MCOM 3314 Ad/PR Research 07 December, 2014 Malika Ouédraogo George L. Lozano Brittny Herbert Taylor Stroud Denise Stewart David Dueñes Amy Romero
The Pizza Hut Marketing Challenge Secondary Research Focus: Industry/ Online Behavior) 1
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Table of Contents I. Executive Summary........................................................................................................................................5 A. The Challenge a. The Research i. Secondary ii. Primary C. The Recommendations II. The Challenge..............................................................................................................................................6 III. The Research...............................................................................................................................................8 A. Secondary Research a. Research Objective b. Research Summary B. Primary Research a. Man-On-The-Street Interviews.............................................................................................10 i. Research Objective ii. Research Method iii. Research Findings b. Focus Group........................................................................................................................13 i. Research Objective ii. Research Method iii. Research Findings c. Custom Research.................................................................................................................15 i. Research Objective ii. Research Method iii. Research Finding d. E-Surveys............................................................................................................................19 i. Research Objective ii. Research Method iii. Research Finding IV. The Recommendations..............................................................................................................................20 V. Appendix....................................................................................................................................................22
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EXECUTIVE SUMMARY THE CHALLENGE
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his Comprehensive report and analysis of the pizza industry aims to determine what the average consumer expects, wants, and needs when looking at a digital platform to make Online orders. Information was gathered from the community of Canyon Texas about their perspective on the pizza industry and Online ordering became instrumental to the success of the Focus Group Methodology. Television advertisements from three different pizza companies were used to showcase Pizza Hut, Domino’s, and little Caesers on YouTube. A main topic discussed was about free products: consumers are being charged extra for Ranch
and other condiments. In addition, the participants did not care which pizza they ate: they seem to be more worrisome about who has the best deals and promotions. Healthier options did not appeal as an option for the participants, because pizza is not on the top of their list. MOS interviews were conducted with both males and females 18-34 on the West Texas A&M college campus. Questions were asked to find several different diverse viewpoints and to also understand why consumers feel the way they do. The research conducted will help better understand how to push Online ordering of Pizza Hut.
THE RECOMMENDATIONS
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hen analyzing the focus group, the research developed suggests implementing free condiments, better deals through promotional material, a faster and easier process for online ordering, and promoting each digital platform to obtain more traction. In addition, focusing on a cost leadership strategy may be another alternative. Since most of our participants were concerned with cost and promotions, selling piz-
za at a more reasonable price may increase their sales drastically. What needs to also be considered are the complications that come with ordering online. Many participants found that ordering online was complicated and filled with errors. One can infer that making online ordering fast and efficient would aid Pizza Hut in their market penetration into the mobile world.
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What They Want
THE CHALLENGE OVERVIEW
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he goal of the campaign was to increase the share of pizza orders that are done online by 32% by the end of 2015.
68%
32%
Share Increase
Remaining
OBJECTIVE • Position Pizza Hut as the top choice for customers who order pizza digitally. • Provide the greatest digital orderging experience in the category. • Research the target of 75% of all orders done online/ mobile by the end of 2015.
Target Audience
What They Have
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izza consumption has a very broad target market, typically 18-64 year-olds; this target narrows to 18-49 year-olds and more specifically millennial aged 18-34. Both men and woman consumer pizza about the same, although men tend to be younger, 18-24, and women typically tend to be mothers.
Strategy
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igital online ordering is easier for customers, and it also alows the orders to be placed more accuratly because the consumers have more time to consider ordering options. One can see a full menu so it takes away the rush-factor. The data shows that 43% of all orders are done digitally, wich an increasing number of 23% using apps, mobile and tablet. The other 20% ordes through a Desktop or Laptop.
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57% Overall Ordering
20% Desktop Laptop
23%
App/ Mobile/ Tablet
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n Average, 46 slices of pizza are consumed by the every day American. In fact, 93% of Americans have eaten pizza in the past month.
46 Slices
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izza Hut is the world’s largest pizza company with more than 6,300 traditional restaurants in the U.S. and another 1,500 Pizza Hut “Express unites located in Target stores, malls, airports, etc. They have 15,000 units in over 90 countries.
Competitors
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izza Hut’s strength lies with families, especially young moms and “famillennials.”
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Secondary Research
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THE NEW FAST CASUAL DINING EXPERIENCE
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Fast Casual” dining is a flourishing concept that reveals how the Pizza Industry attempts to lure customers, thanks to innovative dining styles and a competent customer service. The “Fast Casual” dining approach aims at satisfying consumer’s needs and sharing a positive experience with the customers. The “Fast Casual” dining includes new formats of menu boards and the ability to offer new ingredients to the target audience.
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IMPORTANCE OF TECHNOLOGY
ll full-service restaurants offer some form of table ordering. These restaurants have a higher per-unit sales volume on average. Consumers that choose to go to a full service restaurant are from higher incomes and are more actively engaged with technology. 20% of consumers say that technology options are an important feature when looking for a restaurant.
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he industry research spoke for itself. The industry team uncovered that food customization is so important for our target market. Pizza restaurants have already made huge strides for accomplishing this for their consumers. Other fast casual restaurants like Taco Bell , Dunkin Donuts, and The Chocri chocolate website all allow you to customize your food with online ordering. If we learned one thing, millennials
want to have their food to have many options, get it fast, and order it the way they want to. According to the QSR Consumer Survey, “32 percent of Americans eat fast food at least once a week. Eating out is a function of a mobile society. Customers want to be able to personalize their menu choices to their tastes. Getting the exact flavor you want to increases the likelihood of a repeat visit.�
AL APPE
TION A Z I OM CUST ING GROW
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PRIMARY RESEARCH Mos Interviews OBJECTIVE
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he goal of our MOS interviews was to get a better understanding of:
• What pizza brand consumers feel loyal to and why? • If they have ever ordered food through an Online application. • What they would change about Online ordering and why? • What they thought about the overall brand of Pizza Hut.
METHOD
Hayden Gibbs
Steven Contreras
• We interviewed both males and females 18-34 on our of how we can push online ordering for Pizza Hut. very internationally diverse college campus. • The Man on the Street interviews were conducted • By interviewing and asking people these questions, on the West Texas A&M campus in the Jack B. Kelly we were able to find out their viewpoints and Center and surrounding areas. undestand why consumers feel the way they do. • 10 different interviews were conducted. • This research will help us get a better understanding
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Findings
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ne of the big surprises is that the younger generation still calls in orders because they want to make sure their order is correct. Mostly negative comments about Pizza Hut. Bad experiences, preferring local homemade pizza to global chains. This is what some people suggested to make Pizza Hut more appealing regarding Online ordering:
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A guaranteed estimated time of arrival of when your pizza is going to get there.” –Hayden Gibbs
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It would be cool if they showed a video of them making my pizza they do the whole step by step but if they had an in cam that would be awesome.” –Steven Contreras
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Focus Groups OBJECTIVE
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o discover what the average consumer’s perception of Pizza Hut’s Online ordering is.
METHOD
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focus group was conducted with incentives to bring the participants together to help better understand thte consumer mind-set. The focus group viewed television advertisements from three different pizza companies– Youtube was the platform used to showcase Pizza Hut, Dominoes, and Little caesars.
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FINDINGS
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The participants found it rather confusing and irrelevant with pizza ordering, stating they would prefer talking to an employee over the phone to avoid misunderstandings.
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Little Caesars was preferred because of the humor appeal, and the jingle was memorable.
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Free Condiments were one of the main topics discussed.
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There were high emotional responses to Ranch dressing and pizza, and the local consumer denounced her dissatisfaction with being charged extra for a condiment. Some participants felt that condiments should come with the pizza as an added bonus because pizza and Ranch “just go together.”
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The pricing of pizza was another giant preoccupation. Participants seemed to lean more towards the more affordable pizza, over the brand, yet the participants in the focus group conducted said they order pizza sporadically–not always on occasions.
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Some participants said the Online ordering process needs to be less confusing, a bit simpler and more user friendly; however, most preferred the traditional method of calling for pizza.
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In addition, participants found data-mining useful, because their card information was saved to use at a later time– keeping the history of past orders stored and ready to access.
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Custom Research OBJECTIVE
RESEARCH FINDINGS
The goal of the custom research was to:
• Help us determine which Pizza Hut online ordering platforms are the easiest to use. • What can be improved about them. • How people feel about them. RESEARCH METHOD
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Using the Platforms Many of our participants had never used the online ordering platforms. After being introduced to them, they were very open to using the platforms again.
e hosted individual contests where participants faced off to order a specific item using one of the Online ordering platforms (ie. iPhone app, Apple tablet, and website). Two person groups took part in each competition and the person with the fastest time to order on each platform “won”. Each participant was then asked to take be interviewed about their experience.
Clutter
Interview Questions:
Respondents suggested implementing a guide function with voice capability to access their desired order faster and without confusion.
1. 2. 3. 4.
Which platform did you most enjoy using? What was the most frustrating part of ordering on the platforms? Do you order Online or over the phone? What would you change about the Online ordering platforms to make it your first option?
Many participants felt that the website was overpopulated with marketing messages and promotions. They indicated that the website would be easier to navigate with a more streamlined appearance. Guide
App Failure The iPhone app produced multiple errors and was slow to load. The tablet app did not have the same problems.
ANALYSIS
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here are functionality issues with each of the platforms that need to be addressed. Once they have been fixed, it would be prudent to introduce a guide or tutorial to the platforms to help guide customers through the buying process.
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The respondents said online ordering was simple.
54%
The Majority of Respondents were single.
70%
3/4 majority of respondents did not have kids.
Most of the respondents said they made under $20,000.
49%
75%
Many respondents favored Coupons. RESEARCH METHOD
87%
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67 completed surveys
out of 75 opened
Other Notable Findings • 57% of respondents were female • 56% lived in urban areas
• There was little knowledge about Hulu and X-Box • Preferred ordering over the phone
E -Surveys OBJECTIVE To find out why people enjoy/ don’t enjoy Online ordering, and what appeals to them the most.
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Heat Map PAPA JOHN’S
PIZZA HUT
LITTLE CAESARS
DOMINO’S
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Results PAPA JOHN’S
FINDINGS
• “Chili Pizza” • “New Fritos Chili Pizza Large” • “Order Now” • “See All Special Offers” • “Add A Pepsi” • (Image) Fritos
• The majority of the survey respondents noticed pricing and special offers. • Occassionaly they would notice a point-of-sale article such as soda.
PIZZA HUT • Bacon. Cheese. Stuffed. Crust. • “$7.99 Large” • “World Hunger Relief ” LITTLE CAESARS • “Local Store Coupons” • “Our Menu” DOMINO’S
We Love Coupons!
• “$5.99 Each” • “7.99 Each”
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Our Sweet Recommendations • Use technology to increase awareness online and platforms. • Social Media is key when targeting millennials to consider ordering pizza through the Online and mobile platforms. • Navigating through mobile devices was rather tedious and difficult, changing this is instrumental to the success of the company. • Provide promotional incentives to push traffic to mobile devices. • The correspondants agreed that condiments are crucial to the success of Pizza Hut, so promotial materials can be altered to suite this taste. • There is an increase in technology, and research shows that a consumer is more likely to select a restaurant if they are more technologically savvy, which includes up-to-date websites and on-table technology. Pizza Hut has a video of YouTube showcasing a table technology, but implementation of this technology should occur in the near future .
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Appendix
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