2011 mpm phk total 7june2010
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2011 YRI Marketing2011 YRI MarketingPlanning MeetingPlanning Meeting
PH KoreaDallas TX, June 2010
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Who is Pizza Hut Korea?
Equal importance ofboth channels Sales Mix = Dine-in 45% & Delivery 55%
(Based on 2010 P7, YTD)
Severe competition
25 years history ofPHK Highly penetrated = 79% (on-line BIT 10 Q1)
Strong competitors
(Dominos / Local brand : Mr. Pizza, others)
Increase ofFranchise stores mix 2008 48% 2009 52% 2010 54%
(Based on 2008 P12, 2009 P12, 2010 P7 YTD)
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1,000
2,000
3,000
4,000
07 P2 P8 08 P2 P8 09 P2 P8 10 P2
How did PHK do in 2007~2010?
Total
DEL
DI
De-seasonalized PSA Traffic for past 3 years (P207 P710)
3 year trend Total trans trend similar to DI, Del trend slightly better in 09
RoyalRoyalCrustCrust
C.C.VolcanoVolcano
TongTongCBCB
ManManChan*Chan*
DB.DB.BBQBBQ
F.GF.GF.DF.D
S.S.FantasyFantasy
SmartSmartLunchLunch
TuscaniTuscaniF.DF.D
SmartSmartLunchLunchRehitRehit
DB.DB.ChickenChicken
CoconutCoconutShrimpShrimp
*ManChan: 6 Mini Pizza (1) + Salad Bar (2) = $9
CCPCCPRGRG
SizeUpSizeUp&&
DorlleiDorllei
SmartSmartLunchLunchReRe--hithit
TheTheSpecialSpecial
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2,631
2,838 2,878 2,8282,774
2,671 2,648
2,5802,453
2,7942,868
2,812
1,834 1,8801,937
1,7831,8371,819
1,683
1,651
1,801 1,757
1,6971,490
1,4691,607 1,763
1,808
1,586 1,444
1,811
1,8101,776
1,6991,774
1,7801,701
1,774
1,6381,501
1,790
1,878
2009P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 2010
P2
P3 P4 P5 P6 P7
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
3,000
3,200
4
How did PHK do in 2009 & 2010?
De-seasonalized Per Store Avg. Transaction & SOV
SOV
Total
Delivery
Dine-in
PastaHOT
PastaFresh Delight
SmartLunch
Double Chicken Coconut Shrimp SizeUpSize Up/
DorlleiSmartLunch
TheSpecial
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DINE-IN
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PHK DINE-IN AGENDA
MARKET & CONSUMER TRENDS
BRAND CHALLENGE
FUTURE BACK VISION
2011 SALES & MARKETINGOBJECTIVES
2011 STRATEGIES
KEY INITIATIVES & EVENTS
MARKETING CALENDAR
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PHK DINE-IN AGENDA
MARKET & CONSUMER TRENDS
BRAND CHALLENGE
FUTURE BACK VISION
2011 SALES & MARKETINGOBJECTIVES
2011 STRATEGIES
KEY INITIATIVES & EVENTS
MARKETING CALENDAR
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(%)
(unit: %, Same quarter to same quarter)
Source: The Bank of Korea, Korea National Statistic Office, 2009 Source: Korea National Statistic Office, 2009
Although economy is in recovery,
spending in dining out is still in minus trend
(unit: %, Vs. the same month a year ago)
(%)
GDP &Consumer Spending Growth
Household Income &Spending on Dining Out
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Dine-in market in Korea had significant growthover the years,but is getting increasingly competitive
QSR
Korean
Restaurants
Pizza
Fine
Dining
QSR
PizzaPizza
Casual
Dining
FineDining1990s
2010s2010s
Specialty Coffee/ Bakery Caf
Korean
Restaurants
QSR
Korean
Restaurants
Fine
Dining
1980s
Pasta
Chain
-10%
-14%
+3%+3%
Source: 2010 BIT, PHK00%
Fusion & individual restaurant
Overall, CDR and Pizza category seem to be in decline while QSR has been in positive trend
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So, who is our main competitor in Pizza market?
recentTVC
strategyThe Most Loved Pizza Brand
Mr. PizzaPHK
Global No.1 Pizza Brand
targetBroad Target 2030 Young Female
tasteRich flavor & Cheesy taste Dambaek & Hand stretched
# of stores301 stores189 RR&RBD, 112 Delco 378 storesAssumed as almost RBD
sloganEnjoy together Love for Women
productMenu varietyPizzas, pastas, salad bar,beverages & appetizer
Pizza focusedPizza & Salad bar
assetStore renovation &strategic closing
Store expansion &renovation
marketshare
38% 42%
* Source: TNS online panel survey 2010, media release data, BIT 2009
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How do the consumers think about PH vs. Mr. Pizza?
[Base: 450 Pizza Users, Source: Q1 2010 BIT ]
Familiar, Fun & Young/Trendy taken by Mr. Pizza recently
Passionate
Generous
Young/Trendy
Well-known
Enjoyable
Qualified Service
Passionate about food
Surprising
Relaxing
Fun
Familiar
Exciting
For everybody
Warm
Accessible
Brand Image Map
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Why do the consumers prefer Mr. Pizza?
TasteTaste
[N=400, Pizza category users & WD market users
Source: Consumers value perception survey, July 2009]
Mr. Pizza is preferred than PH for its taste, topping variety & value!
Why?
Preferredpizza brandPreferred
pizza brand
3.3
2.7
3.0
2.3
Value for
money
Low inprice
[Source:Q1 2010 BIT, 5pts]
[Source: Consumers value perception survey, July 2009, T2B%]
ValueValue
Low in price
Value for money
PH
Mr. Pizza
29%
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So, How did PH do in 2009 & 2010?
2009
P02P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13
2010
P02P03 P04 P05 P06 P07
-12.5 2.1 -4.7 2.0 0.3 -9.2 -7.3 -13.9 -9.7 -22.0 -15.9 -15.7 -7.0 -6.0 -2.7 0.4 -6.5 -4.0
-18.1 1.2 -3.4 3.9 1.4 -11.6 -9.4 -12.2 -9.5 -25.7 -22.2 -21.3 -13.6 -12.5 -6.5 -2.4 -6.7 -2.7
(%, 0)
[Source: Internal Cognus data, 2010]
SSG is gradually decreasing,but Occasion Driven window, Smart Lunch shows positive trend
Pasta
&
HOT
Pasta
&
Fresh Delight
SmartLunch
2nd Re-hitDouble Chicken
Coconut Shrimp
(BTL)
RG Size
Upgrade
RG Size
Upgrade
& Dorllei(Pizza&Sal
ad)
SmartLunch
3rd Re-hit
TheSpecial
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Summary - Market/Consumer Trends & Implications
Key summaryKey summary Key implicationKey implication
Although economy is in recovery,
spending in dining out is still in minus trend
Dine-in market is getting increasingly competitive
CDR and Pizza category is declining
while QSR is increasing
PH is loosing in
Familiar, For everybody, Young & Trendy
Mr. Pizza is preferred than PH for its taste,
topping variety & value
SSG is gradually decreasing,
but Occasion Drivenwindow,
Smart Lunch shows positive trend
Although economy is in recovery,
spending in dining out is still in minus trend
Dine-in market is getting increasingly competitive
CDR and Pizza category is declining
while QSR is increasing
PH is loosing in
Familiar, For everybody, Young & Trendy
Mr. Pizza is preferred than PH for its taste,
topping variety & value
SSG is gradually decreasing,
but Occasion Drivenwindow,
Smart Lunch shows positive trend
Need to boost up transaction by providingattractive value offers
Offer variety menus at affordable price
Need continuous brand building towin-back
Need to develop new & differentiated pizzasfor taste enhancement
Develop newoccasion layerwith brand relevancy
Need to boost up transaction by providingattractive value offers
Offer variety menus at affordable price
Need continuous brand building towin-back
Need to develop new & differentiated pizzasfor taste enhancement
Develop newoccasion layerwith brand relevancy
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PHK DINE-IN AGENDA
MARKET & CONSUMER TRENDS
BRAND CHALLENGE
FUTURE BACK VISION
2011 SALES & MARKETINGOBJECTIVES
2011 STRATEGIES
KEY INITIATIVES & EVENTS
MA
RKETING
CA
LENDA
R
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VALUE
BRAND
Howhave we overcome our brand challenge in 2010?
PH is affordable because
I can enjoy what I want
with special offer for me
. .
. ._
PH is my brand.When I want tohave a goodtime withfriends & family,
PH comes first
Desired Perception 2010 Strategy 2010 Key initiatives
Integrated TVC ending
format & jingle
Integrated POP format
Q2 Smart Lunch
Q3 Smart Dinner
Mobile alliance (SKT)
TAS
TE
PH pizza tastes great
& has lots ofvarieties
Q2 The Special
Q1 Dorllei (Pizza & Salad)
Engaging Exuberance
Consistent Branding
Build occasion based offer
Reinforcing alliance
Enhancing menu variety
Improving pizza taste
. ._
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BRAND
PH is my brand.When I want tohave a goodtime withfriends & family,
PH comes first
Desired Perception 2010 Strategy 2010 Key initiatives
Integrated TVC ending
format & jingle
Integrated POP format
Engaging Exuberance
Consistent Branding
2010 Brand Challenge: Brand
VALUE
PH is affordable because
I can enjoy what I want
with special offer for me
. . Q2 Smart Lunch
Q3 Smart Dinner
Mobile alliance (SKT)
TAS
TE
PH pizza tastes great
& has lots ofvarieties
Build occasion based offer
Reinforcing alliance
Enhancing menu variety
Improving pizza taste
BRAND TASTE VALUE
. ._
. ._
Q2 The Special
Q1 Dorllei (Pizza & Salad)
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Build know-how 2010 :
Consistent brand building in every consumer touch point
Engaging ExuberanceEngaging Exuberance
[Menu Book]
[Table Mat]
[Coupon]
[Q1-1 RG Upsizing] [Q1-2 DorlleiPizza & Salad]
[Q2 Smart Lunch] [Q3 The Special]
Consistent branding inevery consumer touch point
BRAND TASTE VALUE
TVC Ending Format POP On-line Asset PR
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Build know-how 2010 :
Brand building through various PR activities
Exposure for 330 on Morning
Today at terrestrial TV station MBC
Portal Site VideoSite
Top ranked BCC in social media
Engaging sto
riesfrom consumerseSay cheese! Campaign
PHK Messagein fun & creative wayeBCC Create Buzz on PHK
BCC (Flash mob, parody and etc )
reached 600,000 people via online
Social Net
workingService media
eNew Generation Media
Twitsumer viral via PHK Twitter
Twitter reporters Twit PHK Event
Taste enhancement Communication
via over 500 Power bloggers
BRAND TASTE VALUE
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Howhave we overcome our brand challenge in 2010?
Desired Perception 2010 Strategy 2010 Key initiatives
TASTE
PH pizza tastes great
& has lots ofvarietiesEnhancing menu variety
Improving pizza taste
VALUE
BRAND
PH is affordable because
I can enjoy what I want
with special offer for me
. .
. ._
PH is my brand.When I want tohave a goodtime withfriends & family,
PH comes first
Integrated TVC ending
format & jingle
Integrated POP format
Q2 Smart Lunch
Q3 Smart Dinner
Mobile alliance (SKT)
Engaging Exuberance
Consistent Branding
Build occasion based offer
Reinforcing alliance
BRAND TASTE VALUE
. ._
Q2 The Special
Q1 Dorllei (Pizza & Salad)
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44
44
PH filled the gap on topping variety with Better price with good quality matrix
Very important Important Value layer Not important
Right pricew/ good quality
Better pricew/ good quality Great pricew/ OK quality
Build know-how 2010 :
Expanded topping variety
BRAND TASTE VALUE
: PH : Mr. PizzaActual
price(unit: KRW)
Perceived topping qualityPerceived topping qualityHigh Low
25,000
20,000
15,000
0
2009 Pizza Matrix by topping2010 Pizza Matrix by topping
11 5 55 1
44 4
11 322 1
11 6 33 3
77 5
22
11%%
22
11%%
5
0%
5
0%