The Digiday Podcast: Navigating Inflation and Reviving the Domino’s Brand

Episode Title: How Domino’s CMO Kate Trumbull Navigates Inflation and Reviving the Brand
Release Date: January 7, 2025
Host: Digiday (Hosts: Tim Peterson and Kameka McCoy)
Guest: Kate Trumbull, EVP and CMO of Domino’s Pizza

Introduction

In this episode of The Digiday Podcast, hosts Tim Peterson and Kameka McCoy delve into significant industry news before turning their attention to an in-depth interview with Kate Trumbull, the Executive Vice President and Chief Marketing Officer of Domino’s Pizza. The discussion centers on how Domino’s has successfully navigated economic challenges such as inflation and evolving consumer preferences to sustain and revive its brand.

Segment 1: Industry News Highlights

Before engaging with Katie Trumbull, Peterson and McCoy cover several pressing topics impacting brands, agencies, and publishers in the digital age.

1. Honey Influencer Scandal ([02:12] - [04:00])

• Overview: Megalag, a prominent YouTube creator, exposed that Honey, a PayPal-owned browser extension, was retaining affiliate revenue from sponsorship deals instead of sharing it with content creators.
• Impact: The scandal has garnered over 14 million views, leading creators like Legal Eagle to file lawsuits against Honey.
• Quote:
  Kameka McCoy ([04:00]): “Capitalism. But also, I think creators have been fighting that fight for a while...”

2. Netflix’s Expansion into Live Sports ([04:38] - [06:18])

• Details: Netflix successfully streamed NFL games, including high-profile events like the Beyoncé halftime show, attracting an average of 24 million viewers per game minute.
• Significance: This move marks a strategic shift for Netflix, traditionally focused on on-demand content, now positioning itself in live sports broadcasting.
• Quote:
  Tim Peterson ([05:31]): “Netflix proved it can drive a pretty big audience on a day when...”

3. Potential TikTok Ban in the U.S. ([06:37] - [08:03])

• Situation: Discussions from former President Trump suggest a possible delay or pause on banning TikTok in the U.S.
• Current Sentiment: Industry insiders largely view the ban as unlikely to materialize imminently, though TikTok is preparing for the possibility by offering refunds to advertisers.
• Quote:
  Kameka McCoy ([07:10]): “In the U.S. yeah, I know that there’s been conversations from Trump about wanting to delay or pause that...”

4. Striking Down Net Neutrality Rules ([08:24] - [10:17])

• Implications: The appeals court’s decision to strike down net neutrality rules could allow Internet providers like Comcast and Charter to throttle or block traffic to websites and streaming services.
• Potential Consequences: This reversal may lead to increased costs for streaming platforms and altered access for consumers.
• Quote:
  Tim Peterson ([10:17]): “What this means is a Comcast, a Charter, any Internet provider would be allowed to throttle or block traffic...”

5. Cancer Warnings on Alcoholic Drinks ([10:56] - [11:35])

• Announcement: The U.S. Surgeon General has recommended cancer warnings on alcoholic beverages.
• Market Impact: This could significantly affect alcohol advertising, prompting brands to adopt new marketing strategies.
• Quote:
  Kameka McCoy ([11:35]): “... this ties into a greater narrative because you've also got it on the table. Pharmaceutical ads...”

6. Third-Party Cookies and Fingerprinting ([13:42] - [16:51])

• Update: Despite previous efforts to eliminate third-party cookies, Google is now permitting fingerprinting and IP address tracking.
• Regulatory Response: The UK’s Information Commissioner’s Office has criticized Google’s stance, indicating potential future regulatory challenges.
• Quote:
  Tim Peterson ([15:36]): “Nothing could come of this. But Google reversed that decision. So yeah, it's basically just as if the past now five years of these kind of anti Tracking moves...”

Segment 2: Interview with Kate Trumbull, CMO of Domino’s Pizza

The second half of the episode features an insightful conversation with Kate Trumbull, focusing on Domino’s strategies to thrive amid economic pressures and shifting consumer behaviors.

1. Navigating Inflation and Maintaining Growth ([20:12] - [22:32])

• Strategy: Domino’s implemented the “Hungry for More” strategy, emphasizing “Most Delicious Food” and “Renowned Value”.
• Initiatives: Introduction of New York-style pizza and five-cheese mac and cheese; launch of the Emergency Pizza campaign and the “You Tip, We Tip” initiative.
• Quote:
  Kate Trumbull ([20:35]): “We launched our New York style pizza, which happens to also be my favorite pizza crust...”

2. Engaging Franchisees and Collaborative Execution ([22:51] - [24:30])

• Franchisee Involvement: Domino’s prides itself on having deeply experienced franchisees who contribute significantly to campaign development.
• Collaboration: Regular communication and data-driven decision-making ensure alignment and trust between the corporate team and franchise owners.
• Quote:
  Kate Trumbull ([22:51]): “Many of them have been in the system... 90 plus percent of our franchisees started as delivery drivers...”

3. Learning from 2024 Challenges and Setting Up for 2025 ([24:50] - [26:45])

• Challenges: Consumer financial pressure leading to reduced dining out, necessitating enhanced value propositions.
• Solutions: Revamped loyalty programs, making it easier for consumers to earn rewards and incentivizing higher engagement.
• Quote:
  Kate Trumbull ([24:50]): “We revamped our loyalty program... instead of ordering six times, you only have to order two times to get something for free...”

4. The Emergency Pizza Campaign ([27:25] - [35:50])

• Concept: A massive campaign offering free pizza to consumers in need, symbolizing Domino’s support during tough times.
• Development: Took two years to plan, involving cross-functional teams to ensure financial viability and operational integrity.
• Execution: Incorporated robust fraud prevention measures and emphasized unique marketing elements like the “break the glass” visual in the app.
• Impact: Significant gains in loyalty program memberships and incremental orders, reinforcing brand loyalty.
• Quote:
  Kate Trumbull ([30:08]): “We wanted something that would show that we had their backs and we were there for them...”

5. Brand Revamp Playbook and "Oh Yes" Moments ([37:41] - [44:16])

• Playbook Elements: Listening to consumers, leveraging cultural insights, and executing unexpected yet aligned campaigns.
• "Oh Yes" Moments: Strategic initiatives that deliver exceptional value and resonate deeply with consumers, such as the "You Tip, We Tip" and "Moreflation" campaigns.
• Adaptation: Balancing value delivery without devaluing the product, ensuring campaigns are unique and enhance brand loyalty.
• Quote:
  Kate Trumbull ([38:04]): “We find the moments where we want to keep leaning in...sweetbread our superpower is pizza...”

6. Future Plans and Engaging New Generations ([45:47] - [51:02])

• Targeting Gen Z and Gen Alpha: Introduction of a new mascot, Max Scott, to connect with younger audiences through unconventional and engaging content.
• Product Innovation: Continued focus on launching unique and customizable food items to maintain relevance and excitement.
• Digital and Social Strategies: Enhancing presence on platforms like TikTok and Instagram through influencer partnerships and creative storytelling.
• Quote:
  Kate Trumbull ([46:07]): “We just have to make sure it's showing up and... new items are coming through that people are excited about trying...”

Conclusion

Kate Trumbull’s insights reveal Domino’s commitment to innovation, consumer-centric strategies, and adaptive marketing in the face of economic challenges. By leveraging robust franchisee partnerships, enhancing loyalty programs, and executing impactful campaigns like Emergency Pizza, Domino’s continues to solidify its position as a leading global pizza brand. The conversation underscores the importance of agility, transparency, and cultural resonance in modern brand management.

Notable Quotes:

• Kate Trumbull ([20:35]): “We launched our New York style pizza, which happens to also be my favorite pizza crust...”
• Kate Trumbull ([24:50]): “We revamped our loyalty program... instead of ordering six times, you only have to order two times to get something for free...”
• Kate Trumbull ([30:08]): “We wanted something that would show that we had their backs and we were there for them...”
• Kate Trumbull ([38:04]): “We find the moments where we want to keep leaning in... our superpower is pizza...”
• Kate Trumbull ([46:07]): “We just have to make sure it's showing up and... new items are coming through that people are excited about trying...”

This episode provides valuable lessons for brands navigating similar economic and market challenges, demonstrating how strategic innovation and deep consumer understanding can drive sustained growth and brand loyalty.