How Domino’s Plans to Beat the Food Delivery Boom

  Rassegna Stampa, Social
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Although Domino’s Pizza didn’t know it, the Michigan-based company has been preparing for a pandemic for years now, with investments in online ordering, contactless delivery and curbside pickup.

Now, those investments are paying off.

During the quarter ending Sept. 6, U.S. same-store sales increased 17.5%, according to the company. Total revenue rose to $968 million, surpassing analyst estimates compiled by S&P Global Market Intelligence.

At the same time, demand for food delivery apps such as Grubhub, DoorDash and Uber Eats skyrocketed following the outbreak of Covid-19 and subsequent lockdown measures. Consumers have never had more options for what to eat at home, but even with that increased competition, Domino’s has managed to find success.

To fight back against the rising tide of food delivery services, the chain debuted a campaign aimed at the competition. Behind the scenes, it’s also staying committed to controlling customer data and moving toward an agency model to keep up with the pace of change.

A rush on delivery

As sales have soared, Domino’s competitors in the food-delivery industry began better positioning themselves to meet demand. DoorDash, which saw revenue climb more than 225% to $1.92 billion during the nine-month period ending Sep. 30, began trading on the New York Stock Exchange this week. In June, European food delivery service Just Eat Takeaway agreed to buy Grubhub for $7.3 billion. More recently, Uber completed its acquisition of delivery service Postmates for $2.65 billion, a deal initially announced in July.

Figures from data analytics firm Earnest Research, which tracks credit and debit card transactions, shows U.S. adults began spending twice as much on third-party delivery services in April compared to the same month last year, and have continued to use them at elevated levels ever since.

Other forms of getting pizza to people at home are also heating up. Philadelphia-based delivery service goPuff, which delivers household goods ranging from snacks to cleaning supplies in 500 cities across the country, reports that year-to-date sales of frozen pizza are up 139% compared to last year.

The Domino’s playbook

Over the past decade, Domino’s has bolstered its reputation as a delivery leader through extensive marketing efforts. Longtime agency partner Crispin Porter + Bogusky (CPB) crafted ads promoting the chain’s Pizza Tracker, Delivery Hotspots, Delivery Insurance and AnyWare initiative, which makes it possible to order Domino’s from practically any internet-connected device. And though its DXP (Delivery Expert) vehicle, an innovative machine with a built-in oven, saw limited use, it helped cement the brand’s status as a company devoted to delivery through its appearances in commercials.

Despite its past success, Domino’s recently ended its 13-year relationship CPB, naming independent Boulder, Colorado, agency WorkInProgress as its new agency of record.

During a call with analysts on Nov. 12, Domino’s CMO Art D’Elia, who took on his current role in July, discussed the company’s need for speed in transitioning to the new agency at the beginning of 2021.

“One of the things that we’ve all learned during this crisis, but certainly was a trend in marketing before the crisis, is that consumer changes are going to happen at an accelerated rate,” D’Elia explained. “We really want to continue to be able to roll out marketing initiatives and campaigns at a more rapid pace.”

D’Elia believes the smaller WorkInProgress is better suited to “get more messaging in front of consumers quicker than we have in the past.”

But don’t expect Domino’s messaging itself to take a drastic shift. WorkInProgress was founded by veterans on the account at CPB who have an intimate understanding of the brand, and their previous time with the brand seemingly coincided with Domino’s U.S. president and chief operating officer Russell Weiner’s tenure as Domino’s CMO.

https://www.adweek.com/performance-marketing/dominos-food-delivery-boom-advertising-tactics/