First Place Gold ECHO Competition 2014 - Domino's

Collegiate ECHO

Dominos Direct Marketing Campaign From Your Phone To Your Door

Alisha Frederick

Amy Hashem

Scott Levine

Xinyuan Wu

I

Executive Summary The Dominos From Your Phone To Your Door campaign is a customer-focused plan

that is projected to run for one calendar year. Extensive primary and secondary research

were used to analyze Dominos target audience (males and females 18-49), and has

revealed that males and females between the ages of 25-34(users and buyers) were more

likely to own smartphones and utilize the internet capabilities. Leveraging the

IdeaMap tool, this niche audience was further analyzed to determine three segments

based on their purchasing habits, demographics, psychographics, and mobile usage.

These segments include: Mobile Savvy Social Connectors, Pizza Loving Young Families,

and Deal Seeker Influentials. All three groups have shown high affinity to offers and

marketing messages that involved a free gift with continuous use of the mobile app. The

constants remain - meals, desserts, and visa gift cards!

Therefore, a fully integrated marketing plan has been devised to use all aforementioned

findings to both drive traffic and encourage sustained usage of the mobile app. The

campaign will follow a synchronized strategy beginning with PR, In-Store Display, email

campaign, banner advertising, direct marketing campaign, and pizza box toppers by

utilizing Dominos existing database. Customers will be persuaded to download the

mobile app and make a purchase to receive a free dessert.

Anticipated results of the campaign with marketing investment of $250,000 (see plan

and appendix for details):

Campaign Results Year 1

Target Market 810,000

Response Rate 7%

# of Orders per

respondent

7

Sales 396,900

Marketing Contribution $1,103,429

Marketing Expense $250,000

Return on Investment 441%

II

Strategic Summary

St rategic findings from research Da ta Source A pplication to Strategy

1 2 5-34 year olds 7 4% more likely to own a smartphone; 98% download apps

Simmons, ComScore, Qualtrics Research

Cor e Target Audience

2 Receive a free item with purchase via the mobile a pp ranked high among segments

Idea Map Research Results

Offer one free dessert with 1st order through the mobile app

3 High affinity gaming apps Idea Map Research Results

Mobile banner ads placed within game apps for click to download the app

4 Pr eference to learn about updates, new products, etc. via social media


In stagram and Facebook promotions to inform the customer a n d encourage interaction

5 A ll segments indicated motivation to earn points towards rewards through app download and u sage


Offer 10th order via the mobile app free (up to $30) a n d

Offer a $25 Visa gift card with 1 ,000 points earned from or dering via mobile app

6 Th e average customer buys pizza 21 times a year a n d Dominos makes up 6 to 7 of those occasions

Loy alty360 Article Estimate respondents will purchase 7 orders from Dominos w ithin the campaign year

7 Sy nchronized integrated and interactive strategy for higher response rate

Er nan Roman In tegrated and In teractive Marketing Strategy

Ba sis of core strategy (See Media Plan)

III

Table of Contents Executive Summary..............................................................................................................I

Strategic Summary................................................................... ......................................................... II Table of Contents ............................................................................................................. III Market Research ................................................................................................................ 1 Background...................................................................................................... ........ 1 Industry Overview ...................................... ............................................................. 1 Digital Conversion ................................................................................................... 1 Message frequency .................................................................................................. 1 Current Media platforms ........................................................................................ 2 Competition ............................................................................................................ 2 Research & Methodology .................................................................................................. 2 Campaign Target Market ........................................................................................ 2 Secondary research ................................................................................................. 3 Simmons ........................................................................................... 4

ComScore........................................................................................... 4 Loyalty Programs Impact ........................................................... 4 Primary Research Findings .................................................................................... 4 Qualtrics .................................................................................................................. 4

IdeaMap ............................................................................................................... 5 Strategy .............................................................................................................................. 6 Unique Selling Proposition ..................................................................................... 6 Integrated and Interactive Marketing Strategy ...................................................... 7 Target Lists selection ............................................................................................... 7

List Breakdown .................................................................. ...................................... 7 Test Marketing ........................................................................................................ 8 The Offer and Marketing Messages ........................................................................ 8 Creative Overview ....................................................................................................9 Media Strategy ....................................................................................................................9 Appendix...11

1

Market Research

Background

Originally an independent pizza restaurant, Dominos Pizza was founded in 1960. The

company has grown to have a combined network of 10,000 company -owned and

franchise-owned stores that mainly cater to individuals between the ages of 18-49.

Today, Dominos Pizza has been recognized as the world leader for prompt and reliable

pizza delivery services.1

Industry Overview

The landscape of the pizza retail industry is experiencing notable changes due to the rise

of independent retailers, as well as, advances in technology. Thus, Dominos faces

challenges associated with adequately adapting to increasing Internet and

mobile/smart-device usage.2 The competitive nature of the industry requires strategic

actions to maintain and enhance brand health by utilizing digital channels.

Digital Conversion

Technology has altered communication habits, as well as consumers purchasing behaviors. We are now in the age of the consumer; just as the needs of consumers are changing, so is the landscape of the industry.3 The Internet is much more cost efficient when displaying a wide range of products for sale and interacting with target audiences. Studies have shown that 80% of smartphone owners do not leave home without their phone.4 Therefore, it is important to harness digital distribution channels and mobile platforms to reach Dominos target audience. The official website, social media platforms, and mobile application are exceptional tools for conveying new promotional offers and marketing messages. Online and mobile ordering currently account for 35% Domino's domestic sales. Mobile orders provide 10% of that 35% total, but are growing more rapidly.5

Message Frequency

Dominos utilizes several traditional and social platforms to communicate with its

audience including: Dominos official website, Twitter, Facebook, Instagram, TV, email,

web banners, radio, and box-topper coupons. New menu items, events, promotions, and

other messages are delivered through the aforementioned channels.

Current Media Platforms

Dominos Facebook, Twitter, Instagram, and mobile app have a fairly strong following:

1 http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary /About+Dominos/History /#2010

2 http://www.euromonitor.com/internet-retailing-in-the-us/report

3 Bobowoski, Kev in. March 14th, 2014. The Ev er-Ev olv ing Social Media Marketing Landscape. http://www.of f erpop.com/resources/blog/ever-evolving-

social-media-marketing-landscape/ 4 http://serv ices.google.com/fh/files/blogs/our_mobile_planet_us_en.pdf

5http://l oyalty360.or g/resources/article/cfo-domi nos-digital-channels-enhance-brand-l oyalty#sthash.wM46v 3XU.dpuf

2

Platform Followers/Friends/Downloads

Facebook 928,3823

Instagram 16,000

Twitter 538,000

Mobile App(Android & iPhone) 13,932

Competition

The pizza (delivery) industry is one of the largest fast food markets in the world.

Although independent pizza retailers hold more market share than major pizza chains,

the highly competitive market experiences intense competition among the top three

pizza chain players: Dominos, Pizza Hut, and Papa Johns. These three continuously

compete for the majority of the pizza sold in the United States.6

(Refer to Competition Tables and SWOT analysis in Appendix)

Research & Methodology

Campaign Target Market

Dominos Pizza currently targets consumers between the ages of 18 and 49 with a focus slightly skewed toward females. However, based on secondary and primary research the

target selection for this particular campaign consists of males and females 25-34.

Secondary research has identified this group as heavy mobile users who are 74% more

likely than the general population to own a smartphone, and 63% more likely to have

Internet capabilities on said smart-devices.7 Primary research via Qualtrics and

IdeaMap has further confirmed this segment as the optimal selection. The trends in

the target audience are showing heavy online and mobile social media usage. Marketing

to this younger, tech savvy generation requires a high-involvement approach; consumer

involvement and engagement is necessary to capture market share. This group likes to

share content across platforms and is constantly connected. Dominos can benefit by applying marketing strategies that encourage interaction and engagement to enhance

the customer experience.

Secondary Research

Simmons

The original theory was that the target would be parents of children, since they tend to

have less time and are more likely to be in a rush to get dinner on the table for the family

6 Hynum, Nick. (December 2013). The 2014 Pizza Power Report. Pizza Magazine. http://www.pmq.com/December-2013/Pizza-Pow er-The-2014-Pizza-Power-Report/ 7 http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/

3

after work. Experian Simmons was used to test this theory. The groups tested were:

Female Mothers 18-49, Female and Head of Household, male fathers 18-49, Male of

Head Of Household, have one to six child(ren). Four main categories were tested:

dieting, if they use fast food and where they go for fast food, what they are doing at the

times of day they would be ordering dinner, and phone capabilities (unfortunately

Simmons has results from 2011 and apps were not popular then. Therefore, points

related to apps were not factored into the database).

There seemed to be little correlation with dieting. Fast food was popular among

all groups. Even if they were parents, many still seemed to eat fast food more with other

adults than their children. This led us to believe that perhaps parents were not

necessarily the correct target since the Dominos order is often for the family, but isnt

necessarily for the family. We also learned that it is most common for Dominos to be

eaten 1-5 times a month and 24.7% of people who eat Dominos at least once a month

are female mothers and 36.6% of them are male head of households.

Research showed that it was very common for members of these groups tend to

be in their apartment/house during the hours when dinner would be ordered; in the car

and at work followed closely behind. As of 2011 30%-45% of the members of these

groups had email on their phone. 28.7% to 41.6% of the members had web browsing on

their phones.

ComScore

ComScore research findings indicated that the largest group was 25-34; skewed slightly

female. In addition, the ComScore findings show the presence of two groups: Young

Families (married with children or likely to have children) and Single students. This

data further solidifies the results of the aforementioned Simmons data. Although,

Hispanics overindex for smartphone usage, Caucasians make up the majority of

Dominos target audience.8

(see ComScore data in Appendix)

Loyalty Programs Impact

Customer loyalty and retention in the pizza industry is notably low. Dominos CFO, Michael Lawton recently mentioned at a conference:

The average customer buys pizza 21 times a year, and Domino's makes up six to seven

of those occasions. Even the company's most loyal customers don't choose Domino's

every single time.9

Hence, the need for digital emphasis is obvious. Furthermore, the utilization of a

loyalty program will allow Dominos to track consumer preferences while creating more

value for its customers. A strategically implemented loyalty program will allow for more

8 http://www.emarketer.com/Article/Hispanics-Overindex-Smartphone-Usage/1010651 9 http://loyalty360.org/resources/article/cfo-dominos-digital-channels-enhance-brand-

loy alty#sthash.wM46v3XU.dpuf

4

targeted promotions based on preferences and purchasing habits, which will lead to

increased consumer retention and loyalty.

The use of premium offerings will increase brand loyalty and customer lifetime

value. Premiums will encourage customers to not only purchase Dominos over their

competitors, but entice them to order solely through the mobile app each time to build

up to exclusive rewards. These premium offers will be an investment down the line, but

will be easily paid for by the lifetime value of each customer (see Media Strategy).

Primary Research Findings

Qualtrics

Data was collected via primary research from Qualtrics, based on 15 questions and 113

respondents. The findings are as follows:

98% respondents own and use a smartphone/tablet. Among those people, 98% of them

currently download apps; and among people who downloaded apps on their smart

electronic devices, 51% admit that they have downloaded some app(s) to order food.

Some of the apps mentioned are: Seamless, Yelp, and Dominos. The cost spent on

delivery meals averaged within the $15-$20 range. These consumers prefer to call in and

order rather than using online or the mobile app. The direct discount off of total order is

the most popular promotion welcomed by people who took the survey. The sample was

comprised of 51 male respondents and 53 female respondents, and the age range

concentrates on 25-34 years old. 63% respondents are white. When asked about

Dominos 46 people said that they have ordered from Dominos in the last year and 28

people typically order Dominos 1-5 times throughout the year, far more than normal

frequency. According to the primary research, the target market should not be

constrained by gender or occupation. Instead, the primary data simply suggests

strategically targeting young people who like order for the family or themselves.

IdeaMap

Created by Dr. Howard Moskowitz, IdeaMap is a great marketing research tool that scientifically tests the effectiveness of marketing messages on a sample of respondents. The tool has been used by small businesses and Fortune 500 companies, to test customer intelligence, new products, and marketing messages.

The power of IdeaMap also provides an Optimizer simulator, which identifies the best product construct for pre-defined consumer segments as well as for behavioral and attitudinal clusters which emerge as a result of the compiled survey responses. 1 0

Based on information gathered from primary and secondary research, a variety of offers and marketing messages were created and tested as elements in IdeaMap. The results allowed for more specific segmentation based on their preferences, demographics, and

10 http://www.mji-designlab.com/index.php?id=3

5

mobile usage. These well-defined niche targets are: Mobile Savvy Social Connectors, Pizza Loving Young Families, and Deal Seeker Influentials, and belong to the 25-24 age group. All three segments responded that they prefer to learn about updates, new products, and promotions via email and social media platforms, and spend about $15 (on average) when they order out for dinner. Respondents in all segments are 74% more likely to order food online and 77% own a smartphone.

In addition, IdeaMap served as a powerful scientific tool that gave insight about the most appealing marketing messages. All three segments showed a high affinity to receiving three (3) rewards: a free gift card through loyalty points, a complimentary dessert for downloading the mobile app, and an earned freebie meal for continued mobile app use. These findings will allow for more targeted and relevant messages to both potential and existing Dominos mobile app users, adding to the overall effectiveness of the From Your Phone to Your Door campaign. (Refer to Appendix IdeaMap)

Strategy

Unique Selling Proposition

6

This campaign will leverage Dominos Pizzas existing unique selling proposition of you

get fresh, hot pizza delivered to your door in 30 minutes or less and add the element of

ordering through the mobile app for exclusive rewards that include a free dessert with

your first purchase, your 10th order being free, as well as, a chance to rack up points for a

$25 Visa Gift Card to spend on anything. You get fresh, hot pizza from your phone to

your door delivered in 30 minutes of less. Its that simple. The goal is to encourage Dominos Pizza customers to not just download the mobile app

for one time use and forget about it, but to encourage them to be brand loyal to

Dominos Pizza with the mobile app as their platform of choice for exclusive deals and

rewards.

The free dessert helps Young Families by providing a 2-course meal at no extra

cost

The free 10th order encourages a loyalty program by providing an incentive to

those willing to be more brand loyal to Dominos Pizza the next time they think of

ordering out for a meal

The $25 Visa Gift Card with 1,000 points earned also encourages a loyalty

program resonating well with Deal Seeker Influentials. Dominos Pizza should

provide their very loyal customers with small gifts to show their generosity.

Integrated and Interactive Marketing Strategy

The primary objective of this campaign is to generate prospects not just into Dominos

Pizza customer, but Dominos Pizza customers through the mobile app. To achieve the

objectives of From Your Phone to Your Door, an integrated campaign focusing on the

3 target markets will be launched. The plan will feature effective media schedules to

encourage the continued use of the mobile app to order Dominos Pizza. Using the

Ernan Roman method of integrated direct marketing offers a clear path to new heights

of marketing effectiveness. He has defined the Rules of Engagement to circle the target

and deliver a truly consistent message through the use of PR, Banner Advertising,

Email, Direct Mail and Social Media. Romans methodology has yielded a gross

response rate of 7%. The strategy is to avoid the traditional marketing spray -and-pray

approach and truly convert customers to a mobile app and brand loyal audience.

Target Lists Selection

Using NextMark, lists that match the profiles of the three designated segments will be

rented. $100,000 is budgeted for those lists. The targets are Mobile Savvy Social

Connectors, Pizza Loving Young Families, and Deal Seeker Influential. Primary research

indicates that people aged at around 25-35 years old purchase pizza at least once a week

via mobile devices. Therefore target audiences and lists are to be chosen through

NextMark.

List Breakdown

7

Based on the target isolation, the first list is comprised of individuals who own

smartphones and who rely on their devices to remain connected at all times. Many of

these subscribers are not only smartphone owners, but have made their phone an

integral part of their lifestyle, using it for everything from checking their social network

pages to managing their finances.

List Name American Smartphone Owners

Total Universe 25,013,761

Universe Rate $100.00/M

Gender 42% Female 58% Male

Type Email, Postal

Average Household Income N/A

The second target list contains highly responsive consumer data for online, offline and

multi-channel marketing campaigns. This file consists of families expecting children and

those with children ages 0-3, with parents tending to be in their twenties.

List Name Young Families

Total Universe 716,622


Gender N/A

Type Email, Postal, Phone

Average Household Income N/A

The third list is comprised of deal seekers and involves Coupons, Deals & Discounts. These

tech savvy consumers use their smart phones to install apps for their favorite retailers use

their emails to be scanned at check out for the savings being offered.

List Name Coupons, Deals & Discounts

Total Universe 4,000,000


Gender 70% Female 30% Male

Type Postal, Phone

Average Household Income $45,000.00

Test Marketing

The market responses will then be tested by pulling out 5,000 randomly selected names

from the acquired lists to run tests for effectiveness of the creative offers. IdeaMap

8

provides an Optimizer simulator tool, which easily allows the best offer(s) to be

determined.

List Name Creative 1 Creative 1 Creative 1 Creative 2 Creative 2 Creative 2 Creative 3 Creative3 Creative 3

Offer 1 Offer 2 Offer 3 Offer 1 Offer 2 Offer 3 Offer 1 Offer 2 Offer 3

American

Sm artphone Owners

5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000

Young

Families 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000

Coupons, Deals

& Discounts 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000 5 000

The Offer and Marketing Messages

As derived earlier from the primary research, the three target segments - Mobile Savvy

Social Connectors, Pizza Loving Young Families, and Deal Seeker Influentials all

respond best to different marketing messages based on IdeaMap results. Displayed in

the Appendix are the top performing messages selected for all target segments based on

a compilation of all primary and secondary research. The numbers displayed for each

marketing message is read as an index, where the average is zero. Thus, for instance the

offer Get your 10th order via the mobile for free generated an index of 58, which means

that the target market is 58 times more likely than the average person to respond

positively to this message. A positive index means a higher propensity of a response for

that particular element in that segment. For a full list of IdeaMap marketing message

results, as well as a more in-depth breakdown of each specific segment, please consult

the Appendix.

Creative Overview

The creative tone of the campaign will not stray far from Dominos core imaging. Instead, Dominos strongly established brand name will be leveraged to create a fun and

unique direct mail piece that informs consumers about the mobile app. The social media

platforms shall remain similar to the existing aesthetic, but display Dominos products

in fun and unique pictures, rather than simply pictures of the pizza. The commercial

simply informs the audience of Dominos mobile app, while expressing the benefits of

use. Lastly, the email campaign will maintain the same characteristics that have worked

for Dominos in the past, but will provide the appropriate messaging for the new

campaign.

Media Strategy

The media mix will be allocated as follows: 39.2% In-store display, 20% Direct Mail,

19.9% Email, 18% Banner Advertising, 2% Public Relations and .9% Pizza Box Toppers.

9

In-Store Display

As noted directly from Dominos Pizza, the plan should be designed with their 4900

retail locations in mind. That being said printing double sided window decals to put on

all their store fronts should grab the attention of all their customers that visit the store

for carryout. The goal is to inform them that by ordering via the mobile app next time

will save them time and money. Messaging will include Order via the mobile app and

get your 10th order free!}, Order via the mobile app for your chance to earn points and

win awards such as a $25 Visa gift card. The store employees are a great form of in-

store advertising as well and should be educated on the customer benefits and rewards

for ordering via the mobile app. The window display should remain throughout the

entire year.

Direct Mail Campaign

Every quarter a campaign-centered postcard will be mailed to 67,500 people from the

mailing lists centered around the 3 target segments (22,500 to mobile savvy social

connectors; 22,500 to Young Families; 22,500 to Deal Seeker Influentials). The call to

action will be very clear to download the app and make your next purchase with the

mobile app for special offers and rewards. Based on the 7% response rate Dominos

Pizza will gain 18,900 new customers from this campaign that will likely order from

Dominos 7 times within the year. These respondents are even likely to order more than

7 times in order to win rewards such as a $25 Visa gift card or their 10th order delivered

for free.

E-mail Campaign

Very similar to the Direct Mail campaign every quarter an e-mail will be sent to 135,000

people from the mailing lists utilizing the NextMark lists and targeting the 3 segments

(45,000 to Mobile Savvy Social Connectors; 45,000 to Young Families; 45,000 to Deal

Seeker Influentials). Dominos should also send the same promotional messaging about

the mobile app to their current customers (house list). With a 7% response rate

Dominos Pizza will gain 37,800 new customers who respond directly from this email campaign. Again, these respondents are likely to order 7 times within the year.

Banner Advertising Campaign

Three online banner ad campaigns will be run throughout the year. A pool of

impressions will be triggered to run on the desktop Weather.com site and The Weather

Channel mobile app during inclement weather in major cities in the U.S. This strategy

will be utilized during Q1 and Q4 as an increase in food delivery orders has been

10

observed during winter months.1 1 For a premium placed triggered campaign an average

$10 CPM is estimated.1 2

The second banner advertising strategy is to piggyback on Dominos Pizza current re-

targeting display campaign, but to incorporate extra budget focused on spreading the

word about Dominos mobile app to anyone who has visited the Dominos website

recently. Re-targeted ad network banners average a $2 CPM.1 3

Lastly, a banner advertising strategy geo-targeted around the 4900 Dominos Pizza

retail locations will help reach people without any wasted impressions on those who are

not near a Dominos Pizza. Geo-targeted an ad network campaign adds an extra delivery

cost of about $1 to $1.50 CPM so therefore averaging around $3.33 CPM.1 4

Public Relations

A PR company will be hired to handle a press release and publicity for the entire year of

the campaign to handle a press release and publicity. Their approach will be to use the

PR Newswire during pivotal moments throughout the year to highlight Dominos Pizza

upgraded mobile app that features a new loyalty program. The membership runs

approximately $300, with an additional $700 fee for a press release. A total of $5,000

has been allocated to allow for multiple PR stories to generate more buzz. The pizza

industry is not a very brand loyal industry, therefore, the goal is to increase buzz around

Dominos mobile app and encourage customers to use the app to order their next meal

to earn points for free rewards.

Pizza Box Toppers

This is a current Dominos Pizza methodology to circulate their coupons. This is an

efficient tactic because recent customers are most likely to be your next customers (Lisa

S. Spiller, Contemporary Direct Marketing). This is very similar to retailers including

catalogs inside delivery packages. A test involving 50,000 delivery boxes to include

Pizza Box Toppers dedicated to encouraging the Dominos Pizza customer to both

download and use the mobile app for their next purchase, in order to receive exclusive

offers and rewards will be conducted. This is similar to the in-store display strategy, but

focusing on delivery orders instead of carryout orders.

Cost of Premiums Prem ium Offer Cost of Prem ium if

all Respondents Cash in

Lifetim e Value of

Respondents before Cashing in on Prem ium

ROI of

Prem ium Offer

10 th Meal Free $1,7 01,000 $9,667 ,350 568% $25 Visa Gift Card with

1 ,000 points $1,417 ,500 $56,7 00,000 4000%

Free Dessert with 1 st order $311,850 $966,7 35 310%

11 (http://new s.medill.northwestern.edu/chicago/news.aspx?id=227636) 12 (http://monetizepros.com/blog/201 4/average -cpm-rates/). 13 (http://monetizepros.com/blog/201 4/average -cpm-rates/) 14 (http://monetizepros.com/blog/201 4/average -cpm-rates/).

11

Appendix Return On Investment

12

Offers and Marketing Messages

Offer Selected: Get your 10th order via the

mobile for free

Mobile Savvy Connectors

Pizza Loving Young Families

Deal Seeker influential

Marketing Message Index

From Your Phone to Your Door 58

Offer Selected: Receive a $25 Visa gift card

with 1,000 points earned from ordering via

mobile app


Pizza Loving Yong Families



Loyalty Creates Valuable Gift 51

Offer Selected: Order through the mobile app

and get one free dessert with your first order


Pizza Loving Young Families



Get a free dessert via mobile purchase 43

13

Media Plan Schedule

14

Creative Composition/Creative Brief

Direct Mail Piece

Front:

Back:

15

Sample Social Media Advertising

Instagram:

Facebook:

16

Sample In-Store Display

17

Sample Banner Advertising

Sample Email Ad

18

Market Overview

19

SWOT Analysis

Strengths Weaknesses

Cost-efficient store model Strong Brand Awareness

Dominos PULSE pos system Strong social platform following

Consumer taste perceptions Dominos delivery-focused business

model Extended menu

Opportunities Threats

Fast-casual expansion Differentiation

Domestic growth Expansion to acquisition of local and

independent pizza stores

Mobile platform optimization

Economic slump Strong competition

Rising trends in healthy eating and organic food consumption

Fast-changing digital environment

20

Competition

Competitive landscape:

2013 Annual Sales compared with top three key competitors

2013 Net Profit Margin

21

Financial data about top three competitors and industry

2013 profitability

Dominos Papa

Johns

Little

Caesars

Pizza

Hut

Industry

Median

Market

Median

Gross profit

margin

30.46% 57.96% -- -- 32.78% 33.48%

Pre-Tax Profit

Margin

12.49% 7.37% -- -- 12.82 10.64%

Net Profit

Margin

7.93 4.83% -- -- 9.03% 7.25%

Return on Equity -- 43.57% -- -- 26.16% 11.68%

Return on Assets 28.50% 15.41% -- -- 9.81% 2.11%

Return on

Invested Cap

-- 24.36% -- -- 14.98% 7.33%

2013 valuation

Dominos Papa

Johns

Little

Caesars

Pizza

Hut

Industry

Median

Market

Median

Price/Sales

ratio

2.38 1.47 -- -- 2.52 1.51

Price/Earnings

ratio

20.03 30.40 -- -- 28.01 20.16

Price/Book ratio (3.21) 14.56 -- -- 6.94 2.25

Price/Cash Flow

Ratio

22.12 20.88 -- -- 5.54 243.90

22

Mobile App Feature Comparison

Dominos Pizza Hut Papa Johns Little Caesars

iPhone Downloads

2537 173 16 --

Rating 4.5 4 1 .5 --

Description - The ability to order from almost any dominos in the U.S. (nearly 5,000 locations) - Access to all the items on our national menu. - Find coupons available for use at your selected store. - The app will remember your most recent store and

other useful information. - It does not require customers to login, but they can login to access their saved addresses. - In app credit or debit card payment. - Use dominos tracker to follow order from the make line, into the oven, then out for delivery or ready for pickup.

- Add ability to reorder with only 5 clicks - The full pizza hut

menu offers all your favorite deals, special pizzas, pastas, WingStreet wings, drinks, sides, desserts and limited time offers. - Guest checkout allows you to order without having to created an account.

-Features the entire menu - Special offers - No account required - Anywhere Pay your way - Any time Speed menu Favorites and repeat -Find a pj near you -Papa rewards -Best of all

- View food menu on the go - Order any menu item on the go - Unlock coupons for discounts and freebies - View deals - Talk with others on its fan wall - Connect with them via facebook - Share the app with all friends - Email photos to appear inside restaurants and social networks - Add their events to

customers mobile phone calendar

23

IdeaMap Survey Questions

30

ComScore

Simmons

Documents

First Place Gold ECHO Competition 2014 - Domino's