Domino's Slamming Its Own Product -- Ingenious Marketing Strategy or Insane?

Why it's a great idea: "The Domino's campaign is brilliant," says David N. Finley, director of communications at Chapman University School of Law in Orange, California. "First of all, it captured my attention -- no small feat in today's media-saturated world. Second, it's honest, sincere and novel, and [the ad] is also very funny.

"Finally, as a consumer, I can relate to the message -- I understand the criticism about Domino's product, which to me has traditionally been a bland, low-quality product. To reinvent themselves, it is necessary to address their poor image head on, so they can then give credibility to their proposed changes -- in this case, the new recipe. I'm not sure yet whether this campaign is working, but I predict it will be a success."

Paul Kurnit, professor marketing at Pace University, also feels the Domino's move was a smart one. "In general, trashing one's products is a bad and dangerous idea," says Kurnit (in other words, kids, don't usually try this at home). "The risk is that the customer gets an idea that at some point, some aspect of the product was inferior. Shame on the marketer. Why would you ever take something less than excellent to the marketplace?

"But in the case of Domino's," continues Kurnit, who is also the co-author of the new book, The Little Blue Book of Marketing, "this stunt is interesting, intriguing and has a good chance working. The reason: Domino's built its business on convenience based on a delivery promise, not a taste promise. Back then, they were the only national chain in the delivery game. And they grew and grew. Their success awoke the sleeping giant, Pizza Hut, who had a better product and now offers delivery, as well. So Domino's had no choice. They needed to improve the product to compete effectively. And the admission and authenticity of their taste inferiority streamlines the credentials and credibility that they've made serious changes to garner taste affirmation with doubters and discontents as well as prospective consumers who will want to taste the new Domino's."

As Kurnit sees it, this is a strategy in keeping with the times. "In general, the rule of thumb for entrepreneurs is to identify an opening in the marketplace and fill it elegantly and well," says Kurnit. "Domino's did that with delivery. But the marketplace keeps moving and entrepreneurs need to follow it closely and be responsive to being the best at what they do at all times. The good news for entrepreneurs is they can generally move, change and get to market faster than the big guys. Stay a step ahead, and David can beat Goliath."

Why it's a bad idea: Unfortunately, for Domino's, there seem to be a lot more marketing experts who think the company has made an idiotic move.

"This is a great example of a company who, in striving to be cool and hip, has made a massive mistake," asserts Adam Hanft, a branding and consumer expert who co-wrote Dictionary of the Future: The Words, Terms and Trends that Define the Way We'll Live, Work and Talk. "It's one thing to be 'transparent' and open, but it's strategic self-destruction -- brand genocide even -- to declare that you sold the public cardboard junk for decades. What does this message say to loyal users who enjoy the product that the brand itself is mocking? It says you're mocking your own customers. There is a lot of consumer tolerance for honest brands that admit they can and will improve. But consumers will cut no slack to a brand that thinks it can undo years of misrepresentation -- of hyping inferior products you knew to be junk -- by a 'disarming' admission."

Hanft may be right. On the other hand, as Richard Laermer says, "This is pizza -- it's crust, dough, it's got some cheese -- that's it." As in, this isn't life or death; it's not as important a topic as Haiti or health care, so consumers may not quite take offense as deeply as Hanft thinks.

That said, Laermer, who runs RLM PR, a prominent public relations firm, also thinks the ad campaign was a mistake. He found it "incredibly pandering." He also isn't sure that Domino's needed to change their pizza formula. "Whenever I wanted to order a pizza that I knew I wanted to arrive on time, I would order Domino's. It is the reason people order from Domino's."

Rob Frankel, branding guru and author of The Revenge of Brand X, echoes the same sentiment: "Domino's stands for speed, not pizza. Never in their entire history have they been focused on their product. The brand is all about getting the damn thing to your door. Now what's happened, everything's languished. The jaded part of me recognizes this campaign as a ploy."

Frankel predicts that this campaign might create a bump in sales but will ultimately be short-lived.

"The Domino's gambit appears to be a Hail Mary tossed up by an ad agency that's afraid of losing its client," says Frankel. "My experience is that whenever a campaign features a CEO, it usually means the account is in trouble, and the most drastic tactic in that situation is to appeal to the CEO's and corporate ego by putting them on TV."

Hanft adds, "You can imagine an agency selling this disastrous strategy by tossing around buzzwords like 'authenticity' and 'honesty.' Great brands introduce new products as a sequence of innovation, not by trashing their own equity. So this campaign alienates loyal users while turning off prospects."

Laermer thinks the pizza company would have been better off introducing a new product -- or maybe changing the product but letting consumers discover it and spread the word. "They're forgetting that consumers create their own buzz. You don't do it through taglines and ad campaigns any more. I think if anything people are going to say, 'I'm sick of hearing of how bad Domino's is. Let me call up Papa John's.'"

Why it's somewhere in the middle: Hadn't thought about that, huh? It could be neither a smart nor a stupid ad strategy, but a bit of both.

Mark Walsh, the founder and CEO of GeniusRocket, an innovative creative marketing firm based in Bethesda, Maryland, is leaning toward the not-so-smart vote, but he acknowledges, "Quoting a pissed off customer from a focus group? Wow. Ballsy."

However, Walsh says, "the risk is that the 'improvements' they have made might not be enough. Think about it. How good will your next Domino's pizza have to be for you to say, 'You know, they're right. It is better.' The difference between what was a Domino's experience and a thrilling, glorious, soaring, game changing Domino's experience is going to be very hard to guarantee or rely on. My father -- an ad agency exec for 35 years -- used to tell me that the fastest way to kill a product is with great advertising. You will generate trial use, then disappointment, then disdain and revenge."

And yet Walsh feels the pizza did need to be reinvented. "For them to keep making the same crap and ignoring public opinion was suicide. This long and very public 'apology' seems to be very risky, but the only way out of the woods."

So what does Domino's say? "Basically, our idea behind the ads is transparency -- and an honest approach to crediting our consumers with inspiring us to come up with a better pizza," says Chris Brandon, a spokesperson for Domino's. "It's interesting that simple honesty is being seen as such a unique approach -- and such a marketing story -- but we are pleased to be noted for it, and most importantly, pleased that many consumers seem to be respecting us for it. You only need to see the ad once to realize we have thrown the 'spin' approach out of the window."

But the main reason for the change, says Brandon, is that Domino's no longer just wants to be recognized as the guys who can bring you pizza really fast. "For so long," he says, "we've been perceived as a brand with excellent delivery service ... and we want our taste and pizza perception to begin to match that."

But whether pointing out so starkly their shortcomings as a pizza maker was a good idea, a bad one or somewhere in between, few can argue with Walsh's assessment of the advertisement itself. "If one of the goals of a great ad campaign is to be talked about," says Walsh, "it seems like they are succeeding on that score, no?"