{"id":1941,"date":"2015-10-31T19:18:43","date_gmt":"2015-10-31T23:18:43","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/dominos-pizza-mogul-crowdsourcing-pizzas-via-social-media\/"},"modified":"2015-11-02T17:56:56","modified_gmt":"2015-11-02T22:56:56","slug":"dominos-pizza-mogul-crowdsourcing-pizzas-via-social-media","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/dominos-pizza-mogul-crowdsourcing-pizzas-via-social-media\/","title":{"rendered":"Domino\u2019s Pizza Mogul \u2013 Crowdsourcing Pizzas via Social Media"},"content":{"rendered":"

Domino\u2019s Pizza is a traditional, mature brand that has discovered the benefits of harnessing digital crowds.\u00a0\u00a0For a long time Domino\u2019s has been forward thinking (relative to its peers) in using digital technology to offer more value to customers while better marketing its brand.\u00a0\u00a0\u00a0For example, its pizza ordering \/ delivery tracker provides real-time status updates for a given order.\u00a0\u00a0Through this app, hungry customers not only track their orders, but also engage with the brand by sharing feedback and using social media channels to share their experiences.<\/p>\n

Domino\u2019s Pizza Enterprises, the Australian franchise of Domino\u2019s, has taken digital technology one step further by leveraging crowds to create and market new types of pizzas. \u00a0Through a mobile app called\u00a0Pizza Mogul<\/em>\u00a0launched in 2014, Domino\u2019s has encouraged Australian consumers to create and name new pizza combinations and market their ideas via social media.\u00a0 All pizza creations are immediately available on Pizza Mogul<\/em>\u2019s online menu, and users are able to search for and purchase their favorite pizzas; top designers (measured by # of pizzas sold) receive prominent coverage on a Leaderboard.\u00a0 Within a few months of launch (mid-2014), the campaign had already attracted ~30K \u201cmoguls,\u201d over 100K new designs and over 5K online videos with customers promoting their own pizza creations.<\/p>\n

\"LEADERBOARD<\/a> \"puzzamuzza\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\"pizza<\/a><\/p>\n

 <\/p>\n

Pizza Mogul<\/em> incentivizes customers by giving them a direct stake in any successful design;\u00a0users whose pizzas are ordered by other customers will receive royalties from Domino\u2019s (ranging between $0.25 and $3 per pizza according to one source).\u00a0 \u201cPizza Master,\u201d the top mogul, is responsible for #TheMegaMeatlovers combination, which has sold over 15K pies (over $30K in royalties)!\u00a0 Like other crowdsourced campaigns, many consumers create and participate for non-monetary benefits (social engagement, simple enjoyment, etc.).\u00a0\u00a0 One of the key challenges with this type of campaign is maintaining momentum and keeping tail end users engaged \u2013 Domino\u2019s has done so by promoting its \u201csocial hub\u201d and adding other weekly cash prizes in addition to top selling mogul designs (e.g., #1 vegetarian pizza, creative award, etc.). \u00a0Interestingly, many of the participants are Domino\u2019s employees, and according to one source 2 of the top 10 leaders work for Domino\u2019s.<\/p>\n

For Domino\u2019s, the benefit of Pizza Mogul<\/em> is less about the creativity \/ product generation as the scope of the innovation is inherently limited (set number of toppings to limit company\u2019s cost exposure) and more about crowdsourcing serving as a low-cost marketing channel. \u00a0That said, the highest-selling creations suggest that there is unmet demand even for a mature brand like Domiono\u2019s; by leveraging a crowd Domino\u2019s has found successful product designs that were not available on its existing menu.\u00a0 Overall, Pizza Mogul<\/em> is a very well-aligned crowd source platform with benefits to both parties: customers receive royalties, prestige and other non-monetary benefits\u00a0while Dominos gets the privilege of creative marketing and higher customer willingness to pay (larger, \u201cmore complex\u201d orders which boost profits).\u00a0 Domino\u2019s has not disclosed the exact profit impact of this campaign, but my guess is that while the royalties to the best pizza designers seem high for the top moguls, on an aggregate basis this campaign costs very little given its marketing benefits – and the company may be profiting on net purely as a result of selling higher-priced pies.<\/p>\n

Domino’s intentionally limited\u00a0Pizza Mogul<\/em>\u2019s scope to avoid cost proliferation and to keep its execution manageable.\u00a0 Again, the purpose was not product innovation but rather attracting high-volume of relevant entries with significant sharing of ideas across customers.\u00a0 In my opinion, using crowdsourcing as a social marketing tool was particularly well-suited to pizza as it\u2019s inherently a more social, fun product.\u00a0 In evaluating the growth potential of\u00a0Pizza Mogul<\/em>, my instinct is that despite its novelty for many users, given its limited scope this is unlikely to ever transform Domino\u2019s business model.\u00a0 I would imagine the buzz of this campaign to wear off after a few months, particularly if the real value of participation is driven by monetary incentives (there are only a few highly-paid winners).\u00a0 That said, I certainly think other brands should try to emulate the success of Domino\u2019s crowdsourcing.\u00a0 Similar campaigns are great ways of generating new ideas, particularly in the retail \/ consumer goods sector. At the very least, companies can leverage digital crowds through simple, well-managed campaigns to creatively endorse their brands and drive higher customer engagement.<\/p>\n

 <\/p>\n

Sources:<\/p>\n

http:\/\/www.slate.com\/blogs\/moneybox\/2014\/11\/03\/domino_s_pizza_mogul_crowdsource_your_own_pizza_toppings_combination.html<\/p>\n

http:\/\/www.wsj.com\/articles\/dominos-pizza-crowdsources-its-menu-1414951922?cb=logged0.9928661650046706<\/p>\n","protected":false},"excerpt":{"rendered":"

Pizza Mogul: "Create a pizza. 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