Domino's offers low priced pizzas, upsell customers to higher price points

Highlights from a J.P Morgan report.

According to a J.P Morgan report, Domino's FY 2014 results were strong across all regions, including Australia. The report noted that the pizza chain's recent move to offer value pizzas at a low sticker price of $4.95 is an entry level for consumers, with Domino's using its online tools to try and upsell customers to higher price points.

A profitable strategy in the midst of the pizza price war in Australia, the firm noted, "as pizzas cost less to make and [the strategy offers] better relationships with franchisees than its main competitor."

Meanwhile, J.P Morgan is confident that the chain should be able to continue to improve margins due to two big initiatives:

The rollout of online ordering technology and the global POS (Pulse) system to Europe.
The introduction of a new commissary.

Japan will also continue to contribute strongly, winning market share while its competitors continue to struggle in the Japanese market.

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