April 21, 2009 Andy

Domino’s debacle postscript – all publicity is good publicity

Following on from the recent escapades of two (now ex) Domino’s employees I have been trying trying to follow up on whether either the damage to the brand has actually impacted the share price.

The clip was posted on April 15 to You tube. Over the day, views on You Tube increased as follows (all CET):
• 562,627 views (8am)
• 636,000 views (11:15am)
• 690,000 views (1pm)
• 728,816 views (3pm)
• 745,679 views (5pm)
• 930,390 views (9:30pm)

As you can see from he chart below, despite a mild drop, the share price has actually increased as the Twitter storm has gathered pace. I’m wondering whether this is a general response to any publicity (as the share price fluctuations are in line with what seem to be normal Domino’s trades) or whether the swift response of the CEO to the crisis actually enhanced his credibility?

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