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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

Domino’s:The Pizza Turnaround

By Caitlan Fetzer & Michael Rodriguez

changing cardboard crust
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
advertising the turnaround
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.”
relation to class
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”
references
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