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IMC 616
Direct Marketing
Prof. Marold
12/21/13
Assignment: Week #9 (Final Paper)
Domino’s Pizza Case Study
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Introduction
Falling in the highly competitive and highly lucrative quick service restaurant (QSR) industry,
pizza places are able to tap a wide range of audiences  as  more  than  95%  of  the  United  States’  
population claim to eat this popular meal (Sauber, Marold, Anderson, 2011).  Domino’s  Pizza has
worked hard in recent years to steal market share away from its competitors while also
strengthening its position and raising awareness of new recipes and offerings to its target
audience. With solid footing on the delivery business, it has much room for growth on the
carryout side. With a $150,000 budget, a number of tests will be put into place to determine
the best direct/interactive tactics to be used to grow its business and boost carryout sales.
Overview
Domino’s  Pizza  is  the  third  largest  pizza chain the U.S. Trailing behind Pizza Hut and ahead of
Papa  John’s  and  Little  Caesars,  the  pizza  industry  is  quite  segmented.  If  fact,  small  independent  
retailers  make  up  more  than  half  of  total  market  share,  meaning  the  “Big  4”  are  all  fighting  for  
less than 50%. But at $33.5 billion, even small increases in market share translate to large
profits (Sauber, Marold, Anderson, 2011).
Domino’s  was  founded  in  1960  by  two  brothers  in  Ypsilanti,  Michigan  who  borrowed  money  to  
open their first location. Tom Monaghan eventually came to manage the business and focused
on a small menu with an emphasis on delivery. The company grew and expanded over the next
50 years, opening up corporate owned locations as well as locations through franchisees
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(Sauber, Marold, Anderson, 2011). Today, there are more than 9,000 stores around the world,
with more than 4,000 of them located abroad (Campos, 2013, pg. 1).
One of the most significant criticisms of  Domino’s  over the years from consumers was the poor
quality in taste of its  pizza.  Instead  of  trying  to  avoid  the  issue,  Domino’s  attacked  it  head  on.    In  
2010,  Domino’s  underwent  a  transformation  with  a  campaign  dubbed  Pizza  Turnaround.  In  a  
very public way, it researched, taste-tested and strategically crafted a better and fresher pizza.
(Fera, 2013). The new pizza was also accompanied by a re-branding, one focused on quality
food, a better menu and more transparency, evident in their ultra-active social channels.
According to Adrian Campos of Motley Fool, the result of the campaign was significant.
Domino’s  posted  a  14.5%  increase  in  revenue  in  2010  alone  and  stock  rose  400%  in  the  three  
years following the campaign. Between 2000 and 2013, the customer satisfaction index score
increased from 69% to 81% (Campos, 2013).
Domino’s  is  a  leader  in  delivery  orders  but  sees  room  to  expand  with its takeout business. With
an expansive menu, it has displayed mobile and Internet innovation. Based on these perks,
Domino’s  Pizza  believes  it  is  well-equipped to grow the carryout side of its business. With
$150,000, a number of direct/interactive marketing tactics will be tested over the course of
three months in the Columbus, Ohio area to try and reach two district audiences and raise
levels of carryout sales among these groups. If the test is successful, these initiatives will be
carried out nationwide.
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Direct/Interactive Tests for 18-24 Year Olds
The 18-24 year old audience is highly coveted among many brands. This is the group that is
fresh out of high school, either attending college or working their first full time jobs. Most are
unmarried and are getting settled into their first apartments, dorm rooms, or are still living with
mom and dad while they job search. They do not have much money but tend to be less likely to
save than other demographics (The Social Dynamics, 2009). They have a tendency to be early
adopters and opinion leaders, curating the new trends of today, especially as it relates to
technology, fashion and entertainment. They are generally hard to reach because of their
skepticism against traditional advertising (The Social Dynamics, 2009).
Pizza is a favorite meal of Americans and is eaten by 95% of the population. More importantly,
21% of people ages 18-24 purchase pizza more than three times a month, compared to only 7%
of those over age 65 (Sauber, Marold, Anderson, 2011). This makes for a potentially lucrative
market  for  Domino’s  Pizza. Based on the fact that this group enjoys late night food and are not
always worried about healthy eating choices, this could  be  a  profitable  area  for  Domino’s  to  
focus. Three tests will be developed to reach this audience including postal inserts, mobile
marketing and in-stream audio ads.
Postal Inserts
According to the U.S. Census Bureau, there are 19.9 million college students in America, making
up nearly 7% of the population aged 3-years-old and up (US College Student Demographics in
2012, 2013). Since many of the 18-24 year-old audience is enrolled in college, it would be
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worthwhile to do a direct mail test specific to this audience. College students, especially those
living on-campus, enjoy late night orders when studying or partying. To try and encourage take-
out orders from this population, postal inserts will be sent to college dorm mailboxes in the
Columbus, Ohio region. Students at Ohio State University, Columbus State Community College,
Fortis College, DeVry University, Ohio Business College, and  Bexley’s  Capital  University  (selected
at random) will be targeted. Postal inserts will be sent to all student mailboxes that live in dorm
rooms. The inserts will boast the menu items that  Domino’s  has  to  offer  as  well  as  include  a  
coupon for a free 2-liter soft drink with any carryout order. The number of coupon scans will be
recorded to determine the number of students who took advantage of the offer and measure
the overall test. The total cost would be $30,000, not including the product giveaway.
Mobile Coupons
According to Nielsen, the 18-24 year old audience is the most active when it comes to using
smart phones (Does college play a role in media consumption, 2012). Mobile marketing,
therefore, is a great channel for  Domino’s  to  present  offers  to  this  audience.  Domino’s already
has been placing heavy emphasis  on  mobile.  “With  35  percent  of  its  $2  billion  in  global  digital  
sales coming from mobile and more than 6 million downloads of its mobile application,
Domino’s  offers  convenient  ways  for  consumers  to  order  via  mobile” (Borison, 2013).  So  it’s  
fitting to try and tap the active 18-24 year-old audience through these means. Domino’s  will  
develop a promotional code that can be entered when a mobile user places a carryout order
from  the  Domino’s  app or mobile site. The #CarryoutColumbus code will offer a free order of
breadstick to anyone using the code for a carryout order. “Keeping  information  in,  and  
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executing  mobile  couponing  communications  from  ‘the  cloud’  can  help  break  through  these  
limitations and broaden interaction options through multiple channels”  (Chavie,  2011,  pg.  1).  
The users will obtain the code from mobile ads that will appear on popular gaming apps like
Subway Surfer, Angry Birds, Fruit Ninja, Yahtzee Addict and Spider Solitaire. 18-24-year-olds will
be targeted through filters within the advertising models of the gaming platforms. This test will
cost $20,000 of the total budget.
In-Stream Audio Ads
Music streaming is widely popular among the younger demographic. Sites like Pandora, Spotify,
TuneIn and Songza boast streaming from both desktop and mobile apps for unlimited hours.
Paid versions are ad free but free versions allow advertisers to place short ads (15-30 seconds)
in between every five songs or so. According to eMarketer, age groups 16-20 and 21-24 are the
heaviest users when it comes to music streaming (With streaming and sharing, 2012). Domino’s  
can take advantage with short direct marketing ads during song breaks on these streaming
sites. By creating a unique, easily remembered domain name like carryoutcolumbus.com,
Domino’s can direct users to a mini-site which talks more about its new pizza recipe, its wide
offering, and the ability to get a free 2-liter drink with carryout orders placed through the site.
The mini-site is needed since in-app audio ads are very short and many users are listening while
participating in other activities and cannot always act immediately with a click. The unique and
memorable domain name is a call to action that can provide more info at a later time and can
easily be measured through Google analytics. Both visits and e-commerce transactions from the
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mini-site will be measured. The test will be aimed at users who are 18-24 and live in the
Columbus, Ohio area, reached through users’ profile information. This is a great avenue for
Domino’s  to  tap  the  young  audience  members.  “You  have  a  prospect’s  complete  attention  for  
15 or 30 seconds – clutter free! Combined with great targeting abilities, in-stream audio
advertising not only offers clutter-free ad space, but you can also ensure that you are reaching
your  exact  audience  and  won’t  have  wasted  impressions”  (Lechtenberg,  2013,  pg.  1).  The
budget for this test, including the ads and the development of the mini-site, is $25,000.
Direct/Interactive Tests for Households with Children
Besides those in their late teens and early 20s, another critically important audience for
Domino’s  Pizza  is households with children. According to Sauber, Marold and Anderson, 20% of
this audience purchases pizza more than three times per month (2011). Domino’s  Pizza  has  
plenty of offerings for an entire family. Buyers can easily purchase pizza, breadsticks, pasta and
a drink to feed a family of four at an affordable cost. According to Nielsen Claritas, households
made up of families make up about 35% of the total U.S. population. This is primarily made up
of  the  “Winner’s  Circle”  segment.  Nielsen describes these folks as 35- to 54-year-old wealthy
middle aged adults with kids. They shop at Ann Taylor, visit theme parks and watch American
Idol. They are mostly white and live in the suburbs (2013 PRIZM Segmentation System, 2013).
This is a lucrative audience for Domino’s  Pizza  to  tap  and  grow  its  takeout business. Three tests
will be created to improve penetration among this group including direct mail, email marketing
and paid search.
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Direct Mail
Although the most costly of all the efforts, direct mail can be a tremendous opportunity for
Domino’s  Pizza to capture the attention of the target audience. By sending mailers with
coupons to households with children, parents can take advance of the deals and purchase
Domino’s  Pizza  on  a  more  regular  basis.  “The Direct Marketing Association (DMA) has found
that direct mail boasts a 4.4% [open] rate, compared to email's average response rate of
0.12%...Depending on how one crunches the numbers, direct mail has a response rate of up to
10 to 30 times that of email — and even higher when compared to online display” (Schiff, 2012,
pg. 1). The creative will focus on a family dinner and feature specials, like a large pizza and 20
wings for $14.99, for those who redeem the coupon during their carryout order. The coupons
will be scanned at the register to help measure the success of the campaign and identify the
amount  of  conversions  from  the  test.  “While  the  USPS  has  financial  struggles, its service
remains popular and cost-effective.  We’re  seeing  an  inverse  law  of  marketing  physics  – as our
email inboxes fill up, our  regular  mailboxes  are  becoming  less  crowded”  (Boyarsky,  2012,  pg.  1).  
Only households in the greater Columbus, Ohio region will be targeted. Between the creative,
printing and distribution costs, the total spend for this test would be $40,000.
Email Marketing
Email  is  the  next  effort  that  will  be  tested.  It’s  less  intrusive  than  direct  mail  and  telemarketing  
and also much less expensive. In fact, from a return on investment (ROI) standpoint,  it’s  the  
most rewarding direct marketing tactic at $28.50, compared to $7 for direct mail (Schiff, 2012).
It’s  also  one  of  the  most  prolific  forms  of  communication  today.  Domino’s  Pizza  can  create  a  
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custom HTML designed email with appetizing creative and a simple message that encourages
families to purchase foods offered at the pizza chain. It will also feature a printable coupon
(housed on the mini-site domain) for users to download and redeem in store when they
carryout.  Metrics  in  the  email  software’s  backend  will  help  to  understand the success of the
campaign. Opens, clicks, spam reports, forwards, and coupon downloads will all be measured.
“Specifically, for the adult with children audience, email is a great medium for communication.
77% of consumers stated that email was their preferred way to receive promotional messages.
For adults over the age of 35, email was preferred by roughly 80% over direct mail, text
messages,  Facebook,  Twitter,  mobile  apps,  LinkedIn  or  telephone  solicitations”  (Pluth,  2012,  pg.  
1). This translates to an ideal platform to reach the parent audience. Three emails over the
three month period will be distributed to head of household members in the Columbus, Ohio
region. The total budget for this effort would be $10,000.
Pay Per Click
Pay-per-click advertising through Google Adwords is a great opportunity to tap audience
members using popular, relevant search terms that are used when exploring on the web. Direct
marketing efforts through paid search will be able to intercept those looking for a pizza place
online  in  the  Columbus,  Ohio  region.  Search  terms  like  “pizza  places,”  “pizza  near  me,”  “pizza  
shops,”  or  “best  pizza around”  will  only  be  a  few  of  the  keywords  being  bid  upon.  According to
a  report  from  DM  News:  “56%  of  search  engine  traffic  revenue  can  be  attributed  to  clicks  on  
organic links, compared to 44% that can be attributed to clicks on paid search links. However,
paid search did pull ahead in terms of conversion rate and order size. The report cites that paid
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search  generated  a  35%  higher  average  conversion  rate  than  that  of  organic  search”  (Jarnot,  
2013, pg. 1). There will be a combination of both search and display advertising. The former are
text based ads that appear  on  search  engine  results  pages.  Ads  like  “Order  Pizza  Now” would
direct users to the mini-site where consumers can learn more about the special deals that
Domino’s  Pizza  has  to  offer.  Similarly,  display  ads  are  image  based  ads  found  on  relevant  
websites in the Google Display Network. Display ads typically have lower conversion rates but
are cheaper, which translate to more clicks and impressions. The display image ads would boast
creative around a family meal and again link to the Domino’s  Pizza  mini-site where visitors
would see special offerings. The mini-site would be mobile optimized since many visitors
coming from paid search ads are using mobile devices. Only users within the Columbus, Ohio
area would be targeted. One of the key advantages of AdWords is the ability to track.
Impressions, clicks, bid levels, costs, and conversions can all be measured to determine the ROI
and value of the campaign. The total cost attributed to the pay-per-click campaign test through
AdWords over the three month period would be $25,000. This brings the total amount for all
tests to a budget of $150,000.
Type of Data Collected from Online Customers
Tailoring targeted messages to customers and prospects is a tremendously effective approach
to marketing. Armed with rich customer data, businesses can speak directly to each customer
rather than mass audiences with generic messages. For  Domino’s  Pizza,  this  means  developing  
specific messages for each of its target audiences including 18-24-year olds and families. This
data includes both contact information for actual communication execution as well as
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geographical and psychographic information to craft the message and design the creative. Data
can include: name, address, phone number, city, state, zipcode, household size, household
income, ethnicity, frequency of pizza purchases and favorite pizza topping. “Never  
underestimate the power of your business's database or customer relationship management
(CRM) system. These tools hold valuable information that will help you understand your
customers, better meet their needs, improve your service performance, and expand to other,
underserved  customer  segments”  (Stark,  Stewart,  2013,  pg.  1).  By collecting, categorizing and
interpreting  this  customer  data,  Domino’s  Pizza can capitalize in a number of ways to develop
better products and execute more strategic marketing efforts to eventually grow sales.
Obtaining Product-Related Feedback
Like  any  B2C  company,  Domino’s  Pizza  is  constantly  exploring ideas as it relates to product
development. For example,  this  past  week,  Domino’s offered its first-ever vegan pizza in its
Israeli market (Chasmar,  2013,  pg.  1).  By  utilizing  customer  data,  Domino’s  Pizza  can  make  more  
sound decisions regarding potential new products. “Once  you  know which products are the
most popular, you can promote them more to increase sales. You can place those products on
your  shop’s  homepage  and  also  feature  their  image  on  advertisements…Removing unpopular
products allows you to focus your time and money on products that will get you a better ROI
and  increase  sales”  (Carillo,  2013,  pg.  1).  Should  Domino’s offer breakfast items? Are more
topping choices needed? Should there be healthier options? These are the type of questions
that customer data could assist in answering to ensure higher likelihood of success if/when
added to the menu.
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Identifying Most Popular Time/Day for Purchases
Every quick service restaurant has its peak hours. Dunkin Donuts thrives in the morning, for
example, while Taco Ball leaves its  locations  open  late  at  night  to  cater  to  its  “fourthmeal”  
audience.  It’s  important  for  Domino’s  Pizza  to  collect  customer  data  to  better  understand  when  
it’s  most  popular  days  and  times  are  for  purchases.  If  Saturday  nights  are  the  successful among
18-24 year-olds,  then  Domino’s  will  want  to  send  out  its  postal  inserts  on  Friday  to  arrive  mid-
day  on  Saturday  to  wet  the  college  students’  appetites.  If  6  p.m.  on  Friday  nights  is the biggest
hit among families, perhaps sending the e-newsletter to parents on Thursday afternoons could
draw the most successful open rates and conversions. Testing should be done in all
circumstances, but the customer data could provide direction for developing messaging and
determining when to execute marketing efforts.
Understanding Top Traffic Sources
Google Analytics is a great resource for collecting behavior on websites. With the software,
Domino’s  Pizza can track number of visits, time on site, which product pages receive the most
attention, the number of coupon downloads, number of online sales, and more. One of the
most powerful features in Google Analytics is the ability to view traffic sources. “Traffic  
sources…reveal great sites to implement or boost advertising. This can also lead you to sites
where your online shop or products have been mentioned or even reviewed. One final
advantage of analyzing traffic sources is that it can also tell you if any marketing campaigns
already  in  place  are  effective”  (Carrillo,  2013,  pg.  1).  This  customer  data  would  help  Domino’s  
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Pizza understand what marketing channels led to the most web visits. How are traffic numbers
as it relates to the e-newsletter? How many visitors came from in-stream audio ads? Did PPC
ads draw in a lot of potential customers? Traffic source data from Google Analytics helps to
measure the success of other online and offline campaigns and help dictate where future
efforts should be placed.
Obtaining Emails and Addresses for Direct Marketing Efforts
Much of the marketing tests incorporated within rely heavily on accurate contact information
of current and potential customers. Having up-to-date email and home/college addresses is
critical to ensuring that email and direct mail are delivered successfully to audience members.
This type of customer data is vital to marketing success. Furthermore, individuals should be
segmented based on demographics, geographical and psychographic information. By doing so,
tailored  messages  can  be  used  in  direct  and  email  marketing.  “Put  simply,  list  segmentation  
targets your communications and increases the relevancy of your messages—resulting in higher
open and click-through rates, enhanced customer loyalty, and increased sales. In email
marketing, the more relevant your campaign is, the better the response and the greater the
conversions”  (Christian,  2011,  pg.  1).
Recommendations System
One  of  Amazon’s  most  powerful  features  is  its  recommendations  system.  Common  across  the  
web today, recommendations systems help offer users additional products that they might not
know the company offers, or might not realize they want (yet).  It’s  a  great  way  for  brands  to  
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cross sell. By using customer data, Domino’s  Pizza  could  offer  additional  products  along  with  
purchases.  You’ve  placed  a  large  pizza  and  wings  in  your  shopping  cart?  Perhaps  you  might like
a pasta meal or an antipasto to go with it? Understanding customer buying trends and what
products  best  pair  with  other  products  can  help  Domino’s  Pizza  cater  to  its  customers  and  
maximize  sales.  It’s  a  better  shopping  experience  for  the  customer at the same time.
Obtaining Rich Customer Data from Carryout Buyers
Customer  data  can  serve  a  variety  of  needs  for  Domino’s  Pizza,  from  product  development  to  
more targeted contact info for direct marketing efforts. Obtaining this information can be a
challenge and should be considered on a number of fronts so as to maximize efforts and
generate more thorough data from customers in-store, online, and on social media platforms.
“Figure  out  what  data  you  already  have  and  what  you’d  like  to  have.  That  covers  all  of  your  
software-as-a-service applications (including CRM programs such as Salesforce.com), Excel
spreadsheets, partner information, sales receipts, and any other devices that collect
information”  (Belicove,  2013). Three specific ways that Domino’s  Pizza can obtain customer
data from carryout buyers include phone, website and through mobile orders.
Phone
A large portion of carryout buyers order pizza and meals by phone. A system should be put in
place (tie phone to CRM software on computer) where phone numbers are recorded along with
the specific order placed. The data can then be stored for future communication. For example,
the system can be integrated with the web. If a past customer enters his/her phone number,
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special products can be pitched based on past purchases. Perhaps the customer prefers
breadsticks or a 2-liter  Coke  with  every  order.  Domino’s  website  can  offer  recommended items
based on this buying history. All phone numbers should be recorded and put to use in
outbound  marketing  efforts.  It’s  an  effort  that  is non-intrusive too, since customers call the
location to place orders, essentially handing over their data at will.
Internet
According  to  Stephanie  Miller  of  ClickZ:  “Any action taken should be captured if it's possible to
capture. This includes data from kiosks, call centers, and mobile apps, as well as web data.
Consider: purchases, product views, shopping basket additions, video views, downloads, help
requests, registrations, comments, forwarding a link, reading/writing a review, searching, and
more”  (2013,  pg.  1).  Online surveys and social media feedback are two great ways to collect
customer data online. Although time consuming from a number crunching perspective, these
real-time, real-life answers are provided at little to no cost and feature authentic responses
from engaged customers. Responses online through these channels can help Domino’s  Pizza  
better understand the major wins and pitfalls of its products and service. As it relates
specifically  to  carryout,  Domino’s  Pizza  can  propose  questions  on  its  social  platforms and await
the reactions from fans who are providing free market research. Additionally, other types of
data should also be tracked and captured. This includes data from: online purchases, contact us
forms, and Google Analytics including contact information, feedback, searched keyword or
traffic sources, and more.
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Mobile
Finally,  mobile  data  through  Domino’s  Pizza’s  mobile  application  can  be used to capture
comprehensive data. Right  now,  as  a  user  proceeds  to  complete  a  transaction  via  Domino’s  
app, he/she must enable location and complete account information to place an order. This
information can be logged to track geographic data, contact information and preferences, as it
relates  to  Domino’s  offering.  By  joining  this  data  with  information  from  phone  and web,
Domino’s  Pizza  can  piece  together a thorough data set to assist with efforts. Knowing what
products customers prefer, which customers are loyal and repeat buyers, which geographic
areas  tend  to  eat  the  most  food  from  Domino’s  Pizza,  and  what  times  of  day  are  most  popular  
for carryout orders are only a few predictive conclusions that can be drawn from the results.
Mobile is a growing trend and it is promising that more orders will continue to be placed via
mobile website  and  mobile  app.  By  capturing  this  data,  Domino’s  can  encourage  large  purchase  
packages and curate better mobile marketing efforts to past customers.
Groupon Test
Groupon is a collective buying site that allows businesses to give away great discounts or deals
once  a  minimum  ceiling  of  participants  is  reached.  It’s  a  locally-focused tactic. Many small
businesses have seen successes as a means to get new prospects in the door with the
opportunity  to  sell  them  additional  goods.  For  instance,  if  Joe’s  ‘Cup of Joe’ Coffee Shop offered
a $0.25 cup of coffee to the first 100 people who purchase the deal, the hope would be that
those people who come in and buy a donut or muffin to go with the it. “By  offering  incredible  
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discounts that are greater than half-off the original price, these sites offer the potential to
generate hundreds to tens of thousands of sales from new  customers  within  a  single  day”  
(Hunt, 2011, pg. 1). Businesses do not make money from the deal itself (since they are very
steep discounts) but rather from the additional purchases on-site.
Groupon’s  group  buying  model  is  a  risky  business.  Many  experts  believe  you  only  attract  
“bargain  shoppers”  and  “coupon  junkies”  rather than building long-lasting loyal customers.
“With  Groupon  taking  a  50%  cut  of  each  voucher…the total expense of attaining those sales
from  a  merchant’s  standpoint  can  be  very  overwhelming.  Depending  on  the  cost  of  the  
voucher, it may not be a cost effective  to  use  group  buying  sites  like  Groupon  to  generate  sales”  
(Hunt, 2011, pg. 1). Thus,  it  might  be  more  effective  to  utilize  one  of  Groupon’s  new  features  –
a digital coupon offering. Although the deals are generally less attractive than the group buying
to consumers,  it’s  more  beneficial  to  the  seller.  There’s  no  minimum  ceiling.  And  there  are  
higher profit margins. “The online coupon market is worth about $4 billion a year and when in-
store coupons are included, the total addressable market increases to $28  billion…Groupon's  
Freebies business lists digital coupons that can be claimed for free. After clicking on the
coupons, shoppers are directed to the website of the brand or retailer and the discount is
automatically applied when they complete the purchase”  (Barr,  2013,  pg.  1).
Domino’s  Pizza  should  utilize  these  new  digital  coupons  for  testing  in  the  Columbus,  Ohio  area.  
There should be coupons that are offered for free breadsticks to those in the Columbus, Ohio
area.  The  offering  wouldn’t  be  a  dramatic hit for the company since breadsticks are one of its
- 18 -
most inexpensive items. The advantage is two-fold. The first, the user is directed from Groupon
to  Domino’s  Pizza’s  website  where  they  will  download  the  coupon.  Here,  Domino’s  can  raise  
awareness of its other  offerings.  Secondly,  it’s  rare  that  someone  would  purchase  just  
breadsticks.  It’s  usually  a  side  dish  for  a  full meal. Thus, the hope would be that the coupon gets
users in the door for carryout purchases of additional products – a large pizza, wings, a drink,
dessert,  etc.  It  could  potentially  be  an  effective  move  that  allows  Domino’s  to  grow  its  carryout  
sales. The tactic could be measured by both coupon redemption as well as traffic sources in
Google Analytics from those arriving at the website from Groupon. Sales in the Columbus, Ohio
region should also be tracked during the length of the campaign.
Conclusions
Domino’s Pizza is one of the top pizza retailers in both domestic and international markets.
With an updated, tasty new pizza recipe, a quick and efficient delivery model, and a proactive
business strategy focused on innovative technology, the Michigan-based company has
developed a strong positioning since its inception in 1960. There is still room for growth,
however.  By  testing  a  number  of  direct  marketing  campaigns  and  online  tactics,  Domino’s  Pizza
can have a better handle on its 18-24 year old customers as well as its audience of households
with families. By reaching these markets through direct marketing, it can promote its various
menu items and boost takeout sales, potentially stealing market share away from leader Pizza
Hut and independent retailers.
- 19 -
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Direct Marketing Campaign for Domino's Pizza

  • 1. - 1 - IMC 616 Direct Marketing Prof. Marold 12/21/13 Assignment: Week #9 (Final Paper) Domino’s Pizza Case Study
  • 2. - 2 - Introduction Falling in the highly competitive and highly lucrative quick service restaurant (QSR) industry, pizza places are able to tap a wide range of audiences  as  more  than  95%  of  the  United  States’   population claim to eat this popular meal (Sauber, Marold, Anderson, 2011).  Domino’s  Pizza has worked hard in recent years to steal market share away from its competitors while also strengthening its position and raising awareness of new recipes and offerings to its target audience. With solid footing on the delivery business, it has much room for growth on the carryout side. With a $150,000 budget, a number of tests will be put into place to determine the best direct/interactive tactics to be used to grow its business and boost carryout sales. Overview Domino’s  Pizza  is  the  third  largest  pizza chain the U.S. Trailing behind Pizza Hut and ahead of Papa  John’s  and  Little  Caesars,  the  pizza  industry  is  quite  segmented.  If  fact,  small  independent   retailers  make  up  more  than  half  of  total  market  share,  meaning  the  “Big  4”  are  all  fighting  for   less than 50%. But at $33.5 billion, even small increases in market share translate to large profits (Sauber, Marold, Anderson, 2011). Domino’s  was  founded  in  1960  by  two  brothers  in  Ypsilanti,  Michigan  who  borrowed  money  to   open their first location. Tom Monaghan eventually came to manage the business and focused on a small menu with an emphasis on delivery. The company grew and expanded over the next 50 years, opening up corporate owned locations as well as locations through franchisees
  • 3. - 3 - (Sauber, Marold, Anderson, 2011). Today, there are more than 9,000 stores around the world, with more than 4,000 of them located abroad (Campos, 2013, pg. 1). One of the most significant criticisms of  Domino’s  over the years from consumers was the poor quality in taste of its  pizza.  Instead  of  trying  to  avoid  the  issue,  Domino’s  attacked  it  head  on.    In   2010,  Domino’s  underwent  a  transformation  with  a  campaign  dubbed  Pizza  Turnaround.  In  a   very public way, it researched, taste-tested and strategically crafted a better and fresher pizza. (Fera, 2013). The new pizza was also accompanied by a re-branding, one focused on quality food, a better menu and more transparency, evident in their ultra-active social channels. According to Adrian Campos of Motley Fool, the result of the campaign was significant. Domino’s  posted  a  14.5%  increase  in  revenue  in  2010  alone  and  stock  rose  400%  in  the  three   years following the campaign. Between 2000 and 2013, the customer satisfaction index score increased from 69% to 81% (Campos, 2013). Domino’s  is  a  leader  in  delivery  orders  but  sees  room  to  expand  with its takeout business. With an expansive menu, it has displayed mobile and Internet innovation. Based on these perks, Domino’s  Pizza  believes  it  is  well-equipped to grow the carryout side of its business. With $150,000, a number of direct/interactive marketing tactics will be tested over the course of three months in the Columbus, Ohio area to try and reach two district audiences and raise levels of carryout sales among these groups. If the test is successful, these initiatives will be carried out nationwide.
  • 4. - 4 - Direct/Interactive Tests for 18-24 Year Olds The 18-24 year old audience is highly coveted among many brands. This is the group that is fresh out of high school, either attending college or working their first full time jobs. Most are unmarried and are getting settled into their first apartments, dorm rooms, or are still living with mom and dad while they job search. They do not have much money but tend to be less likely to save than other demographics (The Social Dynamics, 2009). They have a tendency to be early adopters and opinion leaders, curating the new trends of today, especially as it relates to technology, fashion and entertainment. They are generally hard to reach because of their skepticism against traditional advertising (The Social Dynamics, 2009). Pizza is a favorite meal of Americans and is eaten by 95% of the population. More importantly, 21% of people ages 18-24 purchase pizza more than three times a month, compared to only 7% of those over age 65 (Sauber, Marold, Anderson, 2011). This makes for a potentially lucrative market  for  Domino’s  Pizza. Based on the fact that this group enjoys late night food and are not always worried about healthy eating choices, this could  be  a  profitable  area  for  Domino’s  to   focus. Three tests will be developed to reach this audience including postal inserts, mobile marketing and in-stream audio ads. Postal Inserts According to the U.S. Census Bureau, there are 19.9 million college students in America, making up nearly 7% of the population aged 3-years-old and up (US College Student Demographics in 2012, 2013). Since many of the 18-24 year-old audience is enrolled in college, it would be
  • 5. - 5 - worthwhile to do a direct mail test specific to this audience. College students, especially those living on-campus, enjoy late night orders when studying or partying. To try and encourage take- out orders from this population, postal inserts will be sent to college dorm mailboxes in the Columbus, Ohio region. Students at Ohio State University, Columbus State Community College, Fortis College, DeVry University, Ohio Business College, and  Bexley’s  Capital  University  (selected at random) will be targeted. Postal inserts will be sent to all student mailboxes that live in dorm rooms. The inserts will boast the menu items that  Domino’s  has  to  offer  as  well  as  include  a   coupon for a free 2-liter soft drink with any carryout order. The number of coupon scans will be recorded to determine the number of students who took advantage of the offer and measure the overall test. The total cost would be $30,000, not including the product giveaway. Mobile Coupons According to Nielsen, the 18-24 year old audience is the most active when it comes to using smart phones (Does college play a role in media consumption, 2012). Mobile marketing, therefore, is a great channel for  Domino’s  to  present  offers  to  this  audience.  Domino’s already has been placing heavy emphasis  on  mobile.  “With  35  percent  of  its  $2  billion  in  global  digital   sales coming from mobile and more than 6 million downloads of its mobile application, Domino’s  offers  convenient  ways  for  consumers  to  order  via  mobile” (Borison, 2013).  So  it’s   fitting to try and tap the active 18-24 year-old audience through these means. Domino’s  will   develop a promotional code that can be entered when a mobile user places a carryout order from  the  Domino’s  app or mobile site. The #CarryoutColumbus code will offer a free order of breadstick to anyone using the code for a carryout order. “Keeping  information  in,  and  
  • 6. - 6 - executing  mobile  couponing  communications  from  ‘the  cloud’  can  help  break  through  these   limitations and broaden interaction options through multiple channels”  (Chavie,  2011,  pg.  1).   The users will obtain the code from mobile ads that will appear on popular gaming apps like Subway Surfer, Angry Birds, Fruit Ninja, Yahtzee Addict and Spider Solitaire. 18-24-year-olds will be targeted through filters within the advertising models of the gaming platforms. This test will cost $20,000 of the total budget. In-Stream Audio Ads Music streaming is widely popular among the younger demographic. Sites like Pandora, Spotify, TuneIn and Songza boast streaming from both desktop and mobile apps for unlimited hours. Paid versions are ad free but free versions allow advertisers to place short ads (15-30 seconds) in between every five songs or so. According to eMarketer, age groups 16-20 and 21-24 are the heaviest users when it comes to music streaming (With streaming and sharing, 2012). Domino’s   can take advantage with short direct marketing ads during song breaks on these streaming sites. By creating a unique, easily remembered domain name like carryoutcolumbus.com, Domino’s can direct users to a mini-site which talks more about its new pizza recipe, its wide offering, and the ability to get a free 2-liter drink with carryout orders placed through the site. The mini-site is needed since in-app audio ads are very short and many users are listening while participating in other activities and cannot always act immediately with a click. The unique and memorable domain name is a call to action that can provide more info at a later time and can easily be measured through Google analytics. Both visits and e-commerce transactions from the
  • 7. - 7 - mini-site will be measured. The test will be aimed at users who are 18-24 and live in the Columbus, Ohio area, reached through users’ profile information. This is a great avenue for Domino’s  to  tap  the  young  audience  members.  “You  have  a  prospect’s  complete  attention  for   15 or 30 seconds – clutter free! Combined with great targeting abilities, in-stream audio advertising not only offers clutter-free ad space, but you can also ensure that you are reaching your  exact  audience  and  won’t  have  wasted  impressions”  (Lechtenberg,  2013,  pg.  1).  The budget for this test, including the ads and the development of the mini-site, is $25,000. Direct/Interactive Tests for Households with Children Besides those in their late teens and early 20s, another critically important audience for Domino’s  Pizza  is households with children. According to Sauber, Marold and Anderson, 20% of this audience purchases pizza more than three times per month (2011). Domino’s  Pizza  has   plenty of offerings for an entire family. Buyers can easily purchase pizza, breadsticks, pasta and a drink to feed a family of four at an affordable cost. According to Nielsen Claritas, households made up of families make up about 35% of the total U.S. population. This is primarily made up of  the  “Winner’s  Circle”  segment.  Nielsen describes these folks as 35- to 54-year-old wealthy middle aged adults with kids. They shop at Ann Taylor, visit theme parks and watch American Idol. They are mostly white and live in the suburbs (2013 PRIZM Segmentation System, 2013). This is a lucrative audience for Domino’s  Pizza  to  tap  and  grow  its  takeout business. Three tests will be created to improve penetration among this group including direct mail, email marketing and paid search.
  • 8. - 8 - Direct Mail Although the most costly of all the efforts, direct mail can be a tremendous opportunity for Domino’s  Pizza to capture the attention of the target audience. By sending mailers with coupons to households with children, parents can take advance of the deals and purchase Domino’s  Pizza  on  a  more  regular  basis.  “The Direct Marketing Association (DMA) has found that direct mail boasts a 4.4% [open] rate, compared to email's average response rate of 0.12%...Depending on how one crunches the numbers, direct mail has a response rate of up to 10 to 30 times that of email — and even higher when compared to online display” (Schiff, 2012, pg. 1). The creative will focus on a family dinner and feature specials, like a large pizza and 20 wings for $14.99, for those who redeem the coupon during their carryout order. The coupons will be scanned at the register to help measure the success of the campaign and identify the amount  of  conversions  from  the  test.  “While  the  USPS  has  financial  struggles, its service remains popular and cost-effective.  We’re  seeing  an  inverse  law  of  marketing  physics  – as our email inboxes fill up, our  regular  mailboxes  are  becoming  less  crowded”  (Boyarsky,  2012,  pg.  1).   Only households in the greater Columbus, Ohio region will be targeted. Between the creative, printing and distribution costs, the total spend for this test would be $40,000. Email Marketing Email  is  the  next  effort  that  will  be  tested.  It’s  less  intrusive  than  direct  mail  and  telemarketing   and also much less expensive. In fact, from a return on investment (ROI) standpoint,  it’s  the   most rewarding direct marketing tactic at $28.50, compared to $7 for direct mail (Schiff, 2012). It’s  also  one  of  the  most  prolific  forms  of  communication  today.  Domino’s  Pizza  can  create  a  
  • 9. - 9 - custom HTML designed email with appetizing creative and a simple message that encourages families to purchase foods offered at the pizza chain. It will also feature a printable coupon (housed on the mini-site domain) for users to download and redeem in store when they carryout.  Metrics  in  the  email  software’s  backend  will  help  to  understand the success of the campaign. Opens, clicks, spam reports, forwards, and coupon downloads will all be measured. “Specifically, for the adult with children audience, email is a great medium for communication. 77% of consumers stated that email was their preferred way to receive promotional messages. For adults over the age of 35, email was preferred by roughly 80% over direct mail, text messages,  Facebook,  Twitter,  mobile  apps,  LinkedIn  or  telephone  solicitations”  (Pluth,  2012,  pg.   1). This translates to an ideal platform to reach the parent audience. Three emails over the three month period will be distributed to head of household members in the Columbus, Ohio region. The total budget for this effort would be $10,000. Pay Per Click Pay-per-click advertising through Google Adwords is a great opportunity to tap audience members using popular, relevant search terms that are used when exploring on the web. Direct marketing efforts through paid search will be able to intercept those looking for a pizza place online  in  the  Columbus,  Ohio  region.  Search  terms  like  “pizza  places,”  “pizza  near  me,”  “pizza   shops,”  or  “best  pizza around”  will  only  be  a  few  of  the  keywords  being  bid  upon.  According to a  report  from  DM  News:  “56%  of  search  engine  traffic  revenue  can  be  attributed  to  clicks  on   organic links, compared to 44% that can be attributed to clicks on paid search links. However, paid search did pull ahead in terms of conversion rate and order size. The report cites that paid
  • 10. - 10 - search  generated  a  35%  higher  average  conversion  rate  than  that  of  organic  search”  (Jarnot,   2013, pg. 1). There will be a combination of both search and display advertising. The former are text based ads that appear  on  search  engine  results  pages.  Ads  like  “Order  Pizza  Now” would direct users to the mini-site where consumers can learn more about the special deals that Domino’s  Pizza  has  to  offer.  Similarly,  display  ads  are  image  based  ads  found  on  relevant   websites in the Google Display Network. Display ads typically have lower conversion rates but are cheaper, which translate to more clicks and impressions. The display image ads would boast creative around a family meal and again link to the Domino’s  Pizza  mini-site where visitors would see special offerings. The mini-site would be mobile optimized since many visitors coming from paid search ads are using mobile devices. Only users within the Columbus, Ohio area would be targeted. One of the key advantages of AdWords is the ability to track. Impressions, clicks, bid levels, costs, and conversions can all be measured to determine the ROI and value of the campaign. The total cost attributed to the pay-per-click campaign test through AdWords over the three month period would be $25,000. This brings the total amount for all tests to a budget of $150,000. Type of Data Collected from Online Customers Tailoring targeted messages to customers and prospects is a tremendously effective approach to marketing. Armed with rich customer data, businesses can speak directly to each customer rather than mass audiences with generic messages. For  Domino’s  Pizza,  this  means  developing   specific messages for each of its target audiences including 18-24-year olds and families. This data includes both contact information for actual communication execution as well as
  • 11. - 11 - geographical and psychographic information to craft the message and design the creative. Data can include: name, address, phone number, city, state, zipcode, household size, household income, ethnicity, frequency of pizza purchases and favorite pizza topping. “Never   underestimate the power of your business's database or customer relationship management (CRM) system. These tools hold valuable information that will help you understand your customers, better meet their needs, improve your service performance, and expand to other, underserved  customer  segments”  (Stark,  Stewart,  2013,  pg.  1).  By collecting, categorizing and interpreting  this  customer  data,  Domino’s  Pizza can capitalize in a number of ways to develop better products and execute more strategic marketing efforts to eventually grow sales. Obtaining Product-Related Feedback Like  any  B2C  company,  Domino’s  Pizza  is  constantly  exploring ideas as it relates to product development. For example,  this  past  week,  Domino’s offered its first-ever vegan pizza in its Israeli market (Chasmar,  2013,  pg.  1).  By  utilizing  customer  data,  Domino’s  Pizza  can  make  more   sound decisions regarding potential new products. “Once  you  know which products are the most popular, you can promote them more to increase sales. You can place those products on your  shop’s  homepage  and  also  feature  their  image  on  advertisements…Removing unpopular products allows you to focus your time and money on products that will get you a better ROI and  increase  sales”  (Carillo,  2013,  pg.  1).  Should  Domino’s offer breakfast items? Are more topping choices needed? Should there be healthier options? These are the type of questions that customer data could assist in answering to ensure higher likelihood of success if/when added to the menu.
  • 12. - 12 - Identifying Most Popular Time/Day for Purchases Every quick service restaurant has its peak hours. Dunkin Donuts thrives in the morning, for example, while Taco Ball leaves its  locations  open  late  at  night  to  cater  to  its  “fourthmeal”   audience.  It’s  important  for  Domino’s  Pizza  to  collect  customer  data  to  better  understand  when   it’s  most  popular  days  and  times  are  for  purchases.  If  Saturday  nights  are  the  successful among 18-24 year-olds,  then  Domino’s  will  want  to  send  out  its  postal  inserts  on  Friday  to  arrive  mid- day  on  Saturday  to  wet  the  college  students’  appetites.  If  6  p.m.  on  Friday  nights  is the biggest hit among families, perhaps sending the e-newsletter to parents on Thursday afternoons could draw the most successful open rates and conversions. Testing should be done in all circumstances, but the customer data could provide direction for developing messaging and determining when to execute marketing efforts. Understanding Top Traffic Sources Google Analytics is a great resource for collecting behavior on websites. With the software, Domino’s  Pizza can track number of visits, time on site, which product pages receive the most attention, the number of coupon downloads, number of online sales, and more. One of the most powerful features in Google Analytics is the ability to view traffic sources. “Traffic   sources…reveal great sites to implement or boost advertising. This can also lead you to sites where your online shop or products have been mentioned or even reviewed. One final advantage of analyzing traffic sources is that it can also tell you if any marketing campaigns already  in  place  are  effective”  (Carrillo,  2013,  pg.  1).  This  customer  data  would  help  Domino’s  
  • 13. - 13 - Pizza understand what marketing channels led to the most web visits. How are traffic numbers as it relates to the e-newsletter? How many visitors came from in-stream audio ads? Did PPC ads draw in a lot of potential customers? Traffic source data from Google Analytics helps to measure the success of other online and offline campaigns and help dictate where future efforts should be placed. Obtaining Emails and Addresses for Direct Marketing Efforts Much of the marketing tests incorporated within rely heavily on accurate contact information of current and potential customers. Having up-to-date email and home/college addresses is critical to ensuring that email and direct mail are delivered successfully to audience members. This type of customer data is vital to marketing success. Furthermore, individuals should be segmented based on demographics, geographical and psychographic information. By doing so, tailored  messages  can  be  used  in  direct  and  email  marketing.  “Put  simply,  list  segmentation   targets your communications and increases the relevancy of your messages—resulting in higher open and click-through rates, enhanced customer loyalty, and increased sales. In email marketing, the more relevant your campaign is, the better the response and the greater the conversions”  (Christian,  2011,  pg.  1). Recommendations System One  of  Amazon’s  most  powerful  features  is  its  recommendations  system.  Common  across  the   web today, recommendations systems help offer users additional products that they might not know the company offers, or might not realize they want (yet).  It’s  a  great  way  for  brands  to  
  • 14. - 14 - cross sell. By using customer data, Domino’s  Pizza  could  offer  additional  products  along  with   purchases.  You’ve  placed  a  large  pizza  and  wings  in  your  shopping  cart?  Perhaps  you  might like a pasta meal or an antipasto to go with it? Understanding customer buying trends and what products  best  pair  with  other  products  can  help  Domino’s  Pizza  cater  to  its  customers  and   maximize  sales.  It’s  a  better  shopping  experience  for  the  customer at the same time. Obtaining Rich Customer Data from Carryout Buyers Customer  data  can  serve  a  variety  of  needs  for  Domino’s  Pizza,  from  product  development  to   more targeted contact info for direct marketing efforts. Obtaining this information can be a challenge and should be considered on a number of fronts so as to maximize efforts and generate more thorough data from customers in-store, online, and on social media platforms. “Figure  out  what  data  you  already  have  and  what  you’d  like  to  have.  That  covers  all  of  your   software-as-a-service applications (including CRM programs such as Salesforce.com), Excel spreadsheets, partner information, sales receipts, and any other devices that collect information”  (Belicove,  2013). Three specific ways that Domino’s  Pizza can obtain customer data from carryout buyers include phone, website and through mobile orders. Phone A large portion of carryout buyers order pizza and meals by phone. A system should be put in place (tie phone to CRM software on computer) where phone numbers are recorded along with the specific order placed. The data can then be stored for future communication. For example, the system can be integrated with the web. If a past customer enters his/her phone number,
  • 15. - 15 - special products can be pitched based on past purchases. Perhaps the customer prefers breadsticks or a 2-liter  Coke  with  every  order.  Domino’s  website  can  offer  recommended items based on this buying history. All phone numbers should be recorded and put to use in outbound  marketing  efforts.  It’s  an  effort  that  is non-intrusive too, since customers call the location to place orders, essentially handing over their data at will. Internet According  to  Stephanie  Miller  of  ClickZ:  “Any action taken should be captured if it's possible to capture. This includes data from kiosks, call centers, and mobile apps, as well as web data. Consider: purchases, product views, shopping basket additions, video views, downloads, help requests, registrations, comments, forwarding a link, reading/writing a review, searching, and more”  (2013,  pg.  1).  Online surveys and social media feedback are two great ways to collect customer data online. Although time consuming from a number crunching perspective, these real-time, real-life answers are provided at little to no cost and feature authentic responses from engaged customers. Responses online through these channels can help Domino’s  Pizza   better understand the major wins and pitfalls of its products and service. As it relates specifically  to  carryout,  Domino’s  Pizza  can  propose  questions  on  its  social  platforms and await the reactions from fans who are providing free market research. Additionally, other types of data should also be tracked and captured. This includes data from: online purchases, contact us forms, and Google Analytics including contact information, feedback, searched keyword or traffic sources, and more.
  • 16. - 16 - Mobile Finally,  mobile  data  through  Domino’s  Pizza’s  mobile  application  can  be used to capture comprehensive data. Right  now,  as  a  user  proceeds  to  complete  a  transaction  via  Domino’s   app, he/she must enable location and complete account information to place an order. This information can be logged to track geographic data, contact information and preferences, as it relates  to  Domino’s  offering.  By  joining  this  data  with  information  from  phone  and web, Domino’s  Pizza  can  piece  together a thorough data set to assist with efforts. Knowing what products customers prefer, which customers are loyal and repeat buyers, which geographic areas  tend  to  eat  the  most  food  from  Domino’s  Pizza,  and  what  times  of  day  are  most  popular   for carryout orders are only a few predictive conclusions that can be drawn from the results. Mobile is a growing trend and it is promising that more orders will continue to be placed via mobile website  and  mobile  app.  By  capturing  this  data,  Domino’s  can  encourage  large  purchase   packages and curate better mobile marketing efforts to past customers. Groupon Test Groupon is a collective buying site that allows businesses to give away great discounts or deals once  a  minimum  ceiling  of  participants  is  reached.  It’s  a  locally-focused tactic. Many small businesses have seen successes as a means to get new prospects in the door with the opportunity  to  sell  them  additional  goods.  For  instance,  if  Joe’s  ‘Cup of Joe’ Coffee Shop offered a $0.25 cup of coffee to the first 100 people who purchase the deal, the hope would be that those people who come in and buy a donut or muffin to go with the it. “By  offering  incredible  
  • 17. - 17 - discounts that are greater than half-off the original price, these sites offer the potential to generate hundreds to tens of thousands of sales from new  customers  within  a  single  day”   (Hunt, 2011, pg. 1). Businesses do not make money from the deal itself (since they are very steep discounts) but rather from the additional purchases on-site. Groupon’s  group  buying  model  is  a  risky  business.  Many  experts  believe  you  only  attract   “bargain  shoppers”  and  “coupon  junkies”  rather than building long-lasting loyal customers. “With  Groupon  taking  a  50%  cut  of  each  voucher…the total expense of attaining those sales from  a  merchant’s  standpoint  can  be  very  overwhelming.  Depending  on  the  cost  of  the   voucher, it may not be a cost effective  to  use  group  buying  sites  like  Groupon  to  generate  sales”   (Hunt, 2011, pg. 1). Thus,  it  might  be  more  effective  to  utilize  one  of  Groupon’s  new  features  – a digital coupon offering. Although the deals are generally less attractive than the group buying to consumers,  it’s  more  beneficial  to  the  seller.  There’s  no  minimum  ceiling.  And  there  are   higher profit margins. “The online coupon market is worth about $4 billion a year and when in- store coupons are included, the total addressable market increases to $28  billion…Groupon's   Freebies business lists digital coupons that can be claimed for free. After clicking on the coupons, shoppers are directed to the website of the brand or retailer and the discount is automatically applied when they complete the purchase”  (Barr,  2013,  pg.  1). Domino’s  Pizza  should  utilize  these  new  digital  coupons  for  testing  in  the  Columbus,  Ohio  area.   There should be coupons that are offered for free breadsticks to those in the Columbus, Ohio area.  The  offering  wouldn’t  be  a  dramatic hit for the company since breadsticks are one of its
  • 18. - 18 - most inexpensive items. The advantage is two-fold. The first, the user is directed from Groupon to  Domino’s  Pizza’s  website  where  they  will  download  the  coupon.  Here,  Domino’s  can  raise   awareness of its other  offerings.  Secondly,  it’s  rare  that  someone  would  purchase  just   breadsticks.  It’s  usually  a  side  dish  for  a  full meal. Thus, the hope would be that the coupon gets users in the door for carryout purchases of additional products – a large pizza, wings, a drink, dessert,  etc.  It  could  potentially  be  an  effective  move  that  allows  Domino’s  to  grow  its  carryout   sales. The tactic could be measured by both coupon redemption as well as traffic sources in Google Analytics from those arriving at the website from Groupon. Sales in the Columbus, Ohio region should also be tracked during the length of the campaign. Conclusions Domino’s Pizza is one of the top pizza retailers in both domestic and international markets. With an updated, tasty new pizza recipe, a quick and efficient delivery model, and a proactive business strategy focused on innovative technology, the Michigan-based company has developed a strong positioning since its inception in 1960. There is still room for growth, however.  By  testing  a  number  of  direct  marketing  campaigns  and  online  tactics,  Domino’s  Pizza can have a better handle on its 18-24 year old customers as well as its audience of households with families. By reaching these markets through direct marketing, it can promote its various menu items and boost takeout sales, potentially stealing market share away from leader Pizza Hut and independent retailers.
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