New Sight of Domino’s Pizza

Domino’s Pizza enterprise is one of the largest pizza chains in Australia in terms of physical store numbers and network sales. The most amazing things that appeal audience are not only by their multiple choices of pizza but also by their new ways of operating pizza business. Domino’s pizza launched Pizza Magul to advocate co-creation of pizza with customers, which potentially increases the innovation of product development and expands their market through social network by different pizza creators. Apart from Pizza Magul, Domino’s also provides online booking app on Facebook that makes more visible on social network platform. 

1) Pizza Magul – A new strategy of product development and marketing

Pizza Magul is a co-creation initiative launched by Domino’s. It engages customers to design their own pizza and share it with others through social networks. The creator of this pizza can get paid from 25 cents to 3.25 dollars per pizza sold. And also he/she can donate a percentage of sales to charity. 

Embedding co-creation into product development as mentioned in McKinsey's report (2013, p 34-37), Domino’s is able to accept more innovative ideas on making pizzas that attract people with diverse preference tastes. And co-creation of product development enables customer as a member of Domino’s community, which could increase their motivation to have entrepreneurial opportunity by earning commissions through social network. Domino’s utilizes social selling as a new powerful tool for increasing revenue and advertising.  Creators share their creativities on social networks, which enables Domino’s to tap on a bigger market share.

2) Facebook Domino’s Pizza Ordering

 

In 2012, Domino’s launched Facebook Ordering in Australia and New Zealand (Messieh, 2012). Domino's had provided online booking and mobile app on their website. But this time, they decided to offer online booking on one of the most popular social networks – Facebook. Using this Facebook online booking does let users automatically publish status on their timeline, so friends will know what he/she booked. If the user does like the pizza and would like to share it on Facebook. Because of the word-of-mouth effect, it will bring more people to try the new service. The number of Facebook online booking is growing due to ‘like’ Pizza and share this social network experience with friends. 

Compared with traditional online booking in these days, using social network as deliver stream for products sales could make stronger capability of communication and interaction within the customer's community (McKinsey, 2013, p38-39) . With the benefits of a large amount of users, it is much easier to expand scales of marketing and sales. Besides, it is a way of saving expenses on advertisement, since using particular social network is relatively lower than other traditional media for organizations. 

Reference

Nancy Messieh. 2012. Domino’s doubles-down on social, launches Facebook ordering in     Australia and New Zealand. Retrieved from http://thenextweb.com/socialmedia/2012/05/09/dominos-doubles-down-on-social-launches-facebook-ordering-in-australia-and-new-zealand/

McKinsey. (2013). The social economy: Unlocking value and productivity through social technologies. Retrieved from https://about.yammer.com/assets/MGI_The_social_economy_Full_Report2.pdf