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