Present

THE PIZZA HUT MARKETING PLAN

FOR JULY 1, 2004 - JUNE 30, 2005

TABLE OF CONTENTS
I. SITUATION ANALYSIS
A. B. C. D. E. Market Overview Brand Review Competitive Analysis Consumer Profile Research

1-16
1-3 4-6 7-12 13-15 16

II.

PROBLEMS & OPPORTUNITIES

A. B. Key Problems Key Opportunities

17
17 17

III.

MARKETING
A. B. Objectives Strategy

18
18 18

IV.

MARKETING COMMUNICATIONS
A. B. Objectives Creative Strategy

19-20
19 19-20

V. VI.

CREATIVE EXECUTION MEDIA PLAN

A. B. C. D. Objectives Strategy Tactics Advertising Budget

21-27 28-35
28 28-29 30-34 34

VII.

SALES PROMOTION
A. B. Objectives Strategy

36-37
36 36-37

VIII.

PUBLIC RELATIONS
A. B. Objectives Strategy

39
38 38

IX. X. XI.

CAMPAIGN EVALUATION BUDGET SUMMARY ADDENDUM

A. B. Press Release Agency Bios

39 40 41-42
41 42

I. S I T U A T I O N A N A L Y S I S
A. MARKET OVERVIEW
1. Restaurants
The restaurant industry has grown to be an approximately $231 billion/year industry in 2003. It has grown $44 billion in the past 8 years between 1995 and 2003. The Quick Service Restaurant Category is the largest segment, with 55% market share).

Market Segmentation QSR Midscale Upscale Total

(Source: Pizza Hut).

($ In billions) $125.0 $59.5 $47.0 $ 231.5

(%) 55% 25% 20% 100%

2. Quickservice Restaurants
The quickservice restaurant industry grew to a $125 billion industry in 2001, an increase of 4.1 percent over 2000. The National Restaurant Association anticipates the industry to grow another 4.1 percent, to $130 billion in 2002. Market Size ($ In billions) 130.1 2002 124.9 2001 120.3 2000 114.5 1999 108.6 1998
(Source: National Restaurant Association).

+4.1% +3.8% +5.0% +5.4%

QSR Product Mix

Hamburgers and pizza dominate the QSR product mix. Hamburgers Pizza Sub Sandwiches Chicken Mexican Frozen Sweet Retail Oriental Donut Fish/Seafood Miscellaneous Total
(Source: Pizza Hut).

36% 19% 8% 7% 6% 5% 5% 2% 2% 2% 8% 100%

I. S I T U A T I O N A N A L Y S I S

Media Spending

The Quickservice restaurant industrys media spending budget increased to $3.75 billion in 2002, up from $3.49 billion the previous year. Diageo (Burger King, etc.) McDonalds Corporation Yum! Brands (Pizza Hut, Taco Bell, etc) Jack in the Box Inc. Wendys International Inc. Total Quickservice Media Spending
(Source: Euromonitor).

(In millions) $2,654.5 $653.8 $280.4 $98.6 $72.6 $3,759.90

3. Pizza Industry
The pizza industry has grown to $30 billion in 2002. Despite being relatively stagnant over the past few years, the pizza industry has grown approximately $5 billion, an approximate 15% increase, over the past 7 years from 1995. Pizza hut is the leading pizza chain with a 13.4% market share

Market Segmentation Pizza Hut Dominos Little Caesars Papa Johns Other Total 13.4% 8.4% 5.3% 4.6% 68.3% 100%

(Source: USA Today)

Seasonality

The pizza industry does not have any specific seasonality. However, there are special occasions or days that generate increased sales. Pizza Peaks Super Bowl Sunday New Years Eve Halloween The night before Thanksgiving New Years Day

1. 2. 3. 4. 5.

(Source: Dominos).

I. S I T U A T I O N A N A L Y S I S

Geographic Distribution There is a distinct geographic variation in pizza sales. The north-eastern region of the U.S. has the highest category development index (CDI). Geographic Area New England Mid-Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific
(Source: Pizza Hut).

CDI Above Average Significantly Above Average Above Average Below Average Below Average Significantly Below Average Below Average Average Below Average

Pricing The pricing for pizza ranges from $8 - $20, depending on the size and number of toppings. However, with use of certain promotional coupons, it is possible to buy pizzas for even less.

Distribution of Sales by Type of Outlet Restaurants lead the retail sales of pizza with 60.1% of total sales. Pizza Retail Sales National Chain Restaurants Locals/Mom&Pop Restaurants Non-Traditional Manufacturers Delis Regional Restaurant Chains Casual Dining Restaurants Total
(Source: Pizza Hut, 1995).

20.5% 18.1% 22.1% 21.0% 13.4% 2.8% 2.1% 100%

I. S I T U A T I O N A N A L Y S I S
B. BRAND REVIEW
1. Pizza Hut History
Pizza Hut is a division of YUM! Brands and is the largest restaurant chain worldwide. The company was started by a couple of entrepreneurs. Two brothers, mom and $600 turned into the recipe for the worlds largest pizza company in 1958, when a family friend with the idea of opening a pizza parlor approached the two college-age brothers in Kansas (Source: Pizzahut.com). Pizza Hut has won various awards for its standard of excellence. Services include dine-in, carry-out, and delivery (Source: Pizzahut.com).

2. Product
The Pizza Hut menu provides a variety of selections, such as:

4forAll Pizza Sicilian Pizza Honey BBQ Chicken Pan Pizza Hand-Style Tossed Pizza Thin n Crispy Stuffed Crust Pizza The Big New Yorker Pizza

Pizza Hut also offers a Lovers Line and PZone Pizzas in addition to the following menu items:

Appetizers/Salads: Breadsticks Wings (hot & mild) Garlic bread Salad Bar

Lunch Buffet: Spaghetti with marinara or meat sauce Kids meal (PPP w/drink) Dessert Pizzas (apple and cherry) Beverages soft drinks, beer, tea, coffee, and milk

I. S I T U A T I O N A N A L Y S I S
3. Key Features
a) Dominance in market share and strength of brand equity are two of the most compelling attributes of the Pizza Hut product. b) Challenges include:

Expanding growth opportunities for a mature brand in a saturated domestic market. Evaluating the nesting trend, seeking ways to increase traffic by promoting the dine-in experience Transforming the image of pizza as junk food in an increasingly health conscious environment.

4. Consumer Perceptions of the Product

The current perception of Pizza Hut is a phone number rather than a physical location or destination
(Source: Pizza Hut Case Study).

Pizza does not have a healthy image. Consumers often label pizza products as junk food. Pizza contains nutritious ingredients, such as vegetables and already offers several healthy products. Efforts should focus on existing positive attributes, finding ways to reinforce them, and bringing this to the attention of the consumer. Enhance the value of the product by changing perception, seeking to convert weakness into strength.
(Sources: Pizzamarketplace.com Count a pizzas sales potential before counting its carbs and calories). (Nations Restaurant News - Pizza Hut rolls out new lower-fat pie).

5. Pizza Hut Summary of Performance

Annual Sales ($Million) 1998 (-) 1999 (-) 2000 $3,973.0 $3,129.0 $2,469.0
(Source: Hoovers.com).

(-) 2001 (est.) $1,800.0

(+) 2002 (est.) $2,000.0

I. S I T U A T I O N A N A L Y S I S
6. Competitive Distinction (Key point of differentiation).
Pizza Hut embraces the entrepreneur spirit. It is the largest chain worldwide in terms of assets and sales revenue. The brand is distinguished from its competitors in three key areas: quality, performance and as a desirable place of employment. Examples of recognition include:

Honored as best Pizza chain in America in the Choice in Chains national consumer surveys annual publication of Restaurants & Institutions Magazine. Nominated The Best Company to Work For in Dallas/Fort Worth according to The Dallas Business Journal, 2000 and 2003. Noted for accomplishments in business and as pioneers of their industry by publications such as Restaurant Business, Fortune, USA Today and The Wall Street Journal (Source: Pizzahut.com).

7. Geographic Brand Development Index

Region North East Middle Atlantic East Central West Central South East South West Pacific Index 77 86 115 119 106 104 86 County Size City A B C D Index 86 101 114 124

(Source: Spring 1998 BDI figures for Pizza Hut consumers).

8. Channels of Distribution
The majority of Pizza Hut locations are franchises and joint venture partnerships, with over 12,300 units in 84 countries and territories. Pizza Hut operates 20% of these stores (Sources: Pizzahut.com, and Yum.com).

9. Creative Strategy
The current Pizza Hut strategy seeks to establish an experience of sharing pizza, associating Pizza Hut, the product or place with the experience of sharing. The goal is an enhanced value of the Pizza Hut experience, an asset, which appeals to a consumer trend of the strategic shopper. An example of this concept is the four in one pizza. The positioning strategy is Pizza Experience = Pizza Hut = Sharing.
(Source: American Advertising Federation - Pizza Hut Case Study).

The most recent commercial is the Jessica Simpson with Muppets commercial promoting the product.

I. S I T U A T I O N A N A L Y S I S
C. COMPETITIVE ANALYSIS
Pizza Hut currently ranks #1 in the pizza chain category in terms of sales. Pizza Huts main competitors are Dominos, Papa Johns, and Little Caesars. The following is an analysis of each of the major Pizza Hut competitors:

1. Dominos Inc.
Currently ranked #2 in sales in the pizza chain category and #8 overall in the quick-service chain category Annual Sales ($Millions) 1999 (+) 2000 (+) 2001 $1,156.6 $1,166.1 $1,258.3
(Source: Hoovers.com).

(+) 2002 $1,275.0

a) Distribution: (2002 store units) United States Franchised Company-owned International Total b) Sales according to distribution ($ mil) 676 376 141 1193 82 1275 (% of total) 53 30 11 94 6 100

4,271.0 577.0 2,382.0 7,230.0

Domestic Distribution Store Operations Company-owned Domestic Franchising Total United States International Total U.S. & International

c) Product

Features several different styles of pizza with a wide array of topping options. Menu includes additional items such as bread sticks, cheese bread, and chicken wings

I. S I T U A T I O N A N A L Y S I S

d) Positioning

Dominos prides itself on its delivery services, as its stores are principally delivery locations and generally do not have dine-in amenities Stands by its slogan that Dominos knows the rules of the pizza delivery game as it is ranked #1 in the pizza delivery category controlling 20% of that market

e) Strategy

Dominos focus on expanding its international operations in recent years while holding the number of domestic locations fairly even. The companys franchises each contribute a percent of their sales to fund both national marketing efforts and local advertising. Dominos places much emphasis on new-product development i.e. Dominos Dots (launched in 2003) balls of pizza dough covered with cinnamon and vanilla icing. Offers online ordering through franchisees.

f) Strengths

Leader in pizza delivery Delivery technology that locks heat into food during travel time. Competitive pricing that incorporates special promotional offers on one or more menu items ranging from chicken wings to soft drinks. Stores have no need for seating, therefore tend to be smaller with less startup and maintenance cost making it more appealing to franchisees.

g) Weaknesses

1993; $79 million judgment against Dominos resulting from a 1989 case in which a Dominos driver ran a red light and collided with another car when he was trying to fulfill the companys 30-minute delivery guarantee Delivery guarantee is revoked. Lacks sufficient dine-in amenities.

I. S I T U A T I O N A N A L Y S I S

2. Papa Johns International, Inc.

Currently ranked #3 in sales in the pizza chain category and #16 overall in the quick-service chain category.

Annual Sales ($Million) 1999 (+) 2000 (+) 2001 $805.3 $944.7 $971.2
(Source: Hoovers.com).

(+) 2002 $946.2

a) Distribution (2002 store units)

2,936 domestic and international locations. 2,342 Franchised 594 Company owned.

Sales according to distribution Domestic Company-owned units Commissary sales Franchise Royalties Franchise and development Equipment and other Total International Company-owned units & Commissary Royalties and Franchise fees Total Total Domestic and International
b) Product

($ mil) 429.8 381.2 51.4 1.7 56.1 920.2 26.2 5.8 32 952.2

(% of total) 45 40 6 0 5 96 3 1 4 100

Offers a variety of pizza styles and topping choices. Offers a variety of pizza styles and topping choices. Menu includes a few specialty pies such as The Works and All the Meats.

I. S I T U A T I O N A N A L Y S I S

c) Positioning

Papa Johns tries to differentiate itself from its competition through emphasis on the quality of its food. Advertises its commitment to using only fresh ingredients. Locations typically offer delivery and carry-out service only

d) Strategy

Marketing to emphasize the freshness of ingredients used requires its franchisees to buy key ingredients from the companys commissarys. In 1997, Papa Johns topped Pizza Hut in a consumer satisfaction survey as the best pizza chain as a result of the freshness marketing campaign. While keeping expansion to a minimum, Papa Johns began closing underperforming units in 2001 to focus on improving facilities and operations. 2002; began offering online ordering for its US locations. Introduced Papa Chickenstrips (2002) and a dessert Papas Cinnapie (2003)

e) Strengths

Regularly beats other chains in consumer satisfaction surveys because of regularly beats other chains in consumer satisfaction surveys because of freshness guarantee. Reorganized field management structure that allowed downsizing and thereby decreased overhead cost.

f)

Weaknesses

Limited amount of non-pizza items on menu. Freshness claim was revoked after owner admitted the chain used canned tomato sauce and canned mushrooms, Pizza Hut filed a lawsuit against Papa Johns accusing the company of false advertising. Lacks sufficient dine-in amenities.

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I. S I T U A T I O N A N A L Y S I S

3. Little Caesar Enterprises, Inc.

currently ranked #4 in sales in the pizza chain category and #21 overall in the quick-service chain category

Annual Sales ($Million) 1999 2000 $450.0 $450.0

2001 $450.0

(-) 2002 $421.0

a) Distribution

Little Caesars operates and franchises about 3,700 carryout pizza restaurants in more than 20 countries

b) Product

Little Caesars offers a variety of original and deep-dish pizzas along with cheese bread, salads, and sandwiches.

c) Positioning

The company made its mark most notably through its two-for-one Pizza! Pizza! advertisements. Reputation for discount prices and promotions.

d) Strategy

Looks to increase market share by expanding domestically and abroad. Decreased delivery services that were becoming to costly. Opened up mini-restaurants within larger chain stores including K-mart and Wal-Mart. 2001; embarked on a 5-year plan that focuses on expanding market share and improving employee training. 2002; company created a $3.5 million advertising budget to help franchisees promote a new menu featuring deep-dish pizza that is cut into triangles.

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I. S I T U A T I O N A N A L Y S I S

e) Strengths

Little Caesar units typically do not offer dine-in seating, meaning they can be operated in a variety of locations where larger restaurants could not. Can function within stores (i.e Wal-Mart). Cheap pricing. Franchisees are granted extensive input as far as ingredients and ad budget allowing them to make adjustments according to location and need of their particular customers (a result of a 2001 class action lawsuit). Known for its work with Little Caesars Love Kitchen (formed in 1985). A not-for-profit restaurant on wheels that delivers pizzas to soup kitchens and shelters in the US and Canada.

f)

Weaknesses

Wacky advertising created a slump in sales as the company has been branded by its discount pizza resulting in the closing of more than 1,000 underperforming company-owned and franchised locations. FCB Worldwide resigned in 2000 from its $40 million Little Caesars account after one year bad advertising stigma remains. Joint venture with K-Mart ultimately fails as K-Mart declares bankruptcy in 2002. Lacks sufficient dine-in amenities.

PIZZA CHAIN MARKET SHARE

Other Pizza Restaurants (non - chain) 68.3% Pizza Hut 13.4%

Domino's 8.4% Papa John's 4.6% Little Caesar's 5.3%

Fiscal Year End December 2002 (Source: USA Today).

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I. S I T U A T I O N A N A L Y S I S
D. CONSUMER PROFILE
1. Target Consumers
The primary Pizza Hut national target market is adults, both men and women, ages 18-55. These customers are generally divided into two groups: Core customers who use Pizza Hut 70%+ of their pizza occasions and Switchers who are not necessarily brand loyal to Pizza Hut but use us 20-69% of their pizza occasions. In comparison to the total QSR category and its various food types (i.e., hamburgers, sandwiches, Mexican, etc.), the pizza category skews stronger to larger households (5+ members). It has extremely weak usage among eaters and household heads older than 49. There is also a stronger presence of pizza eaters among higher incomes of $40M+. Pizza users have a directional tendency to be better educated and in professional and management jobs. The following is an MRI report from 1998 on demographic trends for all Pizza Hut restaurants. It provides a good idea of the trends stated above. MRI REPORT 1998- Pizza Hut Restaurant Heavy Users (more than 8 times in the last 30 days) Male Female H/D Income $60,000 74, 999 $50,000 59,999 $40,000 49,999 $30,000 39,999 $20,000 - 29,999 $10,000 19,000 Less than $10,000 County Size A (City) County Size B County Size C County Size D (Rural)
(SOURCE: MRI DATA 1998).

$75,000

INDEX 95 104 101 113 108 99 103 98 88 90 86 101 114 124

It is worth noting that when evaluating the consumers of the Pizza Hut category, demographic descriptors do not clearly separate the users of the various kinds of restaurants and food type. Virtually everyone eats pizza at some time. It is the occasion differences that truly help to explain the different choices consumers make.

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I. S I T U A T I O N A N A L Y S I S
2. Pizza Usage
Pizza has a very low frequency of 1.4 times per month as compared to the QSR category of 3.8 times per month. Consumers may use frequency to control their total expenditures across food choices or the relative cost of pizza may simply discourage more frequent use. The pizza business skews more to occasions with kids especially under the age of 12 than all QSRs. Of course, the majority of occasions come from adults. The following tables provide more detailed information noted above. Pizza Hut generally reflects the pizza category and how it compares to the QSR category. (All data is based on percent of traffic on an average annual basis).

3. Usage Data
1997 DEMOGRAPHIC ANALYSIS (PIZZA HUT VS. QSR) ALL HH Size One Two Three-Four Five+ Rest. 12.5% 30.3% 41.9% 15.3% ALL Income Under $10M $10-14999 $15-19999 $20-29999 $30-39999 $40-49999 $50-59999 $60M+ AGE OF HH Head Under 25 25-34 35-49 65+ DISTRIBUTION Rest 6.0% 7.3% 6.6% 17.3% 16.7% 16.1% 10.6% 19.3% ALL Rest. 6.7% 27.2% 34.0% 11.8% ALL QSR 7.4% 30.0% 36.3% 8.9% Pizza Hut 9.5% 34.9% 40.0% 3.6% QSR 6.4% 7.4% 6.8% 17.7% 17.1% 26.3% 10.4% 17.9% Pizza Hut 6.1% 10.1% 5.5% 14.1% 16.6% 18.8% 10.4% 18.5% QSR 11.1% 26.5% 44.8% 17.6% Pizza Hut 6.3% 17.2% 51.6% 24.9% INDEX TO ALL Restaurants 50 57 123 163 INDEX TO ALL Restaurants 102 138 83 82 99 117 98 96 INDEX TO ALL Restaurants 142 128 118 31 INDEX TO ALL Restaurants 67 255 181 300 147

Of Parties Rest. QSR Pizza Hut Adults Only 80.2% 76.5% 53.8% Adults w/ 12 & Under 12.0% 14.1% 30.6% Adults w/ 13-17 2.7% 3.1% 4.9% Adults w/ both 2.1% 2.6% 6.3% Under 18 Only 3.0% 3.8% 4.4% (SOURCE: American Advertising Federation 1997)

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I. S I T U A T I O N A N A L Y S I S
4. Brand Attitudes
In order to gain a better grasp on the consumer awareness and attitudes for the Pizza Hut Brand and its advertising strategies, two agency teams conducted a personal intercept survey in the United States during the weeks of 2/2/04 through 2/13/04. The survey concentrated on interviewing a total of a hundred pizza consumers, asking questions regarding their frequency of consumption, brand awareness, brand attitude, as well as awareness of Pizza Hut advertising.

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I. S I T U A T I O N A N A L Y S I S
JANUARY 2004 NATIONAL PIZZA HUT SURVEY
(Percentages are also total responses) 1. How many times do you eat pizza in a typical 30-day period?
1-2 times 3-5 times 6 times or more 44% 40% 16%

Total

100%

2.

Who do you usually eat pizza with? (You may choose more than one).
Self Friends Family 53% 60% 40%

*Total

153%

3.

Awareness:
Top of Mind Unaided Aided 14% 66% 20% Total Unaided Total Awareness 80% 100%

4.

Have you ever eaten at PIZZA HUT?

Yes 83% No 17% Total 100%

5.

How would you rate PIZZA HUT on a scale of 1-10 (1= poor, 10= excellent)?
(1) (2) (3) (4) (5) 6.8% 5.5% 4.1% 13.7% 20.6% (6) (7) (8) (9) (10) 16.5% 16.5% 8.1% 5.5% 2.7% Averages Mean Median Mode Total 5.3% 5.0% 5.0% 100%

6.

Have you seen any PIZZA HUT advertising lately?

Yes 53% No 47% Total 100%

7.

If respondent said yes to Question 9, ask Can you describe the advertising you have seen?
4 for 4 Family 4 for 4 Muppets/J. Simpson Newspaper/Coupon Other Dont remember 20% 11% 5% 8% 9%

Total

53%

8.

Where did you see the advertising?

TV Newspaper Other 94.3% 9.4% 3.9%

(% of 53)

*Total

107.6%

9.

Demographics
Male >18 >25 White Black Other 50% 34% 32% 58% 15% 2% Female >35 >45 Hispanic Asian 50% 20% 14% 13% 12% Total 100% Total Total 100% 100%

*Add up to more than 100% because of multiple answers from interviewees.

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II. P R O B L E M S & O P P O R T U N I T I E S
A. KEY PROBLEMS THAT MUST BE OVERCOME

Consumers perceive pizza products as fattening and unhealthy. Consumer attitudes toward PIZZA HUT brand are a 5 on a scale of 1-10. The PIZZA HUT brand does not effectively convey high quality taste. Consumers perceive PIZZA HUT as a phone number rather than a restaurant. PIZZA HUT sales have declined with only moderate increases in 2002 and 2003.

B. KEY OPPORTUNITIES TO BE MAXIMIZED

PIZZA HUT is the leader in the pizza chain industry. PIZZA HUT is the leader in dine-in pizza restaurants. Unaided brand awareness of PIZZA HUT is 80%. Over 50% of population is aware of PIZZA HUT advertising. 50% of population has viewed PIZZA HUT TV ads. People usually eat pizza with friends and family.

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III. M A R K E T I N G
A. MARKETING OBJECTIVES

(JULY 1-2004-JUNE 30 2005)

Increase annual sales revenue from $2.0 billion in 2002 by 15% ($300 million) to 2.3 billion in 2004-5. Increase market share from 13.4% to 14.0%.

B. MARKETING STRATEGY
1. Target Market

The target market for Pizza Hut includes men and women, 18-55, and an annual income over 20k throughout the U.S. More specifically, this includes professionals, large families with young children, and college students.

2. Brand Positioning

Pizza Hut is the best pizza experience for busy lifestyles. Pizza Hut achieves this position by giving the consumer a choice, offering traditional pizza selections in addition to a wide variety of unexpected products.

3. Products Recommendations

Introduce Sweet pies, a delicious apple dessert. Continue uncheesy pizza, offering healthy alternatives.

4. Price

Remain competitive.

5. Distribution

Continue current distribution strategy.

6. Promotional Strategy

Advertising Sales Promotions Public Relations

7. Budget

$100 Million 18

IV. M A R K E T I N G C O M M U N I C A T I O N S

C. MARCOM OBJECTIVES

To increase unaided brand awareness from 80% to 90%. To achieve 50% awareness of the new ad campaign. To increase traffic. To increase brand loyalty and preference. To improve attitudes about the quality of PIZZA HUT products from 5 to 6 on a scale of 1-10. To communicate PIZZA HUT as the healthy alternative to other quick service products. To communicate the wide variety of choices at PIZZA HUT.

D. CREATIVE STRATEGY
1. Target market

Males and females 18 to 55. Families with young children, college students, and young professionals. Income of $20k and above. Consumers with busy lifestyles are more likely to be heavy users of quick service products (Source: BDI spring 1998).

2. Consumer benefit

PIZZA HUT offers the consumer a great pizza experience.

3. Support/Reason why

Busy lifestyles require a wide variety of products, providing choice and convenience. Choice between traditional products and non traditional. Quality assured from a number one pizza chain. Valued experience with family and friends. Quality taste, great service, and participating in what has become an American tradition at a competitive price all add up to a joyful pizza experience.

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IV. M A R K E T I N G C O M M U N I C A T I O N S
4. Tone:

People pleasing atmosphere with an abundance of healthy, fun, convenient choices for family, co-workers, and friends.

5. Campaign Theme:

Pizza Hut - where youll find everything pizzaand more.

6. Rationale:

By offering a variety of menu choices, PIZZA HUT fulfills the needs of consumers with busy lifestyles. Everything expected from a traditional pizza restaurant, in addition to progressive menu items leads to the joy of a great pizza experience. The tagline combines the consumer benefits of quality choices and convenience with traditional values for busy consumers. The phrase embodies these ideals by conveying the PIZZA HUT experience as pleasurable with plenty of options and personal preferences. Therefore, the theme includes the rational appeal of necessity and choice as well as the emotional value of ease and pleasure accompanying these options.

7. Mandatories:

The PIZZA HUT red should be matched to the color PMS 186 Approved colors of PIZZA HUT logo include:

Red roof, red letters. Red roof, black letters. Red roof, white letters. Black roof, black letters. White roof, white letters against red or black background.

Do not alter the red roof, the PIZZA HUT logo or the logo typeface; keep them clear of other words, designs or marks. The red roof can be used alone as a mark, but it cannot have any other words or designs under, above or near it so as to create a new logo or design. Do not use PIZZA HUT in the plural or possessive form; do not combine into one word or make one word into two; do not add hyphens or apostrophes.
(Source: Pizza Hut Case Study).

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V. C R E A T I V E E X E C U T I O N

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V. C R E A T I V E E X E C U T I O N

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V. C R E A T I V E E X E C U T I O N
Everything PizzaAnd more Creative Execution
30 Second Commercial

LS: Pizza Hut Restaurant Welcome to Pizza Hut. What can I get you ladies today?

CU: Donna creases her brow quixotically. I dont know. What do you have thats not too fattening, but taste really good? Im trying to get in that new dress in time for Tinas party

CU: Shelby overlapping Donna. Oh Donna. Come on, Im starved.

CU: Frank the waiter Dont worry we have lots of choices. You should try our un-cheesy pizza. It has 1/3 the fat and 60 fewer calories. It tastes great too. Youll love it.

CU: Shelby I dont want any diet. I love your cheese pizza.

CU: When Frank says Donna, he winks at her. This is Pizza Hut. We have something for everyone, Donna.

XCU: Donna flirts back with Frank the waiter. Really?

XLS: Voice over Try our cheeseless pizza and experience the joy of choice. Yeah! Pizza Hut, where youll find everything pizzaand more

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V. C R E A T I V E E X E C U T I O N
Everything PizzaAnd More
Billboard and Print Advertisement

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V. C R E A T I V E E X E C U T I O N

Radio Script Product: Pizza Hut Length: 30 seconds Title: Little League Champions MVO: (Announcer) Were live at the Valley Little League Championships where the Bears and the Dodgers are tied at the bottom of the ninth with bases loaded and Bobby Smith up at bat. MVO: (Coach) Cmon Bobby its up to you2 outsbring em homeand if we win you know where were going. SFX: Cheers from the crowd. MVO: (Announcer) Bobby steps up to the plateand the pitcher winds upheres the pitch SFX: Sound of the bat smacking the ball. SFX: Cheers of joy from Bobbys teammates. FVO: (Waitress) Hey guys welcome to Pizza Hutcan I take your order? MVO: (Announcer) What makes the best the bestPizza HutEverything Pizzaand More.

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V. C R E A T I V E E X E C U T I O N

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V. C R E A T I V E E X E C U T I O N

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VI. M E D I A P L A N
A. MEDIA OBJECTIVES
1. Target Audience

To deliver a target audience of men and women, ages 18- 55. Preferably in households with three or more persons and children. Special attention will be given to those with middle and upper income and education.

2. Geography

To provide a base of advertising nationally, with additional advertising placed in areas that have historically had the greatest sales. Special attention will be given to areas based on developing brand potential as the preferred fast food and delivery service.

3. Continuity

To deliver advertising throughout the year. Flighting and pulsing strategies will be arranged in accordance with specific periods of peak sales.

4. Reach and Frequency

To emphasize reach for the new campaign and maximize frequency within budget.

B. MEDIA STRATEGY
Develop a media mix as follows:

1. Television
a) Television will be the primary medium for the new Pizza Hut campaign. b) Network television outlets allow national coverage and expanded reach to all target audiences. c) Through national cable television the campaign can reach special demographics, and run more targeted commercials. d) Different times, dayparts, and shows allow for further selectivity. e) Allows great creative flexibility with the integration of sight, sound, and motion, and makes possible dramatic representations of the product.

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VI. M E D I A P L A N
2 Radio
a) Radio will support television advertising. b) It allows for more frequency than the other media. c) Stations are already segmented so it is easy to target specific markets by different station formats or programming. d) Radio is less expensive than television.

Newspaper
a) Newspapers will also be used for the Pizza hut campaign. b) It is a medium capable of reaching numerous market segments. c) It allows for individualized local advertising. d) Allows greater control of geographic placement. e) Also serve as a medium to supply promotional material such as Sunday coupons and special offers.

Internet
a) Internet advertising will run in the Pizza Hut website. b) The campaign will consist of embedded banner ads in the Pizza Hut and Pizza Hut sponsored websites. c) Pizza Hut has used their website in order to reinforce their advertisements and product promotions. d) It allows for cross-promotions. e) Allows an interactive campaign with direct feedback potential. f) Proximity to purchase, promotions are offered when consideration for an internet delivery order is taking place.

g) Integrates all types of media thus establishing the integrated marketing strategy h) Since it is using the Pizza Hut website it is considerably inexpensive.

Outdoor (Test) a) Outdoor advertising will consist entirely of billboards. b) They are permanent and can not be turned off by consumers. c) There is a greater reach and frequency than other media for the cost. d) Billboards allows for geographic and demographic flexibility. e) There is a low cost per thousand.

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VI. M E D I A P L A N
C. MEDIA TACTICS
Television 30 Seconds

1. Network
a) Daypart: Primetime. b) Flighting: two weeks in, two weeks out, with additional runs during especial programming such season finale, and sports playoffs, finals. c) Stations: CBS, NBC, FOX, ABC. d) Programming:

Sitcoms: Will & Grace, Raymond, That 70s Show Dramas: Boston Public, CSI, The OC Reality TV: American Idol, Survivor, The Apprentice Sports: NFL, College Football, NBA, Baseball

e) Special event spot: SuperBowl.

A specific advertisement will be developed for Pizza Hut to air during the SuperBowl. It is a $2M cost for the 30 second spot.The Super Bowls reach exceeds 90 million people nationally.

2. Syndicates
a) Dayparts: Early Fringe. b) Flighting: two weeks in, two weeks out.. c) Stations: ABC, FOX, WB d) Programming:

Sitcoms: Friends, Will & Grace, Seinfeld, The Simpsons Dramas: Law & Order, ER. Game Shows: Wheel of Fortune, Jeopardy

3. Cable
a) Dayparts: Early Fringe and Primetime. b) Flighting: two weeks in, two weeks out. c) Stations: MTV, ESPN, TNT, Comedy Central.Programming:

Reality Television: Newlyweds, The Osbournes, TRL Sitcoms: Chappelles Show, South Park Sports: NBA, NFL, College Football, Baseball

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VI. M E D I A P L A N
Top 25 TV Markets Ranked by TV Households, 2003
Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Designated Market Area (DMA) New York, NY Los Angeles, CA Chicago, IL Philadelphia, PA San Francisco-Oakland-San Jose, CA Boston, MA (Manchester, NH) Dallas-Ft. Worth, TX Washington, DC (Hagerstown, MD) Atlanta, GA Detroit, MI Houston, TX Seattle-Tacoma, WA Minneapolis-St. Paul, MN Tampa-St. Petersburg (Sarasota), FL Miami-Ft. Lauderdale, FL Phoenix, AZ Cleveland-Akron (Canton), OH Denver, CO Sacramento-Stockton-Modesto, CA Orlando-Daytona Beach-Melbourne, FL Pittsburgh, PA St. Louis, MO Portland, OR Baltimore, MD Indianapolis, IN

TV Households 7,301,060 5,303,490 3,360,770 2,801,010 2,426,010 2,315,700 2,201,170 2,128,430 1,990,650 1,878,670 1,831,680 1,647,230 1,573,640 1,568,180 1,549,680 1,536,950 1,513,130 1,381,620 1,226,670 1,182,420 1,148,340 1,143,690 1,069,260 1,023,530 1,013,290

% of US 6.924 5.030 3.187 2.656 2.301 2.196 2.088 2.019 1.888 1.782 1.737 1.562 1.492 1.487 1.470 1.458 1.435 1.310 1.163 1.121 1.089 1.085 1.014 0.971 0.96

(Source: Northwestern University Center for Media Management www.mediainfocenter.org).

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VI. M E D I A P L A N
4. Radio - 60 second spots
a) Markets: top 25 markets (see list below) b ) Formats: top 40 radio, news, talk c) Daypart: am/pm drive, weekend sports broadcasts. d) Flighting: Monday through Friday; three weeks on, one week off; 3 spots per daypart/per station.

Top 20 Radio Markets Ranked by Metro 12+ Population, 2003

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Market Name New York Los Angeles Chicago San Francisco- Oakland- San Jose Dallas-Ft. Worth Philadelphia Houston-Galveston Washington, DC Boston Detroit Atlanta Miami-Ft. Lauderdale-Hollywood Seattle-Tacoma Phoenix Minneapolis-St. Paul San Diego Nassau-Suffolk (Long Island) St. Louis Baltimore Tampa-St. Petersburg-Clearwater Metro 12+Population 15,060,900 10,195,600 7,470,100 5,835,100 4,314,800 4,229,200 3,973,100 3,862,000 3,846,100 3,825,600 3,526,800 3,360,100 3,067,200 2,647,600 2,494,400 2,384,200 2,308,400 2,183,500 2,156,700 2,098,600

(Source: Northwestern University Center for Media Management www.mediainfocenter.org).

5. Newspapers
a) Markets: top 50 markets (see list next page) b) Ad size: full page (8 x 11), 4-color inserts with coupons. c) Type of papers: metropolitan. d) Flighting: weekend editions, according to promotion schedule determined.

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VI. M E D I A P L A N
Top 50 Newspaper Markets Ranked by Population, 2003
RANK POPULATION NAME
1 21,199,865 New York-Northern New Jersey-Long Island, NY, NJ, CT, PA CMSA 2 16,373,645 Los Angeles-Riverside-Orange County, CA CMSA 3 9,157,540 Chicago-Gary-Kenosha, IL, IN, WI CMSA 4 7,608,070 Washington-Baltimore, DC, MD, VA, WV CMSA 5 7,039,362 San Francisco-Oakland-San Jose, CA CMSA 6 6,188,463 Philadelphia-Wilmington-Atlantic City, PA, NJ, DE, MD CMSA 7 5,819,100 Boston-Worcester-Lawrence, MA, NH, ME, CT CMSA 8 5,456,428 Detroit-Ann Arbor-Flint, MI CMSA 9 5,221,801 Dallas-Fort Worth, TX CMSA 10 4,669,571 Houston-Galveston-Brazoria, TX CMSA 11 4,112,198 Atlanta, GA MSA 12 3,876,380 Miami-Fort Lauderdale, FL CMSA 13 3,554,760 Seattle-Tacoma-Bremerton, WA CMSA 14 3,251,876 Phoenix-Mesa, AZ MSA 15 2,968,806 Minneapolis-St. Paul, MN, WI MSA 16 2,945,831 Cleveland-Akron, OH CMSA 17 2,813,833 San Diego, CA MSA 18 2,603,607 St. Louis, MO, IL MSA 19 2,581,506 Denver-Boulder-Greeley, CO CMSA 20 2,395,997 Tampa-St. Petersburg-Clearwater, FL MSA 21 2,358,695 Pittsburgh, PA MSA 22 2,265,223 Portland-Salem, OR, WA CMSA 23 1,979,202 Cincinnati-Hamilton, OH, KY, IN CMSA 24 1,796,857 Sacramento-Yolo, CA CMSA 25 1,776,062 Kansas City, MO MSA 26 1,689,572 Milwaukee-Racine, WI CMSA 27 1,644,561 Orlando, FL MSA 28 1,607,486 Indianapolis, IN MSA 29 1,592,383 San Antonio, TX MSA 30 1,569,541 Norfolk-Virginia Beach-Newport News, VA, NC MSA 31 1,563,282 Las Vegas, NV, AZ MSA 32 1,540,157 Columbus, OH, MSA 33 1,499,293 Charlotte-Gastonia-Rock Hill, NC, SC MSA 34 1,337,726 New Orleans, LA MSA 35 1,333,914 Salt Lake City-Ogden, UT MSA 36 1,251,509 Greensboro-Winston-Salem-High Point, NC MSA 37 1,249,763 Austin-San Marcos, TX MSA 38 1,231,311 Nashville, TN MSA 39 1,188,613 Providence-Fall River-Warwick, RI, MA MSA 40 1,187,941 Raleigh-Durham-Chapel Hill, NC MSA 41 1,183,110 Hartford, CT MSA 42 1,170,111 Buffalo-Niagara Falls, NY MSA 43 1,135,614 Memphis, TN, AR MSA 44 1,131,184 West Palm Beach-Boca Raton, FL MSA 45 1,100,491 Jacksonville, FL MSA 46 1,098,201 Rochester, NY MSA 47 1,088,514 Grand Rapids-Muskegon-Holland, MI MSA 48 1,083,346 Oklahoma City, OK MSA 49 1,025,598 Louisville, KY, IN MSA 50 996,512 Richmond-Petersburg, VA MSA (Source: Northwestern University Center for Media Management www.mediainfocenter.org).

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VI. M E D I A P L A N
6. Outdoor - Advertising will be tested in two markets
a) Outdoor increases brand awareness as well as nearby franchise location awareness. b) Markets: Denver, CO and Buffalo, NY. c) Placement: High traffic highways and freeways and near franchise restaurants. d) Schedule: December March. e) Total Reach/Frequency: 100GRPs.

7. Internet
a) Channel: Pizza Hut website. www.pizzahut.com. b) Ad types: Flash Animated, embedded, banner c) Schedule: Year-round. d) Most advertisements on television and print will feature a Pizza Hut website reference. e) Potential advertisement exposure throughout 24-hour period.

D. ADVERTISING BUDGET - $82.5 Million

Media Expense Television Newspaper Radio Internet Outdoor Total Media Production Total ($-millions) Amount $50. 0 $20.0 $10.5 $1.0 $1.0 $82.5 $15.0 $97.5 (% of 82.5mil) Percent Total Budget 60.4% 24.6% 12.4% 1.3% 1.3% 100% of 82.5 15% 100% of 97.5

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VI. M E D I A P L A N ADVERTISING FLOW CHART

July through December 2004
Month Week Media Television Network Syndication Cable Radio Newspaper Outdoor Internet

JULY
4 11 18 25 1 8

AUGUST
15 22 29 5

SEPTEMBER
12 19 26 3

OCTOBER
10 17 24 31 7

NOVEMBER
14 21 28 5

DECEMBER
12 19 26

January through June 2005

Month Week Media Television Network Syndication Cable Radio Newspaper Outdoor Internet

JANUARY
2 9 16 23 30 6

FEBRUARY
13 20 27 6

MARCH
13 20 27 3

APRIL
10 17 24 1 8

MAY
15 22 29 5

JUNE
12 19 26

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VII. S A L E S P R O M O T I O N
A. OBJECTIVES

To build traffic in order to achieve the increase in Pizza Hut sales by 15%, from $2 billion to $2.3 billion. To help achieve marketing communications objectives. To reach potential new consumers. To encourage trial of Pizza Huts new Sweet Apple Pie desert. To build online traffic of the Pizza Hut website in order to maintain brand awareness and encourage an increase in pizza consumption.

B. STRATEGIES
1. Online Jessica Simpson Sweet-stake:
Pizza Hut will organize an online sweepstake that will simultaneously be promoted with the new Sweet Apple Pie campaign. The two grand prize winners of the sweepstake will receive backstage passes and a chance to meet Jessica Simpson and Nick Lachey at a taping of their new variety show. The second place prize will give the entirety of Jessica Simpsons new Desert cosmetic line to ten people. In addition, Jessica Simpsons new CD will be given to another 500 entrants of the sweepstakes. Both the television and insert advertisements will encourage customers to visit pizzahut.com to enter the sweepstake. Because research shows that the Jessica Simpson and Muppet Babies commercial that aired during the 2004 Super Bowl is one of the more memorable Pizza Hut commercials, utilizing this familiarity with Simpson in an online sweepstake will prove very beneficial. Also Simpson will be re-releasing her newest album, Sweetest Sin, and a new cosmetic line named Desert, which is related to the Pizza Hut Sweet campaign.

2. Discount Coupon Inserts:

Two different inserts advertising new or existing products with discount coupons will be in the Sunday Newspapers of the top 50 markets. The first will promote Pizza Huts new desert, the Sweet Apple Pie. The insert will promote the Jessica Simpson online sweepstakes, giving a few details and encouraging customers to visit pizzahut.com to enter the contest. It will also provide four discount coupons that include a free apple pie with purchase of different types of pizzas. Ultimately, it will be an incentive for customers to try the new product. The second will promote the cheese-less pizza, emphasizing the healthier benefits for health conscious consumers. This insert will also include four discount coupons of different combinations that will allow customers to try their favorite pan pizza without cheese.

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VII. S A L E S P R O M O T I O N
C. BUDGET

$1,500,000

D. CALENDAR

Online Jessica Simpson Sweet Sweet-take will begin in July, 2004 and end October, 2004 Discount Coupon Insert for the new Sweet Apple Pie will coincide with the online sweepstake and be inserted in newspapers from January, 2005 through May, 2005. Discount Coupon Insert for the cheese-less pizza will run June, 2004 through October, 2004

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VIII. P U B L I C R E L A T I O N S

A. OBJECTIVES

To reposition Pizza Hut as a more healthy food brand. To enhance public opinion of the Pizza Hut brand. To provide public with information about new campaign and products. To get magazines to publish articles about Pizza Huts new campaign and products.

B. STRATEGIES

Continue distributing press kits, press releases, new product announcements, etc., to the media.

C. BUDGET
$100,000

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IX. C A M P A I G N E V A L U A T I O N

A. MEASURE SALES OF NEW PRODUCTS

By analyzing the monthly sales figures of Pizza Hut, it will be possible to see if the sales are meeting the project sales figures needed in order to increase sales by 15%. Also, in order to measure the effectiveness of our marketing plan, it is important to evaluate the media to assess whether we are reaching the desired demographic.

B. CONDUCT SURVEY

To measure: Brand Awareness. Advertising Awareness. Product Attitude.

C. FOCUS GROUPS

To conduct focus groups every three months to determine the consumers opinion of Pizza Hut, its new products, and its new advertising.

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X. B U D G E T S U M M A R Y
A.

TOTAL CAMPAIGN BUDGET

Television Newspaper Insert Radio Internet Billboard Total Advertising Sales Promotion Public Relations Evaluation Total Production Total Campaign $50,000,000 $20,000,000 $10,500,000 $1,000,000 $1,000,000 $82,500,000 2,000,000 100,000 400,000 $2,500,000 15,000,000 $100,000,000 60.4 24.6 12.4 1.3 1.3 100% of $82.5 2.0 0.1 0.4 2.5 15 100%

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XI. A D D E N D U M
PIZZA HUT ANNOUNCES THE RELEASE OF THEIR NEW SWEET APPLIE PIE TO BE PROMOTED WITH NEW JESSICA SIMPSON SWEET CAMPAIGN FOR IMMEDIATE RELEASE March 29, 2004 Contact: DeVillartiss & Shrader (212) 555-1234

New York (March 29, 2004)Pizza Hut has once again joined forces with Americas newly-wed Sweet hearts, Jessica Simpson and husband Nick Lachey, to promote their brand new desert productthe Sweet Apple Pie. By adding a desert item to their

growing menu, Pizza Hut further provides a greater number of choices for the Pizza Hut customer. Pizza Huts Sweet campaign will be heavily promoted through television commercials, newspaper inserts, and an online Sweepstakes. The Sweet Apple Pie will be available for both delivery and at Pizza Hut restaurant locations for $5.99. Research has shown that the most memorable Pizza Hut advertisement of recent years has been the Jessica Simpson and Muppet Babies commercial that ran during the 2004 Super Bowl. To highlight the Sweet campaign, Pizza Huts online sweepstakes will give two lucky winners backstage access to the couples new upcoming variety show and the chance to meet Nick and Jessica while sharing a great-tasting Sweet Apple Pie. The second place prize of Simpsons entire new cosmetic lineDesertwill be given to ten lucky winners. Finally, Pizza Hut will give away Simpsons new CD to 500 lucky winners. The sweepstake will be promoted through television advertisements and newspaper inserts/discount coupons, encouraging viewers to go to www.pizzahut.com and enter the sweepstake for a chance to win the fantastic prizes.

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XI. A D D E N D U M

AGENCY BIOGRAPHIES
Michael K. Artiss - Account Executive Prior to joining the DeVillartiss & Shrader team as an Account Executive, Mr. Artiss gained valuable marketing experience through his work at Universal/Motown Records and Disney/WABC-TV. He received his undergraduate education in New York Universitys esteemed Department of Culture and Communication. Sharon DeGennaro - Copywriter A graduate with honors from New York University, Ms. DeGennaro holds a Bachelor of Science in Communications Studies and earned Deans List status all four years. As a copywriter for DeVillartiss & Shrader, she brings her experience from Dreamworks Pictures, SKGs National Marketing Department and wrote a column, which was published in Zagats 2003 Guide to the Best Long Island Restaurants. During her time at NYU, she was a University Athletic Association 1st Team All-Conference and All-Academic Team selection as a member of the Womens Varsity Soccer squad. She currently resides in Manhattan. Charlsey Shrader - Creative Director Ms Shraders most recent experience was as Marketing Coordinator for Salomon Smith Barney where she researched the performance of stocks, bonds, and mutual funds then generated financial documents and presentations to communicate methods for growing client assets. At Credit Suisse First Boston, she worked on the trading floor producing presentations in a fast-paced environment for executives. In addition, she has worked at Ketchum Advertising and is an active member of the Screen Actors Guild, having prior experience as an actor. Ms. Shrader received her Bachelor of Science in Communication Studies at New York University, where she graduated with high honors as a member of Lambda Pi Eta and wrote an article for the paper, Medium Cool. She also holds an Associates degree in Business Administration from City University of New York and has attended Vassar College. Aimee Villalona - Media Planner Ms. Villalona will be completing her Bachelor's in Communication Studies from New York University in May. She has concentrated in Advertising and has taken a number of advertising and marketing studies to prepare her for her career in this field. This is her first experience as media planner and working within an agency. She is proud to be a part of the amazing team of DeVillartiss & Shrader.

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