VEN TURE; A RISKY OR DARING JOURNEY ORUNDERTAKING

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VENTURE

At Venture, an advertising and branding agency, we arepassionate about people and taking calculated risks. We

execute quality work by introducing cuttinginnovation, design, and exceeding clients' expectations.

The Planbook- MKTG 347 -500Team 3: Brooke Byrum, Hunter Coleman, Anna Punnoose, Haley Reim,

Samantha Thomson

.

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Table of Contents

Executive Summary

Part 1: Meet the Team

Part 2: The External Environment

Industry OverviewIndustry AnalysisCompetitive Analysis

Part 3: The Internal Environment

Client Background & HistoryClient InformationRecent Marketing EffortsSWOT AnalysisEthnographic Research

Part 4: The Target Market

Target Market IdentificationTarget Market AnalysisSurvey ResultsPersonal Interviews

Part 5: Objectives and Insights

Key Research InsightsThe ProblemCampaign ObjectivesBrand FunnelCreative Brief

Part 6: The Idea Pitch

Part 7: The Big Idea & Creative Plan

Part 8: The Media Plan

Campaign Evaluation

Works Cited

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The Domino's EffectThe New Carryout Experience100 Brainstormed Ideas

Print AdvertisementSocial Media CampaignTV CommercialIdea Pitch Feedback

Translation of MediaPlan DetailsMedia BudgetJustification of Media BudgetsMedia Schedule

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Executive Summary Domino’s Pizza was founded by Thomas Monaghan in Jackson, Michigan. Monaghanpurchased a failing pizza company called DomiNick’s in 1960 for $500 dollars. With the help of hisbrother James the company became a success. Currently Domino’s is ranked as the second bestpizza chain behind Pizza Hut with roughly 30% of the market share.(Hoovers, 2016, Domino's Pizza,

Inc.) Domino’s needs to redefine their brand and capitalize on a competitive advantage to gainmarket share and truly compete with larger pizza chains.

In our primary research, we asked participants to fill out a survey about their perceptions ofpizza restaurants. We displayed a picture of the restaurants and asked for them to answer with thefirst thought that came to mind following the reveal of the picture. Then we asked participants toanswer their first thought when asked how they perceive customers from various pizza chains.Through our research we were able to uncover that people did not typically associate Domino’s as aquality restaurant and we found this was where the problem lie. This is what we built our campaignaround, focusing on quality-- of the ingredients, service and brand image.

In our initial research, we found that one of the fastest growing segments of the fast foodindustry is small, rapid order, pizza restaurants. This is because our target market of college studentsare on the go and are in need of quick, yet inexpensive dinners. The consumer will choose Domino'sPizza instead of competitors due to the short amount of time it takes to receive a pizza and thequality of the pizza made through the new carryout process. This new strategy will allow a customerto come into the store, ask for a pizza and be handed a pizza at checkout. Consumers will then sharewhat they did instead of waiting for their pizza to be made. This will be called “The Domino’s Effect”.Domino’s will advertise the campaign through a print ads, TV commercials and social media postsfocused on user-based content.

By focusing on what customers can do instead of wasting time in line, customers can see thatthey are important to Domino’s and their time is valuable. We want Domino’s to engage withcustomers and create an open atmosphere on various social medias. This campaign gives Domino’sthe ability to do that. We predict that the campaign will create a lot of buzz in online communitiesand translate to an increase in sales and an improvement of brand image.

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is a juniormarketing major at Texas A&M from Halifax, NovaScotia, but spent most of her childhood in Cypress,Texas. She hopes to someday work at an advertisingagency working as an advertising copywriter. At schoolshe is involved with FLEX (Freshmen LeadersEstablishing eXcellence) where she is on staff andserves as the Big/ Little Executive. Outside of schoolshe loves to travel, dance, and anything adventurous;she once swam with Beluga Whales and has been on ahot air balloon ride! COORDINATOR

DESIGNER

TASK MANAGER

is a Senior graduating inMay 2017 with her Marketing degree and certificate inAnalytics and Consulting. She currently works forOldham Goodwin Group doing property managementand serves as the Promotions and Advertising Officer forthe American Marketing Association. She is best knownfor being a creative thinker who is constantly striving toimprove not only herself, but the environment aroundher. What fuels Brooke is her love for her husband,

Mitchell, Jesus Christ, and Snapple Tea.

is a senior marketingmajor in Analytics and Consulting from Sugar Land, TX.

Her aspirations after college is to pursue a career inpublic relations or account management. Her on-

campus extracurricular activities involve Aggie Classicsand THIVE SAIV. When she's not in school, her garage isher workshop where she builds beautiful woodenpieces and little knick knacks. Her favorite things in lifeare traveling, animals, and cookie dough.

Samantha Thomson

Anna Punnoose

Brooke Byrum

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SOURCE MASTER

PROOFREADER

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is a junior at Texas A&MUniversity seeking to earn a degree in Finance with acertificate in advertising. Hunter enjoys taking theadage “perception is reality” and applying it to hiswork. By looking at things from a different angle,

Hunter is able to enjoy things in life that wouldnormally be perceived as ordinary. Aside from hiswork with Venture as source master, Hunter workswith the Corps of Cadets marketing department as

producer and brand management.

is a senior marketing major atTexas A&M University from College Station, Texas.

Growing up in Aggieland and being a third generationAggie, it was not a hard decision to choose where toattend college. Haley hopes to use her marketing

degree and excitement for retail to pursue a career inbuying. She served as a retail ambassador for the ZaleLeadership Scholar program, is a Young Life leader atBrenham High School, and is involved in Kappa DeltaSorority. In her free time Haley enjoys spontaneous

adventures and spending time with friends..

Haley Reim

Hunter Coleman

VENTUREPage 5 of 51

Founded in 1960, Pizza Hut became an internationalfranchise pizza delivery corporation right out of AnnArbor, Michigan. Being only #2 in the pizza chainindustry behind Pizza Hut. Domino's is running thepizza delivery game. With more than 12,500 deliverylocation in more than 80 countries (5,000 being in theUS), Domino's catering to people all around theworld. The company owns and operates about 385locations in the US, while the rest are franchised(Hoovers, Domino's Inc., 2016).

Industry Overview

Many contenders of the US Fast Food and Quick Service restaurantindustry include Chipotle, McDonald's, Wendy's, KFC. Pizza Hut, TacoBell, etc. Revenues from fast food restaurants equal to about $2.7trillion annually. These quick service restaurants are booming inLatin America, the Middle East, and the Asian region. This industryincludes more than 250,000 restaurant locations all over the worldwith a combined annual revenue of $180 billion (Hoovers, Fast-Food& Quick Service Restaurants, 2016).

This industry is driven in the competitive field by consumer tasteand personal incomes. A majority of all demographics make up thetarget market for quick service restaurants. This enterprise isgrowing at a steady rate and enjoying more and more successamong consumers. The menu prices at these fast food restaurantstend to be low while offering a great deal on meal combos.However, there must be some balance to continue the benefits ofusing value-priced options to boost traffic against the potentialerosion of sales and profits (Hoovers, Fast-Food & Quick ServiceRestaurants, 2016).

There are many opportunities and room for growth in this industryalong with many risks. A few areas for growth are expansion ofbreakfast menus, new beverage and food options, and going greenand sustainable. On the other hand, a challenge that this industryfaces is the high vulnerability to food contaminants such as E. coli,salmonella, and hepatitis. Another threat that those in this businessface is high competition. Consumers have a variety of options tochoose from that can offer them something better than the nextone can (Hoovers, Fast-Food & Quick Service Restaurants, 2016).

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Trends

Revenue of the quick servicerestaurant (QSR) industry inthe United States from 2002

to 2020 (in billion U.S.

dollars)

Industry Analysis

“As the popularity of following a gluten-free diet continues to grow, theinfluence on restaurants also appears to be growing across foodservicesegments from quick service to fine dining.”

“Gluten-free as an ingredient claim on menus grew 127% from Q2 2012-Q22015 and is the top nutritional ingredient claim by a substantial margin.

In general, there is an increase in spending in fast food and quick-servicerestaurants (rising 2.7% in June 2016 vs. June 2015). This is due to UnitedStates personal income. “fast casual dining growth” Additionally, it isprojected that there is to be an annual 4% growth rate between 2016 and2020. (Hoovers).

Industry relying on “new menu items and product launches to attract newcustomers and differentiate their brands.”

Going green and sustainable – more transparent and consumersincreasingly concerned with food quality and procedures

Growing trend of eating gluten free

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One of the most defining aspects of the fastfood industry is a low cost to calorie ratio (AOL,Fast Food: Filling Up Without Emptying YourWallet, 2011). Fast food restaurants are able tofill customers up without digging deep intotheir wallets. In fact, households in the U.S.

tend to spend more money on food as netincome increases (USDA, Food Prices andSpending, 2013). This translates to greatfinancial growth opportunities for fast foodcompanies as U.S. personal income hadincreased 2.7% in June of 2016 alone, incomparison to the same month in 2015(Hoovers, Fast-Food & Quick-ServiceRestaurants, 2016). As Americans have realizedhigher household income, the gap betweenfood-at-home and food-away-from-home haswidened, dramatically increasing in favor of thelatter (USDA, Food Prices and Spending, 2016).

In 2014, spending on food-away-from-homerose to 50.1% of family’s’ expenditures on foodin the United States- for the first timesurpassing food-at-home expenses (USDA,

Food Prices and Spending, 2016). Thesecompelling statistics further back financialgrowth projections of an annual compoundedgrowth rate of four percent for the next fouryears (Hoovers, Fast-Food & Quick-ServiceRestaurants, 2016).

Growth

One of the fastest growing segments of the fastfood industry is small, rapid order, pizzarestaurants. Similar to Chipotle burritopreparation, these casual pizza chains makesingle portion pizzas customized to your likingwhile you wait in line. These stores, however, arebringing in serious cash flows. Blaze Fast Pizzareported $105 million in equity funding during2015, while adding 55 more locations, and triplingrevenue (Hoovers, Fast-Food & Quick-ServiceRestaurants, 2016).

A recent trend in the food industry has involved asurge in healthy and safe food preparation. Aftercompanies, such as Chipotle, have come underfire for health violations during food preparation,

companies are pushing their health standards inmarketing campaigns. The ability to brandcompanies as healthy brands in a predominatelyunhealthy market would be invaluable intargeting a growing segment of customersconcerned with sustainability and food quality(Hoovers, Fast-Food & Quick-Service Restaurants,2016).

Small Rapid Order Pizzas

Healthy Preparation

Growth in US Countries

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Delivery services and restaurant meals aredependent on discretionary income. In the2000s recession Domino's had to cut costsand the company had to decrease theamount of employers. Like many of theircompetitors, this is an outgoing threat forDomino's success. (Hoovers, 2016)

Many restaurants now serve healthy optionsdriven by the increasing trend of gluten-free,

diabetic and vegetarian diets. Domino'sdelayed their success in this market andannounced their line of salads and gluten-

free crusts just last month, August 2016.

(Hoovers, 2016)

Restaurants are one of the most highlyregulated industries and keeping thepreparation, handling and serving inregulation is costly. Those who do not followthe USDA guidelines put their reputation atrisk. (Hoovers, 2016)

The pizza industry includes a wide variety ofcustomers with one in every eight people inthe United States consuming pizza daily. Ofadults, the typical consumer is a whitemale, but overall children eat more pizzathan adults. Therefore, busy, workingparents are the key target market forDomino's. (Miller 129-127)

Key Target Market

In 2012, fast food restaurants spent $4.6billion in total on all advertising, an 8%

increase over 2009. For context, the biggestadvertiser, McDonald's, spent 2.7 times asmuch to advertise its products as all fruit,vegetable, bottled water, and milk advertiserscombined. (Advertising Age. 11/8/2010, Vol. 81Issue 40, p3-3. 1/5p.)

The United States fast-food industryrepresents an important business sector withrespect to national and internationaleconomics. Due to the low levels of productdifferentiation and high industrycompetition, fast-food companies heavilyengage in advertising and brandingactivities. (Journal of Food ProductsMarketing. Jan/Feb2014, Vol. 20 Issue 1, p55-

74. 20p.)

Advertising

Challenges

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History

Papa John's prides itself on high quality pizza offering severaldifferent styles of pizza with customizable toppings. John

Schnatter, the founder of Papa John's, began selling pizza in his20's at home with his custom made pizza oven created with abroom. The franchise began in 1986 in Indiana, moved toKentucky in '89 and went public in 1993 (Hoovers, 2016).

The target market for PapaJohn’s consists of workingparents and single motherswho see cooking as a chore nota hobby. They use carry out ontheir way home from work anddelivery on a weekend night toprovide dinner or lunch fortheir family (Miller 129-127).

Target Market

Papa John’s has 4,893locations across the UnitedStates and 39 internationalmarkets. (Hoovers, 2016)

Advertising Spending

$119 million (Morrison 2013)

Distribution

Extreme high brand loyalty- those who ate Papa John'sgrowing up order PapaJohn's for their family.High quality ingredients -focused on providing qualityingredients at a great value.

Well trained employees -consistency in the quality ofcustomer service fromlocation to location.

Strengths

("Papa John's Pizza SWOTAnalysis")

Starting in 2015, retiredquarterback, PeytonManning and Defensive Endfor the Texans, JJ Watt, arethe current celebrityendorsers for PapaJohn's. The campaign isadvertised on ESPN, Spike,

Comedy Central, NFLNetwork and FX. (Wohl, 2016)

High priority for Papa John’sis cutting expenses andkeeping its food costs low.

Papa John’s always advertisesgreat deals and low prices.(Hoover, 2016)

Current Ad Campaign

Current Positioning

#3 pizza chainSales spiked by 8% in 20157.3% marketshare (Hoovers, 2016)

Slogan

"Better Ingredients. BetterPizza"

Product MixPizzaGarlic KnotsBreadsticksCheesesticksWingsChickenCinnamon RollsCookiesBrowniesPepsi sodas

$1.49 - $15.99 (Menu)

Price Range

Competitive Analysis

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History

Pizza Hut, the world’s #1 pizza chain, was started in 1958 by twobrothers in Wichita, Kansas. Since its start, Pizza Hut has workedto create a tremendous customer base expanding to nearlyevery continent and is now under Yum! Brands who also owns

KFC and Taco Bell. With their recognizable red roofs thecompany offers a wide array of pizza at an affordable price.

Working familiesHas worked to attractmillennials with recentrebranding to offer newproduct offerings (BusinessInsider)Winning back oldercustomers and families byoffering aggressive deals onpizza

Target Market

15,600 outlets in 90countries worldwide

About 15% are company-operated, while the rest arefranchisedOptions to dine-in, carry-out, or the delivery service

Advertising Spending

Invested $247.4 million inmeasured media advertising inthe U.S. in 2013 (Statista).

The third largested Yum!

Brand by ad spending (AdAge)

Distribution

Has largest market share ofquick-serve pizza with a 15%

market share in the US(Hoovers)Remained agile in an age ofchanging consumer tastesand preferences

Strengths

2016 TV ad featuring SNL’sBobby Moynihan promotingthe new bacon stuffed crustpizza (Media Post)“Hut Swag” clothing line forpizza fanatics (Ad Week)

Current Ad Campaign

Current PositioningSlogan"Make it great!"

Product MixPizza (Pan Pizza,

Stuffed Crust, HandTossed, Skinny Slice,

Gluten-free)

PastaSaladsWingsSandwichesSidesDesserts

Ranges $1.79 (drinks), tolarge-size specialty pizzasreaching $18.99, and evenfamily-size wing mealsreaching $37.98 (Fast FoodMenu Prices)

Price Range

(Hoovers 2016)

Positions itself as a familydining option – fun, family-friendly atmosphere. One ofthe few quick-service pizzacompanies that offer a sit-down option.

Rebranding – biggest brandevolution ever, wanting toposition itself as morepremium. Added 10 crustflavors, launched its website,

logo, packaging, etc. to catertowards millennials.(Business Insider)

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History

Little Caesar’s was created by Mike and Marian Ilitch in GardenCity, Michigan. They spent their entire life savings to open their

first store in 1959 where they aimed to expand throughfranchising and paved the way to become the largest carry-outonly pizza chain. In just ten years, the Ilitch family had created asuccessful and growing business with stores in all fifty states

and in 18 international markets.

Middle to low-income familieswho are determined to pay alower amount of money for alarge portion of food to feedtheir families. As well asstudents who have little or noincome and rely on part-timejobs or money from elsewhereto fund their food budget.

Target Market

Little Caesar’s opened theirown mushroom farm in1971 which eventually grewinto their primarily, full-service distribution center,Blue Line, which is now arestaurant supply providerand distributor for foodand restaurantequipment..

Advertising Spending

Little Caesar’s invests about$36 million annually onadvertising.

Distribution

Little Caesar’s has built anetwork of customers and astrong brand name since theopening of the company. Itbrags the title of largest carry-out pizza chain in the world. Byhaving pizza’s “HOT-N-READY”

for customers there is no needto call ahead or wait for a pizzathey can have immediatesatisfaction of their purchase.

Little Caesar’s has alsoimplemented a communityoutreach program where theyoffer pizza’s to the hungry andhomeless as well as victims ofnatural disasters. (“LittleCaesar’s SWOT analysis”)

StrengthsCurrent Ad Campaign

Current PositioningSlogan

"PIZZA! PIZZA!"

Product MixPizza

Caesar WingsItalian Cheese BreadBread BitesPepsi Sodas

Little Caesar’s offers anylarge one topping pizza for$6.00 and their largespecialty pizzas for $8.00.

Price Range

With the introduction of the“Deep Deep Dish Pizza”

advertising efforts have beenfocused on consumer knowledgeof this product. With awardwinning commercials with theinfamous floating heads LittleCaesar’s has expanded theirproduct recognition and brandname. (Adweek)

Number one carryout onlypizza company in the UnitedStatesThe sales figure for LittleCaesars for 2012 is estimatedat $2.9 billionLittle Caesars’ market shareamong pizza chains wasabout 19% in 2014.

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History

In 1952, Marvin Schwan filled his 1946 Dodge Van with a couple of tubsof his family’s homemade ice cream, and delivered it to families in theneighboring western Minnesota area, thus kick starting the Schwanhome-delivery business (Schwan, About Us, 2015). Today, The SchwanFood Company has over 14,000 employees with the same focus

of selling frozen goods on delivery trucks and grocery stores (Hoovers,Schwan Food Company, 2016). Schwan is now a $5 billion private

company still based in Minnesota.

Target Market

Schwan operates fromnearly 600 locations in theUS with home deliveryoffered in all 48 contiguousstates (Schwan 2016).

Shwan’s assets include over4,500 delivery trucks thatdeliver products to thedoorstep of 2.5 millionhomes (Hoovers 2016).

Advertising SpendingSchwan is allocating 40% of itsmarketing budget towardsdigital ads, an increase from the6% in 2013 (Adage, Red BaronPlans, 2016).

Schwan is a privately ownedcompany that declines to shareexact revenue/expense numbers.

Distribution

In home delivery of largequantities of foodHealthier alternative to fastfoodEasier to make than otherin-home-eating optionsWide delivery reach

Strengths Current Ad Campaign

Current PositioningSlogan“Our Passion Is Our Food”

Product MixEdward’s (Desserts)Freschetta (Pizza)

Red Baron’s (Pizza)

Tony’s (Pizza)

Mrs. Smith’s (Desserts)LiveSmart andSchwan’s (HomeService)

$7-$25 range for mostitems (Shwan, ProductsList, 2016).

Charges delivery fee

Price Range

Schwan has positioned itselfas the household name infrozen food delivery in theUnited States and is makingheadway in establishing itselfin Western Europe (Hoovers,The Schwan Food Company,2016).

Schwan also leverages itsdistribution status to partnerwith companies such asNutriSystem to deliver theirproducts (Hoovers, TheSchwan Food Company, 2016).

Agency: RazorfishCampaign: Google AdWordsOptimizationBasis: By combiningoptimized Google searchwords and display advertising,

Schwan sought to reachcustomers that were seekingnew food alternatives. Wheninternet users searched forquick healthy recipes,AdWords helped pushSchwan’s website to a busyfamily (Google AdWords,Driving Online Sales:Schwan’s, 2016).

Schwan’s business model is ledby 4,500 home service trucksthat deliver their vast array of350 frozen products directly tothe homes of roughly 2.5million customers. Schwan hasstrategically repositioned theirFreschetta pizzas to targetupscale and health consciouscustomers, which has resultedin high double digit growthrates for the brand (FoodNavigator, Schwan’s ConsumerBrands, 2013)

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Client Background & History

Domino’s Pizza was founded by Thomas Monaghan in Jackson,

Michigan. Monaghan purchased a failing pizza company calledDomiNick’s in 1960 for $500 dollars. With the help of his brotherJames the company became a success. In need of a vehicle, Jamessold his portion of the company to his brother and Monaghan beginlearning the pizza business by trial and error. He discovered a need forpizza on military bases and in college towns and determined thosetwo segments to be his focus. (Hoovers, 2016, Domino's Pizza, Inc.).

In 1965 the company changed its name to Domino’s, but with the name change came an infringementlawsuit. Domino Sugar sued the company in the 1960’s, however, Domino’s won the lawsuit at no cost tothem. By 1978 Domino’s was operating over 200 stores. The 1980s brought major growth to Domino’s; thepizza company doubled the number of stores they had in the United States, and then went internationalin 1983. (Hoovers, 2016, Domino's Pizza, Inc.)

A national advertising campaign aired in the 1980s that helped aid in Domino's success. They focused onthe concerns that customers had about pizza delivery and also introduced their first ever new product,the pan pizza. Three years later they added their first non-pizza menu item, bread sticks. Not only didDomino’s desire to bake incredible pizzas, but strived to be the fastest pizza delivery company in thenation. Their superior customer service promise of getting the customer their pizza in 30 minutes or lesswas beneficial until one of the drivers got into a car wreck white running a red light. From that pointforward Domino’s focused on a satisfaction guarantee to exemplify their customer service. (Hoovers, 2016,

Domino's Pizza, Inc.)

In 1998, Thomas Monaghan retired as the company’s CEO and David Brandon took over the franchise. Ayear later the company begin selling a line of Italian originals that consisted of special Italian spices.Between 2000 and 2003, Domino’s opened 275 locations nationally and 600 internationally. Finally, in2004 the company went public and growth continued. Unfortunately, due to the economic downturn of2008, 100 locations were closed nationally. The next year, sandwiches were added to the menu and weremarketed to be more superior than a Subway sandwich. Patrick Doyle took over the company in2010, the same time that Domino’s opened store number 9,000 of pizza delivery locations. Today, thecompany operates with more than 12,500 delivery locations in 80 different countries. (Hoovers, 2016,

Domino's Pizza, Inc.)

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When it comes to pizza delivery, Domino’s hasone large piece of the market share. In total,the franchise has 5,000 locations within theUnited States and 7,500 locationsinternationally. (Hoovers, 2016, Domino's Pizza,

Inc.)

Distribution

Advertising Spending

The most recent data of Domino’s advertisingspending comes from 2014 when they spent atotal of $246.7 million on advertising. Thebudget has steadily increased over the years,and in 2012, the budget was $210 million andthen increased in 2013 by $19 million. Thisincludes measured and unmeasured media.

(Statista, 2016)

Current Positioning

Domino’s is ranked as the second best pizza chainbehind Pizza Hut with roughly 30% of the market share.

(Hoovers, 2016, Domino's Pizza, Inc.)

The company has been known over the years forexceptionally speedy delivery. Due to this reputation,

Domino’s now focuses on delivery-store like locationsthat contain limited sitting and no dining area. The focuson the segment that enjoyed their delivery service hasimproved their purpose while also loweringmaintenance cost. (Hoovers, 2016, Domino's Pizza, Inc.)

Domino’s slowly learned over time that customers didnot particularly enjoy the taste of Domino’s Pizza. Theytook an unexpected turn and are currently striving toimprove their pizza recipe. (Hoovers, 2016, Domino'sPizza, Inc.)

When it comes to technology, Domino’s Pizza is theleader allowing customers to order pizza through a largevariety of platforms. This includes: smart TV, text, Twitter,smartwatch, xBox One or even from a Ford car. They arecalling this technology campaign “Easy Order”. Thestrategy is simple, to provide the customer with as manymediums as possible to encourage them to orderDomino’s. (Mintel Group, 2016)

Slogan

“Get the Door, It's Domino's”

Product Mix

“Domino's menu features several different styles ofpizza with a wide array of topping options, as well asadditional items such as bread sticks, cheese bread,

and chicken wings.” (Hoovers, 2016, Domino's Pizza,

Inc.). However, on August 22, 2016 Domino’s beginselling salads in order to extend their menu optionsand create competition with other companies that arenot fast food chains. Their campaign focuses on thestatement, “because sometimes, there’s that oneperson who only wants a salad on pizza night.” Saladsstart at $5.99 and are part of the mix and match menu.

(Reuters, 2016)

From $1.59 for a 20oz drink to $17.99 for a largespecialty pizza like a Bacon Cheeseburger Feast.(Menu-Prices, 2014)

Price Range

Client Information

Target Market

Domino's targets college students and thosewho serve in US military bases. Theystrategically place their locations near collegecampuses and military bases to attract thismarket (Hoovers, Dominos, 2016).

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Recent Marketing EffortsAd Agency, CP&B has recently revitalized thepublic’s perception of Domino’s pizza through aseries of successful ad campaigns, beginningwith the Pizza Turnaround Project. Domino’shad campaigned for years using a 30 minutes orless philosophy, which in return, had labeledDomino’s as the fast but low quality option forpizza. To defy this notion, CP&B created thePizza Turnaround Project.Using the tagline, “Oh Yes We Did,” Domino’sembraced the transparency of shortcomingsand took drastic strides to put the consumerfirst. A five-minute online documentary, T.V. ads,and a website tailored to show all Tweetsrelated to the redesign of Domino’s, shotDomino’s stock price up 44% in the first monthof the campaign. Since the brutally honestadvertisement, stocks have risen 1200% andDomino’s has become the fastest growing majorQSR along with Starbucks (CP&B, Domino’sPizza, 2016).

Domino’s most recent campaign involves PizzaPayback rewards. In the past, Domino’s hasoffered $7.99 charge for large three-toppingpizzas Monday through Thursday and uppedthe price Friday through Sunday. Now, Domino’shas extended the deal to all seven days a weekand is offering a payback program for customerswho feel shorted over the past promotion.

Customers can enter a drawing to receive freepizza for a year as well as other smaller ticketgifts in reconciliation for the “overcharging” inthe past (AdWeek, Domino’s Apologizes forOvercharging, 2016).

Domino’s has made efforts in striving to makeordering pizza as accessible and seamless aspossible. Domino’s identified the surge in usageof emoji’s in pop-culture, and revolutionizedsocial media advertising by introducing order-by-emoji. By linking your favorite order onDominos.com and your personal Twitter handle,

customers were able to simply tweet the pizzaemoji to order their pizza. The idea was animmediate success with over 500 orders on dayone, and it gained more traction when JimmyFallon, ABC, Time, The Today Show, and morereported on the idea during their broadcasts(CP&B, Domino’s Pizza, 2016). Since then,

Domino’s social media presence has eclipsed 1million followers on Twitter and a staggering 14million likes on Facebook (RedBooks AcademicEdition, Domino’s Pizza Inc., 2016). As JP Morgananalyst John Ivankoe said, “Domino’s is atechnology company disguised as a marketingcompany disguised as a pizza company”(AdAge, Domino’s Rolls Out Spots, 2016).

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S.W.O.T Analysis

Strengths Weaknesses

Little to no career pathing foremployeesLarge number of franchisescreates for difficulty in operations

Opportunities

Allow for more dine-in storefrontsGoing green and sustainablepracticesGrowing marketplace for fast foodand quick service restaurants

Costs throughout the supply chainTrend of being health-consciousOther quick service pizzacompetitors

Global presenceSpeed and convenienceWide array of menu choicesGreat omni-channel presence -

social media, smartphone app,

website, call-in, walk-in

Threats

Strengths

Domino’s has over 12,500 locations worldwide in over 80 countries (Hoovers) and has done anexcellent job maintaining global market share. Additionally, Domino’s does a fantastic job beingtransparent with customers through the mobile app for easy ordering, by offering the online pizzatracker when ordering from a computer, and allowing for multiple touch points with thecustomers. Another way this is demonstrated is through Domino’s large social media presence,

engaging millennials and younger customers. Domino’s is known for speed and conveniencefunctioning as a quick service option marketed towards customers who are on-the-go and valuetime. Another strength is the wide variety of menu items - not only pizza, but also salad, pasta,

bread, dessert, and drinks. Overall, Domino’s has found ways to be innovative and create newways to connect with and retain customers.

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Weaknesses

A weakness that Domino’s faces is the lack of career pathing for their employees. After employeeswork in the store to deliver or make pizzas, there is little track of retainment to be sent to theheadquarters or train from the bottom to work their way up. Additionally, with the large numberof locations across the globe, Domino’s is bound to have logistical issues of running franchises aswell as company owned locations. This makes it difficult to have complete unity and have acohesive feel when going to different Domino’s locations.

Opportunities

There are several opportunities that Domino’s can take observation of and capitalize on tobecome better and remain competitive in the market space. This includes allowing for a dine-inoption when the customer goes to the Domino’s storefront to pick up pizza. Domino’s does speedand convenience well, but there is opportunity to capitalize on a sit-down dinner in an age whereeven something so simple as eating and sharing a meal has become rushed. Additionally, there isa trend of going green and moving to sustainable practices that is important in for packaging andsourcing for ingredients as consumers are increasingly concerned with food quality andprocedures (Hoovers). Lastly, there is an increase in sales growth in the fast food and quick serviceindustry that is projected to grow at 4% per year from 2016 to 2020 (Hoovers).

Threats

A corporation to the scale and magnitude Domino’s encompasses comes with threats such astremendous costs to the supply chain. From the cost of ingredients, building new locations, andgeneral logistics, costs are incurred at a high capacity. Additionally, there is threat to Domino’smarket with the increasing trend of eating organic foods and people being conscious about whatthey put into their body. Consumers may experience second thoughts before indulging in a quickservice pizza, as there are now more fast food healthy options that can be used as a substitute toDomino’s. Another threat to Domino’s is the fact that there are several other competitors alsoworking to capitalize on offering pizza at a low cost with fast service, such as Papa John’s, LittleCaesars, and Pizza Hut. Therefore, it is important for Domino’s to continue to come up with newideas and strategies to maintain current customers while also reaching new ones.

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Ethnographic Research

Section #: 500 Team #: 3 Date & Time of visit: Wednesday, 14 September, 2016 @ 7PMTeam Members: Brooke Byrum, Hunter Coleman, Anna Punnoose, Haley Reim, Samantha Thomson

Restaurant name & location: Domino's, Texas Avenue location

On September 14th, all the members of Venture attended the Domino’s located at 3104 Texas Ave S, toexperience what our customers see. It was a busy Wednesday night around 7:00 pm.

Upon arrival we noticed the rundown outside appearance, where the paint was peeling and you couldtell the sign was in dire need of repair, making for an unimpressive first impression. Once we steppedinside we took in the design aesthetic and quickly began to observe. With a small lobby only catering tocarry-out guests, there was still ample seating for customers and a comfortable atmosphere for waiting.

We did notice however, that the menu was not in plain sight. It took us some time to realize that theadvertisements displayed in front of us were only the specials and that the entirety of the menu was offto the side and seemed insignificant to the ordering process. The variety of the products on the menusurprised us because some of the items offered had never been advertised to our knowledge and weweren’t aware that Domino’s served these products. Above us, hanging from the ceiling was apromotion for salads that were being offered. Once we decided what we were going to order westepped into line where our order was immediately taken. The customer service at the cash register wasexceptional. The employee was helpful and friendly as well as suggested additional items we may beinterested in, for a which a few we ended up purchasing in addition to our original order. One of ourgroup members used a coupon from a popular app and was able to successfully save money on herorder. Once we all placed our orders we took a seat in the lobby and continued to observe.

We realized just how busy they were. The phones were constantly ringing and we made the observationthat we never saw the same delivery driver twice. People continued to leave from the back carrying hotand ready pizzas, but none returned while we were there. They had very few customers come up to thecounter to order like we had, but had most of their customers order over the phone and either come into pick it up or have it delivered. You could tell their priority was the call ahead orders and deliveries.From the time we ordered to the time all of us had our food, 24 minutes had passed. It was notexceptionally fast service and some of the orders you could hear over the phone, which were placedafter we ordered, were picked up by customers before our food was given to us.

Overall, this was a great experience to get a customer’s point of view for our research. We realized thatthis time of night, they are exceptionally busy and have a rigorous plan for keeping up with orders andattempting to complete them in a timely manner, and that call-ins and deliveries were definitely a toppriority. The appearance of the restaurant was lacking a wow factor, as it was easily forgettable anddidn’t elicit any response from the customers. The staff did a great job interacting with us and makingus feel welcomed and important to their success. We observed some great things in action as well as afew that need improvement, but with some attention Domino’s can significantly improve theexperience their customer’s have while enjoying their pizza and various other products.

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Target Market Identification

Market Reach Using Targeted Characteristics:

University or recently graduated studentsTechnologically savvyValue oriented purchasing habitsTime conscious

Characteristics of Demographic

Characteristic Desired: Easy Ordering- Domino’s has deployed a variety of web based ordering platforms toreach out to the 18-24-year-old market of which 33% spends more than 20 hours a week online (Eder, 2013).

Characteristic Desired: Good Value- Domino’s has recently revamped specials and deals to further reachout to the value conscious target market.

Characteristic Desired: Inspirational Brand- Domino’s went through one of the most public redesigns of acompany’s image in recent history, looking to not only turn the company around but also inadvertentlysatisfying the inspiration of their target audience.

Solution: Web Based Ordering- Domino’s has invested heavily in making sure that their orderingsystem is accessible everywhere an 18-24-year-old would look online. Domino’s developed a mobileapp for both iOS and Android that accounts for 49% of its online sales (Mintel, 2016). By alsopartnering with Apple to create an ordering app on the Apple Watch, Domino’s is capable ofreporting where in the food preparation process an order is. This allows customers to adequatelyprepare for when to expect their food (Mintel, 2015).

Solution: Coupons and Weekly Deals- Value doesn’t mean cheap, but rather, sometimes means gettinga better deal than normal on items. Students (in the range of the target market) are 11% more likely touse coupons than non-students looking to shop at stores or online sites (Mintel, 2011). By using appslike Hooked, an app that highlights nightly deals at Domino’s and other restaurants in college towns,and $6.99 carry out “EVERYday” campaigns, Domino’s looks to bring in the value conscious consumer.

Solution: The Pizza Makeover Project- By being so vulnerable in regards to their criticism and lack ofsuccess, Domino’s Pizza Makeover advertising campaign resulted in one of the best one quarterfinancial turnarounds of a company in the last ten years (CP&B, 2016). This vulnerability, whileintended to turn the company around, also served as entertainment and inspiration to manypotential customers in the target market who were intrigued by the new Domino’s.

Domino’s has recently undergone a massive rebranding campaign that has sought to change thepublic’s perception of the company. Domino’s understands that 18-24-year-olds are looking for an“easy ordering” system and a “good value” (Mintel, 2015). Similarly, 86% of this target market wantsbrands to inspire and entertain them, not just provide services and food (Eder, 2013). Through theimplementation of technology in the ordering process and honest yet comedic ad campaigns,Domino’s caters its brand to 18-24 year olds that are “in the know” of society, focused on getting thebest bang for their buck, and are on time crunches when it comes to meal preparation. Commonattributes describing this demographic include:

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Target Market Profiles

John is a Caucasian 21-year-old universitystudent taking a strenuous class load in the Fallsemester. Although, at times it seems asthough his schedule isn’t that stressful due tohis involvement in social organizations andpropensity to throw a party or two a month.

John enjoys working out, playing Halo 5Guardians, and bulking- a technique wherewhile lifting and increasing weight strength,

users also eat large amounts of calories to fuelbody energy. John’s parents give him apredetermined amount of money each monththat John first allocates to spending ongroceries at HEB; however, when school andsocial life increase in workload John spends hismoney on fast food. John frequently ordersDomino’s on his Apple Watch to be deliveredto his house after finishing his workouts at theRec Center. John’s go to order is an originalcrust pizza with all veggies and chicken, tomaximize protein and vitamins. Sometimes,when not feeling pizza, John will get Domino’sSpecialty Chicken delivered to mix things up abit.

Jenny is a Caucasian 24-year-old who recentlymoved out of her college town post-graduation and into the apartment of herfiancé in a neighboring metropolitan area.

Jenny is an applied mathematics major andworks in the research and developmentdepartments of an engineering company whileher fiancé studied finance and is now workingin a consulting agency. Because of their crazywork schedules, neither Jenny nor her fiancéfrequently have time to make food at home.

Jenny passes by a Domino’s on her ride homevia bicycle every evening after work andoccasionally stops to grab a fully preparedmeal for the family. Jenny is able to re-orderthe same pizza that her fiancé likes using herDomino’s account in the Domino’s app. She isalso drawn to the newly announced Domino’sSalads that offer a healthy side dish to theirmeal.

Meet John Meet Jenny

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Target Market Analysis Through primary research of conducting five individual interviews and creating a survey, ofwhich there were 89 responses, Venture was better able to understand the respondents thoughtsand impressions of the quick-service pizza industry. Although the data is primarily skewed towardscollege-aged students, this information is relevant and will help to give an accurate representationof Domino’s target market of customers aged 18-24.

The survey that was conducted consisted of ten questions that included answers from acompletion test using the projective technique and multiple choice options. In our survey, 46.1% ofour respondents said that they eat pizza at least 2 times a month and 21.3% claim to eat it once aweek. These percentages are impressive. The pizza business will never be left without without aconsumer for this target market. When consumers were asked their perception of people who eata Domino’s, the top answer was “cool” and the second top response was “smart”. Comparing theseresults to Little Ceasers, whose top response was “cheap”, it is concluded that Domino's haspresented a great balance between quality and price. Our respondents also were given a picture ofa Domino’s store and were asked to tell us the first thing that comes to mind. Pizza, of course, wasthe number one response, but 18 respondents in are target market shared a positive attributeabout Domino’s with words like yum or delicious. This might seem like a low number incomparison to respondents however if the first thought of Domino’s is a positive one, Domino’s hassuccessfully created a positive brand association quite a good portion of its customers. The fiveinterviews that were conducted allowed for the the team to get a in-depth glance at individualperceptions and preferences in regards to pizza. All of the interviewees were people in our targetmarket, ranging from age 20 to 24. Overall, it was discovered that most of the respondents look forquality, convenience, and price when choosing a pizza restaurant, but when they had to choosebetween the importance of either quality or convenience, quality was slightly favored. It was alsodiscovered that they have a budget in mind of $6 to $10 dollars when eating fast food, thefavorable setting to consume pizza is in the home, and they do not usually order additional items(i.e. dessert, salad, pasta, etc.) when ordering. From the information gathered from the interviews itcan be determined that customers in Domino’s target market value time, are price sensitive, andalso look for quality of fresh ingredients. Though every person has different preferences of a pizzaretailer, Domino’s has done a tremendous job of branding itself as a great option for their targetmarket.

The target market’s perception of Domino’s is favorable, however, there is still room forimprovement due to the negative associations with Domino’s that some consumers still havein their mind. In order to increase their positive associations, Domino’s and Venture can usenegative attributes found in the survey and interviews and improve on those weaknesses.

Conclusion

VPage 22 of 51

Question 2: People who eat at Papa John’s are…

Survey Results 89 respondents (75 in Target Market)

Question 1: Please select the age range that best fits you

Page 23 of 51

Question 3: How many times a month, on average, do you consume pizza?

Question 4: How much are you willing to spend for a large pizza?

Question 5: When ordering pizza what is your preferred method to place an order?

Page 24 of 51

Question 6: What is the first thing that comes to mind when you see this picture?

(Domino's Building)

Question 7: People who eat at Little Caesar’s are…

Page 25 of 51

Question 8: What is the first thing you think of when you see this picture?

Question 9: People who eat at Domino’s are…

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Question 10: What is the first thing you think of when you see this image?

Page 27 of 51

Personal Interviews

V1. What is the most important thing to you when choosing a fast food restaurant?

A: 20 year-old maleB: 20 year-old female

C: 20 year-old femaleD: 21 year-old female

E: 24 year-old male

2. What is the most you are willing to spend on a fast food meal?

3. How often do you consume pizza monthly?

4. What is the most popular setting for you to consume pizza?

5. Who is your first choice company for a pizza?

A:

B:

C:

D:

E:

Quality/healthQuick and cheapConvenienceQuality over pricePrice

A:

B:

C:

D:

E:

A:

B:

C:

D:

E:

$10$10$15$7.50$6

Once a monthMaybe once a monthAbout twice a monthAbout 3 times a monthOne or two times per month

A:

B:

C:

D:

E:

At home, for dinnerAt a gathering with friendsIn a rush after workEat it most at home; get it to-go, eat it at homeAt home

Luna’s Pizza (a local pizzaria)

Papa John’sPizza HutGo-to is Domino’sLocal pizza franchises; brand names tend to be pricey or generic.

A:

B:

C:

D:

E:

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6. Is convenience or quality more important to you when choosing a pizza restaurant?

7. Do you ever order additional items with your pizza? (i.e. dessert, salad, pasta, etc.)

8. What do you think of when you hear the word “Domino’s”?

A:

B:

C:

D:

E:

QualityQualityIt’s about even for bothConvenienceDepends on the situation. If it’s a quick, unimportant meal - convenience. It it’splanned out and the main item - then quality

A:

B:

C:

D:

E:

OccasionallyNoNoNot reallyOnly if there is no cheaper alternative. Such as salad- I'd rather make a salad or buyfrom somewhere else.

A:

B:

C:

D:

E:

FastPoor serviceBBQ chicken pizza (favorite pizza from Domino’s)Late night eatingSquare pizza, quick, convenience, low cost, salty, econo pizza, low quality

Page 29 of 51

Key Research InsightsQuality Over Convenience

In a recent study done by Consumer Reports, they found that thefast-food industry is quickly shifting to ‘fast-casual’ restaurantswhere quality is king over price and convenience. More and morewe are seeing the commitment from consumers to higher-quality,slightly more expensive restaurants over those who boast thequickness and ease of access to their meals. In our primaryresearch, it was concluded that Domino’s has a balance of qualityand low-price. It is not the leader of either category but appeals toboth elements equally.

All Consumers Are Price Sensitive

Through our research we observed that our target market, 18-

24 year olds, are exceptionally price sensitive. Hoping to spendanywhere from $6 to $10 dollars on a large pizza, they reallyemphasize the importance of the perfect price whenchoosing their pizza provider. But in a competitive industry,like fast food, more factors influence purchase decisions thatjust finding the right price. How much a customer is willing tospend on a meal is determined by the value they associatewith the restaurant. Consumers are less price sensitive whenthey know that they are getting more for their money. To besuccessful you have to understand the fast-changing attitudesof customers. Whether it be health, quality, or convenience,

the perfect price is backed up with the perfect explanation.

Consumers also discussed how they were more willing to spend more on meals where they know thatthey are getting fresh, sustainable ingredients. Companies like Chipotle and Panda Express reallyemphasize where they get their ingredients and why they are helping you make a smarter diningdecision. Domino’s most recent campaign focuses on the reinvention of the recipes and theircommitment to having real, unprocessed ingredients but stops short of explaining where their product iscoming from and why it is of high quality. Convincing customers of the high quality of a product isessential in differentiating yourself from competitors (Forbes).

To be able to charge more for your products and not lose business you need to market your product as ahigher quality good. The more customers get out of a dining experience, the less price sensitive they willbe. Fast food restaurants that are successful at delivering this experience, outline the benefits fromchoosing their restaurant over another and bring a unique experience to the customer so that they arewilling to spend the extra dollars to enjoy a meal at their restaurant. Although you can extend your pricesto match the quality of the experience, there is a point where this will no longer be successful.Companies, like Domino’s, must find the perfect balance between quality and price to be competitive intheir industries (Forbes).

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The Economy might be in decline, but pizza sales are soaring

Always room for improvement

Quick food, Quick Opinion

According to the National Restaurant Association, restaurant sales hit a record high in 2015, most of thesesales occurring in fast-casual, and quick service restaurants. In a recent study by advertising firm BBDO,

found that more and more people are less concerned with the price and taste of the food, but the overallexperience of the meal. They want to engage with their food, enjoy their food, and then share theirexperience. This contributes to the growing pizza industry in the United States.

The economy in the United States has shown significant declines for many industries across the nationbut thankfully, pizza is not one of them. Consumers are pizza lovers and are committed to the restaurantsthat provide that exceptional experience for them. In our primary research we discovered that 46.1% ofour respondents said that they eat pizza at least 2 times a month and 21.3% claime to eat it once a week.

This creates a huge opportunity to satisfy this need for consumers. As long as you build it they will come,

so as long as we are making pizza, we will have customers begging for our cheesy pies of goodness.

Domino’s has had huge success for many years in the pizza industry. Customers have brand recognitionand associate the company with positive attributes, there are stores in 81 countries, making it the secondmost franchised pizza company in the world, and are the number one pizza delivery in the United States.Even though Domino’s is a prosperous company, there is always room for improvement.Domino’s launched its campaign “The Pizza Turnaround” in 2009, reinventing their pizza “from the crustup”. They recognized their flaws and faced them head on. Sales grew exponentially and they saw greatsuccess. Although this campaign initially created a lot of buzz, the effects are wearing off and it is time tomake some new improvements in the marketing strategy.

Consumers are rapidly changing their focus from quick and cheap meals to meals that take a little moretime, but with a lot more to give. Generally people who are stopping at these fast food restaurants knowthat they are sacrificing natural, fresh ingredients for the convenience of having it readily available andwithout much damage to their bank accounts. The fast food industry has a bad rap for unhealthy andpotentially harmful ingredients to make their restaurant time efficient and cost effective. Consumers oftenassociate quick food with low quality.Companies who successfully market their product to highlight their fresh ingredients and quality meals,have to differentiate themselves from the competing restaurants and prove they do not share the samephilosophies on sacrificing quality.It is not an easy task to disassociate a company from this image thatconsumers have about fast food restaurants, but is essential when trying to establish a unique and qualityproduct. Page 31 of 51

The Problem

Many of the survey responses Venturegathered allude to the problem that there isan issue with Domino’s brand image.

Although Domino’s underwent a rebrandingin 2010 called the “Pizza Turnaround” (PizzaTurnaround), there are still associations incustomers minds about quality of pizza thatis considered “cheap”. Although most of thewords that came to mind when asked aboutDomino’s were positive, such as “cool” and“smart”, compared to competitors, there isimprovement to be made with associations.However, this idea of poor quality and cheappizza may fall under the umbrella of fastfood pizza in general. Domino’s experiencesthe problem of correcting misconceptionsand giving consumers a cohesive idea of whoDomino’s is as a company.

Problem: Venture has pinpointed three problems facing Domino’s: the brand image customershave in their mind, the quality of ingredients, and the atmosphere at Domino’s locations

The quality of Domino’s ingredients is another a problemto be addressed. In gathering data about Domino’s targetmarket comprising mostly of millennials and collegestudents aged 18 to 24, most value time, are pricesensitive, and look for the quality of fresh ingredients.When asked whether quality or convenience was moreimportant, the majority of the respondents said quality.Therefore, products and ingredients should be fresh andsustainable because of the expectation of transparencywith food quality and procedures. The transparency islimited, as the process goes from ordering the pizza toreceiving the pizza, but there is little knowledge of howthe pizza is made. Customers increasingly care abouthow ingredients are sourced, as well as the freshness ofthe vegetables, cheese, meats, and other perishables, asthere is an increasing trend of going green (Hoovers).Additionally, with going green there should be concernfrom Domino’s about recycling and how customersdispose of cardboard boxes after consuming a pizza.

Another issue posed to Domino’s is the atmosphere of the pickup locations. With visiting several locationsin the Bryan/College Station area, as well as others, Venture has noticed an issue with the cleanliness oflocations. Consumers will recognize this issue and begin to associate it with the pizzas. Additionally, thereis very little seating and the waiting area is cramped when picking up a pizza for takeout. Although it isimportant to have localization for storefronts depending on the city, there is little cohesion in the interiorstyle. Another issue with Domino’s atmosphere is there is no transparency inside the restaurant to seehow the pizza is made. It is increasingly important for the customer to see the process of start to finish ofhow their pizza is made and with what ingredients.

Brand Image

Quality

Atmosphere

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Campaign Objectives

Increase sales 20% to $2.64B by the end of 2017. Sales for 2016 were $2.25B (Hoovers, 2016,

Domino’s).Maintain 30% premium over industry average price/earnings ratio during 2017. Domino’scurrently has a 33.41 P/E versus an industry standard of 28.50 (Hoovers, 2016, Domino’s). Increase 12 month growth rate of net income to surpass 25% - leading to a more competitivefinancial sheet versus main competitor, Papa John’s (30.17% growth) (Hoovers, 2016, Domino’s).

Communication Objectives

Simplify menu optionsImprove brand associations Drive awareness of new salad optionsImprove store atmosphere

Marketing Objectives

Increase net incomegrowth rateMaintain premiumprice/earnings ratioIncrease sales

Quantifiable

Identify a TargetAudience

Specified TimePeriod

Benchmark& Degree ofChange Sought

Marketing Objectives Communication Objectives

Decrease menu optionsClean up restaurantPromote healthy optionsIncrease weekly salads sold

College Students (ages 18-24)College Students (ages 18-24)

20% increase to sales to$2.64 billion for 2017 fiscalyear.Greater than 33.41 P/E ratioduring all of 2017.

Increase NI growth tosurpass 25% over the 2017year.

Have 65% of survey participantsassociate Domino's with qualitypizza.

Increase salad sales by 2%

monthly (16% by end ofcampaign).

Completion of atmosphereimprovement training ofemployees. Completion of new and simplifiedmenu.

8 months

VOne fiscal year

Page 33 of 51

Brand Funnel

Create a renovatedmenu with simplifiedoptions. Make salads availablefor purchase at adiscount or free if apizza is purchased.

Advertising byexemplifying quality ofDomino’s productsand increaseatmosphere of thestore.

1. Awareness 2. Knowledge/

Comprehension

Create newadvertising campaignwith a focus on qualityproducts by showingthe source of theingredients or how theingredients are beingprepared which is in atidy store with cleanchiefs and cashiers.

3. Liking

Make the restaurantextremely clean withcomfortable tables andchairs for those waiting.

This will create a differentperception of Domino'sfood if the store front isclean and tidy. Reverse Domino's currentbrand associations fromthose of gross or unhealthyto those of exceptionalquality for the price andclean

4. Preference

Highlight Domino'sadvantages over theircompetitions like theirsalads and qualityingredients.Suggest an hourlycleaning requirementfor employees to ensurethe cleanliness of therestaurant at all times. Emphasizecustomizability with thesimpler menu options.

5. Trial To increase salad sales, givethe salads at a discount tothose who order a specificsize of pizza. This will beemphasized throughcoupons. Advertise a day in which asalad is free with anypurchase. Create awarenessof the salad give awaythrough social media and tothose signed up for theloyalty program.

Have carry out promotionsfor the pizzas and salads toprove to the customers thecleanliness of the store inwhich the pizza is made.

6. Repurchase/Regular Use

Continue the scheduleof cleanliness of thestore, promotions andemphasis on qualityproducts. Ask customers if theyare a part of the loyaltyprogram so they canbegin earning Piece ofthe Pie rewards.

Page 34 of 51

Creative Brief

Why are we advertising?

Who are we talking to?

What do they currently think or know?

What would you like them to think?

What is the single most persuasive idea wecan convey?

Why should they believe what we say?

Client: Domino's

To re-position Domino's as a quality andvaluable pizza joint. We want to give theconsumer's perceptions of Domino's a littleboost.

We are targeting college students ages 18-24.

Our target market currently has a perception that Domino's doesn't offer much quality in their pizza.

This could be due to the unwelcoming atmosphere when people come into pick up their order. Alsodue to the excessive coupons Domino's puts out, consumers have developed a mindset of Domino'sbeing "cheap".

We want out target market to believe that we offercleanliness and quality in our fresh ingredients(vegetables, meats, and cheeses). We want them tofeel like they are getting their monies worth whenthey order with us.

Domino's low prices, healthy menu options, andquality ingredients give you the best bang for yourbuck.

Domino's has done very well with the "Pizza Turnover" project, but those effects arewearing off. We want to reestablish Domino's on their mind as a quality pizza joint.Domino's is determined to be more transparent in what consumer's want to see. Wewant them to come in and have assurance that they are getting what they paid for. Ourgoal is for our consumers to be satisfied with our product and services.

Page 35 of 51

Venture has pinpointed three problems facing Domino’s: the brand image customershave in their mind, the quality of ingredients, and the atmosphere at Domino’s

locations.

A few years ago Domino’s released a campaign called “The Pizza Turnaround” that essentially reinvented the recipesof the pizza to ensure a higher quality pizza and improved taste. With knowing this Venture can enhance Domino’srebranding with the “Domino’s Effect” and The New Carryout Experience.

Increase sales 20% to $2.64B by the end of 2017. Sales for 2016were $2.25B (Hoovers, 2016, Domino’s).Maintain 30% premium over industry average price/earnings ratioduring 2017. Domino’s currently has a 33.41 P/E versus an industrystandard of 28.50 (Hoovers, 2016, Domino’s). Increase 12 month growth rate of net income to surpass 25% -leading to a more competitive financial sheet versus maincompetitor, Papa John’s (30.17% growth) (Hoovers, 2016, Domino’s).

Communication ObjectivesSimplify menu optionsImprove brand associations Drive awareness of new salad optionsImprove store atmosphere

Marketing Objectives

Quality Over ConvenienceIn a recent study done by Consumer Reports, they found that the fast-food industry is quickly shifting to ‘fast-casual’restaurants where quality is king over price and convenience. More and more we are seeing the commitment fromconsumers to higher-quality, slightly more expensive restaurants over those who boast the quickness and ease ofaccess to their meals. In our primary research, it was concluded that Domino’s has a balance of quality and low-price. It is not the leader of either category but appeals to both elements equally.

All Consumers Are Price SensitiveThrough our research we observed that our target market, 18-24 year olds, are exceptionally price sensitive. Hoping tospend anywhere from $6 to $10 dollars on a large pizza, they really emphasize the importance of the perfect pricewhen choosing their pizza provider. But in a competitive industry, like fast food, more factors influence purchasedecisions that just finding the right price. How much a customer is willing to spend on a meal is determined by thevalue they associate with the restaurant. Consumers are less price sensitive when they know that they are gettingmore for their money. To be successful you have to understand the fast-changing attitudes of customers. Whether itbe health, quality, or convenience, the perfect price is backed up with the perfect explanation.

The Economy might be in decline, but pizza sales are soaringThe economy in the United States has shown significant declines for many industries across the nation but thankfully,pizza is not one of them. Consumers are pizza lovers and are committed to the restaurants that provide thatexceptional experience for them. In our primary research we discovered that 46.1% of our respondents said that theyeat pizza at least 2 times a month and 21.3% claim to eat it once a week. This creates a huge opportunity to satisfy thisneed for consumers. As long as you build it they will come, so as long as we are making pizza, we will have customersbegging for our cheesy pies of goodness.

Always room for improvementDomino’s has had huge success for many years in the pizza industry. Customers have brand recognition and associatethe company with positive attributes, there are stores in 81 countries, making it the second most franchised pizzacompany in the world, and are the number one pizza delivery in the United States. Even though Domino’s is aprosperous company, there is always room for improvement.

Quick food, Quick OpinionConsumers are rapidly changing their focus from quick and cheap meals to meals that take a little more time, butwith a lot more to give. Generally people who are stopping at these fast food restaurants know that they aresacrificing natural, fresh ingredients for the convenience of having it readily available and without much damage totheir bank accounts. The fast food industry has a bad rap for unhealthy and potentially harmful ingredients to maketheir restaurant time efficient and cost effective. Consumers often associate quick food with low quality.

Key Research Insights

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Idea 1: The Domino's Effect

Campaign Elements

Use traditional and non-traditional mediums to redefine whatcustomers think of Domino’sAir commercial that emphasizes the quality of ingredientsUser generated content on social media that pertains to the emotionscustomers have when choosing Domino’s

How Does This Accomplish Campaign Objectives?

Through research, Venture found that a high percentage of people still do not associate Domino’s with high qualitypizza, as most customers go there for the convenience and price. The goal with this new campaign is to start at theroot of the problem and focus on increasing the quality of the ingredients to ultimately affect the taste and quality ofthe pizza, therefore creating a “Domino’s Effect”. This means being intentional and detail oriented when choosing adistributor, and finding fresh, sustainable, high caliber ingredients. The goal is to communicate to our customerswhat we are doing and that we are committed to ensuring the quality, safety, and taste of Domino’s and theingredients they use to make them. By increasing the quality of ingredients first and foremost, the consumerexperience will be increased as well.

Television commercial:Scene one: We fixed our recipes, now it is time to start at the “root” of the process(employee talking reaches in fridge to grab ingredient, reaches all the way to the farm)Scene two: Domino’s is now sourcing all its ingredients from fresh, local, sustainable farms so you can be confidentthat you are choosing the best.(farmer talking while cultivating crops)Scene three: It’s a Domino’s effect, increase the quality of the ingredients, increase the quality of the pizza(Pizza boxes all in a line, like dominos falling over)Scene four: Domino’s. Oh yes we did.(farmer passing it to distributor, then to employee, then to customer)

The social media campaign will implement user generated content on social media outlets by asking customers topost how Domino’s pizza has positively impacted their life, and therefore engage customers with an emotional side.There are several stories that will be featured, such as a Facebook post that shows a pizza with writing in the takeoutbox that says, “I know this is cheesy, but will you go to prom with me?”, proposal stories, and other ways Domino’s hasmeant more than just pizza. By having customers tell personal stories it will show a deeper connection to the brandand follow suit with the “Domino Effect” campaign. By using the hashtag #DominosEffect the team can track thesepictures and reply to customers and increase interaction by getting more people talking about the brand.

To redefine what customers think of Domino’s by focusing on fresh and sustainableingredients to make the pizza the best it can be.

The “Domino’s Effect” will appeal to the target market of college students by reaching them in outlets such astelevision and social media where they already spend time. The user generated content on social media will betterengage the customer and allow for them to get involved in another outlet.

Appeal to Target Market

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Idea 2: The New Carryout Experience

Campaign Elements

Ready to buy pizzas to expedite order-to-consumption timeSpecialized pizza offerings catering to most popular pizzasordered in each target areaTV/Digital campaigns seeking to raise awareness of newcarryout experience

How Does This Accomplish Campaign Objectives?

To gain a competitive advantage over competing pizza and fast food brands,Domino’s will aim to offer an accelerated carryout process while maintaining

the quality of each product offered.

Domino’s is seeking to have our brand image stand out in a competitive fast food market. By creating acarry out experience that two of our top competitors (Pizza Hut and Papa John’s) have yet to offerwithout compromising the quality of our product, Domino’s places itself in a favorable market positionleveraging a need that all customers of fast food restaurants have: short order-to-consumption time.

In a market where speed is king, the average time-to-consumption of a Domino’s order is close to 15minutes; in comparison, McDonald’s has a drive thru experience that lasts a little over three minutes. Thistwelve-minute gap of waiting time represents an opportunity cost to customers in ordering Domino’spizza that is too long to merit the desire for a pizza. In fact, 15% of Americans recently rated pizza as theirfavorite comfort food, the highest percentage of any fast food and a staggering 12% higher thanhamburgers and cheeseburgers. Yet, there are three hamburger fast food restaurants with higher grosssales than the highest grossing pizza chain. We believe that this discrepancy between consumer desiresand sales lies in the ordering times.

To capitalize on this desire for easily accessible pizza while maintaining our high quality pizza recipe,

Domino’s will pinpoint peak business hours and locations of high carryout order frequency. Then, byanalyzing the most frequently ordered pizzas in the area, stores will be able to prepare these “customerfavorites” in advance so that customers can walk in and walk out with their pizza in less than five minutes.This process will work in conjunction with our supply chain department to minimize our waste productsto insure a high selling utilization of pizzas made.

Appeal to Target Market

The New Carryout Experience appeals to the target market of college students aged 18-24 because thisdemographic greatly values quality and convenience. Millennials are extremely influential as word-of-mouth and regular postings of both positive and negative experiences in restaurants on social mediaspread quickly. By emphasizing cleanliness and speed Domino’s will be better able to meet the targetcustomer. Page 38 of 51

100 Brainstormed IdeasCreate food testing booths Free pizza winners at sporting eventsMovie theatre advertisementsPizza shaped fliers on campusBetter deals on Hooked AppIntegrate Domino's app with social mediaCreate iMessage stickers in iOS 10Have VIP pizza buyersCreate TV ad about making of the pizzaCreate TV ad about people behind the pizzaCreate TV ad about what pizza DOES for peopleTweet for couponsFacebook pizza party events (tag people in at a party, get pizzadiscount)TV ad about more than pizza campaignSomber ad about the forgotten chicken/pasta/salad optionsI <3 Pizza (Domino's) computer stickersYoutube based advertisements pre videoContent featured in Youtube videosPartner with Dude Perfect for in video adSponsor tailgates at different campusesCollege Gameday Pick of the Week sponsorshipPizza coupons in popular video game boxesSponsor fantasy football shows on ESPNLate night ad targetingBanner ads on popularly visited websitesMake Snapchat filters Free pizza giveaway for a specific section at sporting eventsCheck in on Facebook account when picking up pizza and getdiscountOffer discounts on Tastebud App

College ambassadors programUser generated content commercialsLocal artists creating posters to be hung around campus/coffeeshopsPartner with Coca Cola doing buddy marketingGive away free t-shirtsCreate Facebook Live video showing how pizza is made

Surprise delivery presenting customer with a year of free pizzaTwitter contestInstagram contest Have vendor booth at concerts and eventsGet in with more of the sports events like Double Dave's does atTexas A&M gameGive scholarships away in the name of Domino’sExpress more work with philanthropy St. Judes - give in theirhonorUse current location of Facebook to tailor ads to the specificcollege or locationPercentage off if college team in the area wins for a home gameCreative murals with domino’s featured in busy towns (i.e I loveyou so much wall)Commercial that focuses on who we are as a company as lessabout the product alone.

“The domino’s effect” slogan-- focusing on quality of ingredientstherefore increasing the overall quality of the pizzaCommercial that links dominos to family timeMonthly limited time pizza flavorsContest to vote on favorite specialty pizza (out of like 3 choices)and the winning one stays on the menu

Creative murals with domino’s featured in busy towns (i.e I loveyou so much wall)Commercial that focuses on who we are as a company as lessabout the product alone.

“The domino’s effect” slogan-- focusing on quality of ingredientstherefore increasing the overall quality of the pizzaCommercial that links dominos to family timeMonthly limited time pizza flavorsContest to vote on favorite specialty pizza (out of like 3 choices)and the winning one stays on the menu

ontest Sit in restaurants Introduce more a more health conscious menuEvery store is different in design (make it feel less like afranchise)

An endorsement from celebrityYou are unique, your food should be too.

Because Pizza listens when you talkCommercial where a person (or mascot of some sort ) comes tolife off of the boxCelebrity flavors of pizza.

Pizza vending machinePizza party at ESPN College GamedayHave event at ACLSupport philanthropies and volunteer eventsSponsor a TV show that college students enjoyCome up with new and crazy promotional flavors (ex. Lay’s hadcontest with consumer ideas- chicken & waffles, cappuccino,

etc.)

Sponsor local sports teamsDomino's Pizza snapchat storyPizza’s ready when you order (carry-out only)Snapchat filters to open mouth and pizza is bittenNew delivery cars that are ad decorated to stand outSponsor skate competitions at local skateparksCreate your own pizza app store gameParody pizza man twitter accountPop culture references in tweets to stay relevant with currenteventsAdvertisements on Spotify and PandoraThrow campus outreach events (in Rudder Plaza, etc.)

Scholarship contests at football gamesCater sorority and fraternity meetingsSiri optimization to order pizza handsfreePartner with Apple to create user experience in iPhone thatpromotes Domino’sPartner with PocketPointsFood Network pizza competitionsESPN food eating competition of Domino’sSponsor less highly watched but lower cost sports like pokerIn video game ads in FIFA and 2k BasketballOffer deals of the day each night of the weekOffer regional favorite pizzasStand on street corners with pizza suitCreate mini lunchable pizza kits in storesCreate frozen pizza brand in storePizza shaped couponsBalloon that drops coupons at basketball gamesBoxes foldable into plate optionsHoliday themed boxes Page 39 of 51

The Big Idea: The Domino's Effect

Through Domino's new carryout process, the company creates convenience for theconsumer. The time that would have been wasted standing in line, can now be spentdoing other tasks. "The Domino's Effect" highlights how Domino's can “affect” your life

by creating more time for their consumer to do other activities.

in accordance with the occurringcontroversial presidential election,

Domino's has decided to take apolitical stand. Domino's target iscollege students, and it just so happensthat this is the group that has thelowest voting percentage. By havingthis print ad, it is sending a message tothose students that order fromDomino's that if a pizza joint can take astand, so can they. Therefore, we arehoping this ad fosters votes from thisdemographic. Going political can havehuge repercussions. However by saying"Pizza for President", it is implying thatDomino's is not endorsing eithercandidate just the overall federalgovernment and the election process.Endorsing a candidate would createhuge turmoil, so Domino's created avery broad but powerful statement.Going with our campaign, Domino's isbasically saying that with our newgrab-and-go carryout experience youwill have time to do more importantthings, such as vote. Picture is MountRushmore with 4 US presidents carvedin stone. This reinforces the politicalstand Domino's is taking.

Print Advertisement

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Social Media CampaignWe are launching a new campaign “The Domino’s Effect” across a few different medias. The main ideais that Domino’s locations will have ready to pick up pizzas so that customers can use the time theywould normally have to spend waiting for their pizza to be made, to do the things they love and enjoydoing. In the technologically focused society we live in today, it is imperative to have a social mediafacet to some capacity. We want Domino’s to really engage with their consumers and hear howDomino’s impacts their lives. We want consumers to use the hashtag “#DominosEffect” to tweet,instagram, or facebook what they are doing in the time they would have been waiting in line for apizza if their pizza was not ready immediately when they walk in the door. We want to hear about theexperiences that Domino’s customers are having because they are able to get pizza when they wantand where they want. The more adventurous the better. We want to inspire adventure and meaningfulinteractions between customers and associate these experiences with Domino’s pizza. Whether thatbe loading up on carbs before hiking the Appalachian trail, or having a family dinner starringDomino’s, we want to hear how Domino’s effects its customers.

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TV Commercial

Gear:

Much akin to the Direct TV commercials featuring someone with and then without Direct TV, our adwill feature the same actor buying carryout through the new Domino’s system as well as carryout froma competing brand. The screen will the separate in two as it compares and contrasts the two differingactions being taken by the customer and how the one that ordered the new Domino’s carryoutbenefitted more.

With our extensive knowledge in video production, we plan on informing the public about the newtakeout experience through a series of TV commercials titled, “The Domino’s Effect”. These commercialswill show the “domino effect” of saving time through the new grab and go carryout style in comparisonto the conventional style of pizza carryout. These ads will seek to create a humorous style that ismemorable and funny enough that people will share the ads. Pizza is a very social food; by increasing itssocial currency (the likelihood people are to regularly talk about it in everyday conversations), we cangenerate lots of earned marketing from the campaign

DJI Ronin M StabilizationDJI Phantom 3 Standard 2.7K DroneSony A7S II 4K cameraMetabones EF-E mount AdapterRokinon Canon mount 35mm T1.4 LensCanon 50mm F1.8 LensCanon 70-200 2.8 IS LensZoom H1 Audio RecorderRode Video Mic ProManfrotto Tripod

Concept

Sketch Idea

After ordering pizza, man is walking across the street to his house, drops his keys, picks up a $100 bill inthe middle of the road, by stopping he avoids being hit by a fancy car driving past. The car stops to yellat the man, who throws a pizza slice (smiling) for the driver, who takes a bite (smiles) and in returnthrows the keys to his nice car to the customer. The man enters the car to find it full with pretty girlsand drone shot zooms out as he drives off with the girls falling over him and his pizza. The scene cuts tothe other customer who is just now getting his pizza from the other brand, who takes a step outsidewhere it immediately starts to rain. Cuts to promo shots of Domino’s new carryout experience pizzawith voice talent saying “experience Domino’s new carryout pizzas and see how the dominos effect canbenefit you.”

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Feedback: The two ideas should marry into one big idea; Each idea is good separately, but thereneeds to be an overarching campaign.

Application: Previously, Venture had two directions for the Domino’s campaign to run. The first wasfocused on communicating the quality of Domino’s fresh ingredients by enhancing Domino’s storeatmosphere and running commercials that show the process from start to finish of getting local andsustainable ingredients. Venture’s second idea was the “Domino’s Effect” campaign that would re-

create the carry out process. The pizza would be made hot and fresh, but would be ready prior towhen the customer knew they wanted it, therefore skipping the line. The group has decided tocombine these two ideas into one campaign, called the “Domino’s Effect” that uses commercials andsocial media to communicate the speed of Domino’s carry out process to give customers more time todo what they love.

Feedback: The commercial and social media aspect don’t mesh.

Feedback: Revamping the company wide structure is very expensive.

Feedback: How is different than what they’re doing now?

Application: By working to change the customer’s perception of Domino’s and revamping theatmosphere of Domino’s to an open concept there are tremendous costs involved. Instead, Venture willfocus on the “Domino’s Effect” marketing campaign to bring brand awareness to the target customers,aged 18-24, through commercials and social media. By utilizing these mediums Domino’s will cut costsand and be most efficient in bringing awareness and excitement to the Domino’s customer.

Application: Most recently Domino’s has launched the “Pizza Turnaround Project.” This campaign is awork to rebrand the company and enhance their pizza and ingredients. The “Domino’s Effect”campaign is different in that it allows for customers to submit pictures and videos of how they spendtheir free time not waiting in line for pizza at Domino’s by using the hashtag “Domino’s Effect”. This getsconsumers involved while also communicating that by choosing Domino’s it will have a “Domino Effect”on their life to be able to enjoy great pizza and have additional free time for things they want to do.

Application: The commercial and social media campaign will coincide and both focus on the“Domino’s Effect” idea. The commercial will show consumers waiting in line for pizza at a competitorthat takes much longer than Domino’s, while the Domino’s customer will have their pizza and havefree time to enjoy activities - such as hiking the Grand Canyon or playing Jenga with their children.

The social media campaign, using the hashtag #DominosEffect, will allow for the customers to sharethe ways they are able to spend their free time away from the long wait of most pizza companies. Thisshows the customer that Domino’s offers fast service, quality ingredients, and a company stance offun and excitement.

Idea Pitch Feedback

In our initial research, we found that one of the fastest growing segments of the fast food industry issmall, rapid order, pizza restaurants. This is because our target market of college students are on the goand are in need of quick, yet inexpensive dinners. The consumer will choose Domino's Pizza instead ofcompetitors due to the short amount of time it takes to receive a pizza and the quality of the pizzamade through the new carryout process. This new strategy will allow a customer to come into the store,

ask for a pizza and be handed a pizza at checkout. Consumers will then share what they did instead ofwaiting for their pizza to be made. This will be called “The Domino’s Effect”. Domino’s will advertise thecampaign through a print ads, TV commercials and social media posts focused on user-based content.

The Big Idea Conclusion V

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Translation of Media

Justification of Media Choices

Social Media Campaign

More than 98% of college-aged students use socialmedia and 27.2% of those students spend more than sixhours on social media in a week. According toEnvertitasGroup, Millennials trust user-generatedcontent 50% more than other media. This is because itwas created by their peers and not by professionals. Itshows their "friend’s" true opinion about the company,brand, service or product. The users creating the contentdo not have an alternative motives other than simplyexpressing their opinion. (Atkinson, 2015) The Domino’sEffect might not even include the pizza or brand imagein their post or picture. This campaign will be basedsolely on the consumer's desire to share what they didbesides waiting in line for pizza. The goal is to create asincere, intimate and homemade positive associate toDomino’s, just as The EnvertitasGroup participatesexpressed that they desired.

As far as exposure goes, television over all otheradvertising channels will always win the race by along shot. In a study by comScore, researchersfound that consumers are 85% more likely tonotice a TV advertisement than other advertisingvenues. Researchers also found that consumerstrust TV advertisements 63% of the time versus a19% trust level with billboard advertisements.(MarketingCharts, 2007) Domino’s would lose agreat opportunity if they were to choose not toadvertise in this channel. However, segmentationis crucial to ensure the correct reach and exposurefor the paid media. In order to have theappropriate reach and exposure, Domino’s willneed to advertise during trending TV shows andcollege football games. Commercials would airduring the current most popular shows like Gameof Thrones, The Walking Dead and Breaking Bad.

These two TV commercial outlets will ensure amore accurate reach of Domino’s target market.

TV Commercial

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Print Advertisement

Although many claim print ads to be a deadchannel with millennials, college students arestill grabbing newspapers on their way to class.According to a survey conducted by theAmerican Press Institute, 68% of Millennialconsumers react to advertisements in printnewspapers, mainly coupons. Also, 93% of themillennials studied said they have opened amagazine in the last 60 days. Print ads have abetter chance of reaching and related to theconsumer if the ad is eye catching and relatable.

Domino’s election ad exhibits both of thesetrades while also implicating that consumerswill have more time to vote if they order fromDomino’s. Print ads also increase the reach ofthe campaign because it interacts withconsumers who do not have a large socialmedia presence.

V

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Plan Details

Print Advertisement

Billboards

With Domino’s having over 5,000 locations in the US alone, there is a greatpotential of advertising in these major cities. Billboards usually receive up to anaverage of 150,000 views per day. If one billboard is placed in each of 50 major UScities, there is a potential of reaching up to 7.5 million people. The top cities- NewYork, Los Angeles, Chicago, Houston -generate up to 300,000 views a day,however. All other cities, average about 100,000 views per day.

Social Media Campaign

TV Commercial

Total Estimate: 8,700,000

Domino’s is on multiple social media platforms such as Facebook, Twitter, Instagram, and Pinterest.Facebook tends to have the most followers with Pinterest having the least. Having our social mediacampaign on these platforms will raise awareness, interaction with the brand, and impressions. Our goal is tocreate a marketing buzz by having our followers interact and post their own Domino’s related content. Wedon’t want them to just be the audience; we want them to be our performers as well. For in the end, ourfollowers/consumers is who creates our brand.

Facebook: 14,470,161 Twitter: 1,110,000 Instagram: 909,000 Pinterest: 1,613

Total Estimate: 16,490,774

ESTIMATE OF TOTAL IMPRESSIONS AND COST PER IMPRESSION

Our Domino’s print ads will be posted throughout major UScities near malls, subway terminals, and on college campuses.These areas are prone to have traffic of young, college-agedindividuals. We want to target the largest colleges in each state,

cheap modes of transportation such as subways, and also mallsnear campuses and residential areas to target families. Malls: 500,000 Subways: 1,120,000 Colleges: 15,000

Total Estimate: 1,635,000

Our main target audience for this TV commercial is college students and families. College students watchmore TV than one would expect despite their busy schedules, although, it tends to be through digital means.The average prime time audience in the US is about 187 million.

Total Estimate: 187,000,000

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Media Budget

For the past few years, Domino’s ad campaigns have increased in size but only gradually grown by an averagegrowth rate of 2.3% per year, barely over the national inflation rate. Our plan is to gradually increase thespending of advertising cost as our campaign grows per year, thus maximizing our financial margins byspreading our costs over a number of years. We designated sixty percent of the total marketing budget to beallotted for our new ad, The Domino’s Effect, thus allowing forty percent of the remaining budget for smallercampaigns like the Pizza Payback campaign that Domino’s has run this year.

Primary Media:

Primary Media Distribution: $78.944 million (80%)

Support Media Distribution: $19.736 million (60%)

Television and Online Video Distribution: $52.89 million iHeart Radio and Spotify: $26.054 million

Transit Advertisements: $7.894 millionWebsite and PR Management: $4.842 millionPizza Box Redesign: $7 million

Total Marketing Budget: $246.7 million

Domino’s Effect Budget: $98.68 million (40%)

Justification of Budgets:

Support Media:

Luckily, due to the experience of one of our team members, the overwhelming majority of costs regardingproducing video campaigns can be covered based on items that he already owns. This can take out close to$8 million in continual renting of camera equipment. The rest of the video budget would go toward fundingtalent, shooting space, and media placement on national ad space. We estimate that this cost is around $20million for the entirety of the year’s campaign (CP&B, Domino’s Pizza, 2016). This leaves residual budgetingfunds in our primary media campaign to partner with YouTube channels and to make our own content onYouTube, a medium that nearly double the amount of millennials prefer to traditional television ads (CP&B,

Domino’s Pizza, 2016). Lastly, audio clips will be recorded to distribute on two of the three largest audiostreaming services to trigger customers to want pizza when relaxing and listening to music. This medium

The two biggest targets of our support media campaign will stem from transit advertisements and a redesignof the new carryout box in stores. Having taxis and road signs marked with descriptions of the new experiencewill act as informative ads, more so focused on informing quickly that there’s something different withDomino’s carryout process. This budget was determined by analyzing the median cost for a one-week taxiadvertisement cost in New York City and analyzing what the reach of a normal taxi would be in a populatedmetropolitan city. From there, we sought to maximize our reach while minimizing the cost per taxi addeployed. Page 47 of 51

The other large portion of support media we’re looking to spur is the redesign of the pizza box. We’re wantingit to be evident when someone brings the new carryout pizza to a party or event that it’s completely differentthan any other pizza box from competitors. We researched how much and average pizza box costs to makeand predicted the number of new carryout orders we would likely have in a year, and finally, estimated thecost of an artistic redesign of the box to come to the concluding cost of box redesign. Our last advertisementwould be the creation and upkeep of a website and PR accounts. The average cost of a website developedprofessionally thru Squarespace is close to $10,000 per year, thus allotting the rest of the costs to be for payingthe staff and making promotions and other banner ads running through each platform.

Media Schedule

In order to most effectively reach Domino’s target customers, college students aged 18-24, the media schedulewill be pulsing. A pulsing media schedule is a combination of continuity and flighting. Pulsing builds higherlevels of advertising in addition to advertisements that are continuously run throughout the year. Heightenedadvertising will take place during the school semesters (January-April and September-December). Lessheightened advertising will take place during the summer months when students away (May-August). Thiswill allow for a continuous brand reach, while allowing Domino’s to spend more on campaigns for collegestudents when they are in school. These months have been strategically chosen to best reach college studentswhen they are most likely to increase their pizza consumption. Heightened advertising will includepromotions and events on college campuses, specifically targeted towards the target market. Additionally,Domino’s will continuously run television commercials and have print advertisements and all of the campaignefforts will be centered around the “Domino’s Effect” advertising to increase interest and interaction with thecompany.

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Campaign Evaluation With our campaign heavily focused on UGC and social media interaction, our measure of thecampaign's success is made fairly simple. The number of times that the hashtag #DominoEffect isused will give us a great summary of our reach of the advertising campaign. Also the amount of likes,shares, retweets and mentions that the UGC is receiving will also help to measure the effectiveness ofthe campaign. If Domino’s social media account activity increases more than 25% compared tonormal social media interaction, our campaign has been successful. These measurement can beapplied across a platforms including Facebook, Twitter, Instagram and Pinterest. It is not necessarythat each platform have an increase of 25%, but that all social media platforms together increaseactivity by 25%.

One of our communication objectives was to simplify the menu options. The way we havedecided to execute this is through the new carry out process. We can measure the success of thisobjective specifically by evaluating how many of our consumers decide to use the new carry outprocess versus waiting for a speciality pizza, ordering ahead, or requesting delivery. We suspect thatthese three ordering methods will decrease due to the speediness of the new carry out process. Weare able to see the differences in these numbers through the “Piece of the Pie” rewards system whichtracks the consumers purchases. Through the “Piece of the Pie” rewards system Domino’s will be ableto have repeat business and maintain customer loyalty. This is an important aspect of businessbecause it is much more expensive to gain new customers compared to keeping current ones. Thesetwo calculations will require careful attention to measure the campaign’s success.

One of the marketing objectives was to increase the net income growth rate. This can bequantifiably measured by increasing sales by 20% to $2.64B by the end of 2017. In 2016 the sales were$2.25B (Hoovers, 2016, Domino’s). By working to increases the sales Domino’s will continue to remaincompetitive against Papa John’s, Pizza Hut, and other quick-service pizza companies. We plan tomeet this financial goal by increasing brand awareness through the “Domino’s Effect” campaign onsocial media platforms by working to be the first pizza company the consumer thinks of whenwanting pizza. While increasing product sales there will also be cost cuts by strategically planning allmarketing efforts and heavily pushing user generated content as well as word-of-mouth advertising.

Overall, this campaign will measure success and growth through the established marketingand communication objectives as seen in the DAGMAR chart and the brand funnel that detailsDomino’s awareness, knowledge/comprehension, liking, preference, trial, and repurchase/regular use.

The two main strategies of the “Domino’s Effect” and the “Piece of the Pie” rewards program will worktogether to best generate sales and customer satisfaction.

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