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Domino Case Study

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on 7 February 2014

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Transcript of Domino Case Study

NEW PRODUCT DEVELOPMENT
What Actually happens
On Sunday the 12th of April 2009,
two Domino’s employees from a branch in North Carolina upload a film on YouTube
The footage is filmed while they are at work, showing disturbing images of themselves violating health codes with unsanitary actions, whilst preparing food e.g. putting cheese up his nose before putting it into sandwich etc.

Time
Viral
Every Where
Day 1
Business Impact & Response Time
The Domino’s crisis of 2009 is still referred to today as one of the first social media crises to occur – especially to a big corporation
A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service, experience.

Addressing Domino’s Pizza crisis, the firm decided to react to the event (taking 48 hours respond). They have presented an apology, suggested information (both public and personal) and a promise for taking future steps.
Interestingly, it chose unconventional media channels to confront their consumers, the same channels in which the crisis found its way through -social media interactions
Dominos Reactions to the crisis:

April 14:

1. The employees were fired and warrants were issued for their arrest.
2. Domino’s posted a statement on its corporate website.
“The opportunities and freedom of the internet is wonderful, but it also comes with the risk of anyone with a camera and an internet link to cause a lot of damage, as in this case, where a couple of individuals suddenly overshadow the hard work performed by the 125,000 men and women working for Domino’s across the nation and in 60 countries around the world”.
3. On an interview with Domino’s spokesman he says:
“Nothing is local anymore, that’s the challenge of the Web world. Any two idiots with a video camera and a dumb idea can damage the reputation of a 50-year-old brand.”
4. The company decided not to issue a press release. Dominos spokesman was interviewed on that:
“the company can deal with tens of thousands of impressions, but a strong response from Domino’s would alert more consumers to the embarrassment.”
5. The company shared an apologetic e-mail from the employees:
“It was all a prank and me nor Michael expected to have this much attention from the videos that were uploaded! No food was ever sent out to any customer. We would never put something like that on youtube if it were real!! It was fake and I wish that everyone knew that!”
April 15: Domino’s activated social media activities:

6. In a YouTube video, Patrick Doyle, president of Domino’s USA, apologizes for the incident, and describes the stepshis company is taking to ensure such an incident
doesn’t happen again.
“We sincerely apologize for this incident, we thank members of the online community who quickly alerted us and allowed us to take immediate action. Although the individuals in question claim it’s a hoax, we are taking this incredibly seriously.” Moreover, he said that the Conover store has been shut down and is being sanitized from top to bottom and promises to make sure “that people like this don’t make it into our stores.”
Social Media Campaing
April 15: Domino’s activated social media activities:

7. Dominos started social media activity on twitter (under the username “dpzinfo” -it receives 1525 followers as for today). It provides information on the brand and on preventive acts.-




Why didn’t Domino’s respond faster?
”Two things we didn’t anticipate. The first thing we didn’t anticipate was the pass-along value, or the pass-along nature of this particular video, because there was a lot of “Man, you ought to see this going on.” And the sheer explosion of interest from the traditional media.”

Tim McIntyre, Vice President, Communications, Dominos Pizza

Online Trends
Do Domino’s deliver during crisis?
What Dominos Pizza did wrong

Delayed reaction – alert was heard late
- Silent when answers were needed
Reacted after they were contacted by consumer affairs blog site

Lack of strategy for digital crisis management
Fault or lack of online surveillance
Lack of social media presence
Lack of employee policy on social media use and communication
Lack of overview on main online influencer


What Dominos Pizza did right

Response through traditional media and social media .

CEO video response on YouTube targeted core audience
Changed discourse to ’how companies should deal with hoax crisis’ in mainstream media

Created a twitter account
to engage in dialogue with consumers and respond to negative comments

Conclusions/Learning

Proactive V/S Reactive approach
Social Media Policy Needed for Employees

Corporate Communications Initially Too Timid for a virally connected world

Track the blogs and social media.

Be Responsive
Contigency Paln
Business Continuty Certifications
Reference:
www.forbes.com
www.prsa.org
www.melissaagnescrisismanagement.com/
www.nytimes.com/pages/business/media/
Gruop Members:
Jahangir
Divya
Muzammil
Sana
Ather
Full transcript