Group 1Chris Snyder & Diana Malmstrom

THE PIZZA HUT CHALLENGE 2015

THE PIZZA HUT CHALLENGE• Goal of campaign is to increase the

share of pizza orders that are done online/mobile to 75% by the end of 2015

• Position Pizza Hut as the top choice for customers who order pizza digitally

• Provide the greatest digital ordering experience

HOW CUSTOMERS ORDERED PIZZA ONLINE IN 2014

• Single app spaces•Loyalty and re-engagement Programs•Online ordering on social media•Mobile wallets•Partnering with delivery services •Try before you buy partners•Consumer want online ordering more accessible

TOP ONLINE ORDERING TRENDS

Regional Markets – Market Comparisons – Market Share

MARKET ANALYSIS

Pizza Hut operates

in 90 countries over 15,000

restaurants worldwide

9,000 in US alone

Consumer Needs – Brand Image – Consumer Perceptions

PRODUCT ANALYSIS

• Look through the menu in detail and take as long as they like• Become aware of the specials for that day• Choose which items they would like to purchase and get an

incremental total of what their purchase will cost• Customize their order by choosing amounts of sauce, cheese,

types of crust, toppings, crust flavors, etc• Enter all of the information themselves so that less errors are

committed• Order a meal from start to finish from anywhere without having to

make a phone call• Enter credit card information securely so that their information

isn’t compromised

Pizza Hut’s Website & App

Strengths – Weaknesses – Opportunities - Threats

SWOT ANALYSIS

STRENGTH

• Number 1 pizza franchise

• 43% of ordering already through this system

• More efficient ordering

• Customers can customize their order easier

• Customers can be assured that order is correct

• Less labor cost overall

WEAKNESS

• Consumers perceive competitor’s systems are better

• App is confusing and cumbersome

• Some customers are unaware of the system

• Doesn’t save time during the first order

• Doesn’t make delivery faster

• Consumer trust is low

OPPORTUNITY

• As smart phone usage increases, so will app usage

• Better technology will lead to a better overall product

• Increased awareness of product

• As economy improves, more money will be available

for purchases

THREAT

• Competitor’s apps are more intuitive

• Competitor’s apps are preferred by consumers

• Overall popularity of local/organic movements drive

sales for local pizza shops

• Healthier eating habits driving consumers away from

pizza

Comparisons – Competitors - Advertising

COMPETITIVE ANALYSIS

Pizza Hut Papa Johns Domino’s

Xbox & Hulu Payshare Pizza Tracker

Login too slow Papa Rewards Voice Ordering

Not user friendly Text offers #1 App used

• Pizza Hut – behind on digital trends; loyal customers; good crust• Papa Johns – highest quality pizza; best commercials• Domino’s – quickest delivery; best pricing; most promotions

WE ASKED CONSUMERS WHAT PIZZA APPS THEY CURRENTLY HAVE

Out of 461 responses: Pizza Hut 13% - Domino’s 15% - Papa Johns 10% - None 72%

Advertising – Sales Promotion – Public Relations – Direct Marketing

STRATEGIES

MEDIA STRATEGY

• Multi-media strategy encompassing radio, TV, internet, and public relations

• Make consumers aware of Pizza Hut’s online ordering, improved technology, and healthier options

• Updated commercials stressing convenience of online ordering

• Pulse Strategy to target center around big games; Our research shows that consumers order more on Fridays and in the winter

SALES PROMOTION STRATEGY

• Become The Official Pizza Sponsor at Professional Sporting Events

• Online Sweepstakes• Surge Promotions• Pizza Hut Gaming Stations at E3

PROMOTIONAL & PUBLIC RELATIONS STRATEGIES

• Mobile Pizzerias at events to connect with consumers and promote online ordering

• Press Releases on getting healthier options through online ordering• University Discount Days• Like & Share contests• YouTube contests

RADIO SCRIPT

“It’s getting close to Friday and I’m sure you are ready for the weekend. To satisfy a craving, try one of Pizza Hut’s newest flavored crusts and healthier options. Pizza Hut will make your life more convenient for you, so that you can spend more quality time relaxing with your family and friends. Try our online service at pizzahut.com or our mobile Pizza Hut app, available on your smart phone and XBOX. We’ll make sure you get the pizza you want, how you want it and when you want it. We know you value your time and we value you.” Order online at pizzahut.com

TV COMMERCIAL

I’m Hungry!

QUESTIONS?