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University of Minnesota Duluth
LabovitzSchoolofBusinessandEconomics
University of Minnesota Duluth
3
PIZZA HUT PIZZA WAS
THE FIRST THING EVER
PURCHASED ONLINE.LIKE
EVER. BEFORE SHOES,
BEFORE BOOKS, BEFORE
ANYTHING ELSE
“
EXECUTIVE
SUMMARYThe growth of mobile ordering, has caused the pizza market to become increasingly competitive, with customers
having options at their fingertips. Today digital orders represent a two billion dollar a year opportunity for Pizza Hut,
and our campaign takes aim at grabbing this opportunity.
The key to gaining, and retaining customers that order digitally is finding where these customers get their information
and how we can position Pizza Hut as the best digital ordering experience. By providing a flawless experience that
resonates with customers Pizza Hut can again become the leader in the digital ordering platform.
Our implementation plan will be focused primarily around growing our brand with millennials. We have prepared an
extensive plan that targets where millennials interact and get their information. We use social media as a large part
of our campaign, because we are targeting social media savvy millennials and focusing on growing digitally.
We have created an integrated marketing campaign that resonates with the spontaneous, the go-getters, those who
live for NOW, and connects them with the “Flavor of Now.”
4 5
1
3
7
OUR
OBJECTIVE
PRELIMINARY
RESEARCH
TARGET
MARKET
4 5
PROMOTIONAL
PLANNING
MULTI
MEDIA
BUDGET
BREAKDOWN
13
17
31
2
OBJECTIVES
PURPOSE
INTENTIONS
DESIGN
GOALS
AIM
PIZZA
BREAK
1. POSITION PIZZA HUT AS THE TOP CHOICE
FOR CUSTOMERS WHO ORDER PIZZA DIGITALLY
2. PROVIDE THE GREATEST DIGITAL ORDERING
EXPERIENCE IN THE CATEGORY
3. REACH THE TARGET OF 75% OF ALL ORDERS
DONE ONLINE & MOBILE BY THE END OF 2015
THE PURPOSE OF THIS ADVERTISING
CAMPAIGN IS TO ACCOMPLISH PIZZA HUT’S
3 PRIMARY OBJECTIVES
4
RESEARCH
OBSERVATION
EXAMINATION
PIZZA
EXPLORATIVE
BREAK
HISTORYHISTORY
-In 1958, Frank and Dan Carney created
Pizza Hut
-$600 dollars was originally borrowed from
their mother to start up the first pizza hut
in Wichita Kansas.
-Over the next fifteen years, Pizza Hut
quickly becomes the biggest pizza company
on the planet.
5 6
-From 2006 to 2012 spending on pizzas has dropped by 2.1 Billion dollars in the U.S.
-57% of U.S. adult smartphone owners who see in-app ads think that the ads interrupt their
user experience.
-Mobile users are becoming averse to blatant ads while actively participating in ad campaigns
that have viral content.
-Rather than information about products consumers want a story, something that they can
feel good about.
-43% of consumers say they are more likely to make a purchase from a company that is
viewed as “good”.
-Domino’s holds a strong brand image with very loyal customers making it easy for them
to introduce new products.
-One of Papa John’s strengths is their high quality ingredients with an available
description of each ingredient. This creates trust with the customers.
INDUSTRY EXTERNAL ANALYSIS
COMPETITIVE ANALYSIS
-Pizzerias in America range from sit-down cuisine to full on buffet.
-A Growing trend in America is healthy food and a healthy lifestyle,
as well as the use of mobile applications.
-Pizza Hut has improved its health conscious image by
offering more quality and healthy options.
-Pizza Hut has also expanded its portfolio by incorporating Tuscani pastas and
oven-baked sandwiches as well.
-Consumers in the U.S. spent approximately 10 billion U.S. dollars
on pizza delivery in 2014, compared to 9.6 billion in 2013 and 2012.
-The average American consumes about 6,000 slices of pizza in a lifetime.
-A third of the population eats pizza at least once a week.
88
TARGET
MARKET
NEED
FEELAGELIFESTYLE
PIZZA BREAK
DEMOGRAPHIC
Children in the home- 43% of millennial households include
children. (*Pizza Casual Dining 15% higher for Millennials with
children)
Education- around 26% of Millennials have a bachelor’s degree
and 9.5% have a graduate or professional degree
Diversity- Millennials are the most diverse adult population. About
19.4% of Millennials are Hispanic, 14.8% are Black, and 5.2% are
Asian.
Employment: As of December 2013, 10.3% of Millennials aged
20-24 and 6.8% of Millennials aged 25-34 were unemployed
compared with the 6.5% national average.
MILLENIAL
QUICK FACTS
9 10
The average millennial spends 5.4 hours on social media everyday, and checks their
phone 43 times everyday. The top 3 applications used by millennials are Facebook,
Snapchat and Instagram. Most millennials' social media use falls into one of two
categories: "Exuberants," active users who take pictures of and blog about everything
and are constantly projecting themselves and their experiences out into the world, and
"collectors," the 80-plus percent of social media users who passively take in the
vicarious experiences of others. While collectors are the most receptive to marketing
messages, their lack of engagement means they're less likely to spread your brand
message. The most ideal times to reach millennials via social media are from 4-6 pm.
Millennials top interests can be categorized as social networking, traveling, photography,
food/cooking, music/concerts, tattoos, dancing, reading, football/soccer, swimming and
biking. Millennials want to take in everything the world has to offer. They strongly value
ethnic diversity, especially in the foods that they eat. Millennials also value convenience,
luxury and sustainability. Millennials desire creativity and innovation. 10 Things
Millennials want: Chill places, Pouches, Mason Jars, Kale, Customizable Food, Sriracha,
“Artisanal”, Small plates, Mea, Fermented Things, Selfies.
Millennials are 18-34 year olds. Millennials account for almost 80
million people (24.5% of the American population). Millennials
make up a market segment bound together by similar ages and
shared experiences. The most radical difference between
millennials and other generations are found not in values that
they hold, but in the rise of cultural diversity and the ways in
which they interact with technology, which has shaped their
communities and their interactions with organizations.
Organizations seeking to that attract millennials to their brand
will create messages that appeal to millennials specific interests,
and create utility with convenience through the use of technology.
MILLENIAL
DEMOGRAPHICS
Millennials are 18-34 year olds. Millennials account for almost 80
DEMOGRAPHICSDEMOGRAPHICS
MILLENIAL
PSYCHOGRAPHICS
11 12
Sex - MaleAge - 20
Lives - Downtown Metropolitan area
Single/ no childrenFull time University student
Employed part timeIncome: ~$20,000Favorite brands: Nike, Google, You-
tube
Top 3 apps: instagram, snapchat,
twitter
Phone: AndroidLargest stressor: Finances
Values: Passion, Diversity, Discovery
Social media consumption: 5.5 hours
per day
Considers himself a “foodie”
Sex- Female
Age- 32
Lives- in a suburb
Family- 1 child/married
Employment- Full time at marketing firm
Graduated 4 year college
Income (individual)- $51,000
Favorite Brands- Nike, Apple, Amazon.com
Top 3 apps- Facebook, Pinterest, Twitter
Values- Family, Sharing, Family
Phone type- iPhone user
Social Media Consumption- Spends less than
4 hours on social media per day
YOUNGER MILLENNIAL MODEL OLDER MILLENNIAL MODEL
14
PROMOTIONS
ADS
DISCOUNTING
SELLING
SPECIAL
DEAL
BREAK
PIZZAPIZZA
-The contestant will follow, share, and tweet for a chance to win a free pizza
party for your guests when ordering on the app
-Fly out the ten winners, each person gets to bring 3 guests to Dick Clark’s
Rockin New Year’s Eve Bash
-You and your friends will recieve:
-First Class airfare through American Airlines to Los Angeles
-7 night Stay at the Ritz Carlton Hotel Suite
-$4,500 to a charity of their choice
NEW YEARS EVE
15 1615 16
-Tweet @PizzaHut
with the hashtag
#ThankfulForNOW
with what you are
thankful for and
Pizza Hut will direct
message 60,000
random twitter users
with a coupon code
for a buy-one-get-
one free when you
order a large
specialty pizza on
the mobile app.
“WE’RE THANKFUL FOR YOU!”“WE’RE THANKFUL FOR YOU!”
THANKSGIVING#ThankfulForNOW
#ThankfulForNOW
#ThankfulForNOW
#ThankfulForNOW
-3rd biggest day of the year for pizza
-Go into your local participating Pizza Hut,
say “Trick or Treat” and receive your coupon
-Enter the code on the Pizza Hut mobile app,
valid November 1, through December 31.
-Every code is a winner, 330,000 codes
LIMIT ONE CODE PER FAMILY
HALLOWEEN
TRICK OR TREAT AT
PIZZA HUT!
18
MEDIA
REPORTADS
VIRALWEB
CHANNELBLOGGING
PIZZA BREAK
With the Facebook page already in place, the company could
increase their promotional sales with coupon codes to be used
on the mobile app, reimbursement for liking the page with free
items, and automatically linking to the the app store so that
members can download the free app. Pizza Hut can also use
Facebook to interact with customers, asking them to share photos
of their favorite thing to do while eating Pizza Hut pizza, and use
the platform to receive customer feedback.
-88% of Millennials use Facebook on a daily basis
-54% of Facebook users who liked a company’s Facebook page
were much more likely to make purchases from the brand
WHY
HOW
FACEBOOK
19 2020
Pizza Hut can use Twitter as an interactive
platform to engage their target audience.
They can run promotions such as having
followers vote for their favorite pizza
flavors using hashtags. They can also
create exclusive Twitter deals based off
of interactions with their followers and
facilitate strong customer relations.
TWITTER
WHY
HOW
-Twitter has 288 million monthly active users
-Millennials are the largest generation using Twitter
-Usage by millennials increased 6% from 2013 to 2014
-31% of 18-29 year olds who are online use Twitter
Pizza Hut can use Twitter as an interactive
-Twitter has 288 million monthly active users
-Millennials are the largest generation using Twitter
-Usage by millennials increased 6% from 2013 to 2014
-31% of 18-29 year olds who are online use Twitter
21 22
SNAPCHAT-1/3 of all millennials use the app actively
-100 million monthly active users,
-2/3 of millenials use snapchat every day
“What makes SnapChat better than other
social media platform’s is the required
user engagement, in order to view a “snap”
the user must hold his or her finger
down on the screen. This increases
the chances that the “snap” is actually
being viewed and digested”
WHY
TRAVIS BERNARD
-2/3 of millenials use snapchat every day
HOW
Pizza Hut can create snap stories that show
discount codes that will only be available
to their snapchat followers and ultimately
lead them to the free mobile app.
23 2423 24
PAID MEDIA
FACEBOOK TWITTERSNAPCHAT
When Pizza Hut uses Twitter they should
use sponsored posts to drive more
consumers to their mobile app. When using
the promoted tweets on Twitter it only
costs $0.50-$4.00 per engagement. These
tweets should be happening on a daily
basis. The first two cost between $.50
– $4.00 per engagement, and promoted
trends will cost you $200,000 per day. With
these tweets it will contain a call-to-action
message to the consumers that will bring
them to the Pizza Hut mobile app.
With Facebook’s boosted posts and Ad
creation it varies greatly depending on
the amount of consumers we are trying to
reach. It would cost Pizza Hut $23 million
total ($128,000 per day) for advertising
on Facebook and this would reach 6-12
million people per day. On average for food
and beverage companies of large scale “pay
on average CPC of $0.21 and CPM of $0.65.
If Pizza Hut has an event that they are
sponsoring they can create a “paid for”
story, that would cost Pizza Hut $750,000
to reach 16.5 (55% that use SnapChat
daily) million people for a 24 hour time
period. Snapchat is the the #1 for user
engagement. We recommend Pizza Hut
be doing these stories when there is an
event that they are sponsoring during the
campaign time period. (Sloane, Garrett).
When Pizza Hut uses Twitter they shouldWhen Pizza Hut uses Twitter they should
use sponsored posts to drive moreuse sponsored posts to drive more
consumers to their mobile app. When usingconsumers to their mobile app. When using
the promoted tweets on Twitter it onlythe promoted tweets on Twitter it only
YOUTUBE HULU
-YouTube advertisers use a pay-per-view method for
their ad platform, with an average cost-per-view
between $.10 - $.30.
-You can use it for direct response. This means you can
actually drive sales or signups with YouTube ads. People
often treat video advertising as a branding play, but
with the correct targeting, you can actually drive sales
at cost-effective prices.
-With YouTube’s massive user base, approximately 89
million people in the United States alone are going to
watch 1.2 billion online videos on any given day.
YouTube’s mobile app counts for 20% of the total views
-Hulu shows users an average of 82.3 ads per month
-YouTube and other Google-owned sites only
show an average of 32.3 ads per viewer
-Many shows on Hulu Plus include ads in order to reduce
the monthly subscription price of the service.
-Hulu Plus differs from its competitors by offering
current season episodes of popular shows.
-Not all shows on Hulu Plus are ad-supported
-Hulu ad rates are in the $25 to $30 CPM range (cost
per one thousand impressions) compared to NBC.com,
which is $35+. (NBC co-owns Hulu with Fox.)
25 26
27 28
-Pandora’s precision targeting platform requires all listeners to
register with their age, gender, and zip code.
-Interests and psychographics are provided, pinpointing
advertisements to the intended audience.
-Pandora has 30 second video and audio ads.
The user is typically shown seven display ads per listener hour.
-With 2.5 audio ads per hour, listeners can click on the ads to
download the Pizza Hut app or be directed to online ordering.
-Each ad should include a call-to-action to move the target market
to Pizza Hut’s digital ordering platforms.
-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
PANDORA SPOTIFY
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
27
-Pandora’s precision targeting platform requires all listeners to
-Interests and psychographics are provided, pinpointing
The user is typically shown seven display ads per listener hour.
-With 2.5 audio ads per hour, listeners can click on the ads to
download the Pizza Hut app or be directed to online ordering.
SPOTIFYSPOTIFYSPOTIFY
27
-Each ad should include a call-to-action to move the target market
-Pandora’s precision targeting platform requires all listeners to
-Each ad should include a call-to-action to move the target market
-“Branded Playlists” are Spotify playlists that contain a-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.branded cover art image and text.
-Text within the Branded Playlists can contain links to-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching thesecond video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.commercial, Spotify users can unlock 30 minutes of ad-free listening.
SPOTIFYSPOTIFY
-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
SPOTIFY
-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.
-“Streamers are twice as likely as non-streamers to advocate-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching thesecond video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-“Branded Playlists” are Spotify playlists that contain a
branded cover art image and text.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
-“Branded Playlists” are Spotify playlists that contain a
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Branded Playlists” are Spotify playlists that contain a
-Text within the Branded Playlists can contain links to
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
28
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-Text within the Branded Playlists can contain links to
Pizza Hut’s Online Menu and Ordering System.
-“Streamers are twice as likely as non-streamers to advocate
for and feel emotionally connect to brands.”
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-“Streamers are twice as likely as non-streamers to advocate
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-“Streamers are twice as likely as non-streamers to advocate
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
-“Streamers are twice as likely as non-streamers to advocate
-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15
second video for Spotify listeners and in return for watching the
commercial, Spotify users can unlock 30 minutes of ad-free listening.
29 30
SEARCH RETARGETING
Remarketing is a popular marketing tool used by Google to display your ad on other
websites. For example, after someone has visited your website and leaves to continue
browsing the web, Google Remarketing allows you to connect with your audience on
other webpages. Another feature is to display specific products that people viewed on
your website throughout web pages they visit. As far as a budget, Google allows you to
set your limit. Some marketing strategies include maximizing clicks, search page location
of the ad, outranking domain competition, etc. all through the use of the “flexible bid
strategies.” Through the use of flexible bid strategies, Google will automatically create a
plan for your campaign to give you the best results.
-Incentives to use the Pizza Hut app could
include implementing in app games and
offering coupons or rewards if they are
successful in games (high score, amount
of games played)
-To compete with the likes of Domino’s
Pizza Tracker, Pizza Hut could have a game
that comes up while the customer is
waiting for their order
-Implement a loyalty program inside the
app: have a digital pizza and every time
you order a pizza online you get a slice of
the pizza. After you get 8 slices of
digital pizza you get one free pizza
-Pizza Hut was the first pizza chain to get
an iPhone app” 2009
-On average, Americans spend $9 billion
dollars through online ordering
-An online customer is more likely to
re-order within 60 days
-The mobile ordering now makes up about
23% of online food orders.
THE APP
WHY
HOW
-Incentives to use the Pizza Hut app could
include implementing in app games and
THE APP
you order a pizza online you get a slice of
the pizza. After you get 8 slices of
digital pizza you get one free pizza
-The mobile ordering now makes up about-The mobile ordering now makes up about
23% of online food orders.23% of online food orders.
3232
BUDGET
PIZZA BREAK
SPENDSPEND
ALLOCATECOST
FUNDING
MONEYPLAN&
Promotions 4.35% $5,002,500
Snapchat 0.65% $747,500
Facebook 20% $23,000,000
Twitter 20% $23,000,000
Youtube 10% $11,500,000
Instagram 5% $5,750,000
Spotify 10% $11,500,000
Pandora 10% $11,500,000
Hulu 10% $11,500,000
Search Retargeting 10% $11,500,000
Totals 100% $115,000,000
Total Budget for 6 month campaign July 1, 2015 - December 31, 2015
3333
MEDIAEmily Lacount
Jenny Burns
Christina Nibbe
Daniel Lawson
Nate Germscheid
Eric Kline
Nick King Strong
Jack Young
Mitchel Grohs
Dylan Koltz Hale
Amy Terrio
OFFICERSAlex Britz - President
Alyssa Birk - Vice President
Paige Nagel - Design
Sierra Johnson - Creative
Ezra McPhail - Media
Emily Baago - Secretary
CREATIVEDevin Lenzmeier
Collin Watke
Melissa Chyrklund
Ben Vaupel
Kyle Norton
Nate Schammel

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Final Pizza Hut Plans Book

  • 1. University of Minnesota Duluth LabovitzSchoolofBusinessandEconomics University of Minnesota Duluth
  • 2. 3 PIZZA HUT PIZZA WAS THE FIRST THING EVER PURCHASED ONLINE.LIKE EVER. BEFORE SHOES, BEFORE BOOKS, BEFORE ANYTHING ELSE “ EXECUTIVE SUMMARYThe growth of mobile ordering, has caused the pizza market to become increasingly competitive, with customers having options at their fingertips. Today digital orders represent a two billion dollar a year opportunity for Pizza Hut, and our campaign takes aim at grabbing this opportunity. The key to gaining, and retaining customers that order digitally is finding where these customers get their information and how we can position Pizza Hut as the best digital ordering experience. By providing a flawless experience that resonates with customers Pizza Hut can again become the leader in the digital ordering platform. Our implementation plan will be focused primarily around growing our brand with millennials. We have prepared an extensive plan that targets where millennials interact and get their information. We use social media as a large part of our campaign, because we are targeting social media savvy millennials and focusing on growing digitally. We have created an integrated marketing campaign that resonates with the spontaneous, the go-getters, those who live for NOW, and connects them with the “Flavor of Now.”
  • 4. 2 OBJECTIVES PURPOSE INTENTIONS DESIGN GOALS AIM PIZZA BREAK 1. POSITION PIZZA HUT AS THE TOP CHOICE FOR CUSTOMERS WHO ORDER PIZZA DIGITALLY 2. PROVIDE THE GREATEST DIGITAL ORDERING EXPERIENCE IN THE CATEGORY 3. REACH THE TARGET OF 75% OF ALL ORDERS DONE ONLINE & MOBILE BY THE END OF 2015 THE PURPOSE OF THIS ADVERTISING CAMPAIGN IS TO ACCOMPLISH PIZZA HUT’S 3 PRIMARY OBJECTIVES
  • 5. 4 RESEARCH OBSERVATION EXAMINATION PIZZA EXPLORATIVE BREAK HISTORYHISTORY -In 1958, Frank and Dan Carney created Pizza Hut -$600 dollars was originally borrowed from their mother to start up the first pizza hut in Wichita Kansas. -Over the next fifteen years, Pizza Hut quickly becomes the biggest pizza company on the planet.
  • 6. 5 6 -From 2006 to 2012 spending on pizzas has dropped by 2.1 Billion dollars in the U.S. -57% of U.S. adult smartphone owners who see in-app ads think that the ads interrupt their user experience. -Mobile users are becoming averse to blatant ads while actively participating in ad campaigns that have viral content. -Rather than information about products consumers want a story, something that they can feel good about. -43% of consumers say they are more likely to make a purchase from a company that is viewed as “good”. -Domino’s holds a strong brand image with very loyal customers making it easy for them to introduce new products. -One of Papa John’s strengths is their high quality ingredients with an available description of each ingredient. This creates trust with the customers. INDUSTRY EXTERNAL ANALYSIS COMPETITIVE ANALYSIS -Pizzerias in America range from sit-down cuisine to full on buffet. -A Growing trend in America is healthy food and a healthy lifestyle, as well as the use of mobile applications. -Pizza Hut has improved its health conscious image by offering more quality and healthy options. -Pizza Hut has also expanded its portfolio by incorporating Tuscani pastas and oven-baked sandwiches as well. -Consumers in the U.S. spent approximately 10 billion U.S. dollars on pizza delivery in 2014, compared to 9.6 billion in 2013 and 2012. -The average American consumes about 6,000 slices of pizza in a lifetime. -A third of the population eats pizza at least once a week.
  • 7. 88 TARGET MARKET NEED FEELAGELIFESTYLE PIZZA BREAK DEMOGRAPHIC Children in the home- 43% of millennial households include children. (*Pizza Casual Dining 15% higher for Millennials with children) Education- around 26% of Millennials have a bachelor’s degree and 9.5% have a graduate or professional degree Diversity- Millennials are the most diverse adult population. About 19.4% of Millennials are Hispanic, 14.8% are Black, and 5.2% are Asian. Employment: As of December 2013, 10.3% of Millennials aged 20-24 and 6.8% of Millennials aged 25-34 were unemployed compared with the 6.5% national average. MILLENIAL QUICK FACTS
  • 8. 9 10 The average millennial spends 5.4 hours on social media everyday, and checks their phone 43 times everyday. The top 3 applications used by millennials are Facebook, Snapchat and Instagram. Most millennials' social media use falls into one of two categories: "Exuberants," active users who take pictures of and blog about everything and are constantly projecting themselves and their experiences out into the world, and "collectors," the 80-plus percent of social media users who passively take in the vicarious experiences of others. While collectors are the most receptive to marketing messages, their lack of engagement means they're less likely to spread your brand message. The most ideal times to reach millennials via social media are from 4-6 pm. Millennials top interests can be categorized as social networking, traveling, photography, food/cooking, music/concerts, tattoos, dancing, reading, football/soccer, swimming and biking. Millennials want to take in everything the world has to offer. They strongly value ethnic diversity, especially in the foods that they eat. Millennials also value convenience, luxury and sustainability. Millennials desire creativity and innovation. 10 Things Millennials want: Chill places, Pouches, Mason Jars, Kale, Customizable Food, Sriracha, “Artisanal”, Small plates, Mea, Fermented Things, Selfies. Millennials are 18-34 year olds. Millennials account for almost 80 million people (24.5% of the American population). Millennials make up a market segment bound together by similar ages and shared experiences. The most radical difference between millennials and other generations are found not in values that they hold, but in the rise of cultural diversity and the ways in which they interact with technology, which has shaped their communities and their interactions with organizations. Organizations seeking to that attract millennials to their brand will create messages that appeal to millennials specific interests, and create utility with convenience through the use of technology. MILLENIAL DEMOGRAPHICS Millennials are 18-34 year olds. Millennials account for almost 80 DEMOGRAPHICSDEMOGRAPHICS MILLENIAL PSYCHOGRAPHICS
  • 9. 11 12 Sex - MaleAge - 20 Lives - Downtown Metropolitan area Single/ no childrenFull time University student Employed part timeIncome: ~$20,000Favorite brands: Nike, Google, You- tube Top 3 apps: instagram, snapchat, twitter Phone: AndroidLargest stressor: Finances Values: Passion, Diversity, Discovery Social media consumption: 5.5 hours per day Considers himself a “foodie” Sex- Female Age- 32 Lives- in a suburb Family- 1 child/married Employment- Full time at marketing firm Graduated 4 year college Income (individual)- $51,000 Favorite Brands- Nike, Apple, Amazon.com Top 3 apps- Facebook, Pinterest, Twitter Values- Family, Sharing, Family Phone type- iPhone user Social Media Consumption- Spends less than 4 hours on social media per day YOUNGER MILLENNIAL MODEL OLDER MILLENNIAL MODEL
  • 10. 14 PROMOTIONS ADS DISCOUNTING SELLING SPECIAL DEAL BREAK PIZZAPIZZA -The contestant will follow, share, and tweet for a chance to win a free pizza party for your guests when ordering on the app -Fly out the ten winners, each person gets to bring 3 guests to Dick Clark’s Rockin New Year’s Eve Bash -You and your friends will recieve: -First Class airfare through American Airlines to Los Angeles -7 night Stay at the Ritz Carlton Hotel Suite -$4,500 to a charity of their choice NEW YEARS EVE
  • 11. 15 1615 16 -Tweet @PizzaHut with the hashtag #ThankfulForNOW with what you are thankful for and Pizza Hut will direct message 60,000 random twitter users with a coupon code for a buy-one-get- one free when you order a large specialty pizza on the mobile app. “WE’RE THANKFUL FOR YOU!”“WE’RE THANKFUL FOR YOU!” THANKSGIVING#ThankfulForNOW #ThankfulForNOW #ThankfulForNOW #ThankfulForNOW -3rd biggest day of the year for pizza -Go into your local participating Pizza Hut, say “Trick or Treat” and receive your coupon -Enter the code on the Pizza Hut mobile app, valid November 1, through December 31. -Every code is a winner, 330,000 codes LIMIT ONE CODE PER FAMILY HALLOWEEN TRICK OR TREAT AT PIZZA HUT!
  • 12. 18 MEDIA REPORTADS VIRALWEB CHANNELBLOGGING PIZZA BREAK With the Facebook page already in place, the company could increase their promotional sales with coupon codes to be used on the mobile app, reimbursement for liking the page with free items, and automatically linking to the the app store so that members can download the free app. Pizza Hut can also use Facebook to interact with customers, asking them to share photos of their favorite thing to do while eating Pizza Hut pizza, and use the platform to receive customer feedback. -88% of Millennials use Facebook on a daily basis -54% of Facebook users who liked a company’s Facebook page were much more likely to make purchases from the brand WHY HOW FACEBOOK
  • 13. 19 2020 Pizza Hut can use Twitter as an interactive platform to engage their target audience. They can run promotions such as having followers vote for their favorite pizza flavors using hashtags. They can also create exclusive Twitter deals based off of interactions with their followers and facilitate strong customer relations. TWITTER WHY HOW -Twitter has 288 million monthly active users -Millennials are the largest generation using Twitter -Usage by millennials increased 6% from 2013 to 2014 -31% of 18-29 year olds who are online use Twitter Pizza Hut can use Twitter as an interactive -Twitter has 288 million monthly active users -Millennials are the largest generation using Twitter -Usage by millennials increased 6% from 2013 to 2014 -31% of 18-29 year olds who are online use Twitter
  • 14. 21 22 SNAPCHAT-1/3 of all millennials use the app actively -100 million monthly active users, -2/3 of millenials use snapchat every day “What makes SnapChat better than other social media platform’s is the required user engagement, in order to view a “snap” the user must hold his or her finger down on the screen. This increases the chances that the “snap” is actually being viewed and digested” WHY TRAVIS BERNARD -2/3 of millenials use snapchat every day HOW Pizza Hut can create snap stories that show discount codes that will only be available to their snapchat followers and ultimately lead them to the free mobile app.
  • 15. 23 2423 24 PAID MEDIA FACEBOOK TWITTERSNAPCHAT When Pizza Hut uses Twitter they should use sponsored posts to drive more consumers to their mobile app. When using the promoted tweets on Twitter it only costs $0.50-$4.00 per engagement. These tweets should be happening on a daily basis. The first two cost between $.50 – $4.00 per engagement, and promoted trends will cost you $200,000 per day. With these tweets it will contain a call-to-action message to the consumers that will bring them to the Pizza Hut mobile app. With Facebook’s boosted posts and Ad creation it varies greatly depending on the amount of consumers we are trying to reach. It would cost Pizza Hut $23 million total ($128,000 per day) for advertising on Facebook and this would reach 6-12 million people per day. On average for food and beverage companies of large scale “pay on average CPC of $0.21 and CPM of $0.65. If Pizza Hut has an event that they are sponsoring they can create a “paid for” story, that would cost Pizza Hut $750,000 to reach 16.5 (55% that use SnapChat daily) million people for a 24 hour time period. Snapchat is the the #1 for user engagement. We recommend Pizza Hut be doing these stories when there is an event that they are sponsoring during the campaign time period. (Sloane, Garrett). When Pizza Hut uses Twitter they shouldWhen Pizza Hut uses Twitter they should use sponsored posts to drive moreuse sponsored posts to drive more consumers to their mobile app. When usingconsumers to their mobile app. When using the promoted tweets on Twitter it onlythe promoted tweets on Twitter it only
  • 16. YOUTUBE HULU -YouTube advertisers use a pay-per-view method for their ad platform, with an average cost-per-view between $.10 - $.30. -You can use it for direct response. This means you can actually drive sales or signups with YouTube ads. People often treat video advertising as a branding play, but with the correct targeting, you can actually drive sales at cost-effective prices. -With YouTube’s massive user base, approximately 89 million people in the United States alone are going to watch 1.2 billion online videos on any given day. YouTube’s mobile app counts for 20% of the total views -Hulu shows users an average of 82.3 ads per month -YouTube and other Google-owned sites only show an average of 32.3 ads per viewer -Many shows on Hulu Plus include ads in order to reduce the monthly subscription price of the service. -Hulu Plus differs from its competitors by offering current season episodes of popular shows. -Not all shows on Hulu Plus are ad-supported -Hulu ad rates are in the $25 to $30 CPM range (cost per one thousand impressions) compared to NBC.com, which is $35+. (NBC co-owns Hulu with Fox.) 25 26
  • 17. 27 28 -Pandora’s precision targeting platform requires all listeners to register with their age, gender, and zip code. -Interests and psychographics are provided, pinpointing advertisements to the intended audience. -Pandora has 30 second video and audio ads. The user is typically shown seven display ads per listener hour. -With 2.5 audio ads per hour, listeners can click on the ads to download the Pizza Hut app or be directed to online ordering. -Each ad should include a call-to-action to move the target market to Pizza Hut’s digital ordering platforms. -“Branded Playlists” are Spotify playlists that contain a branded cover art image and text. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. PANDORA SPOTIFY -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 27 -Pandora’s precision targeting platform requires all listeners to -Interests and psychographics are provided, pinpointing The user is typically shown seven display ads per listener hour. -With 2.5 audio ads per hour, listeners can click on the ads to download the Pizza Hut app or be directed to online ordering. SPOTIFYSPOTIFYSPOTIFY 27 -Each ad should include a call-to-action to move the target market -Pandora’s precision targeting platform requires all listeners to -Each ad should include a call-to-action to move the target market -“Branded Playlists” are Spotify playlists that contain a-“Branded Playlists” are Spotify playlists that contain a branded cover art image and text.branded cover art image and text. -Text within the Branded Playlists can contain links to-Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System.Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching thesecond video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening.commercial, Spotify users can unlock 30 minutes of ad-free listening. SPOTIFYSPOTIFY -“Branded Playlists” are Spotify playlists that contain a branded cover art image and text. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. SPOTIFY -“Branded Playlists” are Spotify playlists that contain a branded cover art image and text. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Branded Playlists” are Spotify playlists that contain a branded cover art image and text. -“Streamers are twice as likely as non-streamers to advocate-“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.”for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching thesecond video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.”for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -“Branded Playlists” are Spotify playlists that contain a branded cover art image and text. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 -“Branded Playlists” are Spotify playlists that contain a -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Branded Playlists” are Spotify playlists that contain a -Text within the Branded Playlists can contain links to -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the 28 commercial, Spotify users can unlock 30 minutes of ad-free listening. -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15-Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -Text within the Branded Playlists can contain links to Pizza Hut’s Online Menu and Ordering System. -“Streamers are twice as likely as non-streamers to advocate for and feel emotionally connect to brands.” -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -“Streamers are twice as likely as non-streamers to advocate -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -“Streamers are twice as likely as non-streamers to advocate -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening. -“Streamers are twice as likely as non-streamers to advocate -Spotify has “Sponsored Sessions” where Pizza Hut can create a short 15 second video for Spotify listeners and in return for watching the commercial, Spotify users can unlock 30 minutes of ad-free listening.
  • 18. 29 30 SEARCH RETARGETING Remarketing is a popular marketing tool used by Google to display your ad on other websites. For example, after someone has visited your website and leaves to continue browsing the web, Google Remarketing allows you to connect with your audience on other webpages. Another feature is to display specific products that people viewed on your website throughout web pages they visit. As far as a budget, Google allows you to set your limit. Some marketing strategies include maximizing clicks, search page location of the ad, outranking domain competition, etc. all through the use of the “flexible bid strategies.” Through the use of flexible bid strategies, Google will automatically create a plan for your campaign to give you the best results. -Incentives to use the Pizza Hut app could include implementing in app games and offering coupons or rewards if they are successful in games (high score, amount of games played) -To compete with the likes of Domino’s Pizza Tracker, Pizza Hut could have a game that comes up while the customer is waiting for their order -Implement a loyalty program inside the app: have a digital pizza and every time you order a pizza online you get a slice of the pizza. After you get 8 slices of digital pizza you get one free pizza -Pizza Hut was the first pizza chain to get an iPhone app” 2009 -On average, Americans spend $9 billion dollars through online ordering -An online customer is more likely to re-order within 60 days -The mobile ordering now makes up about 23% of online food orders. THE APP WHY HOW -Incentives to use the Pizza Hut app could include implementing in app games and THE APP you order a pizza online you get a slice of the pizza. After you get 8 slices of digital pizza you get one free pizza -The mobile ordering now makes up about-The mobile ordering now makes up about 23% of online food orders.23% of online food orders.
  • 19. 3232 BUDGET PIZZA BREAK SPENDSPEND ALLOCATECOST FUNDING MONEYPLAN& Promotions 4.35% $5,002,500 Snapchat 0.65% $747,500 Facebook 20% $23,000,000 Twitter 20% $23,000,000 Youtube 10% $11,500,000 Instagram 5% $5,750,000 Spotify 10% $11,500,000 Pandora 10% $11,500,000 Hulu 10% $11,500,000 Search Retargeting 10% $11,500,000 Totals 100% $115,000,000 Total Budget for 6 month campaign July 1, 2015 - December 31, 2015
  • 20. 3333 MEDIAEmily Lacount Jenny Burns Christina Nibbe Daniel Lawson Nate Germscheid Eric Kline Nick King Strong Jack Young Mitchel Grohs Dylan Koltz Hale Amy Terrio OFFICERSAlex Britz - President Alyssa Birk - Vice President Paige Nagel - Design Sierra Johnson - Creative Ezra McPhail - Media Emily Baago - Secretary CREATIVEDevin Lenzmeier Collin Watke Melissa Chyrklund Ben Vaupel Kyle Norton Nate Schammel