Pizza Hut National Campaign

TEAM 151

MAKING THE MOST OF

NOW

2

Executive SummaryThis is our plan to add another ingredient to the Pizza Hut recipe for success.

The pizza category is driven by innovation. There’s an endless stream of new products, promotions and ways to order pizza. Restaurant chains are fighting to be the first to bring out the next big thing. It is a constant battle to stay ahead.

From pioneering online ordering twenty years ago, to delivering a pizza to the international space station, Pizza Hut has always been the category innovation leader. However, when Pizza Hut introduces something new the competition is always quick to respond. When we reviewed Pizza Hut’s brief to increase online ordering, we knew that the solution required more than adding the latest technology to the customer's current digital experience; that alone would be just a temporary fix.

We have to find a long lasting emotional connection.

To find those consumer emotional insights, we began by asking why people order pizza in the first place. What we found is that people consider pizza to be more than just food. It’s an experience. When consumers think of pizza, they instantly think of satisfying a craving and sharing fun.

Tapping into the idea that people crave shareable fun, we developed our campaign:

MAKING THE MOST OF NOW

“Making the Most of NOW” captures the essence of what our customers want: to enjoy themselves no matter the occassion. The campaign picks up where the "Flavor of Now" left off by adding fun to the formula.

FLAVOR + FUN = Pizza Hut

That is the recipe for success. Here is our plan to do it.

Prep3 Challenge4 Research8 Insights

Bake10 Big Idea11 Capaign overview12 Digital

Delivery14 Campaign Lauch22 Media26 Campign Evaluation

TABLE OF CONTENTS

CONSIDERATION REPEAT PURCHASE

90%

51% 32% 16%

63% 50%

TOTAL AUDIENCE AWARENESS ADOPTION LOYALTY

Awareness Conversion Engagement

57%(not ordering online) (online ordering )

PrepTeam 151 | Plans Book

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$2 Billion Online Ordering

PIZZA HUT CHALLENGE

$600 MillionOpportunity

Current Objective32%43%

$2 Billion Digital MarketPizza Hut Challenge The challenge is to increase Pizza Hut’s online ordering from 43% to 75% by the end of 2015. To achieve this goal, we developed an improved digital ordering experience and new promotions that will position Pizza Hut as the top choice for those who order digitally.

Online orders represent $2 billion for Pizza Hut. To achieve our goal of 75% online ordering, we need to add 32 percentage points to the existing base. This 32% represents a $600 million opportunity.

The Conversion ModelWe applied the ACE communication model (Awareness, Conversion and Engagement) to the Pizza Hut brand purchase funnel.

By reaching 90% of those who do not digitally order with a compelling message, we will convert 63% to meet our 75% digital ordering goal.

By deeply engaging 50% of those newly converted consumers, we will increase loyalty, which will not only meet but exceed the objective.

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2

DOMINO’S

Voice Order Assistant

PayPal Wallet Instant Pay

Pizza Tracker

Pizza Chef Tool HTML 5

PAPA JOHN’S

Google Wallet Instant Pay

Papa Rewards

Social Compass Geo-targeting

To better understand the challenge, we conducted a category analysis by reviewing over 300 articles and industry sources.

CategoryPizza Hut is the leader within its category. However, Pizza Hut’s sales have been experiencing a decline, while the category and competition are experiencing growth.

CommunicationCommunication in the pizza category is driven by limited time offers (LTOs) delivered by similar brand spokespeople or celebrities.

INDUSTRY INSIGHTS

CompetitionThe pizza category is focusing on digital innovation, with Domino’s and Papa John’s leading the way.

STRENGTHS

• High level of brand usage and awareness

• Strongest following on social media

• Most options for digital ordering

S

WEAKNESSES

• Lack of unique features on digital ordering

• Perceived as a commodity brand

• Weak loyalty program

W

OPPORTUNITIES

• Growing mobile usage

• Social media interaction

• Growing multicultural audience

O

T

SWOT ANALYSIS

THREATS

• Competitive innovation

• Emerging fast-casual pizza restaurants

• Competitive price pressure

Category Sales Domino’s Pizza Hut Papa John’s

Pizza Chain Sales

3.3% 6.7%3% 1.6%

8, 9

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4

3

4, 5, 6, 7

4th quarter, 2013

FINDING OUR NICHETo fully understand the target audience, we analyzed Pizza Hut’s consumer profile, category heavy users, cross brand usage and mobile penetration. Here are the insights and target recommendations:

Pizza Hut’s Big Opportunity Pizza Hut impacts nearly every pizza eater in the U.S., representing a huge digital ordering conversion opportunity.

Hispanic Opportunity Hispanics offer a significant target opportunity; the 18-34 age group has a high index of both Pizza Hut and smartphone usage.

Millennial Opportunity Pizza consumption and smartphone penetration intersect at the 18-34 age group.

Target Conversion and Conquest Opportunity There is an opportunity to convert existing Pizza Hut users to digital ordering while expanding the customer base through the conquest of the shared users of the brand. The primary audience recommendation is millennials, age 18-34, with a secondary target of Hispanics, age 18-34.

0

20%

40%

60%

80%

100%

43

16

35

52

30

18

37

11

4

27

16

34

18

5

Pizza Hut Domino’s Papa John’s

44%

SHARED CONSUMERSWITH PAPA JOHN’S

SHARED CONSUMERSWITH DOMINO’S

49%

Pizza Hut Shares Consumers With Competitors There is high cross-category usage among Pizza Hut, Domino’s and Papa John’s which gives Pizza Hut the opportunity to capture competitive usage occasions.

PIZZA HUT USERS

CATEGORYLOYALISTS

SMARTPHONE USAGE

18 - 24 119 227 119

25 - 34 126 179 121

35 - 44 121 115 113

45 - 54 106 48 100

55 - 64 85 13 86

PIZZA HUTUSAGE

SMARTPHONEUSAGE

0

0

122

171

(171, 122)HISPANICS 18-34

11 13, 14, 15, 16

12

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5

TARGET AUDIENCEThe target is millennials age 18-34. They are active online, yet choose not to order pizza digitally. We segmented them into three specific groups based on life stage and ethnicity. These are: Millennial Men, Millennial Moms and Millennial Familia.

It’s family movie night and everyone is hungry. Mom calls in because she wants to hear about all of the specials that the store offers. She wants to make sure that she is getting the best deal.

MILLENNIAL FAMILIA 18-34

She’s been at work all day; the last thing she wants to do is cook. Hearing her order repeated back over the phone gives her a sense of reassurance. She just wants to simplify her life.

MILLENNIAL MOM 25-34

Whether they’re playing video games or binge watching a show, he and his buddies are always in the mood for pizza. He calls in whichever pizza restaurant is closest to him. He wants to be able to order his pizza fast and get it cheap.

MILLENNIAL MEN 18-24

VALUES

Authenticity

Convenience

Fun

CHALLENGES

Money

Time

Quality

THEYSHARE

PLACING A LARGE ORDER IS QUICKER, EASIER AND LESS LIKELY TO BE WRONG IF I JUST PICK UP THE PHONE AND TALK

TO A REAL PERSON.

WHEN I HEAR MY ORDER REPEATED BACK TO ME, I KNOW THAT THEY

UNDERSTAND EXACTLY WHAT I WANT.

PIZZA IS PIZZA- IT’S ALL PRETTY GOOD. I ORDER WHATEVER GETS ME

THE MOST BANG FOR MY BUCK.


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RESEARCH OBJECTIVES

Hisp

anic

Segment Insignts

Indu

stry

Exp

ert Interviews

Pizza Hut Digital Experience

In-Depth Employee Interviews

Brand Percep

tion

Word Associa

tion

Ordering Experience

Technology Expert Interviews

Focus Groups

Bilingual Surveys

Projective Techniques

Smartphone Application Reviews

Secondary Research Articles

Mind Maps

Personal interviews, focus groups, projective techniques, secondary research and bilingual nationwide surveys were designed to better understand:

1. Pizza Hut’s brand perception.

2. Why and how consumers order pizza.

3. Pizza Hut’s user experience compared to its competition.

4. How the Hispanic segment is different from the general market.

3103TOTAL RESEARCH IMPRESSIONS

Methodology Matrix

Bilingual Surveys

Projective Techniques

Secondary Research

Focus Groups

Personal Interviews

App Reviews

Techie Interviews

Expert Interviews

Employee Interviews

22

5

63

654

50

25

335

638

1311

Research Methods


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BRAND PERCEPTIONPizza Hut Brand PerceptionWhen we asked customers what they distinctly associate with Pizza Hut, they had little to say. Pizza Hut is perceived as a commodity brand, primarily associated with value and variety.

Confirming Commodity Status

The Quick Service Restaurant (QSR) team at Lopez Negrete confirmed that Pizza Hut is stuck as a commodity brand, lacking a distinct brand image. Lopez Negrete is the second largest Hispanic advertising agency in the United States, and has experience with both Domino’s and Papa John’s.

PIZZA HUT HAS BEEN VERY VALUE ORIENTED. THE EXTENT OF THEIR DIFFERENTIATION HAS BEEN THE CHEESY CRUST, AND NOW THEY HAVE COMPETITORS WHO ARE TRYING THEIR OWN VARIATIONS.”

PIZZA HUT ISASSOCIATED WITH

Variety

Value

Popularity

PIZZA HUT ISN’TASSOCIATED WITH

Online Ordering

Loyalty

Freshness

Quality

Modernity

Interactivity

Fun

ATTRIBUTES

PERSONALITY

Pizza Hut Occupies Commodity SpaceUsing the Y&R Brand Asset Evaluator we were able to identify and assess areas of weakness and momentum for Pizza Hut. Y&R is the largest continuous brand equity tracking study, and its results show that Pizza Hut is perceived as a mass market, or commodity brand.

PIZZA HUT

PAPA JOHN’S

DOMINO’S

MASSMARKET

CURIOSITY

NEW ORUNFOCUSED FATIGUE

LEADERSHIP

BRAND STATURE

50

100

0

BR

AN

D S

TR

EN

GT

H

100500

CRYSTAL MONTELEONE Exec. Group Account Director, Lopez Negrete

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ORDERING EXPERIENCE / BARRIERS

Why Do Consumers Order Pizza? When we asked why people order pizza, two answers emerged: to satisfy a craving or to share fun.

Why Not Order Digitally? Our research shows 34% of customers prefer to order by phone. Here are the three main reasons:

1. Incentives - “The employees always let me know what the best deals are.”

2. Accuracy and Convenience - “Because [I’m] very specific about my preferences. [The staff ] is able to give good details.”

3. Experience - “Most of the time your order is processed faster if you speak with an actual person as opposed to ordering online or through an app.”

Pizza Hut Employees Know BetterWe asked Pizza Hut employees for feedback on phone ordering. They told us that:

• “The best pizza deals are found online.”

• “Phone orders can be complicated. I worry about messing up their order and having to redeliver it.”

• “Customers are more satisfied because they customized their own pizza. Less return-backs [from] them.”

Insights: Making The Most Of The Digital Ordering ExperienceWe approached the Pizza Hut user experience from three perspectives. First, we wanted to know what consumers thought. Then, we wanted to understand the best practices from an industry expert. Finally, we worked with our own university techies to see what they could add to the experience. They all saw ways to make the digital ordering experience more streamlined, useful and fun.

Our next step was to better understand the ordering dynamics of pizza and how Pizza Hut’s ordering is perceived by millennials.

CRAVING

“I’m craving it”

“I want to indulge”

“It is delicious”

FUN

“Celebrate with my friends”

“Makes a happy family”

“Great party food”

• Make it less confusing• Make the app more stable• Add a pizza tracker• Make promotions easier to locate

COMMODITY POSITIONConsumers view Pizza Hut as a commodity brand.

DIGITAL EXPERIENCEConsumers lack confidence in Pizza Hut’s digital experience.

COMPELLING MESSAGEPizza Hut lacks a compelling message to encourage digital ordering.

BarriersBringing all the research together, we categorized three primary barriers that we had to overcome.

CONSUMER

• Include a “my usual” button• Suggest food pairings• Provide deal alerts• Language toggle switch• Add games

TECHIE

“It needs to be flawless and very intuitive.

Everybody wants it to be very personal and customized to them.”

EXPERT

TROY BURWELLPresident and CEO, 4 Guys Interactive

Digital Ordering Perspectives

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BIG IDEA

Brand TruthPizza Hut offers more flavors, more products and more ways to order than any other pizza restaurant brand.

Consumer Insight Pizza is more than just a food; it’s an experience. When people think of pizza they think of satisfying a craving and having fun. Life is more fun when we share it, and pizza is sharable fun.

The Big Idea:PIZZA HUT ADDS MORE FUN TO YOUR LIFE.

Positioning to Connect EmotionallyBy adding more fun to consumers' lives, we position Pizza Hut to connect emotionally with the consumer. This moves Pizza Hut away from its current commodity position and beyond the convenience benefits of the competition. It allows Pizza Hut to capture the emotional high ground in the category.

Fun: An Ingredient for SuccessPizza Hut's "Flavor of Now" campaign added more flavor to consumers’ lives. Our idea is to add more fun. This adds another ingredient to Pizza Hut’s success.

FLAVOR + FUN = PIZZA HUT

= $600,000,000

ENGAGEMENT

DIGITAL ORDERING ADOPTERS

PRODUCTVARIETY

ORDERCONVENIENCE

SAVES TIME

SHAREFUN

Our big idea comes from the combination of Pizza Hut’s brand truth and our consumer insight.

Emo

tio

na

l

BrandAttribute

FunctionalBenefits

Emotional Benefit

Capturing Emotional High Ground

BakeTeam 151 | Plans Book

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CAMPAIGN OVERVIEW

Why Our Campaign Idea Works “Making the Most of NOW” captures the essence of what our customers want: to have fun no matter what the day, situation or occasion. Ordering Pizza Hut digitally becomes the best way to make the most of any situation.

Tagline Evolution The tagline “Making the Most of NOW” builds upon the “Flavor of Now” and “Making it Great” taglines. The campaign evolves the conversation from the product to the consumer experience.

Our campaign idea builds on the "Flavor of Now" by adding fun to the recipe. To express this idea, our campaign is:

MAKING THE MOST OF

NOW

ADDING FUN TO FLAVORWe will build upon the "Flavor of Now" by introducing a spokesperson that is a direct descendent of the Italian villagers from that campaign.

MEET SOPHIA Sophia is a fun-loving multicultural millennial. She is part Italian, part Mexican and all American. Her grandparents from Sorrento didn’t care for Pizza Hut’s new recipes, but she does. That’s why she’s all about making digital ordering faster, easier and more fun. She helps Pizza Hut break away from the sameness currently plaguing the category.

SHE LIKES

Digital Ordering

Flavorful Pizza Crusts

Plano, TX

SHE DISLIKES

Ordering By Phone

Plain Flavors

Ann Arbor, MI


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DIGITAL EXPERIENCE - WEBSITE

PAIRING SUGGESTIONS Sophia will walk users through the expansive new menu by offering pairing suggestions for every topping.

USUAL BUTTON Users who always like to order the same thing will have the option to set up their “My Usual” for faster checkout.

PRE-LOADED FUNDS Customers can load funds to their Pizza Hut account.

DEAL ALERTS If a customer’s order qualifies for a deal, Sophia will alert them and deduct the cost from their total.

The updated Pizza Hut website will offer a number of features for a more streamlined and personalized user experience.

GAMESCustomers can play arcade games and unlock digital coupons if they reach a high score.


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DIGITAL EXPERIENCE - APPLICATIONBy expanding and improving upon our mobile apps, Pizza Hut will make digital ordering more convenient and more accessible, making phone ordering obselete.

HuluOur new and improved digital ordering system will also be accessible on Hulu Plus. This will allow users to respond directly to ads on the platform, and order a pizza without interrupting their tv-watching.

XboxPizza Hut’s app for the Xbox 360 was successful upon launch, but has since fallen to the wayside. To continue this lucrative partnership, we will import the improved Pizza Hut app to the new Xbox One.

9:45 AMiPad3

GIFT CARDS

MY WALLET

INBOX

PREVIOUS ORDERS

NEARBY DEALS

MY FAVORITES

MY PIZZA HUT

CARRYOUT

DINE-IN MY USUAL

LOGIN OR CREATE AN ACCOUNT

DELIVERY

ViewClose

Pizza HutYour pizza is on the way!

LANGUAGE TOGGLING Users will have the option to change the app’s language from English to Spanish.

GEO-FENCINGApp users will receive push notifications offering them location-based discounts when they come within a certain range of a Pizza Hut restaurant.

PUSH NOTIFICATIONSPush notifications can be used as a simpler alternative to a pizza tracker. Users will receive notifications on the progress of their order, allowing them to keep track of things without having to stare at their computer.

UNIVERSAL VOICE RECOGNITIONUsers who like to talk through their order will have the option to order by voice and will be able to tailor this function to suit their accent or dialect.

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The First 30 Days of NOWOn July 1, Pizza Hut will launch the first 30 Days of the “Making the Most of NOW” promotion. Every day, Pizza Hut customers who order digitally will have an opportunity to win prizes ranging from free food to a new car. This promotion will feature 15 and 30 second video on select general market and Hispanic broadcast stations. These videos will also appear on digital and social media channels.

CAMPAIGN LAUNCH

“Click. Tap. Order.” “Click.Tap.Order” is the call to action that directs consumers to Pizza Hut’s digital ordering. It is a unifying element in all advertising and collateral material. Whether it’s by computer or app, people will be consistently reminded to place their orders online.

Making the Most of NOW“Making the Most of NOW” is our campaign tagline. It will anchor our advertising. The word “NOW” will be a featured graphic element. “NOW” will be replaced by whatever is featured in the advertising. For example, if the ad relates to payday, “NOW” becomes “PAYDAY.” In video formats, the “NOW” will have an animated flip to whatever the video pertains to. Print will feature the same format.

Sophia Sophia is an extension of the Pizza Hut brand from her black and red colored outfit, to her employee nametag. She exists to facilitate online ordering and is a consistent element in all communication.

CAMPAIGN ELEMENTS

Tone of VoiceThe tone of voice of our campaign is consistent with the Pizza Hut brand. It is fun, upbeat and approachable.

Frame 1: Tagline graphic appears.

Audio: Music begins.

Frame 2: Sophia lists prizes for the kick-off campaign.

Audio: “This July, Pizza hut is making the most of now. For the next 30 days, every digital order is a chance to win… free food, game consoles, cash…”

Frame 3: Sophia reveals the grand prize, and establishes the call to action.

Audio: “or even a new car! So go online, or use the Pizza Hut app for your chance to enter to win.”

Frame 4: Click. Tap. Order.

Audio: “Click. Tap. Order.”

Frame 5: Sophia signs off.

Audio: “Pizza Hut, Making the Most of NOW.”


Audio: Music ends.

Kick-Off (:30s)

DeliveryTeam 151 | Plans Book

14

PRINTFull page four-color print ads will address each of our three target audience segments, and will be featured in high-index magazines such as: Parents, American Baby, Official Xbox Magazine, Game Informer, People en Español and Vandides. 29


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DIGITAL A series of pre-roll and flash videos featuring Sophia will be used to extend our campaign into any situation or occasion.



Frame 2: Sophia helps an office worker.

Audio: “Here’s how Pizza Hut can help you make the most of payday.”

Frame 3: Deal graphic appears.

Audio: “Order digitally and get two 2-topping pizzas for $5.99 each.”


Audio: Music ends.

Adaptable Advertising “Making the Most of NOW” can be extended year-round to address a wide variety of topics.

BUSINESS OPPORTUNITIES

• Slow sales days (Making the most of Monday/Tuesday)

• New offers/products

POP CULTURE TIE-INS

• Halo 5

• Star Wars

SEASONAL OPPORTUNITIES

• Back to School

• Halloween

CRAZY HOLIDAYS

• National Pepperoni Day

• Fresh Spinach Day

Banner AdsRich media banner ads will appear on various websites with high indexes for our target audiences.

Pay-Day (:15s)


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InstagramUsed by 53% of women aged 18-34, Instagram is an ideal platform to involve Sophia. Here, she can post selfies, interact with pop culture and introduce LTOs.

PinterestUsed by 42% of adult women, Pinterest is the best platform for appealing to millennial moms. Users can win a free family pizza pack by making a board showing how they like to make the most of their family night.

YoutubeAppealing to men aged 18-24, Pizza Hut’s Youtube channel will feature user-generated content by consumers with their unique ways to make the most of NOW. We will invite those with the best submissions to create an original video for our page, with Sophia joining in on the action.

SOCIAL MEDIAAccording to Mintel, Pizza Hut has more social media followers than Domino’s and Papa John’s combined, yet Pizza Hut lags in converting these followers to digital ordering. Our plan is to use “#makingthemostofnow” in all social media while tailoring our message to take advantage of each platform’s unique strengths. Sophia’s fun and engaging personality will help move consumers from conversation to digital ordering.

TwitterWe will use Twitter to connect Pizza Hut to news and trends relevant to our targets through timely tweets paired with LTOs.

FacebookAs the most used social media platform, and the number one purchase influencer for 47% of Americans, Facebook is most suitable for the widest range of content.

TumblrTumblr is irreverent with a strong 18-24 appeal, representing an opportunity to show off our campaign’s humorous side.

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PROMOTIONS / SPONSORSHIPS / EVENTS

143

142

157

130

146

Dallas

Atlanta

Kansas City

Chicago

Houston

Promotions, sponsorships and events build on the “Making the Most of NOW” campaign by generating awareness and creating buzz.

Sophia SelfiesSophia look-alikes will be sent to Pizza Hut’s core markets in Houston, Dallas, Atlanta, Kansas City and Chicago. Consumers who spot Sophia and post a selfie with her on social media with #makingthemostofnow will receive an online order code for a free pizza. This will help generate buzz for Pizza Hut while incentivizing consumers who are already engaged online.

Making the Most of a Galaxy Far, Far Away…Pizza Hut will offer exclusive Star Wars: Episode VII toys, collectables and menu items for customers who order digitally. Star Wars has grossed over $12.1 billion in sales of collectables, and Pizza Hut consumers have an index of 179 for viewing Sci-Fi movies.36

Pizza Hut Core Markets

Markets represent 9% of U.S and 14% of PH Stores

5m

Juanjo246 You are in the Dallas Cowboy Stadium

Sophiaforfun Find me if you can. #Findme #rewards #stadium? #fun #sophia

Sophiaforfun

VISA- Making the Most of EverywhereCustomers who pay for digital orders using VISA Checkout can instantly win an all-expenses-paid culinary tour of Italy and parts of Latin America. These “Flavor Adventures” combine the core values of both brands, while simultaneously driving users towards digital ordering.

Halo 544% of Pizza Hut users play video games. That is why Pizza Hut will partner with Microsoft to give away download codes for exclusive Halo 5 content with every digital order. The previous installment of the Halo franchise has sold over 6 million copies, and Halo 5 is one of the most anticipated fall video game releases.

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Book IT! 2.0We will enhance Pizza Hut’s existing Book IT! sponsorship by tying student’s reading achievements in with our loyalty program. Each point they earn through Book IT! becomes worth twice as many points when redeemed through online orders.

5m

Juanjo246 You are in the Dallas Cowboy Stadium

Sophiaforfun Find me if you can. #Findme #rewards #stadium? #fun #sophia

Sophiaforfun


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PROMOTIONS AND EVENTS Making the Most of LoyaltyDouble Hut is a loyalty program that encourages digital orders. Unlike the competitor’s rewards programs that offer a single point regardless of what you purchase, our plan offers double the points. To encourage digital usage we will double (4x) those points based upon the Recency, Frequency, Monetary (RFM) model. Here is how it works:

Making the Most of Veterans DayWith customers who are 42% more likely than the general population to have served in the military, a charitable Veterans Day promotion is an important opportunity for Pizza Hut.

On Veterans Day, Pizza Hut will donate a portion of every sale to Operation Homefront, a leading charity for veterans and the families of deployed service members.

Frame 1: Tagline graphic appears


Frame 2: Operation Homefront logo appears behind Sophia as she speaks.

Audio: “For every digital order, Pizza Hut will donate a percentage of sales to Operation Homefront, which provides helpful resources to military families. So, this Veterans Day, celebrate by giving back with Pizza Hut.”

Frame 3: Click, Tap, Order

Audio: “Click, Tap, Order. Pizza Hut, Making the Most of NOW”

Frame 4: Tagline graphic appears

Audio: Music ends.

Veterans Day (:30s)

REWARDS

RECENCY

No matter when you order, you receive double points to be redeemed for food, prizes and even travel. When you order at off-peak times (such as Monday or Tuesday), you get double those points or 4x the points. Daily social media promotions will provide the opportunity to double up when consumers take advantage of Sophia’s offers.

FREQUENCY

To encourage a higher frequency of usage, we will double points when consumers order twice or more in a given week.

MONETARY

To encourage a higher average ticket, double points will be applied when consumers order more than $14 and/or add on high-margin items (such as desserts or drinks).

AWARDS

Double Hut points are an opportunity to reward customers not only with more delicious Pizza Hut products, but also with free movies and games through tie-in partners such as Hulu and Xbox.

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HISPANIC MARKET Hispanics represent a big opportunity for Pizza Hut. They are fans of the brand, have higher average tickets and are digitally savvy. Here is our plan to make Pizza Hut culturally relevant with this audience.

Creative Trans-CreationMaking our copy culturally relevant requires not just translation, but trans-creation. 52% of Hispanics are bicultural and move seamlessly from English to Spanish.

“Making the Most of NOW”, will become “Disfruta el AHORA”, which translates to “enjoy the moment.” Since click and tap have the same meaning in Spanish, our “Click. Tap. Order.” call to action becomes “Click. Ordena. Disfruta.”, or “Click. Order. Enjoy”.

Hispanic Heritage Month – September 15-October 15 Pizza Hut will recognize the contributions of Hispanic and Latin Americans by Making the Most of Hispanic Heritage Month. Sophia will introduce a contest to turn an old family recipe into a new pizza, with the winning pizza making it on the menu in select markets.

Making The Most of Pelicula Night Partnership With HuluWith an index of 246, Hispanic families love movies. To make the most of their pelicula nights, Pizza Hut will partner with Hulu to provide free access to the Hulu movie catalog with digital orders placed on Friday nights.

ACCULTURATION LEVEL

Acculturation

Bicultural

Unacculturated

HISPANICS QSR USER

30%

52%

18%

M O V I E S

The kids are picking the movie and you already know what’s coming. Time to order some variety. Just a tap the Pizza Hut app and a delicious pizza will be there before the big sing-a-long.

Click. Tap. Order.

Disfruta el AHORA

Disfruta el AHORA con Peliculas

Click. Ordena. Disfruta.

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LOCAL MARKET SUPPORT

Making the Most of The CallPre-recorded messages with Sophia offering discounted digital orders will be available for use at every store.

HI THERE, I’M SOPHIA! THANKS FOR ORDERING FROM PIZZA HUT. WANNA SAVE 10% RIGHT NOW? JUST ORDER ONLINE OR ON OUR APP AND ENTER THE CODE GODIGITAL AT CHECKOUT. IT’S FAST, EASY, AND PRECISE SO THAT YOU CAN KEEP MAKING THE MOST OF NOW.”

PHONE MESSAGE

Making the Most of HomeTo localize the campaign even more, franchisees can adapt it to support local schools and events. Here are a couple of examples:

“Make the most of the Dallas County Walk-a-Thon with a coupon for half-off any pizza when you complete the walk!”

“The Mountain Pointe Pride is making the most of playoffs! Good luck from Pizza Hut!”

Making the Most of The Pizza BoxThe classic pizza box is a great medium to encourage digital conversion. A weekly flyer featuring Sophia and specific store-level discounts can also be included.

Making the Most of Ordering In-StoreTablets offering immediate discounts will be placed in-store. This will increase digital orders for dine-in and take-out, as well as relieve lines at the counter.

Making the Most of Our AssociatesTo promote team involvement, we’ve created an employee incentive contest. The first store to convert their digital orders to 80% or higher will win an all-expenses-paid vacation to Sorrento, Italy, accompanied by Sophia.


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AWARENESS CONSIDERATION ADOPTION REPEATPURCHASE

LOYALTY

TV Ads

Print (Magazine)

WOM

Online Ads

SEM

Pre-Phone Call Ads

Customer Service

Social Media Follow Up

Websites

Rewards/Loyalty Programs

In-Store MediaPre-Phone Call

Promo codesconverting to Online

Promo Events Blogger Sponsorships Social Media

Charity Events

Ordering Vehicles

Social Media Posts / Ads

Buzz Feed

CONSIDERATION REPEAT PURCHASEAWARENESS ADOPTION LOYALTY

Connecting All Consumer TouchpointsOur fully integrated plan consisting of paid, owned and earned media creates multiple touch points that connect Pizza Hut with the target audience.

The consumer journey provides the framework for the media plan. The framework, based on the ACE communication model, is aligned with media tactics tailored to their specific role in the purchase funnel. ACE is applied to each of the three target segments as well as Pizza Hut’s ordering platforms. Media tactics surround the consumer segment based on their media and ordering preferences .

Connecting All OccasionsMedia support will be provided on a continuous basis with 30% of paid media allocated to the kick-off promotion. Other periods of emphasis include promotional windows and monthly pay periods. To ensure that both lunch and dinner dayparts are effectively promoted, media impressions will be directed to the 11am-3 pm and 3pm-7pm timeframes, as appropriate.

MEDIA OBJECTIVES AND STRATEGY

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MEDIA RATIONALE

Numbers on this page represent media usage indexes from Simmons OneView.

MagazineFull page, four-color ads will be scheduled to reach each of our three target segments.

Broadcast/ Cable 30 and 15-second commercials will be used to kick off the campaign. A combination of broadcast and cable networks tailored to each target will carry the message.

Social Media To supplement our social media engagement program, 15 and 7-second pre-roll videos will be purchased on

Streaming Radio and Video15-second pre-roll ads will be featured on streaming radio and video services.

Online Display and SEMRich media leaderboards, banners and expendables will be placed on key websites frequented by our targets. Top search engines such as Google (134), Yahoo! (130) and Ask (228) will generate high target reach among our three targets.

Emerging MediaEmerging media opportunities will be continually evaluated to optimize our plan. Web video channels such as Snapchat, Meerkat and Vessel are beginning to offer media content and advertising opportunities. Twitch, a streaming platform for video games, is also emerging as a medium to consider.

Digital print ads will be scheduled in each magazine which will give the target market easy access to the Pizza Hut digital ordering platforms.

MillennialMom

Millennial Men

Millennial Familia

(252) (266) (270)

(222)

(285)

In addition, a comprehensive search engine marketing campaign on Google and Yahoo! will supplement the online campaign.

(212)

Radio Video

(193)

(193)

(250)

(250)

(220)

(170)

(241)

(199)(227)

(238)

(375)

(330)

(305) (251) (306)

(254) (355)

(229)(252)(163)

(167)(242)

48

MillennialMom

Millennial Men

Millennial Familia

Promoted tweets on Twitter and blogger sponsorships on Pinterest will be used to promote the campaign

(207)


23

BUDGET

RESEARCH1%CONTINGENCY

1%

PROMOTION10%

PRINT

5%

PRODUCTION

10%

HISPANIC

5%AGENCY

5%

BROADCAST

20%

DIGITALMEDIA

43%

Budget FrameworkWe applied a 4.3% advertising to sales ratio to the $600 million projected revenue. This yields an advertising budget of $25 million. This is based on Pizza Hut $5.7 billion revenue in 2013, and reported $247 million in advertising.

Budget RecapDigital media represents nearly half of the proposed $25 million budget at 43%. Broadcast and print media are 27%. We have allocated 11% for promotions, sponsorships and events. Finally, we cover our Hispanic programs with the remaining 5%.

Agency Fee PhilosophyWe are committed to adding value to our campaign through an extensive Public Relations program. From encouraging social media involvement to publicizing promotional winners, public relations will amplify our campaign. Media tours in our core markets plus a national media relations effort will increase the visibility of Sophia and the Pizza Hut brand. All Public Relations activities are included in our agency fee.

Added ValueThe agency is committed to adding value to our campaign, by using public relations to promote Sophia and extend Making the Most of NOW. We will work to negotiate 10% added value to the media schedule by securing bonus impressions. We will work with partnership companies to split media and production costs when appropriate.

Plan AdjustmentsThe plan will be continuously tracked and monitored to allow for the flexibility of schedule changes based on market and digital ordering conversion conditions.

Return on InvestmentOur plan is designed to achieve Pizza Hut’s goal and reach $600 million in digital orders. That represents $23 of revenue for every $1 invested in advertising. Using a 25% industry profit margin, the revenue represents $150 million of profit, or $5 of profit for every $1 invested in advertising.

$25 Million Budget


24

MEDIA FLOWCHART

JUL AUG SEP OCT NOV DEC

HISPANIC HERITAGE MONTHINDEPENDENCE DAY BACK TO SCHOOL HALLOWEEN VETERANS DAY HOLIDAYS IMPRESSIONS COST($)('000)29 6 13 20 31 7 14 21 28 5 12 19 30

25,00050,000 16,000

25,000

12,000 80,000

5,00020,00010,000

32,19036,00014657,40011,8536,480

53,750268,750716,667645,000

33,0005,00012,000

25,00015,000

15,00010,000

725,000

10,000 200,000

2,933,236 20,735,600

$25,000,000

N/A N/A

12,000500,0001,000,000 400,000

500,000

300,000 2,000,000

100,000400,000200,000

965,715107,6004,370172,315355,600194,400

1,075,0005,375,0001,075,0003,225,000

660,000100,000240,000

500,000300,000

300,000200,000

0

300,000

7 14 21

Broadcast :15/:30LifetimeNickelodeonThe CWComedy CentralAdult Swim ESPN Fox SportsDiscovery FamiliaUnivisionTelemundo

Parents

Xbox

Print Four Color/Full Page

American Baby

Game InformerPeople en EspanolVanidades

Digital

Double Hut ProgramLocal Store Marketing

250,000

250,000

2,500,0001,250,000

ResearchProductionAgency FeeContingency

TOTAL

Mobile AppTablet App

Website

Xbox AppSocial Media

DigitalOnline BannersOnline VideoSEMSocial Media Video

PromotionsKickoffHispanic HeritageOperation Homefront

SponsorshipsStar WarsHalo

PartnershipsVisaBook IT! 2.0

EventsSophia’s Selfies

Social Media

27 3 10 17 24 26 2 9 16 23 PAID MEDIA

EARNED MEDIA

OWNED MEDIA

BUDGET TOTAL

Social media: Twitter, Facebook, Vine, Instagram, Pinterest, Tumblr

Note: Reach / Average Frequency = 90% / 30 with 3+=77%

Media Impressions based on adults age 18-34Delivery

Team 151 | Plans Book25

EVALUATION / RECOMMENDATIONS

Pre-Testing Confirms Position and Messaging75% of respondents found the campaign likeable and 63% indicated that they would be motivated to order online from Pizza Hut. These are the words customers used when describing the campaign and Sophia.

Pre-Testing Confirms Digital Ordering Experience86% found the new Pizza Hut digital ordering experience to be superior to the existing Pizza Hut experience. Consumers rated the new Pizza Hut digital ordering experience 20% higher than Domino’s or Papa John’s.

ACE Model Confirms AdoptionBy reaching 90% of our target with a compelling message and a best-in-class digital ordering system, we are confident that we will meet and exceed the 2015 digital ordering objectives.

Monitoring Brand and BusinessMarket effectiveness of both the brand and business will be measured on an ongoing basis. The following are the Key Performance Indicators (KPI) that will be tracked.

BRAND KPI

• Brand health

• Media impressions

• "Engagement and Likes" on social media

• Number of customers who participate in Double Hut

• Number of app downloads

BUSINESS KPI

• Pizza Hut overall sales and market share

• Pizza Hut sales by ordering method

• Pizza Hut average check and order frequency through digital ordering channel

• Conversion rate of digital media to digital ordering.

Future ThoughtWe are confident that Sophia and the “Making the Most of NOW” campaign will always be useful to Pizza Hut as it strives to meet new goals. Sophia will continue to encourage digital ordering, and can be included in any new campaign.

GOAL ACHIEVED

Awareness 90 90Conversion 63 75Engagement 50 62

LOVABLE

PLAYFUL

CHEERFULFUNFRIENDLY

51

52

51


26

FINAL THOUGHT

MAKING THE MOST OF PIZZA HUT

1. Kelley, Larry. “ACE Model: Awareness, Conversion, and Engagement.” Media Planning, University of Houston, 2015.

2. Liddle, Alan J. “2014 Top 100: Slow Sales, but Growth Returns.” Nation’s Restaurant News. June 30, 2014. Web. March 12, 2015.

3. Ibid. 4. Buss, Dale. “Domino’s Pizza Tests Digital Leadership On Super Bowl

Sunday.” Forbes. Jan. 30, 2015. Web. March 12, 2015.5. “Pizza Crust Perfection.” Domino’s. n.d. Web. March 12, 2015.6. “We’re Putting Ordering Right at Your Thumbtips.” Domino’s. n.d. Web.

March 12, 2015. 7. “Mobile Ordering.” Papa John’s. n.d. Web. March 12, 2015. 8. Fajardo, Katrina. “Pizza Restaurants-US-November 2013.” Mintel. Nov.

2013. Web. Dec. 16, 2014. 9. Fajardo, Katrina. “Pizza Restaurants-US-November 2014.” Mintel. Jan.

2015. Web. Jan. 23, 2015. 10. Halzack, Sarah. “Domino’s vs. Pizza Hut: One Is Piping Hot and One

Needs Reheating.” Washington Post. Oct. 16, 2014. Web. March 12, 2015.

11. Fajardo, Katrina. “Pizza Restaurants-US-November 2014.” Mintel. Jan. 2015. Web. Jan 25, 2015.

12. “Pizza Restaurant Survey.” Survey Monkey, n.d. Web. March 11, 2015.13. “Pizza Hut Customers in the United States.” Ad-ology. n.d. Web. March

12, 2015.14. “Pizza Lovers.” Ad-ology. n.d. Web. March 12, 201515. “Mobile Millennials: Over 85% of Generation Y Owns Smartphones.”

Nielsen. May 9, 2014. Web. March 9, 2015.16. Experian Simmons. Simmons OneView™ Database. Computer software.

Simmons OneView™. N.p., n.d. Web. March 15, 2015.17. Ibid.18. The Valenti Group’s Mind Map Questionnaires. Feb. 12, 2015. Raw data.

University of Houston, Houston, TX.19. Muhleman, Janet. “Stand Out From the Competition.” International

Franchise Association. July 2009. Web. March 16, 2015. 20. Lopez Negrete Communications. “Hispanic and QSR/Pizza Category.”

PDF. Houston: Lopez Negrete Communications, Jan 29, 2015.21. “BrandAsset® Valuator.” Explore Your Brand. BAV Consulting, n.d. Web.

March 12, 2015.22. “Pizza Brands Sentence Completion.” Survey Monkey, n.d. Web. March

11, 2015.23. “Pizza Restaurant Survey.” Survey Monkey, n.d. Web. March 11, 2015.24. Ibid. 25. “Customer Reviews.” Pizza Hut on the App Store on iTunes. n.d.

Web. March 16, 2015. <https://itunes.apple.com/us/app/pizza-hut/id321560858?mt=8>.

26. “Reviews.” Pizza Hut-Android Apps on Google Play. n.d. Web. March 16, 2015. <https://play.google.com/store/apps/details?id=com.yum.pizzahut&hl=en>.

27. Cheredar, Tom. “Hulu’s New Ads Will Let You Order a Pizza without Leaving the Video player.” VentureBeat. April 30, 2014. Web. March 16, 2015.

28. Mogg, Trevor. “Xbox Sofa Loafers Order $1 Million worth of Pizza through Console’s Pizza Hut App.” Digital Trends. Jan 10, 2014. Web. March 12, 2015.

29. Experian Simmons. Simmons OneView™ Database. Computer software. Simmons OneView™. N.p., n.d. Web. March 15, 2015.

30. Fajardo, Katrina. “Pizza Restaurants-US-November 2014.” Mintel. Jan 2015. Web. Jan 23, 2015.

31. Baer, Jay. “11 Shocking New Social Media Statistic in America.” Convince and Convert Social Media Strategy and Content Marketing Strategy. n.d. Web. March 15, 2015.

32. Halpin, Carro. “Battle of the Blogs: Tumblr Wins, but Can Advertisers Open Users’ Wallets?” Compete Pulse. June 11, 2013. Web. March 17, 2015.

33. Experian Simmons. Simmons OneView™ Database. Computer software. Simmons OneView™. N.p., n.d. Web. March 15, 2015

34. Duggan, Maeve, Nicole B. Ellison, Cliff Lampe, Amanda Lenhart, and Mary Madden. “Social Media Update 2014.” Pew Research Center. Jan 9, 2015. Web. March 17, 2015.

35. Google. “Gen V Research Men 18-34 The On-Demand Video Consumer”. PDF. Mountain View, CA: Google, May 1, 2012. Web. March 19, 2015.

36. “Star Wars Total Franchise Revenue.” Statistic Brain RSS. n.p. n.d. Web. March 8, 2015.

37. Amato-McCoy, Deena M. “Pizza Hut Partners with Visa on Online Payment Platform.” Nation’s Restaurant News. Sept 5, 2014. Web. March 16, 2015.

38. “Pizza Hut Customers in the United States.” Ad-ology. n.d. Web. March 12, 2015

39. “Halo 4 (Xbox 360) - Sales, Wiki, Cheats, Walkthrough, Release Date, Gameplay, ROM on VGChartz.” VGChartz. n.p. Feb 21, 2015. Web. March 16, 2015.

40. Clow, Chris. “The 5 Most Anticipated Video Games of 2015.” Geek Nation. Jan 1, 2015. Web. March 16, 2015.

41. “Our Program.” Pizza Hut BOOK IT! Program. n.p. Web. March 16, 2015.42. Experian Simmons. Simmons OneView™ Database. Computer software.

Simmons OneView™. N.p., n.d. Web. March 15. 2015.43. Chen, Yen-Liang, Mi-Hao Kuo, Shin-Yi Wu, and Kwei Tang. “Discovering

recency, frequency, and monetary (RFM) sequential patterns from customers’ purchasing data.” Electronic Commerce Research and Applications 8, no. 5 (2009): 241-251.

44. Lopez Negrete Communications. “Hispanic and QSR/Pizza Category.” PDF. Houston: Lopez Negrete Communications, Jan 29, 2015.

45. “American Marketscape DataStream™ 2013 Series Simmons Winter 2013 Study.” Geoscape. 2013. Web. March 15, 2015.

46. Experian Simmons. Simmons OneView™ Database. Computer software. Simmons OneView™. N.p., n.d. Web. March 15. 2015.

47. Customer Journey Map. Digital image. Customer Journey Mapping #DSMMCM1314. March 12, 2014. Web. February 28, 2015. <https://buzzbeedigital.files.wordpress.com/2014/03/perfect-consumers-journey.png>.”

48. Experian Simmons. Simmons OneView™ Database. Computer software. Simmons OneView™. N.p., n.d. Web. March 15, 2015.

49. Liddle, Alan J. “2014 Top 100: Slow Sales, but Growth Returns.” Nation’s Restaurant News. June 30, 2014. Web. March 12, 2015.

50. Channick, Robert, and Jessica Wohl. “Pizza Hut Shifts Advertising from McGarryBowen Chicago to Deutsch LA.” Chicago Tribune. N.p., July 17, 2014. Web. March 19, 2015.

51. The Valenti Group’s Post-Concept Focus Group. Feb 12, 2015. Raw data. University of Houston, Houston, TX.

52. The Valenti Group’s Word Association Questionnaires. Feb 12, 2015. Raw data. University of Houston, Houston, TX.

Pizza Hut has more customers, variety and flavors than any other pizza restaurant chain. The only missing ingredient is FUN, and that is what our campaign adds to the brand.

FLAVOR + FUN = Pizza Hut

By positioning Pizza Hut as the brand that adds the most fun to your life, we capture the emotional high ground in the category.

By developing a digital ordering experience that continually delights and assists our customers, we build consumer loyalty.

By promoting, “Making the Most of NOW” we will increase awareness and usage of digital ordering, reaching our objective of 75% digital ordering.

We are confident that “Making the Most of NOW” will deliver FUN and PROFIT. Let’s make the most of it together.

To start, just sign here:

Pizza Hut Authorization

CITATIONS


27

Pizza Hut National Campaign

Data & Analytics