Cannes Lions

DOMINO'S PIZZA

BLM MEDIA, London / DOMINO'S PIZZA / 2002

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Description

We had to build a brand for regular consumers of delivered pizza’s. It was a major task, the competitive set extends from ready meals to all fast food. We had to:1. generate overall high awareness.2. communicate superior quality compared to competitors.3. highlight range of pizza on offer and speed of deliveryUltimately to:1. stimulate preference and drive trial.2. create a brand halo effect permitting communication of new ranges.The target audience are young (18-34 years old) and consume pizza whilst using in-home entertainment. It’s a treat and a meal replacement. Therefore event programming was critical. They are heavy viewers of cable and satellite and The Simpsons is the key regular programme in their repertoire.John Sheddon, Domino’s Franchisee‘I didn’t realise the power of the programme. I’ll tell you how deep that one goes. We have a shop in Springfield* Road, Horsham and you can’t believe the amount time I get the mickey taken out of me.’*The Simpsons live in Springfield.

We built a brand on a limited budget by being focussed, highly creative, recognising the business imperatives and understanding the target audience.We created collaborative partnerships and exploited these for the collective benefit of all parties.The Simpsons is a property that has given Domino’s a personality in a highly competitive market. It has created a famous brand on 1/15th of the budget of Pizza Hut. It allowed us to communicate everyday of the year and vary the message, so we can communicate quality, speed and range.

Chris Moore, Marketing Director, Domino’s Pizza Group UK‘We saw immediate results in terms of perception and in terms of sales. We had something in the stores that was known as ‘The Simpsons Rush.’ The relationship with BskyB allowed us to explore new routes to market via digital television. Because Domino’s had a franchise with the audience we were able to successfully test interactive channels. Domino’s were early adopters and have generated payback. Domino’s now operate on all DTH channels, like games and film-on-demand, and have not cannibalised sales from existing channels. 4% of all sales are from iTV channels and every week 20% of the customers are new to Domino’s, in addition order value is 30% greater. 30% of UK homes can now order direct from their TV.In 2001 Domino’s launched HeatWave, proprietary technology that ensures the pizza is hot when delivered. Our recommendation we should move to conventional spot advertising in addition to sponsorship and iTV Domino’s is a majority franchisee operated business, they contribute a levy to a central advertising fund, therefore the effect of media spend and the budget are linked.

Chris Moore, Marketing Director, Domino’s Pizza Group UKWe can instantly attribute sales to a specific advertising campaign. The classic example is right at the beginning of 2001 when we ran terrestrial TV advertising for the first time. We were convinced we could only afford three weeks of advertising, and those three weeks were going to be a one time hit in January, but we saw the virtuous circle begin to work. We had a huge increase in sales in January as a result of the TV advertising and quite astonishingly that gap between 2001 and 2, so by April we had already generated enough funds to go back on TV. We ended 2001 with a total of five TV bursts. This is a collaborative effort between the client, the media agency and BskyB (there was no creative agency.) We made Domino’s Pizza a dynamic brand through sponsorship of the Simpson’s on Sky One. It has changed the economic structure of the brand and totally changed consumer perceptions. The sponsorship began in 1998 and is still running, we estimate it has generated extra sales in excess of £40,000,000 for media investment less than £3,000,000.This success led us to look at new ways to harness the power of the Sky digital platform. There is great synergy between paid-for television and in-home pizza consumption. In 1999, we were the first advertiser on Sky’s Open shopping channel and delivered Europe’s first digital TV order. In 2000, we ran the first transactional interactive TV campaign on Sky. We constantly find ways to match Sky’s programming to commercial opportunities; we launched branded popcorn with Sky BoxOffice and have developed specific promotions for football, all via the red button on the remote control. This is a unique example where partnership between a client, a media agency and a media owner can change the fortunes of a business. It is a new economy way of marketing. Domino’s was #2 in the pizza delivery market behind Pizza Hut and being outspent 15 to 1. Therefore, conventional advertising was not a viable solution. The idea of long-term sponsorship allowed Domino’s to be associated with a property that had strong and relevant values and was broadcast every night of the year at meal times. Sky made the original credits in the style of The Simpsons, which further enhanced the association.It gives daily exposure to the Domino’s message in the right environment and creates The Simpsons Rush in store. It has helped the client attract new franchisees and employees.

In 1997 we had 15% share of a £346 million delivery market. By the end of 1998 we had 17% share of a market £375 million, a 23% increase in sales and were brand leader. This was with communication investment of less than £1 million. By 2001 sales have risen by 53%.

Great media should be about building business success. This idea and the subsequent interactive developments have revolutionized a company to the extent that the CEO acknowledged the importance of the media strategy in the success of their IPO and subsequent business success.

Execution

This is a collaborative effort between the client, the media agency and BskyB (there was no creative agency.) We made Domino’s Pizza a dynamic brand through sponsorship of the Simpson’s on Sky One. It has changed the economic structure of the brand and totally changed consumer perceptions. The sponsorship began in 1998 and is still running, we estimate it has generated extra sales in excess of £40,000,000 for media investment less than £3,000,000.This success led us to look at new ways to harness the power of the Sky digital platform. There is great synergy between paid-for television and in-home pizza consumption. In 1999, we were the first advertiser on Sky’s Open shopping channel and delivered Europe’s first digital TV order. In 2000, we ran the first transactional interactive TV campaign on Sky. We constantly find ways to match Sky’s programming to commercial opportunities; we launched branded popcorn with Sky BoxOffice and have developed specific promotions for football, all via the red button on the remote control. This is a unique example where partnership between a client, a media agency and a media owner can change the fortunes of a business. It is a new economy way of marketing.

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