Jen Murray, Kate Dieter, Nikki Nelson, Shanley McClure
Agenda BACKGROUND RESEARCH & ASSIGNMENT INSIGHTS SOLUTION QUESTIONS
The AssignmentWith companies like Pizza Hut and Papa John’s offering fast delivery at lowprices, this is no longer a point of differentiation for Domino’s. Consumers areinstead becoming more focused on a company’s transparency and theorigins of their food.We are advertising to rebuild trust with these consumers.This campaign should stimulate trial by stressing the quality and taste of thenew recipe.
We love you for… Making the kids happy and dinner easyWe know you for…Thirty-minute deliveryWe order you for… Babysitter damage controlWe remember you for… Sunday night pizza, watching Wonder Years with the familyWe kept coming back for…Coupons and convenience
The Obstacle Consumers have lost touch with what the Domino’sbrand stands for
The Opportunity Bring the focus back to the pizza
CATEGORY COMPETITION TARGET
Current Pizza Culture • Category is segmented by: – Delivery pizza - Frozen pizza - Gourmet pizza • Category is characterized by: – The “Big Four” – Domino’s, Pizza Hut, Papa John’s, Little Caesars – Convenient & value conscious meal options – Heavy coupon use – Dinner emphasis • Attributes of category leaders: – Delivery franchises – Expanding product lines – Embracing the “three screens” – Recession proof • Usually advertise in traditional media • The top 50 pizza chains control %49.02 of sales and own %41 of the countries 67,554 pizzeriasSource: PMQ Pizza Magazine, Pizza Power Report 2009
Why We Buy The main influencers that decide whether or not a consumer will patronize your establishment are price (68%), proximity (66%) and coupons (55%) Independent pizzerias are growing in popularity among consumers, with 54% reporting that they prefer an independent over a chain Consumers report that 45% of restaurant pizza orders are for carryout, 36 % are for delivery and 20% are for dine-in 46% of consumers report that coupons or promotions influence where they decide to purchase their pizza, while 37% say that loyalty or rewards programs would encourage them to patronize a specific pizza concept more often 65% say that they typically order pizza for dinner. Just 11% of consumers report that they are most likely to order pizza for lunch, suggesting room for growth of pizza in the lunch category Source: PMQ Pizza Magazine, Pizza Power Report 2009
The CompetitionCOMPANY BACKGROUND PRODUCTS WEBSITE COMPANY SOCIAL EMPHASIS MEDIA Pizza Pasta • Founded in 1958. Wings • A subsidiary of Yum! Brands, Sides & Desserts • Menu focused Inc. Pizza Rollers • Homepage directs to deals Pricing • Largest take-out and delivery P’zones tab pizza restaurant chain in the Breadsticks • Emphasizes online ordering United States Cheese Sticks • Links to all social media • 34,001 restaurants in 100 Cinnamon Sticks countries. Chocolate • Named, “America’s Favorite Dunkers Pizza.” Catering • Founded in 1983 Pizza • Third largest take-out and Sides delivery pizza restaurant chain Breadsticks •Focuses on featured products in the United States Cheese sticks and Papa John Schnatter. Quality ingredients • 3,300 restaurants in all 50 Parmesan •Emphasizes online ordering, states and 30 countries. breadsticks menu and special offers. • "Better Ingredients. Better Chicken strips • Links to social media. Pizza." Wings • Official Pizza Sponsor of NFL Deserts and Super Bowl CateringCOMPANY BACKGROUND PRODUCTS WEBSITE COMPANY SOCIAL EMPHASIS MEDIA • Founded in 1960 Pizza • Headquartered in Ann Arbor, MI Pasta oven-baked •Product focused • Second-largest pizza chain in the Sandwiches • One click deal navigation ??? United States. Wings •Pizza Tracker tab • 9,000 corporate and franchised Salads • Showcases collaboration with stores in 60 international markets. Breadsticks Cheesesticks St. Jude • Known for 30-minute delivery Deserts • Links to social media guarantee.
LOW Quality IngredientsEXPENSIVE Pricing AFFORDABLE Pricing HIGH Quality Ingredients
2009 Pizza Hut Landscape Pizza Hut holds the top spot with 7,564 locations, slightly up from last year’s 7,466, and accounting for 11.2% of all pizzerias in the U.S. Pizza Hut captured 14.46% of all U.S. pizza salesSource: PMQ Pizza Magazine, Pizza Power Report 2009
2009 Papa John’s Landscape Papa John’s signed a deal to be the official sponsor of the NFL and the next three Super Bowls, is on the verge of $2 billion in online ordering sales and brought Papa John Schnatter to America’s doorstep Papa John’s captured 5.55% of U.S. pizza salesSource: PMQ Pizza Magazine, Pizza Power Report 2009
Family Feeders The Domino’s Consumer Moms Age 27 - 45 Middle to Lower Income Married With ChildrenEmployed Full or Part Time
Family Feeders Lifestyle Shop Eat Family Media ActivitiesSource: Mintel Market Reports, Marketing To Moms – US Feb 2009
Family Feeders Values Family Feeders aren’t health freaks but they are conscious about what they’re feeding their kids. They find a balance between quality and convenience to avoid feeling guilty about what they put on the table. Having Fun Convenience Quality Honesty Enjoying both Bringing some Want to feel good Look for brandsfamily fun and an ease to their jam about what they that they can adult social life. packed schedules. feed their kids. depend on and trust.
Family Feeders On Food • Moms are busy – 71% are part of the workforce – The majority of working moms are still the primary caretaker – Cookingdinner is not always an option • Moms care about their kids’ nutrition – Nutrition is one of the top three traits in a good mother (according to her peers) – Lower income moms hold themselves to a higher standard of mothering • Purchase Decisions – Moms consider familiarity first, followed by their child’s request and recommendations from family and friends Moms need to know the brand. Kids need to love itSource: Mintel Market Reports, Marketing to Moms – US, Feb 2009
Family Feeders On Pizza • Children drive pizza usage • Takeout is the most popular segment, and still growing – Recession - take-out saves money over delivery – However, the option and the speed of delivery are still very highly ranked for importance – Those with children are far more likely to have had pizza delivered in the last month • Important factors overall: price, convenience, pizza variety, and speed of service • Most important to families: convenience and quality ingredientsSource: Mintel Market Reports, Pizza Restaurants – US, Feb 2009
Family Feeders Influencers Factors in Moms Purchase Decisions TV Shows and Ads Magazines and newspapers Information on the InternetFactors Recommendation from other moms Recommendation from family and friends Childs request If it is a brand you are familiar with 0% 10% 20% 30% 40% 50% 60% 70% 80% Importance
RESEARCH & INSIGHTS
CONSUMER CULTURAL INSIGHTS SHIFTS
Family FeedersThe Harsh Truth [ Domino’s is flavorless and forgettable ] “It might get there in 30 minutes… but you’re not going to want to eat it once it gets there.”Saul, 34 “Domino’s crust tastes like cardboard andtheir sauce tastes like ketchup.Honestly, you couldn’t pay me to eat it.” Sharon, 42
Family FeedersThe Harsh Truth[Domino’s is anything but fresh] “I’d prefer not to feed my kids something that tastes like it came out of a Sysco truck. Their ingredients are processed and mass produced.”Bill, 37 “Domino’s tastes like it came out of a microwave, not an oven.” Diane, 34
Family FeedersThe Harsh Truth[I’m trying to eat healthier and feed my kids better foods] “I’d rather order Papa John’s because I know their ingredients matterto them.” –Adrienne, 49“I’m not going to feed my kids all organic, but Domino’s for dinner makes me feel like a bad parent.” – Carlos, 41
Shifts in Culture Meet The Maker We know Domino’s is far from organic, but the brand can still capitalize on the organic movement by showing who is behindthe food. Consumers want to associate the brand with a face. Itfeels secure, real, and gives them someone they can trust.
Shifts in Culture Meet The Maker • People want to know where their food is coming from – Increase in buying local and organic • The importance of organic is growing – Organic claims on kids’ menus jumped from 13% to 31% from 2008 to 2009 • Increase in widespread distrust of mass production − Documentaries: Food Inc., Supersize Me, Fast Food Nation − Media has increased consumer’s knowledge about origins of food, mistreatment of animals, etc. • Consumers respond well to transparency − Facilitatesa human connection − Associating a face witha corporation givesthe consumer an individual who can be held responsible − Builds trust and security with consumersSource: Mintel Market Reports, American Families & Dining Out, Quick Serve Feb 2009
Shifts in Culture Meet The Maker Implications for Domino’s • Domino’s isn’t organic, and neither are its consumers – Lower income families care about nutrition but can’t afford organic – Maintain affordability while offering quality ingredients • Associate a face with the Domino’s brand – Consumers lost trust with Domino’s employees after publicized kitchen misconduct – With the huge overhaul, introducing a face of the brand gives the recipe credibility – Give Domino’s a face that is caring, credible, and passionateSource: Mintel Market Reports, American Families & Dining Out, Quick Serve Feb 2009
Shifts in Culture The Fast Food Mindset Consumer’s don’t want to feel disconnected with what they eat. Weary of what urbanization, industrialization, and globalization has done to our food, consumers are no longer looking for fast and easy. Instead, they’re looking for simple and prepared.
Shifts in Culture The Fast Food Mindset • Increase in childhood obesity – National Survey conducted by Kaiser Permanente from 2003-2007 said 37% of children are overweight, 19.4% are obese, and 6.4% are extremely obese – Social causes of obesity in children • Families spending less time eating meals together • More than half eat meals together 5 times a week, but 34% eat together only 1-3 times a week • Fast and Easy vs. Simple and Prepared – Quick Serve Restaurants are trending towards the quality of Fast Casual RestaurantsSource: Mintel Market Reports, American Families & Dining Out, Quick Serve Feb 2009
Shifts in Culture The Fast Food Mindset Implications for Domino’s • Domino’s needs to lose the fast food association – Opportunity to capitalize on consumers’ heightened levels of quality and ingredient awareness – “The recession may have caused consumers to eat out less frequently, spend less while eating out, and trade down, but that does not mean that they want cheap… what consumers really want is value for their dollar.” – Target took a financial hit, and therefore, are more demanding for quality at a low price • Domino’s needs to create a meal for mom and her kids – Increased perception of quality would encourage moms to sit down with their kids for a family dinner – Pizza has always been kid friendly, Domino’s needs to make it mom friendlySource: Mintel Market Reports, American Families & Dining Out, Quick Serve Feb 2009
Shifts in Culture The Conversation Consumers connect with everything online, so why not food?Domino’s has already mastered the online ordering system which is heavily weighted in consumer convenience. However, consumers are looking for a two-way, interactive experience to feel more connected with their food.
Shifts in Culture The Conversation • Moms’ purchase decisions stem fromtheir familiarity with the brand and they’re getting familiar through the web – Moms who use social media regularly increased from 11% in 2006 to 63% in 2009 – 70% connect with friends and family through social networking – Increasingly see social media as a way to connect with companies • Moms consult other moms – 23 million mommy-bloggers – 96% of moms value recommendations from mommy-bloggers • This communication is holding corporations to a new standard of honesty – Being involved in social media gives the company more control over the conversationSource: Mintel Market Reports, Marketing to Moms-US, Feb 2009; Public Relations Tactics Mom Bloggers
Shifts in Culture The ConversationImplications for Domino’s• Domino’s needs to be part of the conversation – Online presence – Listen to criticism• Domino’s needs to be their own consumer - someone who loves their pizza but is also their toughest critic• Needs to rebuild trust and create positive online communication• Domino’s needs transparency
Key Takeaways &Direction• Domino’s needs to listen consumer criticism and consumers need to know they were heard• Bring the brand back to pizza and what goes into it – Goes beyond ingredients to include efforts, commitment to the brand, and passion of Domino’s pizza• Domino’s needs to open up a two-way conversation with their consumers• Emphasize the magnitude of changing the original recipe after 50 years TAKE OWNERSHIP AND WIN THEM BACK
Voice |VisualsEmeril + President Patrick Doyle Kitchen + Staff + Ingredients Tone is humble yet confident, wholesome, honest, excited
Pop Culture References• Food Inc., Fast Food Nation, Supersize Me…with a happy ending• Food Network - freshness, real ingredients, stainless-steel chef’s kitchen + seeing inside• Intervention
Rationale• Transparency and ownership conveyed through documentary – “Mom friendly” media • Moms like to share - give them a format they can share with other moms online through blogs,Facebook, etc.• Banners drive traffic to the documentary with movie poster inspiration – “Watch now”• Quality ingredients and passion shown best through TV efforts• Affordability and convenience still conveyed through emails and banners