During the last year some of the biggest food chain restaurants like McDonalds and Pizza Hut have been facing some problems. Domino’s Pizza on the other hand, is having one of its best years; profits have increased 16% and they have opened 160 stores in the last quarter.
Domino’s had been criticized for the quality of their food and service, their response was a very different one from expected. The approach the food chain restaurant took towards the criticism was a risky one, in their advertising campaign they admitted their food was not good. The first line in one of Domino’s pizza’s commercial was ” Failure is an option”.
I think they came up with a very good advertising campaign. Instead of doing what most companies do, convincing costumers their product is the best and only mentioning positive things about the product, they accepted their mistakes and told costumers these were going to be fixed. In my opinion this makes Domino’s Pizza stand out in the mind of the costumer because it make me believe that by giving such a strong declarations they are actually going to do something about it. It also lets the costumes know that their comments and recommendations are being taken into account.
Asides form this great advertising campaign, Domino’s did a couple of things that contributed to this recent succes. First, Domino’s decided to innovate and produced their own app. They know that people now use the internet as one of the main forms of communication so they developed an app that allows costumers to use this medium, which many of them prefer. Second, they improved their pizzas plus expanded their menu and introduced speciality chicken.
Speciality Chicken
While Domino’s has these two points of differentiation, which are now gaining them a great advantage over their competitors, they have also improved the recipies of their pizza, and have continued to be a fast and cheap restaurant which are important points of parity.
Solomon, Jesse. “Domino’s Pizza Is Hot Again.” CNNMoney. Cable News Network, 22 Oct. 2014. Web. 01 Nov. 2014. <http://money.cnn.com/2014/10/22/investing/dominos-pizza-hot-again-stock-record/index.html?iid=Lead&hpt=hp_t2>