Seems like I’ve becoming a fan of Domino’s Pizza lately, but oops~ I’m late.
Saw Alshammriy’s blog post there talking about Domino’s Pizza as well. Anyway, I will still go for it.
In case you are a first year international student and haven’t heard about Domino’s Pizza, it is an international pizza delivery corporation from US. They’ve been doing really good in term of leveraging their customer using web 2.0 (refer to my previous post here)
Well yeah, been talking about all the good stuffs about Domino’s Pizza and how well they’ve been using social media to enrich their brand. Social media is a powerful communication mechanism, However, similarly, to many other companies Domino’s have had their problems with the rise of social media and its effects on the world.
Disclosure of Confidential information
Nowadays, with a huge number of social media, leaking confidential information is easy and potential to public. For example, Domino’s Pizza employees may disclosure company’s confidential information by mistake to social media such as Face book or Twitter or may false empoloyee in Domino’s pizza who leaks confidential information by social media to competitor companies to get money.
What happened was two Domino’s employees posted a video on YouTube with unsavory pictures of how they prepared the food. This video quickly went viral with just under a million views on YouTube and mentions all around the web.
Not only was the publics perception of Domino’s heavily affected, the stock market reacted similarly, as Domino’s stock price dropped 10% over the week costing shareholders millions.
Reputation Risk
In the case of the Domino’s disaster the main legal risk is the risk of losing ones reputation. A company’s reputation, is one of the most valuable assets that it can hold.
The video that was posted online had an enormous effect on the company’s reputation and even though the responsible parties were disciplined, the damage had been done.
Social Media Policy Helps!!
What Domino’s did that prevented the situation from going out of hand was that they quickly responded to false, misleading or deceptive comments instead of removing them
Domino’s changed its ingredients for all its pizzas and worked hard to get the word out on social media that it was a whole new era. It put up PizzaTurnaround.com, a social micro-site which documents the company’s efforts and uses third-party endorsements through Twitter to show that it’s the real deal. It embraced Twitter, staying consistent with it’s #newpizza hashtag and keeping a constant stream of commentary with consumers.
Has it worked? Do you think Domino’s has redeemed itself? Let me know in the comments.
Fanny Yuwono 