We've set up a self service app that for some reason no matter what we do whether its a .DMG or a .PKG installs itself at the root of Macintosh HD and not into the Applications folder.
dmg or pkg wont affect where it is installed. How are you creating the dmg or pkg? Im assuming using Composer? In Composer you tell it where you want the files to be installed. So you probably just dont have a folder called Applications and then the self service app in there. should look like this external image link
FWIW you can have it automatically install itself on all the machines without packaging. You just need to check Install Automatically under Settings -> computer management -> Self Service
