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Domino’s: The Pizza Turnaround

Domino’s: The Pizza Turnaround. By Caitlan Fetzer & Michael Rodriguez. Changing Cardboard Crust. “Domino’s pizza crust, to me, is like cardboard ”, “Worst excuse for pizza I ever had” The change wasn’t prompted by underperformance or lack of market share

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Domino’s: The Pizza Turnaround

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  1. Domino’s:The Pizza Turnaround By Caitlan Fetzer & Michael Rodriguez

  2. Changing Cardboard Crust • “Domino’s pizza crust, to me, is like cardboard”, “Worst excuse for pizza I ever had” • The change wasn’t prompted by underperformance or lack of market share • They wanted to show that they were committed to their customers • "We're proving to our customers that we are listening to them by brutally accepting the criticism that's out there.” • Patrick Doyle, incoming CEO

  3. Advertising the Turnaround • New commercials focused on their new and improved taste • Started in early 2010 and has continued to focus on their fresh ingredients and commitment to their customers • Their latest marketing campaign is called Behind the Pizza • Success? YES! • Fourth quarter profits more than doubled from previous year (23.6 million from 11 million) • Store sales increased by 3.9% • Shares traded at a new 52-week high of $16.63 • A restaurant and hotel analyst said that Domino’s resurgence wouldn’t be a one-quarter phenomenon • “The new menu and new products are a very impressive effort.”

  4. Relation to Class • Promotional Mix • Advertising • New ad campaign with commercials and blogs and websites • Personal Selling • Costly, but showed they were committed to their customers • Sales Promotion • 5-5-5 deal • Direct Marketing • Internet, Direct Mailing • Lead to overall re-positioning • Before: Discount • Now: Bought because it tastes good. Many reviewers said “I just crave it”

  5. Questions?/Comments?

  6. References • Watson, Bruce. "Domino's Pizza Reborn? Risky Campaign, New Recipe Help Boost Sales - DailyFinance." Business News-DailyFinance. Web. 05 Jan. 2011. <http://www.dailyfinance.com/story/investing/dominos-pizza-reborn-risky-campaign-new-recipe-help-boost-sal/19383979/>. • New Domino's Pizza - Oh Yes We Did. Web. 05 Jan. 2011. <http://www.pizzaturnaround.com/>. • "Domino's Pizza - Pizza Holdouts." YouTube. Web. 05 Jan. 2011. <http://www.youtube.com/watch?v=A-lphVQkM1s>. • Farhi, Paul. "Behind Domino's Mea Culpa Ad Campaign - Washingtonpost.com." Washington Post - Politics, National, World & D.C. Area News and Headlines - Washingtonpost.com. Web. 05 Jan. 2011. <http://www.washingtonpost.com/wp-dyn/content/article/2010/01/12/AR2010011201696.html>. • http://popsop.com/41409 • http://www.benzinga.com/press-releases/11/01/c753833/dominos-pizza-52-week-high-recently-eclipsed-dpz

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