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Domino’s Pizza bucks the trend as GDP figures released

26 Jul 2011 10:22 BST Back
Domino’s Pizza bucks the trend as GDP figures released

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GDP figures today reveal sluggish UK growth of just 0.2% for the second quarter of the year but some brands such as Domino’s Pizza are thriving despite the grim economic backdrop.

Domino’s Pizza UK and Ireland has tripled its marketing spend to £7m for the second half of the financial year, following a 15% rise in profit in the first half.

Part of the extra budget will go towards promoting new products such as the gourmet range, which launches this autumn.

It is part of the fast food group’s plans to compete with upmarket chains such as Strada and Pizza Express to appeal to a wider consumer base.

The company has certainly benefited from the economic slowdown as more people choose to stay in and order takeaways rather than going out to eat.

However, ecommerce is also a major driver. Domino’s released an iPhone app in September 2010 which now accounts for 4.1% of online orders. And there are plans to launch an iPad app soon.

Around 41.9% of sales are now made online compared to 32.7% this time last year.

There is also lots of activity on social media platforms as Domino’s uses Facebook to launch special offers nationally and to drum up business at a local level, with individual stores promoting deals on Twitter and Facebook. 

The company also uses Quick Response (QR) codes on advertising to drive people to its online ordering site.

Domino’s Pizza chief executive Chris Moore said: “Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months we are very excited about the future.”

Posted by

Nicola Carpenter

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