Rmiller 616 w9

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This is my final presentation for WVU IMC 616.

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Rmiller 616 w9

  1. 1. DIRECT MARKETING IMC 616Writing Assignment: Week 9 Domino’s PIZZA Proposal Ron J. MillerWest Virginia University
  2. 2. TOTAL COST COVERED IN THIS PROPOSAL $149,106Facility Improvements $ 7,500 The Lantern $ 6,500 Mobile Coupon $ 2,000 Small Buy Advertising $ 10,000 Direct Mail $ 51,960 Social Media $ 25,000 Local Sponsorships $ 25,000 Groupon Promotion $ 21,146 MAY 12, 2014 rmiller_616_w9.pdf 2 Cover photo credit: Matt Gray https://www.flickr.com/photos/rrazor/67533119
  3. 3. MAY 12, 2014 rmiller_616_w9.pdf 3 CONTENTS Total Cost. . . . . . . . . . . . . . . . . . . . 2 Introduction . . . . . . . . . . . . . . . . . 4 Before We Begin. . . . . . . . . . . . . . 5 Strategy 1 . . . . . . . . . . . . . . . . . . . 6 Strategy 2. . . . . . . . . . . . . . . . . . . . 8 Use Data. . . . . . . . . . . . . . . . . . . . 10 Groupon Test. . . . . . . . . . . . . . . . 15 The bibliography for this presentation may be found in the accompanying proposal document.
  4. 4. MAY 12, 2014 rmiller_616_w9.pdf 4 INTRODUCTION • Domino’s 2013 sales: $6.9B • Second largest pizza chain in America • Sells 400MM slices of pizza annually, worldwide • Delivers 1MM pizzas per day Columbus, Ohio • 2013 Population: 809,000 • Home to The Ohio State University • Home to 2 corporate owned Domino’s stores and 13 franchise stores (owned by Buckeye Domino’s, a subsidiary of GT Pizza, Inc.)
  5. 5. The fifteen Domino’s locations in Central Ohio are mostly located in out-of-the-way places. The facilities lack any decoration and not suited for having many people waiting for pizzas to be made. $7,500 worth of improvements are needed to prepare the facilities for the test. This money will be spent to make the necessary signage, lighting, and seating improvements to the fifteen locations. BEFORE WE BEGIN MAY 12, 2014 rmiller_616_w9.pdf 5 Photo credit: Google Maps
  6. 6. MAY 12, 2014 rmiller_616_w9.pdf 6 STRATEGY 1 TARGET: 18-24 YEAR OLDS The Offer: 2 Sandwiches for $7.99. Carryout only. The Lantern Student newspaper for The Ohio State University. • Free-standing insert • 5 placements with coupon Mobile coupon Distributed through social media: • Facebook • Instagram • Twitter Small-buy public advertising (guerilla marketing) • Posters on OSU campus • Sidewalk art • Guy with spinning sign • Street advertising
  7. 7. MAY 12, 2014 rmiller_616_w9.pdf 7 STRATEGY 1 MEASURE THE RESULTS All three tests will share the same measurement process. Domino’s uses Domino’s Pulse for their Point of Sale (POS) system. With it, we will track coupon redemption. We will then use Webtrends software to track social media distribution and reach. Webtrends will also analyze the data to identify how well we hit our 18-24 year old target market.
  8. 8. MAY 12, 2014 rmiller_616_w9.pdf 8 STRATEGY 2 HOUSEHOLDS WITH KIDS The Offer: Choose any 2 or more: medium 2-topping pizza, Specialty Chicken, Oven Baked Sandwich, Stuffed Cheesy Bread, 8-piece chicken, or Pasta in a Dish for $5.99 each. Carryout only. Direct mail • 9” x 6” postcard. • Sent to 96,000 households that have kids Facebook promotions • Audience building • Post Promotion • Facebook Ads Local sponsorships Examples include: • Center or Science and Industry: Sponsor Kid’s Days • Circle S Farm Hayrides: Host booth • Zoombezi Bay: Ad on back of ticket Photo credit: Sowonderful https://www.flickr.com/photos/sowenderful/4380057222
  9. 9. MAY 12, 2014 rmiller_616_w9.pdf 9 STRATEGY 2 MEASURE THE RESULTS Facebook promotions Measuring the impact of this program will require multiple tools. We will use Facebook’s analytics to measure reach and view rates. That information will be integrated with the Domino’s Pulse POS data and analyzed. Direct mail Domino’s will use their Domino’s Pulse POS system to track coupon redemption. We will use Webtrends to analyze the data and identify how well we hit our households with kids target market. Local sponsorships Each event will be coded and data captured in the Domino’s Pulse POS. Some redemption may require the customer to just say where they saw the offer.
  10. 10. MAY 12, 2014 rmiller_616_w9.pdf 10 USE DATA TO INCREASE SALES MARKET SHARE Loyalty program “Consumer-facing businesses must think beyond the concept of a me-too, points-based loyalty program.” (Nideau, 2014) At every touch point, customers provide a unique identifier such as email address, phone number or credit card. We will use the database to track purchase history. Identifying top customers and reward them with perks.
  11. 11. MAY 12, 2014 rmiller_616_w9.pdf 11 USE DATA TO INCREASE SALES MARKET SHARE Better data analysis Getting to the heart of what problems we want to solve is fundamental to good marketing. Domino’s can develop more specific personas and pain targeting. This will affect advertising messages, promotional offers, menu items, cross-selling, hours of operation or just about any other aspect of the business.
  12. 12. MAY 12, 2014 rmiller_616_w9.pdf 12 USE DATA TO INCREASE SALES MARKET SHARE Remarketing “A powerful way to stay engaged with your target audience. Presenting them with highly relevant ads and offers across the Web.” (Google Ads, n.d.) Domino’s can place a cookie in visitor’s browser that will communicate with other websites the customer visits. Through a partnership with a third-party such as DoubleClick or Google, websites the customer visits may display highly targeted Domino’s ads.
  13. 13. MAY 12, 2014 rmiller_616_w9.pdf 13 USE DATA TO INCREASE SALES MARKET SHARE Website Design “Intuitive design is how we give the user new superpowers.” Jared Spool (Goodreads, n.d.) Website offers, copy, photography, color, typeface, layout, navigation and messaging are all created as a result of testing. Companies constantly tweak their website based on customer data: data that is collected through visitor interaction with the site.
  14. 14. MAY 12, 2014 rmiller_616_w9.pdf 14 USE DATA TO INCREASE SALES MARKET SHARE Store Development In retail, the three most important decisions you’ll make are location, location and location. Identifying where customers are and how they get to stores is a big advantage when it comes to locating new stores. The business owner doesn’t have to guess any more, on whether a location is good. Photo credit: Domino’s Pizza
  15. 15. MAY 12, 2014 rmiller_616_w9.pdf 15 Photo credit: Groupon Events https://www.flickr.com/photos/ grouponcorporate/5794091504 GROUPON TEST Groupon charges the business 50% of the Groupon sale price. A Groupon that is worth $40 worth of product costs the customer $20, but Groupon keeps $10 of that. Groupons are likely to cause two spikes in traffic for the business. The first happens when the offer is released. The second will come just prior to its expiration. Businesses must be aware, and prepare for these increases.
  16. 16. MAY 12, 2014 rmiller_616_w9.pdf 16 GROUPON TEST OFFER • $20 for $40 worth of food. • Carryout only. • Must be used in a single visit • Expires December 8, 2014. Offers of this type are the most successful on Groupon. For the consumer, it doesn’t limit their menu choices. For the business, it’s usually impossible for the customer to land exactly on the dollar amount: either dollars go unused or the customer exceeds the offer amount. Either way it benefits the business. This offer is limited to carryout, so it will not impact the delivery business.
  17. 17. MAY 12, 2014 rmiller_616_w9.pdf 17 GROUPON TEST KEYS TO SUCCESS • Staff will be trained to welcome Groupon customers with special recognition. • We will include a complimentary sample of CinnaStix with every order. • Employees will cheerfully hold the door and help the customers to their car, if needed. • Staff training will include how to make suggestions to customers, encouraging them to get a high-margin salad, soda, breadsticks and/or dessert. • Domino’s Pulse POS will capture credit card data from the customers to identify if they are already in the database. • While they wait, customers can enter their name and email address on a form to receive a coupon for their next visit.

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