Daily Insights

Domino’s Rolls Into Enemy Territory

By: Alizah Asif Farooqi | Feb 05, 2019

How far will a brand go to get consumers on its app? Domino’s is now allowing customers to scan any pizza, even those from rival companies, into the brand’s AI App to gain points towards a free Domino’s pie until April 28. But keeping its enemies close could pay off for the pizza purveyor.

There’s no denying the demand for digital in every industry. The restaurant business is no different, with online food delivery in particular expected to grow 12% per year over the next five years.That said, Domino’s has been steadfast about advancing its digital assets so far. In fact, digital channels account for more than 60% of its US sales. Domino’s experimentation with buzzy campaigns to advance digital assets is not new either, and strategic investment in more traditional media appears to follow each new app development and digital-first campaign. Across all campaigns, the pizza leader invests heavily in TV promotion, bolstering awareness and subsidizing organic traction with creative content. The spots are also reposted on YouTube, where some receive significant views, including Hot Spot ads that received nearly 175,000 views according to Gartner L2’s recent insight report. Domino’s latest promotion might fare similarly well if given the same VIP digital treatment as its predecessors.

The pizza shop has flexed its digital chops before, with its buzz-worthy Paving for Pizza initiative. However, it isn’t alone on its quest for digital dominance. Rival Pizza Hut comes in close with digital channel sales accounting for 55% of sales and Papa Johns’ digital sales exceed 60% as well. That said, embracing its enemies could be the key to getting an edge over the competition as it gives Domino’s consumers freedom of choice without sacrificing loyalty. Fast food front Burger King pulled a similar stunt, allowing users of its app to order a Whopper for one cent as long as they were within 600 feet of the joint’s rival, McDonald’s. However, though the promotion might pull in more app users, only time will tell if it will increase actual sales of pizza.