Domino’s Six Can-Do Actions Drive Sales Increase
According to the latest news, Domino’s appears to be doing well in these extraordinarily difficult coronavirus conditions. Reports indicate that Domino’s same-store sales in the United States increased 16% in the second quarter of 2020.
Much of Domino’s success comes from the fact that he has “owned” the pizza delivery for quite some time. Domino’s has not had to scramble to cope with delivery increases due to the coronavirus. The brand has made some changes to address customer fears. As part of its delivery commitment, Domino’s has instituted contactless delivery and additional security procedures.
Compare Domino’s success with Pizza Hut. Pizza Hut is in trouble. The poor performance of the Pizza Hut brand weighs heavily on YUM !, which includes KFC and Taco Bell, and Habit burger. Reports say Pizza Hut is losing to Domino’s and Papa John’s.
Pizza Hut’s largest franchisee and the largest franchisee in the United States, NPC International, has filed for bankruptcy. NPC has 1,600 Pizza Hut and Wendy’s stores: 1,200 Pizza Hut and 400 Wendy’s stores. NPC’s bankruptcy declarations indicate that its sad fortunes are linked to the decline in sales of Pizza Hut. NPC told bankruptcy court during its hearing that labor costs and the lack of availability of certain ingredients such as fresh beef were also responsible for Pizza Hut’s problems. According to Business intern (July 1, 2020), documents filed by the NPC state: “The deterioration in brand recognition has been further exacerbated by the decrease in menu innovation and the lack of a clear, long-term strategy from the Pizza Hut franchisor to resolve brand issues to provide a differentiated identity.
This statement from NPC is important. Certainly, Domino’s delivery history has made the brand ready to handle in our current pandemic crisis. And the focus on securing that delivery from a customer perspective has also bolstered Domino’s reputation as a premium pizza delivery guy.
But, there is something more. What does Pizza Hut represent these days? What is its relevant brand differentiation? Without a clear brand differentiation, Pizza Hut is just another generic offering making it particularly vulnerable in this volatile time. What is the claim and distinctiveness of the Pizza Hut brand?
Pizza Hut should take inspiration from its siblings, KFC and Taco Bell, who have both created compelling brands. KFC uses The Colonel whose values and personality permeate the brand with authenticity. Taco Bell has cultivated an irreverent, somewhat rebellious and day-to-day indulgent brand through extraordinary menu creativity.
Domino’s has embarked on a long and disciplined brand rebuild which is now bearing fruit. Domino’s faced the facts and took action, which has earned him a current top performance. Here are the six “Can-Do” actions that Domino’s has taken to rebuild its brand.
1: Repair food
Over ten years ago, Domino’s decided on an audience mea culpa by honestly announcing that his product tasted terrible. The crust tasted like cardboard and the sauce tasted like ketchup. Domino’s pizzas had been excoriated on social media. Using actual focus group conversations with customers in the ad, Domino’s admitted their product lacked flavor. As comedian Stephen Colbert once said, “It takes alpha meatballs to get up and say ‘America, we suck. “”
The bold admission of a tasteless product had an extraordinary effect. Domino’s had built its business on speed of delivery and reliable service with “good enough” pizzas that were at least hot when delivered. Quality was a secondary priority next to delivery. Domino’s was a quick way to have hot pizza right at your doorstep.
Fixing food, Domino’s reinvented their pizza by making the sauce tastier – sweeter and spicier – and making the dough much better. According to Detroit News in 2009, Domino’s revisited pizza has “a new garlic-seasoned crust topped with a blend of mozzarella and provolone held together by a nuanced red pepper infused sauce that tastes sweet at first but ends with a kick”.
2: Disciplined new product development
In addition to preparing the food, Domino’s is committed to offering a varied new menu. For a year, Domino’s continued to update its map. In 2010, over 80% of Domino’s menu was new or different from its 2008 menu. The brand added sandwiches and pastas to increase breakfast sales. Additionally, a more varied menu may appeal to groups where some people might not want pizza.
3: restore relevance
Following the taste transformation, Domino’s focused on the reorganization of the store. The ad featured real franchisees saying they were so personally invested that they were tearing down their stores to build better, more modern stores. Seeing franchisees using hammers on drywall out of love for the brand was compelling. Bright and contemporary new stores reinforced the perception that the brand was keeping up to date.
4: Reinvent Delivery – Again
Then came the Domino’s Carryout insurance program. This program states, “We guarantee your pizza looks and tastes great when you pick it up at your favorite Domino’s. But, we understand that accidents do happen. Domino’s Carryout Insurance program protects your order if it is damaged after you leave the store. Simply return the damaged, uneaten pizza to the store you ordered in its original packaging within two hours of purchase, and Domino’s will remake it for free.
5: Focus on direct competition
Since December 2009, Domino’s has focused on turning the brand around by developing relevant differentiation that connects with customers. In doing so, Domino’s has carved out a place for itself in the pizza category. Domino’s created a brand with a positive attitude that today generates honesty, responsibility, transparency and credibility. Domino’s positive attitude helps customers believe the brand will do what it says it will do, whether it’s fixing food or providing safe food.
6: Concentration is fundamental
All of these communications were deliberately aimed at giving Domino’s a differentiated and relevant brand promise. Domino’s decade of customer-centric rebranding has revolved around the brand, making it more than a delivery hero brand, but one that customers feel confident about for a meal. safe, delicious and at home.
Domino’s is resisting Covid-19 due to its disciplined approach to relevantly differentiate its brand promise while other brands focus on generic characteristics such as ingredients, delivery, variety and price. Domino’s is a great example of how to reinvent a brand without ever taking your eyes off which made the brand great in the first place. Domino’s does not only communicate the delivery of delicious pizzas. Domino’s is a brand that we believe does what it says it will. This positive attitude generates reliability, honesty, responsibility, transparency and credibility. Building trust in the brand is helping Domino’s weather the current crisis profitably.