Hannah Epstein, Alexa Teeman, Ronen Kadosh, Chia-Yu Tsou, Paige Emond

Media Plan for Pizza Hut COMM422 Fall14 12/15/2014

Contents Executive Summary .......................................................................................................................................................................................2

Situation Analysis ..........................................................................................................................................................................................3

Company Brand and Background ........................................................................................................................................................3

Competitive Analysis ...............................................................................................................................................................................4

Creative History .......................................................................................................................................................................................5

Target Audience .......................................................................................................................................................................................6

Geography Questions .............................................................................................................................................................................7

Timing and Purchase Cycle ....................................................................................................................................................................7

Media Mix .................................................................................................................................................................................................8

SWOT Analysis .........................................................................................................................................................................................9

Creative Strategy ...................................................................................................................................................................................... 10

Communication Objectives .................................................................................................................................................................. 10

Executions: ............................................................................................................................................................................................... 11

Media Objectives/ Strategies ................................................................................................................................................................ 12

Target audience .................................................................................................................................................................................... 12

Reach and frequency ........................................................................................................................................................................... 12

Media budget ........................................................................................................................................................................................ 13

Geography ............................................................................................................................................................................................. 14

Media Integration ...................................................................................................................................................................................... 15

Sales Promotion #1: ............................................................................................................................................................................. 15

Sales Promotion #2: ............................................................................................................................................................................. 15

Sales Promotion #3: ............................................................................................................................................................................. 16

Sales Promotion #4: ............................................................................................................................................................................. 16

Media Mix ................................................................................................................................................................................................... 17

Media Flow Chart ...................................................................................................................................................................................... 19

References ................................................................................................................................................................................................... 20

Appendix ..................................................................................................................................................................................................... 21

1 | P a g e

Executive Summary Pizza Hut is part of the Yum! Brands conglomerate. Pizza Hut was established in 1958

and it was the first fast food pizza chain in the United States. Pizza Hut has loyal customers due to their quality pizza, but the brand is seen as outdated by many. Pizza Hut is the premier fast food chain for the on-the-go family who prioritizes flavor and options but has no time to cook. The Pizza Hut brand is the number one pizza brand with in the market. In order for Pizza Hut to create a fresh image in the mind of its consumers, a marketing strategy targeting millennial families will be implemented. The strategy focuses on targeting on the go families who are seeking a convenient, delicious meal. The media plan will consist of traditional and nontraditional media including a social media event, a billboard, pop-up public relations event, and product placement. The traditional media will follow a pulsing schedule; the low media months are from June to August, medium reach from March to May, and high reach from September to February. The media plan will successfully target millennial families and establish a fresh brand image of Pizza Hut to new and existing consumers.

2 | P a g e

Situation Analysis Company Brand and Background Pizza Hut is one of Yum! Brands, Inc. three major restaurant brands. Yum! Is the world’s largest fast food conglomerate with over 40,000 restaurants in 125 countries and over $13 billion in sales in 2013 (Yum.com). In addition to Pizza Hut, Yum! also owns Taco Bell and KFC. Yum! is headquartered in Louisville, Kentucky. It is a publicly traded company listed as “YUM” on the New York Stock Exchange. It is listed as the 216th largest company on the Fortune 500. Originally part of PepsiCo, Yum! Brands came to be in 1997 after a spin-off from PepsiCo. Since the spin-off, Yum! has experienced significant global growth. In 1997, only 20% of the brands sales came from outside the United States, today that number has reached 70%. Additionally, Yum! is the industry leader opening 5 new restaurants per day outside the United States (Yum.com). Pizza Hut itself is the world’s largest pizza company. As of January 1st, 2014 there were 13,300 Pizza Hut locations worldwide, including 7,800 in the United States and 5,500 in 87 countries worldwide (Yum.com). Between 2012 and 2013, the Pizza Hut brand experienced growth at both its domestic and international locations. In China, Pizza Hut experienced a 20% growth in its number of stores, going from 987 to 1,264. In India Pizza Hut went from 310 locations to 367 locations, which constituted a 14% growth. Internationally, Pizza Hut grew just 2%, from 5,304 locations to 5,490 locations. Domestic growth just reached 1%. The number of stores in the United States increased from 7,756 to 7,846. Pizza Hut restaurants come in a few different formats. There are the original-family style dine-in restaurants, delivery/ carry-out locations, and hybrids that combine the two. The family-style restaurants are usually characterized by the distinctive red roof. Unfortunately for Pizza Hut, many consumers view it as a stale brand. At the end of this fiscal year’s second quarter, Pizza Hut same-store sales were down 3% overall and 4% in the United States and its operating profits were down 22% (La Monica, Should Pizza Hut be Sold). With same-store sales being down and a negative consumer image, Pizza Hut has shifted its goals to increasing digital orders. In 2013, Pizza Hut exceeded $1 billion in digital sales and nearly one third of its domestic sales are digital (QSRMagazine.com)

3 | P a g e

Competitive Analysis Dominos

Dominos had an annual sales of 1.80 billion dollars, and a market share of 20% in 2013. (Appendix A) Dominos is the world's number two pizza chain. It has more than 10,300 delivery locations in about 70 countries (Hoovers). Dominos stores are principally delivery locations and do not have any dine-in seating. Their menu features several different styles of pizza along with a variety of toppings. Dominos is also known for their non-pizza items such as: bread sticks, cheese bread, and chicken wings.

Domino's largely competes on price and convenience. They have extremely low priced items and an easy delivery option. Domino's current campaign focuses on their failure of a brand in previous years. They are emphasizing their retooled pizza recipe which is paired with a money-back guarantee for those whose expectations are not met. The campaign emphasizes the change the chain has gone through as they know their customers were unhappy with the previous pizza recipe. Dominos spent most of their advertising dollars in television. They spent high amounts on cable TV, network TV, and Spanish language TV. Dominos also dedicated a great amount of their advertising budget to internet display. (Appendix B)

Papa John’s Papa Johns had an annual sales of 1.44 billion dollars in 2013. (Appendix A) It is currently the number two pizza chain. Papa Johns has around 4,165 pizzerias across the US and is present in about 35 international markets (Hoovers). They are known for their original pizza styles and various topping choices. Papa John’s solely offers delivery and carry-out options.

Papa John’s advertises on both a national and local level. The company is focused mostly on cutting expenses and keeping its food costs low during the recent recession. Papa John’s has a partnership with Peyton Manning and the NFL. They are focusing on a stronger “emotional connection" to its customers. Papa John's will continue to utilize these types of promotions to separate itself from the competition. Papa John’s advertising is spent heavily in television. They have the highest spend in cable TV, syndicated TV, network TV, and spot TV. (Appendix C)

4 | P a g e

Little Caesars Little Caesars had an annual sales of 206.00 million in 2013. (Appendix A) They are the number four Pizza chain in the industry. Little Caesars focuses on leveraging the cost of their products instead of expanding their product line (Hoovers). They recently re-launched their “Pizza! Pizza!” tagline and Little Caesar character front. They are using national media to tagline. "Pizza! Pizza!" was originally introduced in 1979 to promote the chain's "two great pizzas, one low price.” Their main promotion now is a $5 large pepperoni Hot-N-Ready pizza as well as its $8 large three-meat pizza.

Little Caesars spends most of their advertising dollars on cable TV. They spend the second most in network TV and third most in syndicated TV. (Appendix D) Creative History Pizza Hut revealed its first televised commercial in 1965 with the slogan, “Putt Putt to the Pizza Hut”. Since the establishment of Pizza Hut restaurants, their advertising slogans have greatly changed. Until early 2007, their main slogan was “gather ‘round the good stuff”, but their slogan continued to change. The slogan, “now you're eating” was in used from 2008-2009. Pizza Hut changed their advertising slogan once again, and their current advertising slogan is, “make it great”, according to the company website (Morrison, 2014). As Pizza Hut sales have recently decreased, they have introduced new marketing and promotional activities. Now, at many Pizza Hut locations customers are now able to sit down at the table and use a touch screen mobile device to order their pizza. The mobile device allows customers to add toppings, see the topping location, view a countdown timer, and pay by debit or credit card. Pizza Hut installed the digital tables to enhance their customer experience within Pizza Hut locations (Maskeroni, 2014). Other recent promotions that Pizza Hut has implemented include, their partnership with Teenage Mutant Ninja Turtles for their new movie and at Comic-con 2014. Pizza Hut reintroduced the “book it program” which allows children to track their reading habits and trade stickers for a small pizza. Pizza Hut also recently partnered with Visa Checkout, giving customers the ability to pay with their Visa Checkout account for online orders (Wong, 2014). Pizza Hut’s most recent major marketing campaign depicts Blake Shelton, country music singer and judge on “The Voice” promoting the new Bacon Stuffed Crust pizza. Pizza Hut corporate headquarters wanted to use a relatable celebrity personality to target “millennials”. The Blake Shelton Pizza Hut advertisements prove that he is down to earth, and passionate about the Pizza Hut brand and product.

5 | P a g e

Target Audience The current target audience for Pizza Hut is directed at small families and the younger generation. The primary consumer who will be purchasing the product would be from ages 18-34. Pizza Hut is currently trying to redirect its brand to focus on the local small family who is interested in quality pizza for a reasonable price. They are trying to move away from the old fashioned pizza buffet and move toward a more updated and lively fast food pizza restaurant, fit for a young, contemporary family. Pizza Hut has recently introduced new campaign strategies such as online ordering and social media based advertising to appeal to a younger audience. Their combination of media solutions allows for better communication with their target audience to ensure effective brand placement (Lotalty360). With today’s current technological improvements, it is necessary for a brand like Pizza Hut to appeal to the younger generation and reach out to them through social media and contemporary forms of communication. Being able to order online makes the brand look more efficient and easy for their consumers to use. Consumers are interested in fast and effective service when it comes to fast food which makes their technological advances much more effective. Based on Simmons database, the target audience for Pizza Hut is clearly illustrated towards families with children. According to the calculated index numbers in Simmons database, the more children within the family, the more likely they are to eat at Pizza Hut. Families with one child have an index of 119, while families with 3 children have an index of 154. The most popular age range to eat at Pizza Hut is 18- 34 with an index of 137, which illustrates why they are targeting small families and the younger generation. This brands psychographic segmentation focuses primarily on targeting the low budget, youthful generation that is looking for well prepared and good quality tasting pizza. According to the Holmes Report, Pizza Hut considers males ages 25-35 to be one of their primary targets, classifying them as “The Eating Machines”. This group of consumers makes up a large group of Pizza Hut’s consumers which forces the brand to cater to their low budget and big appetite. The Holmes Report also states that mothers of small families is another prime target for Pizza Hut’s advertising. They explain that the mother is the head of the decision making process when it comes to dinner choices. Appealing to the average mother’s request for a low budget, satisfying meal for their family is a clear strategy to reach their target audience effectively.

6 | P a g e

Geography Questions

Geographically speaking, Pizza Hut has more locations than any other dine in fast food pizza restaurant in the United States. People are more interested in convenience when it comes to fast food which gives Pizza Hut the upper hand because of their broad span of locations (AggData). According to Simmons database, the Midwest makes up the largest geographical consumers in the United States with an index of 121. The south comes in at a close second with an index of 114. The regions with weaker sales include the northeast region of the United States with an index of 74 as well as the west coast with

an index of 80.The regional differences between Pizza hut and their competitors is based on their location and distribution of restaurants.

Timing and Purchase Cycle In general, the main products such as pizza and chicken wings sold by Pizza Hut are not season specific; it is being consumed almost every day. However, Pizza Hut does offer special pizza flavors and products that are only sold during a specific time of the year or during special celebrations. Consumers usually consume Pizza Hut products for lunch, dinner or as late night meals. Although Pizza Hut products are consumed almost every day nationwide, there are two time periods that has the highest rate of consumption and sales. Sales are during winter. Pizza Hut offers delivery or takeout services benefiting consumers that do not want to cook or are not available to go out during winter. Sales are also high during football seasons, especially during the first and the last quarter. During football games, consumers do not want to leave the TVs so they would order delivery. Furthermore, Pizza Hut offers a lot of combos or football specials with great deals for consumers to enjoy together during the football games.

7 | P a g e

Media Mix Pizza Hut has adopted a variety of media and vehicles to advertise their product and their restaurants. The media mix includes: television, radio, newspaper, magazine, internet and outdoor. Among these types of Medias, most of the dollars are spent on television broadcasts. According to Ad$pender (Appendix 2A), over the past three years, Pizza Hut has spent around $924 million solely on advertising through TV. Besides TV, Pizza Hut has spent the second most advertising dollars on internet display, even if it only takes 2% of the total advertising dollars. On the other hand, less than 0.001% of the advertising dollars (around $7 thousand) are spent on promotion through local magazine. Local magazines are only used to promote Pizza Hut Inc.; the corporate instead of their products or restaurants. Furthermore, according to Ad$pender, in 2013, Pizza Hut Spent a total of around $247 million on its media mix. Similar to the past three years, around 98% of the dollars are spent on television and internet as the second most with a spending of around 2%. The company have spent the least on internet display which only took up around 0.08% of the total. In 2013 Pizza Hut did not place any dollars in magazine advertising. (Appendix 2B) Since a great portion of the advertising budgets are spent on television itself, the category television itself is differentiated into various types. Types such as: cable, network, spot, syndication, Spanish and more. Based on the pie chart above, most of the advertising dollars are spent on Network TV and Cable TV, where there is a higher possibility of generating more impressions. (Appendix 2C)

In general, Pizza Huts` advertising messages are simple. A typical Pizza Hut advertisement consists of their latest product or deals with their famous red roof logo or a line to call. The advertisements are usually simple and short to create a greater impression in audiences` minds. Pizza Hut mostly rely their promotion through visual promotions and uses incentives to communicate. For firms

like Pizza Hut that sells food, it brings more advantage when consumers actually see the products. Furthermore, the deals such as price or discounts are more effective in creating an impression numbers are presented visually. According to Ad$pender, Pizza Hut spent most of advertising dollars on different types of visual medias for promotion such as different types of TV vehicles, newspaper, magazine, outdoor and internet display. According to the figure above, over 97% of advertising dollars, around $950 million are spent on visual promotion and little spent on radio. In general, Pizza Hut has adopted a combination of media and vehicles to promote their product and their restaurant.

8 | P a g e

SWOT Analysis Strengths:

1. Well established brand name: Pizza hut is a well-established brand name. The company has been around for over 50 years and has many loyal customers.

2. Product Diversity: Pizza hut is a restaurant with an extremely diverse menu. They possess items such as bacon stuffed pizza, varied flavored chicken wings, and Hershey chocolate chip cookie pizza. This attracts a broader audience.

3. Affordable price: Pizza Hut is known to be highly affordable. They have great lunch and dinner specials for an extremely low cost. This is helpful for families on a budget.

Weakness: 1. Negative brand image: Pizza Hut has is a brand that has been around for over 50 years.

Its brand image is declining because it is becoming outdated and not keeping up with the new trends.

2. Hard to control quality: At Pizza Hut it is hard to control the quality of the pizza because there are so many locations and the ingredients are coming from many places.

Opportunities: 1. High demand: Pizza is constantly in high demand and wanted by the public no matter

their geographical location or income. Everyone wants pizza. 2. Reinvention: Pizza is a meal that can always be reinvented and recreated to improve

the quality and taste. There is also room for innovation and trying new ingredients. 3. Home delivery: The convenience of home delivery cannot be beat when it comes to fast

food. The ability to have food delivered to your own home is a huge advantage for Pizza Hut.

Threats: 1. Direct competitors: Brands such as Dominos or Papa Johns are also major pizza chains,

customers can easily compare the price and product or service, hence, easier to lose customers.

2. Lack of healthy products: Due to the raising health concern and shift towards a healthier eating trend, consumers are buying less fast food. Furthermore, Pizza Hut has little variety of healthy products. It will cause a decrease in consumption and sales and it will be hard to regain.

3. Indirect competitors: Other fast food chains such as McDonalds and KFC will also post a threat since they are also in the fast food industry. Some fast food chains may also consider expanding their product categories in the future, offering pizza; becoming a direct competitor.

4. Increase in frozen product variety: Pizza Hut will lose its customers as they switch to frozen products due to an increase in frozen product variety because they are even more convenient than delivery. This will also lead to a decrease in consumption and sales for Pizza Hut.

5. Increase in price of products ingredients: The price of the Pizza Hut products can easily be affected if there is an increase in major ingredients such as flour, cheese or meat. Increase in price will causing consumers to shift to other options.

9 | P a g e

Creative Strategy Communication Objectives The media campaign will accomplish all of the following:

• Create an emotional connection between Pizza Hut and its customers. • Encourage consumption of all Pizza Hut brand products. • Reinforce in the mind of millennial parents Pizza Hut is the premier fast food option. • Modernize Pizza Huts brand image. • Emphasize the digital components Pizza Hut recently launched and increase consumer

engagement.

Strategy The strategy that will be implemented to effectively reach the target demographic involves both traditional and nontraditional media. A combination of newspaper, television, radio, Internet, and direct mail advertisements will help to reinforce Pizza Hut’s new image in the minds of 25-44 year old millennial parents. Social media will be used to build excitement and awareness about Pizza Hut’s new menu options and about ongoing public relations initiatives such as the Pizza Hut Pop-Up Shop and Pizza Hut’s Modern Family product placement.

Brand Positioning In the mind of young, active, fast food consumers who live on a budget or have little time to cook, Pizza Hut is the pizza franchise that offers more choices of affordable menu items than any other pizza chain. With Pizza Hut, you can order online with ease or bring your family to one of the many convenient locations. Pizza Hut is the premier fast-food chain for on-the-go families who prioritize flavor and options, but do not have the time to cook. Promise To be the ultimate fast food option for convenience, value, diversity of items, and consistent quality. Tone The tone of our advertisements will be upbeat and exciting to reflect the excitement behind Pizza Hut’s rebranding.

Theme line or slogan Changing the way you Pizza Pizza Hut’s image has declined in the minds of consumers over the years. The traditional red-roof Pizza Hut diner is not appealing in the minds of Pizza Hut’s millennial target demographic. “Changing the way you pizza” reflects Pizza Hut’s step into the modern world and informs consumers of the billions of options Pizza Hut now offers.

10 | P a g e

Executions: Creative #1:

Creative #2:

11 | P a g e

Media Objectives/ Strategies Target audience The primary target audience for Pizza hut is young active families. This is the designated target audience because of their fast paced lifestyle as well as need of family meals at a reasonable price. The target demographic is millennial parents ages 25-44. The target audience goal for this campaign is to increase consumption as well as successfully rebrand Pizza Hut as the best option for “famillennials.” Reach and frequency

Objective: The duration of the campaign is twelve months, the twelve months are categorized into high medium and low reach to accompany our type of scheduling method. According to the Ostrow Model, after the characteristics relevant to our campaign, the target frequency per month is 2.8 (Appendix 3). The months that we aim to have the highest reach (80.5%) are September to February with 242 GRPs. The months that we aim to have a medium reach (70.6%) are from March to June with 196 GRPs. The months that we aim to reach the lowest (52.5%) are June to August with 146 GRPs. The campaign will begin in June with three months of low reach, six months of high reach, and ends with three months of low reach in May. Although the targeted frequency is 2.8, months with high reach have a frequency of 3.0. Strategy: Different mediums are adopted to achieve different levels of reach throughout the year. TV and radio are used for all months but the time of broadcast and area different depending upon its targeted reach. In order to achieve the highest reach multiple mediums such as TV, radio, newspaper, direct mail and internet will be used. For television, Spot TV, Net TV and cable are adopted; advertisement are broadcasted during multiple time sections such as daytime, early news, prime, sports, early fringe and late fringe. For radio, advertisements will be broadcast during daytime on Net Radio and evening drive for both Net and Spot radio. During months with medium reach mediums such as TV, radio, direct mail and internet will be used. For television, Net TV and cable are adopted; advertisement are broadcasted during multiple time sections such as early news, prime, sports and early fringe. For radio, advertisements will be broadcast during morning drive, evening drive and night time for Net Radio channels. Lastly, mediums such as TV, radio, direct mail and internet will be used during months with medium reach. For TV, advertisements will only broadcast in Net TV sports, during early fringe and prime time for Net cable channels. Social Media event or updates will be constant throughout the whole campaign year. PR events will be held during months of medium reach to remind audiences of the brand and products since there will be a lesser amount of reach and frequency during those months compared to months with high reach.

12 | P a g e

Scheduling and timing Objective: The 2014- 2015 campaign will be adopting a pulsing advertising schedule. Advertising will be non-stop throughout the year and heavy during fall months. The media plan will combine traditional and nontraditional media throughout the campaign year. The traditional media will include television, newspapers, and billboards. The nontraditional media will include various social media campaigns, PR events, as well as web and mobile advertising. Strategy: The Pizza Hut Campaign will start as of September 2015. During the month of March, we will have our PR event in major cities. There will be Pizza Hut pop up shops that will be advertised on social media sites. These pop up shops will be kiosks on popular cross streets of major cities with samples of our most popular pizzas. Traditional media will start in September and run until February. We will advertise heavily during these months as we believe that watching sports is highly related to the purchase of our product. Media budget

Objective: The one year campaign will start from June 2015 and continues to May 2016. A total advertising budget of $40 million will be distributed throughout the twelve advertising months. The budget difference for everyone will be based upon the targeted reach and media plan. Over 80% of the total budget ($32.2 million) are spent on traditional media. Majority of the budgets will be spend on TV and Radio. Any leftover budgets (around $7.8 million) will be spent on the integration plans. Strategy: Around 73% of the budget for traditional media will be spent on television. Within the television category, a great portion of money (around $14 million) will be spent on Net TV especially on Net TV-Sports for audiences that watches sports games. A similar portion of money, around 11% will be spent on both direct mailing and newspaper because of its equal importance to our

13 | P a g e

target audience. The majority of money spent on radio will be during the evening drive because it is when most of the target audience decides what to eat for dinner. On the other hand, the least amount of the budget, ($92,000) will be spent on Internet advertising. Most advertising related to the Internet will be used for social media which is usually free. The money spent will be on web and mobile advertising, where banners or website links are inserted in different sites. Overall, the budgets are mostly concentrated on spending in the TV category. Money will be spent on a concentration of certain medium rather than many types of media. For radio or TV time slots with high prices such as prime time or sports, we bought 15 second for our commercial instead of 30 seconds. We will also broadcast a 30 second radio advertisement for evening drive in Net and Spot radio to save money within the budget. An average of around $2.1 million will be spent on three months with low reach, around $1.6 million will be spent on the three months with medium reach, and around $3.6 million will be spent on the six months with high reach that is national with spot heavy-up. These spending sums up to a total of $32.2 million with a balance of $7.8 million from our targeted budget $40 million. However, the balance can be used as and buffer for the integration plans or sudden changes in any of the spots.

Geography

Objective: The whole campaign will be advertised through twenty-four cities; across eighteen states. Advertising will mainly focus on the eastern half of the United States and California, where the targeted audiences are more likely to purchase and consume pizza from a fast food chain. In total, the twenty-four cities covers around 43% of US households; advertising at a national scale.

Strategy: States where Pizza Hut’s competitors are headquartered such as Kentucky and Michigan were purposely avoided to prevent greater competition. Among the advertised eighteen states, five states have two or more cities that will be advertised to. States such as New York, Texas, Pennsylvania, Ohio and California were particularly chosen to advertise in more than one city are either due to its geographic size or the great amount of attention it can generate. Top five US household coverage cities such as New York, LA, Chicago, Philadelphia and Dallas-Ft. Worth were chosen based on the great amount of impression it will be able to generate.

14 | P a g e

Media Integration Sales Promotion #1: Pizza Dash social media event

Budget: $800 thousand Objective: To increase knowledge of the Pizza Hut brand and the variety of pizza options to choose from through Facebook.

Strategy: Facebook is used daily by millennial families, and

an advertisement at the side of Facebook page would be easily accessible for the viewing. Partnering with Facebook will allow Pizza Hut to reach their target audience of millennial families. The advertisement will bring the viewer to a separate page where a game can be played. The game, Pizza Dash will be branded with the Pizza Hut logo and slogan. The goal of the game is to catch as many toppings falling from the sky with your pizza. Players can move the pizza side to side with arrow keys. By playing the game, people will become familiar with the variety of toppings and customization Pizza Hut offers. Sales Promotion #2: NYC Virtual Billboard- Evolution of Pizza

Budget: $1.9 million Objective: To increase awareness of the Pizza Hut brand. Strategy: By having a virtual billboard placed in New York City, many people will be able to see the billboard. The billboard will be placed in a central location so those walking or driving by can easily understand the brand message. The billboard will be on a

jumbotron screen so it can change images. It will start as a black and white advertisement of a family sitting around a table eating pizza, after a few seconds it will then flash to a more modern advertisement in color with a vibrant family also eating pizza. The advertisement will prove that by eating Pizza Hut their family life will not be dull.

15 | P a g e

Sales Promotion #3: PR Event- Pop up Pizza Budget: $3.4 million

Objective: To create media buzz about Pizza Hut and to get people to try samples of pizza leading to increased purchases. Strategy: A PR event will create major media buzz and get people to taste Pizza Hut pizza. A Pop up Pizza shop would be placed in central locations of major cities. The pop up shops will be branded with the Pizza Hut

logo and slogan. There will be free pizza samples of pizza for people to try. There will also be a special promotion for families. If families come in together they can try more pizza flavors. The pop up shop will create a lot of buzz within the media because large amounts of free pizza would be given out. There will also be a lot of people outside of the pop-up shops. The goal is to have people become more aware of Pizza Hut, but also to purchase Pizza Hut after they were given free samples.

Sales Promotion #4: Product Placement Budget: $1.6 million Objective: To associate people with happy times with their families eating Pizza Hut

Strategy: Modern Family is a show watched by many millennial families. The show is also relatable to those that watch it across America, with characters of all genders, sexualities, and ethnicities. Luke (a main child character) is humorous and witty. There are often scenes of Luke coming home from soccer practice, so

it would be beneficial to show the family having a good time eating Pizza Hut after Luke’s soccer practice. The goal of the product placement is to get viewers to associate Pizza Hut within the setting of Modern Family and therefore associating Pizza Hut with the hip and modern family.

16 | P a g e

Media Mix Our media mix strategy included a variety of selections, including traditional and nontraditional media, in order expand both the reach and frequency of our selected target audience. We have a strong focus on traditional media selections which include television, radio, direct mail, Internet and newspaper ads. Network and Spot Television Television was our top priority when budgeting for this campaign. The most effective way for us to reach our target demographic would be through television. Based on our new campaign, with a new variety of pizza toppings and alternatives, the visual that the television brings into the consumers home will help them envision the product. The networks that we focused our budget on were primarily popular sports channels such as ESPN as well as early news channels including Fox and ABC. Both of these networks are a direct appeal to our target audience as well as our scheduling pattern of when the consumer might want to order pizza. News channels and times such as net early fringe and net cable prime were given 30 second commercial times and net sports channels were given 15 second commercials based on our budget cost. In this case, we wanted to remind the consumer that Pizza Hut is the best choice during game time as well as the family favorite choice for a quick dinner when there is no time to cook.

Radio We chose to focus a portion of our budget on radio because it is an easy and affordable way to expand our reach and frequency. We selected many spots on radio but chose to target the early commute to work as well as the afternoon commute. Both of these times reach the largest amount of listeners as well as directly advertise to our target audience. All radio stations, including morning, daytime and evening, are 30 second commercials while nighttime spots are 60 seconds. Our target audience is small generational families which most likely include parents on their way to and from work. Sirius radio, for example, is a perfect radio medium to reach our target audience effectively.

Direct Mail Direct mail is an easy and effective way to provide visuals of the product as well as additional coupons that may attract customers. By adding inserts in local newspapers and directly mailing them to consumers, we are reinforcing the brand that they see on television or hear on the radio. Direct mail is also distributed often, providing a subtle reminder of the brand. Direct mail is a reminder to the target audience that Pizza Hut is the premier pizza chain that provides great deals and great food.

17 | P a g e

Internet Millennials grew up with the Internet, and spend much of their time surfing the web. Our target audience, being generational millennials, are known to spend large amounts of time on social media accounts, where our Internet advertisements will be placed. Known social media sites such as Facebook and Twitter will be the main focus of this strategy. The Internet is a fun, fast and easy way to directly advertise to our target consumers.

Newspaper Ads The primary audience for Pizza Hut would also be users of local newspapers. Newspaper ads are distributed frequently which provides the target with multiple opportunities to view the ad and be reminded of the brands image. Newspapers can reach the consumers on a more personal level while reading in their homes or in their office at work.

18 | P a g e

Media Flow Chart

19 | P a g e

References AggData. "Pizza Place Geography." Pizza Place Geography. N.p., n.d. Web. 10 Oct. 2014. "DOMINOS INC." Hoovers Inc, 2014. Web. Dec. 2014. <http://subscriber.hoovers.com/H/company360/overview.html?companyId=40131000000000>. La Monica, Paul R. "Should Pizza Hut Be Sold? - The Buzz - Investment and Stock Market News." The Buzz Investment and Stock Market News RSS. CNN Money, 17 July 2014. Web. 18 Oct. 2014. "LITTLE CAESARS INC." Hoover's. Hoovers Inc, 2014. Web. 12 Dec. 2014. <http://subscriber.hoovers.com/H/company360/overview.html?companyId=40284000000000>. Maskeroni, Alfred. "Pizza Hut's Swipe-to-Order Table: Cool and Useful, or Gross and Inefficient?." AdWeek. N.p., 4 Mar. 2014. Web. 27 Oct. <http://www.adweek.com/adfreak/pizza-huts-swipe-order-table-cool-and-useful -or-gross-and-inefficient-156080> Morrison, Maureen. "Pizza Hut: Five Memorable Ad Moments and Milestones | News - Advertising Age." Advertising Age News RSS. N.p., 5 June 2013. Web. 27 Oct. 2014. <http://adage.com/article/news/pizza -hut-memorable-ad-moments-milestones/241858> "PAPA JOHN'S INTERNATIONAL, INC." Hoover's. Hoovers Inc, 2014. Web. 12 Dec. 2014. <http://subscriber.hoovers.com/H/home/index.html>. "Pizza Hut Wraps Up Record-Breaking Year for Online Sales." Qsrmagazine.com. QSR Magazine, n.d. Web. 17 Oct. 2014. "Pizza Hut." Yum! Brands. N.p., n.d. Web. 10 Oct. 2014. Ratcliff, Chritopher. "Pizza Hut Tops the Social Chart for Young Audiences, Is This a Deserved Win?" Econsultancy. N.p., 16 Apr. 2014. Web. 10 Oct. 2014. Sabre. "Pizza Hut Reminds Consumers Why They Love Pizza Hut." Pizza Hut Reminds Consumers Why They Love Pizza Hut. N.p., n.d. Web. 10 Oct. 2014. Wong, Venessa. "Pizza Hut Hopes the Teenage Mutant Ninja Turtles Will Boost Sales." Bloomberg Business Week. Bloomberg, 23 July 2014. Web. 27 Oct. 2014. <http://www.businessweek.com/articles/2014-07-23 /pizza-hut-hopes-the- teenage-mutant-ninja-turtles-will-boost-sales>

20 | P a g e

Appendix Appendix 1A: Annual Sales for Major Pizza Brands

Appendix 1B:

Appendix 1C:

21 | P a g e

Appendix 1D:

Appendix 2A: Pizza Hut Media Mix 2010-14, Ad$pender

Appendix 2B: Figure: Pizza Hut Media Mix 2013, Ad$pender

22 | P a g e

Appendix 2C: Pizza Hut Spending on TV, Ad$pender

Appendix 3:

23 | P a g e