Research Winner: Domino's Pizza turns 2 years of recipe research into successful product overhaul

Chefs at the Ann Arbor Township-based international chain’s headquarters got it right. Domino’s backed its new recipe with a major marketing campaign, which the company described as the biggest in its history, and a warm reception from customers fueled sales increases in the first three quarters of 2010.

Domino’s is AnnArbor.com Business Review’s 2010 “Deals of the Year” winner in the research category.

The new pizza, according to Domino’s, boasts a "garlic seasoned crust with parsley baked to a golden brown.” The sauce is “sweeter” and “bolder” with a “red pepper kick” and 40 percent more herbs. The mozzarella cheese is "flavored with just a hint of provolone” and shredded instead of diced.

Domino’s, eager to avoid the pitfalls of Coca-Cola’s New Coke disaster in the 1980s, conducted extensive market research before introducing its new recipe - all in an effort to ensure its success. The firm also monitored social media Web sites and influential bloggers to tailor changes.

"I'm excited, not nervous," Doyle said when the product was introduced. "We have done an unbelievable amount of consumer research over the past two years."

AnnArbor.com Content Director Tony Dearing accepts the Research award on behalf of Domino’s from Larry Freed of ForeSee Results.

Melanie Maxwell | AnnArbor.com

Domino's research showed that the percentage of consumers who said they would "definitely purchase this pizza in the future" improved 25 percent with the new product.

"That's a landslide in the market research world," Doyle said. "It's unheard of. We're absolutely convinced we've got it right."

He was right. Domino’s sales have been on a continuous upswing since the new pizza was introduced.

Sales at Domino’s stores open at least a year rose 14.3 percent in the first quarter, 8.8 percent in the second quarter and 11.7 percent in the third quarter. In a hypercompetitive industry, sales increases of that size are considered significant.

"We're pleased that people love our reformulated pizza, the value of our offer and our honest and straight-forward communication of our brand values," Doyle said in a statement last month. "We're a new Domino's.

“ … Despite these tough economic times, we continue to outperform the majority of the restaurant industry due to our energized domestic business and our powerful international division."