Wednesday, May 5, 2010

It worked!

Congratulations to the Domino's team for delivering a jaw-dropping 14.3% same store sales gain in Q1. Advertising Age today reported the big news.

Back in early January, I wrote about Domino's gutsy decision to reformulate the product in my post, Marketing with a capital "M." The Pizza turnaround worked. Make the product better and apparently more people will buy it.


Ad spending was up 9% for the period but that alone would not account for the increase (Papa John's sales were flat for the same period). Social media played a role here. When I wrote in January, 170,000 people had seen the four-and-a-half minute Domino's YouTube video. As of today, the number is up to 640,000. That kind of momentum can only be sustained with sincere consumer interest and active social sharing. Domino's made real news by being honest about their situation. This campaign was not spin and people responded.

This is a potent reminder that real marketing is more than ads and promotion. Product (and the product usage experience) comes first in a transparent, socially connected marketplace. Way to go Domino's!

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