Domino's Pizza has invested heavily in multichannel TV. It sponsored The Simpsons on Sky One in 1998, became the first advertiser on Sky's Open shopping channel in 1999 and ran its first transactional interactive TV campaigns on Sky in 2000.
The strategy has created a point of difference with rivals and helped improve perception of the brand. Improving returns for franchise holders has also encouraged others to join the network and extend distribution of Domino's. As franchisees pay a levy on total sales to fund advertising, the success of the advertising in driving sales has also provided new income for further marketing.
The brand-building started with The Simpsons sponsorship. The show was scheduled at the correct time of day and was appointment viewing for an audience with a propensity for pizza. The deal delivered immediate results, with brand awareness increasing from 65% before the sponsorship to 81% a year later.
Adding interactive elements has also brought in new customers. E-commerce sales were nearly £4m in 2001 and the first quarter of 2002 is up 40% year on year. The relationship with Sky has also resulted in joint promotions for a pizza and a pay-per-view movie on Sky Box Office.
The company has now started investing in terrestrial TV to promote its new HeatWave technology. Media buying has combined multichannel with Channel 4.
The initial budget was only sufficient for three weeks of activity, but the massive increase in sales - up 30.5% year on year in the first seven weeks of the year - created enough extra funds for an April campaign.
In the end there were five bursts of TV ads during 2001.
Advertising has been highly successful for Domino's. The Simpsons' sponsorship has generated a return of £12.7m in incremental sales from an investment of £2.4m. Television advertising in 2001 has created £17.2m in extra sales at a cost of just £900,000.
Domino's has grown its market share from 17.2% in 1998 to 23% in 2001 and the strong branding has also brought in new franchise holders.
Campaign: Domino's Pizza
Agency: BLM Media
Collaborating Agency: Quantum New Media
Client: Domino's Pizza Group
Creative Directors: David Poole, Philip Bird
Art Directors: Peter Clapperton, Philip Bird
Copywriters: Jon Yeo, Kevin Wooldridge, Mark Gibson, Stuart Woodington
Film Director: Oscar Wright, Gita Salamon (producer in Denmark)
Advertising Manager: Chris Moore
Author: Charlie Makin
With Contributions From: Chris Moore, Steve Booth, Graham Hawkey Smith