2015_04_16 pizza hut x lion mature menu delivery

Pizza Hut x Lion. Mature Menu Delivery

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W Purpose of this document

Introduce a new channel of sales growth for the Lion beer and wine portfolio

Approach

Explore and present a top line business case for an unexplored market

Outcome

Arrive at a go / no-go decision to develop the channel opportunity further

Lion’s Purpose:

Our products are the perfect accompaniment to life’s social moments

W The Challenge

GoalProvide adult

beverages directly where and when

people enjoy them most

BarrierSensitive,

commercial relationships with

established distributors

Limited distribution capabilities

Barrier

W The Opportunity

Lion Pizza Hut

“The majority of meals after midday are consumed without

any beverage at all”

“We need to increase our delivery basket size with high

margin, highly desirable ‘sides’”

W Mature Menu Delivery - CVP

Lion x Pizza Hut have cooked up Australia’s first national food & alcohol delivery service.

Now you don’t have to break up the party to go on a beer run

Get Australia’s most popular Pizza perfectly paired with Australia’s favourite beer and wine

Delivered door to door in 30 minutes

Anywhere in Australia

W Mature Menu Delivery - Introduction

What is it?

Mature Menu Delivery takes advantage of new, leaner, packaged liquor licensing laws which have enabled the proliferation of a large number of independent delivery services.

However, using Pizza Hut’s 270 outlets around Australia, Mature Menu Delivery at Pizza hut will provide the first, national delivery service for food and alcohol.

How does it work?

The partnership will essentially be run as a supplier agreement whereby Pizza Hut purchases alcohol to sell with their Pizza, exclusively from Lion’s portfolio or beer and wine.

However, as the user experience component is highly digital and because alcohol falls outside of Pizza hut’s core business, The White Agency & Lion will collaborate heavily with Pizza Hut. Together, they will iron out issues such as legal, logistics, range and price.

The program will be rolled out in a number of phases, starting with Test & Learn with a limited, proven “Pizza” range in a targeted geographical area.

W Offering Phasing

Test & Learn

Range Extension

National Roll Out

Products: Tap King Locations: Penrith

Products: All beer and wine Locations: Penrith, 5 other flagship stores

Products: All beer and wine Locations: All

W Mature Menu - Supporting Data

Pizza and Beer go together. Period.

Major chains including McDonald’s are experimenting with new concepts in a test range or stores to develop and test growth initiatives and improving the hit rates of innovative initiatives.

In recent years, hundreds of liquor delivery services have legally popped up all around the country. However they are either large national businesses that lack the means to deliver at time of need or fragmented, independent, instant deliverers.

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Strategic Fit

Demand Space Growth Drivers VBC

1. Modern Australian Lifestyle

2. Social w/o Partner

3. Confident Bonding

W Considerations

Next Steps

W Tap King - Next Steps

Lion

• Provide feedback on territory opportunity • Sign off on strategic alignment • Approve scope of works and budget • Provide additional information for full project scoping

White

• Develop project partnerships (eg: How to Impact) • Develop scope of works and budget implications for territory exploration • Undergo consumer & customer research • Develop initial service specifications • Develop business modelling and determine ROI