Wednesday, January 27, 2010

Value Proposition

Companies have to utilize value proposition (p. 222) to set themselves apart from their competition to give customers a reason to buy their brand. To do this, companies need a mix of benefits to attract revenues.

Domino's Pizza's value proposition is positioned as "less for much less." While their pizza may not be the best tasting, the lower price is a huge incentive for consumers. Domino's may not have extras like stuffed crusts in their pizza so they charge less as a result. Their "444" deal is a great example where Domino's Pizza charges only four dollars for a medium pizza. In most pizzerias, four dollars is only enough to buy two slices of pizza. All in all, Domino's Pizza has positioned itself as the place to go when consumers prefer quantity over quality.

Michael Chen
Section G

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