plansbookph

University of Minnesota DuluthLabovitz School of Business and Economics

University of Minnesota Duluth

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PIZZA HUT PIZZA WAS THE FIRST THING EVER PURCHASED ONLINE.LIKE EVER. BEFORE SHOES, BEFORE BOOKS, BEFORE ANYTHING ELSE

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EXECUTIVESUMMARY

The 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.”

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OUROBJECTIVEPRELIMINARYRESEARCHTARGET MARKET

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PROMOTIONALPLANNING

MULTIMEDIA

BUDGETBREAKDOWN

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OBJECTIVESPURPOSE

INTENTIONSDESIGN

GOALS

AIM

PIZZABREAK

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

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RESEARCHOBSERVATION

EXAMINATION

PIZZAEXPLORATIVE

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.

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-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.

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TARGETMARKET

NEEDFEEL

AGE LIFESTYLE

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

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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 betweenmillennials 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

DEMOGRAPHICSDEMOGRAPHICSMILLENIAL PSYCHOGRAPHICS

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Sex - Male Age - 20Lives - Downtown Metropolitan area

Single/ no childrenFull time University studentEmployed part time Income: ~$20,000Favorite brands: Nike, Google, You-

tubeTop 3 apps: instagram, snapchat,

twitterPhone: AndroidLargest stressor: Finances

Values: Passion, Diversity, Discovery

Social media consumption: 5.5 hours

per dayConsiders 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

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PROMOTIONSADS

DISCOUNTINGSELLING

SPECIAL

DEALBREAK

PIZZA

PIZZA

-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

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-Tweet @PizzaHut with the hashtag #ThankfulForNOW with what you are thankful for andPizza 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

HALLOWEENTRICK OR TREAT AT

PIZZA HUT!

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MEDIAREPORT

ADS

VIRALWEB

CHANNELBLOGGINGPIZZA 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

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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.

TWITTERWHY

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

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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

HOWPizza 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.

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PAID MEDIAFACEBOOK 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 should When Pizza Hut uses Twitter they should use sponsored posts to drive more use sponsored posts to drive more consumers to their mobile app. When using consumers to their mobile app. When using the promoted tweets on Twitter it only the 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.)

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-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

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-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

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-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.


-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.


SPOTIFY-“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.”


for and feel emotionally connect to brands.”








-“Branded Playlists” are Spotify playlists that contain a


-“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

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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






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SEARCH RETARGETINGRemarketing 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 APPWHY

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.

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BUDGET

PIZZA BREAKSPENDSPEND

ALLOCATE

COSTFUNDING

MONEY

PLAN &

Promotions 4.35% $5,002,500Snapchat 0.65% $747,500Facebook 20% $23,000,000Twitter 20% $23,000,000Youtube 10% $11,500,000Instagram 5% $5,750,000Spotify 10% $11,500,000Pandora 10% $11,500,000Hulu 10% $11,500,000Search Retargeting 10% $11,500,000Totals 100% $115,000,000

Total Budget for 6 month campaign July 1, 2015 - December 31, 2015

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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 - PresidentAlyssa Birk - Vice PresidentPaige Nagel - DesignSierra Johnson - Creative Ezra McPhail - MediaEmily Baago - Secretary

CREATIVEDevin Lenzmeier Collin Watke Melissa Chyrklund Ben Vaupel Kyle Norton Nate Schammel

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