In its updated growth strategy, Domino’s Pizza has identified marketing investment as a fundamental pillar to drive its long-term success. With a commitment to enhancing its advertising efforts and capitalising on digital advancements, Domino’s is setting its sights on sustained growth in the coming years.
Domino’s Marketing Investment: A Core Pillar for Competitive Advantage
In the fast-paced, competitive pizza industry, Domino’s has always remained at the forefront of consumer engagement and innovation. With its recent strategic update, the pizza giant is placing an even stronger emphasis on marketing investment as a key driver of growth. According to Domino’s, marketing is now officially a core pillar of its competitive advantage.
The company’s “Profitability and Growth Framework (PGF)” aims to unlock significant long-term opportunities for expansion. This framework, developed alongside Domino’s franchise partners, is not just a blueprint for the next five years; it’s a strategy built to adapt to evolving market conditions while focusing on sustainable growth. And at the heart of this plan is marketing – advertising and digital engagement.
The National Advertising Fund (NAF): Powering National Campaigns
Under Domino’s previous plan established in 2021, franchisees contributed 4% of system sales to the National Advertising Fund (NAF), which has proven to be a key asset in promoting the brand. The new strategy commits Domino’s Pizza Group itself to contributing an additional 0.2% of system sales to this fund.
So why does Domino’s consider this such a crucial part of its plan? The NAF is designed to power national marketing campaigns, helping Domino’s stay top-of-mind for pizza lovers across the country. It enables the brand to stay competitive, push for more customer engagement, and continuously strengthen its market position.
With advertising spend increased, Domino’s is making sure its messaging reaches as many consumers as possible, keeping its presence strong in an increasingly crowded market. In short: effective marketing is central to their competitive advantage.
Value Investment: Meeting Consumer Expectations in a Challenging Market
While marketing is a cornerstone of Domino’s growth strategy, the company is also focused on delivering value, particularly in the context of an uncertain economic climate. Value has emerged as the number one reason consumers decide where to order pizza. This insight is not lost on Domino’s, which has introduced a new food rebate mechanism for its franchise partners aimed at boosting like-for-like orders.
This move aligns with Domino’s CEO Andrew Rennie’s statement earlier this year: “The number one reason consumers buy from anybody is value.” With inflation and economic pressures, consumers are increasingly cautious about their spending. Domino’s understands that offering value without compromising on quality is vital to securing customer loyalty and increasing sales.
By investing in value-driven initiatives, Domino’s is ensuring that customers see their money well spent, whether through discounts, loyalty rewards, or promotional campaigns.
Digital Transformation: Enhancing Consumer Experience and Driving Sales
Another major area of focus for Domino’s is its digital capabilities. With nearly 10 million active users on its app, the company is gearing up to increase engagement through innovative tools and offerings. One area of focus is their ongoing tests of a loyalty scheme designed to increase order frequency.
While some brands have rushed into loyalty programs without clear results, Domino’s has taken a more cautious approach. CEO Andrew Rennie remarked that many loyalty programs around the world have been costly yet ineffective. But Domino’s sees the potential for a well-executed program to drive consumer retention and increase order volume.
This digital investment also extends to other capabilities that can improve customer experience, from order tracking to more personalised offers. As consumer expectations continue to shift towards digital-first experiences, Domino’s is positioning itself as a leader in delivering that convenience.
Expanding Physical Presence: More Stores, More Accessibility
Although digital capabilities are critical, physical availability remains essential for Domino’s growth strategy. The company is refining its approach to store openings, particularly in areas where there are fewer addresses or limited presence. Domino’s is adjusting its store incentives to maximise these opportunities, ensuring that the brand is accessible to even more customers.
By increasing its physical footprint, Domino’s can capture more sales in untapped regions and expand its reach. When combined with digital marketing and a value-driven product offering, this will help Domino’s grow its customer base and drive even higher sales volumes.
Long-Term Growth: A Vision for 2025 and Beyond
Domino’s has always been an innovative leader in the pizza industry. With its updated growth strategy, the company is doubling down on its commitment to drive long-term, sustainable growth. As CEO Andrew Rennie mentioned, this plan isn’t just about the next five years; it’s about ensuring Domino’s is positioned to thrive in the future, no matter the challenges ahead.
The marketing investment, the enhanced digital tools, and the focus on physical presence all come together in a cohesive plan to keep Domino’s ahead of the competition. As the pizza giant prepares to face any economic headwinds in 2025 and beyond, it will be better equipped to adapt, stay relevant, and continue to delight customers.
The future of Domino’s is bright, with marketing investment, digital transformation, and value-led initiatives at the heart of its growth story. It’s clear that Domino’s has all the right ingredients to keep its position as one of the leading pizza chains globally.
Relevant Links for Further Reading
- National Advertising Fund (NAF) and Marketing Strategy
- Domino’s Marketing Investment
- Digital Marketing Strategies
- Value-Driven Customer Engagement
- Growth Framework in Business
Photo credit: Cush Digital
