1. Give one advantage and one disadvantage cited by Brandon related to the implementation of test markets.
2. What was the problem definition for Domino's in this video?
3. So what did Domino's do about the problem? What was the key to turning this around?
Brandon Solano VP of Marketing and Retail Design was one of the executives challenged with the task of trying to turn around the Domino's Pizza franchise. Sales were slipping as consumers were no longer just concerned about having pizza delivered on time; they also wanted pizza that tasted great! Upon compiling marketing research they discovered their pizzas were not well received in the market. Consumer comments, such as "crust tastes like cardboard" and "sauce tastes like ketchup", led them to do a redesign of the product. The redesign entailed collaboration from the target market itself. Domino's executives felt if they really wanted to make a product that was going to be part of the consumers' consideration set, they needed to ask consumers what they wanted in a pizza.
Thus Domino's compiled data on the likes and dislikes of their pizza and went to work developing a product which consumers wanted.
Domino's created new pizzas, but the next problem was letting market segment know about them. Thus a new campaign was created with commercials informing market segments of the changes. PR opportunities arose from the campaign, thus exposing the brand even more and creating the traction desperately desire by Domino's. Quality and satisfaction of the pizza increased, which led to brand perception and sales increasing as well.