Media Plan Book Max Catterson, Alexandra Bontrager, Michael Nichols, Vanessa Shipley & Alice Brumfield
Table of Contents 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
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Company History Maket Share & Historical Sales Political & Legal Issues Product Distribution Competitive Analysis Target Audience Product Trends Recommended Media Budget Objectives & Strategies Network TV Cable TV Internet Internet Social Media Mobile Promotions IMC Flowchart Final Budget
Company History
1958
In 1959, Pizza Hut began Franchising in the United States.
1973 In 1973, expansion began internationally.
1974 Pizza Hut began using the now classic logo, which features the famous ‘red roof’ icon which is still used in a modified form today. Also, the signature roof for new and updated restaurants at the time was changed from brown to red.
1999 In November of 1999, Pizza Hut introduced a new logo including a different font for “Pizza Hut” and the “i” had a green dot put on it and a yellow underline beneath the wordmark.
2010 In 2010, the red roof was given a glossy look, and the text was modified.
2014 In February 2014, the yellow stripe and the green dot on the ‘i’ were eliminated from the logo and the wordmark was moved down further from the symbol. This change was made possibly to make it look like the 1974 logo. The previous logo is still being used as an alternate logo.
2014 In November, Pizza Hut completely rebranded. The logo consists of the February 2014 logo in white, on a stylish paintbrush strokelooking red circle. However, on boxes, the logo only has the white roof inside the circle. They also introduced the new slogan “The Flavor of Now.”
02 / Company History
Dan and Frank Carney opened the first Pizza Hut in Wichita, Kansas in 1958. They only had $600 to start with, but they were able to build it into something more. Its first logo was its former mascot, Pete, holding the words Pizza and Hut.
1959
Market Share & Historical Sales The Carney brothers sold Pizza Hut franchise to PepsiCo in 1977. 20 years later, Yum Brand bought it from PepsiCo. In 2013, Yum Brand (Taco Bell, KFC & Pizza Hut) totaled more than $13 billion world wide.
Market Share / 03
The company has experienced a 2 percent decline in same-store sales in the last year. It still boasts the biggest market share of 16.7 percent, but that has been decreasing over the last few years, even as rivals’ shares have increased.
Legal Issues
1997
Better Ingredients? Better Pizza?
Pizza Hut filed a lawsuit against Papa John’s based on a series of advertisements that compared the ingredients of Papa John’s and its competitors. At trial, the court agreed with Pizza Hut’s argument that Papa John’s slogan did not constitute statements of literal fact – that “fresher ingredients” do not necessarily account for a “better” pizza; this ruling was overturned in 2000 when Papa John’s appealed the decision. Although the jury’s decision on the misleading advertising was upheld, the appeals court determined that Pizza Hut failed to prove, under the requirements of the Lanham Act, that the misleading advertising and puffery had a material effect on consumers’ purchasing decisions.
04 / Legal Issues
Product Distribution
How the Product Is Sold Call in delivery or pick up. Ordering online with a computer or a mobile device. Dining in.
Current Purchasing Process Online/Mobile
Pizza Hut, like most pizza companies, is now offering online purchasing for user-friendly ordering.
In-Restaurant
In-restaurant purchasing is where Pizza Hut sets itself apart from other pizza places. Most restaurants have a sit-down, family style restaurant, which many of their competitors don’t offer.
Carry-Out
Pizza Hut offers call in carry-out. Customers can call in their order and come pick it up whenever it is finished.
Delivery
If customers live in range, they can have their Pizza Hut pizza delivered right to their door.
Distribution / 05
Challenges Pizza Hut, while at the forefront of many advances in the pizza industry, is lagging behind its competitors in terms of digital ordering. Even though the order options are the broadest in the business, the other businesses seem to be doing much better in this area.
Competitive Analysis
“Domino’s. The Pizza Delivery Experts.”
“Better Ingredients. Better Pizza. Papa John’s.”
“Hot N Ready.”
Founded:
Founded:
Founded:
Number of Locations:
Number of Locations:
Number of Locations:
Attributes:
Attributes:
Attributes:
Disadvantages:
Disadvantages:
Disadvantages:
1960, Ypsilanti, Michigan.
More than 10,000 franchised stores.
Domino’s locations are carry-out & delivery only.
3,200 U.S. franchised stores.
• Utilize email and text deals with online promotional codes.
Most locations are carry-out & delivery only with few locations having chairs for dining in.
1959, Garden City, Michigan.
3,673 U.S. franchised stores.
• Hot N Ready $5 pizzas eliminate waiting. • Largest carry-out pizza chain in the world.
There is no online ordering options on their website.
06 / Competitive Analysis
• Interactive online ordering system allows customers to track their order from preparation to delivery. • Offer carry out deals Monday through Thursday.
1984, Jeffersonville, Indiana.
Target Audience Demographics
Media Usage
Male & Female (almost evenly split) Ages are split: Millennials: 18-24 Fammillennials: 24-34, with children Gen X: 35-49
TV Internet Social Networking Mobile IMC/Promotions
Psychographics
Geographic
Middle-upper class Caucasian GenX and Millennials Likes quality and convenience
Midwestern and Southeastern regions contain the most Pizza Hut locations.
Target Audience / 07
Lifestyle Families Mothers College students Young professionals Groups (social, sports, etc.) Busy lifestyle
Product Trends First Internet Sale In 1994, Pizza Hut pizza was the first thing to ever be ordered on the Internet. The service was soon suspended, however, in 2003, Pizza Hut brought back online ordering capabilities.
Stuffed Crust The Stuffed Crust pizza was introduced in March 26, 1995. By the end of the year, it had become one of their most popular lines.
Organic Stint On May 9, 2008, Pizza Hut created and sold in Seattle, Denver, and Dallas, “The Natural”, featuring organic ingredients. This was quietly discontinued in these locations on October 27, 2009.
Rebranding
The new PizzaHut.com, which was released November 19, 2014, focuses on the “honest truth.” Nathan Iverson, design director at Deutsch, said that larger visuals of the ingredients on the pizza give people what they want. “People want to see what they’re ordering,” he said. “All the stuff, shot honestly, not fantastically.” The rebrand introduced new logos, packaging designs, different uniforms for restaurant workers and a completely revamped design for both mobile and desktop versions of the website. The rebrand attempts to connect with millenials. 08 / Product Trends
Recommended Media Budget
5MM 20MM
18MM
12MM
12MM
Recommended Budget / 09
3MM
Total: $70 Million
Objectives & Strategies Objective
Strategy Purchase ads on T.V, Internet, Social Networking, mobile, as well as promotions and prizes. With an emphasis on Internet and Mobile
Geographic Considerations
Advertise nationally and ephasize on top 20 DMA’s with high index of pizza sales.
Target the highest indexing pizza DMA’s and focus our tactics in those areas. Including New York, Los Angeles, Chicago, Philedelphia ect
Advertise July 1st-December 31st 2015
Heavy-up advertising during big sporting events throughout the fall months (ie. first Sunday Night Football Game)
Reach & Frequency
Reach 75% of the target market with an average frequency of 5.
Use T.V, Internet, Mobile, Social Networking, and IMC to reach our target audience in order to promote the ease of use of the new website and mobile app to increase online ordering
Scheduling
July 1st-December 31st 2015
Maintain advertisng thoughout the campaign with flighting ads during peak sales points (ie. Sunday Night Football game)
Creative Constraints
Use mediums to show simplicity and rapidness with ordering online through a number of mediums.
Emphasize digital media to showcase our website, app, ect and encourage online ordering
Allocate budget across TV, Internet, Social Networking, Mobile and IMC efficiently to achive objectives
Total Budget= $50,995,224.00 TV= $19,967,890.00 Internet= $10,344,000.00 Mobile= $224,070.00 Social Media= $339,264.00 IMC/Promotions/Prizes= $15,120,000.00 Contengency= $5,000,000.00
Seasonality
Budget
10 / Objectives & Strategies
Target Market
Reach Target Audience of Millenials Male and Female ages 18-34
Television Network TV
Network TV / 11
We will use primetime commercials on CBS, NBC and ABC during the top shows on the networks that target our target audience. We decided to allocate our budget for more ads during Sunday Night Football. Football is especially important because pizza is popular and convenient for sporting events and can be delivered, so no one has to miss the game.
Vehicle 2 Broke Girls NCIS 2 and 1/2 Men Sunday Night Football Modern Family Once Upon a Time
Network CBS CBS CBS NBC ABC ABC
Daypart Primetime Primetime Primetime Primetime Primetime Primetime
Frequency 7 7 6 11 5 9
Rating 5.2 11.8 4.8 8 4.0 4.0
CPP $38,460.00 $25,516.00 $38,333.00 $74,250.00 $70,500.00 $43,250.00
Cost $1,232,000.00 $1,120,000.00 $1,104,000.00 $6,534,000.00 $1,410,000.00 $1,557,400.00 Subtotal - $12,957,400.00
Cable TV We will use a mixture of primetime and afternoon ads for ABC Family, MTV, ESPN, Comedy Central and TBS.—all popular networks for the target market we are trying to reach. The shows chosen are all popular for their network. Half of the shows are primarily for women and the other half for men—ranging from multiple age groups within our target audience.
Network ESPN ESPN MTV MTV TBS TBS ABC Fam ABC Fam Comedy Central Comedy Central
Daypart Primetime Afternoon/Early Fringe Afternoon Afternoon Primetime Primetime Afternoon Afternoon Primetime Prime Acess
Number of Ads 5 27 35 35 22 22 28 28 18 36
Cost Per Ad $397,898.00 $82,500.00 $10,000.00 $10,000.00 $15,500.00 $15,500.00 $12,500.00 $12,500.00 $20,000.00 $10,000.00
Total Cost $1,994,490.00 $2,214,000.00 $350,000.00 $350,000.00 $341,000.00 $341,000.00 $350,000.00 $350,000.00 $360,000.00 $360,000.00 Sub Total - $7,010,490.00
12 / Cable TV
Vehicle Monday Night Football College Football Saturday The Real World Teen Mom 2 Big Bang Theory Conen Pretty Little Liars Switched at Birth South Park Always Sunny In Philadelphia
Internet Paid Search We chose to use the Internet because a lot of our target audience use it in their spare time. Internet advertising can go hand in hand with television. Often times, consumers watch TV while simultaneously surfing the internet.
Internet / 13
The first method of Internet advertising we would like to utilize is paid search. Paid search is one of the strongest forms of internet advertising. It is common for people to search for pizza places, or places that deliver using search engines. Google and Yahoo are the most popular search engines used by our target audience, so we chose to use their advertising services.
Website Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google Yahoo/Google
Key Word piza pizza pizza hut pizza hut mobile pizza hut online ordering pizza hut delivery pizza hut ordering pizza online order pizza online mobile pizza Create you own Pizza pizza delivery
Months 6 6 6 6 6 6 6 6 6 6 6 6
CPM $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26 $105.26
Estimated Clicks 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000
Cost Per Month $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00 $133,000.00
Total Cost $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 $798,000.00 Total - $9,576,000.00
Banner Ads The second method we would like to utilize is banner advertisements. They provide a decent visual and can be seen clearly and immediately on sites. They are relatively cheaper than other Internet advertising options, so we can get more bang for our buck. The sites we chose for the banner ads are websites our target audience visit regularly.
Type of Ad Banner Banner Banner Banner Banner Banner Banner Banner
Months 6 6 6 6 6 6 6 6
Impressions per Month 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
Total impressions 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000 4,800,000
CPM $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00
Cost per Month $16,000.00 $16,000.00 $16,000.00 $16,000.00 $16,000.00 $16,000.00 $16,000.00 $16,000.00
Total Cost $96,000.00 $96,000.00 $96,000.00 $96,000.00 $96,000.00 $96,000.00 $96,000.00 $96,000.00 Total - $768,000.00
14 / Internet
Website amazon.com espn.go.com eonline.com usmagazine.com answers.com easports.com foodnetwork.com buzzfeed.com
Social Media Social Networking
Social Media / 15
Choosing social media as one of our media platforms was a no-brainer. A large majority of our target audience is engaged with social media on a daily basis. Over half of the users in our target market use social media to keep up with friends and family, post about their daily happenings, post about their feelings and opinions and a lot of people use it to get information. In a way, social media has become the news for some individuals.We chose Facebook, Twitter, Instagram, Pinterest and Snapchat because they are currently the top social media sites.
Platform
Type of Ad
Months Impressions per Month Total Impressions CPM
Cost per Month Total Cost
Facebook Twitter Instagram Snapchat Pinterest
Sponsered Stories Sponsered Tweets Sponsered Posts Sponsered Stories/Snaps Sponsered Pins
6 6 6 6 6
$7,328.00 $16,608.00 $8,000.00 $8,000.00 $16,608.00
1,600,000 1,600,000 1,600,000 1,600,000 1,600,000
9,600,000 9,600,000 9,600,000 9,600,000 9,600,000
$4.58 $10.38 $5.00 $5.00 $10.38
$43,968.00 $99,648.00 $48,000.00 $48,000.00 $99,648.00 Total - $339,264.00
Mobile
Applications The biggest goal for this campaign is to increase our sales from orders online, which can be done on mobile devices. Therefore, we have chosen to utilize mobile advertising as well. All of the chosen apps appeal to our target audience, and most of them are in the top 30 category of free apps as well. This means there is more of a chance that users have these apps and can see our mobile advertisiments for ordering Pizza Hut pizza online.
Type of Ad Banner Banner Banner Banner Video Video Banner Banner Banner Video
Months 6 6 6 6 6 6 6 6 6 6
Impressions per Month 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
Total Impressions 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000
CPM $10.00 $3.50 $3.00 $3.00 $7.50 $8.50 $3.75 $2.50 $5.00 $7.00
Cost per Month $7,000.00 $2,450.00 $1,960.00 $1,960.00 $5,250.00 $5,950.00 $2,625.00 $1,750.00 $3,500.00 $4,900.00
Total Cost $42,000.00 $14,700.00 $11,760.00 $11,760.00 $31,500.00 $35,700.00 $15,750.00 $10,500.00 $21,000.00 $29,400.00 Total - $224,070.00
16 / Mobile
Application Weather Channel Food Network Watch ESPN Espn Sports Center Trivia Crack Candy Crush Saga Groupon Retail me Not NFL Mobile Pic Stitch
Promotions / 17
Promotions
Pizza Hut will hold a contest for college campuses across the United States. The top 5 universities with the highest percentage per capita of online/mobile orders during the time frame of July 1st to December 31st of 2015 will recieve a Pizza Hut sponsered concert featuring Pizza Hut spokesman, Blake Shelton. The Pizza Hut sponsered event will feature free pizza for all those in attendance, along with free taste testing of their new “Flavor of Now� menu. The budget for these events, including pizza, is $14 Million. This promotion will encourage college students from our target market to try out Pizza Hut’s revamped online and mobile ordering systems. Percentages will be based on the number of students enrolled in the University compared to the number of online/mobile orders made. (min 4,000 students enrolled in the University to qualify)
IMC Flavor of Now Taste Testing
NFL Football Discounts
NCAA Football Rankings Challenge
50% off First Online/Mobile Pizza Order
Strategy
Rational
Encourage people to try the new “Flavor of Now” menu.
Set up stands in malls and around college campuses giving free taste tests of the new menu items and offer coupons for 10% off of online/mobile orders of a “Flavor of Now” item.
It promotes the new menu by getting constomers to try the new flavors and also encourage word-of-mouth promotion.
Allow customers in high traffic areas the opportunity to try the new “Flavor of Now” items and offer them a 10% off coupon for each item on the menu when it is ordered online/mobile.
$50,000
Get more customers to order online/mobile.
Offer a 25% off online/mobile code to customers when the NFL team nearest to their location wins.
Associates pizza with football, offering a large discount to customers ordering online/ mobile when their favorite team wins.
Use the current location of the customers to determine the NFL team nearest to their region and offer them a discount code when their team wins a game.
$15,000
Interact with customers and encourage them to try new items on the menu.
Hold a contest for customers on our website. If you guess all the correct answers you get a free “Flavor of Now menu item.
Gets traffic to our website and allows customers to interact in a fun way. Also shows the simplicity and ease of use of our website.
A competition to guess who will be ranked in the top 25 of the AP poll Monday morning. The competition can only be acessed on the Friday before all the games start.
$45,000
Get people to try the online ordering system.
Give 50% off of their first online/mobile orders to customers
Shows how simple it is to order pizza through the new online/mobile site. It will encourge people to try it out due to the large discount.
After creating an account on our website or app, it will give you 50% off on your first order.
$10,000
Encourage students to order Pizza Hut rather than other restaurants.
Travel to different university campuses and give out coupons with massive discounts for ordering online/mobile.
Traveling to the campuses will allow us not only to give coupon books out, but promote our Blake Shelton Concert challenge as well. The reasoning behind the huge cost of this IMC promotion is the fact that Pizza Hut will also be promoting its big Blake Shelton concert event.
Give coupons to students for certain seasons of the year (ie. football opener, holidays, ect)
$1 Million
Tactics
Cost
18 / IMC
Campus Coupon Invasion
Objective
Flowchart MEDIA FLOWCHART July Television CBS NBC ABC ESPN ABC Family MTV TBS Comedy Central Internet Banner Ads Paid Search
28
29
August 30
31
32
33
34
September 35
36
37
38
39
October 40
41
42
November 43
44
45
46
47
December 48
49
50
51
52
Total TotalTRPs Cost $19,967,890.00
$10,344,000.00
Social Media Facebook Instagram Twitter Snapchat Pinterest
$339,264.00
Mobile
$224,070.00
Promotions & IMC Flowchart / 19
27
Contingency
$15,120,000.00 $5,000,000.00
TOTAL $50,995,224.00 Total: $50,995,224.00
Final Budget $5,000,000.00
$15,120,000.00
Contingency Promotions & IMC
$224,070.00
Mobile
$339,264.00
Social Media
$10,344,000.00
Internet
$19,967,890.00
TV 20 / Final Budget
Total: $50,995,224.00