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Pizza Turnaround Case Study

Jackson Mah3:01

Transcription

In 2009, Domino's found themselves in the middle of a PR nightmare. Now, a sickening video posted online by two Domino's pizza workers, and in the midst of this baptism by fire into the world of social media, they were forced to face another harsh truth: most people really didn't like their pizza. To me, Domino's tastes low quality and forgettable; it tastes like cardboard with tomato paste and pepperoni on top. So, after 50 years, they started over and completely remade their recipe. But after dishing out a mediocre product for so long, how could they convince anyone that this new pizza was truly new and improved? The solution: the Pizza Turnaround campaign.

Instead of hiding the hate, Domino's embraced it and owned up to the criticism in a big way. "Domino's pizza crust, to me, is like cardboard." "I hear what some folks are saying about our stuff." "The sauce tastes like ketchup, totally void of flavor." "I mean, that hits you right in the heart." "There comes a time when you know you've got to make a change; you've got to move forward." "What's different about the new pizza? We improved everything: sauce, crust, cheese—you name it, it's better."

The entire story unfolded online in a minute-long documentary, accompanied by a completely uncensored Twitter feed with every single comment about the pizza, good or bad, posted in real time—in an ultimate show of transparency. Next, Domino's head chefs hit the road and brought their new recipe straight to the doorsteps of their harshest critics. "Hey, listen, did you say Domino's crust is a little too rubbery?" "Uh, Domino's crust is a little too rubbery. I did cover this pizza. I didn't know you were listening." "Said some pretty rough stuff, and I was just trying to be very honest." "Oh my god, that's delicious! This is great!"

It was an unorthodox approach, to say the least. It takes alpha meatballs to stand up and say, "America, we suck." But did it work? Well, Domino's Pizza—one of the few companies doing well in America—they're reporting an almost unheard-of increase in their business: up 14%. Domino's Pizza is beginning to deliver with a new recipe, a great ad campaign. Domino's new pizza is shaping up to be one of the most successful new product launches ever, sending Domino's stock price up 44%. The power of falling on your sword—or on your pizza slice. Domino's now says its fourth-quarter profit soared more than double a year ago.

By actually embracing the criticism and putting their harshest critics on the air, Domino's revamped their image, regained their credibility, and got America pulling for them again. "I'm back! I'm in! I'm in!" And to go with this new recipe, they've got a game-changing ad campaign. "What—what is the worst thing you can say about a pizza? Is that it tastes like cardboard?" "Yeah, that they incorporate that in a commercial and say, 'You know what, we heard you, and we changed.'" What can the GOP learn from Domino's? May God bless America, and may God bless Domino's new pizza recipe. Thanks for watching.