Domino's did several things right. First, its recession-related tactical promotions in its TV activity and its value-based offers showed good focus and resulted in a positive impact on traffic and sales. Second, its online and search activity supporting those promotions led to increased uptake with online delivery. A recent MPV Crest market share report ranked it No. 1 in online sales with a 28% share of that market, up from an 11% share just 24 months ago. Removing the impact of the YouTube incident, Domino's management said it would have seen an increase in year-on-year sales.
While Pizza Hut scored a touchdown with its smart media programs, particularly in the social media space, this is a category whose sales remain largely driven by the core TV and promotional activity. Pizza Hut receipts in the second quarter were down about 8%.
The final verdict? Domino's delivered.