Pizza Hut is seeking new creative ideas from agencies and may bring on another shop in addition to or instead of its current lead agency, Deutsch. This comes after Pizza Hut's recent branding initiative did not meet sales goals. The document provides demographic, psychographic, and interest data on Pizza Hut's target audiences and major competitors to help agencies develop competitive analyses, audience insights, and identify trends to address in new pitch materials.
2. Yum Brands' Pizza Hut has recently been reaching out to agencies for creative ideas.
Sources said that the brand contacted a select number of agencies for brand ideas and a potential
assignment, but it is not clear whether the winning agency will execute just the requested brand
idea, be added to the roster along with the current lead agency, Deutsch, or take the entire business.
No external consultant is overseeing the process.
Optimedia is currently Pizza Hut's media agency, though it's believed that relationship will not be
affected.
Pizza Hut did not respond to multiple requests for comment. Deutsch declined to comment.
It looks like, at least in the near term, Pizza Hut intends to keep Deutsch on its roster, while adding
another shop to the fold, and potentially setting up shops to compete in jump balls for creative
executions.
This may be bad news for Deutsch.
Several years ago, this same process happened with Yum Brands sibling Taco Bell. It was then that
Deutsch inched its way onto the Taco Bell roster, which meant that the then-lead agency, FCB, had
to compete for campaigns against its Interpublic Group of Cos.' sibling. Eventually Deutsch became
the lead shop, ousting FCB.
OVERVIEW 01
OVERVIEW
3. Marketing agency turnover with the Pizza Hut brand is high - they’ve cycled throuugh a number of
agencies in recent years. Deutsch won the business from McGarryBowen without a review in July
2014. McGarryBowen, which succeeded Martin Agency, had been on the account for less than a
year.
Pizza Hut also has had a habit of doling out work to roster shops that aren't the lead agency.
TracyLocke, for example, handles retail for the brand, but recently released a Pizza Hut spot
featuring Michael Bolton. In the current instance, however, Pizza Hut is reaching out to agencies not
currently on its roster.
OVERVIEW 02
OVERVIEW
4. You may have seen the massive marketing campaign put out by Pizza Hut just over a year ago
featuring 10 crust flavors and a host of new, gourmet, ingredients. The effort to position itself as a
premium pizza brand also included a website relaunch, refreshed logo, new packaging and employee
uniforms.
Deutsch's work for the campaign included ads where the company asks elderly Italians what they
think of the new pizza.
What they called the “Biggest Brand Evolution Ever” didn’t perform as well as hoped - and Pizza Hut
CEO Greg Creed noted earlier this year that the marketing hadn’t been as effective as planned.
The chain has seen relatively flat sales through much of the year.
SUMMARY: The “Biggest Brand Evolution Ever”
SUMMARY 03
5. Despite their less than satisfactory brand refresh, Pizza Hut still leads the restaurant pizza category,
with a market share of 14.8% followed by Domino’s Pizza (9.9%), Little Caesars (7.8%) and Papa
John’s (6.4%).
Yum brands is the 43rd largest ad spender in the U.S., according to Ad Age's Datacenter, with a total
of $897.5 million spent on both measured and unmeasured media in 2014.
Pizza Hut is the third largest Yum brand by ad spending, with about $233 million in the U.S. in 2014.
KFC had about $252 million in spending, while Taco Bell, the largest spender, had $356.6 million,
according to the Datacenter.
The marketing efforts of Pizza Hut, according to the The Holmes Report, target families and single
males between 25-34 years old. Even though during the last year Pizza Hut has undertaken one of
the biggest brand overhauls in company history, largely in an attempt to engage with Millennials,
their sales lagged, forcing Pizza Hut to offer deep discounts to bring back old customers and
families.
Want to help them get back on their feet? To pitch Pizza Hut, you’ll need information about their
target segments and competition, along with 3 different analyses:
• Competitive analysis
• Audience Insights
• Trends watch
Important Facts & Figures
Important Facts & Figures 04
15. AUDIENCE INSIGHTS 14
AUDIENCE INSIGHTS
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16. TRENDS 15
TRENDS
INTERESTED IN WHAT’S TRENDING
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