Fraser Merritt Final IMC Campaign


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Fraser Merritt Final IMC Campaign

  1. 1. 2013 Domino’s IMC Campaign Good & good for you! Kelle Fraser Michelle Merritt IMC 631 December 12, 201212/12/12 1
  2. 2. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Table of Contents1.0 Executive Summary2.0 Marketing Opportunity Analysis2.1 Communications Market Analysis2.1.1 Competitive Analysis2.1.2 Opportunity Analysis2.1.3 Target Market Analysis2.1.4. Customer Analysis2.2 Market Segmentation Strategy3.0 Corporate Strategies3.1 Corporate Image Strategy3.2 Brand Development Strategy3.3 Brand Positioning Strategy3.4 Distribution Strategy3.5 Business-to-Business Strategy3.6 Public Relations Strategy3.7 Evaluation4.0 Integrated Marketing Communications Management4.1 Overall IMC Objectives4.2 Total IMC Budget4.3 Agency Selection4.4 Internet Strategy5.0 Consumer-oriented IMC Strategies (i.e. aimed at consumers)5.1 Budget allocation5.2 Integrated Marketing Communication Approaches5.2.1 Advertising5.2.1.1 Advertising Goals5.2.1.2 Creative Brief5. Target Audience Profile5. Communication Objectives5. Key Consumer Benefit5. Creative Strategy5.2.1.3 Advertising Design5.2.2 Consumer Promotions5.2.2.1 Consumer Promotion Selection and Budget Allocation5.2.3 Personal Selling5.2.4 Sponsorship and Event Programs5.2.5 Database Programs5.2.5.1 Data Warehouse5.2.5.2 Direct Marketing5.2.5.3 Permission Marketing 2
  3. 3. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20125.2.5.4 Loyalty Programs5.2.6 Interactive and New Media5.2.7 Other IMC Methods5.3 Media Plan & flow chart (includes all communication platforms)5.4 Integration5.5 Evaluation methodology (metrics and analytics) 3
  4. 4. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20121.0 Executive SummaryThe Domino‘s brand continues its ride on the cusp of its desired market share. It is ourgoal to implement an integrated marketing communications plan that will help Domino‘sin reaching that next level where it increases market share through expanded carry-outbusiness and concentrates more on the lunch daypart (Mintel, 2011). This plan, focusedon modifications to the Domino‘s product line, will aid in reaching those over-archinggoals for the brand. These product options have been developed because it has beendetermined that a large share of the consumer market Domino‘s is positioned to attractis interested in healthier options with the new Domino‘s flavor and quality.The groups this target audience encompasses include adults, age 18-24, in need ofvalue pricing and adults, age 25-54, who seem more willing to try a wide range of menuchoices. Households with children, consisting of families that want ―meal deals, are alsotargets of this campaign. Other groups consist of consumers, with annual householdincomes of $75K-$150K, who are regular pizza purchasers, as well as those who haveswitched from full-service restaurants to a QSR segment that offers a seeminglyirresistible value.The goals of this plan include the development of strategies that continue the evolutionof Domino‘s corporate image to offer quality, healthier prepared food, for the budget-conscious consumer. This goal will be met by achieving the following: Increased awareness of new menu options will be followed by increased sales Market at least three new and uniquely Domino‘s non-pizza menu items that fulfill the goal of offering a diverse and healthy menu Encourage consumers who haven‘t had Domino‘s recently to try it. Increase market share by 10 %These objectives will be met through a confluence of traditional and non-traditionalmarketing and advertising methods that center around a television ad directed at thetwo target demographic groups. These methods include: Digital Newspaper Broadcast Billboard Social Media Sponsorships Direct Marketing CRMThe total budget, for the 9-12-month schedule, is $26, which is consistent with thecurrent expenditure level for marketing activities for the brand. ROI will be evaluatedmonth-by-month by revenue earned from the new products. It is expected that brandand product awareness goals will be achieved at a level sufficient to achieve the desiredoutcomes and where there is any shortfall, the plan provides for appropriate and timelyadjustment. 4
  5. 5. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20122.0 Marketing Opportunity AnalysisDuring the past five years quick service restaurant sales have increased 15%, and areset to increase 22% between 2012 and 2017 (Mintel, 2012). This growth in the quickservice restaurant category is reflected in Domino‘s advertising and promotions. As theeconomy dictates a growing need for value-priced food options, Domino‘s hascapitalized on this trend. Domino‘s has made use of marketing opportunities with usersof all media, with its campaign focused on the improvement of their pizza product. In2010, the brand claimed a 19.8% market share, based on reported U. S. consumerspending (Mintel, 2011). In 2010, Domino‘s celebrated fifty years in business.Highlights of its history include the opening of its first international store in Winnipeg,Canada in 1983, the opening of 954 units in 1985, making it the fastest-growing pizzacompany in the United States; the introduction of Buffalo Wings in 1994, and the launchof the website in 1996. Domino‘s became the official pizza ofNASCAR in 2003 and entered the corporate social responsibility arena in 2004, with athree-year partnership with St. Jude‘s Children‘s Research Hospital. In 2007, Domino‘sintroduced online and mobile ordering. These milestones represent Domino‘s agility intransformation and adaptability to the changing times in the application of a number ofmarketing tactics (, 2012).2.1 Communications Market AnalysisDomino‘s customers access traditional media and television ads continue to serve thebrand successfully. A recent television and Facebook campaign focuses on online andmobile ordering, giving customers a 50-percent discount (Alfs, 2012). This shows thattraditional media is still effective for this brand and is successfully integrated with non-traditional media as POS options. This serves as an example of how the audiencesegments targeted will respond as this is congruent with their behaviors. It is also notedthat the brand has strong social media presence that can be expanded upon. Forinstance, the corporation does not have Pinterest boards, but several stores do, such asone in Ann Arbor, Michigan (See Exhibit 1). The corporate brand is currently active onFacebook, Twitter, Google Plus and its mobile site.One co-branding opportunity the brand has explored is the partnership with America‘sDairy Farmers ingredient brand ( n.d.). Another is their Oreo Cookiedessert pizza. This is also a brand expansion opportunity as a component of Domino‘sAmerican Legends Specialty Pizza line ( n.d.). The most recentsponsorship with the NCAA March Madness is comprised of being the official pizzathrough 2013, and is an example of event marketing as well. More partnerships of thistype will allow the brand to engage its Millennial audience, as well as their familymembers, as well as the fans of this event.This brand has multiple audience opportunities, from cash-poor 18-24 year olds, to 25-54 year old adults. These are the target markets that will be focused on, as they includeconsumers interested in varied menu options (Mintel, September 2012), such as those 5
  6. 6. Kelle Fraser IMC 631 Domino‘s IMC Campaign Michelle Merritt December 12, 2012 Domino‘s is known for. 2.1.1 Competitive Analysis Domino‘s competitors that fall into the pizza QSR category include Little Caesars, Papa John‘s, Pizza Hut, CiCi‘s and Sbarro. All of these brands advertise widely in traditional and non-traditional media, with the exception of Sbarro. Pizza Hut is the leader in sales in this category, with nearly 15% of all U.S. pizza sales. It operates 7,595 U.S. units. Domino‘s is second with 4,907, and Papa John‘s third with 3,001 (Barrett, 2012). Pizza Hut‘s menu includes several varieties of wings, which are branded as WingStreet (Pizza Hut, 2012). Like Domino‘s, they also offer pasta. These restaurants all top the 2011 Quick Service Restaurant Magazine QSR 50, Exhibit 1, (Oches, 2012) and the Pizza Magazine Quarterly Pizza Power Report (Barrett, 2012). The graphic below compares Domino‘s to its top competitors in these categories: company type, 2011 U.S. sales, number of domestic stores owned and operated or franchised and the number of states included, menu items and supplier. Following the graphic are several other areas in which the Domino‘s brand matches its competitors: healthy menu comparison, school nutrition programs promotion strategies, sponsorships and social responsibility, advertising and audience engagement/social media. Top Competitors Company 2011 U.S. Sales #US Stores Operates - Menu Supplier Type (x1,000) Franchises / #States ItemsDomino’s Little Caesar‘s Public - $3,4000,000ǂ 394 - 4,513 / 51 † Pizza, pasta, Domino‘s Pizza Papa Johns (NYSE: DPZ)† (20% delivery boneless chicken, Supply Chain Pizza Hut† market share)† wings, sandwiches, breads and dessertsLittle Caesars Dominos Subsidiary $1,480,000ǂ 3,518‡ - / 51 Pizza, sandwiches, Blue Line Food Papa Johns wings, breads, Service Distribution Pizza Hut (Secondary: desserts and (Little Caesars- CiCi‘s, Sbarro)† vegetarian options owned)Papa John’s Dominos Public - $2,195,841ǂ 625 – 3,001 / 51† Pizza, breadsticks, PJ Food Service, Little Caesar‘s (NASDAQ: PZ chicken strips, wings Inc. QC Centers Pizza Hut† ZA) † and dessertsPizza Hut Dominos Subsidiary † $5,4000,000ǂ 1,080 – 6,120 / 51 Pizza, breadsticks, n/a, (not supplied Little Caesar‘s (15% market wings, sandwiches, by Pizza Hut or Papa Johns share)† pasta and desserts YUM! Brands, Inc.)Sbarro Noble Romans, Inc. Private † $420,000ǂ 611‡ - n/a / 48 Pizza, salads, pasta, n/a Panda Restaurant full-course entrees Group, Inc. and desserts YUM! Brands, Inc.CiCi’s Dominos Private † $516,000ǂ 573‡ - n/a / 34 Pizza, pasta, soup, JMC Restaurant Pizza Hut salad, wings and Distribution, Inc. Sonic Corp. desserts (Secondary: Little Caesars, Sbarro Papa John‘s) †† Hoovers; ǂ PMQ Pizza Power Rpt.; ‡ QSR 50; n/a: not available; Healthy Menu Comparison Little Caesar‘s offers vegetarian pizzas on its menu and uses no animal or animal by- products in its dough, making the pizza crust and plain bread sticks viable options for vegans as well. Papa Johns Garden Fresh and Spinach Alfredo specialty pizzas are the healthiest pizzas on the menu because a small slice, compared to all other pizzas on the menu, contains the least calories. Pizza Hut offers a veggie lovers pizza for its customers who prefer not to consume meat. 6
  7. 7. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012None of these competitors offer any lower calorie or fat cheese or meat options, makingthe changes to Domino‘s menu a desirable strategy for capturing more health-consciouspatrons. This approach positions Domino‘s to capture women desiring healthiertoppings on pizza as well as higher-―income earners, with an annual household incomeof $100K-$149.9K‖ (Giandelone, 2011).School Nutrition ProgramsOther healthy product options offered by pizza companies focus on catering to schools.One such endeavor is Cici Enterprises‘ Bright Slice School Catering Program. It issimilar in scope and intent to Domino‘s Smart Slice Program – even down to the name.In both instances, the companies market this program to the schools as compliant withthe nutrition standards. Domino‘s ancillary focus is on a ―loyalty program that gives backto‖ the ―district by providing equipment for schools, kitchens, and sports‖. CiCi‘sprogram provides learning resources for teachers and students on their website.Promotion StrategiesOne of the tactics planned here is a sampling promotion. One competitor, Sbarro,recently, conducted a 35,000-slice giveaway during National Pizza month. This ―Slice ofItaly Tour‖ introduced their all-natural Neapolitan-style recipe and coincided with a 360-degree ―experiential, in-store, public relations and social media‖ campaign. Theyincluded a social responsibility component addressing the hunger crisis by drawingattention to food banks as well attracting fans to their recently-launched Facebook pageas their introduction to the social media space.Sponsorships and Social ResponsibilityAll of these competitors provide various forms of sponsorship and community support.Some are rooted in social responsibility, and others are event marketing-related.Domino‘s has been successful with achieving a balance between the two. The brandnot only supports the military, it sponsors the NCAA and NASCAR, partners with St.Jude‘s Children‘s Research Hospital and donates to education, diversity initiatives,communities, children‘s charities, arts and culture and provides team member support.This is all in addition to giving in-kind support.Following are some of Domino‘s competitors‘ efforts in the area of social responsibility.Papa John‘s supports the Boy Scouts of America, the Make-a-Wish Foundation, JuniorAchievement and hosts a 10 Mile race to benefit the WHAS-TV Crusade for Childrenwith special needs, and the University of Louisville among other local regional andnational causes. Papa John‘s is also a sponsor of the NFL in Canada, Mexico and theUK as well as several Super Bowls. The brand also ―used its Facebook page for its―Supporting American Troops and their Families‖ promotion.CiCi‘s supports Big Brothers Big Sisters and Happy Hill Farm a charitable organizationthat assists at-risk children. Pizza Hut‘s Slices of Hope benefits World Hunger Reliefand this year, the brand celebrated the 28th year of its BOOK IT reading incentiveprogram. 7
  8. 8. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Little Caesars offers a Veterans Program that supports U.S. Armed Forces veterans inopening Little Caesars franchises. The brand also funds the Little Caesars Love Kitchenthat has traveled and fed more than two million people in 48 states and 4 Canadianprovinces. Like Domino‘s, the brand has responded to the gulf coast flood as well asother disasters. The brand, which also offers a hockey scholarship, is the 2013 PMQPizza Industry Enterprise award winner (Barrett, 2012).AdvertisingDomino‘s achieved three goals with its television advertising in 2011. The Pizza Trackertechnology was introduced and conveyed a personalized, caring approach to havingorders completed by caring, committed crew members who take pride in the positivefeedback they receive after a customer expresses their satisfaction with their order. Thead effectively educated consumers about the technology and enhanced theirtransparency and quality message. Second was the value and engagement aspect ofthis ad that offered a $5.99 online deal for two medium, two-topping pizzas thatcustomers were encouraged to take advantage of and then review the store‘sperformance. The third ad campaign focused on the new Artisan Pizzas and usedprofessional chef Fabio Viviani from Bravo TV Network‘s Top Chef reality show in asupposed comedic role. Mintel indicated that the ad missed the mark as Viviani was notpart of the line‘s development, nor did Domino‘s focus adequately on the artisanconcept – a huge coup for a national chain (Mintel, 2011).In Mintel‘s Pizza Restaurants - US - December 2011 report, Pizza Hut, CiCi‘s, and LittleCaesars were Domino‘s competitors in significant television advertising initiatives. PizzaHut‘s main goal was to convey its value message with the introduction of the Big DinnerBox. A second, limited-time, offer was presented where customers could get any pizza,including specialties, for $10. The ads were effective in accomplishing its value-image-building goal (Mintel, 2011).CiCi‘s did not advertise a product, but sought to be top-of-mind for busy, workingmothers with three children. The goal was to position the brand as the convenient,affordable, real meal to serve children who all have to attend different activities afterdinner. The ad was missed the opportunity to point out how, in addition to theconvenience, the buffet saves time and provides enough variety to satisfy the entirefamily in a dine-in setting (Mintel, 2011).Little Caesars Hot-N-Ready ad intended to convey that consumers save money whenthey save time, or save time and money. Mintel indicates that the ad was effective incommunicating the time-saving premise, but missed the mark on clarity about savingmoney. The pizza‘s price appears in the ―in the upper corner for a short time with themessage that the Hot-N-Ready pizzas are $5—an obvious deal that viewers mustrealize on their own, since the announcer does not mention the price‖ (Mintel, 2011). 8
  9. 9. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Audience engagement in the Digital and Social Media SpacesAudience engagement through digital platforms is shared by all of Domino‘scompetitors. Domino‘s Pizza Hut and Papa John‘s lead the category with smartphoneapps. Domino‘s was the second brand in this category to enter the mobile app spacewith iPhone and iPod Touch apps. It followed Pizza Hut‘s iPhone and iPad appdevelopment. Pizza Hut has recorded 5 million downloads. Domino‘s charted $1 millionin sales in one week as part of its 30% in orders coming from this source. Papa John‘siPhone app performs all of its website functions and ties into its Papa Points loyaltyprogram (Mintel, 2011).Social media has played a significant role in audience engagement on Facebook andTwitter. Pizza Hut has received 7.5 million ―likes‖ on Facebook, well as achievedsignificant success with on-page coupon promotions for the Big Dinner Box. Over 1,800users liked the post. In another Facebook campaign, they promoted the Lovers pizzaline and winners of the Lover‘s Lovers contest received ―either the daily prize of a$50 Pizza Hut gift card or the weekly prize of free pizza for a year‖. Pizza Hut alsoranked 10th out of 149 restaurants on Restaurant Business‘ Social Media Index.Domino‘s and Papa John‘s ranked 12th and 14th, respectively (Mintel, 2011) Please referto exhibit Opportunity AnalysisDomino‘s claimed nearly 20% market share in 2010, based on reported U. S. consumerspending (Mintel, 2011), the same year it celebrated its 50th anniversary. This In 2010,Domino‘s celebrated fifty years in business. The market segmentation included hereshows the continued viability of the direction of expanding its social media, digital,mobile and online presence. Additionally, opportunities for product placement in filmsand television shows create additional opportunities as household‘s media intakewarrants this effort.2.1.3 Target Market AnalysisAdults age 18-24By targeting this age group with value pricing, new phone apps, and other forwardthinking concepts there is hope to carry their pizza preference through their adult years.In this age group, college and young adults, have a need for convenience and valuepricing.Adults 25-54Consumers aged 25-34 make up one of the most dedicated QSR consumers, and apartfrom the population of those aged 55+, is the age group projected to have the greatestgrowth through 2017. As they age from young adults to parents, the needs of theirchildren become of the greatest concern. They also are seemingly more willing andeager to try a wide range of menu choices from the restaurants they frequent (Mintel,September 2012). 9
  10. 10. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012"Millennials will overtake Baby Boomers as the most sought-after target forrestaurateurs in the coming years," said Bonnie Riggs, NPD restaurant industry analyst."This is the time to reach them to build their loyalty. Its important to understand thatMillennials are not a one-size-fits-all generation and their needs and wants are varied"(, January 2012).2.1.4. Customer AnalysisAgeAlmost everyone eats pizza and a December 2011 Mintel Research study showed that76% of age 18-44 year olds had eaten pizza at a pizza restaurant during the month ofNovember 2011. The percentage dropped to 68% when including the 45+ surveyrespondents. In fact, the youngest adults, aged 18-24, are the most likely to have eatenvalue priced pizza whereas aged 25-34 are frequenting eight of the top 10 most-visitedpizza restaurants. As far as the middle-ages segment, 55+, are more likely than theiryounger counterparts to suffer from more health conditions and therefore more of themmay have to refrain from eating processed foods high in fat, calories, and sodium andthose perceived as junk food.Speaking of healthy alternatives, those aged 18-24 do not really care if the pizza theyorder is healthy. According to the Mintel Healthy Living—U.S. report in July 2011, thisage group were 30% more likely to agree with the statement ―I pretty much eatwhatever I want and don‘t worry about fat/calories/etc.‖Households with ChildrenAs households with one or two children were 11% more likely than average to havevisited a pizza restaurant and purchased pizza in the past month at 79%. These familiestake advantage of the value in ―family meal deals‖ and other meals designed for familydining. Households with three or more children are the most likely to have gotten pizzafrom a grocery store than from any of the 10 most-visited pizza restaurants.IncomeBy income and household size, those with annual household incomes of $75K-$150Kthe most likely to have gotten pizza at a pizza restaurant, particularly the independentgourmet pizza restaurants, such as California Pizza Kitchen, and Papa Murphy‘s.Buyer BehaviorLike many other QSR‘s, pizza was impacted during the recession and subsequentyears. Focusing on value, the industry kept consumers coming back but that couldchange unless they take seriously the constant threat from competing companies thathave driven the QSR industry to rebrand itself and provide more upscale and healthiermenu choices (Mintel, September 2012).During the last several years, consumers switched from full-service restaurants to aQSR segment presenting a seemingly irresistible value. Pulling away from these lowprices has been a challenge for many and on top of that consumers are now looking for 10
  11. 11. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012new menu items with upscale ingredients. ―Value prices can be value portions, andcustomers can be better enticed to spend more by convincing them with opportunitiesfor sampling new menu items via the value menus they have grown to expect‖ (Mintel,September 2012).2.2 Market Segmentation StrategyUnderstanding that fluidity of tastes within our target audiences must be prepared for,going into the year we have identified various groups as target audiences. The 18-24year olds who live on pennies a month, 25-54 year olds who try to feed a family healthyalternatives, and digital evolved people who can do just about anything on their smartphone.Health Conscious ParentsHealthy pizza becomes more important as the consumer ages. In fact, 25-34‘s are themost likely to indicate an interest in healthier toppings, healthier cheese and healthiercrust options on pizza (Mintel, December 2011). They also indicate the greatestlikelihood of limiting the amount of pizza they eat because it has too much fat. AsDominoes focuses on customer‘s needs, the continual redefining of pizza will be ofutmost importance. Low fat, whole wheat, and gluten free crusts are just some ofhealthier alternative‘s to be considered.Childrens meals have been the focus of FTC legislation and various health advocacygroups during the past few years and that focus is expected to continue. Continuouspressure is being applied to restaurant operators to improve the healthfulness of kid‘smeals. Health conscious parents have sought out QSR‘s which provide low-fat milk,fruit, non-fried chicken, and cereal and taken a step back from the french fries, regularsize burgers, and fried chicken, according to NPDs Crest service, which continuallytracks consumer usage of restaurants. (, October 2012).Menu expansion: Aside from offering more healthful pizzas, expanding the saladselections could appease health-conscious parents. Many operators are already in tunewith this, as salads on pizza restaurant menus have increased 10% in the past threeyears, according to the Menu Insights Analysis—The Pizza Restaurant Menu section. Inaddition, other menu enhancements that involve cheese, vegetables, and meat will notonly evolve but use as many locally grown or produced ingredients as possible.(, 2012)Gluten Free: In the last few years many consumers have made a choice to reduce theirconsumption of gluten, a protein composite found in food processed from wheat, ryeand barley. An August 2012 consumer survey by Packaged Facts shows that 18% ofadults are buying or consuming food products tagged as gluten-free, up from 15% inOctober 2010. Additionally, the share of gluten-free consumers who are buying more ofthese foods has skyrocketed, and the share of total shoppers who are buying moregluten-free foods has doubled (, October 2012). 11
  12. 12. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Technology SeekersToday, QSR‘s are always looking for the latest solutions to help cut costs, provide betterand faster service, and build loyalty. According to a 2012 report from research firmTechnomic, technologies that enable them to self-order and pay, receive coupons orspecial offers via email or text message, have nearly 58% of respondents say they usethese at least once a month."Technology can be used as a point of differentiation within the restaurant industry,especially with Millennials," said Darren Tristano, Technomic executive vice president."Operators who stay ahead of the curve, in an increasingly competitive market, will needto evaluate the best use for the latest tech trends. It should complement and enhancethe restaurant experience for all age groups, which may mean having a printed menuavailable, as well as an iPad/tablet" (, October 2012).3.0 Corporate StrategiesTo successfully increase market share in all of Domino‘s must. Expand its menu to provide suitable products desired across market segments, including healthy and gluten-free options. Engage customers, and potential customers, through diverse media channels that reach them where they are. Heighten the visibility of the new menu platform, focusing on menu items unique to the Domino‘s brand.3.1 Corporate Image StrategyA corporate image influences customers either negatively or positively as they makepurchase decisions, so it is important to control your corporate image. Summarize whatyour company "stands for" and what you want your customers to believe about yourcompany.The corporate goal for Domino‘s Pizza is to become the industry leader in sales bytargeting it‘s message to its primary market segment: 18-24 year olds who are prone toconsume pizza and related products extensively and its secondary market segment of25-55 year olds who are continuously looking for more choices that include expandedand healthier options for their families.The corporate image Domino‘s will present is one of quality, healthier prepared food, forthe budget-conscious consumer, that can obtained be quickly and easily. This is in linewith the pricing structure, the ordering platforms and the menu offerings.Domino‘s is equipped with new approaches to food quality and flavor; includingimproved recipes and ingredients. It respects its customers, listens to their opinions,and gives them what they want in terms of flavor, quality and variety. 12
  13. 13. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20123.2 Brand Development StrategyDomino‘s Pizza acquired its name in 1965, five years after Tom and James Monaghanpurchased the Ypsilanti, Michigan pizzeria named Domi-Nick‘s – which was probably acombination of the names of the sellers. Tom became the sole owner a year after thepurchase, and made the name-change decision; and the logo is an illustration of thename. Domino‘s has enjoyed years of name brand recognition (, 2008),and recently modified its logo by removing the name (, 2012). All newstores, and those undergoing major renovations, will have the new logo on their signs.The brand is widely recognized, and now, because it represents so much more thanpizza, this change was warranted (Morrison, 2012). Domino‘s is traded on the NYSE asDPZ.3.3 Brand Positioning StrategyDomino‘s target market includes consumers with the need for convenient food that ishealthy and nutritious. Pizza and other quick service pizza-related foods – sandwichesand appetizers - are typically purchased by consumers who seek a quality, hot mealthat is prepared for them and can be purchased inexpensively and feed multiple people.Domino‘s primary competitors are Pizza Hut, the category sales leader, and PapaJohn‘s, who is the third highest seller.Domino‘s menu has more pizza and pasta options than Pizza Hut; and Papa John‘sspecialty pizzas rival, but are far fewer than Domino‘s. Domino‘s also offers the ability tobuild your pasta, wings or pizza. Pizza hut offers twice as many wing options asDomino‘s and Papa John‘s has the least options. Domino‘s is the clear leader for themain product menu option, offering more pizzas. Domino‘s appetizer menu selection isalso more extensive.Domino‘s is unique in that it offers a Pizza Tracker: technology that allows customers towatch their pizza being made to their specifications. Domino‘s also has the Legendsand Artisan lines, that are elevated, gourmet-style options. These more extensive menuoptions give Domino‘s a slight edge over competitors. It is necessary for Domino‘s tocontinue offering options that competitors do not have. While Domino‘s has a goal ofsuperior service, it must out-innovate the completion in the product area. A healthiermenu would address this need, as many consumers, across age segments, would likethis option.Regarding how customers perceive Domino‘s, the biggest problem for the brand toovercome is the challenge of re-capturing customers that it lost prior to making theirimprovements. It appears, based on Pizza Hut‘s increase in openings and Domino‘sclosures, that many have gone to Pizza Hut and haven‘t returned (Oches, 2012). Thisshows that there are customers who still see the brand as inferior and are not willing tomake the switch back. Customers also no longer see Domino‘s as the only deliverybrand, because both Pizza Hut and Papa John‘s provide delivery in many areas 13
  14. 14. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012(McLellan, 2012). Differentiation in products and customer engagement is key for thebrand at this juncture.3.4 Distribution StrategyDomino‘s is a global brand with 10,000 franchised and company-owned stores,domestically and worldwide. The 10,000th store was opened this September in Istanbul,Turkey (, 2012). Not only is Domino‘s in the business of delivering theprepared product to consumers, it manages its own ingredient supply chain to supportthe 5,000 domestic stores. The main partner in the B2B distribution strategy are thefranchises.Customers, visiting a company-owned or franchise store, receive product from thoselocations, either by delivery or by in-store pick up. They are able to place their orders byphone from their preferred location; or in an e-commerce environment, through themobile website, the product website, or an iPhone, Android, Kindle Fire or Spanishlanguage mobile app. The Pizza Tracker technology – which allows customers to followthe making of their pizza, is available both online and on the mobile site(, 2012) and distinguishes Domino‘s from their competitors. Thisfeature is also a useful engagement tool for the target market segment of 18-24 yearolds who are major technology users. All e-commerce platforms provide convenienceand efficiency that busy, sophisticated consumers appreciate. Email, text and phoneoffers are also available to customers who sign up to receive Domino‘s Pizza Offer.These direct messages, of course, opt- customers in to the company‘s CRM program.Domino‘s two delivery competitors also have e-commerce online and mobile siteordering, email and text offers, as well as mobile apps on several operating system anddevice platforms. Papa John‘s, Little Caesar‘s and Pizza Hut also serve customers inthe store as well. Little Caesars does not have any e-commerce applications, only hasstore-based ordering and an iPhone app that does not support e-commerce.3.5 Business-to-Business StrategyAt times communication can be weak with the independent Domino‘s franchises. In aneffort to ensure up-to-date communication an intranet site with access to all Domino‘sstores will be enhanced to include corporate information and directives, templatemarketing materials and national ad campaign schedules, human resource initiativesand forms, etc.Domino‘s has a B2B program through which schools or companies can set up anaccount that will make the process of ordering for numerous locations and largenumbers of people simple and convenient. A dedicated point-of-contact, at thecorporate headquarters, is responsible for managing this process (,n.d.). It is only required that a minimum order quantity be met, and the organizationsaves time and money by allowing work time to be focused on their productivity(, n.d.). 14
  15. 15. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20123.6 Public Relations StrategyPublic relations will be managed by integrated advertising agency, Crispin Porter +Bogusky (CP+B), the agency that helped develop the ―Pizza Turnaround‖ for Domino‘sin 2009; and recommended this year‘s removal of the word ―Pizza‖ from the logo.Because Domino‘s is a global brand, this vendor oversees public relations efforts thatposition the brand as both a global entity.The company‘s Community Relations department oversees the local presence in thesoutheastern Michigan community (, 2008). Individual stores handlethe company‘s presence in their areas outside of southeastern Michigan (Domino‘sPizza. 2010). The social commitment of the brand and the commitment to transparency,quality and care in products and service will continue to be the foci of the publicrelations strategy.Domino‘s has an active, high-profile social responsibility program, which includesenvironmental impact, community involvement, team member relations and food safetyand supply. The brand reduces its environmental impact through such efforts as usingup to 50% recycled materials in its pizza boxes and reducing its carbon footprint throughfuel and energy conservation (Domino‘s Pizza. 2010).Domino‘s national community involvement is reflected through its partnership with St.Jude Children‘s Research Hospital, and locally through involvement with charitableevents, or making donations to non-profits. Domino‘s franchisees also assist whenneeded – such as the efforts RPM Pizza made to collect items needed by thoseaffected by the gulf oil spill (Domino‘s Pizza. 2010). It will be through continued concernfor customer satisfaction and high-visibility on the community, that Domino‘s publicrelations strategy will be successful.3.7 EvaluationAgency of record, Crispin Porter + Bogusky (CP+B), will also perform the majority of thecampaign evaluation. The areas that will be measured include: Image Analysis Positioning Analysis Consumer Promotions Analysis Customer Complaints and Product Returns Digital Marketing Analysis Advertising Impact Social MediaDomino‘s in house financial analysts will include: Year over year sales Additional expense vs additional sales due to new menu items Overall cost to sales measurements Units per transaction increases And ROI 15
  16. 16. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012New menu items are being introduced and the effectiveness of the above areas will beevaluated on a twelve-month schedule for the 2013 fiscal year. The initial tests of thenew menu items will begin in March 2013. The effectiveness of social mediacampaigns, consumer promotions and brand awareness will be the first areas analyzed.The remaining areas, involving the brand overall, such as image, positioning andadvertising impact will take place during the second half of the year.Evaluation Programs TableEvaluation Programs Plan Start End Date Cost Department Manager DateBrand Awareness 6/1/2013 6/30/2013 $40,000 CP+BImage Analysis 10/1/2013 10/31/2013 $15,000 CP+BPositioning Analysis 10/1/2013 10/31/2013 $15,000 CP+BConsumer Promotions 5/1/2013 6/30/2013 $10,000 CP+BAnalysisCustomer 1/1/2013 12/31/2013 $0 Internal LRComplaints/ProductReturnsDirect Marketing 11/1/2013 12/31/2013 $45,000 CP+BAnalysisAdvertising Impact 9/1/2013 10/31/2013 $37,000 CP+BSocial Media Analysis 5/1/2013 6/30/2013 $10,000 CP+BTotals $172,0004.0 Integrated Marketing Communications ManagementThe key management issues associated with the Domino‘s IMC campaign relate tocreating more diverse options for the menu with a focus on healthy and tasty meals.Once the menu has been developed the focus turns to overseeing at least four differentmarket tests in different geographical locations to gather feedback. Social media will beimportant at this point, as consumer feedback is solicited in these markets. Once thefeedback has been analyzed, the best menu items must be rolled out to all theindividual Domino‘s locations. From there, the challenge becomes making the targetaudiences aware and curious about trying the new items. As the creative marketingbecomes vitally important, working as a partnership with the advertising agency will be akey focus. How to approach messaging, creative, and what IMC media mix will producethe optimal reach and impact becomes top priority. 16
  17. 17. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20124.1 Overall IMC Objectives Market at least three new and uniquely Domino‘s non-pizza menu items that fulfill the goal of offering a diverse and healthy menu Encourage consumers who haven‘t had Domino‘s recently to try it. Increase market share by 10 % Build brand loyalty in the 18-24 year old target audience engaging them in at least four social media campaigns designed to solicit input and participation. Through these initiatives, grow Facebook likes from 7.5M to 9M and increase total tweets mentioning Domino‘s by 10%. Using traditional media, drive consumers to the Domino‘s mobile apps and website to check menu items and order. Increase the number of orders being placed digitally from 48% to 60%. Back up the promises by delivering a great pizza that will increase satisfaction scores, with both internal surveys as well as those conducted via third party, by 15%.In 2012, the marketing continued to develop consumer trust and loyalty to the brand asa continuation of the reformulation of the pizza. From TV ads with real Domino‘s teammembers, to digital innovation that encouraged customers to participate in braggingabout the brand. With expansion of the menu with healthier alternatives suitable forparents to feed their children, there will be continued market growth and sales.It is important to continue to bridge the gap between traditional and new media not onlyto run successful campaigns, but to continue engaging consumers in multiple ways.This will reap loyal consumers, responsive local supporters and the growth of business.4.2 Total IMC BudgetAdvertising and marketing costs, as they relate to primarily company owned stores,finished last year at approximately $33.0 million, $30.2 million and $28.5 million during2009, 2010 and 2011, respectively.The 2013 expense budget will followthis trend at $26M.Digital $ 10,000,000Broadcast $ 6,500,000Social Media $ 4,000,000Direct Marketing $ 2,000,000Newspaper $ 1,500,000Billboard $ 1,000,000Sponsorships $ 1,000,000Total $ 26,000,000 17
  18. 18. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012 IMC Allocations Consumer 24,750,000 Distribution Channel 12,000,000 Business-to- business 1,000,000 Total 37,750,000 2013 Dominos IMC Budget 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec4.3 Agency SelectionFor this campaign, Domino‘s will stick with the agency Crispin Porter + Bogusky (CP+B)who helped to orchestrate the ―Pizza Turnaround‖ forDomino‘s in 2009 as well as suggesting the recentdropping of the word Pizza from the logo.Specializing in making brands famous, turning brandsaround, and generating positive business results fortheir clients, CP+B works with other national andinternational accounts such as Old Navy, Microsoft Windows, IKEA, Arby‘s and more.The focus is on solving business challenges first, not making ads, and they have amedia-neutral creative approach with a particular strength in interactive.4.4 Internet StrategyDomino‘s has become an innovative brand in part because technology has helped todrive global growth. In 2011, they hosted a Global Domino‘s Day, where a 50% offcoupon was offered for all orders placed online in 20 countries around the world. The 18
  19. 19. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012U.S. has seen a 400% growth trajectory in the past 12 months in both Facebook andTwitter followers. During Cyber Monday week 2011, in the U.S., there were over amillion online orders, the best week for digital sales ever (Domino‘s Annual Report,2011).Domino‘s will always remember that what matters the most is high quality food thatconsumers love. However, technology will continue to push Domino‘s to the cuttingedge that provides an advantage over their competition.Domino‘s Pizza has revealed that its e-commerce function has helped deliver an 11percent increase in its total sales for the first half of 2012 (Nguyen, July 2012).The increase was a result of innovations in the digital platforms such as the company‘swebsite and mobile platforms. Increased investment in online marketing and socialmedia also helped. Focus will continue on further development of digital platforms."As technology continues to evolve, we will remain committed to offering the mostconvenient and efficient ways to order from Dominos," said Weiner (PR Newswire,June 2012).5.0 Consumer-oriented IMC Strategies (i.e. aimed at consumers)The objective for the consumer segment of the market is to reeducate people about howDomino‘s is no longer just pizza but so much more, including healthier options for thosewho place a high priority on eating healthier. To accomplish this Domino‘s will integratetraditional advertising with new media options that include digital and social media.Heavy emphasis will be placed on making sure the target audience not only knows thefood choices that Domino‘s offers but they feel they have been given a voice and asense of ownership regarding Domino‘s products via interaction with social media.5.1 Budget allocationThe 2013 consumer budget allocation will be $27.5 M. The 1.5M in fees to CrispinPorter + Bogusky (CP+B) will pay all agency and development fees. CP+B will developall advertisements and supporting communications.IMC AllocationsConsumer Advertising New Media/Digital and Social 10,000,000 Promotions and Sponsorships 4,000,000 Traditional Media 12,000,000Agency Fees 1,500,000Total 27,500,000Of the remaining $20.5 M all but 1M will be spent on traditional and new media as wellas promotions and events. 19
  20. 20. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20122013 Media BudgetNew Media/Digital $8,000,000Television $7,500,000Promotions $3,000,000Direct Marketing $2,000,000Social Media $2,000,000Newspaper $1,500,000Billboards $1,000,000Sponsorships $1,000,000 $26,000,000 5.2 Integrated Marketing CommunicationApproachesDomino‘s will implement a strong advertising campaign that will be linked to website and social media. The tagline ―It‘s good and good for you.‖ Willbe used to reinforce the idea that people do not have to sacrifice eating healthy to eat atDomino‘s.5.2.1 AdvertisingThe greatest percentage of the budget is allocated for new media/digital which includesadvertising online as well as maintenance and further development of‘s has become an innovative brand in part because technology has helped todrive interest in the website with ―Tracker‖ that keeps the consumer up to date on thestatus of their order from the moment its prepared to the second it leaves the store fordelivery. Mobile will continue to become an increasingly important part of the digital mixwith more smart phones and tablets permeating the national market.The increase was a result of innovations in the digital platforms such as the company‘swebsite and mobile platforms. Increased investment in online marketing and socialmedia also helped. Focus will continue on further development of digital platforms."As technology continues to evolve, we will remain committed to offering the mostconvenient and efficient ways to order from Dominos," said Weiner (PR Newswire,June 2012).Although social media expense is only 7.5% of the budget, it is an important and costeffective part of the media mix. In the last several years Domino‘s has wisely placed anemphasis on interaction with the consumer giving them a sense of ownership of thepizza process.Traditional media, although considered antiquated to some, will support and addfrequency of the message as it refers consumers to the website. With smart copy-writing and production, ads for television, newspaper, billboards, and direct marketingcan bring this campaign to the next level just as with the Old Spice campaign in 2010(Bertoldi, Aug. 2010). 20
  21. 21. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20125.2.1.1 Advertising GoalsIncreased awareness of new menu options will be followed by increased sales. ROIneeds to be proven for these attributes: Options for healthier pizza ingredients Additions of salads on the menu You do not have to sacrifice taste for healthy food You have choices ranging from great tasting traditional pizza to great tasting healthy pizza, subs, salads, etc. Creative BriefTarget Audience ProfilePrimary target: 18-25 year-olds.Also known as Millennials (born 1981-1993), this audience makes up the largestgeneration in the U.S. at 25%, according to data from the U.S. Census (Mintel, Aug.2012). Millennials are more diverse than the population overall with 41% Hispanic or non-white (Pew Research Center, Nov. 2011) Known as one of the most educated generations in American history (Jayson, 2010) Experiencing high rates of unemployment, but still upbeat (Pew Research Center, Nov. 2011) Households headed by young adults (24 and under) in the U.S. have the lowest median incomes of all age groups at $28,322 (Mintel, Nov. 2011) More than half of Millennials spend their food budget on takeout orders (, 2010) This age group has a tendency to want to spend on luxury but most who have established their own households have limited spending power in part due their need to purchase higher priced electronics. Millennials embrace multiple modes of self-expression via technology. Three- quarters have created a profile on a social networking site. One-in-five have posted a video of themselves online (Pew Research Center, Feb. 2010). Family is at the heart of most 18-24 year-olds‘ social circles and they are among the most social demographic segment in the U.S. This helps explain the popularity of free social networking sites such as Facebook among young adults (Mintel, Nov. 2012).By targeting this age group with value pricing, new phone apps, social media and otherforward thinking concepts there is hope to carry their pizza preference through theiradult years. In this age group, college and young adults, have a need for convenienceand value pricing.Secondary target: 25-54 year-olds. Many considered Gen X being born between 1965 and 1980 (Pew Research Center, Nov. 2011) 21
  22. 22. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012 In 2012, for the first time ever, one-third of the nation‘s 25- to 29-year-olds have completed at least a bachelor‘s degree (Pew Research Center, 2012) Households headed by adults in this age group in the U.S. have a range of median incomes of $50,000-$62,485 (Mintel Nov. 2011) with the income increasing with age. As this group ages and begins their families, the greatest concern becomes their children. (Mintel, September 2012). Since ‘09, sharp drop in financial satisfaction (Pew Research Center, Nov. 2011) Among the top health concerns is obesity; according to National Health and Nutrition Examination Survey, obesity rates have increased by nearly 60% among men and almost 40% among women. More than one-third of U.S. adults (35.7%) and approximately 17% (or 12.5 million) of children and adolescents aged 2—19 years are obese (, 2012).Communication ObjectivesThe objectives of this campaign are the have the target primary and secondaryaudiences: Think of Domino‘s as more than just pizza. o Choices include  Tasty, traditional pizza or wings  Healthier pizza with low-fat toppings and a variety of vegetables  Steaming pasta with a choice of sauce and toppings  Salad that can be built to their specific tastes  Decadent dessert to end the meal  And a choice of sides and beverages Feel the desire o For an easy, convenient, and fast meal that can be picked up or delivered in about ½ an hour. o To choose between or have a combination of healthy food or indulge in traditional pizza Do o Use their computer to order o Use their cell phone or tablet app to order o Call Domino‘s to order o Stop at a convenient location to orderProduct Features and BenefitsFeatures Delivery or carry-out Mobile apps available for mobile ordering Online website with Pizza Tracker for ordering Expanded menu; not only pizza. Have pasta, subs, wings, salad, and dessert. Lower fat options. Gluten-free options 22
  23. 23. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012 New recipes which include suggestions from consumersBenefits Feel good about choosing healthier food at a QSR No getting bored with the menu Expanded meal options for the growing population of people with gluten allergies. Convenience carry-out or have delivered where you are. Easy ordering options which include online, mobile, and by phone.Positioning of the ProductDomino‘s positioning for this campaign will keep focus on the convenient, healthy andnutritious aspects of the new ingredients and menu. By adding salads and healthier lowfat options for items such as meats and cheese, Domino‘s is showing their commitmentto deliver the best tasting and best for you meal in town.Healthy family eating has become more important in recent years as research studiessuch as this one from Michigan State University that indicates children whose parentseat unhealthy are likely to go on to adopt unhealthy eating habits of their own. Parentswho eat a healthy diet at home, instead, set the best example for children (Mintel, June2012). Families who eat a variety of foods such as those available at Domino‘s aredeveloping healthier habits for a lifetime.Another important aspect of Domino‘s positioning is the ability to use today‘s technologyto make ordering a meal convenient and easier than ever with digital apps for cellphones and tablets. Add to that a state of the art online system Pizza Tracker,technology that allows customers to watch their pizza being made to their specificationsand invites the consumer to watch it through the creation and delivery process.Domino‘s is committed to allowing the consumer to feel a sense of ownership by givingthem the ability to voice their opinions via email and social media. They will continue toinvite the consumer front and center with the brand and give them the power to affectpositive change.Key Consumer BenefitThe USP (unique selling proposition): Domino‘s solicits and cares about the customer‘sopinions enough to act on their suggestions and acknowledge their input.For example: Blowing up the old recipes and starting from scratch to create the tastiest possible pizza Adding variety to the menu with subs, pasta, salads, and dessert Having healthier alternative pizza toppings and saladsCreative StrategyThe ad we are presenting will be used in traditional television and digital video formats.Ancillary promotions across media platforms will be executed to support this main ad. 23
  24. 24. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012This strategy is designed to the reach primary and secondary audiences: 18-24 yearolds and 25-55 year olds. It will reflect the two audience segments as two generations ofthe same family. One, a college student ordering Domino‘s from his dorm room on aFriday night, using the mobile app; then Skyping his family while waiting for his deliveryof traditionally-prepared items, and seeing his parents and siblings enjoying theirhealthy Domino‘s dinner.This ad will position Domino‘s as the brand with options that fits the healthier lifestylesof today‘s consumers. There are consumers who want their pizza and related itemsprepared traditionally, and then there are those who are vegetarian. In between, arethose who are not vegetarian, but don‘t eat red meat or pork for a number of reasons.Additionally, consumers over age 45 deem healthy eating ―very important‖ (Mintel. May2009). Of importance to these consumers will be very tasty turkey versions ofpepperoni, ham, bacon, and Italian sausage.In quick service restaurants, turkey is a top-selling meat choice, because of the lower fatcontent, which many customers prefer (Wolf, 2012). For instance, a serving of Hormelbrand sliced pepperoni has 140 calories, 13 grams of fat and 4 times the saturated fatcontained in a serving of Hormel brand sliced turkey pepperoni, which has 70 caloriesand 6 grams of fat and 15 grams of saturated fat (Calorie Count, 2012). Domino‘s newTurkey Toppings for pizza, salad and pasta, will set the brand apart from other leadingpizza brands. The ads will also reflect menu options such as low-fat cheese.The ad will engage both audiences, showing them Domino‘s new healthier options, andthe traditional options demonstrating that Domino‘s has old and new menu options thatcan satisfy everyone‘s nutritional needs and tastes.ToneThis ad will be executed using emotion with light humor. This split-screen digital videoand traditional television ad will present Domino‘s traditional and health-conscious menuside-by-side and evoke feelings of connectedness between an on-campus collegestudent and his family; as, naturally, they miss each other.This tone will resonate with the two market segments targeted, as it presents Domino‘sas having options suitable for both groups, which are two generations of a family. Thead focuses on the contrast of items the college student orders in comparison to theitems his mother chooses to serve the family. This is the introduction of the newDomino‘s menu that‘s not just good, but good for you, presented alongside thetraditional menu that younger consumers want.Support StatementDomino‘s continues to be the leading QSR delivery brand and enhances its image withthe technology it offers, from mobile ordering to its proprietary online ordering with the 24
  25. 25. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Pizza Tracker. Dominos will still provide their top-level customer service and up the antewith greater nutritional value through a healthier menu – which is an extension ofservice positives that distinguish it from competitors not concerned with the opinions ofits consumer public.Slogan or Tagline“For Friday night with family or with friends, make it Domino’s: Good and good for you."Logo5.2.1.3 Advertising DesignCreative suggestions for video for TV commercial, online ad, YouTube, etc.Tone: Emotional with light humorFriday night at the dorm and family pizza night – split screen. College student Skypeshome from his laptop on a Friday night after ordering Domino‘s with the app on hisphone. Dad answers and turns the screen around to show the rest of the family at thedinner table. Family, consisting of younger brother and sister, having dinner fromDomino‘s. Kids and parents have a variety of foods like salad, pasta and pizza. Son atcollege says he‘s surprised Mom is letting Dad have pizza. Dad tells son its low-fatcheese with turkey pepperoni and lots of veggies. Son walks away from the laptop andanswers the door bringing in his Dominos pizza and a couple of additional deliveryboxes. As he opens the boxes showing a Bacon Cheeseburger Feast pizza, wings, anda Chocolate Lava cake, he tells Dad in a bit of a whisper not to be jealous becauseMom isn‘t on campus to keep him from having his usual. Mom comes into the screenand as she starts questioning his choices, he turns around the screen on his computer,smiles and starts to eat while you hear the Moms voice fading in the background. 25
  26. 26. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20125.2.2 Consumer PromotionsReaching the consumer segments targeted for this brand will involve promotions thatbring the new products, along with older, improved products to the public. This will beespecially useful in testing improvements to the boneless chicken recipe. Manycustomers complain about this product and are demanding the return of the previousChicken Kicker recipe (Domino‘s Pizza, LLC. 2012). These promotions offer theopportunity, to not only promote the products, but also test them and obtain feedback. Asurvey form or computer kiosk will be used to capture the responses. This will also bean opportunity to capture direct marketing opt-ins be requesting email addresses and/orTwitter or Pinterest handles.The promotions will be conducted on college and business campuses as well asshopping areas. Major events, such as auto shows, food fairs and other public events,i.e. sports, entertainment and holiday festivities, are also opportunities to connect withmultiple market segments. These types of locations will provide engagement with bothtarget segments of the audience.The promotions will executed by street teams that conduct the experiential marketing byproviding samples of the products in 5 locations in 20 U.S. cities, for a total of 100events to be conducted in a two-month period, during November and December.Because Domino‘s is a delivery QSR brand, a co-branded sweepstakes promotion witha Michigan-based automotive brand (possibly the Domino‘s fleet manufacturer) will alsokick off during the sampling promotion, with the incentive of bonus entries. This is aCRM opt-in strategy for both brands. 26
  27. 27. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20125.2.2.1 Consumer Promotion Selection and Budget AllocationThe consumer promotions strategy will target a cross-section of consumers that arebrand-loyal, promotion-prone, and price-sensitive. The budget for these promotions, thatinclude sampling, email marketing and social media, is 20%of the overall budget forconsumer strategies, or $5.9M. This includes production and manpower, as well asequipment and supplies. This promotion program will differ from the National PizzaMonth pan pizza sampling promotion in that it will bring the products to the consumers(QSR Magazine, 2012). The promotion will also involve strategies to gain feedback andobtain CRM permission. While Domino‘s is a well-known brand, it is still winningcustomers back (Domino‘s Pizza, Inc., Jackson and Feld, 2011). The tactics to be usedinclude: Sampling: As explained above, sampling will provide the opportunity to test, and garner feedback on, the lower fat recipes, ingredients and products, as well as engage new and returning customers. Price-offs: Price-offs will provide an incentive to customers who‘ve opted-in to permission marketing to receive a discount code to use when ordering any of the new lower fat recipes, ingredients and products. Coupons: Coupons will be attached to the boxes of all orders for discounts on the new lower fat recipes, ingredients and products. Contests and sweepstakes: The sweepstakes will celebrate the new Domino‘s vehicle created in the Dominos Ultimate Delivery Vehicle Project. It will also be promoted during the sampling promotion, the email marketing and at the point of purchase: on top of the pizza box with the coupons.All of these methods are designed to promote the new product selections, which are thefocus of the program. The engagement is interactive and will be attractive to the threetypes of consumers in both target audience segments. 41% of respondents to ForbesInsights‘ Social Media Interaction survey, say they enter brand-hosted contests orsweepstakes (2012). The traditional and non-traditional advertising will also publicizethese promotions.5.2.3 Personal SellingThe personal selling aspect of the program is the customer interaction opportunity in thestore. Restaurant employees will greet customers on the phone and in the store, askingthe customer if they would like to try the new healthy menu items, or telling thecustomer the items are now available. If there is an price-off promotion on these items,making them much less than the customer‘s original order, the potential for up- orsuggestive selling increases (QSR Magazine, 2010).5.2.4 Sponsorship and Event Programs 27
  28. 28. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012The sponsorship and events programs will focus on the local stores‘ visibility in thecommunity, domestically and abroad. The corporate headquarters will support this effortthrough their co-op initiatives. An incentive to the franchises can be offered in the formof credits used to reduce loyalty fees or co-op expenses. This will be an extension of thecorporate responsibility model set by the corporate headquarters. High school prom Pizza After Party sponsorship: Franchisees can sponsor high school proms and pizza ―after parties‖, where students from sponsored schools receive discounts on pizza they order for pick up within 24 hours of their prom, proven by showing their prom ticket to receive the in store discount. Domino‘s franchisees can also sponsor high school sporting and fine arts events, as well as local little league sports tournaments and other youth sports and activities, such as swimming and ice skating, hockey, soccer, etc.5.2.5 Database ProgramsThe database programs will continue the established methods where consumers opt-into receive email communication, as this a viable method of customer engagement.According to Forbes Insights‘ Social Media Interaction survey, of consumers askedwhich engagement methods they feel more connected using, the greatest percentage,41, indicated that they feel engaged with a brand when they sign up for special deals oremail updates (2012). The new products, and associated promotions, will be marketedto all customers in the database and the current staff overseeing these processes willcontinue their management. The data warehouse will provide the CRM data to be usedin all permission marketing efforts, such as email communication and text messages. Data WarehouseThe data warehouse will store customers‘ information according to the terms of useprovided on the e-commerce site. All information provided: email addresses, phonenumbers for text messaging and addresses for location-based targeting will becollected, stored and protected for permission marketing initiatives. Direct MarketingThe direct marketing programs will primarily occur point-of-sale with coupons and flyersdistributed on product packaging. Co-op field marketing efforts, such as door hangerpromotions, will also continue to be executed by the current direct marketing team. Permission MarketingPermission Marketing continues to be a major focus for this brand and will includeincentives for greater social media interaction in the ―good and good for you‖promotions. The data will be treated in the normal manner and used by the franchises ingeo-targeted engagement, as well as by the corporate headquarters for brand-widemarketing promotion engagement. 28
  29. 29. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Customers can sign up on Domino‘s website for email and text marketing can receiveinformation regarding promotions. Messages will also include invitations to engage withthe brand on Pinterest, Twitter, LinkedIn and Facebook. Periodic giveaways will alsotake place in the form of codes to be used for discounts or free products, from the newline, for randomly selected subscribers. This approach will attract customers, as shownby the 80% of consumers responding to the Forbes Insight survey who indicate thatthey ―read email alerts or updates on special deals from advertisers‖ (2012). Loyalty ProgramsLoyalty programs will be activated by consumers‘ online engagement with the brand. Itwill include the community formed by Twitter and Pinterest followers, Facebook ―Likers‖,and the email and text recipients. All of these customers are automatically enrolled inthe loyalty program, as they have the opportunity to be informed of promotions, of thenew products, that are influenced by or that influence purchase patterns. In Forbes‘Social Media Interaction survey, 80% of consumers say that they join membership orloyalty programs‖, indicating this is a strategy that would prove successful in engagingconsumers over time and subsequently, positively impacting sales (2012).5.2.6 Interactive and New MediaThese programs will be the product of the social media engagement platform, includingdigital. One of the strategies to be used will be ―Is it Good?‖ video reviews. Domino‘s willask all customers to upload images of their good for you items and give a video reviewto be placed with the product on Domino‘s site, and to their and/or Domino‘s, Pinterest,Facebook, Twitter, Instagram or Tumblr page (Tumblr, 2012). According o ForbesInsights, a total of 34% of consumers responded that they Tweet or post to a brand,follow the brand‘s tweets or posts and share the brand‘s Pinterest or Facebook content(2012).5.2.7 Other IMC MethodsOther IMC methods include traditional advertising, such as newspapers and billboardads advancing the ―good and good for you‖ message, emphasizing the new, healthyingredients and recipes. They will direct consumers to interact with the brand on itswebsite or other social media and opt-in to permission marketing for deals and nutritioninformation. Domino‘s mobile app will continue to figure prominently in engagement andpurchase sales for customers who prefer to use this technology.5.3 Media Plan & flow chart (includes all communication platforms)All media platforms to be employed, center around the television advertisement thatpromotes the ―good and good for you‖ concept to Domino‘s two audience segments.The ancillary programs all refer to the healthy food ad content. The healthy food recipeconcept is promoted through the other platforms. 29
  30. 30. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Promotions, events, sweepstakes and all other advertising will be done on a continuumwith increases focused around peak periods, such as the Thanksgiving, Christmas andNew Year‘s holidays, which are followed by the Super Bowl. The push will be necessarybecause of the need to capture market share during these peak pizza-ordering periods,where competitors will also experience sales uplift. Jan Feb March April May June July Aug. Sept. Oct. Nov. Dec. New Media/Digital Television Promotions Direct Marketing Social Media Newspaper Billboards Sponsorships5.4 IntegrationAs the following diagram illustrates, the various platforms are intended to be integratedwith the main ad as well with each other. The television ad will drive customers to onlineand CRM engagement; the permission marketing will market promotions and specials,including random rewards for selected customers. All of these, along with the directmarketing and personal selling, will focus on the new products and recipes, as well assponsorships and events geared toward family audiences. Traditional Media: Newspaper ads and Billboards Direct Social Marketing Media "Good and good for you" healthy menu TV ad Promotions, New Media and Digital Events, Swe epstakes Sponsorships 30
  31. 31. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 20125.5 Evaluation methodology (metrics and analytics)Because this plan is based on the combined effect of all aspects applied, ROIevaluation will follow a model that averages the $26M budget over 12 months. This costis $216.7K/month, and $6.5M for the quarter. The quarterly cost will be deducted fromthe quarterly revenue generated from the ―good and good for you‖ recipes and products.Order revenues from the new products will be analyzed to determine if they exceedsales from the current menu, and to determine the financial value added to the brand.All engagement metrics will be analyzed by CP+B working with in-house analysts todetermine the effectiveness of the methods on a weekly and monthly basis. Theseapproaches will produce the data that will determine if the following objectives are beingmet: Increase market share by 10 % Build brand loyalty in the 18-24 year old target audience engaging them in at least four social media campaigns designed to solicit input and participation. Through these initiatives, grow Facebook likes from 7.5M to 9M and increase total tweets mentioning Domino‘s by 10%. Using traditional media, drive consumers to the Domino‘s mobile apps and website to check menu items and order. Increase the number of orders being placed digitally from 48% to 60%. Back up the promises by delivering a great pizza that will increase satisfaction scores, with both internal surveys as well as those conducted via third party, by 15%.When it appears that the unit sales, revenue and engagement numbers are laggingbehind the desired goals, adjustments will be made to bring them in line with thespecified objectives. 31
  32. 32. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012ReferencesBarrett, L. (December 2012) PMQ Pizza Magazine - Pizza power report 2013. Retrievedon December 10, 2012 at, M. (August 2010). The key to Old Spice‘s social media Retrieved on November 25, 2012 at 2012 Pizzeria franchise business. Retrieved on November 2, 2012 atPlan Count. 2012. Calories in sliced turkey pepperoni. Retrieved November 15 at Count. 2012. Calories in pepperoni. Retrieved November 15 at for Disease Control and Prevention. 2012. Overweight and obesity facts.Retrieved on November 17, 2012 at Enterprises, LP. 2012. Bright slice program. Retrieved December 10, 2012 at Enterprises, LP. 2012. Franchise Fact sheet. Retrieved December 10, 2012 at, Porter & Bogusky. 2012. About us. Retrieved on November 8, 2012 on, UK. n.d. Retrieved on November 9, 2012 at Pizza, LLC. 2011. Dominos Pizza becomes first pizza delivery company towin back-to-back chain of the year honors from pizza today magazine. RetrievedNovember 23, 2012 at‘s Pizza, LLC. 2012. General menu. Retrieved December 9, 2012 at 32
  33. 33. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Domino‘s Pizza, LLC. 2012. See what people are saying about tate‘s chicken. RetrievedNovember 23, 2012 at 2012. Domino‘s around the world. Retrieved November 2, 2012 at‘s Investor Relations. 2011. Annual Report. Retrieved November 3, 2012 at com. n.d. Business orders. Retrieved on November 9, 2012 at com. n.d. Domino‘s business services – your business order made easy!.Retrieved on November 9, 2012 at com. 2008. Domino‘s Investor Relations – Corporate Profile. RetrievedNovember 8, 2012 at com. 2012. Domino‘s Investor Relations – Press-Press Release: Dominospizza® opens 10,000th Store! Retrieved November 8, 2012 at com. 2012. Domino‘s Investor Relations – Press-Press Release: Dominospizza unveils new logo, Store of the Future. Retrieved November 8, 2012 at com. 2012. Domino‘s Investor Relations – Press-Press Release: DominosPizza thanks digital customers with weeklong 50% off deal on all pizzas ordered onlineRetrieved November 9, 2012‘s Pizza. 2011. Global Momentum: Domino‘s Pizza Annual Report. RetrievedNovember 8, 2012 at‘s Pizza. 2010. Social commitment brochure. Retrieved November 9, 2012 at 2012. FORBES INSIGHTS, Marketing and Sales - The new rules ofengagement: measuring the power of social currency. Retrieved November 23, 2012 at 33
  34. 34. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Giandelone, E. 2011. Mintel – Pizza restaurants – US – December 2011. RetrievedDecember 9, 2012 at, E. 2011. Mintel – Pizza restaurants – US – December 2011. Brandanalysis. Retrieved December 9, 2012 at, E. 2011. Mintel – Pizza restaurants – US – December 2011. MarketingStrategies. Retrieved December 9, 2012 at, A. and Feld, A. 2011. Bloomberg Businessweek, Bloomberg News - Domino‘s‗brutally honest‘ ads offset slow consumer spending. Retrieved November 23, 2012 at Caesar Enterprises, Inc. 2012. Pizza and products menu. Retrieved December 9,2012 at (May 2009). Attitudes towards food: weight and diet - US - May 2009.healthy eating perceptions. Retrieved November 15 at (December 2011). Attitudes toward pizza restaurants – US. Retrieved onDecember 11, 2012 at (June 2012). Setting example is most effective way to get kids eating healthily.Retrieved on November 12, 2012 at EMU Library.Mintel. (August 2012) Pizza UK, august 2012. Retrieved on November 3, 2012 at (August 2012). Marketing to Millennials – US. Demographic Characteristics.Retrieved on November 12, 2012 at EMU Library.Mintel. (September 2012). Quick service restaurants – US – September 2012. Retrievedon October 30, 2012 at (November 2011). Social Dynamics of 18-24-year-olds – US. Retrieved onNovember 14, 2012 at EMU Library.Morrison, M. (August 14, 2012) Dominos revamping stores, drops pizza from Retrieved November 8, 2012 at 34
  35. 35. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Nguyen, A. (July 27, 2012) Dominos pizza hits unprecedented $1 billion In U.S. digitalsales In one year, thanking customers with week-long 50% off pizza online offer.Computerworld, UK. Retrieved on November 9, 2012 at, S. (August 2012). The QSR 50 Pizza/Pasta SegmentThe top pizza and pasta brands in quick service. Retrieved December 8, 2012 at Johns International, Inc. 2012. Papa Johns 10 Miler. Retrieved December 8, 2012 at Johns International, Inc. 2012. Papa Johns Non-profit charity involvement.Retrieved December 8, 2012 at Johns International, Inc. 2012. Welcome to Papa John‘s online ordering menu.Retrieved December 8, 2012 at Hut, Inc. 2012. Pizza Hut. Retrieved December 9, 2012 at (January 16, 2012) Restaurant industry‘s 2012 trends shaped bydemographics nutrition. Retrieved on November 1, 2012 at (October 25, 2012) Gluten-free market jumps 28 percent in fouryears. Retrieved on November 1, 2012 at (October 31, 2012) Restaurant consumers increasinglyinterested in technology. Retrieved on November 3, 2012 at (October 23, 2012) Pie Five Co. introduces gluten-free crust.Retrieved on November 2, 2012 at Newswire. 2012. The Street. Dominos Pizza reinventing itself on the road, askingconsumers to help design the ultimate delivery vehicle. Retrieved November 23, 2012 at 35
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  37. 37. Kelle Fraser IMC 631 Domino‘s IMC CampaignMichelle Merritt December 12, 2012Exhibit 1 Pizza/Pasta SegmentSEGMENT 2011 U.S. SYSTEMWIDE 2011 U.S. AVERAGE SALES PER NUMBER OF TOTAL TOTAL CHANGE INRANK COMPANY/CHAIN NAME SALES (MILLIONS) UNIT (THOUSANDS) UNITS IN 2011 UNITS FROM 2010 1 Pizza Hut $5,500.0 $875.0 7,600 58 * 2 Domino‘s Pizza $3,437.9 $679.0 4,907 -22 3 Papa John‘s $2,213.6 $786.0 3,001 130 4 Little Caesars* $1,480.0 $465.0 3,518 305 5 Papa Murphy‘s $695.9 $559.5 1,283 42 6 CiCi‘s Pizza $516.0 $895.4 573 -21 7 Sbarro $420.0 $690.0 611 -70Exhibit 2 37