N E W B U S I N E S S P I T C H B R I E F OCTOBER 2017

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Posy Merritt
5 years ago
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1 NEW BUSINESS PITCH BRIEF OCTOBER 2017

THE DATA YOU NEED TO WIN THIS PITCH Papa

confirmed Creative that he recently sent a

companies seeking a new creative partner.

Its goal is to wrap up the review and have

chain, to stand out in what has become a

Plus, as Papa John's puts more emphasis on

2 THE DATA YOU NEED TO WIN THIS PITCH Papa John account in review Better Ingredients. Better Pizza. Better Marketing. Chief Marketing Officer Brandon Rhoten confirmed Creative that he recently sent a note to about 10 agencies and holding companies seeking a new creative partner. The note kicked off a non-traditional request-for-proposals process that Papa John's is handling on its own. Its goal is to wrap up the review and have an agency partner in place by end of North America Rhoten says he wants Papa John's, the nation's 4th-largest pizza chain, to stand out in what has become a commoditized pizza category. Plus, as Papa John's puts more emphasis on digital ordering and social media, it wants a creative team that can enhance the company's effectiveness in those areas. September 12, 2017

and carryout restaurants under the Papa John s trademark in the United States and internationally.

North America Franchising, International Operations, and an All Others category.

As of December 25, 2016, it operated 5,097 Papa John s restaurants, including 744 company-owned and

The company was founded in 1984 and is headquartered in Louisville, Kentucky D E C I S I O N M A R K E

3 CLIENT PROFILE / MARKET COMPANY BACKGROUND Papa John s International, Inc. operates and franchises pizza FINANCIAL OVERVIEW 2016 Sales (mil) 1, Employees 23,100 delivery and carryout restaurants under the Papa John s trademark in the United States and internationally. It operates through five segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, International Operations, and an All Others category. The company also operates dine-in and delivery restaurants. As of December 25, 2016, it operated 5,097 Papa John s restaurants, including 744 company-owned and 4,353 franchised restaurants. The company was founded in 1984 and is headquartered in Louisville, Kentucky D E C I S I O N M A R K E R S by Mr. Bernie Fussegger Director, Digital Marketing berine_fussegger@papajohns.com Mr. Brandon Rhoten Vice President, Marketing & Strategy brandon _rhoten@papajohns.com Employee Growth Percent - Assets (mil) - Net Income Growth Percent - Sales Growth Percent - MAIN COMPETITORS

4 WORLDWIDE PIZZA MARKET $ 128 BILLION Pizza Sales Worldwide FASTEST GROWING MARKET TOTAL SALES FORECAST THROUGH 2020 LATIN AMERICA $ BIL + 45 % CHINA $ 3.67 BIL + 30 % ASIA PACIFIC $ BIL + 26 %

5 US PIZZA MARKET 76,723 $ 44.3 BILLION Total Units Pizza Sales Worldwide $ 579,127 Average Sales Per Unit

6 U S P I Z Z A M A R K E T: C H A I N S VS I N D EP E N D E N T SALES NUMBER OF UNITS INDEPENDENT 42.5% CHAIN % INDEPENDENT CHAINS AVERAGE SALES PER UNIT TOTAL INDEPENDENT CHAIN $ 444,691 $ 745,681

TOP CHAINS TOP 50 PIZZA CHAINS BY ANNUAL SALES CHAIN NAME 2015 U.S. SALES ( X 1,000 ) Pizza Hut 5,510,000 Domino s 4,708,587 Little Caesars 3,500,000 Papa John s 2,816,017 S O U R C E: CHD EXPERT & TECHNOMIC 44.

7 TOP CHAINS TOP 50 PIZZA CHAINS BY ANNUAL SALES CHAIN NAME 2015 U.S. SALES ( X 1,000 ) Pizza Hut 5,510,000 Domino s 4,708,587 Little Caesars 3,500,000 Papa John s 2,816,017 S O U R C E: CHD EXPERT & TECHNOMIC 44.28% INDEPENDENTS & SMALL CHAINS BILLION 55.72% TOP 50 CHAINS Papa Murphy s Pizza 880, BILLION

8 FOOD DELIVERY & PIZZA $11 BILLION In Delivery Orders are Placed Online Survey respondents now order from an online restaurant daily / weekly / monthly $30 BILLION Food Delivery Industry Value 24% Morgan Stanley ⅔ of online orders are for pizza Domino s pizza market share of restaurants delivery services

6% Pizza is the most common purchase by Millennials on Venmo Sales of speciality pizza category LendEDU +64% Pizza

9 CONSUMER TREND CONSUMER DEMAND +26% HARDCORE PIZZA LOVERS 10% of American adults order pizza at least 3 times per week AudienceSCAN AUTHENTICITY Chef-driven speciality pies made with seasonal and local ingredients +4.6% Pizza is the most common purchase by Millennials on Venmo Sales of speciality pizza category LendEDU +64% Pizza menu mentions of Wisconsin cheese ( Technomic Q Q ). CUSTOMIZATION +76% Pizza customers prefers build-your-own customizable options

10 PAPA JOHN S +3.5% U.S. Sales Growth 5,097 UNITS GLOBALLY $3.7 BILLION $1.16M Global System-wide Sales AVERAGE SALES PER UNIT +6% International Sales Growth

CUSTOMER SATISFACTION & NEW PRODUCTS Papa John's has added gluten-free

However the pizza chain recommends that diners with celiac disease or

The pizza chain is testing a new system called "Papa Priority" that lets

99 fee to skip ahead of earlier orders and get their pizzas delivered

Papa John's celebrates #1 ranking among QSR pizza chains in annual

years Papa John's is hoping to distinguish its pan pizza from the

11 CUSTOMER SATISFACTION & NEW PRODUCTS Papa John's has added gluten-free pizza to its menu. However the pizza chain recommends that diners with celiac disease or severe gluten intolerance not order the new item. The pizza chain is testing a new system called "Papa Priority" that lets customers pay a $2.99 fee to skip ahead of earlier orders and get their pizzas delivered faster. Papa John s introduced its Pan Pizza in October Papa John's celebrates #1 ranking among QSR pizza chains in annual American Customer Satisfaction Index (ACSI) report for 16th time in 18 years Papa John's is hoping to distinguish its pan pizza from the competition by highlighting quality, with the company's move toward a "clean" menu with fewer artificial ingredients. Papa John's hopes that the new style of pizza will make up more than 10% of sales at locations across the US.

12 DIGITAL FIRST 55% 60% Digital and mobile channels sales shares of total U.S. sales Digital and mobile channels sales coming from Android and Apple devices Papa John s has expanded its digital ordering services with the launch of the first Apple TV app from a national restaurant brand

13 PIZZA & SPORT MLB NFL NHRA Official Pizza of Major League Baseball. Official Pizza of 22 MLB teams Official Pizza Sponsor of the NFL and the Super Bowl Papa John s sponsors: professional drag racer Leah Pritchett of Don Schumacher Racing. Leverage our MVP lineup of NFL stars including JJ Watt and Peyton Manning in conjunction with our NFL sponsorship across our marketing channels. Preferred Pizza of 22 NFL clubs

14 PAPA JOHN S MARKETING $70.9 M ADVERTISING AND RELATED COSTS STRATEGY SCHOOL COMPONENTS a variety of community- SPORT VENUES oriented activities in: TV DIGITAL PRINT LOCAL ORGANIZATION STORE TO DOOR FLYERS SOCIAL MOBILE LOCAL MARKETING

15 PAPA JOHN S AUDIENCE FEMALES 52% TOP P S Y CH O G R A P H I C S YEARS OLD 21% FOOD LOVERS BEAUTY & WELLNESS AWARE FASHION LOVERS LIVING IN THE SOUTH REGION 46% SEE THE FULL PROFILE

16 PIZZA LOVERS Pizza Lovers are consumers with FOOD LOVERS interest in pizza 2.8x restaurants and have interacted with at least one of them online. GAMERS 2.0x BEAUTY & WELLNESS AWARE 2.4x MONEY SAVERS 1.8x

17 FEMALE 51% GENERATIONAL PIZZA LOVERS GENERATION Z DEMOGRAPHICS MILLENNIALS GENERATION X BABY BOOMERS ETHNICITY HISPANIC WHITE AFRICAN AMERICAN ASIAN GET FULL INSIGHTS U. S. S T A T E M A P

18 THOUGHTFUL EATERS 3.9x SNACK FANS 4.0x THOUGHTFUL EATERS IS FEMALE SNACK FANS IS MALE PIZZA LOVERS FOOD & GAMES 82% 63% PIZZA LOVERS LOVE GAMING GET FULL PROFILE GAMERS 2.0x RACING GAMES #SNESCLASSIC 7.1x BEAT EM ALL GAME TV SHOWS

19 MOVIE LOVERS 1.4x RADIO LISTENERS 1.1x PIZZA LOVERS MEDIA & ENTERTAINMENT CONVERSATION AROUND #THORRAGNAROK 3.9x MORE AFFINITY WITH THIS AUDIENCE 33% +4% Pizza Lovers regularly listen to radio in the car Interactions toward radio shows over the last quarter GET FULL PROFILE Pizza Lovers with children more likely to pay attention to pre-movie commercials Pizza Lover without children enjoy reading Magazines

20 PIZZA LOVERS AUDIENCE OVERLAPS AUDIENCE OVERLAPS & MONEY SAVING PAPA JOHN S PIZZA HUT GET FULL INSIGHTS DOMINO S MONEY SAVERS 1.8x Pizza Lovers are always ready to redeem... #Promotion #Giveaway 4.5x 4.2x AUDIENCE AFFINITY... And love to participate in contests #Sweepstakes 6. 9 x #Contest 5.3x AUDIENCE AFFINITY

21 CONSUMER INSIGHTS SUITE Discover Papa John s Target Consumer on Cubeyou Consumer Insights Suite TRY NOW FOR FREE

Table of Contents. Contact Information

Table of Contents. Contact Information Case Study 2015 Table of Contents The Challenge.......................................................................... 1 Pizza Hut and the U.S. Pizza Market...................................................