News CATEGORY WAR Pizza Hut, Papa John's Position for Pan Pie Profits
Longtime rivals square off over product, consumers in new efforts.
PIZZA SALES TYPICALLY heat up during football season. So it is not surprising that Papa John's and Pizza Hut have new creative. But given the history of the two companies, is it a game of one-upsmanship or mere coincidence that both are touting the same product--pan pizzas?
Papa's Perfect Pan will enter the marketplace with $25 million-plus worth of media pomp and circumstance beginning Oct. 3. Pizza Hut, meanwhile, debuted a $32 million national campaign on Sept. 25 touting a pan pizza 25th anniversary special offer.
"It wouldn't surprise me one bit if someone is trying to steal someone else's thunder," said Steve Coomes, senior editor of Pizzamarketplace.com, Louisville, Ky. "I don't think there's any irony that all of them are jockeying for position."
To fully understand the competitors' motivations, one only needs to know that Pizza Hut co-founder and former president Frank Carney is now one of Papa John's biggest franchisees. Carney left when Pepsi bought Pizza Hut in the '80s. The chain is now owned by Yum! Brands, Louisville.
What's more, Papa John's chose Wichita, Kan., the city where Pizza Hut was founded, to test its pan pizza over the last three years.
However you slice it, at $27.3 billion in 2004, pizza is big business. Pizza Hut did $5.3 billion in sales in 2004, Domino's $3.2 billion and Papa John's $1.7 billion, per Technomic, Chicago. Papa John's operates 2,888 restaurants in 20 countries. Pizza Hut, Dallas, has some 12,000 locations in 86 countries. Domino's, Ann Arbor, Mich., has 7,750 outlets in 50 countries.
The pan pizza launch is Papa John's biggest since 1996, when it unveiled its thin crust pies. It also marks the first time the No. 3 pizza chain has hired a celebrity spokesman. Pro football Hall of Famer Dan Marino will star in the "Go deep" debut campaign, via Z Group, Miami.
Domino's has steered clear of the deep dish wars, electing to serve up its new Steak Fanatic pizza earlier this month.
The pan pizza is the "largest and most significant new product launch in company history," said Chris Sternberg, a Papa John's rep. "Our research shows a good percentage of pizza eaters like pan pizza. We've been missing out on the opportunity to serve them."
Papa John's version is a "square pan which allows customers to pile on our 'better ingredients' deep," said Sternberg. Its introductory offer has a suggested price of $12.99 for a large pie with five toppings.
Pizza Hut, meanwhile, is offering a medium one-topping pizza for 25? with the purchase of any large specialty pizza. Three commercials, via BBDO, New York, focus on the deal. In one spot, a Pizza Hut delivery driver places a quarter under a customer's pillow.
Papa John spent $85 million on media in 2004 and $45 million January-July 2005, per Nielsen Monitor-Plus. Pizza Hut spent $234 million and $153 million, respectively.
"They embody that fighting spirit," Pizzamarketplace.com's Coomes said of Papa John's new launch against the category's No. 1 player. "They showed it earlier this year when they spoofed Domino's appearance on The Apprentice."
To generate buzz, Papa John's will bring Marino, company founder John Schattner and ESPN's Trey Wingo together in New York's Times Square on Sept. 30. A "Go deep for a chance to win" sweeps will also run Oct. 2 on ESPN during the Arizona Cardinals-San Francisco 49ers game in Mexico City. Radio and print support. Papa John's will also make a contribution to the Dan Marino Foundation.
PHOTO (COLOR): Pan handlers: Pizza Hut spot (left) and Papa John's creative both support pan pizza items.
~~~~~~~~
By Kenneth Hein
PIZZA SALES TYPICALLY heat up during football season. So it is not surprising that Papa John's and Pizza Hut have new creative. But given the history of the two companies, is it a game of one-upsmanship or mere coincidence that both are touting the same product--pan pizzas?
Papa's Perfect Pan will enter the marketplace with $25 million-plus worth of media pomp and circumstance beginning Oct. 3. Pizza Hut, meanwhile, debuted a $32 million national campaign on Sept. 25 touting a pan pizza 25th anniversary special offer.
"It wouldn't surprise me one bit if someone is trying to steal someone else's thunder," said Steve Coomes, senior editor of Pizzamarketplace.com, Louisville, Ky. "I don't think there's any irony that all of them are jockeying for position."
To fully understand the competitors' motivations, one only needs to know that Pizza Hut co-founder and former president Frank Carney is now one of Papa John's biggest franchisees. Carney left when Pepsi bought Pizza Hut in the '80s. The chain is now owned by Yum! Brands, Louisville.
What's more, Papa John's chose Wichita, Kan., the city where Pizza Hut was founded, to test its pan pizza over the last three years.
However you slice it, at $27.3 billion in 2004, pizza is big business. Pizza Hut did $5.3 billion in sales in 2004, Domino's $3.2 billion and Papa John's $1.7 billion, per Technomic, Chicago. Papa John's operates 2,888 restaurants in 20 countries. Pizza Hut, Dallas, has some 12,000 locations in 86 countries. Domino's, Ann Arbor, Mich., has 7,750 outlets in 50 countries.
The pan pizza launch is Papa John's biggest since 1996, when it unveiled its thin crust pies. It also marks the first time the No. 3 pizza chain has hired a celebrity spokesman. Pro football Hall of Famer Dan Marino will star in the "Go deep" debut campaign, via Z Group, Miami.
Domino's has steered clear of the deep dish wars, electing to serve up its new Steak Fanatic pizza earlier this month.
The pan pizza is the "largest and most significant new product launch in company history," said Chris Sternberg, a Papa John's rep. "Our research shows a good percentage of pizza eaters like pan pizza. We've been missing out on the opportunity to serve them."
Papa John's version is a "square pan which allows customers to pile on our 'better ingredients' deep," said Sternberg. Its introductory offer has a suggested price of $12.99 for a large pie with five toppings.
Pizza Hut, meanwhile, is offering a medium one-topping pizza for 25? with the purchase of any large specialty pizza. Three commercials, via BBDO, New York, focus on the deal. In one spot, a Pizza Hut delivery driver places a quarter under a customer's pillow.
Papa John spent $85 million on media in 2004 and $45 million January-July 2005, per Nielsen Monitor-Plus. Pizza Hut spent $234 million and $153 million, respectively.
"They embody that fighting spirit," Pizzamarketplace.com's Coomes said of Papa John's new launch against the category's No. 1 player. "They showed it earlier this year when they spoofed Domino's appearance on The Apprentice."
To generate buzz, Papa John's will bring Marino, company founder John Schattner and ESPN's Trey Wingo together in New York's Times Square on Sept. 30. A "Go deep for a chance to win" sweeps will also run Oct. 2 on ESPN during the Arizona Cardinals-San Francisco 49ers game in Mexico City. Radio and print support. Papa John's will also make a contribution to the Dan Marino Foundation.
PHOTO (COLOR): Pan handlers: Pizza Hut spot (left) and Papa John's creative both support pan pizza items.
~~~~~~~~
By Kenneth Hein
posted by pizza-hut-pizza-hut-pizza-hut at 2:33 PM
0 Comments:
Post a Comment
<< Home