Case Study: How Domino’s Brand Was Crushed and Rebuilt with Social Media
Jocelyn Shahu
Social media has become a critical tool for many businesses and brands, enabling them to achieve great success. A single viral video can make a significant impact - both positively and negatively. We will analyze Domino’s case study and how social media played a role in damaging and rebuilding its reputation.
Background
Domino’s first began in 1960 when two brothers opened a store in Ypsilanti, Michigan. Although it started small, Domino’s quickly gained traction due to its focus on quality ingredients, effective services (specifically implementing delivery services), and innovative marketing strategies. Since then, Domino’s has become a household name and is one of the largest pizza franchises in America.
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On April 12, 2009, two employees, Kristy Hammonds, and Michael Setzer, videotaped a series of videos tampering with the food, and even stating “In about five minutes these will be sent out and somebody will be eating these - yes, eating these. And little do they know that the cheese was in his nose and that there was some lethal gas that ended up on their salami. Now that’s how we roll at Domino’s.” These disgraceful videos were then posted to YouTube on April 13, 2009. Within hours of them being posted, The Consumerist, an online platform that provides consumer drive, also displayed the videos. It was the founder of the Consumerist who first alerted Domino’s corporate of the videos.
By that night, the videos had gone viral. Multiple readers of The Consumerist informed Domino’s of the viral videos, and some even found the exact location where the videos were filmed, alerting Hickory Daily Record and WBTV near Conover, North Carolina.
Domino’s Response
Domino’s first investigated if anyone’s health and wellbeing was at risk. After gathering details the next morning, it was determined that the food made in the video was not a real order and, therefore, not sent out or consumed by customers. Their next order of business had much to do with their public relations and communication efforts - mostly on social media since that is where the incident had taken place.
On Tuesday, April 14, 2009, Domino’s quickly took initiative by posting updates to the Consumerist discussion thread. Tim McIntyre, Domino’s spokesman, and Vice President, shared the email sent by Kristy Hammonds apologizing and reassuring that the orders were not real. Additionally, Domino’s social media team monitored tweets being posted about the incident.
On April 15, 2009, their team opened a new Twitter account with the handle @dpzinfo to respond to customers. McIntyre also posted another email on the Consumerist website stating that Domino’s chief of security had spoken to the franchise owner. The email stated, “The challenge that comes with the freedom of the internet is that any idiot with a camera and an internet link can do stuff like this.”
Instead of Domino’s reaching out to large-scale press and news editors, they decided to post the responses on YouTube, as that is where the video first went viral, using the same search terms and tags as the original videos.
Check out real-time coverage of the story here. Make sure to look at the comments under the video as well, as it shows how people reacted to the news and how their perception of Dominos changed.
Analyzing Domino’s Efforts
Domino’s effectively utilized social media to repair its brand image. They quickly responded to the crisis by launching a social media campaign that encouraged customers to share their honest feedback. This helped them to understand the issues and address them quickly and efficiently.
Domino’s use of multiple social media platforms also proved the adaptability of the company. This particular case occurred in 2009, so social media was relatively very new, and effects like this on a brand have never been seen before. Domino’s took initiative on Twitter, YouTube, and The Consumerist website to communicate to the particular audience and help rebuild its reputation. This was especially effective, as they combatted the issue at the root and reached the audience that it applied to. When people went to look at the video on YouTube, Domino’s response video would also pop up since they used the same search terms. This was a particularly genius move made by Domino’s PR and social media team.
Major Takeaways
Effects on Reputation
As users of social media, there are many things we can take away from this particular case study. It truly exemplifies the power of social media and how prevalent it is in playing a role in the marketplace.
Social media can have a significant impact on a brand's reputation. In this case study, negative feedback on social media led to a decline in sales and a loss of trust from customers.
Brands should actively monitor their social media presence and respond to customer feedback in a timely and respectful manner. Domino’s responded within 48 hours of the videos surfacing. Responding to negative feedback can help reduce the damage and improve the brand's reputation.
Social media can be a powerful tool for customer engagement and loyalty. By actively engaging with customers on social media, brands can build stronger relationships and earn the trust and loyalty of their customers.
Reputation is one of the most important factors of any brand. It is the consumer who decides - with their dollar - if your brand will be successful or not. A tainted brand image can ultimately lead to the failure of a brand entirely.
Building a positive reputation takes time and effort, and as we can see, it can be ruined within hours by the rapid nature of social media. A single negative incident can damage a brand's reputation, making it difficult to regain the trust of customers. It is important for brands to be proactive in addressing any issues that arise and taking steps to prevent similar incidents from occurring in the future. Ultimately, a strong reputation can lead to customer loyal customer satisfaction, increased sales, and a better overall perception against competitors.
Citations
Swann, P. (2020). Cases in public relations management: The rise of social media and activism. Routledge, Taylor et Francis Group.