Domino's sales increase with every TV ad
By Claire Billings,, brandrepublic.com, Friday, 15 February 2002 03:36PM
LONDON - Domino's Pizza has revealed that pizza sales increase 30% whenever one of its TV ads appears on Channel 4.
The ads are part of a £5m campaign launched at the beginning of the year, promoting a special offer of any pizza for £9.99.
The campaign was launched in an attempt to boost sales after Christmas, which is a traditionally quiet period for the pizza delivery chain after its busiest time of the year in the run-up to the festive season.
Domino's funds its advertising through a fund into which each UK store contributes a percentage, based on how much their sales increase.
Speaking at the company's full-year results, Domino's CEO Stephen Hemsley said: "It's a virtuous circle. Every shop puts in 4% of its sales into the advertising budget, so the more successful the ads are, the more we have to spend on them.
"By the time we get to 500 outlets, there may be an even greater potential -- there are 1,100 McDonald's in the UK."
The company said full-year pre-tax profits rose 31% to £2.9m on turnover of £43.9m, up 35% on last time.
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