In my last blog, I wrote about the lessons marketers could learn from the misfortunes of Toyota and Goldman Sachs (read my April 28th blog entitled “A Lesson for CMOs”). Because it had a negative theme, I was ready to drop the topic and move on to the next one. But then I read about how “honest marketing” can actually have a positive impact on business, and felt compelled to write.
In the first quarter of 2010, Domino Pizza reported a 14% increase in same-store sales in Q1 2010. Domino’s CMO attributes the Company’s honest marketing message for the positive results. In the advertising campaign, Domino’s founder admitted that their pizza wasn’t very good (supposedly the crust and the sauce were the guilty ingredients!), that they had listened to their loyal customers, and they were committed to improving their product. In an industry where single digit increases in same stores sales is considered good, 14% is obviously a great result.
It will be interesting to see what Domino’s does as a follow-up to this effective advertising strategy. After all, it doesn’t appear as if this is a strategy that can be repeated, does it? Furthermore, I wonder how receptive consumers will be if other companies play the “honesty card”. Would it be viewed as calculated and insincere?