DOMINO’S DFA – LAS VEGAS 2008
Calendar/Strategic Planning
Within your Budget
DOMINO’S DFA – LAS VEGAS 2008
Why Plan?
In Mack’ stores we run 9% total advertising…
= $2.88 Million
If you want to guess…go for it…
DOMINO’S DFA – LAS VEGAS 2008
Why Plan?
Reason #2 - Integration
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DOMINO’S DFA – LAS VEGAS 2008
Step One: Build Your Plan in Relation to Promotions
DOMINO’S DFA – LAS VEGAS 2008
DOMINO’S DFA – LAS VEGAS 2008
Build the plan and work backwards to the budget…
-Fill in dates, sponsorships, print purchases, niche marketing,
-Establish a real sales projection
-Make it work with vendors: long term commitments, lower pricing, etc.
Get the plan you want!
DOMINO’S DFA – LAS VEGAS 2008
Advertising Structure
National
Co-Op
Local
DOMINO’S DFA – LAS VEGAS 2008
Advertising Structure
Local Advertising:
1. Promotional SupportA. MailingB. Doorhangers/BoxtopsC. SamplingD. Local media (non-co-op) support
2. Niche MarketingA. Database
1. Lapsed Customers2. Service Issues3. Specific Customers – Ticket, etc
B. SchoolsC. Apartments
DOMINO’S DFA – LAS VEGAS 2008
Advertising Structure
Local Advertising:
3. SponsorshipsA. ProfessionalB. Collegiate
4. CommunityA. DonationsB. FundraisingC. Board Service
DOMINO’S DFA – LAS VEGAS 2008
TRAPS!
1. Not Knowing Your MarketA. Just Because you live there doesn’t mean you know itB. The population you see may not be the largest populationC. Would you target you
2. Un even community support spendingA. Determine Community Support by market sizeB. Don’t do it the same way as everyone elseC. Use your time and product, not advertising dollarsD. Get the team involvedE. Don’t regulate it to only what you like
DOMINO’S DFA – LAS VEGAS 2008
Results
First several years I was with the company we had yearly increases in the 1-3% range.
2005 Was first full year of integration and new budget approach:12% Sales Increase17% Order IncreaseUnder Budget $70K
2006 had a 5% sales increase
2007 had a 1% sales increase
2008….not so good
DOMINO’S DFA – LAS VEGAS 2008
Does it have anything to do with process?
Why the sales loss over the last year?-Massive competitive intrusion in high volume areas
76% of lost sales from 20% of stores-Non-pizza competition-Competitive situations in small address markets
-York, SC 4800 addresses, has PH, PJ’s in 2 weeks, Sales from $18K to $13K-Lake Wylie, SC 4200 addresses, has PH & PJ and hardest demo to reach-Indian Trail, NC 9800 addresses, LC & PJ’s within four months of each other, despite big pushes drop from $20K to $11K
-Loss of 555-Over discounting
DOMINO’S DFA – LAS VEGAS 2008
Do I change the process?
No…refine it.
1. Mass material offers inline with slight edge over competitionA. Weekly competitive offer review
2. Store versions for LSM print determined by demographicsA. Price SensitivityB. Number per householdC. Diversity SkewD. Hispanic PopulationE. OLO Sensitivity
3. Ease of orderA. Value Menu…re-brand it as the menu, no coupons neededB. Restructure phone scriptsC. Push more olo
DOMINO’S DFA – LAS VEGAS 2008
What about…?
1. Pricing…why do we seem to have to discount so much or do crazy weeks/deals to get customers moving and not all competitors do?
2. How do I utilize Pulse more effectively?
3. How do I make it easier for customers to order?
4. How do I get to know them better? No guessing!
DOMINO’S DFA – LAS VEGAS 2008
The Future
Right now is not business as normal…
Economic vomit…expels those who don’t belong
The Future is about…
Ease of order
Giving customers what they are looking for before they even know
DOMINO’S DFA – LAS VEGAS 2008
Contact
Damien CarperDomino’s Pizza, Charlotte9107-F South Tryon StreetCharlotte, NC 28273704-588-2611704-577-1312 [email protected]