New Challenges:
Looking for Growth
Looking for Growth
¶ A plus turned into a minus: June 2019 saw established Dodo pizzerias in Russia (those over two years old) lose sales year-over-year—by 0.9% compared with June 2018. This is a big change when you consider that our older pizza shops used to grow annually without fail by 30−40% up until a year ago.
We could easily console ourselves. We could point out, for example, that 2018 was the year of the FIFA World Cup in Russia. We could even add that we had launched, quite successfully, our first national TV ad campaign right before the World Cup. Nowhere left to grow, surely!
But the revenue dynamics of our older pizzerias are a crucial metric of the current condition of our business. And growth has been slowing down since September 2018. Delusion and covering up mistakes aren't a part of Dodo's guidelines.
We understand now that it's time to do something, so we have developed a new strategy for the Russian market that will make Dodo's delivery service more accessible and our restaurants more competitive. We have also changed our working practices, so that blunders like these can never happen again.
We could easily console ourselves. We could point out, for example, that 2018 was the year of the FIFA World Cup in Russia. We could even add that we had launched, quite successfully, our first national TV ad campaign right before the World Cup. Nowhere left to grow, surely!
But the revenue dynamics of our older pizzerias are a crucial metric of the current condition of our business. And growth has been slowing down since September 2018. Delusion and covering up mistakes aren't a part of Dodo's guidelines.
We understand now that it's time to do something, so we have developed a new strategy for the Russian market that will make Dodo's delivery service more accessible and our restaurants more competitive. We have also changed our working practices, so that blunders like these can never happen again.
The Product Is the Marketing
We used to have two teams—one responsible for menu development, another for brand promotion. Each team did excellent work, but no one could really see the whole picture and therefore feel responsible for the end result, which is business growth. That’s why in the summer of 2019 we decided to abandon this division.
Two Markets, Two Teams
Dodo Pizza is playing two games at once. We compete with delivery aggregators in the delivery market, and at the same time, our restaurants compete both with fast-food chains and family restaurants. We now consider these two areas separate business entities, each having its own cross-functional team with a leader.
Do We Have a Plan?
Not too long ago, Dodo Pizza was a startup. We were growing fast and managing without a marketing strategy. The 2018/2019 season has shown us that this approach is no longer viable. We are now going to map out a marketing plan one year in advance, to be approved by the Partner Council consisting of 11 franchisees.
What About Revenue?
The profitability of the business for our partners is our primary goal. Some of our innovations, however, are part of a long-term game and they can temporarily drive profits down. Too many innovations may throw our format off balance. To ensure this does not happen, we now assess the possible influence of all decisions on a pizzeria’s business model.
CEO/CMO
In the summer of 2019, our company CEO Fyodor Ovchinnikov took on the role of marketing team leader for the Eurasia region. To break the negative trend in the changing market landscape, decisions need to be taken at great speed, which only the chain’s founder can ensure. The team’s goal is to bring back the impressive growth rate Dodo has gotten used to.
MADE FOR MILLIONS
MADE FOR MILLIONS
Goals and strategy 2019/2020
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