Innovation drove Domino’s growth, says Euromonitor
Network expansion, promotions, digital strategies, technological and product innovation pushed Domino’s to record profits.
Julia Illera, Research Analyst, Euromonitor International, said, ”Domino's Pizza Enterprises reported another healthy profit increase in 2014-2015, with 40% growth for the fiscal year through June 29, outperforming expectations.
The company’s strong position was the result of its network expansion, “cheaper every day” promotion and digital strategy. For example, in July 2014 the company launched the Pizza Mogul initiative, an online tool that offers customers the opportunity to create a new pizza flavour, name it, promote it and earn a profit from the sales. By the end of 2014, the initiative had reached over 55,000 “Moguls” registered and 160,000 pizzas added to the menu. Other developments launched during the year included the Offers App, the Live Pizza Tracker and the integration of PayPal as a payment method.
Similarly, the company innovated by introducing electronic push bikes for deliveries, supporting its commitment to a cleaner environment. During the year innovation was not limited to technology, the company also benefited from product innovation. For example, for the ANZ menu Domino’s introduced flavours such pulled pork and pulled beef and other products such as baked churros desserts, all inspired by international street food flavours.
Growth in the European Union was largely driven by strong marketing, product and digital developments, as well as a record organic growth, with 54 new stores, including a milestone of 250 stores in France and 200 stores in Netherlands and Belgium. The company has benefited in these markets from initiatives such as offering delivery with a fleet of over 200 electric push bikes, with some stores in France and Netherlands offering only this type of delivery. In this sense, Domino’s France is working with National French Electricity Authority to roll out electric charge points in Paris.
In Japan the company continues in a phase of investment, adding 64 new stores during the year and reaching a total of 384 stores.
