Fisher, Fisher & Lim

Executive Summary and National Proposal:

A Year-Long Campaign for Media Channel Integration to Drive Domino’s Pizza Mobile Ordering

November 2013

Prepared By:Alex Fisher

Executive Summary

1 EXECUTIVE SUMMARY

As the great adman Howard Gossage once said, “People don’t read advertising, they read what interests them, and sometimes, it’s an ad.” Fast forward to 2013 - The mobile device has become a ubiquitous hub in which over 3 billion users in the connected world revolve around daily. The boundaries between analog and digital user experiences are blurring. New media and digital devices continually challenge the old guard of siloed media – TV, Radio, Online, and Print – all have declined in consumption in the stead of mobile. Commerce, social media, news, and traditional sites have found ways to become adaptive as users rely more and more on mobile devices to gather, share, and create information.

The big question: How will people contend with Domino’s Pizza in this arena of constant change? With a greater amount of messages bombarding the world, how can consumers successfully migrate to and use the Domino’s app to order? What will ultimately motivate a purchase from the app instead of phone or online?

In the first-quarter 2013 earnings call in April 2013, Domino’s Pizza noted that during the quarter, it witnessed a higher usage of the Internet and smartphone apps to order pizzas. Digital orders account for 60% of the orders in the UK and 35% in the US. Overall, digital orders contribute about one-third of the company’s total orders.

We at Fisher, Fisher & Lim (FFL) understand that advertising natively on mobile devices will prove challenging – conversion rates are low as many users find advertising across mobile devices to be a nuisance. Not only, Domino’s current TV spots are already urging consumers to drop the phone and go online to order. Conventional efforts following suit risk being dwarfed by the existing campaign. We invite you to look outside of the (pizza) box.

1.1 RESEARCH

The Domino’s Pizza Challenge brief summarizes your company’s openness to new communication ideas. You understand your target, but we believe that there is a more focused, segmented audience. After our research, we were able to determine that a new target market existed – one that would yield a greater response to a marketed app.

Our primary research into the app demanded we use the app ourselves first. Our team ordered several Domino’s pizzas on multiple occasions. In an effort to vet its functionality, our key observations were recorded:

The thoroughness of the app allows for flexible customization as well as wealth of preset topping options.

Initial account setup can be a lengthy process. In order to establish a pizza profile, the app asks for a lot of information: credit card number, email address, address and phone number.

Once the account is created, the data is saved in the system and ordering Domino’s becomes quick and easy for subsequent orders.

After an initial account is created, users will find the Domino’s app to be extremely practical and efficient. With the creation of a pizza profile, the app saves users a lot of time and helps to avoid the hassle of ordering pizza through a tethered line via phone or online. The advantage of mobile predicates it as the next step to providing an integrated and digital “path-to-purchase.” More importantly, it is the demographic behind mobile that is driving the digital future of commerce.

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1.2 TARGET MARKET

We took into consideration the target market that was identified prior to our research. You defined your target audience as people between the ages of 18-49, slightly skewed towards female with a focus on moms and/or heads of houses. While utilizing sources in our research such as marketresearch.com, MRI plus database and numerous interviews with our Domino’s-loving friends (See Appendix I for detailed sources), we began seeing data that revealed a trend - High frequency Domino’s users are concentrated in a particular age group.

According to market research data on Fast Food & Drive-In Restaurants from the Spring of 2012, 11.6% of the American population ordered Dominos in the last 6 months. By defining frequent consumers as ordering 6 or more times a month, we found that within the 18-24 age group, 22% bought Domino’s in the last 6 months. In the group of 25-34 year olds, 23.6% purchased Domino’s pizza in the last 6 months. Therefore, we believe the focus of your marketing efforts to be towards frequent Domino’s user – people between the ages of 18-34. This range is commonly referred to as the mobile generation – those savvy and conversant with digital and mobile spaces. Smartphones are an essential part of their lives. Fortunate for the Domino’s app, those who are frequent Domino’s consumers are more than twice as likely to be part of the mobile generation. This provides an opportunity for you to connect with this segment.

In support, 2012 data from Waterfall Mobile show that 25-34 year olds have the highest penetration, followed by college age students that are 18-24 year old. This means that 18-34 year olds are leading the other age groups in adopting smartphones to their lives. eMarketer’s report on college students from 2012 projects that this age group, by the time the class of 2016 graduates, close to 90% of college students in the US will own a smartphone. Compared with 58.5% of the total US population, this age group dominates smartphone usage. Lastly, looking at a 2013 infographic from Adweek, smartphone ownership is predictably shown to increase across all age groups. Again, it is the younger adults who are most likely to be adapters. Within the age groups of 18-24 and 25-34 year olds, 79% and 81% own a smartphone, respectively. This is higher than all other age groups. College students and young adults are incredibly connected, but with that connectivity, fragmentation and consumption fatigue follow close behind.

As of now, the Domino’s app has nearly 2 million downloads. Why not more? After taking in consideration of the data we found in our research, we concluded that the only reason that the frequent Domino’s customer is not using the app is because they are not aware it exists for them. They order online because they think that’s the fastest and easiest way, or some young adults are simply used to the traditional call-in method. What they don’t know is that the Domino’s app stands to be an interactive tool that will get them to their favorite pizza even faster. We need to find a way to close the app gap for 18-24 year olds. How can it be done? By increasing awareness.

Through our strategy, conception, and creative execution, we believe that Domino’s can continue their leadership on the digital forefront through tactics that will successfully reach a dedicated and digitally connected Domino’s lover.

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2 CREATIVE

According to Business Insider, Print, TV, and Radio take up the most ad expenses for companies in 2013. For Print, time spent by consumers is on the decline. Mobile and Web show a great increase in time spent, with ad dollars trailing. For the digital frontier, the industry is still trying to master the many communities, segments, and demographics that now are loosely cobbled together to form an ever specific and fragmented network. The mobile space shows the greatest in potential in advertising, but also the greatest risk. Perhaps the answer isn’t in traditional means of advertising or in the infancy of the mobile stage. We hope to deliver an idea that packs a wallop. It is an idea that is in step with guerrilla tactics, but one that is fun, relevant and challenges loyal Domino’s pizza customers.

From our frequent orders of Domino’s Pizza that’s fueled our research and nights together at FFL, we struggled to find the right bridge to the “app gap.” How will 18-34 year old loyal customers, who happen to be mobile savvy, know to adopt the Domino’s app? We looked to the box.

Since Domino’s strategic picked up the eight sided corrugated “octabox” structure in 1988, the box design has become synonymous with the Domino’s brand. We believe the box is the perfect media form of communication for this campaign. Through the years, the Domino’s box has taken on great messages on it, always colored in red and blue. The designs of late recall a more nostalgic and artisan mindset as detailed woodcut designs and eclectic elements have proven to be successful for rebranding efforts.

The Domino’s Pizza box is the one thing that the frequent Domino’s users see the most. In actually looking at the box, we found that there are an overwhelming amount of messages. There is so much information, no one idea can be singled out at first glance. So, we propose to introduce the Domino’s blank box. For a couple of weeks, Domino’s pizzas will be delivered in completely blank boxes all across the U.S. There will be absolutely nothing printed on them.

The purpose of this is to grab the attention of the Domino’s customers and stoke curiosity about what is happening. After the first two weeks, we will start introducing messages in the boxes that will promote the Domino’s app. The boxes will still be completely blank with the exception of one line of copy and an image of the app icon.

The copy will be designed to highlight the benefits of ordering with the app. Accompanying copy will seek to connect with customers by voicing the anxiety associated with ordering in other methods aside from the app, taking time away from the social event or task hand.

Example copy:

“Try explaining half no cheese but heavy sauce, light green peppers, extra pepperoni, and the broken doorbell over the phone.”

“Every app order saves you 3.4 minutes. Over a year, that’s 2 1/3 innings. ”

You could’ve cleaned up your email inbox by now.

Every app order saves you 3.4 minutes. Your friends will like you 2.6 times more.

Section 2.1 (Exhibit A) below demonstrates a prototype of the initial roll out blank box design. Section 2.1 (Exhibit B) demonstrates the prototype with copy. Section 3 and on will demonstrate the follow-through and strategy of implementing this campaign.

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2.1 Exhibit A

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Exhibit B

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3 CAMPAIGN INTEGRATION OVERVIEW

The standalone Domino’s Blank Box is a powerful gateway in which consumers can see the campaign and have a chance to interact with the app. The blank box strategy will have positive effects other than simply making Domino’s customers aware of the app. After rolling out the campaign giving no public notice, national attention will create extremely valuable earned media. It is almost a certainty that advertising trade publications will pick up the story of the blank box. This simple idea of less is more is sure to generate attention in the industry. 

Customers will be able to discuss through word of mouth and speculate as to what the mysterious Domino’s blank box means. The story will be covered by advertising trade publications and will reach social and traditional media as well. Often, the media publishes story on trends in advertising and unique campaigns.  Any mention of this campaign by any media source is free publicity for Domino’s. Ample opportunities will shore up to manage the pipeline of media and messages about the boxes via owned media channels as well.

4 OWNED CHANNEL ANALYSIS AND POSITIONING

This past February, Patrick Doyle, the chief executive officer of Domino’s, delivered a key message to the Washtenaw Economic Club: “To us, social media drives everything. Consumers own the brand, we don’t own the brand.”

Doyle understands that in order to competitively position Domino’s as a friendly company, the products and sales must support the channels communicating to customers. His lessons gleaned from the six week customer feedback campaign revealed that honesty, transparency, consistency and customer engagement are the keys to running a successful company. In section 4.1 and 4.2, we have chosen the top two social media channels that Domino’s is most active on. Within each channel, specifically tailored content must further drive the blank box campaign. The most important key tactic to keep in mind while facilitating content during this period is to attach clickable links and any backlinks to the Domino’s app.

4.1 Channel Selection

Facebook – 8,862,324 fans

Twitter – 425,482 followers

4.2 Channel Functions

Twitter and Facebook – In the first two weeks while #blankbox is in effect, Facebook will generate content that precursors Exhibit B. Domino’s will take over this hashtag, establishing a strong presence online between earned and owned media.

Content will tease the idea of how people can enjoy what they want without restricting themselves. Content can also lightly poke fun at problems that can potentially occur during orders that could be solved by the app. The strategy is to use social media as a way of empathizing with fans and getting people comfortable with the next idea (the app) after the initial two weeks.

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Afterwards the blank box with copy rolls out, social media can begin fully addressing the mystery of the blank box. Links can be incorporated into content that lead to the Domino’s app on Google Play or the Apple Store. Reiterate some choice copy lines shown on printed boxes. Attach or reshare user submitted queries and pictures.

5 TACTICAL PLAN

Social media provides an opportunity to integrate this campaign across owned media channels. Facebook (8.8 million likes for Domino’s) and Twitter (410,886 followers for Domino’s) will the choice channels to use because of the high number of individuals who are exposed to Dominos’ social content.  These messages of these pages will mirror that of the boxes. When the blank boxes are debuted, social media will be used to add intrigue to the mystery of the blank box.  Potential tweets and Facebook statuses could contain such messages or ideas as:

Before (#blankbox)

“Sometimes we blank out too while on hold.”

“Don’t let slow internet cramp your ordering style.”

“Shouldn’t you have your pizza and eat it too?”

“We believe in sharing without compromising”

After (#blankbox)

“43,281,309 different pizza possibilities. Don’t believe us? Try counting them out yourself.”

“We have too many options on our app. Try to stump us with your craziest order.”

“Just because the box is plain doesn’t mean our pizza is.”

o Attach pictures tagged or submitted by users to further drive buzz about the blank box.        

o Attach clickable links to each post to drive customers to download the app.

All tweets would end in the hashtag #blankbox.  In this stage of the campaign it is important to closely monitor social media accounts and interact with customers.  The more consistent and relevant the two way communication is between customers and Domino’s, the higher the placement and penetration of Domino’s content in newsfeeds. Customers will use their personal accounts to mention Domino’s and/or use the blank box hashtag.

Once the blank boxes appear with the copy pertaining to the app, social media will change to communicate the same message. Links to download the app will appear in each post to drive users to use the app. The messages on the box at the same time will strategically emphasize the benefits of using the app. Social media can be used to describe benefits in

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a similar light as the box. With each post or tweet, there is a valid and immediate opportunity to mention the app and feature a link to where the app can be downloaded.

6 APPENDICES

6.1 Budget

Minimal expenditure. Cost of printing collateral with diminished expenses in ink usage. during two week roll out.

6.2 Forecast Results of the Marketing CampaignApp downloads increase by 25%Increased coverage by earned mediaIncreased Facebook and Twitter followers by 15%

6.3 Citations

Alfs, Lizzy (2013, Feb 21) Patrick Doyle: How Domino's Pizza used social media to change

its reputation. The Ann Arbor News. Retrieved on Nov 3, 2013 from

http://www.annarbor.com/business-review/patrick-doyle-how-dominos-pizza-used-

social-media-to-change-its-reputation/

Blodget, Henry & Danova, Tony (2013, Nov 12). The Future Of Digital: 2013. Business

Insider. Retrieved November 13, 2013 from http://www.businessinsider.com/the-

future-of-digital-2013-2013-11#

Correll Concepts (n.d.) Notice to Pizza Box Purchasers. Correll Concepts. Retrieved Nov.

6, 2013 from http://www.correllconcepts.com/Pizza_Packaging/history.htm

eMarketer (2013, Aug 28) College Students Adopt Mobile Across the Board. eMarketer.

Retrieved on Nov 5, 2013 from http://www.emarketer.com/Article/College-Students-

Adopt-Mobile-Across-Board/1009301

Kane (2012, Feb 21). Smartphone Penetration And Marketing Engagement Strategy Stats

Update. Waterfall Mobile. Retrieved November 5, 2013 from

http://waterfallmobile.com/blog/2012/02/21/smartphone-penetration-and-marketing-

engagement-strategy-stats-update/

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MRI (2012, April) Fast Food & Drive in Restaurants. Market Research Insight.

Pew Research (2013) Pew Research Center’s Internet & American Life Project,

Smartphone ownership. Adweek. Retrieved Nov 15, 2013 from

http://www.adweek.com/files/data-smartphones-02-2013.jpg

Miller, K. Richard. (2012) Takeout & Delivery. NPD Group.

Yin, C. Jim (2013, July) Industry Surveys. Standard and Poor’s.

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