Pizza Hut - Case Study Plans Book by Damien Balderrama

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MOMENTS OF NOW

CAMPAIGN

Table of Contents • Executive Summary

• Situation Analysis

• SWOT Analysis

• Consumer Profile

• Research Findings

• Campaign Plan

• Creative Strategy

• Media Plan

• Interactive Strategy

• Public Relations and Special Events Strategy

• Promotions Strategy

• Direct Marketing and Social Media Strategy

• Moments of Now Calendar

• Evaluations and Budget

EXECUTIVE SUMMARY

Who doesn’t love pizza? When you study the pizza industry you quickly find that it equates to roughly 40 billion dollars. Ninety three percent of all Americans order pizza at least once a month, so it is safe to assume that pizza is one of America’s favorite food options. Even better, pizza brings families and friends together whether they are celebrating a birthday or a softball game win or just enjoying their time in each other’s company. Primary and secondary research has found that consumers between the ages of 18-34, commonly known as Millennials, love pizza too. Take a look at Snapchat, Tumblr and Facebook and you’ll see self-postings of friends eating pizza together. Millennials value personal connections and pizza is a way for them to connect to each and share their special moments… instantly. That’s important because this generation demands instant gratification so the use of technology is vital in reaching them with any type of creative messaging. As a result, we have developed an integrated marketing communications (IMC) plan that addresses the specific requests of Pizza Hut with smart and compelling messaging. Taking into account that pizza brings Millennials together, we tapped into their need to share and their desire to be in the moment. Because this campaign effort is limited to six months, we took advantage of the current creative direction and designed our proposal to build upon the same. As a result, we are pleased to introduce the Moments of Now campaign.

This proposal is integrated with all the key elements of an IMC approach. We have developed outstanding promotions to include a Specialty Moments Contest that sends the winner on a tour of Italy, newly designed premiums to be used throughout the campaign, and the introduction of WingStreet Wednesdays. Public Relations activities and events are outstanding with a sponsorship of the White House Kitchen Garden and revived Book It! and World Hunger Relief programs. Direct marketing efforts are highlighted with Pizza Hut “Huts” positioned at college football tailgates during the fall season. Social media activities run the gambit from Snapchat to Twitter events such as National Cheese Pizza Day. Interactive tactics include an all new Pizza Scrabble game, a special Pizza Cam, GPS tracking and our new interactive tool, Slice the Bill, which allows friends to share the cost of their pizza purchase. To top it off, we are proposing a sponsorship of the fall feature film The Hunger Games Mocking Jay Part 2. A strategic media plan has been designed to deliver our message straight to our Millennial consumers. The use of traditional and nontraditional media types and vehicles are clearly identified and supported with industry statistics. In addition to national coverage, we have added spot advertising to the Top Ten Millennial markets, as identified by Nielsen Research. We hope you enjoy reading the Moments of Now proposal. When you finish, give us a call and we’ll meet you for a terrific slice of Pizza Hut pizza!

SITUATION ANALYSIS Pizza Hut’s Background

Pizza Hut, a subsidiary of Yum! Brands, is the largest pizza restaurant chain in the world with 7,800 restaurants based in the United States. Approximately six percent of the restaurants are company-operated restaurants and 94 percent are franchised. It also is the only national pizza restaurant in America that offers dine-in service. Pizza Hut began its journey in 1958, some 56 years ago, in Wichita, Kansas. Two ambitious young entrepreneurs, Frank and Dan Carney, borrowed $600 from their mother to purchase pre-owned restaurant equipment and to rent a small building with 25 seats. It didn’t take long before the idea of a ‘pizza parlor’ took hold and the Pizza Hut red roof was on its way to becoming an iconic American brand with signature products. Pizza Hut operates in the delivery, carryout and casual dining segments and features menu items that use high quality ingredients as well as unique recipes and special seasonings. Pizza Hut has made its mark with proprietary menu items from its original pan pizza and its cheese-stuffed crust to its pasta dishes and original buffalo chicken wings under the brand WingStreet. In 2013, Pizza Hut opened 116 new restaurants, representing three consecutive years of positive net-unit growth. However, according to former Yum! CEO, David Novack, Pizza Hut “lagged behind the competition” with respect to value. As a result, plans to advertise WingStreet will be amped up along with significant menu changes as seen in the November 2014 launch of the Flavor of Now effort. In 2014, Pizza Hut, which is headquartered in Plano, Texas, was named the Harris Poll Equitrend® Pizza Brand of the Year and received the top score in Customer Satisfaction among limited-service restaurant chains from the American Customer Satisfaction Index® (ACSI). Key executives include David Gibbs, Chief Executive Officer, Carrie Walsh, Chief Marketing Officer, and Joe Kim, Chief Operations Officer. In early February of this year, Yahoo! Finance reported that same-store sales were down three percent in the U.S. This is in light of the new Flavor of Now menu. Yum! Brands new CEO, Greg Creed is reported to be somewhat pleased that the new menu is reaching the Millennial consumer but concerned that is not appealing to the

Pizza Hut, Wichita, KS everyday customer. Furthermore, Yahoo! Finance reports that another issue is that customers feel that Domino‘s and Papa John’s deliver better quality pizza for the dollar. According to The Motley Fool, Pizza Hut enjoyed a record $10 million in sales by halftime during this year’s Super Bowl game on CBS. This success was credited to the new streamlined digital ordering online. Fresh Business Thinking reported in February of this year that Pizza Hut felt a huge drop in like-for-like sales from the last quarter in 2013 to the last quarter in 2014. In December 2013, Pizza Hut reported a fourth-quarter profit of $321 million. One year later, they reported a loss of $86 million. Despite the decrease, Pizza Hut is by far the category leader with 17.1 percent share of the pizza segment and 4.2 percent of the U.S. system wide sales.

System wide sales and the Competition Key competitors specific to the pizza industry scored as follows with respect to 2013 revenues from system wide sales. According to the Nation’s Restaurant News and Technomic Domino’s is the number two player in the category with 10.5 percent market share and a 3.1 percent increase in sales to $3.77 billion. In third place is Little Caesars at $3.1 billion and Papa John’s is in fourth place at $2.5 billion. Additional criteria for comparison between Pizza Hut, Domino’s, Little Caesars and Papa John’s are outlined in the accompanying chart. In addition to direct competition from the pizza industry, additional competition comes from key players in the casual dining restaurant segment. These restaurants include Applebee’s with $4.5 billion, Olive Garden with $3.67 billion, Chili’s Grill and Bar with $3.55 billion, Buffalo

Wild Wings with $2.78 billion and Outback Steakhouse with $2.45 billion. Likewise, there was growing competition from emerging food industry segments in 2013 to include “fast casual” restaurants such as Panera Bread which scored $4.03 billion, Chipotle which generated $3.19 billion, and Five Guys with $1.14 billion.

Pizza Hut’s Product Chief Marketing Officer, Carrie Walsh recently said Pizza Hut is responding to research that has found that consumers are increasingly seeking food perceived as higher quality and more gourmet with unconventional flavor combinations. Likewise, a 2014 Consumer Trend Report found that in addition to heightened flavors, consumers are more oriented towards health consciousness. As a result of this extended research, the Flavor of Now menu was introduced and features more Millennial-friendly flavors, including garlic-parmesan pizzas (a five-cheese and a chicken-bacon-tomato variety), three barbecue pizzas, 10 new crust flavors, drizzle sauces, five new toppings and new ‘skinny slice pizzas’ which give Pizza Hut a refreshed and organic appeal. In addition, Pizza Hut has introduced a gluten-free pizza, making them the only pizza restaurant to date to do so. The new menu comes as chain restaurants scramble to appeal to Millennials and adapt to changing consumer preferences in general. Research on Millennials generally finds that they favor fast-casual chains over fastfood chains such as McDonald’s, Wendy’s and Jack-in-theBox and that they like convenience, premium ingredients, choice and healthier offerings.

Mission Statement

To take pride in making the perfect pizza, provide courteous and helpful service at all times and strive to have every customer say that they plan to be back.

Locations Began U.S. Ranking (based on sales) Delivery? Online Ordering? Pick-Up/Carry Out Dine In

7,800 1958 1st Yes Yes Yes Yes

To be the leader in delivering offpremise pizza convenience to consumers around the world.

4,986+ 1967 2nd Yes Yes Yes no

To be the best take-home pizza chain by exceeding customer expectations with extraordinary value, great tasting products and outstanding people.

To create superior brand loyalty through authentic, superior-quality products, legendary customer service and exceptional community service.

3,673 1959 3rd No No Yes Very limited locations

3,673 1959 3rd Yes Yes Yes Very limited locations In 2006 became Official Pizza at Six Flags, official pizza of the NFL since 2012,sponsors of collegiate football bowl in 2010.

2013 March Madness; official pizza of NASCAR; 2015 Major League Baseball.

Sponsorships

Use of Technology

Online ordering through website and mobile devices, established website.

Introduced online and mobile ordering in 2007; introduced voice ordering 2014 with Dom; popular online tracker began in 2008.

Twitter, YouTube, online ordering through established website.

Introduced online ordering in 2002 through established website

Memorable Advertising

Current Flavor of Now ad campaign; Putt Putt to Pizza Hut in 1965; celebrity spokersons from Ringo Starr to the Muppets to Donald Trump.

Brutally Honest ad campaign - 2010.

Original Pizza, Pizza - 1980 campaign.

Better Ingredients. Better Pizza. Papa John's. Founder John Schnatter appears as official spokesperson. Peyton Manning in current commercials.

New Flavor of Now menu, classic pizzas, buffalo chicken wings, pasta dishes, breadsticks, chocolate chip pizza cookie, sandwiches, salad bar for dine-in.

Traditional pizza plus specialty chicken, sandwiches and pasta dishes 85% of the items on Domino's menu are new since 2008.

Known for $5 Hot & Ready Classic pizza and the $8 Deep! Deep! Dish pizza; just introduced Deep! Deep! Dish pizza with 3 yards of bacon wrapped around the crust; wings and cheese breadsticks available

Pizzas, sides and desserts to include garlic butter dipping suace with every pizza; sides include breadsticks, wings and salad

Social Media

22,225,000+ Facebook friends 1,130,000+ Twitter followers 150,000 Instagran followers

10,585,000+ Facebook friends 759,000 Twitter followers 99,600 Instagram followers

2,071,000 Facebook friends 73,200 Twitter followers 3,751 Instragram followers

2,913,000+ Facebook friends 280,000 Twitter followers 6,800 Instagram followers

Philanthropic Activities

Participate in World Food Programme as part of Yum! Brands since 2007; initiated Book It! program in 1984; relationship with Childrenâ&#x20AC;&#x2122;s Medical Center in Dallas.

Associated with St. Jude's Children's Research Hospital

Veterans programs, Ilitch Charities, and Little Caesarâ&#x20AC;&#x2122;s Love Kitchen

Toys for Tots with the U.S. Marines

Many major chains have been marketing food as more artisan and handmade. Kelly Weikel, senior consumerresearch manager at Technomic, reports that “consumers are interested in the idea of ‘real’ and ‘unprocessed,’ and if the crust looks more artisan it could be connecting on those levels.” There is no off-season for pizza but some nights of the year are more popular for pizza sales. The first big traffic surge of pizza happens during the Super Bowl, the second is on New Year’s Eve; the winter seems to attract more visitors than the hot days of summer. However, the pizza market is mostly driven by weekends (Friday – Sunday) because families and large group of friends tend to get together and pizza serves as a conduit for such gatherings. Pizza Hut’s prices vary, depending mostly on sizes and toppings. From a personal size to large pizzas, the price range is between $5.00 and $20.00. Prices are not static as the order varies between customers. The company also offers “deals” that affect the price of some items.

Advertising Deutsch, L.A., has become Pizza Hut’s third lead creative agency in the past year and a half. Deutsch, who already leads the creative responsibilities for Yum’s Taco Bell chain, is responsible for the Flavor of Now advertising campaign. The campaign has given Pizza Hut a new look, from revamping the company’s red roof logo and delivery boxes to a contemporary relaxed look for their uniformed employees. The new logo suggests a blank pizza pie covered in sauce, waiting for a customer’s personal choices in toppings. Even with the change, the restaurant chain still managed to incorporate their iconic slanted roof symbol. Over the years, Pizza Hut has used a number of high profile celebrities such as Jessica Simpson and The Muppets to promote their pizza products. More recently these individuals have included country music superstar Blake Shelton who introduced the new barbecue pizzas, professional surfer Kolohe Andino who promoted the new VISA payment platform, and NFL player Tony Romo and coach Rex Ryan as part of the 2014 post-Super Bowl programming. Pizza Hut works with MRY on their social media strategy and currently has 22 million likes on Facebook, 1.13 million followers on Twitter and 150,000 followers on Instagram. It also works with Omnicom’s TracyLocke on its digital strategy. According to marketing director Carrie Walsh, digital-ad buys and mobile are their current priorities. Forty percent of orders are placed by means other than

The Muppets

Blake Shelton

phone calls. About half the digital orders have been from mobile devices through the Pizza Hut app. Working with Pizza Hut over the past three years, Chaotic Moon Studio created a series of mobile apps that feature an interactive menu that allows consumers to customize their pizza. Likewise, in 2014 Pizza Hut and Hulu inked a deal that allows customers to order from within an ad rather than jump to a separate web page. Media planning and buying are handled by Optimedia. Pizza Hut spent $247.4 million on U.S. measured media in 2013, according to Kantar Media. In 2012, the company spent $239.2 million on measured media, and in 2011 they spent $220.4 million.

Interactivity The Pizza Hut website provides the consumer with the opportunity to customize a pizza or choose one from the existing menu. In order to create an account, the website asks for minimal personal information such as first and last name, phone number and email address. If the consumer decides to create a pizza, the process consists of six easy steps to include a choice of crusts, toppings, sauces, cheese, meats and veggies. Payment options include credit cards, gift cards/e-gift cards, and debit cards. A summary of the order to include the final pricing appears and also is emailed to the consumer along with an estimated time of arrival if the delivery option is selected.

Pizza Hut’s free ordering app is available for download on iPhones, iPads, Androids, Windows phones and Xbox 360. With the app the customer can find local deals and the Pizza Hut closes t to their location. The mobile app is similar to the website, it displays the full menu and provides the same high quality images of the ingredients when building a pizza. The main difference between the website and the mobile app is that the customer is able to place an order as a guest, without the need of creating an account.

Philanthropic Activities Pizza Hut is also recognized for being a brand that cares. As part of the Yum! Brands family, Pizza Hut has continued to participate in the World Hunger Food Programme. Through in-store donations Pizza Hut has helped raise more than $12 million since the program was launched in 2007. In addition, Pizza Hut continues to steer its Book It! program which began in 1984. This program, which is one of the longest-running, corporate-supported children’s literacy programs in America, was created with the purpose of motivating children to read by rewarding their reading accomplishments with award certificates and pizza. Book It! runs every year from October through March and currently reaches over 14 million students.

SWOT ANALYSIS

STRENGHTS

• Overall sales down three percent.

• Is the largest pizza chain restaurant in the world.

Customers feelathat Domino’s •• Does not have high-profile and Papa John’s deliveractivity, better sponsorship of a national quality pizza for the dollar. charity or sporting event.

• Received a Customer Satisfaction Award and Pizza Brand of the Year in 2013.

• New menu is reaching the Millennial consumer but not appealing to the everyday customer.

• Has a new look with its Flavor of Now menu, logo, packaging, and employee uniforms as well as its revamped website and mobile app.

• Although their two philanthropic associations are worthy, they lack general customer and public awareness.

• Despite the sales decrease, Pizza Hut is the category leader with 17.1 percent share of the pizza segment and 4.2 percent of the U.S. system wide sales; and has a strong social media presence, leading pizza competitors in “likes”, “friends” and “followers”.

OPPORTUNITIES

WEAKNESSES

• Only half of Pizza Hut’s digital orders are made from mobile devices.

• Competition for consumer’s business and brand loyalty not only comes from Domino’s, Little Caesars and Papa John’s, but from the new fast casual and casual dining restaurants such Panera Bread, Chipotle, and Applebee’s.

• Millennial consumers support cause associated companies. • Pizza is season-less and serves as a conduit for family gatherings and friend gettogethers.

• Consumers are connecting to menus perceived as higher quality, healthy and more organic with artisan flavor combinations and fresh ingredients.

THREATS

CONSUMER PROFILE Understanding the Millennial Generation To better understand the Millennial generation, secondary research was used to include information from The Boston Consulting Group (BCG), along with Barkley and Service Management Group, which surveyed 4,000 Millennials (ages 16 to 34). Additional information was secured from the Pew Research Center and their survey of over 2,000 Millennials.

Millennials and technology Well documented across a wealth of research reports, Millennials are technologically savvy and often referred to as “digital natives,” meaning that the majority have grown up with technology and social media and use these tools as essential parts of their lives and work. Millennials are far more likely to be among the first to try a new technology and/or application. For example, 83 percent of those surveyed by the Pew Research Center reported placing their cell phones on or right next to where they are sleeping. Seventy-five percent of Millennials have created a profile on a social networking site. They say that technology makes life easier and brings family and friends closer together. They also tend to own multiple devices, using MP3 players (72%), gaming platforms (67%), and smartphones (59%). As a result, U.S. Millennials are more likely to multitask while online, constantly moving across many of these same platforms. Millennials are more likely to use the Internet as a platform to broadcast their thoughts and experiences and to contribute user-generated content. They are far more engaged in activities such as rating products and services (60%) and uploading videos, images, and blog entries to the Web (60%).

Millennials and the media Growing up with technology, it is no surprise that mobile phones top the media preferences for Millennials with 94 percent of Millennials having used mobile phones in the past seven days. Surprisingly, though, television comes in second with 93 percent and radio third with 83 percent. Although they report watching television, only 26 percent watch TV for 20 hours or more per week, and when they do watch, they’re more likely to do so on their

computers through services such as Hulu and Netflix (42 percent). Interestingly, when surveyed about where they get their news, Millennials reported “television” as their primary source (65 percent) with the Internet as their second source, noting Yahoo! as their first choice for newsgathering. Close to 60 percent (58%) of Millennials agree that magazines help them learn about what’s “in,” especially with clothing, cars, and music. Following word of mouth advertising, television is the second most common reason that a Millennial will visit a website. And lastly, magazine and newspaper ads are more likely to capture the attention of 64 percent of Millennials than an Internet ad.

Generational attitudes and behaviors Beyond Millennials’ widely recognized affinity for technology, research has identified unique behaviors and attitudes that these individuals are likely to bring to their next life stages. “I’m a social creature—both online and offline.”

Millennials value personal connections, and they use technology, specifically social media, to connect with a greater number of people, more frequently, and in real time. As a result, they have large personal networks, 46 percent of Millennials have 200 or more “friends” on Facebook. Millennials feel that they are missing out when they’re not up to date with social-media chatter, and they feel validated when their ‘network’ “likes” their posts. This desire for shared experiences also extends offline. Millennials are more likely to engage in group activities, especially with people outside their immediate family. They dine, shop, and travel with friends and coworkers, to whom they look for support that they’ve made the right decisions.

MILLENIALS - TOP 10 MARKETS (BY PERCENT/INDEX FOR CONCENTRATION)

1. Austin, TX (16%) 2. Salt Lake City, UT (15%) 3. San Diego, CA (15%) 4. Los Angeles, CA (14%) 5. Denver, CO (14%) 6. Washington, DC (14%) 7. Houston, TX (14%) 8. Las Vegas, NV (14%) 9.San Francisco, CA (14%) 10. Dallas-Ft. Worth, TX (14%)

“I want it fast, and I want it now.”

U.S. Millennials are all about instant gratification. They put a premium on speed, ease, efficiency, and convenience in all their transactions. For example, Millennials are always in a hurry and are found to shop for groceries at convenience stores twice as much as non-Millennials. When visiting restaurants, they value getting through a line quickly more than the “friendly service”. Of Millennials who make direct donations, almost half donate through their mobile devices because it is faster. “I trust my friends more than ‘corporate mouthpieces’.”

For Millennials, the definition of “expert” has shifted from someone with professional or academic credentials to anyone with firsthand experience, such as a peer or close friend. When it comes to making purchasing decisions, they seek multiple sources of information, primarily from their friends. They explore brands on social networks and will use a mobile device to read user reviews from their peer group or online forums to research products while shopping. As we know, social media has allowed anyone to become an expert. As a result, messages that resonate with the Millennials, despite the credibility of the ‘expert’, will quickly spread among this group via social networking. “I can make the world a better place.”

This generation believes that working for causes is an integral part of life, and they are drawn to big issues. This attitude along with their limited income has resulted in Millennials encouraging others to participate in causerelated activities and fundraising events, and for larger entities to ‘change the world’. They support companies that are aligned to national and global social issues and will reward those companies with their purchases and their loyalty. Source: Nielsen Pop-Facts, 2013

Hip-Ennials

PIZZA HUT CONSUMER

These individuals are optimistic but cautious, and believe they can have a positive impact on the world. They are the greatest users of social media; most posts are centered on themselves rather than other people, news, or brands. They have below average employment because many are students or homemakers. Forty-three percent of Hip-Ennials say texting is as meaningful as an actual conversation with someone over the phone. Forty-one percent of Hip-Ennials have made a purchase using their Smartphone. According to Jen Handley’s article, “Marketing to Millennials”, Hip-Ennials are avid sharers who respond to promotions, hashtags, giveaways, and sweepstakes

This campaign is targeting Millennial consumers between the ages of 18-34 who are both current Pizza Hut consumers and potentially new consumers to Pizza Hut who are not familiar with online ordering. We have sub grouped this target into three segments,the Hip-Ennials, Millennial Moms, and Clas-Ennials. Our research finds that these three subgroups represent the majority of Millennials. Primary research findings are also included in this profile.

Demographics

Millennial Moms

According to the U.S. Census, the 18-34 year olds are represented by 71,736,036 individuals, which is 23 percent of the U.S. population. With respect to the three sub-groups, Hip-Ennials make up 29 percent of the larger Millennial designation, followed by Millennial Moms at 22 percent and Clas-Ennials at 16 percent. Millennials are one of the most ethnically diverse in population compared to other generations; statistics show 61 percent white, 19 percent Hispanic, 14 percent African American, five percent Asian and one percent “other”. Sixty-five percent are U.S. born and are reported to be more bilingual than other generations. Twenty-one percent of Millennials are married, four percent divorced and 75 percent single, Millennials make up 20 percent of same-sex couples. A reason why today’s youth are less likely to be married relates to their desire to first succeed financially. There are 10.8 million U.S. households with adults 25-34 who have children. Statistics show 63 percent graduated or plan to graduate from college. In fact, many postgraduates struggle with finding jobs and have high student loan debt. Because of their desire to succeed financially, Millennials have a combined spending power of over $2.45 trillion. The average household income for Millennials is $58,620. Although Millennials reside in areas across the United States, a significant number appear in live in the western portion of the U.S. According to Nielsen Research, the top 10 markets for Millennials are identified in the adjacent chart.

Millennial Moms are highly influential and spend a lot of their free time online. Not only do they enjoy reading others’ opinions, they enjoy offering their own. According to the Newsroom article “Millennial Moms: The Connected Demographic”, Millennial Moms are highly sought after for their advice and opinions on purchasing decisions. Ninety percent share information on several key topics such as retail stores, apparel, and food and drink. According to “Digital Women Influencers: Millennial Moms”, the number of times Millennial Moms like or recommend products or services online is 10.4 in an average month.

Clas-Ennials Clas-Ennials are somewhat traditional, hardworking and frugal. Their main focus is on their families and their work goals. They seek comfort and familiarity over excitement or change, and they tend to be somewhat conservative, both in their spending and their lifestyle. They value comfort and success first and foremost. They are busy, busy, busy so they tend to buy anything they can justify in the name of efficiency.

research findings Our Research Plan and Results

Extensive primary and secondary research was developed for this campaign proposal. The purpose of our data collection was: • To analyze and accurately define the three key subgroups of the Millennial generation; • To identify the most effective media options needed to reach the Millennial consumer; • To better understand our consumer’s attitudes towards online ordering; • To better understand our consumer’s perceptions of Pizza Hut; and • To identify how our consumer uses the Internet with respect to social media.

Primary Research Participants

Our national survey results represent 539 responses from participants in the target audience, 46 percent were 18-24 years old, 39 percent were 25-34 years old and eight percent were between 35-44 years of age. Our survey was answered by 66 percent females and 33 percent males, where 59 percent were single without children, five percent single with children and 21 percent were married with children. Our statistics show that 49 percent of our participants are employed full time and 15 percent are students. Information was collected from across the U.S. to include California, Colorado, Florida, Georgia, Illinois, New York, Oklahoma, Texas and Washington, D.C. Our survey was created with the Qualtrics survey software. Seven focus groups and 45 one-on-one interviews were conducted in an effort to gain a deeper understanding of our consumer’s preferences for pizza consumption, media usage and online activity. Of those interviewed 54 percent were Hip-Ennials with 41 percent female and 58 percent male. Twenty-five percent were Clas-Ennials of which 37 percent were females and 62 percent were males. Nineteen percent of our interviewees were female Millennial Moms.

Findings

Pizza Consumption

• 78% of respondents said that taste was most important when it comes to pizza selection, followed by price with 41% and location with 25%. • Respondents primarily order pizza once a month, followed

by fewer than three times a year. • In the last month, 68% of respondents have ordered pizza from home followed by 24% who have ordered at work. • Wings and breadsticks are the top items to purchase along with pizza. • 58% are more likely to order pizza on Fridays, 47% prefer Saturday and 35% prefer Sundays. • Millennial Moms said that price is their first consideration when ordering pizza with taste as second. Hip-Ennials said the reverse, taste is more important to them than price.

Advertising and Media Usage

• 96% use their cell phones, laptops and tablets to access the Internet; 30% access between 8 p.m. to midnight, 29% access between noon and 5 p.m., and 14% before noon. • 32% spend 1-4 hours daily using the Internet; 88% are on social networks; 83% check email; 59% check the news; 33% watch movies and TV shows. • Facebook, Instagram, Snapchat, Pinterest, and Twitter are their favorite social media sites. • When on the Internet, 56% have visited a food related website to see menus, check nutritional content, find a restaurant location and/or download coupons and promotions. • 84% prefer billboard advertising over social media advertising for product advertising. • 51% have cable television subscriptions, 14% watch over the air broadcast television and 22% have a satellite broadcast subscription. • When watching television, 69% favor movies, 47% favor dramatic series, 39% watch documentaries, 39% look at situation comedies and 26% watch news programs. • Millennial Moms generally watch TV from 9 p.m. to 11 p.m., but they do like sitcoms like Big Bang Theory. Hip-Ennials and Clas-Ennials watch The Walking Dead, American Horror Story, NCIS and real life criminal shows. • The Hip-Ennials are more likely to multi-task when watching television, checking their social media networks on their smartphones, laptops and tablets. • A majority of participants actively listen to local radio during the morning drive daypart. • Hip-Ennials listen to online radio, but skip the ads or subscribe to remove commercials. • Only Millennial Moms are reading print newspapers, and only a small number of Hip-Ennials and Clas-Ennials read online newspapers. • A majority of focus group participants said that they do not click on advertisements in their social media pages. When asked what would motivate them to do so, they said

they might consider doing so if a worthwhile promotion was included.

Online Ordering

• 66% of our respondents know that they can order pizza with the Pizza Hut app. • Most participants were unaware that online ordering was available through Hulu and Xbox. • 23% strongly agree that they are likely to order pizza online, for delivery. • 24% agree with the idea of ordering pizza online for pickup. • 28% said that they are willing to order pizza through the Pizza Hut mobile app, 9% strongly disagreed, and the remainder were neutral. • Focus groups and personal interviews found that Millennials, in general, prefer using the telephone to order pizza as it is less time consuming, lessens miscommunication, and gives them an opportunity to ask questions. • Millennial Moms like the Pizza Hut app because of the visuals and the opportunity to try different types of pizzas. The Clas-Ennials prefer to order by phone but would consider ordering online with a special promotion or special pricing discount. Hip-Ennials said that they use mobile apps when they have the time to do so.

Pizza Hut Perceptions Findings

• Most of the participants consider Pizza Hut a tradition in American culture. • Clas-Ennials and Millennials Moms associated Pizza Hut with good moments in life. • Hip-Ennials consider Pizza Hut pizza a high quality pizza for older generations; Millennial Moms perceive Pizza Hut pizza as a quality, good-tasting but somewhat expensive pizza. • Most of our participants are not aware of the Flavor of Now campaign. • When shown the new Flavor of Now television commercial, Hip-Ennials said they wanted to see more of the new pizzas and the new ingredients.

Miscellaneous Findings

• Coupons and price discounts are key motivations to buy pizza through online ordering. Some respondents prefer instant access to coupons and promotions on their cellphones. • A key competitor to Pizza Hut is local pizzerias at 24% preference. Another 17 percent prefer Domino’s,14% chose Papa John’s and 13% like Little Caesars.

Campaign plan Challenge from the Pizza Hut client Pizza Hut wants to address mobile conversion efforts with a new comprehensive national advertising campaign urging customers to use the current technologies to order their pizza. The campaign will be implemented in 2015 between July 1 and December 31. The goal of the campaign is to increase the share of pizza orders that are done online by 32 percent by the end of 2015. The campaign will be directed to pizza consumers who do not currently order pizza online while increasing loyalty with those Pizza Hut customers who already order online. The campaign should address the following three overall objectives: 1. Position Pizza Hut as the top choice for customers who order pizza digitally, 2. Provide the greatest digital ordering experience in the category, and 3. Reach the target of 75 percent of all orders done online/ mobile by the end of 2015.

Marketing Trends for 2015 There are several important marketing trends for 2015, according to a variety of sources. One of the most important trends this year is the focus on revenue growth with return on investment (ROI) as the key metric. Businesses are more interested in strategies that produce measurable results instead of simply creating awareness or good feelings in their customers. Another big trend is social media advertising which allows marketers to target a specific audience and achieve a timeliness not found in any other media. The most important thing is not to find the newest social media to advertise in but rather to find the social networks in which customers are already active and want to engage with brands. Websites like Facebook and Twitter offer immediate feedback, increased positive feelings toward the brand. (Parker, 2015) A third trend in marketing strategies is the use of mobile. Today’s consumer uses their smartphone to look for information and entertainment. As a result, marketers must develop responsive websites and emails, engaging them with text messages and using push-messaging capabilities. In the State of Marketing and Marketing Leadership report,

created by Salesforce Marketing Cloud, businesses acknowledge email is a big producer of ROI at 92 percent and helps facilitate one-to-one customer exchange. (Parker, 2015) Finally, marketers need to create messages that reflect authenticity and engagement among consumers and their brands. Brands need to get more emotional and create authentic stories and experiences that customers can relate to in order to get closer to the brands they like. It’s important that companies and their respective brands differentiate themselves and stand out to avoid being lost in the crowd. (Passikoff, 2014)

Campaign Objectives and Strategy •Maintain Pizza Hut’s leading position in the marketplace; •Take advantage of everything new at Pizza Hut and extend its branding activities to a new campaign effort; •Create a campaign strategy that addresses Pizza Hut’s quality as well as its innovation; •Increase the number of digital and online orders made at Pizza Hut; and •Develop an integrated marketing communications plan that utilizes general advertising, public relations, promotions, interactivity and direct marketing in such a way as to reposition Pizza Hut in the consumer’s mind and the general marketplace.

Campaign’s Positioning Statement For Millennial consumers between the ages of 18 to 34 who are technologically savvy and driven by instant gratification, the Pizza Hut online and mobile ordering devices are valuable tools for ordering the traditional and new Pizza Hut menu selections because they allow Millennials to share their special moments and their pizza.

The Big Idea We take our cue from Pizza Hut’s current Flavor of Now efforts with the Moments of Now campaign. Millennials are very focused on what is happening ‘Right Now’… in their careers, in their relationships, and in their environment. If a new restaurant opens and it’s the ‘hot spot’, then they

are there. If a new music artist hits the chart, then they are listening. If a new fashion style headlines the runways, then they want it. They are both trendsetters and trend followers. Wherever they are and whatever they are doing, they want to share it… with their long-time friends, with their immediate families, with their work colleagues and with individuals they have just met. These moments can be as simple as a nice dinner out with friends or as momentous as a baby announcement. They take pictures, they record video and they use social media outlets as a channel for sharing all of their events and their moments with anyone who is a willing participant. They value their peers and their family’s recommendations and will listen to a total stranger’s online review over a traditional commercial advertisement. They walk and talk technology and smartphones and apps are no nonsense tools that not only make their life easier but more interesting. To reach this consumer, we have to reach them on their own terms. It’s the only way we can truly connect with them. And to connect with them effectively we must use their lives as a mirror. The Moments of Now campaign is designed to feature Millennials and their special moments and will show how Pizza Hut’s online and app ordering is a key instrument in those celebrations.

Creative Objectives • Display the advantages and convenience of online and mobile application ordering; • Increase awareness of Pizza Hut’s new image and custom-made pizzas through a humorous approach; • Keep our consumers engaged with the Moments of Now campaign that will feature social media functions in real life situations; and • Deliver clear and memorable moments that will serve as a connection between the consumer, the brand and the online and digital services.

creative strategy We will accomplish these objectives by developing a creative approach that resonates with our three consumer subgroups, the Hip-Ennials, Millennial Moms and ClasEnnials. Our primary research revealed that our Millennial consumers are motivated by the same idea of sharing moments, whether the moment is simple such as a first date, or emotional like a son’s graduation. We understand that moments are what motivate our consumer to share and take action through all the available electronic tools they have in their hands. In addition to the use of universal experiences in our creative strategy, our primary research found that our consumer group prefers humorous advertising that incorporates daily life situations. Therefore, we will generate a series of light-hearted scenarios that can be used in both traditional and nontraditional media types. The Millennial consumer will identify with the situations that represent their “Moments of Now.” We believe that pizza takes an important role in the celebration of these moments. Pizza Hut online and mobile application ordering provides fast and reliable service that allows consumers the opportunity to enjoy all of these special moments in their lives. Our campaign slogan, Pizza Hut… Right Here, Right Now… addresses our consumer’s need for instant gratifications as well as tying into the overall Moments of Now theme.

Print Media design we use Futura Book. In addition to the new Flavor of Now color gamma, we have incorporated green (Pantone+ CMYK Coated 158-7 C) in order to improve recognition of the new healthy options that Flavor of Now is currently featuring. Since the original logo included the yellow gold (Pantone+ CMYK Coated 130 C) color we wanted to include it into some of our graphics as a secondary color for differentiation. This yellow gold color is found on graphics used in direct response, The Hunger Games promotion and the WingStreet ads.

Billboards The outdoor bulletins (14´x 48´) will be used to display and promote the hash tag “Right Here, Right Now” and to show the convenience of online and mobile application ordering. Outdoor billboards will have extensions to accommodate the graphics. The boards will be produced in four colors and feature a dominant photograph of an ordering device with a pizza positioned inside the device. The message is clean and simple enough to be seen at a distance and speed. Production Cost: No Charge Digital

Billboard Advertising

Mandatories • Pizza Hut logo • Slogan “Pizza Hut, Right Here, Right Now” • Hashtag #RightHereRightNow • Website address pizzahut.com

Executions

All visual executions with graphic elements such as different pizzas from the new menu and typography designs will be used to appeal to our Millennial consumers. Copy will be limited to the slogan “Pizza Hut…Right Here, Right Now,” along with the hash tag #RightHereRightNow. The new Pizza Hut logo will be incorporated into the design to connect the new menu with our Moments of Now campaign. The type family used in all print designs is Bebas Neue Regular and Bebas Neue Book. For our hash tag, long copy, explanations and other necessary elements for the

Radio

electronic Media Magazines

Television Commercials

Our full page, four-color advertisements will include images with portable devices like tablets and cell phones. Our hashtag and slogan will be positioned inside the devices, along with pizza photographs from the Flavor of Now menu. To have a clean and concise message the call to action, ¨Download the app, Order online¨, is positioned as copy inside a green ribbon. For the Game Informer magazine, a message of convenience in using Xbox as an option to order pizza from Pizza Hut will be used along with the mandatories.

A series of nine (9) standard 30-second commercials will be produced and feature distinct real-life scenarios. Each TV spot will be developed and produced to appeal to each of the Millennial subgroups. This sliceof-life approach will emphasize h ow pizza from Pizza Hut can help celebrate special moments among family, friends, lovers and peers. “Online life” will complement real life and commonly used emoticons will be incorporated to tap into the social media aspect of our consumer’s lives.

Production Cost: No Charge Digital

Production Cost: $350,000 x 9 = $3,150,000

MS: Colleagues enter an elevator. Captivated with one another, holographic hearts pop-up over their head.

LS: Angered boss points to a holographic clock indicating guy’s tardiness.

A light bulb pops-up over guy’s head and he Pizza Hut’s current price promotion appears orders pizza for his crush. and shows online ordering and its benefits.

TV Spot: 30

Game Informer - Magazine Ad

Pizza Hut’s logo appears with the hashtag #RighHereRightNow. Call to action appears to download the app and website.

Several 30-second radio spots will be scripted and produced for broadcast. Radio allows us the opportunity to extend our creative message to a consumer on the go and will help develop a personal connection with our consumers. Radio copy will reflect our consumer’s daily life activities and capture the convenience of the Pizza Hut application. Production Costs: $2,000 x 6 = $12,000

Cinema advertising

Cinema advertising will feature one of our television spots. In addition, during the month of November, a special commercial will be produced as part of our Hunger Games movie promotion. Production Cost: $350,000

POV: Annoyed with boss, guy blocks his boss as done on social media.

LS: Girl is disappointed that she forgot her lunch. A dislike icon appeards next to girl. Guy notices girl’s sad face.

The love-birds enjoy their pizza. Guy is feeling giddy and decides to unblock his boss.

The two take a selfie. For revenge, the boss photo bombs the picture.

Online Banner Ads

Leaderboard and rectangle advertisements have been designed to complement the overall creative direction of the campaign creative. These online ads also will display various Pizza Hut specialty pizzas with links directed to the main website. Production Cost: No Charge Digital

OUT-OF-HOME Mall Advertising

Three hundred 8â&#x20AC;&#x2122; x 20â&#x20AC;&#x2122; interior banners will be used in malls to display creative images of Pizza Hut in the Top Ten Millennial Markets, adding an artistic rendition of the Pizza Hut products. Graphics found on mall banners include the prices of the Flavor of Now menu working along with the Moments of Now original mandatories. Production Cost: $250 x 300 = $75,000

Stadium Advertising

Stadium advertising will feature one of our television commercials for the various stadium Jumbotrons along with one of our magazine ads to be used in the home game program book. A digital version of our billboard will be incorporated in the rotating stadium billboards. Final Production Costs = 3,587,000

Mall Advertising

Online Banner Ads

MEDIA PLAN Overview Millennial consumers tend to want things “now”, therefore advertising to them requires reaching them at all times and throughout different media. To deliver our creative message and reach our consumer market effectively, a balanced mix of traditional and nontraditional media will be implemented. In additional to national coverage, spot advertising will be included in the Top Ten Millennial markets. These markets include Austin, Salt Lake City, San Diego, Los Angeles, Denver, Washington D.C., Houston, Las Vegas, San Francisco, and Dallas. • Our audience is male and female Millennials between the ages of 18 to 34, represented by a 71,736,036 individuals. The average annual household income of an employed Millennial is $34,100. • National coverage with additional spot advertising will be scheduled in select markets with a large concentration of Millennials. • A continuous schedule throughout the seven, fourweek advertising periods will be applied, beginning July 1, 2015 and concluding December 31, 2015. Also, we will take advantage of special events such as major feature film releases, college football season and back to school shopping. • A minimum reach of 80 percent with a frequency of at least 5 over the seven, four-week advertising periods will be accomplished with an average frequency level of 35. This represents a target audience of 57,388,828. Total gross rating points are calculated to be 2800 plus. • The total media budget is $80 million dollars, and will be distributed among a mix of traditional and nontraditional media types and vehicles, with additional spot advertising in the top ten Millennial markets. Expected cost-per-person estimate is $1.40.

Media Strategy This media plan will use a media dispersion strategy, allowing for multiple media types in an effort to reach the Millennial consumer.

Tactics

TIMING and COST

Network Television

Television is still the leading source of advertising consumption among Millennials, so 30 second spots will be scheduled on network and cable television. Although Millennials watch a limited amount of traditional programming, they do have their favorite shows. National networks attract larger ratings and cable tv is cost effective. Research identified top shows viewed by Millennials to include broadcast networks ABC (Scandal/Modern Family), CBS (The Big Bang Theory/NCIS), FOX (The Simpsons/ Empire) NBC (Sunday Night Football/The Voice/Late Night Show with Jimmy Fallon). Cable networks include FX (American Horror Story), ESPN for football programming, AMC (The Walking Dead), Comedy Central (The Daily Show), Adult Swim (Family Guy) and TBS (Big Bang Theory).

A total of 2600 spots at 10 spots per week for 26 weeks represent a continuous level of radio advertising. At an average cost of $290 per 30-second spot, the total cost will be $752,960.

Magazines

Millennial consumers read magazines but only a few select titles. These titles include Cosmopolitan for our Millennial Moms, Game Informer for our Hip-Ennials, and ESPN Magazine for our Clas-Ennials. Rolling Stone magazine appeals to all three groups. TIMING and COSTS

A total of 20 one full page, four-color ads will be scheduled at a total cost of $4,743,235.

TIMING and COSTS

Fall season broadcast television advertising is scheduled with a total of 111 30-second spots and a final cost of $27,568,226. Cable television has 188 30-second spots planned for a final total of $1,817,546.

Network Radio

According to Nielsen’s new Audio Today report, a majority 66.6 million Millennials listen to the radio, spending more than 11 hours a week listening, and 73 percent of listening occuring outside the home. The afternoon drive daypart is the most listened-to time of day. National radio networks to include iHeart Media and Westwood One’s popular formats of country, pop and rock will be planned. TIMING and COST

A total of 520 30-second spots at 10 spots per week for 26 weeks represent a continuous level of radio advertising. At an average cost of $3,000 per 30-second spot, the total cost will be $1,560,000.

Spot Radio

Spot radio in the Top Ten Millennials markets will be utilized. Based on their overall ratings these stations include KHFI-Austin; KSFI-Salt Lake City, KHRM-San Diego, KLSX Los Angeles, KOSI-Denver, WTOP-Washington DC, KODA-Houston, KFMB-San Francisco, KXTE-Las Vegas, and KHKS-Dallas. Magazine Advertising

Billboards

Primary research found that message recall was high among Millennials when placed on billboards. Bulletin sized 14’ x 48’ billboards with extensions will be placed in the ten Millennial markets through Clear Channel, Reagan and Lamar Outdoor. Boards will be set next to entrances/ exits to interstates, malls, and other busy streets, resulting in an average 70+ showing. TIMING and COST

A total of 588 bulletins at an average cost of $6,255 will be scheduled at a total cost of $4,481,115.

Cinema Advertising

Cinema offers an attentive and captive audience. There is no DVR or skipping past ads. Through NCM Media Networks and their clients Regal Entertainment Group, AMC Entertainment Inc., and Cinemark Theaters, we will have access to a high level of consumers ages 18-34 of which 55 percent go to eat before/after a movie. We will use 188 screens in the Top Ten Millennial markets. TIMING and COST

Select films will include Terminator Genesis, and Magic Mike during July, Fantastic Four during August, Maze Runner during September, Spectre (007) and two weekends of The Hunger Games during November and Star Wars during December. Ads will run during five daily showings for the

opening weekends for a total of 22,560 spots and a total cost is $1,353,600.

Mall Advertising

A 2014 study conducted by OpinionLab with 1100 Millennials found that even though Millennials are a tech savvy generation, they prefer shopping at the mall over shopping online. We will use 8’ x 20’ interior banners through Outfront Media in select malls throughout the Top Ten Millennials markets. TIMING and COST

Advertising during high traffic months include August, November and December. Ten banners in ten malls for three months plus an initial $5,000 installation fee totals $905,000.

Search Engines

Search engines that generate the highest number of unique visitors and largest amount of time spent on the site include Yahoo! and the MSN/WindowsLive/Bing network. Together these search engines represent a monthly unique visitor audience of 402.78 million. Leaderboard ads (728x90) with click-through mechanisms will be placed on these sites to increase traffic directly to the Pizza Hut website. TIMING and COST

Advertising will be scheduled on a continuous level at a total cost of $1,310,720.

Websites

Our primary research found that Millennial consumers ignore advertisements placed on their social networks. Therefore we have identified websites that will appeal to their lifestyles. Using the three criteria of monthly unique visitors, bounce rate, and time spent on the site, we will schedule medium rectangles (300x250) on vehicles to include youtube.com, amazon.com, ebay.com, linkedin. com, nbcnews.com, espn.go.com., yelp.com, buzzfeed. com, urbanspoon.com, usatoday.com, imgur.com, abc.

go.com, cnn.com, foodnetwork.com, bleachereport.com. TIMING and COSTS

According to Nielsen, the largest ad sizes, leaderboards and rectangles, perform above average at around $.05 per click. Advertising will be scheduled on a continuous level for a total cost of $6,750,000.

Mobile

In-App advertising will be coordinated between AdMob, iAd, MoPub and Millennial Media, targeting consumers based on demographics, types of content preferred, device, carrier, and location, among other criteria. Selected apps based on their Unique Visitors include Facebook (44.4M), YouTube (25.9M), Pandora Radio (17.5M), Twitter (16.7M), Pinterest (10.6M), Shazam (8.1M), Candy Crush Saga (6.9M), Yahoo! Mail (6.1M), Spotify (5.9M), IMDb Movies and TV (5.7M), and Yelp (5.1M). TIMING and COSTS

Sports Sponsorships

Millennials love their sports and the 18-34 aged consumers can be found at fall college football games. Using the Millennial markets as a guideline, we will purchase 12 football season sponsorships at SMU, TCU, UT Austin, UCLA, UNLV, Rice, University of Utah, San Diego State, Cal State, North Texas, University of Houston and USC. These sponsorships include commercials on Jumbotrons, a full page ad in the program book, digital billboard signage and the option to distribute Pizza Hut premiums and coupons during one home game. TIMING and COSTS

The sponsorships will be coordinated through IMG Sports and pricing for the season will range from $25,000 to $50,000. Total cost for the 12 fall season sponsorships is $450,000. Total Costs: $79,892,402

Pricing varies with the eCPC model averaging $.20 per click and the eCPM cost between $1 and $6. We will generate a total of 11 million views over the course of the campaign at a total cost is $300,000.

Internet Banner Advertising

INTERACTIVE STRATEGY Overview

It is important to address the online ordering experience for Pizza Hut with a greater focus directed to the mobile application and website. The new ideas implemented in the app will differentiate Pizza Hut from its competitors by making the app more interactive, easier to use, and a valuable tool for the consumer. Tactics have been designed that will create greater activity through the Pizza Hut mobile application and website, which should result in an increase of digital orders. All of these proposed tactics will be in place at the launch of the campaign in July.

Objectives

• To engage the Pizza Hut consumer in interactive experiences that build awareness of and consideration for the Pizza Hut brand, Flavor of Now menu, and the improved app; • Redesign the app to be more functional and interactive and, ultimately, more valuable for consumers; and • Build stronger online and digital customer relationships.

Strategies

• Create a stronger online presence through an improved website and app experience with the use of innovative digital tools and features; • Revamp the current phone and tablet app with new and improved features that increase consumer traffic and increase the level of likeability and use of the app; and • Build stronger consumer relationships through improved and user-friendly interactive experiences and tools.

Tactics

Pizza-Cam

Each Friday during the duration of the campaign, two Pizza Hut restaurants will be equipped with a live “Pizza Cam”. One restaurant will be from the Top Ten Millennial media markets along with a restaurant from a smaller market. Web cameras will be placed in each restaurant (kitchen and dining area) bringing the kitchen to the consumer for one day. The live streaming will only be visible on the website and app. When consumers place an online order at these two restaurants, they will be able to watch their personal pizza being made and baked. Total cost= $1,244,122

Pizza Scrabble

Signing Up

Research reveals that most Millennials view the Pizza Hut app as time consuming when setting up an account. In order to be more functional the app and website will provide the option of signing in through an individual’s Facebook account. When signing in, the consumer’s name will automatically be added to the order. The consumer will have the option to add their address and credit card number at the end of the order. Future orders through Facebook will be even quicker to sign in, the consumer can click on to sign in with Facebook without actually putting an email and/or password. This will be beneficial in saving time when ordering. Total cost= $5,000

For recreational purposes, Pizza Hut’s version of Scrabble will be incorporated into the app (only). It will be located in the main menu next to the “What’s Trending” tab. The consumer will be able to reach and save Hut points they will, in turn, earn coupons, rewards points, or free toppings on their pizza. Pizza Scrabble will also be available through Facebook, to bring awareness of the benefits of playing the game. Total Cost = $200,000

We’ll Bring the Coupons, You Bring the Appetite With this option on the app (only), Pizza Hut will send push notifications to consumers once they are physically near a Pizza Hut location. The notifications will contain both daily coupons and promotions that will expire at midnight the same day. This eliminates consumer’s frustration with apps taking up space on their phones and tablets. Consumers can only use it in store (specified on the coupon) and when ordering online. Total cost= $2,000

Hut Tracker

Pizza Hut’s mobile application as well as its website will contain a new GPS tracking system. The GPS tracking option will allow the consumer to check, in real time, the location of their order along with an estimated time of arrival. The GPS will be embedded in the Pizza Hut portable sign attached to the roof of the delivery vehicle. By having the GPS in the sign, consumers will be able to track their pizza delivery through their mobile app or website.

FREE

WINGS

Total cost= $175,000

Slice the Bill

A convenient function on the Pizza Hut application and website will be a “Slice the Bill” feature. It will allow consumers to divide the bill between the people that place the order. One person will need to initiate the order for the group. That same person will be given the option of paying in full or paying by “group order”. Upon selecting the group order option each person will be able to enter their preferred payment method on the initiator’s app or website, making the group ordering fast and efficient. To protect personal information, no credit card numbers will be saved when using the “Slice the Bill” option. Upon selecting the group order the user has the option of clicking “I will pay for the entire order” or “I will share the bill with guests”. If the user clicks on the option “I will share the with guests” it will ask the user to choose the method of sharing the bill manually using email or sharing the link. Total cost=$23,041

What’s Trending?

A new tab will be added to the app and website called “What’s Trending?” This is where consumers can share special moments, read about news and upcoming events, as well as post one’s favorite Flavor of Now Pizza. This will be used with Pizza Hut’s Twitter account as a way to build a community and bring like-minded consumers together. For example, the consumer will be informed when and where the “Pizza Cam” (described above) will be live and important related events such as the White House Garden (described in the PR section of this proposal). Total cost= $5,000

TAP HERE

Pizza Scrabble

Total Costs: $1,654,163

PUBLIC RELATIONS AND SPECIAL EVENTS STRATEGY Overview Information gathered through primary and secondary research reports, to include Nielsen Media Research, confirm philanthropic attitudes towards education and the environment in Millennials. Nielsen reports that close to 75 percent of Millennials have shared information on these types of events on their Facebook page. Additionally the report says that approximately 50 percent of Millennials will try a brand or product if they sponsor an event for a music artist they like. Our primary research found that our target audience has a limited knowledge of Pizza Hut’s existing charitable activities. Therefore, we have devised a PR and events oriented effort that taps into the Millennials desire to be associated with cause-oriented companies.

Objectives • Promote a positive image for Pizza Hut that includes being a proactive, socially responsible corporation; • Engage with consumers and motivate them to become associated and supportive of Pizza Hut’s charity efforts; • Help increase awareness about Pizza Hut’s Flavor of Now menu and its online ordering app through special events and national publicity; • Associate with national media organizations to generate buzz for Pizza Hut’s new campaign; and • Create events that complement the current philanthropic history of Pizza Hut and that have the potential to continue well past the designated campaign time.

Tactics The White House Kitchen Garden

To kick-start our campaign in July 2015, we will associate Pizza Hut with a new and important initiative… sponsorship of The White House Kitchen Garden. We will have Pizza Hut’s CEO, David Gibbs, present a check in the amount of $500,000 to First Lady Michelle Obama. The garden, which was planted in 2009, provides fresh produce for all White House events. In The Garden video on the White House’s official website Mrs. Obama mentions how the garden was developed to get the American public thinking about food in a new way. Pizza Hut also has taken steps to give its customers new ways to think about pizza. With healthier more diverse options with the Flavor of Now and a new partnership with Udi’s to deliver gluten free pizza, Pizza Hut’s support of the White House Kitchen Garden is a winning sponsorship. As part of the actual event, oversized pizzas in the shape of the U.S. flag will be part of the refreshments along with an accompanying salad made from the White House Garden produce. Working with the White House press office, media representatives from national media organizations will be invited to the event along with representatives from Partnerships for a Healthier America. National publicity will be generated as well as extending Pizza Hut’s commitment to healthier ingredients.

WHITE HOUSE K I T C H E N

G A R D E N

Total Cost of the White House Garden Event: $ 681,756

Book It!

In mid-September, we will announce the new and improved Book It! National Reading Incentive Program. Established in 1984, this program has been a very successful literacy program but has lost out on national publicity and awareness beyond the classroom. We will schedule Pizza Hut’s Director of Marketing, Carrie Walsh, on national television programs such as ABC’s Good Morning America, NBC’s Today Show, and Fox and Friends among others. She will re-introduce the Book It! app, and explain how the program has been re-designed to introduce new levels of reading accomplishment as well as an improved rewards program which will include free pizzas. This effort should help promote brand loyalty both during and beyond a child’s school years. With the help and attention of the media, this effort should also elevate interest in the Book It! app.

Strategies • Increase awareness of the Book It! and World Hunger Programme existing programs; • Add an association with the Partnerships for a Healthier America; • Incorporate an app donation system and link users and consumers to Pizza Hut’s partners’ websites; • Develop several high-profile events that will draw the attention of the national media as well as consumers at large; and • Develop professional relationships with national media organizations.

World Hunger Relief Slated for late October we will amp up the current World Hunger Programme through Yum! Brands. We will take advantage of Christina Aguilera’s current spokesperson role with the charity and enhance it by having her make guest appearances on various national television and radio programs as ABC’s The Chew and the Food Network’s The Kitchen as well as interviews with nationally ranked print publications such as The New York Times and USA Today among others. Her regular appearances on The Voice are keeping her in the public eye so we want to tap into her visibility. Likewise, we will ask to have a ‘donation tab’ added to the current Pizza Hut app and website which will allow customers to make a quick and easy $1 donation to this fundraising effort. When doing so, the consumer will receive a short video “thank you for supporting the World Hunger Programme… your donation will a long way in fighting worldwide hunger” from Christina herself. Since her association with this cause and the introduction of the “Pass the Red Cup” Challenge in 2014, the program has generated nearly $50 million in hunger relief. This pro-

posed new effort should continue to support and increase Pizza Hut’s positive brand and corporate brand image. Christina Aguilera World Hunger Relief cost: $400,000

Press Kits and Satellite Media Tours All the events and projects above will be thoroughly explained through press releases which will be included in a campaign media kit which will be distributed during the first week of the campaign. The actual media kit will be designed to resemble the new Pizza Hut Flavor of Now pizza delivery box. Inside the box will be both hard copies of the press releases along with a USB with the same press materials and photographs. Satellite media interviews will be set up with Christina Aguilera and Marketing Director Carrie Walsh at times prior to the specific events. Total Cost of Media kits: $90,426 Total Cost of Satellite Interviews (Book It! & World Hunger Relief): $224,000 Total Costs of Public Relations: $1,369,182

Press Kit

Christina Aguilera

PROMOTIONS STRATEGY Overview

Consumer sales promotions represent a variety of short-term tactics designed to motivate customers to purchase a product. But consumer promotions can do more, they can be used to create product awareness and build brand loyalty. Our promotions aim to catch the attention of Millennial customers and add to the awareness of Pizza Hut’s new Flavor of Now menu as well as the new online and digital opportunities. The restaurant business is highly competitive. Because the Pizza Hut name is already known for its quality pizza, it will be important for our promotions to help make that name synonymous with affordability and accessibility as well. These promotions will appeal to current Pizza Hut patrons while creating new loyal consumers.

Objectives

• To encourage consumers to purchase pizza online and with the new phone app; • To encourage consumers to purchase pizza more often than usual; • To generate new customer traffic to the Pizza Hut website; • To maintain current Pizza Hut consumers; and • To reinforce the overall advertising message.

Strategies

• Incorporate the use of both price-reduction and value added tactics to include a frequency program, an improved rewards program, coupons and discounts, a contest and sweepstakes, and premiums.

Tactics WingStreet Wednesdays (#WSW)

During the month of September Pizza Hut will launch WingStreet Wednesdays. When consumers order a large Pizza Hut pizza on any given Wednesday through the app or the website, they will receive an 8-piece wings meal at no charge. At the same time, they will receive bonus Hut points. To remind consumers of the weekly promotion for WingStreet, we will message consumers via Twitter using the hashtag #WSW. Subtotal (includes product)= $960,000

Pizza Hut Premiums

Several premiums will be designed as giveaways in tandem with Pizza Hut’s online and digital deals. These free premiums will become available on a monthly basis. Examples include a high-quality Pizza Hut Flavor of Now t-shirt, a special pizza cutter stamped with the Flavor of Now logo, and a chef’s apron stamped with the Flavor of Now logo. All three premiums (60,000 of each) will be awarded with the purchase of three, large two-topping pizzas. Subtotal = $693,090

Pizza Hut #SpecialtyMoments Contest

From November 15 to December 15 Pizza Hut will sponsor a special contest designed for Pizza Hut Facebook users. Contestants will be asked to share their special pizza moments through a picture and accompanying short story of less than 100 words. At the end of the second week, ten finalists will be selected based on the highest number of “likes” on Pizza Hut’s Facebook page. These finalists will be asked to elaborate on their postings with additional pictures, video and/or remarks. New votes will be solicited with 16 winners selected. The first place winner will receive an all expense trip for two to tour Italy for five days and four nights. Five winners will be selected for second place (one winner plus one companion) and will win a tour of the White House Kitchen Garden. Ten winners will be selected for third place, receiving a personal backyard pizza party,

equipped with DJ music and Pizza Hut food. All winners will be asked to share their winning experiences online on their personal Facebook pages as well as Pizza Hut’s page. Contest Total= $55,000

Xbox 360 Rewards

For those consumers who order their Pizza Hut pizza through the Xbox app during November, a complementary Hershey’s cookie dessert will be added to their next order, free of charge. This will encourage consumers to keep ordering through this medium. Subtotal (includes product) = $260,000

Hut Points

During the six month campaign we will revamp the current rewards program as a way to reward the current Pizza Hut consumers and attract new ones. The new program will include Hut Points for consumers who purchase their pizza through the new online app. Hut Points can also be accumulated with large pizza orders… for example buying pizzas for a group function. Hut Points will also be available through the daily deals and other campaign promotions such as the WingStreet Wednesdays. Point levels will be instituted. When consumers have accumulated 200 points they are considered a ‘Saucy Member’, with 500 points they have been upgraded to the ‘Cheesy Member’ status, and with 1000 points the ‘Pepperoni Member’. Subtotal (includes product) = $250,000

#Hungerisnotagame

From October 15th to November 15th Pizza Hut will have a cross-promotion with The Hunger Games Mocking Jay Part 2. With the purchase of any two Flavor of Now pizzas, wings and a two-liter of Pepsi, the consumer will receive a “care package” and will automatically be entered into a sweepstakes with one lucky winner winning a trip for two to attend the premiere of the feature film in Hollywood on November 16, 2015. The “care package” given will include a t-shirt, a pen and a cup all with a limited edition logo of The Hunger Games and Pizza Hut. Subtotal= $684,707

Mobile Coupons

Primary research revealed that consumers will use coupons more often if they are available on their mobile phones. Instant savings are always a welcome site so we will send mobile coupons out on Mondays starting in July to bump up sales at the beginning of the week. In order to receive these mobile coupons, consumers will need to have an established Pizza Hut account which can be setup online or through the phone app. Coupons range from dollars and a percentage off to a special offer… order three pizzas and get one free. Subtotal (includes product) = $419,850

Frequency Program

For individuals who set up a Pizza Hut account through the website or via the app, they will receive a special frequency card in the mail during the six month campaign. This coded frequency card can be used on all purchases. Not only will their orders be recorded and tracked, but they will also receive 50 Hut Points. With a tenth pizza purchase, the consumer will receive a large Flavor of Now pizza of their choice at no charge. Subtotal (includes product) = $500,000 Total for Promotions= $3,822,647

DIRECT MARKETING AND SOCIAL MEDIA STRATEGy

Overview

Social media brings people together. Not only is it a fun and creative way of doing business, it can be the spark that helps attract attention to Pizza Hut and further build brand loyalty and long-term relationships with our Millennial audience. It serves as a venue for online marketing and supports consumer engagement and direct feedback in a cost effective way. Direct Response methods allow us to talk about the Pizza Hut app and online opportunities directly to our target consumer, much like social media does. It can be cost-effective and help build personal connections by focusing on specific groups of consumers for better results.

Objectives

• To build Pizza Hut’s current database with new Millennial consumer information; • To extend recognition of Pizza Hut’s digital and online ordering opportunities; • To strengthen customer relations through direct communication; and • To generate consumer traffic to the Pizza Hut phone app and Internet website.

Strategy

• To devise specific direct marketing tactics that generate new account users; • Employ social media platforms and mobile apps to communicate directly with our consumers; • Incorporate the use of email marketing and text messaging to generate immediate communication; • Utilize SMS messaging and social media platforms to announce promotions and online activities.

Social Media Tactics Facebook

Facebook will be used as a tool to increase the use of the redesigned Pizza Hut app and to raise awareness of its new interactive features. These features will be introduced and explained via this platform with a link directly to the app or website. Also all public relations events, the Hut Point promotions, and the newly designed premiums will be posted monthly on Pizza Hut’s Facebook account. Posts

will be boosted to reach a larger audience. Once Pizza Hut’s Specialty Moments Contest winners receive their prizes, they will be required to share their photos on Pizza Hut’s Facebook account.

Key sources include:

Cost: $850,000

Twitter

Taking advantage of Twitter’s targeting options, we will tweet about all of our activities based on user interests, keywords and geography. We will take advantage of national holidays and special occasions and post images on days to include National Girlfriend Day, National Lazy Day, and National Cheese Pizza Day, as a way to associate them with pizza from Pizza Hut. We will execute trending topics with funny and clever tweets related to Pizza Hut to increase interaction with our followers. App engagement tools allow our audience to open and download the Pizza Hut app directly from our tweets. Likewise, website cards are a creative ad unit that allow us to place an image with content from our website. Once the user clicks they will be redirected to the Pizza Hut website. Both of these are priced on a cost-per- click basis. Promoted tweets will also be implemented and are priced on a cost-per-engagement basis. Here we pay only when someone retweets, favorites, expands, clicks on, replies to, or follows us from that tweet. On every Wednesday in September a tweet will be sent to remind followers of the WingStreet promotion. The hashtag #WSW will accompany this tweet to make it a trending topic on Twitter. Cost: $304,000

• Advertising Age • AdWeek • Emarketer • franchise.org • businessweek.com • nrn.com • alexa.com • 9news.com • cpb.com • consumerreports.org

• U.S. Census Bureau • Forbes • marketingcharts.com • pizzamarketplace.com • pizzatoday.com • brandchannel.com • pizzahutfranchise.com • similarweb.com • statista.com • yum.com

• Journal: Digital Women Influencers: Millennial Moms • Journal: BBDO Probes Millennials’ Dining-Out Habits • Journal: More Millennial Mothers Are Single Than Married; • Journal: How Millennials Will Dictate

Snapchat

Snapchat is a social media platform that streams short videos and photos referred to as “snaps”. Pizza Hut will use Snapchat to upload short clips and photos that will run for 24 hours. Snaps will follow up with events Pizza Hut has throughout the campaign. The “Pizza Cam” will be featured on Pizza Hut’s Snapchat story every Friday for the duration of the campaign. Snapchat ads will also be featured on Pizza Hut’s “Stories Live Feed” teaching the consumer how to easily navigate through the new app. Cost: $z750,000

The Future Of Fast Food; • Journal: Fast Feeders Forced to Branch Out Beyond Millennial Males • Journal: Millennials With Kids Are Not as Coddled and Image Conscious as You Think Brand names are less important; • Journal: The Millennial Male Is Not Who You Think He Is

#Hungerisnotagame

• Pew Research Center - Pew Research

Information on how to enter the “Hunger is Not a Game” sweepstakes and how to receive a “care package” will be posted on all of Pizza Hut’s social media accounts.

Social & Demographic Trends

Direct Response Tactics

Pizza “Hut Hut” - College Football Tailgates

Building the Database

We will set up direct marketing tents at 12 college football tailgating facilities during October and November. Campuses were selected based on the Top Ten Millennial markets and include SMU, TCU, UT Austin, UCLA, UNLV, Rice, University of Utah, San Diego State, Cal State, North Texas, University of Houston and USC. The ‘hut’ will have five tablets with the Pizza Hut app for consumers to try. Every consumer that registers with our database on site will receive a free individual pan pizza. This will increase our consumer database and allow us to visit directly with our consumer base, quantify direct response results and increase online sales.

Our tactics require the consumer to register in an easy and fast way which will help build the Pizza Hut database. When doing so, our new consumers will instantly win special online only deals. They will receive personalized coupons on their mobile devices, as well as discounts for any of the new Flavor of Now pizzas. Inserts will be placed in the largest college newspapers in the Top Ten Millennial markets such as The Daily Texan, The Daily Bruin and The Daily Cougar. The inserts will be in the shape of a full-size pizza with each slice having a different online only promotion code. Cost: $982,550

E-mail Marketing

Cost includes 12 canopy and table bundle, tablets, and rental space: $5,418,550

To increase Pizza Hut’s current database, we will execute an email campaign every two weeks throughout the campaign. As an example, consumers will receive an email with an online only coupon, offering 20 percent off their next purchase. The coupon will expire in three days. E-mail will let the consumer know that if they share the coupon with a friend who does not yet have a Pizza Hut account, they will receive a free side with their next purchase, only when the friend has created an account. This e-mail campaign embraces the sharing concept of the Moments of Now campaign. Cost: $2,454,000

Text Messaging Service After an order is placed through the Pizza Hut app or website, customers will have the option of receiving personalized notifications via text-messages or emails. The message will read, “Hello Laura, your large pepperoni pizza will arrive in 15 minutes. We appreciate you.” Cost: $78,000

Moments of now calendar 2015 MEDIA TV - Natl Network TV - Natl Cable Network Radio-Natl Radio - Spot-10 Millennial Magazines Billboards-10 Millennial Cinema-10 Millennial OOH Malls-10 Millennial Internet Search Engines Websites Online program streaming Mobile Sports Sponsorships PROMOTIONS WingStreet Wednesdays #Hungerisnotagame Moments Contest Xbox promotion Hut Points Premiums Mobile Coupons Frequency Card PR and EVENTS White House Kitchen Garden Book It! World Hunger Relief SOCIAL MEDIA Tweets, snaps, postings DIRECT MARKETING FSIs College Newspapers Email Messaging Tailgates INTERACTIVE Webcam Hut Tracker Same Day Coupons Facebook sign up Slice the Bill What's Trending Pizza Scrabble

July

August

8 80 400

25 100 500 4 98 2,820 100

98 5,640

16,000,000 1,500,000 1,833,333 12

4 Fridays

Sept

Oct

Nov

Dec

Total Ad Insertions

24 28 80 400 4 98 2,820

29 40 80 400 4 98

40 50 100 500 4 98 8,460 200

18 37 80 400 4 98 2,820

111 188 520 2600 20 588 22,560 300

20,000,000 1,500,000 30 1,833,333

16,000,000 1,500,000 30 1,833,333

16,000,000 1,500,000 40 1,833,333

20,000,000 1,500,000 40 1,833,335

104,000,000 9,000,000 180 11,000,000 12

144

4 Fridays

5 Fridays

4 Fridays

Evaluations and budget The most obvious measurements for this campaignâ&#x20AC;&#x2122;s success is an increase in accounts and use of the mobile app and the website for ordering pizza. If all of these areas are met, then our efforts are truly successful. To determine if these increases are met requires testing on three levels, pretesting, concurrent testing and post testing.

Pretesting Controlled focus groups will be conducted across the United States in key markets before the start of the campaign to establish a benchmark, identifying where the Pizza Hit app and website are in the mind of the target market. In preparing this proposal, we have already conducted a number of focus groups in an effort to determine levels of awareness and found those levels to be lo. We will need to extend that testing so that our findings are more representative of a national sample. These focus groups will be conducted in key population centers such

as New York, Los Angeles, Chicago, and Dallas-Ft. Worth as well as the Top Ten Millennial markets as identified throughout this proposal. We also will implement a social media and blog tracking system to gather accurate information on the awareness levels of the Pizza Hut online devices. The tracking system will be execured prior to the launch of the campaign and monitored throughout. Likewise we will measure the increase of consumer reach in terms of unique visitors to the Pizza Hut website and mobile app. This will help determine the effectiveness of our advertising goals.

Concurrent Testing During mid-September 2015, consumer panels and short online surveys will reveal levels of increased awareness and use of the Pizza Hut website and app odering deices as compared to the campaignâ&#x20AC;&#x2122;s launch. This will also allow us to make any necessary changes in the cam-

paign direction should brand awareness and use not be increasing as anticipated. Tracking social networking sites and consumer comments on these same sites as well as identified blogs will give us valuable qualitative information. Likewise, on a national scale, we will meter hits to the Pizza Hut website and mobile app with special attention to those areas supporting an increased consumer database.

Post Testing Final consumer panels, conducted in January 2016 ill expose overall awareness and use of the web and mobile app ordering devices. When considering necessary methods to assess the success of a campaign, we will include the typical qualitative and quantitative methods of consumer panels, interviews, online surveys, and polling. Indeed, these are the best ways to determine that we have created a campaign that delivers a credible message to the right audience at the right place and time.

Campaign Budget Evaluation: 1.03% Direct Response/ Social Media: 5.60%

Creative: 3.71%

Promotions: 3.95%

Media: 82.58%

Creative

3,587,000

Media

PR & Events: 1.42%

Interactive

1,654,163

PR & Events

Interactive: 1.71%

Promotions

3,822,647

Evaluation

1,000,000

Direct Response/ 5,418,550 Social Media Total:

79,892,402 1,369,182

96,743,944

Arely Camacho

Paloma Medina

Karla Rangel

Stephanie Annette

John Davis

Jay Mendoza

Angel Ramirez

Erika Arcuri

Thomas Diaz

Carlos Moctezuma

Mayra Rivera-Zamora

Nancy Arellano

Oscar Franco

Istiban Morales

Lucia Romero-Salazar

Damian Balderrama

Cynthia Lopez Ramirez

Ana Ordonez

Ricardo Segoviano

Michelle Bretado

Karla Lugo

Estefania Perea

Alejandra Yerena

Carolyn Mitchell â&#x20AC;&#x201C; Faculty Advisor

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