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Product Management Root Cause Analysis Question: Investigating sudden sales decline for Domino's new pizza product
Image of author vinay

Vinay

Updated Dec 3, 2024

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What caused the sudden 30% drop in sales of Domino's new stuffed crust pizza last week?

Data Analysis Problem-Solving Strategic Thinking Fast Food Restaurant Chains Food Delivery
Root Cause Analysis Competitive Strategy Product Quality Fast Food Sales Analytics

Introduction

A sudden 30% drop in sales of Domino's new stuffed crust pizza last week is a critical issue that demands immediate attention and thorough analysis. This significant decline in a key product line could have far-reaching implications for Domino's market position and overall revenue. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking this could be related to a recent change. Has there been any modification to the stuffed crust pizza recipe or preparation process in the last month?

Why it matters: Recent changes often correlate with sudden performance shifts. Expected answer: Yes, a slight change in cheese blend was implemented. Impact on approach: If confirmed, we'd focus on product quality and customer perception.

  • Considering the specificity of the drop, I'm curious about our measurement accuracy. Has there been any change in how we track or report sales data for this product?

Why it matters: Data integrity is crucial for accurate problem identification. Expected answer: No changes in data tracking or reporting. Impact on approach: If confirmed, we can rule out measurement errors and focus on actual sales factors.

  • Given the magnitude of the drop, I'm wondering about external factors. Have we seen any significant competitor actions or market shifts in the past week?

Why it matters: External factors can dramatically impact sales, especially in the competitive food industry. Expected answer: A major competitor launched a similar product with aggressive pricing. Impact on approach: If confirmed, we'd need to consider pricing strategy and differentiation.

  • Thinking about customer behavior, I'm curious about feedback channels. Have we noticed any spike in customer complaints or negative reviews specifically about the stuffed crust pizza?

Why it matters: Customer feedback often provides early indicators of product issues. Expected answer: There's been a 50% increase in complaints about cheese quality. Impact on approach: If confirmed, we'd prioritize product quality investigation and improvement.

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