. The researcher’s personal perspective supports this view with the understanding that marketing and penetration in the market are not easy and needs an in-depth understanding of the market to succeed. There is always a risk of failure if the consumers are totally ignored in the consumption process.

What is the Benefit of the Localisation Strategy over the Standardisation Strategy in the Indian Market by Domino’s Pizza?

The question of the benefits of the standardization strategy over the standardization strategy was also posed to both consumers and employees at Domino’s. The researcher realized that most consumers were not fully aware of the key terms localization and standardization. Thus, the question was meant to be understood as, “what is the importance of eating pizza based on local tastes as opposed to the standard pizza found in other countries?” All the consumers interviewed that localization effectively met their needs as opposed to standardization. One of them stated, “Offering local foods gives us what we need as Indians, it gives us the local ingredients while at the same time respecting our culture in the best way possible” (Appendix 2). Interestingly, all of the consumers agreed that local tastes are beneficial for addressing the preferences, tastes, and wants of consumers on the market. The key themes that stood out in their responses included, “preferences, tastes, and wants.”

The employees at Domino’s had an understanding of both localization and standardization. They provided a myriad of answers that formed the findings in regard to the question. The employees indicated that based on the localization strategy adopted by Domino’s, there is always an advantage over standardization because it facilitates the response to local needs, it promotes the development of local business, and it increases the market share of the company by ensuring it is always ahead of its competitors. The themes that stood out from the responses by employees included “local needs, market share, local business development.”

From the researcher’s own perspective, most consumers explained the advantage of the localization strategy based on what they are able to get from it at their own levels. The researcher believes that they like it when they believe that the company is responding to their needs in the best way possible and that is why they were able to settle on the idea. As opposed to standardization where the tastes of the products show no regard for individual tastes, localization serves the specific market easily by providing what they need. Thus, consumers pointed out one point that they believe they derive from the company’s ability to understand their own needs in the market hence settling on the aspects of the effectiveness of the strategy in meeting their tastes, preferences, and wants in the market.

On the other hand, the findings from employees indicate both their understanding of the local consumer as well as the company’s position relative to competitors (Arnórsson 2013). From the researcher’s perspective, it is the incorporation of local tastes that employees believe satisfies the needs of customers in the Indian market hence making the localization strategy advantageous over the standardization strategy. Since they have many interactions with customers, there is a strong belief that they are being satisfied in the best ways possible. Apart from the customer perspective, it is clear that Domino’s is leading in the Indian market because of its adoption of localization. From the researcher’s perspective, this explains why employees emphasized that localization has ensured that is maximum dominance in the market through the enjoyment of a large market share. More so, the market development pointed out by employees emanates from the strong support of customers who believe that the company is quick to respond to their needs perfectly while paying attention to their cultural perspectives.

To interpret the above findings, there is a clear connection of variables from the findings in regard to the advantages of the localization strategy over the standardization strategy. For instance, there is a connection between the ability of the company to meet the needs of consumers and its ability to have a large market share and effective market development. In tandem with the connection of these variables, the researcher’s own perspective is that the Domino’s has an appropriate understanding of the location theory, which is always helpful when it comes to success in a foreign market. When the business shifts its location, it is important to adjust to the demands in that location.

Thus, by working in tandem with the location theory, Domino’s is able to ensure that these variables connect first by the satisfaction of customer needs, second by local development, and ultimately a larger market share. From the researcher’s own perspective, it is only logical to adapt to the market to succeed in it rather than sticking to global tastes and fail. The advantage of the relationship among these variables is that they give the company the ability to think in the appropriate direction in terms of making decisions to satisfy customers as well as competing appropriately with all other companies. Therefore, the relationships between these variables are important for the profit-making element of the company.

The relationships between the variables are fully supported by the literature. Companies all over the world are internationalizing and only those with the best strategies make it in the market (Metin & Kizgin 2015). Literature reveals that companies that are internationalizing must understand that cultures and consumer preferences differ significantly and they must be addressed in the best possible ways at any given instance. This satisfaction would only come through the localization approach that closely addresses all the needs of customers in the market.

As much as standardization facilitates economies of scale, there is always an opportunity for more success under localization through strategic market development backed up by local consumers (Haron 2016). The support of local consumers in the market is critical in leading to the success of the organization, but this only comes when they feel contended with the available offerings. Localization builds the market and gives the company an advantage and edge over competitors because of increased purchases from committed customers across the market. Thus, Domino’s is actually on the right track in terms of addressing its local consumers in India through the use of the localization strategy.

Summary

In summary, this chapter has elucidated the findings from the interviews conducted on both employees and customers of Domino’s. The most interesting thing about the findings is that most of the interviewed individuals are in full support of the localization strategy adopted by the company. On the part of both customers and employees, localization has been effected through extensive market research on what consumers would want and their consumption habits in the Indian market. This has ensured that their needs are met readily by the company. The best thing about Domino’s is that it has given its employees the opportunity of understanding its customers and responding to their needs appropriately in the market. As long as customers remain satisfied as highlighted in the above results, the company will continue to have a significant level of growth and success in the Indian market based on the support it receives in the growth of its market share in the right direction.

Conclusions and Recommendations

Conclusions

The key findings of the study are that the localization strategy used by Domino’s in the Indian market has been highly effective. Based on the responses derived from both customers and employees at Domino’s, the localization strategy has been successful based on the way it addresses customers’ needs. However, there were also concerns about it being average. The second key finding is that the localization strategy by Domino’s is always applied through the initial research of the Indian market and the identification of the local needs and ingredients of customers. This makes it easier for the company to implement it. More so, the research established that localization in the Indian market is more advantageous than the standardization strategy because it effectively addresses customer needs, promotes the development of the company in the local market, and leads to a larger market share hence competitive advantage.

Based on the findings, the research has successfully met most of its objectives. For example, the study has effectively met the objective of researching the localization strategy in India by studying both customers and employees of Domino’s and successfully getting feedback from them. The feedback they gave in terms of how they benefit from the localization strategy is critical in indicating the attainment of this objective by the study. Furthermore, the objective of determining the effectiveness of the localization strategy in the Indian market has also been met fully in this study. However, the research has not fully met the objective of addressing the challenges that Domino’s faces in the implementation of its localization strategy in the Indian market since most of the responses derived from both customers and employees had a positive inclination.

Most of them did not point to the challenges, but to the benefits, they have enjoyed through the localization strategy adopted by the company. However, the objective of offering recommendations to Domino’s has been fully met in this study. The failure to meet one objective does not necessarily mean that the study is incomplete. It is complete and the researcher is conscious enough to admit the failure to meet this objective as one of the weaknesses underlying the whole research process.

Several lessons have been learned from this research. One of the key lessons learned in this research is that the quality of research questions determines the success of the whole study and the attainment of objectives. It is always vital to align the research questions with the objectives of the study to ensure that every part of them is met effectively. There is always a challenge in meeting the objectives if they do not align with the desired research questions of the study. The lesson here is that there must always be consistency in these two elements. They must be formulated in tandem with each other every time. The second lesson learned relates to the literature review section. The literature review reflects on the studies that have been conducted by previous researchers in the study area and offers hints on the findings of the research.

The lesson here is that it must be deep enough and must have appropriate sources that ensure it gives a strong explication of the topic under study. A shallow discussion of the literature review makes it extremely difficult for the researcher to get the concept of the study because of a clear discussion of vital points. More so, there is always a challenge on the part of readers to understand the concept of the study when the literature review is shallow. It is important to ensure that it is made up of strong assertions and points that ensure it resonates well with all the individuals reading the paper. The third lesson learned from the research is that interviews as part of the qualitative study are interesting. They are interesting because they give the researcher the opportunity to interact closely with the participants as opposed to any other data collection approach.

The findings of this research complement the existing research in the best way possible. Accordingly, the closer study on the customers in the Indian market complements the existing research by asserting the practical views of customers. The findings are practical in themselves based on what was found and they complement existing research by expounding on the theoretical understandings of what customers like in terms of their products, especially when dealing with the coming of a new company into their market.

Thus, the current findings play a vital role in complementing the existing research by emphasizing on the attitudes, cultural perspectives, and customer needs that would make a company succeed in the Indian market where customers always want to be treated based on their own cultures and local tastes. By offering an in-depth understanding of consumers and their preferences in the market, it sets the ground for even better analysis of the existing research on the effectiveness of the localization strategy as opposed to the standardization strategy.

 

Recommendations

First, in regards to the responses of some customers that the localization strategy is average in the Indian market, it is recommended that Domino’s conduct extensive market research into the Indian market to re-evaluate the tastes and preferences of customers in regard to pizza is conducted to re-ignite the belief of all customers in the effectiveness of its localization strategy. The market keeps changing and customer preferences are also evolutionary in nature. Thus, the best possible way to satisfy all customers would be to do a re-evaluation that would ensure all their needs are perfectly accommodated in the preparation of pizza.

Second, in regard to the application of the localization strategy, it is recommended that the company segment its Indian markets appropriately based on the findings from the market research. It is evident that customers have varying preferences and beliefs toward different products offered to them. This means that the company should give them the freedom of choice in the market by ensuring they are segments based on what they actually want to consume. To ensure that this is successful, the Domino’s should not just have the taste that appeals to a few customers, but it should have numerous varieties of pizza that reflect Indian culture to satisfy this large market. The segmentation of customers will lead to even more success in the market.

Finally, it is recommended that Domino’s fully employ the localization strategy in the Indian market. It is apparent from the findings that consumers do not seem to like any element in their pizza that goes against their cultural understandings and even their own local ingredients. They always want the best in terms of what satisfies them and any incorporation of the standardization strategy might affect the local taste. Thus, the best strategy for the company would be to fully go with the localization strategy while dealing with the Indian market as this would be significantly beneficial for its own success in the market and competitive advantage.

Thus, in the full implementation of the localization strategy in the Indian market, it is recommended that Domino’s adhere to the following action plan for consistent satisfaction of customer needs and attainment of competitive advantage in the market.

  1. Conductive extensive market research to understand what Indian customers want in regards to their pizza.
  2. Sample Indian ingredients that should be incorporated into the pizza
  3. Promote the product in the market and give taste samples to customers and ask for feedback from them.
  4. Act on the feedback and correct any mistakes that might have been made in the preparation of the pizza.
  5. Come up with a final product that will ensure customers are perfectly satisfied in the Indian market.

Adherence to these steps will be vital in leading the company to a perfect localization strategy that will ensure it stands out from competitors such as McDonald's. It will have the opportunity of satisfying them better with this appropriate plan in place, which emphasizes their needs and preferences as local customers.

Get 24/7 Free consulting
Order now
Chat with Support
scroll to top call us
live-chat-button