Domino's 2013 IMC Campaign Promotes Healthy Options

2013 Domino’s IMC Campaign
Good & good for you!

Kelle Fraser
Michelle Merritt
IMC 631
December 12, 2012

12/12/12 1

Kelle Fraser IMC 631 Domino‘s IMC Campaign
Michelle Merritt December 12, 2012

Table of Contents

1.0 Executive Summary
2.0 Marketing Opportunity Analysis
2.1 Communications Market Analysis
2.1.1 Competitive Analysis
2.1.2 Opportunity Analysis
2.1.3 Target Market Analysis
2.1.4. Customer Analysis
2.2 Market Segmentation Strategy

3.0 Corporate Strategies
3.1 Corporate Image Strategy
3.2 Brand Development Strategy
3.3 Brand Positioning Strategy
3.4 Distribution Strategy
3.5 Business-to-Business Strategy
3.6 Public Relations Strategy
3.7 Evaluation

4.0 Integrated Marketing Communications Management
4.1 Overall IMC Objectives
4.2 Total IMC Budget
4.3 Agency Selection
4.4 Internet Strategy

5.0 Consumer-oriented IMC Strategies (i.e. aimed at consumers)
5.1 Budget allocation
5.2 Integrated Marketing Communication Approaches
5.2.1 Advertising
5.2.1.1 Advertising Goals
5.2.1.2 Creative Brief
5.2.1.2.1 Target Audience Profile
5.2.1.2.2 Communication Objectives
5.2.1.2.3 Key Consumer Benefit
5.2.1.2.4 Creative Strategy
5.2.1.3 Advertising Design
5.2.2 Consumer Promotions
5.2.2.1 Consumer Promotion Selection and Budget Allocation
5.2.3 Personal Selling
5.2.4 Sponsorship and Event Programs
5.2.5 Database Programs
5.2.5.1 Data Warehouse
5.2.5.2 Direct Marketing
5.2.5.3 Permission Marketing

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5.2.5.4 Loyalty Programs
5.2.6 Interactive and New Media
5.2.7 Other IMC Methods
5.3 Media Plan & flow chart (includes all communication platforms)
5.4 Integration
5.5 Evaluation methodology (metrics and analytics)

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1.0 Executive Summary

The Domino‘s brand continues its ride on the cusp of its desired market share. It is our
goal to implement an integrated marketing communications plan that will help Domino‘s
in reaching that next level where it increases market share through expanded carry-out
business and concentrates more on the lunch daypart (Mintel, 2011). This plan, focused
on modifications to the Domino‘s product line, will aid in reaching those over-arching
goals for the brand. These product options have been developed because it has been
determined that a large share of the consumer market Domino‘s is positioned to attract
is 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 of
value pricing and adults, age 25-54, who seem more willing to try a wide range of menu
choices. Households with children, consisting of families that want ―meal deals, are also
targets of this campaign. Other groups consist of consumers, with annual household
incomes of $75K-$150K, who are regular pizza purchasers, as well as those who have
switched from full-service restaurants to a QSR segment that offers a seemingly
irresistible value.

The goals of this plan include the development of strategies that continue the evolution
of 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-traditional
marketing and advertising methods that center around a television ad directed at the
two target demographic groups. These methods include:

Digital Newspaper
Broadcast Billboard
Social Media Sponsorships
Direct Marketing CRM

The total budget, for the 9-12-month schedule, is $26, which is consistent with the
current expenditure level for marketing activities for the brand. ROI will be evaluated
month-by-month by revenue earned from the new products. It is expected that brand
and product awareness goals will be achieved at a level sufficient to achieve the desired
outcomes and where there is any shortfall, the plan provides for appropriate and timely
adjustment.

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2.0 Marketing Opportunity Analysis

During the past five years quick service restaurant sales have increased 15%, and are
set to increase 22% between 2012 and 2017 (Mintel, 2012). This growth in the quick
service restaurant category is reflected in Domino‘s advertising and promotions. As the
economy dictates a growing need for value-priced food options, Domino‘s has
capitalized on this trend. Domino‘s has made use of marketing opportunities with users
of all media, with its campaign focused on the improvement of their pizza product. In
2010, the brand claimed a 19.8% market share, based on reported U. S. consumer
spending (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 pizza
company in the United States; the introduction of Buffalo Wings in 1994, and the launch
of the www.dominos.com website in 1996. Domino‘s became the official pizza of
NASCAR in 2003 and entered the corporate social responsibility arena in 2004, with a
three-year partnership with St. Jude‘s Children‘s Research Hospital. In 2007, Domino‘s
introduced online and mobile ordering. These milestones represent Domino‘s agility in
transformation and adaptability to the changing times in the application of a number of
marketing tactics (Dominosbiz.com, 2012).

2.1 Communications Market Analysis

Domino‘s customers access traditional media and television ads continue to serve the
brand successfully. A recent television and Facebook campaign focuses on online and
mobile ordering, giving customers a 50-percent discount (Alfs, 2012). This shows that
traditional 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 audience
segments targeted will respond as this is congruent with their behaviors. It is also noted
that the brand has strong social media presence that can be expanded upon. For
instance, the corporation does not have Pinterest boards, but several stores do, such as
one in Ann Arbor, Michigan (See Exhibit 1). The corporate brand is currently active on
Facebook, Twitter, Google Plus and its mobile site.

One co-branding opportunity the brand has explored is the partnership with America‘s
Dairy Farmers ingredient brand (Dominosbiz.com. n.d.). Another is their Oreo Cookie
dessert pizza. This is also a brand expansion opportunity as a component of Domino‘s
American Legends Specialty Pizza line (Dominosbiz.com. n.d.). The most recent
sponsorship with the NCAA March Madness is comprised of being the official pizza
through 2013, and is an example of event marketing as well. More partnerships of this
type will allow the brand to engage its Millennial audience, as well as their family
members, 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 include
consumers interested in varied menu options (Mintel, September 2012), such as those

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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 Items
Domino’s Little Caesar‘s Public - $3,4000,000ǂ 394 - 4,513 / 51 † Pizza, pasta, Domino‘s Pizza
Papa John's (NYSE: DPZ)† (20% delivery boneless chicken, Supply Chain
Pizza Hut† market share)† wings, sandwiches,
breads and desserts
Little Caesars Domino's Subsidiary $1,480,000ǂ 3,518‡ - / 51 Pizza, sandwiches, Blue Line Food
Papa John's wings, breads, Service Distribution
Pizza Hut (Secondary: desserts and (Little Caesars-
CiCi‘s, Sbarro)† vegetarian options owned)
Papa John’s Domino's 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 desserts
Pizza Hut Domino's 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 John's share)† pasta and desserts YUM! Brands, Inc.)
Sbarro Noble Roman's, 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 Domino's 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 John's 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.

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None of these competitors offer any lower calorie or fat cheese or meat options, making
the changes to Domino‘s menu a desirable strategy for capturing more health-conscious
patrons. This approach positions Domino‘s to capture women desiring healthier
toppings on pizza as well as higher-―income earners, with an annual household income
of $100K-$149.9K‖ (Giandelone, 2011).

School Nutrition Programs
Other healthy product options offered by pizza companies focus on catering to schools.
One such endeavor is Cici Enterprises‘ Bright Slice School Catering Program. It is
similar 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 with
the nutrition standards. Domino‘s ancillary focus is on a ―loyalty program that gives back
to‖ the ―district by providing equipment for schools, kitchens, and sports‖. CiCi‘s
program provides learning resources for teachers and students on their website.

Promotion Strategies
One 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 of
Italy Tour‖ introduced their all-natural Neapolitan-style recipe and coincided with a 360-
degree ―experiential, in-store, public relations and social media‖ campaign. They
included a social responsibility component addressing the hunger crisis by drawing
attention to food banks as well attracting fans to their recently-launched Facebook page
as their introduction to the social media space.

Sponsorships and Social Responsibility
All 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 brand
not 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, Junior
Achievement and hosts a 10 Mile race to benefit the WHAS-TV Crusade for Children
with special needs, and the University of Louisville among other local regional and
national causes. Papa John‘s is also a sponsor of the NFL in Canada, Mexico and the
UK 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 organization
that assists at-risk children. Pizza Hut‘s Slices of Hope benefits World Hunger Relief
and this year, the brand celebrated the 28th year of its BOOK IT reading incentive
program.

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Little Caesars offers a Veterans Program that supports U.S. Armed Forces veterans in
opening Little Caesars franchises. The brand also funds the Little Caesars Love Kitchen
that has traveled and fed more than two million people in 48 states and 4 Canadian
provinces. Like Domino‘s, the brand has responded to the gulf coast flood as well as
other disasters. The brand, which also offers a hockey scholarship, is the 2013 PMQ
Pizza Industry Enterprise award winner (Barrett, 2012).

Advertising
Domino‘s achieved three goals with its television advertising in 2011. The Pizza Tracker
technology was introduced and conveyed a personalized, caring approach to having
orders completed by caring, committed crew members who take pride in the positive
feedback they receive after a customer expresses their satisfaction with their order. The
ad effectively educated consumers about the technology and enhanced their
transparency and quality message. Second was the value and engagement aspect of
this ad that offered a $5.99 online deal for two medium, two-topping pizzas that
customers were encouraged to take advantage of and then review the store‘s
performance. The third ad campaign focused on the new Artisan Pizzas and used
professional chef Fabio Viviani from Bravo TV Network‘s Top Chef reality show in a
supposed comedic role. Mintel indicated that the ad missed the mark as Viviani was not
part of the line‘s development, nor did Domino‘s focus adequately on the artisan
concept – a huge coup for a national chain (Mintel, 2011).

In Mintel‘s Pizza Restaurants - US - December 2011 report, Pizza Hut, CiCi‘s, and Little
Caesars were Domino‘s competitors in significant television advertising initiatives. Pizza
Hut‘s main goal was to convey its value message with the introduction of the Big Dinner
Box. 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, working
mothers 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 after
dinner. The ad was missed the opportunity to point out how, in addition to the
convenience, the buffet saves time and provides enough variety to satisfy the entire
family in a dine-in setting (Mintel, 2011).

Little Caesars Hot-N-Ready ad intended to convey that consumers save money when
they save time, or save time and money. Mintel indicates that the ad was effective in
communicating the time-saving premise, but missed the mark on clarity about saving
money. The pizza‘s price appears in the ―in the upper corner for a short time with the
message that the Hot-N-Ready pizzas are $5—an obvious deal that viewers must
realize on their own, since the announcer does not mention the price‖ (Mintel, 2011).

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Audience engagement in the Digital and Social Media Spaces
Audience engagement through digital platforms is shared by all of Domino‘s
competitors. Domino‘s Pizza Hut and Papa John‘s lead the category with smartphone
apps. Domino‘s was the second brand in this category to enter the mobile app space
with iPhone and iPod Touch apps. It followed Pizza Hut‘s iPhone and iPad app
development. Pizza Hut has recorded 5 million downloads. Domino‘s charted $1 million
in sales in one week as part of its 30% in orders coming from this source. Papa John‘s
iPhone app performs all of its website functions and ties into its Papa Points loyalty
program (Mintel, 2011).

Social media has played a significant role in audience engagement on Facebook and
Twitter. Pizza Hut has received 7.5 million ―likes‖ on Facebook, well as achieved
significant success with on-page coupon promotions for the Big Dinner Box. Over 1,800
users liked the post. In another Facebook campaign, they promoted the Lovers pizza
line 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 also
ranked 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 refer
to exhibit 2.

2.1.2 Opportunity Analysis

Domino‘s claimed nearly 20% market share in 2010, based on reported U. S. consumer
spending (Mintel, 2011), the same year it celebrated its 50th anniversary. This In 2010,
Domino‘s celebrated fifty years in business. The market segmentation included here
shows the continued viability of the direction of expanding its social media, digital,
mobile and online presence. Additionally, opportunities for product placement in films
and television shows create additional opportunities as household‘s media intake
warrants this effort.

2.1.3 Target Market Analysis

Adults age 18-24
By targeting this age group with value pricing, new phone apps, and other forward
thinking 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 value
pricing.

Adults 25-54
Consumers aged 25-34 make up one of the most dedicated QSR consumers, and apart
from the population of those aged 55+, is the age group projected to have the greatest
growth through 2017. As they age from young adults to parents, the needs of their
children become of the greatest concern. They also are seemingly more willing and
eager to try a wide range of menu choices from the restaurants they frequent (Mintel,
September 2012).

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"Millennials will overtake Baby Boomers as the most sought-after target for
restaurateurs in the coming years," said Bonnie Riggs, NPD restaurant industry analyst.
"This is the time to reach them to build their loyalty. It's important to understand that
Millennials are not a one-size-fits-all generation and their needs and wants are varied"
(PizzaMarketPlace.com, January 2012).

2.1.4. Customer Analysis

Age
Almost everyone eats pizza and a December 2011 Mintel Research study showed that
76% of age 18-44 year olds had eaten pizza at a pizza restaurant during the month of
November 2011. The percentage dropped to 68% when including the 45+ survey
respondents. In fact, the youngest adults, aged 18-24, are the most likely to have eaten
value priced pizza whereas aged 25-34 are frequenting eight of the top 10 most-visited
pizza restaurants. As far as the middle-ages segment, 55+, are more likely than their
younger counterparts to suffer from more health conditions and therefore more of them
may have to refrain from eating processed foods high in fat, calories, and sodium and
those perceived as junk food.

Speaking of healthy alternatives, those aged 18-24 do not really care if the pizza they
order is healthy. According to the Mintel Healthy Living—U.S. report in July 2011, this
age group were 30% more likely to agree with the statement ―I pretty much eat
whatever I want and don‘t worry about fat/calories/etc.‖

Households with Children
As households with one or two children were 11% more likely than average to have
visited a pizza restaurant and purchased pizza in the past month at 79%. These families
take advantage of the value in ―family meal deals‖ and other meals designed for family
dining. Households with three or more children are the most likely to have gotten pizza
from a grocery store than from any of the 10 most-visited pizza restaurants.

Income
By income and household size, those with annual household incomes of $75K-$150K
the most likely to have gotten pizza at a pizza restaurant, particularly the independent
gourmet pizza restaurants, such as California Pizza Kitchen, and Papa Murphy‘s.

Buyer Behavior
Like many other QSR‘s, pizza was impacted during the recession and subsequent
years. Focusing on value, the industry kept consumers coming back but that could
change unless they take seriously the constant threat from competing companies that
have driven the QSR industry to rebrand itself and provide more upscale and healthier
menu choices (Mintel, September 2012).

During the last several years, consumers switched from full-service restaurants to a
QSR segment presenting a seemingly irresistible value. Pulling away from these low
prices has been a challenge for many and on top of that consumers are now looking for

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new menu items with upscale ingredients. ―Value prices can be value portions, and
customers can be better enticed to spend more by convincing them with opportunities
for sampling new menu items via the value menus they have grown to expect‖ (Mintel,
September 2012).

2.2 Market Segmentation Strategy

Understanding 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 18-24
year olds who live on pennies a month, 25-54 year olds who try to feed a family healthy
alternatives, and digital evolved people who can do just about anything on their smart
phone.

Health Conscious Parents
Healthy pizza becomes more important as the consumer ages. In fact, 25-34‘s are the
most likely to indicate an interest in healthier toppings, healthier cheese and healthier
crust options on pizza (Mintel, December 2011). They also indicate the greatest
likelihood of limiting the amount of pizza they eat because it has too much fat. As
Dominoes focuses on customer‘s needs, the continual redefining of pizza will be of
utmost importance. Low fat, whole wheat, and gluten free crusts are just some of
healthier alternative‘s to be considered.

Children's meals have been the focus of FTC legislation and various health advocacy
groups during the past few years and that focus is expected to continue. Continuous
pressure is being applied to restaurant operators to improve the healthfulness of kid‘s
meals. 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, regular
size burgers, and fried chicken, according to NPD's Crest service, which continually
tracks consumer usage of restaurants. (PizzaMarketPlace.com, October 2012).

Menu expansion: Aside from offering more healthful pizzas, expanding the salad
selections could appease health-conscious parents. Many operators are already in tune
with this, as salads on pizza restaurant menus have increased 10% in the past three
years, according to the Menu Insights Analysis—The Pizza Restaurant Menu section. In
addition, other menu enhancements that involve cheese, vegetables, and meat will not
only evolve but use as many locally grown or produced ingredients as possible.
(PizzaToday.com, 2012)

Gluten Free: In the last few years many consumers have made a choice to reduce their
consumption of gluten, a protein composite found in food processed from wheat, rye
and barley. An August 2012 consumer survey by Packaged Facts shows that 18% of
adults are buying or consuming food products tagged as gluten-free, up from 15% in
October 2010. Additionally, the share of gluten-free consumers who are buying more of
these foods has skyrocketed, and the share of total shoppers who are buying more
gluten-free foods has doubled (PizzaMarketPlace.com, October 2012).

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Technology Seekers
Today, QSR‘s are always looking for the latest solutions to help cut costs, provide better
and faster service, and build loyalty. According to a 2012 report from research firm
Technomic, technologies that enable them to self-order and pay, receive coupons or
special offers via email or text message, have nearly 58% of respondents say they use
these 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 need
to evaluate the best use for the latest tech trends. It should complement and enhance
the restaurant experience for all age groups, which may mean having a printed menu
available, as well as an iPad/tablet" (PizzaMarketPlace.com, October 2012).

3.0 Corporate Strategies

To 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 Strategy

A corporate image influences customers either negatively or positively as they make
purchase decisions, so it is important to control your corporate image. Summarize what
your company "stands for" and what you want your customers to believe about your
company.

The corporate goal for Domino‘s Pizza is to become the industry leader in sales by
targeting it‘s message to its primary market segment: 18-24 year olds who are prone to
consume pizza and related products extensively and its secondary market segment of
25-55 year olds who are continuously looking for more choices that include expanded
and healthier options for their families.

The corporate image Domino‘s will present is one of quality, healthier prepared food, for
the budget-conscious consumer, that can obtained be quickly and easily. This is in line
with the pricing structure, the ordering platforms and the menu offerings.

Domino‘s is equipped with new approaches to food quality and flavor; including
improved recipes and ingredients. It respects its customers, listens to their opinions,
and gives them what they want in terms of flavor, quality and variety.

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3.2 Brand Development Strategy

Domino‘s Pizza acquired its name in 1965, five years after Tom and James Monaghan
purchased the Ypsilanti, Michigan pizzeria named Domi-Nick‘s – which was probably a
combination of the names of the sellers. Tom became the sole owner a year after the
purchase, and made the name-change decision; and the logo is an illustration of the
name. Domino‘s has enjoyed years of name brand recognition (Dominosbiz.com, 2008),
and recently modified its logo by removing the name (Dominosbiz.com, 2012). All new
stores, 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 than
pizza, this change was warranted (Morrison, 2012). Domino‘s is traded on the NYSE as
DPZ.

3.3 Brand Positioning Strategy

Domino‘s target market includes consumers with the need for convenient food that is
healthy and nutritious. Pizza and other quick service pizza-related foods – sandwiches
and appetizers - are typically purchased by consumers who seek a quality, hot meal
that 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 Papa
John‘s, who is the third highest seller.

Domino‘s menu has more pizza and pasta options than Pizza Hut; and Papa John‘s
specialty pizzas rival, but are far fewer than Domino‘s. Domino‘s also offers the ability to
build your pasta, wings or pizza. Pizza hut offers twice as many wing options as
Domino‘s and Papa John‘s has the least options. Domino‘s is the clear leader for the
main product menu option, offering more pizzas. Domino‘s appetizer menu selection is
also more extensive.

Domino‘s is unique in that it offers a Pizza Tracker: technology that allows customers to
watch their pizza being made to their specifications. Domino‘s also has the Legends
and Artisan lines, that are elevated, gourmet-style options. These more extensive menu
options give Domino‘s a slight edge over competitors. It is necessary for Domino‘s to
continue offering options that competitors do not have. While Domino‘s has a goal of
superior service, it must out-innovate the completion in the product area. A healthier
menu would address this need, as many consumers, across age segments, would like
this option.

Regarding how customers perceive Domino‘s, the biggest problem for the brand to
overcome is the challenge of re-capturing customers that it lost prior to making their
improvements. It appears, based on Pizza Hut‘s increase in openings and Domino‘s
closures, that many have gone to Pizza Hut and haven‘t returned (Oches, 2012). This
shows that there are customers who still see the brand as inferior and are not willing to
make the switch back. Customers also no longer see Domino‘s as the only delivery
brand, because both Pizza Hut and Papa John‘s provide delivery in many areas

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(McLellan, 2012). Differentiation in products and customer engagement is key for the
brand at this juncture.

3.4 Distribution Strategy

Domino‘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 (Dominosbiz.com, 2012). Not only is Domino‘s in the business of delivering the
prepared product to consumers, it manages its own ingredient supply chain to support
the 5,000 domestic stores. The main partner in the B2B distribution strategy are the
franchises.

Customers, visiting a company-owned or franchise store, receive product from those
locations, either by delivery or by in-store pick up. They are able to place their orders by
phone from their preferred location; or in an e-commerce environment, through the
mobile website, the product website, or an iPhone, Android, Kindle Fire or Spanish
language mobile app. The Pizza Tracker technology – which allows customers to follow
the making of their pizza, is available both online and on the mobile site
(Dominosbiz.com, 2012) and distinguishes Domino‘s from their competitors. This
feature is also a useful engagement tool for the target market segment of 18-24 year
olds who are major technology users. All e-commerce platforms provide convenience
and efficiency that busy, sophisticated consumers appreciate. Email, text and phone
offers 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 site
ordering, email and text offers, as well as mobile apps on several operating system and
device platforms. Papa John‘s, Little Caesar‘s and Pizza Hut also serve customers in
the store as well. Little Caesars does not have any e-commerce applications, only has
store-based ordering and an iPhone app that does not support e-commerce.

3.5 Business-to-Business Strategy

At times communication can be weak with the independent Domino‘s franchises. In an
effort to ensure up-to-date communication an intranet site with access to all Domino‘s
stores will be enhanced to include corporate information and directives, template
marketing materials and national ad campaign schedules, human resource initiatives
and forms, etc.

Domino‘s has a B2B program through which schools or companies can set up an
account that will make the process of ordering for numerous locations and large
numbers of people simple and convenient. A dedicated point-of-contact, at the
corporate headquarters, is responsible for managing this process (Dominosbiz.com,
n.d.). It is only required that a minimum order quantity be met, and the organization
saves time and money by allowing work time to be focused on their productivity
(Dominosbiz.com, n.d.).

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3.6 Public Relations Strategy
Public relations will be managed by integrated advertising agency, Crispin Porter +
Bogusky (CP+B), the agency that helped develop the ―Pizza Turnaround‖ for Domino‘s
in 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 that
position the brand as both a global entity.

The company‘s Community Relations department oversees the local presence in the
southeastern Michigan community (Dominosbiz.com, 2008). Individual stores handle
the company‘s presence in their areas outside of southeastern Michigan (Domino‘s
Pizza. 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 public
relations strategy.

Domino‘s has an active, high-profile social responsibility program, which includes
environmental impact, community involvement, team member relations and food safety
and supply. The brand reduces its environmental impact through such efforts as using
up to 50% recycled materials in its pizza boxes and reducing its carbon footprint through
fuel 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 charitable
events, or making donations to non-profits. Domino‘s franchisees also assist when
needed – such as the efforts RPM Pizza made to collect items needed by those
affected by the gulf oil spill (Domino‘s Pizza. 2010). It will be through continued concern
for customer satisfaction and high-visibility on the community, that Domino‘s public
relations strategy will be successful.

3.7 Evaluation

Agency of record, Crispin Porter + Bogusky (CP+B), will also perform the majority of the
campaign 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 Media

Domino‘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
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New menu items are being introduced and the effectiveness of the above areas will be
evaluated on a twelve-month schedule for the 2013 fiscal year. The initial tests of the
new menu items will begin in March 2013. The effectiveness of social media
campaigns, consumer promotions and brand awareness will be the first areas analyzed.
The remaining areas, involving the brand overall, such as image, positioning and
advertising impact will take place during the second half of the year.

Evaluation Programs Table

Evaluation Programs Plan
Start End Date Cost Department Manager
Date
Brand Awareness 6/1/2013 6/30/2013 $40,000 CP+B
Image Analysis 10/1/2013 10/31/2013 $15,000 CP+B
Positioning Analysis 10/1/2013 10/31/2013 $15,000 CP+B
Consumer Promotions 5/1/2013 6/30/2013 $10,000 CP+B
Analysis
Customer 1/1/2013 12/31/2013 $0 Internal LR
Complaints/Product
Returns
Direct Marketing 11/1/2013 12/31/2013 $45,000 CP+B
Analysis
Advertising Impact 9/1/2013 10/31/2013 $37,000 CP+B
Social Media Analysis 5/1/2013 6/30/2013 $10,000 CP+B
Totals $172,000

4.0 Integrated Marketing Communications Management

The key management issues associated with the Domino‘s IMC campaign relate to
creating 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 different
market tests in different geographical locations to gather feedback. Social media will be
important at this point, as consumer feedback is solicited in these markets. Once the
feedback has been analyzed, the best menu items must be rolled out to all the
individual Domino‘s locations. From there, the challenge becomes making the target
audiences aware and curious about trying the new items. As the creative marketing
becomes vitally important, working as a partnership with the advertising agency will be a
key focus. How to approach messaging, creative, and what IMC media mix will produce
the optimal reach and impact becomes top priority.

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4.1 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.
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 as
a continuation of the reformulation of the pizza. From TV ads with real Domino‘s team
members, to digital innovation that encouraged customers to participate in bragging
about the brand. With expansion of the menu with healthier alternatives suitable for
parents 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 only
to 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 Budget

Advertising 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 during
2009, 2010 and 2011, respectively.
The 2013 expense budget will follow
this trend at $26M.

Digital $ 10,000,000
Broadcast $ 6,500,000
Social Media $ 4,000,000
Direct Marketing $ 2,000,000
Newspaper $ 1,500,000
Billboard $ 1,000,000
Sponsorships $ 1,000,000
Total $ 26,000,000

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IMC Allocations

Consumer 24,750,000

Distribution Channel 12,000,000
Business-to-
business 1,000,000

Total 37,750,000

2013 Domino's 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 Dec

4.3 Agency Selection

For this campaign, Domino‘s will stick with the agency Crispin Porter + Bogusky (CP+B)
who helped to orchestrate the ―Pizza Turnaround‖ for
Domino‘s in 2009 as well as suggesting the recent
dropping of the word Pizza from the logo.

Specializing in making brands famous, turning brands
around, and generating positive business results for
their clients, CP+B works with other national and
international 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 a
media-neutral creative approach with a particular strength in interactive.

4.4 Internet Strategy

Domino‘s has become an innovative brand in part because technology has helped to
drive global growth. In 2011, they hosted a Global Domino‘s Day, where a 50% off
coupon was offered for all orders placed online in 20 countries around the world. The

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U.S. has seen a 400% growth trajectory in the past 12 months in both Facebook and
Twitter followers. During Cyber Monday week 2011, in the U.S., there were over a
million 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 that
consumers love. However, technology will continue to push Domino‘s to the cutting
edge that provides an advantage over their competition.

Domino‘s Pizza has revealed that its e-commerce function has helped deliver an 11
percent 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‘s
website and mobile platforms. Increased investment in online marketing and social
media also helped. Focus will continue on further development of digital platforms.
"As technology continues to evolve, we will remain committed to offering the most
convenient and efficient ways to order from Domino's," 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 how
Domino‘s is no longer just pizza but so much more, including healthier options for those
who place a high priority on eating healthier. To accomplish this Domino‘s will integrate
traditional 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 the
food choices that Domino‘s offers but they feel they have been given a voice and a
sense of ownership regarding Domino‘s products via interaction with social media.

5.1 Budget allocation

The 2013 consumer budget allocation will be $27.5 M. The 1.5M in fees to Crispin
Porter + Bogusky (CP+B) will pay all agency and development fees. CP+B will develop
all advertisements and supporting communications.

IMC Allocations
Consumer Advertising
New Media/Digital and Social 10,000,000
Promotions and Sponsorships 4,000,000
Traditional Media 12,000,000
Agency Fees 1,500,000
Total 27,500,000

Of the remaining $20.5 M all but 1M will be spent on traditional and new media as well
as promotions and events.

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2013 Media Budget
New Media/Digital $8,000,000
Television $7,500,000
Promotions $3,000,000
Direct Marketing $2,000,000
Social Media $2,000,000
Newspaper $1,500,000
Billboards $1,000,000
Sponsorships $1,000,000
$26,000,000 5.2 Integrated Marketing Communication
Approaches

Domino‘s will implement a strong advertising campaign that will be linked to the
Dominos.com website and social media. The tagline ―It‘s good and good for you.‖ Will
be used to reinforce the idea that people do not have to sacrifice eating healthy to eat at
Domino‘s.

5.2.1 Advertising

The greatest percentage of the budget is allocated for new media/digital which includes
advertising online as well as maintenance and further development of Dominos.com.
Domino‘s has become an innovative brand in part because technology has helped to
drive interest in the website with ―Tracker‖ that keeps the consumer up to date on the
status of their order from the moment it's prepared to the second it leaves the store for
delivery. Mobile will continue to become an increasingly important part of the digital mix
with more smart phones and tablets permeating the national market.

The increase was a result of innovations in the digital platforms such as the company‘s
website and mobile platforms. Increased investment in online marketing and social
media also helped. Focus will continue on further development of digital platforms.
"As technology continues to evolve, we will remain committed to offering the most
convenient and efficient ways to order from Domino's," said Weiner (PR Newswire,
June 2012).

Although social media expense is only 7.5% of the budget, it is an important and cost
effective part of the media mix. In the last several years Domino‘s has wisely placed an
emphasis on interaction with the consumer giving them a sense of ownership of the
pizza process.

Traditional media, although considered antiquated to some, will support and add
frequency of the message as it refers consumers to the website. With smart copy-
writing and production, ads for television, newspaper, billboards, and direct marketing
can bring this campaign to the next level just as with the Old Spice campaign in 2010
(Bertoldi, Aug. 2010).

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5.2.1.1 Advertising Goals

Increased awareness of new menu options will be followed by increased sales. ROI
needs 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.

5.2.1.2 Creative Brief

Target Audience Profile
Primary target: 18-25 year-olds.
Also known as Millennials (born 1981-1993), this audience makes up the largest
generation 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
(PizzaMarketPlace.com, 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 other
forward thinking 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 value pricing.

Secondary target: 25-54 year-olds.
Many considered Gen X being born between 1965 and 1980 (Pew Research
Center, Nov. 2011)
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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 (CDC.com, 2012).

Communication Objectives
The objectives of this campaign are the have the target primary and secondary
audiences:
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 order

Product Features and Benefits

Features
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

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New recipes which include suggestions from consumers

Benefits
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 Product
Domino‘s positioning for this campaign will keep focus on the convenient, healthy and
nutritious aspects of the new ingredients and menu. By adding salads and healthier low
fat options for items such as meats and cheese, Domino‘s is showing their commitment
to deliver the best tasting and best for you meal in town.

Healthy family eating has become more important in recent years as research studies
such as this one from Michigan State University that indicates children whose parents
eat unhealthy are likely to go on to adopt unhealthy eating habits of their own. Parents
who eat a healthy diet at home, instead, set the best example for children (Mintel, June
2012). Families who eat a variety of foods such as those available at Domino‘s are
developing healthier habits for a lifetime.

Another important aspect of Domino‘s positioning is the ability to use today‘s technology
to make ordering a meal convenient and easier than ever with digital apps for cell
phones 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 specifications
and 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 giving
them the ability to voice their opinions via email and social media. They will continue to
invite the consumer front and center with the brand and give them the power to affect
positive change.

Key Consumer Benefit
The USP (unique selling proposition): Domino‘s solicits and cares about the customer‘s
opinions 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 salads

Creative Strategy
The 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.

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This strategy is designed to the reach primary and secondary audiences: 18-24 year
olds and 25-55 year olds. It will reflect the two audience segments as two generations of
the same family. One, a college student ordering Domino‘s from his dorm room on a
Friday night, using the mobile app; then Skyping his family while waiting for his delivery
of traditionally-prepared items, and seeing his parents and siblings enjoying their
healthy Domino‘s dinner.

This ad will position Domino‘s as the brand with options that fits the healthier lifestyles
of today‘s consumers. There are consumers who want their pizza and related items
prepared traditionally, and then there are those who are vegetarian. In between, are
those 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. May
2009). Of importance to these consumers will be very tasty turkey versions of
pepperoni, ham, bacon, and Italian sausage.

In quick service restaurants, turkey is a top-selling meat choice, because of the lower fat
content, which many customers prefer (Wolf, 2012). For instance, a serving of Hormel
brand sliced pepperoni has 140 calories, 13 grams of fat and 4 times the saturated fat
contained in a serving of Hormel brand sliced turkey pepperoni, which has 70 calories
and 6 grams of fat and 15 grams of saturated fat (Calorie Count, 2012). Domino‘s new
Turkey Toppings for pizza, salad and pasta, will set the brand apart from other leading
pizza 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, and
the traditional options demonstrating that Domino‘s has old and new menu options that
can satisfy everyone‘s nutritional needs and tastes.

Tone
This ad will be executed using emotion with light humor. This split-screen digital video
and traditional television ad will present Domino‘s traditional and health-conscious menu
side-by-side and evoke feelings of connectedness between an on-campus college
student and his family; as, naturally, they miss each other.

This tone will resonate with the two market segments targeted, as it presents Domino‘s
as having options suitable for both groups, which are two generations of a family. The
ad focuses on the contrast of items the college student orders in comparison to the
items his mother chooses to serve the family. This is the introduction of the new
Domino‘s menu that‘s not just good, but good for you, presented alongside the
traditional menu that younger consumers want.

Support Statement
Domino‘s continues to be the leading QSR delivery brand and enhances its image with
the technology it offers, from mobile ordering to its proprietary online ordering with the

24


Pizza Tracker. Dominos will still provide their top-level customer service and up the ante
with greater nutritional value through a healthier menu – which is an extension of
service positives that distinguish it from competitors not concerned with the opinions of
its consumer public.

Slogan or Tagline
“For Friday night with family or with friends, make it Domino’s: Good and good for you."

Logo

5.2.1.3 Advertising Design
Creative suggestions for video for TV commercial, online ad, YouTube, etc.
Tone: Emotional with light humor

Friday night at the dorm and family pizza night – split screen. College student Skypes
home from his laptop on a Friday night after ordering Domino‘s with the app on his
phone. Dad answers and turns the screen around to show the rest of the family at the
dinner table. Family, consisting of younger brother and sister, having dinner from
Domino‘s. Kids and parents have a variety of foods like salad, pasta and pizza. Son at
college says he‘s surprised Mom is letting Dad have pizza. Dad tells son its low-fat
cheese with turkey pepperoni and lots of veggies. Son walks away from the laptop and
answers the door bringing in his Domino's pizza and a couple of additional delivery
boxes. As he opens the boxes showing a Bacon Cheeseburger Feast pizza, wings, and
a Chocolate Lava cake, he tells Dad in a bit of a whisper not to be jealous because
Mom isn‘t on campus to keep him from having his usual. Mom comes into the screen
and as she starts questioning his choices, he turns around the screen on his computer,
smiles and starts to eat while you hear the Mom's voice fading in the background.

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5.2.2 Consumer Promotions

Reaching the consumer segments targeted for this brand will involve promotions that
bring the new products, along with older, improved products to the public. This will be
especially useful in testing improvements to the boneless chicken recipe. Many
customers complain about this product and are demanding the return of the previous
Chicken Kicker recipe (Domino‘s Pizza, LLC. 2012). These promotions offer the
opportunity, to not only promote the products, but also test them and obtain feedback. A
survey form or computer kiosk will be used to capture the responses. This will also be
an opportunity to capture direct marketing opt-ins be requesting email addresses and/or
Twitter or Pinterest handles.

The promotions will be conducted on college and business campuses as well as
shopping 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 with
multiple market segments. These types of locations will provide engagement with both
target segments of the audience.

The promotions will executed by street teams that conduct the experiential marketing by
providing samples of the products in 5 locations in 20 U.S. cities, for a total of 100
events 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 with
a Michigan-based automotive brand (possibly the Domino‘s fleet manufacturer) will also
kick off during the sampling promotion, with the incentive of bonus entries. This is a
CRM opt-in strategy for both brands.

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5.2.2.1 Consumer Promotion Selection and Budget Allocation

The consumer promotions strategy will target a cross-section of consumers that are
brand-loyal, promotion-prone, and price-sensitive. The budget for these promotions, that
include sampling, email marketing and social media, is 20%of the overall budget for
consumer strategies, or $5.9M. This includes production and manpower, as well as
equipment and supplies. This promotion program will differ from the National Pizza
Month 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 and
obtain CRM permission. While Domino‘s is a well-known brand, it is still winning
customers back (Domino‘s Pizza, Inc., Jackson and Feld, 2011). The tactics to be used
include:
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 Domino's 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 the
focus of the program. The engagement is interactive and will be attractive to the three
types of consumers in both target audience segments. 41% of respondents to Forbes
Insights‘ Social Media Interaction survey, say they enter brand-hosted contests or
sweepstakes (2012). The traditional and non-traditional advertising will also publicize
these promotions.

5.2.3 Personal Selling

The personal selling aspect of the program is the customer interaction opportunity in the
store. Restaurant employees will greet customers on the phone and in the store, asking
the customer if they would like to try the new healthy menu items, or telling the
customer 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- or
suggestive selling increases (QSR Magazine, 2010).

5.2.4 Sponsorship and Event Programs

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The sponsorship and events programs will focus on the local stores‘ visibility in the
community, domestically and abroad. The corporate headquarters will support this effort
through their co-op initiatives. An incentive to the franchises can be offered in the form
of credits used to reduce loyalty fees or co-op expenses. This will be an extension of the
corporate 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 Programs

The database programs will continue the established methods where consumers opt-in
to receive email communication, as this a viable method of customer engagement.
According to Forbes Insights‘ Social Media Interaction survey, of consumers asked
which 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 or
email updates (2012). The new products, and associated promotions, will be marketed
to all customers in the database and the current staff overseeing these processes will
continue their management. The data warehouse will provide the CRM data to be used
in all permission marketing efforts, such as email communication and text messages.

5.2.5.1 Data Warehouse

The data warehouse will store customers‘ information according to the terms of use
provided on the e-commerce site. All information provided: email addresses, phone
numbers for text messaging and addresses for location-based targeting will be
collected, stored and protected for permission marketing initiatives.

5.2.5.2 Direct Marketing
The direct marketing programs will primarily occur point-of-sale with coupons and flyers
distributed on product packaging. Co-op field marketing efforts, such as door hanger
promotions, will also continue to be executed by the current direct marketing team.

5.2.5.3 Permission Marketing

Permission Marketing continues to be a major focus for this brand and will include
incentives 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 in
geo-targeted engagement, as well as by the corporate headquarters for brand-wide
marketing promotion engagement.

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Customers can sign up on Domino‘s website for email and text marketing can receive
information regarding promotions. Messages will also include invitations to engage with
the brand on Pinterest, Twitter, LinkedIn and Facebook. Periodic giveaways will also
take place in the form of codes to be used for discounts or free products, from the new
line, for randomly selected subscribers. This approach will attract customers, as shown
by the 80% of consumers responding to the Forbes Insight survey who indicate that
they ―read email alerts or updates on special deals from advertisers‖ (2012).

5.2.5.4 Loyalty Programs

Loyalty programs will be activated by consumers‘ online engagement with the brand. It
will include the community formed by Twitter and Pinterest followers, Facebook ―Likers‖,
and the email and text recipients. All of these customers are automatically enrolled in
the loyalty program, as they have the opportunity to be informed of promotions, of the
new products, that are influenced by or that influence purchase patterns. In Forbes‘
Social Media Interaction survey, 80% of consumers say that they join membership or
loyalty programs‖, indicating this is a strategy that would prove successful in engaging
consumers over time and subsequently, positively impacting sales (2012).

5.2.6 Interactive and New Media

These programs will be the product of the social media engagement platform, including
digital. One of the strategies to be used will be ―Is it Good?‖ video reviews. Domino‘s will
ask all customers to upload images of their good for you items and give a video review
to 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 Forbes
Insights, 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 Methods

Other IMC methods include traditional advertising, such as newspapers and billboard
ads advancing the ―good and good for you‖ message, emphasizing the new, healthy
ingredients and recipes. They will direct consumers to interact with the brand on its
website or other social media and opt-in to permission marketing for deals and nutrition
information. Domino‘s mobile app will continue to figure prominently in engagement and
purchase 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 that
promotes 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 recipe
concept is promoted through the other platforms.

29


Promotions, events, sweepstakes and all other advertising will be done on a continuum
with increases focused around peak periods, such as the Thanksgiving, Christmas and
New Year‘s holidays, which are followed by the Super Bowl. The push will be necessary
because 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
Sponsorships

5.4 Integration

As the following diagram illustrates, the various platforms are intended to be integrated
with the main ad as well with each other. The television ad will drive customers to online
and CRM engagement; the permission marketing will market promotions and specials,
including random rewards for selected customers. All of these, along with the direct
marketing and personal selling, will focus on the new products and recipes, as well as
sponsorships 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


5.5 Evaluation methodology (metrics and analytics)

Because this plan is based on the combined effect of all aspects applied, ROI
evaluation will follow a model that averages the $26M budget over 12 months. This cost
is $216.7K/month, and $6.5M for the quarter. The quarterly cost will be deducted from
the 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 exceed
sales 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 to
determine the effectiveness of the methods on a weekly and monthly basis. These
approaches will produce the data that will determine if the following objectives are being
met:
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 lagging
behind the desired goals, adjustments will be made to bring them in line with the
specified objectives.

31


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36


Exhibit 1

Pizza/Pasta Segment
SEGMENT
2011 U.S. SYSTEMWIDE 2011 U.S. AVERAGE SALES PER NUMBER OF TOTAL TOTAL CHANGE IN
RANK 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 -70

Exhibit 2

37

Domino's 2013 IMC Campaign Promotes Healthy Options

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