Transcript Pizza Hut

Research Project Part
II
Media Planning and Buying
Angelina Troia
Cristina Flores
Juliana D’arpino
Jessica Boff
Research Objectives
1. Explain current situation and campaign goals
2. Break down target market and media research findings
3. Re-define and clarify Target Market
4. Reveal campaign theme
5. Show campaign and budget allocation between paid,
owned, and earned media
6. Demonstrate budget
7. Concluding remarks
Situation Analysis & Campaign Goal
Pizza Hut:
Dominos:
46% digital
sales
$245.8 mill. Ad
Spending
40% digital
sales
$191.1 mill. Ad
Spending
Papa John’s:
Little
Caesars:
45% digital
sales
$152.3 mill. Ad
Spending
0% digital sales
$22.4 mill. Ad
Spending
Currently, Pizza Hut’s sales
have been declining
Struggling to create a constant
theme in order to attract
consumers
Creating a new campaign will
improve positioning
Concentrating on digital sales
will boost revenue and online
presence
Target Market Demographic Rationale
Pizza Hut consumer by age group
18-24
30%
35-44
33%
Pizza Hut consumers by geography
West
23%
Northeast
18%
Midwest
22%
25-34
37%
South
37%
Other facts…
• 25-34 year olds spend the most at Pizza Hut
• Pizza Hut consumers have graduated college
Target Market Lifestyle Choices Rationale
Our research shows that…
• They consider themselves affectionate, passionate, and
loving
• Internet  TV  Magazine  Radio
• Gen Y: technology savvy, influenced by meaningful
content ad and social networking
• Gen X: use technology for lifestyle needs, not as
influenced by social networking, appeal to direct
marketing, immune to traditional ads
• Moms spend twice as much time online each month than
general population
Target Market
General Target Market:
Ages 18-44
The Social Adolescents (18-24)
-Audience size: 25%
-Consumption size: 30%
-Propensity online food order: most likely
The Proactive Protectors (25-34)
-Audience size: 37%
-Consumption size: 37%
-Propensity online food order: likely
The Passive Users (35-44)
-Audience size: 37%
-Consumption size: 33%
-Propensity online food order: least likely
Campaign Theme & Rationale
Overall research shows that
Gen X’s upbringing in empty
or divorced homes motivates
them to invest more love into
family and lifestyle
An extension from
current “Hut Lovers”
loyalty program
Pizza Love
Previous and current love
themed campaigns have
proven success:
Honey Maid, Cartier
Tiffany’s, Cadbury
Additional research shows
that Pizza Hut consumers
see themselves as
affectionate, passionate,
loving and romantic
Paid Media: Television Advertising
Our Pizza Love Campaign TV spot will run for 30 second on the
following channels:
• MTV, Nickelodeon, ESPN, FX
• Prime time TV spots:
• Big Bang Theory (CBS)
• American Idol (Fox)
• NCIS (CBS)
• Allocate most spending during September  December
Paid Media: Online Advertising
Banner Ads on the following Websites:
• Yahoo, AOL, ESPN, YouTube
• Alternating between 3 day takeovers and 6 month regular banners
• Hulu: 6 months video ads
• Buzzfeed: Native content advertising during a holiday
Paid Media: Magazine, Radio, & Direct Advertising
• Magazine: People & US Weekly
• Radio: 60 spots  small, medium, and large cities
• Extra around Holidays
• Direct mail/email: Special promos on certain Holidays/Events
• Target Gen X through mail
• Target both Gen Y and Gen X through email
Paid Media: Partnership
Current/Old Partnerships:
• Visa, Red Cross, Xbox, Hershey’s, Hulu…
Our New Partnership:
•
•
•
•
Healthier alternative to soda
Gen X: Appeal to mother’s decisions for kids
Gen Y: Appeal to health conscious and convenience
Previous history with PepsiCo (owns Tropicana)
would make easier transition and beneficial for both
parties
Owned Media: Online Presence
• Use our Social Media platforms and website
to…
• Advertise our “Pizza Love Campaign” with
hashtags
• Create a more fun, trendy, and loving Twitter
feed
• Utilize Facebook for target ages 30-44 with
promos
• And on the Pizza Hut app…
• Add a game that user can play during
delivery time #lovetoplay
• Research: 62% of Pizza Hut consumers
enjoy online games
• “Send your love”  send a pizza to
someone you care about
Owned Media: Instagram Revamp
• Pizza Hut’s Instagram page lacks
variety and consumer engagement
• We will incorporate our campaign
theme into the profile to
demonstrate “Pizza Love”
• #PizzaLove
• #HutLover
• Contests to be featured
• Display celebs and users loving
pizza
Earned/Paid Media: Philanthropic Stunt Execution
From Thanksgiving to Christmas we will running a
donation based feature on website/app
• Donate $1 (slice), $5 (small pie), or $10 (large pie),
to shelters through World Hunger Relief
• “send your love” to those in need
• On Dec 23rd; reveal our Time Square billboard
where a digital pizza heart and will grow as people
keep donating
• In Time Square volunteers will be accepting credit
card donations through iPad server
• Digital ordering discount coupons will be handed
out
• Rationale: 85% of millennials correlate purchasing
decision to brand’s social good effort
Below the Line Tactics
• Coupons:
• Direct Mail, Email, and loyalty program “hut lovers”
• Gift-With-Purchase:
• When “sending your love” through app, a small gift bag of
Hershey kisses will be given
• Loyalty Program:
• Heavy promoting Hut Lovers through social media,
microsite, and website
• Special deals for those who really love Pizza Hut
Special Holiday Ads & Promotions
4th of July:
Christmas/New Years:
• Include a discounted Pizza in your
BBQ with direct marketing coupons
via mail and email; #LoveUSA
• Reveal Time Square interactive pizza
heart billboard
• Volunteers will take donations to help fill
up the World Hunger Relief pizza heart
Labor Day weekend:
• Heavier TV advertising because
fall shows will be returning
Black Friday:
• Heavy on direct mail/email coupons
Halloween:
• Customized Halloween pizza topping
shaped like pumpkins and skulls
• Only available through online ordering
• Promote this idea on TV, radio, and
social media
• #HalloweenPizzaLove
Thanksgiving:
• Heavy TV and internet advertising (Hulu)
• Begin advertising World Hunger Relief
partnership
• Hershey’s chocolate kisses pizza  10%
donation to WHR
Overall Media Plan Execution
Allocation Breakdown:
1. TV: $33.4 Million
2. Online: $6.3 Million
3. Interactive Time Sq. Billboard: $1.5 Million
4. Magazine: $5,480,400
5. Direct Mail/Email: $500,000
6. Radio: $300,000
Nationalizing:
1. South 37%: $18,500,000
2. West 23%: $11,500,000
3. Midwest 22%: $11,000,000
4. Northeast 18%: $9,000,000
6 mo. Advertising Flow Chart
Budget
New Overall Sales - Current Overall Sales= Increase in Sales
6.594 Billion - 5.7 Billion = 894 Million
Yum Brands Profit Margin = 10.83 %
894 x 0.1083= 97 Million
ROI=(97 Million- 52 Million)/52 Million= 0.87 => 87 % ROI
Media Plan Total Budget:
$46 Million
Concluding Remarks
• Use constant theme of love to
attract target market and reveal a
new, thoughtful and positive
campaign
• Push online ordering incentives to
targets who are at higher tech
propensity
• Re-vamp social media platforms
• Allocate total media plans
consistent to target’s habits and
demographic
And most importantly…
Boost digital sales!