The P’Zone was first launched in 2002 and was briefly brought back more than 10 years ago for a... [+] brief promotional window. For a limited time, it will be a part of the company's $5 Lineup.
Credit: Pizza Hut
There doesn’t seem to be an end in sight for the intense value wars gripping the restaurant space. Some brands—those with strong unit economics and a stronger franchise base—are benefiting from this environment more than others.
In the pizza category, Chris O’Cull from investment banking firm Stifel predicted that Papa John’s will continue to struggle in a heavy-discounting space where Domino’s, Pizza Hut and Little Caesars hold more value leverage.So far, Domino’s has been the big winner, finding solid footing with its $5.99 mix and match deals and its $7.99 large or pan deals.
During Domino’s Investor Day in January, COORussell Weinersaid the companyhas been able to dominate this narrative because its volume growthhas driven higher sales and profitability, whichhad led to the ability to offer value at scale.
Since October, however, Pizza Hut has attempted to chip away at Domino’s value dominance with its $5 Lineup, a menu that includes a variety of options such as a medium, one-topping pizza, eight Wingstreet Wings, Tuscani Pasta, Cinnabon rolls and more.
Today, Pizza Hut made a major play to continue gaining value traction. To coincide with Pizza Hut’s position as the Official Pizza of NCAA March Madness, the company is bringing back the P’Zone, its version of a calzone that has become somewhat of a cult favorite. To add even more madness, this offering will be available as part of the $5 Lineup for a limited time.
To illustrate just how big of a deal this may be, FoodBeast coverage from all the way back in 2008reported that P’Zones were $6.99 each.
The P’Zone was first launched in 2002 and was brought back more than 10 years ago for a brief promotional window. According to Pizza Hut Chief Brand Officer Marianne Radley, the time is right to reintroduce it again.
“There is such a fervor for this product. The amount of emails I get asking to bring it back shows just how passionate fans are. There was even a petition on social media to bring it back a little over a year ago,” she said. “As the NCAA sponsor, it only made sense to bring it back for March Madness, when there are so many comebacks.”
What’s the draw for the P’Zone? Radley said it simply comes down to its portability and its heartiness (they each weigh over 1 pound, according to a 2007 press release).
By adding it to the $5 Lineup, Radley believes it will help drive traffic from fans and newbies alike.
“There is a whole generation of people who have never had the P’Zone. We thought it would be fun to introduce it to them during March Madness and by having it as part of this $5 Lineup, it will lower that barrier of entry for them to come try it,” Radley said. “For a younger audience, it’s not such an over-investment.”
She admits that franchisees take a little margin loss on a promotion like this but expects that to be outweighed by the positives: the excitement the product creates and its ability to bring customers back who maybe walked away from the brand.
“Any company that launches a new product or introduces a product expects a traffic bump. Also, we know this is what people want. It has such a huge following and has become a cult classic,” Radley said.
Creative behind the re-launch
Leading up to today’s P’Zone re-launch, Pizza Hut has been hosting “A Legend Returns” countdown on its social channels. The product will also be supported by new TV commercials that showcase the rollercoaster of emotions synonymous with March Madness fans. The ads include some of the most viral memes from recent tournaments, such as the “What Just Happened Wail” with Northwestern fan John Phillips (this kid here).
Pizza Hut will have a few other activations during the tournament, such as a comfort kit for sad fans like John (to be fair, his team lost to No. 1 seed Gonzaga), which includes a comfort blanket, P’Zone-themed waterproof mascara, a Pizza Hut peace of mind candle and a “tear band” to wipe away tears.
Also of note, Pizza Hut leveraged the first year of its NFL sponsorship by updating its Hut Rewards loyalty program. Radley said the company will be looking to expand that membership through March Madness, in addition to measuring the new campaign’s success through sales, brand awareness—including more cultural relevance—and intent of purchase numbers.
“Since the announcement of our NFL partnership about a year ago, we’ve seen a nice uptick in loyalty rewards members and we continue to make improvements in our loyalty program,” she said. “We have a nice momentum behind it as we go through March Madness.”
Speaking of that NFL partnership, Radley said Pizza Hut’s first season was executed perfectly and the company’s franchisees more than met expectations.
“On Super Bowl Sunday, we broke records on our digital orders and absolutely hit it out of the park. Seventy percent of our orders were delivered in under 30 minutes, which is incredible on the biggest day of the year,” she said. “Everything was humming. We were ready for it.”
That said, the company also pulled plenty of learnings from its inaugural NFL season that it will apply for year two (starting next month with the NFL draft), similar to how it has applied learnings from its first two March Madness seasons to prepare for this year’s tournament, its third as a sponsor.
“It’s exciting to be a part of such huge iconic entities,” Radley said. “For March Madness, it is such a unique moment in time and to be part of a highly visible, emotional couple of weeks is exciting for the brand. People who aren’t even basketball fans are focused on this tournament. They’re rabid about this. We want to capture that audience.”