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Domino’s Pizza gets a Facelift
A recent interview with Domino’s Pizza CEO reveals that the company hit a wall in sales that they could not surpass without some kind of internal intervention.
Upper-management was beginning to realize that this wall had not been caused by anything else other than bad product. Marketing research revealed that Domino’s Pizza had negative brand equity, meaning that people thought Domino’s pizza was alright, if they didn’t know it was from Domino’s. This is, obviously, a severe issue for the Domino’s brand itself.
Thus, the CEO saw that there was no other solution but to completely reinvent the pizza itself. This reinvention cost $10-15 billion dollars. Not only were they changing how the pizza was prepared, but they also upgraded all of the ingredients to be of higher quality, which in turn makes each pizza more expensive for Domino’s to produce.
This product revamp was accompanied by their online pizza tracker that has actually been quite popular and successful. Domino’s has created a feature of their website that allows you to order and pay for your food completely online. After purchase, you see what stage your pizza is in: Order received, prep, baking, quality inspection, and delivery. Each step is time-stamped and labeled with the employee’s name that is handling each step, so you know exactly where you pizza is at all times. This has become not only convenient, but fun, especially for the kids.
In addition to ordering and tracking your food via website, there is also a Domino’s app for your smart phone that has all of the same features as the website, so you can order and track your pizza directly from your phone.
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Domino’s Pizza gets a Facelift
Upper-management was beginning to realize that this wall had not been caused by anything else other than bad product. Marketing research revealed that Domino’s Pizza had negative brand equity, meaning that people thought Domino’s pizza was alright, if they didn’t know it was from Domino’s. This is, obviously, a severe issue for the Domino’s brand itself.
Thus, the CEO saw that there was no other solution but to completely reinvent the pizza itself. This reinvention cost $10-15 billion dollars. Not only were they changing how the pizza was prepared, but they also upgraded all of the ingredients to be of higher quality, which in turn makes each pizza more expensive for Domino’s to produce.
This product revamp was accompanied by their online pizza tracker that has actually been quite popular and successful. Domino’s has created a feature of their website that allows you to order and pay for your food completely online. After purchase, you see what stage your pizza is in: Order received, prep, baking, quality inspection, and delivery. Each step is time-stamped and labeled with the employee’s name that is handling each step, so you know exactly where you pizza is at all times. This has become not only convenient, but fun, especially for the kids.
In addition to ordering and tracking your food via website, there is also a Domino’s app for your smart phone that has all of the same features as the website, so you can order and track your pizza directly from your phone.
Sources: Business Week
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