‘Innovative’ marketing boosts Domino’s

Domino’s has dubbed 2011 as “the year of the app” and says low-cost digital initiatives and “innovative” marketing helped boost sales and profits during the year.

Dominos

Group revenue increased 11% to £210m in the year to 25 December 2011, driven by online sales, which increased by 43% to £183.1m and regularly account for half of all the pizza chain’s daily sales.

Mobile sales accounted for 14% of all Domino’s online sales in the final quarter of the year following the introduction of iPhone, iPad and Android apps.

Like-for-like store sales increased 3% during the period.

The business overhauled its IT systems which it says freed up time to develop new platforms such as mobile apps and develop ways to use digital channels to leverage online sales and boost engagement.

It used Facebook to promote special offers to its 300,000 fans such as 50% off as part of “the first ever Global Domino’s Day” and an pre-launch trial of its new “boneless ribs” product before a national roll out.

The pizza chain also credits its “strong” performance to new product launches such as its premium Gourmet range, stuffed crust variants and Reggae Reggae pizzas in partnership with Levi Roots.

Lance Batchelor, who took over as CEO in December says: “The underlying strengths of our business continue to be innovation in both our product range and our marketing approach. While many companies see only threat in recessionary times, we see opportunity.”

He adds: “The rise of commerce in our business has been breathtaking. In addition to the basic function of online sales, we continue to improve the way we communicate with our new digital audience.

“From targeted email marketing to exciting competitions and initiatives via Facebook and Twitter, we continue to use these relatively low cost methods to promote new products, reward our top customers and create excitement in the brand.”

Domino’s says that traditional marketing including tactical price promotions and the “It’s what we do” brand campaign which launched in July also increased sales. Batchelor adds that the company will continue to look for “exciting opportunities” for above the line marketing.

The chain plans to continue opening around 60 stores each year to extend its reach in the UK.

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