Pizza Hut Plan Book

TABLE OF CONTENTS

“My PIZZA. MY HUT.”..................................................................................................................................................................................2

Campaign Objectives....................................................................................................................................................................................3

Market Analysis.............................................................................................................................................................................................4

Research........................................................................................................................................................................................................6

Problem statement........................................................................................................................................................................................8

Creative Plan..................................................................................................................................................................................................9

Mobile App....................................................................................................................................................................................................10

Advertising Efforts........................................................................................................................................................................................13

Budget Allocation..........................................................................................................................................................................................19

Evaluation......................................................................................................................................................................................................21

Appendix/References...................................................................................................................................................................................22

1

MY PIZZA. MY HUT.

In a five-month campaign, we will build awareness for our improved Pizza Hut mobile application by specifically targeting 18 to 34-year-olds.

These “millennials” • Are tech-savy • Are avid smartphone users• Demand immediate satisfaction

Our newly designed mobile application will change the way Pizza Hut consumers order pizza. By enabling easy to use login, voice ordering, and order history features, Pizza Hut consumers will be able to order pizza with ease and efficiency. In addition, users will be awarded points by making purchases through the mobile application. These can either be redeemed for bonus menu items or donated as contributions to the World Hunger Relief organization.

By utilizing Pizza Hut’s existing partnerships with World Hunger Relief, customers and Pizza Hut will be able to share the news of their contributions through social media outlets. This will not only strengthen fundraising efforts, but also help to further build Pizza Hut’s already strong social media presence. Our advertising efforts will be aimed primarily at online radio and sports television channels, with focus on social media outlets as well. Ordering pizza will no longer be something to check off the to-do-list, but an experience that will build brand equity within the consumer. Through these efforts, Pizza Hut will show an increase of mobile ordering sales by at least 32% by December 2015.

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CAMPAIGN OBJECTIVES

Identify:Identify the needs and wants of the target audience whileobtaining Pizza Hut’s establishedobjectives.

Assemble:Assemble research from the target audience to discover key reasoning behind their purchasing behaviors and how they rank Pizza Hut among competitors.

Evaluate:Evaluate campaign success through mobile app downloads, social media and Google Analytics after the five month campaign.

Execute:Execute campaign objectivesby diversifying ourselves among competitors and implementing strategies and tactics based on research findings.

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Pizza Hut has always been ahead of the curve when appealing to its customers. Since its early years, Pizza Hut has been a place that has drawn the teenage and college age crowds. They have continuously been progressive in their marketing and product offerings, working to capture the market share in the pizza industry.

In 2012, Pizza Hut was the first pizza chain to launch an iPhone app, offering consumers a more convenient way to order pizza.

Within the past year, Pizza Hut has made critical moves to target their millennial demographic. This includes their rebranding in 2014; with the launching of a new logo, and a new menu campaign that offered flavored crust options and a global fusion menu.

PIZZA HUT AS A COMPANY

The Pizza Hut story begins in May 1958, when brothers Dan and Frank Carney opened their first restaurant in Wichita, Kansas. The friendly neighborhood pizza restaurant soon gained popularity as a hang out for the teenage and college crowds. Just five years later, there were 42 Pizza Hut restaurants.

Now, Pizza Hut has grown into an international company with 13,200 outlets in 100 different countries. The company offers dine-in, pick-up, delivery, catering and outlet options. Pizza Hut states, “We take pride in making a perfect pizza and providing courteous and helpful service on time all the time.” They also pursue philanthropic efforts through a corporate partnership with the WHR campaign.

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THE COMPETITION

We identified Pizza Hut’s competitors as other chain and franchise pizza restaurants that offer pizza through delivery, take out and dine-in options. Despite Pizza Hut’s strong presence among consumers, other top competitors include Domino’s, Papa John’s, and Little Caesars. According to the American Customer Satisfaction Index, Pizza Hut and Papa John’s tied for the top placeholder in customer satisfaction.

Pizza Hut has been able to gain market share over its competitors by utilizing progressive marketing strategies and detailed consumer analysis. Pizza Hut was the first to launch their pizza-ordering app in 2012. Now, Domino’s, Papa John’s, and Little Caesars all have apps of their own. In fact, two years after the launch of their mobile app, Pizza Hut lost traction with users when Domino’s launched their voice-ordering feature in 2014.

THE PIZZA INDUSTRY

• The number one dinner choice in the U.S.• $40 billion industry, measured by sales per year • Makes up 20% of all restaurants nationwide• “The Big Four”: Pizza Hut, Domino’s, Papa John’s, Little Caesars

PIZZA HUT’S SLICE:

• More than 7,500 locations in the U.S. • Accounts for 1.2% of all pizzerias in the U.S.• In 2014, sales accounted for 15% of all U.S. restaurant pizza sales

5

The Target

Meet Alex, a 25-year-old millennial. He is a working college student who prefers fast and casual dining. As part of the smartphone generation, convenience is a top priority for his purchasing decisions.

Alex is only one of 80 million millenials living in the U.S. who embody the following characteristics:

• These individuals range from ages 15-35.

• Each year, millennials spend $545 billion on food, cars and clothing.

• In 2014, millennials attending college spent $50 million of their discretionary income on food.

• 88% of millennials use their smartphones for convenience.

• On average, millennials spend 14.5 hours a week on their smartphones.

• Millennials use their smartphones to utilize applications, watch videos, listen to music and stay connected through social media.

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Mobile Pizza Ordering Survey

• 45% of 428 participants preferred ordering pizzas online through their tablets or mobile devices

• 30% said they used their mobile devices for making online purchases

• 18% used their tablet while 48% used their laptop or computer to make online purchases

• When ordering through the mobile app, 20% ordered due to convenience and 19% liked the quick experience

• 44% of the participants who used the app, used it for convenience

Brand Awareness Survey

Our agency conducted a Pizza Hut Brand Marketing survey of 443 participants, aging 18-34. We found the following about those who order pizza:

• 68% chose Pizza Hut because of the great taste and consistent quality

• Approximately 53% ordered by phone

• 23% preferred ordering through an online medium

• 83% said they prefer to eat pizza with their family and friends

• 30% choose Pizza Hut over Papa Murphy’s, Domino’s, Little Caesars, and Papa John’s

• Taste and deals/promotions were determining factors for those who chose Pizza Hut

• Approximately 78% said they enjoyed their experience and would order again

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PROBLEM STATEMENT

OPPORTUNITIES

Create a reward points system that recognizes and awards frequent mobile app users

Provide interactive platforms and opportunities to engage with the target market

Promote philanthropic work with the World Hunger Relief (WHR) campaign

Engage with social media fans and followers to create brand loyalty through contests and giveaways on social media

Although Pizza Hut is the number one pizza restaurant in gross sales, there is a lack of awareness of their mobile application with only 43% of orders placed online.

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CAMPAIGN & CREATIVE STRATEGY

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Key Messages - Convenient - Interactive - Rewarding

PromotionsPizza Hut will partner with 2,000 select universities in the midwestern and southeastern regions to raise awareness about the mobile app. By giving students the opportunity to directly interact with the app through iPads, they will be able to see all it has to offer.

App RedesignIn order to ensure that Pizza Hut stays one step ahead of its competitors, we are proposing a redesign of their existing mobile application.

By introducing features unique to Pizza Hut, customers will be able to better connect with the brand. Pizza Hut, in addition will also have a better understanding of their customers by tracking trends and reviews.

We will take the convenience of Pizza Hut’s existing app and work in interactive and rewarding components. We will appeal to a rewards program that will reward consumers with additional menu items or a chance to help others through the World Hunger Relief campaign.

Traditional & Non Traditional MediaOur agency will be using traditional advertising mediums such as TV and radio commercials and billboards that appeal to millenials by underscoring the speed and customizability of the app.

The Battle of the Couches TV commercial puts guys against girls for who can order their pizza the fastest: the phone or the mobile app users. This is a great way to use nontraditional advertising such as social media to engage with Twitter followers by having them retweet or favorite to indicate their picks for the winner. This can be implemented as an integrated marketing campaign, so that the commerical is reshot with a different winner, guys or girls, each time with the app users always placing their order the fastest. The radio commercial appeals to millenials’ philanthropic mindset by having an announcer order from the app and donate reward points to the World Hunger Relief (WHR) campagin. The announcer then gets a shout-out on Twitter, which promotes his good deed and prompts his followers too donate as well.

THE MOBILE APP - HOME

First time users will no longer have to sign in to view the menu. Before placing an order, users will be asked to create an account through their email or existing social media networks including Facebook and Twitter. While navigating through the app users can utilize a voice-ordering option. The final screen will then ask which method of payment they would like to use including PayPal. Home Screen options include:• Menu• Rewards • Track Orders• Previous OrdersUsers can access what they want quickly, without having to take extra steps.

The bottom of the app will incorporate a scroll bar that contains smaller buttons for:• My Hut• Trending Orders• World Hunger Relief• Feedback

Through the incorporation of social and interactive features, the app will generate habitual usage. So even if users don’t plan to order they will still interact with the app and the brand.

Ordering and Menu

First time users will no longer have to sign in to order or view the menu. After completing most of the ordering process, they will be asked to choose between pick-up or delivery. The final screen will then ask which method of payment they would like to use before submitting the order.

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THE MOBILE APP - MY HUT

My Hut houses the user’s account information including:• My Points• Track Orders• Account Info (Credit Card or Paypal)

RewardsThe Pizza Hut app Rewards Program is designed to give an extra incentive to users who chose to utilize the app. It gives the user a chance to make their experience more personal and allows them to interact with the app.

Delegation of points:• For signing up AND using the app you will receive an initial 5 points• For every $10 you spend you receive 5 points

What you can receive PointsExtra topping 152 Liter Bottle of soda 151 Extra side dipping sauce 15

Breadsticks 30Cinnamon Sticks 30

Waffle Fries 45Cookies (3piece) 45

Wings 60Stuffed Crust 60

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THE MOBILE APPTrending Orders

The most popular items purchased by users of the mobile app will be displayed as suggestions for future orders.

World Hunger Foundation

This Links directly to the World Hunger page showing how much they’ve raised etc.World Hunger Relief

• Turns Points into Donations: - $1 donated for every 15 points - $1 – Feeds four children for a day - $3 – Feeds two children for a week - $5 – Feeds one child for a month - $10 – Feeds a classroom for a day• Donations shared through social media• Point kickback to those who donate to encourage ongoing participation• Donations matched throughout five-month campaign period• World Food Day – October 16

Feedback

This feature allows users to give direct feedback to Pizza Hut about their ordering experience & provide suggestions for improvement. All feedback will be accessible to Pizza Hut and help better serve their customers.

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RADIO AD

Medium: Internet RadioUnit: 30 secondsTitle: #GIVEASLICE

Anncr: Greg, I think something’s up with your Twitter man, it says you just donated and fed a whole classroom. I thought you were just ordering us a pizza?

Anncr 2: I was John, when you place an order using Pizza Hut’s mobile app you can turn your reward points into real donations to the World Hunger Relief Foundation.

Anncr: Wow, talk about multitasking!

Anncr 2: That’s not all. Honoring World Food Day, Pizza Hut is selecting ten users weekly throughout the month of October who share their donation via social media using the hash tag #giveaslice to win point kickbacks, free extras, even free pizza!

Anncr: I had no idea. I’m downloading the app right now!

Anncr 2: Buy a pizza, give a slice. My pizza. My hut. Pizza Hut.

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An example of our campaign’s Spotify radio ad. This can also be converted into a banner-style advertisement across the top of the webpage.

ONLINE RADIO AD

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2015 PIZZA HUT TELEVISION SPOTVIDEO

(1) SPECIAL EFFECT OF THE PIZZA HUT LOGO. DISSOLVE TO A MEDIUM SHOT OF TWO PROFESSIONALLY DRESSED MEN SITTING AT A TABLE FACING THE CAMERA.

(2) CUT TO WIDE SHOT OF TWO BOYS ON ONE COUCH AND TWO GIRLS ON ANOTHER COUCH LOOKING AT THEIR PHONES.

(3) CUT TO MEDIUM SHOT OF THE TWO MEN.

(4) CUT TO CLOSE-UP OF THE GIRLS’ PHONE AS THEY CLICK ON PIZZA HUT’S APP. APP OPENS TO THE HOMEPAGE. CAMERA PANS OUT TO A LOW-ANGLE, MEDIUM SHOT CATCHING THE GIRLS EXCITEDLY SCROLLING AND PICKING OUT THEIR ORDER.

(5) CUT TO MEDIUM SHOT OF THE TWO MEN.

(6) MATCHED CUT OF THE TWO MEN. ANNOUNCER 2 POINTS IN THE DIRECTION OF THE GUYS ON THE COUCH.

(7) CUT TO MEDIUM SHOT OF THE TWO GUYS ON THE COUCH. ONE IS ON HIS PHONE. THE OTHER IS TELLING HIM WHAT TO ORDER.

(8) MATCHED CUT OF THE TWO MEN. ANNOUNCER 1 LOOKS AT ANNCR 1 WHILE DELIVERING HIS LINE.

(9) MATCHED CUT OF THE TWO BOYS AND TWO GIRLS. THE GUY IS STILL ON HIS PHONE. THE GIRLS LOOK AT THEIR PHONE, THEN CELEBRATE THEIR VICTORY WITH A HIGH-FIVE.(10)RIPPLE DISSOLVE INTO SPECIAL EFFECT OF AN iPHONE WITH A SUPER OF THE PIZZA HUT LOGO ON ITS SCREEN, PLACED ON THE RIGHT SIDE OF THE SHOT. MATTE IN “Download the (SUPER PIZZA HUT LOGO) app today!” SUPER “Android App on Google play” AND “Available on the iPhone App Store”(11) MATCH SHOT

AUDIO

(1) FOOTBALL ANNCR 1: Welcome to Pizza Hut’s Battle of the Couches.

(2) (FOOTBALL ANNCR 1 VO): Let me tell ya Bob these contestants look hungry!

(3) FOOTBALL ANNCR 2: Yes Michael, but I’m gonna have to put my money on the guys, you can never go wrong with an old fashioned call! (4) (FOOTBALL ANNCR 1 VO): Bob I’m going to disagree with you on this, because the girls have the app!

(5) FOOTBALL ANNCR 1: And they are off to a great start.

(6) FOOTBALL ANNCR 2: The guys are placing their order!

(7) (FOOTBALL ANNCR 1 VO): Yes, but the girls are ready to check out.

(8) (FOOTBALL ANNCR 1 VO): Meanwhile your guys are stuck repeating extra cheese.

(9) FOOTBALL ANNCR 1: Wait, the Girls have won! And also earned free breadsticks through the mobile rewards program!

(10) FOOTBALL ANNCR 1: Bob? Bob what are you doing?

(11) (FOOTBALL ANNCR 2 VO): I am downloading the app!

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BillboardsPizza Hut will use a classic example of effective outdoor advertising to reach the “on-the-go” millennials. Our extended billboards will center their focus on downloading the mobile app. A total of 50 billboards will be placed within a 3 mile radius of targeted college campuses in the midwest and southeast regions of the U.S.

PROMOTIONS

College Campus OutreachIn order to directly interact directly with the target market, Pizza Hut will partner with 2,000 select universities in the midwestern southeastern region to raise awareness about the mobile app. Three iPad stands will be placed in the food court of each university so students can input their email while in line to get 10% off their first mobile order and be eligible for future mobile promotions. An ambassador hired by Pizza Hut will be available during peak times to provide additional mobile app information and answer any questions students might have.

How will students know about it?• University’s social media • Printed signs on-campus put up by ambassador• Info cards handed out to students in food court by ambassador

How much will it cost? • Approximate product cost : $1,200 (x 2,000 locations) + $1 million for charging stations• Ambassador stipend : $500 (x 2,000 locations)• Total: $4 million

OUTDOOR

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PROMOTIONS SOCIAL MEDIA

In the fast-paced world we live in, attention spans are rapidly shrinking. That is why social media must be an integral part of promoting the mobile app to millennials. We included sponsored ads on Facebook, Twitter, Instagram, YouTube and Snapchat in the budget. Also, we recommend posting regularly on Facebook, Twitter and Instagram.

To engage with followers and appeal to millennials’ altruistic nature, Pizza Hut will implement a Twitter contest on World Food Day, Friday, October 16.

Followers will be encouraged to donate their mobile app reward points, which will go toward the World Hunger Relief (WHR) campaign. Those who donate will get a shout-out on Twitter from Pizza Hut. The person whose tweet gets the most retweets will be awarded a free large pizza every week for an entire year. This promotes the app donation reward program and creates brand loyalty.

We allocated $8 million to advertise on the following social media platforms:• Facebook• Instagram• Snapchat• ` Twitter• YouTube

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BUDGET ALLOCATION & RATIONALES

The $110.8 million budget will be allocated between July and December.Rationales: The decision behind the campaign budget is based off the $227 million spent by Piz-za Hut for the 2011 year. Pizza Hut chose to mainly focus on Network Television since a majority of homes across the nation have Network TV. The sports programs and television shows selected are highly rated and very popular with millennials.

Budget AllocationNetwork TV

Cable TV

Online Radio

Outdoor

Mobile Application

Social Media

NBC The VoiceABC Modern FamilyFOX NFL SundayCBS The Big Bang TheoryCBS NFL ThursdayCBS Sunday Night Football

FacebookInstagramSnapchatTwitter

AMC The Walking Dead

PandoraSpotify

Billboards

OutreachMaterialsAmbassador

YouTube

$84,845,096

$4,964,340

$3,000,000

$6,000,000

$30,000

$8,000,000

$8,466,400$5,135,040

$18,000,000$4,409,168

$19,333,320$25,092,000

$1,000,000$2,000,000$1,000,000$2,500,000

$4,964,340

$1,500,000$1,500,000

$6,000,000

$1,500,000

$4,000,000$3,000,000$1,000,000

2 Broke Girls $4,409,168

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Pizza Hut Flow ChartMedia Vehicle July August September October November December Allocated Costs

Online Radio

Outdoor

Billboards 50 total billboard placements in midwestern & soutwestern regions of U.S.

National TVNBC The Voice $2,116,600.00 $2,116,600.00 $2,116,600.00 $2,116,600.00 $8,466,400.00

ABC Modern Family $1,283,760.00 $1,283,760.00 $1,283,760.00 $1,283,760.00 $5,135,040.00

CBS The Big Bang Theory $1,102,292.00 $1,102,292.00 $1,102,292.00 $1,102,292.00 $4,409,168.00

CBS 2 Broke Girls $1,102,292.00 $1,102,292.00 $1,102,292.00 $1,102,292.00 $4,409,168.00

FOX NFL Sunday $1,102,292.00$1,102,292.00 $1,102,292.00 $1,102,292.00 $1,102,292.00 $4,409,168.00

CBS NFL Thursday $3,866,664.00$3,866,664.00 $3,866,664.00 $3,866,664.00 $3,866,664.00 $19,333,320.00

CBS Sunday Night Football $5,018,400.00$5,018,400.00 $5,018,400.00 $5,018,400.00 $5,018,400.00 $25,092,000.00

Spotify $250,000.00$250,000.00$250,000.00 $250,000.00 $250,000.00 $250,000.00 $1,500,000.00

Pandora $250,000.00$250,000.00$250,000.00 $250,000.00 $250,000.00 $250,000.00 $1,500,000.00

$30,000.00Mobile Application $30,000.00

Promotions

Social Media$1,000,000.00Facebook $1,000,000.00

Cable TV

AMC The Walking Dead

$1,654,780.00 $1,654,780.00 $1,654,780.00 $4,964,340.00

$6,000,000.00

$2,500,000.00Twitter $2,500,000.00

$1,500,000.00YouTube $1,500,000.00

$3,000,000.00Materials $3,000,000.00

$1,000,000.00Ambassador $1,000,000.00

Grand Total $110,839,436.00

$2,000,000.00Instagram $2,000,000.00

$1,000,000.00Snapchat $1,000,000.00

8 SPOTS total for WEEKS 1,2,3, 4


































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THE LAST SLICE

Executing these new marketing strategies effectively will not only increase Pizza Hut’s online and mobile orders, but also strengthen millennials’ identification with Pizza Hut as a brand.

Track Online Orders and Downloads After New Mobile App

1) Compare before and after online order traffic on the Pizza Hut mobile app with comprehensive monthly reports (measured by Google analytics.)

2) Monitor the number of mobile app downloads between July and December.

3) Compare online sales purchases compared to in-store purchases.

4) Monitor consumer demographic data through the mobile app.

Measure Advertising Effectiveness

1) Measure awareness of Pizza Hut’s new mobile app before and after campaign.

2) Use Pizza Hut’s online databases to target responses to the new mobile app.

Measure Social Media Awareness

1) Compare the amount of Pizza Hut’s YouTube views/subscribers from July through December.

2) Compare before and after follower counts on Pizza Hut’s social networks.

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smartphones-mobile-study/16192777/

“Newswire .” Millennials: Technology = Social Connection. The Nielsen Company, 26 Feb. 2014. Web. 07 Nov. 2014. http://www.nielsen.com/content/corporate/us/en/insights/news/2014/millennials-technolo

gy-social-connection.html

Reporter, Daily Mail. “Pizza Hut Hopes to Lure Millennials with Its New ‘pizza Cookie’” Mail Online. Associated Newspapers, 20 July 2014. Web. 09 Nov. 2014. http://www.dailymail.co.uk/news/article-2691995/

Pizza-Hut-hopes-lure-millennials-new-pizza-cookie.html

Badkar, Mamta. “Pizza Hut Sales Unexpectedly Fall.” Business Insider. Business Insider, Inc, 16 July 2014. Web. 17 Nov. 2014. <http://www.businessinsider.com/yum-brands-q2-earnings-2014-7>.

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Chatter, F. (2014, March 31). Franchise Chatter Guide: America’s Pizza Franchises Vying for a Slice of the Pie - See more at: Http://www.franchisechatter.com/2014/03/31/franchise-chatter-guide-americas-pizza-

franchises-vying-for-a-slice-of-the-pie/#sthash.PFWtc0iw.dpuf. Retrieved March 27, 2015, from http://www.franchisechatter.com/2014/03/31/franchise-chatter-guide-americas-pizza-franchises-vying-for-

a-slice-of-the-pie/

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<https://order.pizzahut.com/home>.

9 pizza franchises hoping to deliver millions. (n.d.). Retrieved March 27, 2015, from http://www.msn.com/en-us/money/inside-the-ticker/9-pizza-franchises-hoping-to-deliver-millions/ss-BB84AHg

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Roberta Asahina, ProfessorGregory Baker, ProfessorHalle OrtizShauna RushMiriam HernandezDevin HarrisonJulius CotaAkin AbodeNanako KurosawaSean McHughSandra YangGianana Papagni Judson AndersonKatie CampbellAshlie DayKari BallMarissa Tatro Folajimi Akinshilo Aishwarya Agrawal

Katie LeeNathan MontanezJose GonzalezRichard Escareno MendozaLindsey BaldwinBriana GonzalesMia VillarrealGabriel GatchalianJesse Barriga SanchezJoey PerezJoe ManavazianPatricia JaurigueRachel SouvannarackAshley CouchArcelia JimenezElaine KokMoeko YokoyamaColby Tibbet

MY PIZZA. MY HUT.

AGENCY ONETHIRTYONE

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Documents

Pizza Hut Plan Book