How technology & social media is changing marketing (and how you order pizza) Ashleigh Fitzgerald~Angela Garrison~Andrea Gill ~Courtney Mellinger~Chengwei Zhang

Domino’s Pizza Case Study

Domino’s Pizza Case Study

http://www.youtube.com/watch?v=8VUJbI58m7s

Domino’s Pizza Case Study

• Mobile Marketing• User Generated Content• Social Media• Coupon Craze• Location Based Apps

Mobile Marketing: Definitions

• “The use of the mobile medium as a means of marketing communication”

• “Distribution of any kind of promotional or advertising messages to customer through wireless networks”

• “Using interactive wireless media to provide customers with time and location sensitive, personalized information that promotes goods, services and ideas, thereby generating value for all stakeholders

• “Mobile marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network”

Mobile Marketing: Stats

• There are 6.8 billion people on the planet. 5.1 billion of them own a cell phone, but only 4.2 billion own a toothbrush.

• There are more mobile phones on the planet than there are TVs

• It takes 26 hours for the average person to report a lost wallet. It takes 68 minutes for them to report a lost phone.

• It takes 90 minutes for the average person to respond to an email. It takes 90 seconds for the average person to respond to a text message.

• 91% of all U.S. citizens have their mobile device within reach 24/7.

• Mobile coupons get 10 times the redemption rate of traditional coupons.

Mobile Marketing: Types

• SMS• MMS• In-Game• Mobile Web• Bluetooth• Location Based• QR Codes

Mobile Marketing: QR Codes

• Quick Response (QR) Code• Fast readability and large data storage• Created by Denso Wave (Toyota) in 1994• Used to track vehicles during the manufacturing process

QR Codes: How they work

• Download QR Code reader • iPhone: NeoReader• Android: Barcode Scanner• Blackberry: ScanLife• Windows Phone: NeoReader

QR Codes: How they work

QR Codes: Who is Using

• JUNE 2011• 14 million Americans scanned• Male• 25-35 years old• Household income of >$100,000

• Source of scanned code• 49% Printed magazine/newspaper• 35% Product packaging• 27% Website• 23% Poster/flyer/kiosk• 13% Business card or brochure• 13% Storefront• 10% TV

QR Codes: Uses

QR Codes

QR Codes: Domino’s

QR Codes: Domino’s

User Generated Content

First YouTube video

• The first video on YouTube is of the co-founders Jawed Karim talking about elephant’s trunks titled “Me at the Zoo” shot at San Diego Zoo.

• The video has received over 6 million views

Statistics about YouTube

• It has 490 million users worldwide• It generates an estimated 92 billion page views each

month• The average user spends 5 hours and 50 minutes per

month• Together, we spend 2.9 billion hours on YouTube in a

month (That’s 326,294 years)• YouTube mobile gets over 100 million views a day

Domino’s during the crisis

Domino’s Pizza campaign

• Domino’s “Show us your pizza” campaign.

• Commercial

• “Make it right”

Facebook

• Relevance has long been central tenet of marketing...but not the case anymore

• Guests on a company's social networking site don't want to talk about your product, they just want to talk

• Suggestion that 2/3 of company's posts be conversational, not informational

• “A Facebook fan has no value. Getting a Facebook fan to do something does."

Domino’s on Facebook

• Domino’s Facebook Page• Domino's stays with the 2/3 idea • Posts a lot about things related to the purchasing of their pizzas• Conversation launch off points:• Hit "Like" if you eat other people's left over crust• More important Thanksgiving ingredient: the turkey or the

football

Facebook Promotions

• Invited customers to show their pictures/videos of their pizza experiences• Have all their user-generated content with their commercials

and promos on video page• Highlighted lunch offer to drive more lunch pizza consumption• 25th anniversary brought back retired mascot “The Noid”• Facebook game to generate brand awareness/familiarity• One free pizza was given out each minute to those who

played the game and like their page

Weakness: Can't find your own dominos from their Facebook page and there is not a simple way to navigate directly from page to ordering site

Domino’s on Twitter

• Started in April 2009 after YouTube video crisis• When they launched their new recipe, used #newpizza to solicit feedback from

their customers• Used twitter to • Acknowledge • Thank customers • To give coupons • Reward followers with gift cards • Inform confused customers about ordering practices

• Initially, they censored negative feedback they got on twitter, but after being called out by various food bloggers for it ,they stopped the practiced and allowed wide ranging feedback

• While they have over 116,000 followers, they follow over 5,000 of their customers

Coupons

• Vital in competing in the market• Coupons or deals used by all competitors• Many deals similar• Preferences are determined

• Domino’s first in the market to include mobile and online coupons

• Medium specific• Mailer• Mobile• Online

Mailer Coupons

• “The original coupon”• Based on region, Nationwide event or Nationwide

competition• Not individualized• Found in the newspaper every two-weeks or atop the pizza

box

Mailer Coupons

• “The original coupon, personalized”• Sent based on region or frequency of visits• An in store opt-in• Based on frequency of purchase• Specials sent on your Birthday• Specials sent around Holidays (such as the Super Bowl)• Specials sent if you haven’t purchased recently• Specials sent for new products

Mobile Coupons

• Increasingly relevant for consumers

• Increasingly effective tool for brand during the current recession

• Reliability on receiving the most current and cost saving deal through opting-in

• Banner ads drive traffic to Domino’s mobile commerce and coupon site

Mobile Coupons

• Coupons viewed via mobile app or sent through SMS through an opt-in relationship• By opting-in, you’ll receive the

strongest deals Domino’s has to offer

• Domino’s was the first brand to partner with and advertise with Pandora radio• Specific coupons are

designated to those that visit and order through this coupon

Online Coupons

• Like Mobile, general data is stored on your location and previous ordering history

• Online coupons are tailored to consumers’ ordering history

• Coupons designed on habits:• Excessive use• Specific pies

• Coupons designed on location:• Customer habits• Regional differences

Location-based social media

• Foursquare, Gowalla, etc.• GPS on mobile device uses current location and lets users

“check-in” places• Foursquare has grown exponentially

Effects on marketing

• Customer information• Time of check-in• Age and gender of customer• New vs. returning check-ins• Social reach of each check-in (posts to Facebook or Twitter)

Effects on marketing

• Build excitement for company• Badges as incentive

Effects on marketing

• Most popular Foursquare specials• Something for free• Discount• Friend special• Reward best customers

The future of Foursquare

• Will focus on where users are going, not what they are doing• More notification oriented• Crowley envisions a Foursquare that “…will tell you that you’re

close to a sandwich place you read about in the New York Times three weeks ago. And that’s what you want to try.”

• Automatic check-ins?

Comments from Foursquare Co-Founder Dennis Crowley in TechCrunch article: “From Check-Ins To Recommendations: A Glimpse Into The Future of Foursquare”

Back to our pizza…

Dominos Tracking

References

• Creamer, M. 2010. 2010. “When it comes to Facebook, relevance may be redefined.” Advertising Age. 81(42).

• Butcher,D. 2009. “Mobile commerce growing at astounding rate.” Mobile Marketer.• Khan, M. 2009. “Mobile coupons address mood of the moment: frugality.” Mobile Marketer.• Milano, Justin. (January 2010). I don’t have any hang-ups about using Dominos pizza

coupons like some people I know. Retrieved from http://www.dominospizzacoupons.org/2010/01/i-dont-have-any-hangups-about-using.html

• COMTEX. (June 2011). Domino’s Pizza kicks up convenience with new ordering app for iPhone and iPod Touch. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=135383&p=irol-newsArticle&ID=1573851&highlight=

• Dominos.com. Did you know?. Retrieved from http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/About+Dominos/Fun+Facts /

• Crowley, D. YEAR. “From Check-Ins To Recommendations: A Glimpse Into The Future of Foursquare” Tech Crunch.

Questions?