2. Capitol Advertising’s Experience The Flavor of Now campaign achieves 75% digital orders by December 31, 2015. Our campaign
strategically breaks through existing perceptions of Pizza Hut, increases The Flavor of Now awareness, improves Pizza Hut brand
preference, aligns Pizza Hut with fun, and increases digital orders to meet Pizza Hut’s campaign goal.
We at Capitol Advertising made a conscious decision to build onto The Flavor of Now campaign. People like The Flavor of Now’s new
ingredients and flavors, but conventional marketing strategies have only generated 14% awareness.
Our top priority is for consumers to experience the flavor and the new ordering features. Competitors have rebranded their menus
and experiences, yielding an increase in online orders - yet Pizza Hut and its competitors’ online ordering sales hover around 45%. For
Pizza Hut to achieve the next level of digital success, a traditional ad campaign simply won’t work. That’s why our disruptive
approach gets Pizza Hut to 75%.
To jumpstart our campaign, we spread awareness by giving away 1,000 free Flavor of Now pizzas each day for 100 days. Customers
enter to win by ordering digitally. At the beginning of their order, customers spin the Flavor Wheel, a fun new feature of the app and
website, where they can win a free Flavor of Now pizza, side, or dessert. Our extensive testing shows that getting consumers to try
the product disrupts and grabs pizza eaters’ attention. Not only do we get their attention—they immediately want to share it with
everyone. Our campaign strategically exposes people to the menu through the rallying call: #freepizza.
Giving away #freepizza is our comprehensive digital acquisition strategy that ignites brand awareness and perception. This is how our
campaign builds a deeper bond with consumers. Our testing showed that once we increase awareness of The Flavor of Now,
perceptions of Pizza Hut increase positively by 17%, and consumers are 15% more likely to order digitally.
Our four-pronged strategy achieves our campaign goal and builds a long-term strategy for retaining digital orders:
• Consumers Experience The Flavor (52% of budget) by increasing exposure of The Flavor of Now menu and promoting #freepizza
at Pop-Up Pizza Parties through TV, Hulu, YouTube, and E-Mail.
• Consumers Experience The Digital Innovation (17% of budget) through a personalized and entertaining ordering experience with
updated digital features including the Flavor Wheel, split pay, and real-time delivery tracking.
• Consumers Experience The Fun (25% of budget) through non-conventional media executions that generate trial using Pop-Up
Pizza Parties and drones, the “Hut Truck Travels” blog, Xbox “PAUSE,” partnerships with Airbnb and digital influencers, social media,
and Spotify and Pandora ads.
• Consumers Create With Us (6% of budget) through CSR, co-creation, deals, and incentives through the Hut Club loyalty program.
This campaign resonates with our target markets: Hut Lovers, Rival Diners, and Food Techies.
• Hut Lovers are family-oriented and prefer Pizza Hut, but most are not ordering digitally. Hispanics and Blacks have a high
propensity to order from Pizza Hut and are growing segments of the US population.
• Rival Diners are price-conscious and socially engaged pizza-lovers who order digitally from competitors like Domino’s, Papa John’s,
Little Caesars and mom-and-pop shops.
• Food Techies order pizza or other foods digitally, seeking quality ingredients, customization, convenience, and a varied menu.
We appeal to and engage with these target markets through multiple points of entry, experiencing The Flavor of Now, and creating
with us. The Experience The Flavor of Now campaign positions Pizza Hut as the brand that offers the most modern, diverse,
innovative, and fresh flavors making it fun to order, eat, and share the experience. It allows for continual digital growth and makes
Pizza Hut top-of-mind. It increases awareness of The Flavor of Now, engages customers with the best digital experience, and creates
loyalty, while solidifying Pizza Hut’s position as the owner of fun.
EXECUTIVE SUMMARY
01 // EXECUTIVE SUMMARY
TABLE OF
CONTENTS
02
03
04
05
06
08
09
10
11
13
16
20
22
23
24
25
26
Research
SWOT Analysis
Competitor Analysis
Insights & Positioning
Target Markets
Disrupting the Purchase Funnel
How to Get to 75%
Objectives
Experience the Flavor
Experience the Digital Innovation
Experience the Fun
Create with Us
Consumer Journey
Creative Testing
Media Schedule & Budget
ROI & Accountability
Why Capitol Advertising?
3. RESEARCH
23K
Gained insights from articles, journals,
market research consolidators, annual
reports, and syndicated research sources.
Spent 23K hours on sources including
marketresearch.com, Simmons, Ad-ology,
Kantar, Nielson, and others.
235
Listened to 235 members of our target
markets (Hut Lovers, Rival Diners, and Food
Techies) and tested creative concepts and
campaign executions.
40
IN-PERSON FOCUS GROUP
PARTICIPANTS
Conducted four in-person focus groups with
40 pizza eaters who ordered digitally within
the last month and those who are enabled
but haven’t ordered digitally. Gained
insights for the ideal pizza ordering, eating,
and sharing experience.
517
NATIONWIDE SURVEY (CAPAD
SURVEY) RESPONDENTS
Polled 517 respondents and measured
awareness of The Flavor of Now campaign,
intention to order Pizza Hut before and after
seeing The Flavor of Now menu, and tested
messaging with a random sample of
respondents.
40
ONLINE FOCUS GROUP
PARTICIPANTS
Conducted three online focus group with 40
people: two with all demographics of our
target markets, and one exclusive to Black
and Hispanic pizza lovers. Screened by
pizza eating habits and propensity to order
digitally. Tested creative concepts and
executions.
35
PIZZA TASTE TESTERS
Held a pizza party for 35 focus group
participants to taste-test The Flavor of Now
menu and engage in an eating and sharing
experience.
HOURS OF SECONDARY
RESEARCH
IN-DEPTH INTERVIEWS
(IDIs)
• Position Pizza Hut as the top choice for customers who order
pizza digitally and provide consumers with the greatest ordering
experience in the category
• Reach the target of 75% digital ordering and make Pizza Hut the
preferred brand by December 31, 2015 for customers 18-64
1. What are perceptions of the Pizza Hut brand?
2. What are awareness levels and perceptions of The Flavor of Now
menu, and how does this affect the image, perception, and
preference for Pizza Hut?
3. What do consumers think of Pizza Hut’s digital ordering platforms,
and how can they be improved?
THE CHALLENGE GUIDING RESEARCH QUESTIONS
02 // RESEARCH
4. • Consumers perceive competitors as having better quality and taste
• Pizza Hut consumption is declining among the Hispanic market (“Pizza Market,”
2015)
• Highest market share in the US pizza industry (14%) (MarketResearch)
• Pizza Hut has double the social media reach of its competitors
• Fresh, innovative, and modern ingredients of The Flavor of Now menu appeal to consumers
• Largest range of digital ordering platforms offered: pizzahut.com, app, Xbox, and Hulu
• Customers perceive Pizza Hut as an old friend and associate it with good times
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
SWOT ANALYSIS
• Customers perceive Pizza Hut as “chain” pizza that is “outdated” and “bland” (CapAd
Survey)
• Only 14% awareness of The Flavor of Now after large media spending and creative
advertising
• Little engagement with consumers despite Pizza Hut high social media reach
03 // SWOT ANALYSIS
• 93% of Americans eat pizza at least once per month (NSAC Case)
• 69% of Americans order food digitally, and this number is increasing (Dohnert, 2013)
• Hispanics are the fastest growing market in the US and will reach 60 million by 2020
(PewResearch)
• Online consumers purchase more often and spend more per purchase (NSAC Case)
• Trends are moving toward diverse flavors (Morrison, 2014)
• Generally, Millennial Hispanics and Blacks are top Pizza Hut consumers (“Pizza Market,” 2015)
• Social media engagement can boost spending by 30% (Barry et al, 2011)
5. Customer
LEADER IN VARIETY
Third-party aggregators,
Seamless and Grubhub,
target digital orderers by
mobilizing “Mom-and-Pop”
shops. They provide an
exciting digital ordering
experience but have weak
interaction with consumers.
LEADER IN PRICE
Little Caesars Pizza targets
price-conscious consumers.
Families especially love the
walk-in convenience of the
$5 “HOT-N-READY” and see
the lack of digital presence
as irrelevant.
LEADER IN DIGITAL
EXPERIENCE
Domino’s targets college
Millennials. “Domino’s
Tracker” and “Dom,” the
voice-ordering system, are
perceived as convenient and
cool. They provide an easy,
exciting, and original
ordering experience.
LEADER IN LOYALTY
Papa John’s targets sports-
lovers in their ads and
through their social media
presence. The “Papa’s
Rewards” program builds
loyalty and encourages
repeat ordering.
COMPETITOR ANALYSIS
04 // COMPETITOR ANALYSIS
6. INSIGHTS
POSITIONING
05 // INSIGHTS & POSITIONING
Low Awareness - Most consumers aren’t aware of The Flavor of Now,
but once they try it, they love it. As of March 2015, only 14% were aware,
but once exposed, 75% of consumers changed their perceptions of
Pizza Hut from being “outdated” to “modern” and said they “loved
it” (CapAd Survey).
Campaign Strategy - A campaign focusing only on the digital
ordering experience is shortsighted because it’s becoming the norm.
Focusing on the Pizza Hut brand by raising awareness of The Flavor of
Now will result in improved brand perception and preference.
Digital Experience - Consumers want a digital experience that goes
beyond simplicity; they want it to be personalized, entertaining, and
fun. 32% of time on apps is spent on gaming (Khalaf, 2014).
Digital Presence - Despite having twice the social digital reach of
competitors, Pizza Hut lacks a strong, engaging voice. 62% of
Millennials say they are more likely to become a loyal customer if a
brand engages with them on social media (Forbes).
Co-Creation - Millennials want to co-create content and products with
the brand, and this is trickling up to older consumers. It engages
customers by inviting them to build the brand. 42% are interested in
helping companies develop future products and services (Forbes).
Loyalty Programs - Loyalty programs encourage repeat orders and
increase brand preference. 86% of focus group participants purchase
more products if they’re rewarded through a loyalty program.
Target Market - Pizza Hut must target Millennials, Gen Xers, and Baby
Boomers in order to reach 75% of digital orders. 93% of 18-64 years
olds regularly eat pizza (NSAC Case). If Pizza Hut targeted only
Millennials, its online ordering wouldn't exceed 55% (CapAd Survey).
CSR - Consumers care about their community and 89% are likely to
prefer and switch to brands associated with a cause (Cone
Communication).
Target Demographic - Pizza consumption in Hispanic households
are declining (Pizza Market in the US). However, they have the
highest awareness, at 17%, of The Flavor of Now menu and are 10%
more likely than average to order digitally (CapAd Survey).
Pizza Hut offers the most modern, diverse, innovative, and fresh
flavors making it fun to order, eat, and share the experience.
Online Propensity - With a tendency to have larger-sized families,
Hispanics value sharing and have the highest propensity to order
online (Packaged Facts).
7. Cristina loves all things American - she’s an avid
Miami Heat fan, drives a Ford, and buys
Domino’s pizza for her two girls. As a single
mom and the daughter of Cuban immigrants,
she values the best quality at the best price.
Coming back from work, Cristina came across a
Pop-Up Pizza Party and saw the Hut Truck.
When she tried a sample of the Sweet Sriracha
Dynamite, she was shocked that pizza could be
this flavorful! She downloaded the app and
made her own Flavor of Now pizza the very
next day. She loved the Flavor Wheel incentives,
and now she only orders from Pizza Hut - and
puts Sriracha on everything!
Rival Diners have a high concentration of
“famillennial” moms who are price-conscious
and socially engaged. They buy from Pizza Hut’s
main competitors. Like Cristina, Rival Diners
look for the best taste and deal on their pizzas.
They currently have low awareness of Pizza
Hut’s new menu; but with the best deals and a
fun digital experience, Pizza Hut will give Rival
Diners an offer they can’t resist.
Two years ago, Stephanie and Paul met in their
criminal justice class and moved into an
apartment together at the start of their senior
year. Pre-law majors with part-time jobs,
Stephanie and Paul don’t have time to cook their
meals, so they’re constantly trying the newest
food apps. Studying in the library one night, Paul
heard an ad on Spotify for #freepizza on the
Pizza Hut app. Having rarely ordered Pizza Hut
before, they were captivated by the app features
and The Flavor of Now menu. After trying Cherry
Pepper Bombshell, they were completely
convinced. Now whenever they’re in the mood
for pizza, they reach for their phones and open
the Pizza Hut app.
Food Techies love to keep up with the latest
food trends. They crave convenience and are
always on the lookout for innovation and
modernization. Like Stephanie and Paul, they
love customization and diverse ingredients, and
they order from places with the ultimate digital
ordering platforms. With an engaging digital
experience that emphasizes modern flavor
combinations, Pizza Hut will become top-of-
mind.
Wayne’s life has always included Pizza Hut - he
shared it with his brother after soccer, ordered
it during late-night cram sessions at Arizona
State, and even went there on his first date with
his wife. One night, Wayne’s son saw a Flavor of
Now pizza when he paused his Xbox game and
the whole family was intrigued. Wayne’s wife
fired up her tablet and, sure enough, Pizza Hut
had a new website full of Flavor of Now pizzas!
After playing around with the crusts and the
drizzles, they ordered the Garden Party and Old
Fashioned Meatbrawl. When they dug into their
pizzas, they were hooked. They tacked The
Flavor of Now menu to their fridge and pledged
to try a new topping every Friday night.
The typical Hut Lover has an average income of
under $75K and values family and convenience.
This market has a high concentration of
Hispanics and Blacks. Like Wayne, Hut Lovers
are the easiest to convert to digital because of
their loyalty – they love the menu and want to
share it with everyone. Hut Lovers are Pizza
Hut’s unofficial brand ambassadors and are
critical to achieving 75%.
TARGET MARKETS
TERTIARY
Stephanie and Paul, 22, San Diego, CA
“We take any chance we get to try new
foods and flavors - especially when it
involves a cool app!”
SECONDARY
Cristina, 36, Austin, TX
“Everyone in my family has different
preferences - I want a brand that makes
it easy to cater to everyone’s tastes.”
PRIMARY
Wayne, 55, Boston, MA
“Pizza Hut has really upped its game!
Ordering from the new menu was a great
experience. I can’t wait to order it again -
but next time with some new flavors.”
06 // TARGET MARKETS
HUT
LOVERS
RIVAL
DINERS
FOOD
TECHIES
8. ONLINE CONVERSION RATE 30%
25%
ONLINE CONVERSION RATE 25%
25%
ONLINE CONVERSION RATE 20%
29 Million
MARKET SIZE
50 Million
MARKET SIZE
60 Million
MARKET SIZE
12
6
11
Millennials
2M Hispanic
1M Black
Gen Xers
1M Hispanic
1M Black
Baby Boomers
1M Hispanic
1M Black
20
11
19
Millennials
4M Hispanic
2M Black
Gen Xers
2M Hispanic
1M Black
Baby Boomers
2M Hispanic
2M Black
24
13
23
Millennials
4M Hispanic
2M Black
Gen Xers
2M Hispanic
2M Black
Baby Boomers
2M Hispanic
3M Black
07 // TARGET MARKETS
TARGET MARKETS
43% 58% 67% 75%
Current
Digital Orders
Reached with
Hut Lovers
Reached with
Rival Diners
Reached with
Food Techies
$850M
MARKET OPPORTUNITY
$532M
MARKET OPPORTUNITY
$510M
MARKET OPPORTUNITY
TERTIARYSECONDARYPRIMARY
Population in millions Population in millions Population in millions
HUT
LOVERS
RIVAL
DINERS
FOOD
TECHIES
9. HOW TO GET TO 75%
1
EXPERIENCE THE FLAVOR
2 EXPERIENCE THE DIGITAL INNOVATION
4
CREATE WITH US
Incentivizes consumers to try The Flavor of Now
Capitol Advertising’s Experience The Flavor of Now campaign differentiates Pizza Hut and positions it as the brand with the most
innovative and fun flavors. Our survey found that consumers aren’t aware of The Flavor of Now, but once exposed, 75% changed their
perceptions of Pizza Hut from being “outdated” to “modern.” Additionally, once they try it, they love it. Pizza Hut will offer 1,000 free
pizzas a day for 100 days to rally customers around the brand and allow them to Experience The Flavor of Now. This allows customers
to try the pizzas and familiarizes them with the digital experience. As more people are exposed to The Flavor of Now menu, the number
of habitual purchases increases. We will improve perceptions of Pizza Hut and reach 75% digital orders through four phases of
engagement with prominent calls to action in each tactic:
Captivates consumers with an unparalleled, convenient digital
ordering process
• HOW: Entices consumers with unconventional tactics to inspire trial
and make Pizza Hut the owner of fun
• OUTLETS: Launch event with Jimmy Fallon, Pop-Up Pizza Parties, Hut
Truck and “Hut Truck Travels” blog, Xbox “PAUSE,” partnerships with
digital influencers, social media, Spotify, Pandora, and interactive
banner ads
• BUDGET ALLOCATION: 25%
3
EXPERIENCE THE FUN
• HOW: Increases knowledge and exposure of The Flavor of Now menu
by sharing #freepizza
• OUTLETS: TV, Hulu, YouTube, E-Mail
• BUDGET ALLOCATION: 52%
• HOW: Introduces consumers to revolutionary yet simple app features:
Exclusive Hut Lover (VIP status and free delivery,) split pay with friends,
one-click ordering, real-time delivery tracking, and deals and credits on
the Flavor Wheel
• OUTLETS: Mobile app, pizzahut.com
• BUDGET ALLOCATION: 17%
Entices customers to have fun with ordering, eating, and
sharing
• HOW: Hooks customers with opportunities to build and share with the
brand
• OUTLETS: Hut Club, Flavor of Next, CSR
• BUDGET ALLOCATION: 6%
Fosters loyalty, repeat ordering, and co-creation with
Pizza Hut and customers
08 // HOW TO GET TO 75%
10. 09 // DISRUPTING THE PURCHASE FUNNEL
DISRUPTING THE PURCHASE FUNNEL
At first, Capitol Advertising thought the key to 75% digital orders was a conventional advertising
campaign. We tested the current awareness of The Flavor of Now and why it was so low. We found that
there is a perception barrier resulting from years of an “outdated” Pizza Hut brand image. Pizza Hut’s
rebranding efforts aren’t taking hold as fast as desired.
We tested various methods from creative concepts to social media strategies and found one key
insight: When people tried The Flavor of Now, they liked it. It changed their attitudes toward Pizza
Hut, and they wanted to order more. Our campaign breaks the mold, goes beyond expectations, and
disrupts the purchase funnel to get to 75% by the end of 2015.
How can we defy convention and disrupt the purchase funnel? We kickstart our campaign by giving
away free pizza. We ask people what they want and we give it to them. We engage with consumers
socially, digitally, and through live events. “Big Advertising” such as the Old World and Super Bowl
commercials are ineffective - they take too long. This campaign will make people aware of The Flavor
of Now right now.
Giving 1,000 free pizzas for 100 days gives target markets the opportunity to try The Flavor of Now
menu and familiarizes them with the new digital experience. The key is to gather everyone’s
information and change their perceptions from “outdated” to “modern.” We know once we give
everyone the chance to Experience the Flavor of Now, they’ll be hooked.
11. MEDIA COMMUNICATION MARKETING
• Reach 90% of Hut Lovers eight times per
week (26M people)
• Reach 80% of Rival Diners eight times per
week (40M people)
• Reach 60% of Food Techies six times per
week (36M people)
• Total Weekly Impressions: 474M
• Total Media Cost Estimate: $63M
• Increase aided awareness with target markets
including Hispanics and Blacks from 17% and 26%,
respectively, to 50%
• Improve brand perception as innovative and modern
with the freshest menu from 23% to 65%
• Captivate target markets with a simple and
entertaining digital experience
• Drive consumers to purchase Pizza Hut every time
they order pizza
• Create brand loyalty and generate bi-weekly
purchases from Rival Diners and Food Techies
• Encourage 35% of consumers to share fun
experiences with the brand
• Maintain relationships with loyal consumers through
co-creation
• Increase online sales by $1.9B (75% digital
orders)
• 50% by August 31, 64% by October 31, and
75% by December 31
• Drive target markets to download, use, and
recommend the mobile app
• 25% of Hut Lovers, 5% of Rival Diners, and
5% of Food Techies
• Generate trial and increase frequency of online
purchases of The Flavor of Now menu
• 90% of Hut Lovers, 85% of Rival Diners,
and 85% of Food Techies
• Rationale: Because Hut Lovers already love the
product, they are the most likely to start ordering
online, given the right incentives. Rival Diners
and Food Techies have a lower conversion rate.
First, we build brand preference through trial,
and then we encourage them to order online.
From July 1 to December 31, 2015, the Experience The Flavor of Now campaign will:
10 // OBJECTIVES
OBJECTIVES
12. Jimmy: “Follow the
Hut Truck online and
discover what is yet to
come.”
Jimmy: “Here are the
keys to something
exciting”
“Go online and order
your Flavor of Now
Pizza for a special deal!”
“Feel the Love” (Instrumental)-Rudimental
SCENE 1 SCENE 2 SCENE 3 SCENE 4 SCENE 5 SCENE 8SCENE 7SCENE 6 SCENE 9 SCENE 10
THIS
THIS IS
THE
FLAVOR OF
NOW.
SCENE 1 SCENE 2 SCENE 3 SCENE 4 SCENE 5 SCENE 8SCENE 7SCENE 6 SCENE 9
Hands takeaway slices, on
a table revealing. “FREE
PIZZA!” and feature the
social media platforms as
the music fades.
“Higher” by Royal
Tongues playing as a hand
starts snapping to the
beat.
Different ingredients
are added as the music
builds…
Once many ingredients
are added, the frame
zooms out to show The
Flavor of Now
combinations.
Varying camera angles
on the pizzas show
vibrant colors and
ingredients…
“So order now, and join
the fun! Spin the Flavor
Wheel and you can
receive #freepizza.”
FREE
PIZZA!
The pizzas separate and
recombine.
A cheese pizza appears in
the center of the screen.
“We’re giving away
1,000 free pizzas each
day for the next 100
Days of Flavor.”
WHAT IT IS:
Using high-speed photography, a mysterious teaser starring Jimmy Fallon will hint at the launch of
#freepizza. Although a conventional medium, television is the best way to create mass awareness - but in
our case, we create suspense. Action-packed parkour across the US will excite consumers and prompt
them to follow what comes next. The spot will be featured on YouTube and Hulu. A general video spot will
be featured on TV, Hulu, and YouTube showcasing the beautiful new Flavor of Now menu to help raise
awareness of the The Flavor of Now.
WHY IT WORKS:
• Americans spend 141 hours/month watching traditional TV (“Content,” 2014)
• YouTube reaches 82% of Millennials, 65% of Gen Xers, and 53% of Baby Boomers (“High-Income,” 2014)
• 82% of Hulu Plus viewers are 18-49 (“2014 Hulu,” 2014)
• Black households watching TV has increased by 40% and Hispanics by 200% (Nielsen)
VIDEO ADS
11 // EXPERIENCE THE FLAVOR
EXPERIENCE THE FLAVOR
OVERALL OBJECTIVES:
• Dramatically increase the exposure of The Flavor of Now by inspiring consumers to
use the Flavor Wheel and #freepizza.
WHERE IT IS:
• TV: ABC, BET, ESPN, FOX, and Univision
• YouTube, Pizza Hut YouTube channel, and Hulu
COST: $27.5M
13. Lucia
EXPERIENCE THE FLAVOR
WHAT IT IS:
Pizza Hut will send emails to
consumers where they can
opt-in to receive tailored
incentives based on past deal
preferences. This leads to
receiving more information
from customers, customers
redeeming more deals, more
frequently, and with a higher
incremental spend.
WHY IT WORKS:
• Benefits our target markets
and makes them feel
valued
• Email is the most effective
digital marketing channel
for customer retention in
the US (“Which Tactics
Work,” 2013)
COST: $1.5M
PIZZA HUT E-MAILS
12 // EXPERIENCE THE FLAVOR
August 22, 2015 at 11:14 PM
Lucia
14. WHAT IT IS:
A refreshed mobile app and website gives customers a simple digital experience that is
entertaining at every step and encourages them to order again.
WHY IT WORKS:
• Flavor Suggestions aid consumers when they choose and add ingredients to their pizza to
increase ordering efficiency.
• The Flavor Wheel entertains customers while they “Spin to Win” a free Flavor of Now pizza, side,
or dessert. It gamifies the app experience and hooks customers to spin again. 32% of time on
apps is spent on gaming (Khalaf, 2014).
• Split Pay breaks down the barriers of sharing in groups. Customers are able to split the bill and
only pay for what they eat — revolutionizing the sharing experience by making it convenient.
100% of focus group participants said they would switch brands for this addition.
• Split Your Pizza already allows customers to split their pizza, but only applies to large pizzas on
the regular menu. Split Your Pizza allows customers to split their Flavor of Now pizza in half in all
sizes so that consumers can customize however they want without being limited. “I wish I could
get half of what I want on a pizza and half of what my wife wants - no fighting necessary” (Jake
F.).
OVERALL OBJECTIVES:
• Enhance the ordering experience from start to
finish with six new digital features. Engage and
entertain customers while collecting customer
information that can be used for future
Customer Relationship Management.
13 // EXPERIENCE THE DIGITAL INNOVATION
APP & WEBSITE
• Real-Time Order Tracking
eliminates the need for
customers to guess when their
pizza will arrive and entertains
them during their hungriest
moments. 66% of IDI
participants order from
Domino’s because of its
“Tracker.”
• My Flavors allows customers to
quickly and easily order pizzas
they’ve ordered before.
Consumers want access to
previous orders and popular
flavors because it’s easier than
creating orders from scratch.
WHERE IT IS:
• All features are on the app and
pizzahut.com
COST: $2.3M
EXPERIENCE THE DIGITAL INNOVATION
15. The Flavor Wheel gets people to Experience The Flavor of Now. Located on the homepage, this
feature guarantees that everyone is a winner for 100 days. After spinning, consumers create a
Hut Club account to claim their prize!
The Flavor Wheel positions Pizza Hut as exciting and modern by engaging customers through
gamification, and generating trial of The Flavor of Now pizzas. Upon spinning, Pizza Hut
gathers customer information.
COST: $14M
WHAT IT IS:
Hut Tablets will be placed throughout Target stores so when customers get hungry, they can
order while they shop and pick up their pizzas when they're done. They can pay directly on
the tablet and avoid waiting in long lines. An additional incentive will then prompt customers
to download the app. The updated app will use geofencing to connect with customers while
shopping in Target stores to incentivize them to order a pizza on the go.
WHY IT WORKS:
• In rural communities, conversion rates to digital ordering tend to be slower (NSAC Case)
• California, Texas, and Florida have the most Target stores (Target Pressroom)
14 // EXPERIENCE THE DIGITAL INNOVATION
THE FLAVOR WHEEL
PIZZA HUT & TARGET
EXPERIENCE THE DIGITAL INNOVATION
16. 15 // EXPERIENCE THE DIGITAL INNOVATION
“GAME OF DRONES”
WHAT IT IS:
All app users have the opportunity to play “Game of Drones,” a fun new
interactive game. Drones are used to deliver toppings, drizzles, and
ingredients with the objective of making each pizza as flavorful as possible.
As levels progress, users will face more complex flavor challenges and will
experience The Flavor of Now menu like never before. Users will opt-in to
push notifications reminding them what level they stopped playing on and
how many Hut Points they are missing in order to win.
WHY IT WORKS:
• 30% of app gamers
make in-app
purchases
(FactBrowser)
• 52% of mobile
gaming audiences
are made up of
women
(InternetAdBureau)
EXPERIENCE THE DIGITAL INNOVATION
17. WHAT IT IS:
Jimmy Fallon will launch our Experience The Flavor of Now campaign on his show
by creating a new Flavor of Now recipe, giving out #freepizza, and sending off the
Hut Truck.
Fallon will first introduce five New Recipe pizzas on The Tonight Show. Viewers
will choose which one will be added to the Flavor of Now menu by liking their
favorite on the Pizza Hut Facebook page.
The Fallon Panda mascot will hand out #freepizza to the audience and, at the end,
when Fallon sends off the Hut Truck, it will be revealed that the panda is Justin
Timberlake.
WHY IT WORKS:
• Associating Jimmy Fallon and Justin Timberlake with Pizza Hut modernizes the
brand and aligns with our efforts to create an entertaining, fun experience
• The Tonight Show attracts all demographics, with greatest TV viewership from
Baby Boomers (3 million) and greatest YouTube viewership from Millennials and
Gen Xers (TubeFilter)
• Jimmy Fallon has the youngest viewing age of any late night show (TubeFilter)
• Justin Timberlake has 44M followers on Twitter and 9M on Instagram
WHERE IT IS:
• NBC broadcast, third-party digital sites like Hulu, and Pizza Hut’s and The
Tonight Show’s YouTube channels
COST: $2.5M
OVERALL OBJECTIVES:
• Create an authentic, social voice that modernizes the brand
• Establish positive relationships with consumers, inspiring them to
share their Pizza Hut experiences
16 // EXPERIENCE THE FUN
JIMMY FALLON
EXPERIENCE THE FUN
18. WHAT IT IS:
Pizza Hut will host and sponsor spontaneous parties in strategic locations across the
US to promote The Flavor of Now. This will raise awareness and generate trial of the
menu among target markets through unconventional tactics. To boost sharing,
customers will receive additional Hut Club points for social media sharing while at
events.
WHY IT WORKS:
• 85% of focus group participants post more photos while at events
• 95% of focus group participants think guerrilla marketing is more interesting and
effective than traditional media
HIGHLIGHTED ARE TWO POP-UP PIZZA PARTIES:
The Hut Truck will stop at Lollapalooza in Chicago, IL in August, where
there’s a high concentration of Food Techies. Pizza Hut brand ambassadors
will carry iPads and have festival-goers join the Hut Club. The first 100
people to order digitally will have their pizza delivered at the festival by
drones, gaining earned media.
Miami, FL has a high concentration of Pizza Huts and Hispanics. Pizza Hut
will partner with Pepsi to host a concert on South Beach called “Descubre
Tu Sabor” or “Experience Your Flavor” on September 19 during National
Hispanic Heritage Month. Rising Hispanic artists will compete to star in a
Pizza Hut video spot. A live recording of the concert will be sold on iTunes,
and proceeds will go towards the Hut Love Scholarship Program. The
competition will be hosted by a local influencer who will promote The
Flavor of Now and #freepizza. Party-goers will tweet their votes under the
hashtag #freepizza.
17 // EXPERIENCE THE FUN
WHERE IT IS:
• New York, NY - Launch Event with Jimmy Fallon (July)
• Chicago, IL - Lollapalooza (July-August)
• Detroit, MI - GM Car Show (Mid August)
• Miami, FL - “Descubre Tu Sabor” (September)
• San Francisco, CA - Pizza, Art, and Jamz (September)
• Austin, TX - UT-Austin tailgate (October)
• Albuquerque, NM - Albuquerque International Balloon Fiesta
(October)
• Phoenix, AZ - BOOK IT! Read-A-Thon and scholarship
competition (November)
• Salt Lake City, UT - Youth Slopes for Slices (December)
• Washington, DC - BOOK IT! book drive on the National Mall
(December)
COST: $7.5M
POP-UP PIZZA PARTIES
Launch Event
with Jimmy Fallon
EXPERIENCE THE FUN
19. WHAT IT IS:
Pizza Hut will partner and host events at Airbnb rentals with
digital influencers who try pizzas and blog about the event.
WHY IT WORKS:
• Airbnb has high digital social engagement and is considered
trendy among our target markets (CapAd Survey)
• “If I were to see Pizza Hut featured on my favorite blog, I
would definitely try the new menu.” (Dan S.)
• More than half of Gen Xers and 30% of Hispanics said they
would use a peer-to-peer site such as Airbnb
(JWTIntelligence)
WHERE IT IS:
• In the same US cities as the Pop-Up Pizza Parties
COST: $500K
HIGHLIGHTED ARE TWO AIRBNB EVENTS:
In select Pop-Up Pizza Party cities, Pizza Hut will anonymously sponsor cooking classes at Airbnb rentals, inviting social media influencers to share their experience
and promote The Flavor of Now. Chefs will teach influencers to make pizzas using fresh ingredients. After cooking, the chefs will reveal that the ingredients used are
actually from The Flavor of Now menu. The pizzas that they created can be ordered on Pizza Hut’s website.
During the week of the San Francisco Pop-Up Pizza Party, Airbnb will help Pizza Hut host two viewing pizza parties for the highly anticipated NFL game between the
Seattle Seahawks and the 49ers. One house will be for Seahawks fans and the other house for 49ers fans. Each rental will have their own pizza party. Each fan at the
event of the winning team will receive one #freepizza.
18 // EXPERIENCE THE FUN
HUT TRUCK & HUT
TRUCK TRAVELS
PARTNERSHIPS
WHAT IT IS:
The digitally-connected Hut Truck gives out #freepizza at Pop-Up Pizza Parties. Attendees receive
promotions by posting pictures with the truck. Consumers follow its journey on the “Hut Truck
Travels” blog, available on pizzahut.com/huttruck.com. Digital influencers, like Tyler Oakley, will
attend Pop-Up Pizza Parties, guest blog on “Hut Truck Travels,” and feature parties on their social
platforms.
WHY IT WORKS:
• Creates a sense of community while allowing consumers to try The Flavor of Now
• Repeated exposure increases awareness and brand preference (Elmore, 2015)
WHERE IT IS:
• Travels to Pop-Up Pizza Party locations from July 1 to December 31, 2015
COST: $2.5M
Tyler Oakley and Jerome Jarre are social influencers. Jerome loves
to cook and Tyler speaks on education - an issue Pizza Hut
supports through BOOK IT! Jerome (left) attends an Airbnb event
and Tyler (below) visits the Phoenix Pop-Up Pizza Party.
EXPERIENCE THE FUN
20. WHAT IT IS:
Banner ads on Spotify and Pandora link consumers to pizzahut.com to order. These ads highlight
#freepizza for 100 days, and reach a large, social, diverse audience.
WHY IT WORKS:
• Music streamers are 70% more likely to describe a brand as fun and playful (ComScore)
• Pandora is the most popular online radio platform with 67 million listeners (Lloyd, 2013)
• Spotify Free reaches over 15 million listeners (Spotify)
• “When I eat pizza, I am always listening to music.” (Edgar E.)
COST: $3M
19 // EXPERIENCE THE FUN
SOCIAL MEDIAXBOX “PAUSE”
SPOTIFY & PANDORA
WHAT IT IS:
Xbox “PAUSE” fuels the game. Xbox Live IDs are synched with
the Pizza Hut app, allowing gamers to place one-click orders
from their seat. Gamers will be prompted to order Pizza Hut
when their game is paused by pressing the “X” button. This
triggers a split-screen so gamers can place their orders
without logging out.
WHY IT WORKS:
• Pizza Hut’s partnership with Xbox has yielded $1 million in
sales from the first four months (Guarini, 2014)
• “When I pause my game, it’s usually to get food.” (Nick M.)
COST: $250K
WHAT IT IS:
Pizza Hut will use vibrant, real-life photography to show
fresh ingredients in posts and sponsored ads on Facebook,
Instagram, Twitter, and Snapchat. Colorful photography
along with a personal tone continues the conversation
among consumers. Pop-Up Pizza Parties will be featured on
Snapchat “Live,” where consumers add their own photos to
a live feed. These photos can also be shared on other
platforms like Instagram. Events are extended online
through Twitter Parties.
WHY IT WORKS:
• Millennials are the most active Instagram users (53%)
(Duggan et al., 2015)
• 25% Hispanics and 27% Blacks use Twitter (Duggan et al.,
2015)
• Snapchat “Live” increases engagement by highlighting
user-generated content (Conlin, 2014)
COST: $9.25M
EXPERIENCE THE FUN
21. OVERALL OBJECTIVES:
• Incentivize consumers to reorder The Flavor of Now
• Connect with consumers beyond the product and foster
community support through CSR
• Encourage consumers to become unofficial brand
ambassadors
• Current status of Hut Points
and member’s reward level
• Description of reward level
benefits
• Awards, prizes, and credits
won
• Deals of the week and Hut
Point values
• Discussion board to
suggest new toppings,
crusts, sauces, and drizzles
• Members vote on favorites
• Featured pizzas of the
week created by
members
20 // CREATE WITH US
HUT CLUB
WHAT IT IS:
Based on conversion rates of our target markets, The Hut Club loyalty program will attract
more than 6M Hut Club members. It offers members exclusive incentives based on their
specific tastes. By placing orders or recruiting friends, members can earn Hut Points to
redeem for future purchases. They can explore top-rated pizzas and give suggestions for
future flavors, allowing them to contribute and develop the brand. The most loyal Hut Club
members, those who purchase an average of 30 orders in the past year, are invited to join
the Exclusive Hut Club, where they receive free delivery for a year. Customers gain points by
attending Pop-Up-Pizza parties, ordering more, and engaging with the brand to become
Exclusive Hut Club members. Non-Exclusive Hut Club members can join for an annual charge
to receive free delivery.
WHY IT WORKS:
• Loyalty program members spend 18% more per purchase (“25 Loyalty,” 2014)
• 93% of consumers believe rewards are important (“25 Loyalty,” 2014)
• 42% are interested in helping companies develop future products and services (Forbes)
WHERE IT IS:
• Available on pizzahut.com and app
• Incentives sent via email and app notifications
CREATE WITH US
22. 21 // CREATE WITH US
BUZZFEED
RANDOM ACTS OF
HUT LOVE (CSR)
WHAT IT IS:
Pizza Hut creates fun, social quizzes that
include taste preferences, regional trends, music
interests, and popular ingredients. By asking fun
questions, consumers are matched to a Flavor
of Now pizza. They can immediately order at
the end of the quiz which directs them to
pizzahut.com.
WHY IT WORKS:
• BuzzFeed has 150M monthly visitors, 56% of
which are Millennials (Bercovici, 2014)
• 35% of users visit via mobile devices
(Bercovici, 2014)
COST: $500K
WHAT IT IS:
Random Acts of Hut Love is Pizza Hut’s way of giving
back. Pizza Hut offers Hut Love College Scholarships to
100 first generation students in minority families who
have shown leadership in their community. The winning
students will be named as “Pizza Hut’s Most Promising.”
These students will be connected to mentors to provide
guidance throughout their career, going beyond just their
college experience.
Nationwide BOOK IT! Read-A-Thon competitions help
children foster a love for reading. Pizza Hut awards the
top three schools that read the most books in six months
with a fund to refurbish their library with new books and
host a pizza party.
WHY IT WORKS:
• 93% of consumers are more loyal to companies that
engage in CSR (Cahan, 2013)
WHERE IT IS:
• Schools nationwide
• Featured on Facebook, Twitter, pizzahut.com, and app
COST: $5M
WHAT IT IS:
Hut Lovers will put on their chef’s hat and follow
Jimmy Fallon’s lead. They’ll step into the kitchen with
The Flavor of Next competition where they create
their own Flavor of Now recipes. To keep The Flavor
of Now menu up-to-date and relevant, Pizza Hut will
challenge its Instagram followers to show off their
best flavor creations and tag “@pizzahut
#TheFlavorofNext.” Top submissions will be posted
on Facebook, where followers will “like” their
favorites, leading to social media amplification. The
top three will be added to the menu, and winners
receive VIP passes to Lollapalooza.
WHY IT WORKS:
• Consumers share
their custom pizzas
in an easy, social
format
• 1,000 customers
can generate up to
half-a-million
conversations
(Truth in Data)
• Places higher value
on user-generated
content by letting
consumers build
with the brand
WHERE IT IS:
• Instagram and
Facebook to hold
the competition
• The Flavor of Now
menu and “Hut
Truck Travels” blog
to feature the
winners
THE FLAVOR
OF NEXT
CREATE WITH US
23. CONSUMER JOURNEY
STEP 02: INTRIGUE
Dave tells his friends about The Tonight Show
episode and they check out Pizza Hut’s Facebook
to find out more. They come across the “Hut Truck
Travels” blog and find out that the next Pop-Up
Pizza Party is in their city.
STEP 04: GENERATE TRIAL
After participating in the event and
enjoying free pizza, Dave and his
friends fall in love with the Garden
Party. They post pictures with Tyler
Oakley on Snapchat “Live” and
download the Pizza Hut app to try their
luck on the Flavor Wheel.
STEP 06: ADVOCACY
He invites his friends to split pay
through the app, prompting
them to join the Hut Club, too.
22 // CONSUMER JOURNEY
STEP 07: REPURCHASE RITUAL
Pizza Hut becomes a Thursday
ritual for Dave and his friends. To
say the least, they love The Flavor
of Now recipes. Each week they
spin the Flavor Wheel and enjoy
tailored incentives to Experience
The Flavor of Now.
STEP 01: AWARENESS
Dave, a Rival Diner, never really thought of Pizza
Hut as anything great. One Friday night, he tunes
into The Tonight Show starring Jimmy Fallon where
he sees Justin Timberlake and Jimmy spin the
Flavor Wheel and give out free pizza to the
audience. He votes for a new Flavor of Now pizza
on Facebook and sees the Hut Truck being sent off.
STEP 03: THE HOOK
After seeing his favorite YouTuber, Tyler Oakley,
announce he’s attending the Pop-Up Pizza Party, Dave
and his friends decide they have to go.
STEP 05: PURCHASE
While listening to Spotify, Dave and his
friends hear an ad for Pizza Hut’s
#freepizza. They decide to “Spin to Win.”
After winning wings, Dave is led to the
Hut Club sign-up page where he joins to
redeem his prize.
24. CREATIVE TESTING
Brooke C.
Millennial
Rival Diner
Mark M.
Baby Boomer
Hut Lover
Neil V.
Gen Xers
Food Techie
“The reason I buy Pizza Hut is for the
stuffed crust. I’ve never heard of The
Flavor of Now, but I assume that it focuses
on stuffed crust.”
“I don’t buy Pizza Hut. There just
isn’t a reason - I don’t see it as being
special or different.”
“Pizza Hut isn’t on my radar...at all. It’s old
and doesn’t want to change its ways. I only
think of it when remembering elementary
school birthday parties.”
“Experience The Flavor of Now makes me
want to try a Flavor of Now pizza, so I
would download the app just to see what
deal I’d win.”
“Experience The Flavor of Now
makes me realize that Pizza Hut has
changed. It’s modern and designed
to get what I want. I definitely want
to try it again.”
“Experience The Flavor of Now would hook
my friends and me on the new recipes. We
would totally attend the Pop-Up Pizza
Parties to try the free pizza.”
AFTER: PIZZA HUT
PERCEPTION
BEFORE: PIZZA
HUT PERCEPTION
23 // CREATIVE TESTING
We tested our creative concepts and executions through IDIs, online focus groups, and a nationwide survey. Target markets immediately
loved the new positioning of Pizza Hut and the Experience The Flavor of Now campaign.
26. ROI & ACCOUNTABILITY
1. Increase The Flavor of
Now awareness
2. Increase positive
perceptions of Pizza Hut
3. Increase mobile app downloads
5. Increase online orders
1. Website and mobile app
traffic, recognition testing
(aided), social channel growth
2. Campaign survey, social media
sentiment, and analytics
4. Social media engagements
5. Pizza Hut sales data
OBJECTIVES
KEY
PERFORMANCE
INDICATORS*
6. Increase number of
Millennial Hut Lovers
4. Generate conversation around
The Flavor of Now
3. Apple data, Apsalar (third-party) reporting
6. Pizza Hut CRM,
website analytics
*KPIs will be measured and reported monthly
25 // ROI & ACCOUNTABILITY
ROI
New Business (Rival Diners & Food Techies):
$1,041,700,000
Incremental Business (Hut Lovers):
$153,000,000
=$1,194,700,000
Operating Margin (2014):
26%
Operating Profit:
$305,843,200
Campaign Cost:
$95,654,000
ROI:
220%
27. WHY CAPITOL ADVERTISING?
You asked us to increase digital ordering to 75% and establish Pizza Hut as the top pizza brand. We created the Experience The Flavor of Now
campaign which modernizes Pizza Hut, raises awareness, and adds fun to the pizza experience. After gaining a deep understanding of our
target markets (Hut Lovers, Rival Diners, and Food Techies), we developed a strategy to reach, connect, and drive them to Experience The
Flavor of Now.
We position Pizza Hut as offering the most modern, diverse, innovative, and fresh flavors, making it fun to order, eat, and share the experience.
Capitol Advertising uses a four-pronged strategy that invites consumers to Experience the Flavor, Experience the Digital Innovation,
Experience the Fun, and Create With Us. Using traditional and nontraditional media, we:
1. Increase exposure and awareness of The Flavor of Now using 52% of our budget
2. Provide consumers with an easy ordering experience using 17% of our budget
3. Engage consumers and generate trial using 25% of our budget
4. Hook consumers with deals, co-creation, and CSR using 6% of our budget
Capitol Advertising’s $96M campaign generates a 220% ROI with $1.9B in online revenue. Experience The Flavor of Now is extendable beyond
December 31, 2015, gains over 6M Hut Club members, and enables Pizza Hut to establish itself as the most modern, diverse, innovative, and fun
pizza brand.
We’ve accomplished your goals and will continue to leverage Pizza Hut’s prominent market position as our campaign drives pizza consumers
to Experience The Flavor of Now. We are Capitol Advertising, and we look forward to working with you.
26 // WHY CAPITOL ADVERTISING?
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