pizza hut - ad campaign proposal

New York Institute of Technology

Course PREL-610

Student Name : HIEU MINH HUYNH

Student ID : 0690823

Creative Brief – Pizza Hut FA09

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1. Introduction

This creative brief contains the advertising strategy and execution guidelines for Pizza Hut Inc.

The campaign “One delivery, multi-value” is to be planned and implemented nationally for the

US market, for the first quarter of 2010.

This section describes the client’s profile, including its history, industry position, and media

coverage.

1.1. The History of Pizza Hut

The first Pizza Hut

restaurant was founded in

1958 by two college-aged

brothers Dan and Frank

Carney in Wichita, Kansas

with only $600 borrowed

from their mother.

However, its first franchised

unit was opened just one

year later. In 1971, Pizza

Hut became the largest pizza restaurant chain in the world in both sales and number of

restaurants.

In 1977, Pizza Hut Inc. merged with PepsiCo Inc., becoming a division of the global soft

drink and food conglomerate. Also in this year, Pizza Hut reached the sales of $436 million

and a new $10 million dollar headquarters office opened in Wichita. Delivery sales for Pizza

Hut were boosted to a ten-digit figure in 1991.

In 1997, PepsiCo announced its plan to spin off the restaurant division including Pizza Hut,

KFC, and Taco Bell to intensively focus on beverage and snack food divisions. The

restaurant division became an independent company named Tricon Global Restaurants Inc.

This company changed its name into Yum! Brands Inc. when Long John Silver's and A&W

were added to its holdings in 2002, making it the world largest competitor in Quick Service

Restaurant (QSR) industry.

After 50 years in business, Pizza Hut reached the sales of $5.3 billion in 2008. It is now

operating in over 90 countries with a total of more than 10,000 restaurants worldwide.

Company

Pizza Hut Inc.

Industry Fast Food and Quick Service Restaurant

Website http://www.pizzahut.com

Products Pizzas, pastas, chicken, salads

Service Dine-in, Carry-out, Delivery

US Sales $5.3 billion (2008)

Table 1. Pizza Hut Inc. overview

http://www.pizzahut.com/


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1.2. Pizza Hut brand position and its competitors in the industry

Pizza Hut currently claims the leading position in the US pizza QSR segment with a 14.46%

market share. Its most powerful rival in the same sector is Domino’s Pizza. Pizza Hut won

the title “America’s Favorite Pizza” in 2007.

Pizza Hut and other pizza franchise chain companies are also suffering from sales lost to fast

growing frozen pizza businesses, especially in this economic recession. Competing

restaurants and fewer people dining out are pressuring sales and profitability.

Rank Brand 2008 US Sales US Market share

1 Pizza Hut $5.3B 14.46%

2 Domino’s Pizza $3.0B 8.29%

3 Papa John’s Pizza $2.0B 5.55%

4 Little Caesars $1.0B 2.88%

5 CiCi’s Pizza $0.6B 1.73%

Table 2. Top 5 US Pizza franchise chain in 2008

Source: Adapted from PMQ’s Pizza Power Report September 2009

1.3. Media coverage

To appeal to a wide range of demographics, Pizza Hut has been using a mixed of traditional

media channels including print, radio, television, as well as interactive vehicles like the web,

and mobile. Remarkably, Pizza Hut is the first company to place their logo on the fuselage of

the world’s largest proton rocket.

Pizza Hut is also a pioneer in the ability to order online, including via mobile phones. It's

Pizza Hut application on Apple iPhone and iPod Touch reached one million downloads in a

short time after release. Pizza Hut is also making use of social media networks like

Facebook, Twitter, and Youtube to attract millions of fans and followers who are using these

networks.

2. Statement of need

2.1. The problem

Before wording the expectation of Pizza Hut from this campaign, let’s examine the problem

the company is undergoing.

Slumped sales at Pizza Hut: The comparable sales of Pizza Hut at its more than 6,000 US

franchised and company owned locations had dropped 13 per cent during its third quarter,


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compared with the same period last year. A decline of 8 per cent was also reported for the

prior quarter.

Other pizza franchise chains’ situation: Domino’s Pizza and Papa John’s Pizza US sales

during the third quarter of 2009 were reported flat compared with the prior year period.

Where is the grass greener? The US economic recession has resulted in the tendency of

having meals at home. The frozen pizza option has become more preferable due to its low

price and convenience. Kraft, DiGiorno frozen pizza maker, has reported 7 per cent growth

of its frozen pizzas for this fiscal year, compared with the previous 52-week period. Walmart

has also been promoting its “take and bake” pizza, claiming to save a family that ordered

pizza deliveries once a week about $312 a year.

These facts raise a problem for Pizza Hut: it is losing the customers to both other pizza

chains and frozen pizza companies. Consumers are switching to offers having lower price

and more promotion. Pizza Hut needs a persuasive action to drive the consumers back. This

was also mentioned by David Novak, chairman and chief executive of Yum Brands, "Value

is something that works in this category. We have to do a lot better job of communicating."

2.2. What does Pizza Hut expect from advertising?

The campaign “One delivery, multi-value” is designed to address the problem that Pizza Hut

is battling. By highlighting the values of its products and service, the client expects to

strengthen the loyalty from current customers, persuade potential consumers to switch to

Pizza Hut products, and boost sales.

3. Proposed solution

The “Big Idea” is based on thorough research and analysis on the attributes of Pizza Hut

products as well as its consumer behaviors.

3.1. Research and analysis

Pizza Hut is known for their family style dining in restaurant, as well as take-out and delivery

service. Its primary strengths are the largest number of units, high quality, and plentiful menu

options. Pizza Hut is using natural ingredients for its products. Nevertheless, the price of

Pizza Hut is less competitive and its promotion is limited. This drawback makes it less

attractive than competitors.

Research reveals that most consumers have pizzas 2 or 3 times a month. Among the factors

that influence the consumers’ brand decision, previous experience is mentioned the most.

Other decision-making factors for buying pizzas include price, coupons, and location.


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3.2. The solution

This section examines the campaign strategy.

3.2.1. Target audience:

The campaign targets consumers aged from 24 to 45 who directly make the purchase. (As

always, media planning and buying must take this into consideration).

3.2.2. Brand position:

The campaign shall highlight the image of Pizza Hut as a family styled, and high quality

brand that uses natural ingredients.

3.2.3. Communication objectives:

The desired response to the message from the target audience is they will think about

Pizza Hut every time they want to buy a pizza.

3.2.4. Proposition:

To motivate the target to respond, the message can emphasize the small number of times

consumers buy a pizza in a month. People should choose the highest quality product to

have the most satisfactory enjoyment, especially when the price difference is just in

penny unit. The message can even base on the concept that people tends to show higher

level of appreciation when they get more valuable offers.

3.2.5. Media considerations:

To achieve a high impression, the campaign shall be launched on both traditional media

including print (newspaper, magazines, and outdoors), radio, and television, as well as

nontraditional media including Pizza Hut website, and social media networks (Facebook,

Twitter, and Youtube).

3.2.6. Creative direction:

Keep the tone of voice natural. The visual and the story can be touching, but making

people think is mandatory.

4. Resources required

There are three important points affecting the resource assignment for this campaign.

- Pizza Hut is a highly important client.

- The campaign is designed with a tight schedule. (Refer to section 5 for the timeframe).


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- The campaign is going to employ a mix of media vehicles.

The following resources are required to implement the advertising strategy.

4.1. Print ads

Copywriter for print ads (newspaper, magazines, and outdoors)

Visual/Graphic designer for print ads (newspaper, magazines, and outdoors)

4.2. Radio commercial

Copywriter for radio commercial

Music and sound effects purchaser

Resource and studio to record the commercial

4.3. TV commercial

Copywriter for TV commercial

Director, talent, cinematographer, and other crews to shoot the video

Music and sound effect purchaser

Studio and technicians to record the sound, voice, and edit the video

4.4. Web

Copywriter for the web (Pizza Hut website, Facebook, Twitter, Youtube)

Web designer

5. Time frames for completion

Since the campaign is scheduled to debut from the beginning of February 2010, all the art works

have to be finished by the end of January 2010. The following completion timeframe is made

based on the agreement between the agency and Pizza Hut.

Date Milestones Required items

12/14/2009 Project starts None

12/21/2009 Initial creative review

- Print ads: copy-first version, rough pencil

sketch idea

- Radio commercial: rough radio script

- TV commercial: story for the video

01/10/2010 1st Interim creative review

- Print ads: half size with color, hand drawn or

electronic version

- Radio commercial: detailed radio script,

music and sound effects

- TV commercial: raw video record, music


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soundtrack and sound effect

01/17/2010 2nd

Interim creative review

- Print ads: full size, full color, hand drawn or

electronic version

- Radio commercial: record with voice and

sound effects

- TV commercial: 1st version video with both

sound and visual

01/20/2010 Final internal creative

presentation

- Print ads: revised version from previous

review

- Radio commercial: revised version from

previous review

- TV commercial: revised version from

previous review

01/25/2010 Client creative and media

presentation

- Print ads: full size, full color ads

- Radio commercial: full and edited record

- TV commercial: full and edited video

01/31/2010 Project completion All art works delivered to publication, Radio and TV

stations.

Table 3. Time frames for completion

6. Conclusion

The campaign “One delivery, multi-value” for Pizza Hut is challenging, yet it has a significant

meaning for the agency performance and reputation. Hence, it requires intensive efforts of the

agency members to win the client’s satisfaction and trust. As always, be creative, effective, and

timely.

pizza hut - ad campaign proposal

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