Domino’s Digital Initiatives Boost Flagging Sales
The use of social media as a marketing tool is widely criticised by many in the consumer field; not by Domino’s Pizza though. The fast-food giant has dubbed 2011 as ‘the year of the app’ and suggests that money-saving digital means have been the route to the company’s recent turnaround.
The retailer claim that Group revenue increased by a significant 11% (£210m in the year up to 25 December 2011) driven by online sales, which increased by 43% (£183.1m) and regularly account for half of all the pizza chain’s daily sales.
Mobile sales alone accounted for 14% of all Domino’s online sales in the final quarter of the year following the introduction of iPhone, iPad and Android apps.
As a company that have 300,000 fans on its Facebook page, it used this social media network to promote new deals such as 50% off their first ever ‘Global Domino’s Day’ as well as a pre-launch trial of its newest edition to the menu ‘boneless ribs’, prior to its national release.
This pizza chain also put their success down to new products including the Premium Gormet range, various ‘stuffed crust’ options, and Reggae Reggae pizzas (in partnership with Levi Roots).
Recently appointed CEO of Domino’s, Lance Batchelor claims that the rise in commerce has been overwhelming and puts it down to communication to new and existing customers through online channels. He says that “While many companies see only threat in recessionary times, we see opportunity”.
“From targeted email marketing to exciting competitions and initiatives via Facebook and Twitter, we continue to use these relatively low cost methods to promote new products, reward our top customers and create excitement in the brand.”
Domino’s is conscious of the fact that although online marketing has proved hugely important to the company’s growth, they are still great believers in more traditional methods of marketing; their “It’s what we do” brand campaign which launched in July last year increased company sales, as did the tactical price promotions.
The chain continues to expand and plan to carry on opening around 60 new stores each year. Wherever you go, whether it’s in Luton or Leicester, Cambridge or Colchester, there is usually a Domino’s Pizza on every corner!
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