Arrowhead Advertising NSAC 2015 Plans Book

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EXECUTIVE SUMMARY 2

You have to have a clear surface before you put your fists in the dough.

RESEARCH & STRATEGY 3 You never know what you may “knead”.

CREATIVE 10

Execution is everything so we’ll need a strong base.

USER EXPERIENCE 13

It’s got all the details. The sauce is the boss.

PROMOTIONS 14

Give ‘em something nice and cheesy to look forward to.

SYNERGY 16

Needs to be the right pizza for the right person.

CAMPAIGN EVALUATION 25 Did our pizza taste good?


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In 1950, the Carney brothers asked to borrow $600 from their mother to start a pizzeria. Thank goodness for her support because that little pizza place has grown into the world’s largest pizza company with over 6,300 restaurants in the U.S. Since then, Pizza Hut has been a leader in the industry by introducing the world to such innovations as stuffed crust and deep pan pizza. For years this made Pizza Hut the go-to place for family and friends to enjoy America’s favorite food — all under one roof. But recently, sales have declined as surrounding pizza chains out-positioned the red-roofed-restaurant in the digital ordering territory. Pizza Hut cannot stay where they are and continue to be competitive in such a technologically driven culture. The Arrowhead Advertising Team made it our mission to establish Pizza Hut as today’s king of online and mobile ordering — after all, they sold the first-ever item on the Internet: a large pepperoni, sausage, and mushroom pizza. To achieve this, we started by learning everything we could about our 18–49-year-old target market, our competition, and the pizza industry. Through primary and secondary research, we identified four distinct consumer segments, each having a lot to say about Pizza Hut. We discovered the red roof was outdated in the eyes of our consumer since many had not interacted with the brand since childhood. Pizza Hut is where they went for birthdays, ‘Book It!’, and post little-league baseball games — all types of celebrations. The newly introduced ‘Flavor of Now’ rebrand has regained the attention of curious consumers but still needs a digital extension to compete with other technology-driven pizza chains. There is a chance here to align Pizza Hut’s heritage and the new product roll-out to create an ordering experience like no other. Our message, in its simplest form is this:

Pizza Hut’s digital experience delivers a means of celebration, no matter how big or small the occasion. Using consumer and industry insights we have collected along the way, Arrowhead Advertising has built a campaign that combines Pizza Hut’s past with Pizza Hut’s present — a true integration of their celebratory spirit accompanied by a new and improved digital presence that will increase online orders to 75% by the campaign’s end.


In order to gain a comprehensive understanding of the current pizza marketplace — including emerging industry trends, the digital landscape, and how, when, and why people eat pizza — Arrowhead Advertising consulted 50+ relevant articles, reports and case studies, as well as conducted extensive primary research, utilizing:

INDUSTRY OVERVIEW

FOCUS GROUP PARTICIPANTS

SURVEY RESPONDENTS

Simply put, the pizza industry is at a crossroads. A shift in consumer preference toward a wider range of flavors, combined with the universal adoption of web-enabled technology, has forced pizza chains to reinvent the traditional dining experience:

BIGGER BUSINESS

With the 2008 recession firmly behind them, consumers are more inclined to spend, particularly when dining outside the home. The 2014 IBISWorld Industry Report 1 suggests pizza restaurants that target Americans of higher income brackets by offering more expensive, gourmet menu items will be primed for the greatest growth.

A CHANGING PALATE

Americans now want pizza options that often depart from the traditional cheese or pepperoni variations. This shift speaks to a broader emphasis on personal health; consumers expect restaurants to offer health-conscious alternatives like whole-grain or gluten-free crusts to accommodate what has become an increasingly prevalent shift in lifestyle.

THE RISE OF TECHNOLOGY

In an industry that has always demanded convenience, simplicity, and immediate satisfaction, the rise of mobile technology such as smart phones and tablets has only accelerated the digitization of the pizza market. The typical dining experience is no longer confined to the traditional sit-down restaurant, as consumers turn to innovative devices to satisfy their cravings wherever they are.

“The [pizza] experience is outside of the pizza place” 2 Bruce, 20

GUERILLA INITIATIVE RESPONDENTS

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PERSONAL INTERVIEWS

The ubiquity of technology has radically altered the brand-consumer dynamic. Consumers expect brands to infuse their experience with the same simplicity and seamlessness that drives their digital lives on a daily basis.

EXPANSION & INNOVATION

The ever-increasing variety and capabilities of digital devices provides companies with a range of new touch points designed to enhance relationships with their customers, offering seamless, web-based ordering systems and engaging social media content. In addition, social media accounts have become digital extensions of the brands themselves, playing a crucial role both in projecting a consistent identity and cultivating a prosperous relationship with the consumer.

ONLINE ORDERING

In addition to revamped menus, online ordering has become the competitive differentiator among brands. Recent innovations like voice ordering and “pizza trackers” have allowed brands to distinguish their system as the most innovative and easiest to use.

1 2

Brennan, Andy. Rising Dough: Pizza Innovation and Improved Incomes Will Drive Demand and Revenue. Rep. N.p.: n.p., 2014. Print. Focus group participant


4 Despite laying claim to the largest share of the market and highest total sales figure of 2013, Pizza Hut (30%) is a distant third in the digital space to both Domino’s and Papa John’s, each of which derive about 45% of their total sales from digital ordering.3 This stems from Pizza Hut’s perception as a brand that is stuck in the past, both digitally and in their product portfolio.

“When I think Pizza Hut, I think going there after a Little League game and I haven’t been there since.” 4

HOW THE TOP PIZZA BRANDS STACK UP (2013)

Trent, 19

“I probably haven’t been [to Pizza Hut] in like eight years.”

Industry digitization has also had a profound effect on the competitive landscape — digitally inclined chains have captured market share from smaller-scale pizza providers who now struggle to keep up due to a lack of capital and/or technological know-how. Thus, major national chains — namely Domino’s, Papa John’s, and Little Caesar’s — now stand as Pizza Hut’s main competition. In addition, Pizza Hut’s inability to project a solidified identity has further hindered its top-of-mind awareness in relation to competitors.

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MARKET SHARE 9

MARKETING SPEND 10

% SALES FROM DIG. ORDERING

BRAND POSITION

15.3%

$247 M 11

30% 12

?

9.7%

$191.1 M

53% 13

Honesty/Transparency

8.1%

$88.5 M

Does not participate in online ordering

Value

6.5%

$153.3 M

45% 14

Quality Ingredients

Rebecca, 22

Pizza Hut took the first steps in addressing changes in consumer tastes by updating the brand. In November of 2014, it launched the “Flavor of Now” campaign, the company’s biggest re-branding push in its 57 year history. “Flavor of Now” introduces ten crust options, six new sauces, five new toppings, four new “drizzles”, and 11 specialty pizzas to the menu. The campaign is also accompanied by a revamped brand aesthetic, which features a bolder, more modernized design and color scheme — consistent in everything from its website to its pizza boxes. Even its logo — the familiar red roof — has been made flat and one dimensional: “We’ve got a lot of equity in that roof,” says Jared Drinkwater, VP of Marketing at Pizza Hut, “but it’s time for a little makeover.” 6

Table 1

Pizza Hut

Chen, Johnny. "Domino’s Wants You to Talk Pizza With Dom." The Motley Fool. N.p., 25 June 2014. Web. Focus group participant Focus group participant 6 Lanks, Belinda. "Pizza Hut Goes Flat With Redesigned Logo."Bloomberg.com. Bloomberg, 11 Nov. 2014. Web. 7 Pizza Hut Brand Standards Manual 8 Focus group participant 4

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Papa John’s

Pizza is synonymous with sociality; be it the Super Bowl or a birthday party, pizza is the go-to food for any social or celebratory affair because of its convenience, wide appeal, and ability to be shared with a group.

“I want it now!”

The rise of digital ordering mechanisms has reinforced pizza’s identity amongst consumers as an affordable dining option that can be acquired quickly, if not immediately.

“PIZZA HUT... EH.”

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Little Caesar’s

“It’s not a meal—it’s an event.”

Pizza Hut has always been synonymous with its logo, namely the iconic “red roof” symbol, and its focus on the casual dining experience. Now, however, growing market digitization situates Pizza Hut’s commitment to providing a superior dine-in experience as drastically unaligned with the wants and needs of the modern, on-the-go consumer. Pizza Hut must consider ways to make “hospitality, comfort, and togetherness” 7 seem relevant and accessible in today’s digital realm if it wants its brand experience to transcend its dining rooms.

Competitors like Papa John’s and Domino’s project distinct brand personalities — consumers can’t say the same for Pizza Hut, which is viewed as a run-of-the-mill brand with no consistent identity and pizza “you either love or hate.” 8

Domino’s

(Continued on pg. 5)

Brennan, Andy. Rising Dough: Pizza Innovation and Improved Incomes Will Drive Demand and Revenue. Rep. N.p.: n.p., 2014. Print. Nielsen (2009, 2012) Morrison, Maureen. "Pizza Hut Taps Deutsch to Take Over Creative Duties From McGarryBowen." Advertising Age Agency News. Advertising Age, July 2014. Web. <http://adage.com/article/agency-news/pizza-hut-prepares-tap-deutsch-handle-creative-duties/294158/>. 12 Gagliordi, Natalie. "Pizza Hut: Mobile Orders Surpassing Online Orders." Www.pizzamarketplace.com. Pizza Marketplace, Jan. 2014. Web. <http://www.pizzamarketplace.com/articles/pizza-hut-mobile-orders-surpassing-online-orders/>. 13 Touryalai, Halah. "Technology, Not Pizza, Helps Domino's Crush Competitors And Grow Faster Than McDonald's Overseas." Forbes. Forbes Magazine, Oct. 2013. Web. <http://www.forbes.com/sites/halahtouryalai/2013/10/15/technology-not-pizza-helps-dominos-crush-competitors-and-grow-faster-than-mcd onalds-overseas/>. 14 "Papa John's Celebrates Its Technology Leadership Position with Free Pizza Offer." (NASDAQ:PZZA). Papa John's, Mar. 2014. Web. <http://ir.papajohns.com/releasedetail.cfm?ReleaseID=835145>. 9

10 11


5 Continued

“…but I want to speak with an actual person.”

There is a split in perception amongst those who do and do not prefer online ordering, particularly as it relates to interacting with restaurant employees and which process they find to be more trustworthy:

Although digital ordering is growing 300% faster than dine-in traffic , it hasn’t been universally adopted; some consumers still favor ordering over the phone with an employee, which is perceived to ensure higher order accuracy and more secure payment. 15

“I want it my way.”

DIGITAL NONUSERS

The ability to create their own pizza from a wide variety of toppings, cheeses, sauces, and crusts provides consumers with the personalized brand experience they’ve come to expect in the digital age.

Nonusers of online ordering prefer to interact with a human being either over the phone or in person due to the perceived higher order accuracy of the “human touch”. They also find the digital ordering process itself to be too time-consuming, overly complicated, and untrustworthy. Although they’re often hesitant to release private information online or through an app, this segment still indicated they’d be more inclined to order online if features like special coupons, order confirmation/tracking, and the ability to place orders in advance were available. 16

DIGITAL USERS

“If you had to order pizza right now, where and how would you order?”

Users of online ordering find the process to be expedient and especially useful when ordering on the go, or taking their time browsing menu items. They also favor interacting with their personal devices instead of an anonymous employee; they feel freer to create an order at their own leisure, more confident in order accuracy, and perhaps most importantly, a greater sense of value as a customer: “The app is more of my friend because it knows me better than any Pizza Hut employee.” 17

In order to find consumers’ brand and ordering preferences as well as to create an opportunity to engage with participants in a unique and fun way, we created the Pizza Poll. Using color-coded brand squares and four panels representing the four major ordering methods, participants first selected which of the pizza chains they liked the most, then placed the chain’s square in the panel of their preferred ordering method: over-the-phone, desktop, mobile app, or carry-out. We then interviewed participants after they made their selections to gain even more insight into what led to their decision.

“More like Greasy Hut.” 18

Health consciousness and a desire for flavor options play a crucial role in modern consumers’ dining choices. Despite the recent launch of its “Flavor of Now” campaign, Pizza Hut still struggles to shed its perception as a purveyor of “greasy”, low-quality pizza.

476 TOTAL PARTICIPANTS Pizza Hut

(Total: 197)

(Total: 178)

(Total: 21)

(Total: 80)

“I used to go there after Little League.” 19

Pizza Hut’s reputation as a place where people can enjoy a traditional dine-in experience is now unaligned with the wants and needs of the modern, on-the-go consumer. As a result, Pizza Hut is perceived as outdated and irrelevant in the digital market.

Domino’s Little Caesar’s Papa John’s

Kelso, Alicia. "The Top Online Ordering Trends Restaurants Can't Ignore."Www.qsrweb.com. N.p., May 2014. <http://www.qsrweb.com/articles/the-top-online-ordering-trends-restaurants-cant-ignore/>. Arrowhead Pizza Poll Insight 17 Arrowhead Pizza Poll Respondent 18 Focus group participant 19 Focus group participant 15

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6 We analyzed 67 tapestry segments that represent every type of consumer in America, courtesy of data software provider Esri. & SEGMENTATION

“The general pizza customer is a pretty broad target, typically 18–64-year-olds. In terms of digital, that target narrows to 18–49-year-olds and more specifically millennials aged 18-34.” 20 From our research, we discovered that despite having some commonalities, not all consumers within a given demographic are alike; this prompted us to consider behavior rather than demographic characteristics in order to identify, and then further segment our target market. After consulting the findings of 67 “Esri Tapestry Lifestyle Segmentation” reports — which encompass the market profile for each segment of American consumers — we pulled the 14 segments that best fit the profile for our desired target: digitally inclined consumers who, although increasingly more health conscious, are still likely to frequent fast food establishments to take advantage of convenience and cost. As research findings continued to reinforce the idea that consumers perceive pizza as “a social food”, we decided to further classify the consumers in each segment based on who they consumed pizza with: family or friends. Of those who consume with friends, we further defined the segment based on life stage. Of those who consume with family, we defined that segment based on psychographics. This led us to define four target groups that allowed us to tailor executions unique to each segment within a broader 18-49 demographic. Even though millennials are more inclined to order digitally, our target market had to be broadened in order to make Pizza Hut’s primary digital goal more feasible.

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2014 NSAC Pizza Hut Case Study

We analyzed 67 Tapestry segments that represent every type of consumer in America, courtesy of data software provider Esri.

Through data gathered from GfK MRI, we narrowed these 67 Tapestry segments down to those that we felt would be prime candidates to order digitally.

We threw out 53 segments and landed on 14 final segments that are both digitally inclined and likely to indulge in a less than healthy meal.

From our research, we know that pizza is a social food. We clustered these 14 segments into 2 targets based on who they’re being social with: friends or family.

SOCIAL WITH FRIENDS

SOCIAL WITH FAMILY

We didn’t just stop there. Within these 2 targets, we broke them down further and ended with 4 final targets defined by psychographics, household income, current life stage and where they’re headed.

DIGITAL DREAMERS

VALUE HUNTERS

THE IN-BETWEENERS

THE FAMILY NEXT DOOR


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Gen-Y techies looking for constant advancement.

DIGITAL DREAMERS

AGE RANGE: 18-35 #HH: 6,864,000

To the Digital Dreamer, technology is at the center of everything they do. That makes it easy to target them digitally but with their vast knowledge of technological advances, it’s hard to show them something they haven’t seen before. Pizza is all about convenience, whether it is ordered after a night out or because they couldn’t make it to the grocery store. Either way, the digital ordering process must be sleek and effortless or we’ll lose their attention.

Beginning householders juggling the responsibilities of living on their own or a new marriage while retaining their youthful interests

THE IN-BETWEENERS

AGE RANGE: 30s #HH: 5,143,000

From newlyweds to new graduates, our tech-savvy In-Betweeners are going through major life changes. They are moving cities, moving in, and moving on to the next stage of their lives. These transitional periods can be chaotic so they do seek out constants — especially when it comes to brands. Our married In-Betweeners still have the mentality of singles when in social settings so for this segment, pizza is a means of bringing old and new friends together.

Deal-driven families content with living a slower paced life. Pizza is a means of feeding their families — the social aspect is just an added benefit.

VALUE HUNTERS

AGE RANGE: 31-37 #HH: 3,886,000

Our Value Hunters rarely make a purchase without a coupon and when they do, price always beats quality. They provide for their families through a strict deal-driven lifestyle. Pizza is a means of sustenance and the social aspect is just an added benefit. You are more likely to see them using a TV tray than sitting together at the table because family time to them is bonding over the house’s favorite show.

Committed and connected. They have a higher standard of living and quicker pace of life. Pizza is the means to the social family experience.

THE FAMILY NEXT DOOR

AGE RANGE: 30-49 #HH: 12,781,000

Between getting the little ones to school, little league, and those play dates, our Family Next Door leads a very fast paced life fueled by technology. Their tablet and smartphone are always at arm’s reach, with each day scheduled to a tee. There’s no other way to balance a full-time job and the kids. Come dinnertime, you will find the whole house at the table enjoying each other’s company — especially when it’s pizza night. When it comes to ordering the pie, customization and speed is a must.


8 OBJECTIVES

& RECOMMENDATIONS

BRANDING Create an integrated campaign that modernizes Pizza Hut’s brand identity with the digital experience at the campaign’s forefront.

SYNERGY Reach the target segments through a synergistic media plan emphasizing the use of digital, social, and traditional media, but not excluding non-traditional media.

USER EXPERIENCE Enhance Pizza Hut’s user experience by developing solutions to common online ordering deterrents, and injecting the classic Pizza Hut experience into the digital space.

PROMOTIONS INITIATIVES Increase the positive perception of Pizza Hut and it’s digital world through promotions designed to stimulate trial, registration, and repeat behavior.

In developing our strategy, we broke down each objective by defining them based on the area of Pizza Hut’s business they affected:

ADVERTISING

MARKETING

SALES

Position Pizza Hut as the top choice for customers who order digitally

Provide the greatest digital ordering experience in the category

Reach the target of 75% of all orders placed digitally by the end of 2015

Research shows that consumers perceive a company more favorably when its brand stands for something and reinforces that position through its advertising.21 “As far as I can tell, Pizza Hut doesn't stand for anything — they need to go back to the drawing board and figure out who they are and what they stand for, and it can't just be $10 pizza.” – Bernie Pitzel, The Jacobs Agency22

What can Pizza Hut stand for? Consumers perceive other pizza chains as having distinct qualities and attributes. These serve as the competitive cornerstones of the brands’ identities, and are reflected heavily in their advertising. For example, Papa John’s — which had the most favorable perception amongst our survey respondents — embodies its commitment to the quality of its products in its “Better Ingredients. Better Pizza.” slogan. Pizza Hut needs to reflect on the qualities that made it so successful and build an updated positioning strategy to reinforce it. While “Flavor of Now” is a step in the right direction in addressing a changing consumer palate, it doesn’t specifically focus on the digital space.

Red Roof Symbolism Perhaps the most prominent element of the Pizza Hut brand lies in its logo — the iconic red roof symbolizes a warm welcome into an environment where great experiences are shared over great food. As pizza evolves from a dine-in experience to an on-demand service, Pizza Hut needs to consider ways its brand can be experienced outside the brick-and-mortar restaurants.

Not a new story, just a new chapter In staying true to the Pizza Hut experience, the campaign must not reinvent the Pizza Hut narrative, but write a new chapter that resonates with the needs of the modern consumer.

21 Schiff, Allison. "Pizza Heavyweights Build Brand Affinity and Vie for Customer Loyalty." Direct Marketing News. N.p., Mar. 2012. <http://www.dmnews.com/pizza-heavyweights-build-brand-affinity-and-vie-for-customer-loyalty/article/229098/>. 22 Schiff, Allison. "Pizza Heavyweights Build Brand Affinity and Vie for Customer Loyalty." Direct Marketing News. N.p., Mar. 2012. <http://www.dmnews.com/pizza-heavyweights-build-brand-affinity-and-vie-for-customer-loyalty/article/229098/>.


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IDENTITY CROSSROADS The connection between Pizza Hut and the social experience has weakened in the minds of consumers. The brand’s emphasis on the dine-in experience renders its classic identity as outdated and misaligned with trends in the pizza as well as the broader quick-service food industry.

BRAND-DEFINING IDEA Every moment is a chance to celebrate; just as pizza consumption is no longer confined to the four walls of a restaurant, so too is celebration no longer limited to milestone events. This idea must be transformed into a trigger point to order digitally.

“HERE’S TO NOW” is the acknowledgment of a moment’s significance “HERE’S TO NOW” is an ode to the power and presence of today’s technology “HERES TO NOW” is immediate satisfaction; “I want pizza, and I want it now!” “HERE’S TO NOW” is a celebration of how far Pizza Hut has come — it highlights the

rebranding and new product rollout But most importantly...

“HERE’S TO NOW” is Pizza Hut’s brand-defining idea manifested as a trigger point

for digital ordering.

THE SINGLE THOUGHT WE WILL COMMUNICATE The Pizza Hut digital experience delivers the ideal tribute to any celebratory moment.

TONE & PERSONALITY Welcoming, Inspiring, Sociable, Relatable

To test our concept among our target segments, we asked 200 respondents a series of questions in regards to our campaign tagline. Participant feedback only strengthened the faith we had in the “HERE’S TO NOW” tagline to capture the essence of our campaign. We asked people what comes to mind when you hear “HERE’S TO NOW”, and then analyzed their responses through Tableau and RStudio text analysis sentiment software. The word cloud below illustrates the most common words associated with the tagline.

People are always looking for reasons to celebrate — New Year’s, birthdays, graduations. But what about the moments that don’t have a title? When did celebration become exclusive to achievement and not enjoyment? Now’s the time for Pizza Hut to redefine celebration: To give meaning to those everyday victories. To use today’s technology to make the most of today’s moments.

IT’S TIME TO GRAB A SLICE AND MAKE A TOAST. HERE’S TO the daily celebrations, with family that became your friends, and

friends that became your family. HERE’S TO the little things that make up the big picture. HERE’S TO pleasure. HERE’S TO enjoyment.

PIZZA HUT —

What Comes to Mind When You Hear, “HERE’S TO NOW?” Additionally, 92% of all responses emitted a positive sentiment toward the tagline, “HERE’S TO NOW.”

8%

Positive 92%

Negative


10 EXECUTIONS Our 30 second television spot tells the story of how adorable underdog Scottie took home first place in his school’s Spelling Bee. To celebrate this everyday victory, his parents reward their super speller with the ultimate prize — Pizza Hut.

TARGET: Family Next Door & Value Hunters DIGITAL FEATURE: Showcases Pizza Hut app

Frame 1: Scene opens at a school Spelling Bee. Frame 2: Scene cuts to a close-up of Scottie’s After his competitor spelled their word father anxiously watching in the audience. Mark incorrectly, Scottie walks up to the microphone pulls out his phone to record Scottie. for one last round. We hear the off stage announcer say, “Your word is pepperoni.”

Frame 3: Scene cuts to an over the shoulder shot of Mark’s iPhone. We see Scottie begin to spell through the phone screen, “Pepperoni, P-e-p-p..”

Frame 4: Scene cuts to Scottie’s mom Cindy stuck at work. She receives a text message from Mark — it’s a video capturing Scottie spelling the rest of his word.

Frame 6: Scene cuts to an extreme close-up of Cindy’s phone as she texts her husband back. They decide to award their Spelling Bee champion with a pepperoni pizza. We see Cindy open up the Pizza Hut app on her phone.

Frame 7: Scene cuts to a wide shot of the family at their dining room table, sitting around the pizza — Scottie rightly at the head with medals hanging around his neck. Everyone then reaches for a slice. As Scottie takes a bite of his, both Cindy and Mark share a proud parent fist-bump.

Frame 8: Scene cuts to a close up of Scottie as he raises his slice, toasting his everyday victory. We then fade to the Pizza Hut logo and “HERE’S TO NOW” tagline.

Frame 5: Scene cuts to a close-up shot of her reaction as she watches. We hear Scottie continue, “e-r-o-n-i. Pepperoni.” The announcer then says, “That is correct!” Cindy gleams with pride.


Our 30 second spot, Everyday Victories, is our version of an anthem because it showcases, in the most relatable way, what a moment worth celebrating is. We follow a group of friends through the trials and tribulations of their digitally-focused day which ends with them ordering a pizza online and enjoying it together.

TARGET: Digital Dreamers DIGITAL FEATURE: Pizza Hut website

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Frame 1: Scene begins in Greg’s living room as he video chats on his iPad with Olivia. Greg asks Olivia, “Are we still on for tonight?”. Olivia replies “Absolutely”, but drops her phone.

Frame 2: The scene shifts to Olivia’s POV as she relievedly sighs at the sight of her uncracked phone. She then reassures Greg of their plans: “Yeah, I’ll let everyone know.”

Frame 3: Olivia dives into her contact list to Frame 4: The scene transitions to a parking garage where we see Carl and Brian scouring relay the plans to the rest of their friends. the floor for a spot.

Frame 5: Scene cuts to the car’s interior. Brian receives Olivia’s text message about tonight’s plans.

Frame 6: Brian lifts his head up from his phone to share with Carl: “Oh dude, Greg’s tonight at 7!” Carl quickly cuts Brian off as he elatedly spots the bright lights of a reversing parked car.

Frame 7: Scene cuts to Gina’s bedroom as she does some schoolwork.

Frame 8: Gina receives a snap chat from Brian, in which we see him and Carl claiming their coveted parking spot and then informing her of the evening’s plans: “Oh and don’t forget, Greg’s tonight at 7. You know what to do.”

Frame 9: Gina mutters the order to herself as Frame 10: Gina reaches into her bookbag and she feels around her bed for cash. “Ok I guess unexpectedly finds a $20 bill: “...oh and some that’s gonna be 1 large pizza…” honey sriracha flavor sticks!”

Frame 11: Gina orders the pizza on Pizza Hut’s website.

Frame 12: The spot concludes with all the friends paying tribute to their days over a delicious Pizza Hut pie. We then fade to the Pizza Hut logo and “HERE’S TO NOW” tagline.


12 For our 30 second broadcast radio spot, we congratulate our corporate young-guns on a successful workday and offer up some dinner inspiration during their drive home from the office.

TARGET: In-Betweeners DIGITAL FEATURE: CTA on Pizza Hut app

DRIVE HOME

Through precision targeting, this 15 second online spot will live in Pandora and be specifically placed in Study Genre Stations. For those diligent millennials who managed to choose hitting the books over hitting the bars, the ultimate celebratory study snack is just a click away.

TARGET: Digital Dreamers DIGITAL FEATURE: Leads to Pizza Hut website or app

Traditional, 5 PM

STUDY BREAK

It’s the end of your day and you made it through. You crushed those expense reports, sunk that paper ball jump shot, and finally made straight-faced Randy crack a smile. We say it’s time to celebrate. Give yourself the ultimate pat on the back by ordering from the Pizza Hut app ‘cause nothing says “you’re on fire” more than honey sriracha crust. Pizza Hut — “HERE’S TO NOW”.

Pandora, Studying Playlist

It’s late and you’re still studying. You fought the urge to go to happy hour, turned down coffee with the girl from 308, and the only text you read was in your books. We say it’s time to celebrate. Order yourself the ultimate study snack by clicking the banner below. Nothing says brain food like the ‘Giddy-Up BBQ Chicken’ pie. Pizza Hut — “HERE’S TO NOW”.

To remind viewers of all the everyday victories happening around the world in the 15 seconds it takes a registered Pizza Hut member to place a digital order, we created these preroll ads specifically customized for each segment in our target market. Self aware of his role in an advertisement, our spokesman poetically reels off all the great things going on right now.

Frame 1: Is there a better time than right now? In the 15 seconds it takes to play this ad someone out there just…

Frame 1: Is there a better time than right now? In the 15 seconds it takes to play this ad someone out there just…

Frame 2: Gained a follower. Avoided a parking ticket. Found the remote.

Frame 3: Got an extension on a paper. Took a power nap. Made it through an episode without buffering.

Frame 4: and you could’ve just sent in your Pizza Hut order. Celebrate the everyday victories, Pizza Hut “HERE’S TO NOW”.

Frame 2: Won a scratch off. Put the kids to bed without a fight. Bought one got one.

Frame 3: Unloaded groceries in one trip. Agreed on a movie. Got their kid off training wheels.

Frame 4: and you could’ve just sent in your Pizza Hut order. Celebrate the everyday victories, Pizza Hut “HERE’S TO NOW”.


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OBJECTIVES DESIGN EXECUTIONS To meet our objective of creating the best digital ordering experience in the category, three major additions to Pizza Hut’s existing digital assets will be introduced.

Pizza Hut’s “Flavor of Nowâ€? menu allows for endless combinations of original toppings, crusts, and drizzles. To increase consumer awareness of the new menu, we will introduce FlavorPoint — an interactive board that provides a visually stunning platform for exploration and ordering. FlavorPoint will be installed in high traffic, iconic locations. The board itself is a 4’ X 6’ stationary touchscreen where passersby are invited to customize their own virtual pizza using the revamped ingredients. Users advance through the stages of pizza creation — from sauces to drizzles — by tapping, dragging, and dropping on and around the pie crust. Once finished, they will be prompted to either hold their NFC capable device to the board or scan a displayed QR code to transfer the pizza from FlavorPoint to their phone. It is then added to a cart on the Pizza Hut mobile website where users can easily have their pizza delivered to them at a nearby address. “ 8]cTVaPcTb ²5[Pe^a ^U =^fÂł X]c^ cWT SXVXcP[ b_PRT

BENEFITS

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Increase consumer awareness of Pizza Hut’s digital presences Provide a seamless and cyclical ordering process that keeps users coming back Make Pizza Hut’s app and website a necessity for both digital users and non-users Encourage customers to create an online Pizza Hut account

Times Square, NYC

Grant Park, Chicago

Union Square, NYC Navy Pier, Chicago

Santa Monica Pier, LA

(Pictured Below)

Sunset Blvd, LA


14

Carrier

8:08 PM

75%

2

Say goodbye to that awkward, and often complicated process of splitting the check among friends. When our user is about to check out on either the Pizza Hut app or website, they’ll have the option of paying with My Slice. If a group needs to split the bill, their Pizza Hut logins will serve as a payment method — no cash or cards needed. The simple and intuitive design allows the orderer to either charge individual items to friends or split the total evenly. All Pizza Hut accounts involved are subsequently sent an email asking for payment approval. After all parties have accepted, funds are transferred, pizzas are made, and nobody has to worry about IOUs. Carrier

8:08 PM

75%

DESIGN EXECUTIONS

We created two promotions that use Pizza Hut’s website and app as engaging platforms while also getting us closer to the 75% digital ordering goal. OBJECTIVES

Encourage customers to create an online Pizza Hut account Increase brand interaction on an everyday basis Stimulate repeat purchase

Thursday, February 12

Amanda - Your pizza is 5 minutes away. Don’t forget to put your pants on!

“ 4PbTb Rdbc^\Tab¾ fPXc cX\T P]gXTch Qh ZTT_X]V cWT\ X]U^a\TS “ ?a^eXSTb ?XiiP 7dc fXcW eP[dPQ[T X]cTa]P[ SPcP PQ^dc ST[XeTaXTb “ 3aXeTb dbTab QPRZ c^ ?XiiP 7dc¾b P__[XRPcX^] U^a R^]cX]dTS engagement “ 4]R^daPVTb Rdbc^\Tab c^ RaTPcT P] ^][X]T ?XiiP 7dc PRR^d]c

BENEFITS

BENEFITS

Door-to-Door puts to rest the age-old question of, “How long until the pizza gets here?� By utilizing simple GPS and barcode software, located on a delivery driver-side app, customers will now know when their pizza is on its way and how long the wait will be. Order receipts are assigned a barcode that drivers scan when en route. Upon scanning, the driver-side app approximates the time it will take to reach the destination. So once the order is out Pizza Hut’s door, customers receive push notifications when the driver hits the 15, 10, and 5 minute mark. For access to Door-to-Door, users must sign up for an online Pizza Hut account.

College GameDay is ESPN’s live pregame show that reports on highly anticipated college football matchups. Pizza Hut will partner with them for a season-long, voting-based promotion called Pick ‘n Play. One matchup each week will be highlighted on air. It’s simple — if the team you pick wins, you win. College football fans must create a Pizza Hut online account to play. Then by accessing the Pick ‘n Play ballots on either the ESPN or Pizza Hut website, they pick the team they think will win. Players who pick correctly will receive a coupon redeemable online for breadsticks or a Hershey’s Ultimate Chocolate Chip Cookie. In addition, they will participate in our weekly drawings where one lucky fan will walk away with free pizza for an entire year. This leads up to our Pick ‘n Play grand prize. Each time users correctly pick the winning team, they will be entered to win an all-expense paid trip for two to the College Football Playoff National Championship game in Glendale, Arizona. The winners will be announced in late December, 2015.

“ DaVTb Rdbc^\Tab c^ RaTPcT P] ^][X]T ?XiiP 7dc PRR^d]c “ ?a^eXSTb X]RaT\T]cP[ X]RT]cXeTb cWPc T]R^daPVT Rdbc^\Ta engagement “ 4g_P]Sb Rdbc^\Ta [^hP[ch P]S T]bdaTb aT_TPc QTWPeX^a


15

DESIGN EXECUTIONS

PIZZA PERKS TIER SYSTEM TIER 1: 75 points Chose either $5 off $25 puchase OR Pizza Hut koozie

TIER 2: 150 points

Additional points are awarded for ordering featured menu items like speciality pizzas and new drizzles. They’ll also be given the choice of receiving text or push notification messages such as Double Points Day reminders. This is an additional promotion that encourages purchase habits during non-peak periods. Pizza Perks members can keep track of their points and tier progress on the Pizza Hut app or website.

Chose either $10 off $25 purchase OR Pizza Hut hat

BENEFITS

At the start of the “HERE’S TO NOW� campaign, Pizza Hut will introduce Pizza Perks — a point-based loyalty program that requires customers to sign up for an online account to enroll. Once registered, users redeem points for prizes based on a three-level incentivised tier system. Members automatically receive five free points for registering online — a great introduction to the program. Users continue to earn points with every Pizza Hut order. Each dollar they spend on the app, mobile site, and website is equal to one point.

“ 4]R^daPVTb Rdbc^\Tab c^ RaTPcT P] ^][X]T ?XiiP 7dc PRR^d]c “ ?a^\^cTb ]Tf _a^SdRcb PSSb eP[dT P]S U^bcTab a repetition of digital ordering

TIER 3: 250 points

“ :TT_b ]^] b\Pac_W^]T P]S b\Pac_W^]T dbTab continually informed while also encouraging brand interaction

Chose either $15 off $25 purchase OR Pizza Hut hoodie


16

Front-load media to achieve a maximum four-week reach of 80% during campaign kick-off, with an average frequency of 5. With the exception of August, reach will range from 50-80% over the life of the campaign with frequency averaging from 3-5 Select digital media that remains heavy throughout the six-month flight, generating 2.4 billion target impressions Allocate budget based on demographic, psychographic, and geographic variables 1. Los Angeles 2. San Francisco 3. Seattle 4. San Diego

Do not exceed budget of $41,000,000 over the course of the six-month flight

5. Phoenix 6. Salt Lake City 7. Denver 8. Dallas

Digital Dreamers

Create a pulsing schedule that combines continuous digital media and flighting traditional media around key sales periods to achieve the desired targeted goal impressions. Increased interest and awareness will be generated during campaign kick-off through implementing both national and spot media buys. Utilize digital media vendors that target based on demographics, psychographics, and geographic locations — all living on contextually relevant sites.

Media buys are based on our four target audiences’ consumption and lifestyle habits. To compliment the rollout of Pizza Hut’s existing “Flavor of Now” campaign while also bringing awareness to our “HERE’S TO NOW” extension, we will utilize high-impact, high-awareness, and high-engagement media channels.

9. San Antonio 10. Austin 11. Houston 12. Minneapolis

In-Betweeners

13. Chicago 14. Detroit 15. Atlanta 16. Orlando

Value Hunters

17. Tampa 18. Miami

Family Next Door

30 second spots will air both nationally and in our top 18 DMAs during early fringe, prime, and late fringe on shows and networks that our targets are watching. While some buys are geared specifically towards one of our target markets, many of these placements appeal to all four.

RATIONALE

Television is one of the most efficient ways to build brand awareness and broadcast offers a national reach and coverage essential to reaching all four of our targets.

167

170

120

126

-

-

152

111

111

109

-

-

308

353

215

-

251

256

215

Source: Simmons


17 Digital Dreamers

In-Betweeners

Value Hunters

Family Next Door

Along with original programs, cable also builds brand message awareness and provides a variety of syndicated shows that are popular with our targets — all at a lower cost per point than broadcast. -

RATIONALE

Adult Swim

FX

ESPN

A&E HGTV

RATIONALE

American Dad

167 253

170 200

120 269

126

The Cleveland Show

313 -

272

152 -

111--

Family Guy

246 111

109 201

262

-

Futurama

308 345

353 429

215 310

--

American Horror Story

251 225

256 268

215 178

-

Sportscenter

167 137

170

126 120

118 126

Country

College Gameday Pre-Game Show

109 -

94 -

171 152

142 111

Storage Wars

137 111

170 109

105 -

105 -

House Hunters

308 -

353

121 215

131 -

Love It or List It

251 -

256 -

123 215

132 -

TRADITIONAL SPEND & GRPs JUL

AUG

SEP

OCT

NOV

Adult Contemporary

167 -

170 121*

142* 120

156 126

Alternative

111 -

109 -

--

211 -

308 171

150 353

215 172

165 -

-

93 -

152

139 111

Hot AC

151 111

109 154*

118* -

205 -

News/Talk/ Business/Sports

251 -

256 -

215 -

138

Rock

251 -

256 203

215 -

181 -

Urban

210 251

256 171

215 212

236 -

Urban Contemporary

226 251

163 256

215 -

123 -

Contemporary Hits

Source: Simmons

TOTAL TRADTIONAL SPEND

Our radio spots will run in our targeted DMAs on an aperture schedule, hitting consumers when they’re hungry like afternoon drive time and nighttime dayparts.

Source: Simmons

DEC

TOTAL

Broadcast - Prime

$569,685

$569,685

$569,685

$1,709,055

Broadcast - Late Night/News

$315,705

$315,705

$315,705

$947,115

TOTAL GROSS RATING POINTS

JUL

AUG

SEP

OCT

NOV

DEC

TOTAL

Broadcast - Prime

15

-

15

-

-

15

45

Broadcast - Late Night/News

15

-

15

-

-

15

45

-

10

15

15

10

50

Cable - Sports

-

$340,470

$510,705

$510,705

$340,470

$1,702,350

Cable - Sports

-

Cable - Prime

$997,250

$797,800

$997,250

$797,800

$797,800

$997,250

$5,385,150

Cable - Prime

50

40

50

40

40

50

270

Cable - Late Fringe

$311,360

$233,520

$311,360

$233,520

$233,520

$311,360

$1,634,640

Cable - Late Fringe

40

30

40

30

30

40

210

Syndication

$980,800

$784,640

$980,800

$784,640

$784,640

$980,800

$5,296,320

Syndication

50

40

50

40

40

50

270

Broadcast - Prime

$834,475

$500,685

$834,475

$1,355,160

$1,355,160

$834,475

$5,674,430

Broadcast - Prime

25

15

25

40

40

25

170

Broadcast - Late Night/News

$278,240

$139,120

$278,240

$695,600

$695,600

$278,240

$2,365,040

Broadcast - Late Night/News

20

10

20

50

50

20

170

Cable

$406,040

$406,040

$406,040

$1,218,120

Cable

40

-

40

-

-

40

120

Evening Drive

$320,760

$320,760

$320,760

$962,280

Evening Drive

60

-

60

-

-

60

180

$71,400

$71,400

$71,400

$214,200

Nighttime

60

-

60

-

-

60

180

375

-

385

215

215

385

1,575

Nighttime Total

$5,085,715 $2,455,765 $5,426,185 $4,357,425 $4,357,425 $5,426,185 $27,108,700

Total


18 75287

While our traditional media will run nationally with spot market support in the top 18 overall DMAs, we are able to use our digital advertising to speak more directly to each target. Esri ArcGIS fuses substantial data with geographical mapping software to help us identify, down to a zip code level, where our targets cluster. This will be used both in our target DMAs and nationwide. Though an overall DMA may be significant in size based on total population, our four very different segments may be concentrated in only certain areas within that DMA.

For example, in Dallas, through our demographic, psychographic and geographic ArcGIS data, we will be able to serve a digital execution completely tailored to Digital Dreamers in zip code 75287. With 33,385 Digital Dreamers in this zip code alone, we’ll be reaching 14% of the Digital Dreamers living in the Dallas DMA. Similarly, knowing the low presence of Value Hunters in 75287, we will be able to avoid serving an execution in this geographic area where it would not resonate with residents. However, in neighboring zip code 75060, there are 19,202 Value Hunters waiting to be reached. Based on this information, we can serve an entirely different execution unique to this target — all within the same DMA; something traditional media would not allow. Optimizations will be made throughout the campaign according to Key Performance Indicators: Click Through Rate, Conversion Rate, and Video Completion Rate.

0 to 1,662

1,662 to 5,864

5,864 to 12,318

12,318 to 27,723

27,723 to 33,385

This Dallas map illustrates the importance of knowing exactly where our targets are living. Digital Dreamers have a low population in size in the Dallas DMA; if we were to strictly have digital media based on DMA, we would be missing potential consumers. However, certain zip codes within the Dallas DMA have high concentrations of our Digital Dreamers. Knowing these zip codes, we can make sure they are being served an execution tailored just for them, only in these areas.

75060

0 to 723

723 to 3,333

3,333 to 6,589

6,589 to 11,337

11, 337 to 19,202

Conversely to Digital Dreamers, Value Hunters have a large presence in the Dallas area. In knowing all the zip codes that Value Hunters occupy, we are able to serve digital media executions unique to them and feel confident in having Dallas as one of the top 18 DMAs that we have spot market support in.


19

EXECUTIONS SYNCED RICH MEDIA UNITS Maintaining a consistent link between the “Flavor of Now” and our own executions is a must. These synced rich media units work in tandem to highlight both the “Flavor of Now” menu, and the new My Slice feature. A barrage of pizzas from the new menu cascade across the top 728x90 unit, before falling into the My Slice app in the 300x250 unit and being split amongst a group.

BANNER RICH MEDIA UNIT

600x300

Everyday victories can happen anytime, anywhere. With the flexibility of the new menu, Pizza Hut now has the perfect pizza for any moment, regardless of what’s being celebrated. Through an interactive drop down menu, users will define what they are celebrating, and be given a suggested flavor best suited for their moment. The unit will live exclusively on Pandora.com, which is the perfect partner considering how personal and mood-based music is.


20

EXECUTIONS

SKIN & 728X90 DROPDOWN UNIT This background panel will be served along with this rich media OPA expand unit, highlighting our Pizza Hut Pick ’n Play promotion. Users will be given the option to place their vote directly from ESPN’s website. Participants who are not yet members of the Pizza Hut site will be taken to the registration page to complete the process.

PREROLL & MIDROLL

15 seconds

Our preroll ads will be served through digital video partner YuMe, in a captivate unit that embeds our video in a visually engaging space, while highlighting new product rollouts along the bottom of the unit.


21

SELECTION

MEDIA PARTNERS

RATIONALE “ ?Pac]TaX]V fXcW 4B?= R^\ Ua^\ 0dVdbc 3TRT\QTa fX[[ RP_cdaT cWT ThTb ^U ^da cPaVTc while leveraging our Pizza Hut Pick ‘n Play promotion. “ ?Pac]TabWX_ fX[[ [Pbc cWa^dVW^dc cWT R^[[TVT U^^cQP[[ bTPb^] W^fTeTa fT fX[[ bRP[T d_ spend around high-profile games.

SELECTIONS

SELECTION RATIONALE

RATIONALE “ =Tcf^aZ _Pac]Tab ^UUTa P \^aT TUUXRXT]c dbT ^U QdSVTc Qh dbX]V P Q[T]S ^U targeting capabilities within premium, high-quality content to reach our targets on contextually relevant sites. “ 0[[ _Pac]Tab fTaT RW^bT] SdT c^ cWTXa TgcaT\T VT^VaP_WXRP[ P]S QTWPeX^aP[ targeting capabilities. “ D]STac^]T BPh <TSXP P]S BRaX__b fX[[ QT dbTS c^ bTaeT WXVW X\_PRc cross-screen units that will be served across desktop, smartphone, and tablet. “ Hd<T fX[[ dcX[XiT P 2P_cXePcT eXST^ PS d]Xc cWPc Xb STbXV]TS c^ VaPQ ^da consumers’ attention and drive video views. Leveraging the power of sight, sound, and motion, the Captivate unit will not only air our spot, but bring attention to the new product rollouts and drive consumers to the Pizza Hut site.

“ ?Pac]TaX]V fXcW ?P]S^aP VXeTb db cWT RWP]RT c^ RP_cdaT ^da cPaVTcbÂľ ThTb TPab P]S stomachs. Through an interactive rich media banner, we will play off Pandora’s mood-based context and highlight the Flavor of Right Now. “ ;XbcT]Tab fX[[ QT PQ[T c^ X]_dc cWT PRcXeXch cWThÂľaT T]VPVX]V X] P]S fW^ cWThÂľaT fXcW fWX[T the Flavor of Right Now will generate a suggested pizza. Suggested choices will highlight the new product rollouts from the “Flavor of Nowâ€?.

HOW ESPN.COM MEASURES UP

HOW PANDORA MEASURES UP

1,128

1,899

1,929

5,359

1,204

1,773

1,783

3,269

12.4

14.9

12.6

20.7

13.3

13.9

11.6

12.6

101

109

105

151

141

148

125

134

14,719

22,096

16,167

55,059

24,920

41,406

39,991

73,413

Source: ComScore

DIGITAL DREAMERS

and

RATIONALE

SELECTIONS

Uniques (000)

IN-BETWEENERS

Reach (%)

Source: ComScore

FAMILY NEXT DOOR

VALUE HUNTERS

Index

Total Site Visits (000)

“ 0[^]V fXcW cWT dbPVT ^U ^da ]Tcf^aZ _Pac]Tab P]S SXaTRc bXcT Qdhb _PXaX]V d_ fXcW Cda] P]S GPgXb Pb ^da _a^VaP\\PcXR partners will compliment the splashes of our high-impact units to enable ongoing awareness across desktop and mobile. “ CWTbT _a^VaP\\PcXR _Pac]TabWX_b fX[[ \PgX\XiT aTPRW P]S TUUXRXT]Rh cWa^dVW ATP[ CX\T 1XSSX]V “ FT¾eT RW^bT] c^ dcX[XiT cf^ bX\X[Pa _Pac]Tab c^ caPRZ _TaU^a\P]RT PVPX]bc TPRW ^cWTa cWa^dVW^dc cWT RP\_PXV] P]S optimize as needed.


f l and

DIGITAL DREAMERS

IN-BETWEENERS

Uniques (000)

Reach (%)

22

FAMILY NEXT DOOR

VALUE HUNTERS

Index

Total Site Visits (000) Google AdWords

RATIONALE

We will use a cost-per-click strategy and tag various interests in order to break into our targets’ news feeds. Through automatic real-time bidding, we will spend a maximum bid price of $0.80 per click (suggested bid price). Our targets compose 43.7 million monthly uniques of Facebook’s site traffic, reaching an overall average of 69.6% of our audience. With a CPC strategy, we ensure that we only pay for ad placements that drive our targets to the Pizza Hut site. Additionally, we will not have to pay for any impressions that don’t result in clicks.

HOW FACEBOOK MEASURES UP

HOW TWITTER MEASURES UP

6,294

8,961

10,762

17,725

2,185

2,667

1,461

5,161

69.4

70.2

70.2

68.4

23.3

24.9

17.2

22.6

116

118

118

115

140

102

99

134

167,000

249,806

311,704

483,828

9,379

10,710

8,495

Source: ComScore

Creative Unit

Pricing Model

RATIONALE “ 3dT c^ cWT U[TgXQX[Xch P]S X\\TSXPcT measurability, we will allocate a portion of our budget to Google AdWords, not to exceed a cost per day of $1,500. “ 8] P[[^RPcX]V P _^acX^] ^U ^da QdSVTc to AdWords, we will gain access to non-search sites such as Gmail and YouTube.

22,837 Source: ComScore

Cost

JUL

AUG

SEP

OCT

NOV

DEC

Total Cost

Undertone

Rich Media 728x90 Rich Media 300X250

$11.00

$85,000

$85,000

$85,000

$85,000

$85,000

$85,000

$510,00

Say Media

Rich Media 728x90 Rich Media 300X250

$11.00

$85,000

$85,000

$85,000

$85,000

$85,000

$85,000

$510,000

Scripps

Rich Media 728x90 Rich Media 300X250

$11.00

$85,000

$85,000

$85,000

$85,000

$85,000

$85,000

$510,000

Turn

Rich Media 728x90 Rich Media 300X250

$3.50

$55,000

$55,000

$55,000

$55,000

$55,000

$55,000

$330,000

Xaxis

Rich Media 728x90 Rich Media 300X250

$3.50

$55,000

$55,000

$55,000

$55,000

$55,000

$55,000

$330,000

Background Panel OPA Expand Unit

$10.50

$125,000

$125,000

$125,000

$125,000

$125,000

$125,000

$750,000

300X600 Banner

$10.00

$80,000

$80,000

$80,000

$80,000

$80,000

$80,000

$480,000

:15 Audio Ad

$12.00

$85,000

$85,000

$85,000

$85,000

$85,000

$85,000

$510,000

$14.00

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$600,000

$15.00

$100,000

$100,000

$100,000

$100,000

$100,000

$100,000

$600,000

ESPN.com Pandora.com

YuMe

Capitivate Unit

CPM

CPM

Mobile/ Tablet Preroll

Google AdWords

$0.75

CPC

$2000 max per day

$62,000

$62,000

$60,000

$62,000

$60,000

$62,000

$368,000

YouTube

$1.00

CPC

$2000 max per day

$62,000

$62,000

$60,000

$20,000

$60,000

$62,000

$368,000

Facebook

CPC

$0.80

$65,000

$65,000

$65,000

$65,000

$65,000

$65,000

$390,000

Twitter

CPE

$0.70

$50,000

$50,000

$50,000

$50,000

$50,000

$50,000

$300,000

$1,094,000

$1,094,000

$1,090,000

$1,094,000

$1,090,000

$1,094,000

$6,556,000

TOTAL:


23

JUL

AUG

SEP

OCT

NOV

DEC

Total

Undertone

7,727

7,727

7,727

7,727

7,727

7,727

46,364

Say Media

7,727

7,727

7,727

7,727

7,727

7,727

46,364

Scripps

7,727

7,727

7,727

7,727

7,727

7,727

46,364

Turn

15,714

15,714

15,714

15,714

15,714

15,714

94,286

Xaxis

15,714

15,714

15,714

15,714

15,714

15,714

94,286

11,905

11,905

11,905

11,905

11,905

11,905

71,429

8,000

8,000

8,000

8,000

8,000

8,000

48,000

7,083

7,083

7,083

7,083

7,083

7,083

42,500

7,143

7,143

7,143

7,143

7,143

7,143

42,857

6,667

6,667

6,667

6,667

6,667

6,667

40,000

Google AdWords

82,667

82,667

80,000

82,667

80,000

82,667

490,667

YouTube

62,000

62,000

60,000

62,000

60,000

62,000

368,000

Facebook

81,250

81,250

81,250

81,250

81,250

81,250

487,500

Twitter

71,429

71,429

71,429

71,429

71,429

71,429

428,571

TOTAL:

392,753

392,753

388,087

392,753

388,087

392,753

2,347,186

ESPN.com

Pandora.com

YuMe

MEDIA MIX

$32,966,700

SEARCH $368,000

SOCIAL $690,000

DISPLAY $4,800,000 RADIO $1,176,480

TELEVISION $25,932,220

Television

$25,932,220

79%

$1,176,480

4%

Display

$4,800,000

15%

Search

$368,000

1%

Social

$690,000

2%

Total:

$32,966,700

100%

Radio


24 The aggressive goal of altering the order mix from the current 30% level to 75%23 requires an aggressive budget to match. A mix of traditional and non-traditional media will be required to reach not only those consumers who currently order digitally, but to convert those whose primary ordering choice is over the phone and may not spend as much of their time online.

1

Pizza Hut Annual Sales Avg. Order Amount ($) Annual Pizza Hut Orders Goal % of orders to be placed digitally

$5,700,000,000

“ CWT UXabc bcT_ fPb c^ UXVdaT ^dc W^f \P]h ^aSTab fT f^d[S ]TTS c^ VT]TaPcT SXVXcP[[h c^ aTPRW ^da &$ V^P[

$15

“ C^ S^ b^ fT [^^ZTS Pc ?XiiP 7dc¾b P]]dP[ bP[Tb P]S SXeXSTS Xc Qh P] PeTaPVT RWTRZ P\^d]c c^ VXeT db cWT ]d\QTa ^U P]]dP[ Pizza Hut orders.

380,000,000 75%

Goal Annual Digital Orders

285,000,000

Goal 6 Month Digital Orders

142,500,000

“ <d[cX_[hX]V Qh &$ c^ VXeT db cWT STbXaTS P]]dP[ SXVXcP[ ^aSTab P]S SXeXSX]V Qh cf^ ! hTPa f^d[S VXeT db cWT V^P[ number of digital orders throughout our six-month campaign.

3 18-49 year olds in the US Number of 18-49yo per GRP

2

National GRPs Purchased

Next, we took a look at both our traditional and digital media buys and factored in different Conversion Rates for each to determine how many targeted impressions we would need to convert into our six-month digital transaction goal. Looking at traditional first, we set our reach and frequency goals, and then broke out our national and spot media buys to analyze how many impressions our media buy would generate.

National Impressions

125,961,000 1,259,610

820

Spot Impressions

321,225,742

“ FT c^^Z cWT bP\T P__a^PRW c^ ^da b_^c \PaZTc Qdhb factoring in that our top 18 DMAs represent 31.1% of the total market.

6 “ 8] Z]^fX]V ^da c^cP[ SXVXcP[ ^aSTab ]TTSTS c^ reach our 75% goal, we subtracted the orders anticipated from traditional media buys to find the number of orders needed through our digital media placements. Total 6 Month Digital Orders Needed

“ 7^fTeTa c^ QT R^]bTaePcXeT P]S PRR^d]c U^a cWT UPRc cWPc our buy will reach viewers that are not a part of our segments, we multiplied our traditional impressions by a 2% conversion rate.

Anticipated Orders

391,739

Spot GRPs Purchased

“ =Tgc fT \d[cX_[XTS Qh cWT ]d\QTa ^U ]PcX^]P[ 6A?b purchased to calculate total national impressions.

“ CWa^dVW ^da aTbTPaRW fT U^d]S cWPc P] X]Sdbcah PeTaPVT Conversion Rate is 3%.

Traditional Conversion Rate

39,173,871

# of 18-49yo per spot GRP

1,121,052,900

“ 5^a ^da ]PcX^]P[ RP[Rd[PcX^]b fT UXabc U^d]S ^dc cWT total population of 18-49 year olds in the US24 and then multiplied the total by 1% to determine how many impressions each GRP would generate.

“ =^f Z]^fX]V ^da c^cP[ caPSXcX^]P[ \TSXP X\_aTbbX^]b fT multiplied it by a Conversion Rate to anticipate how many transactions we can expect to come out of our buys.

Total Tradtional Impressions

125,961,000

18-49 year olds in top 18 DMAs

890

5

4

18-49 year olds in the US

1,442,278,642 2%

142,500,000

“ 3dT c^ cWT UPRc cWPc ^da SXVXcP[ cPaVTcX]V Xb b^ _aTRXbT and there will be minimal wasted coverage, we believe we can anticipate a higher than average Conversion Rate. “ FT f^aZTS ^da fPh QPRZfPaSb Ua^\ cWT ^aSTab needed from digital media and applied an aggressive 5% Conversion Rate to find out the number of digital media impressions needed.

Anticipated Orders from Traditional Media

28,845,573

Orders Needed From Digital Media

Orders Needed from Digital Media

113,654,427

Digital Media Conversion Rate Digital Media Impression Needed

28,845,572.84 23 24

2014 NSAC Pizza Hut Case Study Simmons

113,654,427 5% 2,273,088,543


25 Continued

Upon learning the number of impressions needed through our digital media placements, we allocated these impressions across our digital media partners, taking into account how the partners would reach our 4 target segments, how they compliment our promotions, and which ones highlight our digital executions best. Using an objective-and-task method of building our budget, adding in the costs of the other components of our campaign to our media plan, we were able to build our total budget.

41 MILLION DOLLARS

To determine if the “HERE’S TO NOW” campaign achieved its primary advertising, marketing, and sales objectives.

The breakdown of the allocation of our budget is as follows:

PRODUCTION $2,300,000 6% PROMOTIONS $2,800,000 7%

CONTINGENCIES $1,484,700 4%

ADVERTISING Gauge Pizza Hut’s perception as the premier digital brand via perceptional surveys

MARKETING

UX $750,000 2%

Utilize monthly tracking studies and attitudinal studies to measure the benchmark perception versus the goal perception, with special emphasis on the User Experience

USER EXPERIENCE DIGITAL MEDIA $6,556,000 16%

TRADITIONAL MEDIA $27,108,700 66%

We will track… Earned media generated by “FlavorPoint” Increases in the number of customers who register with Pizza Hut on all platforms Dollar volume generated by “My Slice” Number of digital orderers who activate the door-to-door program Number of new Pizza Hut account members

SALES Use monthly tracking studies from Pizza Hut Sales reports


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