Domino’s results are positive, but can’t be solely attributed to social

Posted by Vikki Chowney
on 12th July 2010
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west_swindonAs reported by new media age earlier today, Domino’s Pizza has reported a 29% surge in pre-tax profits to £17.5m, supported by a strong performance from e-commerce sales and online marketing activity.

An increase in online sales (to account for 32.7% of sales, compared to 26.2% in 2009) is most definitely positive and shows that e-commerce is still growing. However, this comes as no surprise since the fast food industry has shown consistent resilience to the recession (McDonald’s UK delivered strong sales just ahead of  5.7 per cent growth in Europe in May 2010) as people have been spending more time at home, ordering less-expensive food in the process.

We’re always calling for case studies with measurable results and real figures included to prove the value of social media. But is this really the best way to do it?

In May this year, Domino’s launched a nationwide promotion on Foursquare that encourages users to check-in at its outlets. Alongside Debenhams in the UK, and Starbucks in the US – Domino’s is one of the most high-profile brands using the location-based social network. In its official statement, the company pointed to this as a example of how it has “led the way with social media initiatives”, also referencing its affiliate marketing and superfans programmes.

But even Chris Moore, chief executive, said that the company’s success cannot be attributed to just one activity. “It is easy to try and attribute our success to one thing – be it the weather, or Britain’s Got Talent, or the World Cup – but the underlying trend shows a more compelling picture.”

Positioning this as a social media success without clear direction from the brand in terms of how much revenue can be directly attributed to work on Foursquare, is not really that helpful in proving to others that investment int his area is beneficial. Affiliate activity and online marketing contribute heavily, as well as cultural and evironental influences – not to mention massive sponsorship deals as Moore points out above.

It’s unlikely that FMCG brands will put their necks on the line and publish a breakdown of specific results any time soon though, which is a shame as it’s often these companies that others look to for inspiration or to lead the way with new marketing channels or technologies.

Recent comments
  • Good common sense Vikki :-)

  • ReputationOnline

    Thanks Scott. It's refreshing to have one of the social media crowd agree with a post that questions social media validity :)

  • Vikki you bring a sensibility, much like Joanne, that is so refreshing. I appreciate it!

  • ReputationOnline

    Shucks... :)

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