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- 1 - IMC 616 Direct Marketing Prof. Marold 12/21/13 Assignment: Week #9 (Final Paper) Dominos Pizza Case Study

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Direct marketing campaign for Domino's Pizza. West Virginia University's Integrated Marketing Communication master's program. Fall 2013.

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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

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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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