What We Can Learn From Domino's: Issue Management & PR Tactics (A Case Study of Domino's Pizza)

1. Planning for Problem/Issue Management

1.1. Problem Brief

In 2009, Domino’s Pizza face a problem in social media which is cause by their employees who posted YouTube video. In the video, two of Domino’s Pizza employees committing a violations of health department such as sticking cheese in their nose and place peperoni where sun doesn’t shine. The video has viral around the world with viewers nearly 1 million times and forwarded in several blogs and message board. By Wednesday April 15, 2009, New York Times reported that the video was top 5 out of 12 in Google search engine.

1.2. Analysing the Organization Smith (2013) in the book Strategic planning for public relations clear explain about formative research in terms of strategic planning for Public Relation or in issue or problem management. One phrase is about analysing the organisation to see several aspects in the organisation as follows:

Internal Environmental

Domino’s Pizza Enterprise Ltd is the largest Pizza franchise in the world. Domino’s owned by Domino’s Pizza, Inc and listed US company. In terms of franchise, Domino’s holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan and Germany. With more than 2000 stores around the world, Domino’s Enterprises extends the business across seven countries.

Public Perception

In publics eyes, especially customers of Domino’s; Domino’s have seen as affordable pizza with authentic taste and choice. The company perceive image as fun same as the mission statement of the company which is sell more pizza, have more fun.

External Environmental

The business for Pizza is highly competitive, increasing of franchise business number around the world make Domino’s have rivals. Domino’s have several competitors which are well-known company with high rates of business as well. Exactly for Pizza industry, the competitors sell the same product with Domino’s in different taste only. The important thing for Domino’s is keep the customers in their business and create better services for having customers loyalty.

2. Situation Analysis

Situation analysis as explained by Smith (2013) is a part of strategic planning for Public Relation to tackle a problem because the situation analysis is the crucial process to involved all aspect related with the problem/issue for instance:

2.1. Potential Problem

The problem facing by Domino’s Pizza is real lack of social media control, in fact that company has limited access to control their employee’s social media activities. Domino’s create a social media team officers for control internal social media activities but not the employees. Due to the video as a source of problem been viral around the world; it can make the potential of problem been emerging is high which is the authority to delete the video is on Domino’s employee’s hands. The social media officer of Domino’s exactly only can block several accesses or make a limitation of the video spreading out; however, information in social media is fast to be spread out.

2.2. Meditation and amplification

Due to the video in YouTube already reach nearly 1 million viewers, it means that the problem is emerged and worst. Domino’s facing hard time in a way to tackle the problem. The authority still in the employee’s hands to remove and delete the video in YouTube. Domino’s prepared a mediation with YouTube to make a deal for the video can officially delete by YouTube; however, YouTube cannot do that. YouTube offer another way which is company have to dealing with employees for deleting action. Finally, on Wednesday, April 15 the video removed from YouTube after the mediation process between company and employees.

2.3. Company Response

In the first 24 hours, Domino’s keep calm and did not take aggressive response because Domino’s don’t want people to know about the problem which is already visually/visible. Cutlip, Center & Broom as cited in Mehta and Xavier (2009) stated that, ”Organisational responses can accommodate or counteract changes in the environment.” From the scholars thought, it clear that response from the company is very important to reduce the chaos. The first action from Domino’s once the Video has been viral; Domino’s fired two of the employees and put a warrant out for arrest. After that, Domino’s open a way for Health Department to make sure all things already inspected. Due to the video already removed after the mediation, Domino’s take an action by using social media (Twitter) to clarify about YouTube Video. Domino’s more open after the issue a little bit go down, the spokesperson from Domino’s in New York Times Wednesday, April 15 said, “We got blindsided by two idiots with a video camera and an awful idea. Even people who’ve been with us as loyalcustomers for 10, 15, 20 years, people are second- guessing their relationship with Domino’s, and that’s not fair.” In fact, many practitioners commented on Domino’s action because of the response is not immediately taken but Domino’s spent 24 hours already without doing nothing.

3. Publics

Dewey as cited in Smith (2013) stated a definition of public as a group of people that shares a common interest and set out to do something about it. Writer divided Domino’s public into three sections as follows:

3.1. Primary

- Customers

- Media

- Investors/Shareholders

- Donors/Foundations/Grantors The primary public for Domino’s problem is internal staffs which is employees in under Domino’s management. Domino’s have authority to create better understanding of all staffs about the problem. The message in internal company can easy be spread out and under company control so it means that easy to be monitor.

3.2. Secondary

- Producers

- Suppliers Publics listed above are the secondary publics for Domino’s which is have strong relationship in terms of basic stock supply. In the video shows that employees playing around with the ingredients that come from producers or suppliers. But these public under business corporation; it means that as long Domino’s can give good income for them, they will still keep the business relation.

3.3. Tertiary

- Internal staffs (Employees) The tertiary public is the key in order to tackle the social media problem. Most of the publics can affect in terms of the reputation and the organisation growth. To deal with the problem, company need to make a good response to those publics for instance media which full of questions about the problem and wait for any thought from Domino’s spokesperson. By having good relationship with media, media domino’s for supporting about in order to getting back company’s reputation. All investors and donors are important as well to help the company growth, by the problem, investors and donors will consider in continuing the corporation in the future because the problem can decrease Domino’s income. In addition, customers could have big change in Domino’s income because customers are the main public that buy Domino’s products. Without customers, Domino’s will be stuck in their business.

4. Public Relations Tactics for Public

Mahoney (2013) suggested several tactics to deal with publics including a matching system between strategies and tactic or messages and tactics. Based on those publics who affected with Domino’s problem, here some tactics that will use to tackle the problem, as follows:

5. Ethical Approach for Dealing with The Problem

5.1. To creates ethical ways; my approach for dealing with the problem is by apply communication plan, as follows:

Anticipate:

- Identify potential threats

On this step, before the problem been emerged, the social media team should have further action to see the worst impact that going to happened in the future.

- Monitor areas of risk

Place a team in social media to look after all conversation and public reaction is a must action to know how far the problem has been spread out.

Preparation:

- Define key info in advance

In general, making a plan is important before run the action. Key info is the main point to be define at the first time; once social media team already detect the problem; the key person/ key info should be under company control and build communication with them or make a negotiation.

- Anticipate information

By preparing in advance about further information that company should give to public is crucial to help company can have good foundation to explain about the fact. Provide training and media monitoring for controlling the problem atmosphere and take as much as possible information to clarify. Response:

- Choose the right spokesperson

Spokesperson is important as a supporter in solving a problem. When a spokesperson shows their authority and confidence in front of publics; publics can get the right information from the right source. Coombs (2007) stated that, “Organisational members must be prepared to talk to the news media during a crisis. This clear that a spokesperson can use the media conference to clarify all misunderstanding in a problem circle.

- React quickly and efficiently

Gregory; Duhe as cited in Fitch 2009, “are beginning to recognise the potentially transformative impact of technology on public relations and its important contribution to the ability of organisations to be socially responsive. By the scholars thought, organisations should have focus on being responsible in a way to handle problems. In terms of response, Domino’s wait and shut down the communication for over than 24 hours which is not good for problem management, in my personal believe, I suggest the company to act as soon as possible before the emerging of the problem. Because we already have a preparation above about information and key info, we can act fast and logic.

- Utilise standard process and procedure

With a proper process and procedure based of company law/rules, it helps company to running a problem management under the right system and pathway.

- During respond

Heath (1997) in the book Strategic Issues Management: Organizations and Public Policy Challenges clear suggested that a company should have a willingness of be open when facing a problem. By open to publics, all communication strategy will well-sent and publics can have better insight about the reality. In terms of response the problem company might try to apply 5’Cs which are Confidence, Clarity, Control, Concern, and Competence. All elements on 5’Cs is having strong relationship with other process or it means that those elements support all effort.

Post-Crisis:

After a crisis, company should be more aware and monitoring how the message delivered to all media partner and publics. This last step is more about monitoring system to make sure publics already get the point of clarification from the company.

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Reference:

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