Complacency Did Not Drive a Sales Turn Around at Domino's

Back in the day (2009), Domino’s awoke from a long period of brand protectionism practices, self-imposed rules that contributed to stifling sales growth, product quality, and a loss of customer relevance.  Domino’s was the first major retail brand to discard it core product for and completely new one since the failed rebranding of Coco Cola. It was a huge risk.  Guess what Domino’s won. 

Domino’s did what I call Ground Branding.  It is not back to the basic’s it is a macro step not a micro step it’s a step into the future of brand marketing, positioning and essential for legacy brands continued consumer relevance. Ground Branding means repositioning a product or a company focusing on the core foundation of the legacy product or companies value with a dramatic shift in contemporized customer relevance.  Simply put incremental steps are not enough today.  

In Seth Godin's book Purple Cow where an entrepreneur wants to recapture some of the magic that the brand at one time had. Godin suggests that the key to success is finding a way to stand out and be remarkable, like a purple cow in a field of regular cows. That’s what Domino’s did and the company has never looked back.

Domino’s Pizza Inc. saw same-store sales rise 10.5 percent in the U.S. in the third quarter ended Sept. 6, the company said in its press release.  That by the way was fourth straight quarter of double-digit domestic same-store sales growth.  Domino’s same-store sales have risen 19 percent on a two-year basis, which six years later and with a recession in the middle is not bad at all. 

Rebuilding customer relevance is important if a brand somehow grows out of touch.  In the case of Domino’s one macro ground branding move contributed driving customer relevance and sales momentum resulting in same-store sales in international markets rose 7.7 percent in the quarter in 2015 and the 87th straight quarter of growth outside the U.S.  The customer is dynamic not static any your brand must be as well.  

The challenged for any grocerant niche Ready-2-Eat or Heat-N-Eat fresh prepared food retailers is the ability to see and understand the customers focus at its core evolve, not your brands core. Success does leave clues and companies leading the charge in 2016 will be leaders within their niche for years to come.

Food retailers that do not evolve be warned that the rest of will be reading headlines that C-level change is coming or came at your company. Without bold new leaders many legacy retail food brands may simply become non relevant. In the event that they are more about their brand than the consumer they will simply fall to the way side. Do you need outside eyes to help drive top line sale and bottom line profits?

 Are you trapped doing what you have always done and doing it the same way?  Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information