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Domino's Pizza to treble marketing spend

25 July 2011 by

Domino's Pizza is set to launch a new gourmet pizza range to coincide with a massive new marketing campaign, the group announced today.

The pizza delivery company is set to treble its marketing spend in the next six months as it links ups with a Simon Cowell-backed TV show, following on from the success of its sponsorship of Britain's Got Talent.

Chief executive officer Chris Moore said: "Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months, we are very excited about the future."

Domino's recent new line, the stuffed crust, has already proved a key driver of the chain's financial success over the last six months and now accounts for nearly 15% of sales. The group now expects even stronger results down the line, despite the continuing tough economic climate.

The group's interim results for the 26 weeks to 26 June 2011 showed like-for-like sales grew by 2.4%, with profit before tax increasing 14.8% to £20.1m from £17.5m for the same period last year.

Moore added: "I am delighted to announce a good set of results in what can only be described as a very tough operating climate."

Online sales continue to grow substantially and now account for £85m (2010: £56.9m) - or 41.9% of UK deliveries, up from 32.7% in 2010.

The group opened 22 new stores in the first half of the year, 18 by existing franchisees, creating around 650 new jobs and is on track to reach its target of creating around 1,800 new jobs this year.

Founded in 1960, the first Domino's Pizza opened in the UK in 1985. There are now 688 stores in the UK, Republic of Ireland and Germany primarily through a franchise model. Globally there are more than 9,350 stores in 70 international markets.

TV helps Domino's post 30% rise in profits >>

Domino's to open up to 43 motorway sites >>

Domino's snaps up 75% of German franchise business >>

By Emily Mason

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