Papa John’s Pizza 2010-2011: Media Plan
By: Greg Loper, Megan Kleck, Hyun Hak Chung
The three Papa John’s locations in the Eugene/Springfield area all owned and franchised by Tim Mitchell of Eagle Eye Pizza. The first Papa John’s store opened in Eugene in May 1999. The company currently has a contract with the NFL and runs National TV advertising 20 to 22 weeks out of the year. Competition for Papa John’s is Pegasus Pizza, Pizza Hut, Track Town Pizza, Dominos Pizza and on-campus pizza alternatives. The pizza market has been more competitive because of pricing. Papa John’s has had a problem with separating its local and national identities, as well as, differentiating itself from other “Papa” pizza companies.
Papa John’s Media Plan objective it to have two separate media plans which target two different audiences: 18-25 year male and mothers, in order to create more awareness among the local Papa John’s locations in the Eugene/Springfield area. Advertising locally allows Papa Johns to target a small niche rather than a large population. This allows us to focus more money on a small number of people and in turn can create a higher awareness among that selected market.
The Primary Audience
The primary audience for Papa John’s is mothers because they have a big influence over family food consumption. Most people can recall in their childhood complaining to their dad about how they were hungry and many times their father would redirect them to their mother. Mothers are the decision makers of the households and with so, have a large power when it comes to family consumption.
“Households with children are among the heaviest users of pizza and pizza products. Experian Simmons NCS data show that 81% of U.S. households with one or more children use pizza products (frozen, pizza crust….)” –Mintel 01/01/2010.
Many people have the memory of events with friends or birthday parties where pizza was the meal of choice. Every mom wants to be appreciated and considered the “Cool Mom.” Pizza is a win-win for both kids and moms. Moms get the bonus point for making the kids happy and she does not have to worry about making food that all of the children will eat.
“Families with children are a key demographic; taking extra steps to make them especially welcome is an essential element to success. Dads may be assuming a more active role in family mealtime procurement” –Mintel 10/01/2009
While dads tend to choose the notion of “eating out,” the mother then chooses where the family will go. Mothers are multi-tasters whose day never really ends. Once work is over, they begin their second job at home with her children. Delivery pizza gives mothers the option to order in and relax after a long day.
The Secondary Audience
Papa John’s secondary audience includes males ages 18-25 because a large proportion of the Eugene population is college students. Males are more likely to purchase delivery food because of the ease in the process of ordering a pizza rather than cooking dinner. Advertising pizza in conjunction with sports helps attract consumers during specific seasons, most notably during Oregon Football games and during Portland Trailblazers basketball games. Pizza and beer go together with many men, but men ages 18-25 put a much larger importance of the combination of the two.
The reason that Papa John’s should focus their targets on male students rather than female students is because of the difference of the frequency of ordering pizza. According to the Mintel’s statistic, it indicates that usually males order pizza to eat at least 2-3 times per week while females usually order 1-2 times per month. Therefore, according to this fact, it will be much better for Papa John’s Pizza to set UO’s male students as the main target audience instead of female students. To make this marketing plan more effective, the Papa John’s Pizza will focus its target to 18-25 males because of the age ranges of males that attend UO. In addition, because these target audience groups tend to show many interests on UO’s football games and other sporting events, focusing on these aged male students will be an effective promotional strategy.
The geographical market that we are targeting is the Eugene/Springfield area in general with a focus on the University of Oregon Campus area as well as surrounding neighborhoods.
Our total annual media budget is $125,000, which will be divided accordingly between the different forms of media. We plan on using less than the allotted amount for running changes during the year and will create alternatives plans in case the budget is increased or decreased.
Pizza restaurants are the most popular consumer choice despite competition from homemade and frozen pizzas. Price, convenience, and variety are the three most important factors that consumers take into account when choosing a pizza restaurant. Research shows that women place a higher importance on price than men and consumers under ages 25 say that aspects relating to delivery are more important. Families with children are more influenced by menu variety because of the eating habits of children.
The pizza industry in Eugene focuses mainly on younger patrons and families and those groups are more likely to purchase non-pizza items off the menu than other groups. Participants in research showed that they are interested in innovation from the pizza companies. Almost half of the respondents were interested in specialty crusts and flavors to complement the different forms of pizza offered. Thirty percent said they would like to see more variety in the menu. Consumers are more interested in the creation of different appetizers to complement the traditional bread sticks but are less interested in the innovation of non-pizza entrees such as pasta and chicken dishes.
Delivery restaurant location is less important to the consumer as long as their address is within the delivery range for their restaurant of choice. Papa John’s delivers to 85% of addresses within the Eugene/ Springfield area. Many of the other local pizza chains deliver to the majority of addresses and according to research; consumers do not exhibit exclusivity when choosing a pizza restaurant. The pizza industry is extremely competitive because of the increased delivery ranges, which is why location has become less important in recent years. Location is mainly a factor for consumers when they are choosing alternatives such as homemade and frozen pizza from a grocery store. Some consumers would rather shop for their own product or frozen pizza rather than call a restaurant and order delivery. In this case, convenience and location go hand in hand because of the variety of choices and alternatives available that are not from delivery restaurant chains.
Pizza Hut owns and franchises 7,600 restaurants nationwide and more than 4,000 restaurants in other countries. Pizza Hut was ranked the highest pizza restaurant according to Mintel’s custom data. They consider themselves “America’s Favorite Pizza” and the data proves their claim. Pizza Hut has recently revamped its website in order to create a better experience for customers and to make its menu less confusing, which was a major concern from consumer. Not only was Pizza Hut a consumer favorite, but also they were the market leader for 2009 with $5 billion in sales. The company decreased its advertising spending by 17.5% from 2008-2009 but is still the industry leader in that category.
Domino's Pizza is the second-largest pizza chain in the United States. Domino’s owns and franchises roughly 9,000 restaurants in 60 international markets and exists in all 50 U.S. states. The company posted the second highest sales figure in the pizza industry of $3 billion according to Mintel research. The company’s ad spend in 2009 grew significantly over 2008 spending, representing the company’s strategic effort in re-launching its core pizza product featuring an attention-grabbing transparent campaign acknowledging its faults. Domino’s has experienced a positive reception after completely revamping its recipe.
Pegasus Pizza was voted best pizza in Eugene by the University of Oregon students through the Oregon Daily Emerald voting in 2010. Pegasus offers a hand tossed artisan pizza that attracts college students and families from the surrounding neighborhoods as well as visitors. They are well known in the Eugene/Springfield area and frequently have out of town visitors dining because of the hype and prominence around the University of Oregon Campus. Pegasus offers different services such as takeout, delivery, outdoor seating, reservations, parties, and a bar. Fathom’s Bar is located directly below the restaurant and the two work together to provide customers the best experience possible. Pegasus also has a location in Oakway Center that helps increase the amount of customers that eat their pizza. For those people that live across the Willamette River, the Oakway location is more accessible. While the cost for a meal will be slightly more expensive than a traditional delivery alternative, customers are willing to pay the cost because of the quality and atmosphere that Pegasus has to offer.
Track Town Pizza
Track Town Pizza is a well-known local pizza brand among UO students because it has a history with UO over 30 years. Every pizza that is made from Track Town Pizza is made with handmade sauce, fresh daily produced dough, and local-grown ingredients. The store is located near campus; so many UO students order their pizzas from here or drop-in to eat the pizza. Track Town Pizza also provides beers in their restaurants so many male customers visit the restaurants before and/or after UO’s football games. Track Town Pizza offers a pizza buffet during the weekdays between 11a.m. to 2p.m. and they provide delivery service to customers until 2.a.m. Track Town Pizza also has a good relationship with Eugene communities. Every year, Track Town Pizza raises thousands of dollars through fundraising programs to donate money to the local communities and donate its pizzas for local events. Track Town Pizza is a strong competitor to Papa John’s Pizza because of the quality and reputation it has in Eugene and Springfield.
Carson Dining Pizza
Carson Dining Pizza is a pizza option that is run by the UO’s dormitory cafeteria system. The pizzas are served in the Carson dormitory’s dining hall, so the primary target audience for Carson Dining Pizza is the students that live in the school dormitory. Students must choose between three meal plans if they want to live on campus, so students living in dorms have no choice but to use up their points in the cafeterias. Carson Dining provides its pizzas to school events and student’s association events to prevent students from getting pizzas from other outside restaurants. Carson Dining also offers the pizza menus that are usually offered in other pizza brands’ stores. However, because the Carson Dining Pizza is being operated by UO’s budget, the ingredients that go into the pizzas are low quality. Carson Dining Pizza does not provide any delivery service; every student has to visit and pick-up the pizza if they want to eat, which is a problem with convenience. Therefore, if Papa John’s Pizza focuses efforts to advertise to students living on campus that Papa John’s makes their pizzas with high-quality ingredients it will be an effective marketing strategy.
S. W. O. T. Analysis
Papa John’s strengths are its biggest asset against the competition. Papa John’s uses the best ingredients in the industry to manufacture its products. Many people base their decisions on the quality of the products that they are going to eat, and Papa John’s is in an extremely enviable position. The pepperoncini peppers that are included in every pizza box are from Greece and account for 40% of the U.S. purchases of the peppers and the olives are purchases from Spain. Papa John’s in Eugene/Springfield is also a locally owned franchise. Consumers would much rather spend their money locally than with a national chain. The restaurant offers fast reliable service and pizza at an affordable cost. Papa John’s menu also caters to the local demographic of families and college students. The pizza company was the first company to use an online ordering system and has grown in the fourteen years since. Online ordering has become a large part of business for Papa John’s Pizza and customers spend three dollars more per online order compared to over the telephone.
The main weakness is the overall cost of the products that are offered on the menu. The explanation for the higher cost is the quality toppings and products that are used, but many consumers are willing to trade the quality for a lower priced product. The pizza industry has turned into an industry of price wars and Papa John’s risks falling behind if they cannot offer competitive pricing. Another weakness reported by consumers is the lack of crust options. Papa John’s only offers three different types of crust compared to the five to seven types offered by competitors.
Since the pizza industry is highly competitive, Papa John’s has the opportunity to become the leader in the market. Competitors do not offer as many types and flavors of pizza, and if Papa John’s continues to develop and focus its menu, the competitors will not be able to stay on top. There has been a recent trend where people are staying at home to eat and are cooking less. This provides a great opportunity for delivery pizza companies to find their ways into homes. Workingmen and women are becoming increasingly busy after a long day of work, so cooking dinner is becoming more unlikely. Even though parents do not have the time to cook for their children, they are worried about what they are putting into their bodies and Papa John’s is above and beyond the healthiest delivery option.
The economy is the main threat for Papa John’s delivery. Competitors can offer lower costs because of the inferior product and Papa John’s has no way to combat the lower prices if they are going to keep making the same quality product. Consumers are also starting to choose other alternatives like homemade and frozen pizza. Potential consumers like the convenience of being able to throw a pizza in the oven and not having to worry about calling a pizza company and waiting for a deliveryman. Frozen pizza companies have started to offer many alternatives to the specialty pizzas that are offered through delivery. Pizza delivery companies are also losing out on consumers that prefer to make their homemade pizza with premium products bought from the store
Papa John’s marketing objectives for year 2011 are to increase sales by 15% during the 9 months that college students reside in the Eugene/Springfield area and to have a strong local presence year round, not just limited to certain durations like the academic year. It is beneficial to include mothers also because mothers are the ones who usually make a decision on their families’ dining menus. Males consume pizza more often that females, which is why males ages 18-25 are a target audience.
The local Papa John’s advertising objective is to increase visibility and name recognition among moms and males 18-25 whom live in the Eugene/Springfield areas. We want moms to feel they are making the smart decision for their family and do not view Papa John’s Pizza as another unhealthy fast food restaurant. We want them to see Papa John’s as a fast and a healthier alternative to cooking and/or eating fast food. Males should see Papa John’s as an option for quality food with minimal effort. The advertisements geared towards males will show that Papa John’s is a quality and affordable option with minimal effort involved. We want to increase brand recognition and loyalty among our target audiences.
Media Objectives will rely less on Television advertising and more on local radio, print, as well as, community events and/or functions. This will help create a campaign that targets the local demographic within the Eugene/Springfield area. By choosing media that target local viewership, it will help Papa John’s increase their target audience awareness. Having mothers as the primary audience will prevent the sales decrease of Papa John’s Pizza during the non-academic season like summer break. Therefore, the media in the summer will spend more time targeting towards mothers. As Eugene is the university-based city because of UO, the media will incorporate local college sports, children’s sports, and community building events. Currently Papa John’s has a nationwide contract with the NFL, which will help the company branch off locally to target specific consumers. The print form of the media will help target younger mothers as well as older mothers through the Oregon Daily Emerald and Eugene Weekly.
- Average age of a first time mother is 25
- Only 21% of first time mothers are under 20
- 71% of first time mothers are woman between 20 and 34
- Only 8% of first time births are to women 35 and older
- 55% had at least one year of college
- Only 18% had no finished high school (due to age or dropping out)
- 57% are employed
- 20% of US recorded births were to foreign-born mothers
- 36% of moms are either widowed, separated, divorced, or never married
- 29% of mothers house hold incomes made $75,000+
- Moms need reassurance on every decision they make, may it be something simple like what to eat for dinner to more difficult decisions such as, what house to buy.
- They move in herds, which can be a rewarding spiral affect if targeted correctly.
- 93% of moms use some sort of social media, and by using promotions through twitter and advertisements/connections through Facebook, we can reach moms more effectively.
- Secondary Audience “18-25 year old Males”
- Men ages 18-25 make up a large part of the orders placed through pizza delivery companies.
- These consumers have less interest in cooking dinner and would rather order from a delivery or takeout restaurant.
- They are interested in sporting events, and pizza companies can easily advertise with sports themes.
- The idea of pizza, beer, and sports are all interrelated and males 18-25 represent that idea better than any other target demographic.
- Men are less worried about the cost of a meal than women are.
- Consumers can save money by purchasing a frozen pizza from the grocery store.
- Ease and convenience combined is important in targeting males.
- Men are more likely to be influenced by in-restaurant entertainment.
- With delivery or takeout pizza, consumers have the advantage of choosing their entertainment from the comfort of their own home.
- Men ages 18-25 can be targeted in media that traditionally attract men such as sports or action movies done on a national level.
- Men are most often targeted during professional and college sporting events.
- With men ages 18-25 pizza companies want to create an image of quality and importance.
- Sporting events and movies create the image that the target consumer can relate to and when the audience can relate to the product.
National Television commercials will continue to have their airtime throughout the year. However, based on the sole purpose to target the audience strictly in Eugene/Springfield – we want to direct consumers to those locations through local advertising. We must branch off those messages through other forms of media. Radio will be a big part of our media lineup. Radio will give the store a local image while still holding true to the national brand loyalty. Ads will be placed within newspapers such as the Oregon Daily Emerald and Eugene Weekly. A booth will be stationed at the EMU at one point – distributing t-shirts, bumper stickers, umbrellas, buttons, menu brochures, and coupons redeemable at any Eugene location. The booth will also travel to local children sporting events, targeting mothers. Our Internet focus will continue with the use of our local Facebook and Twitter accounts with promotions throughout the year.
- The media plan includes tactics involving:
- Social Media
- Promotional Booth
- University of Oregon Student Survival Kit
- Facebook is a well-known social network website that is operated and privately owned by Facebook incorporation.
- From this website, users can create their personal pages that include personal profile, add friends, upload photos, and exchange messages with other users.
- There are numerous numbers of Facebook users that include males, females, and all age groups.
- Since the majority consumers in our primary and secondary audiences are using social networking, Facebook will be a good way to connect with those users.
- The Papa John’s Eugene Facebook page will have updates and promotions running constantly throughout the year to attract attention to the company.
- There is no doubt that many Facebook users will be affected by this Papa John’s Pizza’s Facebook presence.
- Twitter has a similar format with Facebook that offers a social networking and micro blogging service.
- Twitter allows users to send and check other users’ messages, which are called tweets, at any time and anywhere with a maximum of 140 total characters, which is the main difference between the two social networking sites.
- Twitter users can tweet through SMS service by using smart phones.
- Papa John’s Twitter page will work similarly to the Facebook page in the sense that there will be promotions and offerings throughout the year.
- Twitter reaches those customers that want to get news updates from friends rather than sifting through posts and pages and we feel this is a great strength for brand promotion and awareness.
- Papa John’s presence on Twitter will be an effective way of encouraging both male and female Twitter users to use the company’s products creating loyal customers and repeat users.
- KWVA 88.1 FM: KWVA is the UO’s campus radio station, which was founded by UO students in May 1993 and is one of only a few truly student-operated radio stations.
- The station is a voice for students and a place for them to gain broadcast, operation, and production experience by using many kinds of broadcast facilities.
- Due to the KWVA’s student operated system format, it will be an effective advertising method of broadcasting the Papa John’s Pizza’s ad on KWVA channel’s radio show.
- Even though KWVA is a non-profit organization, Papa John’s will contribute money to support the radio station in return for mention of the company over the air.
- KWVA relies heavily on incidental student fees as well as support from the community, and we see this as a great opportunity to help keep one of the most promising channels of communication to the students alive.
- Supporting KWVA will be a cost effective way to both help the community and increase awareness about the brand through sponsorship and support.
- Advertisements will also be run through two other radio stations in the Eugene/Springfield area including 94.9 KDPM, 105.5 KEUG, and 104.7 KDUK. These stations will help the company to include all of the target audiences equally.
- This advertising will be more traditional than the sponsorship of KWVA and spots will primarily run during the afternoon and evening day parts.
Oregon Daily Emerald:
- Oregon Daily Emerald Publishing Company (ODE) is a non-profit and public benefit corporation operated by the campus of the University of Oregon.
- ODE publishes the campus newspaper, which has run daily since 1900.
- They provide education and training for UO students majoring in journalism through production of an independent student newspaper and different multimedia platforms.
- ODE is a good media option for the Papa John’s Pizza’s advertising plan because students perform the newspaper work and its main subscribers are UO students and faculty.
- Even though ODE is also a non-profit newspaper organization there will be no difficulty getting permission to run Papa John’s advertisements in the daily paper.
- Like KWVA it is one of the best options for the company because many UO students read the newspaper, especially male students who pick up the paper to get sporting news, results, and updates.
- Eugene Weekly is the weekly newspaper that has an alternative newspaper format rather than being mainstream and is published in Eugene, Oregon.
- The weekly newspapers focus on introducing events that are happening in Eugene.
- They provide information of restaurants, festivals, music concerts, and good places to travel in Eugene. Eugene prides itself on small town atmosphere with big town tastes.
- The website of the Eugene Weekly provides the information in detail with pictures, so Papa John’s Pizza can also use Eugene Weekly’s website as the tool for its advertisement.
- Eugene Weekly is a good opportunity for Papa John’s Pizza’s to gain exposure by highlighting the quality ingredients and will increase awareness for potential customers.
The Student Survival Kit is a coupon book, which is distributed to students at the beginning of the fall, winter, and spring terms. The Student Survival Kit was created in 1981 by an advertising major from Washington State University. The book became popular and spread rapidly. Currently about hundred thousand college students at five major universities in the Pacific Northwest use this book as an essential tool for their daily lives while attending college. Placing a Papa John’s Pizza ad in the Student Survival Kit will be an outstanding option for advertising because Papa John’s Pizza ad can be more accessible to the students.
Papa John’ Pizza Booth will take place at the EMU at the University of Oregon as well as at children’s sporting events in Eugene/Springfield. This promotion will be progressed actively, making a close relationship between the company and UO students. The promotional booth will distribute many kinds of free souvenirs like t-shirts, bumper stickers, umbrellas, buttons, menu brochures, and coupons that can be redeemable at any Papa John’s Pizza stores in Eugene and Springfield.
The booth will be at local children sporting events because many parents watch their children’s sporting games. This will help convince mothers that Papa John’s pizza is a quality alternative for many different occasions. As mentioned before, usually mothers make the decision on what foods their families eat because they usually care about their children’s nutrition and their families’ dining menus.
Total Calculations: $87,125.40
- Internet - $500/month = $6,000
- Radio - $55 average/spot x 665 spots = $36, 575
- KDUX (104.7) – 165 spots = $9,075
- KPDM (94.9) – 250 spots = $13,750
- KEUG (105.5) – 250 spots = $13,750
- The Daily Emerald – 78 placements = $6, 125
- 52 1/4 page ads
- 26 1/2 page ads
- Eugene Weekly – 39 placements $23,413
- 13 1/2 page ads @ $795= $10,335
- 13 1/3 page ads @ 557= $7241
- 13 1/4 page ads @ 449= $5837
- U of O Survival Kit = $1308
- Full page adjacent ad to two premium coupons = $463/term
- Promotional Booth = $13,704.40
- Shirts @ $6/ea x 700= $4200
- Stickers @ .72 ea x 500= $390
- Umbrellas @ 11.98 ea x 280= $3354.40
- Buttons @ .25 ea x 1000= $260
- Staff/ random expenses for all 28 stops= $5,500
- Radio ads will be aired on stations 104.7, 105.5 and 94.9 during the times 3-7pm Monday-Friday when people are just getting down with classes and work. During Saturday and Sunday, Ads will run during the air times 12-2pm and 5-9pm Saturday-Sunday.
- To track radio we will see how many people started to come into Papa John’s after and during airtime. The major factor would to see how sales increased during fall, winter, and spring.
- Newspaper ads will run throughout fall, winter, and spring terms roughly once or twice a week.
- The booths will be at local and children’s sports events, Duck football, baseball, basketball, and at the EMU.
- The coupons given from the booth events and within the newspaper will contain different codes from one another. This will allow us to track whether the booth and newspaper ads are working.
- In the case of alternations to the budget, it is imperative that there be a backup plan in order to counter the changes. In the rare case of additional money added to the budget we recommend setting the media objectives higher by:
- Adding moving boxes with Papa John’s Pizza’s logo at the promotional booth during peak moving seasons
- Increasing the number of local radio stations and spots
Including these alternatives would disperse the campaign across a wider area, reaching the secondary target more readily.
- In the case of funds subtracted from the original budget we recommend:
- Removing the secondary target from the media plan
- Shortening the broadcasting time of radio in half.
- Shortening promotional booth hours and limiting the amount of trips made to UO campus and sporting events.
- In researching our primary and secondary audiences, we learned from the Nielson report that young males and moms are the average pizza buyers in year 2009. As of now, Males 18-49 has been Papa John’s primary audience. However, after deep article research we discovered that moms hold more power over food consumption decisions than males 18-49. We found that it is more beneficial to target a more condensed target audience as our secondary audience (18-25 year old males). We then researched each target audience’s daily media habits in order to find the best media to fit our objectives and budget.
- In determining frequency and reach, our plan was carefully tailored to achieve at least a frequency of three and a GRP of 25 on most media.
- We will see how many coupons customers utilized by the end of each cycled run and we will check with the latest data from Arbitron, MRI or Nielson NetRatings to determine ratings/audience delivery after the schedule run.
- At every Papa John’s Pizza in Eugene/Springfield, customers will be asked how they heard about that specific Papa John’s location and on their receipt will be a web-address to a customer survey that asks their age, gender, and how satisfied they are with Papa John’s. This feedback will help Papa John’s know how to reach their target audience and see the positive aspects of the plan and be able to receive acknowledgement for what can be changed for the following year.
- We can also conduct a focus group of Papa John’s primary and secondary audience, in order to gain in-depth information on the audience and be able to alter or change our media choices as need be.
- The success of our plan depends on an increase of 15% in 2010 sales for the local Papa John’s Pizza in the Eugene/Springfield area. We will know if we made our goal in December 2011. Our plan also asks for an increase in visibility and name recognition among moms and males 18-25 residing in Eugene/Springfield. We will know whether we have successfully accomplished this objective by conducting a survey to the target audience after the 2010-2011 year and see if their opinions towards Papa John’s have changed.
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