27) Domino’s Pizza


wēi  danger

Domino’s Pizza was founded in 1960 and through the years has developed a number of innovative consumer propositions, including the ’30 minute guarantee’ (receive the pizza within 30 minutes of ordering, or it’s free).   This and other innovations fueled the company’s expansion to 8,500 corporate and franchised stores in 55 countries.  However, Domino’s profit has been eroded by a number of entrants to the category and by a series of other high profile mistakes, including giving away nearly 11,000 free medium pizzas in March 2009 because of a glitch on the website.  That being said, Domino’s greatest concern (and probably the best leading indicator for any business) was that its product was disappointing to consumers.  Quotes from focus groups and Twitter included “microwave pizza is far superior”, “mass produced, boring, bland” and “tastes like cardboard”.

jī opportunity

Instead of trying to hide from this frank feedback the Domino’s management chose to embrace social networks and to publicise the negative feedback.  They then publicly set themselves the challenge of reformulating their pizza and have launched a website – www.pizzaturnaround.com – on which they continue to chart their journey. To catalyse real change, the feedback was shared in full with Domino’s best chefs and new recipes were tested with consumers, including those that were most negative in focus groups.  The financial impact is yet to be seen but comments on social networks, particularly Twitter, indicate that the campaign has triggered many previous consumers to retry Domino’s and that the new recipe is more popular.

how about…

  • monitoring social networks for consumer sentiment to your brand?
  • identifying if your opportunity is to attract new customers or encourage lapsed ones to retry?
  • publicizing consumer feedback, good or bad (remembering it’s public already anyway)?
  • making public commitments to change products or services in specific timeframes (thereby forcing internal change)?

Source: reference from Ryan Jacoby – click here – thanks Ryan