Dominos to increase ad budget to 20m

Home delivery pizza chain Dominos says it expects to boost its advertising budget by more than 10% to 20m in 2009 to capitalise on budget- conscious Britons choosing to eat at home.

Home delivery pizza chain Domino’s says it expects to boost its advertising budget by more than 10% to £20m in 2009 to capitalise on budget- conscious Britons choosing to eat at home.

The company, market leader in its sector, this morning (February 17) reported an 18.4% increase in sales for the year to December 28. Chief Executive Chris Moore said that a third of the 2.7m households that ordered its pizza and snacks in 2008 were new customers.

Moore attributes the growth to the company’s £18m marketing spend, which rose from £15m in 2007 and saw it become headline sponsor of ITV’s Britain’s Got Talent and make other deals with shows such as The X Factor.

He added that online orders jumped by 74% with an average value of 20% higher than phone orders “Mainly as a result of increased spend in highly targeted online marketing in 2008.” Online sales grew to represent 23% of the company’s total orders last year from 17% in 2007.

Dominos upbeat announcement follows news that fast food outlets are generally benefiting from the demand from recession-hit Britons for cheaper food. Yesterday Kentucky Fried Chicken announced it would be opening a further 300 stores in the UK over the next 3-5 years, with 44 opening in 2009 in response to booming sales.

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now