Demand & Forecasting
DEMAND
&
FORCASTING
Founded as a single store in 1960, Domino’s Pizza today stands as the recognized world leader in pizza delivery. From the beginning, we have been dedicated to the best of service, quality products and delivery excellence. They currently have over 9000 stores worldwide, all dedicated to providing great-tasting pizza delivered directly to your door or available for carryout. They have pioneered the pizza delivery business, and sell more than 400 million pizzas worldwide every year. Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three times (Dominos).
Metuchen is a very small town in Middlesex County, NJ. It is located right in the middle of Edison, NJ. It is only 2.76 square miles with a population of over 13000. The median income is around $90000. There is approximately 5300 household consisting of 2.56 people. And 30% of the population is under 18 years old (US Census). This can be interpreted as there are mostly families with kids in this community. Currently, there are no fast food pizza stores or any other fast food restaurants in the town. Edison does have many restaurants including two Dominos, one in South Edison and one in North Edison. However, neither of them delivers to Metuchen. The only direct competitor in the area is Pizza Hut. Metuchenites often get to know their local merchants and get personalized service they find missing at large chain stores in the nearby shopping malls Metuchen).
Based on the Metuchen demographic information, I chose the following variables: households, income, and price of complimentary goods. I believe households to be more relevant than population based on the fact that the town consists of families with one or more children. A household will consume one or more pies per visit. And people with children are more likely to buy fast food. I chose to use income
&
FORCASTING
Founded as a single store in 1960, Domino’s Pizza today stands as the recognized world leader in pizza delivery. From the beginning, we have been dedicated to the best of service, quality products and delivery excellence. They currently have over 9000 stores worldwide, all dedicated to providing great-tasting pizza delivered directly to your door or available for carryout. They have pioneered the pizza delivery business, and sell more than 400 million pizzas worldwide every year. Domino’s Pizza is recognized as a Megabrand by Advertising Age magazine, and has been named “Chain of the Year” by Pizza Today, the leading publication of the pizza industry, three times (Dominos).
Metuchen is a very small town in Middlesex County, NJ. It is located right in the middle of Edison, NJ. It is only 2.76 square miles with a population of over 13000. The median income is around $90000. There is approximately 5300 household consisting of 2.56 people. And 30% of the population is under 18 years old (US Census). This can be interpreted as there are mostly families with kids in this community. Currently, there are no fast food pizza stores or any other fast food restaurants in the town. Edison does have many restaurants including two Dominos, one in South Edison and one in North Edison. However, neither of them delivers to Metuchen. The only direct competitor in the area is Pizza Hut. Metuchenites often get to know their local merchants and get personalized service they find missing at large chain stores in the nearby shopping malls Metuchen).
Based on the Metuchen demographic information, I chose the following variables: households, income, and price of complimentary goods. I believe households to be more relevant than population based on the fact that the town consists of families with one or more children. A household will consume one or more pies per visit. And people with children are more likely to buy fast food. I chose to use income
Cited: United States Census Bureau, US department of commerce, retrieved October 22, 2012 from http://quickfacts.census.gov/qfd/states/34/3445690.html Income Tax List, retrieved October 27, 2012 from http://www.incometaxlist.com/new-jersey-income-tax-by-zip-code-33.htm Domino’s Pizza, retrieved October 27, 2012 from http://phx.corporate-ir.net/phoenix.zhtml?c=135383&p=irol-homeprofile Borough of Metuchen, retrieved October 23, 2012 from http://www.metuchennj.org/brochure1999.pdf