McDonald’s, Greggs, Domino’s: 5 things that mattered this week and why
From Greggs’ return to growth and Domino’s doubling profits to McDonald’s resurrecting the “critical” UK CMO role, catch up on this week’s biggest marketing news.
Domino’s boss praises early impact of merged marketing team
Earlier this year, Domino’s brought its digital team under the remit of marketing and it’s a move showing early signs of success.
The ‘Domino-Oh-Hoo-Hoo’ campaign – the first to be delivered via the merged team – was credited by CEO Dominic Paul this week for driving awareness, consideration and ultimately sales. The pizza delivery chain saw a 19.3% increase in sales in the UK and Ireland for the first half of the year to £752.3m, while profit more than doubled to £41.3m.
Paul said the “supercharged” campaign saw a “significant shift to high performing digital channels”, with early data suggesting it has resulted in a “significant rise in brand perception” since going live.
Bringing digital under the stewardship of marketing boss Sarah Barron means Domino’s is able to align digital tactics with brand strategy, joining up the two to work harder.
Back in January when Domino’s first announced it would be combining its digital and marketing teams, Paul described the move as “an important step” in the future development of the brand. It’s looking as if the move is starting to pay off.
READ MORE: Domino’s credits ‘supercharged’ Euros campaign as profits double
Greggs recovery boosted by delivery expansion
After taking a major knock from Covid-19 last year and recording its first ever loss, Greggs is back on form with a strong first six month recovery this financial year.
After the reopening of non-essential retail in April, sales growth during the second quarter “exceeded expectations” when compared to the same period in 2019, before the pandemic hit.
Total sales for the first six months of the year reached £546m, driving an underlying pre-tax profit of £55.5m. Greggs says it now expects full-year profit to be “slightly” ahead of previous expectations.
While walk-in customer transactions have yet to return to 2019 levels, higher average transaction values and increases in delivery sales more than compensated for the decline. Greggs’ delivery partnership with Just Eat is now available in 837 of its 2,115 shops, representing 8.5% of shop sales over the first six months of the year.
But that’s not stopping Greggs from opening up a further 52 shops this year, bringing the total for 2021 to 100. Crucially, most of these shops are being located with delivery and collection services in mind, at roadsides and service stations rather than town centres.
On top of delivery, Greggs has identified customer rewards and product development as key priorities in its “refreshed” five-year strategy.
The chain has worked hard over the past 18 months to adapt its services and operations to keep up with changing consumer habits and demands, and it looks like that effort is beginning to pay dividends. With consumers unlikely to return entirely to pre-pandemic behaviours, this will undoubtedly serve Greggs well in the long term.
As the Chartered Institute of Marketing’s CEO Chris Daly says: “Greggs’ two-pronged focus on digital innovations, coupled with releasing in-demand products, has allowed it to keep high street and online shoppers at its fingertips and bounce back following a difficult year.”
READ MORE: Greggs sharpens digital focus as it refreshes five-year strategy
McDonald’s resurrects UK CMO role with Graham-Clare promotion
McDonald’s brought back the UK CMO role this week as it promoted Michelle Graham-Clare to the C-suite position. Graham-Clare has been leading marketing in the UK since the departure of Gareth Helm last summer but in her capacity as vice-president of marketing and food development.
It’s not clear whether it was always the intention to find a direct replacement for Helm, but UK CEO Paul Pomroy has this week said the CMO role is “critical” to the ongoing success of the McDonald’s brand.
It’s not the first time McDonald’s has put the CMO role on ice when someone in that position departed. The global CMO role was also seemingly scrapped when Silvia Lagnado left in 2019 but then reinstated last year with the appointment of Alistair Macrow, a former UK marketing boss at McDonald’s.
READ MORE: McDonald’s brings back ‘critical’ UK CMO role
Mirror tackles disconnect between print and digital brand
When a product exists in both a physical capacity and a digital one, ensuring the brand is consistent across both is critical.
That’s a lesson recently learned at the Mirror, where a recent audit discovered a disconnect between the brand values that come through its print newspaper and the values reflected in its digital properties.
Andrew Tenzer, director of insight and brand strategy at parent company Reach, wants to close that gap, communicate a “warmer, more human, empathetic” perception of the Mirror, and help the brand stand out in the increasingly competitive digital news market.
As such, the tabloid has revamped its brand for the first time in eight years, with a new ‘Mirror More Hopeful’ pledge and a total redesign of its identity.
“I’m a very firm believer that brand building actually takes on greater significance in the digital age,” argued Tenzer, who only recently had brand strategy added to his remit. He is best known for authoring punchy reports, denouncing social purpose strategies and proved the fundamental disconnect between marketers and the mainstream public.
Tenzer promises more brand work throughout the year to build upon the new design and pledge, with further initiatives to come across editorial, marketing and social media.
“For me it’s bringing to life what the Mirror has always been,” he added. “We are a force for good and we’re positive that we can make a difference.”
READ MORE: ‘Warmer, human, empathetic’: Inside the Mirror’s new brand strategy
TfL replaces Chris Macleod with Eurostar marketer
The past 18 months of Covid-19 has led to some fundamental shifts in the way people live and work in London, with flexible and home working increasingly popular and commuter numbers significantly lower than pre-pandemic levels. That poses a substantial challenge for Transport for London (TfL), the main provider of public transport in the capital.
But that hasn’t been enough to put off Gabriella Neudecker from taking on the top marketing job at the organisation as director of customer and revenue, replacing marketing veteran Chris Macleod following his retirement earlier this year.
Neudecker is currently marketing director at Eurostar, a role she took up in late 2019, so she’s no stranger to steering a transport company through a rough period. She also has experience at Experian, the Post Office, and a range of creative agencies.
As Macleod told Marketing Week earlier this year, one of the biggest challenges for Neudecker will be in rebuilding passenger numbers, getting TfL back on top of its purpose of helping London to work and grow.
His advice for his successor? “Continue to be customer focused. Be insight led. Look at the data. And keep moving, keep changing and keep looking at things.
“We can’t naturally accept that it’s all going to be the same as before, which might mean we have to flex the business in all sorts of ways. That’ll be the exciting opportunity.”
READ MORE: TfL poaches Eurostar marketing director for top role