2011 MPM PHK Total 7june2010

8/3/2019 2011 MPM PHK Total 7june2010

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2011 YRI Marketing2011 YRI MarketingPlanning MeetingPlanning Meeting

PH KoreaDallas TX, June 2010


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Who is Pizza Hut Korea?

Equal importance ofboth channels Sales Mix = Dine-in 45% & Delivery 55%

(Based on 2010 P7, YTD)

Severe competition

25 years history ofPHK Highly penetrated = 79% (on-line BIT 10 Q1)

Strong competitors

(Dominos / Local brand : Mr. Pizza, others)

Increase ofFranchise stores mix 2008 48% 2009 52% 2010 54%

(Based on 2008 P12, 2009 P12, 2010 P7 YTD)


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1,000

2,000

3,000

4,000

07 P2 P8 08 P2 P8 09 P2 P8 10 P2

How did PHK do in 2007~2010?

Total

DEL

DI

De-seasonalized PSA Traffic for past 3 years (P207 P710)

3 year trend Total trans trend similar to DI, Del trend slightly better in 09

RoyalRoyalCrustCrust

C.C.VolcanoVolcano

TongTongCBCB

ManManChan*Chan*

DB.DB.BBQBBQ

F.GF.GF.DF.D

S.S.FantasyFantasy

SmartSmartLunchLunch

TuscaniTuscaniF.DF.D

SmartSmartLunchLunchRehitRehit

DB.DB.ChickenChicken

CoconutCoconutShrimpShrimp

*ManChan: 6 Mini Pizza (1) + Salad Bar (2) = $9

CCPCCPRGRG

SizeUpSizeUp&&

DorlleiDorllei

SmartSmartLunchLunchReRe--hithit

TheTheSpecialSpecial


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4

2,631

2,838 2,878 2,8282,774

2,671 2,648

2,5802,453

2,7942,868

2,812

1,834 1,8801,937

1,7831,8371,819

1,683

1,651

1,801 1,757

1,6971,490

1,4691,607 1,763

1,808

1,586 1,444

1,811

1,8101,776

1,6991,774

1,7801,701

1,774

1,6381,501

1,790

1,878

2009P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 2010

P2

P3 P4 P5 P6 P7

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

3,200

4

How did PHK do in 2009 & 2010?

De-seasonalized Per Store Avg. Transaction & SOV

SOV

Total

Delivery

Dine-in

PastaHOT

PastaFresh Delight

SmartLunch

Double Chicken Coconut Shrimp SizeUpSize Up/

DorlleiSmartLunch

TheSpecial


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DINE-IN


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PHK DINE-IN AGENDA

MARKET & CONSUMER TRENDS

BRAND CHALLENGE

FUTURE BACK VISION

2011 SALES & MARKETINGOBJECTIVES

2011 STRATEGIES

KEY INITIATIVES & EVENTS

MARKETING CALENDAR


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PHK DINE-IN AGENDA


BRAND CHALLENGE

FUTURE BACK VISION


2011 STRATEGIES


MARKETING CALENDAR


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(%)

(unit: %, Same quarter to same quarter)

Source: The Bank of Korea, Korea National Statistic Office, 2009 Source: Korea National Statistic Office, 2009

Although economy is in recovery,

spending in dining out is still in minus trend

(unit: %, Vs. the same month a year ago)

(%)

GDP &Consumer Spending Growth

Household Income &Spending on Dining Out


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Dine-in market in Korea had significant growthover the years,but is getting increasingly competitive

QSR

Korean

Restaurants

Pizza

Fine

Dining

QSR

PizzaPizza

Casual

Dining

FineDining1990s

2010s2010s

Specialty Coffee/ Bakery Caf

Korean

Restaurants

QSR

Korean

Restaurants

Fine

Dining

1980s

Pasta

Chain

-10%

-14%

+3%+3%

Source: 2010 BIT, PHK00%

Fusion & individual restaurant

Overall, CDR and Pizza category seem to be in decline while QSR has been in positive trend


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So, who is our main competitor in Pizza market?

recentTVC

strategyThe Most Loved Pizza Brand

Mr. PizzaPHK

Global No.1 Pizza Brand

targetBroad Target 2030 Young Female

tasteRich flavor & Cheesy taste Dambaek & Hand stretched

# of stores301 stores189 RR&RBD, 112 Delco 378 storesAssumed as almost RBD

sloganEnjoy together Love for Women

productMenu varietyPizzas, pastas, salad bar,beverages & appetizer

Pizza focusedPizza & Salad bar

assetStore renovation &strategic closing

Store expansion &renovation

marketshare

38% 42%

* Source: TNS online panel survey 2010, media release data, BIT 2009


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How do the consumers think about PH vs. Mr. Pizza?

[Base: 450 Pizza Users, Source: Q1 2010 BIT ]

Familiar, Fun & Young/Trendy taken by Mr. Pizza recently

Passionate

Generous

Young/Trendy

Well-known

Enjoyable

Qualified Service

Passionate about food

Surprising

Relaxing

Fun

Familiar

Exciting

For everybody

Warm

Accessible

Brand Image Map


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Why do the consumers prefer Mr. Pizza?

TasteTaste

[N=400, Pizza category users & WD market users

Source: Consumers value perception survey, July 2009]

Mr. Pizza is preferred than PH for its taste, topping variety & value!

Why?

Preferredpizza brandPreferred

pizza brand

3.3

2.7

3.0

2.3

Value for

money

Low inprice

[Source:Q1 2010 BIT, 5pts]

[Source: Consumers value perception survey, July 2009, T2B%]

ValueValue

Low in price

Value for money

PH

Mr. Pizza

29%


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So, How did PH do in 2009 & 2010?

2009

P02P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13

2010

P02P03 P04 P05 P06 P07

-12.5 2.1 -4.7 2.0 0.3 -9.2 -7.3 -13.9 -9.7 -22.0 -15.9 -15.7 -7.0 -6.0 -2.7 0.4 -6.5 -4.0

-18.1 1.2 -3.4 3.9 1.4 -11.6 -9.4 -12.2 -9.5 -25.7 -22.2 -21.3 -13.6 -12.5 -6.5 -2.4 -6.7 -2.7

(%, 0)

[Source: Internal Cognus data, 2010]

SSG is gradually decreasing,but Occasion Driven window, Smart Lunch shows positive trend

Pasta

&

HOT

Pasta

&

Fresh Delight

SmartLunch

2nd Re-hitDouble Chicken

Coconut Shrimp

(BTL)

RG Size

Upgrade

RG Size

Upgrade

& Dorllei(Pizza&Sal

ad)

SmartLunch

3rd Re-hit

TheSpecial


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Summary - Market/Consumer Trends & Implications

Key summaryKey summary Key implicationKey implication



Dine-in market is getting increasingly competitive

CDR and Pizza category is declining

while QSR is increasing

PH is loosing in

Familiar, For everybody, Young & Trendy

Mr. Pizza is preferred than PH for its taste,

topping variety & value

SSG is gradually decreasing,

but Occasion Drivenwindow,

Smart Lunch shows positive trend



Dine-in market is getting increasingly competitive

CDR and Pizza category is declining

while QSR is increasing

PH is loosing in

Familiar, For everybody, Young & Trendy

Mr. Pizza is preferred than PH for its taste,

topping variety & value

SSG is gradually decreasing,

but Occasion Drivenwindow,

Smart Lunch shows positive trend

Need to boost up transaction by providingattractive value offers

Offer variety menus at affordable price

Need continuous brand building towin-back

Need to develop new & differentiated pizzasfor taste enhancement

Develop newoccasion layerwith brand relevancy

Need to boost up transaction by providingattractive value offers

Offer variety menus at affordable price

Need continuous brand building towin-back

Need to develop new & differentiated pizzasfor taste enhancement

Develop newoccasion layerwith brand relevancy


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PHK DINE-IN AGENDA


BRAND CHALLENGE

FUTURE BACK VISION


2011 STRATEGIES


MA

RKETING

CA

LENDA

R


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VALUE

BRAND

Howhave we overcome our brand challenge in 2010?

PH is affordable because

I can enjoy what I want

with special offer for me

. .

. ._

PH is my brand.When I want tohave a goodtime withfriends & family,

PH comes first

Desired Perception 2010 Strategy 2010 Key initiatives

Integrated TVC ending

format & jingle

Integrated POP format

Q2 Smart Lunch

Q3 Smart Dinner

Mobile alliance (SKT)

TAS

TE

PH pizza tastes great

& has lots ofvarieties

Q2 The Special

Q1 Dorllei (Pizza & Salad)

Engaging Exuberance

Consistent Branding

Build occasion based offer

Reinforcing alliance

Enhancing menu variety

Improving pizza taste

. ._


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BRAND


PH comes first



format & jingle


Engaging Exuberance

Consistent Branding

2010 Brand Challenge: Brand

VALUE




. . Q2 Smart Lunch

Q3 Smart Dinner


TAS

TE


& has lots ofvarieties



Enhancing menu variety


BRAND TASTE VALUE

. ._

. ._

Q2 The Special



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Build know-how 2010 :

Consistent brand building in every consumer touch point

Engaging ExuberanceEngaging Exuberance

[Menu Book]

[Table Mat]

[Coupon]

[Q1-1 RG Upsizing] [Q1-2 DorlleiPizza & Salad]

[Q2 Smart Lunch] [Q3 The Special]

Consistent branding inevery consumer touch point

BRAND TASTE VALUE

TVC Ending Format POP On-line Asset PR


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Brand building through various PR activities

Exposure for 330 on Morning

Today at terrestrial TV station MBC

Portal Site VideoSite

Top ranked BCC in social media

Engaging sto

riesfrom consumerseSay cheese! Campaign

PHK Messagein fun & creative wayeBCC Create Buzz on PHK

BCC (Flash mob, parody and etc )

reached 600,000 people via online

Social Net

workingService media

eNew Generation Media

Twitsumer viral via PHK Twitter

Twitter reporters Twit PHK Event

Taste enhancement Communication

via over 500 Power bloggers

BRAND TASTE VALUE


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Howhave we overcome our brand challenge in 2010?


TASTE


& has lots ofvarietiesEnhancing menu variety


VALUE

BRAND




. .

. ._


PH comes first


format & jingle


Q2 Smart Lunch

Q3 Smart Dinner


Engaging Exuberance

Consistent Branding



BRAND TASTE VALUE

. ._

Q2 The Special



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44

44

PH filled the gap on topping variety with Better price with good quality matrix

Very important Important Value layer Not important

Right pricew/ good quality

Better pricew/ good quality Great pricew/ OK quality


Expanded topping variety

BRAND TASTE VALUE

: PH : Mr. PizzaActual

price(unit: KRW)

Perceived topping qualityPerceived topping qualityHigh Low

25,000

20,000

15,000

0

2009 Pizza Matrix by topping2010 Pizza Matrix by topping

11 5 55 1

44 4

11 322 1

11 6 33 3

77 5

22

11%%

22

11%%

5

0%

5

0%

2011 MPM PHK Total 7june2010

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